QRB 501 Entire Course
7.4K views | +0 today
Follow
Your new post is loading...
Your new post is loading...
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 6 Sander's Woodworks - Balance Sheet Analysis & Recommendations

http://www.onlinehomework.guru/product/qrb-501-week-6-sanders-woodworks-balance-sheet-analysis-recommendations/

Flowersyaschipman's insight:

QRB 501 Week 6 Sander’s Woodworks – Balance Sheet Analysis & Recommendations

more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 6 Capital Budgeting Case Study - www.onlinehomework.guru

http://www.onlinehomework.guru/product/qrb-501-week-6-capital-budgeting-case-study/

Flowersyaschipman's insight:

Capital Budgeting Case

Your company is thinking about acquiring another corporation. You have two choices—the cost of each choice is $250,000. You cannot spend more than that, so acquiring both corporations is not an option. The following are your critical data:

Corporation A

Revenues = $100,000 in year one, increasing by 10% each year

Expenses = $20,000 in year one, increasing by 15% each year

Depreciation expense = $5,000 each year

Tax rate = 25%

Discount rate = 10%

Corporation B

Revenues = $150,000 in year one, increasing by 8% each year

Expenses = $60,000 in year one, increasing by 10% each year

Depreciation expense = $10,000 each year

Tax rate = 25%

Discount rate = 11%

Compute and analyze items (a) through (d) using a Microsoft® Excel® spreadsheet. Make sure all calculations can be seen in the background of the applicable spreadsheet cells. In other words, leave an audit trail so others can see how you arrived at your calculations and analysis. Items (a) through (d) should be submitted in Microsoft® Excel®; indicate your recommendation (e) in the Microsoft® Excel®spreadsheet;  the paper stated in item (f) should be submitted consistent with APA guidelines.

a.     A 5-year projected income statement

b.     A 5-year projected cash flow

c.     Net present value (NPV)

d.     Internal rate of return (IRR)

e.     Based on items (a) through (d), which company would you recommend acquiring?

f.      Write a paper of no more 1,050 words that defines, analyzes, and interprets the answers to items (c) and (d). Present the rationale behind each item and why it supports your decision stated in item (e). Also, attempt to describe the relationship between NPV and IRR. (Hint. The key factor is the discount rate used.)  In addition to the paper, a Micosoft® Excel® spreadsheet showing your projections and calculations must be shown and attached.

