Mason Company sold some machinery to the Finney Company on January 1, 2004. The cash selling price would have been $473,850. Finney entered into an installment salescontract which required annual payments of $125,000, including interest at 10%, over five years. the first payment was due on December 31, 2004. what amount ofinterest income should be included in Mason's 2005 income statement (the second year of the contract)? a.$12,500 b. $39,624 c. $25,000 d. $34,885
Any bidder may withdraw his bid before an announcement is made of the completion of the auction. any time the bidder informs the auctioneer. when the buyer agrees. all of the above.
Airbus had reason to celebrate in 2003; for the frst time in the companyâ€™s history, it delivered more commercial jet aircraft than long-time rival Boeing. Airbus delivered 305 planes in 2003, compared to Boeingâ€™s 281. The celebration, however, was muted because the strength of the euro against the U.S. dollar was casting a cloud over the companyâ€™s future. Airbus, which is based in Toulouse, France, prices planes in dollars, just as Boeing has always done. But more than half of Airbusâ€™ costs are in euros. So as the dollar drops in value against the euroâ€”and it dropped by more than 50 percent between 2002 and the end of 2009â€”Airbusâ€™ costs rise in proportion to its revenue, squeezing profts in the process. In the short run, the fall in the value of the dollar against the euro did not hurt Airbus. The company fully hedged its dollar exposure in 2005 and was mostly hedged for 2006. However, anticipating that the dollar would stay weak against the euro, Airbus started to take other steps to reduce its economic exposure to a strong European currency. Recognizing that raising prices is not an option given the strong competition from Boeing, Airbus decided to focus on reducing its costs. As a step toward doing this, Airbus gave U.S. suppliers a greater share of work on new aircraft models, such as the A380 superjumbo and the A350. It also shifted supply work on some of its older models from European to American-based suppliers. This increased the proportion of its costs that were in dollars, making profts less vulnerable to a rise in the value of the euro and reducing the costs of building an aircraft when they were converted back into euros. Wings are assembled at the Airbus SAS factory in Broughton, United Kingdom. Completed wings are transported to Toulouse, France, or Hamburg, Germany, for fnal assembly. Source: Â© Christopher Furlong/Getty Images News/Getty Images In addition, Airbus pushed its European-based suppliers to start pricing in U.S. dollars. Because the costs of many suppliers were in euros, the suppliers found that to comply with Airbusâ€™ wishes, they too had to move more work to the United States or to countries whose currency is pegged to the U.S. dollar. Thus, one large French-based supplier, Zodiac, announced that it was considering acquisitions in the United States. Not only was Airbus pushing suppliers to price components for commercial jet aircraft in dollars, but the company was also requiring suppliers to its A400M program, a military aircraft that will be sold to European governments and priced in euros, to price components in U.S. dollars. Beyond these steps, the CEO of EADS, Airbusâ€™ parent company, publicly stated it might be prepared to assemble aircraft in the United States if that would help win important U.S. contracts. While this strategy made good sense for years, it worked against Airbus between mid-2014 and 2015 as the dollar rose rapidly against the euro.
This feature describes how Airbus is protecting itself from exchange rate fluctuations. French aircraft maker Airbus prices its planes in dollars. However, because over half the companyâ€™s costs are in euros, the company has the potential to see significant fluctuations in its earnings if it does not hedge its foreign exchange exposure.
QUESTION 1. What type of foreign exchange exposure does Airbus face? How can Airbus protect itself from its exposure to changing exchange rates? How does the companyâ€™s switch to more U.S. suppliers help the company?
QUESTION 2. Airbus has asked its European-based suppliers to start pricing in U.S. dollars. What does Airbus hope to gain by this request? What does it mean for suppliers?
Assignment 3: Long-Term Investment Decisions
Due Week 9 and worth 300 points
Assume that the low-calorie frozen, microwavable food company from Assignments 1 and 2 wants to expand, and has to make some long-term capital budgeting decisions. The company is currently facing increases in the costs of major ingredients.
Use the Internet and Strayer databases to research government policies and regulation.
Write a six to eight (6-8) page paper in which you:
- Outline a plan that managers in the low-calorie, frozen microwaveable food company could follow in anticipation of raising prices when selecting pricing strategies for making their products’ response to a change in price less elastic. Provide a rationale for your response.
- Examine the major effects that government policies have on production and employment. Predict the potential effects that government policies could have on your company.
- Determine whether or not government regulation to ensure fairness in the low-calorie, frozen microwavable food industry is needed. Cite the major reasons for government involvement in a market economy. Provide two (2) examples of government involvement in a similar market economy to support your response.
- Examine the major complexities that would arise under expansion via capital projects. Propose key actions that the company could take in order to prevent or address these complexities.
- Suggest the substantive manner in which the company could create a convergence between the interests of stockholders and managers. Indicate the most likely impact to profitability of such a convergence. Provide two (2) examples of instances that support your response.
- Use at least five (5) quality academic resources in this assignment. Note: Wikipedia does not qualify as an academic resource.
Your assignment must follow these formatting requirements:
- Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions.
- Include a cover page containing the title of the assignment, the studentâ€™s name, the professorâ€™s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length.
The specific course learning outcomes associated with this assignment are:
- Propose how differences in demand and elasticity lead managers to develop various pricing strategies.
- Analyze the economic impact of contracting, governance and organizational form within organizations.
- Use technology and information resources to research issues in managerial economics and globalization.
- Write clearly and concisely about managerial economics and globalization using proper writing mechanics.
Identify and describe one best practice for a performance evaluation system*. Ideally, this should be a practice you have personally witnessed or experienced, so that you can provide an example to illustrate your best practice. Why does the item you identified represent a best practice?
Attached in the document is a word document that has the question for problem number 16. This question requires excel qm and has to be explained using Microsoft word. If you have any questions I will be by my computer to help answer any questions that you have about the problem. I hope someone can help me out with this question. Thank you.
Write a 1,050- to 1,400-word summary in which you:
Explain how strategic portfolio management relates to project management.
Discuss how portfolio management concepts support an organization’s mission and goals.
Analyze the difference between project-based and non-project-based organizations.
Address these areas:
- How does communication differ for a project manager in a project-based organization versus a non-project-based organization?
- Describe two challenges that a project manager might face in a non-project-based organization.
- As a project manager in a non-project-based organization, how would you overcome the challenges you identified?
Use at least five credible references.
Format your paper consistent with APA guidelines.