1) Assume that the following data describe the condition of
Question 1) Assume that the following data describe the condition of the commercial banking system: Total Reserves: $200 billionTransactions deposits: $800 billionCash held by public: $100 billionReserve Requirement: 20%b. Are the banks fully utilizing their lending capacity? Briefly explain.c. What would happen to the money supply initially if the public deposited another $50 billion in cash in transactions accounts? Briefly explain. d. What would the lending capacity of the banking system be after such a large portfolio switch?e. How large would the money supply be if the banks fully utilized their lending capacity?f. What three steps could the Fed take to offset the potential growth in M1?
Need answer with workings Unlike retailers and wholesalers who simply
Question Need answer with workings Unlike retailers and wholesalers who simply purchase completed inventory, a manufacturer buys Raw Materials (DM or Direct Materials) and then incurs additional cost to convert this DM, using Direct Labour (DL) and other indirect costs (usually called Overheads – OHDS). Once complete, the Cost of Goods Manufactured (COGM) can be calculated and stored as Finished Goods (FG). The Finished Goods (FG) are sold and the costs of production can then be expensed as Cost of Goods Sold (COGS). Cost accountants record these costs in three inventory accounts, Raw Materials, Work in Process (WIP) and Finished Goods.Using the following cost information, answer the following question:A company has recorded the following for a single month of production:Raw Materials – Opening Balance: $11367 , Purchases $47128 and has a Closing Balance of $13340WIP Information: Conversion costs incurred this period include: Opening balance of WIP was $48393, DL $20723 and OHDs $35919 and the closing balance of WIP was $25836Finished Goods information: Opening Balance of FG was $61599 and the closing balance was $55215Required: Trace all costs through the three inventory accounts (RM > WIP > FG > COGS) to calculate the Cost of Goods Sold this month
Need answer with workings If company had annual budgeted overheads
Question Need answer with workings If company had annual budgeted overheads of $2118678 and used Direct Labour Hours as the cost driver and budgeted to run the business at 24641. Calculate the POHR for this company as use for the following:If Actual Direct Labour Hours during the period totalled 20664 and the Actual Overhead was $2201364, calculate the over or under applied overhead. (Note if the OHD is overapplied, enter your answer as a NEGATIVE (with a ‘-‘ in front) and if it is UNDERAPPLIED.
When you record depreciation and then later sell the asset,
Question When you record depreciation and then later sell the asset, how does the accumulated depreciation factor into your sale?
1) Runge Company purchased machinery on January 1 at a
Question 1) Runge Company purchased machinery on January 1 at a list price of $300,000, with credit terms 2/10, n/30. Payment was made within the discount period. Runge paid $15,000 sales tax on the machinery and paid installation charges of $5,300. Prior to installation, Runge paid $12,000 to pour a concrete slab on which to place the machinery. What is the total cost of the new machinery?A.$326,300B.$309,000C.$314,300D.$332,3002) Pearson Company bought a machine on January 1, 2022. The machine cost $180,000 and had an expected salvage value of $30,000. The life of the machine was estimated to be 5 years. The depreciable cost of the machine isA.$150,000B.$30,000C.$50,000D.$180,000.3) Salem Company hired Kirk Construction to construct an office building for ₤8,000,000 on land costing ₤2,000,000, which Salem Company owned. The building was completed and ready to be used on January 1, 2022 and it has a useful life of 40 years. The price of the building included land improvements costing ₤600,000 and equipment costing ₤750,000. The useful lives of the land improvements and the equipment are 10 years and 5 years, respectively. Salem Company uses component depreciation, and the company uses straight-line depreciation for other similar assets. What is the net amount reported for the building on Salem Company’s December 31, 2022 statement of financial position?A.₤6,483,750B.₤7,573,750C.₤7,800,000D.₤7,665,000
Here are the instructions for the excel spreadsheet. I uploaded
Question Here are the instructions for the excel spreadsheet. I uploaded the documents under the study documents because there is no place to attach them here. Is there a way for me to send the documents directly to you?Instructions
1) The return on assets ratio can be computed from
Question 1) The return on assets ratio can be computed from the profit margin ratio and the asset turnover ratio. .True .False2) GoodwillA.can be purchased and charged directly to stockholders’ equity.B.is only recorded when the purchase of an entire business occurs.C.may be expensed upon purchase if desired.D.can be sold by itself to another company.3) When an asset is sold, a gain is realized when theA.sale price exceeds the depreciable cost of the asset sold.B.sale price exceeds the original cost of the asset sold.C.sale price exceeds the book value of the asset sold.D.book value exceeds the sale price of the asset sold.
