Conch Republic Electronics is a midsized electronics Q1anufacturer located in Key West, Florida. The company president is Shelly Couts, who inherited the company. The company originally repaired radios and other household appliances when it was founded over 70 years ago. Over the years, the company has expanded, and it is now a reputable manufacturer of various specialty electronic items. Jay Mccanless, a recent MBA graduate, has been hired by the company in its finance department. One of the major revenue-producing items manufactured by Conch Republic is a smart phone. Conch Republic currently has one smart phone model on the market and sales have been excellent. The smart phone is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current smart phone has limited features in comparison with newer models. Conch Republic spent $750,000 to develop a prototype for a new smart phone that has all the features of the existing one but adds new features such as wifi tethering. The company has spent a further $200,000 for a marketing study to determine the expected sales figures for the new smart phone. ___.

Conch Republic can manufacture the new smart phone for $199 each in variable costs. Fixed costs for the operation are estimated to run $5.5 Million per year. The estimated sales volume is 64,000, 115,000, 90,000, 75,000, and 54,000 per year for the next five years, respectively. The unit price of the new smart phone will be $485. The necessary equipment can be purchased for $60 Million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $6.25 Million.

Net working capital for the smart phones will be 22 percent of sales and will occur with the time of cash flows for the year (i.e. there is no initial outlay for NWC). Changes in NWC will thus first occur in Year 1 with the first year’s sales. Conch Republic has 22 percent tax rate and a required return of 12 percent.

Shelly has asked Jay to prepare a report that answer the following questions using Microsoft EXCEL:

1. What is the payback period of the project?

2. What is the profitability index of the project?

3. What is the IRR of the project?

4. What is the NPV of the project?

5. How sensitive is the NPV to changes in the price

of the new smart phone?

6. How sensitive is the NPV to changes in the quantity

sold?

7. Should Conch Republic produce the new smart

phone?

8. Suppose Conch Republic loses sales on other

models because of the introduction of the new

model. How would this affect your analysis?

Conch Republic Electronics

Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelly Couts, who inherited the company. The company originally repaired radios and other household appliances when it was founded more than 70 years ago. Over the years, the company has expanded, and it is now a reputable manufacturer of various specialty electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company in its finance department.

One of the major revenue-producing items manufactured by Conch Republic is a smartphone. Conch Republic currently has one smartphone model on the market and sales have been excellent. The smartphone is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current smartphone has limited features in comparison with newer models. Conch Republic spent $750,000 to develop a prototype for a new smartphone that has all the features of the existing one but adds new features such as wifi tethering. The company has spent a further $200,000 for a marketing study to determine the expected sales figures for the new smartphone.

Conch Republic can manufacture the new smartphone for $205 each in variable costs. Fixed costs for the operation are estimated to run $5.1 million per year. The estimated sales volume is 64,000, 106,000, 87,000, 78,000, and 54,000 per year for the next five years, respectively. The unit price of the new smartphone will be $485. The necessary equipment can be purchased for $34.5 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $5.5 million.

Net working capital for the smartphones will be 20 percent of sales and will occur with the timing of the cash flows for the year (i.e., there is no initial outlay for NWC). Changes in NWC will thus first occur in Year 1 with the first year's sales. Conch Republic has a 35 percent corporate tax rate and a required return of 12 percent.

Shelly has asked Jay to prepare a report that answers the following questions:

QUESTIONS

1. What is the payback period of the project?What is the profitability index of the project?What is the IRR of the project?What is the NPV of the project?  

*************************************************************** here is a template to begin with

onch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelly Couts, who inherited the company. The company originally repaired radios and other household appliances when it was founded more than 70 years ago. Over the years, the company has expanded, and it is now a reputable manufacturer of various specialty electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company in its finance department.

One of the major revenue-producing items manufactured by Conch Republic is a smartphone. Conch Republic currently has one smartphone model on the market and sales have been excellent. The smartphone is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current smartphone has limited features in comparison with newer models. Conch Republic spent $750,000 to develop a prototype for a new smartphone that has all the features of the existing one but adds new features such as wifi tethering. The company has spent a further $200,000 for a marketing study to determine the expected sales figures for the new smartphone.

Conch Republic can manufacture the new smartphone for $205 each in variable costs. Fixed costs for the operation are estimated to run $5.1 million per year. The estimated sales volume is 64,000, 106,000, 87,000, 78,000, and 54,000 per year for the next five years, respectively. The unit price of the new smartphone will be $485. The necessary equipment can be purchased for $34.5 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $5.5 million.

