Accounting Questions and Answers November 16, 2022

Matt Enterprise issued $200000 of ten percent, five year bond with interest payable semi-annually. Determine the issue price if the bonds are priced to yield at a) 10% b) 6% c) 12%

Diego owns 70% of Endothon Corporation's stock, while Maria owns the remaining 30%. Diego and Maria have a tax basis in Endothon's stock of $32,000 and $12,000, respectively. Endothon has current earnings and profits (E&P) of $25,000 and no accumulated E&P. At year-end, Endothon makes a $75,000 distribution: $56,250 to Diego and $18,750 to

Liza is admitted into the partnership for a 50% interest in the profits and losses of the partnership. The old partners Maria, Leonora and Theresa are to retain their original capital and profit-sharing relationships to each other and are to transfer sufficient amount (50%) of their own capital accounts to Liza to accomplish his admission as

ABC Company is a wholesaler of desk lamps. The company has two locations one in Toronto and another that just recently opened in Vancouver. You, CPA, have just been assigned as the Senior Auditor of the financial statement audit engagement for ABC Company's fiscal March 31, 2021 year-end audit. The March 31, 2020 financial statement audit was led

How much gain does Calvin recognize, if any, and what is his basis in the stock of Quail Corporation based on the facts?

Amanda and Calvin form Quail Corporation. Amanda transfers equipment with an adjusted basis of 30,000, fair market value of 60,000, for 50 of the stock, worth 60,000. Calvin transfers fixture and furniture with an adjusted basis of 30,000, fair market value of 60,000, and equipment with an adjusted basis of 30,000, fair market value of 60,000, for

Manuela Co is a textile manufacturing company. It expressed its will to borrow 1Million from Metro De Naga Bank (MNB). Manuela Co, promised to pay the loan for 3 years and interest of P30, 000 quarterly. Metro de Naga Bank examined Manuelas financial statement and revealed three positives notes: Net income from operations increase of 8% for the

Each of the following people below has invested the following amounts today and will keep the money invested for the next ten years. Investment amount today Interest rate Compounding A $10,000 8.0% Quarterly B 10,000 6.2% Semi-annually C 11,000

You are looking at a new project and you have estimated the following cash flows Year 0 1 2 3 Your required return for assets of this risk is 12. a) b) Cash Flows 165,000 63,120 70,800 91,080 Calculate discounted payback period for the project. (4 marks) According to the Internal Rate of Return (IRR) rule, should you accept the project and why (4

Company XYZ produces and sells two types of calculators: Basic and Scientific. The Basic has a lower selling price per unit compared to the Scientific. However, the Basic has a higher contribution margin compared to the Scientific. Due to fixed production capacity, the company has a cap on total production ability. If the company's CEO has decided

Frankie owns an LLC for the sole purpose of obtaining passive income. During the current tax year, Frankie sold an apartment complex in March in its 7th year of life, which had a cost basis of $1,250,000. In the month of April, he purchased a strip mall for $3,525,000. In order to keep security on the strip, he used a portion of the building as a

Alpha Group Limited (AGL), a company listed on the Singapore Exchange (SGX) has a diversified portfolio of businesses. The Gourmet Butchery (GB) line of business now has 12 retail outlets across the island. On 1 July 20x2, GB entered into an arrangement with Ninja Speed (NS) for the latter to provide a home delivery service on behalf of GB. The

Big Bank loaned $100,000 to ABC Corporation. Arthur Apple signed an agreement with Big Bank to act as guarantor for the ABC Corporation loan. Patty Pear signed an agreement with Big Bank to act as surety for the ABC Corporation loan. After a period of one year, ABC Corporation was unable to make the scheduled payment to Big Bank and defaulted on

Requirements: 1. Journalize and post normal monthly transactions to general ledger accounts in T-accounts. 2. Prepare a trial balance as at December 31, 2023. 3. Journalize and post adjusting entries in the same T accounts as requirement #1 above. 4. Prepare an adjusted trial balance as at December 2023. 5. Generate income statement, statement of

DONALD Companys trial balance on November 30, 2023, is presented below. The company uses a perpetual inventory system with FIFO cost flow method. Inventory Building Accounts Cash Accounts Receivable Allowance for Doubtful Accounts Prepaid Insurance Land Goodwill Patents Accumulated Depreciation Building Equipment Accumulated Depreciation

