...to happen in the future. The winter historical data for the University of Phoenix covers four years of demand in actual units. Each year has been broken down to 12 months of data. The data is presented in figure 1.1 Typical Seasonal Demand for Winter Highs Actual Demands (in units) Month Year 1 Year 2 Year 3 Year 4 Forecast 1 55,200 39,800 32,180 62,300 2 57,350 64,100 38,600 66,500 3 15,400 47,600 25,020 31,400 4 27,700 43,050 51,300 36,500 5 21,400 39,300 31,790 16,800 6 17,100 10,300 31,100 18,900 7 18,000 45,100 59,800 35,500 8 19,800 46,530 30,740 51,250 9 15,700 22,100 47,800 34,400 10 53,600 41,350 73,890 68,000 11 83,200 46,000 60,200 68,100 12 72,900 41,800 55,200 61,100 Avg. Figure 1.1 (University of Phoenix, 2011). The Time-Series Method is an example of quantitative forecasting. This forecasting model uses historical data to try to predict future events .Knowing the data from the last four years, will help to predict how long the demand in units bases on the past (Encyclopedia of Business and Finance, 2006). The data has been used in creating a scatter chart. Figure 1.2 There is a 64.8% increase in the average units from year one to year two, a 10.3% increase from year two to year three, and a 2.4% increase from year three to year four. As the percentage of growth has increased at a lesser percent each year, it follows that...
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...in Anchorage, Alaska with distribution plants in 21 states. The company has recently hired a new CEO who has asked that I make a seasonal demand forecast based on the last four years of winter historical inventory data that has been recorded. The winter historical inventory data is based on actual demand in numbers of snow shovels manufactured by Geist Industries. To minimize the data and make it more manageable for analysis, I have devised a twelve month average for each of the four years and plotted the resulting data to forecast the upcoming year’s demand in Figure A. The following formula was used to calculate the twelve month average individually for years one through four: Total Demand (Actual) for Year (January thru December) = Individual Year Average 12 (Figure A) I have extended the trend line to forecast the 5th year demand, in this case to provide a forecasted average that follows a similar trend to that which has been displayed in the past four years. The trend line that has been established displays an R2 value of 0.9553 allowing a conclusion that the data set is relatively useful in forecasting future demand. Using the 12 month average for the last four years of data we can safely assume that next years average demand will be potentially somewhere in the neighborhood of 49,000. Analyzing the Historical Inventory Data Figure B illustrates the Winter Historical Inventory Data. To make...
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...In year one, each department is getting an executive and a mid-level FTE. However, R&D department get one junior FTE employee as most of the activities came from R&D department. With two employees for the two support departments (G&A and S&M) it will give adequate resources to strategically position the company for large expansion the following year. The compensations for the executives are relatively low compare to market condition therefore, stock options will be used. With the established pay band from year one a pay increase of 8 to 16 percent across the board to bring up the pay band closer to market average to attract talents. In year 2, R&D added two more mid-level FTE to perfecting the product to increase the chance gaining FDA approval of the product. S&M department increased one senior-level, five mid-level and four junior-level FTEs. Those include one senior, two mid-level and three junior marketing FTEs to introduce the product to different markets. Six sale FTEs (one senior, four mid-level and and one junior-level) to handle sales and searching for new customers. G&A department added two FTEs (one mid-level and one junior –level) to accommodate the personnel and office space growth. Revenue from year 2 prompted an aggressive increase in personnel budgeting in order to introduce the product to different markets. In year three, senior level received the highest pay raise with 12-13 percent. As fast as the company’s growth,...
