Question 1
Following are separate financial statements of Michael Company and Aaron Company as of December 31, 2013 (credit balances are indicated by parentheses). Michael acquired all of Aaron's outstanding voting stock on January 1, 2009, by issuing 20,000 shares of its own $1 par common stock. On the acquisition date, Michael Company;s stock actively traded at $23.50 per share. Michael Company Revenues $(610,000) Cost of Goods Sold $270,000 Amortization Expense $115,000 Dividend Income $(5,000) Net Income ($230,000) Retained Earnings 1.1.13 $(880,000) Net Income (above) $(230,000) Dividends Paid $90,000 Retained earnings 12/31/13 $(1,020,000) Cash $110,000 Receivables $280,000 Inventory $560,000 Investment in Aaron Company $470,000 Copyrights $460,000 Royalty Agreements $920,000 Total Assets $2,900,000 Liabilities $(780,000) Preferred Stock $(300,000) Common Stock $(500,000) Additional Paid-In Capital $(300,000) Retained earnings 12/31/13 $(1,020,000) Total Liabilities and Equities $(2,900,000) Aaron Company Revenues $(370,000) Cost of Goods Sold $140,000 Amortization Expense $80,000 Dividend Income $0 Net Income ($150,000) Retained Earnings 1.1.13 $(490,000) Net Income (above) $(150,000) Dividends Paid $5,000 Retained earnings 12/31/13 $(635,000) Cash $15,000 Receivables $220,000 Inventory $280,000 Investment in Aaron Company $0 Copyrights $340,000 Royalty Agreements $380,000 Total Assets $1,235,000 Liabilities $(470,000) Preferred Stock $0 Common Stock $(100,000) Additional Paid-In Capital $(30,000) Retained earnings 12/31/13 $(635,000) Total Liabilities and Equities $(1,235,000) On the date of aquisitionm Aaron reported retained earnings of $230,000 and a total book value of $360,000. At that time, its royalty agreements were undervalued by $60,000. This intangible was assumed to have a six-year life with no residual value. Additionally, Aaron owned a trademark witg a fair value of $50,000 and a 10-year remaining life that was not reflected on its books. Using the attached excel templates: a) prepare a consolidation worksheet for these two companies as of December 31, 2013 b) Assuming that Michael applied the equity method to this investment, what account balances would differ on the parent's individual financial statements? c) Assuming that Michael applied the equity method to this investment, what changes would be necessary in the consolidation entries found on a December 31, 2013 worksheet? d) Assuming that Michael applied the equity method to this investment, what changes would be created in the consilidated figures to be reported by this combination?
Question 2
Research the General Mills website. Using your readings, the Library, and the Internet, and any additional resources necessary, you are being asked to complete the following sections of a Strategic Audit (See examples starting on page 78 and pages 179-185 following appendix 11.C): Analysis of Strategic Factors. Since you are aware that your analysis of strategic factors or SFAS (Strategic Factor Analysis Summary) is based on IFAS and EFAS tables, and since we will need to understand your choices, you are required to submit the three tables in Excel format in one separate file from your written Word assignment. Non submission of an Excel file or submission of a table in a Word file will cause you to lose half of the points of this assignment. No comments are needed on the IFAS and the EFAS tables, but comments are needed on the SFAS table, which is the foundation for this assignment (You will submit one Excel file that will include three separate sheets, one for the IFAS, one for the EFAS and one for the SFAS). As a reminder, two files are to be submitted: One Excel file (counting for three pages) and one Word file (five to seven pages double-spaced). You will be graded on your knowledge of the software and math in building the MS Excel tables, and on your ability to communicate in writing and present your arguments. Strategic Alternatives and Recommended Strategy Here you will be graded on your ability to analyze economic, socio-cultural, political-legal, technological, and financial data to justify your available strategies and the one(s) you recommend. Implementation: Describe the implementation of the strategy(ies) you recommended. Evaluation and Control: How do you evaluate the performance of your implemented strategy(ies)? For a sample outline of a Strategic Audit, review examples starting on page 78 and appendix 11.C.,Hello First of all thank you for your help but the problem ask for three table in excel but I only noticed 1 table which is the SFAS. I have to turn in this assignment this evening please contack me as soon as possible. Once again Thank you "you are required to submit the three tables in Excel format in one separate file from your written Word assignment. Non submission of an Excel file or submission of a table in a Word file will cause you to lose half of the points of this assignment."
