Currently, Warren Industries can sell 10 dash year , $1,000 -par-value bonds paying annual interest at a 14% coupon rate. Because current market rates for similar bonds are just under 14%, Warren can sell its bonds for $980 each; Warren will incur flotation costs of $20 per bond. The firm is in the 25 % tax bracket.
a. Find the net proceeds from the sale of the bond, Nd .
b. Calculate the bond's yield to maturity (YTM) to estimate the before-tax and after-tax costs of debt.
c. Use the approximation formula to estimate the before-tax and after-tax costs of debt.
In: Finance
4. Two carts collide and stick together in a lab experiment. Cart 1 has a mass of 550 g and a speed before the collision of 2.5 m/s. Cart 2 has a mass of 320 g and a speed of -4.1 m/s. Consider the 2 carts to be the system.
A. What is the total momentum of the system before the collision?
B. What is the velocity of the 2 carts after the collision?
C. If the collision takes 0.15s, what is the average force and acceleration experienced by each cart? Explain any differences between the answers for the 2 carts.
D. What speed would cart 2 need to have for the carts to be stationary after the collision?
In: Physics
Currently, Warren Industries can sell 20 dash year, $1, 000-par-value bonds paying annual interest at a 11% coupon rate. Because current market rates for similar bonds are just under 11%, Warren can sell its bonds for $1 ,050 each; Warren will incur flotation costs of $30 per bond. The firm is in the 29% tax bracket.
a. Find the net proceeds from the sale of the bond.
b. Calculate the bond's yield to maturity (YTM) to estimate the before-tax and after-tax costs of debt.
c. Use the approximation formula to estimate the before-tax and after-tax costs of debt.
In: Finance
Q1) Create a program that do the following:
1. Asks the user to enter n marks for n students, read the marks and the names and store them in a double linked list.
2. Write a method to find the largest mark and print the name of the student having that mark
3. Write a method to print the content of the list (name, mark)
4. Write a method to search the list for a given mark and prints the result
6. Insert 2 new students to the list (print the list before and after the insertion)
7. Delete any students with the first letter "D" in his name, (print the list before and after the deletion)
Submit .java files only.
In: Computer Science
At December 31, 2019, certain accounts included in the property,
plant, and equipment section of Novak Company’s balance sheet had
the following balances.
| Land | $234,400 | |
| Buildings | 894,700 | |
| Leasehold improvements | 662,800 | |
| Equipment | 881,800 |
During 2020, the following transactions occurred.
| 1. | Land site number 621 was acquired for $852,200. In addition, to acquire the land Novak paid a $54,100 commission to a real estate agent. Costs of $40,800 were incurred to clear the land. During the course of clearing the land, timber and gravel were recovered and sold for $20,800. | |
| 2. | A second tract of land (site number 622) with a building was acquired for $419,500. The closing statement indicated that the land value was $299,600 and the building value was $119,900. Shortly after acquisition, the building was demolished at a cost of $40,700. A new building was constructed for $331,500 plus the following costs. |
| Excavation fees | $37,700 | |
| Architectural design fees | 10,900 | |
| Building permit fee | 2,500 | |
| Imputed interest on funds used during construction (stock financing) | 8,400 |
The building was completed and occupied on September 30,
2020.
| 3. | A third tract of land (site number 623) was acquired for $651,900 and was put on the market for resale. | |
| 4. | During December 2020, costs of $88,800 were incurred to improve leased office space. The related lease will terminate on December 31, 2022, and is not expected to be renewed. (Hint: Leasehold improvements should be handled in the same manner as land improvements.) | |
| 5. | A group of new machines was purchased under a royalty agreement that provides for payment of royalties based on units of production for the machines. The invoice price of the machines was $86,900, freight costs were $3,300, installation costs were $2,400, and royalty payments for 2020 were $17,700. |
(a)
Calculate the balance at December 31, 2020 in each of the following
balance sheet accounts. Disregard the related accumulated
depreciation accounts.
| Balance at December 31, 2020 | ||
|---|---|---|
|
Land |
||
|
Buildings |
||
|
Leasehold Improvements |
||
|
Equipment |
In: Accounting
The following statement of financial position relates to XYZ Ltd for the years ending 30 June 2019 and 30 June 2020.
