2 Alpha Division, which is part of the Delta Group, is considering an investment opportunity to which the followingestimated information relates:(1) An initial investment of $45m in equipment at the beginning of year 1 will be depreciated on a straight-line basisover a three-year period with a nil residual value at the end of year 3.(2) Net operating cash inflows in each of years 1 to 3 will be $12·5m, $18·5m and $27m respectively.(3) The management accountant of Alpha Division has estimated that the NPV of the investment would be$1·937m using a cost of capital of 10%.(4) A bonus scheme which is based on short-term performance evaluation is in operation in all divisions within theDelta Group.Required:(a) (i) Calculate the residual income of the proposed investment and comment briefly (using ONLY the aboveinformation) on the values obtained in reconciling the short-term and long-term decision views likely tobe adopted by divisional management regarding the viability of the proposed investment. (6 marks)
2 Alpha Division, which is part of the Delta Group, is considering an investment opportunity to which the following
estimated information relates:
(1) An initial investment of $45m in equipment at the beginning of year 1 will be depreciated on a straight-line basis
over a three-year period with a nil residual value at the end of year 3.
(2) Net operating cash inflows in each of years 1 to 3 will be $12·5m, $18·5m and $27m respectively.
(3) The management accountant of Alpha Division has estimated that the NPV of the investment would be
$1·937m using a cost of capital of 10%.
(4) A bonus scheme which is based on short-term performance evaluation is in operation in all divisions within the
Delta Group.
Required:
(a) (i) Calculate the residual income of the proposed investment and comment briefly (using ONLY the above
information) on the values obtained in reconciling the short-term and long-term decision views likely to
be adopted by divisional management regarding the viability of the proposed investment. (6 marks)
相关考题：
The cost method of accounting for stock( ) A、recognizes dividends as incomeB、is only appropriate as part of a consolidationC、requires the investment be increased by the reported net income of the investeeD、requires the investment be decreased by the reported net income of the investee
3 The managers of Daylon plc are reviewing the company’s investment portfolio. About 15% of the portfolio is represented by a holding of 5,550,000 ordinary shares of Mondglobe plc. The managers are concerned about the effect on portfolio value if the price of Mondglobe’s shares should fall, and are considering selling the shares. Daylon’s investment bank has suggested that the risk of Mondglobe’s shares falling by more than 5% from their current value could be protected against by buying an over the counter option. The investment bank is prepared to sell an appropriate six month option to Daylon for ￡250,000.Other information:(i) The current market price of Mondglobe’s ordinary shares is 360 pence.(ii) The annual volatility (variance) of Mondglobe’s shares for the last year was 169%.(iii) The risk free rate is 4% per year.(iv) No dividend is expected to be paid by Mondglobe during the next six months.Required:(a) Evaluate whether or not the price at which the investment bank is willing to sell the option is a fair price.(10 marks)
(c) At 1 June 2006, Router held a 25% shareholding in a film distribution company, Wireless, a public limitedcompany. On 1 January 2007, Router sold a 15% holding in Wireless thus reducing its investment to a 10%holding. Router no longer exercises significant influence over Wireless. Before the sale of the shares the net assetvalue of Wireless on 1 January 2007 was $200 million and goodwill relating to the acquisition of Wireless was$5 million. Router received $40 million for its sale of the 15% holding in Wireless. At 1 January 2007, the fairvalue of the remaining investment in Wireless was $23 million and at 31 May 2007 the fair value was$26 million. (6 marks)Required:Discuss how the above items should be dealt with in the group financial statements of Router for the year ended31 May 2007.Required:Discuss how the above items should be dealt with in the group financial statements of Router for the year ended31 May 2007.
The IOA Division is also considering whether to undertake an investment in the West of the country (the West Project).An initial cash outlay investment of ￡12 million will be required and a net cash inflow amounting to ￡5 million isexpected to arise in each of the four years of the life of the project.The activities involved in the West project will cause the local river to become polluted and discoloured due to thedischarge of waste substances from mining operations.It is estimated that at the end of year four a cash outlay of ￡2 million would be required to restore the river to itsoriginal colour. This would also clear 90% of the pollution caused as a result of the mining activities of the IOADivision.The remaining 10% of the pollution caused as a result of the mining activities of the IOA Division could be clearedup by a further cash outlay of ￡2 million.(c) Evaluate the West project and, stating your reasons, comment on whether the board of directors of NCL plcshould spend the further ￡2 million in order to eliminate the remaining 10% of pollution. (6 marks)(Ignore Taxation).
