The price per share of stock for a sample of 25 companies was recorded at the beginning of 2012 and then again at the end of the 1st quarter of 2012. How stocks perform during the 1st quarter is an indicator of what is ahead for the stock market and the economy. The sample data are provided below. Construct a spreadsheet to answer the following questions.
| End of 1st Quarter | Beginning of Year |
| 26.83 | 18.71 |
| 40.41 | 34.86 |
| 54.80 | 44.18 |
| 59.52 | 59.53 |
| 67.36 | 62.98 |
| 109.08 | 104.14 |
| 31.91 | 21.61 |
| 14.15 | 8.91 |
| 45.21 | 39.12 |
| 21.37 | 15.91 |
| 32.93 | 28.54 |
| 22.75 | 15.88 |
| 52.51 | 39.94 |
| 48.28 | 31.65 |
| 69.01 | 65.31 |
| 39.23 | 37.42 |
| 72.92 | 59.90 |
| 41.67 | 39.56 |
| 33.36 | 24.26 |
| 76.21 | 66.97 |
| 69.06 | 51.90 |
| 88.53 | 82.96 |
| 24.45 | 20.14 |
| 31.96 | 24.48 |
| 108.81 | 104.50 |
a. Let di denote the change in price per share for company i where di = 1st quarter of 2012 price per share minus the beginning of 2012 price per share. Use the sample mean of these values to estimate the dollar amount a share of stock has changed during the 1st quarter
$ blank (to 2 decimals)
b. What is the 95% confidence interval estimate of the population mean change in the price per share of stock during the first quarter? Interpret this result.
| Standard deviation (to 2 decimals): | |
| Confidence interval (to 2 decimals): | (, ) |
The mean price per share has increase between blank % and blank % over the three-month period (to 1 decimal).
In: Statistics and Probability
The price per share of stock for a sample of 25 companies was recorded at the beginning of 2012 and then again at the end of the 1st quarter of 2012. How stocks perform during the 1st quarter is an indicator of what is ahead for the stock market and the economy. The sample data are provided in the Excel Online file below. Construct a spreadsheet to answer the following questions.
| End of 1st Quarter | Beginning of Year | Change in Price (di) |
| 26.13 | 18.11 | |
| 40.91 | 35.56 | |
| 54.80 | 44.38 | |
| 60.92 | 60.23 | |
| 68.16 | 63.28 | |
| 108.78 | 104.34 | |
| 31.61 | 20.71 | |
| 13.95 | 8.71 | |
| 45.11 | 38.62 | |
| 22.27 | 16.41 | |
| 33.73 | 27.64 | |
| 23.45 | 16.38 | |
| 51.31 | 39.04 | |
| 48.48 | 30.25 | |
| 69.21 | 64.51 | |
| 39.23 | 37.32 | |
| 72.12 | 60.90 | |
| 42.37 | 40.46 | |
| 34.46 | 24.26 | |
| 76.31 | 68.07 | |
| 69.56 | 53.30 | |
| 88.03 | 82.46 | |
| 24.85 | 19.64 | |
| 31.16 | 24.28 | |
| 109.71 | 105.10 | |
a. Let denote the change in price per share for company i where 1st quarter of 2012 price per share minus the beginning of 2012 price per share. Use the sample mean of these values to estimate the dollar amount a share of stock has changed during the 1st quarter
$ (to 2 decimals)
b. What is the 95% confidence interval estimate of the population mean change in the price per share of stock during the first quarter? Interpret this result.
| Standard deviation (to 2 decimals): | |
| Confidence interval (to 2 decimals): | (, ) |
The mean price per share has increase between % and % over the three-month period (to 1 decimal
In: Statistics and Probability
1. Karl Corp. is preparing a schedule of cash receipts and disbursements for Year 4. Which of the following items should be included?
I.Borrowing funds from a bank on a note payable taken out in August Year 4 and agreeing co pay the principal and interest in July Year 5
II.Dividends declared in October Year 4 co be paid in January Year 5 co shareholders of record as of December Year 4
(A)I only, (B)II only ,(C)Both I and II, (D)Neither I nor II
2. Which of the following would NOT be included in a statement of cash receipts -and disbursements for Kraig Corporation in Year 2?
I.A purchase order issued in December Year 2 for items co be delivered in January Year 3
II.The amount of uncollectible customer accounts for Year 2
(A)I only, (B)II only ,(C)Both I and II , (D)Neither I or II
3. Sandra Inc. forecasted first quarter sales of I0,000 units, second quarter sales of 15,000 units, third quarter sales of 14,000 units, and fourth quarter sales of 17,000 units at $4 per unit.. Past experience has shown chat 70 percent of the sales will be in cash and 30 percent will be on credit. All credit sales are collected in the following quarter, and none are collectible. What amount of cash is forecasted to be collected in the second quarter?
