Question (1)

On January 1, 2010, XYZ Co purchased equipment for $550,000. XYZ expects the

equipment to remain useful for 5 years and to have a residual value of $50,000. The company

uses the straight line method to depreciate its equipment. The company sold the equipment

on January 1, 2012 for $370,000 for cash.

Required:

1. Compute the annual Depreciation expense for each of 2010 and 2011.

2A: Record the journal entry for Depreciation in 2011.

2B: Record the journal entry for the sale of the equipment on January 1, 2012.

The following table gives national income data for Aspacifica.

GDP STATISTICS

            ______________________________________________________

                                             2010/11             2011/12             2012/13

            ______________________________________________________

            Nominal GDP

            ($ billion)                     6,096                6,485                6,745

            Price index

            (2009/10 = 100) 112                   115                   118

         _________________________________________________________

1. Calculate the percentage change in nominal GDP from 2010/11 to 2011/12, and from 2011/12 to 2012/13.
2. Calculate the inflation rate over these two periods.
3. Calculate real GDP in 2009/10 prices for the three years.
4. What are the growth rates of real GDP in 2011/12 and 2012/13?
5. Why are the growth rates in (d) lower than in (a)?

The annual data on stock prices and dividends for Microsoft Corporation(MSFT) is as follows:

Year Price (Beginning of the Year) Price (End of the Year) Dividends (End of the Year )

2005 26.28 28.15 0.29

2006 28.15 30.86 0.33

2007 30.86 32.60 0.37

2008 32.60 17.10 0.41

2009 17.10 28.18 0.46

2010 28.18 27.73 0.55

2011 27.73 29.53 0.68

2012 29.53 27.45 0.83

2013 27.45 37.84 0.97

2014 37.84 46.45 1.15

What will be the IRR if the stock is bought at the beginning of 2010 and sold at the end of 2014?

19.14%

9.72%

13.24%

12.87%

Read Jon Gartner - Rise and fall of GDP (2010). There are free pdf online

and answer the questions

Gertner (2010) discussion questions

1. Why was the GDP concept invented?

2. What does it measure? What does it not measure? What would you like it to measure?

3. Is economic growth a necessary condition for economic development? Is it possible to

improve a nation’s well-being/living standards without economic growth? Explain.

4. Is HDI a good measure of national well-being? Explain why yes/no.

5.If you were to improve GDP and HDI as concepts/measures, how would you

modify/revise these indicators?

The table below contains data on prices and quantities for the economy of Summerville. Fill in the missing cells for nominal GDP, real GDP, the GDP deflator, and the inflation rate. Use 2010 as the base year.

Instructions: Round nominal and real GDP values to two decimal places. Round the GDP deflator and inflation rate values to the nearest whole number.

A rigid, closed container contains 0.0700 mol of Ne(g) and a sample of the solid, ammonium nitirite, NH4NO2. Assume that the volumes of solids are negligible compared to the volume of the container. The pressure of the Ne is meausre at 33 degrees celsius and is found to be .409atm.

The container is then heated to 333 degrees celsius and all of the ammonium nitrite decomposes according to the reaction. NH4NO2(s) --> N2(g) + 2H2O(g)

The Ne is not involved in the reastion and is still present. The final pressure in the container after complete decompostion of the NH4NO2 is 3.93 atm. Assuming ideal gas behavior, answer the following questions.

a. What is the volume of the container, in liters? ____L

b. What is the partial pressure of H2O in the containers, at 333 C, when the reaction is complete?

pH2O=____atm

Furnaces Pty Ltd was advised by a local building inspector that one of the chimneys on its premises was unsafe and, unless it was repaired, the factory would have to be closed. Furnaces decided that it was not feasible to stop operations to repair the chimney, so they gained permission to build an alternative chimney adjacent to the old chimney, thereby allowing production to continue. They found that although the new chimney was substantially the same size and make as the old one, it was cheaper to build than it would have been to repair the old one. Also, the new chimney can better ventilate the weather, which was not available in the previous one. After the new chimney was erected, the old chimney was demolished.

