Question 1
Same information with the exeption on cell D3 of excell is 0.10 and i have other Excel sheet with more information The paper is 1,400 to 2,100 words in length. The paper provides sufficient background on the topic and previews major points To include the following: ? A recommendation for Ongko?s problems of foreign competition and labor cost with a justification for why they chose that recommendation? ? A discussion on the international capital structure and the cost of capital of Ongko when going global ALSO SEE ATTACHED EXCEL FILE with Financial Budget INFO. Ongko?s Furniture Scenario While many people know that Bali, Indonesia is a beautiful vacation spot, it is also a large furniture manufacturing location in Southeast Asia. Jaya Ongko made furniture for years near his Bali home. The area had an effective supply of timber for the variety of tables and chairs produced by his company. Labor was also relatively inexpensive. In addition, he priced his handcrafted products at a slight premium for the quality they represented. Ongko not only supplied the surrounding countries in Southeast Asia, but also exported his hand-crafted premium products to more than 20 countries worldwide. Overall, life was good for Mr. Ongko. In the late 1990s, two forces combined to cause a large dent in his business. First, a new competitor from overseas entered the furniture market. Using a high-tech approach, the new foreign company provided furniture to exact specifications and did so with rock-bottom prices. Second, the sleepy communities in Bali woke up. One of the largest retailers in the nation?s headquarters was just a few miles down the road, and its influence had expanded considerably. With inexpensive housing, mild weather, beautiful scenery, uncongested roads, a new international airport, and plenty of development, an increase in the population and the number of jobs raised the cost of labor substantially. Ongko watched his profit margins shrink as prices fell and costs rose. After researching his competition to see how they were handling these changes, Ongko saw that many of them were consolidating into larger organizations by merger or acquisition. Being independent, Ongko did not relish the idea of being acquired by a larger competitor and then forced out as the new company squeezed every rupiah it could out of the overhead costs. Initially, Ongko was not a big fan of forming a joint venture, as it would affect time spent with his family in ways that he would not enjoy. When one of his former suppliers in Brazil approached him for a possible acquisition deal, Ongko became interested in the option of expanding his management responsibilities by acquiring this supplier, who had been underperforming in the Brazilian market. One factor that concerned him was the political unrest in Brazil, accompanied by hyperinflation. Prices of goods fluctuated wildly on a daily basis. At the same time, the government kept issuing more paper currency in higher denominations. Banks would restrict the amount of money people could withdraw. The effects on businesses were also devastating. Companies did not want to buy any goods, because they were not sure what price they would pay, and salaries did not keep up with inflation. Alternatively, Ongko observed the foreign competition and their high-tech solution. Essentially, their production utilized a computer-controlled laser lathe to produce exact cuts in the wood. Highly automated, the plant in Norway used very little labor as robots even performed the precise movement and assembly functions. The cost of the technology was immense, as was the reduction in the labor needed for production. In addition, the production, running on a 24-hour basis, could move between products quickly, as the shift-differentials were more than offset by the reduction in labor. Converting his production to this model would be expensive, but he saw how he could also dramatically decrease his production costs. When talking to some of his distributors about their wants, he had another appealing idea. A second competitor, operating only in Denmark, was looking for channels to distribute in Asia. This second potential rival, however, did not operate furniture outlets, favoring instead to rely on chain distributors. Ongko could coordinate his existing distributor network and essentially become a representative for this other manufacturer. While he would retain some of the high-end custom work, he could move his company from primarily manufacturing to primarily distributing. Ongko also had a patented process for creating a coating for his furniture. During production, the process first created a common flame retardant, and upon further processing, the coating is complete and stain-resistant. There was a market for the flame retardant, but not as much of a market for the finished coating. There was another product that Ongko could buy to apply to his furniture that would add the same