Scenario: The appropriation to the state library system (fiscal year starts July 1) for fiscal 2018 was $15 million. On December 31, 2017, its budget reports showed expenditures of $7.5 million and encumbrances outstanding of $500,000. Quarterly allotments were as follows: Q1: $3.75 million; Q2: $4.5 million; Q3: $3.75 million; and Q4: $3 million. What was the status of system operations at that point? System operations were under plan by $250,000. System operations were under plan by $750,000. System operations were over the plan by $250,000. System operations were consistent with the plan; half the year had elapsed and half the money was spent.
Q: Wax Engineering Inc. (WEI) has the following capital structure, which is considered to be optimal:…
A: before tax Return on Bond = 10% Bond risk premium = 4%
Q: You wish to deposit an amount now that will accumulate to $100,000 in 10 years. How much less would…
A: Future value = fv = $100,000 Time = t = 10 years Interest rate = r = 8%
Q: Suppose you are evaluating a project with the expected future cash inflows shown in the following…
A: The term "payback period" refers to the amount of years that must pass before the initial monetary…
Q: a) The cost of a portfolio consisting of a long position in a call option with strike price 50 and a…
A: Since multiple questions are posted, the solution for the first question is given below. A call…
Q: If he could buy a TV 40 years ago for $300, what would a comparable one cost today if the consumer…
A: Present value is the estimation of the current value of future cash value which is likely to be…
Q: energy sources become more reliable. Required: For each of the following risks for Goldie PLC,…
A: The risk of a fall in coal prices due to the increasing reliability of renewable energy sources…
Q: 1. How do you think financial ratios differ across different industries? Compare two industries of…
A: Financial ratios are key performance indicators that help investors, analysts, and managers evaluate…
Q: Only
A: To find the crossover point, we need to calculate the point at which the net present value (NPV) of…
Q: K- Decision analysis. After careful testing and analysis, an oil company is considering drilling in…
A: Expected return is that amount which is earned by investor from the project. It is not the fixed…
Q: wrong
A: To calculate the missing information, we can use the formulas for current yield and price-earnings…
Q: Sales Depreciation EBIT Tax Rate, T Net Working Capital Net Property and Equipment Long-Term Debt…
A: Value of company can be calculated as the present value of free cash flow based on the WACC of the…
Q: 1/Which option would you choose for a budget of 100,000 Option 1- project A with a capital cost of…
A: This pertains to capital budgeting. We use different capital budgeting tools like NPV, IRR, payback,…
Q: A holder of a 90-day bill with 40 days left to maturity and a face value of $ 100, 000 chooses to…
A: Time to maturity = 40days Face Value = $100,000 Yielding = 1.75% Days = 365
Q: Bond Evaluation Part B - Sensitivity to Interest Rate *Calculate the market prices under each…
A: As it offers a single rate that represents the bond's anticipated total return over its entire life,…
Q: Fleetwood Mac (FM) uses only debt and equity in its capital structure. The value of FM's debt is…
A: Weighted Average Cost of Capital (WACC) is the weighted average cost of various sources of finance…
Q: Consider two mutually exclusive projects with year-end cashflows as shown. At a MARR of 8%, which…
A: IRR is internal rate of return and is the break even rate of return at which present value of cash…
Q: Fama's Llamas has a WACC of 10.3 percent. The company's cost of equity is 14 percent, and its pretax…
A: WACC is the weighted average cost of capital in which is total of weighted cost of individual source…
Q: Give typing answer with explanation and conclusion You entered into a plain vanilla swap a while…
A: To calculate the value of the swap, we need to discount the expected future cash flows of the swap…
Q: 11. KP Company purchased equipment costing $10,000 and decided to finance the purchase. KP agreed to…
A: Annual installment is that amount which is paid by the borrower to lendor for a fixed period of time…
Q: When justifying a budget request (in narrative form), which of the following should be included in…
A: A budget request is a proposal submitted by an individual, department, or organization to secure…
Q: -1 2 3 4 5 12 10 14 13 12 it at close of day 2. it at dose of day 3. ulate a Dow Jones Industria t…
A: DOW JONES INDUSTRIAL AVERAGE INDEX DAY1 Stock P1 A 12 B 23 C…
