An office building has the following investment characteristics: Year 1 NOI $2,100,000 Year 2 NOI $2,200,000 Year 3 NOI $2,300,000 Year 4 NOI $2,400,000 Initial (going in) cap rate 7% Loan Principal $18,000,000 Interest rate 5% Amortization 30 years Exit cap rate 8% Holding period 3 years Solve for each of the following:

Purchase price

Loan to value ratio

Annual debt service

Debt service coverage ratio for year 1

Loan balance at the end of year 3

Equity (Levered) IRR

Forten Company, a merchandiser, recently completed its calendar-year 2017 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 and balance sheets follow.

FORTEN COMPANY
Comparative Balance Sheets
December 31, 2017 and 2016

2017 2016

FORTEN COMPANY
Income Statement
For Year Ended December 31, 2017

Additional Information on Year 2017 Transactions

a. The loss on the cash sale of equipment was $15,125 (details in b).

b. Sold equipment costing $76,875, with accumulated depreciation of $40,125, for $21,625 cash.

c. Purchased equipment costing $106,375 by paying $50,000 cash and signing a long-term note payable for the balance.

d. Borrowed $5,000 cash by signing a short-term note payable.

e. Paid $55,125 cash to reduce the long-term notes payable.

f. Issued 3,500 shares of common stock for $20 cash per share.

g. Declared and paid cash dividends of $52,100.

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.)

1. What is the firm's current year net profit margin?

2. What is the firm's net income for the current year?

3. What is the firm's current year operating profit margin?

4. What is the firm's current year gross profit margin?

5. What is the entry for the current year's interest expense on a common-sized income statement?

Question:

Baltimore Manufacturing Company just completed its year ended December 31, 2018. Depreciation for the year amounted to $190,000: 25% relates to sales, 20% relates to administrative facilities, and the remainder relates to the factory. Of the total units produced during FY 2016: 75% were sold in 2018 and the rest remained in finished good inventory. Use this information to determine the dollar amount of the total depreciation that will be contained in Cost of Goods Sold.  (Round dollar values & enter as whole dollars only.)

Baltimore Manufacturing had a Work in Process balance of $73,000 on January 1, 2018. The year end balance of Work in Process was $87,000 and the Cost of Goods Manufactured was $600,000. Use this information to determine the total manufacturing costs incurred during the fiscal year 2018. (Round dollar values & enter as whole dollars only.)

Annapolis Clothing Company manufactures quality boating attire. The following selected financial information for the fiscal year 2018 is provided:

Item

Amount

Sales

$200,000

Cost of Goods Manufactured

51,000

Direct Material Purchased

80,000

Factory Overhead

20,000

Work in Process - January 1

60,000

Work in Process - December 31

30,000

Direct Material - December 31

20,000

Finished Goods Inventory - December 31

34,000

Net Income

30,000

Direct Materials used

60,000

Cost of Goods Sold

67,000

Use this information to determine the dollar amount of Annapolis Clothing's Finished Goods Inventory for January 1, 2018. (Round dollar values & enter as whole dollars only.)

Your Answer:

During FY 2018 Bay Manufacturing had total manufacturing costs are $444,000. Their cost of goods manufactured for the year was $455,000. The January 1, 2019 balance of Work-in-Process Inventory is $42,000. Use this information to determine the dollar amount of the FY 2018 beginning Work-in-Process Inventory. (Round dollar values & enter as whole dollars only.)

Frederick Company's January 1, 2018 finished goods inventory was $82,000. The January 1, 2019 finished goods inventory is $99,000.  Cost of goods manufactured for the FY 2018 was $389,000. Use this information to determine the dollar amount of the FY 2018 cost of goods sold. (Round dollar values & enter as whole dollars only.)

Annapolis Company manufactures quality boating apparel. The following selected financial information for the fiscal year 2018 is provided:

Item

Amount

Sales

$850,000

Beginning Raw Material Inventory

74,000

Direct Material Purchased

308,000

Factory Overhead

90,000

Finished Goods Inventory - January 1

144,000

Work in Process - January 1

74,000

Work in Process - December 31

98,000

Ending Raw Material Inventory

58,000

Finished Goods Inventory - December 31

168,000

Net Income

65,000

Direct Labor

155,000

Cost of Goods Sold

655,000

Use this information to prepared a detailed Schedule of Costs of Goods Manufactured for FY 2018: (Round dollar values & enter as whole dollars only. Properly title your statement.)

