As part of its international expansion program, Acme, a U.S. multinational enterprise (MNE), is currently in the planning stages of establishing a Greenfield (see text glossary for definition) production facility overseas. You have been asked to present a proposal to the steering committee comparing the advantages and disadvantages of starting operations in one of two selected foreign countries. The steering committee has determined that one alternative must be a member of the European Union (EU) while the other cannot be a member of the EU. Subject to these conditions, you may choose any two foreign countries, except China, India, Czech Republic, and Romania for comparison. Deliverable: There are many factors to consider in your comparative analysis. Please be sure to include, among other topics, a discussion of the different countries' currencies, trade policies and cultural variables that may affect operations and profitability in each country. Your report should conclude with a recommendation and supporting rationale as to which country should be selected for the new facility.
Thursday, February 20, 2020
FIN 630 Acme Czeck Forex Answer
Free Cash flows are estimated as follows:
• Year 1 - 38.63M Czech Koruna (CZK), Year 2 - 44.33 M CZK,
• Year 3 - 50.48M CZK
• The third year terminal value is estimated at 375M CZK.
The Czech Koruna's exchange rate is assumed to be .038 USD/CZK for each year. Acme uses a WACC of 13 % for its domestic projects. So, the PV of the FCF's for the firm is 363.78 M CZK or $13.82M. The Czech firm has 1,000,000 shares outstanding and a debt to equity ratio of 1:1. Current market price is 185 CZK per share.
All monetary information (except per share) should be presented in CZK millions (i.e., do not convert to USD).
1. Should Acme make a deal if its policy is to never exceed a 20% premium in any tender offer? To defend your position, you must prepare and present an Excel template that includes the calculated fair value premium over market.
2. What changes in the analysis or additional analysis do you suggest before a final decision should be made?
3. Using the DCF methodology required in question 1, please take one of your suggestions and reevaluate the buy-out. To complete this question, you will have to present a second Excel template that includes your new assumed values and supports your recommendations. Further, please comply with the following:
• Assumptions must be reasonable – i.e., don't select arbitrary values. Some discussion should be provided that explains how you arrived at your new assumed values.
• Variable changes should be restricted to the discount rate, the FCFs, and/or the terminal value. Please present only one set of assumptions (e.g., do not submit a table that includes multiple values for the same variables.)
• To demonstrate that you have successfully prepared the Excel template, no two students may use the same values. To help ensure that your values are unique, please use a minimum of three significant (i.e., non-zero) digits to the right of the decimal point.
FIN 630 Acme and acquisition of EU non-EU
Acme, a United States firm, has been in acquisition talks with two different European firms. JEL Industries is headquartered in a country that is part of the European Union (EU), and uses the Euro, while DBC Industries is headquartered in a European country that does not belong to the Union and does not use the Euro as their primary currency. Based only on the knowledge of whether or not the firm is located in a country within or outside of the European Union, recommend one of the organizations and explain why you selected that organization. In your response be sure to describe the implications of running a business in a country that is within or outside of the European Union. Describe the advantages and disadvantages of the choice you made
Activity -Outside Sales Position -2019
Activity Instructions: Outside Sales Position
This activity is comprised of three (3) parts. Your Activity responses should be both grammatically and mechanically correct and formatted in the same fashion as the Activity itself. If there is a Part A, your response should identify a Part A, etc. In addition, you must appropriately cite all resources used in your response and document them in a bibliography using APA style. (100 points) (A 4-page response is required for the combination of Parts A, B, and C.)
| Part A | You are in the recruiting department of a fairly large national wholesale distributor of widgets. Examine the following job description for an outside salesperson to sell widgets to truckers in Alabama. Write four (4) effective, legal, behavioral questions that might be used in a job interview and explain why you would ask each particular question. (52 points)
|
ACC500 Managerial Accounting FINAL
ACC500 Managerial Accounting
Final Exam
1) Dubuque Company has the following sales budget:
Month Cash Sales Credit Sales
February $14,000 $28,000
March 12,800 29,200
April 10,800 26,400
Collections of credit sales are 40% in the month of sale, 50% in the month after sale and 10% two months after sale. No uncollectible accounts are expected.
