Question 1
I need help on finding my errors within the project Excell workbook. When I go online to submit an attempt,I am scoring 84 out of 100 points. So several of my answers are wrong.I will past the multiple choice answer file below. Question 1 [Q #1 ] Net Present Value for "A" is (using a 15% discount rate) : Answer -$357 $357 $411 -$4,110 $839 $556 4 points Question 2 [Q #3 ] Internal Rate of Return for "A" is Answer 23.47% -19.2% -5.9% 25.44 15.22% 4 points Question 3 [Q #2 ] Net Present Value for "B" is (using a 12% discount rate): Answer $396 -$354 -$462 $188 $3,960 -$39,500 4 points Question 4 [Q #4 ] Internal Rate of Return for "B" is Answer 15.22% -15.22% -23.4 23.4%. 4 points Question 5 [Q # 7] Given a borrower has $385,000 per year to pay on a loan and given the lenders debt coverage ratio of 1.3, what is the amount the lender will allow the borrow to allocate toward a loan? (per year) Answer $385,000 $536,000 $22,333 $296,154 4 points Question 6 [Q # 6] What is the after tax, after CapEx cash flow able to service a loan? Answer $506,670 $609,344 $296,670 -$184,960 4 points Question 7 [Q # 5 ] Net Present Value of the after tax cash flows on the pro forma is Answer -$1,520,311 -$1,648,334 -1,420,978 1,462,802 $1,520,311 4 points Question 8 [Q # 8] The total amount of debt that can be serviced if $100,000 is paid each period. (Restated: Given PMT = $100k, i = 10%, n = 15, what is the loan amount (using annual compounding)) Answer $2,375,250 $760,607 $76,923 $1,257,750 $1,500,000 3 points Question 9 [Q #9 ] Given the data on worksheet "Q9 - 13", What is the WACC of company "XYZ"? Answer 12.18% 11.19% 10.4 12.0% 4 points Question 10 [Q # 10] Calculate CAPM based on "XYZ" common equity based on the data provided. Answer 11.4 % 17.5% 13% 12.04% 4 points Question 11 [Q # 12] What is the payback for project "M". (If you like, you can use a 20% discount rate). Answer about $734k $5,803 (Present value) 6 years 16% 4 points Question 12 {Q # 13] Comparing the net income yield to a CD or risk free rate of 6%, does project "M" beat the risk free rate? Compare year one if you consider the Net Income versus the Price paid for project "M". Answer Yes No 6% Trick question! 4 points Question 13 [Q # 11] What is the appropriate discount rate to evaluate this opportunity (of those provided here)? Answer Cost of marginal debt the average return for the stock market (knowing XYZ is a public company). Beta of XYZ times the stock market average. Since the risk of the project is not given, it will be assumed it is riskier that a diversified portfolio; therefore, the discount rate is greater than 17.5% 4 points Question 14 [Q # 15 ] Ranking the projects (highest to lowest) according to IRR Answer N, O, P, Q Q, P, N, O P, N, Q, O O, P, N, Q P, N, O, Q 4 points Question 15 [ Q #16 ] Ranking projects (earliest to latest) using the payback method Answer Q, P, O, N Q, O, P, N O, N, Q, P P, N, Q, O 4 points Question 16 [Q #14 ] Ranking the projects (highest to lowest) according to NPV Answer N, O, P, Q O, P, Q, N P, O, N, Q P, N, Q, O 4 points Question 17 [Q #19 ] What is the pro forma revenue calculated for year 5? Answer $896,580 $210,311 $473,508 $143,644 $2,406,820 4 points Question 18 [Q # 25 ] What is the IRR of this acquisition? Answer 18.2% 15% Cannot be determined 8% 4 points Question 19 [Q # 24 ] Using the given discount rate, what is the NPV of the acquisition? (Use your equity investment (your cash out of pocket) and the cash flows from the opportunity) Answer $1,690,126 $2,154,294 $6,482 $714,213 4 points Question 20 [Q #17] What is the purchase Price of the acquisition? Answer $30,000,000 $11,100,000 $2,835,000 $6,000,000 4 points Question 21 [Q #18 ] What is the Goodwill Amount of the Purchase Price? Answer $88,750 $1,775,000 $1,060,000 -$1,060,000 Does not exist in this problem. 4 points Question 22 [Q # 22 ] What is the net cash flow for year 2? (after debt service and CapEx) Answer $131,179 $420,575 -$1,991 $64,512 $861,840 4 points Question 23 [Q #23 ] Without considering any principal payments or capital expenditures, what is the cash flow for the seller in the year of the sale? Answer $64,512 $364,000 $187,000 -$2,457 Cannot determine from the information; but seller was not profitable and that is why he is selling. 4 points Question 24 [Q # 21] What is the net income for year 1? Answer $117,592 $330,217 -$1,991 $64,675 4 points Question 25 [Q #20 ] What is the principal portion of your debt payment in year 8? Answer $330,750 $212,625 $0 $512,750 4 points Question 26 [Q # 26 ] Considering the "math answer only", do we make the acquisition? Answer no maybe yes Bottom of Form,Did you receive my previous reply?
