ACCOUNTING AND FINANCIAL ENGINEERING - EXAMPLE 34.37 : A biochemical engineering professional applies 5-step Du Pont formula in the accounting. Let Net Income = A, Earning Before Tax (EBT) = B, Earning Before Interest, Tax (EBIT) = C, Net Sales = D, Total Assets = E, Shareholders Equity = F. Let Tax Burden = A / B = 0.75, Interest Burden = B / C = 1.05, EBIT Margin = C / D = 0.27, Asset Turnover = D / E = 0.66, Return on Equity = A / F = 0.37. (a) Calculate the value of Leverage = E / F. (b) If AB + BC + CD + DE + EF = $$ 141932, find the values of A, B, C, D, E and F.
ACCOUNTING AND FINANCIAL ENGINEERING - ANSWER 34.37 : (a) Leverage = E / F = (A / F) / [ (A / B) (B / C) (C / D) (D / E) ] = 0.37 / [ (0.75) (1.05) (0.27) (0.66) ] = 2.6366. (b) Let 6 simulteneous equations with 6 unknowns could be formed where A / B = 0.75, B / C = 1.05, C / D = 0.27, D / E = 0.66, AB + BC + CD + DE + EF = 141932 = G. Simple computer programming could be used to perform trial-and-error calculation. For example, DATA : What-if Analysis : Goal Seek in Excel 2013 is able to set the value of G to 141932 by changing the value of A, B, C, D, E or F. Finally A ≈ $48, B ≈ $64, C ≈ $61, D ≈ $226, E ≈ $342, F ≈ $129. The answer is given by Kang Chuen Tat; PO Box 6263, Dandenong, Victoria VIC 3175, Australia; SMS +61405421706; chuentat@hotmail.com; http://kangchuentat.wordpress.com.
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Chemical Engineering Material Balance - Three hundred gallons of a mixture containing 75.0 wt % ethanol and 25 wt % water (mixture specific gravity = 0.877) and a quantity of a 40.0 wt % ethanol - 60 wt % water mixture (specific gravity = 0.952) are blended to produce a mixture containing 60.0 wt % ethanol. The specific gravity of a substance is the ratio of density of a substance compared to the density of water. The symbol of weight percent is wt %. (a) Estimate the specific gravity of the 60 % mixture by assuming that y = mx c where y is wt % ethanol, x is mixture specific gravity. Values for m and c are constants. (b) Determine the required volume of the 40 % mixture.
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BIOCHEMICAL ENGINEERING INSTRUMENTATION - EXAMPLE 29.1 : In the application of Theory of Spectrometry in spectrophotometer, let n = N x C x V, V = A x t, e = a x N where n = number of molecules, N = Avogadro's number, V = volume of cuvette, A = area of cuvette, t = thickness of cuvette, C = concentration of fluid in the cuvette, e = extinction coefficient, a = effective area of molecule. (a) By using calculus in dI = -I x a x N x C x dt, prove that ln (I / Io) = -a x N x C x t, where dI is the small difference in I and dt is the small difference in t. I = intensity of light. Io = initial intensity of light. (b) Show by calculations that ln (Io / I) = e x C x t based on the answer in the previous question (a). (c) Find the equation of log (Io / I) as a function of e, C and t based on the answer in the previous question (b).
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