Sandpiper Company has 20,000 shares of cumulative preferred 1% stock
Question Sandpiper Company has 20,000 shares of cumulative preferred 1% stock of $100 par and 100,000 shares of $50 par common stock. The following amounts were distributed as dividends:Year 1 $10,000Year 2 45,000Year 3 80,000Determine the dividends per share for preferred and common stock for each year.
1. A, B, C and D decided to form a
Question 1. A, B, C and D decided to form a partnership to conduct restaurant business. On 01/01/2015, A contributed 100,000 cash. B contributed 30,000 worth of inventory and B has expertise that is worth 20,000, recognized by all the partners. C contributed by PPE with market value of 100,000 and loan of 50,000 which will be transferred to the partnership. D contributes some patents with market value of 100,000. Below are the rules to divide the profits (losses) each year.1. Each year if the partnership generates income, each partner is entitled to 5% of their beginning balance of capital, the interests will be paid in cash. If the partnership does not generate enough profits, then the interests will be shared among partners proportionally (based on the ratio of beginning balance of capital). 2. If there if enough profit left for the next step, B and C shall receive 5,000 compensation each year, if not enough profits, then B and C’s compensation shall be awarded proportionally.3. After paying the compensation., if there is enough profits left, the remaining profits (or just loss) should be shared among A, B, C and D in the ratio of 25%, 40%, 10% and 25%.4. Every year the partners retain 60% of their shared profits from Step 4 in the partnership as the addition to their capitals.For 2015, the partnership announced net income of 40,000.For 2016, the partnership announced net income of 25,000.For 2017, the partnership announced net loss of 10,000. a. Use Goodwill method to calculate the capital balance of each partner on 01/01/2015, 12/31/2015, 12/31/2016 and 12/31/2017. b. Use bonus method to calculate the capital balance of each partner on 01/01/2015, 12/31/2015, 12/31/2016 and 12/31/2017.
Using the tables above, what is the present value of
Question Using the tables above, what is the present value of $8,475.00 (rounded to the nearest dollar) to be received at the end of each of the next 4 years, assuming an earnings rate of 12%?a.$25,739b.$20,357c.$8,475d.$30,552 ATTACHMENT PREVIEW Download attachment Lower Level.JPG
ATTACHMENT PREVIEW Download attachment dawson.JPG
Question ATTACHMENT PREVIEW Download attachment dawson.JPG
Using the tables above, if an investment is made now
Question Using the tables above, if an investment is made now for $18,000 that will generate a cash inflow of $6,000 a year for the next 4 years, what would be the net present value (rounded to the nearest dollar) of the investment, assuming an earnings rate of 10%?a.$19,020b.$6,000c.$1,020d.$18,000 ATTACHMENT PREVIEW Download attachment dawson.JPG
Using the tables above, what would be the internal rate
Question Using the tables above, what would be the internal rate of return of an investment that required an investment of $227,460 and would generate an annual cash inflow of $60,000 for the next 5 years?a.12%b.10%c.6%d.cannot be determined from the data given ATTACHMENT PREVIEW Download attachment Lower Level.JPG
Using the tables above, what would be the present value
Question Using the tables above, what would be the present value of $19,709 (rounded to the nearest dollar) to be received 4 years from today, assuming an earnings rate of 10%?a.$19,709b.$13,461c.$62,478d.$15,610 ATTACHMENT PREVIEW Download attachment Lower Level.JPG
Be able to match a list of “order-to-cash” or “purchase-to-pay”
Question Be able to match a list of “order-to-cash” or “purchase-to-pay” internal control problems with the best control plan. Internal control problems can include the following:1. Several shipments have not been made in a timely manner.2. The order entry system does not ask the sales person to check the data entries for completeness before moving on to the next sales order.3. Comparisons are not made of shipping notice inputs with actual shipments of goods.4. A vendor has no knowledge of whether an electronic purchase order is sent by an authorized employee at the customer’s organization.5. An employee occasionally prepares purchase orders for vendors owned by his relatives.6. The system does not automatically identify erroneous data on purchase orders before they are sent to vendors.7. An employee was caught in a “lapping” scheme.8. A warehouse employee sent double the number of widgets that company had ordered.9. Many shipments are never billed to the customer.10. Several invoices have been recorded as liabilities for goods that were never ordered.11. Many cash discounts are lost and vendors are unhappy because the company is frequently short of cash available to pay bills.12. XYZ Company has made several overpayments because invoices are received for quantities and prices that are different from what was ordered and received.