Question 3
I need help on these 4 questions 5. U.S attorneys are reveiwing our billing practices and physician relationships. Explain to me what they are looking for and whether you think we have any liability. What actions have been brought against hospitals like ours during the last 2 years? Do we need a corporate compliance plan, and if so, what should it include? Do rural hospitals get any breaks in dealing with hospitals? 6. Review current studies and literature and tell me what percent increases/decreases we can expect commercial rates, medicare rates, and medicaid rates to be over the next three years. What impact will those rate increases/decreases have on our operations? 7. Analyze my capitates managed care agreement with the city. Using differential cost analysis for 2006 data, tell me the full cost profit/loss and the differential cost profit/loss. Should we renew the contract for next year at present rates, or should we ask for a rate increase, and, if so, how much of a rate increase do we need to cover our full cost? To cover our differential cost? 8. Our radiology department is in violation of the anti-trust statutes by developing a fee schedule using RVUs developed by the radiologist?s professional society. You must establish a new RVU system before we can set FY 2007 rates. The radiology manager has already completed some of the work and I?ll send it over to you (see Table V). Please develop a hospital-specific RVU schedule and, using activity-based costing, assign FY 2007 radiology department rates (total radiology expenses for FY 2006 were $4.5 million). Note: use technician minutes and supply expense to assign direct costs and machine minutes to assign indirect costs.) Please see attachment.,OK...GREAT! THANK YOU, JOHANE
Question 4
I have two cost accounting questions: 1. Comprehensive variance analysis. Kitchen Whiz manufactures premium food processors. The following is some manufacturing overhead data for Kitchen Whiz for the year ended December 31, 2010: Actual Results Flexible Budget Allocated Amount Variable costs $76,608 $76,800 $76,800 Fixed costs 305,208 348,096 376,320 Budgeted number of output units: 888 Planned allocation rate: 2 machine-hours per unit Actual number of machine-hours used: 1,824 Static-budget variable manufacturing overhead costs: $71,040 **Compute the following quantities in the prescribed order** - Budget number of machine hours planned -Budgeted fixed manufacturing overhead costs per machine hour -Budget variable manufacturing overhead costs per machine hour -Budgeted number of machine-hours allowed for actual output produced. -Actual number of output units. -Actual number of machine-hours used per output unit. 2. Balanced scorecard and strategy. Dransfield Company manufactures an electronic component, ZP98. This component is significantly less expensive than similar products sold by Dransfield?s competitors. Order-processing time is very short; however, approximately 10% of products are defective and returned by the customer. Returns and refunds are handled promptly. Yorunt Manufacturing, Dransfield?s main competitor, has a higher priced product with almost no defects, but a longer order-processing time. -Draw a simple customer preference map for Dransfield and Yorunt using the attributes of price, quality, and delivery time. -Is Dransfield?s current strategy that of product differentiation or cost leadership? -Dransfield would like to improve quality without significantly increasing costs or order- processing time. Dransfield?s managers believe the increased quality will increase sales. What elements should Dransfield include in its balanced scorecard? -Draw a strategy map to explain cause-and-effect relationships in Dransfield?s balanced scorecard.,How is the assignment going?,Is the assignment going well?
Question 5
The old Attachment: 6345527.xls somehow is dead. Someone please fix the link 1. Penguin Pucks, Inc., has current assets of $5,100, next fixed assets of $23,800, current liabilities of $4,300, and long-term debt of $7,400. What is the value of the shareholders? equity account for this firm? How much is net working capital? 2. Papa Roach Exterminators, Inc., has sales of $586,000, costs of $247,000, depreciation expense of $43,000, interest expense of $32,000, and a tax rate of 35 percent. What is the net income for this firm? 3. Klingon Widgets, Inc., purchased new cloaking machinery three years ago for $7 million. The machinery can be sold to the Romulans today for $4.9 million. Klingon?s current balance sheet shows net fixed assets of $3.7 million, current liabilities of $1.1 million, and net working capital of $380,000. If all the current assets were liquidated today, the company would receive $1.6 million cash. What is the book value of Klingon?s assets today? What is the market value? 4. So long, Inc., has sales of $27,500, costs of $13,280, depreciation expense of $2,300, and interest expense of $1,105. If the tax rate is 35 percent, what is the operating margin? What is the net profit margin? 5. The 2008 balance sheet of Saddle Creek, Inc., showed current assets of $2,100 and current liabilities of $1,380. The 2009 balance sheet showed current assets of $2,250 and current liabilities of $1,710. What was the company?s 2009 change in net working capital, or NWC? 6. In March 2005, General Electric (GE) had a book value of equity of $113 billion, 10.6 billion shares outstanding, and a market price of $36 per share. GE also had cash of $13 billion, and total debt of $370 billion. a. What was GE?s market capitalization? What was GE?s market-to-book ratio? b. What was GE?s book debt-equity ratio? What was GE?s market debt-equity ratio? c. What was GE?s enterprise value? 7. Suppose that in 2006, Global Conglomerate Corporation (from Chapter 2 in the text) launched an aggressive marketing campaign that boosts sales by 15%. However, their operating margin fell from 5.57% to 4.50%. Suppose that they have no other income, interest expenses are unchanged, and taxes are the same percentage of pretax income as in 2005 (See Table 2.2 in the text). a. What is Global?s EBIT in 2006? b. What is Global?s net income in 2006? c. If Global?s P/E ratio and number of shares outstanding remain unchanged, what is Global?s share price in 2006? 8. In July 2005, American Airlines (AMR) had a market capitalization of $2.3 billion, debt of $14.3 billion, and cash of $3.1 billion. American Airlines had revenues of $18.9 billion. British Airways (BAB) had a market capitalization of $5.2 billion, debt of $8.0 billion, cash of $2.9 billion, and revenues of $13.6 billion. a. Compare the market capitalization-to-revenue ratio (also called the price-to-sales ratio) for American Airlines and British Airways. b. Compare the enterprise value-to-revenue ratio for American Airlines and British Airways.