more...
Russell Meade's curator insight, May 10, 2015 1:13 AM
Model for Capital Budgeting                            First, you will analyze Projects S and L. Their cash flows are shown immediately below in both tabular and           timeline formats. Spreadsheet analyses can be set up vertically, in a table with columns, or horizontally,           using timelines. For short problems, with just a few years, it is normal to use the timeline format           because rows can be added and you can set the problem up as a series of income statements. For long           problems, it is often more convenient to use a tabular layout.                                  Expected after-tax   Project S             net cash flows (CFt)                Year (t)Project SProject L 0 1 2 3 4           0 ($1,000)($1,000) (1,000)500 400 300 100           1 500 100                 2 400 300    Project L            3 300 400                 4 100 600  0 1 2 3 4               (1,000)100 300 400 600                                                Capital Budgeting Decision Criteria                                  Here are the five key methods used to evaluate projects: (1) payback period, (2) discounted payback period, (3) net         present value, (4) internal rate of return, and (5) modified internal rate of return. Using these criteria, financial         analysts seek to identify those projects that will lead to the maximization of the firm's stock price.                             Payback Period                 The payback period is defined as the expected number of years required to recover the investment, and it was the         first formal method used to evaluate capital budgeting projects. First, identify the year in which the cumulative         cash inflows exceed the initial cash outflows. That is the payback year. Then, take the previous year and add to it         the unrecovered balance at the end of that year divided by the following year's cash flow.  Generally speaking, the         shorter the payback period, the better the investment.                                 Project S                   Time period:0 1 2 3 4              Cash flow:(1,000)500 400 300 100              Cumulative cash flow:(1,000)(500)(100)200 300       Click fx > Logical > AND > OK to get dialog box.                FALSEFALSEFALSETRUEFALSEUse Logical "AND" to determineThen specify you want TRUE if cumulative CF > 0 but the previous CF < 0.    0.00 0.00 0.00 2.33 0.00     the first positive cumulative CF.There will be one TRUE.       Payback:          2.33     Use Logical IF to find the Payback.Click  fx > Logical > IF > OK. Specify that if true, the payback is the previous year plus a fraction, if false, then 0.       Use Statistical Max function toClick fx > Statistical > MAX > OK > and specify range to find Payback.  Alternative calculation:2.33        Alternative: Use nested IF statements to display payback.                    find payback. Fx > Logical > IF > OK, statements.           Project L                   Time period:0 1 2 3 4              Cash flow:(1,000)100 300 400 600              Cumulative cash flow:(1,000)(900)(600)(200)400                                 Payback:3.33     Uses IF statement.                                 Discounted Payback Period                The discounted payback period uses the project's cost of capital to discount the expected cash flows. The           calculation of the discounted payback period is identical to the calculation of regular payback period, except          you must base the calculation on a new row of discounted cash flows. Note that both projects have a cost of          capital of 10%.                 WACC   =10%                                    Project S                   Time period:0 1 2 3 4              Cash flow:(1,000)500 400 300 100              Disc. cash flow:(1,000)455 331 225 68              Disc. cum. cash flow:(1,000)(545)(215)11 79                                 Discounted Payback:2.95     Uses IF statement.                                 Project L                   Time period:0 1 2 3 4              Cash flow:(1,000)100 300 400 600              Disc. cash flow:(1,000)91 248 301 410              Disc. cum. cash flow:(1,000)(909)(661)(361)49                                 Discounted Payback:3.88     Uses IF statement.                                 The inherent problem with both paybacks is that they ignore cash flows that occur after the payback period mark.          While the discounted method accounts for timing issues (to some extent), it still falls short of fully analyzing         projects. However, all else equal, these two methods do provide some information about projects' liquidity and risk.                            Net Present Value  (NPV)                To calculate the NPV, find the present value of the individual cash flows and find the sum of those discounted         cash flows. This value represents the value the project adds to shareholder wealth.                               WACC   =10%                                    Project S                   Time period:0 1 2 3 4              Cash flow:(1,000)500 400 300 100              Disc. cash flow:(1,000)455 331 225 68                                NPV(S)   =$78.82      =  Sum disc. CF's.or $78.82    =  Uses NPV function.                             Project L                   Time period:0 1 2 3 4              Cash flow:(1,000)100 300 400 600              Disc. cash flow:(1,000)91 248 301 410                                NPV(L)   =$49.18     $    49.18                                 The NPV method of capital budgeting dictates that all independent projects that have positive NPV should be accepted.        The rationale behind that assertion arises from the idea that all such projects add wealth, and that should be the         overall goal of the manager in all respects. If strictly using the NPV method to evaluate two mutually exclusive         projects, you would want to accept the project that adds the most value (such as the project with the higher NPV).  Hence,        if considering the above two projects, you would accept both projects if they are independent, and you would only         accept Project S if they are mutually exclusive.                                                     