Suppose an individual invests $10,000 in equity ownership of a public corporation. A year later, the corporation files for bankruptcy, owing hundreds of thousands of dollars to debtholders. What is the maximum loss this individual will take?

a) $10,000 plus a portion of the unpaid debt.

b) $0

c) $10,000

d) A percentage of the unpaid debt depending on the percentage of equity ownership.

e) None of the above.

At the end of the current year, Mr. Ryder departed from Canada in order to take a permanent position in Germany. He was accompanied by his common-law partner and their children, as well as what personal property he had not sold. Due to the intent of his neighbour to start a pig farm, he was unable to sell his residence at a satisfactory price. However, he was able to rent it for a period of two years. He also retained his membership in the CPA (Chartered Professional Accountants) Alberta.

After his departure, would he still be considered a Canadian resident for tax purposes? Explain your conclusion in point form.

The total factory overhead for Bardot Marine Company is budgeted for the year at $1,144,800, divided into four activities: fabrication, $512,000; assembly, $180,000; setup, $244,800; and inspection, $208,000. 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 5,000 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.

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 $93 per unit, and variable expenses are $63 per unit. Fixed expenses are $833,700 per year. The present annual sales volume (at the $93 selling price) is 25,100 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)?

Site visits to your seller's website on Amazon fluctuate over the course of the year, but the general trend is up. Growth in Q1 relative to Q4 is down by −12.0−12.0% quarter-over-quarter, Q2 is up 5.05.0% relative to Q1, Q3 up by 7.07.0% over Q2, and Q4 is up by 21.021.0% over Q3. During all of Q2 2019 your store received 24972497 visits.

How many visits will there be in all of Q2 of 2020?

How many visits in total in the 12 months leading up to the end of June 2020?

Find data for a given year on income per capita and income inequality for the following three groups of countries; (a) high human development, (b) medium human development and (c) low human development. Include about 8-10 countries in each group. Plot the data on the relationship between income per capita and inequality for each group. Is there any evidence of a Kuznets relationship? Explain. Please make sure to upload your graph

Suppose a​ ten-year, $ 1000 bond with an 8.5 % coupon rate and semiannual coupons is trading for $ 1035.41.

a. What is the​ bond's yield to maturity​ (expressed as an APR with semiannual​ compounding)?

b. If the​ bond's yield to maturity changes to 9.1 % ​APR, what will be the​ bond's price?

We are evaluating a project that costs $500,000 for the equipment, has a five-year life, and the market value of the equipment at the end of 5 years is 50,000. Assume that depreciation is straight-line to zero over the life of the project. Sales are projected at 30,000 units per year. Price per unit is $40, variable cost per unit is $20, and fixed costs are $100,000 per year. The tax rate is 35 percent, and we require a return of 14 percent on this project.

a. Calculate the accounting break-even point.

b. Calculate the base-case cash flow and NPV. What is the sensitivity of NPV to changes in the sales figure? Explain what your answer tells you about a 500-unit decrease in projected sales.

c. What is the sensitivity of NPV to changes in the variable cost figure? Explain what your answer tells you about a $1 decrease in estimated variable costs.

Jesper Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to Jesper Manufacturing's operations:

1. Actual sales in December were $76,000. Selling price per unit is projected to remain stable at $9 per unit throughout the budget period. Sales for the first five months of the upcoming year are budgeted to be as follows:

2. Sales are 30% cash and 70% credit. All credit sales are collected in the month following the sale.
3. Jesper Manufacturing has a policy that states that each month's ending inventory of finished goods should be 10% of the following month's sales (in units).
4. Of each month's direct material purchases, 20% are paid for in the month of purchase, while the remainder is paid for in the month following purchase. Two kilograms of direct material is needed per unit at $1.40/kg. Ending inventory of direct materials should be 20% of next month's production needs.
5. Monthly manufacturing conversion costs are $6,500 for factory rent, $2,900 for other fixed manufacturing expenses, and $1.40 per unit for variable manufacturing overhead. No depreciation is included in these figures. All expenses are paid in the month in which they are incurred.
6. Computer equipment for the administrative offices will be purchased in the upcoming quarter. In January, Jesper Manufacturing will purchase equipment for $5,800 (cash), while February's cash expenditure will be $11,600 and March's cash expenditure will be $15,800.
7. Operating expenses are budgeted to be $1.20 per unit sold plus fixed operating expenses of $1,400 per month. All operating expenses are paid in the month in which they are incurred.
8. Depreciation on the building and equipment for the general and administrative offices is budgeted to be $5,600 for the entire quarter, which includes depreciation on new acquisitions.
9. Jesper Manufacturing has a policy that the ending cash balance in each month must be at least $4,400. It has a line of credit with a local bank. The company can borrow in increments of $1,000 at the beginning of each month, up to a total outstanding loan balance of $130,000. The interest rate on these loans is 1% per month simple interest (not compounded). Jesper Manufacturing pays down on the line of credit balance if it has excess funds at the end of the quarter. The company also pays the accumulated interest at the end of the quarter on the funds borrowed during the quarter.
10. The company's income tax rate is projected to be 30% of operating income less interest expense. The company pays $10,800 cash at the end of February in estimated taxes.

Requirements:

1. Prepare a schedule of cash collections for January, February, and March, and for the quarter in total.
2. Prepare a production budget. (Hint: Unit sales = Sales in dollars / Selling price per unit.)
3. Prepare a direct materials budget.

Decker Manufacturing is preparing its master budget for the first quarter of the upcoming year. The following data pertain to

Decker

​Manufacturing's operations:

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Requirement 1. Prepare a schedule of cash collections for​ January, February, and​ March, and for the quarter in total.

Enter any number in the edit fields and then click Check Answer.

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