Questions
1)Suppose a condo generates $13,000 in cash flows in the first year. If the cash flows...

1)Suppose a condo generates $13,000 in cash flows in the first year. If the cash flows grow at 2% per year, the interest rate is 11%, and the building will be sold at the end of 19 years with a value of $90,000, what is the present value of the condo's cash flow?

2)Suppose you save $5,500 at the end of every quarter for your retirement. If you can earn 10% per year (APR) on your investments, how much will you have saved by the time you retire in 15 years?

3)An investment promises to pay you $3,000 per year starting in 6 years. The cash flow from the investment is expected to increase by 2% per year forever. If alternative investments of similar risk earn a return of 13% per year, determine the maximum you would be willing to pay for this investment today.

In: Finance

1. Classify this news event as Systematic or Unsystematic and indicate whether prices will increase or...

1. Classify this news event as Systematic or Unsystematic and indicate whether prices will increase or decrease.

US home construction drops 30.2% in April as virus rages.

Systematic, Increase

Systematic, Decrease

Unsystematic, Increase

Unsystematic, Decrease

2. Classify this news event as Systematic or Unsystematic and indicate whether prices will increase or decrease.

Home Depot's sales soared in the first quarter, despite an increase in costs due to the coronavirus.

Systematic, Increase

Systematic, Decrease

Unsystematic, Increase

Unsystematic, Decrease

3. Classify this news event as Systematic or Unsystematic and indicate whether prices will increase or decrease.

Walmart says it will discontinue Jet, which it acquired for $3B in 2016

Systematic, Increase

Systematic, Decrease

Unsystematic, Increase

Unsystematic, Decrease

4. A stock with a price of $10 per share must have a lower market capitalization than a stock with $100 per share.

In: Finance

A company has three employees. Total salaries for the month of March were $8,000. The federal...

A company has three employees. Total salaries for the month of March were $8,000. The federal income tax rate for all employees is 15%. The FICA—Social Security tax rate is 6.2% and the FICA—Medicare tax rate is 1.45%.

A. Calculate the amount of employee taxes withheld
B. Prepare the company's journal entry to record the March payroll assuming these were the only deductions.
C. Prepare the April 1 journal entry to record the cash payment of salaries.
D. Include a brief description/explanation for the journal entries
E. Provide an explanation of the next steps the company should complete to finish the payroll process for March. Since March is the end of the first quarter for the company, in your explanation, include the form the company should prepare and file with the IRS at the end of March (Hint: Employers are required to prepare and submit certain payroll reports and forms)

In: Accounting

1.) AB Company has the following production information available for March: Total materials costs                           

1.) AB Company has the following production information available for March:

Total materials costs                                                              $147,000

Equivalent number of complete units of materials                  15,000

Total conversion costs                                                           $ 75,000

Equivalent number of complete units of conversion costs      12,000

The total manufacturing cost per unit (rounded to nearest cent) is closest to:

A. $6.25

B. $9.80

C. $16.05

D. $8.22

2.) ABD Company, materials purchases and uses during the first quarter are as follows:

Jan. 11, purchased 500 units at $15.00

Feb. 12, purchased 900 units at $13.00

Mar. 18, purchased 200 units at $16.00

Total amount of materials used during the quarters was 1,400 units. If the company applies the average cost method for its inventory valuation. The ending inventory value is closest to:

A. $2,800

B. $3,000

C. $3,200

D. $2,600

In: Accounting

1) Enos Printing Corp. uses a job order cost system. The following data summarize the operations...

1) Enos Printing Corp. uses a job order cost system. The following data summarize the operations related to the first quarter's production.

1. Materials purchased on account $197,600, and factory wages incurred $92500.

2) Materials requisitioned and factory labor used by job:

Job Number Materials Factory Labor

A20 $37,940 $18,100

A21 44,220 24,100

A22 37,200 16,300

A23 41,470 26,600

General factory use 5,270 7,400

= $166,100 $92,500

3. Manufacturing overhead costs incurred on account $50,500.

4. Depreciation of factory equipment $16,650.

5. Depreciation on the company's office building was $14,500.

6. Manufacturing overhead rate is 87% of direct labor cost.

7. Jobs completed during the quarter: A20, A21, and A23.

Prepare entries to record the operations summarized above.

In: Accounting

ABC Corporation uses a perpetual inventory system. The following transactions affected itsmerchandise inventory during the month...

ABC Corporation uses a perpetual inventory system. The following transactions affected itsmerchandise inventory during the month of June 2018:June 2 Inventory on hand-1,500 units; cost$4.50 each. 6 Purchased 5,000 units for $5.00 each. 13 .Sold 5,500 units for $10.00 each. 21 Purchased 8,000 units for $5.50 each. 26 Sold 5,000 units for $9.00 each. 30 Inventory on hand-4,000 units. Determine the inventory balance ABC would report in its June 30, 2018, balance sheet and the cost of goods sold it would report in its June 2018 income statement using each of the following cost flow methods: a. First-in, first-out (FIFO)b. Last-in, first-out (LIFO)c. Average cost

can you explain how to do the three methods for me

In: Accounting

I NEED 2 PARAGRAPHS RESPOND TO THIS TYPING SO I CAN COPY IT Managers create budgets...

