Questions
Her Company purchased 16,000 common shares (20%) of Him Inc. on January 1, Year 4, for...

Her Company purchased 16,000 common shares (20%) of Him Inc. on January 1, Year 4, for $272,000. Additional information on Him for the three years ending December 31, Year 6, is as follows:

Year Net Income Dividends
Paid
Market Value
per Share at
December 31
Year 4 $160,000 $120,000 $18
Year 5 180,000 128,000 20
Year 6 192,000 140,000 23

On December 31, Year 6, Her sold its investment in Him for $368,000.

Required:

(a) Compute the balance in the investment account at the end of Year 5, assuming that the investment is classified as

(i) FVTPL

(ii) Investment in associate

(iii) FVTOCI

(b) Calculate how much income will be reported in net income and other comprehensive income in each of Years 4, 5, and 6, and in total for the three years assuming that the investment is classified as (Leave no cells blank - be certain to enter "0" wherever required. Omit $ sign in your response.)

(i) FVTPL

Year 4 Year 5 Year 6 Total
Dividend income $ $ $ $
Unrealized gains
Gain on sale
Net income $ $ $ $
Total OCI

(ii) Investment in associate

Year 4 Year 5 Year 6 Total
Equity income $ $ $ $
Gain on sale
Net income $ $ $ $
Total OCI

(iii) FVTOCI

Year 4 Year 5 Year 6 Total
Dividend income $ $ $ $
Gain on sale
Net income $ $ $ $
Other comprehensive income
Unrealized gain $ $ $
Gain on sale
Total other comprehensive income
Comprehensive income $ $ $ $

In: Accounting

a)The yields of four zero-coupon bonds of varying maturities are as follows: Maturity YTM 1 6.1%...

a)The yields of four zero-coupon bonds of varying maturities are as follows: Maturity YTM 1 6.1% 2 6.2% 3 6.3% 4 6.4% If you expect the implied term structure to be the same next year as it is this year, what is the expected return on the 2-year zero coupon bond over the coming year? Please express your answer in percent, rounded to the nearest basis point.

b)The maturities and yields of three zero-coupon bonds are as follows:

Maturity YTM
1 4%
2 5%
3 6%

Next year, you expect the yields on zero-coupon bonds to be as follows:

Maturity YTM
1 5%
2 6%
3 7%

c)What is your expectation of the rate of return on a 3-year zero-coupon bond over the coming year? Please express your answer in percent rounded to the nearest basis point.

d)The 1-year rate is currently 2%, and the expected 1-year rate a year from now is 1%. If the liquidity preference theory holds and the liquidity premium for the 2-year rate is 1.0%, what should the 2-year rate be? (Assume that the liquidity premium for the 1-year rate is 0.0%) Please express your answer in percent rounded to the nearest basis point.

If the 1-year rate is currently 3%, and the 2-year rate is 4.5%, what is the expected 1-year rate a year from now if the expectations hypothesis holds? Please express your answer in percent rounded to the nearest basis point.

In: Finance

What is the inventory carrying cost per unit per year for this item?

For a certain item, the cost-minimizing order quantity obtained with the basic EOQ model is 200 units, and the total annual inventory (carrying and setup) cost is $600. What is the inventory carrying cost per unit per year for this item?

 

In: Operations Management

Based on these data, calculate Patton Corporation’s working capital for Year 2.

Patton Corporation had the following items on its financial statements for two recent years: Year 2 Year 1 Sales $2,500,000 $2,000,000 Cost of goods sold 1,975,000 1,600,000 Cash 500,000 475,000 Temporary investments 150,000 150,000 Accounts receivable (net) 200,000 175,000 Inventory 325,000 300,000 Accounts payable 450,000 400,000

Based on these data, calculate Patton Corporation’s working capital for Year 2.

A) $725,000

b) $1,625,000

c) $2,050,000

d) None of these choices are correct.

In: Accounting

At the end of the year, Mercy Cosmetics' balance of Allowance for Uncollectible Accounts is $600...


At the end of the year, Mercy Cosmetics' balance of Allowance for Uncollectible Accounts is $600 (debit, before adjustment. The balance of Accounts Receivable is $25,000. The company estimates that 12% of accounts will not be collected over the next year


What is the adjustment Mercy Cosmetics would record for Allowance for Uncollectible Accounts? (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.) 


At the end of the year, Mercy Cosmetics balance of Allowance for Uncollectible Accounts is $600 (debit, before adjustment. T

In: Accounting

Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company...


Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that t

Winston Company estimates that the factory overhead for the following year will be $1,250,000. The company has decided that the basis for applying factory overhead should be machine hours, which is estimated to be 50,000 hours. The total machine hours for the year were 54,300 hours. The actual factory overhead for the year was $1,375,000. 

a. Determine the total factory overhead amount applied. 

b. Compute the over- or underapplied amount for the year

c. Journalize the entry to transfer the over- or underapplied factory overhead to cost of goods sold. If an amount box does not require an entry, leave it blank.

In: Accounting

Roman is a 63 year old male with a history of alcoholism. He presents with a...

Roman is a 63 year old male with a history of alcoholism. He presents with a erythematous, shiny, raised, hardened but tender plaque on his left cheek and nose. The plaque has a distinct border. Romansays that he woke up two days ago feeling “a little off” and experienced chills throughout the day. The facial rash progressively worsened yesterday. His temperature is elevated (39°C or 102.2°F). A sample is collected from one of the lesions, however, no obviously pathogenic organisms grow in culture. Bloodwork reveals leukocytosis and an elevated erythrocyte sedimentation rate. Roman is allergic to penicillin and sulfonamides- he gets hives when taking either.

Which organism is infecting this patient? Explain your reasoning.

What is this disease called?

How would you treat it?

What is the prognosis of this disease?

In: Nursing

A 20-year bond with a face value of P5,000 is offered for sale at P3,800. The...

A 20-year bond with a face value of P5,000 is offered for sale at P3,800. The rate of
interest on the bond is 7%, paid semiannually. This bond is now 10 years old (the owner
has received 20 semiannual interest payments). If the bond is purchased for P3, 800,
what effective rate of interest would be realized on this investment opportunity?

In: Finance

At the end of each year for ten years you deposit $750 in an account that...

At the end of each year for ten years you deposit $750 in an account that earns an annual rate of return of 12%. What is the present value of these deposits?

In: Finance

XYZ corp is expected to pay dividends of $2.00 at the end of every year for...

XYZ corp is expected to pay dividends of $2.00 at the end of every year for the next 3 years. If the current price of XYZ corp is $20, and XYZ’s equity cost of capital is 25%, what price would you expect XYZ’s stock to sell for at the end of three years (immediately after the third dividend is paid)?

A- $39.06

B- $31.44

C- $16.10

D- $20.00

In: Finance