A movie is expected to produce cash flows of 26,600 dollars per month with the first monthly cash flow expected later today and the last monthly cash flow expected in 5 months from today. The cost of capital for the movie is 22.44 percent per year. What is the value of the movie?

Holly just borrowed 137,598 dollars from the bank. She plans to repay this loan by making equal quarterly payments for 10 years. If the interest rate on the loan is 7.8 percent per year and she makes her first quarterly payment in 3 months from today, then how much must Holly pay to the bank each quarter?

Kaka just borrowed $4,630 from the bank. He plans to repay this loan by making equal semi-annual payments for 24 half years. If the interest rate on the loan is 5.46 percent per year and he makes his first semi-annual payment later today, then how much must Kaka pay to the bank each half year?

Yu-Na must borrow $657 from the bank to pay her phone bill. She plans to repay this loan by making monthly payments to the bank of $31 per month. If the annual interest rate on the loan is 10.68 percent and she makes her first $31 payment in 1 month from today, then how many payments must Yu-Na make? Round your answer to 2 decimal places (for example, 2.89, 14.70, or 6.00).

ACCT505 – Project 1 Instructions You have just been contracted as a budget consultant by LBJ Company, a distributor of bracelets to various retail outlets across the country. The company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. You have decided to prepare a cash budget for the upcoming fourth quarter in order to show management the benefits that can be gained from proper cash planning. You have worked with accounting and other areas to gather the information assembled below. The company sells many styles of bracelets, but all are sold for the same $10 price. Actual sales of bracelets for the last three months and budgeted sales for the next six months follow (shown in number of units): July (actual) 20,000 August (actual) 26,000 September (actual) 40,000 October (budget) 70,000 November (budget) 110,000 December (budget) 60,000 January (budget) 30,000 February (budget) 28,000 March (budget) 25,000 The concentration of sales in the fourth quarter is due to the Christmas holiday. Sufficient inventory should be on hand at the end of each month to supply 40% of the bracelets sold in the following month. Suppliers are paid $4 for each bracelet. Fifty-percent of a month's purchases is paid for in the month of purchase; the other 50% is paid for in the following month. All sales are on credit with no discounts. The company has found, however, that only 20% of a month's sales are collected in the month of sale. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible. Monthly operating expenses for the company are given below. Variable expenses: Sales commissions 4% of sales Fixed expenses: Advertising $220,000 Rent $20,000 Salaries $110,000 Utilities $10,000 The company plans to purchase $22,000 in new equipment during October and $50,000 in new equipment during November; both purchases will be for cash. The company declares dividends of $20,000 each quarter, payable in the first month of the following quarter. Other relevant data is given below: Cash balance as of September 30 $74,000 Merchandise purchases for September $200,000 The company maintains a minimum cash balance of at least $50,000 at the end of each month. All borrowing is done at the beginning of a month; any repayments are made at the end of a month. The company has an agreement with a bank that allows the company to borrow the exact amount needed at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded.

event 1: record the entry for purchase of inventory for cash on January 20

event 2: record the entry for purchase of inventory for cash on april 21

event 3: record the entry for purchase of inventory for cash on july 25

event 4: record the entry for purchase of inventory for cash on September 19

FIFO Sales and Cost of goods sold

Event 1: record the sale of inventory for cash

Event 2: Record entry for cost of goods sold

LIFO Sales and Cost of goods sold

Event 1: Record sale of inventory for cash

Event 2: Record entry for cost of goods sold

Weighted average Sales and Cost of goods sold

Event 1: record the sale of inventory for cash

Event 2: Record entry for cost of goods sold

2. LIFO

3.Weighted Average

3. Which of the following transactions would be included in GDP for the third and fourth quarter of 2016?
(x) In October 2016, Archie sells his collection of old baseball cards to a baseball card dealer.
(y) In November 2016, Barry eats potatoes that he harvested from his backyard garden in September 2016.
(z) In December 2016, Cathy visits her dentist to take care of a bothersome toothache. She pays for the visit in January 2017.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only

4. Which of the following statements is (are) correct?

(x) According to the macroeconomist, U.S. investment increases when Darla, a U.S. resident buys a newly issued stock in a U.S. corporation
(y) Purchases of newly constructed homes, changes in inventory and the purchase of newly produced capital goods such as industrial equipment are included in the investment component of GDP.
(z) If a Canadian firm builds a new production facility in the state of New York, then it would be reflected as an increase in investment in the U.S. and GDP in the U.S. would be higher as a result.
A. (x), (y) and (z)
B. (x) and (y) only
C. (x) and (z) only
D. (y) and (z) only
E. (z) only

5. Suppose that a country produces 60,000 units of good F which sells at $3 a unit and 120,000 units of good G which sells at $2 per unit. Both of the goods are final goods. The production of good F contributes ________ as much to this country’s GDP as the production of good G.
A. 1/2 times
B. 3/4 times
C. 3/2 times
D. 4/3 times
E. None of the above

Laker Company reported the following January purchases and sales data for its only product. Date Activities Units Acquired at Cost Units sold at Retail Jan. 1 Beginning inventory 180 units @ $ 10.50 = $ 1,890 Jan. 10 Sales 140 units @ $ 19.50 Jan. 20 Purchase 110 units @ $ 9.50 = 1,045 Jan. 25 Sales 130 units @ $ 19.50 Jan. 30 Purchase 270 units @ $ 9.00 = 2,430 Totals 560 units $ 5,365 270 units The company uses a periodic inventory system. For specific identification, ending inventory consists of 290 units, where 270 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.

1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,650, and that the applicable income tax rate is 40%. (Round intermediate calculations and final answers to 2 decimal places.)

Net income    [ ][ ][ ][ ]

2. Which method yields the highest net income?

3. Does net income using weighted average fall between that using FIFO and LIFO?

4. If costs were rising instead of falling, which method would yield the highest net income?

Laker Company reported the following January purchases and sales data for its only product.

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 285 units, where 270 are from the January 30 purchase, 5 are from the January 20 purchase, and 10 are from beginning inventory.

Required:
1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,700 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)

3. Does net income using weighted average fall between that using FIFO and LIFO?2. Which method yields the highest net income?

4. If costs were rising instead of falling, which method would yield the highest net income?

1. Ann gets a fully amortizing 30-year fixed rate mortgage with quarterly payments for $1,000,000. The interest rate is 4%, compounded quarterly. She prepays the mortgage in 1 quarter (i.e. she makes the 1^st payment and immediately prepays the remaining balance). What is Ann’s APR?

   Notes: a quarter equals 3 months, one year consists of 4 quarters, APR is annual.

1. Modify question above: At the moment when Ann signs the mortgage, she must pay an origination fee that equals 2 points. Everything else stays the same, and she still prepays the mortgage in 1 quarter. What is Ann’s APR?

1. Modify question above: There is still an origination fee of 2 points, but now Ann decides to keep the mortgage for the whole term, i.e. she no longer plans to prepay it. What is Ann’s APR?