A brand of refrigerators, denoted A is guaranteed for 1 year. In a random sample of 50 refrigerators of brand A, 12 were observed to fail before the guarantee period ended. Estimate the true proportions of failures during the guarantee period, with 98% confidence interval. State the conclusion sentence and find the point estimator for the population proportion
In: Statistics and Probability
In: Finance
veal corporation bought a machine at the beginning of the year at the cost of $18,600. The estimated useful life was ten years, and the residual value was $600. Assume that the estimated productive life of the machine is 100,000 units. Annual production for the first 3 years was: 35,000 units in year 1: 25,000 units in year 2: and 18,000 units in year 3.
What is the deprecation cost of the machine? Using the
straight-line method what is the deprecation cost reported in
year1? What is the book value at the end of year 2. Using the units
of production method, what is the depecation cost for year 1? Using
the double declining balance method, what is the book value at the
end of year 1?
In: Accounting
You will be paying $11,400 a year in tuition expenses at the end of the next two years. Bonds currently yield 7%.
a. What is the present value and duration of your obligation? (Do not round intermediate calculations. Round "Present value" to 2 decimal places and "Duration" to 4 decimal places.)
b. What maturity zero-coupon bond would immunize your obligation? (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Face value" to 2 decimal places.)
c. Suppose you buy a zero-coupon bond with value and duration equal to your obligation. Now suppose that rates immediately increase to 8%. What happens to your net position, that is, to the difference between the value of the bond and that of your tuition obligation? (Do not round intermediate calculations. Input the amount as a positive value. Round your answer to 2 decimal places.)
d. What if rates fall immediately to 6%? (Do not round intermediate calculations. Input the amount as a positive value. Round your answer to 2 decimal places.)
In: Finance
Given the information in the table, what is the price of the stock in YEAR 1? Today’s Dividend $3.75 Discount Rate 7.86% Growth rate in dividends 0 to 1 7.53% Growth rate in dividends 1 to 2 8.34% Growth rate in dividends 2 to 3 5.82% Growth rate in dividends 3 onward 4.89%
In: Finance
What is the present value of RM2,400 a year at a discount rate of 8% if the first payment is received 7years from now and you received a total of 25 annual payments?
In: Finance
Payments on a five-year lease valued at $34,000 are to be made at the beginning of every three months. If interest is 11.2% compounded quarterly, what is the size of the quarterly payments?
The size of the quarterly payments is $___.
(Round the final answer to the nearest cent as needed. Round all intermediate values to six decimal places as needed.)
In: Finance
The comparative balance sheets of Larkspur Inc. at the beginning
and the end of the year 2020 are as follows.
|
LARKSPUR INC. |
|||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
|
Dec. 31, 2020 |
Jan. 1, 2020 |
Inc./Dec. |
|||||||||
|
Assets |
|||||||||||
|
Cash |
$ 47,080 | $ 15,080 | $32,000 | Inc. | |||||||
|
Accounts receivable |
95,260 | 90,180 | 5,080 | Inc. | |||||||
|
Equipment |
43,260 | 24,180 | 19,080 | Inc. | |||||||
|
Less: Accumulated Depreciation-Equipment |
21,260 | 11,000 | 10,260 | Inc. | |||||||
|
Total |
$164,340 | $118,440 | |||||||||
|
Liabilities and Stockholders’ Equity |
|||||||||||
|
Accounts payable |
$ 24,260 | $ 17,180 | 7,080 | Inc. | |||||||
|
Common stock |
102,080 | 82,180 | 19,900 | Inc. | |||||||
|
Retained earnings |
38,000 | 19,080 | 18,920 | Inc. | |||||||
|
Total |
$164,340 | $118,440 | |||||||||
Net income of $48,260 was reported, and dividends of $29,340 were
paid in 2020. New equipment was purchased and none was sold.
Prepare a statement of cash flows for the year 2020.
(Show amounts that decrease cash flow with either a -
sign e.g. -15,000 or in parenthesis e.g.
(15,000).)
In: Accounting
The current price of a stock is $50. In 1 year, the price will be either $65 or $35. The annual risk-free rate is 10%. Find the price of a call option on the stock that has an exercise price of $55 and that expires in 1 year. (Hint: Use daily compounding.)
In: Finance
The changes in the current asset and liability accounts for the year are as follows:
Depreciation expense
$48,500
Gain on disposal of equipment
26,900
Net income
577,400
The changes in the current asset and liability accounts for the year are as follows:
Increase (Decrease)
Accounts receivable
$8,190
Inventory
(4,280)
Prepaid insurance
(2,020)
Accounts payable
(7,000)
Income taxes payable
1,390
Dividends payable
2,480
Required:
A.
Prepare the Cash Flows from Operating Activities section of the statement of cash flows <javascript:void(0)>, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.
B.
Briefly explain why net cash flows from operating activities is different from net income.
In: Accounting