Answer for 8 and 9

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.]

• Initially, the bond was sold for the premium price of $1,025.
• On October 15, 2020, this bond was selling for only $975.
• The market rate of interest for a riskless corporate bond, of this maturity, was 4.5% on October 15, 2016, which reflects market expectations about future rates of inflation.
• The market rate of interest for a riskless corporate bond, of this maturity, was 4.0% on October 15, 2020, which reflects market expectations about future rates of inflation.

1. What was the nominal yield on this bond on October 15, 2016? 6% [To 1 decimal place.]

2. What was the current yield on this bond on October 15, 2016?5.36% [To 2 decimal places.]

3. What was the yield to maturity for this bond on October 15, 2016? 5.679% [To 3 decimal places.]

4. What was the risk premium for this bond on October 15, 2016? 1.179% [To 3 decimal places.]

5. What was the nominal yield on this bond on October 15, 2020?6% [To 1 decimal place.]

6. What was the current yield on this bond on October 15, 2020?6.15% [To 2 decimal place.]

7. What was the yield to maturity for this bond on October 15, 2020?6.346% [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.]

The ledger of Tyler Lambert and Jayla Yost, attorneys-at-law, contains the following accounts and balances after adjustments have been recorded on December 31, 2016: Lambert and Yost ADJUSTED TRIAL BALANCE December 31, 2016 ACCOUNT TITLE DEBIT CREDIT 1 Cash 34,300.00 2 Accounts Receivable 47,600.00 3 Supplies 2,200.00 4 Land 120,400.00 5 Building 158,000.00 6 Accumulated Depreciation-Building 67,100.00 7 Office Equipment 63,800.00 8 Accumulated Depreciation-Office Equipment 21,500.00 9 Accounts Payable 28,400.00 10 Salaries Payable 4,600.00 11 Tyler Lambert, Capital 134,800.00 12 Tyler Lambert, Drawing 49,500.00 13 Jayla Yost, Capital 87,800.00 14 Jayla Yost, Drawing 59,800.00 15 Income Summary 16 Professional Fees 394,800.00 17 Salary Expense 154,300.00 18 Depreciation Expense-Building 15,200.00 19 Property Tax Expense 12,500.00 20 Heating and Lighting Expense 8,000.00 21 Supplies Expense 5,500.00 22 Depreciation Expense-Office Equipment 4,500.00 23 Miscellaneous Expense 3,400.00 24 Totals 739,000.00 739,000.00 The balance in Yost’s capital account includes an additional investment of $10,200 made on April 10, 2016. Required: 1. Prepare an income statement for 2016. Create a separate statement indicating the division of net income to the partners. The partnership agreement provides for salary allowances of $44,700 to Lambert and $55,100 to Yost, allowances of 10% on each partner’s capital balance at the beginning of the fiscal year, and equal division of the remaining net income or net loss.* 2. Prepare a statement of partnership equity for 2016.* 3. Prepare a balance sheet as of the end of 2016.* * Refer to the information given and the lists of Labels and Amount Descriptions provided for the exact wording of the answer choices for text entries. If a net loss is incurred or there is a decrease in partner’s equity, enter that amount as a negative number using a minus sign.

Notes

(a) During the year non-current assets which had cost £800,000, with a carrying value amount of £350,000, were sold for £500,000 (b) The revaluation surplus arose from the revaluation of some land that was not being depreciated (c) The 2015 income tax liability was settled at the amount provided for at 31st December 2015 (d) The additional loan notes were issued on 1st January 2016. Interest was pad on 30th June and 31st December 2016 (e) Dividends paid during the year amounted to £750,000.

Required
(a) Prepare the company’s statement of cash flows for the year ended 31st December 2016, using indirect method

(b) Calculate the current ratio, quick ratio and gearing ratio for Ziyana for the year ended 31st December 2016 if the following transaction occurred on that date: (i) Customers paid £1,000,000 (ii) A further £1,000,000 10% loan notes were issued (iii) Suppliers were paid £2,000,000    

Peninsula Technology Corporation (PTC) has an all-common-equity capital structure. It has 200,000 shares of $2 par value common stock outstanding. When PTC's founder, who was also its research director and most successful inventor, retired unexpectedly to the South Pacific in late 2015, PTC was left suddenly and permanently with materially lower growth expectations and relatively few attractive new investment opportunities. Unfortunately, there was no way to replace the founder's contributions to the firm. Previously, PTC found it necessary to plow back most of its earnings to finance growth, which averaged 12% per year. Future growth at a 5% rate is considered realistic, but that level would call for an increase in the dividend payout. Further, it now appears that new investment projects with at least the 14% rate of return required by PTC's shareholders (r5 = 14%) would amount to only $800,000 for 2016 in comparison to a projected $2,000,000 of net income. If the existing 20% dividend payout were continued, retained earnings would be $1,600,000 in 2016, but, as noted, invest- ments that yield the 14% cost of capital would amount to only $800,000.

The one encouraging note is that the high earnings from existing assets are expected to continue, and net income of $2 million is still expected for 2016. Given the dramatically changed circumstances, PTC's management is reviewing the firm's dividend policy.

