1. In a debt service fund

a. expenditures for interest are recognized as incurred

b. fund transferred from the general fund to cover debt payments are recorded as revenue

c. expenditures for interest and principal are recognized when they are due

d. long-term debt is reduced by principal payments

2. a private, not-for-profit hospital received the following restricted contributions and other receipts during the year ended December 31, 20X8

1) for research $300,000

2) for equipment acquisitions $200,000

3) income from endowment to be used for new addition to hospital plant $100,0000

none of the contributions r other receipts were expended during the year ended December 31, 20X8. For the year ended December 31,

20X8, what amount would be reported on the hospital's statement of changes in net assets as an increase in temporarily restricted net assets?

3. Pine city's year end is June 30. Pine levies property taxes in January of each year for the calendar year. One-half of the levy is due in May and one-half is due in October. Property tax revenue is budgeted for the period in which payment is due. The ff information pertains to Pine's property taxes for the period from July 1 year 1 to June 30 Year 2.

Levy Year 1 $2,000,000 Levy year 2 $ 2,400,000

Collected in:

May Year 1 $ 950,000 Year 2 $ 1,100,000

July Year 1 $ 50,000 Year 2 $ 60,000

October Year 1 920,000

December Year 1 80,000

The $40,000 balance due for the May year 2 installments was expected to be collected in August year 2. What amount should Pine recognize for property tax revenue for the year ended June 30, year 2?

a. $2,160,000

b. $2,400,000

c.$2,360,000

d.$2,200,000

4.

Expenditures $30,000

Cash $30,000

the above entry for a non  profit entity most likely to record

Use a 5 percent discount rate to compute the NPV of each of the following series of cash receipts and payments: Use Appendix A and Appendix B. $6,200 received now (year 0), $1,890 paid in year 3, and $4,000 paid in year 5. $10,000 paid now (year 0), $12,690 paid in year 2, and $31,000 received in year 8. $20,000 received now (year 0), $13,500 paid in year 5, and $7,500 paid in year 10. (For all requirements, round discount factor(s) to 3 decimal places, and all other intermediate calculations to the nearest whole dollar amount. Cash outflows should be indicated by a negative sign.)

523 and 528 are not the answer for B

Use a 5 percent discount rate to compute the NPV of each of the following series of cash receipts and payments: Use Appendix A and Appendix B. $6,200 received now (year 0), $1,890 paid in year 3, and $4,000 paid in year 5. $10,000 paid now (year 0), $12,690 paid in year 2, and $31,000 received in year 8. $20,000 received now (year 0), $13,500 paid in year 5, and $7,500 paid in year 10. (For all requirements, round discount factor(s) to 3 decimal places, and all other intermediate calculations to the nearest whole dollar amount. Cash outflows should be indicated by a negative sign.)

523 and 528 are not the answer for B

The YTM (yield to maturity) on a one-year zero-coupon bond is 5% and the YTM on a two-year zero-coupon bond is 6%. The treasury is planning to issue a 2-year, annual coupon bond with a coupon rate of 7% and a face value of $1,000.

a) Compute the value of the two-year coupon bond.

b) Compute the yield to maturity of the two-year coupon bond.

c) If the expectations hypothesis is correct, what is the market expectation of the price that the two-year coupon bond will sell for in one year (from today)?

d) If the liquidity preference theory is correct, what is the market expectation of the price that the two-year coupon bond will sell for in one year (from today)? Assume a liquidity premium of 1%.

You need a particular piece of equipment for your production process. An​ equipment-leasing company has offered to lease the equipment to you for

$9,800

per year if you sign a guaranteed

5​-year

lease​ (the lease is paid at the end of each​ year). The company would also maintain the equipment for you as part of the lease.​ Alternatively, you could buy and maintain the equipment yourself. The cash flows from doing so are listed below​ (the equipment has an economic life of

5

​years). If your discount rate is

7.1%​,

what should you​ do?

Dividends per share

Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 20,000 shares of cumulative preferred 4% stock, $140 par, and 67,000 shares of $15 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $75,000; second year, $159,000; third year, $188,290; fourth year, $199,770.

Compute the dividends per share on each class of stock for each of the four years. Round all answers to two decimal places. If no dividends are paid in a given year, enter "0".

Year 1 Year 2 Year 3 Year 4  

Preferred Stock

Common Stock

Perdue Company purchased equipment on April 1 for $82,620. The equipment was expected to have a useful life of three years, or 5,940 operating hours, and a residual value of $2,430. The equipment was used for 1,100 hours during Year 1, 2,100 hours in Year 2, 1,800 hours in Year 3, and 940 hours in Year 4. Required: Determine the amount of depreciation expense for the years ended December 31, Year 1, Year 2, Year 3, and Year 4, by (a) the straight-line method, (b) units-of-output method, and (c) the double-declining-balance method.