Sauer Food Company has decided to buy a new computer system with an expected life of three years. The cost is $330,000. The company can borrow $330,000 for three years at 11 percent annual interest or for one year at 9 percent annual interest. Assume interest is paid in full at the end of each year. a. How much would Sauer Food Company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 9 percent rate

Answer:

the  save in interest over the 3 years in the case of 9% rate of interest is $89,100

Explanation:

a. The computation of the save in interest over the 3 years in the case of 9% rate of interest is given below:

= $330,000 × 9% × 3 years

= $89,100

Hence, the  save in interest over the 3 years in the case of 9% rate of interest is $89,100

The same would be considered and relevant too

Esquire Inc. uses the LIFO method to report its inventory. Inventory at January 1, 2021, was $420,000 (21,000 units at $20 each). During 2021, 82,000 units were purchased, all at the same price of $23 per unit. 86,000 units were sold during 2021. Assuming an income tax rate of 25%, what is LIFO liquidation profit or loss that the company would report in a disclosure note accompanying its financial statements

​M&M's Proposition II suggests that in a world of no taxes and no​ bankruptcy, ________. A. in simple​ terms, as the firm adds more debt to the financing​ mix, the shareholders require a higher and higher return on equity such that it exactly offsets the use of the cheaper debt B. no matter what the debtequity ratio​ is, the Ra or WACC of the firm increases with debt C. the value of the firm is sensitive to the funding choice between debt and equity D. Statements​ A, B, and C are all incorrect.

QUESTION ONE (1)
Unibic India: From Fastest Growing Niche Cookie Brand to a Challenger?
In 2007, Lighthouse Funds acquired a 25% stake in Unibic from Unibic Australia for Rs. 200 million. In 2010, Unibic Australia started making losses and wanted to withdraw from the Indian market. At that time, Unibic operated solely in the premium, high-margin cookies segment in India, with a share of around 8%. It had a market presence primarily in south India and was exporting to the Middle East and Hong Kong. It had strategic alliances to make cookies for various private players. However, it was not yet making profits and was cash- strapped...
Over the next few years, Unibic grew rapidly. Its growth was primarily fueled by the changes sweeping through the Indian biscuit industry, wherein glucose biscuits that had dominated the market, gradually lost out to cream biscuits and cookies. The reasons for the shift included rising disposable incomes leading to an increase in consumption of premium biscuits; a larger number of manufacturing facilities of premium biscuits; growing health awareness; innovation bringing in attractive new products; rising affordability of cookies; and increase in eye-catching packaging...
Over the years, Unibic regularly introduced fresh and unique flavors, ultimately producing over 30 variants of cookies. Its products could be broadly categorized into chocolate, butter, milk, savory, and health. The company considered its target market to be between the ages of 14 and 40. It continued its efforts at innovation and produced new products which would appeal to its target market...
In 2015, Unibic had used celebrity endorsement by signing on south Indian actor Shruti Hassan, for over a year. It stated that it wanted someone who was relevant and would give the brand a boost to get to the numbers it wanted in the South...
Unibic didn’t advertise much in print media; TV remained the company’s core focus and got the largest chunk of its advertising spend, followed by digital and OOH. Instead of following the traditional strategy of having a similar marketing campaign across markets, Unibic employed a unique strategy in each market, thereby playing to its strengths in each market while keeping in mind the market conditions and consumption patterns...
From 2019 onward, Unibic started feeling the heat of the economic slowdown in India. The Indian economic slowdown of 2019 led to a serious and continuing decline in the country’s real estate, automobile and construction sectors and in overall consumption demand. The second quarter (July- September) of the financial year (April 2019-March 2020) witnessed a drastic fall in the gross domestic product (GDP) growth rate to 4.5%. The main reasons attributed to the fall in the GDP growth rate were – contraction in manufacturing activity, weakened investments, and lower consumption demand.
As of 2020, Unibic had the largest wire cut cookie manufacturing plant in India. The plant had the capability to manufacture 100 tonnes of cookies each day, with five production lines. While it used 98% of its production capability to produce its own brand, the rest was used to manufacture for private label brands – six in India and 10 across the world. It had annual revenu7 es of Rs. 5 billion. It also exported its products to more than 21 countries including across Australia, North America, the UK, and Europe, Asia, the Middle East, and New Zealand. It derived 45% of its earnings from the south of India.
Questions:
a) Explain three factors that had a negative impact on the financial performance of Unibic in its early years.
b) Which environmental force did Unibic use in segmenting its market? What is this force about? (6 marks)
c) What does the following statement suggest to you about Unibic: “It continued its efforts at innovation and produced new products which would appeal to its target market”? (3 marks)
DC: ACD01-F004

d) Which marketing strategy did Unibic use in 2015 and explain any two (2) reasons why firms adopt that strategy? (9 marks)
e) What main media did Unibic use to implement its marketing strategy? State one advantage of this media. (6 marks)

