In: Accounting
Pool Corporation, Inc., is the world's largest wholesale distributor of swimming pool supplies and equipment. It is a publicly-traded corporation that trades on the NASDAQ exchange. The majority of Pool's customers are small, family-owned businesses. Assume that Pool issued bonds with a face value of $900,000,000 on January 1 of this year and that the coupon rate is 6 percent. At the time of the borrowing, the annual market rate of interest was 2 percent. The debt matures in 9 years, and Pool makes interest payments semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided. Round intermediate calculations and final answers to whole dollars.)
Required:
1. What was the issue price on January 1 of this year?
2. What amount of interest expense should be recorded on June 30 and December 31 of this year?
3. What amount of cash interest should be paid on June 30 and December 31 of this year?
4. What is the book value of the bonds on June 30 and December 31 of this year?
In: Accounting
1. A tangible noncurrent asset which cost is amortized over its estimated useful life
a. Supplies and materials
b. Property, plant and equipment
c. Goodwill
d. Inventory
2. The Retained Earnings shows which of the following
a. the accumulated net earnings of the corporation that has not been distributed as dividends
to shareholders
b. the accumulated earnings without regard to dividends distributed
c. the accumulated gross revenues less cost of sales
d. the accumulated gross revenues
3. When a company incurs a loss on the sale of machinery, it should be reported on the statement of cash flows as which type of activity?
a. A non-cash activity.
b. An operating activity under the direct method.
c. An adjustment to net income under the indirect method.
d. An investing activity cash outflow.
4. Revenues do not arise from
a. Sales of merchandise to customers.
b. Rendering of services.
c. Use of the firm’s resources by others.
d. Issuance of common stock at an amount in excess of par value.
5. During the year 2010, a firm’s assets increased by Php30,000 and owner’s equity decreased
by Php20,000. What is the net effect on the liabilities for the year 2010?
a. Increase by Php10,000.
b. Decrease by Php50,000.
c. Decrease by Php10,500.
d. Increase by Php50,000.
6. A technique for evaluating financial statements that expresses the relationship among selected items of financial statement date is
a. common size analysis.
b. horizontal analysis.
c. ratio analysis.
d. vertical analysis.
7. Horizontal analysis is also called
a. linear analysis.
b. vertical analysis.
c. trend analysis.
d. common size analysis.
8. The formula for horizontal analysis is the current year amount
a. divided by the base year amount.
b. minus the base year amount divided by the base year amount.
c. minus the base year amount divided by the current year amount.
d. plus the base year amount divided by the base year amount.
9. Horizontal analysis evaluates financial statement data
a. within a period of time.
b. over a period of time.
c. on a certain date.
d. as it may appear in the future.
10. Assume the following sales data for a company
2008 $1,000,000 2007 900,000 2006 750,000 2005 500,000
If 2005 is the base year, what was the percentage increase in sales from 2005 to 2007?
a. 100% b. 180% c. 80% d. 55.5%
In: Accounting
The data set below contains 100 records of heights and
weights for some current and recent Major League
Baseball (MLB) players.
Note: BMI 18.5 - 24.9 normal group, 25 - 29.9 overweight group
and > 30 obese group.
Use the data set to answer the following questions in order:
1.A researcher believes that there is a difference between the BMI of players in the National League vs American League. At a 5% level of significance, is there enough evidence to support the researcher’s claim. (Justify your response by conducting a pooled 2-Sample Mean Hypothesis T-Test.)
2.A researcher believes that a new dietary program can reduce BMI of MLB players. Sixteen players were randomly selected across the MLB league and participated in the new diet program. The 16 MLB players’ BMI was calculated before they started the program and then after 6 months. (see Excel Data File) At a 10% level of significance, is there enough evidence to suggest that the new dietary program for MLB players reduces BMI?
