EcoSacks manufactures cloth shopping bags. The controller is preparing a budget for the coming year and asks for your assistance. The following costs and other data apply to bag production.

You learn that equipment costs and building occupancy are fixed and are based on a normal production of 600,000 units per year. Other overhead costs are variable. Plant capacity is sufficient to produce 750,000 units per year.

Labor costs per hour are not expected to change during the year. However, the cotton supplier has informed EcoSacks that it will impose a 20 percent price increase at the start of the coming budget period. No other costs are expected to change.

During the coming budget period, EcoSacks expects to sell 540,000 bags. Finished goods inventory is targeted to increase from the current balance of 120,000 units to 210,000 units to prepare for an expected sales increase the year after next as a result of legislation in several states regarding plastic bags. Production will occur evenly throughout the year. Inventory levels for cotton and canvas are expected to remain unchanged throughout the year. There is no work-in-process inventory.

Required:

a. Prepare a production budget for the coming year.

b. Estimate the materials, labor, and overhead costs for the coming year.

Ghost, Inc., has no debt outstanding and a total market value of $382,500. Earnings before interest and taxes, EBIT, are projected to be $52,000 if economic conditions are normal. If there is strong expansion in the economy, then EBIT will be 14 percent higher. If there is a recession, then EBIT will be 23 percent lower. The company is considering a $190,000 debt issue with an interest rate of 7 percent. The proceeds will be used to repurchase shares of stock. There are currently 8,500 shares outstanding. Ignore taxes for questions a and b. Assume the company has a market-to-book ratio of 1.0 and the stock price remains constant.

On January 1, 2020, Concord Inc.’s general ledger had these liability accounts:

In addition, Concord had a balance in HST Receivable of $4,200 at January 1, 2020. Concord uses a periodic inventory system, operates in the Province of Ontario where HST is 13% and follows ASPE. Concord’s required premium for EI is 1.4 times the employee premium; for CPP, it is 1.0 times the employee contribution.

In January 2021, the following transactions occurred:

Prepare all the journal entries necessary to record the transactions noted above as they occurred

1. (To record cash sales plus HST)
2. (To record service revenue for cash previously received)
3. (Remitted HST payable)
4. (Remitted payroll deduction)
5. (To record purchase of equipment on account)     
6. (To record payment of monthly payroll)       
7. (To record employer benefits expense)

Beckman Engineering and Associates (BEA) is considering a change in its capital structure. BEA currently has $20 million in debt carrying a rate of 6%, and its stock price is $40 per share with 2 million shares outstanding. BEA is a zero growth firm and pays out all of its earnings as dividends. The firm's EBIT is $14.039 million, and it faces a 40% federal-plus-state tax rate. The market risk premium is 6%, and the risk-free rate is 7%. BEA is considering increasing its debt level to a capital structure with 40% debt, based on market values, and repurchasing shares with the extra money that it borrows. BEA will have to retire the old debt in order to issue new debt, and the rate on the new debt will be 12%. BEA has a beta of 1.0.

What is the total value of the firm with 40% debt? Enter your answers in millions. For example, an answer of $10,550,000 should be entered as 10.55. Do not round intermediate calculations. Round your answer to three decimal places.
$ ___ million

1. What is BEA's unlevered beta? Use market value D/S (which is the same as w_d/w_s) when unlevering. Do not round intermediate calculations. Round your answer to two decimal places.
   _____
2. What are BEA's new beta and cost of equity if it has 40% debt? Do not round intermediate calculations. Round your answers to two decimal places.
   Beta: ____
   Cost of equity: ____ %
3. What are BEA’s WACC and total value of the firm with 40% debt? Do not round intermediate calculations. Round your answer to two decimal places.
   _____%

The following data were selected from the records of Sykes Company for the year ended December 31, Current Year. Balances January 1, Current Year Accounts receivable (various customers) $ 117,000 Allowance for doubtful accounts 6,000 In the following order, except for cash sales, the company sold merchandise and made collections on credit terms 4/10, n/30 (assume a unit sales price of $700 in all transactions and use the gross method to record sales revenue). Transactions during Current Year

Sold merchandise for cash, $248,000.