Q: A loan of $105,501.20 is to be amortized over a 10-year term at 6% interest compounded monthly with…
A: When the lender lends a loan to the borrower, he charges a rate of interest on the borrowed amount.…
Q: Carefully draw the payoff diagram of a portfolio consisting of a long position in two call options…
A: Option strategies are trading techniques that involve buying and/or selling options in order to…
Q: Turner buys a new car and finances it with a loan of 11,000. He will make n monthly payments of 330…
A: First, we need to determine the loan balance after the 13th payment. Using this loan balance, we can…
Q: You purchase a plot of land worth $54,000 to create a community garden. To do so, you secure a…
A: Here, Particulars Values Purchase price of land $54,000 Time period (in years) 10.00…
Q: Suppose there is a commodity in which the expected future spot price is $60. To induce investors to…
A: Investors and traders can also utilise futures contracts to make predictions about the future price…
Q: 10. You've identified a "pure play" firm in the knife industry that you think has a similar business…
A: You need Q - 11 to be solved. Unfortunately solution of Q - 10 will be required. In a way you are…
Q: An investment offers the following: a series of $1000 annual payments, starting one year from now,…
A: To find the present value of the investment , we have to discount each of the 12 annual payments…
Q: Your US-based firm is evaluating a project in France with cash flows in Euros. Which of the…
A: The risk free rate at which the investors these are use as a benchmarking order to determine the…
Q: 4 The management of Ballard MicroBrew is considering the purchase of an automated bottling machine…
A: According to bartleby guidelines, if question involves multiple subparts, then 1st sub 3 parts…
Q: Shaylee Corporation has $2.00 million to invest in new projects. The company's managers have…
A: Profitability index = Present value of cash inflows ÷ Initial investment. Project with highest…
Q: QUESTION 2 • The following two investment options are viewed under an annual effective interest rate…
A: To find the value of K, we need to equate the present value of both investments and solve for K.
Q: == Reingaart Systems is expected to pay a $3.4 dividend at year end (D1 = $3.4), the dividend is…
A: WACC is also known as weighted average Cost of Capital. It includes the cost of Equity , Cost of…
Q: Hornberger, Inc. recently paid a dividend of $2.00 per share. The next dividend is expected to be…
A: Last dividend paid, and the expected dividend next year are known. ROE is known. The retention…
Q: Mr. Z makes an initial investment of $5,000 for three years. Find the value of the investment after…
A: Present value = pv = $5000 compound = monthly = 12 Time = t = 3 * 12 = 36 Interest rate = r = (1 +…
Q: SET Corporation is experiencing a period of rapid growth. Earnings and dividends are expected to…
A: To calculate the dividend at year 4, we need to first calculate the dividends for the next 3 years…
Q: A 14-year maturity convertible bond with a face value of $1,000 and a 8% coupon on a company with a…
A: Given a certain rate of return, present value (PV) is what is now the value of a future financial…
Q: a) An investor wants to benefit from META price drops but does not want to lose more than $30 on the…
A: A call option gives the right but not the obligation to buy at the strike price. The formula to…
Q: Sheridan Industries has 8 percent coupon bonds outstanding. These bonds have a market price of…
A: Compound = semiannually = 2 Coupon rate = 8 / 2 = 4% Price of bond = pv = $990.67 Time = nper = 6 *…
Q: 11-1. (Calculating NPV) (Related to Checkpoint 11.1 on page 367) Midland Metal Ltd. is considering…
A: NPV calculates the present value of cash inflows minus the present value of cash outflows. The…
Q: A project that will last for 10 years is expected to have equal annual cash flows of $98,500. If the…
A: An annuity's present value is a method of capital budgeting used for calculating the asset's current…
Q: The great advantage of the IRR technique over the NPV technique is that you don't need to calculate…
A: There are different discounting methods that can be used to evaluate projects. One of the most…
Q: Should you refinance your mortgage? If you have an adjustable rate mortgage and plan on keeping your…
A: A mortgage refers to a loan that has been taken out to purchase real estate. The real estate being…
Q: Marian Plunket owns her own business and is considering an investment. If she undertakes the…
A: NPV refers to the net present value. It is an important capital budgeting tool.
