. The Rostinaja Company is incorporated at the beginning of Year One. For convenience, assume that the company earns a reported net income of $130,000 each year and pays an annual cash dividend of

$50,000. The company is authorized to issue 200,000 shares of $3 par value common stock. At the start of Year One, the company issues 40,000 shares of this common stock for $8 per share. At the end of Year

Two, the company buys back 5,000 shares of its own stock for $12 per share. The cost method is used to

record these shares. At the start of Year Three, the company reissues 1,000 of these shares for $14 per

share. At the start of Year Four, the company reissues the remainder of the treasury stock for $9 per share.

a. Prepare the stockholders equity section of this company’s balance sheet as of December 31, Year

One.

b. Prepare the stockholders’ equity section of this company’s balance sheet as of December 31, Year

Two.

c. Prepare the stockholders’ equity section of this company’s balance sheet as of December 31, Year

Three.

d. Prepare the stockholders’ equity section of this company’s balance sheet as of December 31, Year

Four.

You are considering investing in a project in Mexico. The project will be a 2 year project, has an initial cost of 100K USD, and expected after tax profit of 1 million MXP per year. You expect the MXP to be valued at 0.12 USD/MXP.

There are two major risks that you think have the potential to significantly affect project performance, which you assume are independent:

* You think with probability of 0.16 that the MXP will depreciate to 0.1 USD/MXP.
* You also think that with probability of 0.24 the Mexican economy will weaken substantially, in which case the project's after tax annual cash flow will be only 600K MXP.

Your required return on the project is 18%. What is the expected value of the NPV of this project, as measured in USD?

Total doubtful accounts at the end of the year are estimated to be $12,500 based on an aging of accounts receivable. If the balance in the Allowance for Doubtful Accounts is a $3,500 debit before adjustment, what is current year's Bad Debt Expense?

a. You will receive an annuity payment of $1,200 at the end of each year for 6 years. What will be the total value of this stream of income invested at 7% by the time you receive the last payment?

b. How many years of investing $1,200 annually at 9% will it take to reach the goal of $12,000?

c. If you plan to invest $1,200 annually for 9 years, what rate of return is needed to reach your goal of $15,000?

If a company reports positive net income for the year, is it possible for that company to show a net cash "outflow" from operating activities? Explain your answer. Consider the difference between the income statement and the cash flow statement.

What is the regression model for the data? Is this a good model?

Year 2006 = 8,860 Students

2007 = 9,056

2008 = 9,050

2009 = 9,429

2010 = 9,407

2011 = 9,352

2012 = 9,608

2013 = 10,107

2014 = 10,382

2015 = 10,340

2016 = 10,805

2017 = 11,034

2018 = 11,639

You are given the following data

                       Year            HPR of Stock A      HPR of Stock B      HPR of Stock C

                         2017                12%                            16%                         12%

                        2018                 14%                            14%                         14%

                        2019                 16%                            12%                         16%

(1) Calculate expected rate of return for each stock

(2) Calculate standard deviation for each stock

(3) Calculate coefficient of variation for each stock. If you will choose only one stock for investment, which stock will you choose? Why?

(4) How much is correlation coefficient between A and B? between A and C?

(5) Calculate expected rate of return and standard deviation for the portfolio A + B. Assume you invest equal proportion (50%) in each stock

(6) Calculate expected rate of return and standard deviation for the portfolio A+C. Assume you invest equal proportion (50%) in each stock

(7) Which portfolio do you recommend? Why?

Equipment purchased at the beginning of the fiscal year for $840,000 is expected to have a useful life of 10 years, or 400,000 operating hours, and a residual value of $40,000. Compute the depreciation for the first and second years of use by each of the following methods:

a) straight-line

b) units-of-production (10,000 hours first year; 15,000 hours second year)

c) declining-balance at twice the straight-line rate

(Round the answer to the nearest dollar.)

A storage tank acquired at the beginning of the fiscal year at a cost of $104,400 has an estimated residual value of $6,400 and an estimated useful life of four years.

a. Determine the amount of annual depreciation by the straight-line method.
$fill in the blank 1

b. Determine the amount of depreciation for the first and second years computed by the double-declining-balance method. Do not round the double-declining balance rate. If required, round your answers to the nearest dollar.

At the beginning of the​ year, office supplies of $ 900 were on hand. During the​ year, Tempo Air Conditioning Service paid $ 1 comma 000 for more office supplies. At the end of the​ year, Tempo has $ 600 of office supplies on hand.

Read the requirements

LOADING...

.Requirement 1. Record the adjusting entry assuming that

TempoTempo

records the purchase of office supplies by initially debiting an asset account. Post the adjusting entry to the Office Supplies and Supplies Expense​ T-accounts. Make sure to include the beginning balance and purchase of office supplies in the Office Supplies​ T-account.Begin by recording the adjusting entry assuming that

TempoTempo

records office supplies by initially debiting an asset account. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal​ entry.)

Now post the adjusting entry to the Office Supplies and Supplies Expense​ T-accounts.

Enter the beginning balances on the first line of each account. Use a

​"Jan.Jan.

​1" reference to show the beginning balance. Make sure to include the purchase of office supplies in the Office Supplies​ T-account, then post the adjusting entry. Use a​ "Bal." reference to show the ending balance of each account. ​(For accounts with a​ $0 unadjusted​ balance, make sure to enter​ "0" on the normal side of the​ accounts.)

Requirement 2. Record the adjusting entry assuming that

TempoTempo

records the purchase of office supplies by initially debiting an expense account. Post the adjusting entry to the Office Supplies and Supplies Expense​ T-accounts. Make sure to include the beginning balance in the Office Supplies​ T-account, and the purchase of office supplies in the Supplies Expense​ T-account.Begin by recording the adjusting entry assuming that

TempoTempo

records office supplies by initially debiting an expense account. ​(Record debits​ first, then credits. Select the explanation on the last line of the journal​ entry.)

Now post the adjusting entry to the Office Supplies and Supplies Expense​ T-accounts. Make sure to include the beginning balance in the Office Supplies​ T-account, and the purchase of office supplies in the Supplies Expense​ T-account.

Enter the beginning balances on the first line of each account. Use a

​"Jan.Jan.

​1" reference to show the beginning balance. Make sure to include the purchase of office supplies in the Office Supplies​ T-account, then post the adjusting entry. Use a​ "Bal." reference to show the ending balance of each account. ​(For accounts with a​ $0 unadjusted​ balance, make sure to enter​ "0" on the normal side of the​ accounts.)

Requirement 3. Compare the ending balances of the​ T-accounts under both approaches. Are they the​ same?

The ending balances in the Office Supplies account and the Supplies Expense account are

▼

different,

the same,

▼

depending on

regardless of

which of the two approaches is used.

Choose from any list or enter any number in the input fields and then continue to the next question.