Question 1
4-4 THREE-STEP PROCESS FOR ESTIMATING A FIRM?S WACC, Compano inc. was founded in 1986 in Baytown, Texas. The firm provides oil-field services to the Texas Gulf Coast region, including the leasing of drilling barges. Its balance sheet for year-end 2006 describes a firm with 830,541,000 in assets (book values) and invested capital of more than 1.334 billion (based on market values).,ATTACHED QUESTIONS,ok,ok thanks,ok,hello, i'm home work is due in 28 mins i'm still waiting for your reply, thanks,there is only one problem that has A, B, C, AND D PART, HOW ABOUT OTHER PROBLEM THAT HAS 2 PARTS A AND B, THE ONE STARTS WITH IN 2006, ANHEUSER BUSCH COMPANIES INC,I'M TALKING ABOUT 5-5 PROBLEM, 5-5 Divisional WACC in 2006, Anheuser-Busch Companies Inc. (BUD), engaged in the production and distribution of beer worldwide, operating through four business segments: Domestic Beer, International Beer, Pakaging, and Entertainment. The Domestic Beer segment offers beer under Budweiser, Michelob, Busch, and Natural brands in the United States, in addition to a number of specialty beers including non-alcohol brews, malt liquors, and specialty malt beverages, as well as energy drinks. The International Beer segment markets and sells Budweiser and other brands outside the United States and operates breweries in the United Kingdom and China. In addition, the International beer segment negotiates and administers license and contract brewing agreements with various customers, buys and sells used aluminum beverage containers, and recycles aluminum containers. Finally, the Entertainment segment owns and operates theme parks. In 2005, Anheuser-Busch reported the following segment revenues and net income: ($ millions Domestic Beer Inter Beer Packaging Entertai 2005 Gross sales 10,121.00 864.00 1,831.50 904.40 Income before Income taxes 2,293.40 70,10 120.40 215.10 Equity income 0 147.10 0 0 Net income 1,421.90 433.70 74.60 133.40 Assume that you have just been charged with the responsibility for evaluating the divisional cost of capital for each of the business segments. A. Outline the general approach you would take in evaluating the cost of capital for each of the business segments. B. Should the fact that $1,156 million of the Packaging segment?s revenues come from internal sales to other Busch segments affect your analysis? If so, how?,HELLO , YOU ONLY ANSWER HALF OF THE HOME WORK IM STILL WAITING FOR THE OTHER HALF PLEASE,I JUST TALK TO MY PROFESSOR SHE SAID I'M CAN TURN MY HOME WORK BY TOMORROW SO PLEASE KINDLY I NEED OTHER HALF OF THE HOME WORK,hello 'm still waiting for your reply, come on now i paid for both question and getting back only one, at least answer me if you want to do it or not, that's rip off man,hello 'm still waiting for your reply, come on now i paid for both question and getting back only one, at least answer me if you want to do it or not, that's rip off man,hello,,hello, is anyone there? can you tell me when i'm gonna receive my assignment please, my assignment is 2 days late already and i'm gonna receive half of the points for this assignment, can you tell me when i'm gonna receive my assignment pleaseeeeeeeeeeeeee,
Question 3
Using the financial statements from the Major Medical Center Case Study at the end of chapter 14, analyze the following: ? Review the auditor?s opinion letter and analyze any concerns. ? Review the financial statements. Analyze any unusual items and examine the balance sheet, operating statement, and cash flow statement. ? Review the notes and analyze any causes for concern. ? Calculate the following ratios using Excel: common size, current, quick, days of cash on hand, receivables turnover, average collection period, fixed asset turnover, total asset turnover, debt, debt to equity, times-interest-earned, operating margin, total margin, ROA, and RONA. ? Evaluate Major Medical Center?s financial status.sheet, operating statement, and cash flow statement? Submit three- to four-page Word document (not including the title and reference pages) and your Excel worksheet. Your paper should be formatted according to APA style Board of TrusteesMajor Medical Center ? We have audited the accompanying statements of financial position of Major Medical Center (the ?Medical Center?) as of December 31, 2012 and 2011, and the related statements of operations, changes in net assets, and cash flows for the years then ended. These financial statements are the responsibility of the Medical Center?s management. Our responsibility is to express an opinion on these financial statements based on our audits. ? We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. ? In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Major Medical Center at December 31, 2012 and 2011, and the results of its operations, changes in net assets, and cash flows for the years then ended, in conformity with generally accepted accounting principles. ? April 30, 2013 Major Medical Center Statements of Financial Position 31-Dec 2012 2011 (In Thousands) Assets Current Assets Cash and cash equivalents $8,065 $9,005 Assets limited as to use?compensating balance for letters of credit 1,000 Short-term investments 1,387 1,283 Receivables for patient care, net of allowance for doubtful accounts (2012?