1. Assuming that the acceptable 2016 investment projects would be financed entirely by

   earnings retained during the year, calculate DPS in 2016, assuming that PTC uses the

   residual distribution model and pays all distributions in the form of dividends.

2. What payout ratio does your answer to Part a imply for 2016?

3. If a 60% payout ratio is maintained for the foreseeable future, what is your estimate

   of the present market price of the common stock? How does this compare with the market price that should have prevailed under the assumptions existing just before the news about the founder's retirement? If the two values of P0 are different, com- ment on why.

Some recent financial statements for Smolira Golf, Inc., follow. SMOLIRA GOLF, INC. Balance Sheets as of December 31, 2015 and 2016 2015 2016 2015 2016 Assets Liabilities and Owners’ Equity Current assets Current liabilities Cash $ 3,031 $ 3,007 Accounts payable $ 2,183 $ 2,660 Accounts receivable 4,737 5,721 Notes payable 1,780 2,176 Inventory 12,598 13,722 Other 96 113 Total $ 20,366 $ 22,450 Total $ 4,059 $ 4,949 Long-term debt $ 13,900 $ 16,660 Owners’ equity Common stock and paid-in surplus $ 41,000 $ 41,000 Fixed assets Accumulated retained earnings 15,684 39,550 Net plant and equipment $ 54,277 $ 79,709 Total $ 56,684 $ 80,550 Total assets $ 74,643 $ 102,159 Total liabilities and owners’ equity $ 74,643 $ 102,159 SMOLIRA GOLF, INC. 2016 Income Statement Sales $ 188,570 Cost of goods sold 126,803 Depreciation 5,273 EBIT $ 56,494 Interest paid 1,370 Taxable income $ 55,124 Taxes 19,293 Net income $ 35,831 Dividends $ 11,965 Retained earnings 23,866 Smolira Golf has 12,000 shares of common stock outstanding, and the market price for a share of stock at the end of 2016 was $83. What is the price–earnings ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price–earnings ratio times What is the price–sales ratio? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price–sales ratio times What are the dividends per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Dividends per share $ What is the market-to-book ratio at the end of 2016? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Market-to-book ratio times

Betta Inc. has 100 shares outstanding. As of January 1, 2016 Betta had 200,000 earnings and profits from prior years. On June 30, 2016 Betta paid a dividend of 35 per share to all shareholders. Bob and his three brothers each owned 25 shares of Betta. Each invested $10,000 to start the company and made no further investment in Betta. In November 2016 Bob and his wife got divorced and he needed money to pay her settlement. To raise the cash needed bob sold 10 shares of Betta back to Betta as treasury stock. Betta gave Bob $65,000 in cash and the car he was driving, cost 62,000, fair market value, 38,000, basis $20,000. On December 31, 2016 when Betta closed its books for the year there was a profit of $10,000. Compute Bob’s treatment of the money he received and his basis in the remaining shares he owned. Bob owns 25 shares * $ 400 = $ 10 000 July 1, 2016 received dividend $ 35 * 25 = $ 875 November 1, 2016 sold 10 shares as treasury stock for Cash received from Betta Inc. $ 65 000 And received car basis $ 38 000 Less: Value of investment cost 10 shares * $400 = $ 4 000 Profit earned on sale of 10 shares $ 99 000 ( $ 65 000 + 38 000 – 4000 ) Bob does not able to treat the redemption as an exchange under his change-in-ownership test, because he owns less than 50% of Betta Inc. stock, and his ownership percentage after the redemption (15%) fell below 80% of their ownership percentage prior to the redemption (80%*25%=20%). So, Bob's received dividends $65 000 rather than capital gain. What is company's tax basis?

Forecast Sales Volume and Sales Budget

Guardian Framing Inc. prepared the following sales budget for 2016:

At the end of December 2016, the following unit sales data were reported for the year:

For the year ending December 31, 2017, unit sales are expected to follow the patterns established during the year ending December 31, 2016. The unit selling price for the 8" × 10" frame is expected to increase to $24 and the unit selling price for the 12" × 16" frame is expected to increase to $26, effective January 1, 2017.

Required:

1. Compute the increase or decrease of actual unit sales for the year ended December 31, 2016, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent.

2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 2017, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 2017. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.

Problem 19-1A Variable costing income statement and conversion to absorption costing income (two consecutive years) LO P2, P3

[The following information applies to the questions displayed below.]

Dowell Company produces a single product. Its income statements under absorption costing for its first two years of operation follow.

Additional Information

Sales and production data for these first two years follow.

Variable cost per unit and total fixed costs are unchanged during 2016 and 2017. The company's $31 per unit product cost consists of the following.

Selling and administrative expenses consist of the following.

Problem 19-1A Part 1

1. Complete income statements for the company for each of its first two years under variable costing. (Loss amounts should be entered with a minus sign.)

2. What are the differences between the absorption costing income and the variable costing income for these two years? (Loss amounts should be entered with a minus sign.)

MERMED Inc. is a medical device manufacturer.

