Question 1
File attached. Directions below: Kelly's Boutique is contemplating several means of financing their acquisition of $100,000 in special equipment. One alternative is to borrow $100,000 from a local bank for 10 years at 12 percent per annum. The bank has asked them to produce a 1-year cash budget broken down by months (January through December). Sales of $30,000 are expected in the first month, with each month thereafter increasing 2 percent. Purchases are based on an expected cost of sales of 55 percent and a required ending inventory of 70 percent of next month's cost of sales. Beginning inventory was $11,000. Sales for January next year are expected to be $40,000. Sales in the previous November and December were $29,000 and $28,000, respectively. Expenses include advertising expense of $900, depreciation expense of $800, interest expense of $1,000, payroll expense of $8,000, supplies expense of $500, and utilities expense of $600 per month throughout the year. All expenses except depreciation are paid in the month during which they are incurred. Collections in the month of sale are expected to be 50 percent, collections in the first month following a sale 40 percent, and in the second month 10 percent. Payments in the month of purchase are expected to be 75 percent, payments in the first month following a purchase 15 percent, and payments in the second month to 154 155 be 10 percent. Purchases in the previous November and December were $16,000 and $17,000, respectively. Proceeds from the $100,000 loan are expected in June, and $100,000 of equipment will be purchased in July. Monthly payments of $1,400 on the loan also begin in July. The beginning cash balance in January was $22,000. Using the ch6-04 file to start your work, create a cash budget (as you did in the chapter) that is based on the assumptions listed in the previous paragraph. Use Excel's grouping feature to group operating cash receipts, operating cash payment, cash from (to) operating activities, cash from (to) investing activities, and cash from (to) financing activities and also to group the twelve monthly columns together. Save your file as ch6-04_student_name (replacing student_name with your name). a. Print the newly completed worksheet in Value view, with your name and date printed in the lower left footer and the file name in the lower right footer. b. Print the worksheet from part a, above, in Formula view, with your name and date printed in the lower left footer and the file name in the lower right footer. Print only columns A and B of the cash budget, no assumptions. c. Collapse rows to level 2 and columns to level 1, and then print the worksheet in Value view with your name and date printed in the lower left footer and the file name in the lower right footer. Print cash budget only, no assumptions. d. Collapse rows to level 2 and columns to level 1, and then use what-if analysis to calculate end-of-year cash if the sales growth each month were 5 percent and payroll expense were $20,000 per month. Print the resulting worksheet in Value view, with your name and date printed in the lower left footer and the file name in the lower right footer. Print cash budget only, no assumptions. e. Undo the what-if analysis performed in part d. Collapse rows to level 2 and columns to level 1, and then use goal seek to determine what sales growth would be needed to produce an ending cash balance of $100,000. Print the resulting worksheet in Value view with your name and date printed in the lower left footer and the file name in the lower right footer. Print cash budget only, no assumptions. Check figures: All figures are for the YEAR: Operating cash receipts: $396,955 Cash payments for purchase: $224,121 Ending Cash: $54,434
Question 2
INDIVIDUAL POLICY MANUAL/RESEARCH PAPER Instead of being a traditional research paper, this two-part project will allow you to sharpen your critical thinking skills as well as focus more on your specific interests. This should prove to be a more efficient use of your time. Here are the details: Part 1 - The Policy Manual (4 specific elements of a policy manual): 1. Assume that you a member of an HR consulting team providing HRM consultation for a new small business that will have 4?10 employees (full-time and part-time). 2. The business will open soon and you are now developing a policy manual/employee handbook. 3. Select 4 issues that you will want to include in the policy manual that corresponds with the general topics addressed in the text. Write a relevant policy for each issue that you believe would be needed in your business. Remember, this is a policy not a procedure. This is not to be an all-inclusive policy manual. You are only providing 4 elements of a policy manual for the purpose of this course. 