Question No.3:                                                                                                                 {10marks}

Solve the following problems:

1. A person managing a dry-cleaning store for OMR 50,000 per year decides to open a dry-cleaning store. The revenues of the store during the first year of operation are OMR 150,000, and the expenses are OMR 40,000 for salaries, OMR 10,000 for supplies, OMR 13,000 for rent, OMR 2,000 for utilities, and OMR 5,000 for interest on the bank loan.

*Calculate:                                                                                                    

(a) The accounting profit, (1mark)

(b) The economic profit (1mark)

2. Mr. Ali owns and operates a small business that provides economic consulting services. During the year he spends OMR 60,000 on travel to clients and other expenses, and the computer that he owns depreciates by OMR 5,000. If he didn’t use the computer, he could sell it and earn yearly interest of OMR 100 on the money created through this sale. Mr. Ahmed’s total revenue for the year is OMR 110,000. Instead of working as a consultant for the year, he could teach economics at a small local college and make a salary of OMR 60,000.

1. What is Ahmed’s accounting profit? (1marks)
2. What is Ahmed’s economic profit? (2marks)

3. You are trying to decide whether to go to India on vacation or stay at home and work. If you work, you will earn OMR 15 per hour for the 42-hour workweek. If you go away, you will incur the following costs.
   • Airline ticket                 OMR 700
   • Hotel                            OMR 850
   • Meals                           OMR 500
   • Incidentals                    OMR 200

1. What are the implicit costs of going on the trip?(1 mark)
2. What are the accounting costs of going on the trip? (1 mark)
3. What are the economic costs of going on the trip? (1 mark)

4. The costs of attending the school of economics for one year are OMR 4, 250 for tuition, OMR 1400 for Reference books, OMR 950 for the Hostel room, and OMR 1200 for meals. As another opportunity, the student could earn OMR15, 000 by getting a job instead of going to university and, also, earn 5% interest by saving the money not spent on attending university.

*Calculate                                                                                                          

                 (a) Economic costs (2 marks)

Problem 13-59 (Static) Prepare Budgeted Financial Statements (LO 13-6, 7)

HomeSuites is a chain of all-suite, extended-stay hotel properties. The chain has 15 properties with an average of 200 rooms in each property. In year 1, the occupancy rate (the number of rooms filled divided by the number of rooms available) was 70 percent, based on a 365-day year. The average room rate was $180 for a night. The basic unit of operation is the “night,” which is one room occupied for one night.

The operating income for year 1 is as follows.

In year 1, the average fixed labor cost was $400,000 per property. The remaining labor cost was variable with respect to the number of nights. Food and beverage cost and miscellaneous cost are all variable with respect to the number of nights. Utilities and depreciation are fixed for each property. The remaining costs (management, marketing, and other costs) are fixed for the firm.

At the beginning of year 2, HomeSuites will open three new properties with no change in the average number of rooms per property. The occupancy rate is expected to remain at 70 percent. Management has made the following additional assumptions for year 2.

• The average room rate will increase by 5 percent.
• Food and beverage revenues per night are expected to decline by 20 percent with no change in the cost.
• The labor cost (both the fixed per property and variable portion) is not expected to change.
• The miscellaneous cost for the room is expected to increase by 25 percent, with no change in the miscellaneous revenues per room.
• Utilities and depreciation costs (per property) are forecast to remain unchanged.
• Management costs will increase by 8 percent, and marketing costs will increase by 10 percent.
• Other costs are not expected to change.

Required:

Prepare a budgeted income statement for year 2.

The following table shows age distribution and location of a random sample of 166 buffalo in a national park.

Use a chi-square test to determine if age distribution and location are independent at the 0.05 level of significance.

(a) What is the level of significance?


State the null and alternate hypotheses.

H₀: Age distribution and location are independent.
H₁: Age distribution and location are independent.H₀: Age distribution and location are not independent.
H₁: Age distribution and location are independent.    H₀: Age distribution and location are independent.
H₁: Age distribution and location are not independent.H₀: Age distribution and location are not independent.
H₁: Age distribution and location are not independent.

(b) Find the value of the chi-square statistic for the sample. (Round the expected frequencies to at least three decimal places. Round the test statistic to three decimal places.)


Are all the expected frequencies greater than 5?

YesNo    

What sampling distribution will you use?

uniformchi-square    normalbinomialStudent's t

What are the degrees of freedom?


(c) Find or estimate the P-value of the sample test statistic. (Round your answer to three decimal places.)

p-value > 0.1000.050 < p-value < 0.100    0.025 < p-value < 0.0500.010 < p-value < 0.0250.005 < p-value < 0.010p-value < 0.005

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis of independence?

Since the P-value > α, we fail to reject the null hypothesis.Since the P-value > α, we reject the null hypothesis.    Since the P-value ≤ α, we reject the null hypothesis.Since the P-value ≤ α, we fail to reject the null hypothesis.

(e) Interpret your conclusion in the context of the application.

At the 5% level of significance, there is sufficient evidence to conclude that age distribution and location are not independent.At the 5% level of significance, there is insufficient evidence to conclude that age distribution and location are not independent.    

