Questions
A brand of refrigerators, denoted A is guaranteed for 1 year. In a random sample of...

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

If a merchant deposits $ 1500 annually at the end of each fiscal year into a...

If a merchant deposits $ 1500 annually at the end of each fiscal year into a retirement account that pays interest at a rate of 8% per year compounded annually, how much money will he have in his account at the end of 25 years?

In: Finance

veal corporation bought a machine at the beginning of the year at the cost of $18,600....

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...

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?...

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...

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...

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...

The comparative balance sheets of Larkspur Inc. at the beginning and the end of the year 2020 are as follows.

LARKSPUR INC.
BALANCE SHEETS

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...

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...

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