Exercise 10-8

On December 31, 2016, Splish Inc. borrowed $4,260,000 at 12% payable annually to finance the construction of a new building. In 2017, the company made the following expenditures related to this building: March 1, $511,200; June 1, $852,000; July 1, $2,130,000; December 1, $2,130,000. The building was completed in February 2018. Additional information is provided as follows.

(A) Determine the amount of interest to be capitalized in 2017 in relation to the construction of the building.

Justin Greenway is the heir to a very successful family-owned wine-making business. Decades ago, Justin’s great grandfather bought a large area of land in Yarra Valley where the family has been making wine for generations. Justin is now 35 years old and manages the vineyard. Justin is passionate about harvesting the best grapes to make quality wine.

Justin needs a new heavy-duty tractor to assist in harvesting the grapes. Justin visits a winery equipment business called Winery Equipment Specialists, which is known in the wine making industry to have a wide selection of both general use and specialised tractors.

Justin meets Beth, the manager of Winery Equipment Specialists to discuss purchasing the new tractor. Justin tells Beth that not only does he need a tractor for harvesting grapes for commercial purposes, he also needs a tractor with a special capacity to handle his property which has a few hills on it. He needs the tractor to be able to negotiate its way up and down those hills.

Beth shows Justin a tractor which she says will definitely meet Justin’s needs. A logo exists on the side door of the tractor that says: ‘Super Tractor designed for the hills’. The cost of the tractor is $40,000 and the parties enter into a written contract which states the following:

‘All statutory provisions which would otherwise apply to this transaction are hereby expressly negated’.

The tractor is manufactured by Agricultural Industry Construction Company which has its head office in Melbourne.

Shortly after its purchase and use, the tractor proves to be entirely inappropriate for Justin’s needs at the vineyard. It cannot negotiate the hills on his property and has stalled on many occasions. As a result, Justin cannot harvest the grapes in a timely manner and is worried they will not have enough quality grapes to make wine this year. Justin wants to commence legal action.

REQUIRED:

Advise Justin of all his rights and remedies against both Winery Equipment Specialists and Agricultural Industry Construction Company under the Australian Consumer Law.

Use the data given to develop a Statement of Cash flows for 2007 and calculate change in cash from 2006 in operating, investing and financing activities and reconcile to beginning and ending cash.

Sam, a 32-year-old male who works on a construction site visits his family physician three days after suffering a puncture wound in his foot from a nail gun. The site of the injury is painful, red, warm and swollen with evidence of pus. There are reddish streaks extending up his ankle and lower leg. His temperature is 38.3°C. Describe the molecular details on how the above signs and symptoms occurred.

Which of the below is the best description for this test?

2 x 3 ANOVA

Two DVs were measured at the interval level. The IVs numbered 3.

Two IVs were operating: sex (male / female) and proficiency (high / medium / low).

Six variables were under study but nothing else can be known from this little information.

The 2 x 3 construction transforms this Factoral ANOVA into a Factoral MANOVA.

which one?

Sam, a 32-year-old male who works on a construction site visits his family physician three days after suffering a puncture wound in his foot from a nail gun. The site of the injury is painful, red, warm and swollen with evidence of pus. There are reddish streaks extending up his ankle and lower leg. His temperature is 38.3°C. Describe the molecular details on how the above signs and symptoms occurred.

A construction management company is examining its cash flow requirements for the next few years. The company expects to replace software and in-field computing equipment at various times. Specifically, the company expects to spend $6,000 1 year from now, $9,000 3 years from now, and $13,000 each year in years 6 through 10. What is the future worth in year 10 of the planned expenditures, at an interest rate of 14% per year?

A hospital receives the following promises to give:

Unconditional promise to give $25,000. The $25,000 can be used for any purpose that the hospital chooses

Conditional promise to give of $10,000 if the hospital purchases a new X-Ray scanner. The $10,000 must be used to maintain the X-Ray machine (if purchased)

Unconditional promise to give of $100,000 to be used for the construction of a new building.

How much contribution revenue should the hospital recognize from these promises to give?

You run a construction firm. You have just won a contract to build a government office complex. Building it will require an investment of $ 10.2$10.2 million today and $ 5.4$5.4 million in one year. The government will pay you $ 21.4$21.4 million in one year upon the​ building's completion. Suppose the interest rate is 10.2 %10.2%. a. What is the NPV of this​ opportunity? b. How can your firm turn this NPV into cash​ today?