Q: 32. Robert is saving for his retirement. He plans to put aside $60 per week for the next 40 years. I...
A: The future value is the amount that will be received at the end of a certain period. In simple words...
Q: 3. An investment of 151,155.00 yields P37,238.49 at the end of the 3rd year, P44,774.27 at the end o...
A: Here, Investment Amount is 151,155.00 Yield in third year is P37,238.49 Yield in sixth year is P44,7...
Q: A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a...
A: Risk free rate = 6% Correlation between fund return = 0.14 Expected return on stock fund = 24% Sta...
Q: AlphaGet is currently assessing the value of its securities and have obtained the following informat...
A: Tenor of bond is 10 year Time till maturity is 5 years Coupon rate is 8.5% Face value of bond is php...
Q: A series of cash flows may not always necessarily be an annuity. Cash flows can also be uneven and v...
A: As per the honor code, we’ll answer only one question at a time, we have answered the first question...
Q: opose an investment opportunity is advertising an interest rate of iR per year compounded continuous...
A: In this we need to find the effective interest rate and amount of deposit required today.
Q: A project costs 5,000 today and provides secure income for 400 years from next year, but it is uncer...
A: Initial Investment = 5000 Annual Income = 400 Rate % = 4%
Q: An investor wants to finance a project in Canada with a value of $1.5 million with a 70 percent, 25-...
A: When a bank or financial institution gives mortgage loan then it doesn't give property or home's ent...
Q: COST OF COMMON EQUITY AND WACC Patton Paints Corporation has a target capital structure of 40% debt ...
A: Cost of debt = Pretax cost of debt (1-tax rate) = 12% (1-40%) = 7.20%
Q: How can the financial markets provide liquidity for savers who hold financial instruments but are in...
A: Financial markets A financial market is a place where financial securities like stocks and bonds are...
Q: You are offered two investment options at an interest rate of 1% over 14 years. The first option is ...
A: Interest rate = 1% Calculation of present value under 2nd option Year Cash flow PVF(1%,Year) Pr...
Q: Huang is an investment adviser for high-net-worth clients. Huang’s responsibility is to assist new c...
A: Analysis of the situation:: Huang is an investment adviser for high-net-worth clients. His responsib...
Q: The binomial and Black-Scholes pricing models are the "guide posts" for pricing American and Europea...
A: The binomial and Black-Scholes pricing models are use to solve option pricing problems. Binomial Mod...
Q: EOY 1 3 Cash $8,000 $15,000 $22,000 $29,000 $36,000 Flow What is the uniform annual equivalent if th...
A: Therefore, the uniform annual equivalent is $20,422 (rounded to nearest cent).
Q: What is the amount of money, P, that will generate $40 in interest at a 10% interest rate over 5 yea...
A: Simple Interest Rate Simple interest is based on the principal amount of a loan or the initial depos...
Q: ired: Compute the average rate of return for each investment. If required, round your answer to one ...
A: The Net Present Value (NPV) is a financial analysis technique for assessing the viability of an inve...
Q: 7. AP150,000 loan is to be paid as follows: P 10,000/month Final payment If the annual rate of inter...
A: Loan amount = P 150,000 First 10 monthly payment = P 10000 Annual interest rate = 12% Monthly intere...
Q: What happens if we wish to increase a constraint RHS value beyond the allowable increase/decrease sh...
A: Sensitivity analysis is referred to as the study of uncertainty in the mathematical model output or ...
Q: Suppose the real risk-free rate is 3.00%, the average expected future inflation rate is 6.60%, and a...
A: Pure Expectations Theory refers to the theory which says that the future short term interest rates c...
Q: ΕΟΥ 3 4 Cash Flow $15,000 $22,000 $29,000 $8,000 $36,000 What is the uniform annual equivalent if th...
A: Interest Rate = 12% Year Cash Flow 1 8000.00 2 15000.00 3 22000.00 4 29000.00 5 36000.0...
Q: A loan is offered with monthly payments and a 8.50 percent APR. What's the loan's effective annual r...
A: Effective annual rate is the rate that is actually earned. It can be calculated Effective annual rat...
Q: What is the relationship among the financial statements?
A: Financial Statements: These are records of the activities relating to finance and business. The mos...
Q: A piece of new equipment has been proposed by engineers to increase the productivity of a certain ma...
A: Present Worth Present value is the present worth of any sum of money to be received in the future at...
Q: 04: Find the internal rate of return for the investment, the cash flow shown below using the (I.I.R)...
A: Rate = 10% Initial Investment = 9000 Salvage Value = 3000 Cash Flows: Year Revenue Cost Cash Flow...
