Pratt is ready to graduate and leave College Park. His future employer (Ferndale Corp.) offers the following four compensation packages from which Pratt may choose. Pratt will start working for Ferndale on January 1, year 1.
| Benefit Description | Option 1 | Option 2 | Option 3 | Option 4 | ||||||
| Salary | $ | 60,000 | $ | 50,000 | $ | 45,000 | $ | 45,000 | ||
| Health insurance | No coverage | $ | 5,000 | $ | 5,000 | $ | 5,000 | |||
| Restricted stock | 0 | 0 | 1,000 | shares | 0 | |||||
| NQO's | 0 | 0 | 0 | 100 | options | |||||
Assume that the restricted stock is 1,000 shares that trade at $5 per share on the grant date (January 1, year 1) and are expected to be worth $10 per share on the vesting date at the end of year 1 and that no 83(b) election is made. Assume that the NQOs (100 options that each allow the employee to purchase 10 shares at $5 exercise price). The stock trades at $5 per share on the grant date (January 1, year 1) and is expected to be worth $10 per share on the vesting date at the end of year 1 and that the options are exercised and sold at the end of the year. Also assume that Pratt spends on average $3,000 on health-related costs that would be covered by insurance if he has coverage. Assume that Pratt's marginal tax rate is 35 percent. Assume that Pratt spends $3,000 in after-tax dollars for health expenses when he doesn't have health insurance coverage (treat this as an outflow), and that there is no effect when he has health insurance coverage. (Ignore FICA taxes and the time value of money considerations).
Required:
In: Accounting
In an amusement park ride called The Roundup, passengers stand inside a 19.0 m -diameter rotating ring. After the ring has acquired sufficient speed, it tilts into a vertical plane
a)Suppose the ring rotates once every 4.50 s . If a rider's mass is 55.0 kg , with how much force does the ring push on her at the top of the ride?
b)Suppose the ring rotates once every 4.50 s . If a rider's mass is 55.0 kg , with how much force does the ring push on her at the bottom of the ride?
c)What is the longest rotation period of the wheel that will prevent the riders from falling off at the top?
In: Physics
Mercer Corporation acquired $400,000 of Park Company’s bonds on June 30, 2018, for $409,991.12. The bonds carry a 12% stated interest rate and pay interest semiannually on June 30 and December 31. The appropriate market interest rate is 11%, and the bonds are due June 30, 2021.
Required:
| 1. | Prepare an investment interest income and premium amortization schedule, using the: |
| a. | straight-line method |
| b. | effective interest method |
| 2. | Prepare journal entries to record the December 31, 2018, and December 31, 2020, interest receipts using both methods. |
In: Accounting
In: Finance
Tempe Office Services and Supplies (TOSS) provides various
products and services in the Tempe Research Park, home to numerous
high-tech and bio-tech companies. Making color copies is one of its
most popular and profitable services. The controller performed a
regression analysis of data from the Color Copy Department with the
following results:
| Intercept | 139.68693 |
| R square | 0.9014 |
| Number of observations | 6 |
| X coefficient | 0.075859 |
The regression output was based on the following data:
| Month | Number of Color Copies | Color Copy Department Costs | ||||
| July | 20,550 | $ | 1,695 | |||
| August | 22,650 | 1,810 | ||||
| September | 21,650 | 1,830 | ||||
| October | 19,400 | 1,565 | ||||
| November | 18,400 | 1,555 | ||||
| December | 21,750 | 1,820 | ||||
Required:
1. What is the variable cost per color copy for TOSS?
2. What is the fixed cost for the Color Copy Department?
3. Based on the regression output obtained by the controller, what cost formula should be used to estimate future total costs for the Color Copy Department? Enter answer as an equation in the form of y = a + bx.
5-a. Use the high-low method to estimate the variable and fixed costs for the Color Copy Department.
5-b. What cost formula should be used based on your analysis? Enter answer as an equation in the form of y = a + bx.
