For this assignment, read the case study, “Eastern Gear, Inc.” on pages 450-452 of your textbook. Once you have read and reviewed the case scenario, respond to the following questions with thorough explanations and well-supported rationale:
1. Explain the problems, both current and future, that Eastern Gear faces.
2. Discuss how modification in process selection and advances in technology might affect Eastern Gear.
3. Compile a process flow analysis on Eastern Gear.
4. Recommend a course of action for Eastern Gear with respect to solving the problems you identified in question one.
Your response must be a minimum of three full pages, double-spaced.

Please refer the link below.

https://drive.google.com/open?id=1x8h0XIWUi6J7SKrHxcAgIlCju6H1dDFG

Cold Goose Metal Works Inc Income Statement for Year Ending December 31 Year 2 (Forecasted) Year 1 Net sales $30,000,000 19,500,000 1,200,000 $9,300,000 930,000 8,370,000 3,348,000 $5,022,000 300,000 4,722,000 2,259,900 $2,462,100 Less: Operating costs, except depreciation and amortization Less: Depreciation and amortization expenses Operating income (or EBIT) Less: Interest expense Pre-tax income (or EBT 1,200,000 Less: Taxes (40%) Earnings after taxes Less: Preferred stock dividends Earnings available to common shareholders Less: Common stock dividends Contribution to retained earnings $3,044,962

YEN AND EURO: 2004-2009 Yen FX RISK: IN-CLASS EXERCISE For each one of the three companies, identify the winners and losers during both the 2005 and the 2007 periods, based on the graphs of Yen and Euro prices: Ford is a net seller of automobiles in Europe and Japue Exson is a net huyer ot raw material and services from Eueope American Motors has ne expertiimport with other countries Nike is a net buyer is Europe and net seller in Japan

Consider the valuation of Nike given in Example 10.1 uppose you believe Nike’s initial revenue growth rate will be between 7% and 11% (with growth always slowing linearly to 5% by year 2018), what range of prices for a. ike stock is consistent with these forecasts? Suppose you believe Nike’s initial revenue EBIT margin will be between 9% and 11% of sales. What range of prices for Nike stock is consistent with these forecasts? uppose you believe Nike’s weighted average cost of capital is between 9.5% and 12%. What range of prices for Nike stock is consistent with these forecasts What range of stock prices is consistent if you vary the estimates as in parts (a), (b) and (c) simultaneouslv?

(15 pts) Table VII below reports some additional results from the Oregon Health Insurance Experiment. The Table shows the effects of gaining access to health insurance (lottery winners) on a family’s financial status. The first column reports the mean for the control group (lottery losers). The second column reports the difference for lottery winners. Standard errors are shown in parentheses. Use the results reported in the Table to answer the questions below 8. f. Does gaining access to health insurance have any effect on a family’s overall finances (Panel A)? If so, what aspect(s) are affected, and how? Explain. g. What is the impact of health insurance on a family’s medical debt? (Refer to any medical collection, and amount owed in Panel B.) Explain your answers. h. What is the impact of health insurance on a family’s nonmedical debt (Panel C)? Explain i. What percentage of control families have some medical debt? What percentage of lottery winners? j. Are you surprised at the magnitude of the percentages in part d? Why or why not? Table VII Financial Strain Control mean ITT Panel A: Overall Any bankruptcy Any liern Any judgment Any collection Any delinquency (credit accounts) Standardized treatment effect 0.0022 (0.119 (0.0014) 0.0012 0.144 0.0014) 0.0014 (0.244 0.0024) 0.014 0.021 0.064 0.500 0.366 -0.012 (0.500) (0.0041) 0.0016 (0.482 (0.0042) 0.0022 (0.0049) Panel B: Medical debt Any medical collection Amount owed in medical collections Standardized treatment effect 0.281 -0.016 (0.449 (0.0040) 1,999 (45) -0.026 (0.0061) Panel C: Nonmedical debt Any nonmedical collection Amount owed in nonmedical collections Standardized treatment effect 0.392 -0.0046 (0.488) (0.0041) 2,740 (9,492) 20 (63) -0.0058 (0.0059)

You are the chair of the Network’s ad hoc task force. Your charge is to evaluate the two alternatives and to make a recommendation on which one to accept, if revenues would be identical for the two alternatives, and hence the decision can be made solely on the basis of costs. As part of the analysis, the costs of the two alternatives must be estimated on a per procedure basis and an annual basis. In addition, any relevant qualitative factors must be considered before the recommendation is made.

