You invest $3108 at the beginning of every year and earn an annual rate of return of 6.4%, how much will you have in your account after 35 years? (Show your answer to the nearest cent. DO NOT round until after all calculations have been completed and you have reached your final answer.).
In: Finance
Sam and Sally are both 30 years old, and beginning in exactly 1 year they will save $24,000 per year for 30 consecutive years to support their retirement. When they reach retirement at age 60, they will begin to withdrawal an annuity amount per year to enjoy their retirement years. The withdrawals will start in one year, and continue for 25 consecutive years. What is the maximum amount they can withdrawal if interest rates are 3%?
In: Finance
Ward Corp. is expected to have an EBIT of $2,050,000 next year.
Depreciation, the increase in net working capital, and capital
spending are expected to be $168,000, $91,000, and $118,000,
respectively. All are expected to grow at 17 percent per year for
four years. The company currently has $14,500,000 in debt and
830,000 shares outstanding. At Year 5, you believe that the
company's sales will be $16,200,000 and the appropriate price–sales
ratio is 2.3. The company’s WACC is 8.3 percent and the tax rate is
35 percent.
What is the price per share of the company's stock? (Do not
round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
That's the only information provided.
Share price
$
In: Finance
The Village of Parry reported the following for its Print Shop
Fund for the year ended April 30, 2017.
| VILLAGE OF PARRY—PRINT SHOP FUND | ||||||||
| Statement of Revenues, Expenses, and Changes in Net Position | ||||||||
| For the Year Ended April 30, 2017 | ||||||||
| Operating revenues: | ||||||||
| Charges for services | $ | 1,105,000 | ||||||
| Operating expenses: | ||||||||
| Salaries and benefits | $ | 495,000 | ||||||
| Depreciation | 300,000 | |||||||
| Supplies used | 200,000 | |||||||
| Utilities | 72,000 | |||||||
| Total operating expenses | 1,067,000 | |||||||
| Income from operations | 38,000 | |||||||
| Nonoperating income (expenses): | ||||||||
| Interest revenue | 3,000 | |||||||
| Interest expense | (5,000 | ) | ||||||
| Total nonoperating expenses | (2,000 | ) | ||||||
| Income before transfers | 36,000 | |||||||
| Transfers in | 180,000 | |||||||
| Changes in net position | 216,000 | |||||||
| Net position—beginning | 1,120,000 | |||||||
| Net position—ending | $ | 1,336,000 | ||||||
The Print Shop Fund records also revealed the following:
| 1. | Contribution from General Fund for working capital needs | $ | 80,000 | ||
| 2. | Contribution from General Fund for purchase of equipment | 100,000 | |||
| 3. | Loan (interest-free) from Water Utility Fund for purchase of equipment | 300,000 | |||
| 4. | Purchase of equipment | (500,000 | ) | ||
| 5. | Purchase of one-year investments | (50,000 | ) | ||
| 6. | Paid off a bank loan outstanding at May 1, 2016 | (51,000 | ) | ||
| The loan was for short-term
operating purposes and was the only interest-bearing debt outstanding |
|||||
| 7. | Signed a capital lease on April 30, 2017 | $ | 36,780 | ||
The following balances were observed in current asset and current
liability accounts. ( ) denote credit balances:
| 5/1/2016 | 4/30/2017 | |||||||
| Cash | $ | 151,000 | $ | 355,800 | ||||
| Accrued interest receivable | 300 | 500 | ||||||
| Due from other funds | 40,000 | 55,000 | ||||||
| Supplies | 0 | 0 | ||||||
| Accrued salaries and benefits | (20,000 | ) | (30,000 | ) | ||||
| Utility bills payable | (4,000 | ) | (5,000 | ) | ||||
| Accounts payable (for supplies only) | (30,000 | ) | (25,000 | ) | ||||
| Accrued interest payable | (1,000 | ) | 0 | |||||
| Bank loan payable | (51,000 | ) | 0 | |||||
Prepare a Statement of Cash Flows for the Village of Parry Print
Shop Fund for the year ended April 30, 2017. Include the
reconciliation of operating income to net cash provided by
operating activities
In: Accounting
“Suppose that you have saved €1,000 this year. Borrowing or lending is not possible because there are no financial markets. If you do not have an investment opportunity that will permit you to earn income with your savings, you will just hold on to the €1,000 and will earn no interest. However, Carl the carpenter has a productive use for your €1,000: he can use it to purchase a new tool that will shorten the time it takes him to build a house, thereby earning an extra €200 per year. If you could get in touch with Carl, you could lend him the €1,000 at a rental fee (interest) of €100 per year, and both of you would be better off. You would earn €100 per year on your €1,000, instead of the zero amount that you would earn otherwise, while Carl would earn €100 more income per year.
