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
| 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
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.
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Journal entry worksheet
Note: Enter debits before credits.
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In: Accounting
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
In: Physics
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
Masters Ltd has just realised that it has a problem with sales data as its sales order system records sales to customers that subsequently fail a credit check. a) What decisions made during the revenue cycle would be affected by this data problem? How can the problem be corrected? __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ b) How would this data problem affect the performance of the revenue cycle? __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ __________________________________________________________________________________ Question 3 continued next page Practice Questions Accounting Systems and Information Assurance - ACCT20072 Page 5 of 7 Question 3 continued Griffith Ltd has just realised that it has a timeliness problem with its general ledger data. It updates daily transactional data from subsidiary systems to the general ledger weekly; however, general ledger reports are available on an unrestricted basis. The CFO recently realised that some users do not know that they need to wait until after the Sunday night update to run their month-end reports. c) What decisions made during the general ledger and financial reporting cycle would potentially be affected by this data problem? ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ ________________________________________________________________ d) How would this data problem affect the reported results of the organisation?
In: Accounting
TPO, an IP telephony company, offers various combinations of handsets and usage plans to its customers under two-year non-cancelable contracts. It offers two handset models: a basic model that it offers free of charge (stand-alone selling price is $150); and the most recent model, which offers additional features and functionalities and for which TPO charges $300 (stand-alone selling price is $600). The entity also offers two usage plans: a 500-minute plan and an 1000- minute plan. The 500-minute plan sells for $50 per month, and the 1000-minute plan sells for $70 per month (which also corresponds to the stand-alone selling price for each plan). Assignment: Create a table showing the various revenue recognition possibilities. There are at least four combinations.
In: Accounting