Diane Corporation is preparing its year-end balance sheet. The
company records show the following selected amounts at the end of
the year:
| Total assets | $ | 590,000 | |
| Total noncurrent assets | 354,000 | ||
| Liabilities: | |||
| Notes payable (8%, due in 5 years) | 20,000 | ||
| Accounts payable | 54,000 | ||
| Income taxes payable | 12,000 | ||
| Liability for withholding taxes | 5,000 | ||
| Rent revenue collected in advance | 10,000 | ||
| Bonds payable (due in 15 years) | 99,000 | ||
| Wages payable | 10,000 | ||
| Property taxes payable | 6,000 | ||
| Note payable (10%, due in 6 months) | 13,000 | ||
| Interest payable | 500 | ||
| Common stock | 290,000 | ||
In: Accounting
SIU is a university in the UK catering for international students. There are currently 950 students. Fees were £16,000 for the last year and the president is concerned that adverse changes in the economic and educational environment are threatening the university’s future. The income of the market is expected to decline next year by 2%, and it is also expected that the average fee of competitive institutions will fall from £14,000 to £12,000. 10% of revenue is currently spent on promotion. The president does some research and estimates that the relevant demand elasticities are as follows:
PED = -1.6, YED = 2.2, AED = 1.8, CED = 0.8.
In: Economics
SIU is a university in the UK catering for international students. There are currently 950 students. Fees were £16,000 for the last year and the president is concerned that adverse changes in the economic and educational environment are threatening the university’s future. The income of the market is expected to decline next year by 2%, and it is also expected that the average fee of competitive institutions will fall from £14,000 to £12,000. 10% of revenue is currently spent on promotion. The president does some research and estimates that the relevant demand elasticities are as follows:
PED = -1.6, YED = 2.2, AED = 1.8, CED = 0.8.
In: Economics
Linear programming / excel solver
If possible please show all equations/constraints
In: Operations Management
Business is becoming more and more competitive, and organisations have realised that purchasing and Supply Chain Management (SCM) are key factors in satisfying customers. Buyers and supply chain managers can contribute significantly to the organisation's profits. An organisation can spend as much as 50% of its sales revenue on purchasing parts, services, components and raw material. Therefore, efficient, mutually beneficial and constructive relationships with suppliers are very important to the organisation's short-term financial position and long-term competitive power.
1. Differentiate between constructive and competitive
negotiation. (10)
2. Discuss the guidelines for maintaining positive supplier and
customer relationships. (10)
In: Operations Management
Imagine you are representing one of the members of the OPEC, and you are motivated by an increase of your revenue from the sale of crude oil. You have to compromise on current decision on possible output decrease as to stimulate the world price of gas. Please consider the historical relation of the reaction of the gas price at the pump to the world price of the crude oil per barrel. Please resort to the NYU STERN case on The Petroleum Market: 1970 – 2000 (via link provided below the assignment), but most of all to the research on the following issues in the summer of 2008 in the US and now, and the political debate on the energy crisis, environmental protection and renewable sources of energy.
In: Economics
The income statement of Oriole Company for the month of July shows net income of $3,490 based on Service Revenue $7,630, Salaries and Wages Expense $2,370, Supplies Expense $980, and Utilities Expense $790. In reviewing the statement, you discover the following: 1. Insurance expired during July of $550 was omitted. 2. Supplies expense includes $410 of supplies that are still on hand at July 31. 3. Depreciation on equipment of $290 was omitted. 4. Accrued but unpaid wages at July 31 of $440 were not included. 5. Service performed but unrecorded totaled $740. Prepare a correct income statement for July 2022.
In: Accounting
(a) The manufacturing firm Rebo is considering a new capital investment project. The project will last for five years. The anticipated sales revenue from the project is $3 million in year 1 and $4.2 million in each of years 2 – 5. The cost of materials and labour is 50% of sales revenue and other expenses are $1 million in each year. The project will require working capital investment equal to 20% of the expected sales revenue for each year. This investment must be in place at the start of each year. Working capital will be recovered at the end of the project’s life. UL20/0419 Page 4 of 8 The project will require $2.5 million to be spent now on new machinery which will have zero value at the end of the project and will be depreciated each year at 20% of the original cost. The tax rate is 25%. Rebo uses a discount rate of 11% to evaluate its capital investment projects.
(i) What is the net income in each year?
(ii) What is the free cash flow in each year and the net present value (NPV)?
(iii)You discover the following additional information: • The project will utilise a building that the firm leases. No other activities take place in it. If this project does not go ahead the firm will terminate the lease in one year’s time if no other use for it has been found. • Part of each year’s cash flows from the project will be used to increase the dividend payment to shareholders. For each of these items, explain briefly whether or not you would incorporate the information into your analysis of the project’s value.
(b) Zuti has a capital investment project that could start immediately. The project will require a machine costing $2.4 million. The total discounted value now of the cash inflows from the project will be either $2.6 million or $1.9 million with equal probability. The risk-free rate is 3%. Instead of starting immediately the project could be delayed until one year from now to gain more market information. Its total discounted cash inflows at that time will be known as either $2.6 million, or $1.9 million, with certainty.