As we have seen, Carl the carpenter needs €1,000 for his new tool, and you know that it is an excellent investment opportunity. You have the cash and would like to lend him the money, but to protect your investment you have to hire a lawyer to write up the loan contract that specifies how much interest Carl will pay you, when he will make these interest payments, and when he will repay you the €1,000. Obtaining the contract will cost you €500. When you figure out this transaction cost for making the loan, you realise that you can’t earn enough from the deal (you spend €500 to make perhaps €100) and reluctantly tell Carl that he will have to look elsewhere.” (Mishkin, Matthews, Giuliodori, The Economics of Money, Banking and Financial Markets, 2013).
Can the deal (contract) still be made even with the €500 charged by the lawyer? How? Which variable in the contract can be changed and by how much?
In: Finance
DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.
| Month | ||||||||
| 1 | 2 | 3 | 4 | |||||
| Throughput time (days) | ? | ? | ? | ? | ||||
| Delivery cycle time (days) | ? | ? | ? | ? | ||||
| Manufacturing cycle efficiency (MCE) | ? | ? | ? | ? | ||||
| Percentage of on-time deliveries | 79 | % | 75 | % | 72 | % | 69 | % |
| Total sales (units) | 2790 | 2671 | 2534 | 2438 | ||||
Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:
| Average per Month (in days) | |||||||||
| 1 | 2 | 3 | 4 | ||||||
| Move time per unit | 0.9 | 0.6 | 0.7 | 0.7 | |||||
| Process time per unit | 3.9 | 3.7 | 3.5 | 3.3 | |||||
| Wait time per order before start of production | 24.0 | 26.3 | 29.0 | 31.4 | |||||
| Queue time per unit | 4.8 | 5.4 | 6.1 | 6.9 | |||||
| Inspection time per unit | 0.5 | 0.6 | 0.6 | 0.5 | |||||
Required:
1-a. Compute the throughput time for each month.
1-b. Compute the delivery cycle time for each month.
1-c. Compute the manufacturing cycle efficiency (MCE) for each month.
2. Evaluate the company’s performance over the last four months.
3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.
3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.
In: Accounting
A five (5) year old girl is repeatedly brought to the clinic with history of diarrhea and vomiting accompanied by abdominal cramps. History taking reveals that the family stays in a crowded area with very poor sanitation. There is no toilet in their compound and the family uses nearby bushes. The family enjoys vegetable salads. The only source of water for the family and domestic animals is an unprotected nearby stream which is always infested with rotten dead animals. In addition, dirty water is discarded any how around the compound and sometimes it is used in the garden.
Use the above scenario to answer the questions that follow:
a. Explain any five (5) instructive measures you would provide to this family to stop prevent recurrences of diarrhea and vomiting. Explain your points with reasons
b. Describe any five (5) skills required for health history taking. (10 marks
In: Nursing
Manning Company had the following inventory balances at the
beginning and end of the year:
|
January 1 |
December 31 |
|
|
Raw material |
$60,000 |
$50,000 |
|
Work in process |
140,000 |
180,000 |
|
Finished goods |
280,000 |
255,000 |
During the year, the company purchased $100,000 of raw material and
incurred $340,000 of direct labor costs.
Other data: manufacturing overhead incurred, $440,000; manufacturing overhead applied, $450,000
Sales, $1,560,000;
Selling and administrative expenses, $90,000;
Income tax rate, 30%.
Required:
A. Calculate cost of goods manufactured.
B. Calculate cost of goods sold.
C. Determine Manning's net income. (prepare an income
statement)
In: Accounting
Note: This problem is for the 2018 tax year.
Lance H. and Wanda B. Dean are married and live at 431 Yucca Drive, Santa Fe, NM 87501. Lance works for the convention bureau of the local Chamber of Commerce, while Wanda is employed part-time as a paralegal for a law firm.
During 2018, the Deans had the following receipts:
|
Wanda was previously married to John Allen. When they divorced several years ago, Wanda was awarded custody of their two children, Penny and Kyle. (Note: Wanda has never issued a Form 8332 waiver.) Under the divorce decree, John was obligated to pay alimony and child support—the alimony payments were to terminate if Wanda remarried.
In July, while going to lunch in downtown Santa Fe, Wanda was injured by a tour bus. As the driver was clearly at fault, the owner of the bus, Roadrunner Touring Company, paid her medical expenses (including a one-week stay in a hospital). To avoid a lawsuit, Roadrunner also transferred $90,000 to her in settlement of the personal injuries she sustained.
The Deans had the following expenditures for 2018:
|
The life insurance policy was taken out by Lance several years ago and designates Wanda as the beneficiary. As a part-time employee, Wanda is excluded from coverage under her employer's pension plan. Consequently, she provides for her own retirement with a traditional IRA obtained at a local trust company. Because the mayor is a member of the local Chamber of Commerce, Lance felt compelled to make the political contribution.
The Deans' household includes the following, for whom they provide more than half of the support:
|
Penny graduated from high school on May 9, 2018, and is undecided about college. During 2018, she earned $8,500 (placed in a savings account) playing a harp in the lobby of a local hotel. Wayne is Wanda's widower father who died on January 20, 2018. For the past few years, Wayne qualified as a dependent of the Deans.