Internal Rate of Return  (IRR)                The internal rate of return is defined as the discount rate that equates the present value of a project's cash inflows         to its outflows. In other words, the internal rate of return is the interest rate that forces NPV to 0. The          calculation for IRR can be tedious, but Microsoft® Excel® software provides an IRR function that merely           requires you to access the function  and enter the array of cash flows. The IRR's for Project S and L are shown          below, along with the data entry for Project S.                                    Expected after-tax                 net cash flows (CFt)                Year (t)Project SProject L                0 ($1,000)($1,000)     The IRR function assumes          1 500 100  IRR S =14.49%   payments occur at end of          2 400 300  IRR L =11.79%   periods, so that function does          3 300 400       not have to be adjusted.          4 100 600                                                                                                                                                                                                                                                                                                             The IRR method of capital budgeting maintains that projects should be accepted if their IRR is greater than the cost         of capital. Strict adherence to the IRR method would further dictate that mutually exclusive projects should be          chosen on the basis of the greatest IRR. In this scenario, both projects have IRRs that exceed the cost of capital          (10%) and both should be accepted, if they are independent. If, however, the projects are mutually exclusive, you          would chose Project S. Recall that this was the determination using the NPV method as well. The question that         naturally arises is whether or not the NPV and IRR methods will always agree.                               When dealing with independent projects, the NPV and IRR methods will always yield the same accept/reject result.         However, in the case of mutually exclusive projects, NPV and IRR can give conflicting results. One shortcoming of         the internal rate of return is that it assumes that cash flows received are reinvested at the project's internal rate of         return, which is not usually true. The nature of the congruence of the NPV and IRR methods is further detailed in a          latter section of this model.                                   Multiple IRR's                 Because  of the mathematics involved, it is possible for some (but not all) projects that have more than one change of         signs in the set of cash flows to have more than one IRR. If you attempted to find the IRR with such a project using a         Financial Calculator, you would get an error message. The HP-10B says "Error - Soln" and the HP-17B says          "Many/No Solutions; Key in Guess" when such a project is evaluated. The procedure for correcting the problem is         to store in a guess for the IRR, and then the calculator will report the IRR that is closest to your guess. You can         then use a different guess value, and  you should be able to find the other IRR. However, the nature of the          mathematics creates a scenario in which one IRR is quite extraordinary (often, a few hundred percent). Consider         the case of Project M.                                    Project M: 0 1 2                 (1.6)10 (10)                                 You will solve this IRR twice; the first time using the default guess of 10%, and the second time you will enter a guess         of 300%.  Notice, that the first IRR calculation is exactly as it was above.                               IRR M 1 =25.0%                                                                                             IRR M 2 =400%                                                                                                                                                                                            The two solutions to this problem tell you that this project will have a positive NPV for all costs of capital between         25% and 400%. This point is illustrated by creating a data table and a graph of the project NPVs.                             Project M: 0 1 2                 (1.6)10 (10)              k    =25.0%                 NPV  =0.00                                      NPV                 k$0.0                 0%(1.60)                 25%0.00                  50%0.62                  75%0.85                  100%0.90 Max.                125%0.87                  150%0.80                  175%0.71                  200%0.62                  225%0.53                  250%0.44                  275%0.36                  300%0.28                  325%0.20                  350%0.13                  375%0.06                  400%0.00                  425%(0.06)                 450%(0.11)                 475%(0.16)                 500%(0.21)                 525%(0.26)                 550%(0.30)                                    NPV Profiles                 NPV profiles graph the relationship between projects' NPVs and the cost of capital. To create NPV profiles for         Projects S and L, create data tables of NPV at different costs of capital.                                  Project S  Project L              WACC$78.82  WACC$49.18               0%300.00  0%400.00               2%249.74  2%317.63               4%202.77  4%242.00               6%158.79  6%172.44               8%117.55  8%108.35               10%78.82  10%49.18               12%42.39  12%(5.53)              14%8.08  14%(56.20)              16%(24.27) 16%(103.21)                                                                                                                                                                                                                                                                                                                                                Previously discussed was the fact that, in some instances, the NPV and IRR methods can give conflicting results. First,         you should attempt to define what you see in this graph. Notice, that the two project profiles (S and L) intersect the         x-axis at costs of capital of 14% and 12%, respectively.  Not coincidently, those are the IRRs of the projects. If you         think about the definition of IRR, remember that the internal rate of return is the cost of capital at which a project         will have an NPV of 0. Looking at the graph, it is a logical conclusion that the IRR of a project is defined as the         point at which its profile intersects the x-axis.                                    