amount of value to the furniture.,Here are the requierements Calculate the cost of capital. ? Apply techniques used in capital budgeting decisions. ? Analyze a capital project?s present value based on expected future net cash flows. ? Analyze risks associated with international investment decisions. the paper effectively and appropriately provides the following: ? A sensitivity analysis ? The optimal weighted average cost of capital (WACC) ? A discussion on the use of multiple valuation techniques in reducing risks ? The net present value (NPV) of future cash flows for each of the alternatives,Does anyone working on it,Thank you,Rachel are you working on this assignment or some else.,Just in case have no received attachment here are again,Here is other
Question 2
I have a data project that needs a series of questions answered based off of data already collected. These are the rules and guide lines as well as questions: I want you to analyze the data contained in the spreadsheet for your final project which is to answer these questions below. Please note that the data has been changed slightly from what you gave me to protect everyone's privacy. Before you start your analysis, you should always check the data for errors and consistency. You want every column to have numbers that are in the same measurement (minutes or hours) and you want to be sure that there are no errors in the data (columns that should have a number have a word instead). When you find errors, you should give it your best guess and correct it. Please remember that SPSS does not recognize words as data. For the columns that have words you should give each word a numeric code (1 for yes, 2 for no) and note your codes somewhere on the spreadsheet so you can enter them into SPSS in the values area of the variable portion of the data. The first few questions define what type of analysis must be done. The last few questions, you chose the type of analysis that bests answers the question. You should choose the type of analysis according to what you have learned from the book. Please use SPSS as much as possible. When you are finished with the analysis, write down or type the answer to each question and submit it. I do not wish to see the SPSS output or the spreadsheet again. When you write down the answers, use APA style formatting and use full sentences. The APA formatting for statistical reporting can be found at this website- http://owl.english.purdue.edu/owl/resource/560/22/. I will answer questions about the assignment but I cannot answer questions about which analyses to do or how to correct errors in the data. 1. What is the median age of the class? 2. What is the mean commute time to class? 3. What is the average number of hours worked? 4. Overall, what is the average number of hours studied in the class? 5. Is the age of the student related to the number of hours they study? 6. What is the most common "quality rating" of study time? 7.Is the grade affected significantly by either the student's age or the number of hours studied? 8. Is the students? grade related to the number of hours worked? 9. do the students who have children get significantly different grades from the students who do not have children? 10. Is a person's willingness to eat breakfast related to their sandwich spread preference?
Question 3
7 Marks: 16 Kumari Corporation uses the weighted-average method in its process costing system. Data concerning the first processing department for the most recent month are listed below: Beginning work in process inventory: Units in beginning work in process inventory ...................... 200 Materials costs ...................................................................... $2,900 Conversion costs .................................................................. $6,400 Percent complete with respect to materials .......................... 85% Percent complete with respect to conversion ....................... 70% Units started into production during the month ..................... 7,800 Units transferred to the next department during the month ... 7,400 Materials costs added during the month ................................. $128,000 Conversion costs added during the month ............................. $332,600 Ending work in process inventory: Units in ending work in process inventory ........................... 600 Percent complete with respect to materials .......................... 60% Percent complete with respect to conversion ....................... 35% Note: Your answers may differ from those offered below due to rounding error. In all cases, select the answer that is the closest to the answer you computed. To reduce rounding error, carry out all computations to at least three decimal places. The cost of ending work in process inventory in the first processing department according to the company's cost system is closest to: Answer: a. $12,897 b. $15,428 c. $22,110 d. $36,850,Thank you sir! My accounting course is hard and have few other questions. 