The total factory overhead for Bardot Marine Company is budgeted for the year at $1,078,500, divided into four activities: fabrication, $490,000; assembly, $228,000; setup, $194,250; and inspection, $166,250. Bardot Marine manufactures two types of boats: speedboats and bass boats. The activity-base usage quantities for each product by each activity are as follows:

Each product is budgeted for 6,500 units of production for the year.

a. Determine the activity rates for each activity.

b. Determine the activity-based factory overhead per unit for each product. Round to the nearest whole dollar.

Compute the payment for year 2 for the following adjustable rate mortgage. The loan has an annual adjustment period, is indexed to the one-year Treasury Bill, and carries a margin of 2%. The original composite rate was not a teaser and was equal to 4%. The one-year T-bill rate decreased 0.5% at the start of year 2. The loan was 80% loan-to-value on a property worth $220,000, and it was fully amortizing over a term of 30 years.

Central Machines is considering a project that will generate cash flow of $2,304,714 per year for 4 years, followed by $4,233,139 per year for 3 years, followed by $5,501,087 per year for 3 years. All cash flows will occur at the end of the year. If the cost of the project is $16,064,914, and the company's WACC is 11.7%, what is the Modified Internal Rate of Return of the project? State your answer as a percentage to 2 decimal places.

You borrow $250,000 to buy a home. The terms of the loan are as follows: 30-year mortgage loan at a rate of 4.50 percent with monthly payments. What percentage of your first month's payment goes toward interest?

The statement of cash flows for the year ended December 31, 2021, for Bronco Metals is presented below.

Required:
Prepare the statement of cash flows assuming that Bronco prepares its financial statements according to International Financial Reporting Standards. Where IFRS allows flexibility, use the classification used most often in IFRS financial statements. (Amounts to be deducted should be indicated with a minus sign.)

Multiple Choice

• $2,625.04

• $10,475.13

• $14,042.40

• $10,265.63

• $10,245.41

A project will produce cash inflows of $1,750 a year for four years. The project initially costs $10,600 to get started. In year five, the project will be closed and as a result should produce a cash inflow of $8,500. What is the net present value of this project if the required rate of return is 14.75%?

Please add the explanation.

6. Killnum Corp. announces that the dividend for the next year will be $2.50 per share rather than the originally expected $1.50 per share. From then on, it is expected that dividends will resume their historical constant growth rate of 5% per year. What would you expect to happen to the price of the stock? Ignore any tax effects.

A) The price will likely double.

B) The price will likely rise by less than 100%.

C) The price will likely rise by exactly 50%.

D) The price will remain unchanged.

E) The price will likely rise by the present value of $1.

John Smith previously earned £ 10,000 a year in employment and had £ 100,000 invested in government securities, yielding 10% per annum. He sold his securities for £ 100,000 and started his own business. Initially, he rented a factory for £ 5000 per annum, but subsequently purchased it for £ 20,000, leaving £ 80,000 as the financial capital within the firm. John Smith’s accountants estimate that total revenue of the firm in the past year was £ 100,000 and total costs were £ 80,000, including a salary of £ 5000 paid to John Smith.

Estimate the profit of this firm from the viewpoint of (i) The accountant (ii) The economist, explaining clearly the reason for any difference. [15 marks]

Question

Jack is performing the audit on leases of Anglo Ltd for the year ended 31 December 2019. From the ledger, Jack noticed that there are three items, which are on the lease, i.e. a van, a lathe machine and the oven. As part of the audit, Jack would send standard confirmation letters to the lessors. Two days before the end of the fieldwork,Jack received confirmation from the van’s lessor. Jack’s client has had a short payment of the van lease by$10,000. Jack sent the second reminder confirmation and managed to receive the confirmation from the lathemachine’s lessor. The lease would only start from 1 January 2020. Jack has to yet to receive any confirmationpertaining to the leasing of the oven.

Requirements:

a)Suggest three (3) actions/procedures that Jack should take in the future to make sure that the confirmation letter will be received and answered promptly.
b)Propose two (2) further actions/procedures that Jack should take for the discrepancies to two of the items listed above.