OKD Company is a trading company. The following financial data are derived from the accounting system in the beginning of April:
| $ | |
| Accounts receivable | 23,000 |
| Inventory | 24,200 |
| Cash (Overdraft) | (7,000) |
| Dividend payable | 1,000 |
| Equipment at cost | 80,000 |
| Accumulated depreciation | 19,200 |
| Long-term note payable 14% | 40,000 |
| Share capital | 40,000 |
| Retained earnings | 20,000 |
The company expects the following results during the second quarter of the year (next three months):
| Sales | Purchases | Expenses including depreciation | |
| $ | $ | $ | |
| April | 150,000 | 100,000 | 20,000 |
| May | 200,000 | 150,000 | 25,000 |
| June | 300,000 | 280,000 | 30,000 |
The company generates all revenues from sales on account and is able to collect all outstanding balances. Its collection pattern is as follows:
80% is collected during the month of sales (a 4% discount is given for payment in this period); and
the remaining 20% is collected in the following month.
The company pays for its purchase made in the month of purchase in order to take advantage of a 10% settlement discount, calculated on the gross purchase amount presented above. Inventory levels are expected to remain constant throughout the quarter. There is no fluctuation in price when the company purchases its inventory. Depreciation rate of the equipment is 12% on cost per year. Expenses are recorded on a monthly basis. Expenses are paid for in the month in which they are incurred. The declared dividend will be paid in April. There is no repayment of the long-term note during the quarter. Interest on the note for the quarter will be paid in June.
A. What is the total cash receipts for the quarter?
B. What is the total cash payments for the quarter?
C. What is the cash balance at the end of the quarter?
D. What is the gross profit for the quarter?
E. What is the net profit for the quarter?
F. What is the total current assets at the end of the quarter?
G. What is the total non-current assets at the end of the quarter?
H. What is the total liabilities at the end of the quarter?
I. What is the total shareholders’ equity at the end of the quarter?
In: Accounting
Is there a relationship between health spending and the development level of the countries? Explain this relationship by comparing the level of development and health spending of countries.
In: Finance
2. Write an investment function (equation) that specifies two components:
a. Autonomous investment spending
b. Induced investment spending
In: Economics
Gleem Sales Corporation uses the perpetual inventory system. On January 1, 2019, Gleem had: 2,600 units of product B with a unit cost of $40 per unit. A summary of purchases and sales during 2019 follows :
|
Unit |
Units |
Units |
|
|
Mar. 8 |
$44 |
3,000 |
|
|
June 13 |
4,000 |
||
|
Sept.19 |
50 |
800 |
|
|
Nov.23 |
55 |
1,200 |
|
|
Dec.28 |
2,800 |
Required
a. Assume that Gleem uses the first-in, first-out
method. Compute the cost of goods sold for 2019 and the
ending inventory balance at December 31, 2019, for product B.
B. Assume that Gleem uses the last-in, first-out
method. Compute the cost of goods sold for 2019 and the
ending inventory balance at December 31, 2019, for product B.
C. Assume that Gleem uses the weighted-average
cost method. Compute the cost of goods sold for 2019 and the ending
inventory balance at December 31, 2019, for product B.
In: Accounting
Suppose the following information (yields are quoted on a bond-equivalent basis) is available:
6-month bill rate = 3.8%
1-year bill rate = 4.2%
What is the implied 6-month forward rate six months from now on a bond-equivalent basis?
In: Finance
Please answer with steps for BA II finc. calculator (not excel steps)
a. You anticipate that you will need $1,500,000 when you retire 30 years from now. You just join a new firm and your first annual salary is $100,000 to be received one year from today. You also received one time signing bonus of $50,000 today. You decided that you will put all you signing bonus into your account plus you will contribute $X every year starting next year for the next 29 years. In other words, after your initial deposit of $50,000, your first payment will be made on year 1 and last payment will be on year 29. How much is $X if you want to have $1,500,000 in Year 30. Assume that interest rate is 8%, compounded annual during this duration.
b. You are saving for your child's education since you did not participate in the Texas Tomorrow Fund. Your child is five-year-old today. Starting next quarter, you will deposit $300 every quarter until you child turns 17. Your last payment will be on his 17th year.You can to withdraw $X every year starting his 18th birthday for 4 years (first payment on his 18th birthday). Assuming you have investing your money in an account is provides 12% return, and the interest is compounded daily (365 days), what is X?
In: Finance
Fairfax Paint just borrowed 62,900 dollars. The terms of the loan require the company to make equal semi-annual payments forever. The first semi-annual payment is due in 6 months. If the regular semi-annual loan payment is 4,450 dollars, then what is the EAR of the loan? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
Caruso is planning to save 4,924.24 dollars every quarter for 12 years. He plans to make his first savings contribution in 3 months from today. If he currently has 6,925 dollars and expects to have 459,539.77 dollars in 12 years from today, then what is the EAR that he expects to earn? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098
Buck is planning to save $63.65 every six months for 7 years. He plans to make his first savings contribution later today. If he currently has $423.73 saved and expects to have $2,125.26 in 7 years from today, then what is the EAR that he expects to earn? Answer as a rate in decimal format so that 12.34% would be entered as .1234 and 0.98% would be entered as .0098.
