HANDOUT 4 1 SOLUTION
ADJUSTING ENTRIES AND
POSTING TO T-ACCOUNTS
Prepare the required adjusting journal entry for each situation as of December 31 of the current year. See
the last page for the unadjusted account balances shown in T-accounts.
(a) Suppose
HANDOUT 1 3 SOLUTION STATEMENT OF CASH FLOWS Match each activity to its classification
on the statement of cash flows:
Activity
a.
Cash paid to suppliers and
employees
b.
Cash paid to purchase
equipment and other assets
c.
Cash paid for dividends
d.
Cash
P42
Req. 1
a.
b.
c.
d.
Deferred expense
Accrued expense
Deferred revenue
Deferred expense
e.
f.
g.
h.
Deferred revenue
Accrued expense
Accrued expense
Accrued revenue
Req. 2
a.
1,600
Insurance expense (+E SE).
1,600
Prepaid insurance (A).
($3,200 6 months
Price to Earnings Ratio
Advantages:
Earnings are key drivers of stock value.
The ratio is simple to calculate and widely used in the industry.
According to empirical research, differences in P/E ratios are significantly related to
longterm
average stoc
Qualitative Characteristics of Financial Information
inShare
Financial information has several qualities that make it useful.
These qualities are outlined in Chapter 3 of the Conceptual Framework for Financial
Reporting, approved by the International Acco
Answers Assignment 2 MFIN 603 Macroeconomics
1. Answer the following related to business cycle measurement
(a)
Explain the difference between an impulse and the propagation
mechanism in the context of business cycles.
Impulse is an initial one-time shock
Assignment 1 Answers
MFin 603 Macroeconomics
Part 1
Consider the 2011 summary of the National Income and Product Accounts
administered by the U.S. Commerce Departments Bureau of Economic
Analysis, published in the August 2012 Survey of Business. Note that
MFin 603 (Macroeconomics) Assignment 4
1.
Answers
Show graphically and discuss the effect of an exogenous increase in money demand in the
Keynesian model with fixed prices for goods.
s
s
Y
F(N, Ka, Fa)
Y
s
(Y )
o
45
N
W/P
Y
i
s
N
LM
i
(W/P)
d
N
N
s
IS
N,N
MFin 603 (Macroeconomics)
1.
Assignment 3
ANSWERS
In the IS/LM model, show graphically, discuss in words, and derive algebraically the effect
on aggregate income and the interest rate of:
(a)
an exogenous increase in business investment.
An increase in Ia
Oleksandr Romanko
Senior Research Analyst, Risk Analytics Business Analytics, IBM
May 10, 2016
Computational Finance
Lecture 2 Review of Matlab, Linear
Algebra and Matrix Computations
MFIN 706
Lecture outline
Introduction to Matlab
Review of linear algebr
QC: e/f
T1: g
JWBT319-Pachamanova
May 27, 2010
9:58
Printer: Courier Westford, Westford, MA
1
yW
iley
Appendix A: Basic Linear Algebra Concepts
APPENDIX
A
Basic Linear
Algebra Concepts
his appendix provides a very basic introduction to linear algebra conc
QC: e/f
T1: g
JWBT319-Pachamanova
May 27, 2010
9:59
Printer: Courier Westford, Westford, MA
21
yW
iley
Appendix C: Introduction to MATLAB
APPENDIX
C
Introduction to MATLAB
ATLAB is an interactive computing environment for model development that also enabl
Handout
Review of Linear Algebra, Derivatives and Convexity
MFIN 706
May 10, 2016
Review of derivatives, gradients and Hessians:
Given a function f of n variables x1 , x2 , . . . , xn , we use the following notations to represent
the vector of variables
In-class Participation Assignment
Group 1
MFIN 706
Due: May 17, 2016
Consider the optimization problem
min ex1 (4x21 + 2x22 + 4x1 x2 + 2x2 + 1)
s.t.
x1 x2 x1 x2 1.5
x1 x2 10
or choose your own optimization problem for illustration.
To solve such an optimi
Return Calculations
Eric Zivot
The Time Value of Money
Future Value
$ invested for years at simple interest rate per year
Compounding of interest occurs at end of year
= $ (1 + )
where is future value after years
Example: Consider putting $1000 in an i