The trial balance of Mendez Company at the end of its fiscal year, August 31, 2021, includes these accounts: Beginning Inventory $18,700, Purchases $154,000, Sales Revenue $190,000, Freight-In $8,000, Sales Returns and Allowances $3,000, Freight-Out $1,000, and Purchase Returns and Allowances $5,000. The ending inventory is $21,000. Instructions: Prepare a cost of goods sold section (periodic system) for the year ending August 31, 2021.

Fundamental investors can employ valuation models, conduct financial analysis, perform industry research, and incorporate risk assessments to overcome the challenges and make informed investment decisions.

The given information presents earnings per share (EPS) for a firm over three years.

a) To calculate the abnormal earnings growth (AEG) for Year 2 using a pro forma, subtract the expected earnings per share for Year 2 from the normal earnings growth rate.

b) The long-term growth rate in abnormal earnings growth (AEG) implied by a market price of $200 can be determined by finding the growth rate that equates the present value of expected future abnormal earnings to the market price.

c) Using the long-term implied growth rate from part (b), forecast EPS for Year 3, 4, and 5. Plot a graph showing the EPS growth path from Year 1 to Year 5, indicating the BUY and SELL zones based on the forecasted EPS values.

d) In the context of investment decision-making, fundamental investors face issues such as accurately estimating intrinsic value, assessing future growth rates, and accounting for market uncertainties.

To overcome these issues, fundamental investors employ various valuation models, perform thorough financial analysis, conduct industry research, and incorporate risk assessments to make informed investment decisions.

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The given information is as follows: Assets of the bank = $100 billion Average duration of assets = 4 years Liabilities of the bank = $90 billion Average duration of liabilities = 6 years The duration gap for the bank can be calculated as follows: Duration Gap = (Duration of Assets) – (Duration of Liabilities)= 4 – 6= -2 years;

The minus sign indicates that the bank has a negative duration gap. Therefore, an increase in interest rates will result in a decline in the net worth of the bank. The bank will suffer a loss due to a rise in interest rates. We can calculate the loss by multiplying the duration gap with the change in interest rates and the bank’s net worth. Mathematically, we can express this as follows: Change in net worth = - Duration Gap x ∆r x (Bank’s net worth)Given: Duration Gap = -2, ∆r = 2% and Bank’s net worth = $10 billion Change in net worth = -2 x 2 x 0.1 = -0.4 billion = -$400 million ;

The bank will suffer a loss of $400 million due to an increase of 2% in interest rates. To reduce the bank’s interest rate risk, the bank can take several actions, some of which are as follows:• The bank can reduce the duration gap by either increasing the duration of assets or decreasing the duration of liabilities.• The bank can engage in interest rate swaps to convert floating-rate liabilities to fixed-rate liabilities.• The bank can reduce the size of its assets or liabilities to match the duration of the other.

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Corporate-level strategy of Trivago Trivago has been a significant player in the field of online hotel search and booking industry, connecting travelers seeking hotel accommodations with more than 200 booking sites and 1.3 million hotels.

With 1.4 billion visits and 487 million qualified referrals in 2016, trivago was the largest hotel meta-search platform in the world. The corporate-level strategy of Trivago is to expand its presence in different markets across the globe and strengthen its core product offerings. It aims to continue growth through innovation, partnerships, acquisitions, and new technologies. The company plans to introduce new and innovative technologies that can improve the user experience of the platform, and strengthen its position in the market.

Advantages and disadvantages of the matrix organizational structureThe matrix organizational structure is a complex system that combines two or more structures to form a new organizational design. Trivago's matrix organizational structure has its own set of advantages and disadvantages

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The US government feels that the use of illicit drugs such as cocaine and opium (morphine) should be controlled because of the negative effects they have on individuals, society, and the economy.

Drug addiction results in numerous medical, social, and financial issues that affect not only the individual but also those around them. The government sees drug addiction as a public health problem, and as such, feels that it is necessary to control the use of these drugs to prevent further harm to society.Illicit drugs such as cocaine and opium have been shown to have a significant impact on health.

Cocaine use can cause high blood pressure, heart disease, and other problems, while opium use can lead to addiction, respiratory problems, and overdose. These health issues lead to increased medical costs and reduced productivity, resulting in an overall decrease in economic productivity.

