See the attached file. 2) In order to sell HW solutions for students of ACCT 400 Fall 2008 semester, a company may advertise heavily on TV, radio, and newspaper (the cost of advertising paid today, May 2007 is $2,400,000), may advertise a little on radio and newspapers (the cost is $250,000 paid today), or may not advertise at
Working Capital, Cash Conversion Cycle - SKI. See attached file for full problem description.
Harry and Melissa Jacobson produce handcrafted furniture in a workshop on their farm. They have 'obtained a load of 600 board feet of birch from a neighbor and are planning to produce round kitchen tables and ladder-back chairs during the next three months. Each table will require 30 hours of labor, each chair will require 18 ho
2) You are considering buying a new car after graduation. The first option is a Mercedes E320 Bluetec (you like the bio-diesel idea), which will cost you $50,000, and last 10 years. The other option is a Chevy Tahoe (better for hunting season), which will cost you $30,000, but last only five years. Assume that these prices inclu
Explain to Xtreme Toys® management how rising sales could cause a decrease in the company's cash position and provide three specific recommendations to management on ways to reduce the cash gap.
Former G.E. Chairman Jack Welch is highly sought after as a guest speaker. His fee can run as high as $100,000 for a single two-hour appearance. Recently, he was asked to speak at a seminar offered by the National Education Foundation (NEF). Due to the charitable nature of the organization, Mr. Welch offered to speak for $75,0
The weighted average cost of capital for firm X is currently 10%. Firm X is considering a new project but must raise new debt to finance the project. Debt represents 25% of the capital structure. If the after-tax cost of debt will rise from 7% to 8%, what is the marginal cost of capital? A) 10.25% B) 10.75% C) 12.00%
A firm's stock is selling for $78. The next annual dividend is expected to be $2.70. The growth rate is 9%. The flotation cost is $5.00. What is the cost of retained earnings? A) 13.09% B) 12.46% C) 12.75% D) none of the above.
Please read the following pertaining to the case: The following is an excerpt from a press conference with Marv Throneberry, CEO of Gargantua: "Gargantua had a breakthrough year in 2008. Earnings increased for the 5th straight year, earnings per share were almost 50% higher than in any previous year, Return on Equity was at
Luster Company uses the weighted-average method in its process costing system. Operating data for the first processing department for the month of June appear below: Percentage
18. In a purchase transaction where cost is less than fair market value, which statement is true? A) Negative goodwill is recorded. B) A deferred credit is recorded. C) Long-term assets of the acquired company are reduced in proportion to their fair market values. Any excess is recorded as a deferred credit. D) Long-ter
1. I.G. Farben has 600 units in works in progress and 500 units in finished inventory. The following represents a snippet of their balance sheet. How might you improve their management of assets? Pay particular attention to JIT, TQM, process reengineering, and financial strategies. What else could you suggest to enhance the orga
The consulting firm Arthur D. Little International recently prepared for the Czech government a cost-benefit analysis of smoking in that country. The report concluded that the net benefit of smoking was positive, in part because smoking causes premature death, which saves the government money on the care of retirees. Evaluate th
Use the attachment detail to calculate the following: Calculate the following: a) Inventory conversion period b) Payables deferral period c) Receivables conversion period d) Operating cycle e) Cash conversion cycle (cash gap) f) If the company's cost of funds is 8%, what is the annual
List six major factors that distinguish financial management in firms operating entirely within a single country from those that operate in several different countries. What are some of the common barriers to entry for a firm entering a new country for business? How does this vary from country to country.
Use the following to answer questions 11-15: Scotia Credit Checks produces two styles of credit reports: Individual and Corporate. The difference between the two is the amount of background information and data collection required. The Corporate report uses more skilled personnel because additional checking and data are req
0. Postage expense for a broom manufacturer 1-2. Materials used for specific jobs 3-4. Factory labor incurred on non-specific jobs 5-6. Cash paid for factory utilities costs incurred 7-8. Rental cost on the factory building 9-10. Design costs for the new product line 11-12. Accounting Department salaries
See attached file for full problem description. Savanah Machine Tool Company has an automated production process, and production activity is quantified in terms of machine hours. It uses a standard-costing system. The annual static budget for 20x6 called for 6,000 units to be produced, requiring 30,000 machine hours. The stan
Compare and contrast various cost classifications, behaviors, and drivers. You may want to consider what types of financial and nonfinancial performance metrics you will be recommending to be sure we are collecting appropriate costs.
Transfer pricing, general guideline, goal congruence (CMA, adapted) Nogo Motors, Inc, operates as decentralized multi division company. The Igo Division of Nogo Motors purchases most of its airbags from the Airbag Division. The Airbag Divisions incremental costs for manufacturing the airbags are $110 per unit. The Airba
Transfer-pricing methods, goal congruence British Columbia Lumber has a Raw Lumber Division and a Finished Lumber Division. The variable costs are: *Raw Lumber Division: $100 per 100 board-feet of raw lumber *Finished lumber Division: $125 per 100 board-feet of finished lumber Assume that there is no board-feet loss in
Snappy Tiles is a small distributor of marble tiles. Snappy identifies its three major activities and cost pools as ordering, receiving and storage, and shopping, and reports the following details for 2003: Quantity of Cost per Unit of Activity Cost Driver Cost Driver Cost Driver 1. Placing and paying
University Bookstore is a nonprofit retail outlet for textbooks, computers, and general merchandise (including trade books, supplies, and university-licensed apparel and gifts). It is located near the main campus of State University and controls the majority of the local market share for new and used textbooks. Other retail o
TAX ACCT Problems (Capital Gain/losses) Corporation A reports the following: 20*1 20*2 20*3 20*4 Ordinary income $1,000 $1,000 $1,000 $1,000 Capital gain 40 30 20 Capital Loss 100 Compu
What are the advantages/ disadvantages of both the equity and cost methods?
Merck & Co., Inc. (A) 1. What are the major problems with Merck's performance appraisal and salary administration program? 2. How are the levels of salaries determines at Merck? What's a campa-ratio? 3. Is pay for performance exists under the current system? 4. Would an employee with superior performance year after y
List a cost that is not impacted by the future?
What is the cash conversion cycle for a firm with $3million average inventories. $1.5 million average accounts payable, a receivables period of 40 days, and an annual cost of goods sold of $18million a. 14.59 days b. 46.25 days c. 70.41 days d. 136.25 days
ABC wholesale, customer profitability. Villeagas Wholesalers sell furniture items to four department-store chains. Mr. Villeagas commented, We apply ABC to determine product-line profitability. The same ideas apply to customer profitability, and we should find out our customer profitability a well." Villeagas Wholesalers sen
What is the cash conversion cycle for a firm with $3million average inventories, $1.5million average accounts payable, a receivables period of 40 days, and an annual cost of goods sold of $18 million? a. 14.59 days b. 46.25 days c. 70.41 days d. 136.25 days