Looking further at the NPV profiles, you see that the two project profiles intersect at a point called the          crossover point. Observe that at costs of capital greater than the crossover point, the project with the greater IRR         (Project S, in this case) also has the greater NPV.  But at costs of capital less than the crossover point, the project         with the lesser IRR has the greater NPV. This relationship is the source of discrepancy between the NPV and IRR         methods. By looking at the graph, you see that the crossover appears to occur at approximately 7%.  Luckily, there          is a more precise way of determining crossover. To find crossover, find the difference between the two           projects' cash flows in each year, and then find the IRR of this series of differential cash flows.                               Expected after-tax                  net cash flows (CFt) Cash flowAlternative:  Use Tools > Goal Seek to find WACC when NPV(S) =         Year (t)Project SProject LdifferentialNPV(L).  Set up a table to show the difference in NPV's, which we         0 ($1,000)($1,000)0 want to be zero. The following will do it, getting WACC = 7.17%.         1 500 100 400 Look at B57 for the answer, then restore B57 to 10%.          2 400 300 100  NPV S  = $    78.82             3 300 400 (100) NPV L  = $    49.18             4 100 600 (500)      S - L = $    29.64                                                                         IRR =Crossover rate   =7.17%                                                                                                              The intuition behind the relationship between the NPV profile and the crossover rate is as follows: (1) Distant cash         flows are heavily penalized by high discount rates--the denominator is  (1 + k)^t, and it increases geometrically,         hence gets very large at high values of t.  (2) Long-term projects like L have most of their cash flows coming in the         later years, when the discount penalty is largest, hence they are most severely impacted by high capital costs.  (3)          Therefore, Project L's NPV profile is steeper than that of S. (4) Since the two profiles have different slopes, they         cross one another.                                    Modified Internal Rate of Return  (MIRR)               The modified internal rate of return is the discount rate that causes a project's cost (or cash outflows) to equal the         present value of the project's terminal value. The terminal value is defined as the sum of the future values of the         project's cash inflows, compounded at the project's cost of capital. To find MIRR, calculate the PV of the outflows         and the FV of the inflows, and then find the rate that equates the two. Or, you can solve using the MIRR function.                            WACC   =10%    MIRRS  =12.11%         Project S  MIRRL  =11.33%  10%        0 1 2 3 4     (1,000)500 400 300 100                Project L               0 1 2 3 4     (1,000)100 300 400 600                             440.0         363.0         133.1    P V :(1,000)  Terminal Value:1,536.1                       The advantage of using the MIRR, relative to the IRR, is that the MIRR assumes that cash flows received are         reinvested at the cost of capital, not the IRR. Since reinvestment at the cost of capital is more likely, the MIRR is a         better indicator of a project's profitability.  Moreover, it solves the multiple IRR problem, as a set of cash flows can         have but one MIRR .                                     Note that if negative cash flows occur in years beyond Year 1, those cash flows would be discounted at the cost of         capital and added to the Year 0 cost to find the total PV of costs. If both positive and negative flows occurred in some         year, the negative flow should be discounted, and the positive one compounded, rather than just dealing with the net         cash flow. This makes a difference.                                   Also note that the MIRR function allows for discounting and reinvestment to occur at different rates. Generally,         MIRR is defined as reinvestment at the WACC, though Microsoft® Excel® software allows the calculation of a          special MIRR where reinvestment occurs at a different rate from WACC.                               Finally, it is stated in the text, when the IRR versus the NPV is discussed, that the NPV is superior because (1)         the NPV assumes that cash flows are reinvested at the cost of capital whereas the IRR assumes reinvestment at         the IRR, and (2) it is more likely, in a competitive world, that the actual reinvestment rate is more likely to be the         cost of capital than the IRR, especially if the IRR is quite high. The MIRR setup can be used to prove          that NPV does indeed assume reinvestment at the WACC, and IRR at the IRR.                                                     Project S               WACC  =10%                  0 1 2 3 4               (1,000)500 400 300 100                                       330.0                   484.0        Reinvestment at WACC = 10%              665.5              PV outflows-$1,000.00 Terminal Value:1,579.5              PV of TV $1,078.82                NPV  $    78.82   Thus, we see that the NPV is consistent with reinvestment at WACC.                                               Now repeat the process using the IRR, which is G118 as the discount rate.                                  Project S               IRR  =14.49%                  0 1 2 3 4               (1,000)500 400 300 100                                             343.5                   524.3        Reinvestment at IRR = 14.49%              750.3              PV outflows-$1,000.00 Terminal Value:1,718.1              PV of TV $1,000.00                NPV $0.00  Thus, if compounding is at the IRR, NPV is zero.  Since the               definition of IRR is the rate at which NPV = 0, this demonstrates               that the IRR assumes reinvestment at the IRR.                                                                                                                                                                                                                                                                                                                                                                                    
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 5 Quiz - www.onlinehomework.guru