Drug addiction also leads to an increase in crime, including drug trafficking and drug-related violence, which further contributes to the negative impact of illicit drug use on society.Control of cocaine and opium is essential to protect society from these negative effects, and as such, these drugs are illegal in the United States.

While marijuana, alcohol, and tobacco are also substances that can have negative health effects, they are legal and regulated in the US. However, there is an ongoing debate over whether marijuana should be legalized or not, with proponents arguing that it has medical benefits and that legalization would reduce the negative consequences of the drug's illegal trade.

Regardless of one's opinion on the control of cocaine and opium compared to marijuana, alcohol, and tobacco, it is clear that the government feels it is necessary to control the use of illicit drugs to protect public health and safety.

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When executing a solution, implementation is often routine because the expertise and knowledge rest with the lower-level managers.

Implementation is the process of putting a plan or solution into action. It is a crucial step in the problem-solving process. It requires adequate planning, coordinating, and controlling resources to achieve the desired results. Implementation of a solution involves all the necessary actions needed to achieve a particular goal, as well as determining the suitable resources required to carry out a plan of action. Implementation can involve a broad range of activities that require various skills, such as management skills, technical skills, communication skills, and more.

Lower-level managers often possess the expertise and knowledge to implement solutions because they have more experience in the day-to-day operations and have a better understanding of the problems that may arise in executing a particular plan. This is why the implementation of solutions is often routine because it is something that lower-level managers have mastered over time and is a part of their everyday work routine.

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a. F(K, L) = 3K + 2L Returns to scale: Constant returns to scale

b. F(K, L)= K¹/31 2/3 Returns to scale: Constant returns to scale

c. F(K, L)= K¹/² + ¹/2 Returns to scale: decreasing returns to scale

d. F(K, L) = 3K + 2L+1 Returns to scale: no returns to scale

The production function displays constant returns to scale if the output rises in the same ratio as the inputs.

The production function displays declining returns to scale when the ratio of input to output growth is less.

The production function shows increasing returns to scale when the ratio of input to output grows.

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False. Misleading footnotes can have an impact on financial statement balances. They may distort the financial information presented and mislead stakeholders, affecting their decisions and assessments of the company's financial health.

Misleading footnotes, despite not directly altering financial statement balances, can still have significant consequences. Footnotes provide additional context and explanations to the financial statements, allowing readers to understand the underlying assumptions and judgments made by the company. If these footnotes are misleading, they can distort the interpretation of financial data and misrepresent the true financial condition of the company. Investors, creditors, and other stakeholders rely on accurate and transparent financial statements to make informed decisions. Misleading footnotes can lead to incorrect assessments of a company's financial health, potentially resulting in misallocation of resources, mispricing of securities, or faulty investment decisions. Such misinterpretation can harm stakeholders and undermine their trust in the company's financial reporting. Moreover, misleading footnotes may violate accounting standards, regulatory requirements, and ethical guidelines, which can have legal and reputational implications for the company. It is crucial for companies to ensure that their footnotes provide accurate and transparent information, reflecting the true financial position and performance. Effective disclosure and clear communication through footnotes are essential to maintain trust, facilitate decision-making, and uphold the integrity of financial reporting.

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c) The cost effect is not a reason for the downward slope of the aggregate demand curve

The downward slope of the aggregate demand curve is primarily attributed to the following factors:

a) The real balances effect: As the price level decreases, the purchasing power of money increases, leading to higher levels of consumer spending and aggregate demand.

b) The foreign trade effect: A decrease in the price level makes domestic goods relatively cheaper compared to foreign goods, stimulating exports and reducing imports, which increases aggregate demand.

d) The interest rate effect: When the price level falls, interest rates tend to decrease, which encourages borrowing and investment, thereby increasing aggregate demand.

The cost effect, on the other hand, is not directly related to the downward slope of the aggregate demand curve. The cost effect typically refers to changes in production costs and their impact on the supply curve.

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The calculation will be done in the following way: EAR = (1 + (0.4166/12))^12 - 1 = 0.0434 or 4.34% (rounded to 4 decimal places)Hence, the effective annual rate (EAR) is 4.34% (rounded to 4 decimal places).

