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Immediate access to solutions for ENTIRE COURSES, FINAL EXAMS and HOMEWORKS “RATED A+" - Without Registration!
http://finishedexams.com/homework_text.php?cat=1798
Immediate access to solutions for ENTIRE COURSES, FINAL EXAMS and HOMEWORKS “RATED A+" - Without Registration!
Stayer pad 505 assignment 1 the operating budget newtrentPhillipss
pad 505 week 1 discussion 1 the craft of budgeting new,pad 505 week 1 discussion 2 government budgeting and expenditures new,strayer pad 505,pad 505,strayer pad 505 week 1 tutorial,pad 505 week 1 assignment,strayer pad 505 week 1 help
1. (TCO 1) Which of the following sets of SQL clauses represent the minimum combination of clauses to make a working SQL statement? (Points : 5)
SELECT, WHERE
FROM, WHERE
SELECT, FROM
FROM, ORDER BY
Strayer pad 505 assignment 1 the operating budget newtrentPhillipss
pad 505 week 1 discussion 1 the craft of budgeting new,pad 505 week 1 discussion 2 government budgeting and expenditures new,strayer pad 505,pad 505,strayer pad 505 week 1 tutorial,pad 505 week 1 assignment,strayer pad 505 week 1 help
Strayer pad 505 assignment 1 the operating budget newuopassignment
stayer pad 505 assignment 1 the operating budget new,pad 505 assignment 1,stayer pad 505 assignment 1 tutorial,stayer pad 505 assignment 1 assignment,stayer pad 505 assignment 1 help
http://finishedexams.com/homework_text.php?cat=1799
Immediate access to solutions for ENTIRE COURSES, FINAL EXAMS and HOMEWORKS “RATED A+" - Without Registration!
http://finishedexams.com/homework_text.php?cat=1798
Immediate access to solutions for ENTIRE COURSES, FINAL EXAMS and HOMEWORKS “RATED A+" - Without Registration!
Stayer pad 505 assignment 1 the operating budget newtrentPhillipss
pad 505 week 1 discussion 1 the craft of budgeting new,pad 505 week 1 discussion 2 government budgeting and expenditures new,strayer pad 505,pad 505,strayer pad 505 week 1 tutorial,pad 505 week 1 assignment,strayer pad 505 week 1 help
1. (TCO 1) Which of the following sets of SQL clauses represent the minimum combination of clauses to make a working SQL statement? (Points : 5)
SELECT, WHERE
FROM, WHERE
SELECT, FROM
FROM, ORDER BY
Strayer pad 505 assignment 1 the operating budget newtrentPhillipss
pad 505 week 1 discussion 1 the craft of budgeting new,pad 505 week 1 discussion 2 government budgeting and expenditures new,strayer pad 505,pad 505,strayer pad 505 week 1 tutorial,pad 505 week 1 assignment,strayer pad 505 week 1 help
Strayer pad 505 assignment 1 the operating budget newuopassignment
stayer pad 505 assignment 1 the operating budget new,pad 505 assignment 1,stayer pad 505 assignment 1 tutorial,stayer pad 505 assignment 1 assignment,stayer pad 505 assignment 1 help
Final Paper Focus of the Final PaperWrite a five-to seven-.docxmydrynan
Final Paper
Focus of the Final Paper
Write a five-to seven-page financial statement analysis of a public company, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis you will discuss the financial health of this company with the ultimate goal of making a recommendation to other investors. Your paper should consist of the following sections: introduction, company overview, horizontal analysis, ratio analysis, final recommendation, and conclusions. Your paper needs to include a minimum of two scholarly resources in addition to the textbook as references.
Here is a breakdown of the sections within the body of the assignment:
Company Overview
Provide a brief overview of your company (one to two paragraphs at most). What industry is it in? What are its main products or services? Who are its competitors?
Horizontal Analysis of Income Statement and Balance Sheet
Prepare a three-year horizontal analysis of the income statement and balance sheet of your selected company. Discuss the importance and meaning of horizontal analysis. Discuss both the positive and negative trends presented in your company.
Ratio Analysis
Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period. Discuss and interpret the ratios that you calculated. Discuss potential liquidity issues based on your calculations of the current and quick ratios. Are there any factors that could be erroneously influencing the results of the ratios? Discuss liquidity issues of competitive companies within the same industry.