Question 3
16-47 (Selecting the Proper Audit Opinion and Report Modification) Required Audit situations 1 through 8 present various independent factual situations an auditor might encounter in conducting an audit. List A represents the types of opinions the auditor ordinarily would issue, and List B represents the report modifications (if any) that would be necessary. For each situation, select one response from List A and one from List B. Select, as the best answer for each item, the action the auditor normally would take. Items from either list may be selected once, more than once, or not at all. Assume the following: ? The auditor is independent. ? The auditor previously expressed an unqualified opinion on the prior-year financial statements. ? Only single-year (not comparative) statements are presented for the current year. ? The conditions for an unqualified opinion exist unless contradicted in the factual situations. ? The conditions stated in the factual situations are material. ? No report modifications are to be made except in response to the factual situation. Audit Situations: 1. The financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows in conformity with GAAP. 2. In auditing the Long-Term Investments account, an auditor is unable to obtain audited financial statements for an investee located in a foreign country. The auditor concludes that sufficient competent evidential matter regarding this investment cannot be obtained but is not significant enough to disclaim an opinion. 3. Due to recurring operating losses and working capital deficiencies, an auditor has substantial doubt about an entity's ability to continue as a going concern for a reasonable period of time. However, the financial statement disclosures concerning these matters are adequate. 4. The principal auditor decides to refer to the work of another auditor, who audited a wholly owned subsidiary of the entity and issued an unqualified opinion. 5. An entity issues financial statements that present financial position and results of operations but omits the related statement of cash flows.Management discloses in the notes to the financial statements that it does not believe the statement of cash flows to be a useful statement. 6. An entity changes its depreciation method for production equipment from the straight-line to a units-of-production method based on hours of utilization. The auditor concurs with the change, although it has a material effect on the comparability of the entity's financial statements. 7. An entity is a defendant in a lawsuit alleging infringement of certain patent rights. However, management cannot reasonably estimate the ultimate outcome of the litigation.The auditor believes that there is a reasonable possibility of a significant material loss, but the lawsuit is adequately disclosed in the notes to the financial statements. 8. An entity discloses certain lease obligations in the notes to the financial statements. The auditor believes that the failure to capitalize these leases is a departure from GAAP. List A-Types of Opinions a. A qualified opinion b. An unqualified opinion c. An adverse opinion d. A disclaimer of opinion e. Either a qualified opinion or an adverse opinion f. Either a disclaimer of opinion or a qualified opinion g. Either an adverse opinion or a disclaimer of opinion List B-Report Modifications h. Describe the circumstances in an explanatory paragraph preceding the opinion paragraph without modifying the three standard paragraphs. i. Describe the circumstances in an explanatory paragraph following the opinion paragraph without modifying the three standard paragraphs. j. Describe the circumstances in an explanatory paragraph preceding the opinion paragraph and modifying the opinion paragraph. k. Describe the circumstances in an explanatory paragraph following the opinion paragraph and modifying the opinion paragraph. l. Describe the circumstances in an explanatory paragraph preceding the opinion paragraph and modifying the scope and opinion paragraphs. m. Describe the circumstances in an explanatory paragraph following the opinion paragraph and modifying the scope and opinion paragraphs. n. Describe the circumstances within the scope paragraph without adding an explanatory paragraph. o. Describe the circumstances within the opinion paragraph without adding an explanatory paragraph. p. Describe the circumstances within the scope and opinion paragraphs without adding an explanatory paragraph. q. Describe the circumstances in the introductory paragraph without adding an explanatory paragraph, and modify the wording of the scope and opinion paragraphs. r. Issue the standard auditor's report without modification. *16-47 (Selecting the Proper