Question 1
Suppose you are an investor considering buying Foot Locker, Inc., common stock. The following questions are important. Show amounts in millions and round to the nearest $1 million. You can find the information you need either by going to the Investor Relations web page www.footlocker-inc.com/investors.cfm?page=investor-relations or by going to www.sec.gov and downloading the company?s 10-k for the relevant year(s). 1 Explain whether Foot Locker, Inc. had more sales revenue or collected more cash from customers during 2007. Why is accounts receivable missing from its balance sheet? 2 Investors are vitally interested in a company?s sales and profits, and its trends of sales and profits over time. Consider Foot Locker?s sales and net income (net loss) during the period from 2005 through 2007. Compute the percentage increase or decrease in net sales and also in net income (net loss) from 2005 to 2007. Which item grew faster during this two-year period, net sales or net income (net loss)? Can you offer a possible explanation for these changes? During 2007, Foot Locker, Inc. had numerous accruals and deferrals. As a new member of Foot Locker, Inc.?s accounting staff, it is your job to explain the effects of accruals and deferrals on net income for 2007. The accrual and deferral data follow, along with questions that Foot Locker, Inc.?s stockholders have raised (all amounts in millions): 3 Examine Footnote 8 to Foot Locker?s consolidated financial statements (Other Current Assets). Notice that included in this total is ?net receivables.? Ending net receivables for 2006 (beginning balance of 2007) were $59 million. Ending net receivables for 2007 were $50 million. Which of these amounts did Foot Locker, Inc. earn in 2006? Which amount is included in Foot Locker, Inc.?s 2007 net income? 2 4 Examine Footnote 9 (Property and Equipment, Net). Notice that accumulated depreciation stood at $870 million and the end of 2006 and at $903 million at year-end 2007. Assume that depreciation expense for 2007 was $100. Explain what must have happened to account for the remainder of the change in the accumulated depreciation account during 2007. 5 Focus on cash and cash equivalents. Why did cash change during 2007? The statement of cash flows holds the answer to this question. Analyze the seven largest individual items on the statement of cash flows (not the summary subtotals such as ?net cash provided by operating activities?). For each of the seven individual items, state how Foot Locker Inc.?s action affected cash. Show amounts in millions and round to the nearest $1 million. 6 What securities are included in Foot Locker?s Short-term investments? What type of securities are they? 7 Make a T-account for Short-term investments. Record $249 as the balance in the account as of the end of 2006. Using the information in the investments section of the Consolidated Statement of Cash Flows, record the cash purchases and sales of short-term investments during 2007. Why doesn?t the ending balance equal the amount shown on the balance sheet as of the end of 2007? 8 Three important pieces of information are (a) the cost of inventory on hand, (b) the cost of sales, and (c) the cost of inventory purchases. Identify or compute each of these items for Foot Locker, Inc. at the end of its fiscal year 2007. 9 Assume that all inventory purchases were made on account, and that only inventory purchased increased Accounts Payable. Compute Foot Locker, Inc.?s cash payments for inventory during fiscal 2007. 10 How does Foot Locker, Inc. value its inventories? Which costing method does Foot Locker Inc. use? 11 Did Foot Locker, Inc.?s gross profit percentage and rate of inventory turnover improve or deteriorate in fiscal 2007 (versus fiscal 2006)? Consider the overall effect of these two ratios. Did Foot Locker, Inc. improve during fiscal 2007? How did these factors affect the net income for fiscal 2007? Foot Locker, Inc.?s inventories totaled $1,254 million at the end of fiscal 2005. Round decimals to three places. 12 Which depreciation method does Foot Locker, Inc. use? Over what useful life does Foot Locker, Inc. depreciate various types of fixed assets? 13 Were Foot Locker, Inc.?s plant assets proportionately newer or older at the end of fiscal 2007 (versus 2006)? Explain your answer. 14 The current liability section of Foot Locker, Inc.?s Consolidated Balance Sheet as of February 2, 2008 (the end of fiscal 2007) lists accrued and other liabilities totaling $268 3 million. Find the details of this total in the Notes to Consolidated Financial Statements. What are the four principal items comprising this total? 15 How would you rate Foot Locker, Inc.?s overall debt position at the end of fiscal 2007 ? risky, safe or average? Compute the ratios that enable you to answer this question. 16 As of the end of fiscal 2007, how many classes of stock does Foot Locker, Inc. have authorized? Issues? Outstanding? 17 During 2007, Foot Locker, Inc. repurchased its treasury stock. How many shares did it purchase? How much did it pay for the stock? How much per share? Compare the price it paid for these shares with the market price of the company?s stock at the end of each quarter (see footnote 26). Does it look like the company was getting a ?good deal? on the purchase of its stock? Why? 18 Did Foot Locker, Inc. issue any new shares of common stock during fiscal 2007? Briefly explain the reasons. 