You have been appointed by Interpol - The International Criminal Police Organisation - to manage an international team to produce a high-level report on global efforts to address cyber-security and data security breaches. Experts joining the team are based in New Delhi, New York, Singapore, Sao Paolo and Dubai. Required: a) Given that each expert

A companys current cost information relating to its production is shown in the table below Sales price Direct material. Direct labor Variable overhead Fixed overhead Per Unit 43 7 6 4 4 The company has been approached by a customer with a request for a 200unit special order. What is the minimum per unit sales price that management would accept for

Required Prepare Statement of Retained Earnings for the period ended at December 31, 2022. Prepare Statement of Financial Position, for the period ended at December 31, 2022.

1. ASF uses a perpetual inventory system. Below is a breakdown of inventory on hand at December 31, 2022 Inventory Skis Inventory Snowboards InventoryHelmets Inventory Boots Quantity 20 5 5 35 Unit Cost 300 400 100 70 Total Cost Net Realizable Value 5,700 2,250 550 2,300 6,000 2,000 500 2,450 2. The company ran out of a popular helmet. They

P3,000,000 ABC Realty Corporation sold the following for the quarter Residential condo unit A Residential condo unit B Commercial condo unit A P4,000,000 P2,000,000 Commercial condo unit B P5,000,000 How much is the amount of real properties subject to 12 VAT

Hardin Fabrications is preparing its cash budget for the third quarter. Cash balance on July 1 5 5 Sales collected in cash 7 Sales collected on credit 3 AR balance on July 1 9 22 23 24 Unit Sales 25 Price per Unit 26 Total Sales 27 116,500 10 of credit sales collected in the month of sale 11 of credit sales collected in the following month 12 13

At the end of the year, Tangshan China Company's balance sheet showed total assets of $60 million, total liabilities (including preferred shares) of $45 million, and 1,000,000 common shares outstanding. Based on this information, calculate the book value per ordinary share of Tangshan.

1. Olivia Greer is a partner at Made for You. An analysis of Greer's capital account indicates that during the most recent year, she withdrew $31,000 from the partnership. Her share of the partnership's net loss was $21,500, and she made an additional capital contribution of $21,000. Her capital account ended the year at $161,000. What was her

1) Prepare a bank reconciliation for Cartwright Company as of October 31, using the following information I Cash balance on October 31 bank statement Cash account balance in general ledger Deposit made on October 31, not recorded on bank statement. Note collected by bank (1,200 plus 60 in interest) Outstanding checks No. 567, 800 No. 569, 452.

The following information comes from manager and you are asked to create a financial report in term of balance sheet and income statement. Paying office rent from the bank account 3,500 per month Paying the annual fee for permission 4,000 from bank account Salary payment for 5 office employee 30,000 from bank account on monthly bases Product sale

Campbell company sells merchandise on account for $2,500 to Salter company with credit terms of 3/10, n/60. Salter company returns $200 of merchandise that was damaged, along with a check to settle the account within the discount period. What entry does Campbell make upon receipt of the check and the damaged merchandise?

You manage a rental property. The likelihood of a vacancy in any given month is 12%. The monthly mortgage payment on the property is $2000. You estimate that the maintenance cost every month is given by a normal distribution with a mean of $100 and a standard deviation of $50. Additional administrative expenses are given by a uniform distribution

Keisha is a technician in a physician office laboratory that has a cell counter for performing RBC and WBC counts. The physician ordered a WBC count and differential count on a patient who complained of pain and fever. Keisha performed the WBC count using the cell counter and prepared a stained blood smear to be sent to a reference laboratory for

The acquired goodwill value for Sovereign Ltd is 73,000. The goodwill is tested for impairment and the appropriate carrying amounts were established at 30 June 2015 68,000 30 June 2016 73,000 30 June 2017 63,000 Required Journal entries, if necessary, to account for any goodwill impairment at 30 June of each year. Sovereign Ltd. Date 30 June 2015

Alex Alert is the in-house Certified Public Accountant for a large manufacturing firm. President asks Alex to prepare a pro forma schedule to be used by the president's personal tax preparer in the preparation of the president's individual income tax return. When Alert receives the figures from the president, he notes that the only income items

On January 1, a customer asked your company to convert the $200,000 they owe to a promissory note. The $200,000 principal, plus 8% interest will be due in six months. What is the entry when the note is paid if your company has a year-end of December 31?

