The following data were taken from the books of Powell Construction Ltd:

REQUIRED:

Prepare in the general ledger of Powell Construction Ltd for the month of August 2020:

a.       the Sales Ledger Control Account            (15 marks)

b.      Purchases Ledger Control Account            

Total 25 marks

NaCl is stable in the temperature range between 200 ^oC and 850 ^oC, but in that range, NaHCO₃decomposes by the reaction:

2 NaHCO₃ (s) → Na₂CO₃ (s) + H₂O (g) + CO₂ (g)

If a mixture of the two is heated to temperatures in the above range, the gaseous products will escape and the residue will contain the original NaCl and an amount of solid Na₂CO₃. The Na₂CO₃ is related stoichiometrically to the amount of NaHCO₃ which has decomposed. If the reaction has proceeded to completion (no remaining NaHCO₃), the moles, and therefore the weight of NaHCO₃originally in the sample, are able to be determined.

We heat the sample several times, weighing the residue after each heating.

We use the following criterion to establish that the reaction is complete:

The reaction is considered complete if the change in weight of the residue

is less that 5.0 mg (plus or minus) in two successive heatings.

The following data were collected in such a determination:

Some heatings may have been unnecessary. You may assume that the weight after the 4th heating is the final weight, even if prior heatings were unnecessary.

From the data, answer the following questions:

Q: Based on the amount of mass that was lost after the last heating, calculate the grams of NaHCO₃ in the original sample of the mixture. Calculate the percent of NaHCO₃ in the original sample before heating.

2. AMC Corporation currently expects to generate $40 million free cash flows each year forever, and it currently has $100 million cash. Its cost of capital is 10%. The firm has 10 million shares outstanding and no debt. Suppose AMC uses its excess cash to repurchase shares. After the share repurchase, news will come out that will change AMC’s free cash flow each year will be either $60 million or $20 million.

a.What is AMC’s share price prior to the share repurchase?

b.What is AMC’s share price after the repurchase if its firm value goes up? What is AMC’s share price after the repurchase if its firm value declines?

c. Suppose AMC waits until after the news comes out to do the share repurchase. What is AMC’s share price after the repurchase if its firm value goes up? What is AMC’s share price after the repurchase if its firm value declines?

d. Suppose AMC management expects good news to come out. Based on your answers to parts b and c, if management desires to maximize AMC’s long term share price, will they undertake the repurchase before or after the news comes out? When would management undertake the repurchase if they expect bad news to come out?

e. Given your answer to part d, what effect would you expect an announcement of a share repurchase to have on the stock price? Why?

 Net cash flows for a marketing campaign-- Marcus​ Tube, a manufacturer of​ high-quality aluminum​ tubing, has maintained stable sales and profits over the past 10 years. Although the market for aluminum tubing has been expanding by 5 % per​ year, Marcus has been unsuccessful in sharing this growth. To increase its​ sales, the firm is considering an aggressive marketing campaign that centers on regularly running ads in all relevant trade journals and exhibiting products at all major regional and national trade shows. The campaign is expected to require an annual​ tax-deductible expenditure of $150,000 over the next 5 years. Sales​ revenue, as shown in the income statement for 2018

Marcus Tube Income Statement for  
the Year Ended December 31, 2018  
Sales revenue   $20,600,000
Less: Cost of goods sold   15,450,000
Gross profits   $5,150,000
Less: Operating expenses  
General and administrative expense   $1,648,000
Depreciation expense   490,000
Total operating expense   $2,138,000
Earnings before interest and taxes   $3,012,000
Less: Taxes   1,204,800
Net operating profit after taxes   $1,807,200

totaled $20,600,000.

If the proposed marketing campaign is not​ initiated, sales are expected to remain at this level in each of the next 5​ years, 2019 through 2023. With the marketing​ campaign, sales are expected to rise to the levels shown in the table

  
Year   Sales revenue
2019   $21,100,000
2020   21,600,000
2021   22,100,000
2022   23,100,000
2023   24,100,000

for each of the next 5​ years; cost of goods sold is expected to remain at 75% of​ sales; general and administrative expense​ (exclusive of any marketing campaign​ outlays) is expected to remain at 8% of​ sales; and annual depreciation expense is expected to remain at $490,000. Assuming a 40% tax​ rate, find the net cash flows over the next 5 years associated with the proposed marketing campaign.

