What is the outlook for Verizon Communication Inc. for the year 2020 and beyond in terms of growth, opportunities or challenges for the business in the Telecom industry.
In: Accounting
New and used personal property placed in service in 2020 and used in a trade or business qualifies for additional first-year depreciation.
In: Accounting
Dubai Expo 2020
Brief about industry/firm Focus of this project-expansion
other opportunity or weakness/competition
Implications
In: Operations Management
the question is what if I early distribution from 401K, what percentage should I pay the addition tax in 2020?
In: Accounting
Write a research paper that seeks to establish the roles that Hospitality and Tourism Management plays in addressing any environmental issues of 2020
In: Operations Management
what are the goals and objectives of Xiaomi Corporation from 2020 to 2025.
(Use your own words at least 500 words)
In: Operations Management
FX, Inc. is a volume manufacturer of high technology automotive mirrors (including cell link and voice activation). FX is looking to expand their operations to add a second product line capable of producing 1.3 Million units per year. The equipment investment cost for this new operation is $27 Million. The project falls under a 7 year MACRS class life and the company estimates that the salvage value will be $2.7 Million at the end of the 6 year project. The average selling price for each mirror is $85 per unit. The annual expected sales shown below:
|
Year |
2020 |
2021 |
2022 |
2023 |
2024 |
2025 |
|
Volume (000) |
600 |
750 |
1000 |
1200 |
1200 |
1200 |
The material cost for each mirror is $20 (with 25 % of the material imported from Canada and 35% from Mexico). The labor to produce each mirror is $15 with additional variable cost of manufacturing at $17 per unit. The fixed cost of manufacturing operations is $10 Million per year. FX maintains 1 month of raw materials and 1 month of WIP and finished goods combined to balance overall automotive demand. Assume that FX has a federal tax rate of 25% and a state tax rate of 5%. Also assume that FX uses a MARR of 15% for all economic analyses.
b) If the company could borrow $10 Million of the $27 Million needed at 10%, how would this change the NPV calculation?
c) If inflation is estimated at 2% and the pricing is locked for the six year period, how does your NPV change? Assume that the company borrowed $10 Million of the $27 Million needed at 10%.
In: Finance
how to debate this representation to protect the idea: I agree that emotional intelligence is reliable in predicting important behaviour and improving job performance.
"Now we as today's opposition strongly believe that emotional intelligence is not a reliable index. In today’s society, the working environment is becoming more complex based on business journals (2020) the author has classified factors affecting business environment into 3 main sections including macro-environment such as political factors, economy or technology, and external environment such as competitors, customers, suppliers and last but not least internal environment such as human resources, management, marketing, and so on are all factors that influence the employee's working attitude and emotions. Therefore, we can conclude that in order to adapt to a complex and volatile environment, employees must change their work attitudes every second. After that, the knowledge about EQ has to be clarified evidently which is an indicator that indicates the ability to understand and manage emotions of yourself and others. Moreover, among the factors contributing to the formation of emotional intelligence, self-management is one of those five dimensions which is the ability to manage one’s own emotions and impulses(Robbins, 2019) which is also impossible in situations that the HRM department uses emotional intelligence (EQ) to evaluate an employee's job performance. Obviously, HRM's main purpose is to build the professional working style and positive attitude of each employee leading to the company can achieve its goals most effectively and efficiently.With the two main arguments being human behavior that is adaptable and difficulty in controlling emotions, additionally with the main purpose of the HRM department, thus we can deduce that the HRM department using the EQ index to predict behavior and improve job performance of each employee will not produce an accurate outcome "
In: Operations Management
Comparative financial statements for Wildhorse and Novak Ltd. are shown below.
| WILDHORSE AND NOVAK LTD. Income Statement Year Ended December 31 |
||||||
| 2021 | 2020 | |||||
| Net sales | $900,000 | $840,000 | ||||
| Cost of goods sold | 625,000 | 575,000 | ||||
| Gross profit | 275,000 | 265,000 | ||||
| Operating expenses | 154,000 | 150,000 | ||||
| Profit from operations | 121,000 | 115,000 | ||||
| Other revenues and expenses | ||||||
| Interest expense | 30,000 | 20,000 | ||||
| Profit before income tax | 91,000 | 95,000 | ||||
| Income tax expense | 27,000 | 20,000 | ||||
| Profit | $64,000 | $75,000 | ||||
| WILDHORSE AND NOVAK LTD. Balance Sheet December 31 |
||||||
| Assets | 2021 | 2020 | 2019 | |||
| Cash | $94,000 | $84,000 | $10,000 | |||
| Accounts receivable | 112,000 | 112,000 | 110,000 | |||
| Inventories | 140,000 | 135,000 | 96,000 | |||
| Prepaid expenses | 25,000 | 23,000 | 114,000 | |||
| Land, buildings, and equipment | 390,000 | 305,000 | 300,000 | |||
| Total assets | $761,000 | $659,000 | $630,000 | |||
| Liabilities and Shareholders’ Equity | ||||||
| Liabilities | ||||||
| Notes payable | $110,000 | $100,000 | $100,000 | |||
| Accounts payable | 43,000 | 40,000 | 50,000 | |||
| Accrued liabilities | 32,000 | 40,000 | 30,000 | |||
| Bonds payable, due 2024 | 190,000 | 150,000 | 181,000 | |||
| Total liabilities | 375,000 | 330,000 | 361,000 | |||
| Shareholders’ equity | ||||||
| Common shares (20,000 issued) | 200,000 | 200,000 | 200,000 | |||
| Retained earnings | 186,000 | 129,000 | 69,000 | |||
| Total shareholders’ equity | 386,000 | 329,000 | 269,000 | |||
| Total liabilities and shareholders’ equity | $761,000 | $659,000 | $630,000 | |||
Additional information:
| 1. | Seventy-five percent of the sales were on account. | |
| 2. | The allowance for doubtful accounts was $3,000 in 2021, $5,000 in 2020, and $2,500 in 2019. | |
| 3. | In 2021 and 2020, dividends of $3,000 and $9,000, respectively, were paid to the common shareholders. | |
| 4. | Cash provided by operating activities was $103,500 in 2021 and $129,000 in 2020. | |
| 5. | Cash used by investing activities was $115,500 in 2021 and $32,000 in 2020. |
(a)
Calculate all possible liquidity, solvency, and profitability
ratios for 2021 and 2020. (Round answers for Collection
period, Days sales in inventory, Operating cycle and Free cash flow
to 0 decimal places, e.g. 125. Round answer for Earnings per share
to 2 decimal places, e.g. 12.50. Round all other answers to 1
decimal place, e.g. 12.5 or 12.5%. Enter negative amount using
either a negative sign preceding the number e.g. -45 or parentheses
e.g. (45).)
