Please post your answers to Modules 2 and 3 Journal questions here. Only you and your
instructor will see your answers.
Questions for Modules 2& 3
Q#1 (Chapters 7 and 13).
You recently learned in FIN 602 how to value stocks using the P/E multiples approac
The Gersin Gear Company is considering going public and is trying to determine its value based on its future dividend
payments. Their current EPS is $7.75, and over the next 5 years they anticipate a payout ratio of 10% and ROE of 20%.
During this high-gr
HANDOUT 4 1
ADJUSTING ENTRIES AND
POSTING TO T-ACCOUNTS
Prepare the required adjusting journal entry for each situation as of December 31, 2010. See the
last page for the unadjusted account balances shown in T-accounts.
(a) Suppose Deanas had received a $
The Marcus Corporation plans to issue $5,000,000 of 10-year bonds at par next June, with semiannual interest payments. The company's current
cost of debt is 12 percent. However, the firm's financial manager is concerned that interest rates will increase i
The primary objective of a management accountant is to provide.
stockholders and potential investors with financial information
Timothy is a 35 percent partner in the Total Partnership, a calendar-year-end entity. Timothy
has an outside basis in his interest in Total of $198,000, which includes his share of the $45,000
of partnership liabilities. On December 31, Total makes a pro
Entry unt #
2002 Accrued Wages Payable
Cash (Bank of America checking account)
to record wages paid
1304 Prepaid Advertising
Cash (Bank of America checking account)
Problem Set 1
Choose the best answer for each question. Answer all questions. http:/www.encyclopedia.com/doc/1G23045001189.html
1) American Standard Co. has a 90 day 1 million receivable. American Standards bank, Bank of
America, suggests a 90 d
Capital Budgeting Midterm Exam Question Section - Chapters 1- 8 Name_
Please do your own work and do not share you work with others
Please underline the correct answer below. You may include an explanation if you think the question is
trickybut do not do
31. See Table 2.5 showing financial statement data and stock price data for Mydeco Corp.
a. How did Mydecos accounts receivable days change over this period?
Accounts receivables days are determined by dividing 365 by the receivables tu
Number of units (consumed in old tax pattern): is nothing but the equilibrium quantity.
Achievement of Equilibrium is when Qd= Qs
Qd = 300 - 5P
QS = 4P - 150
300 -5P= 4P-150
Number of units consumed is calculated with the equilibrium quanti
Lease vs Buy:
Analyzing the NAL (Net Advantage of Leasing) is essential before entering into any lease
agreement. As the name suggests it provides for information as whether lease will be beneficial
over purchase or vice versa, because it provides for inf
The maffei company which has only one product has provided the following data concerning its most recent month of operations:
Units in beginning inventory
Units in ending inventory
Variable costs per unit:
Sadik Industries must install $1 million of new machinery in its Texas
plant. It can obtain a bank loan for 100% of the required amount. Alternately, a Texas investment banking firm which represents a group of investors believes that it
can arrange for a
Prepare journal entries for common stock issued above par value and draw up a Balance Sheet
showing how these entries are reflected therein. Provide the required references, if applicable.
Issue of common stock above par value means issue of shar
By -Your Name
Decision on replacing a piece of equipment for
a new computerized version that promotes
efficiency for the upcoming year
Is it a worthwhile investment
A manager must decide which type of machine to buy, A, B, or C. Machine costs are as follows:
Product forecasts and processing times on the machines are as follows:
Year 10 Financial Statements - Given
Fan Company A
December 31, Year 10
Sales Returns and Allow
Cost of Goods Sold
Assume interest rate of 4%. Suppose that you receive $88,474 at the end of each year for 4 years.
Suppose that this cash flow starts at the end of the fourth year. Compute the present value.
Do not enter the symbol $ in your answer. Simply ente
Research and devlopment cost
Net working capital
Rate of return
If you want to see the formulas/calculations used, select the corresponding
Case: LOEWEN GROUP, INC.
MAKE SURE YOU HAVE THE CORRECT VERSION OF THE CASE: 9-201-082 MARCH 4, 2002
THE LOEWEN GROUP, INC (ABRIDGED)
Final exam comprehensive case pulling together many aspects
of the course, giving you the opportunity
A city is having scal problems in 2015. It expects to report a decit in its general fund,
the only fund that is statutorily required to be balanced.
To eliminate the anticipated decit the city opts to sell its city hallto itselffor $5
million. The city es
1. Which, if either, of the following statements is or are true?
I. The co-ownership of business property, where only minimal services are provided by the
owners for their tenants, generally constitutes a partnership for federal income tax purposes.
Biltrite Bicycles Inc
Module III - Control Testing: Sales Processing
1. The fact is that it does not provide for any test with regard to the revenues and the
accounts receivables which are generated because of sales for the completeness. From
the case, it
1) Do you believe that the center should establish its accounting system on a fund basis? If so,
If an organization has resources that can be used only for some specific pu
Oxford Corp. is considering refunding a $30,000,000, annual payment, 12% coupon, 30-year
bond issue that was issued 5 years ago. It has been amortizing $2 million of flotation costs on
these bonds over their 30-year life. The company could sell a new issu
1. Yes I would try to gain control of Robertson in May 2003. The potential profits and synergies that
would result from the merger between the two companies would most likely exceed the cost of the
merger. First of all, the sales force in
Usage of case Exhibit
Every multiple is ratio related to the total value of the enterprice that is (Market vlaue of equity + Book value of debt
Briggs & Stratton
Relationship between cost of capital and capital structure:
From the calculations made with regard to capital structure and cost of capital, it is clear
that there is no relationship between both. That is change in the capital structure will not have
Exchange rate dynamics and Forex hedging strategies:
Globalization has created an interconnection between various economies in the world. Almost all
business enterprises are facing exchange rate risk either through export or import that is
receiving or pa
The City of James has $10 million of 10% bonds payable in its financial statements. These bonds
contain a call provision. The Agent Company told the City that it will help find parties to call
back the old bond and refinance the bonds with 7% interest pay
Construction Finance, Accounting, and Risk
12. Financial Evaluation
Homework - Balance Sheet
Shift Commercial Construction Balance Sheet
Adapted from Peterson, Stephen. (2009) Construction Accounting and Financial Management. Pearson.