Monday, March 23, 2015

Prepare Financial Statements from Adjusted Trial Balance Worksheet.

Prepare Financial Statements from Adjusted Trial Balance Worksheet. The 2012 year-end adjusted balances taken from the general ledger of Cooperstown Services, Inc. are listed below in general ledger order. Coopertown Suppliers, Inc. DR CR Cash $12,950
Accounts receivable 28,150 Supplies 8,400 Prepaid insurance 9,500 Land 115,000 Buildings 360,000 Equipment 260,000 Accumulated depreciation $239,900 Accounts payable 35,300 Salaries payable 7,300 Taxes payable Common stock 5,200 31,500 Additional paid-in capital
– Common Retained earnings 15,400 427,600 Dividends 25,400 Service revenue 475,000 Salaries expense 335,600 Depreciation expense 25,100 Supplies expense 12,950 Insurance expense 8,200 Miscellaneous expense 30,850 Utilities expense 5,100 Total $1,237,200 $1,237,200
Transfer these accounts and balances to a spreadsheet worksheet and prepare an Income statement, a Classified Balance Sheet, and a Statement of Retained Earnings all in good form using proper headings for each statement. Note that Cooperstown is a service
company so there is no cost of goods sold in its chart of accounts. Also, assume that all the liabilities are current liabilities. Keep in mind that you should not report any accounts without balances in your statements.





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Analysis of Price Elasticity of a Product







Analysis of Price Elasticity of a Product
ECO / 561








Analysis of Price Elasticity of a Product
Abstract
Below report contains various types of elements which includes introduction about the company, market structure, relationship between pricing and elasticity of the product, non-pricing strategies and in last the conclusion is given. In introduction of the company the structure and rank of the Samsung is defined with their competitors as well as their strategy of owning the market. Furthermore the market structure in which the company operates is given which is perfect competition. Their survival in this dominated market is due to their unique ways to thinking in addition the relationship between the price and the elasticity of the product is defined in which it is clear that the company is trying to capture the high income earners at initial level but after that they are lowering their prices to target medium earners which means that a slight decrease in the price will increase their sales more.
Effects of changes in the pricing strategy on the variable cost and fixed cost is also elaborate in the below chart in which marginal revenue and marginal cost is calculated according to their formulas. After those non-pricing strategies are given in which advertisement, promotion and incentive schemes are included. Samsung adopts the unique ways of advertisement so they can attractive more customers through the internal ton market. Furthermore the effect on cost structure due to changes in the business operation techniques are defined with appropriate examples in detail. In last but not lease the conclusion and references are given to make the report easily understandable.

Introduction
Samsung is the one of the best brand of selling smartphones. It ranks first globally in all smartphone selling companies. It captures most of the market internationally as it cell phones are very unique in design and technology with high quality features. Recently it has launched a new cell phone names Samsung Galaxy 5 which is also known as S5. It was distributed in all the major markets such Asia, United Kingdom, America etc. Market was dominated by the launch of this product and everybody was willing to purchases this smart phone. As the product is technology high and unique so the elasticity of this product is very much sensitive which means that by a slight change in the price of the product the sales will grow more as the demand of this product is high but only due to heavy prices every individual can’t buy this, so if it’s prices are lower down so more people will be attracted towards it.
Market Structure
There are various types of markets structure exists such as monopoly, perfect competition etc. Samsung Company operates in the perfect competition, as there are various types of competitor exist in the industry such as Nokia, Apple, and Sony Ericson etc. all these are very competitive and are very much risky for Samsung success if Samsung lacks in the performance or strategy. Currently Samsung enjoys the top position among all these companies due to their unique way of thinking and high quality technology.