Yields on three Treasury notes are given as follows Coupon Yield to Maturity (yrs) rate () maturity () 1 0 5.25 2 5 5.50 6 6.00 3 If coupons are paid annually and par values are equal to 100. (a) What are the prices of the 1year, 2year, and 3year notes Round your answer to 2 decimal places (i.e.x.xx). Answers P(1year) P(2year) (b) What are the

You are evaluating an option on WMT with an expiration date that is 40 days from today. The volatility of WMT stock is 0.14. If you already know the d1 is 14.2. What is the value of d2 for this option

You are quoted an APR (annual percentage rate) of .0888 on a loan. The APR is a stated rate. The loan has monthly compounding: What is the periodic monthly rate? What is the equivalent effective semiannual rate?

Mortgages have an APR (annual percentage rate a stated rate) of 3.84% on fixed-interest-rate loans. Payments and compounding are monthly. What is the periodic (effective) monthly rate? You wish to take out a 30-year, fixed-rate mortgage. You can afford monthly payments of $3,800. Assume that fees are included in the loan. How much can you afford

The MBA problem: You are working now with a yearly salary of 15,00,000 which is expected to grow at a rate of 8% forever. You have 30 years until retirement. You decide to pursue a full time MBA program in a leading business school for which you must quit your job. The MBA program costs 15,00,000 each year for tuition and other fee. Suppose your

You have a choice of buying a municipal bond with a rating of Aaa paying 4 interest or a corporate bond with a rating of Ba paying 8 interest. Be sure to explain how the bond ratings work. Which bond would be your choice Explain why.

You are a conservative investor who is considering investing in BMRP Inc., a small widget company. You like the intrinsic valuation approach and want to calculate BMRP Inc.s weighted average cost of capital and then perform a discounted cash flow analysis. You note that the equity market risk premium calculated using the geometric mean is 3.9 and

As discussed in this topic's readings, the three major categories of life insurance are term, whole, and universal. Assuming the situation of a person who has graduated and has been employed for the past 3 years, or, if you have been employed for a number of years assume a person in your general situation, which do you feel would be the best

The United Manufacturing Company has a marginal tax rate of 21 %. The last dividend paid by United was $3.70. The expected long-run growth rate is 3 percent. If investors require 8 percent rate of return. What is the current price of the stock (P0)?

A company has just paid a dividend of 3.7$. Its discount rate is 8.8%, and the expected perpetual growth rate is 3.1%. What would you expect to be the stock's price IN ONE YEAR?

If a firm issues an IPO (initial public offering) of 100 shares with the par value of $1.00. The market price is $24. A 00. Then find the amount common stock at par and additional paid in capital (APIC) respectively?

An initial investment of $400,000 is expected to produce an end-of-year cash flow of $480,000. What is Not yet the NPV of the project at a discount rate of 20%?

A long one-year forward contract on a productive asset was entered at a forward price of 1,000. Now, seven months later, the underlying asset is selling for 1,050. The PV of the cost to store, insure, and maintain the asset for the next 5 months is 4.00, and the asset will generate income over the next 5 months with a PV of 28.00. Assume annual

Accounting software that is designed for home use is often referred to as personal accounting software. This type of software is used mostly in managing household budgets and expenses. Some personal accounting software makes it possible to download bank account information directly from the Internet for use with the software. Low-end accounting

Belinda Best is interested in valuing and potentially buying shares in Big Sky Ltd, which is growing at a constant rate of 8 percent per annum. Last year, the company paid a dividend of 1.15. The required rate of return is 15.25 percent per annum. i. ii. What is the current price of Big Skys shares (1 mark) What would be the price of Big Skys

Three corporations Aashman Shumaila Fahim are identical and each has total assets of 1000 million Ashman is 1009% loan finance Shumaila has 09% interest bring debts and Fahim is equity is equal to value of assets. Tax rate is 50% on earning if the economics environment is goods all three firm operating income 1000 under average and poor economics

