Pre-Built Problems http://ezto.mhhm.mcgraw-hill.com/hm.tpx award: 5. 10 points Thrifty Markets‚ Inc.‚ operates three stores in a large metropolitan area. The company’s segmented absorption costing income statement for the last quarter is given below: Thrifty Markets‚ Inc. Income Statement For the Quarter Ended March 31 Uptown Total Store $3‚300‚000 $1‚300‚000 1‚612‚000 689‚000 1‚688‚000 611‚000 Sales Cost of goods sold Gross margin Downtown Westpark Store Store $600‚000 $1‚400‚000
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debt‚ it is cash rich indicating it’s over liquid nature and therefore is pretty underleveraged. Between 2003 - 2006‚ its annual sales grew by 2% and Annual return to its shareholders grew by 11% per year on CAGR basis. During 2006‚ it clocked a net income of the USD 53.6 million with top line of USD 342 million. But off-late margins have declined on account of high cost towards integration and write down in inventory related to its acquisitions Company’s strategy towards shifting to higher end products
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8. Year 0 Year 1 Year 2 Taxable income $9‚100 $10‚250 $15‚300 Marginal tax rate .30 .30 .30 Tax $2‚730 $3‚075 $4‚590 Revenue $13‚000 $16‚250 $23‚400 Expenses (4‚250) (8‚000) (8‚100) Tax cost (2‚730) (3‚075) (4‚590) Net cash flow $6‚020 $5‚175 $10‚710 Discount factor (6%) .943 .890 Present value $6‚020 $4‚880 $9‚532 NPV $20‚432 11. a. Year 0 Year 1 Year 2 Year 3 Year 4 Before-tax cash flow $(500‚000) $52‚500 $47‚500 $35‚500 $530‚500 Tax cost (7‚875)
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point The return on investment measure of performance: 1) Is not as important a measure of management effectiveness as the amount of net income. 2) Relates dividends paid to the entity’s assets. 3) Is calculated using net income as the amount of return. 4) Is calculated by dividing average assets for a period by the amount of net income for the period. Question 9 0 / 1 point Expenditures capitalized as long-lived assets generally include those expenditures that:
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The cost profit analysis (CVP) determines how cost and volume affect a company’s operating income. To successfully perform the analysis the five basic components have to be known. The components are volume or level of activity‚ unit selling prices‚ variable cost per unit‚ total fixed cost‚ and sales mix. Volume or level of activity is how many units are produced or sold. The unit selling prices are the cost that each unit produced is sold or thought to be sold will sale for. The variable cost per
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1. Arredondo‚ Inc. has current assets of $2‚170‚ net fixed assets of $9300‚ current liabilities of $1350‚ and long-term debt of $3980. Building a balance sheet for this company‚ address the following questions: a. What is the value of the shareholders’ equity account for this firm? b. How much is net working capital? Arredondo‚IncBalance Sheet | Assets Liabilities and Owener`s EquityCurrent assets $2‚170 Current
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1. Evaluate Alpha Natural Resources’ (ANR) corporate social responsibility CSR) performance. Be sure to reference information both from the company’s own webpages and from the media or watchdog agencies. Alpha Natural Resources is one of the largest coal producers in the United States. It’s business ranges from extracting‚ processing and marketing steam and metallurgical coal to services related to equipment repairs‚ road construction and logistics. The company’s clients include electric utilities
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operating expenses of $90‚000 Incremental net cash flow at t=1: Revenue change: $90‚000 Depreciation: -$266‚640 Net change BT = -$176‚640 Taxes @ 40% = -$70‚656 Net change AT = -$105‚984 Incremental net cash flow (after depreciation) = -$105‚984 + $266‚640= $160‚656. Incremental net cash flow at t=2: Revenue change: $90‚000 Depreciation: -$355‚600 Net change BT = -$265‚600 Taxes @ 40% = -$106‚240 Net change AT = -$159‚360 Incremental net cash flow (after depreciation) = -$159‚360
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change after earning a certain level of income. The rich views a rise of their income as insignificant contribution to their happiness because their spending power rises together with their income. The poor views a rise of income as a means to escape poverty hence feeling a rise in happiness level. Despite earning what they have‚ people still compare their income levels which in turn makes them dissatisfied. To achieve an equal level of happiness‚ incomes need to be at least doubled instead of just
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Michael Ferrai Economics 001 Income Distribution November 13‚ 2012 Over the last 30 years the participation of women in the work force has increased dramatically‚ unfortunately the pay gap between men and women has not decreased much at all. On top of that the pay gap between the classes of working America is increasing. While there have been some improvements there is still a lot of room for improvement. As of 2011 women’s median hourly wages were about 84 percent of males median hourly
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