Recommendation
Based on your analysis would you recommend an individual invest in this company? What strengths do you see? What risks do you see? It is perfectly acceptable to state that you would recommend avoiding this company as long as you provide support for your position.
Writing the Final Paper
1. Must be five to seven double-spaced pages in length, and formatted according to APA style as outlined in the Ashford Writing Center.
2. Must include a title page with the following:
a. Title of paper
b. Student’s name
c. Course name and number
d. Instructor’s name
e. Date submitted
3. Must begin with an introductory paragraph that has a succinct thesis statement.
4. Must address the topic of the paper with critical thought.
5. Must end with a conclusion that reaffirms your thesis.
6. Must document all sources in APA style, as outlined in the Ashford Writing Center.
7. Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.
QUESTION 1
Managerial accounting information
A.
is prepared only once a year.
B.
pertains to subunits of the entity and may be very detailed.
C.
is constrained by the requirements of generally accepted accounting principles.
D.
pertains to the entity as a whole and is highly aggregated.
6 points
QUESTION 2
The wages of a timekee ...
Article Reviews each class will typically offer at least one arti.docxfredharris32
Article Reviews: each class will typically offer at least one article that you are expected to read and which will be discussed during class. You may choose up to 5 articles during the semester and prepare a concise 2 page maximum essay (plus a cover sheet, cites page with full cites of the article and any other resources used, and any attached or embedded exhibits) to summarize key points in the article and how they apply specifically to the strategy and simulation decision-making for your team in J411. Graded essays submitted via the OnCourse Assignments tab and discussed by the author in class by the deadline earn up to 20 points each (15 points max if late or if not discussed).
Monthly Profit Report Trad'lPERFORMANCE DRINKS - MONTHLY PROFIT REPORTBasicHydrationIntensityPost WorkoutTotalREVENUE Sales$ 125,000$ 120,000$ 74,250$ 93,000$ 412,250COSTS Direct Materials$ 40,000$ 50,000$ 31,000$ 33,000$ 154,000 Direct Labor$ 25,000$ 20,000$ 10,000$ 18,000$ 73,000 Fringe Benefits on Direct Labor$ 11,250.00$ 9,000.00$ 4,500.00$ 8,100.00$ 32,850.00 Manufacturing Overhead$ 43,750.00$ 35,000.00$ 17,500.00$ 31,500.00$ 127,750.00 TOTAL COST$ 120,000.00$ 114,000.00$ 63,000.00$ 90,600.00$ 387,600.00GROSS MARGIN$ 5,000.00$ 6,000.00$ 11,250.00$ 2,400.00$ 24,650.00GROSS MARGIN RATIO4.00%5.00%15.15%2.58%5.98%Annual Volume:100,00080,00045,00060,000285,000Unit Price:$ 1.25$ 1.50$ 1.65$ 1.55$ 1.45Unit Cost:$ 1.200$ 1.425$ 1.400$ 1.510$ 1.360
Mfg OHDPERFORMANCE DRINKS - MONTHLY MFG OHD COST REPORTMonthly ChargeIndirect Labor$ 55,000.00Fringe Benefits on Indirect Labor$ 24,750.00Utilities$ 5,000.00Processing Equipment - Depreciation$ 10,000.00Preventative Maintenance$ 10,000.00Information Technology$ 23,000.00Total$ 127,750.00
ACCT640 – Managerial Accounting
Fall 2013
Case #2 – Performance Drinks: Applying Activity Based Costing
Background:
Performance Drinks, LLC is owned by Dave N. Port. Performance Drinks produces a variety of sports centered drinks. They began operations in 1993 shortly after Mr. Port graduated with his M.B.A. from Davenport University. The company saw early success as sports and fitness nutritional products gained new popularity in the 1990’s. Financially the company is sound and has been wise in controlling their growth over the years. However, within the last 18 months Mr. Port has noticed a drop in overall company profitability. This is especially troubling considering that the company has continued to experience top-line growth. Mr. Port and his management team have been considering developing a new product line. However, those plans have been put on hold until they can figure out why their profits are shrinking.
Performance Drinks makes four different kinds of sports drinks. Those drinks are as follows:
· Basic
· Hydration
· Intensity
· Post-Workout
Each of these drinks contains a slightly different nutr ...
