1.  What is the amount of the noncash expenses for 2009?

A. $570

B. $630

C. $845

D. $1,370

E. $2,000

2. What is the change in the net working capital from 2008 to 2009?

A. $1,235

B. $1,035

C. $1,305

D. $1,335

E. $1535

3.  What is the operating cash flow for 2009?

A. $845

B. $1,930

C. $2,215

D. $2,845

E. $3,060

4. What is the amount of the net capital spending for 2009?

A. -$290

B. $795

C. $1,080

D. $1,660

E. $2,165

After spending $10,400 on​ client-development, you have just been offered a big production contract by a new client. The contract will add $193,000 to your revenues for each of the next five years and it will cost you $105,000 per year to make the additional product. You will have to use some existing equipment and buy new equipment as well. The existing equipment is fully​ depreciated, but could be sold for $48,000 now. If you use it in the​ project, it will be worthless at the end of the project. You will buy new equipment valued at $35,000 and use the​ 5-year MACRS schedule to depreciate it. It will be worthless at the end of the project. Your current production manager earns $75,000 per year. Since she is busy with ongoing​ projects, you are planning to hire an assistant at $38,000 per year to help with the expansion. You will have to immediately increase your inventory from $20,000 to $30,000.It will return to $20,000 at the end of the project. Your​ company's tax rate is 35% and your discount rate is 16%. What is the NPV of the​ contract? Note​:Assume that the equipment is put into use in year 1.

Calculate the free cash flows​ below:  ​(Round to the nearest​ dollar.)

Presented are the budgeted and actual contribution margin Income Statements for International Books, LTD. INTERNATIONAL BOOKS,LTD Budgeted Income Statement Actual Income Statement Sales (900*$300)/(1,000*$330) $ 270,000 $ 330,000 Variable Costs Cost of Goods Sold Direct Materials (900*$50) $ 45,000 $ 50,000 Direct Labor (900*$20) $ 18,000 $ 25,000 Manufacturing overhead (900*$30) $ 27,000 $ 35,000 Selling Variable Costs (900*$70) $ 63,000 $ 100,000 Total Variable Costs $ 153,000 $ 210,000 Contribution Margin $ 117,000 $ 120,000 Fixed Costs Manufacturing overhead $ 40,000 $ 38,000 Selling $ 50,000 $ 65,000 Administrative $ 10,500 $ 22,000 Total Fixed Costs $ 100,500 $ 125,000 Net Income (Loss) $ 16,500 $ (5,000) Required:

1. Create a Flexible Budget for 1,000 units. 1. In that Flexible Budget, the Selling costs have been researched and would go up $4,000.

2. Also, Administrative costs are estimated to go up $3,500 despite their fixed cost nature (5 Points) 2. Create a Schedule that documents the following: 1. 1. Volume (Activity) and Spending Variances (Spend management) to explain the Actual and Budgeted Income Statements with the help of your Flexible Budget created in “A”. (5 points)

3. Provide a quick narrative (3-4 sentences) on the insights you observe on these variances documented in B. (5 points)

1)

In a small open economy, the increase in aggregate demand resulting from an increase in government spending is _____ if the exchange rate is ______ than if it is _______ .

A) larger, flexible, fixed

B) smaller, fixed, flexible

C )always zero

D) larger, fixed, flexible

2)

In a small open economy, the increase in aggregate demand resulting from an increase in the money supply is _____ if the exchange rate is ______ than if it is _______ .

A) larger, fixed, flexible

B) smaller, flexible, fixed

C) larger, flexible, fixed

D) always zero

3)

This chapter explains that expansionary monetary policy reduces the interest rate and thus stimulates demand for investment goods. How does such a policy also stimulate the demand for net exports?

The demand for net exports is stimulated by expansionary monetary policy through the____________ (exchange rate effect/ Money supply effect) . The decline in the interest rate___________ (increase / Decrease) net capital outflow and causes the exchange rate to________ (go up or go down).

4)

Suppose the Bank of Canada contracts the money supply in an effort to reduce aggregate demand by a particular amount, say $10 billion. Assume Canada is a closed economy. The amount by which the Bank of Canada would need to reduce the supply of money to accomplish this goal would be ________ (greater / smaller) than the amount it would need to reduce the supply of money if Canada was an open economy with a flexible exchange rate.

       ABC Corp

2014 Income Statement

($ in millions)

                                    Net sales                                             $9,610

                                    Less: Cost of goods sold                     6,310

                                    Less: Depreciation                              1,370

                                    Earnings before interest and taxes      1,930

                                    Less: Interest paid                                    630

                                    Taxable Income                                  $1,300

                                    Less: Taxes                                              455

                                    Net income                                         $   845

                                    Dividends paid to shareholders           $ 275

ABC COrp

2013 and 2014 Balance Sheets

($ in millions)

                                         2018       2019                                                 2018          2019

Cash                            $     310 $    405        Accounts payable       $ 2,720    $   2,570

Accounts rec.                 2,640      3,055        Notes payable                    100                0

Inventory                        3,275     3,850        Total Curr. Liab.         $ 2,820     $ 2,570

Total Curr. Assets       $ 6,225 $ 7,310        Long-term debt               7,875         8,100

Net fixed assets          10,960   10,670        Common stock               5,000         5,250

                                                                        Retained earnings           1,490         2,060

Total assets                 $17,185   $17,980       Total liab.& equity     $17,185     $17,980

Q. What is the change in Net Working Capital from 2013 to 2014? What is the amount of Net Capital Spending for 2014? What is the amount of Operating Cash Flow for 2014? What is the Cash Flow to the Creditors for 2014? Calculate the (a) ROA (Return on Assets) and (b) Net Profit Margin Ratios for 2014. Calculate the (a) Total Asset Turnover and (b) Equity Multiplier Ratio for 2014. Using the DuPont Approach and the ratios calculated above, demonstrate the calculation of the Return on Equity (ROE) for 2014?