Required:
Prepare a schedule of cash collections for April.
2) The Drew Company has the following information available:
Month Budgeted Sales
March $150,000
April 153,000
May 151,000
June 254,500
July 252,500
The gross profit rate is 40% and the desired ending inventory level is 20% of the next month's cost of sales.
Required:
Prepare a purchases budget for April, May and June.
3) Direct Material Direct Labor
Std. price per unit of input $12 per foot $14 per hour
Actual price per unit of input $14 per foot $13 per hour
Std. inputs allowed per unit of output 5 feet 3 hours
Actual units of input 2,500 feet 1,550 hours
Actual units of output 600 units
Required:
Compute the price and quantity variances for direct materials and direct labor.
4) Progressive Company produces a product in a process-costing system involving several departments. The company uses the weighted-average method of product costing. The first department's data for the month of April follow:
Units in beginning work-in-process inventory 25,000
Units started during April1 155,000
Units completed during April 140,000
Units in ending work-in-process inventory 40,000
Direct materials added in current month $188,000
Conversion costs added in current month $175,000
Direct materials–beginning work-in-process inventory $35,750
Conversion costs–beginning work-in-process inventory $6,225
Stage of Completion:
Materials Conversion Costs
Beginning work-in-process inventory 100% 50%
Ending work-in-process inventory 100% 35%
Required:
A) Compute equivalent units for materials and conversion costs.
B) Compute the cost per unit for materials and conversion costs.
C) Compute the cost of the units transferred.
D) Compute the cost of the ending work-in-process inventory.
5) Splitsville Company has two departments. Factory overhead costs are applied based on direct labor cost in Department A and machine hours in Department B. The following information is available:
Budgeted Items Dept. A Dept. B
Direct labor cost $190,000 $165,000
Machine hours 51,000 50,000
Factory overhead cost $325,000 $280,000
Actual data for Job #10 are as follows:
Actual Items Dept. A Dept. B
Direct materials requisitioned $20,000 $16,000
Direct labor cost $17,000 $24,000
Machine hours 7,000 5,000
Required:
A) Compute the budgeted factory overhead rate for Department A.
B) Compute the budgeted factory overhead rate for Department B.
C) What is the total overhead cost for Job #10?
D) If Job #10 consists of 50 units of product, what is the unit cost of this job?
ACC 561– Ideal Manufacturing Company- 8.8.2017
MANAGERIAL ANALYSIS
BYP17-2 Ideal Manufacturing Company of Sycamore, Illinois, has supported a research and development (R&D) department that has for many years been the sole contributor to the company's new farm machinery products. The R&D activity is an overhead cost center that provides services only to in-house manufacturing departments (four different product lines), all of which produce agricultural/farm/ranch related machinery products. The department has never sold its services outside, but because of its long history of success, larger manufacturers of agricultural products have approached Ideal to hire its R&D department for special projects. Because the costs of operating the R&D department have been spiraling uncontrollably, Ideal's management is considering entertaining these outside approaches to absorb the increasing costs. But, (1) management doesn't have any cost basis for charging R&D services
to outsiders, and (2) it needs to gain control of its R&D costs. Management decides to implement an activity-based costing system in order to determine the charges for both outsiders and the inhouse users of the department's services.
R&D activities fall into four pools with the following annual costs.
Market analysis $1,050,000
Product design 2,350,000
Product development 3,600,000
Prototype testing 1,400,000
Activity analysis determines that the appropriate cost drivers and their usage for the four activities are:
Total
Activities Cost Drivers Estimated Drivers
Market analysis Hours of analysis 15,000 hours
Product design Number of designs 2,500 designs
Product development Number of products 90 products
Prototype testing Number of tests 500 tests
Instructions
(a) Compute the activity-based overhead rate for each activity cost pool.
(b) How much cost would be charged to an in-house manufacturing department that consumed 1,800 hours of market analysis time, was provided 280 designs relating to 10 products, and requested 92 engineering tests?
(c) How much cost would serve as the basis for pricing an R&D bid with an outside company on a contract that would consume 800 hours of analysis time, require 178 designs relating to 3 products, and result in 70 engineering tests?
