You have deposited $30,000 in a brokerage account with an initial margin of 60%. The broker charges a spread of .5 percent and the call money rate is 5.5%. If IBM shares are currently traded at $50, how many shares of IBM can you purchase? A year later, IBM shares are being traded at $60 and you sell your IBM stocks. Calculate your rate of return. What would have been your rate of return if you had purchased IBM using a cash account instead? What would have been your rate of return if , a year later, IBM stock were being traded at $40 per share- with and without a margin loan? What would you conclude?
In: Finance
Oriole Company’s balance sheet at December 31, 2021, is presented below.
|
Oriole Company |
|||||||
|---|---|---|---|---|---|---|---|
|
Cash |
$13,680 |
Accounts payable |
$8,900 | ||||
|
Accounts receivable |
21,100 |
Common stock |
21,800 | ||||
|
Allowance for doubtful accounts |
(740) |
Retained earnings |
13,330 | ||||
|
Inventory |
9,990 | ||||||
| $44,030 | $44,030 | ||||||
During January 2022, the following transactions occurred. Oriole
uses the perpetual inventory method.
| Jan. 1 | Oriole accepted a 4-month, 8% note from Betheny Company in payment of Betheny’s $4,800 account. | |
| 3 | Oriole wrote off as uncollectible the accounts of Walter Corporation ($500) and Drake Company ($300). | |
| 8 | Oriole purchased $18,800 of inventory on account. | |
| 11 | Oriole sold for $25,700 on account inventory that cost $16,020. | |
| 15 | Oriole sold inventory that cost $730 to Jack Rice for $1,100. Rice charged this amount on his Visa First Bank card. The service fee charged Oriole by First Bank is 3%. | |
| 17 | Oriole collected $24,400 from customers on account. | |
| 21 | Oriole paid $17,100 on accounts payable. | |
| 24 | Oriole received payment in full ($300) from Drake Company on the account written off on January 3. | |
| 27 | Oriole purchased advertising supplies for $1,540 cash. | |
| 31 | Oriole paid other operating expenses, $2,910. |
Adjustment data:
| 1. | Interest is recorded for the month on the note from January 1. | |
| 2. | Bad debts are expected to be 6% of the January 31, 2022, accounts receivable. | |
| 3. | A count of advertising supplies on January 31, 2022, reveals that $510 remains unused. | |
| 4. | The income tax rate is 30%. (Hint: Prepare the income statement up to Income before taxes and multiply by 30% to compute the amount; round to whole dollars.) |
Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual inventory system.)
Prepare an adjusted trial balance at January 31, 2022
Prepare an income statement for the month ending January 31, 2022.
Prepare a retained earnings statement for the month ending January 31, 2022.
Prepare a classified balance sheet as of January 31, 2022
In: Accounting
Sheridan Company’s balance sheet at December 31, 2021, is
presented below.
|
Sheridan Company |
|||||||
|---|---|---|---|---|---|---|---|
|
Cash |
$13,500 |
Accounts payable |
$8,300 | ||||
|
Accounts receivable |
20,600 |
Common stock |
21,900 | ||||
|
Allowance for doubtful accounts |
(860) |
Retained earnings |
12,710 | ||||
|
Inventory |
9,670 | ||||||
| $42,910 | $42,910 | ||||||
During January 2022, the following transactions occurred. Sheridan
uses the perpetual inventory method.
| Jan. 1 | Sheridan accepted a 4-month, 8% note from Betheny Company in payment of Betheny’s $3,600 account. | |
| 3 | Sheridan wrote off as uncollectible the accounts of Walter Corporation ($400) and Drake Company ($200). | |
| 8 | Sheridan purchased $18,870 of inventory on account. | |
| 11 | Sheridan sold for $24,200 on account inventory that cost $15,790. | |
| 15 | Sheridan sold inventory that cost $760 to Jack Rice for $1,000. Rice charged this amount on his Visa First Bank card. The service fee charged Sheridan by First Bank is 3%. | |
| 17 | Sheridan collected $20,900 from customers on account. | |
| 21 | Sheridan paid $15,300 on accounts payable. | |
| 24 | Sheridan received payment in full ($200) from Drake Company on the account written off on January 3. | |
| 27 | Sheridan purchased advertising supplies for $1,290 cash. | |
| 31 | Sheridan paid other operating expenses, $2,940. |
Adjustment data:
| 1. | Interest is recorded for the month on the note from January 1. | |
| 2. | Bad debts are expected to be 6% of the January 31, 2022, accounts receivable. | |
| 3. | A count of advertising supplies on January 31, 2022, reveals that $610 remains unused. | |
| 4. | The income tax rate is 30%. (Hint: Prepare the income statement up to Income before taxes and multiply by 30% to compute the amount; round to whole dollars.) |
(You may want to set up T-accounts to determine ending
balances.)
Prepare journal entries for the transactions listed above and adjusting entries. (Include entries for cost of goods sold using the perpetual inventory system.) AND Prepare an adjusted trial balance at January 31, 2022. AND Prepare an income statement for the month ending January 31, 2022.
