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:

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%.

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 "

Comparative financial statements for Wildhorse and Novak Ltd. are shown below.

Additional information:

(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).)

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.)

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.)

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.

Comparative financial statements for Oriole and Cheyenne Ltd. are shown below.

Additional information:

(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).)

Exercise 3-9 (Algo) Balance sheet preparation [LO3-2, 3-3]

The following is the balance sheet of Korver Supply Company at December 31, 2020 (prior year).

Transactions during 2021 (current year) were as follows:

Additional Information:

The notes payable are dated June 30, 2020, and are due on June 30, 2022. Interest at 10% is payable annually on June 30. Depreciation on the furniture and fixtures for 2021 is $27,000. The furniture and fixtures originally cost $370,000.

Required:
Prepare a classified balance sheet at December 31, 2021, by updating ending balances from 2020 for transactions during 2021 and the additional information. The cost of furniture and fixtures and their accumulated depreciation are shown separately. (Amounts to be deducted should be indicated by a minus sign.)

Exercise 3-9 (Algo) Balance sheet preparation [LO3-2, 3-3]

The following is the balance sheet of Korver Supply Company at December 31, 2020 (prior year).

Transactions during 2021 (current year) were as follows:

Additional Information:

The notes payable are dated June 30, 2020, and are due on June 30, 2022. Interest at 10% is payable annually on June 30. Depreciation on the furniture and fixtures for 2021 is $27,000. The furniture and fixtures originally cost $370,000.

Required:
Prepare a classified balance sheet at December 31, 2021, by updating ending balances from 2020 for transactions during 2021 and the additional information. The cost of furniture and fixtures and their accumulated depreciation are shown separately. (Amounts to be deducted should be indicated by a minus sign.)

Problem Solving: Please answer the following problems showing your solutions, Double Rule and Encircle Final Answers. This must be done thru your handwriting placed in a Bond Paper. THANKYOU!!!

1. On July 1, 2019 J Corp acquired a machinery worth Php 2,500,000 from D Co. Term of the contract calls for a downpayment of Php 500,000 and signing a 2 year 10% note payable for the balance. Interest is payable quarterly. The existing loan agreement does not carry a provision to refinance. During September, J Corp was experiencing financial difficulty due to COVID-19 and was unable to pay the periodic interest. a. What amount of current liability should J Corp report in its December 31, 2019 balance sheet assuming D Co. agreed at balance sheet date not to demand payment as a consequence of the breach? b. What amount of current liability should J Corp report in its December 31, 2019 balance sheet assuming D Co. agreed to provide a grace period ending at least twelve months to rectify the breach?

2. A truck owned and operated by B Company was involved in an accident with an auto driven by Julia on January 12, 2019. B Company received notice on April 24, 2019 of a lawsuit for Php 800,000 damages for a personal injury suffered by Julia. B Company counsel believes it is reasonably possible that Julia will be successful against the company for an estimated amount in the range between Php 100,000 and Php 400,000. No amount within this range is a better estimate of potential damages than any other amount. It is expected that the lawsuit will be adjudicated in the latter part of 2020. What amount of loss should B Company accrue at December 31, 2019?

3. In November and December of 2020, adventure Company received Php 792,000 for 1,000, 3 year subscriptions at Php 264 per issue per year, starting with the January 2006 issue. adventure elected to include the Php 792,000 in its 2020 income statement for tax purposes. What amount should advneture report in its 2020 balance sheet as unearned subscription revenue?

4. In November and December 2020, Sweet Company, a newly organized magazine publisher, received Php 72,000 for 1,000 three year subscriptions at Php 24,000 per year, starting with the November 2020 issue of the magazine. Sweet elected to include the entire Php 72,000 in its 2020 income tax return. How much should Sweet report in its 2020 balance sheet as unearned subscriptions?

5. During 2019, S Company sold 500,000 boxes of hotcakes under a new sales promotional program. Each box contains one coupon, which when submitted with Php 16, entitles the customer to a baking pan. S Company pays Php 20 per pan and Php 2 handling and shipping. S Company estimates that 80% of the coupons will be redeemed, even though only 300,000 coupons had been processed during 2019. What amount should S Company report as liability for unredeemed coupons at December 31, 2019?

Suppose the demand curve for a product is vertical and the supply curve is upward sloping. If a unit tax is imposed in the market for this​ product, A. buyers bear the entire burden of the tax. B. buyers share the burden of the tax with government. C. the tax burden will be shared equally between buyers and sellers. D. sellers bear the entire burden of the tax.

Explain how a​ downward-sloping demand curve results from consumers adjusting their consumption choices to changes in price. A. When the price of a good rises​, the budget constraint shifts​ outward, leading consumers to buy less of that good. B. When the price of a good rises​, the marginal rate of substitution​ changes, leading consumers to buy less of that good. C. When the price of a good​ rises, this causes a negative income effect that is larger in absolute value than a corresponding positive substitution​ effect, leading consumers to buy less of that good. D. When the price of a good declines​, the ratio of the marginal utility to price rises​, leading consumers to buy more of that good. E.

When the price of a good​ declines, this causes positive substitution and income​ effects, leading consumers to buy more of that good. What is the difference between technology and technological​ change? A. Technology is when a firm is able to produce the same output using fewer ​inputs, while technological change is the process of using inputs to make output. B. Technology is the development of new​ products, while technological change is when a firm is able to produce the same output with fewer inputs. C. Technology is the process of using inputs to make​ output, while technological change is when a firm is able to produce more output using more inputs. D. Technology is the process of using inputs to make​ output, while technological change is when a firm is able to produce the same output using fewer inputs. E. Technology is the development of new​ products, while technological change is when a firm is able to produce more output with the same inputs.

