Sheldon Company began Year 1 with $1200 in its supplies account. During the year, the company purchased $3500 of supplies on account. The company paid $2100 on accounts payable by year end. At the end of Year 1, Sheldon counted $1900 of supplies on hand. Sheldon's financial statements for Year 1 would show: $2600 of supplies; $3500 of supplies expense $1900 of supplies; $2800 of supplies expense $1900 of supplies; $1600 of supplies expense $2600 of supplies; $700 of supplies expense

The Shirt Shop had the following transactions for T-shirts for Year 1, its first year of operations:

During the year, The Shirt Shop sold 1,080 T-shirts for $24 each.

b. Record the above transactions in general journal form and post to T-accounts using (1) FIFO, (2) LIFO, and (3) weighted average. Use a separate set of journal entries and T-accounts for each method. Assume all transactions are cash transactions.

----->>>>>T CHARTS OF GJ FIFO, GJ LIFO, GJ WA, GJ ACC FIFO, GJ ACC LIFO, GJ ACC WA.

The following transactions pertain to Year 1, the first-year operations of Baird Company. All inventory was started and completed during Year 1. Assume that all transactions are cash transactions.

1.Acquired $4,000 cash by issuing common stock.

2.Paid $700 for materials used to produce inventory.

3.Paid $1,830 to production workers.

4.Paid $862 rental fee for production equipment.

5.Paid $110 to administrative employees.

6.Paid $120 rental fee for administrative office equipment.

7.Produced 320 units of inventory of which 230 units were sold at a price of $13 each.

Required

Prepare an income statement and a balance sheet in accordance with GAAP.

Heights of 10 year olds. Heights of 10 year olds, regardless of gender, closely follow a normal distribution with mean 55 inches and standard deviation 6 inches. Round all answers to four decimal places.

1. What is the probability that a randomly chosen 10 year old is shorter than 57 inches?

2. What is the probability that a randomly chosen 10 year old is between 50 and 52 inches?

3. If the tallest 15% of the class is considered very tall, what is the height cutoff for very tall?  inches

4. What is the height of a 10 year old who is at the 39 th percentile?  inches

5. In order to ride the Great Chase ride at Six Flags America, a person must be no shorter than 42 inches. What proportion of 10 year olds cannot go on this ride?

Ambrin Corp. expects to receive $9,000 per year for 14 years and $10,500 per year for the next 14 years. What is the present value of this 28 year cash flow? Use an 11% discount rate. Use Appendix D and Appendix B. (Round "PV Factor" to 3 decimal places. Round your intermediate calculations to the nearest dollar value.)

Consider a bank account where you make deposits of $100 at year 1, $200 at year 5, and $200 at year 9. You do not remember the offered compound interest rate, but you know that the balance of your account right after the deposit at year 9 was twice the balance right after the deposit at year 5. Find the first time (in years) that the balance on your account reaches $1,000

Preston Stores Inc. completed the following transactions during the current year, the company's first year of operations. Preston Stores has a December 31 year-end.

Requirements

A. Prepare the journal entries required to record the transactions listed above. Assume a perpetual inventory system is used.

B. Prepare a partial income statement for the current fiscal year.

September 2: Purchased $66,000 of merchandise inventory from Anderson Company using a trade note payable. The not is due in three months and carries an 6% annual interest rate.

September 21: Purchased $392,000 of inventory from various suppliers on account.

October 12: Sold merchandise that cost $87,000 for $137,000 on account.

Begin by journalizing the sale of the merchandise. Do not record the expense related to the sale. We will do that in a following step.

Now journalize the expense related to the October 12 sale.

October 16: Sold $4,100 of gift cards and received cash.

November 16: Paid for all the items purchased on September 21.

December 2: Paid off the trade note payable plus interest.

December 15: Redeemed gift cards totaling $3700 from customers who purchased merchandise costing $2300.

Begin by journalizing the gift card redemption. Do not record the expense related to the sale. We will do that in the following step.  

Now journalize the expense related to the December 15 sale.

December 31: Used the proportional method to account for breakage. Its estimated breakage rate is 6%.  

Requirement B.

Prepare the partial income statement for the current fiscal year.

Review the journal entries prepared in Requirement A.

1. Ocular Solutions recently (at the beginning of year 1) forecasted first year sales of $9.4 million, operating costs other than depreciation of $5.6 million, and depreciation of $0.6 million. The company has no amortization charges, it has $4.2 million of outstanding bonds that carry a 6.5% interest rate, and its income tax rate is 28%. In order to sustain its operations and thus generate sales and cash flows in the future, the firm is required to make $1.3 million of capital expenditures on new fixed assets and to invest $0.3 million in net working capital.

a) Calculate the FCF of the firm in the first year. [5 Marks]

b) Assuming that the firm’s FCF will grow at a rate of 3% forever after Year 1, and also that its WACC is 20.0%, estimate the market value of the firm and its debt ratio (Debt/Firm Value) at the beginning of year 1. [5 Marks]

c) If the company keeps the debt level unchanged in the future, estimate its debt ratio at the beginning of year 2, and beginning of year 3. [5 Marks] d) Discuss the potential problem when using the WACC method to answer parts b) and c) above.

2. American Hardware (AH), a national hardware chain, is considering purchasing a smaller chain, Eastern Hardware (EH). American Hardware's analysts project that the merger will result in incremental free cash flows and interest tax savings. In the first two years, the incremental FCF is $3 million each year and the value increases to $3.5 million each year after the period. The tax savings are $0.5 million annually starting from the first year. They have determined that the appropriate discount rate for valuing EH (for both FCF and interest tax savings) is 17 percent. EH has 7 million shares outstanding and AH has 56 million shares outstanding. EH's current share price is $14.25 and AH’s current share price is $28.25. a). What is the maximum price per share that AH should offer (under the condition that all of the proposed synergy value is distributed to the EH shareholders)? [6 marks] b). If the proposed synergy value is equally distributed between AH shareholders and EH shareholders (50% to all AH shareholders and 50% to all EH shareholders), what is the price per share that AH should offer? [7 marks] c). If AH has successfully purchased all of EH shares at the price of $18, what should AH share price be after the purchasing (assuming investors know the information precisely as described above)?

a). What is the maximum price per share that AH should offer (under the condition that all of the proposed synergy value is distributed to the EH shareholders)? [6 marks] b). If the proposed synergy value is equally distributed between AH shareholders and EH shareholders (50% to all AH shareholders and 50% to all EH shareholders), what is the price per share that AH should offer? [7 marks] c). If AH has successfully purchased all of EH shares at the price of $18, what should AH share price be after the purchasing (assuming investors know the information precisely as described above)?

b). If the proposed synergy value is equally distributed between AH shareholders and EH shareholders (50% to all AH shareholders and 50% to all EH shareholders), what is the price per share that AH should offer?

c). If AH has successfully purchased all of EH shares at the price of $18, what should AH share price be after the purchasing (assuming investors know the information precisely as described above)?