You are offered an investment with returns of $ 2,757 in year 1, $ 4,958 in year 2, and $ 4,839 in year 3. The investment will cost you $ 6,064 today. If the appropriate Cost of Capital (quoted interest rate) is 12.2 %, what is the Profitability Index of the investment? Enter your answer to the nearest .01. Do not use the $ sign or commas in your answer. If the NPV is negative, use the - sign.

1. The following is an incomplete pension spreadsheet for the current year for Desperado Corporation.

Required:

1) Complete the pension spreadsheet.

2) Prepare the journal entry to record pension expense for the year.

The company takes a physical inventory count at the end of the year and adjusts their inventory and cost of goods sold if there is a difference between the inventory value determined from the actual count compared to the value in the general ledger. The information below includes the number of units counted in inventory at the end of the year and the purchases of inventory during the month.
Number of units held in the company's inventory at 12/31/2016 based on a count of the inventory was 17,728 units. A listing of purchases during the month of December are as follows:

Date Quantity Purchased Unit Cost Total Cost
12/5/16 15,000 3.75 56,250
12/14/16 6,500 4.00 26,000
12/21/16 7,500 4.50 33,750

The company uses FIFO to account for its inventory cost.
What is the cost of the company's ending inventory (round answer to nearest dollar and show your calculation below for full credit)?

The balance in inventory per the unadjusted trial balance before making any adjustments is $76,730.
What is the amount of the December 31 adjustment to inventory cost (show your calculation below for full credit)?

Complete below the adjusting journal entry necessary for inventory:

The company has estimated, based on historical information, that 4.4% of its accounts receivable will ultimately not be collected. Therefore, they provide an allowance for bad debts at that level.

Calculate the appropriate amount for the allowance at December 31, 2016.

Accounts receivable balance per the unadjusted trial balance 42,400

Estimated allowance amount (Round answer to the nearest dollar and show your calculation below for full credit).

Amount of adjustment needed to the allowance account (Show your calculation below to receive full credit).

Complete below the adjusting journal entry necessary for the allowance for bad debts:

5) On July 31, 2016 the company purchased new warehouse equipment in the amount of $50,000. No depreciation has been recorded yet in 2016 for this new asset. It is estimated to have a useful life of 7 years and a salvage value of $4,700. What is the depreciation expense for 2016 using the straight-line method? (Round answer to the nearest dollar and show your calculation below for full credit).

Complete below the adjusting journal entry necessary for depreciation:

6) The company issued a $75,000 bond dated August 1, 2016 to finance the purchase of warehouse equipment and provide the company additional cash. The bond has a contractual interest rate of 6.7% and was issued at par. The bond matures in 10 years and pays interest on July 31 and January 31 each year. What is the amount of interest to be accrued at December 31, 2016? (Round answer to nearest dollar and show your calculation below for full credit)

Complete below the adjusting journal entry necessary for accrued interest:

A closed-end fund’s NAV is $78 at the beginning of the year and $84 at the end of the year. At the beginning of the year the fund was selling at a 2% premium to NAV, at the end of the year it was selling at a 2% discount to NAV. The fund paid year-end distributions of income and capital gains of $1. What is the rate of the return to an investor, who bought the fund at the beginning of the year? (Provide your answer in percent rounded to two decimals omitting the % sign)

The records at the end of January of the current year for Young Company showed the following for a particular kind of merchandise: Beginning Inventory at FIFO: 14 Units @ $16 = $224 Beginning Inventory at LIFO: 14 Units @ $12 = $168 Transactions Units Unit Cost Total Cost Purchase, January 9 28 $ 14 $ 392 Purchase, January 20 54 19 1,026 Sale, January 21 (at $42 per unit) 37 Sale, January 27 (at $43 per unit) 27

Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods. (Do not round intermediate calculations and round your final answers to 2 decimal places.)

                  Equipment purchased at the beginning of the fiscal year for $455,000 is expected to have a useful life of 5 years, or 15,000 operating hours, and a residual value of $3,000. Compute the depreciation for the first and second years of use by each of the following methods:

(Round the answer to the nearest dollar.)

First Year

                              Second Year

The target value for a watch is to lose no time over a year. A sample of 4 watches had the following time gained (lost) in minutes: (-1, -2, 3, -3). Assume k = $4. Calculate the following:

Round your answers to two decimal places.