The company’s headquarters is located in Houston, Texas. It is a global leader in developing, manufacturing, selling and servicing diagnostic imaging and therapeutic medical devices used to diagnose and treat cardiovascular and other diseases. MERMED earned $300 million of revenue in 2015, while employing more than 10,000 people worldwide. One of it’s manufacturing plants is located in Dingle, Co. Kerry, Ireland. Tom Jones is the plant manager at the Dingle facility.

The Dingle site runs 12 hour shifts, 7 days a week. It has 1000 employees. It manufactures a variety of of medical devices (including Class III devices). A number of it's products are sold in the US and European markets. The facility has a Quality Management System in place. Their Quality Management System is in compliance with ISO 13485:2016 and 21 CFR 820. Their facility is frequently audited by Notified Bodies and the FDA.

The site was recently audited by corporate. The corporate auditing team were checking the site's compliance with ISO 13485:2016 and 21 CFR 820. The auditors found a number of potential non-conformances to  ISO 13485:2016 and 21 CFR 820.

You must complete 4 tasks (for each of the 5 incidents/questions):

1. Review each of these potential non-conformances (5 incidents in total)

2. Determine if they are non-conformances against the requirements of the ISO13485:2016 AND 21 CFR 820.

3. If they are non-compliances, write down the specific clause numbers in ISO 13485:2016 AND specific section number of 21 CFR 820 which is applicable (write down the main clause/section in each regulation that the non-compliance is against).

4. Briefly EXPLAIN your decision.

The company's equipment cleaning validation document was revised several times from 01.May.2015 through 03.March.2016 without documenting a description of each change.

We will do some basic data analysis on information stored in external files.

You will find the following data files in the Source Code -> Chapter 7 folder you should have downloaded already downloaded/unzipped in Lesson 3. If you need that link again:

Pyton4E_Source_Code.zip

GirNames.txt
contains a list of the 200 most popular names given to girls born in US from year 2000 thru 2009

BoyNames.txt
contains a list of the 200 most popular names given to boys born in US from year 2000 thru 2009

Hint: See Program 7-15 read_list.py for example of reading a file's contents into a list and using a loop to strip each \n

Here is the high-level algorithm (you still have work to do :)

open BoyNames.text for reading
read all lines into a list
close the file
while there are elements in list
strip the \n from each element
open GirlNames.txt for reading
read all lines into a list
close file
while there are elements in list
strip \n from each element
get user input for boy
get user input for girl
display result for boy's name entered by user (you need a decision structure as output depends on user input)
display result for girl's name entered by user (you need a decision structure as output depends on user input)

Input: a boy's name, a girl's name, or 'N' for none
Output: messages indicating whether the names were among the most popular

Note: Use a try/except to catch IOError
as anytime we deal with external files, problems may occur (file doesn't exist, we don't have permissions, disk is corrupted, and so on).

Sample Input/Output

IMPORTANT NOTE: The external files MUST be in same directory as your source code.

You may run your code on the command line/system prompt (as I have done) OR from IDLE (Run->Run Module or F5).

Here is first run showing output when user input for both boy and girl are popular names (user input shown in italics/bold ).

Enter a boy's name, or N if you do not wish to enter a boy's name: Michael
Enter a girl's name, or N if you do not wish to enter a girl's name: Emma
Michael is one of the most popular boy's names.
Emma is one of the most popular girl's names.

Here is a second run where user says 'N' to entering names

$ python babyname.py
Enter a boy's name, or N if you do not wish to enter a boy's name: N
Enter a girl's name, or N if you do not wish to enter a girl's name: N
You chose not to enter a boy's name.
You chose not to enter a girl's name.

Here is third run showing user input with a girl name not in the GirlNames.txt file:

$ python babyname.py
Enter a boy's name, or N if you do not wish to enter a boy's name: John
Enter a girl's name, or N if you do not wish to enter a girl's name: Ada
John is one of the most popular boy's names.
Ada is not one of the most popular girl's names.

Note: We will test code with THREE sample runs:

• First run uses the names Michael and Emma (see sample run above)
• Second run user enters N for both of the prompts (answer N for boys and N for girls)
• Third run we enter names of our choice but at least one is NOT popular.

this is what i did for this assignment but i got some error could you please help me with it

def main():
#open BoyNames.text for reading
infile = open('BoyNames.text', 'r')
#read all lines into a list
BoyNames = infile.readlines()
#close the file
infile.close()
#while there are elements in list
#strip the \n from each element
index = 0
while index < len(BoyNames):
BoyNames[index] = BoyNames[index].rstrip('\n')
index += 1
  

#open GirlNames.txt for reading
infile = open('GirlNames.txt', 'r')
#read all lines into a list
GirlNames = infile.readlines()
#close the file
infile.close()
# while there are elements in list
# strip \n from each element
index = 0
while index < len(GirlNames):
GirlNames[index] = GirlNames[index].rstrip('\n')
index += 1
  
#get user input for boy
try:
BoyName = input ("Enter a boy's name, or N if you do not wish to enter a boy's name:")
print (BoyNames)

GirlName = input ("Enter a gilr's name, or N if you do not wish to enter a girl's name:")
print (GirlNames)

except IOError:
print ("You chose not to enter a girl's name.")

  

main()