| (1) | (2) | (3) | |||
| DI | C | DI | C | DI | C |
| $0 | $4 | $0 | $65 | $0 | $2 |
| 10 | 11 | 80 | 125 | 20 | 20 |
| 20 | 18 | 160 | 185 | 40 | 38 |
| 30 | 25 | 240 | 245 | 60 | 56 |
| 40 | 32 | 320 | 305 | 80 | 74 |
| 50 | 39 | 400 | 365 | 100 | 92 |
Refer to the given consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars. At an income level of $40 billion, the average propensity to consume
|
is highest in economy (3). |
||
|
is highest in economy (1). |
||
|
cannot be determined from the data given. |
||
|
is highest in economy (2). |
In: Economics
February Transactions
1-thg 2 Paid six months of rent in advance,
$5,100.
4-thg 2 Paid wages and salaries for $2,180, part of
which was accrued in January.
7-thg 2 Purchased supplies on account, $810
11-thg 2 Performed car repair services on account,
$3,650.
17-thg 2 Collected cash from credit sales made in
January and February, $4,560.
20-thg 2 Made a monthly payment on the equipment note,
$65.
23-thg 2 Performed car repair services and received
cash at the time of sale, $5,430.
25-thg 2 Accrued for the bonus earned by the shop
manager that will be paid in April, $975.
February Adjusting Entries
28-thg 2 The estimated depreciation on building and
equipment is $770.
28-thg 2 One month of rent has expired, $850.
28-thg 2 The annual interest rate is 4% on all notes
and paid quarterly. Round to the nearest dollar.
28-thg 2 The supplies remaining at the end of the month
was $840.
28-thg 2 Accrued wages and salaries worked in February
that will be paid 3-4, $1,940.
28-thg 2 The estimated income taxes for the month is
$505.
In: Accounting
Comprehensive Problem 4
Part 2:
Note: You must complete part 1 before part 2.
After all of the transactions for the year ended December 31, 2016, had been posted [including the transactions recorded in part (1) and all adjusting entries], the data that follows were taken from the records of Equinox Products Inc.
| Income statement data: | |
| Advertising expense | $150,000 |
| Cost of merchandise sold | 3,700,000 |
| Delivery expense | 30,000 |
| Depreciation expense—office buildings and equipment | 30,000 |
| Depreciation expense—store buildings and equipment | 100,000 |
| Dividend revenue | 4,500 |
| Gain on sale of investment | 4,980 |
| Income from Pinkberry Co. investment | 76,800 |
| Income tax expense | 140,500 |
| Interest expense | 21,000 |
| Interest revenue | 2,720 |
| Miscellaneous administrative expense | 7,500 |
| Miscellaneous selling expense | 14,000 |
| Office rent expense | 50,000 |
| Office salaries expense | 170,000 |
| Office supplies expense | 10,000 |
| Sales | 5,254,000 |
| Sales commissions | 185,000 |
| Sales salaries expense | 385,000 |
| Store supplies expense | 21,000 |
| Retained earnings and balance sheet data: | |
| Accounts payable | $194,300 |
| Accounts receivable | 545,000 |
| Accumulated depreciation—office buildings and equipment | 1,580,000 |
| Accumulated depreciation—store buildings and equipment | 4,126,000 |
| Allowance for doubtful accounts | 8,450 |
| Available-for-sale investments (at cost) | 260,130 |
| Bonds payable, 5%, due 2024 | 500,000 |
| Cash | 246,000 |
| Common stock, $20 par (400,000 shares authorized; 100,000 shares issued, 94,600 outstanding) | 2,000,000 |
| Dividends: | |
| Cash dividends for common stock | 155,120 |
| Cash dividends for preferred stock | 100,000 |
| Goodwill | 500,000 |
| Income tax payable | 44,000 |
| Interest receivable | 1,125 |
| Investment in Pinkberry Co. stock (equity method) | 1,009,300 |
| Investment in Dream Inc. bonds (long term) | 90,000 |
| Merchandise inventory (December 31, 2016), at lower of cost (FIFO) or market | 778,000 |
| Office buildings and equipment | 4,320,000 |
| Paid-in capital from sale of treasury stock | 13,000 |
| Excess of issue price over par—common stock | 886,800 |
| Excess of issue price over par—preferred stock | 150,000 |
| Preferred 5% stock, $80 par (30,000 shares authorized; 20,000 shares issued) | 1,600,000 |
| Premium on bonds payable | 19,000 |
| Prepaid expenses | 27,400 |
| Retained earnings, January 1, 2016 | 9,319,725 |
| Store buildings and equipment | 12,560,000 |
| Treasury stock (5,400 shares of common stock at cost of $33 per share) | 178,200 |
| Unrealized gain (loss) on available-for-sale investments | (6,500) |
| Valuation allowance for available-for-sale investments | (6,500) |
On your own paper, in the working papers, or using a spreadsheet, prepare the following:
a. Prepare a multiple-step income statement for the year ended December 31, 2016, concluding with earnings per share. In computing earnings per share, assume that the average number of common shares outstanding was 100,000 and preferred dividends were $100,000. (Round earnings per share to the nearest cent.) Save your calculations and enter the requested amounts below.
b. Prepare a retained earnings statement for the year ended December 31, 2016. Save your calculations and enter the requested amounts below.
c. Prepare a balance sheet in report form as of December 31, 2016. Save your calculations and enter the requested amounts below.
