Missing Statement Items, Trading Investments
JED Capital Inc., makes investments in trading securities. Selected income statement items for the years ended December 31, Year 2 and Year 3, plus selected items from comparative balance sheets, are shown in the income statement and balance sheet below:
There were no dividends.
Determine the missing items.

In: Accounting
|
Cigarettes/Day |
Death Rate/1000/Year due to CHF |
Death Rate/1000/Year due to CHF |
|
0 |
0.01 |
0.008 |
|
1-14 |
0.27 |
0.11 |
|
15-24 |
1.23 |
1.15 |
|
25+ |
2.00 |
1.50 |
Your quality improvement Team is revisiting the following patient readmissions and would like to predict the number of readmissions based on the number of drugs administered.
In: Statistics and Probability
Homeostatic Case Study
Patient: Mr. Kaunda70-year-old man with
respiratory problems
History: A 70-year-old man with chronic
renal failure was in the hospital in serious condition recovering
from a heart attack. He had just undergone "coronary angioplasty"
to redilate his left coronary artery, and was thus on an "npo" diet
(i.e. he was not allowed to have food or drink by mouth). He
received fluid through an intravenous (IV) line.
Late one night, a new nurse who really did not
understand the concept of osmolarity came into the patient's room
to replace the man's empty IV bag with a new one. Misreading the
physician's orders, he hooked up a fresh bag of IV fluid that was
"twice-normal" saline rather than "half-normal" saline (in other
words, the patient starting receiving a fluid that was four times
saltier than it should have been).
This mistake was not noticed until the following
morning. At that time, Mr. Kaunda had marked pitting edema around
the hip region. He complained that it was difficult to breathe as
well. Blood was drawn, revealing the following:
Na+
159 mEq / liter (Normal = 136-145 mEq / liter)
K+
4.9 mEq / liter (Normal = 3.5-5.0 mEq / liter)
C1-
100 mEq / liter (Normal = 96-106 mEq / liter)
A chest x-ray revealed interstitial edema in the
lungs.
Questions:
Will the interstitial fluid increase or decrease the
"osmolarity"(concentration) due to the nurse's mistake?Which
electrolytes were out of the normal range and in which
direction?
Given your knowledge of osmosis, will the patient’s
cells increase or decrease in size? Explain your
answer.
Can you explain why the patient may have
edema?
What is the function of aldosterone and how will the
increase in osmolarity affect the blood aldosterone
levels?
Is Mr. Kaunda susceptible to hyponatrenia or
hypernatremia? What possible symptoms could Mr. Kaunda develop from
his present (osmotic) condition?
Are there any other normal homeostatic mechanisms that
the body has, to control the situation Kaunda faces? How might it
react in this situation?
In: Anatomy and Physiology
|
Year |
Zero-coupon bond yield (Sport rate) |
Zero-coupon bond price |
1-year implied forward rate |
Par coupon rate |
|
1 |
5% |
a |
||
|
2 |
b |
c |
d |
6% |
Please find out the values of a,b,c and d.
In: Finance
|
Cigarettes/Day |
Death Rate/1000/Year due to CHF |
Death Rate/1000/Year due to CHF |
|
0 |
0.01 |
0.008 |
|
1-14 |
0.27 |
0.11 |
|
15-24 |
1.23 |
1.15 |
|
25+ |
2.00 |
1.50 |
Your quality improvement Team is revisiting the following patient readmissions and would like to predict the number of readmissions based on the number of drugs administered.
In: Math
Years 1-5 Years 6-10 Residual Value
After-tax cash flows $150,000 (each year) $200,000 (each year) $5,000,000
The above table depicts the consensus estimate of free cash flows for Paradise, Inc. What is the intrinsic per-share value of the firm given a required rate of return of 9% and 350,000 shares outstanding? (Assume that the year one through 10 cash flows are received at the end of the year and the residual value is received on January 1 of year 11).
a. $9.92 per share
b. $13.17 per share
c. $12.40 per share
d. $9.15 per share
In: Finance
You have been asked by the CFO of your company to evaluate the proposed expansion project. You collected the following data: Investment outlays: $200,000 ($25,000 for nondepreciable land, $175,000 for equipment) Life of the project: 5 years Depreciation for equipment: Your firm uses an accelerated depreciation method, and the equipment is MACRS (modified accelerated cost recovery system) 3-year property with depreciation rates of 33.33% in Year 1, 44.45% in Year 2, 14.81% in Year 3, and 7.41% in Year 4. Investment in net working capital: $30,000 (= $50,000 in current assets - $20,000 in current liabilities) Annual sales: $220,000 Annual cash operating expenses: $90,000 Income tax rate: 40% At the end of year five, the company will sell off the fixed capital assets for $50,000. At the end of year five, the firm will recover the net working capital investment of $30,000.
What is the total initial investment outlay?
1) $30,000 2) $50,000 3) $200,000 4) $230,000 5) $250,000
What is the depreciation amount in each year?
