Below are some data from the land of milk and honey

Compute nominal GDP, real GDP, and the GDP deflator for each year, using the information from the above table. The base year is 2013. Consider an economy that produces only chocolate bars. In year 1, the quantity produced is 3 bars and the price is $4. In year 2, the quantity produced is 4 bars and the price is $5. In year 3, the quantity produced is 5 bars and the price is $6. Year 1 is the base year. What is nominal GDP for each of these three years? What is real GDP for each of these years? What is the GDP deflator for each of these years? What is the percentage growth rate of real GDP from year 2 to year 3? What is the inflation rate as measured by the GDP deflator from year 2 to year 3?

On January 1 of year 1, Arthur and Aretha Franklin purchased a home for $1.62 million by paying 220,000 down and borrowing the remaining $1.40 million with a 4.2 percent loan secured by the home. The Franklins paid interest only on the loan for year 1 and year 2 (unless stated otherwise). (Enter your answers in dollars and not in millions of dollars. Do not round intermediate calculations. Leave no answer blank. Enter zero if applicable.)

a. What is the amount of interest expense the Franklins may deduct in year 2 assuming year 1 is 2017?

b. What is the amount of interest expense the Franklins may deduct in year 2 assuming year 1 is 2018?
c. Assume that year 1 is 2019 and that in year 2, the Franklins pay off the entire loan but at the beginning of year 3, they borrow $310,000 secured by the home at a 4 percent rate. They make interest-only payments on the loan during the year and they use the loan proceeds for purposes unrelated to the home. What amount of interest expense may the Franklins deduct in year 3 on this loan?

On January 1 of year 1, Arthur and Aretha Franklin purchased a home for $1.86 million by paying 260,000 down and borrowing the remaining $1.60 million with a 5 percent loan secured by the home. The Franklins paid interest only on the loan for year 1 and year 2 (unless stated otherwise). (Enter your answers in dollars and not in millions of dollars. Do not round intermediate calculations. Leave no answer blank. Enter zero if applicable.)

a. What is the amount of interest expense the Franklins may deduct in year 2 assuming year 1 is 2017?

b. What is the amount of interest expense the Franklins may deduct in year 2 assuming year 1 is 2018?

c. Assume that year 1 is 2018 and that in year 2, the Franklins pay off the entire loan but at the beginning of year 3, they borrow $330,000 secured by the home at a 5 percent rate. They make interest-only payments on the loan during the year. What amount of interest expense may the Franklins deduct in year 3 on this loan? (Assume the Franklins do not use the loan proceeds to improve the home.)

Question 1-

A 3-year bond carrying 3.4% annual coupon and $100-par is putable at par 1 year and 2 years from today. Calculate the value of the putable bond under the forward rate curve below.

1-year spot rate: 2.0%;

1-year spot rate 1 year from now: 2.6%;

1-year spot rate 2 years from now: 4.1%.

Assume annual compounding. Round your answer to 2 decimal places (nearest cent).

Question 2-

A 3-year bond carrying 3.4% annual coupon and $9,000-par is putable at par 1 year and 2 years from today. Calculate the value of the underlying straight bond under the forward rate curve below.

1-year spot rate: 2.1%;

1-year spot rate 1 year from now: 2.7%;

1-year spot rate 2 years from now: 4.2%.

Assume annual compounding. Round your answer to 2 decimal places (nearest cent).

1) From Adobe System Incorporation 10K form, Locate the company's balance sheet. Give the company's accounting equation at the end of the most recent year and at the end of the prior year?

https://wwwimages2.adobe.com/content/dam/acom/en/investor-relations/pdfs/ADBE-10K-FY17-FINAL-CERTIFIED.pdf

Recent year: ______=______+_____

Prior Year: _______=_______+______

2) Calculate the company's current ratio for both most recent year and prior year?

2) b. Explain what the information provides and what the results mean?

3) Calculate the company's debt to total ratio for both most recent year and prior year?

3)b. Explain what the information provides and what the results mean?

4) Calculate the company's Profit Margin (%) ratio for both most recent year and prior year?

4.b.Explain what the information provides and what the results mean?

5) Calculate the company's return on assets ratio for both most recent year and prior year?

5.b Explain what the information provides and what the results mean?