http://www.onlinehomework.guru/product/qrb-501-week-5-quiz/

Flowersyaschipman's insight:

QRB 501 Week 5 Quiz

more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 4 Quiz - www.onlinehomework.guru

http://www.onlinehomework.guru/product/qrb-501-week-4-quiz/

Flowersyaschipman's insight:

QRB 501 Week 4 Quiz

more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 4 Learning Team Assignment Standard Deviation Abstract - www.onlinehomework.guru

http://www.onlinehomework.guru/product/qrb-501-week-4-learning-team-assignment-standard-deviation-abstract/

Flowersyaschipman's insight:

The Learning Team assignment this week is a simple but helpful assignment. The assignment will consist of a cover sheet, abstract pages, and a reference page.

Research, as a Learning Team, 1 peer-reviewed article per team member on the topic, “standard deviation use in the business world” in the University Library. Each Learning Team member must choose a different article.

Write a basic abstract for each of your selected articles. Your abstracts must include the following:

The purpose of the studyThe research question(s)The hypothesis of the studyThe main findings of the study

Include APA-formatted references on the reference page.

Format your assignment consistent with APA guidelines.

more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 3 Quiz - www.onlinehomework.guru

http://www.onlinehomework.guru/product/qrb-501-week-3-quiz/

Flowersyaschipman's insight:

QRB 501 Week 3 Quiz

more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 2 Week Two Learning Team Case Studies - www.onlinehomework.guru

http://www.onlinehomework.guru/product/qrb-501-week-2-week-two-learning-team-case-studies/

Flowersyaschipman's insight:

1. Ziam wants to know how much his royalty will be for a song he has written. How will it be calculated? Write the steps or the formulas that will be used to calculate his royalty payment.

2. Ziam has written a popular song titled “Going There,” which has been recorded by a well-known performer.  He recently received a royalty check for $7,000. If Ziam gets a 0.5 share of the royalties and the credit value is $3.50, what was the credit total that his song earned? Write out the problem in the form of an equation and solve it.

3. Ziam quickly published another song, “Take Me There,” that is played even more often than “Going There.”  If his first song earns 4,000 credits and his second song earns 6,000 credits, what will the royalty payment be from the two songs if the credit value remains at $3.50?

4. Ziam is considering an offer to perform his own songs on a CD to be titled “Waiting There.” In the past, he has written but not performed his music. If Ziam’s royalty is 0.12 of the suggested retail price of $15.00,  but 0.25 of the retail price is deducted for packaging before Ziam’s royalty is calculated, how much will he receive for sale of the CD? Write your answer in the form of an equation and solve it.

1. What percentage of the total does each of the four customer groups represent? Round to the nearest hundredth of a percent.

2. Minh’s data shows that on average only 4.6% of customers were purchasing complementary services available within Media Systems. By using his company’s services, Minh was projecting that these percentages would triple across all user groups within 1 year. a) How many customers would that equate to in total for each group?  b) What would be the difference compared to current levels?