Firms HL and LL are identical except for their financial leverage ratios and the interest rates they pay on debt. Each has $23 million in invested capital, has $3.45 million of EBIT, and is in the 25% federal-plus-state tax bracket. Firm HL, however, has a debt-to-capital ratio of 50% and pays 12% interest on its debt, whereas LL has a 30% debt-to-capital ratio and pays only 10% interest on its debt. Neither firm uses preferred stock in its capital structure. Calculate the return on invested capital (ROIC) for each firm. Round your answers to two decimal places.

Gary Radio Corporation is a subsidiary of Salem Companies. Gary makes car radios that it sells to retail outlets. It purchases speakers for the radios from outside suppliers for $56 each. Recently, Salem acquired the Hyden Speaker Corporation, which makes car radio speakers that it sells to manufacturers. Hyden produces and sells approximately 200,000 speakers per year, which represents 70 percent of its operating capacity. At the present volume of activity, each speaker costs $48 to produce. This cost consists of a $32 variable cost component and an $16 fixed cost component. Hyden sells the speakers for $60 each. The managers of Gary and Hyden have been asked to consider using Hyden's excess capacity to supply Gary with some of the speakers that it currently purchases from unrelated companies. Both managers are evaluated based on return on investment. Hyden's manager suggests that the speakers be supplied at a transfer price of $60 each (the current selling price). On the other hand, Gary's manager suggests a $56 transfer price, noting that this amount covers total cost and provides Hyden a healthy contribution margin.
a. What transfer price would you recommend?
b. Discuss the effect of the intercompany sales on each manager's return on investment.
c. Should Hyden be required to use more than excess capacity to provide speakers to Gary? In other words, should it sell to Gary some of the 200,000 units that it is currently selling to unrelated companies? Why or why not?

The net income reported on the income statement is $97,309. However, adjusting entries have not been made at the end of the period for the
supplies expense of $2,135 and accrued salaries of $1,163. Net income, as corrected, is
a. $96,146
b. $97,309
c. $94,011
d. $95,174

discuss the nature of COIDA​

Suppose your company is considering exporting to a new market and needs to determine whether it should sell a basic or luxury version of its product there. Data on all of the following EXCEPT _____ would best help answer that question. Group of answer choices per capita GDP general consumption patterns GDP demographic trends

who is she what’s her product and company??

8. What is an example of a situation in which a shortage is caused by a change in
supply?

The capital budgeting committee of the Caldwell Pipe Corporation is evaluating the possibility of replacing its old pipe-bending machine with a more advanced model. Information on the existing machine and the new model follows: Existing machine New machine Original cost $200,000 $400,000 Market value now 80,000 Market value in year 5 0 20,000 Annual cash operating costs 40,000 10,000 Remaining life 5 yrs 5 yrs Refer to Caldwell Pipe Corporation. If the company buys the new machine and disposes of the existing machine, corporate profit over the five-year life of the new machine will be ________ than the profit that would have been generated had the existing machine been retained for five years.

Which of these are mathematical laws that help us solve numerical problems? O A decimals O B. graphs O C. formulas OD. percentages O E. tractions​

Petrus Framing's cost formula for its supplies cost is $1,890 per month plus $9 per frame. For the month of March, the company planned for activity of 629 frames, but the actual level of activity was 634 frames. The actual supplies cost for the month was $7,860. The activity variance for supplies cost in March would be closest to: Multiple Choice $309 F $309 U $45 F $45 U

Lara uses the standard mileage method for determining auto expenses. During 2020, she used her car as follows: 21,800 miles for business, 4,360 miles for personal use, 6,540 miles for a move to a new job, 2,180 miles for charitable purposes, and 1,090 miles for medical visits. Presuming that all the mileage expenses are allowable (i.e., not subject to percentage limitations), what is Lara's deduction for:

Bank reconciliations

Flexible Budget for Assembly Department Steelcase Inc. (SCS) is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assembles filing cabinets in an Assembly Department. Assume the following information for the Assembly Department: Direct labor per filing cabinet 18 minutes Supervisor salaries $250,000 per month Depreciation $18,500 per month Direct labor rate $28 per hour Prepare a flexible budget for 70,000, 80,000, and 90,000 filing cabinets for the month ending February 28 in the Assembly Department, similar to Exhibit 5.

the burning of candle stick is a good example of ____change .(a) temporary (b) permanent (c) conditionally​

Monopsonistic exploitation is A. the difference between the number of workers employed by a competitive firm and those employed by a monopsonist. B. the difference between the marginal revenue product of labor and the wage paid by the monopsonist. C. equal to the marginal factor cost of the monopsonist. D. the difference between the monopsony wage and the competitive wage.