1) $58,328 in Year 1; $77,788 in Year 2; $25,918 in Year 3; $12,968 in Year 4; 0 in Year 5 2) 0 in Year 1; $58,328 in Year 2; $77,788 in Year 3; $25,918 in Year 4; $12,968 in Year 5 3) $25,918 in Year 1; $77,788 in Year 2; $58,328 in Year 3; $12,968 in Year 4; 0 in Year 5 4) $58,328 in Year 1; $77,788 in Year 2; $45,918 in Year 3; $12,968 in Year 4; $1,000 in Year 5 5) $48,328 in Year 1; $67,788 in Year 2; $35,918 in Year 3; $12,968 in Year 4; $500 in Year 5
What is the total after-tax cash flow in each year?
1) $58,328 in Year 1; $77,788 in Year 2; $25,918 in Year 3; $12,968 in Year 4; $500 in Year 5 2) $101,331 in Year 1; $109,115 in Year 2; $98,367 in Year 3; $93,187 in Year 4; $78,000 in Year 5 3) $43,004 in Year 1; $31,328 in Year 2; $62,450 in Year 3; $70,220 in Year 4; $78,000 in Year 5 4) $71,673 in Year 1; $52,213 in Year 2; $104,083 in Year 3; $117,033 in Year 4; $130,000 in Year 5 5) $101,331 in Year 1; $109,115 in Year 2; $88,367 in Year 3; $83,187 in Year 4; $148,000 in Year 5
What is the modified internal rate of return (MIRR) for the project if the cost of capital is 10%? Would you accept the project under the MIRR rule?
1) Accept the project since the MIRR is 22.71% 2) Accept the project since the MIRR is 15.94% 3) Accept the project since the MIRR is 12.49% 4) Reject the project since the MIRR is 9.53% 5) Reject the project since the MIRR is 9.35%
In: Finance
Calculate the implied forward rates on one-year securties using the unbiased expectations theory. Keep the calculated value in one cell and make it as general as possible, i.e. use formulas such as COUNT, SUM, PRODUCT, etc. (Hint: Use COUNT() for the N value.)
??1=1+1???1+1??−1?−1−1 Nf_1=[(1+1R_N )^N/(1+1R_(N-1) )^(N-1) ]-1
Why is the calculated implied forward rate more than the zero-coupon?
| Zero-Coupon | Implied Forward | |
| 1-year | 0.79% | |
| 2-year | 1.08% | |
| 3-year | 1.33% | |
| 4-year | 1.59% | |
| 5-year | 1.80% | |
| 6-year | 1.96% | |
| 7-year | 2.07% | |
| 8-year | 2.17% | |
| 9-year | 2.25% | |
| 10-year | 2.33% | |
| 11-year | 2.40% | |
| 12-year | 2.45% | |
| 13-year | 2.49% | |
| 14-year | 2.53% | |
| 15-year | 2.55% | |
| 16-year | 2.59% | |
| 17-year | 2.62% | |
| 18-year | 2.67% | |
| 19-year | 2.71% | |
| 20-year | 2.75% | |
| 21-year | 2.80% | |
| 22-year | 2.84% | |
| 23-year | 2.87% | |
| 24-year | 2.90% | |
| 25-year | 2.93% | |
| 26-year | 2.96% | |
| 27-year | 2.98% | |
| 28-year | 3.00% | |
| 29-year | 3.02% | |
| 30-year | 3.03% |
In: Finance
Perdue Company purchased equipment on April 1 for $50,490. The equipment was expected to have a useful life of three years, or 7,560 operating hours, and a residual value of $1,350. The equipment was used for 1,400 hours during Year 1, 2,600 hours in Year 2, 2,300 hours in Year 3, and 1,260 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-activity method, and (c) the double-declining-balance method.
Note: FOR DECLINING BALANCE ONLY, round the multiplier to four decimal places. Then round the answer for each year to the nearest whole dollar.
a. Straight-line method
| Year | Amount |
| Year 1 | $ |
| Year 2 | $ |
| Year 3 | $ |
| Year 4 | $ |
b. Units-of-activity method
| Year | Amount |
| Year 1 | $ |
| Year 2 | $ |
| Year 3 | $ |
| Year 4 | $ |
c. Double-declining-balance method
| Year | Amount |
| Year 1 | $ |
| Year 2 | $ |
| Year 3 | $ |
| Year 4 | $ |
In: Accounting
Depreciation by Three Methods; Partial Years
Perdue Company purchased equipment on April 1 for $270,000. The equipment was expected to have a useful life of three years or 18,000 operating hours, and a residual value of $9,000. The equipment was used for 7,500 hours during Year 1, 5,500 hours in Year 2, 4,000 hours in Year 3, and 1,000 hours in Year 4.
Required:
Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method.
Note: FOR DECLINING BALANCE ONLY, round the answer for each year to the nearest whole dollar.
a. Straight-line method
| Year | Amount |
| Year 1 | $ |
| Year 2 | $ |
| Year 3 | $ |
| Year 4 | $ |
b. Units-of-output method
| Year | Amount |
| Year 1 | $ |
| Year 2 | $ |
| Year 3 | $ |
| Year 4 | $ |
c. Double-declining-balance Method
| Year | Amount |
| Year 1 | $ |
| Year 2 | $ |
| Year 3 | $ |
| Year 4 | $ |
In: Accounting