1. Kale Company uses the FIFO method in its process costing system. At the beginning of March, the inventory in the Blending Processing Center consisted of 3,000 units, 90% complete with respect to conversion costs. At the end of the month, the inventory consisted of 2,000 units that were 60% complete with respect to conversion costs. If 10,000 units were transferred to the next processing center during the period, the equivalent units for conversion costs would be: Answer: a. 9,500 units b. 11,500 units c. 8,500 units d. 10,500 units 2.Boswal Company uses the weighted-average method in its process costing system. The Assembly Department started the month with 6,000 units in its beginning work in process inventory that were 80% complete with respect to conversion costs. An additional 52,000 units were transferred in from the prior department during the month to begin processing in the Assembly Department. There were 18,000 units in the ending work in process inventory of the Assembly Department that were 20% complete with respect to conversion costs. What were the equivalent units for conversion costs in the Assembly Department for the month? Answer: a. 38,800 b. 40,000 c. 64,000 d. 43,600 3.Monsivais Corporation, a manufacturing company, has provided the following financial data for February: Sales .......................................................... $470,000 Variable production expense ..................... $81,000 Variable selling expense ............................ $11,000 Variable administrative expense ................ $40,000 Fixed production expense ......................... $86,000 Fixed selling expense ................................ $73,000 Fixed administrative expense .................... $139,000 The company had no beginning or ending inventories. The gross margin for February was: Answer: a. $40,000 b. $172,000 c. $338,000 d. $303,000 4.Cranbrook Company has the following data for the month of March: Sales .......................................................... $30,000 Fixed manufacturing overhead ................. $5,500 Direct labor ................................................ $7,250 Fixed selling expense ................................ $4,625 Variable manufacturing overhead ............. $4,100 Variable administrative expense ................ $4,800 Direct materials ......................................... $5,150 Fixed administrative expense .................... $4,450 Variable selling expense ............................ $4,975 Assume that direct labor is variable and all units are produced and sold in the same month. What was the total contribution margin in March for Cranbrook Company? Answer: a. $8,875 b. $16,125 c. $15,425 d. $3,725 5.The break-even point would be increased by: Answer: a. none of these. b. a decrease in total fixed expenses. c. an increase in the contribution margin ratio. incorrect d. a decrease in the ratio of variable expenses to sales. 6.Next year, Mudd Face Cosmetics, a single product company, expects to sell 9,000 jars of miracle glaze. Mudd Face is budgeting the following operating results for next year: Sales .................................. $450,000 Variable expenses .............. 135,000 Contribution margin .......... 315,000 Fixed expenses .................. 252,000 Net operating income ........ $ 63,000 If sales next year at Mudd Face are 10% higher than expected, its net operating income should be: Answer: a. $31,500 higher than expected. b. $44,100 higher than expected. c. $6,300 higher than expected. d. $4,410 higher than expected. 7.Abdi Company, which has only one product, has provided the following data concerning its most recent month of operations: Selling price ............................................... $81 Units in beginning inventory ..................... 0 Units produced .......................................... 7,300 Units sold .................................................. 7,000 Units in ending inventory .......................... 300 Variable costs per unit: Direct materials ...................................... $20 Direct labor ............................................. $30 Variable manufacturing overhead .......... $7 Variable selling and administrative ........ $11 Fixed costs: Fixed manufacturing overhead .............. $65,700 Fixed selling and administrative ............ $21,000 What is the net operating income for the month under absorption costing? Answer: a. $7,000 b. $4,300 c. $(12,800) d. $2,700 8.Osawa Inc. manufactured 200,000 units of its only product in its first year of operations. Variable manufacturing costs were $30 per unit. Fixed manufacturing costs were $600,000 and selling and administrative costs totaled $400,000. Osawa sold 120,000 units at a selling price of $40 per unit. Osawa's net operating income using variable costing would be: Answer: a. $600,000 b. $800,000 c. $200,000 d. $440,000 9.Sipho Corporation manufactures a variety of products. Last year, the company's variable costing net operating income was $90,900. Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $21,900. What was the absorption costing net operating income last year? Answer: a. $90,900 b. $21,900 c. $69,000 d. $112,800