3. Customer complaint data showed that within the last year, complaints by category were as follows: publication subscribers, 1,174; advertisers, 423; telephone service customers, 4,411; and ISP customers 823. a) What percentage of customers (round to two decimal places)complained within the last year in each category?  b) If the CRM software were able to reduce complaints by 50% each year over the next 2 years, how many complaints would there be by category at the end of that time period? And c) What would the number of complaints at the end of 2 years represent on a percentage basis?

more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 2 Problem Set

http://www.onlinehomework.guru/product/qrb-501-week-2-problem-set/

Flowersyaschipman's insight:

QRB 501 Week 2 Problem Set

more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Final Exam - www.onlinehomework.guru

http://www.onlinehomework.guru/product/qrb-501-final-exam/

Flowersyaschipman's insight:

QRB 501 Final Exam / New Syllabus – 2014 version

more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 2 Week Two Learning Team Case Studies

http://www.onlinehomework.guru/product/qrb-501-week-2-week-two-learning-team-case-studies/ 1. Ziam wants to know how much his royalty will be for a song he h...
more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 3 Week Three Learning Team Case Studies

http://www.onlinehomework.guru/product/qrb-501-week-3-week-three-learning-team-case-studies/ 1. The Artist's Palette purchases its inventory from a number of...
more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 6 Problem Set - www.onlinehomework.guru

http://www.onlinehomework.guru/product/qrb-501-week-6-problem-set/

Flowersyaschipman's insight:

QRB 501 Week 6 Problem Set

more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 5 Week Five Learning Team Case Studies - www.onlinehomework.guru

http://www.onlinehomework.guru/product/qrb-501-week-5-week-five-learning-team-case-studies/

Flowersyaschipman's insight:

21.1 Contemporary Wood Furniture
Charles Royston was checking the year-end balances for his wood furniture manufacturing and retail business and was concerned about the numbers. From what he remembered, his debts and accounts receivable were higher than the previous year. Rather than get worked up over nothing, he decided he would gather the information and make a comparison. For December 31, 2011, the business had current assets of: $1,844 cash, $11,807 accounts receivable, and $9,628 inventory. Plant and equipment totaled $158,700. Current liabilities were: accounts payable $13,446; wages payable $650; and property and taxes payable $4,124. Long-term debt totaled $92,800 and owner’s equity
$70,959. By comparison, for December 31, 2010, the business had current assets of: $3,278 cash; $6,954 accounts receivable; $17,417 inventory. Plant and equipment totaled $144,500. Current liabilities were: accounts payable $9,250; wages payable $1,110; property and taxes payable $3,650.
Long-term debt totaled $75,800; and owner’s equity $82,339.
3. Overall, what does your analysis mean? Is Charles correct to be concerned about these numbers? Explain.

Case Study 21-2

Jessica and David are student interns at Balanced Books Bookkeeping. They have taken several business math and accounting classes and are now applying what they have learned to real-life situations. They enjoy their internship, but they are sometimes surprised by the assignments they are given. Luckily, they work together, so they share the assignments and learn from each other. Their most recent assignment is to take a listing of accounts provided by one of Balanced Books’ clients and turn them into a balance sheet and income statement. David suggests that their client might appreciate it if they also performed a vertical analysis of each statement. Jessica suggests that they should also compute the current ratio and the acid-test ratio.
1. Create the financial statements for December 31, 2011, depict them in vertical format, and compute the current and acid test ratios.

