In: Nursing
Read the following examples that use the above terms: A farmer wanted to test the effects of different amounts of fertilizer on tomatoes. He decided to measure the weight of the tomatoes from the plants (yield), since selling his tomatoes generates income. He applies different amounts of fertilizer (the independent variable) to different batches of his plants, and then determines the yield (the dependent variable) of the different batches to decide what amount of fertilizer works best. He includes some unfertilized plants for his control. The yield is dependent on the amount of fertilizer. The amount of fertilizer is independent because the farmer can decide how much he will use. Practice Part A: SCENARIO 1: A microbiologist working for a pharmaceutical company has isolated a chemical from a newly discovered strain of a fungus. He has done some preliminary tests and thinks that the chemical might kill the bacteria that cause gonorrhea. He prepares some bacterial growth medium (aka “agar”) and adds the new chemical to one batch, and leaves one without the antibiotic. He then adds the same amount of the bacteria that cause gonorrhea to each container of growth media and incubates them.
The microbiologist’s hypothesis was that if____________________________________, then ___________________________________________________________________. In this experiment, the antibiotic is the ________________________________________ Whether or not the bacteria can grow in the presence of the antibiotic is the ___________ ________________________________________________________________________ The growth media without the antibiotic is the __________________________________ Why was the same amount of bacteria added to both containers of growth media? _______________________________________________________________________ SCENARIO 2: Phyllis has just purchased a home in Florida. She is very excited about growing plumeria trees in her yard. She wants the trees to produce as many flowers as possible so she decides to test if different amounts of water to see if that has an effect on the number of flowers. Her sprinkler system automatically releases a set amount of water (gallons per minute) so the only way for her to adjust the water amount is to shorten/ lengthen the amount of time the plants get watered. Tree #1 gets watered every day for 2 hours. Tree #2 gets watered every other day for 2 hours. Tree #3 gets watered twice a day for 2 hours each interval. What is the independent variable of this experiment? ________________________________________________________________________ What is the dependent variable of this experiment? ________________________________________________________________________ What is a constant of this experiment? ________________________________________________________________________ What is another constant of this experiment? ________________________________________________________________________
In: Biology
CASE 3 (25 points)
Income statements and balance sheets for Melia Corporation follow.
Income Statements for Years 2015 and 2016
2015 2016
| Net sales | $438,000 | $575,000 |
| - Cost of goods sold | -285,000 | -380,000 |
| Gross profit | 153,000 | 195,000 |
| -Administrative expenses | -45,000 | -65,000 |
| -Marketing expenses | -32,000 | -39,000 |
| -Research and development | -20,000 | -27,000 |
| -Depreciation | -14,000 | -17,000 |
| EBIT | 42,000 | 47,000 |
| -Interest expense | -12,000 | -20,000 |
| income before taxes | 30,000 | 27,000 |
| -Income before taxes | -9,000 | -8,000 |
| Net income | $21,000 | $19,000 |
Balance Sheets for Years Ended 2014, 2015, and 2016
Assets 2014 2015 2016
| Cash and marketable securities | $10,000 | $10,000 | $5,000 |
| Receivable | 60,000 | 75,000 | 105,000 |
| Inventories | 70,000 | 95,000 | 140,000 |
| Total current assets | 140,000 | 180,000 | 250,000 |
| Gross plant and equipment | 205,000 | 205,000 | 255,000 |
| Less: accumulated depreciation | -28,000 | -42,000 | -59,000 |
| Net plant and equipment | 177,000 | 163,000 | 196,000 |
| Total assets | $317,000 | $343,000 | $446,000 |
| Liabilities and Equity | |||
| Payable | 47,000 | 57,000 | 84,000 |
| Short -term bank loan | 40,000 | 44,000 | 110,000 |
| Accrued liabilities | 95,000 | 110,000 | 204,000 |
| Long-term debt | 100,000 | 90,000 | 80,000 |
| Owners equity | 122,000 | 143,000 | 162,000 |
| Total liabilities and equity | $317,000 | $343,000 | $446,000 |
Instructions:
1. Using the above information, calculate for 2015 and 2016 the
following: a. Receivables turnover, Inventory turnover, and
Payables turnover.
b. Receivables period, Inventory period, and Payables period.
c. Operating Cycle and Cash Conversion Cycle.