Federal income tax withheld is $5,200 (Lance) and $2,100 (Wanda). The proper amount of Social Security and Medicare tax was withheld.
Required:
Determine the Federal income tax for 2018 for the Deans on a joint return by providing the following information that would appear on Form 1040 and Schedule A. They do not want to contribute to the Presidential Election Campaign Fund. All members of the family had health care coverage for all of 2018. If an overpayment results, it is to be refunded to them.
Make realistic assumptions about any missing data.
Enter all amounts as positive numbers.
If an amount box does not require an entry or the answer is zero, enter "0".
When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar.
Provide the following that would be reported on Lance and Wanda Dean's Form 1040.
1. Filing status and dependents: The taxpayers'
filing status:
Married filing jointly
Qualifies as the taxpayers' dependent: Select "Yes" or
"No".
Penny: Yes
Kyle: Yes
2. Calculate taxable gross income.
3. Calculate the total adjustments for AGI.
4. Calculate adjusted gross income.
5. Calculate the greater of the standard deduction or itemized deductions.
6. Calculate total taxable income.
7. Calculate the income tax liability.
8. Calculate the total tax credits available.
9 Calculate total withholding and tax payments.
10. Calculate the amount overpaid (refund):
11. Calculate the amount of taxes
owed:
Schedule A Tax Items
Provide the following that would be reported on Lance and Wanda Dean's Schedule A.
1. Calculate the deduction allowed for medical expenses.
2. Calculate the deduction for taxes.
3. Calculate the deduction for interest.
4. Calculate the charitable contribution deduction allowed.
5. Calculate total itemized deductions.
2018 Tax Rate Schedules
Use the 2018 Tax Rate Schedules to compute the tax.
Note: Because the tax rate schedules are used instead of the tax tables, the amount of tax computed may vary slightly from the amount listed in the tables. This variation occurs because the tax for a particular income range in the tax table is based on the midpoint amount.
| 2018 Tax Rate Schedules | |||||||||||||||||||
| Single—Schedule X | Head of household—Schedule Z | ||||||||||||||||||
| If taxable income is: Over— |
But not over— |
The tax is: | of the amount over— |
If taxable income is: Over— |
But not over— |
The tax is: | of the amount over— |
||||||||||||
| $0 | $9,525 | . . . . . . | 10% | $0 | $0 | $13,600 | . . . . . . | 10% | $0 | ||||||||||
| 9,525 | 38,700 | $952.50 | + | 12% | 9,525 | 13,600 | 51,800 | $1,360.00 | + | 12% | 13,600 | ||||||||
| 38,700 | 82,500 | 4,453.50 | + | 22% | 38,700 | 51,800 | 82,500 | 5,944.00 | + | 22% | 51,800 | ||||||||
| 82,500 | 157,500 | 14,089.50 | + | 24% | 82,500 | 82,500 | 157,500 | 12,698.00 | + | 24% | 82,500 | ||||||||
| 157,500 | 200,000 | 32,089.50 | + | 32% | 157,500 | 157,500 | 200,000 | 30,698.00 | + | 32% | 157,500 | ||||||||
| 200,000 | 500,000 | 45,689.50 | + | 35% | 200,000 | 200,000 | 500,000 | 44,298.00 | + | 35% | 200,000 | ||||||||
| 500,000 | . . . . . . | 150,689.50 | + | 37% | 500,000 | 500,000 | . . . . . . | 149,298.00 | + | 37% | 500,000 | ||||||||
| Married filing jointly or Qualifying widow(er)—Schedule Y-1 | Married filing separately—Schedule Y-2 | ||||||||||||||||||
| If taxable income is: Over— |
But not over— |
The tax is: | of the amount over— |
If taxable income is: Over— |
But not over— |
The tax is: | of the amount over— |
||||||||||||
| $0 | $19,050 | . . . . . . | 10% | $0 | $0 | $9,525 | . . . . . . | 10% | $0 | ||||||||||
| 19,050 | 77,400 | $1,905.00 | + | 12% | 19,050 | 9,525 | 38,700 | $952.50 | + | 12% | 9,525 | ||||||||
| 77,400 | 165,000 | 8,907.00 | + | 22% | 77,400 | 38,700 | 82,500 | 4,453.50 | + | 22% | 38,700 | ||||||||
| 165,000 | 315,000 | 28,179.00 | + | 24% | 165,000 | 82,500 | 157,500 | 14,089.50 | + | 24% | 82,500 | ||||||||
| 315,000 | 400,000 | 64,179.00 | + | 32% | 315,000 | 157,500 | 200,000 | 32,089.50 | + | 32% | 157,500 | ||||||||
| 400,000 | 600,000 | 91,379.00 | + | 35% | 400,000 | 200,000 | 300,000 | 45,689.50 | + | 35% | 200,000 | ||||||||
| 600,000 | . . . . . . | 161,379.00 | + | 37% | 600,000 | 300,000 | . . . . . . | 80,689.50 | + | 37% | 300,000 | ||||||||
In: Accounting
In: Finance