Maynard Company projects the following sales for the first three months of the year: $15800 in January; $15,900 in February; $11,100 in March. The company expects 60% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar.

Requirements:

1.) Prepare a schedule of cash receipts for Maynard for January, February, and March. What is the balance in Accounts Receivable on March 31?

2.) Prepare a revised schedule of cash receipts if receipts from sales on account are 70% in the month of the sale, 10% in the month following the sale, and 20% in the second month following the sale. What is the balance in Accounts Receivable on March 31?

Requirement 1. Prepare a schedule of cash receipts for

Maynard

for

January?,

February?,

and

March.

What is the balance in Accounts Receivable on

MarchMarch

31??

?(Leave unused and zero balance account cells? blank, do not enter? "0".)

Requirement 2. Prepare a revised schedule of cash receipts if receipts from sales on account are 70?% in the month of the? sale, 10?% in the month following the? sale, and 20?% in the second month following the sale. What is the balance in Accounts Receivable on March 31?? ?(Leave unused and zero balance account cells? blank, do not enter? "0".)

January

February

March

Total

Total sales

January

February

March

Total

Cash Receipts from Customers:

Accounts Receivable balance, January 1

January—Cash sales

January—Credit sales, collection of January sales in January

January—Credit sales, collection of January sales in February

January—Credit sales, collection of January sales in March

February—Cash sales

February—Credit sales, collection of February sales in February

February—Credit sales, collection of February sales in March

March—Cash sales

March—Credit sales, collection of March sales in March

Total cash receipts from customers

Accounts Receivable balance, March 31:

Credit sales, collection in April and May

In a recent year, the average daily circulation of the Wall Street Journal was 2,276,207. Suppose the standard deviation is 70,940. Assume the paper’s daily circulation is normally distributed.

(a) On what percentage of days would circulation pass 1,814,000?
(b) Suppose the paper cannot support the fixed expenses of a full-production setup if the circulation drops below 1,622,000. If the probability of this even occurring is low, the production manager might try to keep the full crew in place and not disrupt operations. How often will this even happen, based on this historical information?

(Round the values of z to 2 decimal places. Round your answers to 4 decimal places.)

The Aluminum Association reports that the average American uses 56.8 pounds of aluminum in a year. A random sample of 50 households is monitored for one year to determine aluminum usage. If the population standard deviation of annual usage is 12.2 pounds, what is the probability that the sample mean will be each of the following? Appendix A Statistical Tables

a. More than 61 pounds

b. More than 57 pounds

c. Between 55 and 57 pounds

d. Less than 55 pounds

e. Less than 49 pounds

Tesla. has a unique opportunity to invest in a two-year project in Australia. The project is expected to generate 1,700,000 Australian dollars (A$) in the first year and A$2,700,000 in the second. Tesla would have to invest $3,000,000 in the project. Tesla has determined that the cost of capital for similar projects is 16 percent. What is the net present value of this project if the spot rate of the Australian dollar for the two years is forecasted to be $.65 and $.70, respectively (5 Points)?

Personal Budget

At the beginning of the school year, Katherine Malloy 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 an overall cash decrease which should be indicated with a minus sign.

Feedback

Sometimes an item may be a decrease in one period and an increase in a different period.

Review the definitions of static budgets and flexible budgets.

What weaknesses are shown by this cash budget?

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

Static

c. Malloy can see that her present plan will not provide sufficient cash. If Malloy 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.

Equipment with a ten-year estimated useful life and no salvage value is sold at the end of the third year of its useful life. How would using the straight-line method of depreciation instead of the double-declining balance method of depreciation affect revenues and expenses?

1. What is the return on total assets (assuming a 30% tax rate)? (Round percentage answer to 1 decimal place. i.e., 0.123 should be considered as 12.3%)

2. What is the return on equity? (Round your answer to the nearest whole percentage place. i.e., 0.1234 should be considered as 12%)

3. What is the book value per share at the end of this year? (Round your answer to 2 decimal places.)

4. What is the average collection period? (Use 365 days in a year. Round your intermediate and final answers to 2 decimal places.)

5. What is the equity multiplier? (Round your answer to 2 decimal places.)

As part of President Trump’s first and second year in office and during the recent discussions

of the American Health Care Act, there has been a lot of policy discussion about Obamacare. Using

the rationales for government intervention, give at least one rationale for why the

government should intervene in health insurance.

What is the price value of a basis point (DV01) for a 10 year 6% Treasury bond trading at par?

Normally, capital gains earned in the mutual fund during the year are paid out to the investor as capital gains, at the end of the year.

REQUIRED:

1. What happens in a year in which the mutual fund suffers net capital losses.
2. What happens, if anything, to the Net Asset Value of a mutual fund after it pays out to investors all of the income it earned during the year.
3. What information in the Fund Facts document helps investors compare management fees among different mutual funds.   
4. Explain how a “bell curve” diagram helps investors to measure a stock’s price volatility.