(5 points) (5 points) (5 points)
2. Discuss the changes that took place from 2015 to 2016 and suggest the ways how the company could improve its performance. (10 points)
In: Finance
On October 15, 2016, Koala, Inc. issued a 10 year bond (with a typical $1000 face value) that had an annual coupon value of $60. [We are assuming that the 2020 coupon has just been redeemed.]
1. What was the nominal yield on this bond on October 15, 2016? [To 1 decimal place.]
2. What was the current yield on this bond on October 15, 2016? [To 2 decimal places.]
3. What was the yield to maturity for this bond on October 15, 2016? [To 3 decimal places.]
4. What was the risk premium for this bond on October 15, 2016? [To 3 decimal places.]
5. What was the nominal yield on this bond on October 15, 2020? [To 1 decimal place.]
6. What was the current yield on this bond on October 15, 2020? [To 2 decimal place.]
7. What was the yield to maturity for this bond on October 15, 2020? [To 3 decimal places.]
8. What was the risk premium for this bond on October 15, 2020? [To 3 decimal places.]
9. It is now October 15, 2020 and suddenly the Federal Reserve announces a massive program to reduce inflation. Instantly, the market rate of interest for a riskless corporate bond that would apply to this bond, falls from 4.0% to 2.5%. If there is no change in the risk premium expected for this Koala, Inc. bond, what will be this bond’s yield to maturity? [To 3 decimal places.]
In: Finance
Return on Investment, Financial Leverage, and DuPont
Analysis
The following tables provide information from the recent annual
reports of HD Rinker, AG.
| Balance sheets | 2016 | 2015 | 2014 | 2013 |
|---|---|---|---|---|
| Total assets | € 6,108 | € 6,451 | € 7,173 | € 6,972 |
| Total liabilities | 5,970 | 4,974 | 4,989 | 5,097 |
| Total shareholders' equity | 138 | 1,477 | 2,184 | 1,875 |
| Income statements 52 weeks ended | 2016 | 2015 | 2014 |
|---|---|---|---|
| Sales revenue | € 10,364 | € 9,613 | € 8,632 |
| Earnings before interest and taxes | 1,473 | 1,459 | 887 |
| Interest expense | 246 | 208 | 237 |
| Earnings before income taxes | 1,227 | 1,251 | 650 |
| Income tax expense | 377 | 446 | 202 |
| Net earnings | € 850 | € 805 | € 448 |
a. Calculate HD Rinker’s return on equity (ROE) for fiscal years
2016, 2015, and 2014.
Round answers to one decimal place (i.e., 0.2568 = 25.7%). Do not
round until your final answer.
| 2016 | Answer % |
| 2015 | Answer % |
| 2014 | Answer % |
b. Calculate HD Rinker’s return on assets (ROA) and return on
financial leverage (ROFL) for each year.
Round answers to one decimal place (i.e., 0.2568 = 25.7%). Do not
round until your final answer.
| ROA | ROFL | |
|---|---|---|
| 2016 | Answer % | Answer % |
| 2015 | Answer % | Answer % |
| 2014 | Answer % | Answer % |
c. Use the DuPont formulation in the Business Insight on page
230 to analyze the variations in HD Rinker's ROE over this period.
Calculate net profit margin, asset turnover, and financial
leverage.
Do not round until your final answer. Round answers to one decimal
place (i.e., 0.2568 = 25.7%).
| NPM | AT | FL | |
|---|---|---|---|
| 2016 | Answer % | Answer | Answer |
| 2015 | Answer % | Answer | Answer |
| 2014 | Answer % | Answer | Answer |
In: Accounting
|
National Orthopedics Co. issued 8% bonds, dated January 1, with a face amount of $600,000 on January 1, 2013. The bonds mature on December 31, 2016 (4 years). For bonds of similar risk and maturity the market yield was 10%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) |
| Required: | |||||||||||||||||||||||||
| 1. |
Determine the price of the bonds at January 1, 2013.
|
||||||||||||||||||||||||
| 2. |
Prepare the journal entry to record their issuance by National on January 1, 2013. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) |
| 3. |
Prepare an amortization schedule that determines interest at the effective rate each period.
|
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| 4. |
Prepare the journal entry to record interest on June 30, 2013. (If no entry is required for a transaction, select "No journal entry required" in the first account field.) |
||
|
In: Accounting
Williams Electronics design and manufacturer specialized in switches for the telecomunication industry. The accounting records of the business reflect the following data at December 31, 2016
inventory 1/1/2016 31/12/2016
Raw material $260,000. $230,000.
