Exercise 194
The financial statements of Lowz Company appear below:
| LOWZ COMPANY Comparative Balance Sheet December 31 |
|||||||||
| 2020 | 2019 | ||||||||
| Assets | |||||||||
| Cash | $36,000 | $23,000 | |||||||
| Accounts receivable | 25,000 | 34,000 | |||||||
| Merchandise Inventory | 32,000 | 15,000 | |||||||
| Property, plant, and equipment | 50,000 | 78,000 | |||||||
| Accumulated depreciation | (21,000 | ) | (24,000 | ) | |||||
| Total | $122,000 | $126,000 | |||||||
| Liabilities and Stockholder's Equity | |||||||||
| Accounts payable | $18,000 | $23,000 | |||||||
| Income taxes payable | 9,000 | 8,000 | |||||||
| Bonds payable | 8,000 | 33,000 | |||||||
| Common stock | 28,000 | 24,000 | |||||||
| Retained earnings | 59,000 | 38,000 | |||||||
| Total | $122,000 | $126,000 | |||||||
| LOWZ COMPANY Income Statement For the Year Ended December 31, 2020 |
|||||
| Sales | $400,000 | ||||
| Cost of goods sold | 270,000 | ||||
| Gross profit | 130,000 | ||||
| Operating expenses | 45,000 | ||||
| Income from operations | 85,000 | ||||
| Interest expense | 5,000 | ||||
| Income before income taxes | 80,000 | ||||
| Income tax expense | 24,000 | ||||
| Net income | $56,000 | ||||
| The following additional data were provided: | ||
| 1. | Dividends declared and paid were $35,000. | |
| 2. | During the year, equipment was sold for $17,000 cash. This equipment cost $28,000 originally and had a book value of $17,000 at the time of sale. | |
| 3. | All depreciation expense is in the operating expenses. | |
| 4. | All sales and purchases are on account. | |
| 5. | Accounts payable pertain to merchandise suppliers. | |
| 6. | All operating expenses except for depreciation were paid in cash. | |
Prepare a statement of cash flows for Lowz Company using the direct
method. (Show amounts that decrease cash flow with
either a - sign e.g. -15,000 or in parenthesis e.g.
(15,000).)
In: Accounting
I need some guidance on question 1c.
(1) (A) Between 2001 and 2011, the real (2018 US $) price of a barrel of oil rose at a rate of about 13% per year in real terms to around $124 per barrel in 2011, but the real price fell to $46 per barrel in 2016, before rebounding in 2018 to $71 per barrel. If prices continue increasing from their 2018 price of $71 per barrel through 2028 at a more modest rate of 7% year in real terms, what will be the price of oil in 2028? Assume these prices are for December 31 of each year.
(B) Suppose the price of gasoline in 2018 was $2.75 per gallon, and every $1 per barrel increase in the price of oil causes the price of gasoline to increase by $0.025 per gallon. If SouthWestern Ohio gasoline distribution company bought a forward contract for delivery of gasoline from Exxon in 2019 for $2.80 per gallon and in 2020 for $2.80 per gallon, based on your oil price projection in (A), will these contracts save them money? Be sure to show how you arrived at your answer.
(C) Suppose you are the operator of the East Lima International Refinery LLC, and you buy a call option for crude oil to refine in 2020. Your call option has a strike price of $59, with no option premium, and it expires on December 31, 2019. If prices rise as predicted above, will you make money on the call option? If so, how much? If not, what do you do on December 31, 2019 when the option expires?
