Exercise 10-9 (Part Level Submission) On July 31, 2017, Amsterdam Company engaged Minsk Tooling Company to construct a special-purpose piece of factory machinery. Construction was begun immediately and was completed on November 1, 2017. To help finance construction, on July 31 Amsterdam issued a $300,000, 3-year, 12% note payable at Netherlands National Bank, on which interest is payable each July 31. $200,000 of the proceeds of the note was paid to Minsk on July 31. The remainder of the proceeds was temporarily invested in short-term marketable securities (trading securities) at 10% until November 1. On November 1, Amsterdam made a final $100,000 payment to Minsk. Other than the note to Netherlands, Amsterdam’s only outstanding liability at December 31, 2017, is a $30,000, 8%, 6-year note payable, dated January 1, 2014, on which interest is payable each December 31. Collapse question part (a) Partially correct answer. Your answer is partially correct. Try again. Calculate the interest revenue, weighted-average accumulated expenditures, avoidable interest, and total interest cost to be capitalized during 2017. Interest revenue $Entry field with correct answer 2500 Weighted-average accumulated expenditures $Entry field with correct answer 50000 Avoidable interest $Entry field with correct answer 6000 Interest capitalized $Entry field with incorrect answer 50000 SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT Attempts: 3 of 3 used Collapse question part (b) Prepare the journal entries needed on the books of Amsterdam Company at each of the following dates. (Credit account titles are automatically indented when 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.) (1) July 31, 2017. (2) November 1, 2017. (3) December 31, 2017. Date Account Titles and Explanation Debit Credit Cash 300000 Notes Payable 300000 (To record the note.) Machinery Notes Payable Cash (To record the payment to Minsk.) (To record the proceeds from the investment.) (To record the payment to Minsk.) 12/31

Question 1

You are performing the year-end audit of Halvorson Fine Foods Ltd for 31^st December 2012. The client has prepared the following schedule for fixed assets and related allowance for depreciation accounts.

You have compared the opening balances with your prior-year audit working papers. The following information is found during your audit:

1. All equipment is depreciated on a straight-line basis (no salvage value taken into consideration) based on the following estimated lives: buildings, 25 years; all other items,

10 years. The corporation’s policy is to take one-half year’s depreciation on all asset acquisitions and disposals occurring during the year.

2. The corporation completed the construction of a wing on the plant building on 30 June of this year. The useful life of the building was not extended by this addition. The lowest construction bid received was $17,500, the amount recorded in the buildings account. Company personnel were used to construct the addition as a cost of $16,000 (materials $7,500, labour $5,500 and overhead $3,000)

3. On 18^th August, Halvorson paid $5,000 for paving and fencing a portion of land owned by the corporation for use as a parking lot for employees. The expenditure was charged to the land account.

4. The amount shown in the retirement’s column for the machinery and equipment asset represents cash received on 5^th September, on disposal of a machine purchased in July 2001 for $48,000. The bookkeeper recorded a depreciation expense of $3,500 on this machine in 2012.

5. Crux City donated land and building appraised at $10,000 and $40,000, respectively, to Halvorson for a plant. On 1^st September, the corporation began operating the plant. Because no costs were involved, the bookkeeper made no entry for the foregoing transaction.

Required:

In addition to inquiring of the client, explain how you found each of the described items of information during the audit.

QUESTION 2:

S.B.Consult Ltd, recognized as the leader in hospital supplies, has received an invitation to supply FBC, ECG, and dental machines to Justab Hospital in Kasoa. The contract will be for 10 years, and management is considering appraising the investment to enable them present their proposals for the contract. The following information was extracted from the recently published accounts of S.B. Consult Ltd.

The Treasury unit of S.B.Consult Ltd has estimated that it will require GH¢ 10 million to finance the new project. The total amount would be raised through 10% Irredeemable bonds at the current market price. The cost of Preference shares and Bonds will not change but equity shareholders will demand an increase of 20% on the current cost of equity.

