"Spending on durable goods decelerated the most, falling by 3.8% in the first quarter of 2025." questions

Questions

Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can...

Mid-South Auto Leasing leases vehicles to consumers. The attraction to customers is that the company can offer competitive prices due to volume buying and requires an interest rate implicit in the lease that is one percent below alternate methods of financing. On September 30, 2018, the company leased a delivery truck to a local florist, Anything Grows.

The lease agreement specified quarterly payments of $3,000 beginning on September 30, 2018, the beginning of the lease, and each quarter (December 31, March 31, and June 30) through June 30, 2021 (three-year lease term). The florist had the option to purchase the truck on September 29, 2020, for $6,000 when it was expected to have a residual value of $10,000. The estimated useful life of the truck is four years. Mid-South Auto Leasing's quarterly interest rate for determining payments is 3% (approximately 12% annually). Mid-South paid $25,000 for the truck. Both companies use straight-line depreciation or amortization. Anything Grows' incremental interest rate is 12%.

Hint: A lease term ends for accounting purposes when an option becomes exercisable if it's expected to be exercised (i.e. a BPO).

1. Calculate the amount of selling profit that Mid-South would recognize in this sales-type lease. (Be careful to note that, although payments occur on the last calendar day of each quarter, since the first payment was at the beginning of the lease, payments represent an annuity due.)

2. Prepare the appropriate entries for Anything Grows and Mid-South on September 30, 2018.

3. Prepare an amortization schedule(s) describing the pattern of interest expense for Anything Grows and interest revenue for Mid-South Auto Leasing over the lease term.

4. Prepare the appropriate entries for Anything Grows and Mid-South Auto Leasing on December 31, 2018.

5. Prepare the appropriate entries for Anything Grows and Mid-South on September 29, 2020, assuming the purchase option was exercised on that date.

In: Accounting

5. Calculate the price of a 3-year bond with a face value of $50,000, an annual...

5. Calculate the price of a 3-year bond with a face value of $50,000, an annual coupon rate of 8% and an annual market yield of 6%. Coupon payments are made semi-annually.
Select one:
a. $52,673
b. $47,379
c. $54,917
d. $52,709

21.On 3rd June, Treasurer of Australia, Josh Frydenberg announced that Australia is in recession after the economy was badly hit by bushfires and the coronavirus pandemic. According to the Bureau of Statistics, Australia’s GDP figures shrank 0.3% in the March quarter, the first quarter of negative growth in nine years.
To deal with recession, which monetary policy do you think the Reserve Bank of Australia (RBA) will use and why? Based on what you have learned in this unit, what effects will this policy have on cash rate, economic activities and inflation rate?

24.Last year, Cooper Technologies Ltd initiated an ambitious research and development (R&D) project aiming to create a unique technology to boost their competitive advantage against peer firms in the field of geospatial surveying. The R&D project was largely financed by the issuance of corporate bonds worth $350 million. The COVID-19 outbreak has caused severe disruptions to the progress of the project, which hence requires an extra funding of $250 million.
To meet the additional budget requirement, Cooper Technologies Ltd has decided to conduct an equity issuance in the form of a renounceable rights issue to shareholders. The issue price of a new share is at 12.18% discount of the current share price of $20.00.
Required (Please label your answers according to parts):
(a) Given that each right is currently traded at $2.03, what is the pro rata basis of the rights issue offer ? (i.e., how many existing shares does it take to obtain the right to subscribe for a new share ?).
(b) What is the theoretical ex-rights share price of Cooper Technologies Ltd?

In: Finance

Indicate the missing amount for each letter. Case 1 2 Direct materials used $9,850 $enter a...

Indicate the missing amount for each letter.

	Case
	1		2
Direct materials used	$9,850		$enter a dollar amount	(g)
Direct labor	5,460		9,060
Manufacturing overhead	9,030		4,350
Total manufacturing costs	enter a dollar amount	(a)	16,870
Beginning work in process inventory	1,490		enter a dollar amount	(h)
Ending work in process inventory	enter a dollar amount	(b)	3,300
Sales revenue	25,200		enter a dollar amount	(i)
Sales discounts	2,720		2,120
Cost of goods manufactured	18,100		22,160
Beginning finished goods inventory	enter a dollar amount	(c)	3,870
Goods available for sale	22,510		enter a dollar amount	(j)
Cost of goods sold	enter a dollar amount	(d)	enter a dollar amount	(k)
Ending finished goods inventory	4,340		2,630
Gross profit	enter a dollar amount	(e)	7,620
Operating expenses	3,350		enter a dollar amount	(l)
Net income	enter a total net income amount	(f)	5,350

eTextbook and Media

Prepare a condensed cost of goods manufactured schedule for Case 1.