Allen Products​ LP, wants to do a scenario analysis for the coming year. The pessimistic prediction for sales is $ 900,000​; the most likely amount of sales is $ 1,118,000​; and the optimistic prediction is $ 1,288,000. ​Allen's income statement for the most recent year is shown here

Allen Products, Inc. Income Statement for
the Year Ended December 31, 2019  
Sales revenue   $937,400
Less: cost of good sold   436,828
Gross profits   $500,572
Less: operating expenses   245,599
Operating profits   $254,973
Less: interest expense   30,934
Net profit before taxes   $224,039
Less: taxes (rate 25%)   56,010
Net profits after taxes   $168,029

a. Use the ​percent-of-sales method, the income statement for December​ 31,2019​, and the sales revenue estimates to develop​ pessimistic, most​ likely, and optimistic pro forma income statements for the coming year.

b. Explain how this method could result in overstatement of profits for the pessimistic case and understatement of profits for the most likely and optimistic cases.

c. Restate the pro forma income statements prepared in part a. to incorporate the following assumptions about the costs:

$252,497 of the cost of goods sold is​ fixed; the rest is variable. $193,516 of the operating expenses is​ fixed; the rest is variable. All the interest expense is fixed.​

d. Compare your findings in part c. to your findings in part a. Do your observations confirm your explanation in part b​?

Use the ​percent-of-sales method, the income statement for December​ 31, 2019, and the sales revenue estimates to develop​ pessimistic, most​ likely, and optimistic pro forma income statements for the coming year.

Complete the pro forma income statement for the year ending December​ 31, 2020 that is shown below​ (pessimistic scenario): ​ (Round the percentage of sales to one decimal place and the pro forma income statement accounts to the nearest​ dollar.)

You own shares of the Nuveen Floating Rate Income Fund (ticker: JFR), which is a closed-end fund. You want to sell your shares. Which statement below applies to your situation?

Group of answer choices

Nuveen only accepts returns of shares if they are proven to be defective

Y must hold your shares because they have not yet matured

You must sell your shares to another investor

You may redeem your shares directly from Nuveen

The primary difference between a balanced fund and an asset allocation is:

Group of answer choices

that an asset allocation fund invests in a mix of stocks and bonds, while a balanced fund does not.

that a balanced fund's asset mix is roughly static while an asset allocation fund is dynamic over time.

that an asset allocation fund's asset mix is roughly static while a balanced fund is dynamic over time.

that a balanced fund invests in a mix of stocks and bonds, while an asset allocation fund does not.

Consider the closed economy Classical model depicted below, where consumption depends positively on disposable income and negatively on the real interest rate.

1) Suppose the government decides to reduce the overall level of taxes. What happens to public savings (Spublic), private savings (Sprivate), and total savings (S)?.

2) ) According to the Classical model, what are the long-run implications of the above change on the real interest rate (r), output (Y), and the expenditure components of output consumption (C), investment (I), and government expenditure (G))?

Explain what happens to saving, investment, and the real interest rate in each of the following scenarios in a closed economy. Illustrate your answer using a saving-investment diagram. Label the axes and curves clearly.

a) Real money supply increases

b) The tax code changes so that business firms face higher tax rates on their revenue (offset by other lump-sum tax changes so there’s no overall change in tax revenue). The rise in taxes reduces desired investment, shifting the Id curve to the left: in equilibrium, this reduce real interest rate, reducing saving as well as investment.

c) Current output rises The rise in output raises desired saving, shifting the Sd curve to the right; in equilibrium, this reduces the real interest rate, increasing investment as well.

d) The average educational level rises, inducing an increase in the future marginal productivity of capital. The rise in future marginal productivity of capital raises desired investment, shifting the Id curve to the right; in equilibrium, this raises the real interest rate, increasing saving as well as investment. 

8) Which of the following reactions with covalently closed, circular double stranded DNA (ccc dsDNA) does NOT result in a new linking number? Select one choice from the list below (A-D) and explain your answer.

A. incubation with a type I topoisomerase

B. incubation with a type II topoisomerase

C. incubation with ethidium bromide

D. a brief incubation with DNase I followed by resealing the breaks in the phosphodiester backbone with another enzyme (DNA ligase)