Problem 2

Company paid dividends each year.

Required:

1. Prepare Cash Flow Statement for Year 2
2. Prepare Tax Provision AJE for both years. Note Year 1 was the first year of operations.

Tax Provision JEs on next page.

An apartment building has the following investment characteristics: Year 1 NOI $2,500,000 Year 2 NOI $2,600,000 Year 3 NOI $2,704,000 Year 4 NOI $2,812,000 You plan to purchase the asset at a 5% initial cap rate and to sell it 3 years later, also at a 5% cap rate. You plan to use a loan at 60% LTV to purchase the asset. The loan will be interest-only (no amortization) at a 4% annual interest rate. Answer the following:

What is the purchase price?

What is your initial equity investment?

What are the annual mortgage payments?

What is the loan balance at the end of year 3? (Please have process how could you get this number )

What is your expected equity (levered) IRR? ( Please have process how could you get this number)

Thank you !!

A year ago, you purchased a 5-year bond, paying fixed annual coupons at a rate 5%pa. At the time you purchased the bond, the yield to maturity was 5%pa. If you sold the bond after receiving the first interest payment and the bond's yield to maturity had changed to 4%, your annual total rate of return on holding the bond for that year would have been approximately ________. Group of answer choices

8.1% 4.8% 8.6% 7.6% 9.5% PreviousNext

1)

Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:

1. 1) issued stock for $70,000
2. 2) borrowed $40,000 from its bank
3. 3) provided consulting services for $69,000 cash
4. 4) paid back $30,000 of the bank loan
5. 5) paid rent expense for $16,500
6. 6) purchased equipment for $27,000 cash
7. 7) paid $4,500 dividends to stockholders
8. 8) paid employees' salaries of $36,000

What is Yowell's net cash flow from operating activities?

a) Inflow of $52,500

b) Inflow of $33,000

c) Inflow of $16,500

d) Inflow of $12,000

2)

Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)

1. Acquired $1,400 cash from the issue of common stock.
2. Borrowed $870 from a bank.
3. Earned $1,050 of revenues cash.
4. Paid expenses of $340.
5. Paid a $140 dividend.

During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.)

1. Issued an additional $775 of common stock.
2. Repaid $535 of its debt to the bank.
3. Earned revenues of $1,200 cash.
4. Incurred expenses of $540.
5. Paid dividends of $190.

What is the amount of Packard Company's net cash flow from financing activities for Year 2?

a) Net outflow of $535.

b) Net inflow of $585.

c) Net inflow of $50.

d) Net outflow of $725.

Forten Company, a merchandiser, recently completed its calendar-year 2018 operations. 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. The company’s income statement, balance sheets, and additional information follow. FORTEN COMPANY Comparative Balance Sheets December 31, 2018 and 2017 2018 2017 Assets Cash $ 52,900 $ 75,500 Accounts receivable 68,810 52,625 Inventory 278,656 253,800 Prepaid expenses 1,270 1,995 Total current assets 401,636 383,920 Equipment 155,500 110,000 Accum. depreciation—Equipment (37,625 ) (47,000 ) Total assets $ 519,511 $ 446,920 Liabilities and Equity Accounts payable $ 55,141 $ 117,675 Short-term notes payable 10,600 6,400 Total current liabilities 65,741 124,075 Long-term notes payable 64,000 50,750 Total liabilities 129,741 174,825 Equity Common stock, $5 par value 166,750 153,250 Paid-in capital in excess of par, common stock 40,500 0 Retained earnings 182,520 118,845 Total liabilities and equity $ 519,511 $ 446,920 FORTEN COMPANY Income Statement For Year Ended December 31, 2018 Sales $ 592,500 Cost of goods sold 287,000 Gross profit 305,500 Operating expenses Depreciation expense $ 22,750 Other expenses 134,400 157,150 Other gains (losses) Loss on sale of equipment (7,125 ) Income before taxes 141,225 Income taxes expense 27,050 Net income $ 114,175 Additional Information on Year 2018 Transactions The loss on the cash sale of equipment was $7,125 (details in b). Sold equipment costing $52,875, with accumulated depreciation of $32,125, for $13,625 cash. Purchased equipment costing $98,375 by paying $34,000 cash and signing a long-term note payable for the balance. Borrowed $4,200 cash by signing a short-term note payable. Paid $51,125 cash to reduce the long-term notes payable. Issued 2,700 shares of common stock for $20 cash per share. Declared and paid cash dividends of $50,500. Required: 1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amounts to be deducted should be indicated with a minus sign.) How do complete the chart?

Kent Enterprises had the following transactions relating to year-end liabilities (assume a December 31 year-end):

1. The company borrowed $50,000 on August The note was for one-year and the interest rate was 5.50%
2. The company recorded December sales of $24,675. The sales tax rate was 8.25%.
3. The company received $18,000 on November 1 in advance of performing the service. The service was to be performed evenly over the next 12 months.
4. The company recorded sales of $412,095. Warranty claims are estimated at 1.5% of sales. To date warranty claims of $4,725 have been paid for the year. The beginning balance in the warranty payable account was $3,500.