CASE 1 Cost of Goods Manufactured Schedule
				$enter a dollar amount
		$enter a dollar amount
		enter a dollar amount
		enter a dollar amount
				enter a total of the three previous amounts
				enter a total amount for this part of the schedule
				enter a dollar amount
				$enter a total amount for this schedule

eTextbook and Media

Prepare an income statement for Case 1.

CASE 1 Income Statement
		$enter a dollar amount
		enter a dollar amount
				$enter a total amount for section one

		enter a dollar amount
		enter a dollar amount
		enter a total of the two previous amounts
		enter a dollar amount
				enter a total amount for section two
				enter a total amount for the first part
				enter a dollar amount
				$enter a total net income or loss amount

Prepare the current assets section of the balance sheet for Case 1. Assume that in Case 1 the other items in the current assets section are as follows: Cash $3,330, Receivables (net) $15,440, Raw Materials $640, and Prepaid Expenses $410. (List Current Assets in order of liquidity.)

CASE 1 (Partial) Balance Sheet

				$enter a dollar amount
				enter a dollar amount

		$enter a dollar amount
		enter a dollar amount
		enter a dollar amount
				enter a subtotal of the three previous amounts
				enter a dollar amount
				$enter a total amount for this section

In: Accounting

REC Tire Company completed the following perpetual inventory transactions during the month of May: May 1...

REC Tire Company completed the following perpetual inventory transactions during the month of May:

May 1 Beginning invetntory 16 tires @ $65 each

May 11 purchased 10 tires @ $75 each

May 23 sold 12 tires at $90 each

May 26 purchased 14 tires at $80 each

May 29 sold 15 tires at $80 each

In the partially completed schedules provided below, show :

1. the cost of goods sold for each of the sales; and

2. the value of the inventory on hand after each sale

using the FIFO method, the LIFO method and the weighted average methods for valuing inventory. For the weighted average method, also show the average cost per unit used to compute the cost of goods sold and the inventory after the sale, rounded to the nearest penny (two decimal points). Thus your answer should show for each inventory costing method, two cost of goods sold figures (one for each sale) and two inventory values (one after for each sale). Use the schedules below for your answers. The cells for the required answers are shaded but you may use the other unshaded cells for interim figures if it will help in calculating your answers. Please show only the total values, not the cost and quantities of the individual cost layers of the inventories or goods sold. The first answer has been computed to illustrate the form of answer required.

A. FIFO Method:

Date	Purchased/Sold	No. of Units	Unit Price	Total Price	Cost of Goods Sold	Inventory Value

1-May	Inventory	16	65	1,040

11-May	Purchased	10	75	750

23-May	Sold	12	90	1,080	780	1,010

26-May	Purchased	14	80	1,120

29-May	Sold	15	90	1,350






B. LIFO Method:

Date	Purchased/Sold	No. of Units	Unit Price	Total Price	Cost of Goods Sold	Inventory Value

1-May	Inventory	16	65	1,040

11-May	Purchased	10	75	750

23-May	Sold	12	90	1,080

26-May	Purchased	14	80	1,120

29-May	Sold	15	90	1,350






C. Weighted Average Method:

Date	Purchased/Sold	No. of Units	Unit Price	Total Price	Average Cost per Unit	Cost of Goods Sold	Inventory Value

1-May	Inventory	16	65	1,040

11-May	Purchased	10	75	750

23-May	Sold	12	90	1,080

26-May	Purchased	14	80	1,120

29-May	Sold	15	90	1,350

In: Accounting

Entries and Schedules for Unfinished Jobs and Completed Jobs Hildreth Company uses a job order cost...

Entries and Schedules for Unfinished Jobs and Completed Jobs

Hildreth Company uses a job order cost system. The following data summarize the operations related to production for April, the first month of operations:

Materials purchased on account, $2,380.

Materials requisitioned and factory labor used:

Job No.	Materials	Factory Labor
101	$2,730	$2,040
102	3,330	2,750
103	2,210	1,350
104	7,480	5,060
105	4,750	3,860
106	3,470	2,450
For general factory use	930	3,020

Factory overhead costs incurred on account, $5,210.

Depreciation of machinery and equipment, $1,450.

The factory overhead rate is $40 per machine hour. Machine hours used:

Job No.	Machine Hours
101		43
102		18
103		38
104		70
105		39
106		31
Total		239

Jobs completed: 101, 102, 103, and 105.