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...Loupu Nyenlekewoi HAS 525 Fanancial Health Management Dr. April 27, 2014 Strayer University 8.1 Assignment Exercise: a.1) FIFO Time | Purchase or Sale | Units | Cost | Total = Cost x Units | 1 | I | 25 | 000 | $0.00 | 2 | P | 6 | 500 | $3,000.00 | 3 | S | 90 | 000 | $0.00 | 4 | P | 32 | 000 | $0.00 | 5 | p | 20 | 000 | $0.00 | Calculate Unit Items: Units available for sale = 6 + 32 = 38 Units sold = 25 + 90 + 20 = 135 Units in Ending Inventory = 38 - 135 = -97 Calculate Ending Inventory (last Cost Entry): Ending Inventory = -97 units x $0.00 cost = $0.00 Cost of goods sold: Unit Unit cost Total Inventory 500 $ 50 $25,000 Purchase 1 400 $ 80 $6,500 Purchase 2 100 $ 65 $32, 000 Purchase 3 400 $ 50 $ 20, 000 = 1400 = $83, 500 b.1) LIFO- Time | Purchase or Sale | Units | Cost | Total = Cost x Units | 1 | I | 25 | 000 | $0.00 | 2 | P | 6 | 500 | $3,000.00 | 3 | S | 90 | 000 | $0.00 | 4 | P | 32 | 000 | $0.00 | 5 | p | 20 | 000 | $0.00 | Calculate Unit Items: Units available for sale = 6 + 32 = 38 Units sold = 25 + 90 + 20 = 135 Units in Ending Inventory = 38 - 135 = -97 Calculate Ending Inventory...
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...STUDENT CASES to accompany Accounting & Auditing Research: Tools & Strategies, 7e NOTE: In addition to the in-chapter and end-of-chapter exercises which serve as short cases you will find the following short cases arranged by course title that can also be utilized as short cases that require the student to access the authoritative literature to address the issue presented in the case. Solutions to the cases below are available to instructors on the Weirich Accounting & Auditing Research 7e instructor website at www.wiley.com/college/weirich. Other excellent sources of longer and more detailed cases include the Deloitte Trueblood cases (www.deloitte.com/more/DTF/cases_subj.htm), as well as the AICPA cases (www.aicpa.org). Topical Index of Student Cases INTERMEDIATE ACCOUNTING Case 1: Reporting acquisition and repayment transactions in the Statement of Cash Flows Case 2: Recording a forfeited payment Case 3: Revenue and expense recognition associated extended warranties Case 4: Accounting for “due on demand” note payable Case 5: Purchase of a controlling interest with a greenmail premium Case 6: Revenue recognition in the construction industry Case 7: Accrual and measurement of interest payments Case 8: Recognition of an asset transfer when title has not yet been received Case 9: Capitalization of interest and property taxes on a construction project Case 10: Deferred compensation and life insurance policy recognition Case...
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...STUDENT CASES to accompany Accounting & Auditing Research: Tools & Strategies, 7e NOTE: In addition to the in-chapter and end-of-chapter exercises which serve as short cases you will find the following short cases arranged by course title that can also be utilized as short cases that require the student to access the authoritative literature to address the issue presented in the case. Solutions to the cases below are available to instructors on the Weirich Accounting & Auditing Research 7e instructor website at www.wiley.com/college/weirich. Other excellent sources of longer and more detailed cases include the Deloitte Trueblood cases (www.deloitte.com/more/DTF/cases_subj.htm), as well as the AICPA cases (www.aicpa.org). Topical Index of Student Cases INTERMEDIATE ACCOUNTING Case 1: Reporting acquisition and repayment transactions in the Statement of Cash Flows Case 2: Recording a forfeited payment Case 3: Revenue and expense recognition associated extended warranties Case 4: Accounting for “due on demand” note payable Case 5: Purchase of a controlling interest with a greenmail premium Case 6: Revenue recognition in the construction industry Case 7: Accrual and measurement of interest payments Case 8: Recognition of an asset transfer when title has not yet been received Case 9: Capitalization of interest and property taxes on a construction project Case 10: Deferred compensation and life insurance policy recognition Case...