1. Using a plantwide overhead rate based on cases, compute the overhead cost that is assigned to each case of Extra Fine Salsa and each case of Family Style Salsa. 2. Using the plantwide overhead rate, determine the total cost per case for the two products if the direct materials and direct labor cost is $9 per case of Extra Fine and $8 per case of Family Style. 3.a. If the market price of Extra Fine Salsa is $17 per case and the market price of Family Style Salsa is $12 per case, determine the gross profit per case for each product. 3.b. What might management conclude about the Family Style Salsa product line

A consulting engineering firm wants to make a preliminary cost estimate for the design/construct of an e-commerce warehouse facility in the south of the country. The firm completed a similar project in 2012 that had a construction cost of $70 million, and it wants to use the ENR Construction Cost Index (CCI) to update the cost. If the index value in 2012 was 8802 and today it is 12,250, determine the estimated cost of the facility today. (Note: CCI values may be different on its website.)

\AllCity, Inc., is financed 40% with debt, 8% with preferred stock, and 52% with common stock. Its cost of debt is 5.7%, its preferred stock pays an annual dividend of $2.49 and is priced at $30. It has an equity beta of 1.15. Assume the risk-free rate is 1.7%, the market risk premium is 7.3% andAllCity's tax rate is 35%. What is its after-tax WACC? [Note: Assume that the firm will always be able to utilize its full interest tax shield.]

On January 2, 2018, Ava Co. issued at face value $119,600 of 7% bonds convertible in total into 13,686 shares of Ava's common stock. No bonds were converted during 2018. Throughout 2018, Ava had 10,000 shares of common stock outstanding. Ava's 2018 net income was $110,936. The income tax rate is 30%. No potential common shares other than the convertible bonds were outstanding during 2018. The numerator in the diluted earnings per share calculation for 2018 would be:

Merchandise that is priced significantly lower than what customers expect to pay is likely to remain unsold.
a) True
b) False

On December 31, 2018, a company had assets of $20 billion and stockholders' equity of $16 billion. That same company had assets of $40 billion and stockholders' equity of $13 billion as of December 31, 2019. During 2019, the company reported total sales revenue of $13 billion and total expenses of $11 billion. What is the company's debt-to-assets ratio on December 31, 2019

Engler Company purchases a new delivery truck for $55,000. In addition, the sales taxes are $4,000. Engler also paints on the logo of the company on the side of the truck for $1,600. The truck license is an additional $160. The truck also undergoes a one-time safety testing for $290. Finally, the truck also requires a tune up and oil change for $500. What does Engler record as the cost of the new truck

The Manchester Corporation manufactures wooden pictures frames. In order to better manage costs, the Manchester Corporation had previously developed the following standards for the manufacture of its product:
Each unit should have 3/4 of a pound of direct materials purchased at $12 per pound.
Each unit should be produced in 48 minutes at a direct labor cost of $16 per hour. The company had the following detailed retails:
Actual production was 20,000 units using 14,600 pounds of direct materials at a total cost of $168,000 and required 11,000 direct labor hours at a total cost of $190,000.

Suppose that low-skilled workers employed in clearing woodland can each clear one acre per month if each is equipped with a shovel, a machete, and a chainsaw. Clearing one acre brings in $1,000 in revenue. Each worker’s equipment costs the worker’s employer $150 per month to rent and each worker toils 40 hours per week for four weeks each month. a. What is the marginal revenue product of hiring one low-skilled worker to clear woodland for one month?

The following transactions occurred during June: June 1 Purchased two new maintenance carts (noncurrent assets) on account at $750 each. Payment is due in 30 days. June 8 Accepted $500 of advance payments from customers for services to be provided next month. June 15 Received the June utility bill for $300. Payment is due and made in 30 days. June 20 Billed customers for $1,500 services provided. Payment is due in 30 days. June 30 Received $500 from customers who were billed on June 20. What journal entry is required to record the purchase of the carts on June 1

Assume Zap Industries reported the following adjusted account balances at year-end. 2019 2018 Accounts Receivable $ 2,496,320 $ 1,937,472 Allowance for Doubtful Accounts (126,400 ) (103,360 ) Accounts Receivable, Net $ 2,369,920 $ 1,834,112 Assume the company recorded no write-offs or recoveries during 2019. What was the amount of Bad Debt Expense reported in 2019

Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $22.00, $15.00, $6.00 and $3.20. Afterwards, the company pledges to maintain a constant 4 percent growth rate in dividends forever. If the required return on the stock is 19 percent, what is the current share price