1.) Littlefield Industries purchased a bond on September 1 of the current year for​ $200,000 and classified the investment as trading debt. The market value of the trading debt investment at​ year-end is​ $196,000. The adjustment is​ ______.

2.) On January​ 1, 2019, Commercial Equipment Sales issued $36,000 in bonds for $19,700. These are six−year bonds with a stated interest rate of 9​%, and pay semiannual interest on June 30 and December 31. Commercial Equipment Sales uses the straight-line method to amortize the Bond Discount. What amount is debited to Interest Expense on June​ 30, 2019?

3.) A $$33,000​, three- ​month, 1212​% note payable was issued on December​ 1, 2018. What is the amount of accrued interest on December​ 31, 2018?​ (Do not round any intermediate​ calculations, and round your final answer to the nearest​ dollar.)

1. Anderson plans to acquire an automated assembly line with ten year life at a cost of sh 10 million, delivered and installed. He plans to use the equipment for only five years.He can borrow the required 10 million at a before cost of 10%.The estimated scrap value is sh 50,000 after ten years, but its estimated scrap value after five years is sh 1 million. He can lease the equipment for 5 years at a rental charge of sh 2.75m payable at the beginning of each year. The lessor will maintain the equipment. However if he buys he will bear the cost of maintenance of shs500,000 per year payable at the beginning of the year.The marginal tax rate is 30%

          Analyze whether the company should purchase or lease the asset

PS: please have another expert try it. it had been done earlier ,same exact question but was locked out. .Thanks!

1. McKen restaurant is experiencing sales decline this year. The manager is worried about the sustainability of the restaurant. He asked you to form a team to investigate the causes of the sales decline. After identifying the management dilemma, you discuss the management question with your manager.

1. What type of management question should you set?
2. You found one internal report about customers’ complaint records in 2018 by the customer service department, however, your manager asked you to check “recentness”, “authority” and “compatibility” of the records. Comment on these three areas of the records.

A bank has issued a one- year certificate of deposit for $50 million at an interest rate of 2 percent. With the proceeds, the bank has purchased a two- year Treasury note that pays 4 percent interest. a) What is the Bank's asset? b) What is the Bank's liability? c) What risk does the bank face in entering into these transactions? d) What would happen if all interest rates were to rise by 1 percent? Will the bank earn or lose money?

Dentaltech Inc. projects the following data for the coming year. If the firm follows the residual dividend model and also maintains its target capital structure, what will its dividend payout ratio be?

b. In the country of Hypothetica, we have the following information for the year 2015:

*Consumption totalled $2 billion, but 25% of this total consisted of goods which were initially sold in 2014.

*A total of $250 million worth of new housing stock was sold.

*Labour wage income was $150 million. *Businesses invested $100 million dollars in new capital (i.e. machinery) stock.

*Businesses also bought $200 million dollars worth of company shares on the stock exchange.

*Foreigners with working visas living in foreign-only households bought $100 million worth of locally made goods and services.

*The government spent $500 million building roads.

*Hypothetica is a closed economy, thus they are no exports and imports.

(i) Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Hypothetica’s consumption in 2015

(ii) Calculate and explain how you obtained the figure (i.e. what did you count, and what did you exclude) for Hypothetica’s investment in 2015

(iii) What was Hypothetica’s GDP in 2015 using the expenditure method? Explain your answer

in the fourth quarter of last year, Colditz Company embarked on a major effort to improve productivity. It redesigned products, reengineered manufacturing processes, and offered productivity improvement courses. The effort was completed in the last quarter of the current year. The controller’s office has gathered the following year-end data to assess the results of this effort:

Required

1. Prepare a summary contribution income statement for each of the 2 years, and calculate the change in operating income.

2. Compute the partial operational productivity ratios for each production factor in each year.

3. Compute the partial financial productivity ratios for each production factor in each year.

what is the net present value of a three year $3000 annuity if it currently costs 7200? the discount rate is 5%. A) would you recommend this annuity? briefly explain why or why not. B) How would your answer change if the annuity is paid semiannually $1500 every six months instead? No further calculation required: Briefly explain.

A government wishes to borrow £1 million. It issues a one-year bond at a price of £950,000 at a fixed rate of interest of 5%. Suppose in investors become concerned about a possible default, causing the bond price to fall to £930,000.

1. Calculate the bond yield before and after the fall in the bond price.
2. How will this affect the interest rates that companies and households pay on their debts?
3. What can governments do to prevent a debt default?

Shai Co. is considering a four-year project that will require an initial investment of $12,000. The base-case cash flows for this project are projected to be $12,000 per year. The best-case cash flows are projected to be $20,000 per year, and the worst-case cash flows are projected to be -$1,000 per year. The company’s analysts have estimated that there is a 50% probability that the project will generate the base-case cash flows. The analysts also think that there is a 25% probability of the project generating the best-case cash flows and a 25% probability of the project generating the worst-case cash flows.

What would be the expected net present value (NPV) of this project if the project’s cost of capital is 13%?

$19,976

$18,977

$20,975

$16,980

Points:

Close Explanation

Explanation:

Shai now wants to take into account its ability to abandon the project at the end of year 2 if the project ends up generating the worst-case scenario cash flows. If it decides to abandon the project at the end of year 2, the company will receive a one-time net cash inflow of $3,000 (at the end of year 2). The $3,000 the company receives at the end of year 2 is the difference between the cash the company receives from selling off the project’s assets and the company’s -$1,000 cash outflow from operations. Additionally, if it abandons the project, the company will have no cash flows in years 3 and 4 of the project.

Using the information in the preceding problem, find the expected NPV of this project when taking the abandonment option into account.

$21,085

$23,194

$24,248

$20,031

Points:

Close Explanation

Explanation:

What is the value of the option to abandon the project? selector 1