An investor has two bonds in his portfolio that have a face value of $1,000 and pay a 7% annual coupon. Bond L matures in 17 years, while Bond S matures in 1 year.

Assume that only one more interest payment is to be made on Bond S at its maturity and that 17 more payments are to be made on Bond L.

1. What will the value of the Bond L be if the going interest rate is 5%? Round your answer to the nearest cent.
   $  
   
   What will the value of the Bond S be if the going interest rate is 5%? Round your answer to the nearest cent.
   $  
   
   What will the value of the Bond L be if the going interest rate is 10%? Round your answer to the nearest cent.
   $  
   
   What will the value of the Bond S be if the going interest rate is 10%? Round your answer to the nearest cent.
   $  
   
   What will the value of the Bond L be if the going interest rate is 11%? Round your answer to the nearest cent.
   $  
   
   What will the value of the Bond S be if the going interest rate is 11%? Round your answer to the nearest cent.

Grouper Corporation is preparing the comparative financial statements for the annual report to its shareholders for fiscal years ended May 31, 2017, and May 31, 2018. The income from operations for the fiscal year ended May 31, 2017, was $1,772,000 and income from continuing operations for the fiscal year ended May 31, 2018, was $2,440,000. In both years, the company incurred a 9% interest expense on $2,385,000 of debt, an obligation that requires interest-only payments for 5 years. The company experienced a loss from discontinued operations of $585,000 on February 2018. The company uses a 40% effective tax rate for income taxes.

The capital structure of Grouper Corporation on June 1, 2016, consisted of 977,000 shares of common stock outstanding and 20,100 shares of $50 par value, 6%, cumulative preferred stock. There were no preferred dividends in arrears, and the company had not issued any convertible securities, options, or warrants.

On October 1, 2016, Grouper sold an additional 475,000 shares of the common stock at $20 per share. Grouper distributed a 20% stock dividend on the common shares outstanding on January 1, 2017. On December 1, 2017, Grouper was able to sell an additional 781,000 shares of the common stock at $22 per share. These were the only common stock transactions that occurred during the two fiscal years.

Determine the weighted-average number of shares that Grouper Corporation would use in calculating earnings per share for the fiscal year ended:

Weighted-average number of shares

(1) May 31, 2017 Entry field with incorrect answer now contains modified data

(2) May 31, 2018 Entry field with incorrect answer

Prepare, in good form, a comparative income statement, beginning with income from operations, for Grouper Corporation for the fiscal years ended May 31, 2017, and May 31, 2018. This statement will be included in Grouper’s annual report and should display the appropriate earnings per share presentations. (Round earnings per share to 2 decimal places, e.g. $1.55.)

Michael McNamara and Gregory Lau met while in university and always knew they wanted to be in business together. Shortly after university Michael went to work for a large mulinational firm while Gregory pursued an MBA.

After several years of experience the firm Lau McNamara was established on July 1, 1984 and the firm experienced slow but steady growth over time. It is now 2020 and Lau McNamara has grown to total staff of 55 employees and revenues exceeding $13,000,000 a year. They have largely grown in the area of consulting, tax and accounting.

About 5 years ago they hired a rising star Rose Femia. She has exceeded all expectations and has been pushing to expand the services provided by the firm to include assurance services. Mr. McNamara with his extensive contacts has been asked to bid on a contract to perform audits for 3 municipalities within the province of Ontario.

He has assigned this task to Ms. Femia.

At the moment staff are fully scheduled, if Lau McNamara were to be awarded the contract, it must hire one new staff member at an annual remuneration of $60,000 to handle the additional workload.

Ms. Femia is convinced that obtaining the contract will lead to additional new clients from the respective municipalities. Expected new work (excluding the three municipalities) is 830 hours at an average billing rate of $90 per hour. Other information follows about the firm’s current annual revenues and costs:

Should the firm win the contract, the audits of the three municipalities will require 870 hours of expected work.

As a side note, Michael McNamara is adamant that fixed costs should be considered for this short term bid. Gregory Lau argues that they should be disregarded for short-term decision making.

