You are a designated accountant (CPA) working as the Controller for Orion Enterprises, a widely diversified company. As many publicly-traded companies do, Orion requires its senior managers to own shares in the company, as a condition of your employment.In your role as Controller, you are as a matter of course knowledgeable about the company’s performance, both forecast and actual. This morning, your senior accounting clerk prepared the draft financial statements for the current quarter. The preliminary net income for the quarter looks like it will be substantially larger than had been previously forecast. Because of this, you anticipate that the share price of the company will rise considerably when the quarterly results are released to the public.

Should you buy more shares in Orion Enterprises before the quarterly results are released to the public and the price increases? Provide at least four reasons for your action.

Which of the following observations appear to indicate market inefficiency? Explain whether the observation appears to contradict the weak, semi-strong, or strong efficiency.

1. a) Tax-exempt municipal bonds offer lower pretax returns than taxable government bonds
2. b) Managers make superior returns on their purchases of their company stock.
3. c) There is a positive relation between the return on the market in one quarter and the change in aggregate profits in the next quarter
4. d) There is evidence that stocks which have appreciated unusually in the recent past continue to do so in the future.
5. e) The stock of an acquired firm tends to appreciate in the period before the merger announcement.
6. f) Stocks of companies with unexpectedly high earnings appear to offer high returns for several months after the earnings announcement.
7. g) Very risky stocks on average give higher returns than safe stocks

Milford Company has the following sales projection (in units) for the next six months:
Feb: 2100
Mar: 2300
Apr: 1900
May: 2600
Jun: 2200
Jul: 1700

Each unit sells for $37 through April and $42 starting in May.

Milford has prepared the following sales budget for the quarter of April, May and June:

All of the sales are on credit. Cautious collects from customers as follows:
50% of sales in the month of sale
30% in the month following the sale, and
20% in the second month following the sale

Prepare a cash receipts budget for the quarter of April, May and June.

What is budgeted cash receipts May?

Furniture Depot orders a certain brand of mattress from its supplier and sells the mattresses at its retail location. The store currently orders 40 mattresses whenever the inventory level drops to 20. The cost to hold 1 mattress in inventory for one day is $0.75. The cost cost to place an order with the supplier is $80, and inventory is 30 mattresses. The daily demand probabilities are shown in the following table:

Daily Demand Probability

2 0.08

3 0.14

4 0.20

5 0.26

6 0.22

7 0.10

Lead time is decrete uniformly distributed between two and five days (both inclusive). Simulate this inventory policy for a quarter (90 days) and calculate the total quarterly cost. Also calculate the percentage of stockouts for the quarter. Replicate these calculations N times each to calculate the average values for these measures.

The above table represents the quarterly sales (measured in millions of dollars) for the Goodyear Tire from 2017 to 2019.

1. Compute the 4-quarter moving average. Put your answers onto the table.
2. Compute the 4-quarter centered moving average. Put your answers onto the table.
3. Compute the seasonal factor. Put your answers onto the table.Compute the seasonal index. Put your answers onto the table.
4. Compute the seasonal index. Put your answers onto the table.

Tucson Machinery, Inc., manufactures numerically controlled machines, which sell for an average price of $0.5 million each. Sales for these NCMs for the past two years were as follows: Use Exhibit 18.10.

a. Find the equation of a simple linear regression line using Excel. (Round your answers to 3 decimal places.)

b. Compute trend and seasonal factor from a linear regression line obtained with Excel. (Do not round intermediate calculations. Round your answers to 3 decimal places.)

c. Forecast sales for next year using the above seasonal factors. (Do not round intermediate calculations. Round your answers to 2 decimal places.)

1. ABC Fabrication has the following aggregate demand requirements and other data for the upcoming four quarters.

Other information;

Which of the following production plans is least costly?

A. Plan A–chase demand by hiring and layoffs;

B.Plan B–pure level strategy,

C. Plan C–1350 level with the remainder by subcontracting? (Show all your workings)

A closed economy can be described by the long-run classical model: Y = 5K 1/4L 3/4 C = 23500 + 0.6(Y – T) – 1200r I = 15000 – 800r MPK = 1.25K – 3/4L 3/4 MPL = 3.75K 1/4L –1/4 In this economy, there are two productive factors, K and L and both factor inputs are fully employed. The stock of capital and the supply of labour are equal to 50625 and 10000 respectively. Initially, the level of government spending represents 24% of the initial national income. The government runs a budget deficit, and the size of the budget deficits is equal to 4% of total output. Note: r represents the real interest rate and is measured in percentage points (for example, if r = 10, then this is interpreted as r = 10%). Keep your answers to 3 decimal points if needed. a) Compute the long-run equilibrium levels of consumption, national savings and real interest rate. Also, find the long-run equilibrium real wage for labour and real rental price of capital. (5 points). Suppose the outbreak of COVID-19 reduces spending by both households and businesses. As a result, autonomous consumption and autonomous investment change by 6% and 5% respectively. b) Find the new long-run equilibrium levels of national savings and real interest rate, real wage, and real rental price of capital. (4 points) c) Compare your answers in parts (a) & (b), what happens to the (equilibrium) level of investment? (i.e., increase/decrease/remain unchanged)? Explain, in words only, why the variable changes or remains unchanged. (4 points) d) Show your answers for parts (a) & (b) in three diagrams (that depict the loanable funds market, the labour market, and the rental market for capital in long-run equilibrium). Be sure to identify which points on your diagrams are the long-run equilibria for part (a) & (b) respectively. No written explanation is required. (6 points) e) Suppose the government wants to promote the level of national savings to 8250 via a change government spending. Find the change in the level of government spending that will accomplish this goal. What happens to the budget balance (i.e., improves/deteriorates/no change)? (6 points)

Sharp Company manufactures a product for which the following standards have been set:

During March, the company purchased direct materials at a cost of $60,120, all of which were used in the production of 3,200 units of product. In addition, 4,900 direct labor-hours were worked on the product during the month. The cost of this labor time was $53,900. The following variances have been computed for the month:

Required:

1. For direct materials:

a. Compute the actual cost per foot of materials for March.

b. Compute the price variance and the spending variance.

2. For direct labor:

a. Compute the standard direct labor rate per hour.

b. Compute the standard hours allowed for the month’s production.

c. Compute the standard hours allowed per unit of product.

Sharp Company manufactures a product for which the following standards have been set:

During March, the company purchased direct materials at a cost of $60,120, all of which were used in the production of 3,200 units of product. In addition, 4,900 direct labor-hours were worked on the product during the month. The cost of this labor time was $53,900. The following variances have been computed for the month:

Required:

1. For direct materials:

a. Compute the actual cost per foot of materials for March.

b. Compute the price variance and the spending variance.

2. For direct labor:

a. Compute the standard direct labor rate per hour.

b. Compute the standard hours allowed for the month’s production.

c. Compute the standard hours allowed per unit of product.