Q: What is the current value of a bond with a YTM of 6%, a par value of $1000, 12.5 years remaining to…
A: Bond Price is that which is calculated with the help of future benefits from the bond. It includes…
Q: Put the following Bonds in order of your desired interest rate (highest: 1 to Lowest: 4): Treasury…
A: A long call option starts making profits when it crosses the break even point. The long call option…
Q: Assume that you will receive $2500 at the end of 6 years and want to know the present value (PV) of…
A: Present value refers to the current value of a future sum of money, taking into account a specified…
Q: ssume that the market is strong form efficient. Which of the following wa rovide positive abnormal…
A: Strong form of efficient market hypothesis is one of the most important theorem in analysis of the…
Q: Laura and Alan are a young married couple with three small children. Alan earns $60,000 a year, but…
A: In 2022 the maximum total contribution a person can make to their IRA accounts is $6000 if you are…
Q: Use the following amortization chart: Selling price of home $ 84,000 Down payment $ 4,000 Principal…
A: The question is based on the concept of Annuity in Financial Management. Annuity refers to the…
Scenario: The appropriation to the state library system (fiscal year starts July 1) for fiscal 2018 was $15 million. On December 31, 2017, its budget reports showed expenditures of $7.5 million and encumbrances outstanding of $500,000. Quarterly allotments were as follows: Q1: $3.75 million; Q2: $4.5 million; Q3: $3.75 million; and Q4: $3 million. What was the status of system operations at that point?
-
System operations were under plan by $250,000.
-
System operations were under plan by $750,000.
-
System operations were over the plan by $250,000.
-
System operations were consistent with the plan; half the year had elapsed and half the money was spent.
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
- The following is the general budget for earmarked funds and its adjustments during the 2020 financial period: 1) The total estimated revenues within the general budget for funds allocated for the year 2020 amounted to (3) million dinars, of which 2595 thousand dinars for public services. 2) In addition to the above, the estimated revenues of public parking, which amount to 336 thousand dinars, have been allocated to cover public safety expenses of 300 thousand dinars. 3) Reducing income tax revenues by 120,000 dinars and travel allowances by 90,000 dinars, provided that the difference is covered from the fund's balance account. 4) Frost occurred in the Jordan Valley that affected the agricultural crop, and it was decided to compensate farmers for 70,000 dinars within the general budget appendix prepared for this purpose. This compensation is covered from the money balance account. Required: To record the general budget entries in the general appropriated funds journal.The City of South River budget for the fiscal year ended June 30, 2020, included an appropriation for the police department in the amount of $8,900,000. During the month of July 2020, the following transactions occurred (in summary):Purchase orders were issued in the amount of $520,000.Of the $520,000 in purchase orders, $480,000 were filled, with invoices amounting to $478,000.Salaries, not encumbered, amounted to $302,000.A budget appropriations reduction in the amount of $50,000 was approved by the city council.Prepare an appropriations, expenditures, and encumbrances ledger for the police department for the month of July. (Credit amounts should be indicated by a minus sign.)The following is a pre-closing trial balance for Montpelier's General Fund as of June 30, 2023: Debits Credits Cash $ 116,500 Taxes Receivable—Current 29,000 Allowance for Uncollectible Current Taxes $ 3,000 Accounts Payable 7,800 Due to Other Funds 5,500 Tax Anticipation Notes Payable 50,000 Fund Balance—Unassigned 70,200 Budgetary Fund Balance 1,000 Estimated Revenues 100,000 Revenues 102,000 Appropriations 99,000 Expenditures 93,000 Totals $ 338,500 $ 338,500 What is the fund balance as of June 30, 2023, after all closing entries have been made?