A country that imports a substantial amount of gasoline every year imposed a​ $1.2 per gallon excise tax on​ gasoline, to be paid by sellers. The equilibrium price of gasoline prior to the tax was​ $4 per gallon. Gasoline being a necessary​ good, its demand curve is steep and the consumers had to bear the bulk of the tax burden. The​ post-tax price of gasoline went up to​ $5 per​ gallon, causing the​ country's media to claim that it was unfair that people should have to pay so high a price for such an important consumption item. They further believed that such a high tax was inefficient and could not be justified. Which of the following inferences can be drawn from this​ information? A. The sellers bear 1.2 percent of the entire tax burden. B. The consumers are bearing the entire burden of the tax. C. The burden on consumers would reduce if the tax was imposed on​ them, rather than the sellers. D. The sellers of gasoline now receive 20 cents less than the​ pre-tax price. E.

The deadweight loss of the tax is very high. If total utility increases at a decreasing rate as a consumer consumes more​ coffee, then marginal utility must A. remains constant. B. be negative. C. increase also. D. decrease.

Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below:

The North Store has consistently shown losses over the past two years. For this reason, management is giving consideration to closing the store. The company has asked you to make a recommendation as to whether the store should be closed or kept open. The following additional information is available for your use:

The breakdown of the selling and administrative expenses that are shown above is as follows:

*Allocated on the basis of sales dollars.

*Allocated on the basis of sales dollars.

The lease on the building housing the North Store can be broken with no penalty.

The fixtures being used in the North Store would be transferred to the other two stores if the North Store were closed.

The general manager of the North Store would be retained and transferred to another position in the company if the North Store were closed. She would be filling a position that would otherwise be filled by hiring a new employee at a salary of $10,800 per quarter. The general manager of the North Store would continue to earn her normal salary of $11,800 per quarter. All other managers and employees in the North store would be discharged.

The company has one delivery crew that serves all three stores. One delivery person could be discharged if the North Store were closed. This person’s salary is $4,500 per quarter. The delivery equipment would be distributed to the other stores. The equipment does not wear out through use, but does eventually become obsolete.

The company pays employment taxes equal to 15% of their employees' salaries.

One-third of the insurance in the North Store is on the store’s fixtures.

The “General office salaries” and “General office—other” relate to the overall management of Superior Markets, Inc. If the North Store were closed, one person in the general office could be discharged because of the decrease in overall workload. This person’s compensation is $5,900 per quarter.

Required:

1. How much employee salaries will the company avoid if it closes the North Store?

2. How much employment taxes will the company avoid if it closes the North Store?

3. What is the financial advantage (disadvantage) of closing the North Store?

4. Assuming that the North Store's floor space can’t be subleased, would you recommend closing the North Store?

5. Assume that the North Store's floor space can’t be subleased. However, let's introduce three more assumptions. First, assume that if the North Store were closed, one-fourth of its sales would transfer to the East Store, due to strong customer loyalty to Superior Markets. Second, assume that the East Store has enough capacity to handle the increased sales that would arise from closing the North Store. Third, assume that the increased sales in the East Store would yield the same gross margin as a percentage of sales as present sales in the East store. Given these new assumptions, what is the financial advantage (disadvantage) of closing the North Store?

Superior Markets, Inc., operates three stores in a large metropolitan area. A segmented absorption costing income statement for the company for the last quarter is given below:

The North Store has consistently shown losses over the past two years. For this reason, management is giving consideration to closing the store. The company has asked you to make a recommendation as to whether the store should be closed or kept open. The following additional information is available for your use:

1. The breakdown of the selling and administrative expenses that are shown above is as follows:

*Allocated on the basis of sales dollars.

*Allocated on the basis of sales dollars.

1. The lease on the building housing the North Store can be broken with no penalty.

2. The fixtures being used in the North Store would be transferred to the other two stores if the North Store were closed.

3. The general manager of the North Store would be retained and transferred to another position in the company if the North Store were closed. She would be filling a position that would otherwise be filled by hiring a new employee at a salary of $13,400 per quarter. The general manager of the North Store would continue to earn her normal salary of $14,400 per quarter. All other managers and employees in the North store would be discharged.

4. The company has one delivery crew that serves all three stores. One delivery person could be discharged if the North Store were closed. This person’s salary is $5,800 per quarter. The delivery equipment would be distributed to the other stores. The equipment does not wear out through use, but does eventually become obsolete.

5. The company pays employment taxes equal to 15% of their employees' salaries.

6. One-third of the insurance in the North Store is on the store’s fixtures.

7. The “General office salaries” and “General office—other” relate to the overall management of Superior Markets, Inc. If the North Store were closed, one person in the general office could be discharged because of the decrease in overall workload. This person’s compensation is $7,200 per quarter.

Required:

1. How much employee salaries will the company avoid if it closes the North Store?

2. How much employment taxes will the company avoid if it closes the North Store?

3. What is the financial advantage (disadvantage) of closing the North Store?

4. Assuming that the North Store's floor space can’t be subleased, would you recommend closing the North Store?

5. Assume that the North Store's floor space can’t be subleased. However, let's introduce three more assumptions. First, assume that if the North Store were closed, one-fourth of its sales would transfer to the East Store, due to strong customer loyalty to Superior Markets. Second, assume that the East Store has enough capacity to handle the increased sales that would arise from closing the North Store. Third, assume that the increased sales in the East Store would yield the same gross margin as a percentage of sales as present sales in the East store. Given these new assumptions, what is the financial advantage (disadvantage) of closing the North Store?