Below is a list of domestic output and national income figures for a certain year. All figures are in billions. The questions that follow ask you to determine the major national income measures by both the expenditures and the income approaches. The results you obtain with the different methods should be the same.
|
a. Using the above data, determine GDP by both the expenditures and the income approaches. Then determine NDP.
b. Now determine NI in two ways: first, by making the required additions or subtractions from NDP (method 1); and second, by adding up the types of income and taxes that make up NI (method 2).
In: Economics
1) Prepare entries to record the following events and transactions for Tulia Township for the year 2016.
a. The Township adopted a budget calling for appropriations of $360,000. The estimated revenues (all property taxes) were $340,000.
b. The Township sent property tax bills amounting to $340,000 to property owners.
c. Property owners paid $335,000 of property taxes to the Township.
d. A purchase order of $25,000 was sent to a vendor of supplies.
e. The supplies ordered in transaction d. were received in good order and the accompanying invoice of $24,000 was approved.
2) Following is the adjusted trial balance for the General Fund of the Township of Florida on June 30, 2016, the end of the fiscal year.
Based on this information, prepare:
1. closing entries
2. the statement of revenues, expenditures, and changes in fund balance for the year
2. the balance sheet at June 30, 2016. (Classify the fund balance as Unassigned.)
|
Township of Florida General Fund Adjusted Trial Balance June 30, 2016 |
||
|
Cash |
$ 6,200 |
|
|
Taxes receivable |
40,000 |
|
|
Investments |
65,000 |
|
|
Vouchers payable |
38,750 |
|
|
Tax anticipation notes payable |
12,750 |
|
|
Unassigned fund balance |
57,000 |
|
|
Estimated revenues |
101,000 |
|
|
Appropriations |
99,000 |
|
|
Budgetary fund balance |
2,000 |
|
|
Revenues-taxes |
100,000 |
|
|
Revenues-other |
2,080 |
|
|
Expenditures-personal services |
94,700 |
|
|
Expenditures-supplies |
4,680 |
0 |
|
|
$ 311,580 |
$ 311,580 |
In: Accounting
Based on the financial statements provided, prepare a statement of cash flows for the year ended February 28, 2018.
| SILVER CLOUD COMPUTING | ||||
| Income Statements | ||||
| For the Years Ended February 28, 2018 and 2017 | ||||
| fye 2/28/2018 | fye 2/28/2017 | |||
| (in thousands) | (in thousands) | |||
| Sales | $ 225,000 | $ 200,000 | ||
| Sales Discounts | 3,375 | 2,500 | ||
| Net Sales | 221,625 | 197,500 | ||
| Wages and Salaries | 73,500 | 70,000 | ||
| Bad Debt Expense | 2,100 | 2,000 | ||
| Depreciation | 20,000 | 20,000 | ||
| Marketing Expense | 33,750 | 30,000 | ||
| Occupancy Expense | 54,000 | 54,000 | ||
| Research & Development | 22,500 | 20,000 | ||
| Total Expenses | 205,850 | 196,000 | ||
| Income from Operations | 15,775 | 1,500 | ||
| Interest Expense | 1,200 | 1,200 | ||
| Income Before Taxes | 14,575 | 300 | ||
| Income Taxes (40%) | 5,830 | 120 | ||
| Net Income | $ 8,745 | $ 180 | ||
| SILVER CLOUD COMPUTING | |||||||
| Balance Sheets | |||||||
| February 28, 2018 and 2017 and February 29, 2016 | |||||||
| At Inception | |||||||
| Feb 28 2018 | Feb 28 2017 | Feb 29 2016 | |||||
| (in thousands) | (in thousands) | (in thousands) | |||||
| Cash | $ 55,755 | $ 22,300.00 | $ 10,000 | ||||
| Accounts Receivable | 18,000 | 16,000 | - | ||||
| Net Computer Equipment | 20,000 | 40,000 | 60,000 | ||||
| Total Assets | $ 93,755 | $ 78,300 | $ 70,000 | ||||
| Accounts Payable | $ 9,000 | $ 8,000 | $ - | ||||
| Taxes Payable | 5,830 | 120 | - | ||||
| Long-term Debt | 30,000 | 30,000 | 30,000 | ||||
| Common Stock | 40,000 | 40,000 | 40,000 | ||||
| Retained Earnings | 8,925 | 180 | - | ||||
| Total Liabilities & Stockholders Equity | $ 93,755 | $ 78,300 | $ 70,000 | ||||
In: Accounting
Assume that Ernesto purchased a laptop computer on July 10 of year 1 for $3,000. In year 1, 80 percent of his computer usage was for his business and 20 percent was for computer gaming with his friends. This was the only asset he placed in service during year 1. Ignoring any potential §179 expense and bonus depreciation, answer the questions for each of the following alternative scenarios: (Use MACRS Table 1, Table 2.) (Do not round intermediate calculations. Round your final answers to the nearest whole dollar amount. Leave no answer blank. Enter zero if applicable.)
a. What is Ernesto's depreciation deduction for the computer in year 1?
b. What would be Ernesto's depreciation deduction for the computer in year 2 if his year 2 usage was 75 percent business and 25 percent for computer gaming?
c. What would be Ernesto's depreciation deduction for the computer in year 2 if his year 2 usage was 45 percent business and 55 percent for computer gaming?
d. What would be Ernesto’s depreciation deduction for the computer in year 2 if his year 2 usage was 30 percent business and 70 percent for computer gaming?