(d) What is the benefit to Ideal Manufacturing of applying activity-based costing to its R&D activity for both in-house and outside charging purposes?
8.aug2017-ACC291 Principles of Accounting II Final Exam
A.
Bad Debts Expense ................ ................ $15,000
Allowances for Doubtful Accounts ................ ................ $15,000
B.
Bad Debts Expense ................ ................ $12,000
Allowances for Doubtful Accounts ................ ................ $12,000
C.
Bad Debts Expense ................ ................ $12,000
Accounts Receivable ................ ................ ................. $12,000
D.
Bad Debts Expense ................ ................ $15,000
Accounts Receivable ................ ................ ................. $15,000
2) Using the percentage of receivables method for recording bad debts expense, estimated uncollectible accounts are $15,000. If the balance of the Allowance for Doubtful Accounts is $3,000 credit before adjustment, what is the amount of bad debts expense for that period?
A.
$15,000
B.
$12,000
C.
$18,000
D.
$8,000
3) Intangible assets
A.
should be reported under the heading Property, Plant, and Equipment
B.
should be reported as a separate classification on the balance sheet
C.
should be reported as Current Assets on the balance sheet
D.
are not reported on the balance sheet because they lack physical substance
4) Intangible assets are the rights and privileges that result from ownership of long-lived assets that
A.
must be generated internally
B.
are depletable natural resources
C.
do not have physical substance
D.
have been exchanged at a gain
5) The book value of an asset is equal to the
A.
asset's market value less its historic cost
B.
blue book value relied on by secondary markets
C.
replacement cost of the asset
D.
asset's cost less accumulated depreciation
6) Gains on an exchange of plant assets that has commercial substance are
A.
deducted from the cost of the new asset acquired
B.
deferred
C.
not possible
D.
recognized immediately
7) Ordinary repairs are expenditures to maintain the operating efficiency of a plant asset and are referred to as
A.
capital expenditures
B.
expense expenditures
C.
improvements
D.
revenue expenditures
8) Costs incurred to increase the operating efficiency or useful life of a plant asset are referred to as
A.
capital expenditures
B.
expense expenditures
C.
ordinary repairs
D.
revenue expenditures
9) When an interest-bearing note matures, the balance in the Notes Payable account is
A.
less than the total amount repaid by the borrower
B.
the difference between the maturity value of the note and the face value of the note
C.
equal to the total amount repaid by the owner
D.
greater than the total amount repaid by the owner
10) The interest charged on a $200,000 note payable, at a rate of 6%, on a 2-month note would be
A.
$12,000
B.
$6,000
C.
$3,000
D.
$2,000
11) If a corporation issued $3,000,000 in bonds which pay 10% annual interest, what is the annual net cash cost of this borrowing if the income tax rate is 30%?
A.
$3,000,000
B.
$90,000
C.
$300,000
D.
$210,000
12) Hilton Company issued a four-year interest-bearing note payable for $300,000 on January 1, 2011. Each January the company is required to pay $75,000 on the note. How will this note be reported on the December 31, 2012 balance sheet?
A.
Long-term debt, $300,000.
B.
Long-term debt, $225,000.
C.
Long-term debt, $150,000; Long-term debt due within one year, $75,000.
D.
Long-term debt, $225,000; Long-term debt due within one year, $75,000.
13) A corporation issued $600,000, 10%, 5-year bonds on January 1, 2011 for 648,666, which reflects an effective-interest rate of 8%. Interest is paid semiannually on January 1 and July 1. If the corporation uses the effective-interest method of amortization of bond premium, the amount of bond interest expense to be recognized on July 1, 2011, is
A.
$30,000
B.
$24,000
C.
$32,434
D.
$25,946
14) When the effective-interest method of bond discount amortization is used
A.
the applicable interest rate used to compute interest expense is the prevailing market interest rate on the date of each interest payment date
B.
the carrying value of the bonds will decrease each period
C.
interest expense will not be a constant dollar amount over the life of the bond
D.
interest paid to bondholders will be a function of the effective-interest rate on the date the bonds were issued
15) If a corporation has only one class of stock, it is referred to as
A.
classless stock
B.
preferred stock
C.
solitary stock
D.
common stock
16) Capital stock to which the charter has assigned a value per share is called
A.
par value stock
B.
no-par value stock
C.
stated value stock
D.
assigned value stock
17) ABC, Inc. has 1,000 shares of 5%, $100 par value, cumulative preferred stock and 50,000 shares of $1 par value common stock outstanding at December 31, 2011. What is the annual dividend on the preferred stock?
