American Food Services, Inc., leased a packaging machine from Barton and Barton Corporation. Barton and Barton completed construction of the machine on January 1, 2018. The lease agreement for the $4.8 million (fair value and present value of the lease payments) machine specified four equal payments at the end of each year. The useful life of the machine was expected to be six years with no residual value. Barton and Barton’s implicit interest rate was 9%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
1. Prepare the journal entry for American Food Services at the beginning of the lease on January 1, 2018.
2. Prepare an amortization schedule for the four-year term of the lease.
3. & 4. Prepare the appropriate entries related to the lease on December 31, 2018 and 2020.

Engineers at the American Lighting Company recently developed a new three-way light bulb that they say is more energy efficient than the company’s existing three-way light bulb. The also claim that the bulb will outlast the current bulb, which has an average lifetime of 700 hours. The standard deviation (σ) for the lifetime of bulbs is 75 hours. The American Lighting Company has decided that before it begins full scale production on the new light bulbs it should take a sample of 225 bulbs and determine whether the mean life of the new bulb exceeds the old bulb’s 700 hours. The sample of 225 bulbs gave a sample mean of 704 hours. Assuming a significance level of .05 perform all hypothesis testing steps. Does the sample support the claim that the average lifetime of the new bulb is longer?

Calculate WACC given the following information (BT means before tax).

none of the answers is correct

19.95%

9.04%

13.56%

12.06%

American Electric Power is planning to purchase mac or pc computers for its business operations from Sweden. The cost of mac or pc computers is 10,000 Swedish kronas. How much in U.S. dollars will American Electric Power pay if $1 is equal to 6.7797 Swedish kronas (Swedish krona/$)?

$2,644

none of the answers is correct

$1,475

$1,686

$1,180

Managing compensation costs, headcount, and participation/communication issues

Cisco systems, Hewlett-Packard, American Airlines, and General Motors are examples of companies that have cut employment or cut wages and/or benefits to reduce labor costs in hope of becoming more competitive and more profitable. Indeed, American and GM went through bankruptcy in part to gain control over labor costs. In contrast, some companies- Southwest Airlines, Nucor, and Lincoln Electric- have a no-layoff practice and do not appear to have cut wages or benefits even in years when sales have declined significantly (They have also not gone through bankruptcy).

To what degree would you have others at the company participate in the design of the new compensation system? Who would participate? Would you follow a policy of pay openness in communicating your compensation system? Provide a rationale for your decision.

Out of 20 unhealthiest countries in the world in 2019, the Indigo Wellbeing Index (IWI) has identified St. Lucia as the second unhealthiest country, Barbados as the fifth unhealthiest country, Haiti as the ninth unhealthiest country, Trinidad and Tobago as the fourteenth unhealthiest country, Jamaica as the sixteenth unhealthiest country, and Dominican Republic as the nineteenth unhealthiest country. There are only three African countries in the cohort: South Africa as the first unhealthiest country, Central African Republic as the eighth unhealthiest country and Egypt as the eighteenth unhealthiest country.

(a) Discuss in the context of this sample that wealthy country is not necessarily healthy country.                                                         

(b)   Suppose that you are an advisor to Barbados Ministry of Health and Wellness and that your task is to mount and defend policies to improve Barbados’s IWI ranking, for example, from 0.34 to 0.60 in the long run. Present and discuss the policies of interest.

Notes: (i) IWI goes from 0 (unhealthiest) to 1( healthiest). It is based on 10 items: blood pressure, blood glucose, obesity, depression, happiness, alcohol use, tobacco use, exercise, healthy life expectancy, and government spending on health care.

(ii) The sizes of 2019 GDP per capita (using purchasing power parity, PPP) in international $, are the following: Central African Republic 681 (2017); Haiti 1,940; Jamaica 9,726; South Africa 13,498 (2017); St. Lucia 15,225; Egypt 16,953 (2017); Barbados 18,886; Dominican Republic 19,452; and Trinidad and Tobago 33,026.

The market for fertilizer is perfectly competitive. Firms in the market are producing output, but are currently making economic losses.

4 ) Fill in the following blanks with U = go up, S = stay the same, D = go down.

In the long run, the price of fertilizer will ......... and the total quantity produced will.......... . In addition, the amount of fertilizer produced by the average firm in the market will ............