Required

1.         How much interest is owed on December 31? What is the total amount to be paid on August 1 when the note is due?

2.         What is the amount of sales tax owed on the sale? What is the total that the customer will pay?

3.         How much of the $18,000 would be earned as of December 31? How much is still unearned as of December 31?

4.         What is the warranty expense for the year? What is the ending balance in the warranty payable account?

Answers

Quiz Company is preparing the payroll report and wants to look at one particular employee. The following data is available for a recent week:

Hours Worked: 60

Hourly Pay Rate: $20.00

Federal Withholding: 25%

FICA Withholding: 6.20%

Medicare Withholding: 1.45%

Illinois Withholding: 5%

401-K Deduction: 5% (employer matches)

Federal and State Unemployment: 6%

Required

• Calculate the gross pay
• Calculate the net pay
• Calculate the total cost to the employer
• Calculate the % of total cost to gross pay for the employer

Create the class

• Constructor with no arguments
  • sets the date to be January 1, 1900
• Constructor with arguments
  • CALLS THE SET FUNCTIONS to set the Month, then set the Year, and then set the Day - IN THAT ORDER
• Get methods (accessors) return the field that the get refers to
• setDate - CALLS THE SET FUNCTIONS to set the Month, then set the Year, and then set the Day - IN THAT ORDER
• setMonth - checks to see if it is a valid month, if it isn't valid, it prints a message and sets the month to 1
• setYear - checks to see if it is a valid year, if it isn't valid (negative is invalid), it prints a message and sets the year to 1900
• setDay - checks to see if it is a valid day for the month that was entered. It also check for leap year (using the method isLeapYear), If the day is not valid, it prints a message and sets the day to 1
• isLeapYear- returns true if it is a leap year and false if it is not
• determineSeason - returns the season. The seasons are Winter, Spring, Autumn, or Summer The dates for each season are:
  Spring: March 20 - June 20
  Summer: June 21 - September 21
  Autumn: September 22 - December 20
  Winter: December 21 - March 19
• printDate- prints the date in the following format: XX/XX/XXXX it does not have a new line at the end.

Once the Date class is complete, Create a Main class and copy the main given below into it.

Follow the directions in the main method. There is one method you have to write

Put your statements below the comments, so you know what the directions are for that particular section

import java.util.Scanner;
public class Main
{
    public static Scanner kb = new Scanner(System.in);
    public static void main(String [] args)
    {
        Date birth;
        String again;

        // Refer to format for all formatting
        // Ask the user to type in if they want to enter their birthday



        // make a loop that will allow them to continue entering dates
        // until the don't answer with a y - you are just adding the boolean expression
        while(...)
        {
            // call the enterDate method to allow user to enter the date


            System.out.println();
            // Call method to print date


            //Using method in class print out if it is a leapyear or not


            //Using method in class print out the season


           // Ask the user to type in if they want to enter their birthday
           // This is basically asking if they want to do it again



            System.out.println();
        }

    }

    // Method: enterDate
    // This method asks the user to enter the month, day, and year
    // It then creates an object and returns the object


}

Sample Output

Do you want information about your birthday Y/N? Y
Enter the month: 3
Enter the day: 20
Enter the year: 2000

Date entered: 03/20/2000
You were born in a leap year
You were born in the Spring
Do you want information about your birthday Y/N? y

Enter the month: 12
Enter the day: 21
Enter the year: 1998

Date entered: 12/21/1998
You were not born in a leap year
You were born in the Winter
Do you want information about your birthday Y/N? y

Enter the month: 2
Enter the day: 29
Enter the year: 1995
29 is an invalid day. Day will be set to 1.

Date entered: 02/01/1995
You were not born in a leap year
You were born in the Winter
Do you want information about your birthday Y/N? y

Enter the month: 2
Enter the day: 29
Enter the year: 2008

Date entered: 02/29/2008
You were born in a leap year
You were born in the Winter
Do you want information about your birthday Y/N? Y

Enter the month: 6
Enter the day: 20
Enter the year: 1999

Date entered: 06/20/1999
You were not born in a leap year
You were born in the Spring
Do you want information about your birthday Y/N? y

Enter the month: 9
Enter the day: 22
Enter the year: -5
-5 is an invalid year. Year will be set to 1900.

Date entered: 09/22/1900
You were not born in a leap year
You were born in the Autumn
Do you want information about your birthday Y/N? Y

Enter the month: 13
Enter the day: 15
Enter the year: 2000
13 is an invalid month. Month will be set to 1.

Date entered: 01/15/2000
You were born in a leap year
You were born in the Winter
Do you want information about your birthday Y/N? y

Enter the month: 9
Enter the day: 31
Enter the year: 1984
31 is an invalid day. Day will be set to 1.

Date entered: 09/01/1984
You were born in a leap year
You were born in the Summer
Do you want information about your birthday Y/N? n