Your insurance company offered you an annuity that pays you $100 at the end of each year. The life of the annuity is 10 years. Assume that market interest rate you can earn on similar risky investments is 8%. a. What should be the present value of this annuity? b. If you are given the first payment immediately starting today, what should be the

Total Fresh Products manufactures and distributes snack foods. Total Fresh Products is being audited for the first time by Rachel Fancy, a partner in a local CPA firm. Early in the audit, Rachel uncovered that the CEO had acquired a home media system, a Mercedes Benz, and an exercise pool for his personal use. These items were delivered to the

The auditing profession is supported by the few key institutions in Malaysia such as Central Bank of Malaysia, Securities Commission, Companies Commission of Malaysia and others. i. Explain the power that an auditor has in terms of accessing the audit clients documents and records, under the Companies Act 2016. (2 marks) ii. Describe any two (2)

John Boy's expected pre-tax bonus is $88,000. He earns a base salary of $98,000 and files as a single taxpayer with no itemized deductions. What is John's expected ATCF from the bonus?

Hannah operates a computer graphics business as a sole proprietor which provides her eith cpp pensionable earnings of 32000. The cpp employee contribition rate is 4.95% and the YMPE is 53600. How much should hannah set aside for her contribution to the canada pension plan?

The board of directors of Fruit Inc met with its advisers on 8th May to discuss the acquisition of Nomad Co, to which the shareholders of Nomad have agreed. The takeover would be financed partly by retained earnings and partly by $100 million of new debt, which the advisers confirmed to be available. It was estimated that the acquisition would add

Consider the Ben & Jerry's Dollar Sales and Market Share graph. A marketing manager for Ben & Jerry's notices that dollar market share for 2018 was 18.4 percent and for 2019 it was 20.0 percent. What simple formula was used to calculate the dollar market share percentages for each of these two years?

Consider Devi a newly employed worker in a chocolate factory who has a performance meeting with the Floor Manager. They agree on a performance contract that sets Devi's weekly output to a minimum of 50,000 cherry-covered chocolates. Will this performance agreement between Devi and the Floor Manager give rise to agency theory? Why or why not?

Now determine your monthly gas cost for your trip to work. To do this assume there are 4 weeks in a month, and be sure to use positive or negative integers as needed? 1. Research jobs using your degree and identify a job you would be interested. Use a website like Glassdoor.com to determine the salary for the job you are interested in. Then Find

The following accounts and their balances appear in an unadjusted trial balance of CASHEW Company as of December 31, 2021 Cash and cash equivalents Trade and other receivables Subscription receivables Inventory Trade and other payables Income tax payable P 400,000 2,000,000 375,000 500,000 670,000 196,500 Additional information Trade and other

Output per hour 200 pieces 280 pieces A set of tools costs P560 and can be ground twenty times. Each regrinding costs P54.00 and the time needed to regrind and change tools is 1 hour. The. machine operator is paid P35.00 per hour including the time the tool is changed. The tool grinder who also sets the tools to the machine is paid P40.00 per

As the chief investment officer of a large pension fund, you must make many investing decisions. your assignments has prepared the following ratios for MBI Corporation, a large multinational manufacturer. Ratios Current Ratio Quick Ratio Receivable Turnover Inventory Turnover Debt Ratio Return on Assets Return on Equity Price Earnings Ratio Times

S&H Aquarium's asked us to explain to the board that, realistically, you and your team will need much more time to research, discuss, plan, and implement the company's control system, you agree to make a report that highlights some of the key principles and procedures involved in this undertaking. 1) Explain how and why you will use multiple

XYZ Company issued 10,000 options to its CEO on January 1, 2006, at the prevailing market price of $5 per share. The options were expected to vest over a 2-year period. The Black-Scholes value of the option was valued at $2 per share. On December 31, 2007, the CEO exercised all options. Market price on that day was $9 per share. Assume a 35% tax

Joe, the managing director of Valerina Ltd. had signed an agreement following his resignation on 15 May 2021. The agreement prevents Joe from working in competition with Valerina Ltd for a period of three years. Valerina Ltd paid Joe $250,000 in respect of the agreement. Joe is required to compensate Valerina Ltd $500,000 should he breach the

Paul, who is single and age 58, is a participant in a qualified plan and expects to receive annuity payments of $3,000 per month. He has an adjusted basis in the qualified plan in the amount of $124,000. How much of each annuity distribution to Pat must be included as ordinary income when he files his federal income tax return?