2 The Information Technology division (IT) of the RJ Business Consulting Group provides consulting services to itsclients as well as to other divisions within the group. Consultants always work in teams of two on every consultingday. Each consulting day is charged to external clients at ￡750 which represents cost plus 150% profit mark up. Thetotal cost per consulting day has been estimated as being 80% variable and 20% fixed.The director of the Human Resources (HR) division of RJ Business Consulting Group has requested the services oftwo teams of consultants from the IT division on five days per week for a period of 48 weeks, and has suggested thatshe meets with the director of the IT division in order to negotiate a transfer price. The director of the IT division hasresponded by stating that he is aware of the limitations of using negotiated transfer prices and intends to charge theHR division ￡750 per consulting day.The IT division always uses ‘state of the art’ video-conferencing equipment on all internal consultations which wouldreduce the variable costs by ￡50 per consulting day. Note: this equipment can only be used when providing internalconsultations.Required:(a) Calculate and discuss the transfer prices per consulting day at which the IT division should provideconsulting services to the HR division in order to ensure that the profit of the RJ Business Consulting Groupis maximised in each of the following situations:(i) Every pair of consultants in the IT division is 100% utilised during the required 48-week period inproviding consulting services to external clients, i.e. there is no spare capacity.(ii) There is one team of consultants who, being free from other commitments, would be available toundertake the provision of services to the HR division during the required 48-week period. All otherteams of consultants would be 100% utilised in providing consulting services to external clients.(iii) A major client has offered to pay the IT division ￡264,000 for the services of two teams of consultantsduring the required 48-week period.(12 marks)
(b) (i) Advise the directors of GWCC on specific actions which may be considered in order to improve theestimated return on their investment of ￡1,900,000. (8 marks)
(ii) Briefly discuss TWO factors which could reduce the rate of return earned by the investment as per theresults in part (a). (4 marks)
2 Ice-Time Ltd (ITL) manufactures a range of sports equipment used in a variety of winter-sports in Snowland.Development engineers within ITL have recently developed a prototype of a small engine-propelled bobsleigh namedthe ‘Snowballer’, which has been designed for use by young children. The directors of ITL recently spent ￡200,000on market research, the findings of which led them to believe that a market exists for the Snowballer.The marketing director has suggested that ITL should use the ‘Olympic’ brand in order to market the Snowballer.The finance director of ITL has gathered relevant information and prepared the following evaluation relating to theproposed manufacture and sale of the Snowballer.(1) Sales are expected to be 3,200 units per annum at a selling price of ￡2,500 per unit.(2) Variable material, labour, and overhead costs are estimated at ￡1,490 per unit.(3) In addition, a royalty of ￡150 per unit would be payable to Olympic plc, for the use of their brand name.(4) Fixed overheads are estimated at ￡900,000 per annum. These overheads cannot be avoided until the end of theyear in which the Snowballer is withdrawn from the market.(5) An initial investment of ￡5 million would be required. A government grant equal to 50% of the initial investmentwould be received on the date the investment is made. However, because the Snowballer would be classified asa luxury good, no tax allowances would be available on this initial investment. The estimated life cycle of theSnowballer is six years.(6) Corporation tax at the rate of 30% per annum is payable in the year in which profit occurs.(7) All cash flows are stated in current prices and, with the exception of the initial investment and the governmentgrant, will occur at the end of each year.(8) The nominal cost of capital is 15·44%. Annual inflation during the period is expected to amount to 4%.Required:(a) Calculate the net present value (NPV) of the Snowballer proposal and recommend whether it should beundertaken by the directors of ITL. (4 marks)
