3.   You wish to analyze the financial effects after taxation of purchasing a set of desks , chairs and file cabinets (office furniture).   The cost of the equipment is 10,000. It is to be depreciated using the government mandated MACRS schedule furnished with the tables in this exam. The new equipment is expected to generate 5000 dollars each year for the first three years and then 8000 per year for 20 years after that. The tax rate is 35%. The analysis will be considered to give a yearly specification of BEFORE TAX CASH FLOW, DEPRECTIATION, TAXABLE INCOME, TAXES and AFTER TAX CASH FLOW. The easiest display technique would be a spread sheet. Carry out the analysis for the first 8 years only. (Salvage value not needed).

T/F

1. A purchase requisition should be prepared only after a purchase order and voucher are prepared and approved.

T/F

2. A receiving report should be prepared only after a “blind count is performed.”

3. Which of the following procedures is least likely to be performed before the balance sheet date?

a. testing of internal control over cash.

b. confirmation of receivables

c. search for unrecorded liabilities

d. observation of inventory

T/F

4. The receiving clerk should not count the goods received and compare the quantity received with the quantity shown on the purchase order.

T/F

5. The vouchers payable department should prepare a check after approving a voucher.

1. For the following scenarios, indicate which type of t-test (either paired samples or independent samples) would be most appropriate. (8 points; 2 points each)

1. Determining whether children remember more details from a surprising event than college students.

2. Determining whether left-handed people show higher vocabulary scores than right-handed people.

3. Determining whether rats show differences in their spatial navigation abilities before and after consuming a high fat meal.

4. Determining whether a group of people has faster running speeds after drinking 1 cup of green tea than after drinking 4 cups of green tea.

A 1.0-kg standard cart collides on a low-friction track with cart A. The standard cart has an initial xcomponent of velocity of +0.40 m/s, and cart A is initially at rest. After the collision the x component of velocity of the standard cart is +0.20 m/s and the x component of velocity of cart A is +0.70 m/s . After the collision, cart A continues to the end of the track and rebounds with its speed unchanged. Before the carts collide again, you drop a lump of putty onto cart A, where it sticks. After the second collision, the x component of velocity of the standard cart is -0.20 m/s and the x component of velocity of cart A is +0.50 m/s .

What is the inertia of the putty?

Blocks A (mass 4.00 kg ) and B (mass 7.00 kg ) move on a frictionless, horizontal surface. Initially, block B is at rest and block A is moving toward it at 4.00 m/s . The blocks are equipped with ideal spring bumpers. The collision is head-on, so all motion before and after the collision is along a straight line. Let +x be the direction of the initial motion of block A.

Find the maximum energy stored in the spring bumpers?

Find the velocity of block A when the energy stored in the spring bumpers is maximum?

Find the velocity of block B when the energy stored in the spring bumpers is maximum?

Find the velocity of block A after they have moved apart?

Find the velocity of B after they have moved apart?

SLIDING OSCILLATIONS 3 My Notes A block weighing 273 g slides along a frictionless track at a speed 8.9 cm/s. It then attaches to a spring-bumper with an electromagnetic device so that the block attaches to the bumper. The bumper has a mass of 115 g, and the spring has a stiffness of 1110 kg/s2 and an equilibrium length of 9.5 cm. After the spring compresses and returns to its original length, the magnet turns off and the block launches off again, conserving energy. (a) How fast is the block just after it attaches to the paddle? (b) What is the maximum compression of the spring before the block turns around? (b) How fast is the block moving after it launches off the paddle?

Omega Co. is an all-equity firm that is expected to generate EBIT of $8 million every year forever. The company is now considering issuing debt with the amount of half the company's current value at a rate of 10%. There are currently 2 million shares outstanding. The proceeds will be used to repurchase equity. The firm's current cost of capital is 20% and corporate tax rate is 40%.

1. what is the current price per share? (before restructuring)

2. what will be its debt to equity ratio after restructuring?

3. what will their cost of equity be after restructuring?

4. what will their weighted average cost of capital be after restructuring?

5. how many shares will be repurchased? What will be the new price per share?

Blocks A (mass 4.00 kg ) and B (mass 6.00 kg ) move on a frictionless, horizontal surface. Initially, block B is at rest and block A is moving toward it at 5.00 m/s . The blocks are equipped with ideal spring bumpers. The collision is head-on, so all motion before and after the collision is along a straight line. Let +x be the direction of the initial motion of block A. Find the maximum energy stored in the spring bumpers. Find the velocity of block A when the energy stored in the spring bumpers is maximum. Find the velocity of block B when the energy stored in the spring bumpers is maximum. Find the velocity of block A after they have moved apart. Find the velocity of B after they have moved apart.

Milliken uses a digitally controlled dyer for placing intricate and integrated patterns on manufactured carpet squares for home and commercial use. It is purchased for $300,000. It is expected to last 8 years and has a salvage value of $30,000. Increased before tax cash flow due to this dyer is $85,000 per year. Milliken's tax rate is 40%, and the after-tax MARR is 12%. Develop tables using a spreadsheet to determine the ATCF for each year and the after-tax PW, AW, IRR, and ERR after 8 years.

1. Use straight-line depreciation (no half-year convention).
2. Use MACRS-GDS and state the appropriate property class.
3. Use double declining balance depreciation (no half-year convention, no switching).

Suppose that the Phillips curve is given by: ?? = ?? ? + ? − ??? where ?? is the inflation rate, ?? ? is the expected inflation, ?? is the rate of unemployment and, a and b are two positive parameters. Before the COVID-19 crisis, no wage contract was indexed to the inflation. After the crisis a fraction ? > 0 of wage contracts are indexed to inflation.

a. Derive the new equation for the Phillips curve after the crisis.

b. Derive an algebraic expression for the natural rate of unemployment after the crisis. It is believed that the Phillips curve for Canada will be: ?? − ??−1 = 3.2% − 0.4?? 3

c. Plot this curve on a graph with ?? on x-axis and ?? − ??−1 on y-axis.

d. Assume that ? = 0.5, find the numerical values of parameters a and b as implied by the above estimated Phillips curve.

e. What will be the natural rate of unemployment?