Assume Maple Corp. has just completed the third year of its existence (year 3). The table below indicates Maple's ending book inventory for each year and the additional $263A costs it was required to include in its ending inventory. Maple immediately expensed these costs for book purposes. In year 2, Maple sold all of its year 1 ending inventory, and in year 3 it sold all of its year 2 ending inventory.

Required:
a. What book-tax difference associated with its inventory did Maple report in year 1? Was the difference favorable or unfavorable? Was it permanent or temporary?
b. What book-tax difference associated with its inventory did Maple report in year 2? Was the difference favorable or unfavorable? Was it permanent or temporary?
c. What book-tax difference associated with its inventory did Maple report in year 3? Was the difference favorable or unfavorable? Was it permanent or temporary?
In: Accounting
|
Year No. |
|
|
|
|
1 |
2014 – 2015 |
439 |
|
|
2 |
2015 – 2016 |
444 |
|
|
3 |
2016 – 2017 |
462 |
|
|
4 |
2017 – 2018 |
467 |
|
|
5 |
2018 – 2019 |
What is the Exponentially Smoothed Forecast for year 5?
|
Year No. |
|
|
|
Trend |
Adjusted |
|
1 |
2014 – 2015 |
439 |
- |
||
|
2 |
2015 – 2016 |
444 |
439 |
||
|
3 |
2016 – 2017 |
462 |
441 |
||
|
4 |
2017 – 2018 |
467 |
449.4 |
||
|
5 |
2018 – 2019 |
456.44 |
What is the trend for year 2?
What is the trend for year 3?
What is the adjusted exponentially smoothed forecast for year 3?
What is the trend for year 4?
What is the adjusted exponentially smoothed forecast for year 4?
What is the forecast for year 5 using linear regression.
In: Statistics and Probability
Suppose the correlation between first year GPA and second year GPA is 0.7. Assuming a close to linear relationship between GPAs in first year and in second year, what is the approximate average z-score in second year of students who had a z-score of 1.5 in their first-year GPA?
What is the average first-year z-score of students who have a z-score of 1.5 in their second-year GPA?
It seems that, on average, students who do well in first year do
better than average in second year but not quite as well as they
did in first year. And students who do better than average in
second year did, on average, better than average in first year but
not quite as well as they did in second year. Whichever way you go,
from first year to second year, or from second year to first year,
it looks like the grades are getting closer to the average.
Is this a contradiction? Is there an explanation for it? If you
need a diagram to help explain it, go ahead a draw one
In: Statistics and Probability
suppose that Ramos contributes $5000/year into a traditional IRA earning interest at the rate of 2%/year compounded annually, every year after age 37 until his retirement at age 67. At the same time, his wife Vanessa deposits $3500/year (the amount after paying taxes at the rate of 30%) into a Roth IRA earning interest at the same rate as that of Ramos. Suppose that Ramos withdraws his investment upon retirement at age 67 and that his investment is then taxed at 30%. (Round your answers to the nearest cent.)
(a) How much will Ramos's investment be worth (after taxes) at that time? $
(b) How much will Vanessa's investment be worth at that time? $
In: Statistics and Probability
ABC Inc had current assets of $67,200 and current liabilities of $71,100 last year. This year, the current assets are $83,100 and the current liabilities are $85,100. The depreciation expense for the past year is $9,600 and the interest paid is $8,700. What is the amount of the change in net working capital?
|
$1,900 |
||
|
$2,800 |
||
|
$1,400 |
||
|
$2,100 |
||
|
−$1,400 |
In: Finance
Find the corporate yield spread if the 8-year Treasury rate is 3% and the 8-year corporate bond rate is 8%.
In: Finance
Nurses Pay is $80K/year and Physician Pay is $300K/year. The clinic is running with 2 physicians at a physician to nurse factor input ratio of 0.2. However, there is an increase in physician pay to $330K/year. The firm will now run with 1 physician with the physician to nurse factor input ratio of 0.072. In addition, please also calculate savings with the new factor input ratio. Then calculate the elasticity of substitution. What can you say about the type of service provided by this clinic? Please explain.a
In: Economics
In its first year of existence (year 1), SCC corporation (a C corporation) reported a loss for tax purposes of $30,000. How much tax will SCC pay in year 2 if it reports taxable income from operations of $20,000 before considering loss carryovers under the following assumptions? (New Corporate income tax rate has been mentioned as "21% on all taxable income" as per the recent change. Leave no answer blank. Enter zero if applicable.)
b. Year 1 is 2018. What is SCC Tax Liability in Year 2?
In: Accounting
A student at a four-year college claims that average enrollment
at four-year colleges is higher than at two-year colleges in the
United States. Two surveys are conducted. Of the 35 two-year
colleges surveyed, the average enrollment was 5061 with a standard
deviation of 4775. Of the 35 four-year colleges surveyed, the
average enrollment was 5216 with a standard deviation of 8101.
Conduct a hypothesis test at the 5% level.
NOTE: If you are using a Student's t-distribution for the
problem, including for paired data, you may assume that the
underlying population is normally distributed. (In general, you
must first prove that assumption, though.)
1) State the distribution to use for the test. (Enter your answer in the form z or tdf where df is the degrees of freedom. Round your answer to two decimal places.)
2) What is the test statistic? (T or Z) & (Round your answer to two decimal places.)
3) What is the p-value? (Round your answer to four decimal places.)
4) Alpha: α =
In: Statistics and Probability
The comparative financial statements for Prince Company are below:
| Year 2 | Year 1 | ||||||
| Income statement: | |||||||
| Sales revenue | $ | 194,000 | $ | 168,000 | |||
| Cost of goods sold | 113,000 | 100,400 | |||||
| Gross profit | 81,000 | 67,600 | |||||
| Operating expenses and interest expense | 56,400 | 53,200 | |||||
| Pretax income | 24,600 | 14,400 | |||||
| Income tax | 8,400 | 4,200 | |||||
| Net income | $ | 16,200 | $ | 10,200 | |||
| Balance sheet: | |||||||
| Cash | $ | 4,400 | $ | 7,200 | |||
| Accounts receivable (net) | 14,200 | 18,200 | |||||
| Inventory | 40,400 | 34,200 | |||||
| Property and equipment (net) | 45,600 | 38,400 | |||||
| Total assets | $ | 104,600 | $ | 98,000 | |||
| Current liabilities (no interest) | $ | 16,200 | $ | 17,200 | |||
| Long-term liabilities (10% interest) | 45,200 | 45,200 | |||||
| Common stock ($5 par value, 6,080 shares outstanding) | 30,400 | 30,400 | |||||
| Retained earnings | 12,800 | 5,200 | |||||
| Total liabilities and stockholders' equity | $ | 104,600 | $ | 98,000 | |||
Assume that the stock price per share is $30 and that dividends in the amount of $4.50 per share were paid during Year 2. Compute the following ratios: (Round your answers to 2 decimal places
Earnings per share, Current ratio, Quick ratio, cash ratio, price/earnings ratio, dividend yield ratio %
In: Accounting