A.
$50 per share
B.
$5,000 in total
C.
$500 in total
D.
$.50 per share
18) Manner, Inc. has 5,000 shares of 5%, $100 par value, noncumulative preferred stock and 20,000 shares of $1 par value common stock outstanding at December 31, 2011. There were no dividends declared in 2010. The board of directors declares and pays a $45,000 dividend in 2011. What is the amount of dividends received by the common stockholders in 2011?
A.
$0
B.
$25,000
C.
$45,000
D.
$20,000
19) When the selling price of treasury stock is greater than its cost, the company credits the difference to
A.
Gain on Sale of Treasury Stock
B.
Paid-in Capital from Treasury Stock
C.
Paid-in Capital in Excess of Par Value
D.
Treasury Stock
20) The purchase of treasury stock
A.
decreases common stock authorized
B.
decreases common stock issued
C.
decreases common stock outstanding
D.
has no effect on common stock outstanding
21) Marsh Company has other operating expenses of $240,000. There has been an increase in prepaid expenses of $16,000 during the year, and accrued liabilities are $24,000 lower than in the prior period. Using the direct method of reporting cash flows from operating activities, what were Marsh's cash payments for operating expenses?
A.
$228,000
B.
$232,000
C.
$200,000
D.
$280,000
22) Where would the event purchased land for cash appear, if at all, on the indirect statement of cash flows?
A.
Operating activities section
B.
Investing activities section
C.
Financing activities section
D.
Does not represent a cash flow
23) In performing a vertical analysis, the base for cost of goods sold is
A.
total selling expenses
B.
net sales
C.
total revenues
D.
total expenses
24) Blanco, Inc. has the following income statement (in millions):
BLANCO, INC.
Income Statement
For the Year Ended December 31, 2011
Net Sales .............................. $200
Cost of Goods Sold .............................. 120
Gross Profit .............................. 80
Operating Expenses .............................. 44
Net Income .............................. $ 36
Using vertical analysis, what percentage is assigned to Net Income?
A.
100%
B.
82%
C.
18%
D.
25%
25) Dawson Company issued 500 shares of no-par common stock for $4,500. Which of the following journal entries would be made if the stock has a stated value of $2 per share?
A.
Cash ........................................................... $4,500
Common Stock 4,500
B.
Cash .................................... $4,500
Common Stock 1,000
Paid-In Capital in Excess of Par 3,500
C.
Cash ...................... $4,500
Common Stock 1,000
Paid-In Capital in Excess of Stated Value 3,500
D.
Common Stock ........................................................... $4,500
Cash 4,500
26) Andrews, Inc. paid $45,000 to buy back 9,000 shares of its $1 par value common stock. This stock was sold later at a selling price of $6 per share. The entry to record the sale includes a
A.
credit to Paid-In Capital from Treasury Stock for $9,000
B.
credit to Retained Earnings for $9,000
C.
debit to Pain-In Capital from Treasury Stock for $45,000
D.
debit to Retained Earnings for $45,000
27) Which of the following is a fundamental factor in having an effective, ethical corporate culture?
A.
Efficient oversight by the company's Board of Directors
B.
Workplace ethics
C.
Code of conduct
D.
Ethics management programs
28) Two individuals at a retail store work the same cash register. You evaluate this situation as
A.
a violation of establishment of responsibility
B.
a violation of segregation of duties
C.
supporting the establishment of responsibility
D.
supporting internal independent verification
29) The Sarbanes-Oxley Act imposed which new penalty for executives?
A.
Fines
B.
Suspension
C.
Criminal prosecution for executives
D.
Return of ill-gotten gains
30) The Sarbanes-Oxley Act requires that all publicly traded companies maintain a system of internal controls. Internal controls can be defined as a plan to
A.
safeguard assets
B.
monitor balance sheets
C.
control liabilities
D.
evaluate capital stock
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