Goodwill is typically evaluated to impairment loss at least once a year. Why is this? An example would be greatly appreciated!
I'm currently taking Intermediate Accounting 2.
In: Accounting
More time on the Internet: A researcher polled a sample of 1097 adults in the year 2010, asking them how many hours per week they spent on the Internet. The sample mean was 9.42 with a standard deviation of 13.23. A second sample of 1031 adults was taken in the year 2012. For this sample, the mean was 10.63 with a standard deviation of 14.47. Assume these are simple random samples from populations of adults. Can you conclude that the mean number of hours per week spent on the Internet increased between 2010 and 2012? Let μ1 denote the mean number of hours spent on the Internet in 2010 and μ2 denote the mean number of hours spent on the Internet in 2012. Use the =α0.05 level and the P-value method with the table. Part 1 of 6 Your Answer is correct State the appropriate null and alternate hypotheses. H0:=μ1μ2 H1:<μ1μ2 This is a ▼left-tailed test. Part 2 of 6 Your Answer is correct Compute the test statistic. Round the answer to three decimal places. =t −2.01 Part 3 of 6 Your Answer is incorrect How many degrees of freedom are there, using the simple method? The degrees of freedom using the simple method is 1.646. Correct Answer: The degrees of freedom using the simple method is 1030. Part: 3 / 63 of 6 Parts Complete Part 4 of 6 Estimate the P-value. Identify the form of the interval based on Critical Values for the Student's t Distribution Table. ≤p <≤p >p
In: Statistics and Probability
11. Suppose a firm is expected to increase dividends by 10% in one year and by 15% in two years. After that, dividends will increase at a rate of 6% per year indefinitely. If the current dividend is $1.05 and the required return is 7.5%, what is the price of the stock?
In: Finance
| The City of Lynnwood was recently incorporated and had the following transactions for the fiscal year ended December 31, 2017. |
| 1. |
The city council adopted a General Fund budget for the fiscal year. Revenues were estimated at $2,050,000 and appropriations were $1,995,000. |
| 2. |
Property taxes in the amount of $1,990,000 were levied. It is estimated that $11,500 of the taxes levied will be uncollectible. |
| 3. |
A General Fund transfer of $27,500 in cash and $305,000 in equipment (with accumulated depreciation of $70,000) was made to establish a central duplicating internal service fund. |
| 4. |
A citizen of Lynnwood donated marketable securities with a fair value of $850,000. The donated resources are to be maintained in perpetuity with the city using the revenue generated by the donation to finance an after school program for children, which is sponsored by the culture and recreation function. Revenue earned and received as of December 31, 2017, was $45,000. |
| 5. |
The city’s utility fund billed the city’s General Fund $130,000 for water and sewage services. As of December 31, the General Fund had paid $129,000 of the amount billed. |
| 6. | The central duplicating fund purchased $7,000 in supplies. |
| 7. | Cash collections recorded by the general government function during the year were as follows: |
| Property taxes | $ | 1,930,000 | |
| Licenses and permits | 40,000 | ||
| User charges | 30,500 | ||
| 8. |
During the year the internal service fund billed the city’s general government function $18,200 for duplicating services and it billed the city’s utility fund $10,600 for services. |
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| 9. |
The city council decided to build a city hall at an estimated cost of $5,050,000. To finance the construction, 4 percent bonds were sold at the face value of $5,050,000. A contract for $4,550,000 has been signed for the project; however no expenditures have been incurred as of December 31, 2017. |
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| 10. |
The general government function issued a purchase order for $34,500 for computer equipment. When the equipment was received, a voucher for $32,400 was approved for payment and payment was made. Using the funds you identified in part a, prepare journal entries to properly record each transaction for the fiscal year ended December 31, 2017. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)
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In: Accounting
A magazine collects data each year on the price of a hamburger in a certain fast food restaurant in various countries around the world. The price of this hamburger for a sample of restaurants in Europe in January resulted in the following hamburger prices (after conversion to U.S. dollars).