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...Case Report: Mihocko This is the a selective case report. You can work individually or with a group of no more than 3 members (including you, from the same section). Fill in your names and section number in the header. No discussion with anyone outside your team is allowed. Below, write your answers to Questions 1-5. If you need to make additional assumptions to answer a question, clearly state them, logically defend them, and then proceed to answer the question accordingly. Please format your report in the following way: – Limit your answers to 3 pages. Use 11 pt font or larger and 1.5 line spacing. The idea is to answer the questions concisely. – Draw diagrams in black or gray lines on white background, because your report will be printed in black and white for grading. – Submit one file per group. Attach all necessary diagrams and calculations to your report, and keep this file letter-sized (8.5x11), otherwise your report will not be printed correctly. For Excel 2007 users: To enable the Solver Add-in in Excel 2007, please do this: – "Office Button ( Excel Options ( Add-Ins ( Select Excel Add-ins from the Manage drop down menu ( check Solver Add-in ( OK" – You may then be prompted to insert the Office 2007 installation disk to complete the install. – Once the Solver Add-in has been installed it can be accessed from the Data tab. – If there is any technical problem, please contact Computing Service Helpdesk (734) 615-3000...
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...Subject: Employee Profile on Mark Chan Personal: Family Member (close-knit): 1. Spouse—Linda Chan (married for almost 8 years, home maker, previously a private banker) 2. Children—2 (ages from pre-school to elementary school) 3. Pet—an Old English sheepdog (large breed, requires big space for exercise) Living Condition: 1. Fairly wealthy 2. Less than 1 hour away from the workplace 3. Good relationships in the local community (Implied) Personality/Values: 1. Achievement-orientated 2. Challenge-driven 3. Family-focused 4. High interest of different cultures 5. Great analytical & communicative skills Religion: Christianity Personal Hobby: Cars (currently own 2 cars—a Jaguar & a Triumph) Parents: the mother-in-law in Singapore needs to be taken care of Career: Year - 6 – Year 0 (Prior to Energem) Employer: A Japanese consulting company at the Singapore branch Countries traveled: Japan, Thailand, Indonesia, Vietnam & Malaysia Job description: 1. Helped foreign companies scout/evaluate M&A opportunity in Asia. 2. Negotiated and closed various M&A deals. Year 1 (in Energem, Singapore branch) Job Title: Marketing Manager in Specialty Chemical Division (Level 4) Region Covered: South-East Asian Year 2 – Year 3 Job Title: M&A Manager & Analyst (Group Mergers & Acquisitions Unit, Level 3) Region Covered: Asia-Pacific Job Description:...
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...(100%) | Question 1 Marks: 1 Suppose you have $1,500 and plan to purchase a 5-year certificate of deposit (CD) that pays 3.5% interest, compounded annually. How much will you have when the CD matures? Choose one answer. | a. $1,781.53 | | | b. $1,870.61 | | | c. $1,964.14 | | | d. $2,062.34 | | | e. $2,165.46 | | N | 5 | I/YR | 3.5% | PV | $1,500 | PMT | $0 | FV | $1,781.53 | | | Correct Marks for this submission: 1/1. Question 2 Marks: 1 How much would $5,000 due in 50 years be worth today if the discount rate were 7.5%? Choose one answer. | a. $109.51 | | | b. $115.27 | | | c. $121.34 | | | d. $127.72 | | | e. $134.45 | | N | 50 | I/YR | 7.5% | PMT | $0 | FV | $5,000 | PV | $134.45 | | | Correct Marks for this submission: 1/1. Question 3 Marks: 1 Ten years ago, Levin Inc. earned $0.50 per share. Its earnings this year were $2.20. What was the growth rate in Levin's earnings per share (EPS) over the 10-year period? Choose one answer. | a. 15.17% | | | b. 15.97% | | | c. 16.77% | | | d. 17.61% | | | e. 18.49% | | N | 10 | PV | $0.50 | PMT | $0 | FV | $2.20 | I/YR | 15.97% | | | Correct Marks for this submission: 1/1. Question 4 Marks: 1 Last year Mason Corp's earnings per share were $2.50, and its growth rate during the prior 5 years was 9.0% per year. If that growth rate were...
