Your friend and colleague has been working for about a year since graduating from university. He has come to you for advice on his saving and spending habits. You have accumulated the following information on his savings and spending that has occurred over the past year:
|
Saving/Spending |
Amount $ |
|
Salary received over the last year, net of income tax |
45,000 |
|
Rent and utilities paid |
16,600 |
|
Car expenses paid |
4,800 |
|
Credit card debt at the start of the year |
1,000 |
|
Food, entertaining, recreation paid |
6,000 |
|
Credit card debt at the end of the year |
2,500 |
|
Line of credit at the start of the year |
2,500 |
|
Line of credit at the end of the year |
1,200 |
|
Purchase of car |
20,000 |
|
Car loan at the end of the year |
15,000 |
|
Cash account balance at the beginning of the year |
500 |
|
Cash received from disposal of motorcycle |
1,000 |
|
Cash received from disposal of computer |
100 |
|
Cash account balance at the end of the year |
1,000 |
|
Purchase of Investments |
5,500 |
|
Student loan at the beginning of the year |
15,000 |
|
Student loan at the end of the year |
10,000 |
|
Purchase of new computer |
1,500 |
|
Interest expense paid |
1,400 |
Instructions
Prepare a statement of cash flow for your friend from information provided above using the direct method.
Can you provide some advice to your friend on how he could improve his cash flow strategies, such as managing debt levels and terms of payment?
Please ensure that your response is written in full sentences and that you provide an explanation and/or a calculation to support your answers.
In: Accounting
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You have recently graduated from university and have accepted a position with Sea-Jewels Inc., the manufacturer of a popular consumer product. During your first week on the job, the vicepresident has been favourably impressed with your work. She has been so impressed, in fact, that yesterday she called you into her office and asked you to attend the executive committee meeting this morning to lead a discussion on the variances reported for last period. Anxious to favourably impress the executive committee, you took the variances and supporting data home last night on a memory stick to study. |
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Unfortunately, when you tried to open the files this morning some of them had become corrupted. All you could retrieve is shown below:
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In: Accounting
Q- Suppose after you graduate from University, you find a job that pays you $65,000 a year. Further suppose that you take out a home equity loan of $260,000 for 30 years at an annual interest rate of 3.5 percent, with payments to be made monthly. What will your monthly payments be? If the interest rate increases from 3.5 percent to 5.0 percent, how much will your monthly payments increase? Instead of 30 years, you decide to pay your loan in 25 years, what will your monthly payments be if the interest rate remains at 3.5 percent or increases to 5.0 percent. Develop a chart comparing these monthly payments. Show your work.
In: Finance
Mary Guilott recently graduated from Nichols State University and is anxious to begin investing her meager savings as a way of applying what she has learned in business school.? Specifically, she is evaluating an investment in a portfolio comprised of two? firms' common stock. She has collected the following information about the common stock of Firm A and Firm? B:
Expected Return Standard
Deviation
Firm A's Common Stock 0.16 0.16
Firm B's Common Stock 0.18 0.24
Correlation Coefficient 0.40
a. If Mary invests half her money in each of the two common? stocks, what is the? portfolio's expected rate of return and standard deviation in portfolio? return?
b. Answer part a where the correlation between the two common stock investments is equal to zero.
c. Answer part a where the correlation between the two common stock investments is equal to +1.
d. Answer part a where the correlation between the two common stock investments is equal to -1.
e. Using your responses to questions a-d?, describe the relationship between the correlation and the risk and return of the portfolio.
