Depreciation for Partial Periods

Bar Delivery Company purchased a new delivery truck for $36,000 on April 1, 2019. The truck is expected to have a service life of 10 years or 180,000 miles and a residual value of $3,000. The truck was driven 12,000 miles in 2019 and 16,000 miles in 2020. Bar computes depreciation expense to the nearest whole month.

Required:

1. Compute depreciation expense for 2019 and 2020 using the following methods: (Round your answers to the nearest dollar.)
   1. Straight-line method

      2019	$ fill in the blank 1
      2020	$ fill in the blank 2

   2. Sum-of-the-years'-digits method

      2019	$ fill in the blank 3
      2020	$ fill in the blank 4

   3. Double-declining-balance method

      2019	$ fill in the blank 5
      2020	$ fill in the blank 6

   4. Activity method

      2019	$ fill in the blank 7
      2020	$ fill in the blank 8

2. For each method, what is the book value of the machine at the end of 2019? At the end of 2020? (Round your answers to the nearest dollar.)
   1. Straight-line method

      2019	$ fill in the blank 9
      2020	$ fill in the blank 10

   2. Sum-of-the-years'-digits method

      2019	$ fill in the blank 11
      2020	$ fill in the blank 12

   3. Double-declining-balance method

      2019	$ fill in the blank 13
      2020	$ fill in the blank 14

   4. Activity method

      2019	$ fill in the blank 15
      2020	$ fill in the blank 16

Using JAVA and NETBEANS

Assignment Content

1. For this assignment, you will develop "starter" code. After you finish, your code should access an existing text file that you have created, create an input stream, read the contents of the text file, sort and store the contents of the text file into an ArrayList, then write the sorted contents via an output stream to a separate output text file.

   Copy and paste the following Java™ code into a JAVA source file in NetBeans:

   import java.io.BufferedReader;

   import java.io.BufferedWriter;

   public class Datasort {

   public static void main (String [] args) {

   File fin =     // input file

   File fout =   // create an out file

   // Java FileInputStream class obtains input bytes from a file

   FileInputStream fis = new FileInputStream(fin);     

   // buffering characters so as to provide for the efficient reading of characters, arrays, and lines

   BufferedReader in = new BufferedReader(new InputStreamReader(fis));

   // declare an array in-line, ready for the sort

   String aLine;

   ArrayList<String> al = new ArrayList<String> ();

   int i = 0;

   while ((aLine = in.readLine()) != null) {

   // set the sort for values is greater than 0

   Collections.sort(al);   // sorted content to the output file

   {

   System.out.println(s);             

   }

   // close the 2 files                       

   }

   }

   Add code as indicated in the comments.

   Note: Refer to this week's Individual assignment, "Week Three Analyze Assignment," and to Ch. 8, "IO," in OCP: Oracle^® Certified Professional Java^® SE 8 Programmer II Study Guide.

   Run and debug your modified program in NetBeans until it satisfies the requirements described above.

1. A valid contract has four required elements: agreement (offer and acceptance), consideration, capacity, and legality. Even when those four elements are present, there can be a valid defense to a contract’s enforceability. For each of the following, answer whether there is an enforceable contract and explain either why or why not.

Example: Betsy hires Frank to transport a shipment of cocaine for her. Answer: Not an enforceable contract. The element of legality is not satisfied because a contact to commit a crime is illegal.

Example: Johnny offers to buy Keith’s goat for $50. Keith says that he would sell the goat for $55. Answer: Not an enforceable contract because there has been no acceptance. Keith’s answer is a counteroffer to Johnny’s offer.

Example: Tom accepts an oral offer to teach at CSU for Fall Semester 2020 through Fall Semester 2025. No enforceable contract. It is a contract that is required to be in writing because it cannot be performed in one year or less. Because the contract was only oral, it is not enforceable.

1. Johnny sees Smith walking down the road and offers to take him home for $5. Smith agrees. There is no written agreement.
2. A group of students downtown Friday night flag down a cab. The cab stops, they get in, and the driver asks them where they are going. They give him an address. When they arrive, they refuse to pay.
3. Johnny promises to donate an empty building he owns to a school for autistic children. The school has outgrown is present location and is looking forward to occupying the building Johnny has promised to give them. After the school sells its present building, and before they can move in the new building, Johnny gets a fantastic offer for the building and sells it. The school sues, but Johnny contends there was no consideration given by the school, so there could be no enforceable K.
4. Johnny sends Lisa a written contract for the sale of a puppy and gives her until Friday to agree. Lisa mails a written acceptance that is postmarked on the Thursday before the deadline. Johnny receives the acceptance after the deadline.
5. Johnny sells Lisa a washing machine and tells her that “this one’s a real beaut” and “is in his eyes the best in class by a mile”. Lisa buys the machine, but later discovers that the brand Johnny sold her received the worst score on quality from Consumer Reports magazine.