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..._____________________________________________________________ *STUDENTS ARE EXPECTED TO MAINTAIN THEIR OWN ACADEMIC HISTORY* CHECKLIST PLAN 01 (Year 1) FALL 2013 __________ PLG 100 Intro. to Urban & Regional Planning __________ PLG 120 Understanding the Planning Process __________ ECN 104 Introductory Microeconomics __________ POL 123 Urban Local Government __________ Elective: Lower Level Liberal Studies (TABLE A) GEO 108 PLAN 02 (Year 1) WINTER 2014 __________ PLG 200 Planning Principles __________ PLG 220 Planning Studio I __________ ENH 617 Applied Ecology __________ SOC 104 Understanding Society __________ Elective Lower Level Liberal Studies (TABLE A) PHL 306 PLAN 03 (Year 2) FALL 2014 __________ PLG 300 Theories in Urban and Regional Planning __________ PLG 310 Statistics for Planners __________ PLG 320 Planning Studio II __________ Elective Lower Level Liberal Studies (TABLE A) PHL110 __________ Elective Professionally-Related http://www.ryerson.ca/calendar/2014-2015/pg3639.html , PLAN 04 (Year 2) WINTER 2015 __________ PLG 400 Introduction to Policy Planning __________ PLG 410 Planning Analysis __________ PLG 420 Land Use Planning Studio I __________ Elective Upper Level Liberal Studies (TABLE B)__________________________ __________ Elective Professionally-Related (PLE 535, ACS 855) PLAN 05 (Year 3) FALL 2015 __________ PLG 500 Advanced Planning Theory __________ PLG 510 Planning Law I __________ PLG 520 Land Use...
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...to predict current and future trends. Many companies have realized this to be the backbone of the company because it predicts whether or not a company will break even and if a company does not break even decided whether the company will be up and running the following year. An index is a point of reference concerning numbers with common points. Indices are used to observe historical and short-term comparisons with percentages change commonly used. This week’s lesson entailed obtaining the Summer Historical Inventory Data from the materials area in the week two forum and converting the information into an index. The time series information is to be used to forecast the inventory needed for the upcoming year. To give a company a better view of making decision a month-to-month forecast is best because more information can be obtained over a shorter period. The Summer Historical Data obtained from University of Phoenix Material was converted into an index using Microsoft excel software. The data showed typical demand for summer highs using demands in units, and the forecast was obtained by adding the first four years by months and dividing them by the four years to arrive at the forecast for the following year. Conclusion Forecasting is vitally important to any organizations growth for without it a company has no knowledge of the trends of sales. With proper forecasting a company knows when sales will increase or decrease...
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...exchange a three year, $ 60,000 note bearing interest at 8% annually. Required: Record the entries needed in ABC Corp. For receipt of note and recognition of interest revenue each year assuming the following independent cases: Case 1: If the market interest rate for a note of similar risk is 8% Case 2: If the market interest rate for a note of similar risk is 10 % Case 3: If the Note is Zero interest bearing note and the market interest rate is 11 %. Case 1: Notes Receivable | 60,000 | | Revenue | | 60,000 | (60,000 x 8%) = 4,800 Cash | 4,800 | | Interest Revenue | | 4,800 | Case 2: N= 3I= 10%60,000 | NR | 57,016 | | Revenue | | 57,016 | Year 1 Cash | 4,800 | | NR | 902 | | Interest Revenue | | 5,702 | Year 2 Cash | 4,800 | | NR | 991 | | Interest Revenue | | 5,791 | Year 3 Cash | 4,800 | | NR | 1090 | | Interest Revenue | | 5,890 | Face Value1: 60,000 Present value of: Principal: 60,000 x 0.75132 = 45,079 Interest: 4,800 x 2.48685 = 11,937 PV= 57,016 Discount = 60,000 – 57,016 = 2984 | Cash Received | Interest Revenue | Discount Amortized | Total Amount of NR | PV= 57,016 | Year 1 | 4,800 | 57,016 x 10%= 5,702 | 5,702-4,800= 902 | 57,016 + 902= 57,918 | | Year 2 | 4,800 | 57,918 x 10%= 5,791 | 5,791-4,800 = 991 | 57,918+991= 58,909 | | Year 3 | 4,800 | 58,909 x 10%=5890 | 5,890- 4,800= 1090 | 58,909+1090=60,000 | | Case 3: NR | 43,871 | | Revenue | | 43,871 | Year 1 NR...
