According to a survey by TD Ameritrade, one out of four investors has exchange-traded funds in their portfolios (USA Today, January 11, 2007). Consider a sample of 40 investors.

Compute the probability of exactly 7 investors having exchange-traded funds in their portfolio.

Compute the probability that at least 5 of the investors have exchange-traded funds in their portfolio.

Compute the probability that at most 4 of the investors have exchange-traded funds in their portfolio.

Find the mean and standard deviation.

If you found that exactly 10 of the investors have exchange-traded funds in the

portfolio would you doubt the accuracy of the survey and why?

Qing Company traded equipment with a cost of $2,200,000 and a book value of $1,200,000 and gave $1,000,000 cash for a piece of equipment from BGI Company. The old machine had a fair value of $2,000,000. The two pieces of equipment have similar functions and are not expected to change the two firms’ future cash flows. Which of the following journal entries would Qing make to record the exchange?

1. Helen and Rob are directors of Archers PLC, a company whose shares are traded on the stock market.

1. Rob thinks that Helen was not properly appointed as a director, and wants to know what action he can take to challenge her appointment.
2. Helen has identified payments made by an agent of the company to the personal bank account of a director of a business they supply.  When asked about the payments the agent gave Helen a large sum of cash that he said was a refund on the payments. Helen wants to know if there could be any legal consequences for the company over the payments, and whether she should pay the cash into the company bank account.
3. Rob hears that because of bad weather in South America the product the company supplies is going to be in high demand, and so the company profits should rise. He buys more shares in Archers PLC expecting the share price to rise, and advises a friend to do the same. Has Rob or the friend done anything wrong?
4. Helen has negotiated a contract for the company that she thinks will be very good for the business, but the shareholders have rejected it. Helen wants to know if she can take the contract herself.
5. Because of difficulty in supply of chemicals  a scientist working for the company has changed the formula for one of the company’s products without telling anyone. This means the product does not match the description given on the label, which is a criminal offence. Rob wants to know whether the company has committed a crime. Would it matter if Rob or Helen was the scientist involved?

The Elcorn Company traded a tract of land to Sanchez Development for a similar tract of land. The old land had a book value of $2,500,000 and a fair value of $4,500,000. To equalize the fair values of the assets exchanged, in addition to the land, Elcorn paid Sanchez $500,000 in cash. This means that the fair value of the land acquired is $5,000,000.

My teacher has informed me that there is no commercial substance in this problem. If it lacks commercial substance :

No cash received = No gain.

Gain = (Fair value given - BV given) * (cash received / total Fair value received).

Loss = BV given - Fair value given.

Can you please explain to me the journal entry from Sanchez Developments' point of view?

Johnson Company leases computer equipment to customers under sales-type leases. The equipment has no residual value at the end of the lease and the leases do not contain purchase options. Johnson desires a return of 8% interest on a five-year lease of equipment with a fair value of $970,425.

(The present value of an annuity due of $1 at 8% for five years is 4.313.) OR

(Hint: Change the calculator setting to BGN for the annuity due.)

What is the annual lease payment?

)What is the total amount of interest revenue that Johnson will earn over the life of the lease?

5. The number of publicly listed firms has decreased by about half over the last 20 years even though the market capitalization of these firms is up more than 20x. Additionally, the 30 largest firms now account for about half of all public company earnings; in other words, firms are getting much bigger. Why has the number of public companies decreased so much? Are firms just getting bigger or are more companies staying private? Why might a firm wish to stay private? What is the role of private equity and particularly venture capital in fewer public companies? What is the impact on the investors and society of having fewer publicly listed firms? What is the impact of having fewer companies making a greater percentage of all income?

The number of publicly listed firms has decreased by about half over the last 20 years even though the market capitalization of these firms is up more than 20x. Additionally, the 30 largest firms now account for about half of all public company earnings; in other words, firms are getting much bigger. Why has the number of public companies decreased so much? Are firms just getting bigger or are more companies staying private? Why might a firm wish to stay private? What is the role of private equity and particularly venture capital in fewer public companies? What is the impact on the investors and society of having fewer publicly listed firms? What is the impact of having fewer companies making a greater percentage of all income?

Throughout the financial year (FY) 2008/2009, world markets experienced the depths of the global financial crisis (GFC). The collapse of the US investment bank Bear Sterns in March 2008 precipitated a rout on those markets that saw the Dow Jones Industrial Average Index drop from over 14,000 points in October 2007 to less than 7,000 points by March 2009. The resulting global contraction in economic growth created challenging operating conditions for Australian companies. Among the decisions confronting financial officers was that of what to do about dividend policy: should dividends be cut to match declines in earnings or should they be maintained at existing levels, resulting in an increase in their dividend payout ratio?

Table 1 below provides data on the earnings and dividend payments of four selected Australian Securities Exchange (ASX) listed companies for the period surrounding the GFC. The companies are: Australia &New Zealand Banking Group Ltd (ANZ), Westpac Banking Corporation Limited (WBC), Suncorp Group Ltd (SUN) and Downer EDI Ltd (DOW). The data in the table was sourced from individual company statements.