Is any amount allowable as a deduction for the cost of the new chimney?( 500 WORD)

During a soccer match an athlete experiences a violent slide tackle to the fibula. Following examination of this traumatic orthopedic injury, the athlete is suspected to have sustained a closed non-displaced fibular fracture. After providing appropriate treatment, the sports medicine staff decide to transport the injured athlete off the field of play. However, shortly following the initial mechanism of injury the athlete begins to report increasing discomfort throughout the affected area. This continues until the athlete complains of escalating pain significantly out of context to what is expected with such a fracture.

Please answer the following questions:

1. What is the potential prognosis for this case?

2. What would be the appropriate emergency medical care/

3. What is the role of the athletic trainer in managing this situation

Start with the partial model in the file Ch03 P15 Build a Model.xls from the textbook’s
Web site. Joshua & White (J&W) Technologies’s financial statements are also shown
below. Answer the following questions. (Note: Industry average ratios are provided in
Ch03 P15 Build a Model.xls.)
a. Has J&W’s liquidity position improved or worsened? Explain.
b. Has J&W’s ability to manage its assets improved or worsened? Explain.
c. How has J&W’s profitability changed during the last year?
d. Perform an extended Du Pont analysis for J&W for 2009 and 2010. What do
these results tell you?
e. Perform a common size analysis. What has happened to the composition (that is,
percentage in each category) of assets and liabilities?
f. Perform a percentage change analysis. What does this tell you about the change
in profitability and asset utilization?

Joshua & White Technologies: December 31 Balance Sheets
(Thousands of Dollars)
Assets 2010 2009

Liabilities
& Equity 2010 2009

Cash and cash
equivalents $ 21,000 $ 20,000 Accounts payable $ 33,600 $ 32,000
Short-term
investments 3,759 3,240 Accruals 12,600 12,000
Accounts
receivable 52,500 48,000 Notes payable 19,929 6,480
Inventories 84,000 56,000

Total current
liabilities $ 66,129 $ 50,480

Total current
assets $161,259 $127,240

Long-term
debt 67,662 58,320
Net fixed assets 218,400 200,000 Total liabilities $133,791 $108,800
Total assets $379,659 $327,240 Common stock 183,793 178,440

Retained
earnings 62,075 40,000
Total common
equity $245,868 $218,440
Total liabilities
& equity $379,659 $327,240
Joshua & White Technologies December 31 Income Statements
(Thousands of Dollars)

2010 2009
Sales $420,000 $400,000
Expenses excluding depr. & amort. 327,600 320,000
EBITDA $ 92,400 $ 80,000
Depreciation and amortization 19,660 18,000
EBIT $ 72,740 $ 62,000

resource
116 Part 1: Fundamental Concepts of Corporate Finance

2010 2009
Interest expense 5,740 4,460
EBT $67,000 $57,540
Taxes (40%) 26,800 23,016
Net income $40,200 $34,524
Common dividends $18,125 $17,262
Other Data 2010 2009
Year-end stock price $ 90.00 $ 96.00
Number of shares (Thousands) 4,052 4,000
Lease payment (Thousands of Dollars) $20,000 $20,000
Sinking fund payment (Thousands of Dollars) $ 0 $ 0

National Survey of Family Growth 1982-2010

The National Survey of Family Growth (NSFG) provides nationally representative estimates and trends for infertility, surgical sterilization, and fertility among U.S. women and men aged 15-44. The NSFG survey has been administered since 1973, and its latest round in 2006-2010 consisted of 22,682 interviews. Infertility was defined as a lack of pregnancy in the 12 months prior to the survey despite having had unprotected sexual intercourse in each of those months with the same husband or partner. Women were classified as surgically sterile if they had an unreversed sterilizing operation, for example, a tubal sterilization or hysterectomy. Presumed fertile women were based on the residual category of those who did not meet the definitions for surgically sterile or infertile.

1. Using these data and your knowledge, make a testable hypothesis about some aspect of infertility, fertility, or surgical sterilization using the above mentioned data. Identify and count the cases of infertility depending upon age, education, percent of poverty level in the year 2006-2010. Also compare the groups like surgical sterile, infertile and presume fertile. Clearly defined exposure groups, a specific outcome and a stated direction between the exposure and outcome in the years mentioned.