Canyon Tours showed the following components of working capital last year: Beginning End of Year Accounts receivable $ 25,600 $ 23,800 Inventory 12,800 14,100 Accounts payable 15,300 18,100 a. What was the change in net working capital during the year? (A negative amount should be indicated by a minus sign.) b. If sales were $36,800 and costs were $24,800, what was cash flow for the year? Ignore taxes.

On July 1, Year 1, Livingston Corporation, a wholesaler of manufacturing equipment, issued $3,000,000 of 6-year, 9% bonds at a market (effective) interest rate of 10%, receiving cash of $2,867,050. 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. For a compound transaction, if an amount box does not require an entry, leave it blank.

2. Journalize the entries to record the following: For a compound transaction, if an amount box does not require an entry, leave it blank. Round your answer to the nearest dollar.

a. The first semiannual interest payment on December 31, Year 1, and the amortization of the bond discount, using the straight-line method.

b. The interest payment on June 30, Year 2, and the amortization of the bond discount, using the straight-line method.

3. Determine the total interest expense for Year 1. Round to the nearest dollar.
$

4. Will the bond proceeds always be less than the face amount of the bonds when the contract rate is less than the market rate of interest?
Yes

5. Compute the price of $2,867,050 received for the bonds by using Table 1, Table 2, Table 3 and Table 4. (Round to the nearest dollar.) Your total may vary slightly from the price given due to rounding differences.

Today, the one-year U.S. interest rate is 2%, while the one-year interest rate in Mexico is 8%. The spot rate of the Mexico peso (MXP) is $.06 The one-year forward rate of the MXP exhibits a 10% discount. Determine the yield (percentage return on investment) to an investor from Mexico who engages in covered interest arbitrage.

PROJECT CASH FLOW

Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project:

The company has a 40% tax rate, and its WACC is 13%.

Write out your answers completely. For example, 13 million should be entered as 13,000,000.

1. What is the project's cash flow for the first year (t = 1)? Round your answer to the nearest dollar.
   $
2. 
   
3. If this project would cannibalize other projects by $1.5 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest dollar.
   The firm's project's cash flow would now be $ .
4. 
   
5. Ignore part b. If the tax rate dropped to 30%, how would that change your answer to part a? Round your answer to the nearest dollar.
   The firm's project's cash flow would -Select- increase or decrease

by $

Forten Company's current year income statement, comparative balance sheets, and additional information follow. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses.

Additional Information on Current Year Transactions

1. The loss on the cash sale of equipment was $12,125 (details in b).
2. Sold equipment costing $67,875, with accumulated depreciation of $37,125, for $18,625 cash.
3. Purchased equipment costing $103,375 by paying $44,000 cash and signing a long-term note payable for the balance.
4. Borrowed $4,700 cash by signing a short-term note payable.
5. Paid $53,625 cash to reduce the long-term notes payable.
6. Issued 3,200 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $51,500.

Required:
1. Prepare a complete statement of cash flows using the indirect method for the current year. (Amounts to be deducted should be indicated with a minus sign.)

PROJECT CASH FLOW

Colsen Communications is trying to estimate the first-year cash flow (at Year 1) for a proposed project. The financial staff has collected the following information on the project:

The company has a 40% tax rate, and its WACC is 12%.

Write out your answers completely. For example, 13 million should be entered as 13,000,000.

1. What is the project's cash flow for the first year (t = 1)? Round your answer to the nearest dollar.
   $
2. 
   
3. If this project would cannibalize other projects by $1 million of cash flow before taxes per year, how would this change your answer to part a? Round your answer to the nearest dollar.
   The firm's project's cash flow would now be $ .
4. 
   
5. Ignore part b. If the tax rate dropped to 35%, how would that change your answer to part a? Round your answer to the nearest dollar.
   The firm's project's cash flow would -Select-increasedecreaseItem 3  by $ .

1. Consider the following data, answer the question below:

Calculate Real GDP in 2012

2) Given the data below calculate Nominal GDP, Real GDP, and the GDP Deflator using 2010 as the base year.

                                                      2010               2011               2012              

Nominal GDP Calculation                    _______        _______        _______

Real GDP Calculation              _______        _______        _______

GDP Deflator Calculation

48. LO.3 During the year (not a leap year), Anna rented her vacation home for 30 days, used it personally for 20 days, and left it vacant for 315 days. She had the following income and expenses: Rent income $ 7,000 Expenses  Real estate taxes 2,500  Interest on mortgage 9,000  Utilities 2,400  Repairs 1,000  Roof replacement (a capital expenditure) 12,000  Depreciation 7,500 1. Compute Anna’s net rent income or loss and the amounts she can itemize on her tax return, using the court’s approach to allocating property taxes and interest. 2. How would your answer in part (a) differ using the IRS’s method of allocating property taxes and interest?

49. LO.3 How would your answer to Problem 48 differ if Anna had rented the house for 87 days and had used it personally for 13 days?

The following tables shows 5 year returns of different funds

Let’s assume the minimum return every year across all the funds is M. This means sum of money invested in stock, bonds, aggressive growth, aggressive value, moderate growth and moderate value in any year will return at least M%.

Keep in mind that the total percentage of money allocated across all the funds in any year will be 100%. This means stocks + bonds + …… moderate value = 100% or 1

The objective here is to maximize return in any year. E.g. in year 1 to maximize return, one can invest all the money in moderate growth, but this will not work because in year 2, moderate value returns higher. Therefore, the objective is to come up with an allocation across all the funds such that the return is maximum in the 5 year period.

Tax Year 2019

This year Jack intends to file a married-joint return. Jack received $173,400 of salary and paid $8,600 of interest on loans used to pay qualified tuition costs for his dependent daughter, Deb. This year Jack has also paid moving expenses of $4,550 and $30,055 of alimony to his ex-wife, Diane, who divorced him in 2012. (Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.)

a. What is Jack’s adjusted gross income?