Required:

1. If the Rose Femia’s expectations are correct, what is the lowest bid the firm can submit and still expect to increase annual net income? What would be the hourly billing rate for the county audit jobs just to break even on all the new business? (Round "Average billing rate" answer to 2 decimal places.)

2. If the contract is obtained at a price of $44,800, what is the minimum number of hours of new business in addition to the municipality work that must be obtained for the firm to break even on total new business? What is the margin of safety (MOS) regarding the municipality job audit proposal?

First part of question. Second will come through now.

Diversified Products, Inc., has recently acquired a small publishing company that offers three books for sale—a cookbook, a travel guide, and a handy speller. Each book sells for $10. The publishing company’s most recent monthly income statement is shown below.

Please see the url, for the second part of the question.

https://www.chegg.com/homework-help/questions-and-answers/second-part-question-following-additional-information-available-printing-costs-sales-commi-q38920042?trackid=jHh8sqog

I am not sure, but did you get the information for the second part of the question?

Selected account balances from the adjusted trial balance for Olinda Corporation as of its calendar year-end December 31 follow.

2a. What is the amount of income from continuing operations before income taxes?
2b. What is the amount of the income tax expense?
2c. What is the amount of income from continuing operations?

Assume that the company’s income tax rate is 30% for all items.

Tanek Corp.’s sales slumped badly in 2017. For the first time in its history, it operated at a loss. The company’s income statement showed the following results from selling 575,500 units of product: sales $2,877,500, total costs and expenses $2,992,600, and net loss $115,100. Costs and expenses consisted of the amounts shown below.

Management is considering the following independent alternatives for 2018.

(a) Compute the break-even point in dollars for 2017. (Round final answer to 0 decimal places, e.g. 1,225.)

(b) Compute the contribution margin under each of the alternative courses of action. (Round final answer to 0 decimal places, e.g. 1,225.)

Compute the break-even point in dollars under each of the alternative courses of action. (Round selling price per unit to 2 decimal places, e.g. 5.25 and other calculations to 0 decimal places, e.g. 20% and also final answer to 0 decimal places, e.g. 1,225.)

Which course of action do you recommend?

Your company has the sales for year 1 below. You want to select from one of three models for forecasting: a three-month moving average, a weighted moving average (you believe that the weights should be 0.2, 0.3, and 0.5), and an exponential smoothing average in which you use an alpha of 0.2 and an assumed forecast for January of year one of $35,000. Determine sales forecast for January year 2 and calculate MAD.


Jan Yr 1 34284
Feb 34000
Mar 31017
Apr 33406
May 34518
Jun 35469
Jul 35360
Aug 34894
Sep 34547
Oct 31015
Nov 31167
Dec 32925

A) Three-month moving average:
Sales forecast: $  
MAD:  

B) Weighted moving average:
Sales forecast: $  
MAD:  

C) Exponential moving average:
Sales forecast: $  
MAD:  

Which forecasting method should you use for your company? (enter A, B, C):

Exchange Corp. is a company that acts as a facilitator in tax-favored real estate swaps. Such swaps, know as 1031 exchanges, permit participants to avoid some or all of the capital gains taxes that would otherwise be due. The bookkeeper for the company has been asked to prepare a report for the company to help its owner/manager analyze performance. The first such report appears below:

Note that the revenues and costs in the above report are unit revenues and costs. For example, the average office expense is $257 per exchange completed on the planning budget; whereas, the average actual office expense is $135 per exchange completed.  

Legal and search fees is a variable cost; office expenses is a mixed cost; and equipment depreciation, rent, and insurance are fixed costs. In the planning budget, the fixed component of office expenses was $5,050.

All of the company’s revenues come from fees collected when an exchange is completed.

Required:  

1. Is the report prepared by the bookkeeper useful as a performance report?

2. Complete a performance report that would help the owner/manager assess the performance of the company in May. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Write a 350- to 700-word paper comparing the impacts of fraudulent financial statements, asset misappropriation and corruption on the organization.

Include the following:

• How does each type of fraud impact the organization?
• Consider the relative frequency.

