SOLVE BY USING QM EXCEL
Even though independent gasoline stations have been having a
difficult time,...
SOLVE BY USING QM EXCEL
Even though independent gasoline stations have been having a
difficult time, Susan Solomon has been thinking about starting her
own independent gasoline station. Susan’s problem is to decide how
large her station should be. The annual returns will depend on both
the size of her station and a number of marketing factors related
to the oil industry and demand for gasoline. After a careful
analysis, Susan developed the following table: Size of first
station good...
Medical Technology Enterprises is trying to select the best
investment from among four alternatives. Each alternative...
Medical Technology Enterprises is trying to select the best
investment from among four alternatives. Each alternative involves
an initial outlay of $100,000. and the company’s cost of capital
(WACC) is 8%. Their future cash flows follow:
(See pages 383 – 390).
Year
Alternative A ($)
Alternative B (S)
Alternative C ($)
Alternative D ($)
1
10,000
50,000
25,000
0
2
20,000
40,000
25,000
0
3
30,000
30,000
25,000
45,000
4
40,000
0
25,000
55,000
5
50,000
0
25,000
60,000...
Hamlen Corporation acquired 100 percent of Pink's Company's
common stock on January 1, 2015. Balance sheet...
Hamlen Corporation acquired 100 percent of Pink's Company's
common stock on January 1, 2015. Balance sheet data for the two
companies immediately following the acquisition follow:
.....................................................Hamlen..................
Pink's
Cash.............................................$ 30,000
..............$25,000
Accounts Receivable........................... 80,000
................40,000
Inventory........................................
150,000............... 55,000
Land.............................................. 65,000
................40,000
Buildings and Equipment......................
260,000............. 160,000
Less: Accumulated Depreciation............
(120,000)............. (50,000)
Investment in Pong Company Stock.......... 150,000
Total Assets...................................... $615,000
........$270,000
Accounts Payable...............................$
45,000.......... $ 33,000
Taxes Payable....................................
20,000............... 8,000
Bonds Payable ...................................
200,000........... 100,000
Common Stock..................................... 50,000
............20,000
Retained...
14 Compare the reasons for the changes in
return on equity for Eastnorth Manufacturing and its...
14 Compare the reasons for the changes in
return on equity for Eastnorth Manufacturing and its industry.
Balance Sheets for INDUSTRY:
December 31
2017
2016
2015
ASSETS
Cash and marketable securities
$30,000
$25,000
$20,000
Accounts receivable
110,000
90,000
60,000
Inventories
100,000
80,000
80,000
Total current assets
240,000
195,000
160,000
Gross plant and equipment
250,000
220,000
200,000
Less: accumulated depreciation
−100,000
−65,000
−50,000
Net plant and equipment
150,000
155,000
150,000
Land
50,000
50,000
50,000
Total fixed assets
200,000
205,000
200,000
Total...
2- Dubai Corporation acquired 100 percent of Sharjah Company's
common stock on January 1, 2019. Balance...
2- Dubai Corporation acquired 100 percent of Sharjah Company's
common stock on January 1, 2019. Balance sheet data for the two
companies immediately following the acquisition follows:
Item
Dubai
Corporation
Sharjah
Company
Cash
$
30,000
$
25,000
Accounts Receivable
80,000
40,000
Inventory
150,000
55,000
Land
65,000
40,000
Buildings and Equipment
260,000
160,000
Less: Accumulated Depreciation
(120,000
)
(50,000
)
Investment in Spin Company Stock
150,000
Total Assets
$
615,000
$
270,000
Accounts Payable
$45,000
$33,000
Taxes Payable
20,000
8,000
Bonds...
Hamlen Corporation acquired 100 percent of Pink's Company's
common stock on January 1, 2015. Balance sheet...
Hamlen Corporation acquired 100 percent of Pink's Company's
common stock on January 1, 2015. Balance sheet data for the two
companies immediately following the acquisition follow:
.....................................................Hamlen..................
