VII        Cortex Corporation had the following stockholders’ equity as of January 1, 2020:

                        Common stock, $5 par value, 20,000 shares issued         $100,000

                        Paid-in Capital in Excess of Par – Common Stock               300,000

                        Retained earnings                                                           320,000

                                    Total Stockholders’ Equity                                 $720,000

            During 2020, the following transactions occurred:

            Feb. 20             Cortex repurchased 2,400 shares of treasury stock at a price of $19 per share.

            Mar. 11            800 shares of treasury stock repurchased above were reissued at $17 per share.

            Mar. 21            500 shares of treasury stock repurchased above were reissued at $14 per share.

            Apr. 11             600 shares of treasury stock repurchased above were reissued at $20 per share.

            April 25            The remaining shares of treasury stock were retired.

            Required:

3. (a) Prepare the stockholders’ equity section as of April 30, 2020.  Net income for the first 4 months of 2020 was $130,000. Please include both Cost and Par value methods.

LazyDaz, Inc. reported the following for its 2020 financial statements.
Balance Sheet

Income Statement
For the Year Ending Dec 31, 2020

The financial notes of LazyDaz disclose the following 2020 information:
(1) Property, plant and equipment was sold for cash. The PP&E had an original cost of $400
and accumulated depreciation of $100.
(2) Stock was issued for $120 cash.
(3) Bonds of $30 were retired.
(4) Land with a cost of $140 was sold.
(5) There were two major noncash transactions. PP&E was acquired by issuing a $75 long-term
note. Later in the year, PP&E was acquired by issuing $100 in common stock.
(6) All other transactions were cash transactions.

Can you prepare a Statement of Cash Flows for this information

HCM 213

Q1. Balance sheet. The following are account balances as of September 30, 2020, for Ray

Hospital. Prepare a balance sheet at September 30, 2020. (Hint net assets will also need

to be calculated.) Also Find out the Current Ratio (1 Mark) and Net Working Capital (1 Mark)

Givens

Gross plant, property, and equipment $70,000,000

Accrued expenses                                           $6,000,000

Cash                                                                $8,000,000

Net accounts receivable                                $15,500,000

Accounts payable                                           $7,000,000

Long-term debt                                              $45,000,000

Supplies                                                          $3,000,000

Accumulated depreciation                           $5,000,000

SurveyUSA conducted a poll from March 4, 2020 to March 6, 2020 regarding how concerned people were about the Wuhan Coronavirus. One of the questions asked, "As a result of the coronavirus, have you bought anti-bacterial surface wipes?" The results are summarized in the table below.

Using your tools from the probability chapter, does it appear that buying anti-bacterial wipes is independent of gender?

• Yes, it does appear that buying anti-bacterial wipes is independent of gender.
• No, it appears that buying anti-bacterial wipes and gender are dependent.

Explain.

Are female and purchasing anti-bacterial wipes mutually exclusive (disjoint)?

• Yes, being female and purchasing anti-bacterial wipes are mutually exclusive.
• No, being female and purchasing anti-bacterial wipes are not mutually exclusive.

Explain.

Aires Corporation Comparative Balance Sheets December 31, 2020 and 2019 Assets 2020 2019 Change Cash $ 21,000 $ 54,000 Accounts receivable (net) 421,000 480,000 Inventory 310,000 340,000 Prepaid expenses 17,000 15,000 Long Term Investments 70,000 80,000 Land 400,000 300,000 Equipment 1,730,000 1,590,000 Accumulated depreciation-equipment (610,000) (600,000) Patent 40,000 50,000 Total assets $2,399,000 $2,309,000 Liabilities Accounts payable $ 328,000 $ 335,000 Accrued liabilities 171,000 170,000 Income taxes payable 22,000 34,000 Bonds payable 410,000 700,000 Long-term note payable 130,000 0 Total liabilities $1,061,000 $1,239,000

Stockholders' Equity Common stock $ 800,000 $ 600,000 Additional paid-in capital 152,000 152,000 Retained

earnings 386,000 318,000 Total stockholders' equity $1,338,000 $1,070,000 Total liabilities and stockholders' equity $2,399,000 $2,309,000 Aires Corporation Income Statement Year Ended December 31, 2020 Sales $638,700 Cost of merchandise sold 302,000 Gross profit $336,700 Operating expenses: Depreciation expense $70,000 Amortization expense 10,000 Other operating expenses 58,000 138,000 Income from operations $198,700 Other income/(expenses): Gain on sale of equipment $3,000 Loss on sale of investment (2000) Interest income 6,000 7,000 Income before income tax $205,700 Income tax 62,700 Net income $143,000 a) Issued a long-term note payable in exchange for computer equipment for $130,000. b) Purchased computer equipment for $90,000. c) Sold investments costing $10,000 for $8,000 (Hint: Calculate gain or loss) d) Sold equipment costing $80,000 with accumulated depreciation of $60,000 for $23,000 (Hint: Calculate gain or loss) e) f) Repayment of bonds payable at par for $290,000. g) Declared and paid dividends of $75,000. h) Issued 20,000 shares of common stock at par value of $10 per share. i) Paid $100,000 for land intended for a new plant site.