Sold merchandise to R. Smith; invoice price, $11,500.

Sold merchandise to K. Miller; invoice price, $23,000.

Two days after purchase date, R. Smith returned one of the units purchased in (b) and received account credit.

Sold merchandise to B. Sears; invoice price, $26,000.

R. Smith paid his account in full within the discount period.

Collected $99,000 cash from customer sales on credit in prior year, all within the discount periods.

Miller paid the invoice in (c) within the discount period.

Sold merchandise to R. Roy; invoice price, $20,500.

Three days after paying the account in full, K. Miller returned seven defective units and received a cash refund.

After the discount period, collected $6,000 cash on an account receivable on sales in a prior year.

Wrote off a prior year account of $5,000 after deciding that the amount would never be collected.

The estimated bad debt rate used by the company was 1.0 percent of credit sales net of returns.

Question 28

MA₂B₂ is a molecule where M is the central atom bonded to 2 atoms of A and 2 atoms of B. The fact that it exists in only one form (no isomers) suggests its geometry is

Select one:

a. octahedral

b. square planar

c. tetrahedral

d. trigonal planar

Question 29

A compound is found to consist of 28.1% sodium, 13.2% boron and 58.7% oxygen. What is its simplest formula?

Select one:

a. NaBO₂

b. NaBO₃

c. Na₂B₄O₇

d. Na₃BO₃

Question 30

What mass of carbon is present in 0.500 mol of phenol (C₆H₅OH)?

Select one:

a. 94 g

b. 47 g

c. 36 g

d. 6 g

Question 31

A 4.000 g sample of an unknown metal, M, was completely burned in excess O₂ to yield 0.02225 mol of the metal oxide, M₂O₃. What is the metal?

Select one:

a. Y

b. Ca

c. Al

d. Sc

Question 32

What is the maximum mass in grams of aluminum chloride that could be obtained from 2.50 mol of barium chloride and excess aluminum sulfate? This is the balanced equation for the reaction: Al₂(SO₄)₃ + 3BaCl₂--> 3BaSO₄ + 2AlCl₃. BaCl₂molar mass is 208.3 g/mol and AlCl₃molar mass is 133.3 g/mol.

Select one:

a. 521 g

b. 334 g

c. 222 g

d. 55.8

Question 33

1.0 x 10^-5 g sample of a compound is known to contain 1.36 x 10¹⁷ molecules. This compound is

Select one:

a. CO₂

b. CH₄

c. NH₃

d. H₂O

CASE: On January 1, CBU installed a new computer system for tracking and calculating inventory costs. On December 31, at year-end closing, CBU’s system reported inventory at $4.5 million for financial statement purposes. At midnight, the auditors performed a physical inventory count and found the inventory total to be $3.5 million. To correct the discrepancy, CBU’s accounting staff processed an adjusting entry to reduce inventory by $1.0 million. The next day, 2 accountants were discussing the events of the previous night.

Accountant A was proud of the audit and said it illustrated a benefit of having a good system of internal control. CBU had followed good internal control procedures by having a regular physical inventory count to safeguard a valuable enterprise resource. Accountant A was relieved that the problem was resolved: the financial numbers were corrected before they were reported. In short, he felt successful and thought CBU should feel fortunate to have his accounting staff as control advisors.

Accountant B felt differently. She was concerned about the bad decisions that were made throughout the year based on the incorrect inventory numbers. She felt that she and the other accountants should have helped develop more timely and effective system controls.

Please discuss the following in details. Be sure to explain your reasonings and used scholarly sources to support your reasoning:

With which accountant’s philosophy do you agree?

How can you explain the diverse opinions?

What policies or procedures, if any, should CBU develop to avoid such problems in the future?

Your response should also include a Biblical perspective.