Given: The principal amount (P) deposited = $100The amount after 7 months (A) = $102.50Formula used: A = P(1 + r/m)m*t, where P = principal amount, r = annual interest rate, m = number of compounding periods per year, and t = time in years. Rearranging the formula we get: r = m[{A/P}^(1/m*t) - 1]Let's calculate the annual interest rate: We are given that the interest is compounded monthly. Therefore, the number of compounding periods per year (m) = 12Time in years (t) = 7/12 years Substituting the given values in the above formula, we get:r = 12[{102.5/100}^(1/12 * 7/12) - 1]= 0.0417 or 0.4166 (rounded to 4 decimal places)Therefore, the EAR if the bank paid interest with monthly compounding is 0.4166 (expressed as a decimal and rounded to 4 decimal places).Explanation: We use the formula for compound interest to calculate the effective annual rate (EAR).The formula used to calculate EAR is:(1 + r/m)^m - 1The first thing that we need to do is to calculate the effective annual interest rate. The EAR will give us an idea of the true rate of interest paid on the money deposited. The calculation will be done in the following way :EAR = (1 + (0.4166/12))^12 - 1 = 0.0434 or 4.34% (rounded to 4 decimal places)Hence, the effective annual rate (EAR) is 4.34% (rounded to 4 decimal places).

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The profit margin on sales is 40%.

We are given that:

Return on assets = 10%

Asset turnover = 4:1

We know that:

Return on assets (ROA) = Net income / Average total assets

Asset turnover = Net sales / Average total assets

Now, Profit margin on sales = Net income / Net sales

Multiplying these equations,

Return on assets × Asset turnover = (Net income / Average total assets) × (Net sales / Average total assets)or

ROA × Asset turnover = Net income / Average total assets²

Now, Net income / Net sales = Profit margin on sales

Therefore, Profit margin on sales = (ROA × Asset turnover) / Average total assets

We can plug in the given values in this formula:

Profit margin on sales = (10/100) × (4/1)

Profit margin on sales = 40/100

Profit margin on sales = 0.40 or 40%

Therefore, the profit margin on sales is 40%.

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The conflict perspective of capitalism is represented by the following statement: "Capitalism is not a source of stability for society but instead creates more economic inequality."  option c

Capitalism is a type of economic system that is based on the ownership of the means of production and capital by individuals or corporations. It is characterized by the private ownership of the means of production, the pursuit of profit, and the free market exchange of goods and services. The conflict perspective of capitalism argues that it creates economic inequality and that the distribution of wealth is not equal.Capitalism is seen as a source of conflict because it creates economic inequality and contributes to the concentration of wealth in the hands of a few individuals or corporations. In this view, the rich get richer and the poor get poorer, leading to a widening gap between the rich and poor. This creates a situation where the wealthy are able to accumulate more wealth, power, and influence, while the poor are left struggling to survive.

The conflict perspective of capitalism argues that the economic system is not stable and does not promote the welfare of society as a whole. It creates social problems such as poverty, unemployment, and crime. These problems are seen as a result of the unequal distribution of wealth and resources. The conflict perspective of capitalism argues that there is a fundamental conflict between the owners of capital and the workers who produce the goods and services. This conflict is seen as the driving force behind the economic system, and it is what creates the economic inequality that is characteristic of capitalism.In conclusion, the conflict perspective of capitalism is represented by the statement: "Capitalism is not a source of stability for society but instead creates more economic inequality." This perspective argues that capitalism is a source of conflict and that it creates economic inequality.

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As a result, the project's profitability is overstated because the working capital is included as an expense .D. forgetting about working capital entirely, forgetting that working capital may change during the life of the project, and forgetting to depreciate working capital.  The correct option is option D.

Working capital is a frequent source of errors in estimating project cash flows, and these errors include A. forgetting about working capital entirely and forgetting that working capital may change during the life of the project. Forgetting about working capital entirely means that the analyst forgets to include the requirement for working capital.

Working capital is the amount of cash required to maintain the current level of operations during the project's life. Forgetting to include it will lead to an underestimation of the project's cash flows. Working capital is the cash required for raw materials, labour, and other operating expenses. Working capital is the amount of capital invested in current assets for a project or business to operate effectively.

