Residual Income and Investment Decisions

Allard, Inc., presented two years of data for its Frozen Foods Division and its Canned Foods Division.

Frozen Foods Division:
	Year 1	Year 2
Sales	$35,700,000	$37,500,000
Operating income	1,380,000	1,550,000
Average operating assets	2,030,000	2,030,000

Canned Division:
	Year 1	Year 2
Sales	$11,800,000	$12,600,000
Operating income	670,000	510,000
Average operating assets	5,750,000	5,750,000

At the end of Year 2, the manager of the Canned Division is concerned about the division's performance. As a result, he is considering the opportunity to invest in two independent projects. The first is juice boxes for elementary school children. The second is fruit and veggie pouches for kids on the go. Without the investments, the division expects that Year 2 data will remain unchanged. The expected operating incomes and the outlay required for each investment are as follows:

	Juice Box	Fruit Pouch
Operating income	$28,000	$15,400
Outlay	170,000	120,000

Allard's corporate headquarters has made available up to $550,000 of capital for this division. Any funds not invested by the division will be retained by headquarters and invested to earn the company's minimum required rate of return, 7 percent.

Required:

1. Compute the residual income for each of the opportunities. (Round to the nearest dollar.)

Juice Box residual income	$ fill in the blank 1
Fruit Pouch residual income	$ fill in the blank 2

2. Compute the divisional residual income for each of the following four alternatives: (Round to the nearest dollar.)

a. The juice box is added.
$ fill in the blank 3

b. The fruit pouch is added.
$ fill in the blank 4

c. Both investments are added.
$ fill in the blank 5

d. Neither investment is made; the status quo is maintained.
$ fill in the blank 6

Assuming that divisional managers are evaluated and rewarded on the basis of residual income, which alternative do you think the divisional manager will choose?

Juice BoxFruit PouchBoth projectsStatus quoBoth projects

3. Assuming that management acts as you recommend in requirement 2, compute the change in profit (loss) from the divisional manager's investment decision.

ProfitLossProfit

$ fill in the blank 9

Was the correct decision made?

YesNoYes

4.1 Specify the independent variable (IV) and dependent variable (DV) for the proposed study. (4 marks) 4.2 Formulate the null and alternative hypotheses for the proposed study. (4 marks) 4.3 Based on the outcome of the analysis of the data gathered from the twenty employees in the preliminary investigation, discuss the strength, direction and significance of the correlation between employee quiet quitting score and employee performance rating. (6 marks) 4.4 Provide a comprehensive interpretation of the output of the simple linear regression analysis (quote the relevant statistical figures in the interpretation). (8 marks) 4.5 Proffer a practical recommendation to the management of Mayfair Enterprises on how best to mitigate the recent decline in employee and organisational outcomes. (3 marks)

A vehicle moves along a straight road. The vehicle's position is given by $f(t)$, where $t$ is measured in seconds since the vehicle starts moving. During the first 10 seconds of the motion, the vehicle's acceleration is proportional to the cube root of the time since the start. Which of the following differential equations describes this relationship, where $k$ is a positive constant? A $\frac{d f}{d t}=k \sqrt[3]{t}$ (B) $\frac{d f}{d t}=k \sqrt[3]{f}$ C $\frac{d^{2} f}{d t^{2}}=k \sqrt[3]{t}$ (D) $\frac{d^{2} f}{d t^{2}}=k \sqrt[3]{f}$

Using LC-3 Programming Exercise 1 Use .BLKW to set up a remote array of 10 values, starting at memory location x4000, as in lab 3. Now programmatically populate the array with the numbers 0 through 9 (note - NOT the characters '0' through '9'!) – i.e. hard-code just the first value (0), then calculate the rest one at a time, storing them in the array as you go. Remember the proper way of setting a register to 0! After you've stored them all, grab the seventh value (i.e. 6) and store it in R2. Clearly, you can't access this location via a label, so you'll need its actual address. How will you obtain that? And how will you use that address to get the value stored there? As always, step through your program and examine the values as they are stored in the array, and examine the final value stored in R2, to make sure your program works as expected. Exercise 2 You'll notice that Exercise 1 didn't ask you to output to console the array you built. Why not? Because as you know by now, numbers are not characters! So now copy your exercise 1 code into lab4_ex2.asm, and add an output loop, making it output the characters corresponding to the numbers stored in your array. Exercise 3 Let's try another modification of our well-used array program from Exercise 1: This time, instead of calculating and storing the numbers from 0 to 9 in the array, calculate and store the first ten powers of 2, starting with 20 = 1 in array index 0. Finally, grab the seventh value (26) from the array, and store it in R2. In order to do this, you will have to figure out how to calculate powers of 2. Some hints: Mathematically speaking: How do I obtain 2n+1 if I know 2n? What LC-3 operation could I use to multiply a number by 2? As always, place a breakpoint in your program, and step through it, examining the values as they are being stored in the array, and examine the final value stored in R2,  to make sure your program works as expected. Pay attention to both the decimal and hex representations of the values being stored. You already understand that you can't simply output the values in the array to the console “as is”, so we have to manipulate them somehow to turn them into characters. But this time all but the first four are multi-digit numbers when represented as decimal values, so our trick from the last exercise won't work – it can only convert the numbers from 0 to 9 into the single-digit ascii characters '0' through '9'.  Exercise 4 For now, we will instead observe what happens if we attempt to do what we just said can't be done - output the contents of the array "as is", i.e. as if they were ascii codes (which they are not!). Copy your exercise 3 code into your lab4_ex4.asm file, and add a second loop that loads the content of each element of the array into R0 and outputs it to the console using OUT. Now place a breakpoint at the start of your display loop and step through it: You will need to keep an eye on the Console to understand what is going on!! Please add comments!!!

7. The number of surface flaws in plastic panels used in the interior of automobiles has a Poisson distribution with mean of 0.04 flaws per square foot of plastic panel. Assume automobile interior contains 10 square feet of plastic panel.(a) What is the probability that there are no surface flaws in an auto's interior?(b) If 10 cars are sold to a rental company, what is the probability that none of the 10 cars has any surface flaws?(c) If 10 cars are sold to a rental company, what is the probability that at most two cars have any surface flaws?

7-Eleven Malaysia Holding Berhad's annual report for the fiscal year ending 2021 is available at https://www.7eleven.com.my/financial-reports. (At least two years of comparable financial statements are required.) a) Assess 7-Eleven’s financial position for year 2020 and 2021 according to i) liquidity position, and how the liquidity position has changed over time from 2020 to 2021. (6 marks) ii) asset management position, and how its asset management efficiency has changed over time. (6 marks) iii) debt management position, and how its debt management has changed over time. (6 marks) iv) profitability ratios, and how its profitability position has changed over time. (6 marks) v) market value ratios, and how its valuation has changed over time. (6 marks) b) Calculate 7-Eleven’s ROE as well as the industry average ROE, using the DuPont equation. From this analysis, how does 7-Eleven’s financial position. (10 marks) c) Write your opinion on what you think would happen to its ratios if the company initiated cost-cutting measures that allowed it to hold lower levels of inventory and substantially decreased the cost of goods sold. No calculations are necessary. Think about which ratios would be affected by changes in these two accounts. (10 marks)

What are the determinants of price elasticity of demand? Identify at least three examples. explain how price elasticity can impact pricing decisions and total revenue of the firm, can policy market interventions cause consumer or producer surplus