In: Accounting
| 4) | An extended warranty for 3 years is sold for $1,155.00 on January 1, 2009. | ||||||||||||||
| $200 is spent by the company to honor the warranty on March 7, 2009. | |||||||||||||||
| Revenue is recognized for unused portion of the warranty on December 31, 2009. | |||||||||||||||
| No money is spent in 2010 on warranties. Revenue is recognized for the unused | |||||||||||||||
| portion of the warranty on December 31, 2010. | |||||||||||||||
| (check figure: 12/31/2009 entry to unearned extended warranty = $185.00 debit) | |||||||||||||||
| Create the general journal entries to record the four transactions. | |||||||||||||||
In: Accounting
The production costs, in $, per week of producing x widgets is given by C(x)=65000+4x+〖0.2x〗^2-〖0.00002x〗^3 and the demand function for the widgets is given by p=500-0.5x . Find the Marginal Revenue equation. Find the Marginal Cost equation. Find the Marginal Revenue and Marginal Cost for the firm when it is producing 300 widgets. Based on your numbers, would you advise the company to increase, decrease, or make no change to the level of production? Explain why.
In: Math
In: Physics
Monty Industries is considering the purchase of new equipment
costing $1,300,000 to replace existing equipment that will be sold
for $194,000. The new equipment is expected to have a $223,000
salvage value at the end of its 4-year life. During the period of
its use, the equipment will allow the company to produce and sell
an additional 32,600 units annually at a sales price of $27 per
unit. Those units will have a variable cost of $15 per unit. The
company will also incur an additional $70,000 in annual fixed
costs.
Identify the amount and timing of all cash flows related to the
acquisition of the new equipment. (Enter negative
amounts using a negative sign preceding the number e.g. -45 or
parentheses e.g. (45).)
| Cash Flow | Timing | Amount | ||
|---|---|---|---|---|
| Purchase of new equipment | Select a period of time Year 0 Year 1 Year 2 Year 3 Year 4 Years 1-4 | $Enter a dollar amount Enter a dollar amount | ||
| Salvage of old equipment | Select a period of time Year 0 Year 1 Year 2 Year 3 Year 4 Years 1-4 | Enter a dollar amountEnter a dollar amount | ||
| Sales revenue | Select a period of time Year 0 Year 1 Year 2 Year 3 Year 4 Years 1-4 | Enter a dollar amountEnter a dollar amount | ||
| Variable costs | Select a period of time Year 0 Year 1 Year 2 Year 3 Year 4 Years 1-4 | Enter a dollar amountEnter a dollar amount | ||
| Additional fixed costs | Select a period of time Year 0 Year 1 Year 2 Year 3 Year 4 Years 1-4 | Enter a dollar amountEnter a dollar amount | ||
| Salvage of new equipment | Select a period of time Years 1-4 Year 3 Year 1 Year 2 Year 0 Year 4 | Enter a dollar amountEnter a dollar amount |
In: Accounting
Required information [The following information applies to the questions displayed below.] Following are transactions of Danica Company. Dec. 13 Accepted a $11,000, 45-day, 9% note in granting Miranda Lee a time extension on her past-due account receivable. 31 Prepared an adjusting entry to record the accrued interest on the Lee note.
Jan. 27 Received Lee's payment for principal and interest on the note dated December 13.
Mar. 3 Accepted a $5,000, 10%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company. 17 Accepted a $3,000, 30-day, 8% note in granting H. Cheng a time extension on his past-due account receivable.
Apr. 16 H. Cheng dishonored his note.
May 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts.
June 1 Received the Tomas payment for principal and interest on the note dated March 3. Complete the table to calculate the interest amounts and use those calculated values to prepare your journal entries. (Do not round intermediate calculations. Use 360 days a year.)
Complete this question by entering your answers in the tabs below.
Complete the table to calculate the interest amounts.
|
Journal entry worksheet
Note: Enter debits before credits.
|
In: Accounting
Cross selling is a major activity at financial institutions. One regional bank classifies its 100,000 individual customers into 4 groups: a) Basic services (checking, savings accounts), b) Lending (mortgages, loans), c) Investment (mutual funds, bonds), and d) Financial planning (retirement, trusts, comprehensive financial planning).
Customers in each of the four categories generate net (of servicing costs) revenue of $100, $200, $300, and $1,000 per year respectively. Currently the mix of customers is 70%, 10%, 15%, and 5% in the four types. Retention rates are 90% across the board. Retention costs (note: these are different from servicing costs) per account are $80, $120, $150, and $200 respectively per year. In order to improve performance, three major strategies are under consideration:
Increase net revenue per customer by 10% across the board
Change the customer mix to 60%, 15%, 18%, and 7%
Increase retention in Financial planning group to 95%
1.What is the CLV in each of the current customer categories? (Assume a 10% discount rate)
2.What would be the increase in the bank’s average CLV if each of the three suggested strategies were implemented separately? (assuming servicing costs are constant and same discount rate)
Use the formula for computing CLV
In: Accounting
3. Suppose EMU Software is promoting its new tax preparation software. Its main competing
product is Turbotax’s software worth $50. EMU claims that for 30% of the time, its software
identifies additional savings of $110 for their customers compared to its closest competitor.
Also, EMU’s software is easier to use and it takes only 3 hours for its customer to use to
complete all its tax preparations. Turbotax’s software on the other hand takes 4 hours to do
the same. However, EMU Software is a new product and 5% of their customers may
experience a bug in the software. The delay in sorting that bug out will lead to an extra day
required for tax preparation using EMU Software for those customers. Assume that a typical
company accountant who would be hired to use the software earns $40 per hour. Calculate
the total economic value of EMU’s software. Note that one day is 8 working hours. (10
points)
In: Operations Management