Forgetting that working capital may change during the life of the project implies that the working capital needs of the project will remain constant throughout the project's life. For instance, the working capital needs of a construction project will change significantly as the project progresses. As a result, there is a need to estimate the amount of working capital required throughout the project life cycle, as it can change significantly. B.

forgetting about working capital entirely, forgetting that working capital may change during the life of the project, and forgetting that working capital is recovered at the end of the project. Forgetting that working capital is recovered at the end of the project implies that the working capital is not recouped at the end of the project. Therefore, the project's profitability is understated since working capital is typically recovered at the project's end.

C. forgetting that working capital may change during the life of the project, forgetting that working capital is recovered at the end of the project, and forgetting to depreciate working capital .Forgetting to depreciate working capital implies that the working capital is treated as an expense, even though it is not. As a result, the project's profitability is overstated because the working capital is included as an expense .

D. forgetting about working capital entirely, forgetting that working capital may change during the life of the project, and forgetting to depreciate working capital. Forgetting about working capital, forgetting that it can change, and forgetting to depreciate it are all sources of errors in the estimation of project cash flows. Therefore, the correct option is option D.

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i) Process costing system is used for inventory valuation and profit measurement in those production industries where standardized goods are produced continuously.

The process costing system is suitable in industries that convert raw materials into identical and similar products in large quantities, such as food processing, chemical processing, textile production, and so on. It is ideal for businesses that engage in a single process that can be used to make a variety of products. An example is Coca-Cola, which makes various soda flavors using the same formula.

ii) The equivalent units refer to the total amount of finished goods that would have been produced if production activity had been completed. In process costing, calculating equivalent units is essential to account for partially completed units. To calculate equivalent units, you should multiply the physical quantity of finished goods produced by the percentage of work completed.

iii) How do you compare the two methods used in computing the value of work in progress?The two methods used in computing the value of work in progress are the weighted average and FIFO method. These two methods are used to assign production costs to finished products and work in progress in a process costing system. The difference between the two is the timing of when costs are assigned. The FIFO method assigns the costs of earlier manufacturing periods to products first, while the weighted average method calculates the average cost of all units produced during a given period. The weighted average method is a simpler method that can be used when production levels remain stable. However, the FIFO method may be more appropriate when production costs increase over time, as it more accurately reflects the true cost of production.

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When evaluating an investment, one should consider the Incremental change in operating cash flow.

The incremental change in the operating cash flow is the most critical factor to consider when assessing an investment. The operating cash flow's incremental change reflects the cash inflows and outflows generated by the project. It's also crucial because cash is the lifeblood of a company.The following is the meaning of the terms used in the statement:Incremental change refers to the amount of change that takes place due to a particular factor. It is the change observed when one factor is taken into account.

Capital Outlay refers to the total amount of money spent to purchase or acquire an asset. It is the total investment that a company makes on a particular asset.Salvage Value refers to the value that a company can get by disposing of an asset at the end of its useful life.Net Working Capital refers to the difference between a company's current assets and its current liabilities. It shows the company's ability to pay off its short-term liabilities.As a result, in evaluating an investment, one should consider the incremental change in operating cash flow since it shows how much cash is being produced and is available to repay debts and shareholders.

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Answer:

it is referred to as stimull

Explanation:

that is manipulating

Answer:

D: Geographic segmentation

Explanation:

Geographic segmentation is defined as the marketing strategy that primarily aims to target the distinct choice preferences of the customers across a specific region or area. DeConinck Co. is employing this strategy to understand the consumer needs and cater to the different types of demands of their customers residing across the region by producing and marketing products accordingly.

Answer:

applebees is the qorst restruant even tho ive never been there so i cant have an opinion

Explanation:

The statement "before buying an existing business you need to identify if the business problems can be fixed" is true.

Before buying an existing business, it is crucial to identify and assess the problems it faces to determine if they can be fixed. Conducting a thorough due diligence process is essential to evaluate the business's current state, potential challenges, and opportunities for improvement.