Annapolis Company manufactures quality boating apparel. The following selected financial information for the fiscal year 2018 is provided:

Item

Amount

Sales

$850,000

Beginning Raw Material Inventory

74,000

Direct Material Purchased

308,000

Factory Overhead

90,000

Finished Goods Inventory - January 1

144,000

Work in Process - January 1

74,000

Work in Process - December 31

98,000

Ending Raw Material Inventory

58,000

Finished Goods Inventory - December 31

168,000

Net Income

65,000

Direct Labor

155,000

Cost of Goods Sold

655,000

Use this information to prepared a detailed Schedule of Costs of Goods Manufactured for FY 2018: (Round dollar values & enter as whole dollars only. Properly title your statement.)

Alaska Corporation purchased, on account, 6,600 pounds of raw materials at $7.50 per pound on January 2, 2019. The production manager requisitioned and received 2,350 pounds of raw material into production on January 15. Use this information to prepare the General Journal entries (without explanation) for January 2 and January 15. If no entry is required then write "No Entry Required."

Baltimore Company uses a job order cost system and applies overhead based on estimated rates. The overhead application rate is based on total estimated overhead costs of $280,000 and direct labor hours of 25,000. During the month of February 2019, Job 2-1 incurred direct labor of 450 hours. Use this information to prepare the end of the month application General Journal entry (without explanation) of factory overhead for Job 2-1 for the month. If no entry is required then write "No Entry Required."

During March 2019, Virginia Bay Corporation recorded $275,000 of costs related to factory overhead. Alpha's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $267,000 would be incurred, and 6,800 direct labor hours would be worked. During March, 11,000 hours were actually worked. Use this information to determine the standard overhead rate. (round & enter any final dollar answers to the nearest cent):

During March 2019, Alaska Corporation recorded $254,000 of costs related to factory overhead. Alaska's overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $250,000 would be incurred, and 12,500 direct labor hours would be worked. During March, 13,500 hours were actually worked. Use this information to determine the amount of overhead over or under applied. Enter overapplied overhead as a negative number. (round & enter any final dollar answers to the nearest whole dollar)

On March 31, 2019, Dorchester Corporation recorded the following factory overhead costs incurred:

           Factory Manager Salary                 $5,500

           Factory Utilities                                 2,800

           Machinery Deprecation           9,000

           Machinery Repairs               1,800

           Factory Rent                     2,000

The overhead application rate is based on direct labor hours. The preset formula for overhead application estimated that $22,000 would be incurred, and 2,000 direct labor hours would be worked. During March, 650 hours were actually worked on Job Order 3-1 and 1,200 hours were actually worked on Job Order 3-2. Use this information to prepare the March 31 General Journal entries, without explanations, for the: (round any final dollar answers to the nearest whole dollar):

           1. to record the factory overhead costs

           2. the allocation of factory overhead to Job Order 3-1

           3. the allocation of factory overhead to Job Order 3-2

           4. the adjusting entry to dispose of any over or under application of factory overhead

March 1, 201, Dorchester Company's beginning work in process inventory had 8,000 units. This is its only production department. Beginning WIP units were 50% complete as to conversion costs. Dorchester introduces direct materials at the beginning of the production process. During March, all beginning WIP was completed and an additional 15,500 units were started and completed. Dorchester also started but did not complete 7,500 units. These units remained in ending WIP inventory and were 70% complete as to conversion costs. Dorchester uses the weighted average method. Use this information to determine for March 2019 the equivalent units of production for conversion costs. (Round & enter final answers to: the nearest whole dollar for total dollar answers, nearest penny for unit costs or nearest whole number for units)

Dorchester Company, on March 1, 2019 has a beginning Work in Process inventory of zero. All materials are added into production at the beginning of its production. There is only one production WIP inventory. On March 1, Dorchester started into production 14,500 units. At the end of the month there were 13,000 units completed and transferred into the Finished Goods Inventory. The ending WIP was 65% complete with respect to conversion. For the month of March the following costs were incurred and recorded in the WIP:

            Direct Material                      $11,000

            Direct Labor               22,000

            Factory Overhead          15,000

Dorchester uses the weighted-average process costing method. Use this information to determine the cost per equivalent unit of conversion for the month of March: (Round & enter final answers to the nearest cent.)

