Questions
On March 11, 20XX, the existing or current (spot) one-year, two-year, three-year, and four-year zero-coupon Treasury...

On March 11, 20XX, the existing or current (spot) one-year, two-year, three-year, and four-year zero-coupon Treasury security rates were as follows:

1R1 = 2.23%, 1R2 = 2.55%, 1R3 = 2.79%, 1R4 = 2.90%

Using the unbiased expectations theory, calculate the one-year forward rates on zero-coupon Treasury bonds for years two, three, and four as of March 11, 20XX. (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

In: Finance

Use the following cash flows to answer: Year 0 = ($1,550); Year 1 = $850; Year...

Use the following cash flows to answer:

Year 0 = ($1,550); Year 1 = $850; Year 2 = $900. The firms WACC = 8%.

What is the Profitability Index (PI)?

a)

0.0056
b)

1.01
c)

1.51
d)

1.13

In: Finance

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year...

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:

Year 1
July 1 Issued $32,300,000 of 20-year, 9% callable bonds dated July 1, Year 1, at a market (effective) rate of 11%, receiving cash of $27,116,993. Interest is payable semiannually on December 31 and June 30.
Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $129,575 is combined with the semiannual interest payment.
31 Closed the interest expense account.
Year 2
June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $129,575 is combined with the semiannual interest payment.
Dec. 31 Paid the semiannual interest on the bonds. The bond discount amortization of $129,575 is combined with the semiannual interest payment.
31 Closed the interest expense account.
Year 3
June 30

Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $4,664,707 after payment of interest and amortization of discount have been recorded. (Record the redemption only.)

CHART OF ACCOUNTS
Winklevoss Inc.
General Ledger
ASSETS
110 Cash
111 Petty Cash
121 Accounts Receivable
122 Allowance for Doubtful Accounts
126 Interest Receivable
127 Notes Receivable
131 Merchandise Inventory
141 Office Supplies
142 Store Supplies
151 Prepaid Insurance
191 Land
192 Store Equipment
193 Accumulated Depreciation-Store Equipment
194 Office Equipment
195 Accumulated Depreciation-Office Equipment
LIABILITIES
210 Accounts Payable
221 Salaries Payable
231 Sales Tax Payable
232 Interest Payable
241 Notes Payable
251 Bonds Payable
252 Discount on Bonds Payable
253 Premium on Bonds Payable
EQUITY
311 Common Stock
312 Paid-In Capital in Excess of Par-Common Stock
315 Treasury Stock
321 Preferred Stock
322 Paid-In Capital in Excess of Par-Preferred Stock
331 Paid-In Capital from Sale of Treasury Stock
340 Retained Earnings
351 Cash Dividends
352 Stock Dividends
390 Income Summary
REVENUE
410 Sales
610 Interest Revenue
611 Gain on Redemption of Bonds
EXPENSES
510 Cost of Merchandise Sold
515 Credit Card Expense
516 Cash Short and Over
521 Sales Salaries Expense
522 Office Salaries Expense
531 Advertising Expense
532 Delivery Expense
533 Repairs Expense
534 Selling Expenses
535 Rent Expense
536 Insurance Expense
537 Office Supplies Expense
538 Store Supplies Expense
541 Bad Debt Expense
561 Depreciation Expense-Store Equipment
562 Depreciation Expense-Office Equipment
590 Miscellaneous Expense
710 Interest Expense
711 Loss on Redemption of Bonds

In: Accounting

Statement of Profit or Loss for years 2016 to 2019 Year 2019 Year 2018 Year 2017...

Statement of Profit or Loss for years 2016 to 2019 Year 2019

Year 2018

Year 2017

Year 2016

$

$

$

$

Sales revenue

1,095,910

1,060,900

1,030,000

1,000,000

Less: Cost of goods sold

(895,358)

(866,755)

(842,540)

(820,000)

Gross profit

200,552

194,145

187,460

180,000

Other operating expenses

(162,877)

(161,827)

(160,900)

(160,000)

Income before tax

37,675

32,318

26,560

20,000

Less: Income tax expense

(3,768)

(3,232)

(2,656)

(2,000)

Net income

33,907

29,086

23,904

18,000

Required:

  1. Compute the index-number trend percentages for the accounts below in all years, using 2016 as the base period.
  1. Sales revenue;
  2. Gross profit;
  3. Other operating expenses; and
  4. Net income. .
  1. For items (i) and (iv) in Part (a) above, analyze the trend, the observed results, and the likely reason(s) behind respectively.

In: Accounting

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year...

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:

Year 1
July 1 Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, Year 1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30.
Oct. 1 Borrowed $200,000 by issuing a six-year, 6% installment note to Nicks Bank. The note requires annual payments of $40,673, with the first payment occurring on September 30, Year 2.
Dec. 31 Accrued $3,000 of interest on the installment note. The interest is payable on the date of the next installment note payment.
31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment.
Year 2
June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment.
Sept. 30 Paid the annual payment on the note, which consisted of interest of $12,000 and principal of $28,673.
Dec. 31 Accrued $2,570 of interest on the installment note. The interest is payable on the date of the next installment note payment.
31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment.
Year 3
June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $9,420,961 after payment of interest and amortization of discount have been recorded. Record the redemption only.
Sept. 30 Paid the second annual payment on the note, which consisted of interest of $10,280 and principal of $30,393.

Required:

1. Journalize the entries to record the foregoing transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.
2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2.
3.

Determine the carrying amount of the bonds as of December 31, Year 2.

