Suppose that, for a given year, national saving in a country (an open economy) equals 200, private consumption in final goods and services equals 100, and government consumption in final goods and services equals 20. In addition, firms invested 75 in final goods and services and spent 25 in intermediate goods. Households invested 50 in the domestic stock market. What is the level of output in this country in this year? And what is the balance of the current account? (Hint: Make sure you review the definition of gross domestic product.)

Bond A is a 15 year, 9% semiannual-pay bond priced with a yield of maturity of 8%, while bond B is a 15 year, 7% semiannual-pay bond priced with the same yield to maturity. Given that both bonds have par values of $1,000, what would be the prices of these two bonds?

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.

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:

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.

A bank has made a 1-year loan at 4%. To fund the loan, it issued a 6-month deposit at 2.5%. It also purchased a 6x12 FRA at 3%. On the settlement date of the contract, 6-month LIBOR is 5%, and the bank issues a 6-month deposit at LIBOR. What is the bank’s interest margin (spread), in %, for the first six months and for the next?

1. 1.5% and 1.5%
2. 1.5% and 1%
3. 1.5% and −1%
4. 1% and −1%
5. 1% and 1%
6. 1.5% and 2%

The Super Bowl Indicator Theory suggests that the stock market will have a positive year if the team in the National Football Conference, or a team with an NFC origin, wins. If the American Football Conference team wins, the market will fall. According to the recent news (MarketWatch, 2/6/2017), it has accurately predicted the direction of the market for the year following 40 of the 50 Super Bowls since the first super bowl in 1967. Why do we have such phenomena? Is the finding consistent with market efficiency? Please explain...I may have further questions..

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 $94 per unit, and variable expenses are $64 per unit. Fixed expenses are $834,300 per year. The present annual sales volume (at the $94 selling price) is 25,400 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)?

1. X corp is closing its books for year and asks the law firm for the amount they should accrue for their legal work performed for the year that won’t be billed until next year. The law firm estimates $100,000 of 2019 legal fees that will be billed after year-end. X corp accrues the full $100,000 in December.

In January, the law firm bills x corp  60,000 for 2019 legal work and indicates that the remaining $40,000 will be billed in February 2020. In February, the law firm issues a final bill for 2019 legal work that comes in at $32,000.

Show the dec, jan, and feb entries

2. On 8/1, ABC bank asks X corp. to conduct a 3 week research project for a new credit card the bank is planning on issuing. X corp proposes a fee of $514,540 for the project which the bank accepts. On 9/2, ABC bank issues a check to X corp for $514,450, accidentally short paying the invoice by $90. X corp decides to write-off the short payment. Show how X corp. should record all the transactions relating to this project.

3. X corp buys a $100,000 certificate of deposit (CD) through its bank using excess cash in its operating account on 3/1. The CD matures in 90 days and pays interest upon maturity of $750. Show the entries to record these transactions.

​DFB, Inc., expects earnings this year of $ 4.21 per​ share, and it plans to pay a $ 1.88 dividend to shareholders. DFB will retain $ 2.33 per share of its earnings to reinvest in new projects with an expected return of 15.1 % per year. Suppose DFB will maintain the same dividend payout​ rate, retention​ rate, and return on new investments in the future and will not change its number of outstanding shares.

a. What growth rate of earnings would you forecast for​ DFB?

Earnings growth rate will be..............​%.(Round to two decimal​ places.)

b. If​ DFB's equity cost of capital is 12.4%​, what price would you estimate for DFB​ stock?

The stock price will be ​$.................​ (Round to the nearest​ cent.)

c. Suppose DFB instead paid a dividend of $2.88 per share this year and retained only $1.33 per share in earnings. That​ is, it chose to pay a higher dividend instead of reinvesting in as many new projects. If DFB maintains this higher payout rate in the​ future, what stock price would you estimate​ now?

In this case the stock price will be $.............(Round to the nearest​ cent.)

Should DFB follow this new​ policy?