$27,232; 2011?$31,934) 49,719 47,614 Pledges receivable 1,814 2,205 Inventories, at average cost 1,690 2,326 Due from third-party reimbursement programs 6,539 Receivables for government grants ? 467 Other 2,234 3,415 Total Current Assets 72,448 66,315 Assets limited as to use: Sinking fund 14,487 13,410 Compensating balance for standby letters of credit 923 15,410 13,410 Long-term investments 1,132 618 Due from affiliates, net 3,417 3,543 Pledges receivable, net of allowance for uncollectible pledges (2012?$2,218; 2011?$4,453) 1,889 1,468 Property, plant, and equipment net 98,555 89,777 Deferred financing costs 1,323 ? Other 2,065 1,043 $196,239 $176,174 Liabilities and Net Assets Current Liabilities Current portion of long-term debt $11,608 $11,488 Accounts payable and accrued expenses 29,489 25,311 Accrued salaries and related liabilities 25,572 20,096 Due to third-party reimbursement programs, net ? 1,874 Advances on government grants 1,587 ? Total Current Liabilities 68,256 58,769 Long-term debt, less current portion 55,539 47,709 Accrued post-retirement benefits 6,023 6,017 Other noncurrent liabilities 16,445 17,014 Total Liabilities 146,263 129,509 Commitments and contingencies Net Assets Unrestricted 40,582 38,014 Temporarily restricted 8,262 7,519 Permanently restricted 1,132 1,132 Total Net Assets 49,976 46,665 $196,239 $176,174 See accompanying notes. Major Medical Center Statements of Operations Year ended December 31 2012 2011 (In Thousands) Operating Revenue Net patient service revenue $402,921 $369,512 Other revenue 13,356 13,850 Net assets released from restrictions 4,708 2,863 Total Operating Revenue 420,985 386,225 Operating Expenses Salaries and wages 207,141 196,453 Employee benefits 44,456 44,860 Supplies and expenses 137,505 117,838 Depreciation and amortization 22,541 18,856 Research 2,457 2,214 Interest 4,456 5,253 Total Operating Expenses 418,556 385,474 Operating Income 2,429 751 Net assets released from restrictions used for capital acquisitions 139 146 Increase in unrestricted net assets $ 2,568 $ 897 Major Medical Center Statements of Changes in Net Assets Net Assets Unrestricted Temporarily Restricted Permanently Restricted (In Thousands) Net Assets at December 31, 2010 $37,117 $3,023 $1,132 Increase in unrestricted net assets 897 ? ? Restricted contributions, grants, and other receipts ? 7,253 ? Investment income restricted for specific purposes ? 252 ? Net assets released from restrictions for: Operating expenses ? -2,863 ? Capital asset acquisitions ? (146) ? Change in net assets 897 4,496 ? Net Assets at December 31, 2011 38,014 7,519 1,132 Increase in unrestricted net assets 2,568 ? ? Restricted contributions, grants, and other receipts ? 5,421 ? Investment income restricted for specific purposes ? 169 ? Net assets released from restrictions for: Operating expenses ? -4,708 ? Capital asset acquisitions ? (139) ? Change in net assets 2,568 743 ? Net Assets on December 31, 2012 $40,582 $ 8,262 $1,132 ajor Medical Center Statements of Cash Flows Year Ended December 31 2012 2011 (In Thousands) Operating Activities Operating income $2,429 $751 Change in temporarily restricted net assets 743 4,496 3,172 5,247 Adjustments to reconcile change in net assets to cash provided by operations: Depreciation and amortization 22,541 18,856 Investment income earned on assets limited as to use -774 -698 Changes in operating assets and liabilities: (Increase) decrease in receivables for patient care -2,105 7,589 (Increase) decrease in due from third-party reimbursement programs -8,413 4,500 Increase in accounts payable and accrued expenses and accrued salaries and related liabilities 9,654 1,412 Net effect of increases and decreases in other assets and liabilities 2,286 (8,707) Cash provided by operations 26,361 28,199 Investing Activities Acquisitions of property, plant, and equipment, net -10,043 -12,998 Less amounts provided by restricted funds 139 146 Increase in investments (618) (70) Cash used in investing activities (10,522) (12,922) Financing Activities Net payment from (to) affiliates 126 -1,773 Increase in deferred financing costs -1,323 Repayments of long-term debt -13,326 -9,510 Deposits into sinking fund, as required by mortgage loan agreement -303 Increase in compensating balances for standby letters of credit -1,923 (Increase) decrease in pledges receivable (30) (3,190) Cash used in financing activities -16,779 -14,473 Net (decrease) increase in cash and cash equivalents -940 804 Cash and cash equivalents at beginning of year 9,005 8,201 Cash and cash equivalents at end of year $ 8,065 $ 9,005 See accompanying notes.
