The following information pertains to the City of Williamson for 2017, its first year of legal existence. For convenience, assume that all transactions are for the general fund, which has three separate functions: general government, public safety, and health and sanitation.

Compensated absences (such as vacations and sick days) are legally owed to general government workers at year-end total $21,500. These amounts will not be taken by the employees until so late in 2018 that the payment is not viewed as requiring 2017 current financial resources.

The city received a piece of art this year as a donation. It is valued at $14,100. It will be used for general government purposes. There are no eligibility requirements. The city chose not to capitalize this property.

The general government uses the storage shed that was acquired this year. It is being depreciated over 10 years using the straight-line method with no salvage value. The city uses the equipment for health and sanitation and depreciates it using the straight-line method over five years with no salvage value.

The investments are valued at $126,000 at the end of the year.

For the equipment that has been ordered but not yet received, the City Council (the highest decision-making body in the government) has voted to honor the commitment when the equipment is received.

1. a-1. Prepare a statement of activities for governmental activities for December 31, 2017.

2. a-2. Prepare a statement of net position for governmental activities for December 31, 2017.

Assume that Denis Savard Inc. has the following accounts at the end of the current year.

Prepare a classified balance sheet in good form. (List Current Assets in order of liquidity. For Land, Treasury Stock, Notes Payable, Preferred Stock Investments, Notes Receivable, Receivables-Officers, Inventory, Bonds Payable, and Restricted Cash, enter the account name only and do not provide the descriptive information provided in the question.)

It is January 1 of Year 2, Purchases for Yosef Company for Hanuary, February, and March of Year 2 are forecasted to be as follows: January, 200,000

February, 400,000

March, 500,000

20% of purchases are for cash. Of the credit purchases, 30% are paid during the month of the purchases, 50% in the month following the purchase, and 20% in the second month following the purchase. Total purchases for November and December of Year 1 were 200,000 and 400,000 respectively. What is the forecasted amount of the total cash payments for purchases in january of year 27(Note this is the sum of immediate payments from cash purchases, same-month cash payments of credit purchases and cash payments for credit purchases made in prior months).

The Cornerstone Corporation produces and sells a single product. The following data refers to the year just completed:

a. If the managers use the variable costing approach to prepare an income statement, what is the dollar amount for the contribution margin account that would be reported on this type of income statement? Show all detailed supporting calculations that were used to determine the final answer.

b. If the managers use the absorption (traditional financial) costing approach to prepare an income statement, what is the dollar amount for the gross margin account that would be reported on this type of income statement? Show all detailed supporting calculations that were used to determine the final answer.

c. Provide a concept definition for the terms contribution margin and gross margin, and then explain why managers might prefer to use the contribution margin analysis approach to enable more effective decision making, rather than focusing on a gross margin that is part of the absorption costing approach.

10. You are offered an annuity that will pay you $200,000 once per year, at the end of the year, for 25 years. The first payment will arrive one year from now. The last payment will arrive twenty five years from now. Suppose your annual discount rate is ?? = 5.25%, how much are you willing to pay for this annuity? (hint: this is the same as the present value of an annuity.)

11. You would like to develop an office building. Your analysts forecast that it will cost you $1,000,000 immediately (time 0), and it will cost you $500,000 in one year (time 1). They forecast you can sell the building for $2,400,000 in two years (time 2). If your discount rate is ?? = 25%, what is the net present value of this investment?

12. What is the IRR of the project in question 12? (hint: if you are using an ordinary calculator, all you need to do is to solve a quadratic equation).

Xenon Corp. makes 63,200 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows:

An outside supplier has offered to sell the company all of the 63,200 parts it needs for $78.50 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $365,750 per year. If the part were purchased from the outside supplier, all of the direct labor cost of the part would be avoided. However, 63% of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products.

Questions

1. How much of the unit product cost of $83.85 is relevant in the decision of whether to make or buy the part?

my answer= $64.57

2. What is the net total dollar advantage (disadvantage) of purchasing the part rather than making it?

my answer= $-514,500

3. Should Xenon continue to manufacture the part or buy it?

4. What effect do fixed costs have on the answer you gave for Question 3?

5. What would have to happen to fixed costs for your answer to Question 3 to be different?

6. What is the maximum amount the company should be willing to pay an outside supplier per unit for the part if the supplier commits to supplying all 63,200 units required each year?

my answer= $70.36

I feel like my answers so far are correct, but would like to make sure. Help with the other question are much appreciated.

1. Find the price of a three year, 7% coupon bond that is yielding 6%. The principal is 1000

2. Timco bonds are currently valued at 1015. They have 4 years until maturity and the coupon rate is 4%. What is the yield?

3. Last year Timco paid a 2 dividend. We think that next year they will pay a 2.26 dividend. What is Timco's capital gains yield?

Presented below are a number of balance sheet items for Shamrock, Inc., for the current year, 2017.

Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of debt investments (trading) are the same. (List Current Assets in the order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment.)

. The following events apply to the first year of operations for Mestro Financial Services Company:

1. Acquired $28,000 cash by issuing common stock on January 1, 2018.

2. Purchased $1,000 of supplies on account.

3. Paid $12,000 cask in advance for a one-year lease on office space.

4. Earned $23,000 of consulting revenue on account.

5. Incurred $16,000 of general operating expenses on account.

6. Collected $20,000 cash from receivables.

7. Paid $13,000 cash on accounts payable.

8. Paid a $1,000 cash dividend to stockholders.

9. There was $200 of supplies on hand.

10. The one-year lease on the office space was effective beginning on October 1, 2018.

11. There was $1,200 of accrued salaries at the end of 2018.

Required:

A. Record the preceding events in general journal format.

B. Post the transaction data from the general journal into general ledger T-accounts.

C. Prepare an adjusted trial balance.

D. Prepare an income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows.

E. Prepare the appropriate closing entries in general journal format.

Consider an asset that costs $130 today. You are going to hold it for 1 year and then sell it. Suppose that there is a 25 percent chance that it will be worth $90 in a year, a 25 percent chance that it will be worth $130 in a year, and a 50 percent chance that it will be worth $160 in a year.

Instructions: In parts a, b, and d round your answers to 2 decimal places. If you are entering any negative numbers, be sure to include a negative sign (-) in front of those numbers.

a. What is its average expected rate of return?

b. Next, figure out what the investment’s average expected rate of return would be if its current price were $140 today.  

c. Does the increase in the current price increase or decrease the asset’s average expected rate of return?

   Increase or Decrease

d. At what price would the asset have a zero average expected rate of return?

     $