On July 1, Year 1, Danzer Industries Inc. issued $40,000,000 of 10-year, 7% bonds at a market (effective) interest rate of 8%, receiving cash of $37,282,062. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
In: Accounting
In: Statistics and Probability
Please assume 2020 tax year:
12. Ms. Lincoln paid $14,340 of medical expenses this year that were not reimbursed by her insurance provider. Compute the after-tax cost of these expenses assuming that
In: Accounting
On July 1, Year 1, Danzer Industries Inc. issued $1,900,000 of 10-year, 9% bonds at a market (effective) interest rate of 10%, receiving cash of $1,781,610. Interest on the bonds is payable semiannually on December 31 and June 30. The fiscal year of the company is the calendar year.
Required:
1. Journalize the entry to record the amount of cash proceeds from the issuance of the bonds on July 1, Year 1. If an amount box does not require an entry, leave it blank.
2. Journalize the entries to record the following: If an amount box does not require an entry, leave it blank.
a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method. (Round your answer to the nearest dollar.)
b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method. (Round your answer to the nearest dollar.)
3. Determine the total interest expense for Year 1. Round to the nearest dollar.
In: Accounting
Some moth species have a very short window of time for mating each year. One year the moths were breeding during a week when it was breezy and their reproductive success was very low. What is the likely cause of this low success rate?
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Male moths could not follow the pheromone trails of the females because the wind dispersed the chemicals |
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Female moths could not produce pheromones due to low water availability |
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Female moths did not produce many eggs due to lower water availability |
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Male moths grew at a slower rate and were not ready to mate when females were |
Why might workers within a population of haplodiploid eusocial insects have evolved the "willingness" to help the queen raise more offspring (i.e., sisters of the workers) rather than reproducing themselves? Assume the same male is fertilizing the queen.
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Workers are more closely related to sisters than they would be to their own daughters, and hence raise their inclusive fitness by helping raise the queen's offspring |
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Workers are incapable of reproduction and therefore are making the best of a bad situation by helping raise their sisters |
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The workers help to raise the queen's offspring because there is a good chance that she will return the favor when they become queens |
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Workers are genetically identical to each other and therefore work to pass on their collective gene pool |
In: Biology
Comparative financial statement data for Carmono Company follow:
| This Year | Last Year | ||||
| Assets | |||||
| Cash | $ | 8.50 | $ | 16.00 | |
| Accounts receivable | 54.00 | 47.00 | |||
| Inventory | 97.50 | 84.40 | |||
| Total current assets | 160.00 | 147.40 | |||
| Property, plant, and equipment | 237.00 | 198.00 | |||
| Less accumulated depreciation | 47.20 | 35.40 | |||
| Net property, plant, and equipment | 189.80 | 162.60 | |||
| Total assets | $ | 349.80 | $ | 310.00 | |
| Liabilities and Stockholders’ Equity | |||||
| Accounts payable | $ | 58.50 | $ | 48.00 | |
| Common stock | 126.00 | 97.00 | |||
| Retained earnings | 165.30 | 165.00 | |||
| Total liabilities and stockholders’ equity | $ | 349.80 | $ | 310.00 | |
For this year, the company reported net income as follows:
| Sales | $ | 950.00 |
| Cost of goods sold | 570.00 | |
| Gross margin | 380.00 | |
| Selling and administrative expenses | 360.00 | |
| Net income | $ | 20.00 |
This year Carmono declared and paid a cash dividend. There were no sales of property, plant, and equipment during this year. The company did not repurchase any of its own stock this year.
Required:
1. Using the indirect method, prepare a statement of cash flows for this year.
2. Compute Carmono’s free cash flow for this year.
In: Accounting
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Item |
Beginning of Year |
End of Year |
|
Raw Materials Inventory |
$15,000 |
$25,000 |
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Work in Process Inventory |
$40,000 |
$31,000 |
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Finished Goods Inventory |
$10,000 |
$25,000 |
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During the Year |
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Purchases of Raw Material |
$82,000 |
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Direct Labor Costs |
$95,000 |
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Manufacturing Overhead |
$50,000 |
Answer……………………………………..Calculations
$__________1. Direct Materials Used
________________________________
$__________2. Total Manufacturing Costs Incurred
____________________________
$__________3. Total Manufacturing Cost__________________
$__________4. Cost of Goods
Manufactured___________________________
$__________5. Cost of Goods
Sold___________________________________
In: Accounting
A 3-year bond carrying 3.5% annual coupon and $100-par is putable at par 1 year and 2 years from today. Calculate the value of the putable bond under the forward rate curve below.
1-year spot rate: 1.6%;
1-year spot rate 1 year from now: 2.8%;
1-year spot rate 2 years from now: 4.3%.
Assume annual compounding. Round your answer to 2 decimal places (nearest cent).
In: Finance
In: Statistics and Probability
Problem 3. You currently make $100,000 a year and expect your salary increase by 10% a year for 20 years. You are considering an MBA which will cost you $120,000 for the entire education. If you take the MBA, you will have to pay the full tuition today (all upfront) and you will make zero earnings at the end of years 1 and 2. However, after graduation you’ll have an opportunity to join a premier investment bank, which promises $130,000 a year, which will grow by 15% for 18 years after graduation. Is the MBA a good deal? Assume a constant discount rate of 15%. What if rates fall to 10%? What if rates rise to 17%, how does your answer change? Show your detailed spreadsheet calculations (Alt#2). Note: salary is paid at the end of each year.
In: Finance