Question 1
Dear Tutor, The can only afford to increase the price to $10. I hope you understand the circumestances. You shouldnt even suppose to charge me becuase you didnt complete all the answers according to the instruction that I provided to you. Now you asked me to pay $20 it's not fair. I couldnt even have access to send respond to you for the assignment that you provided early becuase you blocked a respond tab option, that led me to contact you only by paying some money. I didnt cause this issue and you made in error you didnt complete question 6(b) and 7 plus you provided answer without following the instruction. You should be able to see clearly where the issue occured and who caused it. However, you did provide all the calculation but you forgot to answer question 6 (b) and 7. Also, you didnt follow te instruction. Everytime when I submitted the assignment there is always something that you are missing. I always provide clear instruction for you to provide the answer. It's not fair to pay for incomplete work $20. Now i'm submitting again for you to complete the questions correctly. You provide your calculation without using excel financial function cell. The calculation that you provided can be done in microsoft word but the assignment is to use excel. You did great the last assignment that you answered for second time. You have to re-do the assignment and res-submit. Please follow the instruction. Please see below teh instruction. Please see attachment for the questions. You already have all the answers for each question that makes it easy. Please understand my situation and help me to resolve this matter. Submit all answers in a single Excel file. All calculations should be shown, step by step, done by using Excel, and all answers should be thoroughly explained. 1. Show all your calculations. 2. Use Excel in order to accomplish item 1 above. 3. Describe and justify each assumption you have made, 4. Explain, support and justify every statement you make. 5. Support your conclusions with evidence (such as facts and statistics from reliable sources, quotes from the readings, or a well-reasoned logical argument). Examples from your own experience are also helpful. Please bear in mind that analyses and conclusions are only as good as the data and assumptions that they are based on; So ALWAYS support all of your numbers or calculations with reasoning and explanations, and be sure to provide sources for all of your data. Please see attached file to answer all the requirment questions. Use excel worksheet to show the calculation. Answer is given for each question
Question 2
Use File Attached 2.) Burien allocates building depreciation, maintenance, and utilities on the basis of square footage. Office expenses are allocated on the basis of sales. Management is considering an expansion to a three-department operation. The proposed Department C would generate $120,000 in additional sales and have a 17.5% contribution to overhead. The company owns its building. Opening Department C would redistribute the square footage to each department as follows: A, 19,040; B, 21,760 sq. ft.; C, 13,600. Increases in indirect expenses would include: maintenance, $500; utilities, $3,800; and office expenses, $1,200. Complete the following departmental income statements, showing projected results of operations for the three sales departments. (Round amounts to the nearest whole dollar.) Also show your calculations for the allocation of indirect expenses in the tables below the Departmental Income Statement. 3.) Hess Co. manufactures a product that sells for $12 per unit. Total fixed costs are $96,000 and variable costs are $7 per unit. Hess can buy a newer production machine that will increase total fixed costs by $22,800 but variable costs will be decreased by $0.40 per unit. REQUIRED: Calculate the current break-even point in units and the break-even point in units if the new production machine is purchased. Show your answers in the spaces provided and use the space below the answer blocks to show your calculations. 4.) Slim Corp. requires a minimum $8,000 cash balance. If necessary, loans are taken to meet this requirement at a cost of 1% interest per month (paid monthly on the loan balance at the end of the previous month). Loans are repaid at month's end from any excess cash. The cash balance on July 1 is $8,400. Cash receipts other than for loans received for July, August, September are forecasted as $24,000, $32,000, and $40,000, respectively. Payments other than for loan or interest payments for the same period are planned at $28,000, $30,000, and $32,000, respectively. At July 1, there are no outstanding loans. REQUIRED: Prepare a cash budget for July, August, and September. Use the template below for your answer. Extra Credit attached
Question 3
The trial balance of the General Fund of the city of Claire on January 1, 20X0, was as follows: Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,000 Taxes Receivable?Delinquent . . . . . . . . . . . . . . . . . . . . . . . . 20,000 Allowance for Uncollectible Taxes?Delinquent . . . . . . . . . . $ 3,000 Interest and Penalties Receivable on Taxes . . . . . . . . . . . . . . . 1,000 Allowance for Uncollectible Interest and Penalties . . . . . . . . . 75 Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 Allowance for Uncollectible Accounts . . . . . . . . . . . . . . . . . . . 1,000 Vouchers Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20,500 Reserve for Encumbrances . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 Unreserved Fund Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,425 $46,000 $46,000 The following transactions and events took place during 20X0: 1. Revenues were estimated at $110,000; appropriations of $108,000 were made. 2. An order for materials placed at the end of the preceding year and estimated to cost $10,000 was received; the invoice indicated an actual cost of $9,500. 3. Taxes of $110,000 accrued; an allowance of 5% was made for possible losses. 