19 Prepare a T-account to show the beginning and ending balances, plus all the activity in Retained Earnings for fiscal 2007. 20 What indicates that Foot Locker, Inc. owns foreign subsidiaries? Identify the item that proves your point and the financial statement on which the item appears. 21 At February 2, 2008, did Foot Locker, Inc. have a cumulative net gain or a cumulative net loss from translating its foreign subsidiaries? financial statements into dollars? How can you tell? 22 What is your evaluation of the quality of Foot Locker, Inc.?s earnings? State how you formed your opinion. 23 Perform a trend analysis of Foot Locker?s net sales, gross profit, operating income and net income. Use 2005 as the base year, and compute trend figures for 2006 and 2007.,Thank you, If it's not too much to ask, could you put which charts to you got the information from? (ie. sales journal, income statement, etc.) it would be so helpful,Ok thank you
Question 2
8-11 slides with in-depth speaker notes Details: Your management team has been retained by a senior manager who is concerned about the effectiveness of his managers and their teams. He would like your team to develop a training guide on delegation. The training guide should be designed to improve the interest in and delegation skills of his managers. He also wants the training guide to include and address the planning, organizing, leading, and controlling activities. Individual Assignment * Select from planning, organizing, leading, or controlling activities (each member of the team should take a different one. If there are more than 4 team members, then more than 1 person can choose from these). Use the library, course materials, or other credible sources to research the concepts for developing teams using this type of activity, and develop 1?2 slides complete with in-depth speaker notes. * Use the library, course materials, or other credible sources to research the concepts of delegation. Use the Discussion Board area to respond to the questions below about delegation. Contribute 1 initial response and follow up at least 2 times with an in-depth response to your peers. Remember to use the library, course materials, or other credible resources to support your argument. Be sure to cite your sources using the correct standard of APA. Please add your file. Group Assignment Your team's deliverable from this project will be a detailed description of the proposed Delegation training guide, presented as a PowerPoint slideshow with in-depth speaker's notes at the bottom of each slide. Your training guide should, at a minimum, effectively address the following questions: * Suggest and summarize in-depth the planning, organizing, leading, and controlling activities as it relates to delegation for these managers (made up of the slides that you developed in your individual assignment). * Define the term delegation. (Select the best information from the individual contributions) * Why is the ability to effectively delegate important to a leader or manager? (Select the best information from the individual contributions) * Why is the ability to effectively delegate important to the company? (Select the best information from the individual contributions) * What should and should not be delegated? (Select the best information from the individual contributions) In answering these questions, your team should include practical examples from your own experience or research of both good and poor delegation scenarios. Your group's final presentation should be between 8?11 slides (with in-depth speaker notes). This should include an introduction and conclusion, APA format for in-text citations, and a separate reference slide and full title slide. The work should have a consistent look and feel and be free of grammatical errors, including misspellings and awkward or incomplete sentences.
Question 3
Start with the partial model in the file Ch24 P09 Build a Model.xls from the textbook?s Web site. Following is information for the required returns and standard deviations of returns for A, B, and C: Stock Ri ?i A 8.00% 35.11% B 12.00% 55.85% C 24.00% 92.44% The correlation coefficients for each pair are shown below in a matrix, with each cell in the matrix giving the correlation between the stock in that row and column. For example, ?AB = 0.1571 is in the row for A and the column for B. Notice that the diagonal values are equal to 1 because a variable is always perfectly correlated with itself. A B C A 1.0000 0.1571 0.1891 B 0.1571 1.0000 0.1661 C 0.1891 0.1891 1.0000 a. Suppose a portfolio has 25% invested in A, 45% in B, and 30% in C. What are the expected return and standard deviation of the portfolio? b. The partial model lists six different combinations of portfolio weights. For each combination of weights, find the required return and standard deviation. c. The partial model provides a scatter diagram showing the required returns and standard deviations already calculated. This provides a visual indicator of the feasible set. If you seek a return of 10.5%, then what is the smallest standard deviation that you must accept?
