Question 1
This is a 2 part problem. Must solve problem 1 in order to solve problem 2. Please list answers in financial-statement-form. Problem 1 is attached. Problem 2 is as follows: Problem 2: Comparing Costs Use the information that you calculated in Problem #1 (the cost of a dinner -- problem #1 is on attached document) Compare the full cost of the dinner preparation for at least three people. Discuss the differences in full cost and why such differences arose. Are the assumptions made by each class member the same? Do different class members have different fixed costs? Did all class members treat the ?bottled? dressing as a variable cost? On the basis of the information accumulated, do you think you could determine a ?standard? cost of preparing the dinner? Comment, in report form, on the differences in individual person?s full cost, assumptions, the problems in distinguishing full cost, the judgments that had to be made, and any other information of interest. From the three persons costs you gathered, select (or determine) what is, in your opinion, the ?best? calculation of full cost. This could, of course, be your own calculation. Assume (unrealistically) that you are going to sell the dinner you prepared at a profit. 1. How much would you charge for the dinner? Why? 2. Assume that you prepare a dinner for yourself and for a friend at the same time and then decide to sell both dinners at a profit. Would the amount charged per dinner change? 3. In both instances (selling the single dinner and selling both dinners), how did you determine your ?profit?? Did you consider how much the buyer(s) would be willing to spend for one dinner? How many dinners would you have to prepare to ?breakeven??
Question 2
1. Garr Co. issued $5,000,000 of 12%, 5 year convertible bonds on December 1, 2010 for $5,020,800 plus accrued interest. The bonds were dated April 1, 2010 with interest payable April 1 and October 1. Bond premium is amortized each interest period on a straight-line basis. Garr Co. has a fiscal year end of September 30. On October 1, 2011, $2,500,000 of these bonds were converted into 35,000 shares of $15 par common stock. Accrued interest was paid in cash at the time of conversion. Instructions (a) Prepare the entry to record the interest expense at April 1, 2011. Assume that interest payable was credited when the bonds were issued. (round to nearest $) (b) Prepare the entry to record the conversion on October 1, 2011. Assume that the entry to record amortization of the bond premium and interest payment has been made. 2. Dim Co. has bonds payable outstandin in the amount of $400,000, and the premium on bonds payable account has a balance of $6,000. Each $1,000 bond is convertible into 20 shares of preferred stock of par value of $50 per share. All bonds are converted into preferred stock. Assuming that the book value method was used, what entry would be made?
Question 3
Accounting Information Krogers: (KR) http://finance.yahoo.com/q/bs?s=KR+Balance+Sheet&annual Competitors: Wal-Mart: (WMT) http://cdn.walmartstores.com/sites/AnnualReport/2010/PDF/01_WMT%202010_Financials.pdf Target: (TGT) http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?lstStatement=Income&Symbol=US%3aTGT&stmtView=Qtr Kroger is the major company and Wal-Mart and Target are the competitors. Prepare a draft of the financial analysis for the previous 3 companies. Please submit analysis, relevant charts, diagrams, and graphics. Overall requirements: A thorough analysis would include comparisons in the common size statements and financial ratios relative to the company?s past financial results and relative to a group of leading competitors. Past results only. Conclusions that emerge from the analysis should be summarized in a professional manner. Charts, diagrams and graphics should be used throughout the report to enhance the clarity and professionalism of the document. Analysis Process The following steps describe the process for this analysis. 1. Obtain company reports and company financial statements from public sources. LexisNexis and annual reports from corporate Web sites for public companies are sources that may be useful. 2. Develop common size financial statements and compare them both through time and relative to benchmark companies for the most recent year. 3. Develop relevant financial ratios for comparison through time and for comparison to benchmark companies?no more than two. Where possible, choose companies of similar size and industry. 4. Prepare a financial statement analysis with relevant charts, diagrams, and graphics. 5. Present the analysis in a professional manner with persuasive arguments with respect to your major conclusions. Analysis Structure The project will be the completion of a financial assessment of a publicly traded company of your choice. The content of the report will be structured as follows. 1. Executive Summary with overall assessment. Characterize the strength of the company, along with the level of risk assumed. 2. Company Background. To provide context for this analysis, include a brief discussion of the company?history, a review of the key managers, and the nature of the products/services. This summary should be no more than 2 pages. 3. Operations and Products/Services. Include a brief description of the key products or services offered by the company. The primary competitors within each product/service area should be defined as discussed. How does your company fit within the industry as a whole? Are they a leader? Follower? Strong performer? Weak performer? 