Q: A piece of new equipment has been proposed by engineers to increase the productivity of a certain ma...
A: MARR = 20% Cash Flows: Year Cash Flow 1 -25000.00 2 8000.00 3 8000.00 4 8000.00 5 13000...
Q: P = ? 0. $500 $500 $500 $500 $500 $500 $500 $500 $500 $500 Compute Po = ? 1 3 4 5 6 7 8 9 10 11 12 1...
A: Discount rate rate = 10%
Q: CPI last year 189, and CPI this year is 200, The inflation rate then is?
A: Inflation rate = (CPI current year / CPI last year) - 1
Q: 1. XYZ Corporation issued a 5-year bond with a par value of P25,000 and pays a semi-annual coupon of...
A: Nominal Yield: It refers to the rate of coupon of the particular bond. This the rate given by issuer...
Q: How many years (and months) will it take $2 million to grow to $4.00 million with an annual interest...
A: Years (and months) will it take $2 million to grow to $4.00 million with an annual interest rate of ...
Q: 1. A bank deposit of P10, 000 has a real value of P12,136.30 after 3 years. What is its actual amoun...
A: Real value after 3 years = P 12,136.30 Inflation rate = 5% Period = 3 Years
Q: A public school is being renovated for $13.5 million. The building has geothermal heating and coolin...
A: Payback period is the amount of time to recover initial investment. When there is a annual equal cas...
Q: Starting on his 25th birthday, Jason makes 20 semi-annual payments of P15,000 each in a savings acco...
A: Compound interest refers to the interest that is calculated on a deposit or loan on the basis of an ...
Q: Your business is considering the selection of hybrid trucks as an alternative to conventional gasoli...
A: Here,
Q: Explain how the efficient management of assets responds to the achievement of the company's sales. ...
A: We need to calculate total assets turnover ratio to measures assets efficiency. Total assets turnov...
Q: SMC purchased an equipment for P53,000 and paid P1,500 for freight and delivery charges to the job s...
A: Total value of asset (V) = Purchase cost + Freight and delivery cost = P 53000 + P 1500 = P 54500 Li...
Q: Proof of completion of an additional 15 hours of continuing education over and above what is require...
A: License producer can sell insurance of multiple companies and can sell to the client.
Q: T bag Corporation's paid a dividend of 5 at the end of last year. T bag dividends have grown at a co...
A: We need to use constant growth model to calculate expected rate of return/required rate of return P0...
Q: I have purchased a machine worth P1,897,363.00. And it needs maintenance at the end of every 6 month...
A: Whenever repeated payments are made at the end of a specific period it is called an annuity. This re...
Q: 1. (a) “Insurance is a method of reducing risk”. Justify the statement. Briefly discuss the various ...
A: We’ll answer the first question since the exact one wasn’t specified. Please submit a new question s...
Q: Q5. If a firm has sales level of $299,000 with 9% profit margin before taxes and interest, while its...
A: The total assets turnover is given by AT = Sales/(total Assets) AT = 299000/(50000+100000) = 1.99 An...
Q: Assuming that the fiscal health of the Health Company is not optimal, explain how Return on Equity (...
A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...
Q: Your portfolio consists of the following investmentin stock with corresponding beta: P100,000 in a 0...
A: We have the portfolio with different values of stocks and different betas. We need to calculate the ...
Q: Suppose Your Company where you work as Finance Director is Financed by both debt (bonds) and equity ...
A: Data given:: Particulars Nos Amount (Kn) Total Kn Bond 400 1000 400,000 Sha...
Q: Suppose that you make 12 equal annual deposits of Php 2,000 each into a bank account paying 8% inter...
A: Annual deposit (P) = Php 2,000 Annual interest rate (R) = 8% Number of annual deposit (N) = 12
Q: A house and lot is for sale at a monthly payment of P30,000 for 25 years at an interest rate of 3% c...
A: Monthly payment (A) = P 30000 Duration (n) = 25 years = 300 months Interest rate (r) = 3% per annum ...
Q: On January 1, 20x1, Entity A acquires Entity B in a business combination. The financial statements o...
A: Consolidated assets is referred to as all the assets, which owns directly through the corporation or...
Q: What is the balance on a credit card starting in month #5? You only pay the minimum payment each mon...
A: Opening Balance = $943.85 APR = 26.2% Minimum Payment = 5.5% of ending balance
Q: Reflection paper about this principle Principle #2: Expect Volatility (unexpected changes) and P...
A: Expected volatility is referred to as the measure of an amount through the financial variable like -...
Q: Q3:- An investor wants to establish a cement plant, so if the data for the plant is as below, and th...
A: Investment = $309,000,000 Production cost = $27 Annual costs of depreciation = $7,725,000 Annual ope...