Required: a) Prepare a statement of cash flows using the indirect method. Include a schedule of noncash investing and financing transactions, if applicable. b) Calculate (Write final answer in space provided below. Show calculation). Ratio Answer Free Cash Flows

Solution Procedure: In solving these problems and subsequent ones, use the following procedure: (1) Define the events of interest. (2) Write down the information given. (3) Write down the question. (4) Use the appropriate rule to answer the question.

There are three very old X-ray security machines in the departure complex of an airport. All three machines are exactly the same. The probability that a machine breaks down in the course of a day is 0.2. If they are all in working order at the beginning of a day, and breakdowns are independent of each other, find the probability that during the day: use binomial – success or failure

(a) There are no breakdowns=0.512   =3C0*.20*.83   

(b) One machine breaks down=0.384=3C1*.21*.82    

(c) Two machines break down=0.096=3C2*.22*.81   

   (d) All three machines break down=0.008=3C3*.23*.80      

Joseph is considering a used car currently valued at $12,000. He can get an interest rate of 2.5% annually for a 5 year car loan. Joseph currently has $14,000 in a savings account and wants to use some of his savings for a down payment. If Joseph decided to put $3,000 down as a down payment, what are his monthly payments? If Joseph decided to put $5,000 down as a down payment, what are his monthly payments? How much does Joseph save in interest if he puts $5,000 down compared to $3,000? If Joseph decides to pay for the whole thing what could he potentially save in interest payments? If Joseph can invest $12,000 in an 8% annual investment. Alternatively he is considering just paying cash for the car leaving him no payment. Which would you recommend and why? Include the numbers!!

Telecorp Inc. sells holiday greeting cards via phone solicitation. Twenty-four new salespersons were hired in January 2020. The company provides training for the first month of their employment. This year, the company decided to engage a relatively expensive training consultant on a test basis to train a random sample of 12 of their 24 new hires. The other twelve received the internal training that the company provides. Management desires more information about the value of the external trainer to decide whether it will seek to extend the agreement with the training consultant to train all the new hires. The company will conduct this test in January 2020 and again in January 2021. The company does not have a directional hypothesis ex ante (in advance) regarding the impact of the trainer since it is certainly conceivable that the external training consultant could be less effective than the in-house trainers.

Sales data from year one is shown in the EXCEL data file in the tab entitled “Telecorp Inc. Sales”.

Please complete the following:

1. Produce a table of descriptive statistics for the respective groups using the EXCEL data analysis technology.
2. Highlight on the output the means, medians, and standard deviations for the two groups.
3. Based on this initial data, what is the probability that the difference in sales between the two groups is not random and instead occurred because the external trainer had an impact on the selling ability of the sales persons that received their training from her? Please provide evidence to support your conclusion.

1. Assume that it is now January 1, 2019. Wayne-Martin Electric Inc. (WME) has developed a solar panel capable of generating 200% more electricity than any other solar panel currently on the market. As a result, WME is expected to experience a 14% annual growth rate for the next 5 years. Other firms will have developed comparable technology by the end of 5 years, and WME's growth rate will slow to 6% per year indefinitely. Stockholders require a return of 13% on WME's stock. The most recent annual dividend (D0), which was paid yesterday, was $1.81 per share. Calculate WME's expected dividends for 2019, 2020, 2021, 2022, and 2023. Do not round intermediate calculations. Round your answers to the nearest cent.

D2019 = $

D2020 = $

D2021 = $

D2022 = $

D2023 = $

2. Calculate the value of the stock today, Po. Proceed by finding the present value of the dividends expected at the end of 2019, 2020, 2021, 2022, and 2023 plus the present value of the stock price that should exist at the end of 2023. The year end 2023 stock price can be found by using the constant growth equation. Notice that to find the December 31, 2023, price, you must use the dividend expected in 2024, which is 6% greater than the 2023 dividend. Do not round intermediate calculations. Round your answer to the nearest cent.

3. Calculate the expected dividend yield (D1/P0), capital gains yield, and total return (dividend yield plus capital gains yield) expected for 2019. (Assume that and recognize that the capital gains yield is equal to the total return minus the dividend yield.) Do not round intermediate calculations. Round your answers to two decimal places.

D1/P0 = %

Capital gains yield = %

Expected total return = %

Then calculate these same three yields for 2024. Do not round intermediate calculations. Round your answers to two decimal places.

D6/P5 = %

Capital gains yield = %

Expected total return = %