Following data relates to XYZ Company. Based on below data prepare statement of cash flows.
XYZ Co. Ltd.
Balance Sheet
Assets Dec 31, 2009(Rs.) Dec 31, 2010(Rs.)
Cash 135,000 190,000
Marketable Securities 120,000 130,000
A/R & N/R (net) 220,000 250,000
Inventories 300,000 360,000
Investment in stock of subsidiary company 335,000 240,000
Building & Equipment less allowance 800,000 1,040,000
Patents & Goodwill 140,000 36,000
Unamortized bond discount & Issuance cost 30,000 21,600
Total 2,080,000 2,267,600
Liabilities & Equity Dec 31, 2009(Rs.) Dec 31, 2010(Rs.)
Accounts and Notes payable 145,000 180,000
Misc: Accrued liabilities including taxes 65,000 88,200
4% Mortgage Bonds 500,000 400,000
Preferred Stock (Rs. 25par, convertible into two of common) 250,000 240,000
Common Stock (Rs. 10 par) 300,000 432,000
Additional Paid in Capital 200,000 288,000
Retained Earnings 620,000 669,400
Total 2,080,000 2,267,600
In addition to this following information is also available.
1. Stock owned on Mitchell co., a partially owned subsidiary was sold for Rs. 200,000. Stock has original cost
of Rs. 95,000.
2. The entire Goodwill of Rs. 100,000 was written off the books in 2010.
3. The patents have a remaining life of 10 years on Dec 31, 2009 and are being written off over this period.
4. Mortgage bonds mature on July 01, 2010 bonds of Rs. 100,000 were purchased on market at 103½% and
formally cancelled.
5. The decrease in preferred stock outstanding resulted from the exercise of conversion privilege by preferred
stockholders.
6. 10,000 share of common stock were sold during the year at Rs. 18.
7. During the year equipment that cost Rs. 60,000 that had a book value of Rs. 12,000 was sold for Rs.8, 600,
depreciation of Rs 64,000 was taken during the year on building and equipment, balance resulted from
purchase of equipment.
8. The net income for the year transferred to retained earnings was Rs. 99,400.
9. Dividends paid during the year totaled Rs. 50,000
Required:
Prepare Statement of Cash Flows for the year ended December 31, 2010 using indirect method as per the
requirements of IAS-7. Necessary workings must be shown.

An article found that Massachusetts residents spent an average of $860.70 on the lottery in 2010, more than three times the U.S. average (www.businessweek.com, March 14, 2012). A researcher at a Boston think tank believes that Massachusetts residents spend less than this amount. He surveys 100 Massachusetts residents and asks them about their annual expenditures on the lottery.

a. Specify the competing hypotheses to test the researcher’s claim.

• H₀: μ = 860.70; H_A: μ ≠ 860.70

• H₀: μ ≥ 860.70; H_A: μ < 860.70

• H₀: μ ≤ 860.70; H_A: μ > 860.70

b-1. Calculate the value of the test statistic. (Negative value should be indicated by a minus sign. Round intermediate calculations to at least 4 decimal places and final answer to 3 decimal places.)

b-2. Find the p-value.

• p-value < 0.01

• 0.01 ≤ p-value < 0.025

• 0.025 ≤ p-value < 0.05

• 0.05 ≤ p-value < 0.10

• p-value ≥ 0.10

c. At α = 0.10, what is the conclusion?

• Reject H₀; there is insufficient evidence to state that the average Massachusetts resident spent less than $860.70 on the lottery in 2010

• Reject H₀; there is sufficient evidence to state that the average Massachusetts resident spent less than $860.70 on the lottery in 2010

• Do not reject H₀; there is sufficient evidence to state that the average Massachusetts resident spent less than $860.70 on the lottery in 2010

• Do not reject H₀; there is insufficient evidence to state that the average Massachusetts resident spent less than $860.70 on the lottery in 2010

In class we learned about Kate, a bungee jumper with mass ? = 50.0 kg who jumps off a bridge of height ℎ = 25.0 m above a river. After she jumps, the bungee cord – which behaves as an ideal spring with spring constant ? = 28.5 N/m – stretches to a new equilibrium with length ?? = 20.0 m (since this is the new equilibrium, let us refer to it as ? = 0 in Hooke’s law and in the elastic potential energy). Note that I have changed the numbers a bit from the ones in class.
After hanging out at this new equilibrium for a bit, Kate starts to get worried. She yells up to her friend Ken, who is frantically trying to figure out how to hoist her back up. After a couple of hours of this, Kate starts to get hungry. She begs Ken to throw her down a backpack full of provisions with mass ? = 15.0 kg. Ken complies, dropping the bag from the bridge with no initial velocity. Throughout this problem you may neglect all sources of friction or other non-conservative forces.

a) Kate catches the bag when it gets to her. What are the momenta of Kate and the bag just before she catches it? What about after?

b) What is the total energy of Kate plus the bag before and after the collision? Is energy conserved during the process of catching the bag?

c) After Kate catches the bag, the bungee cord starts to stretch. What is her downward speed when she hits the river?

d) Sensing her impending doom, Kate thinks fast and strips off her heavy winter coat, which has a mass of 2.00 kg. Just before she's about to go into the river, she throws the coat downward with all her might. With what speed must she throw the coat to avoid drowning?