4. Financial Statements and Common Size Statements. Include a presentation and discussion of the financial statements and the common size statements. Provide a general discussion of the metrics in the financial statements and common size statements. Explain any substantial issues that appear on the financial statements and common size statements. Identify any material differences or variances from year to year and relative to key competitors. Three years of financial statements should be used. 5. Financial Ratios. Provide the calculation and presentation of three years of financial ratios together with the most recent financial ratios for the key competitors. You should aggregate the financial statements of the key competitors and then calculate these competitor ratios based upon this aggregated set of financial statements. You should discuss each financial ratio by referencing differences or variances of your company to the competitor ratios, and you should discuss each financial ratio by referencing differences or variances of your company to itself across time. The financial ratios of interest should be those that have been examined within our course. Project Objectives To successfully complete this project: 1. Develop common size financial statements for use in financial statement analysis. 2. Evaluate financial statements by analyzing financial ratios through time. 3. Evaluate financial statements by analyzing financial ratios relative to a benchmark company or companies. 4. Demonstrate differential/variance analysis through development of relevant financial ratios. 5. Present the analysis in a professional manner with persuasive arguments with respect to your major conclusions. Length of paper: Approximately 15 double-spaced pages including reference page in APA format. Documentation: Written analysis, relevant charts, diagrams, and graphics.,Thanking you in advance for your assistance. Wayne
Question 4
Trigen Corp. management will invest cash flows of $1,477,641, $673,553, $1,229,959, $818,400, $1,239,644, and $1,617,848 in research and development over the next six years. If the appropriate interest rate is 6.69 percent, what is the future value of these investment cash flows six years from today? (Round answer to 2 decimal places, e.g. 15.25.) You wrote a piece of software that does a better job of allowing computers to network than any other program designed for this purpose. A large networking company wants to incorporate your software into their systems and is offering to pay you $538,000 today, plus $538,000 at the end of each of the following six years for permission to do this. If the appropriate interest rate is 7 percent, what is the present value of the cash flow stream that the company is offering you? (Round answer to the nearest whole dollar, e.g. 5,275.) Present value $ ? Barbara is considering investing in a stock and is aware that the return on that investment is particularly sensitive to how the economy is performing. Her analysis suggests that four states of the economy can affect the return on the investment. Using the table of returns and probabilities below, find Probability Return -------------------------------------------------------------------------------- Boom 0.4 25.00% Good 0.4 15.00% Level 0.1 10.00% Slump 0.1 -5.00% ------------------------------------------------------------------------------- What is the standard deviation of the return on Barbara's investment? (Round intermediate calculations and answer to 5 decimal places, e.g. 0.07680.) Standard deviation __________? Trevor Price bought 10-year bonds issued by Harvest Foods five years ago for $974.99. The bonds make semiannual coupon payments at a rate of 8.4 percent. If the current price of the bonds is $1,083.50, what is the yield that Trevor would earn by selling the bonds today? (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.) Effective annual yield___________ %
Question 5
Question 1: Advertising to children in school is morally objectionable to many people. Some of the reasons used to criticize the practice include the following: First, children at school are a captive audience. Second, children are not yet autonomous and are typically unable to make the kind of rational distinctions that we attribute to adults. Third, schools have epistemic (knowledge) authority and so may be understood by children as endorsing the products. Do you believe that marketing to children in schools is morally wrong? Why, or why not? Question 2: What potential benefits do you see as important in integrating different groups that are targeted under affirmative action policies? Are these benefits sufficient to justify affirmative action policies? Why, or why not? Question 3: Explain the Kantian arguments Denis Arnold and Norman Bowie use in ?Sweatshops and Respect for Persons? to support the claim that MNEs have duties to ensure that their off-shore contract factories meet minimum safety standards and provide a living wage for employees. Explain Ian Maitland?s argument that improving health and safety conditions and improving wages will cause greater harm than good. With whom do you agree more? Explain. Question 4: Smith argues that there are valuable moral distinctions between direct, indirect, active, and passive violations of human rights. Do these distinctions make sense to you? Do you believe that corporations who merely follow the dictates of an authoritative figure are absolved of much of their moral culpability, even if their compliance knowingly leads to violations of human rights? Question 5: The right to refuse workplace hazards has a fundamental conflict with the ability of a business to operate effectively (if employees refuse to work there can be no production). How should these competing interests be balanced? Support your position with appeals to ethical theories.