Please help. I have been sick all week and having trouble finding the energy to get all my course work done. Also, I need it to include at least one reference.

in the fourth quarter of last year, Colditz Company embarked on a major effort to improve productivity. It redesigned products, reengineered manufacturing processes, and offered productivity improvement courses. The effort was completed in the last quarter of the current year. The controller’s office has gathered the following year-end data to assess the results of this effort:

Required

1. Prepare a summary contribution income statement for each of the 2 years, and calculate the change in operating income.

2. Compute the partial operational productivity ratios for each production factor in each year.

3. Compute the partial financial productivity ratios for each production factor in each year.

Your firm is the auditor of Pinkglow Ltd, a manufacturer. You have obtained a summary of the property, plant and equipment for the year ended 30 June 2018, which identifies cost and accumulated depreciation brought forward, additions and disposals in the year and depreciation charges. A review of the management letter from the previous year’s audit shows that there were some problems in relation to making a distinction between capitalisation and expenses; some items were capitalised when they should have been expensed and other capital items were included in repairs and maintenance in the income statement. Another risk identified from prior years relates to depreciation calculations; there is a range of depreciation rates within categories and there has been a concern that the rates applied to some assets have been too low. The depreciation policy disclosed in the financial report shows: •

buildings: 2–4% straight-line • plant and machinery: 5–10% straight-line • fixtures fittings and equipment: 5–20% straight line.

Required: Describe audit procedures to ensure: a) the accuracy of the summary of property plant and equipment b) all items of capital expenditure are included in additions for the year and that no expenses have been capitalised c) the depreciation rates are calculated appropriately. (this is auditing question but i could not find auditing in subject list so i choose finannce)

Sullivan's Island Company began operating a subsidiary in a foreign country on January 1, 2017, by investing capital in the amount of 55,000 pounds. The subsidiary immediately borrowed 136,000 pounds on a five-year note with 10 percent interest payable annually beginning on January 1, 2018. The subsidiary then purchased for 191,000 pounds a building that had a 10-year expected life and no salvage value and is to be depreciated using the straight-line method. Also on January 1, 2017, the subsidiary rented the building for three years to a group of local attorneys for 7,500 pounds per month. By year-end, rent payments totaling 75,000 pounds had been received, and 15,000 pounds was in accounts receivable. On October 1, 4,400 pounds was paid for a repair made to the building. The subsidiary transferred a cash dividend of 11,800 pounds back to Sullivan's Island Company on December 31, 2017. The functional currency for the subsidiary is the pound. Currency exchange rates for 1 pound follow:

Prepare a statement of cash flows in pounds for Sullivan's Island Company's foreign subsidiary and then translate these amounts into U.S. dollars

Income Statement

Predetermined Overhead Rate, Application of Overhead to Jobs, Job Cost, Unit Cost

On August 1, Cairle Company’s work-in-process inventory consisted of three jobs with the following costs:

During August, four more jobs were started. Information on costs added to the seven jobs during the month is as follows:

Before the end of August, Jobs 70, 72, 73, and 75 were completed. On August 31, Jobs 72 and 75 were sold.

Cairle’s selling and administrative expenses for August were $1,300. Assume that Cairle prices its jobs at cost plus 25 percent.

Required:

Prepare an income statement for Cairle Company for August.

Feedback

True/False–Circle the best

TF 1. Multiple overhead rates may be applied to give more accurate product costs if departments consume resources differently.

TF 2.In a job-order cost sheet only the totals by cost component are recorded.

TF 3. In a process costing system, there is a separate Work-in-Process account for each process.

TF 4.Service firms cannot use a process costing approach because services are never homogeneous or repetitive.

TF 5. There is no difference in the unit costs computed under the weighted average and FIFO methods of process costing if there are no beginning work-in-process inventories.

TF6. Under the weighted average method, the equivalent units in the production report relate only to work done during the current period.

TF 7. In a process costing system, the costs of one processing department become the transferred-in costs of the next processing department.

TF 8. Theoretically speaking, the weighted average method in a process costing method provides a more realistic calculation of the costs incurred in a given period.

TF 9.The operation costing method assigns direct labor costs using the procedures of the process costing method