Tanner owns an investment that is expected to pay him 3,410 dollars per quarter forever with the next payment of 3,410 dollars expected in 3 months from today. The investment has an annual return of 5.44 percent. What is the value of the investment?
In: Finance
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||
| Total cash receipts | $ | 280,000 | $ | 400,000 | $ | 330,000 | $ | 350,000 |
| Total cash disbursements | $ | 344,000 | $ | 314,000 | $ | 304,000 | $ | 324,000 |
The company’s beginning cash balance for the upcoming fiscal year
will be $45,000. The company requires a minimum cash balance of
$10,000 and may borrow any amount needed from a local bank at a
quarterly interest rate of 3%. The company may borrow any amount at
the beginning of any quarter and may repay its loans, or any part
of its loans, at the end of any quarter. Interest payments are due
on any principal at the time it is repaid. For simplicity, assume
that interest is not compounded.
Required:
Prepare the company’s cash budget for the upcoming fiscal year. (Repayments, and interest, should be indicated by a minus sign.)
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||
| Total cash receipts | $ | 280,000 | $ | 400,000 | $ | 330,000 | $ | 350,000 |
| Total cash disbursements | $ | 344,000 | $ | 314,000 | $ | 304,000 | $ | 324,000 |
The company’s beginning cash balance for the upcoming fiscal year
will be $45,000. The company requires a minimum cash balance of
$10,000 and may borrow any amount needed from a local bank at a
quarterly interest rate of 3%. The company may borrow any amount at
the beginning of any quarter and may repay its loans, or any part
of its loans, at the end of any quarter. Interest payments are due
on any principal at the time it is repaid. For simplicity, assume
that interest is not compounded.
Required:
Prepare the company’s cash budget for the upcoming fiscal year. (Repayments, and interest, should be indicated by a minus sign.)
Garden Depot is a retailer that is preparing its budget for the upcoming fiscal year. Management has prepared the following summary of its budgeted cash flows:
| 1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | |||||
| Total cash receipts | $ | 280,000 | $ | 400,000 | $ | 330,000 | $ | 350,000 |
| Total cash disbursements | $ | 344,000 | $ | 314,000 | $ | 304,000 | $ | 324,000 |
The company’s beginning cash balance for the upcoming fiscal year
will be $45,000. The company requires a minimum cash balance of
$10,000 and may borrow any amount needed from a local bank at a
quarterly interest rate of 3%. The company may borrow any amount at
the beginning of any quarter and may repay its loans, or any part
of its loans, at the end of any quarter. Interest payments are due
on any principal at the time it is repaid. For simplicity, assume
that interest is not compounded.
Required:
Prepare the company’s cash budget for the upcoming fiscal year. (Repayments, and interest, should be indicated by a minus sign.)
In: Accounting
At Brokerage firms, Customer satisfaction (dependent variable) is thought to be a function of speed of transactions and the size of the company (independent variables). Using excel determine the additional satisfaction rating that a customer derives from working with a large (L) company. Enter the increase in the satisfaction rating below.
(Note: ignore the p-value associated with customer size for this analysis.)
| Brokerage | Size | Speed | Overall Sat |
| Scottrade, Inc. | S | 3.4 | 3.5 |
| Charles Schwab | S | 3.3 | 3.4 |
| Fidelity Brokerage Services | L | 3.4 | 3.9 |
| TD Ameritrade | L | 3.6 | 3.6 |
| E*Trade Financial | S | 3.2 | 2.9 |
| (Not listed) | L | 3.2 | 2.7 |
| Vanguard Brokerage Services | S | 3.8 | 2.8 |
| USAA Brokerage Services | S | 3.8 | 3.6 |
| Thinkorswim | L | 2.6 | 2.6 |
| Banc of America Investment Services | L | 1.0 | 2.0 |
In: Statistics and Probability
In order to map whether the salmon in a cage in a farm is
approaching the harvesting mode, a random sample has been made
where we have weighed 10 randomly selected salmon in the cage. The
result (in kg) was:
3.3 3.6 3.7 3.9 1.6 3.4 3.8 3.8 4.1 3.9
a) Enter the numbers in a data vector in R, and then calculate the
mean, median, sample variance
and sample standard deviations of the data.
b) Create a box plot and histogram of the data.
It turned out that one salmon that was much smaller than the others
was sick. Therefore, it is chosen to remove this from the data so
that the data becomes representative of healthy salmon in the
cage.
c) Calculate the mean, median, sample variance and sample standard
deviation of the data without the least value.
Comment on differences and similarities between the results you get
now and the results you got in point a).
In: Statistics and Probability