A common design requirement is that an environment must fit the range of people who fall between the 5th percentile for women and the 95th percentile for men. In designing an assembly work​ table, the sitting knee height must be​ considered, which is the distance from the bottom of the feet to the top of the knee. Males have sitting knee heights that are normally distributed with a mean of 21.5 in. and a standard deviation of 1.1 in. Females have sitting knee heights that are normally distributed with a mean of 19.6 in. and a standard deviation of 1.0 in. Use this information to answer the following questions.

-> What is the minimum table clearance required to satisfy the requirement of fitting 95% of men?

-> Determine if the following statement is true or false. If there is clearance for 95% of males, there will certainly be clearance for all women in the bottom 5%.

A. The statement is true because some women will have sitting knee heights that are outliers.

B. The statement is false because some women will have sitting knee heights that are outliers.

C. The statement is true because the 95th percentile for men is greater than the 5th percentile for women.

D. The statement is false because the 95th percentile for men is greater than the 5th percentile for women.

-> The author is writing this exercise at a table with a clearance of 23.9 in. above the floor. What percentage of men fit this table?

-> What percentage of women fit this table?

-> Does the table appear to be made to fit almost everyone? Choose the correct answer below.

A. The table will fit almost everyone except about 22% of men with the largest sitting knee heights.

B. The table will fit only 22% of men.

C. The table will only fit 1% of women.

D. Not enough information to determine if the table appears to be made to fit almost everyone.

Hampton Investment Co. is a U.S. firm that executes a carry trade in which it borrows euros (where interest rates are presently low) and invests in British pounds (where interest rates are presently high).

Hampton uses $100,000 of its own funds and borrows an additional 600,000 euros and convert to British Pounds.

It will pay 0.5% interest on euros borrowed for the next month and will earn 1.0 % on funds invested in British pounds.

Assume that the euro’s spot rate is $1.20 and that the British pound’s spot rate is $1.80. The pound is worth 1.5 euros at this time.

Hampton uses today’s spot rate as its best guess of the spot rate one month from now.

Calculate Hampton’s expected profits from its carry trade. Fill the answers for questions A to J

At Beginning of Investment Period

A. Hampton invests $100,000 of its own funds into British pounds: Convert to British pounds

=

B. Hampton borrows 600,000 euros - convert them into British pounds:

=

C. Hampton’s total investment in pounds (A+B):

=

At the End of Investment Period

D. Hampton's receipt from investment (amount from C + interest 1%):

=

E. Hampton's repayment of loan (600,000 Euros) with interest (0.5%):

=

F. Amount of pounds Hampton needs to repay loan in euros (Convert E into Pounds):

=

G. Amount of pounds Hampton has after repaying loan (D-F):

=

H. Hampton converts pounds held into U.S. dollars (Convert G into $):

=

I. Hampton’s profit (H-$100,000):

=

J. The above profit of Hampton as a percentage of its own funds used in this carry trade strategy over a one-month period is therefore I/$100,000

=

Tanner-UNF Corporation acquired as a long-term investment $260 million of 6% bonds, dated July 1, on July 1, 2018. The market interest rate (yield) was 8% for bonds of similar risk and maturity. Tanner-UNF paid $220 million for the bonds. The company will receive interest semiannually on June 30 and December 31. Company management is holding the bonds in its trading portfolio. As a result of changing market conditions, the fair value of the bonds at December 31, 2018, was $230 million.

Required:
1. & 2. Prepare the journal entry to record Tanner-UNF’s investment in the bonds on July 1, 2018 and interest on December 31, 2018, at the effective (market) rate.
3. Prepare any additional journal entry necessary for Tanner-UNF to report its investment in the December 31, 2018, balance sheet.
4. Suppose Moody’s bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $200 million. Prepare the journal entries to record the sale.

1.

(These two JE boxes are correct). :) See bold box below!

Suppose Moody’s bond rating agency downgraded the risk rating of the bonds motivating Tanner-UNF to sell the investment on January 2, 2019, for $200 million. Prepare the journal entries to record the sale.