Work in progress $332,300. $218,800
Finished goods $1,075,200. $615,000.
Other Information
Sales revenue $5,765,000
Factory supplies 45,000
Director factory labour 750,000
Raw materials purchased 540,000
Plant janitorial service 52,000
Depreciation: Plant & Equipment 165,000
Total ultiities 550,000
Plant supervisory's salary 480,000
R & D for graphic designs 70.500
Insurance on Plant & Equipment 120,000
Delivery truck driver's wages 175,000
Depreciation: Delivery truck 52,000
Property taxes 300,000
Administration wages & salaries 840.150
Advertising expenses 1% of sales revenue
!. of the total utilities, 70% relates to manufacturing and 30% relates to general and administrative costs
2. the property taxes should be shared: 60% manufacturing & 40% general & administrative costs
Required
a) Calculate the raw material used by Williams Electronics.
b) What is the total manufacturing overhead cost incurred by Williams Electronic during the period?
c) Determine the prime cost & conversion cost of the product manufactured
d) Prepare a schedue of cost of goods manufactured for the year ended December 31, 2016, clearing showing total manufacturing costs & total manufacturing costs to account for
e) Prepare an income statement for the year ended December 31, 2016 clearly showing the calculation of Costs of Goods sold. List the non-production overheads in order of size starting with the largest
f) Given that the company manufactured 1,500 switches in 2016, compute the company's unit product cost for the year
g) briefly explain the differences between a product cost and period cost
In: Accounting
Exercise 17-27
On August 15, 2016, Marigold Co. invested idle cash by purchasing a call option on Counting Crows Inc. common shares for $594. The notional value of the call option is 660 shares, and the option price is $66. The option expires on January 31, 2017. The following data are available with respect to the call option.
|
|
Market Price of Counting |
Time Value of Call |
||
| September 30, 2016 | $79 per share | $297 | ||
| December 31, 2016 | $76 per share | 107 | ||
| January 15, 2017 | $78 per share | 50 |
Prepare the journal entries for Marigold for the following
dates.
| (a) | Investment in call option on Counting Crows shares on August 15, 2016. | |
| (b) | September 30, 2016—Marigold prepares financial statements. | |
| (c) | December 31, 2016—Marigold prepares financial statements. | |
| (d) | January 15, 2017—Marigold settles the call option on the Counting Crows shares. |
(Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required,
select "No Entry" for the account titles and enter 0 for the
amounts.)
|
No. |
Date |
Account Titles and Explanation |
Debit |
Credit |
|
(a) |
Aug. 15, 2016Sep. 30, 2016Dec. 31, 2016Jan. 15, 2017 |
|||
|
(b) |
Aug. 15, 2016Sep. 30, 2016Dec. 31, 2016Jan. 15, 2017 |
|||
|
(To record the change in intrinsic value.) |
||||
|
(To record the time value change.) |
||||
|
(c) |
Aug. 15, 2016Sep. 30, 2016Dec. 31, 2016Jan. 15, 2017 |
|||
|
(To record the change in intrinsic value.) |
||||
|
(To record the time value change.) |
||||
|
(d) |
Aug. 15, 2016Sep. 30, 2016Dec. 31, 2016Jan. 15, 2017 |
|||
|
(To record the time value change.) |
||||
|
(To record settlement of call option.) |
In: Accounting
Statement of Cash Flows (Direct Method) The Wolff Company’s
income statement and comparative balance sheets at December 31 of
2016 and 2015 are shown below:
| WOLFF
COMPANY Income Statement For the Year Ended December 31, 2016 |
||
|---|---|---|
| Sales Revenue | $645,000 | |
