However, this situation would make the company incur more loss next year, which is about negative $ 293,586. In the mean time, Barb Shepard, the company’s owner, wants to sell the company soon, and she knows a purchase price would be determined by three main factors: the absolute level of profits, the rate of growth in profits, and future potential growth in the market. Barb Shepard also wants to reduce bank debts as soon as possible. Therefore, the company needs new strategic initiatives very much to improve operating profitability and move forward next year. Each of three vice presidents has rendered a separate and distinct strategic initiative, and they are “Introduce a new product”, “Increase promotion”, and “Raise prices and cut costs” respectively.
SolvGen entered into a five-year research and development agreement with Careway Pharma Inc. (Careway) on January 1, 2010. The research and development agreement calls for SolvGen to use its best efforts to further develop proprietary instrument systems that have been under development for nearly 18 months and are expected to be ready for commercial launch in the near future. In connection with executing the research and development arrangement, SolvGen and Careway also entered into a five-year license and distribution agreement dated January 1, 2010. Under the terms of the research and development agreement, SolvGen retains all intellectual rights to the results of the research and development agreement (even in the event of default by the Company). In connection with this agreement, SolvGen is entitled to the following nonrefundable milestone payments from Careway: 1.
The supervisors are requesting a pay raise. As it stands currently dispatchers that are receiving the cash out option for the health and welfare end up with a higher pay than the supervisors. In addition, the union contract that was recently put in place for the dispatchers and call takers guarantees them an annual raise. They will continually make more money unless the supervisors get a raise. The site manager argues that all five supervisors are needed to fill in for leave and other absences (all supervisors are trained dispatchers) and by hiring the additional full time employees, the overtime that is being worked by several employees will come to an end.
You are a practicing CPA at Gibbons, Johnson & Tannun, LLP. You recently received a new medium-sized client, ABI, Inc., a construction company that builds and renovates office buildings. Since the tornado went through your town, ABI, Inc., has had more projects than it can handle. ABI’s gross revenues for 2011 were $12 million dollars, up from $150,000 in 2010. Alex expects the revenues to grow by 30% for the next three years because cleanup of the devastating tornado will take that long.
The applicable MACRS rates are 33%, 45%, 15%, and 7%. If the computer is purchased, a maintenance contract must be obtained at a cost of $25,000, payable at the beginning of each year. After 4 years, the computer will be sold. Millon’s best estimate of its residual value at that time is $125,000. Because technology is changing rapidly, however, the residual value is uncertain.
The following are the phases that will take place: First Phase: Installation of the network Second Phase: Testing and Security Checks Third Phase: Observation of the network (includes the information when the network goes up; elimination of the old network; and distribution of documentation to the owners and network teams) First Phase: Del Mar site is the first store to be upgraded since it will be treated as the backbone or the mainline support of the entire network operation. Del Mar site will contain the POS (Point of Sale) server, Inventory Database, File Integrity Checker, Security Console for monitoring and the T1 line(s). This Del Mar store upgrade will take five weeks to be completed. After completion, it is La Jolla’s site turn to be upgraded next. With all the possible irregularities that may come in while doing the upgrade and integration of this site, though it is expected to operate smoothly, completion time is expected to be five weeks also.
What should be the top 3-5 priority actions for Cullman Electric the next 2-3 days? The next 2-3 weeks? Cullman Electric’s top priorities for the next 2-3 days are as follows: - Try and restore power to critical care customers (i.e.) Hospitals and Nursing Homes first followed by other customers. - Call for help (i.e.)
| Bethesda Mining Company Case Study | Financial Analysis | | Section 2, Team 3: Alicha Brown, Michael Simon, Lisa Young | 3/7/2014 | | Financial Management 526 – Team Project 1 Instructor – Andy Boettcher Professor – John Nofsinger Financial Management 526 – Team Project 1 Instructor – Andy Boettcher Professor – John Nofsinger The Bethesda Mining Company has been offered a contract to ramp up its production. This new contract would run for a period of four (4) years and would entail the delivery of 2,000,000 tons of coal. At first blush it seems like a favorable undertaking, in that the company currently owns a 5000-acre plot of land ideal for the mine. It also estimates production in excess of the contract, allowing for additional sales in the spot market. The downsides are that Bethesda is currently operating at maximal capacity and would incur the costs of supplying all new equipment along with a host of both fixed and variable costs.
The dam was completed in 2009, and cost around 24 billion dollars. The build of the dam was set out to be done in three different stages. The first stage took 5 years to complete. It started in 1992 and was completed in 1997. The second stage took six years to complete.
We expect the long-term prospects to grow. Over 85% of the cargo carried by capsizes was iron ore and coal. A decision has to be made on the possible construction of a new ship to meet the demands of the charterer, which wants a contract of only 3 years. To reach the decision, Mary Linn, had to arrive at the “NET PRESENT VALUE” of the investment, i.e., the Ship. What are the key financial issues involved with Mary Linn's decision?