Q: Karen needs $1,000,000 to retire in five years. There is an annual zero-coupon bond that will mature...
A: FV = $1,000,000 n = 8 years YTM = 5.5%
Step by step
Solved in 2 steps with 2 images
- ( Appendix 6B) Refer to the information for Morgan Inc. above. If Morgan uses a periodic inventory system, what is the cost of goods sold under FIFO at April 30? a. $32,800 b. $38,400 c. $63,600 d. $69,200( Appendix 6B) Inventory Costing Methods: Periodic System Harrington Company had the following data for inventory during a recent year: Assume that Harrington uses a periodic inventory accounting system. Required: 1. Using the FIFO, LIFO, and average cost methods, compute the ending inventory and cost of goods sold. ( Note: Use four decimal places for per-unit calculations and round all other numbers to the nearest dollar.) 2. CONCEPTUAL CONNECTION Which method will produce the most realistic amount for income? For inventory? 3. CONCEPTUAL CONNECTION Which method will produce the lowest amount paid for taxes?Calculate the cost of goods sold dollar value for A74 Company for the sale on March 11, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).
- Sales-related transactions The- following selected transactions were completed by Affordable Supplies Co., which sells supplies primarily to wholesalers and occasionally to retail customers. Jan. 6. Sold merchandise on account, $14,000. terms FOB shipping point, n/com. The cost of merchandise sold was $8,400. 8. Sold merchandise on account. $20,000. terms FOB destination. 1/10. n/30. The cost of merchandise sold was $14,000. 16. Sold merchandise on account, $19-500. terms FOB shipping point, n/30. The cost of merchandise sold was $11,700. 18. Received check for amount due for sale on January 8. 19. Issued credit memorandum for $4,500 for merchandise returned from sale on January 16. The cost of the merchandise returned was $2,700. 26. Received check for amount due for sale on January 16 less credit memorandum of January 19. 31. Paid Cashell Delivery Service $3,000 for merchandise delivered during January to customers under shipping terms of FOB destination. 31. Received cheek for amount due for sale of January 6. Instructions Illustrate the effects of each of the preceding transactions on the accounts and financial statements of Affordable Supplies Co. Identify each transaction by date.Appendix 2 Cost of goods sold Identify the errors in the: following schedule of the cost of goods sold for the year ended May 31, 20Y5: Cost of goods sold: Inventory, May 31, 20Y5 105,000 Cost of merchandise purchased: Purchases Purchases returns and allowances Purchases discounts Freight in Total cost of merchandise purchased 1,110,000 55,000 30,000 (22,000) 1,173,000 Inventory available for sale 1,278,000 Inventory, June 1, 20Y4 (91.300) Cost of goods sold before estimated returns S 1,186,700 Estimated returns of this years sales 43,300 Cost of goods sold 1,230,000Costco, Walmart, Nordstrom: Inventory turnover and number of days sales in inventory The general merchandise retail industry has a number of segments represented by the following companies: Company Name Merchandise Concept Costco Wholesale Corporation Membership warehouse Walmart Stores, Inc. Discount general merchandise Nordstrom, Inc. Fashion department store For a recent year, the following cost of goods sold and beginning and ending inventories are provided from corporate annual reports (in millions) for these three companies: Costco Walmart Nordstrom Cost of goods sold 98,458 365,086 8,406 Inventories: Beginning of year 7,894 44,858 1,531 End of year 8,456 45,141 1,733 A. Determine the inventory turnover ratio for all three companies. (Round all calculations to one decimal place.) B. Determine the number of days sales in inventory for all three companies. (Use 365 days and round all calculations to one decimal place.) C. Interpret these results based on each companys merchandising concept.
- Inventory by three cost flow methods Details regarding the inventory of appliances on January 1, 20Y7, purchases invoices during the year, and the inventory count on December 31. 2O’7. of Amsterdam Appliances are summarized as follows: Instructions Discuss which method (FIFO or LIFO) would be preferred for income tax purposes in periods of (a) rising prices and (b) declining prices.Appendix 1 Adjusting entry for gross method The following data were extracted from the accounting records of Sacajawea Mercantile Co. for the year ended June 30, 20Y4: a. Journalize the June 30, 20Y4, adjusting entry for estimated sales discounts. b. How would sales and accounts receivable be reported on the financial statements for the year ending June 30, 20Y4?Beginning inventory, purchases, and sales for Item ProX2 are as follows: Assuming a perpetual inventory system and using the first-in, first-out (FIFO) method, determine (a) the cost of merchandise sold on January 25 and (b) the inventory on January 31.
