Questions
audit procedure that the audit may use in providing assurance engagement

audit procedure that the audit may use in providing assurance engagement

In: Finance

A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment...

A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used 7 workers, who together produced an average of 90 carts per hour. Workers receive $18 per hour, and machine cost was $40 per hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $11 per hour while output increased by 5 carts per hour.

a.
Compute labor productivity under each system. Use carts per worker per hour as the measure of labor productivity. (Round your answers to 3 decimal places.)

Before carts per worker per hour
After carts per worker per hour


b. Compute the multifactor productivity under each system. Use carts per dollar cost (labor plus equipment) as the measure. (Round your answers to 3 decimal places.)

Before carts/dollar cost
After carts/dollar cost


c. Comment on the changes in productivity according to the two measures. Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places.

Labor productivity   (Click to select)   decreased   increased  by  %
Multifactor productivity   (Click to select)   increased   decreased  by  %

In: Finance

Question 2. Upon starting your new job after college, you've been confronted with selecting the investments...

Question 2. Upon starting your new job after college, you've been confronted with selecting the investments for your 401(k) retirement plan. You have four choices for investing your money:

  • a money market fund that has historically returned about 0.50% per year.
  • A long-term bond fund that has earned an average annual return of 4.0%
  • A conservative common-stock fund that has earned 6.0% per year.
  • An aggressive common-stock fund that has earned 9.0% per year.

a. If you were to contribute $5,500 per year for the next 35 years, how much would you accumulate in each of the above funds?

b. Now, change your worksheet so that it allows for less than annual investments (monthly, weekly, etc.). The annual investment will be the same, but it will be made in smaller, more frequent, amounts.

c. Set up a scenario analysis that shows your accumulated value in each fund if you were to invest quarterly, monthly, biweekly, and weekly. Create a scenario summary table of your results.

d. What relationship do you notice between the frequency of investment and future value? Create a column chart of the results that more clearly shows the outcome from more frequently investing.

I need to know the excel formula step by step to get this done. I have A but need B C and D

In: Finance

Chapter 1, 2.17 Smith wishes to buy a TV set and is offered a time payment...

Chapter 1, 2.17

Smith wishes to buy a TV set and is offered a time payment plan whereby he makes 24 monthly payments of 30 each starting now. Smith wants the payments to start in 2 months rather than now. If interest is at a one-month interest rate of 1%, what is the present value now of the saving to Smith if the seller agrees to Smith's terms?

In: Finance

Consider the following information: State of Economy Probability of State of Economy Rate of Return if...

Consider the following information:

State of
Economy
Probability of
State of Economy
Rate of Return
if State Occurs
Stock A Stock B
Recession .04 .097 .102
Normal .72 .114 .133
Boom .24 .156 .148


The market risk premium is 7.4 percent, and the risk-free rate is 3.1 percent. The beta of Stock A is ________ and the beta of Stock B is ________.

a) 1.25; 1.41

b) 1.47; 1.76

c) 1.21; 1.76

d) 1.25; 1.89

e) 1.47; 1.41

In: Finance

An independent orthopedic clinic is considering expanding by opening a small surgery center instead of renting...

An independent orthopedic clinic is considering expanding by opening a small surgery center instead of renting space in a local hospital. They ask their financial department (you) for methods of calculating whether or not they should consider the project. They are unfamiliar with the methods and just want an understanding of how they work.

Choose the capital investment decision method (Payback, Net Present Value, or Internal Rate of Return) that you think would work the best for this situation. How would you describe the method so that the doctors can understand the way it works? What outcome would they need to achieve in order to go ahead with the project?

It was then decided that a new imaging machine needed to be purchased as part of the project. What financial and other factors do you think they need to consider when making a decision?

Review the posts made by your classmates and reply to at least one that recommended a different method of calculating returns or choosing to purchase the imaging machine. What are the strengths of the method they chose? What are its weaknesses? After reading their rationale, would you change your approach?

In: Finance

One of the basic financial principles is that the value of any asset (whether it be...

One of the basic financial principles is that the value of any asset (whether it be a stock, a bond, or a firm as a whole) is the present value of that asset’s future cash flows. Finding present values requires determining a discount rate. Assume you want to buy a business, and you want to find the present value of its future cash flows. Name at least one variable you should consider in determining the correct discount rate to use and explain its role in discount rate determination.

In: Finance

6. Moody’s Investors Service and Standard and Poor’s adjusted the way they graded securities after Goldman...

6. Moody’s Investors Service and Standard and Poor’s adjusted the way they graded securities after Goldman Sachs Group Inc., UBS AG and at least six more banks pressured them, according to a U.S. Senate report. “The world’s two largest bond-ranking companies made exceptions to rules when bankers asked for better safety ratings on complex mortgage-backed securities, the Senate Permanent Subcommittee on Investigations said yesterday. When Moody’s and S&P changed their assessments of hundreds of those bonds in July 2007, it helped trigger the financial crisis, the panel said. The ratings agencies weakened their standards as each competed to provide the most favourable rating to win business and greater market share,” according to the report. This occurred in 2007 and was in part responsible for the Global Financial Crisis – discuss in class.

In: Finance

4. What is a stranded asset? Provide an example of a stranded asset and be prepared...

4. What is a stranded asset? Provide an example of a stranded asset and be prepared to explain why you believe it is a stranded asset – your example may be an asset that is not related to sustainability.

5. What are the whistleblowers’ obligations to his or her employer? Under what circumstances might it be the right thing to do to provide information on your workplace to an external regulator?

In: Finance

Owners and managers have cited three reasons for the creation of large financial firms or universal...

Owners and managers have cited three reasons for the creation of large financial firms or universal banks. What are these reasons?

In: Finance

Define the Average Cost of Capital (Weighted Average Cost of Capital) and explain why a company...

Define the Average Cost of Capital (Weighted Average Cost of Capital) and explain why a company should earn at least its weighted average cost of capital in new investments.

What are the financial implications if it does not?

In: Finance

A young couple borrow $5,000 on the 1st September, agreeing to repay it as well as...

A young couple borrow $5,000 on the 1st September, agreeing to repay it as well as the interest charged over 36 months with 36 equal repayments, at the interest rate of 3%. No interest is charged for their 3 interest-free months, but their first repayment is required on the 1st of October.

a) Show all mathematical workings and formulas to calculate the repayment required to repay the loan and interest.

b) Calculate the individual monthly repayments required for all 36 months, displaying them in a table with headings: "Month", "Amount Owing", "Interest" and "Repayment". Show that this calculation method yields the same result as part a).

In: Finance

why would traders enter a long box strategy? (options)

why would traders enter a long box strategy? (options)

In: Finance

What are the advantages and disadvantages of the residual policy? (Hint: Don’t neglect signaling and clientele...

What are the advantages and disadvantages of the residual policy? (Hint: Don’t neglect signaling and clientele effects.)

Discuss the advantages and disadvantages of a firm repurchasing its own shares.

In: Finance

for tax purposes, interest on corporate dept is:

for tax purposes, interest on corporate dept is:

In: Finance