Tristan Narvaja, S.A. (C). Tristan Narvaja, S.A., is the Uruguayan subsidiary of a U.S. manufacturing company. Its balance sheet
for January 1 is shown in the popup window, B. The January 1 exchange rate between the U.S. dollar and the peso Uruguayo ($U) is $U22/$. A. Determine Tristan Narvaja's contribution to the translation exposure of its parent on January 1, using the current rate method. B. Calculate Tristan Narvaja's contribution to its parent's translation gain or loss if the exchange rate on December 31st is $U15/$. Assume all peso Uruguayo accounts remain as they were at the beginning of the year. Balance Sheet (thousands of pesos Uruguayo, $U) Assets Liabilities and Net Worth Cash $U60,000 Current liabilities $U30,000 Accounts receivable 110,000 Long-term debt 50,000 Inventory 150,000 Capital stock 270,000 Net plant & equipment 240,000 Retained earnings 210,000 $U560,000 $U560,000
1 answer:
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Answer:
In order to maximize average daily profit, optimal number of reservations = 100 rooms.
Explanation:
As for the provided information, we have
Total number of rooms = 100
Chances of guests not arriving = 5%
Therefore, guests to arrive = 95%
Thus, bookings = 100/95% = 105.26
Rounding off we have 105 rooms,
Let us assume, all rooms are booked and no cancellation is done, in that case,
Total revenue = $150 100 = $15,000
Less: Overbooked charges = $200 5 = ($1,000)
Less: Variable Cost = $30 100 = ($3,000)
Thus total revenue will be $11,000
In case of booking of 100 rooms the net revenue in case of 5% cancellations, shall be:
Rooms booked = 100 - 5% = 95
Revenue = 95 $150 = $14,250
Less: Variable Costs = 95 $30 = ($2,850)
Thus total revenue = $11,400
Since profit in case of booking 100 rooms is more in any case, even in case of least cancellation the revenue will increase.
Thus, this is the optimal number of reservations = 100
Answer:
A) Profit Margin, Barco = 23.8%, Kyan = 22.1%
B) Asset Turnover, Barco = 1.83, Kyan = 1.84
C) ROA, Barco = 44%, Kyan = 41%
D) ROE, Barco = 66%, Kyan = 61%
E) Price-Earnings Ratio, Barco = 17.12 times, Kyan = 16.67 times
F) Dividend yield, Barco = 5.1%, Kyan = 5.2%
2B) Barco is the good investment.
Explanation:
Requirement A to Requirement F - See Images Below
2B) Barco company's share is the best from the two companies. From the Return on Asset, Return on Equity, and Price-earnings ratio, it is clear that Barco company's share is an upper hand. For example, P/E ratio of Barco is 17.12 times while Kyan's P/E ratio is 16.67 times. Therefore, I would recommend Barco company's stock should be the better investment.
