On January 15^th 2019 A and B agreed on a 1 year swap with quarterly settlement and the swap rate at 7% p.a. on notional principal of $1m. A is the payer. The floating rate was set at BBSW which was 8% p.a. on January 15, 8.5% in April, 7% in July, 6.5% in October and 5% in January 2020. Calculate the swap cash settlements between the two parties

The net income reported on the income statement for the current year was $361,300. Depreciation recorded on store equipment for the year amounted to $15,520. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:

End of Year

Beginning of Year

Cash

$40,180

$40,070

Accounts receivable (net)

30,070

28,060

Merchandise inventory

40,390

45,420

Prepaid expenses

3,470

4,840

Accounts payable (merchandise creditors)

38,610

37,710

Wages payable

20,330

24,800

Required:

A.

Prepare the Cash Flows from Operating Activities section of the statement of cash flows <javascript:void(0)>, using the indirect method. Refer to the Amount Descriptions list provided for the exact wording of the answer choices for text entries. Use the minus sign to indicate cash outflows, cash payments, decreases in cash and for any adjustments, if required.

B.

Briefly explain why net cash flow from operating activities is different from net income.

The current price of a 10-year U.S. Treasury Bond with 5 years to maturity and a 4% coupon is $1,180. Assuming the usual maturity value of $1,000 and semi-annual coupon payments, what is the Yield to Maturity (YTM) for this bond

At the end of year 1, Tony had a tax basis of $40,000 in Tall Ladders, Limited Partnership. Tony has a 20 percent profits interest in Tall Ladders. For year 2, Tall Ladders will pay Tony a $10,000 guaranteed payment for extra services he provides to the partnership. Given the following Income Statement and Balance Sheet from Tall Ladders, what is Tony's adjusted tax basis at the end of year 2? (Show all work) (This is all income provided)

Q1 For this question, assume that expected inflation this year is equal to past year's inflation. Also assume that the unemployment rate has been equal to the natural rate of unemployment for some time. Given this information, we know that:

A. the rate of inflation should be zero.

B. the rate of inflation should neither increase nor decrease.

C. the rate of inflation should steadily increase.

D. the rate of inflation should steadily decrease.

E. the natural rate of unemployment should steadily decrease.

Q2 Which of the following will likely cause an increase in output per worker?

A. an increase in education expenditures

B. an increase in the saving rate

C. an increase in on-the-job training

D. all of the above

Q3 Which of the following will reduce the inflation rate in the medium run?

A. a permanent reduction in the price of oil

B. a large budget surplus

C. a permanent reduction in inflation target

D. all of the above

E. none of the above

During an audit of the inventory records of Winthrop Ltd for the year ended June 30, 2019, the auditor discovered that the ending inventory balance was overvalued by $180,000. On further investigation, it was discovered that the ending inventory for the previous year was correctly counted and valued, but that the inventory balance as at June 30, 2017, was undervalued by $500,000. Spurred on by the concern for errors undetected in previous periods, a thorough investigation was carried out as to the inventory values shown in the company’s financial statements during its five-year history. The following additional errors were detected.

1. As at June 30, 2016, inventory was overvalued by $50,000.
2. As at June 30, 2015, inventory was undervalued by $300,000.

Required:

1. Determine the effects that these errors have had on the company’s profit figures in each year, beginning in the year ended June 30, 2015.

Marks: 19

Under-valuations must be shown in brackets.

2. Determine the effect of the inventory errors on the company’s balance sheet over the total time-period by recording below the cumulative impact on the company’s retained earnings in the specified years.

Marks: 10

Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $97 per unit, and variable expenses are $67 per unit. Fixed expenses are $835,500 per year. The present annual sales volume (at the $97 selling price) is 25,200 units.

Required:

1. What is the present yearly net operating income or loss?

2. What is the present break-even point in unit sales and in dollar sales?

3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit?

4. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e.g., the selling price at the level of maximum profits)?

Dolores used to work as a high school teacher for $40,000 per year but quit in order to start her own catering business. To invest in her factory, she withdrew $20,000 fromher savings, which paid 5 percent interest, and borrowed $30,000 from her uncle, whom she pays 4 percent interest per year. Last year she paid $25,000 for ingredients and had revenue of $60,000. She asked Louis the accountant and Greg the economist to calculate her profit for her.

Explicit cost- ?

Implicit cost-?

Accounting profit-?

Economic profit-?

You are considering the purchase of an investment that would pay you $5,000 per year for Years 1‑5, $3,000 per year for Years 6‑8, and $2,000 per year for Years 9 and 10. If you require a 9.5 percent rate of return, and the cash flows occur at the end of each year, then what is the MOST you would be willing to pay for this investment? Answer to 0 decimal places.

According to a​ survey, 64 ​% of murders committed last year were cleared by arrest or exceptional means. Fifty murders committed last year are randomly​ selected, and the number cleared by arrest or exceptional means is recorded. When technology is​ used, use the Tech Help button for further assistance. ​(a) Find the probability that exactly 41 of the murders were cleared. ​(b) Find the probability that between 36 and 38 of the​ murders, inclusive, were cleared. ​(c) Would it be unusual if fewer than 20 of the murders were​ cleared? Why or why​ not?