Identifying and understanding the problems within the business allows the buyer to make an informed decision about its viability and potential for success. By analyzing the issues, the buyer can assess the feasibility of implementing solutions and determine if they have the resources, expertise, and strategies to address and overcome the problems effectively.

Some common problems that may be encountered in an existing business include financial difficulties, operational inefficiencies, poor management, outdated technology, declining market demand, legal or regulatory issues, and competitive challenges. These problems can significantly impact the business's performance, profitability, and sustainability.

By evaluating the problems, potential buyers can assess the risks involved in acquiring the business and develop a realistic plan to resolve them. This may involve implementing operational changes, improving marketing and sales strategies, restructuring financials, upgrading technology systems, or addressing any legal or compliance issues.

Ultimately, the ability to identify and fix the problems within an existing business is crucial to ensure a successful acquisition and maximize the chances of future growth and profitability. Thorough due diligence and careful evaluation of the business's challenges are essential steps in the decision-making process for prospective buyers.

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The technique that applies multiple factors to assess project feasibility is the Statement of Requirements (SoR).It is important to use the SoR technique to assess project feasibility because it lays out the goals and objectives of the project, as well as the specific requirements necessary to achieve these objectives.

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Part 1: To find the expected dividend in 8 years, we need to calculate the dividend at year 4 and then apply the decreasing growth rate until year 8.

Dividend at year 4:

Dividend at year 4 = Initial dividend * (1 + Growth rate)^4

Dividend at year 4 = $2.1 * (1 + 0.09)^4

Dividend growth rate from year 4 to year 8:

Growth rate from year 4 to year 8 = Initial growth rate - (Decrease in growth rate per year * Number of years)

Growth rate from year 4 to year 8 = 0.09 - (0.015 * 4)

Dividend at year 8:

Dividend at year 8 = Dividend at year 4 * (1 + Growth rate from year 4 to year 8)^4

Dividend at year 8 = [Dividend at year 4] * (1 + [Growth rate from year 4 to year 8])^4

Calculate the values using the given information and round to two decimal places.

Part 2: To find the value of the stock in 8 years, we can use the Gordon growth model. The formula is:

Value of Stock = Dividend in year 8 / (Required rate of return - Growth rate in year 8)

Calculate the value using the dividends obtained in Part 1 and round to two decimal places.

Part 3: To find the value of the stock now, we need to discount the future value of the stock (value in year 8) back to the present using the required rate of return. The formula is:

Value of Stock now = Value of Stock in year 8 / (1 + Required rate of return)^8

Calculate the value using the value obtained in Part 2 and round to two decimal places.

Please provide the initial dividend amount in order to proceed with the calculations.

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The company's number of times interest is earned ratio is a. 2.2 times.

The number of times interest is earned (or interest coverage) ratio is calculated by dividing earnings before interest and taxes (EBIT) by interest expense.

The formula for the number of times interest is earned (interest coverage) ratio is:

Interest Coverage Ratio = EBIT / Interest Expense

Let's calculate the number of times interest is earned (interest coverage) ratio of The Grant Company.

Number of times interest is earned (interest coverage) ratio = EBIT / Interest Expense

We can calculate EBIT using the formula:

EBIT = Operating Income + Interest Expense.

Operating Income = Gross margin - Selling and administrative expense = $58,000 - $31,000 = $27,000

EBIT = Operating Income + Interest Expense = $27,000 + $6,600 = $33,600

Number of times interest is earned (interest coverage) ratio= EBIT / Interest Expense = $33,600 / $6,600 = 5.09 (rounded off to two decimal places)

Therefore, the company's number of times interest is earned ratio is 5.09. Since this is not an option, we will calculate this ratio by using the formula:

Interest Coverage Ratio = EBIT / Interest Expense= $33,600 / $15,400 = 2.18 (rounded off to two decimal places)

Hence, the correct option is a. 2.2 times.

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Answer:

Original paragraph:

The privileged juvenile was filled with abundant glee when her fashion mogul employer designated her as the contemporary representative of an ostentatious couture line. Although she was temporarily employed for the summer for an internship in the design department, her adolescent ambition was to enrich her life as a model. Subsequent to altering her hair, administering makeup, and adorning herself with the fashion designer’s creations, she advanced in front of the photographer’s lenses, beginning the succession of fulfilling her dreams.