I NEED 2 PARAGRAPHS RESPOND TO THIS TYPING SO I CAN COPY IT

Managers create budgets from anticipated financial conditions and market expectations for future periods. They calculate revenues and expenses for the specific period being budgeted. Once that period has come, managers compare the actual expenses to the budget numbers and evaluate the department’s performance (Adams, 2017). This is usually done through a variance analysis, which uses the difference between actual performance and budgeted performance to evaluate the performance of individuals and business units (Lanen, 2018, P. 621). It helps to identify and determine the possible causes of the difference (Lanen, 2018, P. 621). It also helps maintain control over a unit’s expenses by monitoring planned versus actual costs (Adams, 2017). A few common variances used in variance analysis are profit, purchase price, labor rate, variable overhead spending, fixed overhead spending, and selling price. Effective variance analysis allows management to understand why fluctuations occur in its business, and what it can do to change the situation. A variance analysis should be performed on variances that are of most concern for the company, especially if it can be rectified. For example, a company’s budget for sales was $12,000, but the actual sales were $9,000, the variance analysis would yield a difference of $3,000. A complete analysis could reveal that the variance was caused by a lost account. The customer purchased $2,600 per month from the company. The account was lost, due to the company’s inconsistent delivers.

            The downside of using variance analysis is that managers usually only receive them once a month, so they rely on other measurements (Adams, 2017). The reasons for the variances are not always located in the accounting records, managers must sort through information to determine the causes of the difference. Lastly, the variance may not produce any useful information.

In: Accounting

What is the effect of decreasing the money supply on the interest rate? Question 1 options:...

What is the effect of decreasing the money supply on the interest rate?

Question 1 options:

Decrease the interest rate

Increase the interest rate

Question 2 (1 point)

What is the main cost of holding money/cash?

Question 2 options:

Prices of goods

The real inflation rate

The nominal interest rate

The rate of inflation

Question 3 (1 point)

What should the Federal Reserve do in the bond market to address a recession?

Question 3 options:

Sell bonds in order to decrease the money supply

Buy bonds in order to increase the money supply

Buy bonds in order to decrease the money supply

Sell bonds in order to increase the money supply

Question 4 (1 point)

Which of the following is true about interest rates?

Question 4 options:

There is a maximum rate which results in liquidity traps

There is a zero lower bound which results in liquidity traps

There is a maximum rate which stifles investment

There is a zero lower bound which results in bank runs

Question 5 (1 point)

What is the effect of the Federal Reserve selling bonds in the AD/AS model?

Question 5 options:

Decrease aggregate demand

Increase aggregate demand

Increase short-run aggregate supply

Decrease short-run aggregate supply

Question 6 (1 point)

Suppose that the MPC is 0.75 and the government reduces spending by $20 billion. How much will the aggregate demand curve shift as a result?

Question 6 options:

Increase AD by $15 billion

Reduce AD by $15 billion

Reduce AD by $20 billion

Increase AD by $80 billion

Reduce AD by $80 billion

Increase AD by $20 billion

Question 7 (1 point)

If the government lowers taxes, what will happen in the AD/AS model?

Question 7 options:

Short-run aggregate supply will decrease

Aggregate demand will decrease

Long-run aggregate supply will decrease

Short-run aggregate supply will increase

Aggregate demand will increase

Long-run aggregate supply will increase

Question 8 (1 point)

Which of the following fiscal policies would increase aggregate demand?

Question 8 options:

Increase government spending

Lower rates by buying bonds

Reducing the reserve rate

Increase taxes

Question 9 (1 point)

Which of the following is not an automatic stabilizer?

Question 9 options:

Unemployment insurance

Infrastructure spending

Food stamps

Income taxes

Question 10 (1 point)

Which of the following faces a bigger lag in terms of implementation?

Question 10 options:

fiscal policy

monetary policy

In: Economics

You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where...

You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during the year but paid $750,000 in dividends to common shareholders. Throughout the year, the firm purchased $5.5 million of property, plant, and equipment — the majority having a useful life of more than 20 years and falling under the alternative depreciation system. You have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $440,000. The purchase price for the represents additions property, plant, and equipment before depreciation. Finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 5% interest rate. What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar, if necessary.

$  

In: Finance

You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where...

You have just been hired as a financial analyst for Barrington Industries. Unfortunately, company headquarters (where all of the firm's records are kept) has been destroyed by fire. So, your first job will be to recreate the firm's cash flow statement for the year just ended. The firm had $100,000 in the bank at the end of the prior year, and its working capital accounts except cash remained constant during the year. It earned $5 million in net income during the year but paid $700,000 in dividends to common shareholders. Throughout the year, the firm purchased $5.6 million of property, plant, and equipment — the majority having a useful life of more than 20 years and falling under the alternative depreciation system. You have just spoken to the firm's accountants and learned that annual depreciation expense for the year is $440,000. The purchase price for the represents additions property, plant, and equipment before depreciation. Finally, you have determined that the only financing done by the firm was to issue long-term debt of $1 million at a 6% interest rate. What was the firm's end-of-year cash balance? Recreate the firm's cash flow statement to arrive at your answer. Write out your answer completely. For example, 5 million should be entered as 5,000,000. Round your answer to the nearest dollar, if necessary.

In: Finance