Audit Opinion and Report Modification) Required Audit situations 1 through 8 present various independent factual situations an auditor might encounter in conducting an audit. List A represents the types of opinions the auditor ordinarily would issue, and List B represents the report modifications (if any) that would be necessary. For each situation, select one response from List A and one from List B. Select, as the best answer for each item, the action the auditor normally would take. Items from either list may be selected once, more than once, or not at all. Assume the following: • The auditor is independent. • The auditor previously expressed an unqualified opinion on the prior-year financial statements. • Only single-year (not comparative) statements are presented for the current year. • The conditions for an unqualified opinion exist unless contradicted in the factual situations. • The conditions stated in the factual situations are material. • No report modifications are to be made except in response to the factual situation. Audit Situations: 1. The financial statements present fairly, in all material respects, the financial position, results of operations, and cash flows in conformity with GAAP. 2. In auditing the Long-Term Investments account, an auditor is unable to obtain audited financial statements for an investee located in a foreign country. The auditor concludes that sufficient competent evidential matter regarding this investment cannot be obtained but is not significant enough to disclaim an opinion. 3. Due to recurring operating losses and working capital deficiencies, an auditor has substantial doubt about an entity’s ability to continue as a going concern for a reasonable period of time. However, the financial statement disclosures concerning these matters are adequate. 4. The principal auditor decides to refer to the work of another auditor, who audited a wholly owned subsidiary of the entity and issued an unqualified opinion. 5. An entity issues financial statements that present financial position and results of operations but omits the related statement of cash flows.Management discloses in the notes to the financial statements that it does not believe the statement of cash flows to be a useful statement. 6. An entity changes its depreciation method for production equipment from the straight-line to a units-of-production method based on hours of utilization. The auditor concurs with the change, although it has a material effect on the comparability of the entity’s financial statements. 7. An entity is a defendant in a lawsuit alleging infringement of certain patent rights. However, management cannot reasonably estimate the ultimate outcome of the litigation.The auditor believes that there is a reasonable possibility of a significant material loss, but the lawsuit is adequately disclosed in the notes to the financial statements. 8. An entity discloses certain lease obligations in the notes to the financial statements. The auditor believes that the failure to capitalize these leases is a departure from GAAP. List A—Types of Opinions a. A qualified opinion b. An unqualified opinion c. An adverse opinion d. A disclaimer of opinion e. Either a qualified opinion or an adverse opinion f. Either a disclaimer of opinion or a qualified opinion g. Either an adverse opinion or a disclaimer of opinion List B—Report Modifications h. Describe the circumstances in an explanatory paragraph preceding the opinion paragraph without modifying the three standard paragraphs. i. Describe the circumstances in an explanatory paragraph following the opinion paragraph without modifying the three standard paragraphs. j. Describe the circumstances in an explanatory paragraph preceding the opinion paragraph and modifying the opinion paragraph. k. Describe the circumstances in an explanatory paragraph following the opinion paragraph and modifying the opinion paragraph. l. Describe the circumstances in an explanatory paragraph preceding the opinion paragraph and modifying the scope and opinion paragraphs. m. Describe the circumstances in an explanatory paragraph following the opinion paragraph and modifying the scope and opinion paragraphs. n. Describe the circumstances within the scope paragraph without adding an explanatory paragraph. o. Describe the circumstances within the opinion paragraph without adding an explanatory paragraph. p. Describe the circumstances within the scope and opinion paragraphs without adding an explanatory paragraph. q. Describe the circumstances in the introductory paragraph without adding an explanatory paragraph, and modify the wording of the scope and opinion paragraphs. r. Issue the standard auditor’s report without modification.