To keep the base case analysis manageable, the task force was instructed to assume that the operating costs remain constant over the useful life of the equipment. For comparative purposes, this assumption is not too egregious because the activities are roughly the same for both alternatives and, hence, inflation would have a somewhat neutral impact on the cost comparison.

In addition, the System CFO has asked the task force to perform some sensitivity (scenario) analyses. He is concerned about the accuracy of the cost detail inputs. Although he is confident about many of the estimates, he thinks others are more arbitrary. Those activity cost inputs considered to be most uncertain are supplies cost per unit; billing and collection cost per unit; general administration cost per unit; and transportation, setup, and breakdown cost per unit.

Thus, first, the task force must redo the analysis assuming that these inputs are higher than the base case values by 10 and 20 percent. Activity cost inputs less than the base case values could also be examined, but the critical issue here is not to underestimate the total costs involved in the two alternatives. Second, the task force must determine what would happen to the cost estimates if the useful life of the capital equipment were as short as three years or as long as seven years. Another concern was that the useful life of the equipment depended on the alternative chosen; that is, there would be less wear and tear under Alternative 1 than under Alternative 2. Finally, the task force must assess the impact of a purchase discount: Would the discount amount influence the ultimate decision?

You believe that performing a sensitivity analysis on the number of procedures would be helpful, but you realize this task would require recalculation of the per unit cost inputs, an effort thought to be too time-consuming to undertake at this point in the analysis.

Reba Dixon is a fifth-grade school teacher who earned a salary of $38,000 in 2017. She is 45 years old and has been divorced for four years. She receives $1,200 of alimony payments each month from her former husband. Reba also rents out a small apartment building. This year Reba received $30,000 of rental payments from tenants and she incurred $19,500 of expenses associated with the rental. Reba and her daughter Heather (20 years old at the end of the year) moved to Georgia in January of this year. Reba provides more than one-half of Heather’s support. They had been living in Colorado for the past 15 years, but ever since her divorce, Reba has been wanting to move back to Georgia to be closer to her family. Luckily, last December, a teaching position opened up and Reba and Heather decided to make the move. Reba paid a moving company $2,010 to move their personal belongings, and she and Heather spent two days driving the 1,426 miles to Georgia. During the trip, Reba paid $200 for lodging and $85 for meals. Reba’s mother was so excited to have her daughter and granddaughter move back to Georgia that she gave Reba $3,000 to help out with the moving costs. Reba rented a home in Georgia. Heather decided to continue living at home with her mom, but she started attending school full-time in January at a nearby university. She was awarded a $3,000 partial tuition scholarship this year, and Reba helped out by paying the remaining $500 tuition cost. If possible, Reba thought it would be best to claim the education credit for these expenses. Reba wasn’t sure if she would have enough items to help her benefit from itemizing on her tax return. However, she kept track of several expenses this year that she thought might qualify if she was able to itemize. Reba paid $2,800 in state income taxes and $6,500 in charitable contributions during the year. She also paid the following medical-related expenses for her and Heather: Insurance premiums $ 4,795 Medical care expenses 1,100 Prescription medicine 350 Nonprescription medicine 100 New contact lenses for Heather 200 Shortly after the move, Reba got distracted while driving and she ran into a street sign. The accident caused $900 in damage to the car and gave her whiplash. Because the repairs were less than her insurance deductible, she paid the entire cost of the repairs. Reba wasn’t able to work for two months after the accident. Fortunately, she received $2,000 from her disability insurance. Her employer, the Central Georgia School District, paid 60 percent of the premiums on the policy as a nontaxable fringe benefit and Reba paid the remaining 40 percent portion. A few years ago, Reba acquired several investments with her portion of the divorce settlement. This year she reported the following income from her investments: $2,200 of interest income from corporate bonds and $1,500 interest income from City of Denver municipal bonds. Overall, Reba’s stock portfolio appreciated by $12,000 but she did not sell any of her stocks. Heather reported $3,200 of interest income from corporate bonds she received as gifts from her father over the last several years. This was Heather’s only source of income for the year. Reba had $10,000 of federal income taxes withheld by her employer. Heather made $500 of estimated tax payments during the year. Reba did not make any estimated payments. Reba had qualifying insurance for purposes of the Affordable Care Act (ACA).

Appendix C-Investor information Name of company: Share price: Ratios Earnings per share P/E ratio Dividend cover (Date)- Date information obtained* Dividend yield