In: Finance
The financial statements of Lowz Company appear below:
| LOWZ COMPANY Comparative Balance Sheet December 31 |
|||||||||
| 2020 | 2019 | ||||||||
| Assets | |||||||||
| Cash | $36,000 | $23,000 | |||||||
| Accounts receivable | 25,000 | 34,000 | |||||||
| Merchandise Inventory | 32,000 | 15,000 | |||||||
| Property, plant, and equipment | 50,000 | 78,000 | |||||||
| Accumulated depreciation | (21,000 | ) | (24,000 | ) | |||||
| Total | $122,000 | $126,000 | |||||||
| Liabilities and Stockholder's Equity | |||||||||
| Accounts payable | $18,000 | $23,000 | |||||||
| Income taxes payable | 9,000 | 8,000 | |||||||
| Bonds payable | 8,000 | 33,000 | |||||||
| Common stock | 28,000 | 24,000 | |||||||
| Retained earnings | 59,000 | 38,000 | |||||||
| Total | $122,000 | $126,000 | |||||||
| LOWZ COMPANY Income Statement For the Year Ended December 31, 2020 |
|||||
| Sales | $400,000 | ||||
| Cost of goods sold | 270,000 | ||||
| Gross profit | 130,000 | ||||
| Operating expenses | 45,000 | ||||
| Income from operations | 85,000 | ||||
| Interest expense | 5,000 | ||||
| Income before income taxes | 80,000 | ||||
| Income tax expense | 24,000 | ||||
| Net income | $56,000 | ||||
| The following additional data were provided: | ||
| 1. | Dividends declared and paid were $35,000. | |
| 2. | During the year, equipment was sold for $17,000 cash. This equipment cost $28,000 originally and had a book value of $17,000 at the time of sale. | |
| 3. | All depreciation expense is in the operating expenses. | |
| 4. | All sales and purchases are on account. | |
| 5. | Accounts payable pertain to merchandise suppliers. | |
| 6. | All operating expenses except for depreciation were paid in cash. | |
Prepare a statement of cash flows for Lowz Company using the direct
method. (Show amounts that decrease cash flow with
either a - sign e.g. -15,000 or in parenthesis e.g.
(15,000).)
In: Accounting
Soccer regulations are that the ball be an air-filled sphere with a circumference of 68-70 cm, and a mass of 410-450 g. The 2010 FIFA world cup “Jabulani” ball had a circumference of 69 cm and a mass of 440 g. This ball is also specified to have 0% water absorption. The ball is kicked into a deep puddle; what fraction of the volume of this ball floats above the surface of the water?
In: Physics
In August 2010, massive downpours caused widespread flooding across Pakistan, killing at least 1500 people. Many times flood waters breached a riverbank and cut a new course for hundreds of miles, destroying villages days later that were not warned of the impending flood waters. Develop 10 ideas that could have prevented the deaths in these villages. Provide descriptions and/or sketches of each idea.
In: Mechanical Engineering
Given the year end prices of the following stocks, estimate the expected return of a portfolio of 30% AAA and 70% BBB. Enter your answer as a percent without the % sign. Round your final answer to two decimals.
| Year | AAA | BBB |
|---|---|---|
| 2006 | 100 | 55 |
| 2007 | 105 | 65 |
| 2008 | 120 | 60 |
| 2009 | 110 | 70 |
| 2010 | 130 | 65 |
| 2011 | 160 | 80 |
In: Finance
Find the average annual growth rate of the dividends for each firm listed in the following table.
|
Firm |
2006 |
2007 |
2008 |
2009 |
2010 |
2011 |
|
|
Loewen |
$1.00 |
$1.07 |
$1.20 |
$1.20 |
$1.27 |
$1.40 |
|
|
Morse |
$1.00 |
$1.00 |
$0.80 |
$1.30 |
$1.25 |
$1.40 |
|
|
Huddleston |
$1.00 |
$2.75 |
$3.60 |
$3.80 |
$3.80 |
$5.00 |
|
|
Meyer |
$2.25 |
$2.10 |
$2.00 |
$2.74 |
$2.80 |
$2.95 |
In: Finance
find the average annual growth rate of the dividends
for each firm listed in the following table.
firm. 2006. 2007.
2008. 2009. 2010.
2011
loewen $1.00 $1.05. $1.10. $1.20 $1.25.
$1.30
Morse. $1.00. $0.90. $0.80. $1.10. $1.20.
$1.35
huddle. $1.00 $2.00. $3.50. $3.75. $3.80. $4.25
meyer. $2.00. $2.00. $2.00. $2.70. $2.80.
$2.90
In: Finance
Using the data in the following table, and the fact that the correlation of A and B is 0.39, calculate the volatility (standard deviation) of a portfolio that is 70% invested in stock A and 30% invested in stock B.
|
Realized Returns |
||||
|
Year |
Stock A |
Stock B |
||
|
2008 |
−8% |
27% |
||
|
2009 |
17% |
28% |
||
|
2010 |
1% |
11% |
||
|
2011 |
−3% |
−2% |
||
|
2012 |
1% |
−3% |
||
|
2013 |
8% |
26% |
||
The standard deviation of the portfolio is _%?
In: Finance
It's managerial economics problem. Please expert solve well.
In 2010 some members of the Pakistan cricket team were accused
of conniving
with bookmakers, if not to lose matches, then at least to instigate
specific events
in the game. Does efficiency wage theory explain why such scandals
are more
likely to arise for relatively low-paid sports people? In this
light, what can be done
to reduce corruption in sports?
In: Economics