|
XYZ Ltd Statement of Financial Position As at 30 June |
||
|
2020 |
2019 |
|
|
Cash at Bank |
$ 43,000 |
$ 42,000 |
|
Accounts Receivable |
34,500 |
96,000 |
|
Inventory |
113,500 |
124,000 |
|
Land |
45,000 |
62,500 |
|
Buildings |
265,000 |
137,500 |
|
Accumulated depreciation – Buildings |
(100,000) |
(85,000) |
|
Plant & Equipment |
40,000 |
40,000 |
|
Accumulated depreciation – Plant & Equipment |
(10,000) |
(5,000) |
|
431,000 |
412,000 |
|
|
Accounts Payable |
67,000 |
60,500 |
|
Interest Payable |
250 |
750 |
|
Accrued Employee Expenses |
3,000 |
8,750 |
|
Mortgage loan payable |
66,250 |
45,000 |
|
Share Capital |
125,000 |
125,000 |
|
Asset Revaluation Reserve – Land |
20,000 |
|
|
Retained earnings |
149,500 |
172,000 |
|
431,000 |
412,000 |
|
Additional Information:
Sales Revenue $393,500
Cost of Sales 283,000
Required:
Prepare the statement of cash flows of XYZ Ltd for the year ended 30 June 2020 based on the direct method of presentation. Ignore tax effects. Notes are not required.
In: Accounting
22. Consider a labor market where the demand for a particular category of labor is given by the equation LD = 20 – 2W. Suppose that the supply curve of workers in this market who are also native-born citizens is given by LN = 2W, while the supply curve of immigrants in this market is given by LI = W, where L represents the number of workers, W is the wage expressed in real terms, and the subscripts D, N, and I are used to distinguish between the quantity of labor demanded and the quantity of labor supplied by native-born and immigrant workers.
22a. Find the market-clearing wage and employment level assuming immigration is not allowed. Then find the market-clearing wage and employment level after allowing for immigration. How many native jobs are lost to immigrants?
22b. Compute the real income of native-born workers in this market before and after immigration. How much is the income flow reduced?
22c. Ignoring the cost of capital, compute the total profits of the firms before and after immigration. What is the change in total profits?
22d. Compute the total output of this market before and after immigration. How much total output does society gain because of immigration?
*22e. Taken as a whole, how much would immigrants be willing to pay in real terms for the right to work in this country (i.e., how much do immigrants earn in economic rent)?
*22f. If immigration leads to a large enough increase in output, it is possible that native workers can be kept at least as well off as before immigration without hurting immigrants or the firms. Give an example of a transfer payment scheme that would accomplish this.
22g. What other effects do immigrants have on labor markets that are not captured in this model?
In: Economics
Claytonhill Beverages Ltd. is 100-percent owned by Buzz Bottling. While the company has in the past been profitable, it incurred a loss for the year ended December 31, 2020. The parent company, Buzz Bottling, has indicated that if Claytonhill incurs another loss, it will put the subsidiary up for sale. In response, Claytonhill is looking to expand its market share and therefore its profitability by performing private labelling for a nationwide supermarket chain, ValueFoods Inc. Private labelling involves producing and packaging pop and other non-alcoholic beverages under the ValueFoods label. However, in order to proceed with this endeavour, Claytonhill needs a packaging facility dedicated exclusively to co-packing. To finance this expansion, the company has applied to the Better Business Bank for financing.
The bank has indicated that, before it will approve the loan application, it would like to see audited financial statements for 2020. It also wants to ensure the entity has a current ratio of 2:1.
