It is the end of the financial year and your client is XYZ company. From the following file note summary prepare an evaluation report.
File note summary XYZ company. Financial potential $33,000 annually for the previous three years. Accumulated surplus $100,000. Statutory requirements: prepare and lodge BAS and IT. Compilation assurance. Reports provided by XYZ’s CEO. Preference to invest in government bonds. No contingency cash expected.
In: Accounting
The table below shows the number of deaths in the U.S. in a year due to a variety of causes. For these questions, assume these values are not changing from year to year, and that the population of the United States is 312 million people.
| Cause | Deaths |
| Passenger car occupant (driver or rider) | 13,100 |
| Motorcycle (driver or rider) | 4,500 |
| Tornado | 553 |
| Skydiving | 56 |
a) What is the probability that an American chosen at random died as a passenger car occupant last year?
b) What is the probability that you died as a passenger car occupant last year?
d) What is the probability that an American chosen at random will die as the result of a tornado next year?
g) People sometimes claim skydiving is less dangerous than driving or riding in a car. Does the data support this claim? Explain.
h) People sometimes claim motorcycle riding is less dangerous than traveling by car. Does the data support this claim? What additional information and/or calculations would be useful to evaluate this claim?
Give your answer as a fraction or decimal. If decimal, make sure your answer is accurate to at least 2 significant figures (values after leading zeros)
In: Statistics and Probability
Suppose the following are the seasonal indices for the first
three quarters of the year for a quarterly series:
|
Quarter |
Seasonal Index |
|
Q1 |
71.7 |
|
Q2 |
84.7 |
|
Q3 |
107.1 |
Remember that the seasonal indices should average 100 so you should
be able to infer the seasonal index for Q4.
Furthermore, suppose that the estimated coeffcients from a
regression of the deseasonalized series on Time are given
below:
|
Coefficients |
|
|
Intercept |
2,215 |
|
Time |
75.9 |
What is the trend projection of the series for period 43? (please
round your answer to 1 decimal place)
5 points
Question 28
Suppose the following are the seasonal indices for the first
three quarters of the year for a quarterly series:
|
Quarter |
Seasonal Index |
|
Q1 |
70.7 |
|
Q2 |
89.8 |
|
Q3 |
105.9 |
Remember that the seasonal indices should average 100 so you should
be able to infer the seasonal index for Q4.
Furthermore, suppose that the estimated coeffcients from a
regression of the deseasonalized series on Time are given
below:
|
Coefficients |
|
|
Intercept |
2,922 |
|
Time |
66.1 |
What is the forecast for period 111, if period 111 is a Q1? (please
round your answer to 1 decimal place)
In: Statistics and Probability
$100 is received at the beginning of year 1, $200 is received at the beginning of year 2, and $300 is received at the beginning of year 3. If these cash flows are invested at 12 percent, what will their future value be at the end of year 3?
What is the present value of a $25,000 perpetuity be if the discount rate (required rate of return) is 14 percent? (HINT: Excel does not have a built-in formula for perpetuity. You will need to use the formula for the present value of a perpetuity.)
Bill plans to fund his individual retirement account (IRA) with the maximum contribution of $2,000 at the end of each year for the next 20 years. If Bill expects to earn 12 percent on his contributions, how much will he have at the end of the twentieth year?
In: Finance
In situations where the required rate of return is not constant for each year of the project, it is advantageous to use
A. The adjusted rate-of-return method
B. The internal rate-of-return method
C. The net present value method
D. Sensitivity analysis
In: Accounting
Junkyard arts inc has earnings of $316,000 for the year.The company had 40,000 shares of common stock outstanding during the year and issued 15,000 shares of $50 par value preferred stock. The Preferred stock has a dividend of $1.60 per share.There were no transactions in either common or preferred stock during the year
Determine the basic earnings per share for Junkyard arts for the year
In: Accounting
If you have a four year bond with a coupon of 7% and a YTM of 5% verify that investing in this bond for the period of the bond’s Macauly duration results in no change to the overall future value of your cash flows if interest rates fall by 1%. Show all calculations.
In: Finance
Using Excel (if applicable),
Apple is now at the end of the final year of their new iPhone project. The equipment originally cost $550,000, of which 80% has been depreciated. Apple can sell the used equipment today for $100,000, and its tax rate is 21%. Will the company pay tax or receive a tax credit and how much?
In: Finance
Suppose that there is a perpetuity that pays $1,000 per year and that the appropriate discount rate is 5%.
In: Finance
At the end of the year, a company offered to buy 4,320 units of a product from X Company for $12.00 each instead of the company's regular price of $17.00 each. The following income statement is for the 69,400 units of the product that X Company has already made and sold to its regular customers:
Sales $1,179,800
Cost of goods sold 595,452
Gross margin $584,348
Selling and administrative costs 183,216
Profit $401,132
For the year, variable cost of goods sold were $464,286, and variable selling and administrative costs were $86,056. The special order product has some unique features that will require additional material costs of $0.75 per unit and the rental of special equipment for $2,000.
1. Profit on the special order would be
2. The marketing manager thinks that if X Company accepts the special order, regular customers will be lost unless the selling price for them is reduced by $0.16. The effect of reducing the selling price will be to decrease firm profits by
In: Accounting