1 CIS105 Survey of Computer Information Systems Fi.docxmercysuttle
1
CIS105 Survey of Computer Information Systems
Final Project Rubric
Grading will be based upon the accuracy of your work, the appearance of your work, and how well
you apply the features you learned throughout the course. You are to complete and submit all
assessments for this project. Points will be granted in each of the categories listed below.
NOTE: You are only allowed to submit the Final Project once, so do your best work!
Category Description Possible
Points
MS Word
The document will be reviewed based on the successful completion of the
following:
• Use of Header and Footer
• Table of Contents
• Description of your experience completing the Final Project
• Formatting of text
• Correct file name
0-15
MS PowerPoint
The presentation will be reviewed based on the successful completion of the
following:
• Application of a theme
• Using of clipart
• Applying animation
• Adding slides
• Correct file name
0-15
MS Excel
The spreadsheet will be reviewed based on the successful completion of the
following:
• Calculating totals
• Applying formatting
• Computing data using formulas
• Computing data using functions
0-20
MS Access
The database will be reviewed based on the successful completion of the
following:
• Creating a report
• Querying data
• Customizing the look of a report
0-20
CIS105 At-Home Final Exam Part 1: Project – 70 points
1
MICROSOFT WORD (15 points)
You will create a business portfolio using the tools in MS Word to go with your Final
Exam for CIS105. You will demonstrate your ability to work with the features of MS
Word by creating a document, inserting a table of contents, and describing your
final exam.
a) Create a new document.
b) Create a Title Page with the following information centered on the page:
a. Your First and Last Name
b. Course and Section Number
c. Date
c) Add your MEID as a footer.
d) Insert a Table of Contents.
e) Create a section for each of the components of the Final Exam.
a. PowerPoint Presentation
b. Excel Spreadsheet
c. Access Database
f) For each section, write at least one paragraph describing the outcome of each
assignment on the Final Project.
a. What worked well?
b. What did you struggle with?
c. How long did it take you to complete the assignment?
g) Make sure that each of the three topics above are referenced in the Table of
Contents and set to automatically update.
h) Apply bold formatting to one item.
i) Apply italics to at least one item.
j) Apply Arial 12 point font to the entire document.
k) Save the file as Portfolio_YourName.docx.
CIS105 At-Home Final Exam Part 1: Project – 70 points
2
MICROSOFT POWERPOINT (15 points)
You will be creating a presentation for Buena Vista Apartments. You are presenting
an overview of the financial outlook for the company. The presentation will include
specific points you want t ...
For more course tutorials visit
www.newtonhelp.com
Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books;
BA 620 Managerial Finance Group Problem Set 2 (125 poi.docxrosemaryralphs52525
BA 620 Managerial Finance
Group Problem Set 2 (125 points)
This problem Set is based on materials covered in modules 5, 6, and 7. It is designed
for you to demonstrate your understanding and be able to apply basic capital budgeting
concepts, working capital management, dividend policy, and international financial
management.
Part 1: Capital Budgeting Analysis
Adams, Incorporated would like to add a new line of business to its existing retail
business. The new line of business will be the manufacturing and distribution of animal
feeds. This is a major capital project. Adams, Incorporated is aware you an in an MBA
program and would like you to help analysis the viability of this major business venture
based on the following information:
• The production line would be set up in an empty lot the company owns.
• The machinery’s invoice price would be approximately $200,000, another
$10,000 in shipping charges would be required, and it would cost an additional
$30,000 to install the equipment.
• The machinery has useful life of 4 years, and it is a MACRS 3-year asset.
• The machinery is expected to have a salvage value of $25,000 after 4 years of
use.
• This new line of business will generate incremental sales of 1,250 units per year
for 4 years at an incremental cost of $100 per unit in the first year, excluding
depreciation. Each unit can be sold for $200 in the first year. The sales price
and cost are expected to increase by 3% per year due to inflation.
• Net working capital would have to increase by an amount equal to 12% of sales
revenues. The firm’s tax rate is 40%, and its overall weighted average cost of
capital is 10%.
Required:
1. If the company spent $40,000 last year in the upkeep of the empty lot, should this
cost be included in the analysis? Why or why not?