(i) What is the present value of the option to delay?
(ii) The supplier of the machine has offered to deliver it (if required) in one year’s time at a price of only $2 million, if Zuti pays a non-refundable deposit now. What is the maximum the firm should pay as a deposit now? What type of real option does this represent for Zuti? Identify the specific components of the option contract.
In: Finance
On January 23, 16,000 shares of Tolle Company are acquired at a price of $24 per share plus a $160 brokerage commission. On April 12, a $0.40-per-share dividend was received on the Tolle Company stock. On June 10, 6,400 shares of the Tolle Company stock were sold for $32 per share less a $100 brokerage commission. Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar. CHART OF ACCOUNTS General Ledger ASSETS 110 Cash 111 Petty Cash 120 Accounts Receivable 121 Allowance for Doubtful Accounts 131 Notes Receivable 132 Interest Receivable 141 Merchandise Inventory 145 Office Supplies 161 Investments-Tolle Company Stock 165 Valuation Allowance for Trading Investments 166 Valuation Allowance for Available-for-Sale Investments 181 Land 193 Office Equipment 194 Accumulated Depreciation-Office Equipment LIABILITIES 210 Accounts Payable 221 Notes Payable 231 Interest Payable 241 Salaries Payable EQUITY 311 Common Stock 312 Paid-In Capital in Excess of Par-Common Stock 321 Preferred Stock 322 Paid-In Capital in Excess of Par-Preferred Stock 331 Treasury Stock 332 Paid-In Capital from Sale of Treasury Stock 340 Retained Earnings 350 Unrealized Gain (Loss) on Available-for-Sale Investments 351 Cash Dividends 352 Stock Dividends 390 Income Summary REVENUE 410 Sales 611 Interest Revenue 612 Dividend Revenue 621 Income of Tolle Company 631 Gain on Sale of Investments 641 Unrealized Gain on Trading Investments EXPENSES 511 Cost of Merchandise Sold 512 Bad Debt Expense 516 Cash Short and Over 520 Salaries Expense 531 Advertising Expense 534 Selling Expenses 535 Rent Expense 537 Office Supplies Expense 562 Depreciation Expense-Office Equipment 590 Miscellaneous Expense 710 Interest Expense 721 Loss of Tolle Company 731 Loss on Sale of Investments 741 Unrealized Loss on Trading Investments Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method. Refer to the Chart of Accounts for exact wording of account titles. When required, round your answers to the nearest dollar.
In: Accounting
Determine the below ratios for 2011 and 2012 and compare the Hospitals financial performance year to year based on those ratios. Make sure you explain what each ratio measures
Current Ratio
Average Payment Period
Operating Margin
Total Margin
Return on Net Assets
Cash Flow to Debt
FINANCIAL STATEMENTS:
Cash Flows from Operating Activities:
2012
2011
Cash received from patient
services
$3783
$2590
Cash paid to employees and
suppliers
(3684)
(2541)
Interest
paid
(16)
(14)
Interest
earned
13
6
Net Cash from
Operations
$96
$41
Cash Flows from Investing Activities:
Purchase of Property and Equipment ($25) ($19)
Securities
Purchase
($35)
($15)
Net Cash from Investing
Activities
($60)
($34)
Cash Flows from Financing
Activities:
Contributions
10
6
Repayment of long-term
debt
(13)
(0)
Net cash from financing
activities
($3)
($6)
Net increase (decrease) in cash and
equivalents
($33)
($13)
Cash and equivalents, beginning of
year
$41
$28
Cash and equivalents, end of
year
$74
$41
Revenues
2012
2011
Patient Service
Revenue
$4042
$2687
Provision for bad debts
$46
$21
Net Patient Service
Revenue
$3996
$2666
Other operating
revenue
$27
$32
Total
Revenues
$4023
$2698
Expenses:
Salaries and
benefits
$2714
$1835
Supplies and
drugs
1042
675
Insurance
90
83
Depreciation
21
15
Interest
16
19
Total
expenses
$3883
$2627
Operating
Income
$140
$71
Non-operating Income:
Contributions
$10
$22
Investment
income
13
6
Total Non-operating
income
$23___
28____
Net income (excess of revenues
over
expenses)
$163
$99
ASSETS
2012
2011
Current Assets:
Cash and cash equivalents
$74
$41
Shor-term
investments
$147
$137
Accounts receivable,
net
727
476
Inventories
27__
22___
Total Current
Assets
$975__
$676__
Investments
125___
$100____
Property and Equipment:
Medical and office
equipment
$56
$54
Vehicles
70__
47___
Total
$126
$101
Less: Accumulated
Depreciation
(45)
(24)
Net Property
Equipment
$81
$77
Total
Assets
$1181
$853
LIABILITIES AND EQUITY
Current
Liabilities:
Notes
payable
$13
$13
Accounts
Payable
40
21
Accrued
expenses
496
337
Total Current
Liabilities
$541
$371
Long term
debt
$154__
$167_
Total Liabilities
$703
$538
Equity (Net
Assets)
$478
$315
Total Liabilities and
equity
$1181
$853
In: Finance