1. bank Is offering bonds with a face value of $10,000 and a coupon rate per year of 7%,good for 5 years and the Interest is paid quarterly. Blom bank Is offering bonds with a face value of $10,000 and a coupon rate of 8% paid every 6 months also good for 5

years. The purchasing cost for the Byblos bond is $9,500 and for the Blom bank Is $9,750

,if your Marr is 5% a year CMPOUNDED MONTHLY ,which is a better investment based on present worth analysis?

Practice questions

(1)        The standard costs of wooden ducks on wheels, for the CURRENT year, for 5 mm board and for cutting are as follows:-

            5 mm board: 0.2 sq. metre at £4.50 per sq. metre.

            Cutters: 1.5 minutes at £7.20 per hour.

In the most recent period, 120 wooden ducks on wheels were produced.

25 sq. metres of 5 mm board were requisitioned from stores at a total cost of £110.

            2.75 hours were recorded for cutters at a total cost of £22.

            Required

(a)        Calculate the material price variance and material usage variance for 5 mm board

(ii)        Calculate the wage rate variance and labour efficiency variance for cutters

Suggest possible reasons for the variances calculated.

(2)        Given standard cost per unit:

            Direct materials (4 kg. @ 75p per kg)

            Direct labour (2 hrs @ £1.60 per hr)

            Actual details are:

            Calculate:         Material and labour variances.

3rd year Macroeconomics Question

(a) Suppose that output is at the full-employment level and that nominal wages are slow to adjust. Using the AD-AS framework to explain the short-run and long-run effects of the coronavirus on output and the price level. (Hint: How does the coronavirus affect the short-run and long-run aggregate supply curves and the aggregate demand curve?)

A 20 year loan of $120, 000 at i = 6% is paid off by paying 130% of each year’s interest at the end of each year for the first 12 years, and then for the next 8 years pay off the loan by paying off constant principle at the end of each year. Find the value of the last payment.

Robinson Company had a net deferred tax liability of $34,000 at the beginning of the year, representing a net taxable temporary difference of $100,000 (taxed at 34%). During the year, Robinson reported pretax book income of $400,000. Included in the computation were favorable temporary differences of $50,000 and unfavorable temporary differences of $20,000. During the year, Congress reduced the corporate tax rate to 21%. Robinson's deferred income tax expense or benefit for the current year would be:

Angel Corporation reported pretax book income of $1,000,000. During the current year, the net reserve for warranties increased by $25,000. In addition, tax depreciation exceeded book depreciation by $100,000. Finally, Angel subtracted a dividends received deduction of $25,000 in computing its current year taxable income. Angel's hypothetical tax expense in its reconciliation of its income tax expense is:

=

$189,000.

$194,250.

$210,000.

$204,750.

The following information is available for Weber Inc. on September 30 for the year just ended.

1. Of the consulting fees Weber Inc. received in advance, $800 has been earned.
2. Equipment purchased in a previous year for $18,500 will be sold after five years for $2,500.
3. Interest of $1,140 has accrued on a bank loan and is unrecorded.
4. Property taxes of $600 have accrued but are unrecorded.
5. Buildings purchased in a previous year for $68,750 will be sold after ten years for $9,250.
6. A review of the $12,500 unadjusted balance in the prepaid rent account shows a remaining balance of $9,000 at the end of the year.
7. A review of the $4,400 unadjusted balance in the supplies account shows a balance on hand at the end of the year of $4,100.
8. Weber Inc. purchased furniture in a previous year for $14,000 and expects to sell this furniture for $500 after ten years.
9. $3,000 of advertising Weber Inc. placed in the local newspaper is unrecorded and unpaid.
10. $1,000 of the television advertising paid for in advance has been used.

Prepare the required adjusting entries at September 30, 2014.
Enter the transaction letter as the description when entering the transactions in the journal. Dates must be entered in the format dd/mmm (i.e., January 15 would be 15/Jan). For each journal entry, indicate how each account affects the balance sheet (Assets, Liabilities, Equity). Use + for increase and - for decrease. For example, if an account decreases equity, choose '-Equity'.

1. In the country of Classica, we have the following information for the year 2012: *Consumption stood at $1 billion dollars worth of new goods and services, 20% of which were bought by foreigners residing there. *New housing stock worth $100 million was sold. *Company profit totalled $200 million. *Businesses bought $150 million dollars worth of bonds. *The government of Classica bought $200 million worth of guns for the military. *Citizens of Classica living overseas bought $50 million worth of goods from Classica.

i. Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Classica’s consumption in 2012

ii. Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Classica’s investment in 2012

iii. What was Classica’s GDP in 2012? Explain your answer                   

Oppenheimer Bank is offering a​ 30-year mortgage with an EAR of 5.500 %. If you plan to borrow $ 300,000​, what will your monthly payment​ be?

1) At the beginning of the current year, Omar Company declared a 1 for 5 reverse stock split, when the market value per share was $10. Prior to the split, Omar had 100,000 shares issued and outstanding. After the split, what is the market value of the shares? Select one:

a. 10

b. 20

c. 50

d. 2

2) How would retained earnings be affected by the declaration of cash dividends – common and stock dividends? Select one:

a. Component of shareholders’ equity as part of total shareholders’ equity

b. Component of total liabilities as current liability

c. Component of total liabilities as noncurrent liability

d. Component of equity as part of share premium

3) What information is typically included in the shareholders’ equity of a public corporation’s balance sheet?

i - Number of shares authorized ii - Number of shares issued iii - Number of shares outstanding iv – Number of shares held by each shareholder Select one:

a. all of i, ii, iii, and iv

b. i and ii only

c. i and iv only

d. i, ii, and iii only

4) A liquidating dividend: Select one:

a. Forces to corporation to downsize its operations

b. Uses paid-in capital to pay dividends

c. Forces shareholders to sell their shares for cash

d. Forces the issuer to repurchase shares for cash Forces to corporation to downsize its operations

5) How would retained earnings be affected by the declaration of cash dividends – common and stock dividends? Select one:

a. Decrease and Decrease

b. No effect and No effect

c. Decrease and No effect

d. No effect and Decrease

The following summarized data were provided by the records of Mystery Incorporated for the year ended December 31:

1. Based on these data, prepare a multi-step income statement for internal reporting purposes

.2-a. What was the amount of gross profit?

2-c. Which of the following(s) is true? (Select all that apply.)

3. Did the gross profit percentage in the current year improve, or decline, relative to the 48 percent gross profit percentage in the prior year?

There is _______ in the gross profit percentage when compared to 48% in the previous year.