2. Disregard the assumptions in part 1 above. What is the machinery’s depreciable
basis? What are the annual depreciation expenses?
3. Calculate the annual sales revenues and costs (other than depreciation).
4. Construct annual incremental operating cash flow statements.
5. Estimate the required net working capital for each year based on sales for the
following year. Working capital will be recovered at the end of year 4.
6. Calculate the after-tax salvage cash flow.
7. Calculate the net cash flows for each year. Based on these cash flows, what are
the project’s NPV, IRR, Profitability Index (PI), and payback?
8. Can you use the Payback method to decide whether this is a good project or
not? Why or why not?
9. Interpret what NPV, IRR, and Profitability Index (PI) mean. Based on your
interpretation, do these indicators suggest the new business line should be
undertaken?
Part 2: Working Capital Management
1. Adams Stores, Inc. is trying to determine the effect of its inventory turnover ratio and days
sales outstanding (DSO) on its cash flow cycle. Adams’ sales last year (.
BA 620 Managerial Finance Group Problem Set 2 (125 poi.docxwilcockiris
BA 620 Managerial Finance
Group Problem Set 2 (125 points)
This problem Set is based on materials covered in modules 5, 6, and 7. It is designed
for you to demonstrate your understanding and be able to apply basic capital budgeting
concepts, working capital management, dividend policy, and international financial
management.
Part 1: Capital Budgeting Analysis
Adams, Incorporated would like to add a new line of business to its existing retail
business. The new line of business will be the manufacturing and distribution of animal
feeds. This is a major capital project. Adams, Incorporated is aware you an in an MBA
program and would like you to help analysis the viability of this major business venture
based on the following information:
• The production line would be set up in an empty lot the company owns.
• The machinery’s invoice price would be approximately $200,000, another
$10,000 in shipping charges would be required, and it would cost an additional
$30,000 to install the equipment.
• The machinery has useful life of 4 years, and it is a MACRS 3-year asset.
• The machinery is expected to have a salvage value of $25,000 after 4 years of
use.
• This new line of business will generate incremental sales of 1,250 units per year
for 4 years at an incremental cost of $100 per unit in the first year, excluding
depreciation. Each unit can be sold for $200 in the first year. The sales price
and cost are expected to increase by 3% per year due to inflation.
• Net working capital would have to increase by an amount equal to 12% of sales
revenues. The firm’s tax rate is 40%, and its overall weighted average cost of
capital is 10%.
Required:
1. If the company spent $40,000 last year in the upkeep of the empty lot, should this
cost be included in the analysis? Why or why not?
2. Disregard the assumptions in part 1 above. What is the machinery’s depreciable
basis? What are the annual depreciation expenses?
3. Calculate the annual sales revenues and costs (other than depreciation).
4. Construct annual incremental operating cash flow statements.
5. Estimate the required net working capital for each year based on sales for the
following year. Working capital will be recovered at the end of year 4.
6. Calculate the after-tax salvage cash flow.
7. Calculate the net cash flows for each year. Based on these cash flows, what are
the project’s NPV, IRR, Profitability Index (PI), and payback?
8. Can you use the Payback method to decide whether this is a good project or
not? Why or why not?
9. Interpret what NPV, IRR, and Profitability Index (PI) mean. Based on your
interpretation, do these indicators suggest the new business line should be
undertaken?
Part 2: Working Capital Management
1. Adams Stores, Inc. is trying to determine the effect of its inventory turnover ratio and days
sales outstanding (DSO) on its cash flow cycle. Adams’ sales last year (.
Final Paper Focus of the Final PaperWrite a five-to seven-.docxmydrynan
Final Paper
Focus of the Final Paper
Write a five-to seven-page financial statement analysis of a public company, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis you will discuss the financial health of this company with the ultimate goal of making a recommendation to other investors. Your paper should consist of the following sections: introduction, company overview, horizontal analysis, ratio analysis, final recommendation, and conclusions. Your paper needs to include a minimum of two scholarly resources in addition to the textbook as references.
Here is a breakdown of the sections within the body of the assignment:
Company Overview
Provide a brief overview of your company (one to two paragraphs at most). What industry is it in? What are its main products or services? Who are its competitors?