- The following is a pre-closing trial balance for Montpelier's General... The following is a pre-closing trial balance for Montpelier's General Fund as of June 30, 2023: Debits Credits Cash $116,500 Taxes Receivable-Current 29,000 Allowance for Uncollectible Current Taxes $3,000 Accounts Payable 7,800 Due to Other Funds 5, 500 Tax Anticipation Notes Payable 50,000 Fund Balance-Unassigned 70,200 Budgetary Fund Balance 1,000 Estimated Revenues 100,000 Revenues 102,000 Appropriations 99,000 Expenditures 93,000 Totals $ 338,500 $ 338, 500 What is the fund balance as of June 30, 2023, after all closing entries have been made?1. At the beginning of 2020, the balance sheet of a county general fund reports $500,000 in property taxes receivable from 2019, of which $350,000 are considered uncollectible. During 2020 the county sends out tax bills in the amount of $10,000,000, of which $600,000 are expected to be uncollectible. Cash collections on 2019 taxes are $140,000, and the remaining uncollected taxes are written off. Cash collections on 2020 taxes are $9,500,000. Of the $500,000 uncollected at the end of 2020, $100,000 are expected to be collected within 60 days, $65,000 are expected to be collected more than 60 days after year-end, and the rest are uncollectible.The general fund's balance sheet at the end of 2020 will include: Select one: A. Property taxes receivable, net of uncollectibles, of $100,000 B. Deferred inflows of $65,000 C. Property taxes receivable, net of uncollectibles, of $500,000 D. Deferred inflows of $165,000 2. Below is the preclosing trial balance of a town's general fund at…The unadjusted trial balance for the General Fund of the City of Allensville at June 30, 2019 is as follows: Debits Accounts Receivable $40,000 Cash 75,000 Due from Agency Fund 25,000 Encumbrances 60,000 Estimated Revenues 975,000 Expenditures 750,000 Taxes Receivable 250,000 $2,175,000 Credits Allowance for Doubtful Accounts $ 5,000 Allowance for Uncollectible Taxes 50,000 Appropriations 785,000 Due to a Utility Fund 40,000 Unassigned Fund Balance (160,000) Estimated…
- The unadjusted trial balance for the General Fund of the City of Allensville at June 30, 2019 is as follows: Debits Accounts Receivable $40,000 Cash 75,000 Due from Agency Fund 25,000 Encumbrances 60,000 Estimated Revenues 975,000 Expenditures 750,000 Taxes Receivable 250,000 $2,175,000 Credits Allowance for Doubtful Accounts $ 5,000 Allowance for Uncollectible Taxes 50,000 Appropriations 785,000 Due to a Utility Fund 40,000 Unassigned Fund Balance (160,000) Estimated…The General Fund of a city had the following post-closing trial balance at September 30 2020. the end of its fiscal year: Debits Credits Cash 100,000 Taxes Receivable – Delinquent 583,000 Allowance for Uncollectible Delinquent Taxes 189,000 Interest and Penalties Receivable 26,280 Allowance for Uncollectible Interest & Penalties 11,160 Inventory of Supplies 16,100 Vouchers Payable 148,500 Due to Federal Government 62,490 Fund Balance – Nonspendable – Inventory Supplies…The government makes appropriations of RO 200,000 to Sohar School for the month of January 2019. During the month the following transactions occurred: Salary paid RO 50,000 Purchase orders were placed for office supplies RO 72,000 Office supplies were received with a voucher for RO 60,000 An amount of RO 25,000 was transferred to Debt service fund. The unreserved fund balance at the end of the period is: a. 90,000 b. 150,000 c. 78,000 d. 65,000
- The General Fund for Nisland has the following budget for the current year: Estimated Revenues$4,500,000 Appropriations$5,200,000 Estimated other financing sources$800,000 Estimated other financing uses$75,000 During the year, the actual results were: Revenues$4,300,000 Expenditures$5,150,000 Other financing sources$850,000 Other financing uses$70,000 Required: Prepare the Closing Entries for Nisland. Does it need a record for budgetary / encumbrances first and then the actual cost? DO NOT GIVE SOLUTION IN IMAGE FORMATBudget & Fund Balance: The Wayne City Council approved and adopted its budget for 2020. The budget contained the following amounts: Estimated revenues $ 800,000 Appropriations $ 700,000 Estimated other financing uses-interfund transfers out $ 60,000 During the year 2020, the following transactions and events occurred that affected the general fund. Property tax revenue $ 675,000 Interfund transfer out to the debt service fund $ 45,000 Interfund transfer in received by general fund $ 60,000 Expenditures $ 430,000 Encumbrances, balance at 2020 year-end $ 120,000 Required: Complete #1-3 below. 1) Prepare the entry to close the budget.…The Village of Seaside Pines prepared the following enterprise fund Trial Balance as of December 31, 2020, the last day of its fiscal year. The enterprise fund was established this year through a transfer from the General Fund. Debits Credits Accounts payable $ 103,000 Accounts receivable $ 25,800 Accrued interest payable 28,900 Accumulated depreciation 46,500 Administrative and selling expenses 48,500 Allowance for uncollectible accounts 12,400 Capital assets 707,000 Cash 90,200 Charges for sales and services 553,000 Cost of sales and services 495,000 Depreciation expense 46,500 Due from General Fund 17,100 Interest expense 40,200 Interest revenue 4,300 Transfer in from General Fund 115,200 Bank note payable 625,300 Supplies inventory 18,300 Totals $ 1,488,600 $ 1,488,600…