Week 5 – Financing Strategy Problem Problem 1 – Chapter 20 Firm A has $10‚000 in assets entirely financed with equity. Firm B also has $10‚000 in assets‚ but these assets are financed by $5‚000 in debt (with a 10 percent rate of interest) and $5‚000 in equity. Both firms sell 10‚000 units of output at $2.50 per unit. The variable costs of production are $1‚ and fixed production costs are $12‚000. (To ease the calculation‚ assume no income tax.) A. What if the operating income (EBIT)
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5 J o h n D e e r e an d C o m p l e x Parts‚ Inc.1 On Friday‚ November 22‚ 2006‚ Blake Roberts‚ Hayley Marie‚ Stan Eakins and John Pearson‚ members of one of John Deere’s supplier evaluation teams‚ were discussing the performance of Complex Parts. Complex Parts had provided questionable service to John Deere’s Moline unit over the past year‚ and they were wondering if this merited giving their business to a different supplier. They needed to recommend a course of action to their project manager
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Problem #1 A. How many newspapers should Sheen stock? Use the simulation in the spreadsheet “Hamptonshire Express: Problem #1” to identify the optimal stocking quantity. What is the profit at this stocking quantity? Optimal Stocking Quantity: 584 Expected profit at Optimal Stocking Quantity: $331.43 B. Verify that the value derived in part (a) is consistent with the optimal stocking quantity in the Newsvendor model = mean = 500 = Standard Deviation = 100 = Overage Cost = $0
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Monitoring Earnings Management from Financial Statements ‘The Characteristics of firms subject to adverse rulings by the Financial Reporting Review Panel’‚ Peasnell‚ Pope and Young‚ 2001‚ Accounting and Business Research‚ Vol 31‚ pp291-311. Introduction The agency responsible for enforcing accounting standards in the UK is the Financial Reporting Review Panel (FRRP). It is responsible for reviewing departures from the accounting requirements of the Companies Act and forcing
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Part 1 dilutions participated as a trail run to gather around the “full enzyme” that was used for the other parts of the experiment. Part 2 readings were in the time span of 10 minutes and the final results show a spontaneous increase in the first minutes of the absorbance readings. They then showed a steady reading towards the end of timing. The amount of enzyme is decreasing as the dilution occurred. The activity it catalyzes measures the amount of enzyme present in the reaction (Introduction to
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Building an Auqaponic Farm: Construction & Operation PROJ592 – Project Cost & Schedule Control Course Project - Part 1 Executive Summary With a minimal initial investment of $100‚000 and a single acre of level ground‚ a self-sustaining aquaponics based growing operation can be established and become profitably within 6 months. Through continuous year round vegetable and fish production‚ this operation can conservatively generate $250‚000 in annual revenue starting in the very first
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Course Project Part 1 “Consulting Service” PROJ592 Project Cost & Schedule Control Table of Contents Executive Summary/Proposal 3 Project Description 4 WBS (Work Breakdown Structure) 5 Capital Cost Estimates 6 Advanced Cost Estimating Technique 7 Cost Assumptions 9 Financial Analysis 10 Schedule 11 Executive Summary/Proposal The Consulting Service Company will lean on its relationships that have been built in the project management industry to take full advantage of
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Problem #1‚ Chapter 20 1. Firm A has $10‚000 in assets entirely financed with equity. Firm B also has $10‚000 in assets‚ but these assets are financed by $5‚000 in debt (with a 10 percent rate of interest) and $5‚000 in equity. Both firms sell 10‚000 units of output at $2.50 per unit. The variable costs of production are $1‚ and fixed production costs are $12‚000. (To ease the calculation‚ assume no income tax.) a. What is the operating income (EBIT) for both firms? Units sold*price per unit
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CHAPTER 1: EXERCISE 1-5 Asset Cash Equipment Supplies Accounts receivable Liability Accounts payable Notes payable Salaries and wages payable Stockholders’ Equity Common stock EXERCISE 1-6 1. 2. 3. 4. 5. 6. 7. 8. 9. Increase in assets and increase in stockholders’ equity. Decrease in assets and decrease in stockholders’ equity. Increase in assets and increase in liabilities. Increase in assets and increase in stockholders’ equity. Decrease in assets and decrease in stockholders’
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items: 1. Prepare an “as if” income statement for 2008 assuming (1) no change in accounting policy and (2) sales of 10‚000 mower units each quarter at a price of $2‚000 per unit with Selling‚ General and Administrative costs the same as they were in 2008. 2. How would this change if the unit sales pattern was 10‚000 units‚ 5‚000 units‚ 20‚000 units‚ and 5‚000 units in the four quarters? Why? 3. Assume 10‚000 units are sold each quarter in 2008. If the company adopted FIFO on January 1‚ 2008
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