Ferraro Corporation provided following financial information. Total Revenues for the year ended March 31, 2020, was $950,345. general and administrative expenses of $232,565 depreciation expenses $105,075, costs of goods sold $345,180, interest expenses $55000. At the end of the year, current assets were $121,573 current liabilities were $107,509.

Assume that the company has the following transaction and its 1st month of operations Feb 1. 2,500 @ $4. 2,500 units Feb 10. 6,800 @ $4.40. 9,300 units Feb 21. 4,400 sold. 4,900 units Feb 28. 2,400 @ $4.75. 7,300 Units Complete cost of goods sold and ending inventory at February 28, assuming the company uses a perpetual inventory system, and the

You have decided to buy the home of your dreams and its time to get a loan. The loan is for 412,000 and you are getting rate of 3.6 per year compounded monthly. You have decided on a 15 year mortgage and will make monthly payments (end of the month). To try and reduce the cost of the home, you plan to pay extra each month for 4 years by working

Rainbow Logistics purchased land with the intention of building an office. Rainbow also engaged other contractors for fencing, paving, lighting, landscaping, and to remove a dilapidated building to make room for new office building. The following information relates to these transactions: Purchased land for $ 350,000. Paid $ 4,000 for seller's

Tomas Inc. sells product A and uses a periodic inventory system. Simplified information about product A for the year 2014 is given in the following table. The companys fiscal year ends on Dec 31, 2014. Transactions (a) Inventory, Dec 31, 2013 For the year 2014 (b) Purchase, March 21 (c) Sale, June 20 (29 each) (d) Purchase, Aug 19 (e) Sale, Nov 20

The S corporation reported the following tax information for 2021: Sales revenue 505,000 Cost of goods sold 300,000 Long-term capital gain 1,000 Dividend income 5,500 Salary to owners 120,000 Employee wages 50,000 Depreciation expenses 14,500 Miscellaneous expenses 10,000 At the end of the year, Blue Corporation made a cash distribution of $85,000

Maddie owns 100% of the stock in Purple Corporation (c corporation) and is actively involved in the business. Purple Corporation had accumulated earnings and profits of $51,000 on Jan. 1, 2020. Maddies basis in the stock on January 1st was $20,000. On Jan. 1, 2020, S corporation status was elected for Purple Corporation. During the year, Maddie

XYZ Ltd, which is using VND to record its transactions, obtained a long-term loan of US$100,000 at the beginning of 2009 when the exchange rate was VND/US$ = 18,000. The loan is to be repaid in full in 2014. As at 31 Dec 2009 and 31 Dec 2010, the exchange rate was 19,000 and 20,000 respectively. Determine journal entries.

Jaman Ltd, a manufacturer and supplier of aluminum utensils for households, has recently established a new facility in Kumasi. To help in this new operation, Jaman Ltd have secured a number of grants from the Government of Ghana and are unsure how the grants are to be accounted for in the financial statement. The company has a year-end of 30 April

Forsythe (Pty) Limited trades in the retail clothing sector and is listed on the general retail sector of the Johannesburg Securities Exchange (JSE). The company focuses on young buyers. Their unaudited results for 31 December 2022 are shown below Statement of comprehensive income for the year ended 31 December 2022 Turnover Cost of sales Opening

Kim took out a 15000 loan to start a new business. She can get the loan as an unsecured line of credit at an annual rate of 8.05 compounded daily. If she can afford to pay back 500 per month, how long will it take her to pay back the loan Fill in all the appropriate inputs in the TVM Finance solver. N 1 PV PMT FV PY CY Compare the total cost

ABC plcs accountants have prepared the following IFRS income statement summary for the year ended 31 December 20X1: (Amounts in ) Revenue 20,000 Expenses (excluding tax) (18,000) Profit before tax 2,000 The following information is available about ABCs profit before tax: Revenue includes a government grant of 1,500, which is not taxable. Expenses

On August 1, 2010, Marie and Paz formed a partnership. Marie contributed inventory of P500,000 with a fair value of P300,000 while Paz contributed cash of P250,000 and a land valued that cost her P900,000 with a carrying amount of P1,000,000 and a fair value of P1,250,000. The partnership did not assume the mortgage attached to the property worth