4. Write your policy for each issue and format it the way you would like to include it in your policy manual. Write a policy that is truly meaningful and useful to you and that reflects your personal philosophy. You are a strategic partner to the business owner, and this should be an area that you want to make sure to cover. However, do not write it as a contract between two individuals. A policy manual is provided to employees from the standpoint of the organization. 5. Your submission for Part 1 needs to be 5?6 pages in length plus the cover sheet. Do not submit a paper longer than this length ? points will be deducted for each page over the 6 page limit. 6. Manuals are due by 11:59 p.m. (ET) on Sunday of Module/Week 6. Be aware: late projects will be penalized regardless of reason given. Part 2 - The Research Paper (researched rationale and support for your policy manual): 7. The second part of your project is to provide your own philosophy and researched rationale for the nature and substance of your policy written in a research paper (APA format). This paper is to be reflective of an academic research paper. You will not include references to the fictitious company specifically in this paper. Write a research paper (in APA writing style) addressing the reasoning (rationale) for the inclusion of the four policy elements in a policy manual. Why should these elements be in a policy manual? What laws or guidelines mandate an organization follow these guidelines? And so forth? 8. Support your rationale with at least 10 scholarly references, your textbook, and the Bible. (If you are unsure what constitutes a scholarly resource, please ask your professor.) 9. This APA formatted paper should be 7?10 pages, plus cover, abstract, and references. Do not submit a paper longer than this length. Points will be deducted for each page over the 10-page limit (for the body of the paper). The point is to provide a concise researched rationale. 10. Remember to use APA format for citing all of your references. A grade of an ?A? will not be given if this format is not followed. You must also write in third person. 11. Here are the broad text topics you may use as a basis for formulating your policy. You may use the more general topic or a sub-category of one of the following: a. Ch. 1: Emerging HR Challenges (a variety of issues) b. Ch. 2: Work Flow or Job Analysis c. Ch. 3: Equal Opportunity (or some other legal issue addressed) d. Ch. 4: Diversity e. Ch. 5: Recruitment and Selection f. Ch. 6: Employee Separations, Downsizing and Outplacement g. Ch. 7: Performance Appraisal h. Ch. 8: Training i. Chs. 9-17: and so forth . . . 12. The research paper is due by 11:59 p.m. (ET) on Sunday of Module/Week 6 and is to be submitted along with the policy manual. Be aware: late projects will be penalized regardless of reason given. GRADING CRITERIA FOR THE INDIVIDUAL POLICY MANUAL/ RESEARCH PAPER Format/APA/Grammar-Punctuation: (45 points) ? 12-point, Times-New-Roman font (no bold or underlining) ? Is the appropriate font utilized consistently? ? 1-inch margins ? Are the margins accurate and consistent? ? Accurately spelled words, appropriate grammar and punctuation ? Are the punctuation marks correctly utilized? ? Are the verb tenses accurate? ? Is the subject-verb agreement accurate? ? Appropriate indentations ? Appropriate spacing (double-spaced consistently) ? Complete sentences ? Are there fragmented sentences? ? Are there run-on sentences? ? Are the sentences/paragraphs logical? ? Is the answer/response easy to read? ? Third person format ? Appropriate elements (APA level headings, cover sheet, abstract, etc.) ? APA formatted in-text citations and references (for the rationale) ? Are in-text citations and matching references included for every element utilized from another source? ? Are the in-text citations and references accurately formatted utilizing the APA writing style? ? Content: (105 points) ? Logical application of the topic chosen ? Is the analysis of the topic relevant? ? Have the topics been addressed through an analysis, synthesis, and evaluation of applicable elements? ? Explicit and concise explanation (Do not assume your employees will know what you are saying ? give details!) ? Does the project contain each of the required components? ? Is the project supported by the minimum sources required (the textbook, 10 outside sources, and the Bible)? ? Does the analysis of the topic include assessment/analysis of your Christian worldview? ? Have all applicable regulations and laws been considered and discussed? Remember, your grade depends on MBA level, quality work. Do not expect a passing grade for this project if it is not apparent you have put forth great effort and diligently followed directions!