Horizontal Analysis of Income Statement and Balance Sheet
Prepare a three-year horizontal analysis of the income statement and balance sheet of your selected company. Discuss the importance and meaning of horizontal analysis. Discuss both the positive and negative trends presented in your company.
Ratio Analysis
Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period. Discuss and interpret the ratios that you calculated. Discuss potential liquidity issues based on your calculations of the current and quick ratios. Are there any factors that could be erroneously influencing the results of the ratios? Discuss liquidity issues of competitive companies within the same industry.
Recommendation
Based on your analysis would you recommend an individual invest in this company? What strengths do you see? What risks do you see? It is perfectly acceptable to state that you would recommend avoiding this company as long as you provide support for your position.
Writing the Final Paper
1. Must be five to seven double-spaced pages in length, and formatted according to APA style as outlined in the Ashford Writing Center.
2. Must include a title page with the following:
a. Title of paper
b. Student’s name
c. Course name and number
d. Instructor’s name
e. Date submitted
3. Must begin with an introductory paragraph that has a succinct thesis statement.
4. Must address the topic of the paper with critical thought.
5. Must end with a conclusion that reaffirms your thesis.
6. Must document all sources in APA style, as outlined in the Ashford Writing Center.
7. Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.
QUESTION 1
Managerial accounting information
A.
is prepared only once a year.
B.
pertains to subunits of the entity and may be very detailed.
C.
is constrained by the requirements of generally accepted accounting principles.
D.
pertains to the entity as a whole and is highly aggregated.
6 points
QUESTION 2
The wages of a timekee ...
Article Reviews each class will typically offer at least one arti.docxfredharris32
Article Reviews: each class will typically offer at least one article that you are expected to read and which will be discussed during class. You may choose up to 5 articles during the semester and prepare a concise 2 page maximum essay (plus a cover sheet, cites page with full cites of the article and any other resources used, and any attached or embedded exhibits) to summarize key points in the article and how they apply specifically to the strategy and simulation decision-making for your team in J411. Graded essays submitted via the OnCourse Assignments tab and discussed by the author in class by the deadline earn up to 20 points each (15 points max if late or if not discussed).
Monthly Profit Report Trad'lPERFORMANCE DRINKS - MONTHLY PROFIT REPORTBasicHydrationIntensityPost WorkoutTotalREVENUE Sales$ 125,000$ 120,000$ 74,250$ 93,000$ 412,250COSTS Direct Materials$ 40,000$ 50,000$ 31,000$ 33,000$ 154,000 Direct Labor$ 25,000$ 20,000$ 10,000$ 18,000$ 73,000 Fringe Benefits on Direct Labor$ 11,250.00$ 9,000.00$ 4,500.00$ 8,100.00$ 32,850.00 Manufacturing Overhead$ 43,750.00$ 35,000.00$ 17,500.00$ 31,500.00$ 127,750.00 TOTAL COST$ 120,000.00$ 114,000.00$ 63,000.00$ 90,600.00$ 387,600.00GROSS MARGIN$ 5,000.00$ 6,000.00$ 11,250.00$ 2,400.00$ 24,650.00GROSS MARGIN RATIO4.00%5.00%15.15%2.58%5.98%Annual Volume:100,00080,00045,00060,000285,000Unit Price:$ 1.25$ 1.50$ 1.65$ 1.55$ 1.45Unit Cost:$ 1.200$ 1.425$ 1.400$ 1.510$ 1.360
Mfg OHDPERFORMANCE DRINKS - MONTHLY MFG OHD COST REPORTMonthly ChargeIndirect Labor$ 55,000.00Fringe Benefits on Indirect Labor$ 24,750.00Utilities$ 5,000.00Processing Equipment - Depreciation$ 10,000.00Preventative Maintenance$ 10,000.00Information Technology$ 23,000.00Total$ 127,750.00
ACCT640 – Managerial Accounting
Fall 2013
Case #2 – Performance Drinks: Applying Activity Based Costing
Background:
Performance Drinks, LLC is owned by Dave N. Port. Performance Drinks produces a variety of sports centered drinks. They began operations in 1993 shortly after Mr. Port graduated with his M.B.A. from Davenport University. The company saw early success as sports and fitness nutritional products gained new popularity in the 1990’s. Financially the company is sound and has been wise in controlling their growth over the years. However, within the last 18 months Mr. Port has noticed a drop in overall company profitability. This is especially troubling considering that the company has continued to experience top-line growth. Mr. Port and his management team have been considering developing a new product line. However, those plans have been put on hold until they can figure out why their profits are shrinking.
