| What is the payback period for the following set of cash flows? |
| Year | Cash Flow |
| 0 | −$ 4,200 |
| 1 | 2,500 |
| 2 | 2,600 |
| 3 | 2,600 |
| 4 | 1,900 |
In: Finance
Newman plans to retire in 25 years and plans to withdraw end of the year payments in the amount of $85,000 from
his retirement account to allow him to enjoy the same standard of living he has enjoyed in life thus far. Newman’s
financial planner has advised him that he should estimate his retirement will last 30 years and use a conservative
8% annual rate of return in his financial planning. Newman does already have $75,000 already saved up for
retirement, how much more does Newman need to save each year to reach his retirement goal?
*Round answers to the nearest dollar
In: Finance
You are set to receive an annual payment of 10600 per year for the next 12 years. Assume the interest rate is 5.5 percent. How much more are the payments worth if they are received at the beginning of the year rather than the end of the year
In: Finance
Suppose the interest rate is 5% today and will stay constant for exactly 1 year at which time it will increase to 7% for exactly 1 year. How much would you pay today for a bond that pays you $1378 in exactly 1 year from today and $2345 in exactly 2 years from today? Support your response
In: Economics
The Village of Parry reported the following for its Print Shop Fund for the year ended April 30, 2017.
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Village of Parry-Print Shop Fund |
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Statement of Revenues, Expenses, and Changes in Net Position |
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For the Year ended April 30, 2017 |
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Operating revenues: |
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Charges for services |
$1,110,000 |
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Operating expenses: |
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Salaries and benefits |
$500,000 |
|
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Depreciation |
303,000 |
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Supplies used |
202,000 |
|
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Utilities |
72.700 |
|
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Total operating expenses |
1,077,700 |
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Income from operations |
32,300 |
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Nonoperating income (expenses): |
||
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Interest revenue |
3,400 |
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Interest expense |
(5,500) |
|
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Total nonoperating expenses |
(2,100) |
|
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Income before transfers |
30,200 |
|
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Transfers in |
190,000 |
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Changes in net position |
220,200 |
|
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Net position-beginning |
1,124,000 |
|
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Net position-ending |
$1,344,200 |
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The Print Shop Fund records also revealed the following:
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1. Contribution from General Fund for working capital needs |
$86,000 |
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2. Contribution from General Fund for purchase of equipment |
104,000 |
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3. Loan (interest-free) from Water Utility Fund for purchase of equipment |
304,000 |
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4. Purchase of equipment |
(504,000) |
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5. Purchase of one-year investments |
(54,000) |
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6. Paid off a bank loan outstanding at May 1, 2016 |
(66,300) |
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The loan was for short-term operating purposes |
|
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And was the only interest-bearing debt outstanding |
|
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7. Signed a capital lease on April 30, 2017 |
$47,900 |
The following balances were observed in current asset and current liability accounts. ( ) denote credit balances:
|
5/1/2016 |
4/30/2017 |
|
|
Cash |
$196,700 |
$383,100 |
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Accrued interest receivable |
300 |
800 |
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Due from other funds |
40,000 |
58,000 |
|
Supplies |
0 |
0 |
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Accrued salaries and benefits |
(26,000) |
(36,000) |
|
Utility bills payable |
(5,200) |
(8,000) |
|
Accounts payable (for supplies only) |
(39,000) |
(31,000) |
|
Accrued interest payable |
(2,800) |
0 |
|
Bank loan payable |
(66,300) |
0 |
Prepare a Statement of Cash Flows for the Village of Parry Print Shop Fund for the year ended April 30, 2017. Include the reconciliation of operating income to net cash provided by operating activities.
In: Accounting
A company has a December year end and creates checks to pay their vendors towards the end of the month. The company creates all the proper journal entries at the time of creating the checks, but they do not mail the checks until January. Explain which, if any financial ratios are affected by this decision. Explain why this decision would be made?
In: Accounting
suppose the standard deviation of a stocks return is 25% per year and the riskless return is 10% APR.Answer the below questions using the Black -Scholas OPM. A. What is a 6 month call option on this stock worth if the strick price is $90 and the stock price is(Po)is currently at$104? B.what is the exercise value and the time premiumof this optrion? C.Everything else being equal,what is the value of a 6 month put option on the common stock?Use call- put parity.
In: Finance
The following events occurred over the course of a year at Bagby Corp., which uses a job order costing system:
1. Direct materials purchases totaled $460,000.
2. $230,000 of indirect materials were used in production. Bagby uses a separate Supplies Inventory account for indirect materials.
3. $415,000 of direct materials were used in production.
4. The direct labor payroll was $940,000 (credit Wages Payable).
5. Other manufacturing overhead costs incurred during the year totaled $540,000.
6. Bagby applies overhead based on a predetermined overhead rate of $15 per machine hour. The company used 50,000 machine hours during the year.
7. During the year, Bagby transferred goods costing $2,100,000 into the Finished Goods Inventory account.
8. Bagby sold products with a manufacturing cost of $2,050,000 to customers during the year.
Required
a. Prepare journal entries to record these events.
b. Prepare T-accounts for the following accounts: Direct Materials Inventory, Work in Process Inventory, Manufacturing Overhead Control, and Finished Goods Inventory. Record the transactions from part (a) in the T-accounts and calculate ending account balances. Assume the following beginning account balances: Account Balance Direct Materials Inventory $20,000 Work in Process Inventory $12,000 Finished Goods Inventory $35,000
c. Was overhead under- or overapplied for the year? By how much?
In: Accounting
There is a project with the following cash flows :
| Year | Cash Flow | |
| 0 | −$23,700 | |
| 1 | 7,000 | |
| 2 | 7,700 | |
| 3 | 7,100 | |
| 4 | 5,100 | |
What is the payback period?
Multiple Choice
2.73 years
4.00 years
3.81 years
3.63 years
3.37 years
In: Finance
An asset was purchased three years ago for $120,000. It falls into the five-year category for MACRS depreciation. The firm is in a 35 percent tax bracket. Use Table 12–12.
a. Compute the tax loss on the sale and the
related tax benefit if the asset is sold now for $12,560.
(Input all amounts as positive values. Do not round
intermediate calculations and round your answers to whole
dollars.)
|
b. Compute the gain and related tax on the sale if
the asset is sold now for $51,060. (Input all amounts as
positive values. Do not round intermediate calculations and round
your answers to whole dollars.)
|
In: Finance