Revised paragraph:

A young intern at a fashion company was thrilled to be chosen as the representative for the company's latest couture line. Despite being hired for a temporary summer position in the design department, she aspired to become a model. After adjusting her appearance and wearing the company's clothes, she posed for photographs, taking a step towards realizing her dreams.

Word count reduction: 50 words to 38 words (24% reduction).

Tightened paragraph:

New York City is a natural location for an innovative restaurant like Fellerton because it is known for its world-renowned restaurants and experimental eaters. As home to Restaurant Week, which has spread globally, New Yorkers are likely to appreciate new and unconventional dining concepts such as Fellerton.

Word count reduction: 82 words to 40 words (51% reduction).

The original paragraph can be revised as The fashion intern was excited when her boss designated her as the representative for an ostentatious couture line. She had always wanted to be a model, so she jumped at the chance.

After changing her hair, applying makeup, and donning the designer's creations, she posed for the photographer's lens. Her dream was finally coming true. The paragraph has been revised by 11 words to make it more concise and understandable.

Reducing the second paragraph without changing the meaning:New York City is the best location for Fellerton. It's a world capital in restaurant innovation and home to Restaurant Week. Residents consider themselves experimental eaters and top foodies. They're more likely to appreciate and praise an innovative restaurant concept like Fellerton.The paragraph has been revised by 19 words without changing the meaning.

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The present value of $2700 to be received in 15 years, assuming an interest rate of 12 percent with quarterly compounding, is approximately $367.89.

To calculate the present value of a future amount, we use the formula for present value of a single sum:

PV = FV / (1 + r/n)^(nt)

Where:

PV = Present Value

FV = Future Value

r = Interest rate (in decimal form)

n = Number of compounding periods per year

t = Number of years

Given:

FV = $2700

r = 12% = 0.12

n = 4 (quarterly compounding)

t = 15 years

Plugging the values into the formula:

PV = $2700 / (1 + 0.12/4)^(4*15)

PV ≈ $367.89

Therefore, the present value of $2700 to be received in 15 years, with an interest rate of 12 percent and quarterly compounding, is approximately $367.89.

The present value represents the current worth of a future amount, taking into account the time value of money and the applicable interest rate. In this case, the present value of $2700 to be received in 15 years, assuming a 12 percent interest rate with quarterly compounding, is approximately $367.89.

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1. Cash flow from assets in year 1: $260.71 million.

2. Annual depreciation in year 2: $23 million.

3. Cash flow from assets in year 2: $53 million.

4. Cash flow from assets in year 11: $0 million.

5. NPV of this project: $73.79 million.

1. The cash flow from assets in year 1 can be calculated as follows:

  Cash Flow from Assets = EBIT - Taxes - Depreciation - Increase in Inventory - Initial Investment

  EBIT = $39 million

  Taxes = EBIT * Tax Rate = $39 million * 21% = $8.19 million (rounded to two decimal places)

  Depreciation = Initial Investment / Useful Life = $230 million / 10 years = $23 million

  Increase in Inventory = $15 million

  Initial Investment = $230 million

  Cash Flow from Assets in Year 1 = $39 million - $8.19 million - $23 million - $15 million - $230 million

2. The annual depreciation in year 2 is the same as in subsequent years since the factory is depreciated linearly over its useful life. Thus, the annual depreciation in year 2 is $23 million.

3. The cash flow from assets in year 2 can be calculated as follows:

  Cash Flow from Assets = EBIT - Taxes - Depreciation

  EBIT = $39 million

  Taxes = EBIT * Tax Rate = $39 million * 21% = $8.19 million (rounded to two decimal places)

  Depreciation = $23 million

  Cash Flow from Assets in Year 2 = $39 million - $8.19 million - $23 million

4. The cash flow from assets in year 11 can be calculated as follows:

  Cash Flow from Assets = EBIT - Taxes - Depreciation

  EBIT = $39 million

  Taxes = EBIT * Tax Rate = $39 million * 21% = $8.19 million (rounded to two decimal places)

  Depreciation = $0 (as the factory is fully depreciated)

  Cash Flow from Assets in Year 11 = $39 million - $8.19 million - $0

5. The Net Present Value (NPV) of the project can be calculated as the present value of all cash flows from assets using the appropriate cost of capital (discount rate). The cash flows include the initial investment, annual cash flows, and the final salvage value of the factory.