American League
Height(inches) Weight(pounds) Age- BMI
74 180 23 23.1
74 185 23 23.8
74 160 26 20.5
69 180 28 26.6
70 185 34 26.5
73 180 27 23.7
72 188 31 25.5
77 220 33 26.1
74 210 33 27.0
70 195 31 28.0
Diet Program
Height(inches) Weight(pounds) before Weight(pounds) After BMI
Before BMI After
73 211 209 27.8 27.6
73 200 193 26.4 25.5
70 180 183 25.8 26.3
70 190 192 27.3 27.5
70 170 166 24.4 23.8
76 230 225 28.0 27.4
68 155 168 23.6 25.5
71 185 190 25.8 26.5
72 185 178 25.1 24.1
75 200 192 25.0 24.0
75 225 222 28.1 27.7
75 225 232 28.1 29.0
75 220 218 27.5 27.2
68 160 176 24.3 26.8
74 205 200 26.3 25.7
78 235 219 27.2 25.3
National League
Height(inches) Weight(pounds) Age BMI
76 230 27 28.0
68 155 26 23.6
71 185 26 25.8
72 185 28 25.1
75 200 25 25.0
75 225 33 28.1
75 225 35 28.1
75 220 31 27.5
68 160 29 24.3
74 205 29 26.3
78 235 28 27.2
71 250 34 34.9
73 210 31 27.7
height Weight(pounds) Age
70 195 25
74 180 23
74 215 35
72 210 31
72 210 35
73 188 36
69 176 29
69 209 31
71 200 35
76 231 30
71 180 27
73 188 24
73 180 27
74 185 23
74 160 26
69 180 28
70 185 34
72 197 30
73 189 28
75 185 22
78 219 23
79 230 26
76 205 36
74 230 31
76 195 32
72 180 31
71 192 29
75 225 29
77 203 32
74 195 36
73 182 26
74 188 27
78 200 24
73 180 27
75 200 25
73 200 28
75 245 30
75 240 31
74 215 31
69 185 32
71 175 28
74 199 28
73 200 29
73 215 24
76 200 22
74 205 25
74 206 27
70 186 33
72 188 31
77 220 33
74 210 33
70 195 31
76 244 37
75 195 26
73 200 23
75 200 25
76 212 24
76 224 35
78 210 27
74 205 31
74 220 28
76 195 30
77 200 25
81 260 24
78 228 30
75 270 26
77 200 23
75 210 26
76 190 25
74 220 32
72 180 24
72 205 25
75 210 24
73 220 24
73 211 32
73 200 30
70 180 24
70 190 32
70 170 23
76 230 27
68 155 26
71 185 26
72 185 28
75 200 25
75 225 33
75 225 35
75 220 31
68 160 29
74 205 29
78 235 28
71 250 34
73 210 31
76 190 38
74 160 24
74 200 26
79 205 24
75 222 24
73 195 28
76 205 33
74 220 36
In: Statistics and Probability
Company: Tesla
1. Identify a publicly-traded U.S.-based company (other than Target) in which you have some interest, and which has significant amounts of inventory. Such a company likely will be manufacturer (e.g., Tesla, Dover, Pfizer, Boeing, etc.) or (re)seller (e.g., McDonald’s, Costco, Home Depot, Kroger, CVS, etc.).
2. Obtain the latest audited annual financial statements for the company identified. Generally, that will mean either:
a. Use the information in Appendix A of your text, Accessing the EDGAR Database through the Internet, to obtain and download or print as a pdf the company’s latest, complete Form 10-K, including its complete financial statements; or
b. Navigate the company’s website to find its investor relations page from which you can download or print as a pdf its latest annual report or Form 10-K.
3. The financial statements downloaded in item 2 will include a balance sheet, income statement, statement of cash flows, and statement of changes in stockholder’s equity for (at least) the last two fiscal years.
a. Use the information in those statements to compute the financial ratios presented and described in Appendix C of your text for each of the most recent two years for which data are presented.
b. Immediately following your computation of each ratio pair, provide your assessment of the aspect of the company’s performance measured by the ratio. Please do not get bogged down in this part of the assignment. Truly, just write what you think. I’m not looking for a “textbook” answer here; we have an entire term to come up with those.
4. Submit your responses along with the company’s primary financial statements (i.e., its balance sheet, income statement, statement of cash flows, and statement of changes in stockholder’s equity, only) as a single pdf file.
In: Accounting
The following table shows the past annual returns for Stock A and Stock B, please find the expected return, standard deviation and coefficient of variation for Stock A, Stock B and a Portfolio that puts 40% weight on Stock A and 60% weight on Stock B.
Year Stock A Returns Stock B Returns
2005 10.30% 10.71%
2006 -0.10% 25.00%
2007 23.30% 0.38%
2008 2.20% 26.20%
2009 14.00% 11.52%
In: Finance
Twelve-hour shifts are problematic for patient and nurse safety, yet hospitals continue to keep the 12-hour shift schedule. In 2004, the Institute of Medicine (Board on Health Care Services & Institute of Medicine, 2004) published a report that referred to studies as early as 1988 that discussed the negative effects of rotating shifts on intervention accuracy. Workers with 12-hour shifts experienced more fatigue than workers on 8-hour shifts. In another study done in Turkey by Ilhan, Durukan, Aras, Turkcuoglu, and Aygun (2006), factors relating to increased risk for injury were age of 24 years or younger, less than 4 years of nursing experience, working in surgical intensive care units, and working for more than 8 hours. As a clinician reading these studies, what would your next step be?
In: Nursing
On January 1, 2005, Eden Ventures, Inc., received a three-year, $1 million loan with interest payments due at the end of each year and the principal to be repaid on December 31, 2004. The interest rate for the first year is the prevailing market rate of 9 percent, and the rate each succeeding year will be equal to the prevailing market rate on January 1 of that year. Eden also entered into an interest rate swap agreement related to this loan. Under the terms of the swap agreement, in the years 2003 and 2004, Eden will receive a swap payment based on the principal amount of $1 million. If the January 1 interest rate is greater than 9 percent, Eden will receive a swap payment for the difference; and if the January 1 interest rate is less than 9 percent, Eden will make a swap payment for the difference. The swap payments are made on December 31 of each year. On January 1, 2003, the interest rate is 8 percent, and on January 1, 2004, the interest rate is 12 percent.