Account title Amount Account title Amount
Cash $4,000 Accounts payable $3,500
Depreciation 2,000 Merchandise inventory 15,000
Carlton, equity 34,500 Accounts receivable 6,000
Cogs 85,000 Net sales 120,000
Rent expense 15,000 Insurance payable 500
Wages payable 1,500 Equipment 15,000
Utilities 6,500 Wages 8,000
Miscellaneous 1,500
Cogs = Cost of Goods Sold
Miscellaneous = Miscellaneous Expense

more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 5 Problem Set

http://www.onlinehomework.guru/product/qrb-501-week-5-problem-set/

Flowersyaschipman's insight:

QRB 501 Week 5 Problem Set

more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 4 Problem Set - www.onlinehomework.guru

http://www.onlinehomework.guru/product/qrb-501-week-4-problem-set/

Flowersyaschipman's insight:

QRB 501 Week 4 Problem Set

more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 3 Week Three Learning Team Case Studies - www.onlinehomework.guru

http://www.onlinehomework.guru/product/qrb-501-week-3-week-three-learning-team-case-studies/

Flowersyaschipman's insight:

1. The Artist’s Palette purchases its inventory from a number of suppliers and each supplier offers different purchasing discounts. The manager of The Artist’s Palette, Marty Parma, is currently comparing two offers  for purchasing modeling clay and supplies. The first company offers a chain discount of 20/10/5, and the second company offers a chain discount of 18/12/7 as long as the total purchases are $300 or more. Assuming Parma purchases $300 worth of supplies, a) what is the net price from supplier 1? And b) From supplier 2? And c) From which supplier would you recommend Parma purchase her modeling clay and supplies?

2. What is the net decimal equivalent for supplier 1? For supplier 2?

3. What is the trade discount from supplier 1? From supplier 2?

4.      The Artist’s Palette recognizes that students may purchase supplies at the beginning of the term to cover all of their art class needs. Because this could represent a fairly substantial outlay,  the Artist’s Palette offers discounts to those students who pay sooner than required. Assume that if students buy more than $250 of art supplies in one visit, they may put it on a student account with terms of 2/10, n/30. If a student purchases $250 of supplies on September 16, what amount is due by September 26? How much would the student save by paying early?

5. Assume that if students buy more than $250 of art supplies in one visit, they may put the charge on a student account with terms of 2/10 EOM. If a student makes the purchase on September 16, on what day does the 2% discount expire? If the purchase is made on September 26, on what day does the 2% discount expire? If you were an art student, which method would you prefer: 2/10, n/30, or 2/10 EOM?

1. What is the markup percentage for a box of ginger tea?

2. If the rice-filled heating pads sell for $7.00, $10.00, and $15.00 for small, medium, and large, respectively, what is the markup percentage on each one?

3. Karen wants to compare using the cost plus method to the percentage markup method. If she sells 2 small rice pads, 4 medium rice pads, 2 large rice pads, and 20 boxes of $3.50 tea in a month, how much profit does she accumulate? What markup percentage based on cost would she have to use to make the same amount of profit on this month’s sales?

4. What prices should Karen charge (using the markup percentage) to obtain the same amount of profit as she did with the cost plus method? Do not include shipping.

more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 3 Problem Set - www.onlinehomework.guru

http://www.onlinehomework.guru/product/qrb-501-week-3-problem-set/

Flowersyaschipman's insight:

QRB 501 Week 3 Problem Set

more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 2 Quiz - www.onlinehomework.guru

http://www.onlinehomework.guru/product/qrb-501-week-2-quiz/

Flowersyaschipman's insight:

QRB 501 Week 2 Quiz

more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 1 Quiz - www.onlinehomework.guru

http://www.onlinehomework.guru/product/qrb-501-week-1-quiz/

Flowersyaschipman's insight:

QRB 501 Week 1 Quiz

more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 6 Capital Budgeting Case Study

http://www.onlinehomework.guru/product/qrb-501-week-6-capital-budgeting-case-study/ Capital Budgeting Case Your company is thinking about acquiring another c...
more...
No comment yet.
Scooped by Flowersyaschipman
Scoop.it!

QRB 501 Week 6 Problem Set

http://www.onlinehomework.guru/product/qrb-501-week-6-problem-set/ - created at http://animoto.com.
more...
No comment yet.