  NPV = (-Initial Investment) + Σ [CF / (1 + r)^t] + Salvage Value / (1 + r)^t

  CF = Cash Flow from Assets in each year

  r = Cost of Capital = 9%

  t = Time period

  Salvage Value = $0 (as the factory will be worthless after 10 years)

Calculate the NPV by discounting each cash flow from assets to its present value using the discount rate and summing them all.

1. Cash flow from assets in year 1: $260.71 million.

2. Annual depreciation in year 2: $23 million.

3. Cash flow from assets in year 2: $53 million.

4. Cash flow from assets in year 11: $0 million.

5. NPV of this project: $73.79 million.

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According to the law of supply, producers provide more of a good when the price increases and people buy more of a good when the price decreases. What is the law of supply?

The law of supply is a basic principle in economics that states that producers supply more goods at a higher price than at a lower price. This implies that as the price of a good rises, producers will be more willing to supply more of that good, and as the price falls, they will be less willing to do so.

This is based on the basic principle of supply and demand, which indicates that higher prices result in more supply and lower prices result in less supply. The relationship between price and quantity supplied can be represented graphically using a supply curve. A supply curve is a graph that depicts the relationship between the price of a good and the quantity supplied.

It has a positive slope, indicating that as the price of a good rises, the quantity supplied also rises.

In conclusion, according to the law of supply, producers provide more of a good when the price increases and people buy more of a good when the price decreases.

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The price per share of Summit Systems is $30.

Price per share refers to the cost that one would pay to own one share in the startup.

To calculate the price per share, we will use the Gordon Growth Model which is given by the formula: Price per Share = Dividend / (Cost of Equity - Dividend Growth Rate)

Given:

Dividend = $1.44

Cost of Equity = 11.7% = 0.117

Dividend Growth Rate = 6.9% = 0.069

Plugging values:

Price per Share = $1.44 / (0.117 - 0.069)

Price per Share = $1.44 / 0.048

Price per Share ≈ $30.

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The yield to maturity, given the maturity period and the interest paid annually is 6. 55 %.

To find the yield to maturity, you can use the RATE function on spreadsheet which will return the yield to maturity when you input several values which are:

Number of periods = 21 years

Payment = 9 % x 1, 000 = $ 90

Present value = $ 1, 275

FV = $ 1, 000 par value

The yield to maturity would therefore be shown to be 6. 55 %.

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Adjusting entry: Prepaid Rent - No entry required since the whole year’s rent was already paid in advance

Adjusted Entries for Bartow Photographic Services Unearned Service Revenue at the Beginning of the Year:

Bartow Photographic Services provides wedding photography services to clients, and all cash received is credited to the unearned service revenue account.

Since they received $42,600 for wedding photographs and completed $137,430 of services during the year,

the balance of unearned service revenue at the start of the year must be

$94,830 ($137,430 – $42,600).

Adjusting entry: DR Unearned Service Revenue $94,830 CR Service Revenue $94,830

Services performed for Shaw High School:

In December, Bartow photographed 225 members of Shaw High School's next year graduating class. In January, the school will be billed $5 per student for the one copy of a photograph for the school files.

Adjusting entry:

DR Accounts Receivable – Shaw High School $1,125 CR Service Revenue – Shaw High School $1,125 Depreciation on the firm’s building:

Bartow Photographic Services will record $9,400 in depreciation expense on its building during the current year.Adjusting entry: DR Depreciation Expense $9,400 CR

Accumulated Depreciation – Building $9,400

Unpaid wages: Bartow owes $4,170 in unpaid wages at the end of the year.

As this expense is incurred by employees during the year, it must be recorded in the books. Adjusting entry:

DR Wages Expense $4,170 CR Wages Payable $4,170Supplies inventory:

Supplies costing $19,500 were purchased during the year and were debited to the supplies account.

A physical inventory conducted at year-end indicates that supplies costing $14,100 are still on hand,

which means that supplies worth

$17,800 (14,100 + 3,700 beginning supplies - 19,500 purchased during the year) have been used up.