Question 4
Clarkson Inc. is a construction company specializing in custom patios. The patios are constructed on concrete, brick, fiberglass, and lumber, depending upon customer preference. On June 1, 2011, the general ledger for Clarkson Inc. contains the following data. Raw Materials Inventory$4, 200 Manufacturing Overhead Applied $32,460 Work in Process Inventory$5,540 Manufacturing Overhead Incurred $31,650 Subsidiary data for Work in Process Inventory on June 1 are as follows. Job Cost Sheets Customer Job Cost Elements Hokans Sonnenberg Kolsky Direct materials $ 600 $ 800 $ 900 Direct labor 320 540 580 Manufacturing Overhead 400 675 725 ----- ------ ------ $1,320 $2,015 $2,205 ------ ------- ------ ------ ------- ------ During June, raw materials purchased on account were $3,900, and all wages were paid. Additional overhead costs consisted of depreciation on equipment $700 and miscellaneous costs of $400 incurred on account. A summary of materials requisition slips and time tickets for June shows the following. Customer Job Materials Requisitions Slips Time Tickets Hokans $ 800 $ 450 Koss 2,000 800 Sonnenberg 500 360 Kolsky 1,300 1,600 Hokans 300 390 --------- ------- 4,900 3,600 1,500 1,200 --------- ------- General Use $ 6,400 $ 4,800 --------- ------- --------- ------- Overhead was charged to jobs at the same rate of $1.25 per dollar of direct labor cost. The patios for customers Hokans, Sonnenberg, and Kolsky were completed during June and sold for a total of $18,900. Each customer paid in full. Instructions. (a). Journalize the June transactions: (i) for purchase of raw materials, factor labor costs incurred, and manufacturing overhead costs incurred; (ii) assignment of direct materials, labor, and overhead to production; and (iii) completion of jobs and sale of goods. (b). Post the entries to Work in Process Inventory. (c). Reconcile the balance in Work in Process Inventory with the costs of unfinished jobs. (d). Prepare a cost of goods manufactured schedule for June.
Question 5
Read the Salem Manufacturing scenario below and use it to help you answer the question at the end of this document. Hedging using Foreign Currency Derivatives Scout Finch is the Chief Financial Officer [CFO] of SALEM Manufacturing, a U.S. based manufacturer of gas turbine equipment. She has just concluded negotiations for the sale of a turbine generator to Crown, a British firm for One million pounds. This single sale is quite large in relation to SALEM?s present business. SALEM has no other current foreign customers, so the currency risk of this sale is of particular concern. The sale is made in March with payment due three months later in June. Scout Finch has collected the following financial market information for the analysis of her currency exposure problem: ? Spot Exchange rate: $1.5640 per British pound. ? Three month forward rate: $1.5549 per pound ? SALEM?s cost of capital: 16% ? U.K. three month borrowing interest rate: 12.0% (or 3.0% per quarter) ? U.K. three month investment interest rate: 10.0% (or 2.5% per quarter) ? U.S. three month borrowing interest rate: 12.0% ( or 3.0% per quarter) ? U.S. three month investment interest rate: 8.0% (or 2.0% per quarter) ? June put option in the over-the-counter (bank) market for 1,000,000 British pounds; Strike price $1.55 (nearly at-the money) 1.5% premium ? June put option in the over-the counter (bank) market for 1,000,000 British pounds: Strike price $1.51 (out-of-the money) 1.0% premium ? SALEM?s foreign exchange advisory service forecasts that the spot rate in there months will be $1.56 per British pound. Like many manufacturing firms, SALEM operates on relatively narrow margins. Although Ms. Finch and SALEM would be very happy if the pound appreciated versus the dollars, concerns center on the possibility that the pound will fall. When Ms. Finch budgeted this specific contract, she determined that the minimum acceptable margin was at a sale price of $1,500,000. The budget rate, the lowest acceptable dollar per pound exchange rate, was therefore established at $1.5 per British pound. Any exchange rate below would result in Dayton actually losing money on the transaction. Four alternatives are available to Dayton to manage the exposure: 1. Remain un-hedged. 2. Hedge in the forward market. 3. Hedge in the money market. 4. Hedge in the options market. What should SALEM do? Workspace Four alternatives are available to Salem to manage the exposure: 1. Remain un-hedged. 2. Hedge in the forward market. 3. Hedge in the money market. 4. Hedge in the options market. What should Salem do? Type your answer in the box below. Be as complete as possible. The box will expand as you type.