Relationship between Pricing and Elasticity
Elasticity of the product is something which affects the selling of the product. In other words we can say that by change the price of the product the quantity demand of the product will be change but how much it depends on the nature of the product. For example the products which are the basic need of the people will not get affect by the increase in the price because how much the cost is people need to have that product.
Our product is not a basic one; it is the luxury phone with high level features. So if the increase the price of the product the sales of our product will decrease but if we decrease our prices the sales will increase more as compared to other situation. Our product is mostly purchased by the high level income earners so they do not think about few dollars, so the increase or decrease in the price will not hit those buyers but a decrease will capture the market of medium level earners, because a reasonable amount could be afforded by them.
Effects of change in quantity demanded on marginal revenue and marginal cost

Quantity

Price
Marginal Revenue
Total Revenue
Total Cost
Fixed Cost
Variable Cost
Marginal Cost
10
80000
80000
800000
500000
200000
300000
30000
20
75000
70000
1500000
800000
200000
600000
30000
30
70000
60000
2100000
1100000
200000
900000
30000
40
65000
50000
2600000
1400000
200000
1200000
30000
50
60000
40000
3000000
1700000
200000
1500000
30000
60
55000
30000
3300000
2000000
200000
1800000
30000
70
50000
20000
3500000
2300000
200000
2100000
30000

In above chart the fixed cost remain same due to the change in quantity demand but the variable cost per unit will increase according to the level of activity increases. Marginal revenue is calculated by change in the revenue / change in the quantity and marginal cost is increased due to change in the total cost / change in the quantity.
Non –Pricing Strategies
There are various types of non –pricing strategies to put entry barriers for new arrivals/ rivals. Some of them are described below
Advertising
Advertising is one of the vital elements of increasing the sales through non pricing, in which the company uses various ways to make aware the customer about their products. They highlight the important and unique features in there advertisement and they make different advertisement for every different market.
Samsung Company uses highly professional and unique ways to advertise their product, they have highly qualified professional for this purpose which represent the product of Samsung’s in such a way that it looks more attractive and capture the more market. Advertisement is also necessary to remind the customers about their product and make them aware of changes in the features and prices as the prices are changed frequently in this type of business.
Promotions and Incentives
Besides advertisement there are other ways too, in which company usually offers incentives on the purchases of their product or they promote their product by different ways like free selling for some periods or at discounted prices. Samsung company do not requires this type of methods because they are already at top level of market and their company is going well already.
Change in business Operation
If the company changes their way of operating their operations or changes the techniques to produce their product so this will effect on their cost too which are fixed and variable. Samsung currently is operating by hiring high level professionals to produce their cell phones and they operate in house. But if they changes their ways of operations such as outsourcing the production department so their cost will be changed accordingly and they may cost more or less depends upon the outsourcing company. Samsung pays their employees on monthly basis and bonus and commissions are also paid to sales person according to their sales revenue but if they change this and start a new way of paying their employees such as wages basis, no commission and bonuses but on different parameters, this will also change their cost structure which is fixed and variable. This cost structure will affect the company’s profit and their success because more cost will reduce down the profit but this can be vice versa too because due to change in the cost structure it is possible that the costs are decrease hence profits will be increased.
Conclusion
From all the above discussion and data on charts it is crystal clear that the Samsung company is operating at very high level technology and getting success day by day as compare to their competitors. Their 1st position globally is the evidence of this statement. They are also trying to capture the medium level earners market because they are decreasing their prices and by decrement of every 5000 the increase in the quantity is of 10 units which will increase their revenue accordingly. They have to be very careful in their performance, strategy and cost control because they are facing very highly competitive competitors who will beat Samsung if it lacks slightly even. Nokia is the most immediate rival of Samsung Company because it ranks second in this market.  Samsung is also doing good advertisement to enhance their level of sales and to increase their market share in internal market so they can secure them from new entries and from existing competitors.











References












Based on this paper , need to add the following information
Required Elements:
   Describe the current global economic conditions and their effect on local macroeconomic indicators for your good or service. 
   Describe the local economy's stage in the business cycle.
Describe how current credit market conditions affect your planning or operating decision for your good or service.
No more than 600 words.



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Sunday, March 22, 2015

MACROECONOMIC NEWS and HEALTHCARE

MACROECONOMIC NEWS and HEALTHCARE.

 1.Scour the national media for a credible macroeconomic current issue (many good sources are available online) in which Chapters 19-21 is at the heart of the matter. Summarize your article for your colleagues and attach
a link to your article. Make sure you appropriately refer to the textbook sections that apply to your chosen article. 2.The healthcare sector is often cited as being fraught with just about every economic imperfection that is known to humankind. Can you identify
and briefly describe ONE of these imperfections? Do you know of any examples? Please provide credible references for each question. 150 words for each.