You have recently hired several new members to your team who will
You have recently hired several new members to your team who will be assisting with financial statement analysis for your clients. As part of their training, you want to make sure that they fully understand the requirements of the SEC regarding financial reporting and the tools available to analyze the financial performance of a firm.
Respond to the following:1. Assume that a firm’s earnings per
Question Respond to the following:1. Assume that a firm’s earnings per share (EPS) are expected to be $2.00 next year and that analysts have determined that an appropriate forward-looking multiple is 15 times the projected earnings. What should the stock price be? 2. Suppose that the firm in question #1 plans to increase the proportion of debt as part of its capital structure. The projected EPS would then be $2.50. In a world with no financial distress, determine what the stock price should be and explain why in the real world the stock price would be less than that amount. 3. Calculate an EBIT breakeven between a debt firm (DF) and an all-equity firm (EF) based on the following information: DF interest = $40,000; DF number common shares = 6,000; EF number of common shares = 10,000; and tax rate = 35 percent. Check your answer by calculating the EPS for both DF and EF at the breakeven EBIT. 4. Calculate the cash flow coverage ratio based on the following information: EBIT = $540,000; depreciation and amortization = $65,000; interest payments = $180,000; principal repayment = $75,000; and tax rate = 35 percent. 5. Suppose a firm has an EBIT of $5 million, interest expenses of $2 million, depreciation expenses of $1 million, and a tax rate of 35 percent. Its bank agrees to lend up to 4 times its EBITDA. How much debt can the firm borrow from the bank? 6. Suppose an all-equity firm has a beta estimated to be 1.2. If the firm changes its capital structure such that its debt-to-equity ratio is now 0.4, what should be the revised beta estimate if it also faces a tax rate of 35 percent?
1. Adam (A), Betsy (B) and Cathy (C) decided to
Question 1. Adam (A), Betsy (B) and Cathy (C) decided to form a partnership, which was founded on 01/01/2015. Adam contributed cash $20,000 and inventory with market value of $30,000. B contributed a piece of land with market value of $80,000 with unpaid mortgage in the amount of $30,000. C contributed PPE with market value of $50,000 and C’s expertise is deemed to be worth of $50,000 by all the 3 partners. a. If ABC decided to use goodwill method to document the creation of the partnership, what are the journal entries and what are the values of capital under respective partners’ names? b. If ABC decided to use bonus method to document the foundation of the partnership, what are the journal entries and what are the values of capital under respective partners’ names? c. Assuming that every year the profit among different partners will be shared in the ration of 10%, 30% and 60%, and partners have to retain 75% of their share profits in the partnership in the case of profit. What are the balances of each partner’s capital by the end of each year using both goodwill and bonus method (2015 and 2016)?c.1. The partnership made $10,000 in 2015 and had a loss of $20,000 in 2016 (Goodwill method). c.2: The partnership made $15,000 in 2015 and had a loss of $25,000 in 2016 (bonus method). 2. A, B, C and D decided to form a partnership to conduct restaurant business. On 01/01/2015, A contributed 100,000 cash. B contributed 30,000 worth of inventory and B has expertise that is worth 20,000, recognized by all the partners. C contributed by PPE with market value of 100,000 and loan of 50,000 which will be transferred to the partnership. D contributes some patents with market value of 100,000. Below are the rules to divide the profits (losses) each year.1. Each year if the partnership generates income, each partner is entitled to 5% of their beginning balance of capital, the interests will be paid in cash. If the partnership does not generate enough profits, then the interests will be shared among partners proportionally (based on the ratio of beginning balance of capital). 2. If there if enough profit left for the next step, B and C shall receive 5,000 compensation each year, if not enough profits, then B and C’s compensation shall be awarded proportionally.3. After paying the compensation., if there is enough profits left, the remaining profits (or just loss) should be shared among A, B, C and D in the ratio of 25%, 40%, 10% and 25%.4. Every year the partners retain 60% of their shared profits from Step 4 in the partnership as the addition to their capitals.For 2015, the partnership announced net income of 40,000.For 2016, the partnership announced net income of 25,000.For 2017, the partnership announced net loss of 10,000. a. Use Goodwill method to calculate the capital balance of each partner on 01/01/2015, 12/31/2015, 12/31/2016 and 12/31/2017. b. Use bonus method to calculate the capital balance of each partner on 01/01/2015, 12/31/2015, 12/31/2016 and 12/31/2017.
