Answer__________________

1. What is the amount of stockholder’s equity at the beginning of the year?

__________________

2. What was the amount of change in stockholders’ equity during the year?

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4 The ending retained earnings balance of Max's Italian Restaurant chain increased by $9.5 million from the beginning of the year. The company had declared a dividend of $2.5 million during the year. What was the net income earned during the year?

Net income________________

1. What is the future value at the end of year 18 of $10,000 deposited today into an account that pays interest of 4.5% p.a., but with daily compounding (assume 365 days per year)?

2. Ellie is evaluating an investment that will provide the following returns at the end of each of the following years: year 1, $11,500; year 2, $10,000; year 3, $7,500; year 4, $5,000; year 5, $2,500; year 6, $0; and year 7, $12,500. Ellie believes that she should earn an annual rate of 8 percent on this investment. How much should Ellie pay for this investment?

Harris Machinery received a demand loan of $180,000. It repaid $70,000 at the end of the first year, $90,000 at the end of the second year, and the balance at the end of the third year. The interest rate charged on the loan was 5.75% compounded semi-annually during the first year, 5.50% compounded quarterly during the second year, and 4.75% compounded monthly during the third year.

a. What was the balance of the loan at the end of the first year?

Round to the nearest cent

b. What was the balance of the loan at the end of the second year?

Round to the nearest cent

c. What amount at the end of the third year will settle the loan?

A recent edition of The Wall Street Journal reported interest rates of 6.2 percent, 6.55 percent, 6.85 percent, and 6.95 percent for three-year, four-year, five-year, and six-year Treasury notes, respectively. According to the unbiased expectations theory, what are the expected one-year rates for years 4, 5, and 6 (i.e., what are 4f1, 5f1, and 6f1)? (Do not round intermediate calculations. Round your answers to 2 decimal places. (e.g., 32.16))

Bay Properties is considering starting a commercial real estate division. It has prepared the following​ four-year forecast of free cash flows for this​ division:

Assume cash flows after year 4 will grow at 5 % per​ year, forever. If the cost of capital for this division is 8 %​,

a. what is the continuation value in year 4 for cash flows after year​ 4?

b. What is the value today of this​ division?

Please answer both questions and show all work!

What is the discounted payback period on Versace's proposed investment in a new line of fashion clothes? The expected cash flows appear below. Note that year 0 and year 1 cash flows are negative. (Answer in years; round to 2 decimals)

Year 0 cash flow = -95,000
Year 1 cash flow = -18,000
Year 2 cash flow = 50,000
Year 3 cash flow = 49,000
Year 4 cash flow = 54,000
Year 5 cash flow = 45,000
Year 6 cash flow = 46,000


Required rate of return = 14.00%

Trevor is a single individual who is a cash-method, calendar-year taxpayer. For each of the next two years (year 1 and year 2), Trevor expects to report AGI of $104,000, contribute $8,450 to charity, and pay $3,400 in state income taxes.

Required:

1. Estimate Trevor’s taxable income for year 1 and year 2 using the 2019 amounts for the standard deduction for both years.
2. Now assume that Trevor combines his anticipated charitable contributions for the next two years and makes the combined contribution in December of year 1. Estimate Trevor’s taxable income for each of the next two years using the 2019 amounts for the standard deduction.
3. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $3,200 and $28,000, respectively, each year. Estimate Trevor’s taxable income for each of the next two years (year 1 and year 2) using the 2019 amounts for the standard deduction and also assuming Trevor makes the charitable contribution of $8,450 and state tax payments of $3,400 in each year.
4. Trevor plans to purchase a residence next year, and he estimates that additional property taxes and residential interest will cost $3,200 and $28,000, respectively, each year. Assume that Trevor makes the charitable contribution for year 2 and pays the real estate taxes for year 2 in December of year 1. Estimate Trevor’s taxable income for year 1 and year 2 using the 2019 amounts for the standard deduction.

Nippon Steel’s expenses for heating and cooling a large manufacturing facility are expected to increase according to an arithmetic gradient beginning in year 2. If the cost is $550,000 this year (year 0) and will be $550,000 again in year 1, but then it is estimated to increase by $59,000 each year through year 12, what is the equivalent annual worth in years 1 to 12 of these energy costs at an interest rate of 13% per year?

1. The maintenance cost for a certain machine is 1500 TL per year for the first 5 years (from n=1 to n=5), 2200 TL in year 6, and from year 7 until year 35 the maintenance cost per year increases 6% with respect to the amount of the previous year. At an interest rate of 8% per year, what is the equivalent equal payment series?