Performance Drinks makes four different kinds of sports drinks. Those drinks are as follows:
· Basic
· Hydration
· Intensity
· Post-Workout
Each of these drinks contains a slightly different nutr ...
1 CIS105 Survey of Computer Information Systems Fi.docxmercysuttle
1
CIS105 Survey of Computer Information Systems
Final Project Rubric
Grading will be based upon the accuracy of your work, the appearance of your work, and how well
you apply the features you learned throughout the course. You are to complete and submit all
assessments for this project. Points will be granted in each of the categories listed below.
NOTE: You are only allowed to submit the Final Project once, so do your best work!
Category Description Possible
Points
MS Word
The document will be reviewed based on the successful completion of the
following:
• Use of Header and Footer
• Table of Contents
• Description of your experience completing the Final Project
• Formatting of text
• Correct file name
0-15
MS PowerPoint
The presentation will be reviewed based on the successful completion of the
following:
• Application of a theme
• Using of clipart
• Applying animation
• Adding slides
• Correct file name
0-15
MS Excel
The spreadsheet will be reviewed based on the successful completion of the
following:
• Calculating totals
• Applying formatting
• Computing data using formulas
• Computing data using functions
0-20
MS Access
The database will be reviewed based on the successful completion of the
following:
• Creating a report
• Querying data
• Customizing the look of a report
0-20
CIS105 At-Home Final Exam Part 1: Project – 70 points
1
MICROSOFT WORD (15 points)
You will create a business portfolio using the tools in MS Word to go with your Final
Exam for CIS105. You will demonstrate your ability to work with the features of MS
Word by creating a document, inserting a table of contents, and describing your
final exam.
a) Create a new document.
b) Create a Title Page with the following information centered on the page:
a. Your First and Last Name
b. Course and Section Number
c. Date
c) Add your MEID as a footer.
d) Insert a Table of Contents.
e) Create a section for each of the components of the Final Exam.
a. PowerPoint Presentation
b. Excel Spreadsheet
c. Access Database
f) For each section, write at least one paragraph describing the outcome of each
assignment on the Final Project.
a. What worked well?
b. What did you struggle with?
c. How long did it take you to complete the assignment?
g) Make sure that each of the three topics above are referenced in the Table of
Contents and set to automatically update.
h) Apply bold formatting to one item.
i) Apply italics to at least one item.
j) Apply Arial 12 point font to the entire document.
k) Save the file as Portfolio_YourName.docx.
CIS105 At-Home Final Exam Part 1: Project – 70 points
2
MICROSOFT POWERPOINT (15 points)
You will be creating a presentation for Buena Vista Apartments. You are presenting
an overview of the financial outlook for the company. The presentation will include
specific points you want t ...
For more course tutorials visit
www.newtonhelp.com
Case Study 1 (Part A)
Analyze the impact of business transactions on accounts; record (journalize and post) transactions in the books;
BA 620 Managerial Finance Group Problem Set 2 (125 poi.docxrosemaryralphs52525
BA 620 Managerial Finance
Group Problem Set 2 (125 points)
This problem Set is based on materials covered in modules 5, 6, and 7. It is designed
for you to demonstrate your understanding and be able to apply basic capital budgeting
concepts, working capital management, dividend policy, and international financial
management.
Part 1: Capital Budgeting Analysis
Adams, Incorporated would like to add a new line of business to its existing retail
business. The new line of business will be the manufacturing and distribution of animal
feeds. This is a major capital project. Adams, Incorporated is aware you an in an MBA
program and would like you to help analysis the viability of this major business venture
based on the following information:
• The production line would be set up in an empty lot the company owns.
• The machinery’s invoice price would be approximately $200,000, another
$10,000 in shipping charges would be required, and it would cost an additional
$30,000 to install the equipment.
• The machinery has useful life of 4 years, and it is a MACRS 3-year asset.
• The machinery is expected to have a salvage value of $25,000 after 4 years of
use.
