Dalton Sporting Goods adopted the dollar-value LIFO method for inventory valuation in 2016. Use the information below to determine the cumulative cost of the ending inventory at December 31, 2019 under dollar-value LIFO (in other words, what would be the inventory balance on Dalton’s Balance Sheet at 12.31.19). Inventory at Current Date Current Prices Price Index December 31, 2016 $150,000 100 December 31, 2017 $189,000 105 December 31, 2018 270,000 120 December 31, 2019 260,000 130

What is the cumulative ending inventory balance at 12.31.19? $______________________

10. The nominal salaries paid to the President of the United States, along with data for the Consumer Price Index (CPI) for various years, are given below. Calculate the real presidential salaries in dollars (not cents) based on year 2000 dollars? Enter you answers in the space provided in the table. Show your work in the space below the table.

                        Nominal                      Average Annual CPI              Real

Year                Presidential Salary      (1982-84 = 100)                      Presidential Salary

1920                $75,000                       20.0                                         _______________

1940                $75,000                       14.0                                         _______________

1960                $100,000                     29.6                                         _______________

1980                $200,000                     82.4                                         _______________

2000                $400,000                     172.2                                       $400,000

The owners have set a target profit of $25,000 per month ($300,000 per year) in order from them to devote themselves full-time to JW Sports Supplies. Evaluate each of the following factors, separately (assume 1500 units at 100 each, y=60x +40000):

a. What price must the company set to achieve a profit of $25,000?

b. What must the variable cost per unit be to achieve a profit of $25,000?

c. How many units must it sell to achieve a profit of $25,000? d. What must total monthly fixed costs be to achieve a profit of $25,000?

30. Rayburn's Tents makes backpacking tents. It has the capacity to produce 10,000 tents per year and currently is producing and selling 7,000 tents. Normal selling price for a tent is $470. Variable costs are $100 for direct materials, $200 for direct labor, and $25 for other manufacturing costs. Fixed costs of $80 are allocated to each tent. Rayburn's has received a special order for 1,500 tents at $340 each.

a. Should Rayburn's accept the special order? Why? Write a short sentence.
b. Support your answer with appropriate computations that show how the order will affect Rayburn's income.

Given the information below (in millions):

Value of operation $2,000

Short-term investments $30

Debt $50

Value of preferred stock $ 5

Number of shares 100

Demonstrate that the stock price will drop by exactly the amount of dividend per share in the model if this firm pays dividend. Assume that the firm uses the its short-term investment account to fund its dividend payment

Use the information in above to demonstrate that share per stock will remain unchanged after a stock repurchase. Assume that the firm uses the its short-term investment account to fund the stock buyback.

Today is 1 July 2020, William plans to purchase a corporate bond with a coupon rate of j₂ = 4.36% p.a. and face value of 100. This corporate bond matures at par. The maturity date is 1 January 2025. The yield rate is assumed to be j₂ = 4.91% p.a. Assume that this corporate bond has a 2.4% chance of default in any six-month period during the term of the bond. Assume also that, if default occurs, William will receive no further payments at all. Calculate the purchase price for 1 unit of this corporate bond. Round your answer to three decimal places.

Amoril Co. currently has 3,000 shares outstanding each sold for $150, whereas, Poter Inc. has 1,500 shares outstanding each sold for $100. The earnings per share for Amoril Co. and Poter Inc. is S12 per share. Amoril Co. decides to acquire Poter Inc. by offering one new share of Amoril Co. for every three shares of Poter Inc. Assume that there is no economic gain from the merger.

1- what is the earning per share for amoril co. after merger ?

2- what is the price earnings ratio of amoril co. after the merger ?

1. Company Amliba.Inc is considering building a second headquarter in a new city. The new office will create 5000 new jobs for the city. So the government is incentivized to support the project.

The company plans to issue $100 million bond with coupon rate of 8%. Coupon will be paid annually and the bond matures in 5 year.

As a form of support, local government guarantee the bond, so the YTM of the bond at issuance is 5%.

Another bond with exactly the same features but without government guarantee is currently trading at a price that generate a YTM of 10%.

Calculate the value of the government guarantee to the firm. (Ignore taxes.)