Question 1
1. (TCO 1) Which of the following statements is not true regarding the goal of financial management? (Points: 3) a. The goal of maximizing the value per share of existing stock is relevant to all organizations. b.A way of aligning management goals to shareholder?s interest is to tie managerial compensation to the market value of the firm?s stock. c.For a company considering international operations, the goal will be the same but the company will have to consider the local social, economical and political environment in the decision-making process. d.All of the above are true. 2. (TCO 1) Market value is important to the financial manager because: (Points: 3) a.It reflects the value of the asset based on generally-accepted accounting principles. b.Is a crucial component of the balance sheet and can impact the financial statements. c.Market values reflect the amount someone is willing to pay today for an asset. d.The market value of an asset reflects its historical cost. 3. For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows: Cost of goods sold............................... $1.2 million Administrative expenses........................ $250,000 Marketing and selling expenses............... $175,000 Depreciation........................................ $500,000 Interest expense.................................. $200,000 Dividends paid..................................... $150,000 (TCO 1) Suppose that Sports Baseball has 20,000 shares of stock. What is the dividends per share figure? (Points: 3) 5.0 8.75 7.50 5.50 4. For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows: Cost of goods sold............................... $1.2 million Administrative expenses........................ $250,000 Marketing and selling expenses............... $175,000 Depreciation........................................ $500,000 Interest expense.................................. $200,000 Dividends paid..................................... $150,000 (TCO 1) Assuming a tax rate of 30%, what is the EBIT and taxable income for the year? (Points: 3) $1,000,000 and $800,000 respectively $575,000 and $375,000 respectively $565,000 and $365,000 respectively $425,000 and $225,000 respectively None of the above 5. For this question, use the information for Sports Baseballs, Inc. Sports Baseballs, Inc. is a corporation that manufacturers and sells baseballs across several states in the Southeast. It had sales of $2.7 million during the last year. Expenses were as follows: Cost of goods sold............................... $1.2 million Administrative expenses........................ $250,000 Marketing and selling expenses............... $175,000 Depreciation........................................ $500,000 Interest expense.................................. $200,000 Dividends paid..................................... $150,000 (TCO 1) Select all items that will be included in Sports Baseballs, Inc. Income Statement. For this exercise you will be choosing more than one option for your answer: (Points: 3) Accounts receivable Cost of goods sold Net working capital Interest expense Taxes Current assets Short-term loans Cash on hand Inventory 6. (TCO 1) Which one of the following activities best exemplify capital structure decisions. For this exercise you will be choosing more than one option for your answer: (Points: 6) Determine the most adequate mixture of debt and equity to be maintained. Obtain a short-term loan to purchase materials. Identify two capital investment projects. Determine the cost of each source of capital. Determine the return of a potential project. Calculate the cash flows for a project. Assess the terms of loans and evaluate potential long-term financing options.
Question 2
Final Assignment - Details & Examples Final Assignment: Deliver your Product Life Cycle plan, projecting your MMSs for the entire life cycle of your selected product/service and for each of your customer segments, from Introduction or Growth stages, through Mature to Declining. The final assignment will serve as your final executive report over your mission to develop the proper marketing mix strategies to support the new growth initiative. Build on what you have developed on previous assignments and outline the specific "P" strategies that you'll employ at each stage of the product life cycle and for each of your targeted segments. Up to 25% of your previous work can be recited here, referenced properly by APA standards. Summary tables will do great here! More details attached below. To further help you put the requirements and expectations of the Final Assignment in perspective, attached are a few papers from a previous Module. None is perfect, but all are in the 90-100% range, typified by: addressing the assignment requirements, supporting the findings/discussion/conclusions with quality research, applying critical thinking and integration of course knowledge, and, writing professionally to targeted audience. The original papers were converted to PDF format.,Attached is another example paper,Attached isa 3rd example paper,Below are QIDs from previous papers you wrote on this subject, please review them. 7449429 7430098,Look at the example I sent about to 10 pages will sufice, I will not pay much more,due to previous papers not being correctly done, if this one looks goood, I will add a 30 dollar tip at the end. Just please read all the example provided and the instructions. Thank you
Question 3
Capital Budgeting Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelley Couts, who inherited the company. When it was founded over 70 years ago, the company originally repaired radios and other household appliances. Over the years, the company expanded into manufacturing and is now a reputable manufacturer of various electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company?s finance department. One of the major revenue-producing items manufactured by Conch Republic is a smart phone. Conch Republic currently has one smart phone model on the market, and sales have been excellent. The smart phone is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current smart phone has limited features in comparison with newer models. Conch Republic spent $750,000 to develop a prototype for a new smart phone that has all the features of the existing smart phone but adds new features such as WiFi tethering. The company has spent a further $200,000 for a marketing study to determine the expected sales figures for the new smart phone. Conch Republic can manufacture the new smart phones for $185 each in variable costs. Fixed costs for the operation are estimated to run $5.3 million per year. The estimated sales volume is 74,000, 95,000, 125,000, 105,000, and 80,000 per year for the next five years, respectively. The unit price of the new smart phone will be $480. The necessary equipment can be purchased for $38.5 million and will be depreciated on a seven-year MCARS schedule. It is believed the value of the equipment in five years will be $5.4 million. As previously stated, Conch Republic currently manufactures a smart phone. Production of the existing model is expected to be terminated in two years. If Conch Republic does not introduce the new smart phone, sales will be 80,000 units and 60,000 units for the next two years, respectively. The price of the existing smart phone is $310 per unit, with variable costs of $125 each and fixed cost of $1,800,000 per year. If Conch Republic does introduce the new smart phone, sales of the existing smart phone will fall by 15,000 units per year and the price of the existing units will have to be lowered to $275 each. Net working capital for the smart phones will be 20 percent of sales and will occur with the timing of the cash flows for the year; for example, there is no initial outlay for NWC but changes in NWC will first occur in Year 1 with the first year?s sales. Conch Republic has a 35 percent corporate tax rate and a 12 percent required return. Shelley has asked Jay to prepare a report that answers the following questions: ? In order to proceed with this project, what are issues to be considered and metrics to be generated? (use no more than 250 words) ? Using the data presented in the case, specifically show how a decision maker analyzes the information so that an appropriate decision can be made concerning the project? (organize analysis in 1 page) ? Having made the calculation, please reflect on limitations and issues that need further thought and analysis. (no more than 150 words) ? What is the overall recommendation? (no more than 100 words)
Question 4
Your company is in financial trouble and is in the process of reorganizing. Your manager wants to know how you will report on restructuring the debt. Use the following information to help with this assignment. Part A ASSETS CURRENT ASSETS Cash and cash equivalents $ 108,340 Trade accounts receivable, net of allowances 2,866,260 Other receivables 62,150 Operating supplies, at lower of average cost or market 58,630 Prepaid expenses 446,050 Total Current Assets 3,541,430 PROPERTY, PLANT, AND EQUIPMENT (at cost) Land 1,950,000 Buildings and improvements 2,327,410 Equipment 5,015,660 Other equipment and leasehold improvements 1,645,580 total 10,938,650 Accumulated depreciation and amortization (7,644,430) Net Property, Plant, and Equipment 3,294,220 OTHER ASSETS Deposits and other assets 1,000,080 TOTAL ASSETS $ 7,835,730 LIABILITIES AND SHAREHOLDERS? EQUITY (DEFICIT) CURRENT LIABILITIES Accounts payable $ 972,160 Accrued liabilities 2,071,270 Accrued claims costs 793,620 Federal and other income taxes 19,710 Deferred income taxes 500 Current maturities of long-term debt and capital lease obligations 50,610 Short-term borrowings 249,250 Total Current Liabilities 4,157,120 LONG-TERM LIABILITIES Capital lease obligation 54,580 Note outstanding 3,000,000 Mortgage outstanding 608,030 Other liabilities 95,860 Total long-term liabilities 3,758,470 