Average squared deviation:

Average loss per watch:

Total expected loss for 8,000 watches produced and sold: $

The year is 1947 and the U.S. Senate and House of Representatives are considering legislation to deal with an unsettled labor–management situation affecting the U.S. economy. Since the end of World War II, organized labor and employers have experienced a host of problems. Strikes in the oil, automobile, steel, and coal industries have occurred, causing President Harry Truman to call a national labor–management conference to find a formula for industrial peace. Still, this unsettled labor–management situation greatly strengthened opposition to the Wagner Act Congress passed in 1935.

Since the passage of the Wagner Act, labor unions had insisted on the legality of the closed shop (which demanded that workers be members of a labor union before obtaining a job). Senator Robert Taft of Ohio and Congressman Fred Hartley of New Jersey argued that the equity between organized labor and management intended by the Wagner Act was out of balance. Together they proposed the Labor Management Relations Act to counter what was perceived as the growing power of labor unions. Organized labor vigorously opposed the legislation and President Truman promised to veto the bill. However, on June 23, 1947, after overriding a presidential veto, the Taft-Hartley Act became law.

The concept of reaching a balance between labor and management led to provisions in the bill that dealt with “unfair labor practices” that applied to unions and management. Practices such as refusing to bargain in good faith, engaging in secondary boycotts, stopping work over jurisdictional or interunion disputes, and charging excessive initiation fees to keep members out of a union were considered unfair labor practices. Special rules that allowed the president to call for a “cooling-off” period or waiting period were also written into the law for handling controversies or strikes that could threaten national health or safety. The Taft-Hartley Act also made the closed shop illegal.

Organized labor denounced the entire Taft-Hartley Act as a “slave labor” law. However, unions were particularly troubled with Section 14(b) of the legislation. Section 14(b) enabled states to pass right-to-work laws that would permit limitations on union shop and union security agreements. Labor “affectionately” called the provision “right-to-wreck” laws and promised to fight such legislation in states where it was proposed. To date, 22 states have passed legislation authorizing the open shop agreement in the workplace. Oklahoma was the last state to pass right-to-work legislation in 2001.

A major question that’s been debated since passage of the Taft-Hartley Act is, “Does passage of right-to-work laws make a difference in a state’s economy?” Former Governor Frank Keating of Oklahoma, who supported the right-to-work legislation in his state, says Oklahoma experienced “a blizzard of interest after passage of the right-to-work law.” A study by the Mackinac Center for Public Policy in Michigan states, “right-to-work laws increase labor productivity by requiring labor unions to earn the support of each worker since workers are able to decide for themselves whether or not to pay dues.” Dennis Donovan, a corporate-location consultant in Edison, New Jersey, says that among manufacturers choosing facilities among numerous states, having a right-to-work law is a precondition for about one-third of the companies. Labor unions take an opposite view and claim that workers in right-to-work states earn on average less than union employees and work under less worker-friendly conditions. Unions claim the real purpose of right-to-work laws is to roll back the achievements earned by organized labor. This issue promises to still be strongly debated in this century.

1. If given a choice, would you elect to join a labor union or not join? What are the reasons for your decision?
2. What are today’s protections under the law available to workers?
3. Do you believe that unions have outlived their usefulness? Explain your answer.
4. Oklahoma is a “right-to-work state”. Explain what that means.
5. What is a “right-to-work state”?
6. How do you feel about economic development and growth in Oklahoma or your state?
7. If Oklahoma or your state were not a right-to-work state, would you support a right-to-work law if it were put to a popular vote? Why or why not?

The records at the end of January of the current year for Young Company showed the following for a particular kind of merchandise: Beginning Inventory at FIFO: 14 Units @ $16 = $224 Beginning Inventory at LIFO: 14 Units @ $12 = $168 Transactions Units Unit Cost Total Cost Purchase, January 9 28 $ 14 $ 392 Purchase, January 20 54 19 1,026 Sale, January 21 (at $42 per unit) 37 Sale, January 27 (at $43 per unit) 27 1. Compute the inventory turnover ratio for the month of January under the FIFO and LIFO inventory costing methods.

You will be paying $10,500 a year in tuition expenses at the end of the next two years. Bonds currently yield 8%. 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.) Present value $ Duration years b. What is the duration of a zero-coupon bond that would immunize your obligation and its future redemption value? (Do not round intermediate calculations. Round "Duration" to 4 decimal places and "Future redemption value" to 2 decimal places.) Duration years Future redemption value $ You buy a zero-coupon bond with value and duration equal to your obligation. c-1. Now suppose that rates immediately increase to 9%. What happens to your net position, that is, to the difference between the value of the bond and that of your tuition obligation? (Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.) Net position changes by $ c-2. What if rates fall to 7%? (Enter your answer as a positive value. Do not round intermediate calculations. Round your answer to 2 decimal places.) Net position changes by $