fORD sells cars and have the following product lines – Sedans, Sports Utilities Vehicles (SUV) and Family Vans. For its January 2020 operations, the following were made available for management analysis.

Sedan SUVs Family Vans

Selling Price ¥1,000,000 ¥2,000,000 ¥2,200,000

Variable Manufacturing Costs per unit 400,000 900,000 1,100,000

Sales Volume (units) 150 200 50

Fixed manufacturing overhead costs total ¥275,000,000 and fixed administrative expenses total ¥25,000,000. FORD gives a 5% commission on sales (variable selling expense to its car sales people).

1. Compute the Weighted Contribution Margin per unit.

2. Compute the Weighted Contribution Margin ratio.

3. Break-even point in total units.

4. Break-even point in total sales (¥)

5. Net operating income (loss) under Variable Costing Method

6. Target sales in total ¥ to earn ¥100,000.

7. Following no.6 question above, how much should SUVs business segment contribute to sales? Problem 2

8. Cost Volume Profit Analysis. Assume that actual sales volume of FORD (Problem 1) for February 2020 were as follows: Sedan 200; SUVs 140, Family Van 50. Assuming there is no change in selling price and the cost structure (variable and fixed), compute the net operating income under variable costing method.

9. The marketing manager believes that financial performance for March 2020 could be improved with his proposal of 12% selling price increase with a corresponding 10% decrease in volume across all products lines. Compute the projected net operating income for March 2020 using figures from February 2020.

10. Following question number 9 , compute the break-even point in units under this scenario.

11. Thinking that customers are price sensitive, management is considering to decrease the selling price by 10% in the hope of a 10% increase in sales volume. Assume this scenario is independent of the marketing manager’s proposal and base your March 2020 computations on the February 2020 results (see no. 8).

12. Following question number 11, compute the break-even point in total sales (¥).

The following amortization and interest schedule is for the issuance of 10-year bonds by Marigold Corporation on January 1, 2020, and the subsequent interest payments and charges. The company’s year end is December 31 and it prepares its financial statements yearly.

Determine the stated interest rate and the effective interest rate. (Round answers to 0 decimal places, e.g. 15%.)

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Based on the schedule above, prepare the journal entry to record the issuance of the bonds on January 1, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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Based on the schedule above, prepare the journal entry to reflect the bond transactions and accruals for 2020. (Interest is paid January 1.) (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

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Based on the schedule above, prepare the journal entries to reflect the bond transactions and accruals for 2028. Marigold Corporation does not use reversing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Larkspur offers an MP3 download (seven-single medley) as a premium for every 6 candy bar wrappers presented by customers together with $2.65. The candy bars are sold by the company to distributors for 30 cents each. The purchase price of each download code to the company is $2.40. In addition, it costs 50 cents to distribute each code. The results of the premium plan for the years 2020 and 2021 are as follows. (All purchases and sales are for cash.)

Part 1

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Prepare the journal entries that should be made in 2020 and 2021 to record the transactions related to the premium plan of the Larkspur. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 1,525.)

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Indicate the amounts for each accounts, and classifications of the items related to the premium plan that would appear on the balance sheet and the income statement at the end of 2020 and 2021.