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Sunday, March 15, 2015

With gasoline proces at $3 per gallon consumers are purchasing hybrids vehicles that get 50 Miles per gallon

With gasoline proces at $3 per gallon consumers are purchasing hybrids vehicles that get 50 Miles per gallon of gasoline. The monthly Payments on a 3 year lease of a hybrid is $499 compared to $399 per month on a conventional equivalent traditional gasoline car that gets 25 Miles per gallon
Both vehicles require a one time $1500 Payments for taxes license and dealer charger
Both vehicles have identical lease term for the residuwaarde value maximum number of Miles allowed without penalty
Calculate how many Miles a consumer must drive per year to make the hybrid the economical choice over the gasoline car
How does this answer change if the price of gasoline is $4 per gallon?


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ABC, Inc. has 6 percent bonds outstanding that mature in 20 years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $814 each

1) ABC, Inc. has 6 percent bonds outstanding that mature in 20 years. The bonds pay interest semiannually and have a face value of $1,000. Currently, the bonds are selling for $814 each. What is the firm's after-tax cost of debt if the tax rate is 27%?
2) Suppose the nominal rate is 21.9% and the inflation rate is 5.3%. Solve for the real rate. Use the Fisher Equation to get your answer.
3) The common stock of ABC Industries is valued at $26.7 a share. The company increases their dividend by 7.4 percent annually and expects their next dividend to be $2.56. What is the required rate of return on this stock?
4) You have observed the following returns on ABC's stocks over the last six years:
19.2%, 3.2%, 13.6%, -4.6%, 14.2%, -2.9%
What is the geometric average returns on the stock over this six-year period.
5) The beta of the risk-free asset is: a)0 b)1 c)1.5 d)2
6) The spot rate for the pound is £0.6673 = $1 and the spot rate for the Canadian dollar is C$1.2369 = $1. What is the £/C$ cross rate? Enter your answer rounded off to FOUR decimal points.
7) One year ago, you puchased 67 shares of ABC stock for $23.3 per share. During the year, you received a dividend of $2.5 per share. Today, you sold all your shares for $27.1. What are the percentage return on your investment?
8) If the market value of debt is $81,289, market value of preferred stock is $91,072, and market value of common equity is 157,134, what is the weight of preferred stock?
9) Suppose that today's stock price is $31. If the required rate on equity is 16.6% and the growth rate is 4.2%, compute the expected dividend (i.e. compute D1)
10) You want to create a portfolio as risky as the market. Suppose you invest your money in Stocks A, B, C, and the risk-free asset. What is the weight of Stock C in your portfolio?
Stock Weights(%) Beta
A 22 1.2
B 28 0.6
C ? 1.3
Rf ? ?
11) Based on the following data, calculate the returns for June 2014
Year Month Div Price
2012 May $0.50 $14.91
2012 June $0.60 $18
2012 July $0.70 $22.12
12) The ABC Company has a cost of equity of 17.1 percent, a pre-tax cost of debt of 6.3 percent, and a tax rate of 26 percent. What is the firm’s weighted average cost of capital if the weight of debt is 36 percent?
13) ABC’s last dividend paid was $6.93, its required return is 14%, its growth rate is 6%. What is ABC's expected stock price in 9 years?
14) The ABC Co. has $1,000 face value stock outstanding with a market price of $870.2. The stock pays interest annually, matures in 10 years, and has a yield to maturity of 11.3 percent. What is the annual coupon amount?
15) A stock just paid a dividend of D0 = $2.3. The required rate of return is rs = 15.1%, and the constant growth rate is g = 3.5%. What is the current stock price?
16) Suppose the exchange rate is $1.3456 per euro. If the euro appreciates by 17% against the dollar, how many euros would a dollar buy tomorrow?
17) ABC Company's last dividend was $3. The dividend growth rate is expected to be constant at 8% for 3 years, after which dividends are expected to grow at a rate of 3% forever. The firm's required return (rs) is 13%. What is its current stock price (i.e. solve for Po)?
19) Below is the stock split data for ABC Company:
Stock
splits
31-Dec-90
31-Dec-91 4 for 1
31-Dec-92
31-Dec-93 7 for 3
31-Dec-94
31-Dec-95
31-Dec-96 1.5 for 1
31-Dec-97
31-Dec-98 2 for 1
31-Dec-99
If you bought 8,952 shares in the beginning of 1990 and during the period of 10 years never bought or sold additional shares, how many shares would you have by the end of 1999?
20) You would like to create a portfolio that is equally invested in a risk-free asset and two stocks. One stock has a beta of 1.67. What does the beta of the second stock have to be if you want the portfolio to have a beta of 1.15?
21) The risk-free rate is 6%, the market risk premium is 10.5%, and the stock’s beta is 1.3. What is the cost of common stock?
22) A bond that sells for less than face value is called as:
a)discount bond b)debenture c) perpetuity d)par value bond d)premium bond
24) ABC company’s market value of common stock is $200 million, preferred stock is $300 million, and debt is $500 million. Suppose that the cost of equity is 7%, the before-tax cost of debt is 3.4%, cost of preferred stock is 6%, and the tax rate is 25%.
27) You are planning a trip to London and plan on spending 15,056 pounds. How many dollars will this trip cost you in dollars if one U.S. dollar is worth 0.5916 pounds.