| 2021 | 2020 | ||||||||
| Liquidity Ratios | |||||||||
| 1. | Current ratio | : 1 | : 1 | ||||||
| 2. | Acid-test ratio | : 1 | : 1 | ||||||
| 3. | Receivables turnover | times | times | ||||||
| 4. | Collection period | days | days | ||||||
| 5. | Inventory turnover | times | times | ||||||
| 6. | Days sales in inventory | days | days | ||||||
| 7. | Operating cycle | days | days | ||||||
| Solvency Ratios | |||||||||
| 8. | Debt to total assets | % | % | ||||||
| 9. | Interest coverage | times | times | ||||||
| 10. | Free cash flow | $ | $ | ||||||
| Profitability Ratios | |||||||||
| 11. | Gross profit margin | % | % | ||||||
| 12. | Profit margin | % | % | ||||||
| 13. | Asset turnover | times | times | ||||||
| 14. | Return on assets | % | % | ||||||
| 15. | Return on equity | % | % | ||||||
| 16. | Earnings per share | $ | $ | ||||||
| 17. | Payout ratio | % | % | ||||||
In: Accounting
Pro forma income statement. The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.64 million. Interest expense is expected to remain unchanged at $37,000, and the firm plans to pay $69,000 in cash dividends during 2020. Metroline Manufacturing's income statement for the year ended December 31, 2019, is given below, along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components.
Income Statement
Sales Revenue 1,405,000
Less: Cost of goods sold 914,000
Gross profits 491,000
Less: Operating expenses 110,000
Operating Profits 381,000
Less: Interest Expense 37,000
Net profits before taxes 344,000
Less: Taxes (rate= 40%) 137,600
Net profits after taxes 206,400
Less: cash dividends 68,000
To retained earnings 138,400
Breakdown of Cost and Expenses
Cost of goods sold
Fixed Cost 212,000
Variable Cost 702,000
Total Cost 914,000
Operating Expenses
Fixed expenses 37,000
variable expenses 73,000
Total expenses 110,000
A. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31, 2020. Complete the pro forma income statement for the year ended December 31, 2020 below: (Round the percentage of sales to four decimal places and the pro forma income statement amounts to the nearest dollar.)
|
Pro Forma Income Statement Metroline Manufacturing, Inc. for the Year Ended December 31, 2020 (percent-of-sales method) |
||
|
Sales |
$ |
|
|
Less: Cost of goods sold |
$ |
% |
|
Gross profits |
$ |
|
|
Less: Operating expenses |
$ |
% |
|
Operating profits |
$ |
|
|
Less: Interest expense |
$ |
|
|
Net profits before taxes |
$ |
|
|
Less: Taxes |
$ |
|
|
Net profits after taxes |
$ |
|
|
Less: Cash dividends |
$ |
|
|
To retained earnings |
$ |
|
B. Use fixed and variable cost data to develop a pro forma income statement for the year ended December 31, 2020. Complete the pro forma income statement for the year ended December 31, 2020 below: (Round the percentage of sales to four decimal places and the pro forma income statement amounts to the nearest dollar.)
|
Pro Forma Income Statement Metroline Manufacturing, Inc. for the Year Ended December 31, 2020 (based on fixed and variable cost data) |
||
|
Sales |
$ |
|
|
Less: Cost of goods sold |
|
|
|
Fixed cost |
$ |
|
|
Variable cost |
$ |
% |
|
Gross profits |
$ |
|
|
Less: Operating expenses |
||
|
Fixed expense |
$ |
|
|
Variable expense |
$ |
% |
|
Operating profits |
$ |
|
|
Less: Interest expense |
$ |
|
|
Net profits before taxes |
$ |
|
|
Less: Taxes |
$ |
|
|
Net profits after taxes |
$ |
|
|
Less: Cash dividends |
$ |
|
|
To retained earnings |
$ |
|
C. Complete the following statements:
The pro forma income statement developed using the fixed and variable cost data projects a (enter either 'higher' or 'lower') net profit after taxes due to (enter either 'higher' or 'lower') cost of goods sold and operating expenses. Although the percent-of-sales method projects a more (enter either 'conservative' or 'aggressive') estimate of net profit after taxes, the pro forma income statement that classifies fixed and variable cost is (enter either 'less' or 'more') accurate.
In: Finance