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Martin S. Albert (Social Security number 111-11-1111) is 39 years old and is married to Michele R. Albert (Social Security number 123-45-6789). The Alberts live at 512 Ferry Road, Newport News, VA 23601. They file a joint return and have two dependent children, Charlene, age 17, and Jordan, age 18. Charlene’s Social Security number is 123-45-6788, and Jordan’s Social Security number is 123-45-6787. In 2020, Martin and Michele had the following transactions:a.Martin received $120,000 in salary from Red Steel Corporation, where he is a construction engineer. Withholding for Federal income tax was $10,750. The amounts withheld for FICA taxes were as follows: 3$7,049($113,700 6.2%) for Social Security and 3$1,740($120,000 1.45%) for Medicare. Martin worked in Mexico from January 1, 2019, until February 15, 2020. His $120,000 salary for 2020 includes $18,000 he earned for January and one-half of February 2020 while working in Mexico.b.Martin and Michele received $400 interest on Montgomery County (Virginia) school bonds.c.Martin received $2,300 interest from a Bahamian bank account.d.Michele received 50 shares of Applegate Corporation common stock as a stock dividend. The shares had a fair market value of $2,500 at the time Michele received them, and she did not have the option of receiving cash.e.Martin and Michele received a $1,200 refund on their 2019 Virginia income taxes. Their itemized deductions in 2019 totaled $34,000 and included state taxes of $7,400.f.Martin paid $6,600 alimony to his former wife, Rose T. Morgan (Social Security number 123-45-6786). The divorce was finalized in 2016" "Martin S. Albert (Social Security number 111-11-1111) is 39 years old and is married to Michele R. Albert (Social Security number 123-45-6789). The Alberts live at 512 Ferry Road, Newport News, VA 23601. They file a joint return and have two dependent children, Charlene, age 17, and Jordan, age 18. Charlene’s Social Security number is 123-45-6788, and Jordan’s Social Security number is 123-45-6787. In 2020, Martin and Michele had the following transactions:a.Martin received $120,000 in salary from Red Steel Corporation, where he is a construction engineer. Withholding for Federal income tax was $10,750. The amounts withheld for FICA taxes were as follows: 3$7,049($113,700 6.2%) for Social Security and 3$1,740($120,000 1.45%) for Medicare. Martin worked in Mexico from January 1, 2019, until February 15, 2020. His $120,000 salary for 2020 includes $18,000 he earned for January and one-half of February 2020 while working in Mexico.b.Martin and Michele received $400 interest on Montgomery County (Virginia) school bonds.c.Martin received $2,300 interest from a Bahamian bank account.d.Michele received 50 shares of Applegate Corporation common stock as a stock dividend. The shares had a fair market value of $2,500 at the time Michele received them, and she did not have the option of receiving cash.e.Martin and Michele received a $1,200 refund on their 2019 Virginia income taxes. Their itemized deductions in 2019 totaled $34,000 and included state taxes of $7,400.f.Martin paid $6,600 alimony to his former wife, Rose T. Morgan (Social Security number 123-45-6786). The divorce was finalized in 2016"

1)What is the 2020 Adjusted Gross Income for Martin and Michele Albert?

2)What is the 2020 taxable income for Martin and Michele Albert?

3)What is the tax due (refund) for Martin and Michele Albert for 2020?

My physics teacher explained the difference between voltage and current using sandwiches. Each person gets a bag full of sandwiches when they pass through the battery. Current = the number of people passing through a particular point per unit time. Voltage = the (change in) number of sandwiches per person. In a parallel circuit the number of people (current) is divided between the two paths, but the number of sandwiches per person (voltage) remains the same. In a series circuit the number of people passing through a particular point remain the same, but they drop off a certain percentage of their sandwiches at every resistor. Therefore, there is a voltage drop that occurs between the points before and after every resistor.

This analogy naturally leads to the question: how do the electrons "know" that they are going to have to share their voltage between two resistors before they reach the second one? (In other words, not drop off all their sandwiches at the first resistor they find)

A firm is considering borrowing​ $1

million at an annual interest rate of​ 6%. Assume that before considering this capital restructuring​ , the firm has total debt of​ $4 million at an annual interest rate of​ 7% and annual depreciation expense of​ $400,000. Assuming EBIT of​ $600,000, what is this​ company's cash coverage ratio​ (a) before; and​ (b) after the proposed​ restructuring?   

A. ​3.57; 2.94

B. ​2.94; 3.57

C. ​7.28; 14.29

D. ​5.00; 14.29

A firm has been offered a loan of​ $5 million from two different lenders. Lender A would charge an annual rate of​ 6% whereas Lender B would charge a rate of​ 8%. Assuming annual EBIT of​ $600,000 and annual depreciation expense of​$400,000, what would be the​ firm's cash coverage ratio if it undertook the loan from​ (a)

A. ​2.00; 2.33

B. 3.33; 2.50

C.​ 2.50; 3.33

D. 2.33; 2.00

Lender​ A; and​ (b) Lender​ B?   

1. CMA Ltd currently has an enterprise value​ (that is, present value of future free cash flows) of $400 million and $100 million in excess cash. The firm has 10 million shares outstanding and no debt. Suppose CMA uses its excess cash to repurchase shares. In the near future there news is scheduled to come out that will change​ AMC's enterprise value to either $600 million or $200 million.

1. Suppose CMA management expects good news to come out. If management’s goal is to maximize price per share, what would be optimal for CMA to do – purchase shares before the news or after the news? Explain, provide necessary computations

2. Now answer question a) assuming that CMA management expects bad news to come out.

3. Suppose CMA announces stock repurchase program before the news release date. What would you expect the announcement to have on the stock price? Why?