Prepare a responsibility report for the Camping Division based on the new projections. Did the increase in advertising benefit the company?

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Camping Division for 2020

The Camping Division of Custer Company is operated as a profit center. Sales for the division were budgeted for 2020 at $700,000. The only variable costs budgeted for the division were cost of goods sold ($340,000) and selling and administrative ($46,000). Fixed costs were budgeted at $77,000 for cost of goods sold, $70,000 for selling and administrative, and $69,000 for noncontrollable fixed costs. Actual results for these items were:

Sales $678,000

Cost of goods sold

Variable 315,000

Fixed 81,000

Selling and administrative

Variable 47,000

Fixed 51,000

Noncontrollable fixed 69,000

Instructions

Prepare a responsibility report for the Camping Division for 2020.

Assume the division is an investment center, and average operating assets were $1,000,000. The noncontrollable fixed costs are controllable at the investment center level. Compute ROI.

Upon further analysis, Custer Company determined that if it committed to a 12 month advertising campaign costing $18,000, they could increase budgeted sales by 25%. Variable costs also will increase by 25%. Fixed cost of goods sold would remain at $77,000 and selling and administrative expenses increases by the $18,000 cost of this contract to a total of $88,000. Noncontrollable fixed costs would remain at $69,000.

This plan resulted in the following results:

Sales $873,000

Cost of goods sold

Variable 420,000

Fixed 81,000

Selling and administrative

Variable 56,000

Fixed 71,000

Noncontrollable fixed 69,000

Prepare a responsibility report for the Camping Division based on the new projections. Did the increase in advertising benefit the company?

Assume the division is an investment center, and average operating assets were $1,000,000. The noncontrollable fixed costs are controllable at the investment center level. Compute ROI. Discuss the impact of the change on ROI.

 

Write an essay on the impact of technology/software on data life cycle for tax professionals.

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Impact of technology/software on data life cycle for tax professionals

Write an essay on the impact of technology/software on data life cycle for tax professionals.

Compare the P/E ratio of your company with the industry average or with major competitors. Is there a difference between these numbers? Is the stock overvalued, undervalued, or properly valued? Why? In accordance with your findings, is it reasonable to buy the stock?

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Week 5

What is required is to response to 3 classmates initial posts, below is the reference/instruction for their initial post. All 3 classmate initial post are in the attachments.

EVALUATION OF P/E RATIO

Step 1:

Read the articles. These articles contain examples of evaluating P/E ratio. You will be using these examples to answer the questions listed at the bottom of the topic description.

1) Does Chicago Rivet & Machine Co’s (CVR) PE Ratio Signal A Buying Opportunity? by Kelly Murphy, Simply – Wall St. October 5, 2017

https://finance.yahoo.com/news/does-chicago-rivet-machine-co-201613354.html

2) Is Cynergistek Inc’s (CTEK) PE Ratio A Signal To Buy For Investors? by Mary Ramos Simply, Wall St. October 5, 2017

https://finance.yahoo.com/news/cynergistek-inc-ctek-pe-ratio-144611055.html

3) Does Katana Capital Limited’s (ASX:KAT) PE Ratio Signal A Selling Opportunity? by Kyle Sanford , Simply Wall St. October 5, 2017

https://finance.yahoo.com/news/does-katana-capital-limited-asx-074409705.html

Step 2:

You must use the company assigned for you for the project.

Your assignment:

Also note that your answers should be written in your own words. Don’t use quotes from the articles.

You are expected to make your own contribution in a main topic as well as respond with value added comments to at least two of your classmates as well as to your instructor.

For this question we will be using P/E ratio.

Use www.morningstar.com or www.marketwatch.com, enter the desired stock symbol to get to the company’s front page. Find P/E ratio is listed on the company’s page or calculate it.

Compare the P/E ratio of your company with the industry average or with major competitors. Is there a difference between these numbers? Is the stock overvalued, undervalued, or properly valued? Why? In accordance with your findings, is it reasonable to buy the stock? Please explain your answers.

Reflection – the students also should include a paragraph in the initial response in their own words reflecting on specifically what they learned from the assignment and how they think they could apply what they learned in the workplace.

 

 

Prepare a schedule of expected cash collections for July, August, and September and for the quarter in total. Prepare a cash budget, by month and in total, for the third quarter.

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Herbal Care

Herbal Care Corp., a distributor of herb-based sunscreens, is ready to begin its third quarter, in which peak sales occur. The company has requested a $60,000, 30-day loan from its bank to help meet cash requirements. Since Herbal Care has experienced difficulty in paying off its loans in the past, the loan officer at the bank has asked the company to prepare a cash budget for the 2019 quarter. In response to this request, the following data has been assembled.