Question 4
1. Proposals O and K each cost $500,000, have 6-year lives, and have expected total cash flows of $720,000. Proposal O is expected to provide equal annual net cash flows of $120,000, while the net cash flows for Proposal K are as follows: Year 1 $250,000 Year 2 200,000 Year 3 100,000 Year 4 90,000 Year 5 60,000 Year 6 20,000 $720,000 Determine the cash payback period for each proposal. (10 pts) 2. Carillion Company is considering the disposal of equipment that is no longer needed for operations. The equipment originally cost $600,000 and accumulated depreciation to date totals $460,000. An offer has been received to lease the machine for its remaining useful life for a total of $290,000, after which the equipment will have no salvage value. The repair, insurance and property tax expenses during the period of the lease are estimated at $75,800. Alternatively, the equipment can be sold through a broker for $230,000 less a 10% commission. Prepare a differential analysis report, dated November 15 of the current year, on whether the equipment should be leased or sold. (10 pts) 3. Cell Plus Inc. uses the total cost concept of applying the cost-plus approach to product pricing. The cost of producing and selling 5,000 units of cellular phones are as follows: (20 pts) Variable Costs: Fixed Costs: Direct Materials $125 per unit Factory Overhead $215,000 Direct Labor 45 Selling and admin exp. 75,000 Factory Overhead 40 Selling & admin exp 30 Total $240 per unit A. Cell Plus uses the product cost concept of applying the cost-plus approach to product pricing. a. Determine the total manufacturing costs and the cost amount per unit for the production and sale of 5,000 units of cellular phones. b. Determine the product cost markup percentage (rounded to two decimal places) for cellular phones. c. Determine the selling price of cellular phones. Round to the nearest dollar. B. Cell Plus uses the variable cost concept of applying the cost-plus approach to product pricing. a. Determine the variable costs and the cost amount per unit for the production and sale of 5,000 units of cellular phones. b. Determine the variable cost markup percentage (rounded to two decimal places) for cellular phones. c. Determine the selling price of cellular phones. Round to the nearest dollar. 7. Spruce Dairy Company manufactures three products ? whole milk, skim milk, and cream ? in two production departments, Blending & Packing. The factory overhead for Spruce Dairy is $270,000. The three products consume both machine hours and direct labor hours in the two production departments as follows: (30 pts) Direct Labor Hours Machine Hours Blending Department Whole Milk 270 790 Skim Milk 290 720 Cream 240 290 800 1800 Packing Department Whole Milk 330 460 Skim Milk 520 560 Cream 150 180 1,000 1,200 1,800 3,000 a. Determine the single plant-wide factory overhead rate, using each of the following allocation bases: (a) direct labor hours and (b) machine hours. b. Determine the product factory overhead costs, using (a) the direct labor hours plant-wide factory overhead rate and (b) the machine hour plant-wide factory overhead rate. c. Determine the multiple production department factory overhead rates, using machine hours for the Blending Department and direct labor hours for the Packing Department.
Question 5
Once you have developed your product/service, you then need to determine how to make it available to the end user. Using your textbook and the articles from the databases in the AIU library, develop a distribution system for the product/service you chose in Week 1. Click here for the research requirements and guide for this assignment. Include the following: 1. An overview of distribution channels (see chapter 10). * Channel Levels - direct versus indirect distribution * Channel Organizations - conventional, vertical, horizontal, and multichannel marketing systems 2. Analyze your target market's needs. Explain what you know about your target market and what they want from a channel of distribution. 3. Determine which channel members you will use and explain why. * Indirect - retailer, wholesaler, dealer, manufacturer's rep, etc. * Direct - catalog, telephone, sales force, etc. 4. Discuss how many channel members you will use and explain why (intensive distribution, exclusive distribution or selective distribution). 5. Recommend a channel organization and explain why (conventional, vertical, horizontal or multichannel marketing system). Your paper MUST include a reference list. All research should be cited in the body of the paper. In-text citations and corresponding references should be included in your paper. For more information on APA, please visit the APA Lab. The paper should be written in third person; this means pronouns like "I", "we", and "you" are not appropriate. The use of direct quotes is strongly discouraged. Your assignment should contain a cover page, an abstract page, and a reference page in addition to the body. The body of the paper should be 3 pages in length starting with a brief one paragraph introduction and ending with a short conclusion. The entire submission will be 6 pages in length.,Hello, Do you need the assignment that was done prior to this one? Thank you,Thank you,In week one the product was; Amway global (laundry detergent).,Hello, the abstract is missing from this paper. Do you by any chance have it? Thank you