Jobs were shipped and customers were billed as follows: Job 101, $7,790; Job 102, $8,160; Job 105, $14,730.

Required:

1. Journalize the entries to record the summarized operations. For a compound transaction, if an amount box does not require an entry, leave it blank.

Entries

Description

Debit

Credit

a.

Materials

Accounts Payable

b.

Work in Process

Factory Overhead

Materials

Wages Payable

c.

Factory Overhead

Accounts Payable

d.

Factory Overhead

Accumulated Depreciation-Machinery and Equipment

e.

Work in Process

Factory Overhead

f.

Finished Goods

Work in Process

g. Sale

Accounts Receivable

Sales

g. Cost

Cost of Goods Sold

Finished Goods

2. Post the appropriate entries to T accounts for Work in Process and Finished Goods, using the identifying letters as transaction codes. Insert memo account balances as of the end of the month.

Work in Process
(b)		(f)
(e)
Bal.

Finished Goods
(f)		(g)
Bal.

3. Prepare a schedule of unfinished jobs to support the balance in the work in process account.

Hildreth Company Schedule of Unfinished Jobs
Job	Direct Materials	Direct Labor	Factory Overhead	Total
No. 104	$	$	$	$
No. 106
Balance of Work in Process, April 30				$

4. Prepare a schedule of completed jobs on hand to support the balance in the finished goods account.

Hildreth Company Schedule of Completed Jobs
Job	Direct Materials		Direct Labor		Factory Overhead		Total
*Finished Goods, April 30 (Job 103)*	$		$		$		$

In: Accounting

The records of Fremont Corporation’s initial and unaudited accounts show the following ending inventory balances, which...

The records of Fremont Corporation’s initial and unaudited accounts show the following ending inventory balances, which must be adjusted to actual costs.

	Units	Unaudited Costs
Work-in-process inventory	190,000	$	812,122
Finished goods inventory	21,000		358,700

As the auditor, you have learned the following information. Ending work-in-process inventory is 40 percent complete with respect to conversion costs. Materials are added at the beginning of the manufacturing process, and overhead is applied at the rate of 80 percent of the direct labor costs. There was no finished goods inventory at the start of the period. The following additional information is also available.

		Costs
	Units	Direct Materials		Direct Labor
Beginning inventory (80% complete as to labor)	88,000	$	686,400	$	848,000
Units started	540,000
Current costs			1,700,000		2,236,000
Units completed and transferred to finished goods inventory	438,000

Required:

a. Prepare a production cost report for Fremont using the weighted-average method. (Hint: You will need to calculate equivalent units for three categories: materials, labor, and overhead.) (Round "Cost per equivalent unit" to 2 decimal places.)

FREMONT CORPORATION
Production Cost Report- Weighted- Average

Flow of Production Units	Physical Units
Units to be accounted for
Beginning WIP inventory	??
Units started this period	??
Total units to be accounted for	??

Compute Equivalent Units

		Materials	Labor	Overhead
Units accounted for:
Units completed and transferred out
From beginning inventory	??
Started and completed currently	??
Transferred Out	??	??	??	??
Units in ending WIP inventory	??	??	??	??
Total Units accounted for

DETAILS

	Total Costs	Materials	Labor	Overhead
Costs to be accounted for:
Costs in beginning WIP inventory	??	??	??	??
Current Period costs	??	??	??	??
Total costs to be accounted for	$	$	$	$

Cost per equivalent unit:
Materials		??
Labor			??
Overhead				??

Costs accounted for:
Costs assigned to units transferred out:
Materials	??	??
Labor	??		??
Overhead	??			??
Total costs of units transferred out:	$$
Costs assigned to ending WIP inventory:
Materials	??	??
Labor	??		??
Overhead	??			??
Total ending WIP inventory	$$
Total Costs accounted for	$$	$$	$$	$$

b. Show the journal entry required to correct the difference between the unaudited records and actual ending balances of Work-in-Process Inventory and Finished Goods Inventory. Debit or credit Cost of Goods Sold for any difference. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

** Record the difference between the unaudited and actual ending balances of Work-In-Process Inventory and Finished Goods Inventory

Event	General Journal	Debit	Credit
1

c. If the adjustment in requirement (b) is not made, will the company’s income and inventories be overstated or understated?


Income would have been
Working in process would have been
Finished goods would have been

In: Accounting

If the demand for good X is QdX = 10 + aX PX + aY PY...

