MassBike’s corporation is currently unlevered, has equity valued at $4.25 million, and has earnings before interest and tax of $1.25 million. In order to save on taxes, MassBike’s CEO suggests that the firm should issue debt and use the proceeds to retire shares of stock. The capital structure change results in $1.20 million of new debt with an annual interest expense of 8 percent. How much in taxes will MassBike save, per year, as a result of the decision to issue debt? Use a corporate tax rate of 34 percent.1. $32,6402. $408,0003. $56,0004. $642,3505. $52,420

 

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Master Budget ExercisesComplete the following three exercises and submit to your instructor. Be sure to show your work for calculations to earn full credit.Sales and Production Budgets (8-12): The marketing department of Jessi Corporation has submitted the following sales forecast for the upcoming fiscal year (all sales are on account): 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterUnits to be produced 12,000 14,000 13,000 11,000The selling price of the company’s product is $18.00 per unit. Management expects to collect 65% of sales in the quarter in which the sales are made, 30% in the following quarter, and 5% of sales are expected to be “‘uncollectible. The beginning balance of accounts receivable, all of which is expected to be collected in the first quarter, is $70,200. The company expects to start the first quarter with 1,650 units in finished goods inventory. Management desires an ending finished goods inventory in each quarter equal to 15% of the next quarter’s budgeted sales. The desired ending finished goods inventory for the fourth quarter is 1,850 units. Prepare the company’s sales budget and schedule of expected cash collections. Prepare the company’s production budget for the upcoming fiscal year. Direct Materials and Direct Labor Budgets (8-13): The production department of Hareston Company has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterUnits to be produced 7,000 8,000 6,000 5,000In addition, the beginning raw materials inventory for the first quarter is budgeted to be 1,400 pounds and the beginning accounts payable for the first quarter is budgeted to be $2,940. Each unit requires 2 pounds of raw material that costs $1.40 per pound. Management desires to end each quarter with an inventory of raw materials equal to 10% of the following quarter’s production needs. The desired ending inventory for the fourth quarter is 1,500 pounds. Management plans to pay for 80% of raw material purchases in the quarter acquired and 20% in the following quarter. Each unit requires 0.60 direct labor-hours and direct labor-hour workers are paid $14.00 per hour. Prepare the company’s direct materials budget and schedule of expected cash disbursements for purchases of materials for the upcoming fiscal year. Prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. Direct Labor and Manufacturing Overhead Budgets (8-14): The production department of Raredon Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year: 1st Quarter 2nd Quarter 3rd Quarter 4th QuarterUnits to be produced 12,000 14,000 13,000 11,000Each unit requires 0.70 direct labor-hours, and direct labor-hour workers are paid $10.50 per hour. In addition, the variable manufacturing overhead rate is $1.50 per direct labor-hour. The fixed manufacturing overhead is $80,000 per quarter. The only noncash element of manufacturing overhead is depreciation, which is $22,000 per quarter. Prepare the company’s direct labor budget for the upcoming fiscal year, assuming that the direct labor workforce is adjusted each quarter to match the number of hours required to produce the forecasted number of units produced. Prepare the company’s manufacturing overhead budget.

 

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MASTER OF BUSINESS ADMINISTRATION PROGRAM

MANAGERIAL ACCOUNTING 631

SPRING SEMESTER 2019

CASE No. 2

Salam Drugs makes generic prescription drugs. It relies on its sales personnel to market and sell its products widely to pharmacies, doctors, and hospitals. While Salam has always been profitable, revenues have been stagnant over the last 5 years. In contrast, other generic drug companies recorded significant revenue growth over the same period.

After careful investigation, Salam’s CEO, Ms. Hajar, concludes that an important reason for the lack of revenue growth is the way the incentive system is set up for the company’s sales personnel, coupled with the role sales personnel play in the annual budgeting process. Currently, an average salesperson receives a fixed annual salary of $40,000, and a bonus of $20,000 for meeting or exceeding an annual sales target of $400,000. A look at the records was enough for Ms. Hajar to realize that hardly any member of the sales team exceeded the target of $400,000 by much (the maximum recorded sales was only $426,000), and many of them were just about meeting this target. The sales target itself was set every year in consultation with the sales team, and the target had not moved up in the last five years to reflect any growth.

It was clear to Ms. Hajar that the sales team was “low-balling” the target to be able to comfortably meet it and qualify for the bonus. They also seemed to stop once they met the target. Yet, Ms. Hajar realized that the sales personnel were in the best position to assess market trends and to help set realistic targets for the company’s planning process. After consulting with experts on sales force compensation, Ms. Hajar come up with four options:

1. Remove the bonus for meeting the target and increase the annual salary to $60,000.

2. Set the target at a level that is 10% higher than what the sales team recommends. Implement a sales commission system whereby a salesperson earns 5% of the amount by which actual sales exceed 90% of the target.

3. Set the target based on industry growth and keep the existing bonus system.

4. Implement a tournament scheme wherein sales personnel are ranked into five performance-based groups and vary the bonus across groups.

Required:

Discuss the relative merits and drawbacks of each scheme from the company’s point of view. Which scheme is likely to put the company on a path of sales growth? 

 

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Master’s in Social Work is an educational program that guides students through development of knowledge, values, and skills associated with the social work profession.

The online format enables a great deal of flexibility in order for working professionals to have access to the social work graduate degree and career preparation. Consider, however, whether any challenges might also accompany learning in an online format.

 a description of a description of two strategies you plan to practice in order to enhance your online learning in the MSW program. Justify your use of each strategy.  you plan to practice in order to enhance your online learning in the MSW program. Justify your use of each strategy. 

 Seipel, M. M., Johnson, J. D., & Walton, E. (2011). Desired characteristics for MSW students and social work employees: Cognitive versus personal attributes. Journal of Social Work Education, 47(3), 445–461. 

https://academicguides.waldenu.edu/waldeneguide/eguidesupport2#successstrategies

http://academicguides.waldenu.edu/writingcenter/assignments/discussionpost

http://academicguides.waldenu.edu/ASCsuccess/

 

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Falling raindrops frequently develop electric charges. Does this create noticeable forces between the droplets? Suppose two 1.8 mg

drops each have a charge of +21 pC. The centers of the droplets are at the same height and 0.36 cm apart.

Part A

What is the approximate electric force between the droplets?

Express your answer with the appropriate units.

Part B

What horizontal acceleration does this force produce on the droplets?

Express your answer with the appropriate units.

Mastering PhysicsCourse Home@ My Courses<HWVK # 7 Ch 20Course HomeProblem 20 . 10< ) 2 Of 12 ( >SyllabusScoresan Review | Constants | Periodic TablePart AeTextFalling raindrops frequently develop electric charges .Does this create noticeable forces between the*What is the approximate electric force between the droplets ?"droplets ? Suppose two 1.8 Ing drops each have aStudy Aredcharge of + 21 PC . The centers of the droplets are atExpress your answer with the appropriate units.the same height and 0. 36 cm apart ."Document Sharing` # O E`?User SettingsF` =ValueUnitsCourse ToolsSyou’llRequest AnswerPart BWhat horizontal acceleration does this force produce on the droplets ?Express your answer with the appropriate units .* # OE`Q =ValueUnitsSyou’llRequest AnswerProvide FeedbackNext >(@ Pearson

 

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