Question 4
MAT540 Week 9 Homework Chapter 5 6. The Livewright Medical Supplies Company has a total of 12 salespeople it wants to assign to three regions ? the South, the East, and the Midwest. A salesperson in the South earns $600 in profit per month of the company, a salesperson in the East earns $540, and a salesperson in the Midwest earns $375. The southern region can have a maximum assignment of 5 salespeople. The company has a total of $750 per day available for expenses for all 12 salespeople. A salesperson in the South has average expenses of $80 per day, a salesperson in the East has average expenses of $70 per day, and a salesperson in the Midwest has average daily expenses of $50. The company wants to determine the number of salespeople to assign to each region to maximize profit. a. Formulate an integer programming model for this problem b. Solve this model by using the computer. 10. Solve the following mixed integer linear programming model by using the computer: Maximize Z = 5 x1 + 6 x2 + 4 x3 Subject to 5 x1 + 3 x2 + 6 x3 ? 20 x1 + 3 x2 ? 12 x1, x3 ? 0 x2 ? 0 and integer 14. The Texas Consolidated Electronics Company is contemplating a research and development program encompassing eight research projects. The company is constrained from embarking on all projects by the number of available management scientists (40) and the budget available for R&D projects ($300,000). Further, if project 2 is selected, project 5 must also be selected (but not vice versa). Following are the resource requirements and the estimated profit for each project. Project Expense ($1,000s) Management Scientists required Estimated Profit (1,000,000s) 1 $ 60 7 $0.36 2 110 9 0.82 3 53 8 0.29 4 47 4 0.16 5 92 7 0.56 6 85 6 0.61 7 73 8 0.48 8 65 5 0.41 Formulate the integer programming model for this problem and solve it using the computer. 20. During the war with Iraq in 1991, the Terraco Motor Company produced a lightweight, all-terrain vehicle code-named ?J99-Terra? for the military. The company is now planning to sell the Terra to the public. It has five plants that manufacture the vehicle and four regional distribution centers. The company is unsure of public demand for the Terra, so it is considering reducing its fixed operating costs by closing one or more plants, even though it would incur an increase in transportation costs. The relevant costs for the problem are provided in the following table. The transportation costs are per thousand vehicles shipped; for example, the cost of shipping 1,000 vehicles from plant 1 to warehouse C is $32,000. From Plant Transportation Costs ($1000s) to Warehouse Annual Production Capacity Annual Fixed Operating Costs A B C D 1 $56 $21 $32 $65 12,000 $2,100,000 2 18 46 7 35 18,000 850,000 3 12 71 41 52 14,000 1,800,000 4 30 24 61 28 10,000 1,100,000 5 45 50 26 31 16,000 900,000 Annual Demand 6,000 14,000 8,000 10,000 Formulate and solve an integer programming model for this problem to assist the company in determining which plants should remain open and which should be closed and the number of vehicles that should be shipped from each plan to each warehouse to minimize total cost.