If the demand for good X is Q_d^X = 10 + a_X P_X + a_Y P_Y + a_MM. If M is the income and a_M is positive, then:

Goods y and x are complements
Good x is an interior good
Goods y and x are not related goods
Goods y and x are interior goods
Good x is a normal goods

In: Economics

This case continues following the new project of the WePROMOTE Company, that you and your partner...

This case continues following the new project of the WePROMOTE Company, that you and your partner own. WePROMOTE is in the promotional materials business. The project being considered is to manufacture a very unique case for smartphones. The case is very durable, attractive and fits virtually all models of smartphone. It will also have the logo of your client, a prominent, local company and is planned to be given away at public relations events by your client.

As we know from the prior case involving this company, more details of the project become apparent and with more precision and certainty.

The following are the final values to the data:

The cost of the equipment will be $70,000 and this cost is incurred prior to any cash is received by the project.
The expected annual cash revenue of the project will be $30,000.
The expected annual cash outflows (expenses/costs) are estimated at being $11,000, excluding depreciation.
Your tax rate is 30% and you plan to depreciate the equipment on a straight-line basis for the life of the equipment. The discount rate you are assuming is 6%.
After 5 years the equipment will stop working and there will be no salvage value.

Requirements of the paper:

Perform the final NPV calculations and provide a narrative on how you calculated the computations and why (justification of answer).
Present your calculated answers in schedule format (a table) along with your narrative. Microsoft Excel is also recommended for calculating and creating a table (your schedule).
Then provide a summary conclusion on whether you should continue to pursue this business opportunity.

In: Accounting

Review the attached budget report that includes current actuals, current budget, the annualized results based on...

Review the attached budget report that includes current actuals, current budget, the annualized results based on this year’s YTD, and the prior year’s actuals to use for trending purposes. Build next year’s budget based on the following assumptions and explain why you set the budget category amounts where you set them, use the checklist for building a budget in chapter 15 for help:
1. The volumes, units of service (UOS), will increase by 5%, both Inpatient days and Outpatient procedures
2. The ratio of revenue per UOS will decrease by 1%
3. The ratio of labor to the UOS, productivity target, will stay the same
4. The labor costs will increase by 2%
5. The supply costs will increase by 2%

General Hospital Budget Report-June 2016					General Hospital Budget YTD				General Hospiutal Budget Annualized 2016				General Hospital Budget 2015
	Current Month				Year To Date Data-2016				Annualized Data-2016				2015 Data
Category	Actual	Budget	Variance	% Variance	Actual	Budget	Variance	% Variance	Actual	Budget	Variance	% Variance	Actual	Budget	Variance	% Variance
Revenue
Inpatient Volume-Days	4,000	3,500	500	14.3%	24,000	21,000	3,000	14.3%	48,000	42,000	6,000	14.3%	43,200	39,900	3,300	8.3%
Inpatinet Revenue	$2,400,000	$2,100,000	$300,000	14.3%	$14,400,000	$12,600,000	$1,800,000	14.3%	$28,800,000	$25,200,000	$3,600,000	14.3%	$25,920,000	$23,940,000	$1,980,000	8.3%

Outpatient Volume-Procedures	1,100	1,000	100	10.0%	6,600	6,000	600	10.0%	13,200	12,000	1,200	10.0%	11,880	11,400	480	4.2%
Outpatient Revenue	$286,000	$250,000	$36,000	14.4%	$1,716,000	$1,500,000	$216,000	14.4%	$3,432,000	$3,000,000	$432,000	14.4%	$3,088,800	$2,850,000	$238,800	8.4%

Total Revenue	$2,686,000	$2,350,000	$336,000	14.3%	$16,116,000	$14,100,000	$2,016,000	14.3%	$32,232,000	$28,200,000	$4,032,000	14.3%	$29,008,800	$26,790,000	$2,218,800	8.3%

Operating Expenses
Inpatient Labor	$1,500,000	$1,225,000	$275,000	22.4%	$9,000,000	$7,350,000	$1,650,000	22.4%	$18,000,000	$14,700,000	$3,300,000	22.4%	$16,200,000	$13,965,000	$2,235,000	16.0%
Inpatient Supplies	$500,000	$525,000	-$25,000	-4.8%	$3,000,000	$3,150,000	-$150,000	-4.8%	$6,000,000	$6,300,000	-$300,000	-4.8%	$5,400,000	$5,985,000	-$585,000	-9.8%
Total Inpatient Expenses	$2,000,000	$1,750,000	$250,000	14.3%	$12,000,000	$10,500,000	$1,500,000	14.3%	$24,000,000	$21,000,000	$3,000,000	14.3%	$21,600,000	$19,950,000	$1,650,000	8.3%