In: Finance
|
You have recently graduated from university and have accepted a position with Sea-Jewels Inc., the manufacturer of a popular consumer product. During your first week on the job, the vicepresident has been favourably impressed with your work. She has been so impressed, in fact, that yesterday she called you into her office and asked you to attend the executive committee meeting this morning to lead a discussion on the variances reported for last period. Anxious to favourably impress the executive committee, you took the variances and supporting data home last night on a memory stick to study. |
|
Unfortunately, when you tried to open the files this morning some of them had become corrupted. All you could retrieve is shown below: |
| Standard Cost Card | ||
| Direct materials, 9 kilograms at $3 per kilogram | $ 27.00 | |
| Direct labour, 1.9 direct labour-hours at $13 per direct labour-hour | 24.70 | |
| Variable manufacturing overhead, 1.9 direct labour-hours at $5 per direct labour-hour | 9.50 | |
| Fixed manufacturing overhead, 1.9 direct labour-hours at $10 per direct labour-hour | 19.00 | |
| Standard cost per unit | $ 80.20 | |
| Variances Reported | ||||||||||||
| Total Standard Cost* |
Price or Rate |
Spending or Budget |
Quantity or Efficiency | Volume | ||||||||
| Direct materials | $205,200 | $7,090 F | $7,500 U | |||||||||
| Direct labour | $187,720 | $11,355 U | $9,100 U | |||||||||
| Variable manufacturing overhead | $72,200 | $560 F | $?† U | |||||||||
| Fixed manufacturing overhead | $144,400 | $320 F | $9,500 U | |||||||||
| *Applied to work in process during the period. | |||||
| †Data corrupted. | |||||
|
You recall that manufacturing overhead cost is applied to production on the basis of direct labour-hours and that all of the materials purchased during the period were used in production. Since the company uses JIT to control work flows, work in process inventories are insignificant and can be ignored. |
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It is now 8:30 A.M. The executive committee meeting starts in just one hour; you realize that to avoid looking grossly incompetent, you must somehow generate the necessary “backup” data for the variances before the meeting begins. Without backup data, it will be impossible to lead the discussion or answer any questions. |
| Required: |
| 1. | How many units were produced last period? |
| 2. | How many kilograms of direct material were purchased and used in production? |
| 3. | What was the actual cost per kilogram of material? (Round your answer to 2 decimal places.) |
| 4. | How many actual direct labour-hours were worked during the period? |
| 5. | What was the actual rate paid per direct labour-hour? (Round your answer to 2 decimal places.) |
| 6. | How much actual variable manufacturing overhead cost was incurred during the period? |
| 7. | What is the total fixed manufacturing overhead cost in the company’s flexible budget? |
| 8. | What were the denominator direct labour-hours for last period? |
In: Accounting
A college placement office conducted a survey of 100 engineers who had graduated from Stanford University. For these engineers, the mean salary was computed to be $72,000 with a standard deviation of $22,000. The distribution of salary is roughly bell shaped.
a) What percentage of these engineers will earn between $55,040 and $88,960?
b) What is the probability that the average income of 4 engineers will be between $55,040 and $88,960?
c) What would be the 90thpercentile for the income of these individual engineers?
d) What would be the 90thpercentile for the average income of groups of 9 engineers?
e) Why is the 90thpercentile in (d) a smaller number than the value in (c)? Explain using the bell curve and what happens to it when you are looking at the average of a group.
In: Statistics and Probability
|
You have recently graduated from university and have accepted a position with Sea-Jewels Inc., the manufacturer of a popular consumer product. During your first week on the job, the vicepresident has been favourably impressed with your work. She has been so impressed, in fact, that yesterday she called you into her office and asked you to attend the executive committee meeting this morning to lead a discussion on the variances reported for last period. Anxious to favourably impress the executive committee, you took the variances and supporting data home last night on a memory stick to study. Unfortunately, when you tried to open the files this morning some of them had become corrupted. All you could retrieve is shown below: |
| Standard Cost Card | ||
| Direct materials, 10 kilograms at $2 per kilogram | $ 20.00 | |
| Direct labour, 1.5 direct labour-hours at $14 per direct labour-hour | 21.00 | |
| Variable manufacturing overhead, 1.5 direct labour-hours at $6 per direct labour-hour | 9.00 | |
| Fixed manufacturing overhead, 1.5 direct labour-hours at $10 per direct labour-hour | 15.00 | |
| Standard cost per unit | $ 65.00 | |
| Variances Reported | ||||||||||||
| Total Standard Cost* |
Price or Rate |
Spending or Budget |
Quantity or Efficiency | Volume | ||||||||
| Direct materials | $144,000 | $7,555 F | $7,100 U | |||||||||
| Direct labour | $151,200 | $8,625 U | $9,800 U | |||||||||
| Variable manufacturing overhead | $64,800 | $520 F | $?† U | |||||||||
| Fixed manufacturing overhead | $108,000 | $280 F | $7,000 U | |||||||||
| *Applied to work in process during the period. | |||||
| †Data corrupted. | |||||
|
You recall that manufacturing overhead cost is applied to production on the basis of direct labour-hours and that all of the materials purchased during the period were used in production. Since the company uses JIT to control work flows, work in process inventories are insignificant and can be ignored. |
|
It is now 8:30 A.M. The executive committee meeting starts in just one hour; you realize that to avoid looking grossly incompetent, you must somehow generate the necessary “backup” data for the variances before the meeting begins. Without backup data, it will be impossible to lead the discussion or answer any questions. |
| Required: |
|
1- How many units were produced last period ?