- Calculate the cost of goods sold dollar value for B74 Company for the sale on November 20, considering the following transactions under three different cost allocation methods and using perpetual inventory updating. Provide calculations for (a) first-in, first-out (FIFO); (b) last-in, first-out (LIFO); and (c) weighted average (AVG).( Appendix 6B) Inventory Costing Methods Jet Black Products uses a periodic inventory system. For 2018 and 2019, Jet Black has the following data: All purchases and sales are for cash. Required: 1. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using FIFO. 2. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using LIFO. 3. Compute cost of goods sold, the cost of ending inventory, and gross margin for each year using the average cost method. ( Note: Use four decimal places for per unit calculations and round all other numbers to the nearest dollar.) 4. CONCEPTUAL CONNECTION Which method would result in the lowest amount paid for taxes? 5. CONCEPTUAL CONNECTION Which method produces the most realistic amount for income? For inventory? Explain your answer. 6. CONCEPTUAL CONNECTION What is the effect of purchases made later in the year on the gross margin when LIFO is employed? When FIFO is employed? Be sure to explain why any differences occur. 7. CONCEPTUAL CONNECTION If you worked Problem 6-68A, compare your answers. What are the differences? Be sure to explain why any differences occurred.Palisade Creek Co. is a merchandising business that uses the perpetual inventory system. The account balances for Palisade Creek Co. as of May 1, 2016 (unless otherwise indicated), are as follows: During May, the last month of the fiscal year, the following transactions were completed: May 1. Paid rent for May, 5,000. 3. Purchased merchandise on account from Martin Co., terms 2/10, n/30, FOB shipping point, 36,000. 4. Paid freight on purchase of May 3, 600. 6. Sold merchandise on account to Korman Co., terms 2/10, n/30, FOB shipping point, 68,500. The cost of the merchandise sold was 41,000. 7. Received 22,300 cash from Halstad Co. on account. 10. Sold merchandise for cash, 54,000. The cost of the merchandise sold was 32,000. 13. Paid for merchandise purchased on May 3. 15. Paid advertising expense for last half of May, 11,000. 16. Received cash from sale of May 6. 19. Purchased merchandise for cash, 18,700. 19. Paid 33,450 to Buttons Co. on account. 20. Paid Korman Co. a cash refund of 13,230 for returned merchandise from sale of May 6. The invoice amount of the returned merchandise was 13,500 and the cost of the returned merchandise was 8,000. Record the following transactions on Page 21 of the journal: 20. Sold merchandise on account to Crescent Co., terms 1/10, n/30, FOB shipping point, 110,000. The cost of the merchandise sold was 70,000. 21. For the convenience of Crescent Co., paid freight on sale of May 20, 2,300. 21. Received 42,900 cash from Gee Co. on account. May 21. Purchased merchandise on account from Osterman Co., terms 1/10, n/30, FOB destination, 88,000. 24. Returned of damaged merchandise purchased on May 21, receiving a credit memo from the seller for 5,000. 26. Refunded cash on sales made for cash, 7,500. The cost of the merchandise returned was 4,800. 28. Paid sales salaries of 56,000 and office salaries of 29, 000. 29. Purchased store supplies for cash, 2,400. 30. Sold merchandise on account to Turner Co., terms 2/10, n/30, FOB shipping point, 78,750. The cost of the merchandise sold was 47,000. 30. Received cash from sale of May 20 plus freight paid on May 21. 31. Paid for purchase of May 21, less return of May 24. Instructions 1. Enter the balances of each of the accounts in the appropriate balance column of a four-column account. Write Balance in the item section, and place a check mark () in the Posting Reference column. Journalize the transactions for July, starting on Page 20 of the journal. 2. Post the journal to the general ledger, extending the month-end balances to the appropriate balance columns after all posting is completed. In this problem, you are not required to update or post to the accounts receivable and accounts payable subsidiary ledgers. 3. Prepare an unadjusted trial balance. 4. At the end of May, the following adjustment data were assembled. Analyze and use these data to complete (5) and (6). f. The adjustment for customer returns and allowances is 60,000 for sales and 35,000 for cost of merchandise sold. 5. (Optional) Enter the unadjusted trial balance on a IO-column end-of-period spreadsheet (work sheet), and complete the spreadsheet. 6. Journalize and post the adjusting entries. Record the adjusting entries on Page 22 of the journal. 7. Prepare an adjusted trial balance. 8. Prepare an income statement, a statement of owners equity, and a balance sheet. 9. Prepare and post the closing entries. Record the closing entries on Page 23 of the journal. Indicate closed accounts by inserting a line in both the Balance columns opposite the closing entry. Insert the new balance in the owners capital account. 10. Prepare a post-closing trial balance.