Marilyn Terrill is the senior auditor for the audit of Uden Supply Company for the year ended December 31, 20X4. In planning the audit, Marilyn is attempting to develop expectations for planning analytical procedures based on the financial information for prior years and her knowledge of the business and the industry, including these:

1. Based on economic conditions, she believes that the increase in sales for the current year should approximate the historical trend.
2. Based on her knowledge of industry trends, she believes that the gross profit percentage for 20X4 should be about 2 percent less than the percentage for 20X3.
3. Based on her knowledge of regulations, she is aware that the effective tax rate for the company for 20X4 has been reduced by 5 percent from that in 20X3.
4. Based on a review of the general ledger, she determined that average depreciable assets have increased by 10 percent. Purchases of equipment occurred relatively evenly throughout the year.
5. Based on her knowledge of economic conditions, she is aware that the effective interest rate on the company’s line of credit for 20X4 was approximately 12 percent. The average outstanding balance of the line of credit is $3,900,000. This line of credit is the company’s only interest-bearing debt.
6. Based on her discussions with management the advertising and sales commission percentages are expected to stay the same. Based on her knowledge of the industry, she believes that the amount of other expenses should be consistent with the trends from prior years.

Comparative income statement information for Uden Supply Company is presented in the below table.

Required:

b. Determine the expected amounts for 20X4 for each of the income statement items. (Round gross profit ratio and income taxes ratio to nearest four decimal places. Round other ratios to nearest two decimal places. Round all other intermediate computations to the nearest whole value. Enter your answers in thousands.)

c. Uden’s unaudited financial statements for the current year show a 30.82 percent gross profit rate. Assuming that this represents a misstatement from the amount that you developed as an expectation, calculate the estimated effect of this misstatement on net income before taxes for 20X4. (Enter your answers in thousands.)

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A sum of $10,000 is gaining interest at 8% a year compounded monthly. What is the future worth if you withdrew $25 a month for one year?

You plan on starting a retirement fund at the end of the year. The fund earns 11% per year. You will invest X dollars into the fund. You plan to retire at the end of 40 years from now. Once you retire, you will take your entire retirement fund and transfer it into a safer investment that will only earn 5% interest per year compounded monthly. You will need $4000 per month for 30 years during your retirement to sustain your lifestyle. (After which point, RIP). Calculate exactly how much money you will deposit in your retirement account at the end of this year. Your cousin who is the same age as you and with the same life expectancy and desired retirement age decides she will wait 10 years to start saving for retirement (so she will save for only 30 years). How much does she need to invest per year to achieve the same retirement nest egg as you when she retires? Finally, your lazy best friend who is also your age decides he will wait 10 years to start saving for retirement just like your cousin. However, he will only save the same amount you save per year. He will retire at the same time as you and reinvest just like you do into a safer investment. He will try to live the same life style as you. How long after retirement (in months) before he is broke?

A series of 10 end-of-year deposits is made that begins with $6,500 at the end of year 1 and decreases at the rate of $300 per year with 8% interest.

a. What amount could be withdrawn at t = 10?

b. What uniform annual series of deposits (n = 10) would result in the same accumulated balance at the end of year 10?

I would like to be able to use excel functions to solve this rather than by hand. Thanks!

The following data are for the 2016 fiscal year of Alphabet, Inc., which is the parent company of Google, Inc., and Facebook, Inc. All dollar amounts are in thousands.

Required

1. Calculate the EBIT for each company.
2. Calculate each company’s debt-to-assets ratio, current ratio, and the times-interest-earned ratio.
3. Calculate each company’s return-on-assets ratio using EBIT instead of net earnings. Calculate each company’s return-on-equity ratio using net earnings.
4. Alphabet reported interest expense of $124 million, before taxes. What was its after-tax interest expense in dollars? (Hint: You will need to compute its tax rate by dividing income tax expense by earnings before taxes, which must be computed.)

The number of goods sold by “The Local” is in excess of one million per year with deliveries being about 40% of that figure. The amount of goods sold has decreased marginally in recent years. “The Local” is wholly owned but Bianca and her staff have a standard of living to maintain so there is some pressure to raise overall sales whilst keeping costs, particularly delivery costs, in check.     Bianca continues: It is your job to use the sample data from last year’s overall sales to do some statistical analyses and interpretations, investigating what the current overall sales of the business are and providing insights that will guide future business decisions.

Below is last years overall sales vs deliveries data.

1. Please identify the qualitative and quantitative discrete, continuous varibles?

2. Is it cross sectional or time series data?

3. How do you calculate z scores and which are outliers?

4. How do you calculate the covariance and correlation and what does it mean?

Johnsn and Hill formed a company, and 2018 was their first year of operation.

1. To establish Johnson & Hill each contributed a total of $60,000 in exchange for common stock.
2. Johnson & Hill specializes in high-end parties. The first year they conducted 94 events and revenue for the first year amounted to $480,000, of which 95% was to be paid by the date of the event and the remainder due within 30 days of the event.
3. Clients owe $16,000 at the end of the year from the services provided in December.
4. At the beginning of the year, a storage building was rented, signing a two-year lease for $15,000 per year and making a $4,000 refundable security deposit. The first year’s lease payment and the security deposit were paid at the beginning of the year.
5. At the beginning of the year, the company purchased a computerized stage and lighting for $120,000 expected to be useful for twelve years. The company paid 20% down in cash and signed a four-year note at the bank for the remainder (with 10% interest-only to be paid annually until maturity). They also purchased a trailer to haul it with, for $8,000, also with an expected 15-year life. Johnson & Hill must lease a large truck to haul the trailer for each event, which costs $1,000 per day.
6. Other operating expenses, including wages, deprecation on other equipment, utilities, and rent on the storage building noted in (d) and (e) above, totaled $136,000 for the first year. Only $5000 was accrued accounts payable at the end of the year.
7. Johnsn & Hill purchased other equipment (tables & carts, ice machine, food heating trays and bags, helium tanks, music system, etc.) for $10000 with an estimated life of 10 years and no salvage value. Salaries and wages for the year total $105,867 including payroll taxes.
8. The company declared and paid a $50,000 cash dividend at the end of the first year.
9. Johnson & Hill is in the 35% corporate tax bracket.

*Be sure to include the Truck Rental: $1,000 * 94 events = $94,000*

Suppose that a typhoon occurs each year with a probability 1/12 and that a typhoon will destroy bananas from exactly half the farmers who choose to plant in a particular year. Calculate the expected profit of each farmer (including the planting costs) if exactly 110 farmers enter the market, and each chooses to plant 12,500 kgs of bananas. Explain why you would expect additional farmers to enter the market when typhoons are possible. Discuss what this implies for equilibrium prices in years where a typhoon does not occur.

When Japan’s “1955 System” took root in that year, it was thought by many that the Japan Socialist Party (JSP) would get stronger and eventually win general elections. Explain at least two reasons for why observers thought the JSP was in a good position in 1955.