SolvGen Case Write Up Facts: SolvGen Inc., an SEC registrant, is a pharmaceutical development company. SolvGen entered into a five-year research and development agreement with Careway Pharma Inc. on January 1, 2010. The research and development agreement calls for SolvGen to further develop proprietary instrument systems. 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).
• Compute and illustrate the effect on the income statement for the year ended Dec 31, Year 1, and for the balance sheet as of Dec. 31, Year 1. • Construct a table showing payments of interest and principal made every year for the five year lease term • Construct a table showing expenses charged tot eh income statement for the five year lease term if the equipment is leased. Show a column for amortization, interest and total expenses. • Discuss the income and cash flow implications from this capital lease. Problem 2 On January 1, Borman Company, a lessee, entered into three non-cancellable leases for new equipment identified as J, K and L. None of the three leases transfers ownership of the equipment to Borman at the end of the lease term.
Price = $ d)9% pa simple discount and a 360 day year. Price = $ ------------------------------------------------- - Feedback a)You are correct. The data can be displayed on a time line as follows: | | | $100,000 | | | 0 | 133 | $P | | | | P | = | Price | = | unknown | | S | = | Face value | = | $100,000 | | r | = | Simple interest rate (decimal) | = | 9 |
5, 6) Lima Parts, Inc., shows the following overhead information for the current period: Actual overhead incurred $ 29,400 2/3 of which is variable Budgeted fixed overhead $ 8,640 per hour Standard variable overhead rate per direct labor-hour $ 9.00 Standard hours allowed for actual production 2,350 hours Actual labor-hours used 2,200 hours ________________________________________ Required: What are the variable overhead price and efficiency variances and fixed overhead price variance? (Input all amounts as positive values. Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Omit the "$" sign in your response.) Amounts Variable overhead: Price variance $ (0%) (0%) Efficiency variance $ (0%) (0%) Fixed overhead: Price variance $ (0%) (0%) ________________________________________ P16-45 Overhead Variances (L.O.
• The milestone consideration must be reasonable relative to all deliverables and payment terms in the arrangement” Once the company has set the milestones it will recognize the revenue in the period that the milestone is achieved. MILESTONE RECOGNITION and DELIVERABLES The deliverables for SolvGen Inc that compromise to make the milestones are the research phase and the completion/launch of the instrument systems. Since SolvGen is launching different versions of their instrument systems, there are multiple milestones that the company will account for. With the project going on for five years the milestone are set by when the phases have been accomplished and the instrument systems have been launched.
Tiffanie Murray April 30, 2012 Arbitration Exercise ROSE ENTERPRISES And SAGLE ELETRONICS DECISION APRIL 30, 2012 Decision by member Tiffanie Murray for the Authority I. Introduction and Background On December 1, 2010 Rose Enterprises entered into a contract with Sagle Electronics for the period of January 1, 2011 through December 31, 2014. Both parties agreed on the following terms, Sagle has been contracted to upgrade Roses computer systems and provide technical support for a period of three years, under the terms Sagle will be compensated 50,000 for the system upgrade. Sagle will be paid in two installments of 25,000, with the last installment to be paid upon completion. Sagle has agreed to be completed within 60
McBride Marketing McBride Marketing Paper Kenneth Gilbert Marcia Reid BSA/310 2 McBride Marketing 2 McBride Financial Services has set a goal to be the premiere mortgage service provider covering a five state area that includes North Dakota, South Dakota, Montana, Wyoming and Idaho, with the headquarters located in Boise Idaho. They plan to have all five locations up and running and showing profits within the first six months accomplishing these goals with the most recent technology available to them. In order for this goal to be attainable McBride Financial will need to implement a marketing research plan that will better determine the best avenues to approach in the area of marketing their services The first step in the process is to determine the information needed to effectively evaluate the market and the type of market available within the five state area. This would include determining the demographic of the area
Abbott Laboratories Problem February 3, 2014 Abbott Laboratories After reading the Value Lines figures and information on Abbott Laboratories in the Questions and Problems section of Chapter 6 (just before Problem 27), complete the following Problems: Problem 27: What is the sustainable growth rate and required return for Abbott Laboratories? Using these values, calculate the 2010 share price of Abbott laboratories Industries stock according to the constant dividend growth model. The dividend = 1.60 for 2009. The growth rate is calculated as follows: 1-(1.6/3.65) = .5616 g=28%*.5616 = 15.72% Discount rate: k=3.13%+-.60(7%) = 7.33% 2010 share price: Po = 1.6(1.15)/.07-.15 = $26.14 share price Problem 28: Using the P/E, P/CF, and P/S ratios, estimate the 2010 share price for Abbott Laboratories. Use the average stock price each year to calculate the price ratios.
Introduction: Recently Eye Vision Inc. has entered into a contract with Holland Hospital to sell its Clear View Laser. Included in the contract is a two-year maintenance plan that Holland Hospital has elected to purchase. This information is included in Audit Senior Jason Doolittle's memo to Eye Vision’s Audit Working Papers in conjunction with the first quarter review of the revenue line items for Eye Vision. Given this information, several determinations must be made in coordination with the Accounting Procedures contained within the FASB Codification. First, the determination needs to be made that the software is essential to the tangible product's functionality, leading to a conclusion of whether or not the agreement between Eye Vision