Budgets are developed months before the end of the current year and are best guess estimates of future performance. What do you think might be some pitfalls of budgeting, and how can they be avoided?

Periodic Inventory by Three Methods

The units of an item available for sale during the year were as follows:

There are 1,225 units of the item in the physical inventory at December 31. The periodic inventory system is used. Do not round intermediate calculation and round final answer to nearest whole value.

The following information was taken from the records of Raiders Inc. for the year 2017. Income tax applicable to income from continuing operations $260,000; income tax applicable to loss on discontinued operations $36,000; income tax applicable to unusual gain $45,000; income tax applicable to unusual loss $28,000. There is also unrealized holding gain on available-for-sale securities $20,000.

Instructions:

(a). Prepare multiple-step income statement for 2017.

(b). Prepare retained earnings statement for 2017.

(c). Show how comprehensive income is reported using the two statement format.

What are the advantages and disadvantages of a firm using the same external auditors year after year?

What are the advantages and disadvantages of firms changing external auditors every few years?

Jet Company's summarized financial statement information for the beginning of the year is as follows:

Marketable Securities $50,000

All Other Assets $150,000

Total Liabilities $80,000

Total Stockholders' Equity $120,000

During the year, Jet had Revenue of $74,000, Expenses of $50,000 and paid cash dividends of $9,000. Marketable Securities increased in value by 7% , liabilities remained unchanged for the year and Jet had 15,000 shares outstanding all year. Calculate the information that Jet would report on its financial statements at the end of the year.   

net income

total assets

total libilites

total equity

eps

Problem #1: The stockholders’ equity section of Whaler Inc. at the beginning of the current year appears below.

During the current year, the following transactions occurred.

1. The company issued to the stockholders 500,000 rights. Ten rights are needed to buy one share of stock at $21. The rights were void after 30 days. The market price of the stock at this time was $22 per share.
2. The company sold to the public a $1,000,000, 6% bond issue at 106. The company also issued with each $1,000 bond a detachable stock purchase warrant, which provided for the purchase of common stock at $20 per share. Shortly after issuance, similar bonds without warrants were selling at 97 and the warrants at $10.
3. All but 75,000 of the rights issued in (1) were exercised in 30 days.
4. At the end of the year, 60% of the warrants in (2) had been exercised.
5. During the current year, the company granted stock options for 100,000 shares of common stock to company executives. The company, using a fair value option-pricing model, determines that each option is worth $2.60. The option price is $25. The options were to expire at year-end and were considered compensation for the current year.
6. 20,000 shares related to the stock-option plan were exercised.

Instructions

Prepare general journal entries for the current year to record the transactions listed above.

16. Below is a table for the present value of $1 at Compound interest.

Below is a table for the present value of an annuity of $1 at compound interest.

Using the tables above, what would be the present value of $12,499 (rounded to the nearest dollar) to be received 4 years from today, assuming an earnings rate of 10%?

a.$9,899

b.$8,537

c.$12,499

d.$39,622

17. Project A requires an original investment of $49,400. The project will yield cash flows of $13,400 per year for seven years. Project B has a calculated net present value of $2,730 over a four year life. Project A could be sold at the end of four years for a price of $17,700.

Below is a table for the present value of $1 at Compound interest.

Below is a table for the present value of an annuity of $1 at compound interest.

(a) Using the present value tables above, determine the net present value of Project A over a four-year life with salvage value assuming a minimum rate of return of 12%. Round your answer to two decimal places.
$

(b) Which project provides the greatest net present value?

20. The management of Arkansas Corporation is considering the purchase of a new machine costing $490,000. The company's desired rate of return is 10%. The present value factors for $1 at compound interest of 10% for 1 through 5 years are 0.909, 0.826, 0.751, 0.683, and 0.621, respectively. In addition to the foregoing information, use the following data in determining the acceptability of this investment:

The net present value for this investment is

a.$(16,170)

b.$55,200

c.$(126,800)

d.$36,400

21. The management of Wyoming Corporation is considering the purchase of a new machine costing $375,000. The company's desired rate of return is 6%. The present value factor for an annuity of $1 at interest of 6% for 5 years is 4.212. In addition to the foregoing information, use the following data in determining the acceptability of this investment:

The present value index for this investment is

a.1.25

b.1.05

c.0.95

d.1.00

1. In a person without Type 2 diabetes and with a 10-year ASCVD risk determined to be 15% with two other risk factors, what do the 2018 cholesterol guidelines suggest?
   1. The person may be withheld statin therapy because his 10-year risk is <20%
   2. The person should be considered for moderate intensity statin therapy
   3. The person is recommended for high intensity statin therapy
   4. None of the above
2. Which of the following is NOT true regarding the Pooled Cohort Risk Score (also called the ASCVD Risk Estimator)?
   1. It is not appropriate for use in persons with pre-existing myocardial infarction
   2. It predicts the lifetime risk of ASCVD in persons aged 20-59 years
   3. It includes the prediction of total cardiovascular disease including heart failure
   4. It allows for the prediction of ASCVD in persons with diabetes
   5. All of the above are true

A bank offers you two rates. The first is a 5% rate on a 30 year self liquidating mortgage for 75% of the 400,000 value. The second option is 7.5% for 90% financing also on 30 year amortization. What is the marginal cost of borrowing

How do I do this in financial calculator please explain. Below is the answer and step but I do not understand it. Help me please.