On January 1, 2018, Bradley Recreational Products issued $125,000, 10%, four-year bonds. Interest is paid semiannually on June 30 and December 31. The bonds were issued at $ 117,237 to yield an annual return of 12%. ( use FV of 1$, PV of 1$ etc…..)

Required:

1. Prepare an amortization schedule that determines interest at the effective interest rate. (Enter your answers in whole dollars.)

Payment Number Cash Payment Effective Interes t Increase in Balance Carrying Value

1

2

3

4

5

6

7

8

Totals

2. Prepare an amortization schedule by the straight-line method. Payment Number Cash Payment Recorded Interest Increase in Balance Carrying Value 1 2 3 4 5 6 7 8 Totals 3. Prepare the journal entries to record interest expense on June 30, 2020, by each of the two approaches. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in whole dollars.)

a. Record interest expense on June 30, 2020, by the effective interest method.

b. Record interest expense on June 30, 2020, by the straight-line method.

4. Assuming the market rate is still 12%, what price would a second investor pay the first investor on June 30, 2020, for $15,000 of the bonds? (Round your intermediate calculation and final answer to whole dollars.)

Price of the bonds …..?

1. In a typical boom, consumption _____. Investment moves in the same direction but proportionately _____.

Question 1 options:

rise, more

rises, less

falls, more

falls, less

Question 2 (1 point)

2. Which of the following changed would contribute to a rise in the index of leading indicators, suggesting that a boom is more likely?

Question 2 options:

a decline in stock prices

a decline in building permits

a decline in the initial claims for unemployment insurance

a decline in the slope of the yield curve

Question 3 (1 point)

3. If a technological advance at credit card companies makes stores start accepting more credit payments, the demand for money will _____. If the money supply is held constant, the aggregate demand curve will shift to the _____.

Question 3 options:

increase, right

increase, left

decrease, right

decrease, left

Question 4 (1 point)

4. An expansion in aggregate demand increases _____ in the short run. In the long run, however, it increases only the ____.

Question 4 options:

real GDP, price level

real GDP, velocity of money

unemployment rate, price level

unemployment rate, velocity of money

Question 5 (1 point)

6. If the Fed responds to a positive supply shock by reducing the money supply, it will

Question 5 options:

stabilize aggregate demand at its previous level

make the resulting recession deeper than it otherwise would have been

keep the economy closer to its natural levels of output and employment

allow the price level to return to the level that prevailed before the shock

Problem 12-6A Liquidation of a partnership LO P5

Kendra, Cogley, and Mei share income and loss in a 3:2:1 ratio. The partners have decided to liquidate their partnership. On the day of liquidation their balance sheet appears as follows.
  

Required:
For each of the following scenarios, complete the schedule allocating the gain or loss on the sale of inventory. Prepare journal entries to record the below transactions. (Do not round intermediate calculations. Amounts to be deducted or Losses should be entered with a minus sign. Round your final answers to the nearest whole dollar.)

(1) Inventory is sold for $621,000.
(2) Inventory is sold for $468,000.
(3) Inventory is sold for $329,400 and any partners with capital deficits pay in the amount of their deficits.
(4) Inventory is sold for $240,600 and the partners have no assets other than those invested in the partnership.

Complete this question by entering your answers in the tabs below.

• Required 1 Inventory
• Required 1 GJ
• Required 2 Inventory
• Required 2 GJ
• Required 3 Inventory
• Required 3 GJ
• Required 4 Inventory
• Required 4 GJ

Complete the schedule allocating the gain or loss on the sale of inventory is $329,400 and any partners with capital deficits pay in the amount of their deficits.

Prepare journal entries to record the inventory is sold for $329,400 and any partners with capital deficits pay in the amount of their deficits.

Complete the schedule allocating the gain or loss on the sale of inventory $240,600 and the partners have no assets other than those invested in the partnership.

Prepare journal entries to record the inventory is sold for $240,600 and the partners have no assets other than those invested in the partnership.

Exercise 11-1 Payback Method [LO11-1]

12. Theoretically, what is the expected result from the parental cross of a grey mouse and an albino mouse, and why does the expected result not match the result stated in the information given above?

a)Theoretically, 100% if the mice should have grey coats so all 38 offspring should have grey coats. There was an experimental error that can account for the deviation.

b)Theoretically, there should be a 3:1 ratio of grey mice to albino mice, or 29 grey coat mice and 9 albino. With more litters, the actual results would match the expected results more closely.

c)Theoretically, there should be a 1:1 ratio of grey mice to albino mice, or 19 grey coat mice and 19 albino mice. There was an experimental error that can account for the deviation

d)Theoretically, there should be a 3:1 ratio of grey mice to albino mice, or 28.5 grey coat mice and 9.5 albino mice. There was an experimental error that can account for the deviation.