Outpatient Labor	$137,500	$150,000	-$12,500	-8.3%	$825,000	$900,000	-$75,000	-8.3%	$1,650,000	$1,800,000	-$150,000	-8.3%	$1,485,000	$1,710,000	-$225,000	-13.2%
Outpatient Supplies	$55,000	$50,000	$5,000	10.0%	$330,000	$300,000	$30,000	10.0%	$660,000	$600,000	$60,000	10.0%	$594,000	$570,000	$24,000	4.2%
Total Outpatient Exepenses	$192,500	$200,000	-$7,500	-3.8%	$1,155,000	$1,200,000	-$45,000	-3.8%	$2,310,000	$2,400,000	-$90,000	-3.8%	$2,079,000	$2,280,000	-$201,000	-8.8%

Total Operating Expenses	$2,192,500	$1,950,000	$242,500	12.4%	$13,155,000	$11,700,000	$1,455,000	12.4%	$26,310,000	$23,400,000	$2,910,000	12.4%	$23,679,000	$22,230,000	$1,449,000	6.5%

Net Revenue	$493,500	$400,000	$93,500	23.4%	$2,961,000	$2,400,000	$561,000	23.4%	$5,922,000	$4,800,000	$1,122,000	23.4%	$5,329,800	$4,560,000	$769,800	16.9%

In: Finance

The American Association of Individual Investors (AAII) On-Line Discount Broker Survey polls members on their experiences...

The American Association of Individual Investors (AAII) On-Line Discount Broker Survey polls members on their experiences with electronic trades handled by discount brokers. As part of the survey, members were asked to rate their satisfaction with the trade price and the speed of execution, as well as provide an overall satisfaction rating. Possible responses (scores) were no opinion (0), unsatisfied (1), somewhat satisfied (2), satisfied (3), and very satisfied (4). For each broker, summary scores were computed by computing a weighted average of the scores provided by each respondent. A portion the survey results follow (AAII website, February 7, 2012).

Brokerage	Satisfaction with Trade Price	Satisfaction with Speed of Execution	Overall Satisfaction with Electronic Trades
Scottrade, Inc.	3.5	3.2	3.6
Charles Schwab	3.2	3.3	3.4
Fidelity Brokerage Services	3.1	3.4	3.9
TD Ameritrade	2.8	3.6	3.8
E*Trade Financial	2.9	3.2	2.9
(Not listed)	2.6	3.2	2.7
Vanguard Brokerage Services	2.6	3.8	2.8
USAA Brokerage Services	2.4	3.8	3.6
Thinkorswim	2.6	2.6	2.6
Wells Fargo Investments	2.3	2.7	2.3
Interactive Brokers	3.7	4.0	4.0
Zecco.com	2.5	2.5	2.5
Firstrade Securities	3.0	2.9	4.0
Banc of America Investment Services	4.0	1.0	2.0

(a)	Develop an estimated regression equation using trade price and speed of execution to predict overall satisfaction with the broker.
	Let x₁ represent satisfaction with Trade Price.
	Let x₂ represent satisfaction with speed of execution.
	If required, round your answers to four decimal places. For subtractive or negative numbers use a minus sign even if there is a + sign before the blank. (Example: -300)
ŷ	= + x₁ + x₂
	What is the coefficient of determination?
	If required, round your answers to four decimal places.

	Interpret the coefficient of determination.
	The input in the box below will not be graded, but may be reviewed and considered by your instructor.


(b)	Use the t test to determine the significance of each independent variable. What are your conclusions at the 0.05 level of significance?
	The input in the box below will not be graded, but may be reviewed and considered by your instructor.


(c)	Interpret the estimated regression parameters. Are the relationships indicated by these estimates what you would expect?
	The input in the box below will not be graded, but may be reviewed and considered by your instructor.


(d)	Finger Lakes Investments has developed a new electronic trading system and would like to predict overall customer satisfaction assuming they can provide satisfactory levels of service levels (3) for both trade price and speed of execution. Use the estimated regression equation developed in part (a) to predict overall satisfaction level for Lakes Investments if they can achieve these performance levels.
	If required, round your answer to one decimal places. Do not round intermediate calculations.


(e)	What concerns (if any) do you have with regard to the possible responses the respondents could select on the survey?
	The input in the box below will not be graded, but may be reviewed and considered by your instructor.

In: Math