4 The Better Agriculture Group (BAG), which has a divisional structure, produces a range of products for the farmingindustry. Divisions B and C are two of its divisions. Division B sells a fertiliser product (BF) to customers external toBAG. Division C produces a chemical (CC) which it could transfer to Division B for use in the manufacture of itsproduct BF. However, Division C could also sell some of its output of chemical CC to external customers of BAG.An independent external supplier to The Better Agriculture Group has offered to supply Division B with a chemicalwhich is equivalent to component CC. The independent supplier has a maximum spare capacity of 60,000 kilogramsof the chemical which it is willing to make available (in total or in part) to Division B at a special price of $55 perkilogram.Forecast information for the forthcoming period is as follows:Division B:Production and sales of 360,000 litres of BF at a selling price of $120 per litre.Variable conversion costs of BF will amount to $15 per litre.Fixed costs are estimated at $18,000,000.Chemical (CC) is used at the rate of 1 kilogram of CC per 4 litres of product BF.Division C:Total production capacity of 100,000 kilograms of chemical CC.Variable costs will be $50 per kilogram of CC.Fixed costs are estimated at $2,000,000.Market research suggests that external customers of BAG are willing to take up sales of 40,000 kilograms of CC at aprice of $105 per kilogram. The remaining 60,000 kilograms of CC could be transferred to Division B for use inproduct BF. Currently no other market external to BAG is available for the 60,000 kilograms of CC.Required:(a) (i) State the price/prices per kilogram at which Division C should offer to transfer chemical CC to DivisionB in order that the maximisation of BAG profit would occur if Division B management implement rationalsourcing decisions based on purely financial grounds.Note: you should explain the basis on which Division B would make its decision using the informationavailable, incorporating details of all relevant calculations. (6 marks)
(c) Outline the ways in which Arthur and Cindy can reduce their income tax liability by investing in unquotedshares and recommend, with reasons, which form. of investment best suits their circumstances. You are notrequired to discuss the qualifying conditions applicable to the investment vehicle recommended. (5 marks)You should assume that the income tax rates and allowances for the tax year 2005/06 apply throughout thisquestion
听力原文：The primary objective of financial reporting is to provide information useful for making investment and lending decisions.(6)A．The financial reporting is to provide information for the investors and lenders only.B．The main aim of financial reporting is to offer information useful for decision-making.C．Investment and lending decisions can be made from the financial reporting.D．Investment and lending decisions can not be made from the financial reporting.
听力原文：The financial reporting is used to provide information useful for making investment and lending decision.(2)A．The objective of financial reporting is to provide information useful for making investment and lending decisions.B．The financial reporting is useless.C．The financial reporting can't help people to decide whether they invest on something or not.D．The financial reporting has no objectives.
Investment is freely transferable, which means one owner can sell his ownership interests to an ________ without a change in the nature of the business. A.investorB.personC.ownerD.outsider
Given:Which code, inserted at line 16, will cause a java.lang.ClassCastException?() A.Alpha a = x;B.Foo f = (Delta)x;C.Foo f = (Alpha)x;D.Beta b = (Beta)(Alpha)x;
A manufacturing company, Man Co, has two divisions: Division L and Division M. Both divisions make a single standardised product. Division L makes component L, which is supplied to both Division M and external customers.Division M makes product M using one unit of component L and other materials. It then sells the completedproduct M to external customers. To date, Division M has always bought component L from Division L.The following information is available:Division L charges the same price for component L to both Division M and external customers. However, it does not incur the selling and distribution costs when transferring internally.Division M has just been approached by a new supplier who has offered to supply it with component L for $37 per unit. Prior to this offer, the cheapest price which Division M could have bought component L for from outside the group was $42 per unit.It is head office policy to let the divisions operate autonomously without interference at all.Required:(a) Calculate the incremental profit/(loss) per component for the group if Division M accepts the new supplier’soffer and recommend how many components Division L should sell to Division M if group profits are to bemaximised. (3 marks)(b) Using the quantities calculated in (a) and the current transfer price, calculate the total annual profits of each division and the group as a whole. (6 marks)(c) Discuss the problems which will arise if the transfer price remains unchanged and advise the divisions on a suitable alternative transfer price for component L. (6 marks)
