Company expects revenue of $1 million in year 1, $1.2 million in year 2, and amounts increasing by $200,000 per year thereafter. If the company’s MARR is 5% per year, what is the future worth of the revenue through the end of year 10?

Suppose you paint your house this year, using $200 of paint bought this year and saving $900 in labor that would have been paid to a painting company. How much does GDP increase this year?

a. $900, since paint is considered a durable good.

b. $200.

c. 1,100, since your labor value is imputed.

d. $0, since this is do-it-yourself activity.

ABC Co. issued 14-year bonds a year ago at a coupon rate of 7.7%. The bonds make semiannual payments. If the YTM on these bonds is 6.0%, what is the current bond price? (Do not round intermediate calculations. Round the final answer to 2 decimal places. Omit $ sign in your response.)

Amanda files her current year tax return on June 18 of the following year. On August 8 she pays the amount​ due, if​ any, without requesting an extension. The tax shown on her return is $20,000.Amanda pays no estimated taxes and claims no tax credits on her current year return.

Requirements

A 4-year, 8%, $40,000 notes payable was issued on January 1, Year 1. The maker is required to pay $10,000 plus interest on December 31 of every year for the next four years. What amount, if any, should be reported as a current liability on January 1, Year 2?

A :

zero; the note is a long-term liability

B :

$13,200

C :

$39,600

D :

$10,000

1. The Company just began making boingos at the beginning of Year 1. During Year 1, the company produced 10 boingos and used a total of 20,000 pounds of direct materials and 10,000 direct labor hours (these are both totals, NOT per unit). Each pound of direct material costs $50 and each hour of direct labor costs $30. These 10 units will make up the baseline for your learning curve computations. The class example and the homework problem both had a baseline of only 1 unit, but this problem is different. The management of the company expects a 90% learning curve to be in effect over the first 4 years of producing boingos. The company produced 14 units in Year 2, 16 units in Year 3, and 40 units in Year 4. Compute the total estimated direct labor COST for Year 4.

2. Refer to question 1. Compute the total estimated direct materials COST for Year 4.

Packard Company engaged in the following transactions during Year 1, its first year of operations: (Assume all transactions are cash transactions.)1) Acquired $950 cash from the issue of common stock.2) Borrowed $420 from a bank.3) Earned $650 of revenues.4) Paid expenses of $250.5) Paid a $50 dividend.
During Year 2, Packard engaged in the following transactions: (Assume all transactions are cash transactions.)1) Issued an additional $325 of common stock.2) Repaid $220 of its debt to the bank.3) Earned revenues of $750.4) Incurred expenses of $360.5) Paid dividends of $100.

3.1)        What is Packard Company's net cash flow from financing activities for Year 2?

  
   A)    $320 outflow.    
   B)    $220 outflow.
   C)    $225 inflow.
   D)    $5 inflow.
  

3.2)        What was the balance of Packard's Retained Earnings account before closing in Year 1?

   A)    $0           
   B)    $400
   C)    $350
   D)    $450
  

3.3)        What is the amount of total stockholders’ equity that will be reported on Packard’s balance sheet at the end of Year 1?

   )    $900          
   B)    $1,350
   C)    $1,300
   D)    $250
  

3.4)        What is the after-closing amount of retained earnings that will be reported on Packard’s balance sheet at the end of Year 2?(Assume that closing entries have been

   A)    $800       
   B)    $290
   C)    $740
   D)    $640
  

3.5)        What is the amount of assets that will be reported on Packard’s balance sheet at the end of Year 2?

   A)    $2,115    
   B)    $395
   C)    $2,215
   D)    $440
  

3.6)        What is the net cash inflow from operating activities that will be reported on Packard’s statement of cash flows for Year 1?

            A)    $350       
            B)    $400
            C)    $820
            D)    $650

Lexington Company engaged in the following transactions during Year 1, its first year in operation: (Assume all transactions are cash transactions)Acquired $6,000 cash from issuing common stock.Borrowed $4,400 from a bank.Earned $6,200 of revenues.Incurred $4,800 in expenses.Paid dividends of $800.
Lexington Company engaged in the following transactions during Year 2: (Assume all transactions are cash transactions)Acquired an additional $1,000 cash from the issue of common stock.Repaid $2,600 of its debt to the bank.Earned revenues, $9,000.Incurred expenses of $5,500.Paid dividends of $1,280.

25.1)      What was the net cash flow from financing activities reported on Lexington's statement of cash flows for Year 2?

A)    $1,000 outflow.  
   B)    $2,880 outflow.
   C)    $1,000 inflow.
   D)    $2,880 inflow.
  

25.2)      What is the amount of total assets that will be reported on Lexington's balance sheet at the end of Year 1?

   A)    $12,000  
   B)    $11,000
   C)    $1,600
   D)    $7,600
  

25.3)      What was the amount of retained earnings that will be reported on Lexington's balance sheet at the end of Year 1?

   A)    $6,200    
   B)    $1,400
   C)    $600
   D)    $5,400
  

25.4)      What was the amount of liabilities on Lexington's balance sheet at the end of Year 2?

   A)    $480.      
   B)    $1,800.
   C)    $1,000.
   D)    ($2,600).