Why is it important to project the first-year financial performance on a monthly basis and the subsequent yearly budgets, on a quarterly basis? Explain.
In: Operations Management
In: Finance
) American citizens are getting increasingly into debt. In Biblical times, a jubilee was a year in which debts were forgiven. There have been recent calls to cancel debts for everyone. Why? What would be the economic impact of such a decision? Who would benefit from such a decision and who would suffer?
In: Economics
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).
5.19 4.92 4.04 4.69 5.25 4.64
4.17 4.99 5.12 5.52 5.36 4.60
The mean price of this hamburger in the U.S. in January was $4.61. 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
Data from a recent year showed that 72% of the tens of thousands of applicants to a certain program were accepted. A company that trains applicants claimed that 216 of the 280 students it trained that year were accepted. Assume these trainees were representative of the population of applicants. Has the company demonstrated a real improvement over the average? Find z score
In: Statistics and Probability
A firm is considering a project with a 5-year life and an initial cost of $1,000,000. The discount rate for the project is 10%. The firm expects to sell 2,500 units a year for the first 3 years. The after-tax cash flow per unit is $120. Beyond year 3, there is a 50% chance that sales will fall to 900 units a year for both years 4 and 5, and a 50% chance that sales will rise to 3,000 units a year, for both years 4 and 5. The firm will have the option to abandon the project after 3 years (i.e., at t=3) by selling it for $200,000 (after-taxes). You will know which state will be realized in years 4 and 5 (should the project be continued) by the time you have to make the potential abandonment decision at t=3. What is the net present value of this project given the sales forecasts and the abandonment option?
In: Finance
Deposits of $800 are made the first year into a 7% account. This amount increases by $30 for the second year and continues to increase over a total of 10 years.
In: Finance
Executive officers of Solomon Company are wrestling with their budget for the next year. The following are two different sales estimates provided by two difference sources:
| Source of Estimate | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | ||||||||
| Sales manager | $ | 384,000 | $ | 315,000 | $ | 282,000 | $ | 483,000 | ||||
| Marketing consultant | 525,000 | 458,000 | 412,000 | 648,000 | ||||||||
Solomon’s past experience indicates that cost of goods sold is about 65 percent of sales revenue. The company tries to maintain 15 percent of the next quarter’s expected cost of goods sold as the current quarter’s ending inventory. This year’s ending inventory is $22,000. Next year’s ending inventory is budgeted to be $23,000.
Required
Prepare an inventory purchases budget using the sales manager’s estimate.
Prepare an inventory purchases budget using the marketing consultant’s estimate. Complete this question by entering your answers in the tabs below.
Required A
Required B
Prepare an inventory purchases budget using the sales manager’s estimate. (Round your final answers to nearest whole dollar amount.)
|
Prepare an inventory purchases budget using the marketing consultant’s estimate. (Round your final answers to nearest whole dollar amount.)
|
In: Accounting
You are provided with the following information on four stocks. Assume that the base year is Dec 2010 and all splits take place on this date. That is after close of trading on December 31, 2010. Stock A and B have a 2 for 1 split at the end of trading on December 31, 2010. Use this information to answer the questions listed below.
|
31-Dec-10 |
31-Dec-10 |
31-Dec-11 |
31-Dec-11 |
31-Dec-10 |
Dec-11 |
Split |
|
|
Stock |
Price |
Shares |
Price |
Shares |
MV |
MV |
|
|
A |
$ 150.00 |
10,000 |
$ 50.00 |
20,000 |
$1,500,000 |
$1,000,000 |
2 |
|
B |
$ 50.00 |
4,000 |
$ 35.00 |
8,000 |
$200,000 |
$280,000 |
2 |
|
C |
$ 25.00 |
15,000 |
$ 30.00 |
15,000 |
$375,000 |
$450,000 |
1 |
|
D |
$ 140.00 |
20,000 |
$ 130.00 |
20,000 |
$2,800,000 |
$2,600,000 |
1 |
In: Finance
A) The present value of $45,000 to be received in one year, at
6% compounded annually, is (rounded to nearest dollar) ______
.
Use the present value table in Exhibit 8.
a.$42,056
b.$45,000
c.$42,453
d.$40,179
B) Balance sheet and income statement data indicate the following:
| Bonds payable, 7% (due in 15 years) | $1,344,009 |
| Preferred 8% stock, $100 par | |
| (no change during the year) | $200,000 |
| Common stock, $50 par | |
| (no change during the year) | $1,000,000 |
| Income before income tax for year | $444,339 |
| Income tax for year | $133,302 |
| Common dividends paid | $60,000 |
| Preferred dividends paid | $16,000 |
Based on the data presented above, what is the times interest earned ratio (round to two decimal places)?
a.5.72
b.4.72
c.2.31
d.3.31
C) On January 1 of the current year, Barton Corporation issued 7% bonds with a face value of $119,000. The bonds are sold for $113,050. The bonds pay interest semiannually on June 30 and December 31, and the maturity date is December 31, five years from now. Barton records straight-line amortization of the bond discount. The bond interest expense for the year ended December 31 is
a.$10,115
b.$595
c.$4,165
d.$9,520
In: Accounting