It is the end of 2020. You plan to complete a Ph.D. in 5 years. Your favorite uncle has promised to help you with your school expenses by giving you the following amounts for Christmas:

Your uncle is fairly wealthy and very reliable. You currently have $10,000 in a savings account paying an annual interest rate of 8%.

Questions:

1. Create an Excel spreadsheet showing the years and cash flows as in the table above, then add a row that shows the number of years from now and another row that shows the present value of each cash flow. What is the sum of present values?

2. You also want to know how much each gift will be worth in 2025 if you save it. Add another row to your spreadsheet and calculate the value of each cash flow in 2025. What is the sum of all future values?

3.What is the present value of the sum of future values calculated in the previous part?

4. Now assume that the interest rate is 6%. What is the present value of all the gifts?

5. Still assume that the interest rate is 6%. What is the future value of all the gifts?

6. Now assume that the interest rate is 12%. What is the present value of all the gifts?

7. Still assume that the interest rate is 12%. What is the future value of all the gifts?

1) If a notes payable is reclassified from a long-term liability to a short-term liability, then

2) On October 1, 2025, Conway, Inc. borrowed $300,000 by signing a nine-month, 6% note payable. Interest was accrued on December 31, 2025. What is the journal entry on July 1, 2026, the date the note was paid?

3) Jackson Company pays the collected sales tax of $700 to the state. The journal entry would be:

4) Angie's gross pay for the week is $980. Her deduction for federal income tax is based on a rate of 20%. She has voluntary deduction of $240. Her year-to-date pay is under the limit for OASDI. What is the amount of FICA-Medicare Tax deducted from her pay? (Assume a FICA-OASDI Tax of 6.2% and FICA-Medicare Tax of 1.45%. Do not round any intermediate calculations, and round your final answer to the nearest cent.)

5) On November 1, 2025 Ashton, Inc. purchased merchandise inventory for $35,000 by signing a note payable. The note is for 6 months and bears interest at a rate of 8%. The journal entry for the purchase of the merchandise using a perpetual inventory system would be:

A $2,500 14% six-year bond with annual coupons is bought to yield 6%annually. The price is $3,600. Find its clean and dirty values at the end ofthe first quarter of the third year after issue, by the theoretical method.

NO EXCELL ONLY FORMULAS THANK U

Q. 4. In the following questions choose the most appropriate answer. (10 m)

.

The buyer purchases at his own risk. This doctrine is called

a.Novation

b.Caveat emptor

c.Anticipatory breach of contract

d.None of the above

A sale of goods by Mumbai businessman to his customer in Delhi will be subject to-

a.Delhi VAT

b.Mumbai VAT

c.Maharashtra VAT

d.Central Sales Tax

A chartered Accounts is liable to collect from his clients-

a.Excise duty

b.Service Tax

c.VAT

d.GST

In case of import of goods from China, the Indian importer shall be liable to pay

a.Basic custom duty

b.Counterveiling duty (CVD)

c.Special additional duty (SAD)

d.All the above

Octroi is levied by-

a.State Government

b.Central Government

c.Parliament

d.Local Municipal Corporation

A contract induced by coercion is

a.valid

b.voidable

c.void

A seller collected Rs. 10,000 as VAT from his customer. He has paid VAT of Rs.   

6,000 to his supplier of goods and Rs. 1,000 as service tax to service provider. Hence the actual amount of VAT payable by him to the Govt. authorities is

a.Rs.10,000

b.Rs. 6,000

c.Rs. 3,000

d.Rs. 4,000

Sales of goods Act is applicable to

a.Immovable goods

b.Actionable claims

c.Money

d.Movable goods

If the rate of excise duty is 10%. The excise duty payable on sale of goods with cost price of Rs. 10,000 and Selling price of Rs. 15,000 is

a.Rs. 1,000

b.Rs. 1,500

c.Rs.    400

d.Rs. 2,500

The rule of law is that when money is paid, it is to be applied first as per the expressed will of

a.payer

b.payee

c.both a and b

d.banker

Inventory Costing Methods—Periodic Method

The following data are for the Porter Corporation, which sells just one product:

Calculate the value of ending inventory and cost of goods sold at year-end using the periodic method and (a) first-in, first-out, (b) last-in, first-out, and (c) weighted-average cost method. Round the cost per unit to 3 decimal places and round your final answers to the nearest dollar.

New Zealand's government has increased its spending this year, leading to a growing budget deficit.

At the same time, the Reserve Bank of New Zealand (New Zealand's central bank) said it would continue to try to stimulate the economy. This stimulus is likely to lead to rising prices for consumer goods, even as the prices of producer goods remain low.

1.How should we expect inflation as measured by CPI and as measured by the GDP deflator to compare to each other in the future in New Zealand? Why?  

2.Inflation in New Zealand is expected to pick back up in the near future.

How will this inflation affect the economy? Your answer should discuss costs, benefits, winners, and losers from this inflation.

Increased government spending will reduce long-run growth rate of real GDP if :

a. the government spending involves building dams and levees.

b. the private spending that is crowded out is investment spending.

c. the private spending that is crowded out is consumption spending.

d. the government spending involves increased spending on highways and bridges.

Developing a Master Budget for a Merchandising Organization

Assume Nordstrom prepares budgets quarterly. The following information is available for use in planning the second quarter budgets for one of its stores (in thousands).

Actual and forecasted sales for selected months in the upcoming year are as follows:

Monthly operating expenses are as follows:

Cash dividends for the store of $710 thousand are declared during the third month of each quarter and are paid during the first month of the following quarter. Operating expenses, except insurance, rent, and depreciation are paid as incurred. The prepaid insurance is for five more months. Cost of goods sold is equal to 60% of sales. Ending inventories are sufficient for 150% of the next month’s cost of sales. Purchases during any given month are paid in full during the following month. Cash sales account for 50% of the revenue. Of the credit sales, 60% are collected in the next month and 40% are collected in the month after. Money can be borrowed and repaid in multiples of $100 thousand at an interest rate of 12% per year. The company desires a minimum cash balance of $2 million on the first of each month. At the time the principal is repaid, interest is paid on the portion of principal that is repaid. All borrowing is at the beginning of the month, and all repayment is at the end of the month. Money is never repaid at the end of the month it is borrowed.

• Part A
• Part B
• Part C
• Part D
• Part E
• Part F

(f) Prepare a budgeted balance sheet as of June 30.

1. What is the difference between:  

- Medical Power of Attorney

- Statutory Durable Power of Attorney

- Declaration of Guardian

- Advance Directive to Physicians.

2. Please describe how you arrive at each of the following to determine the tax which will be owed at someone’s death for estate tax purposes:

(a) gross estate;

(b) adjusted gross estate;

(c) taxable estate;

(d) tentative tax base; and

(e) tentative tax. Give an explanation of what you do at each stage.

Exercise 10-7

Lawn Industrial has estimated that production for the next five quarters will be:

Finished units of production require 6 pounds of raw material per unit. The raw material cost is $5 per pound. There is $214,200 of raw material on hand at the beginning of the first quarter, 2017. Lawn desires to have 17 percent of next quarter's material requirements on hand at the end of each quarter.

Prepare quarterly direct materials purchases budgets for Lawn Industrial for 2017.