A monetary expansion will:

In which of the following cases will the real exchange rate decrease?

A decrease in government spending will, in the medium run, cause an increase in:

Suppose i = 5%, i* = 8%, and that the domestic currency is expected to appreciate by 5% during the coming year. Given this information, we know that:

When the actual price level is greater than the expected price level, we know that:

JC Floor Design makes ceramic tiles

December sales were:

The Marketing Department, projects sales to:

increase by 5% in January     

February sales will be 15,000 units less than January

March sales will be 3% higher than February sales

April sales will be the 5,300 units less than march

The price is not expected to increase

JC inventory policy is to maintain an ending inventory equals to 30% of next month sales. Actual inventory is 168,000 units                         

Clay the material to make the tiles cost $.50 per pound and each tile requires .6 pound. Actual clay inventory is 60,000 pounds and the inventory policy is to maintain an inventory equal to 25% of next month production requirement.

April production is expected to be 525,000 units. The cost of direct materials purchased in December was $150,000                                

Each tile requires .10 hours and the labor hourly rate is $8.00 per hour       

Variable overhead rate is 20% of labor and fixed overhead is 25,000 monthly

Selling and administrative expenses are expected to be

70% of sales are cash sales and the remaining are collected in the next month

Material are paid 60% cash and the remaining the next month

The company has the following obligations:

100,000 in dividends will be paid in February

A new machine will be acquired in January with a cost of 250,000

A short-term loan with an outstanding balance of $150,000 is used to manage the cash position. Interest on the short-term loan are 1% monthly

Taxes of last quarter were $240,000 and will be paid in March. The company tax rate is 35%. and taxes are paid in the next quarter.

1. Compute Total Overhead for the quarter

2. Compute Product Cost

3. Compute Total sales expenses for the quarter

4. Compute Selling and Administrative expenses for February

1. The University of Florida is interested in determining if there is a difference in the proportion of male students that work versus female students, so they send out a survey with a question that asks, "Do you currently, or have you, worked a job while taking classes at UF?" Out of 874 males (group 2) that responded, 396 said yes, and out of the 902 females (group 1) that responded, 489 said yes.

(Males - Females)

Find the point estimate of the difference in the population proportion of females that work at UF versus males.

Group of answer choices

a. Unknown

b. -0.026

c. -0.089

d. -0.048

e. -0.098

2. Match the following scenarios with the correct test.

Test options are 1 of the 3 following:

1. Chi Square Goodness of Fit
2. Chi Square Homogeneity Test
3. Chi Square Test of Independence

Group of answer choices

(a.) A sales manager wants to know if the total count of commissions received by the company's sales team depends on sales methods (Memorized, Formula, Need-Satisfaction, and Problem-Solution) and business quarter (Q1, Q2, Q3, or Q4). The sales manager wants to know if these two factors are independent of each other.

- Chi Square Test of Independence

- Chi Square Homogeneity Test

- Chi Square Goodness of Fit

(b.) A sales manager wants to estimate the number of commissions received throughout the year (quarter by quarter). He has historic predictions in the form of percents, and then he collects the actual counts of the each quarter.

- Chi Square Test of Independence

- Chi Square Homogeneity Test

- Chi Square Goodness of Fit

(c.) A sales manager wants to know the general satisfaction of Long-Term and Short-Term clients regarding their experience with the companies sales representatives. The results to the survey were either "Satisfied", "Somewhat Satisfied", and "Unsatisfied".

- Chi Square Test of Independence

- Chi Square Homogeneity Test

- Chi Square Goodness of Fit

Julia Baker died, leaving to her husband Henry an insurance policy contract that provides that the beneficiary (Henry) can choose any one of the following four options. Money is worth 2.50% per quarter, compounded quarterly. Compute Present value if: Click here to view factor tables Correct answer. Your answer is correct. (a) $55,260 immediate cash. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $Entry field with correct answer 55260 SHOW SOLUTION LINK TO TEXT LINK TO TEXT Correct answer. Your answer is correct. (b) $4,040 every 3 months payable at the end of each quarter for 5 years. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $Entry field with correct answer 62980 SHOW SOLUTION LINK TO TEXT LINK TO TEXT Correct answer. Your answer is correct. (c) $19,160 immediate cash and $1,916 every 3 months for 10 years, payable at the beginning of each 3-month period. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $Entry field with correct answer 68459 SHOW SOLUTION LINK TO TEXT LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. (d) $4,040 every 3 months for 3 years and $1,490 each quarter for the following 25 quarters, all payments payable at the end of each quarter. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.) Present value $Entry field with incorrect answer 68894 LINK TO TEXT LINK TO TEXT Incorrect answer. Your answer is incorrect. Try again. Which option would you recommend that Henry exercise?

A firm's operating income is 500,000 the depreciation on equipment over the last year is 50,000 and the firm's tax rate is 30% fixed assets on the balance sheet increased by 100,000 over the last year. Operating capital has not changed over the last year. What was the capital spending over the last year?