S.B.Consult Ltd has a beta of 0.8, the market risk premium for the steel industry is 6.25%, and the Government of Ghana Bond rate is 20%. The current market price for Irredeemable Bonds of GH¢1,000 nominal value is GH¢850.

S.B. Consult Ltd’s dividend policy is to pay constant dividend and this policy will not change into the foreseeable future. The recent dividend paid was GH¢20 per share. S.B. Consult Ltd is a Free Zones Company and therefore pays tax at a rate of 8%.

Required:

i) Calculate the current market capitalization of S.B. Consult Ltd.                    

(Hint: ?=??+ ? (??−??))

QUESTION 3:

Boateng Plaza Ltd, a hotel leisure company, is currently considering taking over a smaller private limited company, Badin Ltd. The board of Boateng Plaza is in the process of making a bid for Badin Ltd but first needs to place a value on the company.

Boateng Plaza has gathered the following data:

The company’s earnings yield is 12%.

Required:

i) As a Finance Manager, calculate the value of the company based on the present value of expected earnings.                                                                                                            

ii) Explain THREE problems associated with using P/E method for valuing firms.           

It's a complete question, Sir

You want to determine whether the following four suggestions (i.e., e, f, g, h) would improve the company’s performance. Determine the effects of each suggestion on operating income, contribution margin per unit, contribution margin percentage, breakeven point in units, and breakeven point in sales dollars.

Calculate the effects of each suggestion independently of the other suggestions. In other words, use the original baseline case data and make the first change (e); use the original baseline case data and make the second change (f); and so on. However, do not overwrite the original baseline case. The easiest way to do this is to copy the original data to a new sheet and then replace the original data parameters. To copy a sheet, click on the sheet name. Select “Move or Copy.” Click on the “Create a copy” box. Click OK. Rename your new sheet to indicate the name of the new scenario. For example, you could name the sheet for (e) ‘Commission.’ To rename a sheet, right click on the sheet name. Select “Rename.” Key in the new name.

E. Put all personnel on commission. This action would affect the sales salaries and commissions expense by eliminating the fixed portion and increasing the variable portion by $4.50 per unit. Sales would increase by 44,000 units.

F. Redesign the package for the product. This would decrease the variable direct materials cost by $1.50 per unit but would increase the fixed factory overhead by $36,000.

G. Launch a new advertising campaign. This would increase fixed advertising expense by $348,000 but would increase sales volume by 4,800 units.

H. Reduce the selling price of the product by $15.00 per unit. This would increase sales volume by 16,800 units.

You want to determine whether the following four suggestions (i.e., e, f, g, h) would improve the company’s performance. Determine the effects of each suggestion on operating income, contribution margin per unit, contribution margin percentage, breakeven point in units, and breakeven point in sales dollars.

Calculate the effects of each suggestion independently of the other suggestions. In other words, use the original baseline case data and make the first change (e); use the original baseline case data and make the second change (f); and so on. However, do not overwrite the original baseline case. The easiest way to do this is to copy the original data to a new sheet and then replace the original data parameters. To copy a sheet, click on the sheet name. Select “Move or Copy.” Click on the “Create a copy” box. Click OK. Rename your new sheet to indicate the name of the new scenario. For example, you could name the sheet for (e) ‘Commission.’ To rename a sheet, right click on the sheet name. Select “Rename.” Key in the new name.

Put all personnel on commission. This action would affect the sales salaries and commissions expense by eliminating the fixed portion and increasing the variable portion by $4.50 per unit. Sales would increase by 44,000 units.

Redesign the package for the product. This would decrease the variable direct materials cost by $1.50 per unit but would increase the fixed factory overhead by $36,000.

Launch a new advertising campaign. This would increase fixed advertising expense by $348,000 but would increase sales volume by 4,800 units.

Reduce the selling price of the product by $15.00 per unit. This would increase sales volume by 16,800 units.

You run a manufacturing outfit that produces Widget, an electronic part that is used in automotive production. A certain expensive component—let’s call it Product X-- is one of the materials required in assembling each Widget.