Question 4
Project 1 XZY Limited is considering an investment in new plant of $3 million. The project will be financed with a loan of $2,000,000 which will be repaid over the next five years in equal annual end of year instalments at a rate if 9.5 percent pa. Assume straight-line depreciation over a five-year life, and no taxes. The projects cash flows before loan repayments and interest are shown in the table below. Cost of capital is 14.25% pa (the required rate of return on the project). A salvage value of $200,000 is expected at the end of year five and is not included in the cash flows for year five below. Ignore taxes and inflation. Year Year One Year Two Year Three Year Four Year Five Cash Inflow 850,000 950,000 800,000 900,000 950,000 You are required to calculate: (1) The annual loan repayment (2) NPV of the project (3) the IRR of the project (4) AE, the annual equivalent for the project(AE or EAV) (5) PB, the payback in years (to one decimal place) (6) ARR, the accounting rate of return (gross) (7) PI (present value index or profitability index) (8) Is the project acceptable? Why or why not (provide a full explanation)? Project 2 XZY Limited Wheel Division is considering a proposal to purchase a new machine to manufacture a new product for a potential three year contract. The new machine will cost $1.11 million. The machine has an estimated life of three years for accounting and taxation purposes. The contract will not continue beyond three years and the equipment estimated salvage value at the end of three years is $105,000. The tax rate is 30 percent and is payable in the year in which profit is earned. An investment allowance of twenty percent on the outlay is available. The cost of capital is 13.25%pa. Addition net working capital of $70,000 is required immediately for current assets to support the project. Assume that this amount is recovered at the end of the three year life of the project. The new product will be charged $53,500 of allocated head office administration costs each year even though head office will not actually incur any extra costs to manage the project. This is in accordance with the firm?s policy of allocating all corporate overhead costs to divisions. Extra marketing and administration cash outflows of $42,500 per year will be incurred by the Steel Division. An amount of $39,000 has been spent on a pilot study and market research for the new product. The projections provided here are based on this work. Projected sales for the new product are 32,000 units at $125 per unit per year. Cash operating expenses are estimated to be 75 percent of sales (excludes marketing and administration, and head office items). Except for initial outlays, assume cash flows occur at the end of each year (unless otherwise stated). Assume diminishing value depreciation for tax purposes. Required (a) Construct a table showing your calculations of net cash flow after tax. (Similar to that demonstrated in the notes and in class) (b) Calculate the NPV. Is the project acceptable? Why or why not? (c) Explain your calculation of relevant net cash flows after tax, justifying your selection of cash flows. Be sure to state clearly any assumptions made.
Question 5
The question from ?PRIMO BENZINA AG? 1. Based on the information provided in Exhibit 2, prepare the Company?s Statements of Cash Flows for each of the two years ended on December 31, 2008 and 2009. 2. Analyze the Company?s cash flow pattern based on the graphs studied and explain it based on the Company?s Strategy. 3. Do you think that, based on the Company?s cash flow pattern and history and on its financial condition as depicted in Exhibit 2?,Exhibit 2. Financial Statement Information Income Statement (In thousands of euros) For the Year Ending December 31 2008 2009 Sales 10,887 38,103 Cost of goods sold (7,403) (27,815) Gross Profit 3,484 10,288 Depreciation expense 138 557 Other operating expenses 1,742 6,859 Operating Income 1,604 2,872 Interest expense 163 653 Income before income tax expense 1,441 2,219 Income tax expense 360 555 Net income 1,081 1,664,Statement of Retained Earnings (In thousands of euros) For the Year Ending December 31 2008 2009 Retained Earnings?beginning of the year 332 613 plus net income 1,081 1,664 less dividends (800) (800) Retained Earnings?end of the year 613 1,477,Balance Sheet (In thousands of euros) December 31 2008 2009 Current Assets Cash 896 3,136 Receivables 1,640 7,830 Inventory 1,217 4,953 Total current assets 3,753 15,919 Property and equipment (at cost) 3,110 13,608 Accumulated depreciation (292) (849) Total assets 6,571 2,867 Current Liabilities Accounts payable 674 3,458 Short-term loans payable 1,895 