• This new line of business will generate incremental sales of 1,250 units per year
for 4 years at an incremental cost of $100 per unit in the first year, excluding
depreciation. Each unit can be sold for $200 in the first year. The sales price
and cost are expected to increase by 3% per year due to inflation.
• Net working capital would have to increase by an amount equal to 12% of sales
revenues. The firm’s tax rate is 40%, and its overall weighted average cost of
capital is 10%.
Required:
1. If the company spent $40,000 last year in the upkeep of the empty lot, should this
cost be included in the analysis? Why or why not?
2. Disregard the assumptions in part 1 above. What is the machinery’s depreciable
basis? What are the annual depreciation expenses?
3. Calculate the annual sales revenues and costs (other than depreciation).
4. Construct annual incremental operating cash flow statements.
5. Estimate the required net working capital for each year based on sales for the
following year. Working capital will be recovered at the end of year 4.
6. Calculate the after-tax salvage cash flow.
7. Calculate the net cash flows for each year. Based on these cash flows, what are
the project’s NPV, IRR, Profitability Index (PI), and payback?
8. Can you use the Payback method to decide whether this is a good project or
not? Why or why not?
9. Interpret what NPV, IRR, and Profitability Index (PI) mean. Based on your
interpretation, do these indicators suggest the new business line should be
undertaken?
Part 2: Working Capital Management
1. Adams Stores, Inc. is trying to determine the effect of its inventory turnover ratio and days
sales outstanding (DSO) on its cash flow cycle. Adams’ sales last year (.
BA 620 Managerial Finance Group Problem Set 2 (125 poi.docxwilcockiris
BA 620 Managerial Finance
Group Problem Set 2 (125 points)
This problem Set is based on materials covered in modules 5, 6, and 7. It is designed
for you to demonstrate your understanding and be able to apply basic capital budgeting
concepts, working capital management, dividend policy, and international financial
management.
Part 1: Capital Budgeting Analysis
Adams, Incorporated would like to add a new line of business to its existing retail
business. The new line of business will be the manufacturing and distribution of animal
feeds. This is a major capital project. Adams, Incorporated is aware you an in an MBA
program and would like you to help analysis the viability of this major business venture
based on the following information:
• The production line would be set up in an empty lot the company owns.
• The machinery’s invoice price would be approximately $200,000, another
$10,000 in shipping charges would be required, and it would cost an additional
$30,000 to install the equipment.
• The machinery has useful life of 4 years, and it is a MACRS 3-year asset.
• The machinery is expected to have a salvage value of $25,000 after 4 years of
use.
• This new line of business will generate incremental sales of 1,250 units per year
for 4 years at an incremental cost of $100 per unit in the first year, excluding
depreciation. Each unit can be sold for $200 in the first year. The sales price
and cost are expected to increase by 3% per year due to inflation.
• Net working capital would have to increase by an amount equal to 12% of sales
revenues. The firm’s tax rate is 40%, and its overall weighted average cost of
capital is 10%.
Required:
1. If the company spent $40,000 last year in the upkeep of the empty lot, should this
cost be included in the analysis? Why or why not?
2. Disregard the assumptions in part 1 above. What is the machinery’s depreciable
basis? What are the annual depreciation expenses?
3. Calculate the annual sales revenues and costs (other than depreciation).
4. Construct annual incremental operating cash flow statements.
5. Estimate the required net working capital for each year based on sales for the
following year. Working capital will be recovered at the end of year 4.
6. Calculate the after-tax salvage cash flow.
7. Calculate the net cash flows for each year. Based on these cash flows, what are
the project’s NPV, IRR, Profitability Index (PI), and payback?
8. Can you use the Payback method to decide whether this is a good project or
not? Why or why not?
9. Interpret what NPV, IRR, and Profitability Index (PI) mean. Based on your
interpretation, do these indicators suggest the new business line should be
undertaken?
Part 2: Working Capital Management
1. Adams Stores, Inc. is trying to determine the effect of its inventory turnover ratio and days
sales outstanding (DSO) on its cash flow cycle. Adams’ sales last year (.