Question 3
PROBLEM 3 Progressive Home Health Care Inc. is a for-profit provider of home health care services in the Pacific Northwest. At present, it has EBIT of $2 million per year, no debt, and a market value of approximately $12 million. Although management is pleased with the good financial condition of Progressive, they are also concerned that the firm might be the target of a potential hostile takeover by a large competitor. Therefore, Progressive is considering issuing debt to buy back shares, the interest on which would be tax deductible (its tax rate is 40 percent). Management recognizes that as the amount of debt increases, both the value of the firm and the risk of financial distress increase. The CFO estimates that the present value of any future financial distress costs is $8 million, and that the probability of distress increases with the amount of debt in the following steps: Probability of financial Value of debt distress 0 0% $2,500,000 1% $5,000,000 2% $7,500,000 4% $10,000,000 8% $12,500,000 16% $15,000,000 32% $20,000,000 64% a. What is Progressive's cost of equity and corporate cost of capital now? b. According to MM with corporate taxes, what is the optimal level of debt? c. According to MM with corporate taxes and financial distress, what is the optimal level of debt? d. Plot the value of Progressive, with and without the costs of financial distress, as a function of the amount of debt. Why do the lines differ in shape?
Question 4
Newbirth Coatings Company purchased waterproofing equipment on Jan.2,2009, for 380,000. The equipment was expected to have a useful life of four years, or 8,000 operating hours, and a residual value of 36,000. The equipment was used for 3,000 hours during 2009, 2,500 hours in 2010,1,400 hours in 2011, and 1,100 hours in 2012. instructions Determine the amount of depreciation expense for the years endedDecember 31, 2009, 2010, 2011and 2012 by (a)the straight-line method, (B) the units of production method, and (c) the double-declining-balance method. Also determine the total depreciation expense for the four years by each method. The following columnar headings are suggested for recording the depreciation expense amounts. PR-10-2A obj.2 a. 2009: straight-line depreciation 86,000 PR 10-6A Amortization and depletion entries obj.4,5 b. 33,750 Data related to the acquisition of timber rights and intangible assets during the current year ended cec. 31 are as follows; a. on Dec. 31, the company determined that 20,000,000 of goodwill was impaired. b. Governmental and legal cost of 675,000 were incurred on june 30 in obtaining apatent with an estimated economic life of 10 years. Amortization is to be for one-half year. c. Timber rights on a tract of land were purchased for 1,665,000 on Feb. 16 . The stand of timber is estimated at 9,000,000 board feet. During the current year 2,400,000 board feet of timber were cut and sold. Instructions 1. Determine the amount of the amortization, depletion, or impairment for the current year for each of the foregoing items. 2. Journlize the adjusting entries to record the amortization, depletion, or impairment for each item. the years ene
Question 5
Customers experiencing technical difficulty with their Internet cable hookup may call an 800 number for technical support. It takes the technician between 90 seconds to 11 minutes to resolve the problem. The distribution of this support time follows the uniform distribution. (c)What percent of the problems take more than 5 minutes to resolve? (Do not round your intermediate calculations. Round your answer to 2 decimal places. Omit the "%" sign in your response.) percent (d)Suppose we wish to find the middle 50 percent of the problem-solving times. What are the end points of these two times? (Do not round your intermediate calculations. Round your answers to 3 decimal places.) End point 1 End Point 2,Customers experiencing technical difficulty with their Internet cable hookup may call an 800 number for technical support. It takes the technician between 90 seconds to 11 minutes to resolve the problem. The distribution of this support time follows the uniform distribution. (a) What are the values for a and b in minutes? (Do not round your intermediate calculations. Round your answer to 1 decimal place.) (b-1)What is the mean time to resolve the problem? (Do not round your intermediate calculations. Round your answer to 2 decimal places.) (b-2)What is the standard deviation of the time? (Do not round your intermediate calculations. Round your answer to 2 decimal places.) Solution: (a) Here lower limit, a = 90/60 = 1.5 minutes & upper limit, b = 11 minutes (b) The mean time to resolve the problem is = (b+a)/2 = (11+1.5)/2 = 6.25 minutes (c) The standard deviation of the time = (b-a)/?12 = (11-1.5)/?12 = 2.7424 minutes