1. Journalize the entries to record the foregoing transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.

Year 1

PAGE 10

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

5

6

7

8

9

10

Year 2

PAGE 10

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

5

6

7

8

9

10

11

12

Year 3

PAGE 10

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

5

6

7

8

2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2.

a. Year 1:
b. Year 2:

3. Determine the carrying amount of the bonds as of December 31, Year 2.

In: Accounting

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year: Year...

The following transactions were completed by Winklevoss Inc., whose fiscal year is the calendar year:

Year 1
July 1 Issued $74,000,000 of 20-year, 11% callable bonds dated July 1, Year 1, at a market (effective) rate of 13%, receiving cash of $63,532,267. Interest is payable semiannually on December 31 and June 30.
Oct. 1 Borrowed $200,000 by issuing a six-year, 6% installment note to Nicks Bank. The note requires annual payments of $40,673, with the first payment occurring on September 30, Year 2.
Dec. 31 Accrued $3,000 of interest on the installment note. The interest is payable on the date of the next installment note payment.
31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment.
Year 2
June 30 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment.
Sept. 30 Paid the annual payment on the note, which consisted of interest of $12,000 and principal of $28,673.
Dec. 31 Accrued $2,570 of interest on the installment note. The interest is payable on the date of the next installment note payment.
31 Paid the semiannual interest on the bonds. The bond discount amortization of $261,693 is combined with the semiannual interest payment.
Year 3
June 30 Recorded the redemption of the bonds, which were called at 98. The balance in the bond discount account is $9,420,961 after payment of interest and amortization of discount have been recorded. Record the redemption only.
Sept. 30 Paid the second annual payment on the note, which consisted of interest of $10,280 and principal of $30,393.

Required:

1. Journalize the entries to record the foregoing transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.
2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2.
3.

Determine the carrying amount of the bonds as of December 31, Year 2.

1. Journalize the entries to record the foregoing transactions. Round all amounts to the nearest dollar. Refer to the Chart of Accounts for exact wording of account titles.

Year 1

PAGE 10

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

5

6

7

8

9

10

Year 2

PAGE 10

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

5

6

7

8

9

10

11

12

Year 3

PAGE 10

JOURNAL

ACCOUNTING EQUATION

DATE DESCRIPTION POST. REF. DEBIT CREDIT ASSETS LIABILITIES EQUITY

1

2

3

4

5

6

7

8

2. Indicate the amount of the interest expense in (a) Year 1 and (b) Year 2.

a. Year 1:
b. Year 2:

3. Determine the carrying amount of the bonds as of December 31, Year 2.

In: Accounting

Table 1: Survival probability Year Probability of surviving from start of year to end of year...

Table 1: Survival probability Year Probability of surviving from start of year to end of year

Year 1 - 0.75

Year 2 . - 0.58

Year 3 - 0.37

Year 4 - 0.23

Year 5 - 0 e.

Jackson will use $50,000 from the total sale proceed of instruments as a single premium to purchase an annuity today. This annuity pays X at the end of each year while Jackson is alive. The estimated probability of Jackson surviving for the next 5 years is stated in table 1. The yield rate is assumed to be j1 = 3.2% p.a. Calculate X value. Round your answers to three decimal places. Draw a detailed contingent cash flow diagram for instrument D, from the perspective of Jackson

In: Finance

NJ is an 11-year-old boy with a 5-year history of ADHD and a 7-year history of...

NJ is an 11-year-old boy with a 5-year history of ADHD and a 7-year history of asthma. He also experiences perennial allergic rhinitis. NJ’s mother is bringing him into your office due to an exacerbation of this allergy. The symptoms he presents with include increased cough and runny nose and sneezing. He has no other medical history.

The following is his current list of medication:

            Concerta: 36 mg every morning

            Albuterol inhaler: 2 puffs as needed (uses one or two times a day)

            Singulair: 5 mg PO daily

            Zyrtec: 5mg PO daily

  1. List specific goals of treatment for NJ.
  2. What drug would be appropriate for NJ? Why?
  3. What are the parameters for monitoring success of the therapy?
  4. Discuss specific patient education based on the prescribed therapy.
  5. List one or two adverse reactions for the selected agent that would cause you to change therapy.
  6. What would be the choice for the second-line therapy for treating NJ?
  7. What over-the-counter or alternative medications would be appropriate for NJ?
  8. What dietary and lifestyle changes should be recommended for NJ?
  9. Write your prescription for this patient.
  10. Write your prescription for this patient.

In: Nursing

Suppose that your salary is $35,000 in year one, will increase 6% per year through year...

Suppose that your salary is $35,000 in year one, will increase 6% per year through year 4, and is expressed in actual dollars as follows:

EOY Salary$
1 35,000
2 37,100
3 39,326
4 41,685

If the general price inflation is expected to average 8% per year for the first two years and 7% per year for the last two years.

A. What is the real dollar equvalent of these actual dollar salary amounts? Assume that base period is year one.

B. If your personal MARR is 10% per year, calculate the real interest rate?

In: Finance

(In millions), my 1st year OCF = .5107, 2nd year = .6740, 3rd year = .811,...

(In millions), my 1st year OCF = .5107, 2nd year = .6740, 3rd year = .811, 4th year = .795, and 5th year = .632. In the 4th year I will donate $400,000 (.4) to charity and in the 5th year I will donate $200,000 (.2).    My initial investment was $500,000 (.5). I will issue 1 personal bond with coupon rate of 5.74% and five years until maturity. Bond price on issue date is $978.50. The personal bond has a maturity value of $100,000. I also will issue 1 share with a dividend in one year of $5.29. Expected growth is 4.9% per year. They are willing to pay $68.36 per share of equity. Using the financial calculator, calculate NPV. Compute and Draw the NPV-IRR profile.

In: Accounting