  • On July 1, the beginning of the third quarter, the company will have a cash balance of $55,000.
  • Actual sales for the last two months and budgeted sales for the third quarter follow:

May (actual)……………………$250,000 June (actual)……………………$300,000 July (budgeted)…………………$400,000 August (budgeted)………………$600,000 September (budgeted)…………. $320,000

Past experiences show that 25% of a month’s sales are collected in the month of the sale, 70% in the month following the sale, and 1% in the second month following the sale. The remainder is uncollectible.

  • Budgeted merchandise purchases and budgeted expenses for the third quarter are given below:

July

Merchandise purchases……. $240,000 Salaries and wages…………….45,000 Advertising……………………130,000 Rent payments…………………. 9,000 Depreciation……………………10,000

August

$350,000 50,000 145,000 9,000

10,000

September

$175,000 40,000 80,000 9,000 10,000

Merchandise purchases are paid in full during the month following purchase. Accounts payable for merchandise purchases on June 30, which will be paid during July, total $180,000.

  • Equipment costing $10,000 will be purchased for cash during August.
  • In preparing the cash budget, assume that the $60,000 loan will be made on August 31, 2019 and repaid on September 30, 2019. Interest on the loan will be calculated at 10% per annum.

Required:

  1. a) Prepare a schedule of expected cash collections for July, August, and September and for the quarter in total. (10 marks)
  2. b) Prepare a cash budget, by month and in total, for the third quarter. (15 marks)
  3. c) In your own words, define master budget and explain its major benefits (at least two) in an organization. (5 marks)

 

What is the primary issue in the case? What is the author(s) trying to resolve? Should the Board of Directors and/or external auditors be actively involved in policing foreign corrupt practices or is this a management issue?

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Baker Hughes – Foreign Corrupt Practices Act

Answer the following questions:
1. What is the primary issue in the case? What is the author(s) trying to resolve?
2. Should the Board of Directors and/or external auditors be actively involved in policing foreign corrupt practices or is this a management issue?
3. What were some of the unintended consequences of FCPA on US firms

Analyze the cost behaviors and systems of your industry and conduct the relevant financial calculations to determine appropriate costing solutions.

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Workbook

Overview

The next step in planning for your new business is to analyze the cost behaviors and systems of your industry and conduct the relevant financial calculations to determine appropriate costing solutions. In this milestone assignment, you will conduct a break-even analysis to determine your target profits and the selling price you plan to use to achieve these profits for each product.

Prompt

Use information from Milestone One and the provided Milestone Two Market Research Data Appendix Word Document to conduct a cost-volume profit analysis. Complete the “Contribution Margin Analysis” and “Break-Even Analysis” tabs in the Project Workbook Spreadsheet that you used for completing the Milestone One assignment.

Specifically, you must address the following rubric criteria:

  • Contribution Margin. Determine your contribution margin per unit in the “Contribution Margin Analysis” tab.
    • Choose a sales price for each product.
    • Calculate the contribution margin for each product based on your sales price and the variable cost for that product. Show your work using calculations to the side of the table or using appropriate formulas in the table.
  • Break-Even Analysis. Use cost-volume-profit (CVP) analysis to determine your break-even points for achieving your target profits in the “Break-Even Analysis” tab.
    • Determine the break-even points for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table.
    • Determine break-even units for the suggested target profits for each product. Show your work using calculations to the side of the table or using appropriate formulas in the table.

Guidelines for Submission:

Submit the Project Workbook with the “Contribution Margin Analysis” and “Break-Even Analysis” tabs completed. This file should be completed and submitted using Microsoft Excel.

What is the internal rate of return (IRR) of the investment? If the required rate of return is 14% should this project be considered? If the required rate of return is 6% should this project be considered?

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Your company is Gamboge

You are presented with four independent scenarios below.
Answer the questions posed and show your work to support your answer.

1) Your company is considering an investment in a new facility.
The expected cash flows are presented below:
Year Cash Outflow Cash Inflow
1 1,604,980$ 154,000$
2 0 350,010$
3 50,550$ 453,910$
4 0 353,540$
5 0 506,940$

A) What is the payback period?
Read details on Partial Year Payback ( Show your calculation!!!!)

Note: Show you answer with 2 digits or precision. As an example 3.21 Years

2) A sheet metal company needs a new higher speed metal cutter.
Given below is the necessay financial information to solve the problem.
The initial investment is: 308,090$
Salvage Value is: 20,320$
Incremental Revenue 157,560$
Incremental Expenses 92,260$

B) What is the accounting rate of return (ARR)?

Note: Show your answer with 2 digits of precision. As an example 31.22%

3) Project X-RAY is being considered for an expansion of current capabilities of the company.
Given below is the necessay financial information to solve the problem.
The initial investment is: 12,166$
After Tax net cah inflows 2,079$
Discount Rate 10%
C) What is the net present value (NPV) of the investment?
D) Should the project be considered? Justify your answer.