Requirements :
Make the journal entries for the interest rate swap on Eden's Books
at the dates shown below ( assume the interest rate swap is not
designated as hedging instrument) ignore the hedged item, example,
the loan). For purposes of estimating future swap payments,assume
that the current interest rate is the best forecast of the future
interest rate ( round all entries to the nearest dollar)
1.) Januart 1, 2002
2.) December 31, 2002
3.) December 31, 2003
4.) December 31, 2004
In: Accounting
Crane Inc., a publicly traded company, had 291,000 common shares outstanding on December 31, 2019. During 2020, the company issued 6,600 shares on May 1 and retired 15,000 shares on October 31. For 2020, the company reported net income of $294,530 after a loss from discontinued operations of $44,000 (net of tax). Calculate earnings per share for 2020 as it should be reported to shareholders. (Round answer to 2 decimal places, e.g. 15.25.) Earnings per share Income per share before discontinued operations $ Discontinued operations loss per share, net of tax $ Net income per share $ Assume that Crane Inc. issued a 3-for-1 stock split on January 31, 2021, and that the company’s financial statements for the year ended December 31, 2020 were issued on February 15, 2021. Calculate earnings per share for 2020 as it should be reported to shareholders. b(Round answer to 2 decimal places, e.g. 15.25.) Earnings per share Income per share before discontinued operations $ Discontinued operations loss per share, net of tax $ Net income per share $ Is it possible for a corporation to have a simple capital structure one fiscal year and a complex capital structure in another fiscal year? Choose the answer from the menu in accordance to the question statement
In: Accounting
Latinum Star Corporation (Latinum), a publicly traded company with a December 31 year-end,
conducts business activities primarily related to the design, development, manufacture, and
assembly of passenger cars, recreational and sport-utility vehicles, minivans, and trucks. In the
design of Latinum’s iconic Brice sports car line, the company used asbestos in the manufacturing
of brake shoes and gaskets because of its heat resistance. As described below, two class-action
lawsuits have been filed against Latinum - one in 2016, and the other in 2017 - by automotive
mechanics or their surviving family members seeking recovery because of the mechanics’
alleged exposure to asbestos from Latinum’s Brice automobile parts.
In November 2016, Latinum was served a complaint in the U.S. District Court alleging that 50
automotive mechanics suffered severe illnesses that led to death as a result of exposure to
asbestos from parts manufactured by Latinum. The case was brought against Latinum by
surviving family members as a class-action lawsuit seeking damages totaling approximately
$100 million. Latinum did not believe the asbestos used in the manufacturing of the Brice brake
shoes and gaskets caused the mechanics’ deaths and immediately retained external legal counsel
to vigorously defend the claim made against Latinum in this complaint. Since this legal matter
was in its early stages of discovery, Latinum determined that (1) the risk of potential loss at that
time was remote and (2) no amount of potential damages could be reasonably estimated.
Therefore, Latinum made no disclosure of the legal matter in its SEC Form 10-K for the year
ended December 31, 2016.
In October 2017, Latinum was served a second complaint alleging that an additional 100
mechanics suffered severe illnesses that led to disability because of exposure to asbestos from
Latinum’s Brice automobile parts. This matter was also filed as a class-action lawsuit and seeks
damages from Latinum totaling approximately $250 million.
The first class-action lawsuit remained in the discovery phase for almost the entire year of 2017.
In December 2017, evidence was discovered by Latinum’s external counsel relating to both of
the lawsuits that led counsel to believe that Latinum could potentially, but not probably, be liable
for a percentage of the recovery sought by the claimants in each of those matters. Although
external counsel could not estimate the exact percentage of Latinum’s potential exposure,
counsel believed, on the basis of historical precedence, that the amount of potential loss was less
than 50 percent of the amount claimed.
Historical precedence exists from two similar asbestos class-action lawsuits against other
automotive manufacturers that were litigated within the past five years. One of the lawsuits
resulted in a verdict in court in favor of the mechanics and their surviving family members. This
lawsuit resulted in the defendant automotive manufacturer remitting payments to the plaintiffs
equal to 70 percent of the amount claimed. The other lawsuit was dismissed in court with
judgment in favor of the automotive manufacturer. In that second case, the automotive
manufacturer made no claim payments to the plaintiffs. The plaintiffs appealed the court’s final
decision, but the court denied the plaintiffs’ appeal.
After further assessment of the evidence discovered in the two lawsuits against Latinum, as of
December 31, 2017, Latinum’s General Counsel did not believe that it was probable that a loss
would occur and could not reasonably estimate an exact amount of the risk of potential loss as a
result of the two lawsuits.
(You may assume that no significant developments will occur in the discovery phase related to
the two lawsuits during the three-month period ended March 31, 2018).
Assume you are an in-house (internal) staff accountant at Latinum. Tess La, who recently joined
Latinum as its Chief Financial Officer (CFO), has asked you to research and recommend the
appropriate accounting treatment of the lawsuits filed against Latinum for the year ended
December 31, 2017. Using the codification as resource
In: Accounting