Saving, Investment, and the Financial System: By the Numbers

The financial system consists of banks, money markets, and government institutions that issue and manage money. Although the United States is the largest economy in the world, it does not have the largest banks in the world in terms of total assets.

Consider the accompanying tables which list the world’s ten largest banks in terms of assets in 2008 and 2017.

Top Banks in the World by Assets, 2008

Top Banks in the World by Assets, 2017

Consider how the list of the world's ten largest banks changed between 2008 and 2017. Calculate the total combined assets of the world’s top ten largest banks in each year. Then calculate what percentage of these assets were held by banks based in the U.S. and China. Round the percentages to whole numbers.

What were the total combined assets of the world’s ten largest banks in 2008? $________billion.

Of these total combined assets for the ten largest banks in 2008, what percentage was held by U.S. based banks? U.S. banks holdings:________%

Of these total combined assets for the ten largest banks in 2008, what percentage was held by Chinese based banks? Chinese bank holdings:_______%

Please enter a value for the total assets of the world’s ten largest banks in 2017. $_______billion.

Of these total combined assets for the ten largest banks in 2017, what percentage was held by U.S. based banks? U.S. banks' share:_____%

Of these total combined assets for the ten largest banks in 2017, what percentage was held by Chinese based banks? Chinese banks' share:______%

Within a given distribution channel, the following information is available concerning trade margins and costs. A wholesaler has a unit selling price of $783 and a unit cost of $516. The retailer requires a 47% markup on selling price. The manufacturer has unit variable costs of $311. Calculate the manufacturer's percent markup on cost. Report your answer as a percentage and round to the nearest percent.

Department S had 500 units 67% completed in process at the beginning of the period; 7,500 units completed during the period; and 800 units 36% completed at the end of the period. What was the number of equivalent units of production for the period for conversion if the first-in, first-out method is used to cost inventories? Assume the completion percentage applies to both direct materials and conversion cost.

Winston Clinic is evaluating a project that costs $50,000 and has expected net cash inflows of $12,000 per year for eight years. The first inflow occurs one year after the cost outflow, and the project has a cost of capital of 12%. What is the project’s MIRR? (hint: remember to put the answer as a percentage). Choice: 13.9% Choice: 14.5% Choice: 5.80% Choice: 22.1%

Upper Division of Lower Company acquired an asset with a cost of $580,000 and a four-year life. The cash flows from the asset, considering the effects of inflation, were scheduled as follows:

The cost of the asset is expected to increase at a rate of 20 percent per year, compounded each year. Performance measures are based on beginning-of-year gross book values for the investment base. Ignore taxes. Required: a. What is the ROI for each year of the asset's life, using a historical cost approach? (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).)

b. What is the ROI for each year of the asset's life if both the investment base and depreciation are determined by the current cost of the asset at the start of each year? (Enter your answers as a percentage rounded to 1 decimal place (i.e., 32.1).)

Subscribing to the theory that life is indeed a beach, the residents of La Playa spend all of their money on three things: Every year, they collectively buy 250 bathing suits, 600 tubes of sunscreen, and 400 beach towels. Item (Amount purchased) Price 2013 ($) Price 2014 ($) Price 2015 ($) Price 2016 ($) Bathing suits (250) $10.00 $12.00 $15.00 $18.00 Sunscreen (600) 4.00 5.00 5.00 6.00 Beach towels (400) 5.00 5.50 7.00 9.00 Use the data in the table above to calculate the following. a. The total cost of this basket each year from 2013 through 2016. Instructions: Round your answers to the nearest whole number. Price 2013 ($) Price 2014 ($) Price 2015 ($) Price 2016 ($) Total cost of basket $ $ $ $ b. How much the cost of this basket has changed from year to year in percentage terms. Instructions: Round your answers to one decimal place. 2013−2014 2014−2015 2015−2016 Percentage change in total cost of basket % % %

Assume that Whee, Cheatham, and Howe is an auditing firm that has found that its summer interns are subject to a 70 percent learning curve for one of its important tasks, proofreading financial statements. For one of its interns, Kim Down, the firm has started to analyze the relation between time and financial statement proofreading. Financial Statements Proofread (X) Time Required to Proofread the Xth Financial Statement 1 5.0000 hours 2 3.5000 hours 4 ? 8 ? 16 ?

Required: a. Compute the time required to proofread 4, 8, and 16 financial statements. (Round your answers to 4 decimal places.)

b. Assume that Kim's labor time costs $6 per hour. Compare the cost of proofreading the 1st financial statement to the cost of proofreading the 16th financial statement. What is the percentage of the cost of proofreading the 16th financial statement to the cost of proofreading the 1st financial statement? (Do not round your intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (i.e., 32.21))

Zues Sporting Goods is a manufacturer of falconry equipment. Zues is analyzing the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $205,000. The equipment will have an initial cost of $950,000 and have a 6-year life. There is no salvage value for the equipment. If the hurdle rate is 7%, what is the approximate net present value? Ignore income taxes.

1. $950,000
2. $27,132
3. $977,132
4. $316,667

Robolo Aviation manufactures flight simulators to train new pilots. Robolo is debating the purchase of a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $200,800. The equipment will have an initial cost of $901,200 and have a 6-year life. There is no salvage value for the equipment. If the hurdle rate is 10%, what is the internal rate of return? Ignore income taxes.

1. Between 6% and 8%
2. Between 8% and 10%
3. Between 10% and 12%
​​​​​​​4. less than zero

Daniel's Theme Park is a family favorite destination. To keep up with other theme parks, Daniel is thinking of investing in a new piece of equipment. The cost savings from the equipment would result in an annual increase in cash flow of $108,000. The equipment will have an initial cost of $450,000 and have a 5-year life. The salvage value of the equipment is estimated to be $80,000. If the hurdle rate is 12%, what is the approximate net present value? Ignore income taxes.
1. Positive $80,000
2. Positive $450,000
3. Zero
​​​​​​​4. Negative $15,290

On December 31, 2012, Cia Company borrowed $400,000 from First Bank with interest payable annually at 10% maturing on December 31, 2015 in order to provide funds for the construction of a building to use as its corporate headquarters. On January 1, 2013, Cia Company started the construction. The project was completed and ready for occupancy on December 31, 2013. Cia incurred the following expenditures related to construction during 2013: January 1 $400,000 April 1 350,000 October 31 900,000 December 31 250,000 $1,900,000

1. Compute Actual Interest and Avoidable Interest for the project for 2013. (Hint: you will also need to calculate a weighted average interest rate on Cia’s general debt.

Produce a fully researched and referenced report (indicative word range 2,250–2,500 words) for a client that explains a particular system, type or design of an innovative modern method of construction suitable for a new primary school.
Your report should:
• include a critical appraisal that evaluates the relative merits of this method of construction over that of a more traditional type of construction;
• address various environmental and sustainability issues.

Please state any assumptions you make in the report. Assumptions can be made as to any specific type of facility, arrangements, layout or size. Please ensure that you write in your own words and that all sources are fully referenced.
Report guidance
The report could look at an offsite system of prefabricated schools.