| 5.18 | 4.99 | 4.06 | 4.68 | 5.25 | 4.66 |
| 4.17 | 4.98 | 5.19 | 5.59 | 5.34 | 4.60 |
The mean price of this hamburger in the U.S. in January was $4.63. For purposes of this exercise, assume it is reasonable to regard the sample as representative of these European restaurants. Does the sample provide convincing evidence that the mean January price of this hamburger in Europe is greater than the reported U.S. price? Test the relevant hypotheses using α = 0.05. (Use a statistical computer package to calculate the P-value. Round your test statistic to two decimal places and your P-value to three decimal places.)
| t | = | |
| P-value | = |
In: Statistics and Probability
a) What is the present value of $1,200 per year, at a discount rate of 8 percent, if the first payment is received 9 years from now and the last payment is received 28 years from now?
b) ABC Co. wants to sell you an annuity that will pay you $500 per quarter for 25 years. You want to earn a minimum rate of return of 5.1 percent. What is the most you are willing to pay today to buy this annuity?
c) You are scheduled to receive annual payments of $4,000 for
each of the next 8 years. The discount rate is 8 percent.
Part 1: What is the present value if you receive these payments at
the beginning of each year rather than at the end of each
year?
Part 2: What is the difference in the present value if you receive
these payments at the beginning of each year rather than at the end
of each year?
d) Prepare an amortization schedule for a five-year loan of $60,000. The interest rate is 7 percent per year, and the loan calls for equal annual payments.
In: Finance
The Bartlesville plant of Harmon Company produces an
industrial chemical. At the beginning of the year, the Bartlesville
plant had the following standard cost sheet:
Direct materials
(10 kg @ R1.60 per kg)
R16.00
Direct labour
(0.75 hour @ R18 per hour)
R13.50
Variable overhead
(0.75 hour @ R3 per hour)
R2.25
Fixed overhead
(0.75 hour @ R4 per hour)
R3.00
Standard cost per unit
R34.75
The Bartlesville plant calculates its overhead rates
using practical volume, which is 72 000 units. The actual results
for the year are as follows:
Units produced
70 000
Direct materials purchased
744 000 kg @ R1.50 per kg
Direct materials used
736 000 kg
Direct labour
56 000 hours @ R17.90 per hour
Variable overhead
R175 400
Fixed overhead
R214 000
Required:
a. Calculate the following:
i. Direct materials price and usage variances
ii. Direct labour rate and efficiency variances
iii. Variable overhead spending and efficiency variances
iv. Fixed overhead spending and volume variances
b. Prepare journal entries for the following:
i. The purchase of direct materials
ii. The issuance of direct materials to production
iii. The addition of direct labour to production
iv. The addition of overheads to production
v. The incurrence of actual overhead costs
vi. Closing off of variances to Cost of Goods Sold
In: Accounting
A loan of $10,000 is being repaid with 10 payments at the end of each year, where each payment includes equal amount of repayment of the principal and the interest at a rate of 5% based on the outstanding balance after the previous payment. Immediately after the loan was made, the right of the loan was sold at a price that yields an annual effective rate of 10%. Find the price paid for the right of the loan. (Answer: $8072.28) Show work and equations.
In: Finance
Inventory by three methods:
The units of an item available for sale during the year are as follows:
Jan 1. Inventory 21 units at 1,800
May 15 Purchase 28 units at 1,950
August 7 Purchase 10 units at 2,040
Nov. 20 Purchase 17 units at 2,100
There are 20 units of the item in the physical inventory at December 31. ROUND YOUR INTERMEDIATE CALCULATIONS AND FINAL ANSWER TO THE NEAREST DOLLAR
1. Using First in First Out Method calculate cost of goods sold
2. Using Last in First Out Method calculate cost of goods sold
3. Using weighted average cost method calculate Ending Inventory, Cost of Goods Sold
In: Accounting
You plan to buy a car in one year. It will cost $15,000 at that time. You now have $5,000 in a bank that pays 12% compounded monthly. You will save for the car by making monthly deposits in the bank for the next 12 months. How much will you have to deposit each month to have enough money in total to make the purchase?
Select one:
a. $738.50
b. $835.18
c. $769.43
d. $682.80
Karl has $100,000 in student loans at 6% compounded monthly. How much will Karl's monthly payment be in order to pay off the loan in 10 years?
Select one:
a. $610
b. $13,587
c. $9,777
d. $1,110
In: Finance