Problem 2: You operate your own small building company and have decided to bid on a government contract to build a pedestrian walkway in a national park during the coming winter. The walkway is to be of standard government design and should involve no unexpected costs. Your present capacity utilization rate is moderate and allows sufficient scope to understand this contract, if you win it. You calculate your incremental costs to be $268,000 and your fully allocated costs to be $440,000. Your usual practice is to add between 60% and 80% to your incremental costs, depending on capacity utilization rate and other factors. You expect three other firms to also bid on this contract, and you have assembled the following competitor intelligence about those companies. Issue Rival A Rival B Rival C Capacity Utilization At full capacity Moderate Very low Goodwill Considerations Very concerned Moderately concerned Not concerned Production Facilities Small and inefficient plant Medium sized and efficient plant Large and very efficient plant Previous Bidding Pattern Incremental cost plus 35-50% Full cost plus 8-12% Full cost plus 10-15% Cost Structure Incremental costs exceed yours by about 10% Similar cost structure to yours Incremental costs 20% lower but full costs are similar to yours Aesthetic Factors Does not like winter jobs or dirty jobs Does not like messy or inconvenient jobs Likes projects where it can show its creativity Political Factors Decision maker is a relative of the buyer Decision maker is seeking a new job Decision maker is looking for a promotion Show all of your calculations and processes. Describe your answers in three- to five-complete sentences. a.What price would you bid if you must win the project? b.What price would you bid if you want to maximize the expected value of the contribution from this contract? c.Defend your answers with discussion, making any assumptions you feel are reasonable and/or are supported by the information provided.

2.2 While on holiday in Bridlington, Helen had her credit cards and purse stolen from the beach while she was swimming. She was left with only £40, which she had kept in her hotel room, but she had three days of her holiday remaining. She was determined to continue her holiday and decided to make some money to enable her to do so. She decided to sell orange juice to holidaymakers using the local beach. On the first day she bought 80 cartons of orange juice at £0.50 each for cash and sold 70 of these at £0.80 each. On the following day she bought 60 cartons at £0.50 each for cash and sold 65 at £0.80 each. On the third and final day she bought another 60 cartons at £0.50 each for cash. However, it rained and, as a result, business was poor. She managed to sell 20 at £0.80 each but sold off the rest of her inventories at £0.40 each. Required: Prepare an income statement and statement of cash flows for each day’s trading and prepare a statement of financial position at the end of each day’s trading.

2.3 On 1 March, Joe Conday started a new business. During March he carried out the following transactions: 1 March Deposited £20,000 in a newly opened business bank account. 2 March Bought fixtures and fittings for £6,000 cash and inventories £8,000 on credit. 3 March Borrowed £5,000 from a relative and deposited it in the bank. 4 March Bought a motor car for £7,000 cash and withdrew £200 in cash for his own use. 5 March A further motor car costing £9,000 was bought. The motor car bought on 4 March was given in part exchange at a value of £6,500. The balance of purchase price for the new car was paid in cash. 6 March Conday won £2,000 in a lottery and paid the amount into the business bank account. He also repaid £1,000 of the borrowings. Required: Draw up a statement of financial position for the business at the end of each day.

QUESTION 2:

S.B.Consult Ltd, recognized as the leader in hospital supplies, has received an invitation to supply FBC, ECG, and dental machines to Justab Hospital in Kasoa. The contract will be for 10 years, and management is considering appraising the investment to enable them present their proposals for the contract. The following information was extracted from the recently published accounts of S.B. Consult Ltd.

The Treasury unit of S.B.Consult Ltd has estimated that it will require GH¢ 10 million to finance the new project. The total amount would be raised through 10% Irredeemable bonds at the current market price. The cost of Preference shares and Bonds will not change but equity shareholders will demand an increase of 20% on the current cost of equity.

S.B.Consult Ltd has a beta of 0.8, the market risk premium for the steel industry is 6.25%, and the Government of Ghana Bond rate is 20%. The current market price for Irredeemable Bonds of GH¢1,000 nominal value is GH¢850.

S.B. Consult Ltd’s dividend policy is to pay constant dividend and this policy will not change into the foreseeable future. The recent dividend paid was GH¢20 per share. S.B. Consult Ltd is a Free Zones Company and therefore pays tax at a rate of 8%.

Required:

i) Calculate the current market capitalization of S.B. Consult Ltd.                    

(Hint: ?=??+ ? (??−??))

QUESTION 3:

Boateng Plaza Ltd, a hotel leisure company, is currently considering taking over a smaller private limited company, Badin Ltd. The board of Boateng Plaza is in the process of making a bid for Badin Ltd but first needs to place a value on the company.

Boateng Plaza has gathered the following data:

The company’s earnings yield is 12%.

Required:

i) As a Finance Manager, calculate the value of the company based on the present value of expected earnings.                                                                                                            

ii) Explain THREE problems associated with using P/E method for valuing firms.           