If required, only use the minus sign to indicate net loss before income tax, net loss, or a deficit balance in retained earnings.
| Gross profit | $ |
| Total selling expenses | $ |
| Total administrative expenses | $ |
| Total operating expenses | $ |
| Income from operations | $ |
| Net other expenses and income | $ |
| Income tax | $ |
| Net income | $ |
| Earnings per common share (rounded to the nearest cent) | $ |
| Retained earnings, January 1, 2016 | $ |
| Total current assets | $ |
| Investment in Dream Inc. bonds | $ |
| Total property, plant, and equipment | $ |
| Total assets | $ |
| Total current liabilities | $ |
| Net long-term liabilities | $ |
| Total liabilities | $ |
| Total paid-in capital preferred 5% stock | $ |
| Total paid-in capital common stock, $20 par | $ |
| Total paid-in capital | $ |
| Retained earnings, December 31, 2016 | $ |
| Total stockholders' equity |
In: Accounting
| x | 0 | 1 | 2 | 3 | 4 |
| P(X) | .45 | .3 | .2 | .04 | .01 |
(c) Find the probability that a person has 1 sibling given that they have less than 3 siblings. Hint: Use the conditional formula: P(A|B)=P(A and B)/P(B). In this case A: event of having 1 sibling and B: event of having less than 3 siblings.
(d) Find the probability that a person has at least 1 sibling OR less than 2 siblings. Hint: Use the General Addition Rule: P(A or B)=P(A)+P(B)-P(A and B). In this case A: event of having at least 1 sibling and B: event of having less than 2 siblings.
In: Statistics and Probability
| x (Bins) | frequency |
| 0 | 0 |
| 1 | 0 |
| 2 | 0 |
| 3 | 2 |
| 4 | 5 |
| 5 | 8 |
| 6 | 13 |
| 7 | 33 |
| 8 | 42 |
| 9 | 66 |
| 10 | 77 |
| 11 | 105 |
| 12 | 103 |
| 13 | 110 |
| 14 | 105 |
| 15 | 84 |
| 16 | 70 |
| 17 | 51 |
| 18 | 40 |
| 19 | 27 |
| 20 | 27 |
| 21 | 15 |
| 22 | 5 |
| 23 | 7 |
| 24 | 2 |
| 25 | 2 |
| 26 | 1 |
| 27 | 0 |
| 28 | 0 |
| 29 | 0 |
| 30 | 0 |
(7) On the Histogram worksheet, calculate all frequencies of the distribution using the table shown. (To three decimal places) The relative frequency of all values in the (X ≤ 7) range is ______.
(8) On the Histogram worksheet, calculate all frequencies of the distribution using the table shown. (To three decimal places) The relative frequency of all values in the (9 ≤ X ≤ 18) range is ______.
(9) On the Histogram worksheet, calculate all frequencies of the distribution using the table shown. (To three decimal places) The relative frequency of all values in the (X ≥ 15) range is ______.
(10) On the Histogram worksheet, calculate all frequencies of the distribution using the table shown. (To three decimal places) The relative frequency of all values in the (12 ≤ X < 20) range is ______.
In: Statistics and Probability
Question 2
WEIGHTED AVERAGE METHOD, NONUNIFORM INPUTS, MULTIPLE DEPARTMENTS (LO 1, 2, 3, 4)
Benson Pharmaceuticals uses a process-costing system to compute the unit costs of the over-the-counter cold remedies that it produces. It has three departments: Picking, Encapsulating, and Bottling. In Picking, the ingredients for the cold capsules are measured, sifted, and blended. The mix is transferred out in litre containers. The encapsulating department takes the powdered mix and places it in capsules. One litre of powdered mix converts into 1,500 capsules. After the capsules are filled and polished, they are transferred to Bottling, where they are placed in bottles that are then affixed with a safety seal, lid, and label. Each bottle receives 50 capsules.
During March, the following results are available for the first two departments:
Picking Encapsulating
Beginning inventories:
Physical units 10 litres 4,000
Costs:
Materials $252 $32
Labour $282 $20
Overhead ? ?
Transferred in - $140
Current production:
Transferred out 140 litres 208,000
Ending inventory 20 litres 6,000
Costs:
Materials $3,636 $1,573
Transferred in
Labour $4,618 $1,944
Overhead ? ?