This is what the company should​ do: ​ (Select the best choice​ below.)

A.Not raise dividends because companies should always reinvest as much as possible.

B.Not raise dividends because projects have positive NPV when the return on new investments is higher than the​ firm's cost of capital.

C.Raise dividends​ because, according to the​ dividend-discount model, doing so will always improve the share price.

D.Raise dividends because the return on new investments is lower than the cost of capital.

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 $91 per unit, and variable expenses are $61 per unit. Fixed expenses are $832,200 per year. The present annual sales volume (at the $91 selling price) is 25,900 units.

Required:

1. What is the present yearly 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-a. 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)?

Note: This problem is for the 2018 tax year.

Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6780. Roberta has been divorced from her former husband, Wayne, for three years. She has a son, Jason, who is 17, and a daughter, June, who is 18. Jason's Social Security number is 111-11-1112, and June's is 123-45-6788. Roberta does not want to contribute $3 to the Presidential Election Campaign Fund.

Roberta, an advertising executive, earned a salary from ABC Advertising of $80,000 in 2018. Her employer withheld $9,000 in Federal income tax and $3,100 in state income tax.

Roberta has legal custody of Jason and June. The divorce decree provides that Roberta is to receive the dependency deductions for the children. Jason lives with his father during summer vacation. Wayne indicates that his expenses for Jason are $5,500. Roberta can document that she spent $6,500 for Jason's support during 2018. In prior years, Roberta gave a signed Form 8332 to Wayne regarding Jason. For 2018, she has decided not to do so. Roberta provides all of June's support.

Roberta's mother died on January 7, 2018. Roberta inherited assets worth $625,000 from her mother. As the sole beneficiary of her mother's life insurance policy, Roberta received insurance proceeds of $300,000. Her mother's cost basis for the life insurance policy was $120,000. Roberta's favorite aunt gave her $13,000 for her birthday in October.

On November 8, 2018, Roberta sells for $22,000 Amber stock that she had purchased for $24,000 from her first cousin, Walt, on December 5, 2012. Walt's cost basis for the stock was $26,000, and the stock was worth $23,000 on December 5, 2014. On December 1, 2018, Roberta sold Falcon stock for $13,500. She had acquired the stock on July 2, 2014, for $8,000.

An examination of Roberta's records reveals that she received the following:

• Interest income of $2,500 from First Savings Bank.
• Groceries valued at $750 from Kroger Groceries for being the 100,000th customer.
• Qualified dividend income of $1,800 from Amber.
• Interest income of $3,750 on City of Springfield school bonds.
• Alimony of $16,000 from Wayne; divorce finalized in 2015.
• Distribution of $4,800 from ST Partnership. Her distributive share of the partnership passive taxable income was $5,300. She had no prior passive activity losses. Assume that the qualified business income deduction applies and the W–2 wage limitation does not.

From her checkbook records, she determines that she made the following payments during 2018:

• Charitable contributions of $4,500 to First Presbyterian Church and $1,500 to the American Red Cross (proper receipts obtained).
• Paid $5,000 to ECM Hospital for the medical expenses of a friend from work.
• Mortgage interest on her residence of $7,800 to Peoples Bank.
• Property taxes of $3,200 on her residence and $1,100 (ad valorem) on her car. $800 for landscaping expenses for residence.
• Estimated Federal income taxes of $2,800 and estimated state income taxes of $1,000.
• Medical expenses of $5,000 for her and $800 for Jason. In December, her medical insurance policy reimbursed $1,500 of her medical expenses. She had full-year health care coverage.
• A $1,000 ticket for parking in a handicapped space.
• Attorney's fees of $500 associated with unsuccessfully contesting the parking ticket.
• Contribution of $250 to the campaign of a candidate for governor.

Because she did not maintain records of the sales tax she paid, she calculates the amount from the sales tax table to be $994.

PLEASE FILL OUT AT 2018 SCHEDULE E FORM