Save the Turtles is a non-for-profit organization that was incorporated in 20X0 and has a December 31 year end. Save the Turtles had the following transactions during 20X0.

1. Volunteers donated $20,000 in time to help with answering the phones, mailing materials, and other clerical activities.
2. A business donated rent-free office space to the organization that would normally rent for $35,000 per year.
3. Office furniture worth $10,600 and with an estimated 10-year life was donated to the organization.
4. A fund drive raised $215,000 in cash and $100,000 in pledges that will be paid within one year. A state government grant of $50,000 was received for program operating costs.
5. Save the Turtles paid salaries and fringe benefits of $208,560 during the year and had $22,400 of accrued salaries and benefits at the end of the year.
6. Utilities expense for the year totaled $8,300 and other expenses for the year included $5,600 for telephone, $4,300 for supplies, and $14,200 for printing. There were no supplies remaining at the end of the year and accounts payable totaled $4,400.
7. Office equipment with a useful life of 5 years was purchased for $12,000.
8. The organization claims a full year of depreciation on fixed assets.
9. Ninety percent of pledges for 20X1 are estimated to be collectible.
10. Expenses were allocated to program services and support services in the following percentages: Public education—45%, Veterinary services—20%, Management and general—20%, Fundraising—15%.

Required.

• Prepare a schedule of expenses by nature and function for the year ended December 31, 20X0.

Sony International has an investment opportunity to produce a new stereo HDTV. The required investment on January 1 of this year is $155 million. The firm will depreciate the investment to zero using the straight-line method over four years. The investment has no resale value after completion of the project. The firm is in the 34 percent tax bracket. The price of the product will be $515 per unit, in real terms, and will not change over the life of the project. Labor costs for Year 1 will be $15.65 per hour, in real terms, and will increase at 2 percent per year in real terms. Energy costs for Year 1 will be $3.80 per physical unit, in real terms, and will increase at 3 percent per year in real terms. The inflation rate is 4 percent per year. Revenues are received and costs are paid at year-end. Refer to the following table for the production schedule:

The real discount rate for the company is 3 percent.

Calculate the NPV of this project. (Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 1,234,567.89.)

NPV           $

2 MULTIPLE CHOICE. PLEASE ANSWER ASAP. THANK YOU!

28. Based on the following data for the current year, what is the inventory turnover (rounded to one decimal place)?

a.4.2

b.13

c.18.1

d.5.2

29. Use this information for Kellman Company to answer the question that follow.

The balance sheets at the end of each of the first two years of operations indicate the following:

Using the balance sheets for Kellman Company, if net income is $104,500 and interest expense is $36,100 for Year 2, what is the return on total assets for the year (rounded to two decimal places)?

a.6.56%

b.4.60%

c.7.58%

d.9.46%

1. O'Brien Ltd.'s outstanding bonds have a $1,000 par value, and they mature in 25 years. Their yield to maturity is 9.25%, they pay interest semiannually, and they sell at a price of $875. What is the bond's coupon interest rate?

2. Stocks X just paid a dividend of $1 and a has a dividend growth rate of 10 percent. If the required rate of return is 20 percent, what is the value of the stock in one year?

3. The price of Natter Corporation’s stock is $50. The stock’s dividend is expected to grow at a constant rate of 8 percent, and it just paid a dividend of $2. What is the stock's expected rate of return?

4. Assume you think the expected rate of return is too low. What should you do?

Group of answer choices

Sell the stock if you own it.

Not enough information to say.

Do nothing

Buy the stock.

5. Assume a firm's WACC is 10 percent. Calculate the NPV for the following project if its cost was $8,000 and the annual expenditures and costs were:

6. Calculate the IRR for the following project if its cost was $8,000 and the annual expenditures and costs were:

Sony International has an investment opportunity to produce a new stereo HDTV. The required investment on January 1 of this year is $200 million. The firm will depreciate the investment to zero using the straight-line method over four years. The investment has no resale value after completion of the project. The firm is in the 34 percent tax bracket. The price of the product will be $485 per unit, in real terms, and will not change over the life of the project. Labor costs for Year 1 will be $16.20 per hour, in real terms, and will increase at 3 percent per year in real terms. Energy costs for Year 1 will be $3.80 per physical unit, in real terms, and will increase at 2 percent per year in real terms. The inflation rate is 6 percent per year. Revenues are received and costs are paid at year-end. Refer to the following table for the production schedule: Year 1 Year 2 Year 3 Year 4 Physical production, in units 190,000 200,000 220,000 210,000 Labor input, in hours 1,195,000 1,275,000 1,435,000 1,355,000 Energy input, in physical units 285,000 305,000 325,000 310,000 The real discount rate for the company is 5 percent. Calculate the NPV of this project. (Enter your answer in dollars, not millions of dollars. Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 1,234,567.89.) NPV $

Rosie Dry Cleaning was started on January 1, Year 1. It experienced the following events during its first two years of operation:

Events Affecting Year 1

1. Provided $26,830 of cleaning services on account.
2. Collected $21,464 cash from accounts receivable.
3. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.

Events Affecting Year 2

1. Wrote off a $201 account receivable that was determined to be uncollectible.
2. Provided $31,311 of cleaning services on account.
3. Collected $27,710 cash from accounts receivable.
4. Adjusted the accounting records to reflect the estimate that uncollectible accounts expense would be 1 percent of the cleaning revenue on account.

Required
a. Organize the transaction data in accounts under an accounting equation.
b. Determine the following amounts:

1. (1) Net income for Year 1.
2. (2) Net cash flow from operating activities for Year 1.
3. (3) Balance of accounts receivable at the end of Year 1.
4. (4) Net realizable value of accounts receivable at the end of Year 1.

c. Determine the following amounts:

1. (1) Net income for Year 2.
2. (2) Net cash flow from operating activities for Year 2.
3. (3) Balance of accounts receivable at the end of Year 2.
4. (4) Net realizable value of accounts receivable at the end of Year 2.