Percentage of completion:
Beginning inventory 40% 50%
Ending inventory 50% 40%
Overhead in both departments is applied as a percentage of direct labour costs. In the picking department, overhead is 200 percent of direct labour. In the encapsulating department, the overhead rate is 150 percent of direct labour.
Required:
1. Prepare a production report for the picking department using the weighted average method. Follow the five steps outlined in the chapter. Round to two decimal places for the unit cost.
2 Prepare a production report for the encapsulating department using the weighed average method Follow the five steps outlined in the chapter. Round to four decimal places for the unit cost.
3 Explain why the weighted average method is easier to use than FIFO Explain when weighted average will give about the same results as FIFO.
In: Accounting
2. Initial Outlay -$5,000 Year 1 $3,000 Year 2 $3,500 Year 3 $3,200 Year 4 $2,800 Year 5 $2,500
a. What is the PI if the discount rate is 20%? Round to the second decimal place. Type only numbers without any unit ($, %, etc.)
b. What is the NPV if the discount rate is 20%? Round to the second decimal place. Type only numbers without any unit ($, %, etc.) If there are multiple answers, then type NA.
c. What is the IRR if the discount rate is 20%? Answer in the percent format. Round to the hundredth decimal place. Type only numbers without any unit ($, %, etc.)
d. What is the EAA if the discount rate is 20%? Round to the penny. Type only numbers without any unit ($, %, etc.)
In: Finance
Tesco is the largest chain of supermarkets in the United Kingdom. The have expanded internationally and have recently also opened stores in Morocco. However, Tesco has since experienced a variety of issues with the Moroccan market. As business development analyst you only see the three following options for Tesco business in Morocco: Today is December 31, 2020. Suppose you have the following information about the financial implications of Tesco’s three strategic options. Option 1: Scale down operations Tesco immediately starts to scale down its operations and plans to eventually leave the Moroccan market effective as of Jan. 01, 2026 (i.e. after 5 more years). At the end of 2021, Tesco operations in Egypt are projected to generate a loss of £10 million. However, due to the effects of scaling down operations and a number of efficiency increases, Tesco estimates a profit of £8,2 million at the end of 2022, which is then expected to increase by 3% on a yearly basis until Dec. 31, 2025. All forecasts for this option are based on assumptions and considered as risky. Option 2: New local partners The NPV of acquiring new local partners has already been calculated for you: £14 million Option 3: Sell business entirely Tesco immediately sells its Moroccan operations to a local investor. The local investor is willing to pay a total £16 million, in three parts of £10 million (today) and £4 million (on Dec. 31, 2021) and £2 million (on Dec. 31, 2022). Since the local investor has also presented a bank guarantee for the whole acquisition price (issued by a well-known British bank), option 3 is considered to be risk-free. The risk-free interest rate is 1,5% EAR. Tesco continuing operations in Morocco are seen as risky and the appropriate risk premium is 7%.
a. Calculate the net present values (NPVs) of options 1 and 3 indicated above.
b. Clearly indicate which option (Option 1, Option 2 or Option 3) should be chosen by Tesco's management, and explain the reasons for your choice in one or two sentences.
In: Finance
Tesco is the largest chain of supermarkets in the United Kingdom. The have expanded internationally and have recently also opened stores in Morocco. However, Tesco has since experienced a variety of issues with the Moroccan market. As business development analyst you only see the three following options for Tesco business in Morocco: Today is December 31, 2020. Suppose you have the following information about the financial implications of Tesco’s three strategic options. Option 1: Scale down operations Tesco immediately starts to scale down its operations and plans to eventually leave the Moroccan market effective as of Jan. 01, 2026 (i.e. after 5 more years). At the end of 2021, Tesco operations in Egypt are projected to generate a loss of £10 million. However, due to the effects of scaling down operations and a number of efficiency increases, Tesco estimates a profit of £8,2 million at the end of 2022, which is then expected to increase by 3% on a yearly basis until Dec. 31, 2025. All forecasts for this option are based on assumptions and considered as risky. Option 2: New local partners The NPV of acquiring new local partners has already been calculated for you: £14 million Option 3: Sell business entirely Tesco immediately sells its Moroccan operations to a local investor. The local investor is willing to pay a total £16 million, in three parts of £10 million (today) and £4 million (on Dec. 31, 2021) and £2 million (on Dec. 31, 2022). Since the local investor has also presented a bank guarantee for the whole acquisition price (issued by a well-known British bank), option 3 is considered to be risk-free. The risk-free interest rate is 1,5% EAR. Tesco continuing operations in Morocco are seen as risky and the appropriate risk premium is 7%.
a. Calculate the net present values (NPVs) of options 1 and 3 indicated above. b. Clearly indicate which option (Option 1, Option 2 or Option 3) should be chosen by Tesco's management, and explain the reasons for your choice in one or two sentences.
In: Finance
In: Chemistry