|
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In: Accounting
Question C1 You just graduate from University of Hong Kong, major in Management. You are employed by Standard Chartered Bank as wealth management associate. During your training, you are given the situation for practice.
Mary and Eddie, ages 43 and 47, have a daughter who is completing her first year of university and a son three years younger. Currently, they have $200,000 in savings and investment funds set aside for their children’s education. With increasing education costs, they are concerned whether this amount is adequate. In recent months, Mary’s mother has required extensive medical attention and personal care assistance. Unable to live alone, she is now a resident of a long-term care facility. The cost of this service is $6,750 a month, with annual increases of about 5 percent. While a major portion of the cost is covered by Social Security and her savings, Mary’s mother is unable to cover the entire cost. In addition, Mary and Eddie are concerned about saving for their own retirement. While they have consistently made annual deposits to a retirement fund, current financial demands may force them to access some of that money
Required:
a. Identify the main financial planning issues that need to be addressed.
b. Suggest any TWO additional information, one in quantitative and one in qualitative you need before making recommendation.
c. Based on the information provided and your assessment of the situation, recommend TWO most appropriate actions. (Total 25 marks)
In: Finance
Khalid recently received his accounting degree from
Sultan Qaboos University and went to work for accountancy firm.
After working for 6 months with accountancy firm, he was sent to
the Sky manufacturing company to audit the financial year 2019.
Khalid had his first ever experience of Audit, and he was not
confident of his professional experience at this early point in his
career.
However, during the audit, he noticed, that some of the company's
transactions and events were recorded in a way that might be in
violation of accounting theory and generally accepted accounting
principles. Khalid is very much confused about the practices they
followed. Sky manufacturing may face serious consequences, if they
continue with the same practices. During the audit, Khalid observed
that some of the company’s important information is not shared with
him., which is a clear violation. The owner of Sky manufacturing is
putting a lot of pressure on Khalid to make a good report for the
audit.
a. Khalid is an honest auditor and concerned about his work and
career. Being aware of the complexity and nature of work, he has to
be resilient, diligent, inquisitive, insightful, and impartial.
Discuss and state examples, how would Khalid imply these
characteristics to do his work
professionally in the above scenario?
b. The auditor should challenge the financial accounting practices
used or should challenge the intentions of the management. Write
your decisions and the reasoning behind your conclusions.
answer should be not less than 400 words for each part.
what do you mean?
In: Accounting
Travis Daniels has just graduated from Matchbook State University and is deciding whether to pursue his master's degree. Travis is now 20 years old. He has just been offered a job with Schmultz, Inc. at an annual salary of $45,000 with anticipated annual increases (for inflation), of 3%. Travis anticipates working only through to his planned retirement, on his 65th birthday. Were Travis to defer the job acceptance and attend graduate school at Matchbook State, the tuition would cost $45,000 annually (paid at the beginning of each of the next three years), with a moderate 5% increase in tuition for the 2ndand 3rdyears. Once he completes his three year Master’s program, he could be reasonably assured of a better position with Schmultz, Inc. starting at $60,000 per year (including an anticipated annual increase of the same 3%). Assuming that the salaries are paid at the end of each year, is the pursuit of Travis's master's degree a worthwhile investment, when factoring an interest rate of 6%, or should he start now.
In: Accounting