| Cost of Goods Sold | $430,000 | |
| Wages Expense | 86,000 | |
| Insurance Expense | 12,000 | |
| Depreciation Expense | 13,000 | |
| Interest Expense | 12,000 | |
| Income Tax Expense | 29,000 | 582,000 |
| Net Income | $63,000 | |
| WOLFF
COMPANY Balance Sheets |
||
|---|---|---|
| Dec. 31, 2016 | Dec. 31, 2015 | |
| Assets | ||
| Cash | $52,000 | $8,000 |
| Accounts Receivable | 41,000 | 32,000 |
| Inventory | 90,000 | 60,000 |
| Prepaid Insurance | 5,000 | 7,000 |
| Plant Assets | 219,000 | 195,000 |
| Accumulated Depreciation | (68,000) | (55,000) |
| Total Assets | $339,000 | $247,000 |
| Liabilities and Stockholders’ Equity | ||
| Accounts Payable | $7,000 | $10,000 |
| Wages Payable | 9,000 | 6,000 |
| Income Tax Payable | 6,000 | 7,000 |
| Bonds Payable | 141,000 | 75,000 |
| Common Stock | 90,000 | 90,000 |
| Retained Earnings | 86,000 | 59,000 |
| Total Liabilities and Stockholders’ Equity | $339,000 | $247,000 |
Cash dividends of $36,000 were declared and paid during 2016. Plant
assets were purchased for cash and bonds payable were issued for
cash. Bond interest is paid semi‑annually on June 30 and December
31. Accounts payable relate to merchandise purchases.
Required
a. Calculate the change in cash that occurred during 2016.
b. Prepare a statement of cash flows using the direct method.
c. Compute free cash flow.
d. Compute the operating‑cash‑flow‑to‑current‑liabilities ratio.
Round to two decimal points.
e. Compute the operating‑cash‑flow‑to‑capital‑expenditures ratio.
Round to two decimal points.
a. Change in Cash during 2016 $Answer AnswerIncreaseDecrease
In: Accounting
The records of Shen Inc. show the following data for the years ended March 31:
| 2018 | 2017 | 2016 | |||||
| Income statement: | |||||||
| Sales | $ 336,100 | $ 317,000 | $ 296,900 | ||||
| Cost of goods sold | 233,000 | 223,000 | 211,400 | ||||
| Operating expenses | 68,000 | 64,300 | 64,300 | ||||
| Statement of financial position: | |||||||
| Inventory | 39,600 | 39,600 | 24,000 |
After the company’s March 31, 2018, year end, the accountant
discovers two errors:
| 1. | Ending inventory on March 31, 2016, was actually $ 32,300, not $ 24,000. Shen owned goods held on consignment at another company that were not included in the inventory account. |
| 2. | Shen purchased $ 14,600 of goods from a supplier on March 30, 2017, with shipping terms FOB shipping point. The goods were not received until April 4, 2017 and the goods were not included in the March 31, 2017, year-end inventory. The purchase was then recorded properly on April 4, 2017. |
(a)
For each of the three years, prepare both incorrect and
corrected income statements through to income before income
tax.
INCORRECT
| SHEN INC. Income Statement Year Ended July 31Month Ended July 31a July 31 |
|||||||
| 2018 | 2017 | 2016 | |||||
| Sales | $ | $ | $ | ||||
| Cost of goods sold | |||||||
| Gross profit | |||||||
| Operating expenses | |||||||
| Income before income tax | $ | $ | $ | ||||
| SHEN INC. Statement of financial position
Year Ended July 31Month Ended July 31a July 31
|
|||||||
| 2018 | 2017 | 2016 | |||||
|
|
$ | $ | $ | ||||
CORRECT
| SHEN INC. Income Statement
Year Ended July 31Month Ended July 31a July 31
|
|||||||
| 2018 | 2017 | 2016 | |||||
| Sales | $ | $ | $ | ||||
| Cost of goods sold | |||||||
| Gross profit | |||||||
| Operating expenses | |||||||
| Income before income tax | $ | $ | $ | ||||
SHEN INC. Statement of financial position
Year Ended July 31Month Ended July 31a July 31
|
|||||||
| 2018 | 2017 | 2016 | |||||
|
|
$ | $ | $ | ||||
In: Accounting