Carrington would invest in software and some hardware upgrades that will allow them to better analyze the traffic coming in to their website. Total acquisition costs for this option are estimated to be $400,000. This improved analytics capability is expected to lead to increased revenue of $80,000 in year 1, $120,000 in year 2, $250,000 in year 3, $350,000 in year 4, and $500,000 in year 5. The estimated cost of this obtaining this revenue will be 20% per revenue dollar related to sales staff that will analyze this data and use it to generate new client relationships. Carrington will also incur fixed cost of $10,000 per year related to software updates and hardware maintenance. Carrington will set aside $250,000 in working capital for this project and this capital will be recovered at the end of 5 yrs. The salvage value of the new equipment will be $9,000 at the end of 5 yrs. Carrington uses a 10% hurdle rate to evaluate all projects, Acquisition costs qualify for modified accelerated depreciation of 50,30, and 20% in the first three yrs, Being profitable company income would be taxed at Carrington's tax rate of 30%, and all dollar values referenced in this case are in nominal dollars so for analysis ignore the effect of inflation.

1. Calculate the payback period, internal rate of return, and NPV.

2. The data analytics program pays off a lot faster than expected. Revenue is projected to be $200,000 in yr 1, $250,000 in yr 2, $250,000 in yr 3, $300,000 in yr4, and $300,000 in yr 5.

3.A great tax plan. Congress is proposing a new corporate tax plan that reduces the federal tax rate that Carrington pays from 30% to 20%. However, this tax plan would also do away with MACRS and replace it with straight line depreciation for tax purposes ( over 5 yrs).

a. Using the original estimates for your designated option, estimate the effect of this tax plan on NPV.

b. Next, given the uncertainty related to the effect of the proposed tax plan on future business, use a 14% hurdle rate instead of the 10% hurdle rate used before in estimating the effect of the plan (i.e just redo 4A).

4. What are some qualitative concerns related to accepting this designated option. Discuss and list at least 2. Provide why each would be considered an advantage or disadvantage.

1. You work for Mooney’s Consulting. They have assigned you to an engagement with Anavrin a healthfood café based in Los Angeles. The company currently only produces and sells organic sandwiches, pastries, coffee, and smoothies. They currently spend anywhere from $5,000 to $25,000 per year on marketing with the majority of this being on billboards and viral media targeted at the Los Angeles market. They maintain all their records within an Access database. They have provided you with access to their database which contains the last eight years of data about the company, including all sales, spending, customers, vendors, and employees. Anavrin has hired Mooney’s Consulting (You) to determine if their advertising budget and approach is optimal.

Required: Below, write each step of the IMPACT cycle then determine the steps you would take pertaining to this specific engagement for each step of the cycle. Be specific on what actions you would take, writing at least 3 sentences describing your actions for each step.

Bakar Enterprise entered into the following transactions during September 2016:

Required:

Indicate with the appropriate letter in the last column whether each of the above transactions.

(a)    An increase in assets and a decrease in assets.

(b)   An increase in assets and an increase in equity.

(c)    An increase in assets and an increase in liabilities.

(d)   A decrease in assets and a decrease in equity.

(e)   A decrease in assets and a decrease in liabilities.

(f)     An increase in liabilities and a decrease in equity.

(g)    An increase in equity and a decrease in liabilities.

Country Furniture Company manufactures furniture at its​ Akron, Ohio, factory. Some of its costs from the past year​ include:

Depreciation on sales office ​$     9,600

Depreciation on factory equipment 16,800

Factory supervisor salary 50,000

Sales commissions 23,400

Lubricants used in factory equipment 3,800

Insurance costs for factory 21 comma 000 21,000

Wages paid to maintenance workers 115 comma 600 115,600

Fabric used to upholster furniture 10 comma 700 10,700

Freight minus −in ​(on raw​ materials) 3 comma 300 3,300

Costs of delivery to customers 9 comma 700 9,700

Wages paid to assembly minus −line workers 115 comma 700 115,700

Lumber used to build product 82 comma 700 82,700

Utilities in factory 54 comma 400 54,400

Utilities in sales office 26 comma 400 26,400

Manufacturing overhead costs for Country Furniture Company totaled

System Architecture

Passing Lane is a small trucking company headquartered in Portland, Oregon. Passing Lane’s information system consists of a file server and three workstations where freight clerks enter data, track shipments, and prepare freight bills. To perform their work, the clerks obtain data from the server and use database and spreadsheet programs stored on stand-alone PCs to process the data. At your meeting yesterday, Passing lane’s president approved your recommendation to create a relational database to handle operations and provide links for the company’s shippers and customers.