9,743 Total current liabilities 2,569 13,201 Long-term debt 1,600 6,000 Total liabilities 4,169 19,201 Stockholders? Equity Paid-in capital 1,789 8,000 Retained earnings 613 1,477 Total stockholders? equity 2,402 9,477 Total liabilities and stockholders? equity 6,571 28,678,The Financial Situation Primo Benzina had relied heavily on short-term loans from Dresdner Bank, which had recently increased the company?s term loan to ?12 million. Exhibit 2 provides balance sheet and income statement data for the years 2006-2009. The term loan was funded (or repaid) on June 30 of each year, and bore an interest rate of six percent per year, or about 200 basis points above the prime interest rate. If Primo Benzina utilized the maximum amount of the term loan, which Heuermann believed would be necessary in 2010, the short-term interest obligation would be around ?739,000. The short-term loan was secured by a lien on all of Primo Benzina?s accounts receivable and inventories, while the loan?s covenants specified minimum levels of working capital and net worth that had to be maintained. Information about the company?s product lines, petrol, and food, snacks, Purchased by kanyanat onke (kanyanat2525@gmail.com) on May 15, 2012 4 TB0013 and drinks The company?s outstanding long-term debt of ?6 million was financed by Gerhard Schroder, a billionaire property developer and Otto Schroder?s son, and was due and payable on June 30, 2012. In 2009, Gerhard Schroder had provided ?4.4 million in additional loans, and indicated that he would be unwilling to increase his commitment to the business, but that the interest rate of eight percent per year would remain in effect on all long-term debt. Another important source of financing Primo Benzina?s working capital needs over the last few years prior to 2010 had been the practice of stretching payables, i.e., delaying payments of accounts payable to the company?s suppliers. Most suppliers offered terms of 2% 10, net 30, but Primo Benzina had stretched its payables to the point that several of its suppliers had called Otto Schroder to complain about the slowdown. Helmut Scharf, the CEO of Petrol Jetzt AG, called to say he was also a small businessman who had bills to pay. In 2009, Primo Benzina issued ?6.211 million of new equity to Schroeder, the company?s chief executive officer and major shareholder, but he had indicated that he was unwilling to dilute his shareholdings or provide additional equity during the next two years. The company?s short-term bonus scheme paid-incentive compensation was based on earnings before interest, taxes, depreciation, and amortization (EBITDA). Under the plan, the bonus pool was ten percent of EBITDA if EBITDA exceeded ?1 million, and zero otherwise. To ensure that top management did not view cash outlays on capital investment as a free good, Heuermann had recently recommended to the company?s board of directors that the bonus plan in the future should be based on free cash flow, which she defined as EBITDA less capital expenditures (CapEx), or even cash flow from operations less capital expenditures.,The Future The company anticipated spending ?3.402 million to build three new retail outlets in Heilbronn. Based on extensive market research, Heuermann estimated that sales would increase 25 percent in 2010, and that the company?s cash on hand would need to grow at a rate consistent with sales growth to maintain adequate cash for daily transactions. Outlays on property and equipment would continue to be depreciated over 15 years for tax and reporting purposes.2 The company?s tax rate was 25 percent of pre-tax profits. The company planned to maintain its dividend payments at ?800,000 per year for the foreseeable future. As Schroder and Heuermann contemplated the company?s growing need for additional cash, they wondered whether the company?s financial structure was the ideal arrangement. They foresaw increasing difficulties in future negotiations with Dresdner Bank. To add to the company?s difficulties, Deutsche Bank (January 9, 2010) noted that, ?With petrol prices now at record levels, we expect that consumers will remain focused on low-price operators, making the next two years very difficult for family-operated service stations?perhaps even the death of small operators. Only the mega-unit operators will be able to reduce costs enough to remain competitive.?,This is enough to do these 3 question.,"Exhibit 2. Financial Statement Information Income Statement (In thousands of euros) For the Year Ending December 31 2008 2009 Sales 10,887 38,103 Cost of goods sold (7,403) (27,815) Gross Profit 3,484 10,288 Depreciation expense 138 557 Other operating expenses 1,742 6,859 Operating Income 1,604 2,872 Interest expense 163 653 Income before income tax expense 1,441 2,219 Income tax expense 360 555 Net income 1,081 1,664,you promissed to answer 3 question per a day and you still haven't answered any questions,I have a doubt about this.,again.