Nora Ferbers trial balance at 30 June 20X3 was as follows: The following information is relevant: 1. Rent expense for the year ended 30 June 20X3 was 60,000. 2. Rates expense for the year ended 30 June 20X3 was 24,000. 3. The depreciation charge for the year is to be 20 per cent of the reducing balance. 4. Bad debts of 1,500 are to be written off

Motor vehicles, at cost Debtors Stock Drawings Cost of goods sold Wages Rates Sundry expenses Rent Capital account 1 July 20X2 Provision against doubtful debts Motor vehicle, accumulated depreciation, 1 July 20X2 Creditors Bank overdraft Sales 90,000 80,500 120,000 107,000 490,000 47,500 30,000 10,000 45,000 1,020,000 97,500 5,000 15,000 70,000

Jessy is the executive director and qualified accountant of a large public listed company. Jessy was recently in charge of awarding large outsourcing contracts for her company, without inviting an open tender. When her family fell into heavy debt, she looked for a way to make some additional income. Her company was seeking to place a contract for

Assume you have observed the following information for a commodity: Spot price for commodity $150 Forward price for expiring in 1 year $162 Interest rate for 1 year 5% p.a. semi-annual compounding Storage cost $1.5 p.a. payable semi-annually in arrears Part I. Explain why it is important to differentiate investment assets and consumption assets in

Harry has taken goods from his business for personal use. The goods cost 850 and have a selling price of 1,100. He has made no entry in his business accounts in respect of the goods except to record their original purchase by the business. Harrys trading profits prior to any adjustment required for the goods taken for own use were 247,500. What is

Tech plc has received legal advice that the most likely outcome of the court case from the employee is that they will lose the case and have to pay $12m. The legal team think there is an 80% chance of this. They believe there is a 10% chance of having to pay $15m, and a 10% chance of paying nothing. What is the amount of provision?

During the year to 31 March 2022, a company spent 80,000 on research and 120,000 on development. The development costs meet the criteria for recognition as an intangible asset and are to be amortised over 10 years on the straight line basis. Their residual value is estimated to be nil. A full year's amortisation charge is made in the year of the

Soot Investments Inc., purchased $2,500 in face value of Inconstant Co. 8% bonds for $2348 plus $50 in accrued interest to yield 11.5%. Soot frequently trades debt as part of its business operations. Record the journal entries for Soots purchase of this debt.

Determine the amounts of the following accounts. Show your workings for each item. a)Bad debts expenses for the year ending 31 December 2018 b)Allowance for doubtful debts at the end of year 2018 c)Bad expenses for the year ending 31 December 2019 d)Allowance for doubtful debts at the end of year 2019 B.Calculate the receivable turnover ratio for

The following data is extracted from the financial records of AU Tiles. The data is in relation to the financial year ending 31 December 2018 and 31 December 2019. 31 December 2018 Cash at bank Inventories Accounts receivable Bills receivable Bad debts written off during the year Sales revenue for the year Discount allowed 17,600 1,046,400

A company has developed the following cash flow forecast for their new project. Rs. in million: Year 0 Years 1 - 10 Investment (400) Sales 440 Variable costs (75% of sales) 330 Fixed costs 20 Depreciation(Straight line method) 40 Pre-tax profit 50 Taxes( at 20 %) 10 Profit after taxes 40 Cash flow from operations 80 Net cash flow

Joan Myers is a designer for a clothing company named "Whitesnow Ltd" incorporated in Wakefield. The company is very successful due to the fashion clinic project set up by Joan in 2019. Joan is preparing all the information to her tax return for the current tax year. She knows you are a very successful accountant and asks for your professional

A railroad crossing with a passive control is formed by a 2lane highway with a design speed of 40 mph and a railroad track with trains traveling at 90 mph. Determine the minimum distance a building should be placed from the centerline of the tracks (W2) to ensure safe crossing of an approaching vehicle. The building is located 200 ft from the

According to the environment law, an entity expects to spend 1,050m in one year on 31 December 20X1 and 525m in two years on 31 December 20X2 to address the consequences of an oil spill incident. The discount rate is 5%. What is the accounting treatment of the current provision (i.e provision within current liabilities) at the moment?