4. Collections were made as follows: Current Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $90,000 Delinquent Taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10,000 Interest and Penalties Receivable on Taxes . . . . . . . . . . . . . . . . 300 Accounts Receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5,000 5. Taxes totaling $20,000 have become delinquent; the balance of Allowance for Uncollectible Taxes?Current was reclassified to Allowance for Uncollectible Taxes?Delinquent. 6. Delinquent taxes of $2,000 were written off; interest and penalties receivable on taxes of $20 were also written off. 7. Orders were placed for (a) materials estimated to cost $20,000 and (b) a truck estimated to cost $28,000. 8. Delinquent taxes of $200, which were written off in preceding years, were collected with interest and penalties of $35 ($25 of which had been previously accrued and written off). 9. Payments were made as follows: Vouchers Payable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $15,500 Payrolls . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45,000 10. The materials and truck ordered (in 7) were received; bills for $21,000 and $28,000, respectively, were also received. 11. Operating lease payments of $15,000 were paid. 12. Interest of $600 accrued on delinquent taxes, and an allowance for uncollectible losses thereon of 10 percent was provided. 13. An order was placed for materials estimated to cost $15,000. Post the opening trail balance to T-accounts. Prepare journal entries for the above transactions. Post transactions to T-accounts. Prepare closing entries. Post closing entries to T-accounts. Prepare post closing trial balance at December 31, 20X0. Prepare Statement of Revenues, Expenditures, and Changes in Fund Balances for the year ended December 31, 20X0. Prepare a Balance Sheet as of December 31, 20X0.
Question 4
"PART II ? JOURNAL ENTRIES (26 points) The ledger accounts given below, with an identification number for each, are used by Wayne Company. Instructions: Indicate the appropriate entries for the month of June by placing the appropriate identification number(s) in the debit and credit columns provided. Item 0 is given as an example. Write "none" if no entry is appropriate. 1. Cash 7. Salaries Payable 13. Service Revenue 2. Accounts Receivable 8. Accounts Payable 14. Equipment Expense 3. Supplies 9. Unearned Service Revenue 15. Advertising Expense 4. Prepaid Salaries 10. Notes Payable 16. Supplies Expense 5. Prepaid Advertising 11. Common Stock 17. Rent Expense 6. Equipment 12. Dividends 18. Salaries Expense ??????????????????????????????????????????? Entry Account(s) Account(s) No. Entry Information Debited Credited 0. June 1 H. Wayne invested $25,000 in the business. 1 11 ??????????????????????????????????????????? 1. June 4 Purchased supplies costing $2,000 on account. ??????????????????????????????????????????? 2. June 5 Equipment was purchased at a cost of $5,000; a three-month, 12% note payable was signed for this amount. ??????????????????????????????????????????? 3. June 8 Received $7,000 from customers for services rendered during the week. ??????????????????????????????????????????? 4. June 10 Wayne agreed to hire B. Kiner as an assistant. She will be paid at the rate of $4,000 monthly, receiving $2,000 on the 15th and 30th of each month. She will begin work June 16. ??????????????????????????????????????????? 5. June 14 Paid $400 cash to the Daily News for advertisements run this past week. ??????????????????????????????????????????? 6. June 16 B. Kiner began work. ??????????????????????????????????????????? 7. June 19 Paid $2,000 in cash to Santo Company for June rent. ??????????????????????????????????????????? 8. June 25 Paid supplier for supplies purchased on June 4. ??????????????????????????????????????????? 9. June 26 Paid the Daily News $400 for an advertisement that will run the first week in July. ??????????????????????????????????????????? 10. June 27 Received $9,000 from customers for services to be rendered early in July. ??????????????????????????????????????????? 11. June 28 Billed customers $6,000 for services rendered but not collected during June. ??????????????????????????????????????????? 12. June 30 Wayne paid $900 of dividends. ??????????????????????????????????????????? 13. June 30 B. Kiner was paid $2,000 cash for her salary. ??????????????????????????????????????????? PART III ? SHORT PROBLEMS (10 points) Instructions: Present the solutions, with appropriate supporting calculations, for each of the following independent problems. A. Given the following information, compute 2008 net income for Orson Company. B. Stockholders? equity?January 1, 2008 $125,000 B. Stockholders? equity?December 31, 2008 160,000 Stockholder investments during 2008 20,000 Dividends paid during 2008 38,000 B. Indicate the impact on the accounting equation of each of the following transactions. 1. Owner investment of cash. 2. Purchase of equipment for cash 3. Borrowed money from bank by issuing a note payable. 4. Purchase of office furniture for cash. 5. Purchase of supplies on account. 6. Collect cash from customers for services performed. 7. Purchased 24-month insurance policy 8. Paid monthly payroll. PART IV ? TYPES OF ACCOUNTS (10 points) Instructions: Place a check in the appropriate columns to designate whether each of the following accounts: (1) has a debit or credit normal balance; and (2) is an asset, liability, or stockholders? equity account. ??????????????????????????????????????????? (1) (2) Stockholders? Account Debit Credit Asset Liability Equity ??????????????????????????????????????????? 1. Service Revenue ??????????????????????????????????????????? 2. Salaries Expense ??????????????????????????????????????????? 3. Supplies ??????????????????????????????????????????? 4. Common Stock ??????????????????????????????????????????? 5. Accounts Payable ??????????????????????????????????????????? 6. Salaries Payable ??????????????????????????????????????????? 7. Dividends ??????????????????????????????????????????? 8. Accounts Receivable ??????????????????????????????????????????? 9. Prepaid Insurance ??????????????????????????????????????????? 10. Notes Payable ??????????????????????????????????????????
