Seventy-Two Inc., a developer of radiology equipment, has stock outstanding as follows: 81,300 shares of cumulative preferred 3% stock, $15 par, and 400,100 shares of $27 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $55,800 ; second year, $76,700 ; third year, $79,500 ; fourth year, $101,900 .

Calculate 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".

Imaging Inc., a developer of radiology equipment, has stock outstanding as follows: 15,000 shares of cumulative preferred 2% stock, $140 par, and 50,000 shares of $25 par common. During its first four years of operations, the following amounts were distributed as dividends: first year, $28,200; second year, $65,800; third year, $83,300; fourth year, $110,000.

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".

A state legislator wants to determine whether his voters' performance rating (00 - 100100) has changed from last year to this year. The following table shows the legislator's performance from the same ten randomly selected voters for last year and this year. Use this data to find the 99%99% confidence interval for the true difference between the population means. Assume that the populations of voters' performance ratings are normally distributed for both this year and last year.

Copy Data

Step 1 of 4:

Find the point estimate for the population mean of the paired differences. Let x1x1 be the rating from last year and x2x2 be the rating from this year and use the formula d=x2−x1d=x2−x1 to calculate the paired differences. Round your answer to one decimal place.

A state legislator wants to determine whether his voters' performance rating (00 - 100100) has changed from last year to this year. The following table shows the legislator's performance from the same ten randomly selected voters for last year and this year. Use this data to find the 99%99% confidence interval for the true difference between the population means. Assume that the populations of voters' performance ratings are normally distributed for both this year and last year.

Copy Data

Step 2 of 4:

Calculate the sample standard deviation of the paired differences. Round your answer to six decimal places.

Navajo Company’s financial statements show the following. The company recently discovered that in making physical counts of inventory, it had made the following errors: Year 1 ending inventory is understated by $59,000, and Year 2 ending inventory is overstated by $29,000.

Required:
1. For each key financial statement figure—(a), (b), (c), and (d) below—prepare a table to show the adjustments necessary to correct the reported amounts.
2. What is the total error in combined net income for the three-year period resulting from the inventory errors?

Complete this question by entering your answers in the tabs below.

• Required 1
• Required 2

For each key financial statement figure—(a), (b), (c), and (d) below—prepare a table to show the adjustments necessary to correct the reported amounts. (Amounts to be deducted must be entered with a minus sign.)

Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company’s current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows:

Required:

1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)Rotorua Products, Ltd., of New Zealand markets agricultural products for the burgeoning Asian consumer market. The company’s current assets, current liabilities, and sales over the last five years (Year 5 is the most recent year) are as follows:

Required:

1. Express all of the asset, liability, and sales data in trend percentages. Use Year 1 as the base year. (Round your percentage answers to 1 decimal place (i.e., 0.1234 should be entered as 12.3).)

On May 1, Year 1, KLM orders equipment from a supplier in Luxemburg for €100,000 with delivery scheduled for October 1, Year 1. Payment is due on December 31, Year 1. On May 2, Year 1 KLM enters into an 8-month forward contract with its bank at a rate of €1 = $1.38 to purchase €100,000 on December 31, Year 1, the date the accounts payable is due. The equipment is delivered on October 1, Year 1, and immediately put into use. The forward contract and the payable to the supplier are settled on December 31, Year 1.

Exchange rates for one euro for Year 1 were as follows:

Spot RateForward Rate* May 1 and 2, Year 1 $1.35 $1.38 October 1, Year 1 $1.37 $1.39 December 31, Year 1 $1.36 $1.36

Required Prepare journal entries to reflect the above transactions from May 1 to December 31, Year 1, excluding adjusting entry for depreciation expense. Assume that KLM designates the forward contract as a cash-flow hedge and clears the cumulative other comprehensive income account when the equipment is delivered on October 1, Year 1

1. Chronic Pain Clinic has estimated the following cash flows associated with a new project. The project cost of capital (discount rate) is 8 percent.

Year 0: ($700,000)

Year 1: $400,000

Year 2: $400,000

Year 3: $400,000

2. What is the project’s net present value?

A. $186,897

B. $197,619

C. $208,225

D. $324,538

E. $330,839

Chronic Pain Clinic has estimated the following cash flows associated with a new project. The project cost of capital (discount rate) is 9 percent.

Year 0: ($850,000)
Year 1: $400,000
Year 2: $400,000
Year 3: $400,000

What is the project’s internal rate of return?

A. 18.5 percent

B. 19.4 percent

C. 20.6 percent

D. 23.8 percent

E. 24.4 percent

3. Assume a project has the following expected cash flows:

Year 0: ($350,000)
Year 1: $125,000
Year 2: $130,000
Year 3: $170,000
Year 3: $200,000

What is the project’s payback (payback period)?

A. 2.20 years

B. 2.45 years

C. 2.54 years

D. 2.62 years

E. 3.05 years

Over a 4 year period the Yellow corporation purchased 100% of the outstanding voting shares of Green Co. The acquisition was made in a series of steps as follows...

Date % Purchase Price

January, Year 1 5% 5,000

January, Year 2 10% 12,000

January, Year 3   10% 15,000

January, Year 4 75% 200,000

Total 100% 232,000

Any excess of the purchase price over the net book value of the assets was attributed to goodwill.

The acquisition in Year 3 allowed Yellow to have significant influence over the operating policies of Green.

The acquisition in Year 4 gave Yellow control over Green.

Operating results, dividends paid and fair value of White for the 4 years were as follows:

Net Income Dividend Paid Fair Value

January Year 1 100,000

Year 1 25,000 15,000 120,000

Year 2 30,000 15,000 150,000

Year 3 40,000 20,000 170,000

Year 4 50,000 25,000 250,000

For each of the 4 years compute the amount of income that will be record on Yellow's Books related to its Investment in Green Co.

AND compute the balance in the "Investment in Green Co." account on Yellow's books at December 31 of each year.