(A) $54,000 (B) $42,000 (C) $30,000 (D) $28,500
In: Accounting
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017, the company incurred the following costs.
| Variable Costs per Unit | ||
| Direct materials | $7.95 | |
| Direct labor | $3.66 | |
| Variable manufacturing overhead | $6.15 | |
| Variable selling and administrative expenses | $4.13 | |
| Fixed Costs per Year | ||
| Fixed manufacturing overhead | $251,750 | |
| Fixed selling and administrative expenses | $222,706 |
Siren Company sells the fishing lures for $26.50. During 2017, the
company sold 82,000 lures and produced 95,000 lures.
Assuming the company uses variable costing, calculate Siren’s manufacturing cost per unit for 2017. (Round answer to 2 decimal places, e.g.10.50.)
| Manufacturing cost per unit |
$ |
eTextbook and Media
Prepare a variable costing income statement for 2017. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
|
SIREN COMPANY |
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Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
$ |
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Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
$ |
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Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
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Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
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Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
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Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
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Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
$ |
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eTextbook and Media
Assuming the company uses absorption costing, calculate Siren’s manufacturing cost per unit for 2017. (Round answer to 2 decimal places, e.g.10.50.)
| Manufacturing cost per unit |
$ |
eTextbook and Media
Prepare an absorption costing income statement for 2017. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
|
SIREN COMPANY |
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Administrative ExpensesContribution MarginCost of Goods SoldFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
$ |
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Administrative ExpensesContribution MarginCost of Goods SoldFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
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Administrative ExpensesContribution MarginCost of Goods SoldFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
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Administrative ExpensesContribution MarginCost of Goods SoldFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
$ |
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Administrative ExpensesContribution MarginCost of Goods SoldFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
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Administrative ExpensesContribution MarginCost of Goods SoldFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
$ | |||
eTextbook and Media
In: Accounting
Siren Company builds custom fishing lures for sporting goods stores. In its first year of operations, 2017, the company incurred the following costs.
| Variable Costs per Unit | ||
| Direct materials | $7.95 | |
| Direct labor | $3.66 | |
| Variable manufacturing overhead | $6.15 | |
| Variable selling and administrative expenses | $4.13 | |
| Fixed Costs per Year | ||
| Fixed manufacturing overhead | $251,750 | |
| Fixed selling and administrative expenses | $222,706 |
Siren Company sells the fishing lures for $26.50. During 2017, the
company sold 82,000 lures and produced 95,000 lures.
Assuming the company uses variable costing, calculate Siren’s manufacturing cost per unit for 2017. (Round answer to 2 decimal places, e.g.10.50.)
| Manufacturing cost per unit |
$ |
Prepare a variable costing income statement for 2017. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
|
SIREN COMPANY |
||||
|
Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
$ |
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|
Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
$ |
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|
Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
||||
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Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
||||
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Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
||||
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Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
||||
|
Administrative ExpensesContribution MarginFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
$ |
|||
Assuming the company uses absorption costing, calculate Siren’s manufacturing cost per unit for 2017. (Round answer to 2 decimal places, e.g.10.50.)
| Manufacturing cost per unit |
$ |
Prepare an absorption costing income statement for 2017. (Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)
|
SIREN COMPANY |
||||
|
Administrative ExpensesContribution MarginCost of Goods SoldFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
$ |
|||
|
Administrative ExpensesContribution MarginCost of Goods SoldFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
||||
|
Administrative ExpensesContribution MarginCost of Goods SoldFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
||||
|
Administrative ExpensesContribution MarginCost of Goods SoldFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
$ |
|||
|
Administrative ExpensesContribution MarginCost of Goods SoldFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
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|
Administrative ExpensesContribution MarginCost of Goods SoldFixed Manufacturing OverheadFixed Selling and Administrative ExpensesGross ProfitNet Income/(Loss)SalesTotal Fixed ExpensesTotal Variable ExpensesVariable Cost of Goods SoldVariable Selling and Administrative Expenses |
$ | |||
In: Accounting
Canyon Buff Corp. has developed a new construction chemical that greatly improves the durability and weatherability of cement-based materials. After spending $500,000 on the research of the potential market for the new chemical, Canyon Buff is considering a project that requires an initial investment of $9,000,000 in manufacturing equipment.