Your Answer:

Roger Company completed the following transactions during Year 1. Roger’s fiscal year ends on December 31.

1. Prepare journal entries for each of these transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

2. Prepare the adjusting entries required on December 31. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

3. Show how all of the liabilities arising from these transactions are reported on the balance sheet at December 31.        Balance sheet (partial)

One year ago you purchased a 8-year, 8% coupon bond. Today, you sold the bond at a YTM of 8%. If the current yield was 6.96%, what was your total return on this investment?

Par value is $1000

Convers Corporation (calendar-year-end) acquired and placed in service the following assets during the current tax year:

1. Machinery: original basis = $84,000; placed in service on October 25
2. Computer equipment: original basis = $24,000; placed in service on February 3
3. Used delivery truck*: original basis = $37,000; placed in service on March 17
4. Furniture: original basis = $164,000; placed in service on December 22

*The delivery truck is not a luxury automobile.

What is the applicable depreciation convention for the assets Convers placed in service this year assuming Convers elects out of bonus depreciation and does not take §179 expense?

Multiple Choice

• Half-year convention

• Full-month convention

• 200% declining balance

• Mid-quarter convention

• Mid-month convention

COPD Case Study

Andy Portal is a 68-year-old retired construction worker with a 12-year history of COPD after a 35-pack-year history of smoking. He has not smoked in 9 years. He presents in the emergency department complaining of a sharp pain and redness at his posterior left calf, which is also hot and tender to the touch. The medical diagnosis of deep-vein thrombosis (DVT) is made by contrast venography. The nursing diagnosis is ineffective tissue perfusion: peripheral related to decreased venous circulation in the right leg.

When Andy’s wife asks, “What happens now?”, the nurse explains to them both that the goal is to prevent further clot formation and preventing the clot traveling as in pulmonary emboli. This is accomplished by anticoagulants, anti-embolitic stockings, and warm compresses. The nurse discusses the possible pharmacological treatments and side effects. When Andy’s wife asks, “Why did this happen?”, the nurse explains to them that COPD is one of the risk factors for DVT (Vesa et al., 2009).

Questions. Please answer with APA citations

What is the relationship between COPD and vascular effects?

Describe how COPD can cause pulmonary hypertension.

Describe a pulmonary function test (PFT). What finding is indicative of COPD?

Forten Company, a merchandiser, recently completed its calendar-year 2017 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 and balance sheets follow.

Additional Information on Year 2017 Transactions

The loss on the cash sale of equipment was $8,125 (details in b).

Sold equipment costing $55,875, with accumulated depreciation of $33,125, for $14,625 cash.

Purchased equipment costing $99,375 by paying $36,000 cash and signing a long-term note payable for the balance.

Borrowed $4,300 cash by signing a short-term note payable.

Paid $51,625 cash to reduce the long-term notes payable.

Issued 2,800 shares of common stock for $20 cash per share.

Declared and paid cash dividends of $50,700.

Required:
1. Prepare a complete statement of cash flows; report its operating activities using the indirect method.

1. Emily, a single mother of twins, receives both child support ($8,000/year) and alimony ($10,000/year) as family support payments from her ex-husband. How should she report these payments on her California tax return?

   1. a) She doesn’t need to include the family support payments of $18,000 on her California tax return.

   2. b) She must include the family support payments of $18,000 on her California tax return.

   3. c) She must include the child support payments of $8,000 on her California tax return.

   4. d) She must include the alimony payments of $10,000 on her California tax return.

2. Conan already knows he will not owe any tax for the taxable year, but he has not had time to complete his California tax return. He knows he will need an extension of time to file Form 540. What is he required to do to obtain an automatic extension?

   1. a) He is not required to do anything.

   2. b) He must file Form FTB 3519.

   3. c) If a federal extension was filed, he must mail a copy to the FTB.

   4. d) He must contact the FTB directly to request an extension.

6. Stuart wishes to contribute $400 to the State Parks Protection Fund/Parks Pass Purchase on his 2017 tax return. He would like to include the donation amount on his return as a charitable contribution. What amount and when can he deduct this as an itemized deduction on his tax return?

1. a) $400; deductible on his 2017 return

2. b) $205; deductible on his 2018 return

3. c) $400; deductible on his 2018 return

4. d) $205; deductible on his 2017 return