Supreme Fish is a company involved in fish farming in Vietnam. Its products are sold to supermarkets as well as restaurants throughout the world. Supreme Fish has a global market share of 40% for this type of fish. Supreme Fish has a US$150 million, 15 year bond issued 2 years ago. The bond pays a premium of 500 basis points over the SOFR. The bond is not rated. However, based on its yield, an equivalent rating would be BB. An institutional investor intends to sell its holdings of US$5 million of the bonds. As a buy-side bond analyst, you have been tasked to analyse the suitability of the bond for your fund.

Assess the credit risk issues related to the bond.

Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2018 year-end inventory is as follows:

Required:
1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory.

2.

Assuming that the company reports an inventory write-down as a line item in the income statement, for each of the LCNRV applications determine the amount of the loss.

If 5 years ago a company bought a $10,500 piece of equipment with $500 salvage value and 10 year usefull life and is using straight-line depreciation what is its book value now? If it revises estimated life to 15 years (10 more years left) what is revised annual depreciation?

What is the cost-allocation account for a natural resourse?

On January 1, Company sells merchandise and collects $5000 in cash which includes 6% sales tax. Journalize the sale.

Company’s employees earned $20,000 for the pay period ending January 31. The Company withholds $1530 FICA, $4373 Federal Income Tax and $585 State Income Tax. Journalize the entry.

On January 1 Company issues a 5 year $1,000,000 face value bond with a 5% annual coupon paid semiannually. The company issues it for $916,884 for an effective interest rate of 7% and uses the effective-interest amortization method. Journalize the issuance:

Towing Company manufactures and sells a single product for $40 per unit.
Variable costs are $30 per unit and fixed costs total $168,000. During
2019, the company sold 26,500 units of this product to customers. In
order to improve profitability, the president of Towing Company believes
the following changes should be made in 2020:

1. decrease the selling price of the product by 10%

2. automate a portion of the production process which will reduce
   variable costs by 5% per unit but will add an additional fixed
   cost of $16,310 per year

3. increase advertising by $49,420

Assume these changes are made. 
A) Calculate the number of units that Towing Company must sell in 2020 in order to earn a net income that is 20% greater than the net income earned in 2019.

B) Calculate the number of units that Towing Company must sell in 2020 in order to earn a target profit equal to 12% of sales.

Do larger universities tend to have more property crime? University crime statistics are affected by a variety of factors. The surrounding community, accessibility given to outside visitors, and many other factors influence crime rate. Let x be a variable that represents student enrollment (in thousands) on a university campus, and let y be a variable that represents the number of burglaries in a year on the university campus. A random sample of n = 8 universities in California gave the following information about enrollments and annual burglary incidents.

(b) Use a calculator to verify that Σx = 149.0, Σx² = 3193.22, Σy = 243, Σy² = 9985 and Σxy = 5280.8.

Compute r. (Round to 3 decimal places.)

Consider a simple model to estimate the effect of personal computer (PC) ownership on college grade point average for graduating seniors at a large public university
GPA= β0+ β1PC+u
where PC is a binary variable for graduating seniors at a large public university
Why might PC ownership be correlated with u?
Explain why PC is likely to be related to parents’ annual income. Does this mean parental income is a good IV for PC? Why or why not?
Suppose that, four years ago, the university gave grants to buy computers to roughly one-half of the incoming students, and the students that received grants were randomly chosen. Carefully explain how you would use this information to construct an IV for PC.
Using the IV you describe in (c), state the two equations/models you would use in a 2 staged least squares estimation:

The university wants to examine whether students spend enough time on their remote classes after switching to the online teaching. The university staff sends a survey to 50 random students and asks for the study time per week after the spring break. The mean study time per week of the sample is 25.5 hours. It is believed that the population standard deviation is 3.5 hours. The university wants to know whether the students have spent at least 23 hours per week on average in their remote study.

 What is the correct form of the statistical hypothesis?

 What is the value of the test statistics?

 If you decide to use the critical value approach to perform the test, what is the corresponding critical value for the test at 95% confidence level?

 If you decide to use the P-value approach to perform the test, what is your P-value?

 What is your conclusion at the 95% confidence level?

The acceptance rate for a university is 42 percent. Assuming the binomial to the normal distribution. Of the next 10 applications what is the probability that they will accept: (WHEN ROUNDING DO NOT ROUND ANY CALCULATION UNTIL THE VERY END)

a) Find the mean: μ = n ⋅ p =  round to a single decimal.

b) Calculate the standard deviation. σ = n ⋅ p ⋅ q =  . Round to 4 decimals.

c) Determine the probability that exactly four applicants will be accepted.  round to 4 decimals

d) Determine the probability that between four and six applications will be accepted.  round to 4 decimals.

e) Determine the probability that at least two of the applicants will be accepted. (You may use the complement rule here).  round to 4 decimals.

f) What is the probability for the university to accept none or more than 7 applications?  Round to 4 decimals. Would it be unusual for the university to accept no or more than 7 applicants?  Yes/No.

Zoysia University must purchase mowers for its landscape department. The university can buy six EVF mowers that cost $7,900 each and have annual, year-end maintenance costs of $1,775 per mower. The EVF mowers will be replaced at the end of Year 4 and have no value at that time. Alternatively, Zoysia can buy seven AEH mowers to accomplish the same work. The AEH mowers will be replaced after seven years. They each cost $6,900 and have annual, year-end maintenance costs of $2,225 per mower. Each AEH mower will have a resale value of $700 at the end of seven years. The university’s opportunity cost of funds for this type of investment is 7 percent. Because the university is a nonprofit institution, it does not pay taxes. It is anticipated that whichever manufacturer is chosen now will be the supplier of future mowers. What is the EAC of each type of mower?

Zoysia University must purchase mowers for its landscape department. The university can buy four EVF mowers that cost $7,800 each and have annual, year-end maintenance costs of $1,635 per mower. The EVF mowers will be replaced at the end of Year 4 and have no value at that time. Alternatively, Zoysia can buy six AEH mowers to accomplish the same work. The AEH mowers will be replaced after seven years. They each cost $6,800 and have annual, year-end maintenance costs of $1,625 per mower. Each AEH mower will have a resale value of $900 at the end of seven years. The university’s opportunity cost of funds for this type of investment is 7 percent. Because the university is a nonprofit institution, it does not pay taxes. It is anticipated that whichever manufacturer is chosen now will be the supplier of future mowers. What is the EAC of each type of mower?