Question 5
You will assume that you still work as a financial analyst for AirJet Best Parts, Inc. The company is considering a capital investment in a new machine and you are in charge of making a recommendation on the purchase based on (1) a given rate of return of 15% (Task 4) and (2) the firm?s cost of capital (Task 5). Task 4. Capital Budgeting for a New Machine A few months have now passed and AirJet Best Parts, Inc. is considering the purchase on a new machine that will increase the production of a special component significantly. The anticipated cash flows for the project are as follows: Year 1 $1,100,000 Year 2 $1,450,000 Year 3 $1,300,000 Year 4 $950,000 You have now been tasked with providing a recommendation for the project based on the results of a Net Present Value Analysis. Assuming that the required rate of return is 15% and the initial cost of the machine is $3,000,000. 1. What is the project?s IRR? (10 pts) 2. What is the project?s NPV? (15 pts) 3. Should the company accept this project and why (or why not)? (5 pts) 4. Explain how depreciation will affect the present value of the project. (10 pts) 5. Provide examples of at least one of the following as it relates to the project: (5 pts each) a. Sunk Cost b. Opportunity cost c. Erosion 6. Explain how you would conduct a scenario and sensitivity analysis of the project. What would be some project-specific risks and market risks related to this project? (20 pts) Task 5: Cost of Capital AirJet Best Parts Inc. is now considering that the appropriate discount rate for the new machine should be the cost of capital and would like to determine it. You will assist in the process of obtaining this rate. 1. Compute the cost of debt. Assume AirJet Best Parts Inc. is considering issuing new bonds. Select current bonds from one of the main competitors as a benchmark. Key competitors include Raytheon, Boeing, Lockheed Martin, and the Northrop Grumman Corporation. a. What is the YTM of the competitor?s bond? You may use a number of sources, but we recommend Morningstar. Find the YTM of one 15 or 20 year bond with the highest possible creditworthiness. You may assume that new bonds issued by AirJet Best Parts, Inc. are of similar risk and will require the same return. (5 pts) b. What is the after-tax cost of debt if the tax rate is 34%? (5 pts) c. Explain what other methods you could have used to find the cost of debt for AirJet Best Parts Inc.(10 pts) d. Explain why you should use the YTM and not the coupon rate as the required return for debt. (5 pts) 2. Compute the cost of common equity using the CAPM model. For beta, use the average beta of three selected competitors. You may obtain the betas from Yahoo Finance. Assume the risk free rate to be 3% and the market risk premium to be 4%. a. What is the cost of common equity? (5 pts) b. Explain the advantages and disadvantages to use the CAPM model as the method to compute the cost of common equity. Compare and contrast this method with the dividend growth model approach. (10 pts) 3. Compute the cost of preferred equity assuming the dividend paid for preferred stock is $2.93 and the current value of the stock is $50 per share. a. What is the cost of preferred equity? (5 pts) b. Is there any other method to compute this cost? Explain. (5 pts) 4. Assuming that the market value weights of these capital sources are 30% bonds, 60% common equity and 10% preferred equity, what is the weighted cost of capital of the firm? (10 pts) 5. Should the firm use this WACC for all projects? Explain and provide examples as appropriate. (10 pts) 6. Recompute the net present value of the project based on the cost of capital you found. Do you still believe that your earlier recommendation for accepting or rejecting the project was adequate? Why or why not? (5 pts)
