Exercise 3-2
Stock Purchase Entries
On January 1, 2011, Polo Company purchased 100% of the common stock of
Save Company by issuing 40,000 shares of its (Polos) $10 par value
common stock with a market
Comprehensive Problem
XYZ Company
Assume the following:
Cost of the investment is $4,500 and will be sold at the end of year 5 for $1,400
XYZ Beta
0.80
Risk free Treasury Bill rate
1.50%
Market Portfo
(a)
CARPINO COMPANY
Statement of Cash Flows
For the Year Ended January 31, 2008
Cash flows from operating activities
Net loss.
$
(30,000.)*
Adjustments to reconcile net income
to net cash provided by
EXERCISE 4-5: High-Low Method [LO 2]. Campus Copy & Printing wants to predict copy machine
repair expense at different levels of copying activity (number of copies made). The following data have
been
VILLA TOOL COMPANY
Income Statement
For the Year Ended December 31
2009 2008
Net sales $1,818,500 $1,750,500
Cost of goods sold 1,011,500 996,000
Gross profit 807,000 754,500
Selling and administrativ
FIN 419 Final Exam (Total Points 15)
The Final Exam consists of twenty-five (25 multiple-choice questions. Each question is
valued at 0.6 points (25 x 0.6 = 15 total points). Answer all twenty-five (2
1. The Lineberry Golf Cart Co. sold 7,400 carts this year at an average unit price of $3,000. 50 days of
sales remained uncollected in accounts receivable at the end of the year. The firm produced the
Complete the following three exercises. Be sure to show your work for calculations to earn full credit.
Sales and Production Budgets (8-12): The marketing department of Jessi Corporation has submitted
.
b
a
b
d
c
b
c
a
35.
36.
73.
74.
75.
76.
77.
78.
Calculation of gross profit using percentage-of-completion.
Determine cash collected on long-term construction contract.
Determine gross profit using
Chapter 9
46.
Your younger sister, Brittany, will start college in five years. She has just informed her parents that she
wants to go to Eastern State U., which will cost $30,000 per year for four yea
.
b
a
35.
36.
Calculation of gross profit using percentage-of-completion.
a
101.
Computation of realized and deferred gross profit.
c
102.
Computation of realized gross profit amount.
b
103.
Computati
E xpect ed
Cash f low
($80)
$80
35. Beasley Ball Bearings paid a $4 dividend last year. The dividends is expected
1 yr. to grow at a constant rate of 6 percent over the next four years. The required r
E8-5 (Inventoriable CostsError Adjustments) Craig Company asks you to review its
December 31, 2007, inventory values and prepare the necessary adjustments to the books.
The following information is gi
1. One goal of just-in-time systems is to minimize inventory levels. (Points: 5)
True
False
2. Shulas 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners
will be produc
1.
The Lexington Property Development Company has a $10,000 note receivable from a
customer due in three years. How much is the note worth today if the interest rate is
a. 9%?
b. 12% compounded monthl
Alexis Company uses 800 units of a product per year on a continous basis. The product
has a fixed cost of $50 per order, and its carrying cost is $2 per unit per year. It takes 5
days to receive a shi
The _ is the rate of return a firm must earn on its investments in projects in order
to maintain the market value of its stock.
A)net present value
B) cost of capital
C) internal rate of return
D) gro
Lear, Inc., has $800,000 in current assets, $350,000 of which are considered permanent
current assets. In addition, the firm has $600,000 invested in fixed assets.
a. Lear wishes to finance all fixed
15%
20%
Dollars
Discount rate (%)
Expected
Net Present Value
Cash flow
0
($80)
2,000
4,000
$80 Chapter 10
6,000
1 yr.
8,000 22. You are called
in as a financial analyst to appraise the bonds of Olsens
Determine the cost of giving up cash discounts under each of the
following terms of
sale.
Cost of giving up discount
% discount days in a year
= - X -(100 - % discount) (payment date discounted period
Question1
SLO10
O'BrienInc.hasthefollowingdata:rRF=5.00%;RPM=6.00%;andb=1.10.Whatisthe
firm'scostofequityfromretainedearningsbasedontheCAPM?
Answer
a 11.83
.%
b 11.60
.%
c. 13.22
%
d 11.25
.%
e 8.93%
1. If a person's required return does not change when risk increases, that person is said to
be (a risk-seeking b) risk-indifferent c) risk averse d)risk aware.
2. If a person's required return decrea
Business Plan 1
Final Project: Business Plan
Axia College of University of Phoenix
Business Plan 2
The name of my business will be Discount Auto Parts; my main objective will be to
provide Fort Collin
71. Kirland Company collected the following information to prepare its cash budget for
the first quarter of a recent fiscal period.
Beginning cash balance $4,250
Capital Expenditures
3,000
Collections
ANSWER:1
a. Consumersurplusmeasuresthebenefittobuyersofparticipatinginamarket.Itismeasuredastheamountabuyeris
willingtopayforagoodminustheamountabuyeractuallypaysforit.Foranindividualpurchase,consumer
The normally distributed AAA battery life is stated to be 350 days when
used in a clock radio. The Big Charge Battery Company has recently modified the AAA batteries
so as to extent their life. The ow