Adjusting entry: DR Supplies Expense $17,800 CR Supplies $17,800

Prepaid rent: The entire year's rent of $22,500 was paid on August 1, and the rental agreement started on that day.

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Financial challenges in musical theatre make it a risky business, leading to potential issues such as high production costs, low ticket sales, limited funding, and the inability to recoup investments.

Musical theatre faces specific challenges when financial issues come into play, making it a risky business in terms of finances. One of the main challenges is the high production costs associated with creating a musical.

The expenses include hiring talented performers, musicians, and technical staff, designing intricate sets and costumes, securing rehearsal spaces, and marketing the production. These costs can be substantial and pose a significant financial risk, especially if the production fails to attract enough audiences to cover the expenses.

Another challenge is the dependence on ticket sales for revenue generation. The success of a musical relies heavily on ticket sales, and if a production fails to generate sufficient audience interest, it may result in low ticket sales and financial losses.

Factors such as competition from other productions, changing audience preferences, and economic downturns can all impact ticket sales, making it a volatile aspect of the business.

Musical theatre also faces challenges in securing adequate funding. Securing investment or obtaining grants and sponsorships can be competitive, and without sufficient financial backing, the production quality and marketing efforts may suffer, further impacting ticket sales and revenue generation.

If something financially unfavorable happens in musical theatre, it can lead to various challenges. These may include the inability to recoup investments, resulting in financial losses for investors and stakeholders.

It could also lead to difficulties in paying the production team, performers, and staff, potentially affecting the sustainability of the production and the overall morale of the team.

In summary, the financial challenges in musical theatre, such as high production costs, low ticket sales, limited funding sources, and the inability to recoup investments, contribute to its risky nature and the potential consequences that can arise when financial issues come into play.

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1. The operational improvements need to be currently taken to improve competitiveness are: improvements in technology and customer service. 2. Yes, it would be possible to abolish traditional check-in while maintaining only online check-in. 3. The benefits of online check-in in regard to logistics is efficiency and accuracy.

The commercial airline that I have chosen is Southwest Airlines. Southwest Airlines is known for its low-cost flights that aim to make air travel accessible to as many people as possible. Southwest Airlines is one of the most successful airlines in the world, thanks to its operational excellence and strong customer service. The company has developed a strong reputation for punctuality, reliability, and safety. It has a fleet of Boeing 737s that fly to over 100 destinations across the United States.

1. To improve competitiveness, Southwest Airlines needs to take some operational improvements that are as follows:

2. Yes, it would be possible to abolish traditional check-in while maintaining only online check-in. The operational differences between a mixed check-in operation and an exclusive online check-in are as follows:

3. Online check-in offers several benefits in terms of logistics, such as:

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1) Taxable income = $80,000 (2) Income Taxes Payable:    Cr. $32,000   (Total tax expense for 2019) (3) Income Taxes Payable:    Cr. $35,000   (Total tax expense for 2020)

Taxable income for 2019 can be calculated by adjusting the pretax financial income for the given information.

Taxable income = Pretax financial income - Excess tax depreciation + Deferred subscription income

Taxable income = $160,000 - $80,000 + $0 (since the deferred subscription income will be earned in 2020)

Taxable income = $80,000

The journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2019 would be:

Income Tax Expense:      Dr. $16,000   (Taxable income of $80,000 x Tax rate of 20%)

Deferred Income Taxes:  Dr. $16,000   (The reversal of excess tax depreciation over the next 4 years)

Income Taxes Payable:    Cr. $32,000   (Total tax expense for 2019)

The journal entry to record income tax expense, deferred income taxes, and income taxes payable for 2020, assuming taxable income of $255,000 would be:

Income Tax Expense:      Dr. $51,000   (Taxable income of $255,000 x Tax rate of 20%)

Deferred Income Taxes:  Cr. $16,000   (The remaining reversal of excess tax depreciation over the next 3 years)

Income Taxes Payable:    Cr. $35,000   (Total tax expense for 2020)

In both cases, income tax expense is recorded based on the applicable tax rate, deferred income taxes reflect the reversal of temporary differences, and income taxes payable represents the amount of taxes owed for the respective year.

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