Currently, you are purchasing Product X from a supplier at a cost of $1,000 per unit. You are contemplating to produce Product X in-house (instead of buying or outsourcing) for a variety of reasons, including more control of the product’s quality, lead time, and inventory. Manufacturing Product X in-house is subject to economies of scale. In particular, the learning curve applies to the labor content in manufacturing the product. As such, the average cost to manufacture Product X decreases as the number of units produced (Q) increases.

In order to assist you in making a choice between buying Product X from a supplier or making the part in house, develop a template using Excel for evaluating the total costs, as well as average cost, for the Buy and Produce options under varying levels of annual demand (Q) for Product X.

Additional information (inputs to your comparative analysis) for the Produce option is as follows:

• Setup Cost (FC):                                                                  $1,000
• The Material Cost per Unit (TMC):                                          $250
• Labor Hours to Produce the First Unit (T1):                          8 hours
• Learning Percentage (L%):                                                         90%
• Labor Cost (including benefits) per Hour (LCpH): $75
• Overhead Cost (OHC):                                                                20% of labor, material, and fixed cost
• Purchase cost per unit (PuC)                                                     $1000

1. Create an X,Y line graph for the Make Option. The X-axis of the graph is Q (quantity produced). The Y-axis should only include the total fixed cost, total labor cost, total material cost, total overhead cost, and total cost. Name and label the graph completely and clearly. Be sure that anyone reading this graph will know what each of the graph components means (i.e. use appropriate graph labels and titles).

2. Create and X,Y graph comparing the average cost per unit of making widget in-house and the average cost per unit of the widget if purchased from the supplier. Name and label the graph clearly and completely. Be sure that anyone reading this graph will know what each of the graph components means (i.e. use appropriate graph labels and titles). What is the indifference point between the two options? Explain what this means.

As a consultant specializing in economics, you have been hired by the small island nation of Petrolo. Although Petrolo’s landmass is small (about the size of Florida), it enjoys enormous oil reserves that rank number five in the world for high grade petroleum. To date Petrolo has not found it necessary to drill into its substantial but at a higher production cost of offshore reserves that are within the 18 mile territorial limit. Petrolo has prospered by pumping enough onshore oil to allow its government to provide handsome social benefits and low taxes to its population while maintaining full employment. Although its only industry is crude oil supply, the country enjoys one of the highest standards of living in the world. Unfortunately, the industrial economies of the world have slowed tremendously in petroleum consumption; world demand for oil is now at a 25 year low; oil prices are at about 30% of what they were a year ago. Today a barrel of oil is selling for $40 while Petrolo’s current average cost of pumping oil is $50 per barrel. As the special consultant to the President, you have been asked to evaluate the economic impact of four options and make a specific recommendation for what the country should do. The options are: Option 1: Stop pumping until the market price reaches at least the extraction cost of $50 a barrel. Option 2: Keep pumping to provide some cash flow. Option 3: Sell offshore licenses to private international companies, which would pay a royalty of $15 per barrel with all extraction costs borne by the licensees. Option 4: Prepare a bond to finance entry into the leisure market with high-end hotels, casinos and entertainment venues. Although this would restrict drilling operations to southern half of the island, the northern end of Petrolo could become a magnificent tourism venue for the world’s wealthy. Tax-free operations for the first ten years of operations for major hotel/casino operations would entice investment. Assignment Prepare a 4 - 6 page paper that uses 2 or more sources, adheres to APA standards and addresses the following: For each of the four options, identify three (3) potential economic impacts considering both possible benefits and downsides and implications for Petrolo’s government and citizens. Based on your analysis and research, make one or more specific recommendations to address the issue.

did the BE bacteria successfully acquire the ampicillin resistance gene? if so ,ho
w successful was the transduction, give percentage

In a Hardy-Weinberg population with two alleles, A and a, that are in equilibrium, the frequency of allele A is 0.35. What is the percentage of the population that is homozygous for this allele?