26. A male and female have three children, all girls. The couple is expecting their fourth child. The probability their fourth child will be female is __i__, and the probability the couple will have four female children is __ii__.

The row that indicates the correct probabilities is

a)

b)

c)

d)

Use the following information to answer question 42.

42. Which of the following parental crosses explains how two brown-eyed parents can produce a blue-eyed chilf?

a) AaBB x AaBb

b) AaBB x AABb

c) Aabb x aaBB

d)AABB x AaBb

37. The coat of dogs is an example of an epistatic interaction. The common alleles are black (B) and brown (b). There is a separate gene on a separate chromosome that influences coat color; it prevents color information and causes a white coat.

L=prevents color formation and causes a white coat

l=allows color formation to occur

If the P1 generation is a white dog (LlBb) crossed with a black dog (IIBb), then which of the following represents the correct phenotypes of the F1 offsprings?

a)

b)

c)

d)

Do a two-sample test for equality of means assuming unequal variances. Calculate the p-value using Excel.

(a-1) Comparison of GPA for randomly chosen college juniors and seniors:

x¯1x¯1 = 4, s₁ = .20, n₁ = 15, x¯2x¯2 = 4.25, s₂ = .30, n₂ = 15, α = .025, left-tailed test.
(Negative values should be indicated by a minus sign. Round down your d.f. answer to the nearest whole number and other answers to 4 decimal places. Do not use "quick" rules for degrees of freedom.)

(a-2) Based on the above data choose the correct decision.
  

• Do not reject the null hypothesis

• Reject the null hypothesis

(b-1) Comparison of average commute miles for randomly chosen students at two community colleges:

x¯1x¯1 = 17, s₁ = 5, n₁ = 22, x¯2x¯2 = 21, s₂ = 7, n₂ = 19, α = .05, two-tailed test.
(Negative values should be indicated by a minus sign. Round down your d.f. answer to the nearest whole number and other answers to 4 decimal places. Do not use "quick" rules for degrees of freedom.)
  

(b-2) Based on the above data choose the correct decision.
  

• Do not reject the null hypothesis

• Reject the null hypothesis

(c-1) Comparison of credits at time of graduation for randomly chosen accounting and economics students:

x¯1x¯1 = 141, s₁ = 2.8, n₁ = 12, x¯2x¯2 = 138, s₂ = 2.7, n₂ = 17, α = .05, right-tailed test.
(Negative values should be indicated by a minus sign. Round down your d.f. answer to the nearest whole number and other answers to 4 decimal places. Do not use "quick" rules for degrees of freedom.)

(c-2) Based on the above data choose the correct decision.
  

• Do not reject the null hypothesis

• Reject the null hypothesis

DATA SHEET

CALCULATIONS AND RESULTS

1. number of moles of KHP: n = mass KHP x (1 / 204 g/mol)

n ₁   = ______________        n₂   =_____________        n₃   =___________________

2. number of moles of NaOH = number of moles of KHP

n ₁   = __________________        n₂ =___________________       n₃   =______________________

3. Volume of NaOH used in each titration = final volume of NaOH - initial volume of NaOH

V ₁ =   _________________        V₂  =___________________        V₃   =_______________________

4. Molarity of NaOH solution = n/V

M ₁ =   _________________        M₂ =___________________       M₃   =______________________

2. Average molarity of NaOH:

M = (M₁ + M₂ + M₃) / 3 = ________________________________________

Let’s revisit the Fibonacci sequence, this time without an array. Recall that the sequence is defined by the following recurrence relation: F0 = 0 F1 = 1 Fk = Fk-1 + Fk-2 So, the sequence looks like: 0, 1, 1, 2, 3, 5, 8, 13, 21, … Write a program fib.c consisting only of a main() function that prompts the user for the last Fibonacci number n to print, and then prints them from F0 to Fn. (No file input needed.) For instance, if the user enters 4, the output should be: F0: 0 F1: 1 F2: 1 F3: 2 F4: 3 Again, no arrays or pointers. For full credit use no more than five integer variables (and no other variables). You may assume that n > 1.

Union Street Records is considering a new capital structure. The CFO has prepared a list of options:

The company currently has a debt-to-capital ratio of 0.75 (option 4) and an equity beta of 1.7. The tax rate is 34%.

The risk-free rate is 2% and the expected equity market risk premium (MRP) is 6%.

unlevered beta: 0.57, levered beta for option 2 0.696

Part 3: Find the cost of equity for each option. What is the cost of equity for option 2 (debt-to-capital ratio of 0.25)?

Part 4: Find the WACC for each option. What is the WACC for option 3 (debt-to-capital ratio of 0.5)?

Part 5: What is the WACC at the optimal capital structure (note: it is one of the four values found in part 4)?