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...requirements to meet product line forecasts. 3. Project labor and equipment availabilities over the planning horizon. Often the firm then decides on some capacity cushions that will be maintained between the projected requirements and the actual capacity. A capacity cushion is an amount in excess of the expected demand. Positive Capacity Cushion: If the expected annual demand on a facility is $10 million in products per year and the design capacity is $12 million per year, it has a 20% capacity cushion (2/10). A 20% capacity cushion equates to an 83% utilization rate (100%/120%). Negative Capacity Cushion: when a firm’s design capacity is less than the capacity to meet its demand. If a firm has a demand of $12million in product per year but can only produce $10million per year, it has a negative capacity cushion of 20 %. Problem 1.Amiel’sCompany produces two flavors of salad dressings: Ranch and Ceasars. Each is available in bottles and single serving plastic bags. Management would like to determine equipment and labor requirements for the next five years....
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...going through a few years of low sales and profit, and, coupled with conservative financial and accounting practices, was far behind the normal growth rate for companies in its industry. Robertson’s 50% control of the market for clamps and vises, along with its good position in the scissors and shears’ $200 million market, let it compliment the diverse holdings of Monmouth. These are attractive attributes of Robertson, but the selling point lies in the distribution network consisting of 2,100 wholesalers and 15,000 retail outlets. The Robertson products are sold in 137 countries worldwide. This avenue to market Monmouth and Robertson products across resources could lead to above average growth and profits. 2. What is the maximum price that Manmouth can afford to pay: a. DCF base: i. WACC 1. Unlevered Equity Beta – 0.725 2. Market Value of Debt - $12m 3. Market Value of Equity - $25,696m 4. Debt/Capital - 32% 5. Levered Equity Beta – 0.86 6. Risk Free Rate – 4.10% 7. MRP – 6% 8. Cost of Equity – 9.28% 9. Cost of Debt – 6.07% on BBB rating 10. Tax Rate - 40% 11. WACC: a. Debt – 31.8% @ 3.64 b. Equity – 68.2% @ 9.28 c. WACC = 7.5 ii. Terminal Value - TY FCF = $4.9m*(1+0)/(0.075-0) = $65.33 iii. FCF: Year 1 Year 2 Year 3 Year 4 0.8 2.4 3.4 4.9+65...
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...In the first example, you expect $11,000 five years from now. In the second, you expect $200 in year 1, $200 in year 2, $200 in year 3, $200 in year 4, and $10,200 in year 5. Once you’ve determined this, you have a couple of vital pieces of information: You know whether you’re looking at a lump sum, an annuity (a stream of payments), or both. In the first example, it’s a lump sum. In the second, it’s an annuity of $200, and a lump sum of $10,000 (because the $200 in year 5 belongs to the annuity of $200, not to the lump sum of the principal). This tells you what present value tables to use. You use the Present Value of $1 (Present Value of a Single Sum) table to value the lump sums. You use the Present Value of an Ordinary Annuity to value streams of payments. So in the second example, you’d use the PV of $1 table to get the present value of the $10,000 lump sum, and you’d use the PV of an Ordinary Annuity table to get the present value of the five $200 payments. Before you can use the tables, though, there is one more step. You need to find n, and i. * n is the number of interest compounding periods involved. * If you are looking at the PV of a lump sum, n = the number of years before the sum will be paid. In the first example, n = 5. * It is more complicated if you are looking at an annuity. If the annuity stream (interest, for purposes of Chapter 14) is paid annually, n = number of years during which the sum will be paid. In the second...
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