PV Co is evaluating an investment proposal to manufacture Product W33, which has performed well in test marketing trials conducted recently by the company’s research and development division. The following information relating to this investment proposal has now been prepared.Initial investment $2 millionSelling price (current price terms) $20 per unitExpected selling price inflation 3% per yearVariable operating costs (current price terms) $8 per unitFixed operating costs (current price terms) $170,000 per yearExpected operating cost inflation 4% per yearThe research and development division has prepared the following demand forecast as a result of its test marketing trials. The forecast reflects expected technological change and its effect on the anticipated life-cycle of Product W33.It is expected that all units of Product W33 produced will be sold, in line with the company’s policy of keeping no inventory of finished goods. No terminal value or machinery scrap value is expected at the end of four years, when production of Product W33 is planned to end. For investment appraisal purposes, PV Co uses a nominal (money) discount rate of 10% per year and a target return on capital employed of 30% per year. Ignore taxation.Required:(a) Identify and explain the key stages in the capital investment decision-making process, and the role ofinvestment appraisal in this process. (7 marks)(b) Calculate the following values for the investment proposal:(i) net present value;(ii) internal rate of return;(iii) return on capital employed (accounting rate of return) based on average investment; and(iv) discounted payback period. (13 marks)(c) Discuss your findings in each section of (b) above and advise whether the investment proposal is financially acceptable. (5 marks)
The following trial balance relates to Sandown at 30 September 2009:The following notes are relevant:(i) Sandown’s revenue includes $16 million for goods sold to Pending on 1 October 2008. The terms of the sale are that Sandown will incur ongoing service and support costs of $1·2 million per annum for three years after the sale. Sandown normally makes a gross profit of 40% on such servicing and support work. Ignore the time value of money.(ii) Administrative expenses include an equity dividend of 4·8 cents per share paid during the year.(iii) The 5% convertible loan note was issued for proceeds of $20 million on 1 October 2007. It has an effective interest rate of 8% due to the value of its conversion option.(iv) During the year Sandown sold an available-for-sale investment for $11 million. At the date of sale it had acarrying amount of $8·8 million and had originally cost $7 million. Sandown has recorded the disposal of theinvestment. The remaining available-for-sale investments (the $26·5 million in the trial balance) have a fair value of $29 million at 30 September 2009. The other reserve in the trial balance represents the net increase in the value of the available-for-sale investments as at 1 October 2008. Ignore deferred tax on these transactions.(v) The balance on current tax represents the under/over provision of the tax liability for the year ended 30 September 2008. The directors have estimated the provision for income tax for the year ended 30 September 2009 at $16·2 million. At 30 September 2009 the carrying amounts of Sandown’s net assets were $13 million in excess of their tax base. The income tax rate of Sandown is 30%.(vi) Non-current assets:The freehold property has a land element of $13 million. The building element is being depreciated on astraight-line basis.Plant and equipment is depreciated at 40% per annum using the reducing balance method.Sandown’s brand in the trial balance relates to a product line that received bad publicity during the year which led to falling sales revenues. An impairment review was conducted on 1 April 2009 which concluded that, based on estimated future sales, the brand had a value in use of $12 million and a remaining life of only three years.However, on the same date as the impairment review, Sandown received an offer to purchase the brand for$15 million. Prior to the impairment review, it was being depreciated using the straight-line method over a10-year life.No depreciation/amortisation has yet been charged on any non-current asset for the year ended 30 September2009. Depreciation, amortisation and impairment charges are all charged to cost of sales.Required:(a) Prepare the statement of comprehensive income for Sandown for the year ended 30 September 2009.(13 marks)(b) Prepare the statement of financial position of Sandown as at 30 September 2009. (12 marks)Notes to the financial statements are not required.A statement of changes in equity is not required.