6. If 21,300 copies are made during January, what is the total cost predicted by each method?
In: Accounting
I was walking my dog Baroness in the park yesterday. She’s really sweet and I wanted to get a picture of her – a really detailed picture of her – so I set the shutter speed to 1/250th of a second. I noticed that an f/stop setting of 2.8 gave me a really nice picture of her - that is to say, the exposure (the amount of light) was really good. BUT I noticed that the tree behind her and the pond weren’t in focus and I really wanted to see all of it. So I decided change the settings so that Bear and the scenery were in focus. What settings should I change on my camera?
-. And in what direction?
. Later we were tossing football in a big grassy area. She’s a great receiver – Air Bud has nothing on her. I told her to “go long” up the sideline and she took off running. I was thinking about how to get a good picture of her when she was moving so fast. As she ran back past me I set my shutter speed to 1/1000th of a second in order to get a good shot of her. What should I set my f/stop setting to in order to have the same total exposure? (original settings are in bold)
f-stop 1, 1.4, 2, 2.8, 4, 5.6, 8, 11, 16, 22, 32
shutter 1/15, 1/30, 1/60, 1/125, 1/250, 1/500, 1/1000
In: Physics
Cullumber Corporation, an amusement park, is considering a capital investment in a new exhibit. The exhibit would cost $179,935 and have an estimated useful life of 9 years. It can be sold for $64,800 at the end of that time. (Amusement parks need to rotate exhibits to keep people interested.) It is expected to increase net annual cash flows by $25,800. The company’s borrowing rate is 8%. Its cost of capital is 10%. Click here to view the factor table.
Calculate the net present value of this project to the company and determine whether the project is acceptable. (If the net present value is negative, use either a negative sign preceding the number eg -45 or parentheses eg (45). For calculation purposes, use 5 decimal places as displayed in the factor table provided. Round present value answer to 0 decimal places, e.g. 125.)
| Net present value | $enter the net present value in dollars rounded to 0 decimal places |
| The project select an option is unacceptableis acceptable. |
In: Finance
Alternative Inventory Methods
Park Company's perpetual inventory records indicate the following transactions in the month of June:
Units Cost/Unit
Inventory, June 1 200 $3.20
Purchases:
June 3 200 3.50
June 17 250 3.60
June 24 300 3.65
Sales:
June 6 300
June 21 200
June 27 150
Required:
1. Compute the cost of goods sold for June and the inventory at the end of June using each of the following cost flow assumptions: If required, round your answers to the nearest dollar.
FIFO
Cost of Goods Sold $ _____________
Ending Inventory $ ______________
LIFO (Round your intermediate calculations and final answers to the nearest cent.)
Cost of Goods Sold $ ___________
Ending Inventory $ _____________
Average cost (In your computations, round new per unit costs to the nearest cent. Round your intermediate computations and final answers to the nearest dollar.)
Cost of Goods Sold $ ___________
Ending Inventory $ ____________
In: Accounting
Mercer Corporation acquired $400,000 of Park Company’s bonds on June 30, 2018, for $409,991.12. The bonds carry a 12% stated interest rate and pay interest semiannually on June 30 and December 31. The appropriate market interest rate is 11%, and the bonds are due June 30, 2021.
Required: 1. Prepare an investment interest income and premium amortization schedule, using the:
a. straight-line method
b. effective interest method
2. Prepare journal entries to record the December 31, 2018, and December 31, 2020, interest receipts using both methods.
In: Accounting
At a company picnic held at an out-of-town park, a co-worker’s child falls off the monkey bars. Based on the bruising and slight change in shape of her forearm, you suspect a fracture. The parents give permission for you to give first aid care, but they insist on transporting her to advanced care themselves. You search for materials in your environment to use for splinting her injury.
What material could you use to splint the child's arm?
What parts of the arm must be immobilized?
Describe how you would apply the splint.
In: Nursing