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39 JOB ORDER COSTING

 Discuss how to allocate overhead between various jobsAlso discuss how to select an activity base and whether it is beat to use one plant-wide cost driverWrite a 350 word paper detailing your discussion response


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Saturday, January 24, 2015

BU340 Managerial Finance I Directions

ASSIGNMENT 03 BU340 Managerial Finance I Directions: Be sure to make an electronic copy of your answer before submitting it to Ashworth College . Unless otherwise stated, answer in complete sentences, and be sure to use correct English spelling and grammar. Sources must be cited in APA format. Your response should be a minimum of one (1) single-spaced page to a maximum of two (2) pages in length; refer to the "Assignment Format" page format requirements. NOTE: Show all of your work in your response. Complete the following Problems located at the end of Chapter 4 in your textbook. NOTE: The problems have been scanned into this document convenience.
1. Cyber Security Systems has sales of 3,000 units at $50 per unit last year. The marketing manager projects a 20 percent increase in unit volume sales this year with a 10 percent proce increase. Returned merchandise will represent 6 percent of total sales. What is your net dollar sales projection year?
2. Delsing Plumbing Company has beginning inventory of 14,000 units, will sell 50,000 units month, and desires to reduce ending inventory to 40 percwnt of beginning inventory. How many units should Delsing produce?
3. At the end of January, Higgins Data Systems had an inventory of 600 units, which cost $16 per unit to produce. During February the company produced 850 units at a cost of $19 per unit. It the firm sold 1,100 units in February, what was its cost of goods sold (assume LIFO inventory accounting)?
4. Victoria’s Apparel has forecast credit sales fourth quarter of the year as: ¬¬¬¬¬¬¬¬¬¬¬¬¬¬¬
September (actual)……..$50,000 Fourth Quarter October…………………$40,000 November……..………..$35,000 December……………….$60,000
Experience has shown that 20 percent of sales receipts are collected in the month of sales, 70 percent in the following month, and 10 percent are never collected. Prepare a schedule of cash receipts ’s Apparel covering the fourth quarter (October through December)
5. The Manning Company has financial statements as shown below which are representative of the company’s historical average. The firm is expecting a 20 percent increase in sales next year, and management is concerned about the company’s need funds. The increase in sales is expected to be carried out without any expansion of fixed assets, but rather through more efficient asset utilization in the existing store. Among Liabilities, only current liabilities vary directly with sales. Using the percent-of-sales method, determine whether the company has external financing needs, or a surplus of funds. (Hint: A profit margin and payout ratio must be found from the income statement)
Income Statement Sales……………………………...$200,000 Expenses………………………….158,000 Earnings before interest and taxes…$42,000 Interest………………………………7,000 Earnings before taxes……………....$35,000 Taxes………………………………..15,000 Earnings after taxes………………....$20,000 Dividends…………………………….6,000
Balance Sheet
Assets
Cash…………………$5,000 Accouts receivable.….40,000 Inventory…………....75,000 Current assets….$120,000 Fixed Assets………....80,000 Total assets………..$200,000 Liabilities and Stockholders’ Equity Accounts payable……..$25,000 Accrued wages…………..1,000 Accrued taxes……………2,000 Current liabilities…...$28,000 Notes papyable…………...7,000 Long-term debt………….15,000 Common stock…………120,000 Retained earnings………..30,000 Total Liabilities and stockholders’ equity….$200,000

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