5 )

A large share of the world supply of diamonds comes from Russia and South Africa. Suppose that the marginal cost of mining diamonds is constant at $1000 per diamond, and the worldwide demand for diamonds is described by the following schedule:

If there were many, many firms operating in the market, the total output of diamonds would be ............ 000 diamonds. If there were one, profit-maximizing monopoly firm, the total output of diamonds would be .................... 000 diamonds.

Suppose Russia and South Africa (as nations) are a duopoly in the diamond market. If they were to form a cartel, where they split output of diamonds equally, each would earn ...................... $000000 in profit. If, however, Russia were to "cheat" and produce 1000 more diamonds than the cartel agreement, Russia's total profit would then be ...................... $000000.

**Note that I have given you the zeroes in each answer to help avoid typos.**

South Sea Baubles has the following (incomplete) balance sheet and income statement.

a&b. What is shareholders’ equity in 2015 and 2016? (Enter your answers in millions.)

a. 2015?

b. 2016?

c&d. What is net working capital in 2015 and 2016? (Enter your answers in millions.)

C. 2015?

d. 2016?

e. What are taxes paid in 2016? Assume the firm pays taxes equal to 35% of taxable income. (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

f. What is cash provided by operations during 2016? (Do not round intermediate calculations. Enter your answer in millions rounded to 2 decimal places.)

g. Net fixed assets increased from $860 million to $960 million during 2016. What must have been South Sea’s gross investment in fixed assets during 2016? (Enter your answer in millions.)

1. (15 pts) The following data show the percentage change in population for the 50 states and the District of Columbia from 2000 to 2009.

a. Construct a relative frequency distribution (5 pts) and draw a histogram of the data. (4 pts)

b.  Round the data to integers in percentage and then create a stem-and-leaf display of these data. (4 pts)

c.  Describe the shape of the distribution. (2 pts)

Please answer the following question correctly :

3. Answer the following, assume we are looking down at the solenoid:
a. If the North Pole enters the solenoid first, the field lines point (.......) the
solenoid.
i. The solenoid will (Choose an item). the magnet and induce a field that points
(Choose an item). the solenoid.

b. If the South Pole enters the solenoid first, the field lines point (Choose an item). the
solenoid.
i. The solenoid will (Choose an item). the magnet and induce a field that points
(Choose an item). the solenoid.

c. If the North Pole leave the solenoid first, the field lines point (Choose an item). the
solenoid.
i. The solenoid will (Choose an item). the magnet and induce a field that points
Choose an item. the solenoid.
d. If the South Pole leaves the solenoid first, the field lines point (Choose an item). the
solenoid.
i. The solenoid will (Choose an item). the magnet and induce a field that points
(Choose an item). the solenoid.

e. The solenoid will always (Choose an item). the magnet at the top of the solenoid and
(Choose an item). the magnet after it has passed through.

4. Why is the graph not symmetric, i.e. why is the first peak wider and shorter than the
second? Look at the graph axes.
5. Why is there a section of the graph between the 2 peaks with no induced emf? What does
this physically correspond too?
6. Why are the graphs inverses of each other, that is to say, why does one graph start with
negative voltage while the other begins positive?

QUESTION 2 Marvel Industries is a South African based manufacturer of “Solasheet”, an award-winning skylight. The company is currently investigating two investment projects. The information is given below: Project Chuck Involves extending the company’s production facility at Westville, Kwa-Zulu Natal. The plant will cost R12 million and is expected to create an additional annual profit of R2.26 million for the 8 years life of the project. The following expenses were included in the annual profit:  Depreciation was calculated on the straight-line method, over the life of project.  Share of existing overheads, borne by head office amounting to R0,3 million p.a. DC 6 Project Larry Involves setting up an independent manufacturing facility in Taiwan. The cost of the facility would be an initial outlay 105.40 million Taiwan dollars. This would result in annual sales of 44.8 million Taiwan dollars, for the 8 years of the project. The annual fixed costs and variable costs are 4.3 million and 10.6 million Taiwan dollars respectively. Note:  Marvel Industries current cost of capital is 12%.  The Taiwanese inflation is expected to exceed the South African inflation by 2% p.a. throughout the life of the project.  The current spot rate exchange is 5 Taiwan dollars to the Rand. Required: Compute the necessary calculations and advise Marvel Industries if it is worth investing in neither, in one or both of these two opportunities..