1.Jon Corporation has provided the following miscellaneous information regarding the operations of financial year 2020;

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Sales 10,000,000

Direct materials used 4,000,000

Direct labour 1,500,000

Fixed manufacturing overheads 2,000,000

Fixed selling and administration expenses 1,000,000

Gross profit 2,000,000

Net loss 500,000

Calculate:

(i)Factory cost of goods sold

(ii) Variable factory overhead

(iii)Variable selling and administration expenses

(iv)Contribution margin in in shillings

(v)Break-even point in shillings

2.The transactions listed below are typical of those involving Amalgamated Textiles and American Fashions. Amalgamated is a wholesale merchandiser and American Fashions is a retail merchandiser. Assume all sales of merchandise from Amalgamated to American Fashions are made with terms n/60, and the two companies use perpetual inventory systems. Assume the following transactions between the two companies occurred in the order listed during the year ended December 31.

1. Amalgamated sold merchandise to American Fashions at a selling price of $230,000. The merchandise had cost Amalgamated $175,000.
2. Two days later, American Fashions returned goods that had been sold to the company at a price of $20,000 and complained to Amalgamated that some of the remaining merchandise differed from what American Fashions had ordered. Amalgamated agreed to give an allowance of $5,000 to American Fashions. The goods returned by American Fashions had cost Amalgamated $15,270.

Indicate the amount and direction of the effect (+ for increase, for decrease, and NE for no effect) of each transaction on the Inventory balance of American Fashions

3.Find NPV, if the Future income for next 15 years is 30 billion with interest rate of 3%, fixed cost at 5 billion and Variable cost 18 million /year?

4.Prepare trial balance for the information above

$

Sales 210,420

Purchases 108,680

Inventory at 1 July 2017 9,410

Carriage outwards 1,115

Carriage inwards 840

Return inwards 4,900

Return outwards 3,720

Salaries and wages 41,800

Motor expenses 912

Rent expense 6,800

Sundry expenses 318

Motor vehicles 14,400

Fixtures and fittings 912

Account receivables 23,200

Account payables 14,100

Cash at bank 4,100

Cash in hand 240

Drawings 29,440

Capital 18,827

494,134

5.What is the need and significance of database logical structures in effective management

6.Max finished his PhD and graduated from university in December 2018. He entered the workforce on January 1, 2019 with a gross salary of $85,000 plus an immediate $5,000 signing bonus when he started with his new employer, XYZ Inc. As a resident of Quebec, calculate his combined 2019 taxes payable. ( Ignore Non-Refundable Tax Credits, Quebec Abatement and any employer withholdings)

Marginal tax rate for $90,000 is 41.12% and for $85,000 is 37.12%.

7.On December 20, 1994 the Nippon Telegraph & Telephone Corporation (NTT) issued 1 billion of 10-year debentures due December 20, 2004. The debentures carried a 4 3/4% coupon. They were priced at par, that is, they cost the investor 100 per 100 of face value. The entire amount of borrowed principal would be repaid at maturity. Interest would be paid annually upon the anniversary date of the issuance (i.e., on December 20th of each year). The debentures carried a AAA credit rating.

A. What was the yield to maturity of NTT's debentures at the time of issuance? What would it have been if the bonds were priced at 99 instead of 100 (i.e., at 99% of face value)? at 101 instead of 100?

B. By 1996 yields on AAA yen debt maturing in 8 years had dropped to 3.00%. Given this yield to maturity, at what price should the NTT debentures have been selling?

8.An interest rate of 3.75% per year, continuously compounded, is equivalent to what annual interest rate with semiannual compounding?

9.

Joe Plc issued a nine year bond in November 2011 with a coupon rate of 8% (face value = 100). In November 2016 (just after that year's coupon had been paid) you bought the bond at a price of 96.76. It is now exactly one year later and you have just sold the bond for 102.62.

What is the current yield today?

10.Inflation is forecast at 2% for the next 2 years and 3% thereafter. If you expect to receive $15,000 in 5 years' time, what is its equivalent in todays dollars?