Net working capital for the smartphones will be 20 percent of sales and will occur with the timing of the cash flows for the year (i.e., there is no initial outlay for NWC). Changes in NWC will thus first occur in Year 1 with the first year's sales. Conch Republic has a 35 percent corporate tax rate and a required return of 12 percent.

Shelly has asked Jay to prepare a report that answers the following questions:

1. What is the payback period of the project?

2. What is the profitability index of the project?

3. What is the IRR of the project?

4. What is the NPV of the project?

5. How sensitive is the NPV to changes in the price of the new smartphone?

6. How sensitive is the NPV to changes in the quantity sold?

7. Should Conch Republic produce the new smartphone?

8. Suppose Conch Republic loses sales on other models because of the introduction of the new model. How would this affect your analysis?

PLEASE ANSWER ALL QUESTIONS USING EXCEL. THANK YOU!

Robin and Jimmy owned the RJ partnership. Robin, without consulting with Jimmy, appointed her cousin Becka as RJ’s exclusive sales agent for the Kansas City, Missouri area. Jimmy, without consulting with Robin, hired his cousin Karlie as RJ’s exclusive sales agent for the Kansas City, Missouri area. At first, there was considerable conflict and tension between the two agents, but, in 2019, they began to overcharge customers, collecting a 25% down payment from customers, giving half to RJ and splitting the balance between themselves.

In early 2020, both agents were terminated by RJ. In January, all of Becka’s and Karlie’s customers were notified of the termination. In addition, RJ identified all potential customers in Kansas City, Missouri and they were all notified of the termination of the agents.

To avoid criminal prosecution, Becka escaped to Greenland for the weather (it does have “green” in its name). Karlie decided to attempt two more big scores. She contacted two of RJ’s customers and representing herself as RJ’s agent sold $100,000 of merchandise to Rebecca and $50,000 of merchandise to Mary Beth. Rebecca was a former customer whom Karlie had sold merchandise to when she had actual authority from RJ. Mary Beth was from Kansas City, Kansas and although she was a prior customer of RJ she had had no prior dealings with Karlie. Karlie collected a 25% down payment and joined Becka in Greenland.

Answer the following questions, providing a legal rationale for each answer.

1. What cause of action would Becka and Karlie have against RJ?

2. What argument would Rebecca made that RJ is liable under the contract? What      reply would RJ make?

3. What argument would Mary Beth made that RJ is liable under the contract? What      reply would RJ make?

4. Between Rebecca and Mary Beth who has the strongest argument?

Required information

Use the following information for the Exercises below.

[The following information applies to the questions displayed below.]

Laker Company reported the following January purchases and sales data for its only product.

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 245 units, where 210 are from the January 30 purchase, 5 are from the January 20 purchase, and 30 are from beginning inventory.

Exercise 5-4 Perpetual: Income effects of inventory methods LO A1

Required:
1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,400 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)

Consolidated Worksheet and Balance Sheet on the Acquisition Date (Equity Method)Consolidated Worksheet and Balance Sheet on the Acquisition Date (Equity Method) Peanut Company acquired 90 percent of Snoopy Company's outstanding common stock for $270,000 on January 1, 20X8, when the book value of Snoopy's net assets was equal to $300,000. Peanut uses the equity method to account for investments. Trial balance data for Peanut and Snoopy as of January 1, 20X8, are as follows:

Peanut Company Snoopy Company

Assets  

Cash 55,000 20,000   

Accounts Receivable 50,000 30,000  

 Inventory 100,000 60,000   

Investment in Snoopy Stock 270,000  

 Land 225,000 100,000   

Buildings & Equipment 700,000 200,000   

Accumulated Depreciation  (400,000)  (10,000)

Total Assets 1,000,000 400,000

Liabilities & Stockholders' Equity   

Accounts Payable 75,000 25,000   

Bonds Payable 200,000 75,000   

Common Stock 500,000 200,000   

Retained Earnings  225,000 100,000

Total Liabilities & Equity 1,000,000 400,000

Required: Prepare the journal entry on Peanut's books for the acquisition of Snoopy on January 1, 20X8.

Prepare a consolidation worksheet on the acquisition date, January 1, 20X8, in good form.

Prepare a consolidated balance sheet on the acquisition date, January 1, 20X8, in good form.

