In 2010, Jennifer (Jen) Liu and Larry Mestas founded Jen and Larry’s Frozen Yogurt Company, which was based on the idea of applying the microbrew or microbatch strategy to the production and sale of frozen yogurt. Jen and Larry began producing small quantities of unique flavors and blends in limited editions. Revenues were $600,000 in 2010 and were estimated at $1.2 million in 2011.Because Jen and Larry were selling premium frozen yogurt containing premium ingredients, each small cup of yogurt sold for $3, and the cost of producing the frozen yogurt averaged $1.50 per cup. Administrative expenses, including Jen and Larry’s salaries and expenses for an accountant and two other administrative staff, were estimated at $180,000 in 2011. Marketing expenses, largely in the form of behind-the-counter workers, in-store posters, and advertising in local newspapers, were projected to be $200,000 in 2011.An investment in bricks and mortar was necessary to make and sell the yogurt. Initial specialty equipment and the renovation of an old warehouse building in lower downtown (known as LoDo) of $450,000 occurred at the beginning of 2010 along with $50,000 being invested in inventories. An additional equipment investment of $100,000 was estimated to be needed at the beginning of 2011 to make the amount of yogurt forecasted to be sold in 2011. Depreciation expenses were expected to be $50,000 in 2011, and interest expenses were estimated at $15,000. The tax rate was expected to be 25 percent of taxable income.A. How much net profit, before any financing costs, is the venture expected to earn in 2011? What would be the net profit if sales reach $1.5 million? What would be the net profit if sales are only $800,000?B. If inventories are expected to turn over ten times a year (based on cost of goods sold), what will be the venture’s average inventories balance next year if sales are $1.2 million? How much might the venture be able to borrow if a lender typically lends an amount equal to 50 percent of the average inventories balance? If the borrowing rate is 12 percent, how much dollar amount of interest would have to be paid on the loan?C. How might the venture acquire and finance the new equipment that is needed?D. Identify potential government credit resources for the venture.E. Prepare a summary of the benefits and risks of Jen and Larry’s continued use of credit card financing.F. Prepare a summary of how the venture might benefit from receivables financing if commercial customers are extended credit for thirty days on their purchases.G. Discuss the impact of potential loan restrictions should the venture seek commercial loan financing.H. Comment on how the venture might be evaluated in terms of the five Cs of credit analysis.

Read the article entitled, “Are We Smarter than Our Parents?” in chapter 5 of your textbook. This article addresses a study by Dr. James Flynn of the rise of the IQ rate over generations, and how statistics are involved in tracking this phenomenon, especially with reference to the material in chapter 5.Write a paper in which you explore some of the statistical data that has been found in this area of study. Additionally choose and answer one of the four questions below in a focused and clear manner. Remember to integrate the statistical data in the article that discusses this topic.

1. Which explanation do you favor for the Flynn effect: that people are getting smarter or that people are merely getting more practice at the skills measured on IQ tests? Defend your opinion.
2. The rise in performance on IQ tests contrasts sharply with a steady decline in performance over the past few decades on many tests that measure factual knowledge, such as the SAT. Think of several possible ways to explain these contrasting results, and form an opinion as to the most likely explanation.
3. Results on IQ tests tend to differ among different ethnic groups. Some people have used this fact to argue that some ethnic groups tend to be intellectually superior to others. Can such an argument still be supported in light of the Flynn effect? Defend your opinion.
4. Discuss some of the common uses of JQ tests. Do you think that IQ tests should be used for these purposes? Does the Flynn effect alter your thoughts about the uses of IQ tests? Explain.

Length: 1-2 pages not including title and reference pagesYour paper should demonstrate thoughtful consideration of the ideas and concepts that are presented in the course and provide new thoughts and insights relating directly to this topic. Your paper should reflect scholarly writing and current APA standards. Review APA Form and Style.Be sure to adhere to Northcentral University’s Academic Integrity Policy. View the Northcentral Academic Integrity Tutorial to refresh your knowledge of how to achieve academic integrity.

Upload your assignment using the Upload Assignment button below.