1. ACC/206 Week 5 Assignment Final Paper
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week-5-assignment-final-paper/
Business - Accounting
Final Paper
Focus of the Final Paper
You’ve just been hired onto ABC Company as the corporate controller. ABC Company is a
manufacturing firm that specializes in making cedar roofing and siding shingles. The company
currently has annual sales of around $1.2 million, a 25% increase from the previous year. The
company has an aggressive growth target of reaching $3 million annual sales within the next 3
years. The CEO has been trying to find additional products that can leverage the current ABC
employee skillset as well as the manufacturing facilities.
As the controller of ABC Company, the CEO has come to you with a new opportunity that he’s
been working on. The CEO would like to use the some of the shingle scrap materials to build
cedar dollhouses. While this new product line would add additional raw materials and be more
time-intensive to manufacture than the cedar shingles, this new product line will be able to
leverage ABC’s existing manufacturing facilities as well as the current staff. Although this
product line will require added expenses, it will provide additional revenue and gross profit to
help reach the growth targets. The CEO is relying on you to help decide how this project can be
afforded Provide details about the estimated product costs, what is needed to break even on the
project, and what level of return this product is expected to provide.
In order to help out the CEO, you need to prepare a six- to eight-page report that will contain the
following information (including exhibits, but excluding your references and title page). Refer to
the accompanying Excel spreadsheet (available through your online course) for some specific
cost and profit information to complete the calculations.
Final Paper Spreadsheet
I. An overall risk profile of the company based on current economic and industry issues that it
may be facing.
II. Current company cash flow
a. You need to complete a cash flow statement for the company using the direct method.
b. Once you’ve completed the cash flow statement, answer the following questions:
i. What does this statement of cash flow tell you about the sources and uses of the company?
2. ii. Is there anything ABC Company can do to improve the cash flow?
iii. Can this project be financed with current cash flow from the company? Why or why not?
iv. If the company needs additional financing beyond what ABC Company can provide internally
(either now or sometime throughout the life of the project), how would you suggest the company
obtain the additional financing, equity or corporate debt, and why?
III. Product cost: ABC Company believes that it has an additional 5,000 machine hours available
in the current facility before it would need to expand. ABC Company uses machine hours to
allocate the fixed factory overhead, and units sold to allocate the fixed sales expenses. ABC
Company expects that it will take twice as long to produce the expansion product as it currently
takes to produce its existing product.
a. What is the product cost for the expansion product?
b. By adding this new expansion product, it helps to absorb the fixed factory and sales expenses.
How much cheaper does this expansion make the existing product?
c. Assuming ABC Company wants a 40% gross margin for the new product, what selling price
should it set for the expansion product?
d. Assuming the same sales mix of these two products, what are the contribution margins and
break-even points by product?
IV. Potential investments to accelerate profit: ABC company has the option to purchase
additional equipment that will cost about $42,000, and this new equipment will produce the
following savings in factory overhead costs over the next five years:
Year 1, $15,000
Year 2, $13,000
Year 3, $10,000
Year 4, $10,000
Year 5, $6,000
ABC Company uses the net-present-value method to analyze investments and desires a minimum
rate of return of 12% on the equipment.
a. What is the net present value of the proposed investment ignore income taxes and
depreciation?
b. Assuming a 5-year straight-line depreciation, how will this impact the factory’s fixed costs for
each of the 5 years (and the implied product costs)? What about cash flow?
c. Considering the cash flow impact of the equipment as well as the time-value of money, would
you recommend that ABC Company purchases the equipment? Why or why not?
V. Conclusion:
a. What are the major risk factors that you see in this project?
b. As the controller and a management accountant, what is your responsibility to this project?
c. What do you recommend the CEO do?
Writing the Final Paper
1. Must be six to eight double-spaced pages in length, and formatted according to APA style as
3. outlined in the Ashford Writing Center.
2. Must include a title page with the following:
a. Title of paper
b. Student’s name
c. Course name and number
d. Instructor’s name
e. Date submitted
3. Must begin with an introductory paragraph that has a succinct thesis statement.
4. Must address the topic of the paper with critical thought.
5. Must end with a conclusion that reaffirms your thesis.
6. Must document all sources in APA style, as outlined in the Ashford Writing Center.
7. Must include a separate reference page, formatted according to APA style as outlined in the
Ashford Writing Center.
Carefully review the Grading Rubric for the criteria that will be used to evaluate your
assignment.