Silver Company makes a product that is very popular as a Mother's Day gift. Thus, peak sales occur in May of each year, as shown in the company's sales budget for the second quarter given below:

April May June Total
Budgeted sales (all on account) $ 300,000 $ 500,000 $200,000 $ 1,000,000

From past experience, the company has learned that 20% of a month's sales are collected in the month of sale, another 70% are collected in the month following sale, and the remaining 10% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $230,000, and March sales totaled $260,000.

Requirement 1:

Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

Requirement 2:

Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.

1. A truck is purchased 3/1/19 for $10,000; a machine is purchased 7/1/19 for $20,000; and office furniture is purchased 10/1/19 for $5,000. No other assets are placed in service during the year. No 179 or additional depreciation is elected.

What is the proper convention?                            [ Select ]                       ["mid quarter", "half year", "mid month"]      

The depreciation for the truck for 2109 is                            [ Select ]                       ["2,000", "1,429", "3,500", "1,500"]      

The depreciation for the machine for 2019 is                            [ Select ]                       ["4,000", "2,142", "7,000", "2,858"]      

2. A truck is placed in service 5/1/19 with a cost of $5,000 and a machine is placed in service 10/1/19 with a cost of $20,000. No other assets are placed in service during the year. No 179 or additional depreciation is elected.

What is the proper convention?                            [ Select ]                       ["mid quarter", "half year", "mid month", ""]      

The depreciation for the truck for 2019 is:                            [ Select ]                       ["5,000", "1,000", "1,250", "50"]      

Moyes has taken delivery of 50,000 electronic devices from a firm in Malaysia. The seller is in a strong bargaining position and has priced the devices in Malaysian dollars at M$ 12 each.

It has granted Moyes 3 months’ credit. Malaysian interest rates are 3% per quarter. Moyes has all its money tied up in its operations but could borrow in sterling, its home currency at 4% per quarter if necessary.

Exchange rate :Malaysian dollar per £

Spot : 5.4165

Three-month forward= 5.425

A three-month sterling put, Malaysian dollar call currency option with a strike price of M$ 5.425/£ for M$ 600,000 is available for a premium of M$ 15,000.

Required:

a) Discuss, with the help of calculations three hedging strategies available to Moyes.

b) Weigh up the advantages and disadvantages of each strategy

. Yientieobiaa Ltd is offering 10 million units of 15-year bonds with a face value of GH¢1000
each. Though the bonds are being offered at a price of GH¢950 each, the bonds will be redeemed
at a premium of 15%. The annual coupon rate of the bonds is 20%. Interest is payable at the end
of every six months.
A provision in the bond indenture requires that Yientieobiaa Ltd establishes a sinking fund to
accumulate enough money to pay the total redemption value of the bonds upon maturity. To
comply with this provision, Yientieobiaa Ltd plans to set aside an even amount at the end of each
quarter over the next 15 years. Each of the even amounts that will be set aside will be invested
at an annual interest rate of 24% with quarterly compounding.
Required:
Calculate the even amount that should be put into the sinking fund at the end of each quarter to
raise enough money to pay the total redemption value of the bonds.

Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:

From past experience, the company has learned that 25% of a month’s sales are collected in the month of sale, another 60% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $380,000, and March sales totaled $410,000.

Required:

1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

2. Assume that the company will prepare a budgeted balance sheet as of June 30. Compute the accounts receivable as of that date.

You are interested in studying the effect of laptops in class on students’ performance. At the beginning of the quarter, you randomly assign your 250 students to sit on either the left half or the right half of the lecture hall. Students on the left half are told to bring laptops to class and to take notes on their laptops. Students who sit on the right side of the room are required to write notes on paper. At the end of the quarter, you compare their performance on the final exam, and find that the n = 125 students in the laptop group got an average score of 84% on the exam (SD = 8%), and the students in the longhand group got an average score of 80% on the exam (SD = 7%).

1. Compute a t-statistic to compare the two groups’ performance.

2. Compute the standardized effect size.

3. Interpret the effect size you computed in the previous question. What, precisely, does that number mean?