The world's energy watchdog has sounded the alarm over a"worrying"pause in the shift to clean energy after global investment in renewables fell 7%to$318bn（~240bn）last year.The International Energy Agency said the decline is set to continue int0 2018,threatening energy security,climate change and air pollution goals.Fossil fuels increased their share of energy supply investment for the first time since 2014,to$790bn,and will play a significant role for years on current trends,the IEA said.Investment in coal power dropped sharply but was offset by an uptick in oil and gas spending,the World Energy Investment repoit found..Dr Fatih Birol,the executive director of the IEA,said of the renewables fall:"We are seeing a decrease,which is disappointing.And more disappointing is we see the signs this decline may continue this year-this is a worrying trend."Fossil fuels'share of energy investment needs to drop t0 40%by 2030 to meet climate targets but instead rose fractionally t0 59%in 2017.World leaders'warm words on renewables and energy efficiency needed to be matched with action,Birol said,urging govemments to create less investment uncertainty for green energy.Globally,energy investment fell 2%to$1.8tn in 2017,with electricity taking a bigger share than oil and gas for the second year in a row.The decline in renewable power generation spending was mostly down to falls in wind power and hydro but solar hit record levels despite becoming cheaper to install.While coal investment fell to its lowest level in 10 years,spending on gas-fired power stations rose 40%.Nuclear power fell sharply to the lowest level of investment in five years.In the oil and gas industry,rising prices have helped investment in production rise 4%last year and is expected to grow 5%this year.The US's shale boom will drive much of the groivth,and frackers are on track to achieve positive free cashflow this year,for the first time.The US is not expected to pump enough extra crude to bring down oil prices,though.Birol said"Us shale growth is very welcome growth for badly needed additions but this growth alone will not be enough to balance out the markets.Outside the US,investment in conventional oil and gas projects remains subdued and Birol said the world faced"major difficulties"if investment was not stepped u Motorists spent S 43bn on fully electric cars and plug-in hybrids last year,accounting for half of global growth in car sales.However,the battery-powered cars are not seriously denting oil demand yet the IEA said Governments are increasing investment in energy markets,either directly through state-owned firms or indirectly via investments policies and regulation,which Birol said was a surprising developmentBirol suggested that the leaders shouldA.ensure the supply of green energyB.call for the public to use the new enerC.match the energy efficiency with the new enerD.spur sustained investment in renewable energy
The world's energy watchdog has sounded the alarm over a"worrying"pause in the shift to clean energy after global investment in renewables fell 7%to$318bn（~240bn）last year.The International Energy Agency said the decline is set to continue int0 2018,threatening energy security,climate change and air pollution goals.Fossil fuels increased their share of energy supply investment for the first time since 2014,to$790bn,and will play a significant role for years on current trends,the IEA said.Investment in coal power dropped sharply but was offset by an uptick in oil and gas spending,the World Energy Investment repoit found..Dr Fatih Birol,the executive director of the IEA,said of the renewables fall:"We are seeing a decrease,which is disappointing.And more disappointing is we see the signs this decline may continue this year-this is a worrying trend."Fossil fuels'share of energy investment needs to drop t0 40%by 2030 to meet climate targets but instead rose fractionally t0 59%in 2017.World leaders'warm words on renewables and energy efficiency needed to be matched with action,Birol said,urging govemments to create less investment uncertainty for green energy.Globally,energy investment fell 2%to$1.8tn in 2017,with electricity taking a bigger share than oil and gas for the second year in a row.The decline in renewable power generation spending was mostly down to falls in wind power and hydro but solar hit record levels despite becoming cheaper to install.While coal investment fell to its lowest level in 10 years,spending on gas-fired power stations rose 40%.Nuclear power fell sharply to the lowest level of investment in five years.In the oil and gas industry,rising prices have helped investment in production rise 4%last year and is expected to grow 5%this year.The US's shale boom will drive much of the groivth,and frackers are on track to achieve positive free cashflow this year,for the first time.The US is not expected to pump enough extra crude to bring down oil prices,though.Birol said"Us shale growth is very welcome growth for badly needed additions but this growth alone will not be enough to balance out the markets.Outside the US,investment in conventional oil and gas projects remains subdued and Birol said the world faced"major difficulties"if investment was not stepped u Motorists spent S 43bn on fully electric cars and plug-in hybrids last year,accounting for half of global growth in car sales.However,the battery-powered cars are not seriously denting oil demand yet the IEA said Governments are increasing investment in energy markets,either directly through state-owned firms or indirectly via investments policies and regulation,which Birol said was a surprising developmentWhich of the following statement can be inferred from Paragraph 2?A.Decline of the investment in green energy will hinder global climate goalsB.The investment in clean energy has dropped dramatically since 2014C.Fossil fuels continue to account for the majority of increased energyD.The investment in oil and gas will remain on a decreasing trend by 2030