Question 16 In recent years, the growth in foreign-owned debt has a. Substantially weakened the U.S. economy b. Helped the U.S. economy by keeping the supply of loanable funds higher than it would be otherwise c. Harmed the U.S. economy by driving up the cost of borrowing d. Harmed the U.S. economy by sending jobs overseas e. Not affected the U.S. economy 5 points Question 17 When U.S. housing prices declined prior to and during the Great Recession, it caused aggregate demand to decrease because a. The government raised interest rates to prevent inflation b. Household wealth decreased, causing a decline in consumer spending c. The U.S. population and labor force declined abruptly d. The government refused to allow the money supply to increase e. The government raised taxes and decreased spending 5 points Question 18 What is the most appropriate way to compare budget deficits/surpluses across time a. Using nominal dollar figures b. Using real dollar figures c. Calculating figures as a portion of gross domestic product (GDP) d. Using per capita dollar figures e. Budget figures cannot be compared across time 5 points Question 19 One proposed solution to the funding problems faced by Social Security and Medicare is to implement means-testing, so that only those with limited retirement funds would qualify for the government benefits. An unintended consequence of such a requirement may be a. An increase in private savings b. A decrease in the incentive to save for retirement c. Improved solvency for Social Security and Medicare d. Fewer elderly people receiving benefits e. That some workers paying into the programs never receive any benefits from the program 5 points Question 20 The goal of contractionary fiscal policy is to shift the ____________ curve to the ___________ a. Aggregate demand; left b. Aggregate demand; right c. Short-run aggregate supply; right d. Short-run aggregate supply; left e. Long-run aggregate supply; left

On February 1, 2020, Concord Ltd. began selling electric scooters that it purchased exclusively from Ionone Motors Inc. Ionone Motors offers volume rebates based on the volume of annual sales to its customers and calculates and pays the rebates at its fiscal year end, December 31. Concord has a September fiscal year end and uses a perpetual inventory system. The rebate offer that Concord received is for a $75 rebate on each scooter that is purchased in excess of 150 units in the calendar year, ending December 31. An additional rebate of $30 is given for all units purchased in excess of 175 units in the same year. By September 30, 2020, Concord had purchased 170 units from Ionone Motors and had sold all but 35. Although it only made its first purchase on February 1, 2020, Concord expects to purchase a total of 205 electric scooters from Ionone Motors by December 31, 2020. Before arriving at the estimate of 205 electric scooters, Concord’s management looked carefully at trends in purchases by its competitors and the strong market for sales of electric scooters in the coming months; sales are especially strong among environmentally conscious customers in suburban areas. Management is very confident the 205 electric scooters will be purchased by December 31, 2020.

Assuming that Concord follows the reporting requirements under ASPE, answer the following questions.

Calculate the amount of any accrued rebate to be recorded by Concord at September 30, 2020, assuming that the rebate is not discretionary and that management has a high degree of confidence in its estimate of the amount of purchases that will occur by December 31, 2020. (Round per unit rate to 2 decimal places, e.g. 1.25 and final answer to 0 decimal places, e.g. 5,275.)

eTextbook and Media

Assistance Used

List of Accounts

Record the accruals that are needed at Concord’s fiscal year end of September 30, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,125.)

eTextbook and Media

List of Accounts

How would your response change if Concord followed the reporting requirements of IFRS?

Ivanhoe Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.

Unrecorded transactions and adjustments:

(Ignore income taxes.)

Case Study: Insurance ‘Cartel’ Gets ServedNew York attorney general Eliot Spitzer recently served subpoenas to several of the nation’s largest insurance companies seeking information on price-fixing and bid rigging. Many of the companies admitted to paying kickbacks to insurance brokers in exchange for preferential treatment and also to submitting fake bids to mislead customers. Spitzer told his staff that this behavior was the “same kind of cartel-like behavior carried out by organized crime.”Spitzer charged that Marsh & McLennan Cos., Inc., the world’s largest insurance company, rigged bids and collected huge kickbacks for sending business to certain companies, cheating corporate clients in the process. Businesses in need of insurance hire insurance brokers like Marsh to find the best deal for them. Spitzer maintains that Marsh, and other big brokers, conspired to cheat these corporate clients. Some allegations indicate that bids were even falsified, and representatives from companies submitting fake bids were oftensent to introduce realism to the “fake” competition for business.Marsh & McLennan Companies are not new to scandal. Last year, it’s Putnam Investments unit settled mutual fund scandal charges against it for $110 million. This year, another Marsh unit admitted to providing false information to the board of the New York Stock Exchange about the pay of NYSE’s former chairman, Dick Grasso. Insurance company stocks have fallen in price by several billions following Spitzer’s allegations. Marsh stock alone fell $9 billion in market value in two days following the inquiry. Talking it Over and Thinking it Through:

1.What is a cartel?

2.Why are cartels considered to be ‘bad’?

3.What insurance industry characteristics resemble a cartel?

4.Why Insurance company stocks were declined?