Assume that Bach Corporation is considering the establishment of a subsidiary in Norway. The initial Norwegian Kroner investment required by the parent​ (in Year​ 0) is Kr​ 40,000,000. If the project is​ undertaken, Bach would terminate the project after four years. ​Bach's cost of capital is

​16%​,

and the project is of the same risk as​ Bach’s existing projects. All cash flows generated from the project will be remitted to the parent at the end of each year. Listed below are the estimated cash flows the Norwegian subsidiary will generate over the​ project's lifetime in Norwegian kroner​ (NOK):

        Year 0 Year 1 Year 2 Year 3 Year 4

​-NOK40,000,000 ​ NOK10,000,000 ​ NOK15,000,000 ​ NOK17,000,000 ​ NOK20,000,000

The current exchange rate of the Norwegian kroner is​ Kr8.3253/$. Bach’s exchange rate forecast for the Norwegian kroner over the​ project's lifetime​ (in kroner per​ dollar) is listed​ below:

Year 0 Year 1 Year 2 Year 3 Year 4

8.3253 7.6923 7.1428 6.8965 6.6666

What is the NPV of the project in​ USD?

A.

​$933,487

B.

​$1,112,836

C.

​$1,323,455

D.

​$1,538,788

34

What are the TWO most likely explanations of the auditor’s observation of the following change in the financial statement ratio from the prior year’s ratio “inventory turnover decreased substantially from the prior year”?

Possible explanations:

(1) A larger percentage of sales occurred during the last month of the year, as compared with the prior year.

(2) A fewer percentage of sales occurred during the last month of the year, as compared with the prior year.

(3) Year-end purchases of inventory were understated by incorrectly excluding items received before year end.

(4) Year-end purchases of inventory were overstated by incorrectly including items received in the first month of the subsequent year.

(5) Items shipped on consignment during the last month of the year were recorded as sales

(6) A significant number of items shipped to and received by customers during the last month of the year were not recorded until the first month of the subsequent year

Group of answer choices

1 and 4

4 and 6

5 and 6

2 and 6

4 and 5

Charlene is evaluating a capital budgeting project that should last for 4 years. The project requires $225,000 of equipment. She is unsure what depreciation method to use in her analysis, straight-line or the 3-year MACRS accelerated method. Under straight-line depreciation, the cost of the equipment would be depreciated evenly over its 4-year life (ignore the half-year convention for the straight-line method). The applicable MACRS depreciation rates are 33%, 45%, 15%, and 7%. The company's WACC is 11%, and its tax rate is 35%.

What would the depreciation expense be each year under each method? Round your answers to the nearest cent.

Scenario 1 (Straight-Line)

Year 1

Year 2

Year 3

Year 4

Scenario 2 (MACRS)

Year 1

Year 2

Year 3

Year 4

Which depreciation method would produce the higher NPV?

How much higher would the NPV be under the preferred method? Round your answer to two decimal places. Do not round your intermediate calculations.

Design an application with a single class and two static methods: method main and method isLeap. Static method isLeap accepts year as integer and returns boolean value true or false depending whether year is leap or not.

• public static boolean isLeap ( int year )

The year is leap year if it is divisible by 4, but not divisible by 100 except if it is divisible by 400.

Examples

• 2007 is not a leap year
• 2008 is leap year
• 1700 is not leap year
• 1600 is leap year.

In the main method, test your code with above four years and another five years that will be generated randomly by the code. Use two separate for-loops. In the first for-loop in each of the four iterations user should be asked to provide one year and when you test the program you input the above four years. For each year program should report whether it is leap or non-leap. The second loop should have five iterations and at each iteration program should generate a random integer for year in the range 1582 and 2019 (including the limits) and report whether it is leap or non-leap.

Creighton Corp. is a manufacturer of widgets. All of its operations are conducted in the US. It is an accrual method calendar year corporation, which began business in Year 1. For the year ended 12/31/Year 2, Creighton reported $7,000,000 EBIT on its financial statements prepared in accordance with GAAP. The corporate records reveal the following information.

Creighton's Year 2 book depreciation was $122,000 and its tax depreciation was $150,000.

In Year 2, Creighton capitalized $62,000 indirect expenses to manufactured inventory for book purposes and $55,000 indirect expenses to manufactured inventory under the tax uniform capitalization rules. The difference in these amounts was attributable to executive compensation.

Due to the increased capitalized executive compensation, Creighton's Year 2 cost of goods sold for book purposes was $1,400,000 and its cost of goods sold for tax purposes was $1,409,000

During Year 2, Creighton sold assets yielding the following gains/losses:

1231 gain of $950,000

Capital losses of $720,000

1245 gain of $67,000

In Year 2, Creighton developed a patent with a 17 year-life and incurred research expenditures of $180,000.

In Year 2, Creighton’s CFO died in a skiing accident. The corporation collected $800,000 in life insurance proceeds. During Year 2, Creighton paid $12,000 premium on the policy.

In December Year 2, Creighton settled a lawsuit and agreed to pay $130,000 to a customer for faulty goods. As of year-end, Creighton had not made payment to the customer.

In Year 1 (not a typo – Year 1), Creighton deducted $220,000 worth of 1231 losses

Creighton does not intend to claim any tax credits for Year 2.

Provide a Book to Tax Reconciliation computing Creighton’s taxable income.