• The equipment must be purchased before the chemical production can begin. For tax purposes, the equipment is subject to a 5-year straight-line depreciation schedule, with a projected zero salvage value. For simplicity, however, we will continue to assume that the asset can actually be used out into the indefinite future (i.e., the actual useful life is effectively infinite).
• Canyon Buff anticipates that the sales will be $30,000,000 in the first year (Year 1). They expect that sales will initially grow at an annual rate of 6% until the end of sixth year. After that, the sales will grow at the estimated 2% annual rate of inflation in perpetuity.
• The cost of goods sold is estimated to be 72% of sales.
• The accounting department also estimates that at introduction in Year 0, the new product's required initial net working capital will be $6,000,000. In future years accounts receivable are expected to be 15% of the next year sales, inventory is expected to be 20% of the next year’s cost of goods sold and accounts payable are expected to be 15% of the next year’s cost of goods sold.
• The selling, general and administrative expense is estimated to be $6,000,000 per year, but $1 million of this amount is the overhead expense that will be incurred even if the project is not accepted.
• The market research to support the product was completed last month at a cost of $500,000 to be paid by the end of next year.
• The annual interest expense tied to the project is $1,000,000
• Canyon Buff has a cost of capital of 20% and faces a marginal tax rate of 30% and an average tax rate is 20%.
QUESTION:
Use Excel to construct six-year pro forma income statements and calculate the incremental unlevered net income for the first six years.
In: Accounting
b) Select the most correct response:
i. An important indicator of a nations well-being is: a. Gross Domestic Product (GDP) b. Gross National Product (GNP) c. The growth rate of GDP and GNP
ii. Which of the following combination of monetary policy and fiscal policy can be used to reduce inflation? a. Increase taxes and sell government bonds b. Decrease taxes and sell government bonds c. Increase taxes and buy government bonds
iii. Which of the following changes in taxes and government spending is necessarily expansionary? a. Increase in taxes and decrease in government spending b. Decrease in taxes and increase in government spending c. None of the above
iv. Arrow's impossibility theorem suggests that: a. There is no voting procedure which can aggregate individual preferences b. Democracy is dysfunctional c. There is no perfect voting procedure that can tell us the group's “true” interests
v. Which of the following sets of preferences are intransitive (e.g., in a vote cycle)? a. Nero is preferred to Cesar. Cesar is preferred to Antony. Nero is preferred to Antony b. Nero is preferred to Cesar. Antony is preferred to Nero. Cesar is preferred to Antony c. None of the above
In: Economics
Discuss four achievements of Malaysia in delivering the education roadmap with an appropriate example (Education roadmap: refer to Malaysia Education Blueprint (2013-2025), page 8-8 until 8-9, under Wave 2 (2016-2020): Accelerate system improvement)
In: Economics
Exercise 23-3 Preparing flexible budgets LO P1
Tempo Company's fixed budget (based on sales of 12,000 units)
for the first quarter reveals the following.
| Fixed Budget | ||||||||
| Sales (12,000 units × $212 per unit) | $ | 2,544,000 | ||||||
| Cost of goods sold | ||||||||
| Direct materials | $ | 300,000 | ||||||
| Direct labor | 528,000 | |||||||
| Production supplies | 336,000 | |||||||
| Plant manager salary | 100,000 | 1,264,000 | ||||||
| Gross profit | 1,280,000 | |||||||
| Selling expenses | ||||||||
| Sales commissions | 96,000 | |||||||
| Packaging | 168,000 | |||||||
| Advertising | 100,000 | 364,000 | ||||||
| Administrative expenses | ||||||||
| Administrative salaries | 150,000 | |||||||
| Depreciation—office equip. | 120,000 | |||||||
| Insurance | 90,000 | |||||||
| Office rent | 100,000 | 460,000 | ||||||
| Income from operations | $ | 456,000 | ||||||
(1) Compute the total variable cost per
unit.
(2) Compute the total fixed costs.
(3) Compute the income from operations for sales
volume of 10,000 units.
(4) Compute the income from operations for sales
volume of 14,000 units.
I need 3 and 4 answered please and thank you
In: Accounting
(a) How large a sample must be drawn so that a 98% confidence interval for μ will have a margin of error equal to 3.8? Round the critical value to no less than three decimal places. Round the sample size up to the nearest integer.
A sample size of __?is needed to be drawn in order to obtain a 98% confidence interval with a margin of error equal to 3.8.
(b) If the required confidence level were 99.5%, would the necessary sample size be larger or smaller?
|
(larger OR smaller) , because the confidence level is (higher OR lower) . |
In: Statistics and Probability