Total Liabilities 7,915,590 SHAREHOLDERS? EQUITY (DEFICIT) Common stock, $.01 par value; authorized 500,000 shares; issued 231,000 shares 2,310 Additional paid-in capital 731,090 Accumulated other comprehensive loss (113,500) Retained earnings (deficit) (639,180) Treasury stock (60,580) Total Shareholders? Equity (Deficit) (79,860) TOTAL LIABILITIES AND SHAREHOLDERS? EQUITY $ 7,835,730 Part B As stipulated, your company is having financial difficulty and has asked the bank to restructure its $3 million note outstanding. The present note has 3 years remaining and pays a current interest rate of 10%. The present market rate for a loan of this nature is 12%. The note was issued at its face value. The bank agrees to accept land in exchange for relinquishing its claim on this note. The land has a book value of $1,950,000 and a fair value of $2,400,000. The company provides the following information related to its postemployment benefits for the year 2007: o Accumulated postretirement benefit obligation at January 1, 2007: $810,000 o Actual and expected return on plan assets: $34,000 o Unrecognized prior service cost amortization: $21,000 o Discount rate: 10% o Service cost: $88,000 Assignment Part A: Provide your manager a comparison of the current reporting for debt, explaining the requirements for each type (bond, mortgage, capital lease, and others). Then, prepare the journal entries for the restructuring. Part B: To satisfy various benefit issues that have arisen as a result of the restructuring, new post employment benefits have been created. The company currently has a defined benefits plan and is considering switching to a defined contribution plan to save costs. Compute the costs associated with keeping the current plan versus the costs of a defined contribution plan where the employer pays 3% of payroll. The agreement is that the employees get to keep what is already in the defined benefit plan. This prevents the situation of having to compute how much the company would recapture in surplus assets resulting from terminating the old plan. Then, compute a new postemployment benefit expense for 2007 and report this to your manager. Illustrate with schedules and notes. Read more: http://www.justanswer.com/questions/2pcs3-your-company-is-in-financial-trouble-and-is-in-the-process#ixzz0oi6jPIeG
Question 5
4. Sims Company is in the electronics industry and the price it pays for inventory is decreasing. (1 Point) Indicate which inventory method will: a. provide the highest ending inventory. b. provide the highest cost of goods sold. c. result in the highest net income. d. result in the lowest income tax expense. e. produce the most stable earnings over several years. 5. The Dent Sign Company uses the allowance method in accounting for uncollectible accounts. Past experience indicates that 1% of net credit sales will eventually be uncollectible. Selected account balances at December 31, 2007, and December 31, 2008, appear below: (3 Points) 12/31/07 12/31/08 Net Credit Sales $400,000 $500,000 Accounts Receivable 75,000 100,000 Allowance for Doubtful Accounts 5,000 ? Instructions (a) Record the following events in 2008. Aug. 10 Determined that the account of Ann Koch for $1,000 is uncollectible. Sept. 12 Determined that the account of Joe Yates for $4,000 is uncollectible. Oct. 10 Received a check for $550 as payment on account from Ann Koch, whose account had previously been written off as uncollectible. She indicated the remainder of her account would be paid in November. Nov. 15 Received a check for $450 from Ann Koch as payment on her account. (b) Prepare the adjusting journal entry to record the bad debt provision for the year ended December 31, 2008. (c) What is the balance of Allowance for Doubtful Accounts at December 31, 2008? 6. Compute bad debts expense based on the following information: (2 Points) (a) Taylor Company estimates that 1% of net credit sales will become uncollectible. Sales are $600,000, sales returns and allowances are $30,000, and the allowance for doubtful accounts has a $6,000 credit balance. (b) Taylor Company estimates that 3% of accounts receivable will become uncollectible. Accounts receivable are $100,000 at the end of the year, and the allowance for doubtful accounts has a $500 debit balance. 7. A plant asset acquired on October 1, 2008, at a cost of $300,000 has an estimated useful life of 10 years. The salvage value is estimated to be $30,000 at the end of the asset's useful life. (2 Points) Instructions Determine the depreciation expense for the first two years using: (a) the straight-line method. (b) the double-declining-balance method. 8. On January 1, 2008, Kohl Corporation issued $700,000, 8%, 10-year bonds at face value. Interest is payable semiannually on July 1 and January 1. Kohl Corporation has a calendar year end. (2 Points) Instructions Prepare all entries related to the bond issue for 2008,i need this done in an hour! If that is impossible, then it is fine.