Please see sample question below: /> Attachment 1 Attachment 2
Question Please see sample question below: /> Attachment 1 Attachment 2 ATTACHMENT PREVIEW Download attachment e24-4 P1.PNG ATTACHMENT PREVIEW Download attachment e24-4 P2.PNG
Please see sample questions below:Instructions: There are a total of
Question Please see sample questions below:Instructions: There are a total of five brief exercise, you only need to complete four. If you answer all four, I will take your highest four exercises you have completed; each question is worth 10 points.Brief Exercise 1:Jent Company reported the following information for 2013: October November DecemberBudgeted sales $320,000 $340,000 $360,000Budgeted purchases $120,000 $128,000 $144,000 All sales are on credit. Customer amounts on account are collected 40% in the month of sale and 60% in the following month.InstructionsCompute the amount of cash Jent will receive during November.Brief Exercise 2:Sable, Inc. has budgeted direct materials purchases of $400,000 in March and $500,000 in April. Past experience indicates that the company pays for 60% of its purchases in the month of purchase and the remaining 40% in the next month. Other costs are all paid during the month incurred. During April, the following items were budgeted:Wages expense $120,000Purchase of office equipment 200,000Selling and administrative expenses 126,000Depreciation expense 18,000InstructionsCompute the amount of budgeted cash disbursements for April.Brief Exercise 3:Beal, Inc. provided the following information: March April MayProjected merchandise purchases $65,000 $75,000 $80,000· Beal pays 40% of merchandise purchases in the month purchased and 60% in the following month. · General operating expenses are budgeted to be $20,000 per month of which depreciation is $2,000 of this amount. Beal pays operating expenses in the month incurred.InstructionsCalculate Beal’s budgeted cash disbursements for May.Brief Exercise 4:Diamond Company is considering investing in new equipment that will cost $1,400,000 with a 10-year useful life. The new equipment is expected to produce annual net income of $90,000 over its useful life. Depreciation expense, using the straight-line rate, is $140,000 per year.InstructionsCompute the cash payback period.Brief Exercise 5:Madeline Company is proposing to spend $200,000 to purchase a machine that will provide annual cash flows of $38,000. The appropriate present value factor for 10 periods is 5.65.InstructionsCompute the proposed investment’s net present value and indicate whether the investment should be made by Madeline Company.
This question was created from PMAN 650 Final Exam (v4).docx
Question This question was created from PMAN 650 Final Exam (v4).docx https://www..com/file/32359886/PMAN-650-Final-Exam-v4docx/ finding the answer to this ATTACHMENT PREVIEW Download attachment 32359886-334029.jpeg 6. You work for a company whose primary long term financial goal is to undertake projects that maximize company value. You have been asked to provide a recommendation with respect to ranking three mutually exclusive projects. The first project has a NP‘v’ of $233K and an IRR of 10%; the second has a NPV of $180K and an IRR of $1296; the third has a NPV of 220K and an IRR of 9%. How would you rank the projects? Explain.
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