Tasks

1. What would be the advantages of selecting an Internet-based architecture for Passing Lane’s system?

2.  Since the firm is growing rapidly, what design features should be included in the new system to ensure it can grow with the company.

3.  Given that Passing Lane currently uses computers for managing their operations, what design considerations should be given to legacy systems? Explain your answer.

Exercise 10-14 Sunland Inc. has decided to purchase equipment from Central Michigan Industries on January 2, 2017, to expand its production capacity to meet customers’ demand for its product. Sunland issues a(n) $880,000, 5-year, zero-interest-bearing note to Central Michigan for the new equipment when the prevailing market rate of interest for obligations of this nature is 11%. The company will pay off the note in five $176,000 installments due at the end of each year over the life of the note.

1.Prepare the journal entry at the date of purchase.

2.Prepare the journal entry at the end of the first year to record the payment and interest, assuming that the company employs the effective-interest method.

3.Prepare the journal entry at the end of the second year to record the payment and interest.

4.Assuming that the equipment had a 10-year life and no salvage value, prepare the journal entry necessary to record depreciation in the first year. (Straight-line depreciation is employed.)

Respond to this: Starbucks has a big brand presence online. They are one of the most engaging companies throughout different social media platforms. If you are a fan of Starbucks coffee and a little bit internet savvy, then chances are you have come across at least one of Starbucks's social media platforms. It's online images and messages has stayed consistent with their brand values, which are honesty, sincerity, and connecting with their customers on a level unlike any other brand.

Name: Gigi Age: 29 Occupation: Business Owner Salary: 100k Interests: Social media, watching tv, cooking dinner for her family, and hiking. Starbucks purchases: 5+ Days a Week

Name: Afsi Age: 56 Occupation: Sales /Retail Salary: 65k Interests: Her family, cooking, going on vacation, and Starbucks purchases: 3-4 Days a Week

Name: Mike Age: 38 Occupation: Accountant Salary: 150k Interests: Family, real estate, small businesses, going to the gym, eating healthy. Starbucks purchases: 5+ Days a week

I think the most effective marketing strategies for a company like Starbucks that brands itself through images and videos - is social media platforms such as Facebook and Instagram. Starbucks has a large number of followers on social media and this has helped it connect with their fans and followers and engage with them better. Starbucks uses social media platforms such as Facebook to share new product information, announce job openings, or share their specials and other exciting news through their Facebook account. They also use their Facebook accounts to not only engage with their customers but also address their complaints and issues (if there are any). Twitter is also another social media platform that is a great option for Starbucks to post real-time updates and for marketing their brand. Starbucks also uses several Twitter accounts that are updated regularly by posting new pictures, updates, and videos, to keep the fans and followers engaged and to keep the audience updated. Instagram is also another social media platform that Starbucks has used successfully to brand itself through posting pictures and videos and targeting different markets. I think each of these social media platforms has different advantages for a company like Starbucks. The use of these different social media platforms (Facebook, Instagram, Twitter) to not only brand itself but also target different markets and gain the attention of potential customers to hopefully gain new customers as well.

Question:

Very insightful with your analytics and persona. But I like to know more detail about the personas? Since you listed 3 (And only had to do 1), tell me how they differ? Based on the persona, which social channel resonates with them the best? For those making 6 figure salary, is their shopping habits different from Mike? You think they could buy more, if so let me know.

Think about how each person would react to different campaigns and marketing strategies.

ACC 650 - REVISED PROBLEM 14-47 #3

Tipton One-Stop Decorating sells paint and paint supplies, carpet, and wallpaper at a single-store location
in suburban Des Moines. Although the company has been very profitable over the years, management
has seen a significant decline in wallpaper sales and earnings. Much of this decline is attributable to
the Internet and to companies that advertise deeply discounted prices in magazines and offer customers
free shipping and toll-free telephone numbers. Recent figures follow.

Tipton is studying whether to drop wallpaper because of the changing market and accompanying
loss. If the line is dropped, the following changes are expected to occur.

1) The vacated space will be remodeled at a cost of $22,600 and will be devoted to an expanded line
of high-end carpet. Sales of carpet are expected to increase by $130,000 and the line's overall
contribution margin ratio will rise by five percentage points.
2) Tipton can cut wallpaper's fixed costs by 60 percent. Remaining fixed costs will continue
to be incurred.
3) Customers who purchased wallpaper often bought paint and paint supplies. Sales of paint and paint
supplies are expected to fall by 30 percent.
4) The firm will increase advertising expenditures by $35,000 to promote the expanded carpet line.

Required:
3. What advantages might Internet- and magazine-based firms have over Tipton that would allow
these organizations to offer deeply discounted prices-prices far below what Tipton can offer?