4) Dalkey Inc. is considering an investment.
The initial Investment is: 86,829$
After Tax net cash inflows: 14,130$

E) What is the internal rate of return (IRR) of the investment?
F) If the required rate of return is 14% should this project be considered? Justify your answer.
G) If the required rate of return is 6% should this project be considered? Justify your answer.

Develop a full “Annual Budget” using the Personal Finance Plan Excel Sheet (Worth 8 points) that includes a recommended budge. Develop a Personal Balance Sheet .

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Personal Financial Plan

JM is a 25yo male who recently graduated from the University of Kentucky College of Pharmacy (Big basketball fan, so there was really no other school better to attend). JM had to pay for all costs of college obtaining PharmD and MBA degrees (including costs of living and probably more bourbon than JM needed), putting him in a total student debt of $220,000. He will have a total of $5,000 cash in all accounts (checking and savings) as of December 31, 2020. His student loans are financed at a 6% interest rate but he hasn’t decided whether to set them for a 10-year or 25-year term for payment.

JM Job Opportunity:
Given his love for leadership & management (and his tendency to be a work-a-holic), he is excited to accept a management position at a pharmacy within a large grocery store chain in Louisville, Kentucky to kick off his new career. The new position comes with a whopping starting salary of $125,000/year, a 5% 401k retirement “match” program, and full health and life insurance benefits for a monthly premium of only $300/month.

JM’s preferences:
• He wants to set aside some long-term savings, but also likes to enjoy life
• He has an old car with a lot of mileage that may need to be replaced soon
• He is thinking of renting or buying a house, but is not able to make a down payment
• He wants to have a cell phone, cable with high speed internet, and a gym membership
• He is not very picky when it comes to groceries, but enjoys going out to eat with friends
• He likes to play golf in his free time
• He just met a really nice girl named Ashlee that hasn’t finished pharmacy school yet, but he hopes to budget some money for a diamond ring one day (No rush!)

He will start the new pharmacy manager position on January 1, 2021 and needs your help building a Personal Finance Plan for 2021!

Your Task:
1. Develop a full “Annual Budget” using the Personal Finance Plan Excel Sheet (Worth 8 points) that includes a recommended budget for the following variables:
a. Housing
b. Student Loan Payments
c. Cable/Utilities/Cell
d. Gym Membership
e. Insurance Premiums
f. Food
g. Auto
h. Personal Goals (What can JM budget for each paycheck to save for things that he really wants? E.g. New golf clubs, an engagement ring)

2. Develop a Personal Balance Sheet (2 points):
a. January 1, 2021 – Where JM is at the start
b. December 31, 2021 – Where he could be at the end of the year (#goals)

Explain formula for individual’s income tax and business entities. Arrange relative tax liability by filing status from lowest to highest? Identify Items that are not Income under US income tax law. ?

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Income tax and business entities

Q1. Explain formula for individual’s income tax and business entities. (five marks)

Q2. Arrange relative tax liability by filing status from lowest to highest? (2.5 marks)

Q3. Contrast concepts of Income from accounting , economic and tax perspectives.( use your own words ) (five marks)

Q4. Identify Items that are not Income under US income tax law. ? (2.5 marks)

 

Would Stellar capitalize or expense the cost of the robotic pizza-making machine? Would Stellar capitalize or expense the cost of the truck to house the robotic pizza-making machine?

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What costs would the Stellar Pizza robotic pizza restaurant capitalize or expense?

Stellar Pizza has a pizza–making robotic machine that was built by three former SpaceX engineers. More than 23 former SpaceX employees work at Stellar Pizza. The pizza–making robot can produce
a pizza every 45 seconds. A pizza can be customized, baked, and topped in less than five minutes by the robotic machine. Stellar Pizza will be in operation in the spring of 2022 in Los Angeles. The pizza–making robot will fit into the back of a truck. View this video (3:36 minutes) that shows the Stellar Pizza robotic machine in action.

Questions
1. Would Stellar capitalize or expense the cost of the robotic pizza–making machine?
2. Would Stellar capitalize or expense the cost of the truck to house the robotic pizza–making machine?
3. Would Stellar capitalize or expense the cost of the ingredients used to top the pizzas (i.e., pepperoni, mushrooms, onions, and cheese)?
4. If Stellar needs to replace the controller cables after the robotic machine is used for 2,000 hours, is the cost of those controller cables capitalized or expensed by Stellar? Why does it matter?
5. What is the impact of capitalizing an item on the balance sheet? On the income statement?
6. What is the impact of expensing an item on the balance sheet? On the income statement?