Claytonhill Beverages has provided you, its new auditor, with the draft (unaudited) financial statements in figure 4.10:
Figure 4.10 Unaudited financial statements for Claytonhill Beverages
| Income Statement for the Year Ended December 31, 2020 (partial) | |
| Revenue | |
| Sales | $2,057,505 |
| Cost of goods sold | 1,445,450 |
| Gross margin | 612,055 |
| Less: | |
| General and administration costs (including bonuses of $100,000) | 775,899 |
| Net loss before tax | $(163,844) |
| Balance Sheet as at December 31, 2020 | |
| Assets | |
| Current assets | |
| Cash | $ 179,825 |
| Accounts receivable, net | 64,475 |
| Prepaid expenses | 3,004 |
| Inventory | 1,507,413 |
| Total current assets | 1,754,717 |
| Property, plant and equipment | |
| Land | 2,004,933 |
| Building, net | 964,224 |
| Office furniture and equipment, net | 85,106 |
| Total property, plant and equipment | 3,054,263 |
| Total assets | $ 4,808,980 |
| Liabilities | |
| Current liabilities | |
| Accounts payable | $ 799,255 |
| Other accrued expenses | 44,875 |
| Warranty provision | 9,456 |
| Current portion long-term debt | 25,000 |
| Total current liabilities | 878,586 |
| Long-term liabilities | |
| Bank loans | 2,200,000 |
| Total long-term liabilities | 2,200,000 |
| Total liabilities | 3,078,586 |
| Equity | |
| Common shares | 248,000 |
| Retained earnings | 1,482,394 |
| Total equity | 1,730,394 |
| Liabilities and equity | $ 4,808,980 |
Calculate the three levels of materiality.
|
Planning Materiality |
$ | |
|---|---|---|
|
Performance Materiality |
$ | |
|
Specific Materiality |
$ |
In: Accounting
Ratchet Company uses budgets in controlling costs. The August 2020 budget report for the company’s Assembling Department is as follows. RATCHET COMPANY Budget Report Assembling Department For the Month Ended August 31, 2020 Difference Manufacturing Costs Budget Actual Favorable Unfavorable Neither Favorable nor Unfavorable Variable costs Direct materials $48,000 $47,000 $1,000 Favorable Direct labor 54,000 51,200 2,800 Favorable Indirect materials 24,000 24,200 200 Unfavorable Indirect labor 18,000 17,500 500 Favorable Utilities 15,000 14,900 100 Favorable Maintenance 12,000 12,400 400 Unfavorable Total variable 171,000 167,200 3,800 Favorable Fixed costs Rent 12,000 12,000 –0– Neither Favorable nor Unfavorable Supervision 17,000 17,000 –0– Neither Favorable nor Unfavorable Depreciation 6,000 6,000 –0– Neither Favorable nor Unfavorable Total fixed 35,000 35,000 –0– Neither Favorable nor Unfavorable Total costs $206,000 $202,200 $3,800 Favorable The monthly budget amounts in the report were based on an expected production of 60,000 units per month or 720,000 units per year. The Assembling Department manager is pleased with the report and expects a raise, or at least praise for a job well done. The company president, however, is unhappy with the results for August because only 58,000 units were produced. (a) State the total monthly budgeted cost formula. (Round cost per unit to 2 decimal places, e.g. 1.25.) The formula is $ + variable costs of $ per unit. (b) Prepare a budget report for August using flexible budget data. (List variable costs before fixed costs.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended August 31, 2020 Difference Budget Actual Costs Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ $ $ $ In September, 64,000 units were produced. Prepare the budget report using flexible budget data, assuming (1) each variable cost was 10% higher than its actual cost in August, and (2) fixed costs were the same in September as in August. (List variable costs before fixed costs.) RATCHET COMPANY Assembling Department Flexible Budget Report For the Month Ended September 30, 2020 Difference Budget Actual Costs Favorable Unfavorable Neither Favorable nor Unfavorable $ $ $ $ $ $
In: Accounting
II-(7 pts) A city wants to know if a new advertising campaign to make citizens aware of the dangers of driving after drinking has been effective. They count the number of drivers who have been stopped with more alcohol in their systems than the law allows for each day of the week in the week before and the week a month after the campaign starts. Let ? be the difference between the number of drivers caught with excessive alcohol in their systems before and after the campaign on each calendar day in any given week. Treat these as a random sample from a Normal (?, ? ଶ ) distribution. Information collected randomly during a week before and a week a month after the campaign indicate a mean difference ?̅= −2 , with a standard deviation ? = 3.162.
a. Obtain a 95% confidence interval for the true average difference in number of drivers stopped with excess alcohol in their systems. (1pt)
b. You are asked by the city administration to study whether the advertising campaign was effective. State in terms of , the relevant null and alternative hypothesis in conducting this study. (1pt)
c. Compute the t statistic for testing ? against ? (1pt)
d. Obtain the p- value for the test (1pt)
e. Do you reject ? at the 5% level? At the 1% level? (1pt)
f. Provide a short summary of your conclusions from this study. Comment on the practical versus statistical significance of this estimate. (2pts)
In: Economics