It's a complete question, Sir

Determining the Selling Price of a Home Determining how much to pay for a home is one of the more difficult decisions that must be made when purchasing a home. There are many factors that play a role in a home’s value. Location, size, number of bedrooms, number of bathrooms, lot size, and building materials are just a few. Fortunately, the website Zillow.com has developed its own formula for predicting the selling price of a home. This information is a great tool for predicting the actual sale price. For example, the data to the right show the “zestimate”—the selling price of a home as predicted by the folks at Zillow and the actual selling price of the home for homes in Oak Park, Illinois. The graph below, called a scatter diagram, shows the points (291.5, 268), (320, 305), . . . , (368, 385) in a Cartesian plane. From the graph, it appears that the data follow a linear relation. 1. Imagine drawing a line through the data that appears to fit the data well. Do you believe the slope of the line would be positive, negative, or close to zero? Why? 2. Pick two points from the scatter diagram. Treat the zestimate as the value of x and treat the sale price as the corresponding value of y. Find the equation of the line through the two points you selected. 3. Interpret the slope of the line. 4. Use your equation to predict the selling price of a home whose zestimate is $335,000. 5. Do you believe it would be a good idea to use the equation you found in part 2 if the zestimate is $950,000? Why or why not? 6. Choose a location in which you would like to live. Go to www.zillow.com and randomly select at least ten homes that have recently sold. (a) Draw a scatter diagram of your data. (b) Select two points from the scatter diagram and find the equation of the line through the points. (c) Interpret the slope. (d) Find a home from the Zillow website that interests you under the “Make Me Move” option for which a zestimate is available. Use your equation to predict the sale price based on the zestimate. can i get the full answer of this question please

The Question I am needing assistance with is in BOLD BELOW. I will include the other aspects of this assignment for reference, as well as the table used/needed for these calculations.

Option #1: Critical Thinking: Quality at A1 Hotels

A1 Hotels operates luxury hotels throughout the world. Recently, motivated by some incidents that appeared in the news, they have been concerned about the quality of service. The company has been giving the following survey to its clients after their stay:

Any customer who answered “Poor” to at least one of the three questions above is considered to be “dissatisfied.” Traditionally, 40% of customers have been dissatisfied.

A1 Hotels would like to see if the recent level of customer satisfaction has changed. Therefore, 200 survey responses were recently chosen at random for analysis. The complete data set is in the file named Hotels.

Managerial Report

Prepare a report (see below) for A1 Hotels that summarizes your assessment of customer satisfaction. Be sure to include the following seven items in your report

Develop the 92% confidence interval for the proportion of all recent clients who answered “Poor” to service quality. Interpret what the confidence interval tells you about the proportion of all recent clients who answered “Poor” to service quality. What is the corresponding margin of error? How can the margin of error be decreased?

2. #7. Conduct a hypothesis test, using both the p-Value Approach and the Critical Value Approach, to determine if the proportion of all recent clients is more dissatisfied than the traditional level of dissatisfaction. Use α = 0.08 level of significance. Do not forget to include the correctly worded hypothesis and show all of the steps required to conduct the hypothesis test.
   1. What would be possible effects of a lower and then of a higher level of significance?
   2. What other hypothesis tests would you use to better understand hotel customer satisfaction?
   3. What advice would you give A1 Hotels based upon your analysis of the data?
   4. What is the magnitude of the improvement (if any)?
   5. How can this study be improved?

In this assessment you are required to design a wireless campus network for Faber University. This assessment is group assessment and you may work in groups of upto 4 students. To design the wireless campus network for the university you are required to conduct a requirement analysis, propose a design of the network considering the university requirements, carry out a security analysis and propose a WLAN monitoring tool for monitoring the network in the future. The network needs to be designed with an industry tool for example packet tracer, GNS3 etc. The assessment will help in developing an understanding of communication in wireless networks, the security issues and the limitations and challenges. Faber University has recently been experiencing a decreasing level of enrolment. Faber was built in the early 1900s, and until ten years ago, was known as one of the finest centres for higher education on the eastern seaboard. In the last ten years, however, enrolment seemed to plateau and then slowly decline. Faber's Chancellor Jennings has hired a polling agency and formed an action committee composed of faculty, students, and administration to determine the causes of the university's decline in enrolment. The polling agency surveys the graduating seniors and reports that the emerging needs of students are not being met. The new generation of student that the university wants to attract is the technically elite who are known as early technology acceptors. Faber's rich history and, consequently, its old network architecture and lack of technical infrastructure, security and privacy, are its downfall in this new, technological environment. The university has different areas and buildings, the Administration department, the Athletic department, the Engineering department, the Biological Sciences department, the Liberal Arts department, the Student Union, Residential halls, Sports complex, Lake and Park. The campus is spread over large land and each building and open space is 200 meters apart. All the buildings have multiple floors and the current enrolment of students is 5000, there are 50 staff members and guests also visit the campus. As IT students your group has been assigned to design the wireless network. The following process needs to be followed to design a secure wireless campus network that meets the university requirements.

• Requirement Analysis

• Wireless Network Design

• Security Analysis

• Maintenance and Troubleshooting