The E.N.D. partnership has the following capital balances as of the end of the current year:

Answer each of the following independent questions:

1. Assume that the partners share profits and losses 3:3:2:2, respectively. Fergie retires and is paid $237,000 based on the terms of the original partnership agreement. If the goodwill method is used, what is the capital balance of the remaining three partners?

2. Assume that the partners share profits and losses 4:3:2:1, respectively. Pineda retires and is paid $315,000 based on the terms of the original partnership agreement. If the bonus method is used, what is the capital balance of the remaining three partners? (Do not round your intermediate calculations. Round your final answers to the nearest dollar amounts.)

It determined at the end of the year you had 30% turnover (demand) of a specfic item and you would like 100% annually. How much do you reduce (forecast) inventory to achieve that 100% turnover?

Suppose the mean income of firms in the industry for a year is 55 million dollars with a standard deviation of 3 million dollars. If incomes for the industry are distributed normally, what is the probability that a randomly selected firm will earn less than 60 million dollars? Round your answer to four decimal places.

In YEAR 1, the price of gadgets is $2, while the price of the single variable input used is $28. A profit-maximizing gadget producer uses 9 units of input to produce and sell 252 units of gadgets, earning profit of $2*252 - $28*9 = $252 In YEAR 2, the price of gadgets is $3, while the price of the single variable input used is $18. A profit-maximizing gadget producer uses 49 units of input to produce and sell 588 units of gadgets, earning profit of $3*588 - $18*49 = $882 A production plan is feasible if it lies BELOW a firm's iso-profit lines. Which of the following production plans (input-output combinations) are feasible for (within the technology set of) a profit-maximizing gadget producer?

(a) use 15 units of input to produce 330 units of gadgets

(b) use 20 units of input to produce 400 units of gadgets

(c) use 25 units of input to produce 450 units of gadgets

(d) use 30 units of input to produce 470 units of gadgets

The following company is expected to grow rapidly for the first four year. The EPS is expected to grow at 30, 18, 12, and 9 percent, respectively for the first four years. After the fast growth for the first four years the growth slows down to 7 percent rate. The company is expected to keep this growth for the long-term. The company’s initial earnings per share EPS is $2.4. The required net capital expenditure per share for the next five years are $3, $2.5, $2, $1.5, and $1. The required net working capital expenditure is the half of fixed capital expenditure for each year The company will borrow as much as the 30 percent of total capital investment required (fixed capital plus working capital) for each year The cost of equity is assumed to be flat 10.4 percent for the entire period. P/E ratio of similar companies is 30. Question: Estimate the free cash flow to equity holders (FCFE) for the first five years What is the per-share value of this company? (Use free cash flow valuation).

ABC purchased GHJ 5 year bond that is not sure if it will sell or hold until maturity for $25,000 cash. Face of the note is $20,000.It pays 10% interest annually (1/1). Fair value of the bond at year-end was $24,000. Straight line. Prepare all journal entries.

Strong Metals Inc. purchased a new stamping machine at the beginning of the year at a cost of $1,000,000. The estimated residual value was $92,800. Assume that the estimated useful life was five years, and the estimated productive life of the machine was 324,000 units. Actual annual production was as follows:

Required:

1. Complete a separate depreciation schedule for each of the alternative methods. (Do not round your intermediate calculations.)

a. Straight-line.

b. Units-of-production.

c. Double-declining-balance.

1. Given below are some of the ratios for the year 2012 for Two Store A and B.

Ａ. Comment on the current ratio of Store A and B.

B. Comment on the acid test ratio of Store A and B.

C. Comment on the accounts receivable turnover ratio of Store A and B.

D. Comment on the Inventory turnover ratio of Store A and B.

E. Comment on the overall liquidity of both the stores.

2. The price earnings ratio measured as Market price per share of stock divided by Earnings per share is 12.4 times for Store A for the year 2009 whereas Store B price earnings ratio is 10.4 times for the same period. The industry average is 21.3 times. Comment on the price earnings ratio of both Store A and B.

3. The Times interest earned ratio measured as Net income before interest and taxes divided by interest is 9.6 times for Store A for the year 2009 whereas Store B times interest earned ratio is 2.9 times for the same period. The industry average is 16.1 times. Comment on the time interest earned ratio of both Store A and B.

1. How are errors corrected when they are discovered in the current year? In a subsequent year? Utilize at least one online resource to support your response.

2. The directors of The Dress Shoppe are considering declaring either a stock dividend or a stock split. They have asked you to explain the difference between a stock dividend and a stock split and the accounting for a small stock dividend versus a large stock dividend.

It is Dec 31, 2015 and Mr. X is reflecting on the first year of his new business, OBD Inc. He has hired you to create financial statements for the company and you agree. You interview him – and he shares with you a great deal of information – which is listed below. He asks that you compile an income statement and balance sheet.

Sales were $1,000,000

Gross profit margin was 60%

Operating margins were 12%

The Bank of Toronto provided a loan on Jan 1, 2015 worth $300,000. The annual interest is 8% and is compounded annually. Interest only payments are needed – until the loan is due in 10 years, where a balloon payment for the full balance must be paid.

The combined federal and provincial tax rates is 27%

Mr. X knows that the ending cash balance in his company is 200,000.

Accounts Receivables is 10% of sales

Inventory is 15% of sales

Accounts Payable is 5% of sales

Accrued expenses payable is 5.5% of sales

Capital equipment purchases were made at the start of the year. These total $50,000. These depreciate at 10% per year

Mr. X will provided all other capital in the form of equity financing

As a smart young consultant, Mr. X has asked you to figure out his SG&A (Selling General and Administrative expenses).