Pink's
Cash.............................................$ 30,000
..............$25,000
Accounts Receivable........................... 80,000
................40,000
Inventory........................................
150,000............... 55,000
Land.............................................. 65,000
................40,000
Buildings and Equipment......................
260,000............. 160,000
Less: Accumulated Depreciation............
(120,000)............. (50,000)
Investment in Pong Company Stock.......... 150,000
Total Assets...................................... $615,000
........$270,000
Accounts Payable...............................$
45,000.......... $ 33,000
Taxes Payable....................................
20,000............... 8,000
Bonds Payable ...................................
200,000........... 100,000
Common Stock..................................... 50,000
............20,000
Retained...
2- Dubai Corporation acquired 100 percent of Sharjah Company's
common stock on January 1, 2019. Balance...
2- Dubai Corporation acquired 100 percent of Sharjah Company's
common stock on January 1, 2019. Balance sheet data for the two
companies immediately following the acquisition follows:
Item
Dubai
Corporation
Sharjah
Company
Cash
$
30,000
$
25,000
Accounts Receivable
80,000
40,000
Inventory
150,000
55,000
Land
65,000
40,000
Buildings and Equipment
260,000
160,000
Less: Accumulated Depreciation
(120,000
)
(50,000
)
Investment in Spin Company Stock
150,000
Total Assets
$
615,000
$
270,000
Accounts Payable
$45,000
$33,000
Taxes Payable
20,000
8,000
Bonds...
Balance sheet
December 31
Assets 2007 2006
Cash $25,000 $40,000
Short term investments 15,000 60,000
Accounts...
Balance sheet
December 31
Assets 2007 2006
Cash $25,000 $40,000
Short term investments 15,000 60,000
Accounts receivable 50,000 30,000
Inventory 50,000 70,000
Property, plant and equipment (net) 160,000 200,000
Total assets $300,000 $400,000
Liabilities and stockholders equity
Accounts payable $20,000 $30,000
Short term notes payable 40,000 90,000
Bonds payable 80,000 160,000
Common stock 60,000 45,000
Retained earnings 100,000 75,000
Total liabilities and stockholders equity $300,000 $400,000
Income statement (for the year ended December 31, 2007)
Net sales $360,000
Cost...
Balance sheet
December 31
Assets 2007 2006
Cash $25,000 $40,000
Short term investments 15,000 60,000
Accounts...
Balance sheet
December 31
Assets 2007 2006
Cash $25,000 $40,000
Short term investments 15,000 60,000
Accounts receivable 50,000 30,000
Inventory 50,000 70,000
Property, plant and equipment (net) 160,000 200,000
Total assets $300,000 $400,000
Liabilities and stockholders equity
Accounts payable $20,000 $30,000
Short term notes payable 40,000 90,000
Bonds payable 80,000 160,000
Common stock 60,000 45,000
Retained earnings 100,000 75,000
Total liabilities and stockholders equity $300,000 $400,000
Income statement (for the year ended December 31, 2007)
Net sales $360,000
Cost...
Structuring a Keep-or-Drop Product Line Problem with
Complementary Effects
Shown below is a segmented income statement...
Structuring a Keep-or-Drop Product Line Problem with
Complementary Effects
Shown below is a segmented income statement for Hickory
Company's three wooden flooring product lines:
Strip
Plank
Parquet
Total
Sales revenue
$400,000
$200,000
$300,000
$900,000
Less: Variable expenses
225,000
120,000
250,000
595,000
Contribution margin
$175,000
$ 80,000
$ 50,000
$305,000
Less direct fixed expenses:
Machine rent
(5,000)
(20,000)
(30,000)
(55,000)
Supervision
(15,000)
(10,000)
(5,000)
(30,000)
Depreciation
(35,000)
(10,000)
(25,000)
(70,000)
Segment margin
$120,000
$ 40,000
$ (10,000)
$150,000
Hickory's parquet flooring...