FISH & CHIPS, INC., PART I LEASE ANALYSIS Martha Millon, financial manager for Fish & Chips Inc., has been asked to perform a leaseversus- buy analysis on a new computer system. The computer costs $1,200,000; and if it is purchased, Fish & Chips could obtain a term loan for the full amount at a 10% cost. The loan would be amortized over the 4-year life of the computer, with payments made at the end of each year. The computer is classified as special purpose; hence, it falls into the MACRS 3-year class. The applicable MACRS rates are 33%, 45%, 15%, and 7%.
(TCO A) On March 1, 2010, Ruiz Corporation issued $800,000 of 8% nonconvertible bonds at 104, which are due on February 28, 2030. In addition, each $1,000 bond was issued with 25 detachable stock warrants, each of which entitled the bondholder to purchase for $50 one share of Ruiz common stock, par value $25. The bonds without the warrants would normally sell at 95. On March 1, 2010, the fair market value of Ruiz's common stock was $40 per share and the fair market value of the warrants was $2.00. What amount should Ruiz record on March 1, 2010 as paid-in capital from stock warrants?
I believe that it is an opportune time to start a business like Chagadama Christian Bookstore since the retail services industry in Maryland is currently worth $350 million; in Salisbury, the industry is estimated to be worth $20 million. Furthermore, since new small businesses are being launched with great frequency, the potential market for our services is growing exponentially. I bring more than 20 years of technical repair and sales skills to the table and am investing $60,000 personally to start this business. I anticipate being able to repay my loan to the company beginning in August 1999. So as to ensure the success of the new location and the business I will hire a marketing manager who will be in charge of all the marketing of the two locations.
The internal auditors questioned why the two shipments were done before December 31, since the requested dates were in the following year. The shipments had a total value of $150,000.00. Another concern for the internal auditors was that there was no written agreement with United Thermostatic Controls to accept the early shipments and pay for them before they actually needed the merchandise. The internal auditors also discovered that Frank Campbell put pressure on the accountants to record the shipments to show the sales. Their concerns were discussed with
(TCOs 3, 4, 5, & 7) During the past two years, through extensive advertising and improved customer relations, Beech Corporation estimated that it had developed customer goodwill worth $100,000. For the current year, determine the amount of goodwill Beech Corporation may amortize. Question 6. (TCOs 3, 4, 5, & 7) Damien, not a dealer in real estate, sold real estate with a basis of $250,000 for $500,000 cash, a note for $250,000, and the buyer assumed Damien’s mortgage on the property of $125,000. During the year, the purchaser paid Damien $30,000 principal and $72,000 interest on the note and paid $6,000 principal and $18,000 interest on the mortgage he assumed.
PLANNING DOCUMENT FOR VIKING INVESTMENTS Role: SANDY WOOD, WoodCrafters, Inc. What issue is the most important to you? (List in order of importance) 1. To persuade Pat Olafson, the owner of Viking Investments, to pay entire outstanding invoice in cash within 15 days. Alternatively, aim for invoice payment of $700,000 in 15 days, the rest in 30 days 2. To persuade Pat not to recall the $200,000 loan 3.
So, Dividend Yield is 0% for 2002 and 2003. The increase in Earnings per share from $0.49 in 2002 to $0.61 in 2003 evidence of the growth potential of the company. Company’s asset has also grown in 2003. This indicates that Krispy Kreme’s stock is a “Growth Stock” and explains why it has not paid any dividend. “We intend to retain our earnings to finance the expansion of our business and do not anticipate paying cash dividends in the foreseeable future……Dividend Payments are restricted by our bank credit facilities to 50% of our net income for the immediately preceding fiscal year.”i Cash Flow Statement Analysis: Krispy Kreme uses the Indirect Method of reporting Operating Cash Flows.
The card has an Interest rate of 15.99% p.a. on purchase but Stgeorge offer an Interest free period Up to 55 days interest free on purchases. But has high fees for internet banking and lost or damaged cards. A few of the complimentary insurances this credit card has is Complimentary overseas travel insurance cover which allows you to Protect you and your family for trips up to 3 months when you pay for your return tickets prior to leaving Australia using your Gold Card. Unlimited medical expenses cover Up to $10,000 per person for loss or damage to personal items.
Task Lords & Ladies Boutique wishes to expand and has borrowed $250,000. As a condition for making this loan, the bank requires that the store maintain a current ratio of at least 1.50. Business has been good but not great. Expansion costs have brought the current ratio down to 1.40 at 15 June. Josh Hwan, owner of the boutique, is considering what might happen if the business reports a current ratio of 1.40 to the bank. One course of action for Hwan is to record in June some revenue that the business will earn in July of next year.
The most expensive part of the law required positive train controls (allowing remote operators to take control of a train if necessary) be installed on most trains at a cost “between $9.6 billion and $13.3 billion over 20 years.” The benefit-cost calculations performed by the Federal Railroad Administration (FRA) were just “$440 million to $674 million over 20 years” (Steiner, 2012, p. 350). This is a ratio of more than 20:1 (cost over benefit) for just one of the new regulations imposed; the FRA estimated that the new regulations would also require railroads to spend an additional 1.7 million hours per year on new paperwork requirements (Steiner, 2012, p. 350). 2.0 Case Study Analysis Question 1: What were the causes of the Metrolink accident? Causes of the Metrolink accident can easily be broken into the naturally disjoint categories of proximate and distal causes. The