In which case did the taxpayer derive assessable income during the year ended 30 June 2020?

Tapley, Inc. can raise up to $5M in new debt at a before-tax cost of 8%. If more debt is required, the initial cost will be 8.5%, and if more than $10M of debt is required, the cost will be 9%.

Tapley has $6.6M in retained earnings. The firm has a flotation expense of 10% when it raises up to $2M in the external equity markets, the flotation costs are 15% above $2M to $4M in the external equity markets, and the flotation expense is 20% above $4M for new outside equity.

Tapley has determined that they may raise: $5M at a debt cost of 8%; above $5M to $10M at a debt cost of 8.5%, and; above $10M at a debt cost of 9%

Tapley has a stock price of $88/share, a current dividend of $4/share, and a growth rate of 10%. Additionally, the flotation expenses it faces in the external markets will be tiered based on the volume of stock it sells and they range from a low of 10% to a middle cost of 15% to a high cost of 20%.

BP_{Debt 1} =$8.33M

BP_{Debt 2} =$16.67M

BP_{New Equity 1} =16.5M

BP_{New Equity 2} =$21.5M

BP_{New Equity 3} =$26.5M

After-tax Cost of Debt with a before tax cost of debt of 8%=5.6%

After-tax Cost of Debt with a before tax cost of debt of 9%=6.3%

After-tax Cost of Debt with a before tax cost of debt of 10%=7.0%

Cost of Equity for Retained Earnings =15%

Cost of Equity with a 10% flotation expense=15.56%

Cost of Equity with a 15% flotation expense =15.88%

Cost of Equity with a 20% flotation expense =16.25%

With all of the data above, please calculate (Show your Work):

WACC₁ =

WACC₂ =

WACC₃ =

WACC₄ =

WACC₅ =

WACC₆ =

Mr. Smith is the CFO of Suffolk Fasteners, Inc. and he is preparing for a meeting with SCC Bank to arrange the financing for the first quarter of 2020. Based on his sales forecast and the information he has provided (as detailed in the Situation below), your job as the company’s new management accountant is to prepare the following budgeted reports for the First Quarter of 2020:

1. Monthly Sales Budget
2. Monthly Production Budget
3. Monthly Direct Materials Budget

Situation:

Suffolk Fasteners, Inc. makes standard-size 2-inch fasteners, which it sells for $155 per thousand. Mr. Smith is the majority owner of the corporation and manages the inventory and finances of the company. He estimates sales for the following months in year 2020 to be:

In 2019, Suffolk Fasteners budgeted sales were $175,000 in November and $232,500 in December (1,500,000 fasteners).

Past history shows that Suffolk Fasteners collects 50 percent of its accounts receivable in the normal 30-day credit period (the month after the sale) and the other 50 percent in 60 days (two months after the sale).It pays for its materials 30 days after receipt. In general, Mr. Smith likes to keep a two-month supply of inventory in anticipation of sales. Inventory at the beginning of December was 2,600,000 units. (This was not equal to his desired two-month supply.)

The major cost of production is the purchase of raw materials in the form of steel rods, which are cut, threaded, and finished. Last year raw material costs were $52 per 1,000 fasteners, but Mr. Smith has just been notified that material costs have risen, effective January 1, to $60 per 1,000 fasteners. Suffolk Fasteners uses FIFO inventory accounting. Labor costs are relatively constant at $20 per thousand fasteners, since workers are paid on a piecework basis. Overhead is allocated at $10 per thousand units, and selling and administrative expense is 20 percent of sales. Labor expense and overhead are direct cash outflows paid in the month incurred, while interest and taxes are paid quarterly.

The corporation usually maintains a minimum cash balance of $25,000, and it puts its excess cash into marketable securities. The average tax rate is 40 percent, and Mr. Smith usually pays out 50 percent of net income in dividends to stockholders. Marketable securities are sold before funds are borrowed when a cash shortage is faced. Ignore the interest on any short-term borrowings. Interest on the long-term debt is paid in March, as are taxes and dividends.

As of year-end, the Suffolk Fasteners budgeted balance sheet was as follows: