National Orthopedics Co. issued 8% bonds, dated January 1, with
a face amount of $600,000 on January 1, 2021. The bonds mature on
December 31, 2024 (4 years). For bonds of similar risk and maturity
the market yield was 12%. Interest is paid semiannually on June 30
and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of
$1 and PVAD of $1) (Use appropriate factor(s) from the
tables provided.)
Required:
1. Determine the price of the bonds at January 1,
2021.
2. Prepare the journal entry to record their
issuance by National on January 1, 2021.
3. Prepare an amortization schedule that
determines interest at the effective rate each period.
4. Prepare the journal entry to record interest on
June 30, 2021.
5. Prepare the appropriate journal entries at
maturity on December 31, 2024.
In: Accounting
National Orthopedics Co. issued 8% bonds, dated January 1, with
a face amount of $600,000 on January 1, 2018. The bonds mature on
December 31, 2021 (4 years). For bonds of similar risk and maturity
the market yield was 10%. Interest is paid semiannually on June 30
and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of
$1 and PVAD of $1) (Use appropriate factor(s) from the
tables provided.)
Required:
1. Determine the price of the bonds at January 1,
2018.
2. Prepare the journal entry to record their
issuance by National on January 1, 2018.
3. Prepare an amortization schedule that
determines interest at the effective rate each period.
4. Prepare the journal entry to record interest on
June 30, 2018.
5. Prepare the appropriate journal entries at
maturity on December 31, 2021.
In: Accounting
The Freeman Manufacturing Company is considering a new
investment. Financial projections for the investment are tabulated
below. The corporate tax rate is 34 percent. Assume all sales
revenue is received in cash, all operating costs and income taxes
are paid in cash, and all cash flows occur at the end of the year.
All net working capital is recovered at the end of the
project.
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | ||||||
| Investment | $ | 41,000 | ||||||||
| Sales revenue | $ | 21,000 | $ | 21,500 | $ | 22,000 | $ | 19,000 | ||
| Operating costs | 4,400 | 4,500 | 4,600 | 3,800 | ||||||
| Depreciation | 10,250 | 10,250 | 10,250 | 10,250 | ||||||
| Net working capital spending | 470 | 520 | 570 | 470 | ? | |||||
a. Compute the incremental net income of the
investment for each year. (Do not round intermediate
calculations.)
| Year 1 | Year 2 | Year 3 | Year 4 | ||
| Net income | $ | $ | $ | $ | |
b. Compute the incremental cash flows of the
investment for each year. (Do not round intermediate
calculations. A negative answer
should be indicated by a minus sign.)
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Cash flow | $ | $ | $ | $ | $ |
c. Suppose the appropriate discount rate is 13
percent. What is the NPV of the project? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
NPV $
In: Finance
One particular morning, the length of time spent in the
examination rooms is recorded for each patient seen by each
physician at an orthopedic clinic.
| Time in Examination Rooms (minutes) | |||
| Physician 1 | Physician 2 | Physician 3 | Physician 4 |
| 33 | 31 | 19 | 27 |
| 23 | 32 | 29 | 31 |
| 27 | 33 | 30 | 31 |
| 30 | 32 | 26 | 27 |
| 25 | 43 | 29 | 32 |
| 35 | 32 | 26 | 31 |
| 20 | 24 | 41 | |
| 31 | |||
Fill in the missing data. (Round your p-value
to 4 decimal places, mean values to 1 decimal place, and other
answers to 2 decimal places.)
| Treatment | Mean | n | Std. Dev |
| Physician 1 | |||
| Physician 2 | |||
| Physician 3 | |||
| Physician 4 | |||
| Total | |||
| One-Factor ANOVA | |||||
| Source | SS | df | MS | F | p-value |
| Treatment | |||||
| Error | |||||
| Total | |||||
(a) Based on the given hypotheses, choose the correct
option.
H0: μ1 = μ2
= μ3 = μ4
H1: Not all the means are equal
α = 0.05
Reject the null hypothesis if F > 3.01
Reject the null hypothesis if F < 3.01
(b) Calculate the F for one factor.
(Round your answer to 2 decimal places.)
F for one factor is
(c) On the basis of the above findings, we reject the null
hypothesis. Is the statement true?
Yes
No
In: Statistics and Probability
An automotive sales manager wishes to examine the relationship between age (years) and sales price ($) for a certain model of used automobile. The accompanying data table contains data for a sample of this model of automobile that were listed for sale at a car shopping website. Perform a square-root transformation of the dependent variable (price). Using the transformed dependent variable and the age as the independent variable, perform a regression analysis.
| Age | Price ($) |
| 13 | 3501 |
| 13 | 5378 |
| 13 | 3373 |
| 12 | 4954 |
| 12 | 6506 |
| 12 | 5948 |
| 11 | 5463 |
| 11 | 6286 |
| 11 | 6874 |
| 10 | 7631 |
| 10 | 6411 |
| 10 | 6203 |
| 9 | 6248 |
| 9 | 8010 |
| 9 | 6804 |
| 8 | 7456 |
| 8 | 8518 |
| 8 | 6930 |
| 7 | 7525 |
| 7 | 8937 |
| 7 | 8800 |
| 6 | 8076 |
| 6 | 9707 |
| 6 | 8903 |
| 5 | 11562 |
| 5 | 9428 |
| 5 | 9910 |
| 4 | 11000 |
| 4 | 12924 |
| 4 | 12074 |
| 3 | 11980 |
| 3 | 13526 |
| 3 | 12492 |
| 2 | 14465 |
| 2 | 13833 |
| 2 | 12910 |
| 1 | 18955 |
| 1 | 15724 |
| 1 | 17571 |
a. State the regression equation. (please show how to find this in excel, when I have gone into excel-data-regression-insert y and x values, I am not getting the right variables. Is there another step?