If the current interest rate on bonds of a certain type is 10%, compounded semiannually. What should the market price of a $1000 face value, 14% bond be? The bond will mature (pays face value) 6 years from today and the next interest payment to the bondholder will be due in six months?

Mr. Yap bought a bond having a face value of Php 1,000.00 for Php 970.00. The bond rate was 14% nominal and dividends were made to him semiannually for a total of 7 years. At the end of the seventh year, he sold the bond to a friend at a price that resulted a yield of 16% nominal on his investment. What was the selling price?

Med plc is developing a new line of pharmaceuticals and had spent $2m up to 1 January 20X5. On 1 January 20X5 the board gave approval to fully fund the rest of the project following promising results and spent a further $1m to 1 April 20X5. On 1 April 20X5 problems were discovered in the trials and approval was not given from the medical regulator

L Ltd can subcontract out one of its components at $18 each. The business can produce the component internally for a variable cost of $14 per unit. In addition fixed costs have been allocated to components at $5 per component. L Ltd has spare capacity. Should it make the component internally or contract it out?

Your Company is evaluating the acquisition of a new piece of equipment that has an installed cost of $ 10,000,000. The equipment will add $2,000,000 to earnings before interest and taxes each year for the next 12 years. Depreciation for tax purposes will be on a straight line basis for 7 years. The Company has a desired rate of return of 12%. The

When announcing second-quarter results on July 29, 2003, Jones initiated a quarterly dividend stating that ''the Board of Directors has declared our first-ever quarterly cash dividend of $0.08 per share to all common stockholders of record as of August 15, 2003 for payment on August 29, 2003.'' How might the switch from stock options to restricted

Collins Construction Co. currently earns annual revenues of $350,000 and incurs total operating expenses (excluding depreciation and interest expense) of 45.00% of revenues. Its earnings are taxed at a rate of 40%. Today, its budgeting committee is evaluating the purchase of a new forklift. The forklift is expected to cost $60,000, plus $4,000 in

Calculate Earnings Per Share based on these values: Sales 550,000 Cost of Goods Sold 425,000 Operating Income 26,000 Total Revenues 575,000 Net Income 14,000 Preferred Dividends 500 Shares Outstanding 3,000 Share Price 140.00

Calculate the Gross Profit Margin based on these values: Sales 550,000 Cost of Goods Sold 425,000 Operating Income 26,000 Total Revenues 575,000 Net Income 14,000

Calculate the Current Ratio based on these values: Current Assets 96,000 Total Assets 380,000 Current Liabilities 72,000 Inventories 55,000 Total Debt 175,000 Long-Term Debt 35,000 Total Equity 90,000

During a taxation period, Craibecor Ltd. purchased food products for $70,000 and paid for accounting services totalling $40,000. Grocery sales (Craibecor is a grocer) during this period totaled $140,000. All figures are taxes included. Ignore all other transactions during the period and assume the HST rate in effect is 13%. Calculate the net HST

You are in the business of leasing printers. You just bought a printer for $100. Id like to lease this printer from you over a 1-year lease. The printer will be placed in my office. At the end of the one year, if you sell the printer, the expected residual value then is $20. The effective interest rate youd like to earn from me is 10%. How much

What is the potential energy (in Btulb) that could be recovered from the incineration of this waste of MSW Moisture content Dry weight f(fraction by weight ( by weight) Component Food waste 18 Yard waste 13 Mixed paper 30 Wood Plastics Glass Ferrous 10 14 6 70 60 6 20 2 2 HV ( by weight) dry weight) (Btub) 5.4 5.2 28.2 8.0 13.7 5.9 8.7 0.069

Using the expectation model of capital asset pricing model, describe and justify what the value of the beta of an Australian government bond should be. b) Steel Robotics is considering a new investment in Brazil. Initial estimates of the investment returns have revealed the following Probability 10.00 40.00 30.00 20.00 Return 12.00 20.00 35.00

For June 30th of 2017, Company X reported raw materials balance of TL20,000, WIP balance of TL25,000 and finished goods balance of TL40,000 in its balance sheet. During July Direct labor of TL250,000 and raw materials of TL350,900 was used. TL360,000 worth of raw materials was purchased. Manufacturing overhead used (exclusive of indirect