Personal Budget

At the beginning of the school year, Priscilla Wescott decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except cash decrease which should be indicated with a minus sign.

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b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?

Static

c. What are the budget implications for Priscilla Wescott?

Priscilla can see that her present plan will not provide  sufficient cash. If Priscilla did not budget but went ahead with the original plan, she would be $ short  at the end of December, with no time left to adjust.

A. Suppose that, for a particular type of cancer, chemotherapy provides a 5-year survival rate of 72%.

Among 20 patients diagnosed to have this form of cancer who are just starting the chemotherapy,

find the probability that at least 15 of them survive at 5-years or longer. Round answer to 3 significant

digits.

B. A home insurance company charges $2500 for the insurance policy. The policy only covers two

kinds of claims -- minor and large. Eight percent of homeowners will file a minor claim. When this

happens the insurance company pays out $10,000. Only 1% of the population will make a large

claim. When that happens the insurance company has to pay out $150,000. What is the expected

value of this policy to the insurance company?

C. The heights of National Basketball Association (NBA) players are normally distributed with a mean of

79” (6’7”) and a standard deviation of 3.89 inches. What heights delineate the middle 80% of NBA

players? Round your answer to the nearest inch.

In the coming year, Urayse, Inc. will be introducing its first product, a wrist brace that protects serious video gamers from repetitive-motion injuries. The brace will be sold for $11.25 to retailers throughout the country. All sales will be made on account. An expected 65% of sales will be collected within the quarter of the sale, and another 30 % in the quarter following the sale. The remaining 5% of credit sales are expected to be uncollectible. The sales budget for the coming year is as follows

Prepare Urayse, Inc.'s, cash receipts budget for the coming year.   

The Landry Corporation needs to raise $1.30 million of debt on a 15-year issue. If it places the bonds privately, the interest rate will be 11 percent, and $35,000 in out-of-pocket costs will be incurred. For a public issue, the interest rate will be 10 percent, and the underwriting spread will be 4 percent. There will be $150,000 in out-of-pocket costs. Assume interest on the debt is paid semiannually, and the debt will be outstanding for the full 15 years, at which time it will be repaid. (Use a Financial calculator to arrive at the answers.) The Landry Corporation needs to raise $1.30 million of debt on a 15-year issue. If it places the bonds privately, the interest rate will be 11 percent, and $35,000 in out-of-pocket costs will be incurred. For a public issue, the interest rate will be 10 percent, and the underwriting spread will be 4 percent. There will be $150,000 in out-of-pocket costs. Assume interest on the debt is paid semiannually, and the debt will be outstanding for the full 15 years, at which time it will be repaid. (Use a Financial calculator to arrive at the answers.) a. For each plan, compare the net amount of funds initially available—inflow—to the present value of future payments of interest and principal to determine net present value. Assume the stated discount rate is 12 percent annually, but use 6.00 percent semiannually throughout the analysis. (Disregard taxes.) (Negative answers should be indicated by a minus sign. Do not round intermediate calculations. Enter the answers in dollars not in millions. Omit $ sign in your response. Round the final answer to the nearest whole dollar.).

At the end of each year for the first 5 years, Cecil and Norma DeMille plan to contribute $1,000 to their daughter Sally's college fund. For the next 5 years they will contribute $2,000 at the end of each year, and then increase that amount to $3,000 until she turns 18 and is ready for college. What amount will they have accumulated for Sally's college fund if the account pays 6.35% annually?

Please be very thorough with work and provide the specific formula used.

Miller's Hardware plans on saving $100, $150, and $350 at the end of each year for the next three years, respectively. How much will the firm save at the end of the 6th year if it can earn 4% on its savings? (4% is annual interest rate and assume annual compounding) [Please round your answer to the nearest whole number]

A municipal bond that matures in one year has a $5,000 face value and is currently priced at $4,650.00. Calculate the interest rate for this bond to two decimals.
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Part 2   (1 point)

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Suppose that inflation is exactly 1.00%. Calculate the real interest rate to two decimals.
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You are the CFO of Jordan company. The year-end of Jordan is 31 March. The CEO of Jordan company informed you that the company intends to open a new branch in the next few weeks. The company has spent a substantial sum on a series of television advertisements to promote this new branch. The company paid for advertisements costing JOD 1,500,000 before 31 March 2018. JOD 900,000 of this sum relates to advertisements shown before 31 March 2018 and JOD 350,000 to advertisements shown in April 2018. Since 31 March 2018, The company has paid for further advertisements costing JOD 250,000. A discussion between the CEO and the board of directors whether these costs should be written off as expenses in the year to 31 March 2018. The board of Directors doesn’t want to charge JOD 3 million. Required: Explain and justify the treatment of these costs of JOD 3 million in the financial statements for the year ended 31 March 2018 according to IAS 38 assuming that market research indicates that this new branch is likely to be highly successful.

Blossom Company began the year with 9 units of marine floats at a cost of $10 each. During the year, it made the following purchases: May 5, 24 unit at $16; July 16, 19 units at $20; and December 7, 24 units at $23. Assume there are 28 units on hand at the end of the period. Blossom uses the periodic approach.

Determine the cost of goods sold under FIFO.

Determine the cost of goods sold under LIFO.

Calculate average unit cost. (Round answer to 2 decimal places, e.g. 5.12.)