Determine how to find the test statistic and adjusted r^2
In: Statistics and Probability
The Freeman Manufacturing Company is considering a new
investment. Financial projections for the investment are tabulated
below. The corporate tax rate is 40 percent. Assume all sales
revenue is received in cash, all operating costs and income taxes
are paid in cash, and all cash flows occur at the end of the year.
All net working capital is recovered at the end of the
project.
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | ||||||
| Investment | $ | 26,000 | ||||||||
| Sales revenue | $ | 13,500 | $ | 14,000 | $ | 14,500 | $ | 11,500 | ||
| Operating costs | 2,900 | 3,000 | 3,100 | 2,300 | ||||||
| Depreciation | 6,500 | 6,500 | 6,500 | 6,500 | ||||||
| Net working capital spending | 320 | 370 | 420 | 320 | ? | |||||
a. Compute the incremental net income of the
investment for each year. (Do not round intermediate
calculations.)
| Year 1 | Year 2 | Year 3 | Year 4 | ||
| Net income | $ | $ | $ | $ | |
b. Compute the incremental cash flows of the
investment for each year. (Do not round intermediate
calculations. A negative answer
should be indicated by a minus sign.)
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Cash flow | $ | $ | $ | $ | $ |
c. Suppose the appropriate discount rate is 11
percent. What is the NPV of the project? (Do not round
intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
NPV $
In: Accounting
|
The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 40 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. |
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | ||||||
| Investment | $ | 37,000 | ||||||||
| Sales revenue | $ | 19,000 | $ | 19,500 | $ | 20,000 | $ | 17,000 | ||
| Operating costs | 4,000 | 4,100 | 4,200 | 3,400 | ||||||
| Depreciation | 9,250 | 9,250 | 9,250 | 9,250 | ||||||
| Net working capital spending | 430 | 480 | 530 | 430 | ? | |||||
| a. |
Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) |
| Year 1 | Year 2 | Year 3 | Year 4 | ||
| Net income | $ | $ | $ | $ | |
| b. |
Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign.) |
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Cash flow | $ | $ | $ | $ | $ |
| c. |
Suppose the appropriate discount rate is 12 percent. What is the NPV of the project? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) |
| NPV | $ |
In: Finance
1.An example of a firm’s investment (or capital budgeting) decision would include:
Issue common stock
A.Repurchase common stock
B.Increase the common stock dividend
C.Increase inventories ahead of holiday season
D.Agree to bank loan collateralized by inventories
2.Which of the following statements best distinguishes the difference between real assets and financial assets?
A.Financial assets are always purchased; real assets are always sold.
B.Real assets are tangible; financial assets are not.
C.Financial assets are tangible, real assets are not.
D.Real assets have less value than financial assets.
E.Financial assets represent claims to the cash flows that are generated by real assets.
3.The typical business organization for large companies is the C corporation. Which of the following are advantages in separating ownership and management in large corporations?
A.1 only
B.1 and 2 only
C.2 and 3 only
D.2 and 4 only
E.3 and 4 only
4.A board of directors is elected as a representative of the corporation’s:
A.top management.
B.shareholders.
C.employees
D.customers
E.debholders
In: Finance
|
The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 35 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. |
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | ||||||
| Investment | $ | 44,000 | ||||||||
| Sales revenue | $ | 22,500 | $ | 23,000 | $ | 23,500 | $ | 20,500 | ||
| Operating costs | 4,700 | 4,800 | 4,900 | 4,100 | ||||||
| Depreciation | 11,000 | 11,000 | 11,000 | 11,000 | ||||||
| Net working capital spending | 500 | 550 | 600 | 500 | ? | |||||
| a. |
Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) |
| Year 1 | Year 2 | Year 3 | Year 4 | ||
| Net income | $ | $ | $ | $ | |
| b. |
Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) |
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Cash flow | $ | $ | $ | $ | $ |
| c. |
Suppose the appropriate discount rate is 13 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| NPV | $ |
In: Finance
|
The Best Manufacturing Company is considering a new investment. Financial projections for the investment are tabulated here. The corporate tax rate is 34 percent. Assume all sales revenue is received in cash, all operating costs and income taxes are paid in cash, and all cash flows occur at the end of the year. All net working capital is recovered at the end of the project. |
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | ||||||
| Investment | $ | 28,000 | ||||||||
| Sales revenue | $ | 14,500 | $ | 15,000 | $ | 15,500 | $ | 12,500 | ||
| Operating costs | 3,100 | 3,200 | 3,300 | 2,500 | ||||||
| Depreciation | 7,000 | 7,000 | 7,000 | 7,000 | ||||||
| Net working capital spending | 340 | 390 | 440 | 340 | ? | |||||
| a. |
Compute the incremental net income of the investment for each year. (Do not round intermediate calculations.) |
| Year 1 | Year 2 | Year 3 | Year 4 | ||
| Net income | $ | $ | $ | $ | |
| b. |
Compute the incremental cash flows of the investment for each year. (Do not round intermediate calculations. A negative answer should be indicated by a minus sign.) |
| Year 0 | Year 1 | Year 2 | Year 3 | Year 4 | |
| Cash flow | $ | $ | $ | $ | $ |
| c. |
Suppose the appropriate discount rate is 12 percent. What is the NPV of the project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) |
| NPV | $ |
In: Finance