The Alpha Company, located in numerous locations, is a wholesale distributor of computer equipment. The information shown below was taken from the company’s annual reports for the last three years.

Balance Sheet

                                                          year 2              year 1              year 0

Total Assets                                      $270,000                $155,000               $90,000

Accounts Payable                               $23,500                        $19,500                   $17,000

Loans Payable                                     $28,000                       $22,500               $20,000

Long-Term Debt                                $35,000                        $25,000                     $20,000

Preferred Stock                                  $5,000                          $5,000                      $5,000

Common Stock                                   $90,000                       $50,000                      $20,000

Retained Earnings                              $88,500                    $33,000                        $8,000

Total Liabilities &

Stockholders’ Equity                          $270,000                  $155,000                  $90,000

Income Statement

                                                                           year 2                  year 1

Sales                                                                $160,000                       $100,000

Cost of Goods Sold                                        ($120,000)                    ($700,000)

Selling & Administrative Expenses              ($230,000)                   ($200,000)

Interest Expense                                             ($30,000)                      ($20,000)

Income Tax Expense*                                       ($72,900)                   ($47,000)

Net Income                                                        $67,100                     $33,000

*The tax rate for 2018 was 52%.

*The tax rate for 2017 was 58.75%.

                                                                        year 2                 year 1

Preferred Stock Dividends                             $2,000                        $2,000

Common Stock Dividends                                $9,600                        $6,000

a) Calculate Return on Common Shareholder's Equity for year 2

b) Calculate Common Earnings Leverage for year 2

c) Calculate Return on Assets for year 2

d) Calculate Capital Structure Leverage for year 2

4. TTT Corp is evaluating the acquisition of KT Company.  TTT analyst projects the following post merger cash flows for KT Company if purchased by TTT Corp.

Net Sales

Year 1 $600 Year 2 $700      

Oper Expenses       

Year 1 $350 Year 2 $400        

Interest

Year 1 20 Year 2 25        

Depreciation

Year 1 10 Year 2   10         

Net Investment

Year 1 10 Year 2  10         

In Operating Capital

The current market beta for KT Company is 1.4 and its tax rate is 25% and debt ratio of 40%. TTT Corp has a tax rate of 25%.  Assume a market return of 10% and a risk free rate of 4%.

a. What is the appropriate discount rate to use in calculating the value of the acquisition? (Use the Adjusted Present Value Approach).

b. What are the free cash flows for the two years and tax shield for two years?

c. If we assume constant growth of 5% from beyond Year 2, calculate the horizon value of free cash flows and the horizon value of tax shield flows.

d. Find the value of the operations of the target.  Assume no non-operating assets.

e. If the market value of debt is $300 and there is no preferred stock, find the maximum price per share that should be offered for the target.  Assume there 100 shares of stock.

Mathews Mining Company is looking at a project that has the following forecasted​ sales: ​ first-year sales are 6,800 ​units, and sales will grow at 15​%

over the next four years​ (a five-year​ project). The price of the product will start at $124.00 per unit and will increase each year at 5​%.

The production costs are expected to be 62​% of the current​ year's sales price. The manufacturing equipment to aid this project will have a total cost​ (including installation) of

​$1,400,000. It will be depreciated using​ MACRS

Year   3-Year   5-Year   7-Year   10-Year
1   33.33%   20.00%   14.29%   10.00%
2   44.45%   32.00%   24.49%   18.00%
3   14.81%   19.20%   17.49%   14.40%
4   7.41%   11.52%   12.49%   11.52%
5       11.52%   8.93%   9.22%
6       5.76%   8.93%   7.37%
7           8.93%   6.55%
8           4.45%   6.55%
9               6.55%
10               6.55%
11               3.28%

and has a​ seven-year MACRS life classification. Fixed costs will be ​$50,000 per year. Mathews Mining has a tax rate of

30%

What is the operating cash flow for this project over these five​ years? Find the NPV of the project for Mathews Mining if the manufacturing equipment can be sold for

​$80, 000 at the end of the​ five-year project and the cost of capital for this project is 12​%.

What are the operating cash flows for the project in years 1 through 5?

What is the​ after-tax cash flow of the project at​ disposal?

What is the NPV of the​ project?

Required information

Skip to question

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

Leach Inc. experienced the following events for the first two years of its operations:

Year 1:

1. Issued $10,000 of common stock for cash.
2. Provided $110,000 of services on account.
3. Provided $33,000 of services and received cash.
4. Collected $77,000 cash from accounts receivable.
5. Paid $14,000 of salaries expense for the year.
6. Adjusted the accounting records to reflect uncollectible accounts expense for the year. Leach estimates that 7 percent of the ending accounts receivable balance will be uncollectible.

Year 2:

1. Wrote off an uncollectible account for $690.
2. Provided $130,000 of services on account.
3. Provided $15,000 of services and collected cash.
4. Collected $112,000 cash from accounts receivable.
5. Paid $26,000 of salaries expense for the year.
6. Adjusted the accounts to reflect uncollectible accounts expense for the year. Leach estimates that 7 percent of the ending accounts receivable balance will be uncollectible.

1. d-1. Organize the transaction data in accounts under an accounting equation.
2. d-2. Prepare an income statement for Year 2.
3. d-3. Prepare the statement of changes in stockholders' equity for Year 2.
4. d-4. Prepare the balance sheet for Year 2.
5. d-5. Prepare the statement of cash flows for Year 2.
6. d-6. What is the net realizable value of the accounts receivable at December 31, Year 2?