In: Accounting
A survey of several 9 to 11 year olds recorded the following amounts spent on a trip to the mall: $20.70, $20.82, $12.32, $19.53, $24.43
Construct the 98% confidence interval for the average amount spent by 9 to 11 year olds on a trip to the mall. Assume the population is approximately normal.
Step 1 of 4: Calculate the sample mean for the given sample data. Round your answer to two decimal places.
Step 2 of 4: Calculate the sample standard deviation for the given sample data. Round your answer to two decimal places.
Step 3 of 4: Find the critical value that should be used in constructing the confidence interval. Round your answer to three decimal places.
Step 4 of 4: Construct the 98% confidence interval. Round your answer to two decimal places.
In: Math
On January 1st of this year, the stockholder's equity section in the Slate Gravel Co. consisted of the following items:
Common Stock, $1 par value, 1 million shares
Authorized, 300,000 shares issued & outstanding $300,000
Paid in Capital in Excess of Par (APIC) 100,000
Retained earnings 500,000
Total Stockholder's equity.......... $900,000
Based on the information above, prepare journal entries in the spaces below to record the following transactions. Use good General Journal form, but you may omit explanations:
April 4 Issued 10,000 shares of stock at $15.00 per share.
June 20 The board of directors declared a $1.00 per share cash dividend payable July 15 to the July 10 stockholder's of record.
July 15 Paid the cash dividend previously declared.
July 22 Issued 5,000 shares of stock for $10.00 per share.
Dec. 18 The board of directors declared a $0.10 per share cash dividend payable January 5th, of next year to the January 1st,stockholder's of record.
In: Accounting
A company is considering an 8-year project to expand into a new
geographical area. The project requires a new machine, which would
cost $230,000 FOB San Francisco, with a shipping cost of $8,000 to
the new plant location. Installation expenses of $13,000 would also
be required. This new machine would be classified as 7-year
property for MACRS depreciation purposes. The project engineers
anticipate that this equipment could be sold for salvage for
$40,000 at the end of theproject. If the corporate tax rate is 31%,
what is the after tax salvage cash flow for this new machine at the
end of the project? (Answer to the nearest dollar.)
MACRS percentages for depreciation each year are as follows:
Year %
1 14.29 2 24.49 3 17.49 4 12.49 5 8.93 6 8.93 7 8.93 8 4.45
In: Finance
The Eldorado Corporation's controller prepares adjusting entries only at the end of the fiscal year. The following adjusting entries were prepared on December 31, 2016: Debit Credit Interest expense 7,200 Interest payable 7,200 Rent expense 35,000 Prepaid rent 35,000 Interest receivable 500 Interest revenue 500 Additional information: The company borrowed $120,000 on March 31, 2016. Principal and interest are due on March 31, 2017. This note is the company's only interest-bearing debt. Rent for the year on the company's office space is $60,000. The rent is paid in advance. On October 31, 2016, Eldorado lent money to a customer. The customer signed a note with principal and interest at 6% due in one year. Required: Determine the following: What is the interest rate on the company's note payable? The 2016 rent payment was made at the beginning of which month? How much did Eldorado lend its customer on October 31?
In: Accounting
Herman Co. is considering a four-year project that will require an initial investment of $7,000. The base-case cash flows for this project are projected to be $14,000 per year. The best-case cash flows are projected to be $26,000 per year, and the worst-case cash flows are projected to be –$4,500 per year. The company’s analysts have estimated that there is a 50% probability that the project will generate the base-case cash flows. The analysts also think that there is a 25% probability of the project generating the best-case cash flows and a 25% probability of the project generating the worst-case cash flows.
What would be the expected net present value (NPV) of this project if the project’s cost of capital is 11%?
$26,684
$25,114
$29,823
$31,393
Herman now wants to take into account its ability to abandon the project at the end of year 2 if the project ends up generating the worst-case scenario cash flows. If it decides to abandon the project at the end of year 2, the company will receive a one-time net cash inflow of $4,750 (at the end of year 2). The $4,750 the company receives at the end of year 2 is the difference between the cash the company receives from selling off the project’s assets and the company’s –$4,500 cash outflow from operations. Additionally, if it abandons the project, the company will have no cash flows in years 3 and 4 of the project.
Using the information in the preceding problem, find the expected NPV of this project when taking the abandonment option into account.
$31,350
$34,833
$33,091
$38,316
What is the value of the option to abandon the project?
In: Finance
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 $836,400 per year. The present annual sales volume (at the $91 selling price) is 25,200 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)?
In: Accounting