As we can see from the table (in which figures of particular interest are shown in bold type), the dividend payout ratios of all of the companies increased around the time of the GFC. For example, ANZ paid out the same total dividend ($1.36) in the financial year ended June 2008 as it did the previous year, despite the 28%decline in its earnings per share (EPS) from $2.048 in the financial year 2006/2007 to $1.478 in the financial year 2007/2008. This resulted in the company’s payout ratio increasing from the typical figure of around 60–5% of earnings in other years to 92% of earnings in financial year 2007/2008. Westpac was able to increase both its earnings and its dividends in the first year of the financial crisis but was forced to slash dividends and increase its payout ratio in the financial year 2008/2009 as the crisis began to bite. Likewise, both Suncorp and Downer EDI increased their payout ratios above ‘normal’ levels during the financial years 2007/2008 and 2008/2009.

These figures illustrate the difficulties that financial managers face in setting dividend policy, particularly during an unprecedented crisis such as the one that occurred between 2007 and 2009.

Table 1: Dividend payout ratios for selected Australian companies between the financial years (FY) 2005/2006 and 2009/2010

(a) DPS denotes dividends per share

(b) EPS denotes earnings per share

(c) cps denotes cents per share.

Requirement 1:

An examination of the payout ratios of Suncorp Group Ltd in financial years 2007/2008 and 2008/2009 finds them to be above 100%. Why would the organisation pay out more as a dividend than it generates in earnings?

Requirement 2:

Why might Downer EDI have chosen to increase its dividend payment in FY2007/2008, even though its earnings per share declined in that year?

1）ABC Company entered into the following transactions during
May, its first month of operations:

May 1:   ABC Company sold common stock to owners in the
         amount of $200,000.

May 1:   ABC Company paid $36,000 cash for office rent
         for May, June, and July.

May 3:   ABC Company purchased a parcel of land costing
         $60,000 by paying $25,000 in cash and agreeing
         to pay the remainder within sixty days.

May 9:   ABC Company provided $23,000 of services to a
         customer. The customer didn't pay any cash on
         May 9, but agreed to pay the balance due by the
         end of the month.

May 15:  ABC Company received and paid utility bills in
         the amount of $14,000.

May 18:  ABC Company sold the land purchased on May 3 for
         $79,000 cash.

May 21:  A customer paid $20,000 cash to ABC Company for
         services to be provided in June and July.

May 27:  The customer from May 9 paid the amount owed to
         ABC Company.

May 31:  ABC Company received a $9,000 bill for advertising
         done during May. No payment was made at this time.

The immediate effects on the balance sheet of the May 15
transaction would be:

assets = decrease; liabilities = no effect; equity = decrease

assets = decrease; liabilities = no effect; equity = no effect

assets = no effect; liabilities = increase; equity = decrease

assets = no effect; liabilities = no effect; equity = no effect

assets = decrease; liabilities = increase; equity = decrease

assets = decrease; liabilities = decrease; equity = no effect

assets = decrease; liabilities = increase; equity = no effect

2）Jay Corporation reported the following account balances

at December 31, 2023:

Interest Revenue          $48,000
Notes Payable             $55,000
Depreciation Expense      $10,000
Common Stock              $82,000
Wage Expense              $16,000
Equipment                 $27,000
Patent                    $51,000
Income Tax Expense        $12,000
Accounts Receivable       $58,000
Cost of Goods Sold        $63,000
Loss on Sale of Land      $18,000 
Retained Earnings         $75,000  (at January 1, 2023)
Trademark                 $13,000
Accumulated Depreciation  $15,000
Cash                      $39,000
Accounts Payable          $45,000
Inventory                 $69,000
Dividends                 $11,000
Sales Revenue             $96,000
Supplies                  $29,000

The total long term assets reported by Jay Corporation
at December 31, 2023 was equal to:

Group of answer choices

$76,000

$69,000

$105,000

$12,000

$91,000

$106,000

none of the above are correct

3）

Jay Corporation reported the following account balances
at December 31, 2023:

Interest Revenue          $48,000
Notes Payable             $55,000
Depreciation Expense      $10,000
Common Stock              $82,000
Wage Expense              $16,000
Equipment                 $27,000
Patent                    $51,000
Income Tax Expense        $12,000
Accounts Receivable       $58,000
Cost of Goods Sold        $63,000
Loss on Sale of Land      $18,000 
Retained Earnings         $75,000  (at January 1, 2023)
Trademark                 $13,000
Accumulated Depreciation  $15,000
Cash                      $39,000
Accounts Payable          $45,000
Inventory                 $69,000
Dividends                 $11,000
Sales Revenue             $96,000
Supplies                  $29,000

The total stockholders' equity reported by Jay Corporation
at December 31, 2023 was equal to:

$189,000

$157,000

$82,000

$146,000

$171,000

$252,000

none of the above are correct