The world's energy watchdog has sounded the alarm over a"worrying"pause in the shift to clean energy after global investment in renewables fell 7%to$318bn（~240bn）last year.The International Energy Agency said the decline is set to continue int0 2018,threatening energy security,climate change and air pollution goals.Fossil fuels increased their share of energy supply investment for the first time since 2014,to$790bn,and will play a significant role for years on current trends,the IEA said.Investment in coal power dropped sharply but was offset by an uptick in oil and gas spending,the World Energy Investment repoit found..Dr Fatih Birol,the executive director of the IEA,said of the renewables fall:"We are seeing a decrease,which is disappointing.And more disappointing is we see the signs this decline may continue this year-this is a worrying trend."Fossil fuels'share of energy investment needs to drop t0 40%by 2030 to meet climate targets but instead rose fractionally t0 59%in 2017.World leaders'warm words on renewables and energy efficiency needed to be matched with action,Birol said,urging govemments to create less investment uncertainty for green energy.Globally,energy investment fell 2%to$1.8tn in 2017,with electricity taking a bigger share than oil and gas for the second year in a row.The decline in renewable power generation spending was mostly down to falls in wind power and hydro but solar hit record levels despite becoming cheaper to install.While coal investment fell to its lowest level in 10 years,spending on gas-fired power stations rose 40%.Nuclear power fell sharply to the lowest level of investment in five years.In the oil and gas industry,rising prices have helped investment in production rise 4%last year and is expected to grow 5%this year.The US's shale boom will drive much of the groivth,and frackers are on track to achieve positive free cashflow this year,for the first time.The US is not expected to pump enough extra crude to bring down oil prices,though.Birol said"Us shale growth is very welcome growth for badly needed additions but this growth alone will not be enough to balance out the markets.Outside the US,investment in conventional oil and gas projects remains subdued and Birol said the world faced"major difficulties"if investment was not stepped u Motorists spent S 43bn on fully electric cars and plug-in hybrids last year,accounting for half of global growth in car sales.However,the battery-powered cars are not seriously denting oil demand yet the IEA said Governments are increasing investment in energy markets,either directly through state-owned firms or indirectly via investments policies and regulation,which Birol said was a surprising developmentWhat is the main reason for the falling investment in the renewable power generation?A.The complicated investment proceduresB.The drop in the demand of the green enC.The decline in wind power and hydroD.The lack of financial support and channels
Which statement most accurately describes the account planning service component in the prepare phase for Cisco Unified Communications（）A、It performs a detailed financial analysis， including current phone network costs， training， and return of investment.B、It researches unique challenges and conducts competitive analysis to determine a vertical approach and strategy.C、It identifies the key players， high-level solution requirements， timelines， and scope of the opportunity.D、It provides the partner with information regarding customer acceptance of the new solution.
Which three steps are considered part of the initial configuration?（）A、SNMPB、hostnameC、root passwordD、user passwordE、management access interface
单选题Which statement most accurately describes the account planning service component in the prepare phase for Cisco Unified Communications（）AIt performs a detailed financial analysis， including current phone network costs， training， and return of investment.BIt researches unique challenges and conducts competitive analysis to determine a vertical approach and strategy.CIt identifies the key players， high-level solution requirements， timelines， and scope of the opportunity.DIt provides the partner with information regarding customer acceptance of the new solution.
多选题Which three steps are considered part of the initial configuration?（）ASNMPBhostnameCroot passwordDuser passwordEmanagement access interface
单选题Given： Which code， inserted at line 16， will cause a java.lang.ClassCastException？（）A Alpha a = x；B Foo f = （Delta）x；C Foo f = （Alpha）x；D Beta b = （Beta）（Alpha）x；
问答题Practice 2 ● You work in a company which deals with industrial waste. You have read about a new kind of pump which could save your company thousands of dollars in service and maintenance costs. ● Write a memo to your Head of Department saying: ● where you read about the new pump ● why you think it could be a good investment ● how you might get more information about it. ● Write 40—50 words on a separate sheet.
单选题Which code， inserted at line 16， will cause a java.lang.ClassCastException？（）A Alpha a=x；B Foo f=（Delta）x；C Foo f=（Alpha）x；D Beta b=（Beta）（Alpha）x；