Question 1
Prepare a Statement of Cash Flows (Indirect Method); Free Cash Flow [LO2, LO3, LO4] Balance sheet accounts for Joyner Company contained the following amounts at the end of Years 1 and 2: BALANCE SHEET ATTACHED AS A FILE The company?s income statement for Year 2 follows: Sales . . . . . . . . . . . . . . . . . . . $900,000 Cost of goods sold . . . . . . . . . 500,000 Gross margin . . . . . . . . . . . . . 400,000 Selling and administrative expenses . . . . . . . . . . . . . . 328,000 Net operating income . . . . . . . 72,000 Gain on sale of equipment . . . 8,000 Income before taxes. . . . . . . . 80,000 Income taxes . . . . . . . . . . . . . 24,000 Net income . . . . . . . . . . . . . . . $ 56,000 Equipment that had cost $40,000 and on which there was accumulated depreciation of $30,000 was sold during Year 2 for $18,000. Cash dividends totaling $15,000 were declared and paid during Year 2. Required: 1. Using the indirect method, compute the net cash provided by operating activities for Year 2. 2. Prepare a statement of cash fl ows for Year 2. 3. Compute the free cash fl ow for Year 2. 4. Briefl y explain why cash declined so sharply during the year.
Question 2
I have no idea of where to start on this assignment and how it is to be set up: This assignment is framed around the concepts of data analysis and biases in Chapter 11 (Step 7) of the Sekaran & Bougie (2010) book. Click here to view the Sekaran & Bougie diagram on the research process. For the first part of this assignment, consider the following case. A marketing firm is evaluating the possibility of using a series of product promotions for the population of Cook County, Illinois. However, these promotions are based upon the US National demographics from the 2010 Census data. There is some concern that if the demographics of Cook County Illinois are significantly different than the US National demographics, the product promotions would not work. Download the Excel spreadsheet with the 2010 Census data sets for Cook County (Illinois) and the US National demographics from this link. Analyze and compare both data sets using the data analysis and biases concepts from Chapter 11 of Sekaran & Bougie (2010). Compare only those categories that you find are significant to your analysis in demonstrating whether the US demographics based promotions can or cannot be effectively used in Cook County, Illinois. Create a graph that compares the categories from each file that you consider relevant. Create a 3-5 slide presentation with in-depth narratives in the speaker notes section that displays the graph(s) and analysis on how the Cook County demographic categories you chose differ from the national demographics. Part II In the second part of the assignment, based on your research findings of the first part, create a 3-5 slide presentation with in-depth narratives in the speaker notes section. You are to provide your advice as to possible business ventures to pursue in Cook County, for either the scenario 1 or 2 listed below. Based on your analysis and interpretation from Part 1 of the assignment, research the Internet and your course materials for any additional data and resources to help you reach this recommendation. Document any assumptions or elaborations you had to make in the speaker's notes section of the slides. Apply the standard of APA Style to the references section of your assignment, which should be your very last slide. Scenario 1: The marketing firm above has a request from a for-profit university that wants a recommendation on what new specific degree program should be pursued for the Cook County community. Scenario 2: The marketing firm above has a request from a development company that wants to know which specific businesses the stores should be leased to a new 5-store strip mall (small businesses) to be established within the Cook County community. Be sure to include supporting documentation and references using the APA 6th edition. Remember to use the data file format for the formatting of the data sets you are using from the Census Bureau reports. This APA format, although not currently listed in the AIU-APA guide, is used to point to raw data by means of a web address (use "Retrieved from") or a general place that houses data sets on the site (use "Available from"). If the data files are from a government web site, the correct APA format starts with the parent organization, then lists the specific division or department that is housing the data. So, the appropriate format for the IP3 data which is found on page 211 of the APA Manual 6th edition (Rule Number 54) should look like: Department of Commerce, U.S. Census Bureau (2010). US population demographics [Data file]. Available from American Fact Finder web site, http: //www. factfinder2.cesus.gov. Of course you are using two data sets, so you should have an APA entry for each data set. Your work MUST include a reference list. All research should be cited in the body of the speaker notes. Reports without citations may not earn any higher grade than a 'C' letter grade. Your report should contain an abstract, a short introduction, and conclusion in addition to the body of the presentation. Please note that if you have a source in your reference section, you need to cite it in the body of the paper per APA guidelines and vice-versa. For additional information on Creating Graphs and Charts visit the online help feature of your spreadsheet or accounting software program or visit the following websites:
Question 3
QUESTION 1 In a free economy, capital from providers with available funds is allocated through the price system to users that have a demand for funds. The interaction of the providers? supply and the users? demand determines the cost (or price) of money, which is the rate users pay to providers. For debt, we call this price the interest rate. For equity, it is called the cost of equity, and it consists of the dividends and capital gains stockholders expect. Discuss the FOUR factors affecting the cost of money. [20 marks] QUESTION 2 Stock A and B have the following historical returns: Year Stock A?s Returns (%) Stock B?s Returns (%) 2004 -18.00 -14.50 2005 33.00 21.80 2006 15.00 30.50 2007 0.50 -7.60 2008 27.00 26.30 a) Calculate the average rate of return for each stock during the 5-year period. b) Assume that you held the portfolio consisting of 50% stock A and 50% stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period? c) Calculate the standard deviation of returns for each stock and for the portfolio. d) Calculate the coefficient variation for each stock and for the portfolio. e) Choose the best stock and explain your answer. [30 marks],QUESTION 3 You are a financial analyst for Modal Optima Berhad. The director of finance has asked you to analyze two proposed capital investment, Project X and Y. Each project has a cost of RM10 million and the cost of capital for each project is 12%. The projects? expected net cash flow are as follows: Year Expected Net Cash Flows Project X (RM?000) Project B (RM?000) 0 -10,000 -10,000 1 6,500 3,500 2 3,000 3,500 3 3,000 3,500 4 1,000 3,500 a) Calculate each project?s payback period, net present value (NPV), internal rate of return (IRR) and modified internal rate of return (MIRR). b) Which project or projects should be accepted if they are independent? c) Which project should be accepted if they are mutually exclusive? [30 mark]
Question 4
P1-42 Carl Redmon completed these transactions during the first half of December: Dec. 2 Invested $10,000 to start a consulting practice titled Redmon Consulting. 2 Paid monthly office rent, $500 3 Paid cash for a Dell computer, $2,000. This equipment is expected to remain in service for five years. 4 Purchased office furniture on account, $3,600. The furniture should last for five years 5 Purchased supplies on account, $300.00 9 Performed consulting service for a client on account, $1,700. 12 Paid utility expense, $200. 18 Performed services for a client and received cash of $800. Requirements 1. Analyze the effects of Redmon?s transactions on the accounting equation. Use the format of Exhibit 1-7, page 18, and include these headings: Cash, Accounts Receivable, Supplies, Equipment, Furniture, Accounts Payable, and Carl Redmon, Capital. 2. Prepare the income statement of Redmon Consulting for the month ended December 31, 2007. List expenses in decreasing order by amount. 3. Prepare the statement of owner?s equity for the month ended December 31, 2007. 4. Prepare the balance sheet at December 31, 2007. format of Exhibit 1-7 on attachment There are two problem one here and the other in attachment,Micheal did you see the second assignment P2-43B?
Question 5
"Table 5-1 Top cap, Inc. Unadjusted Trial Balance Year 5 Sales $600,000 Ending Accounts Receivable 180,000 Ending Allowance for Uncollectibles 6,200CR Bad Debt Expense 5,000 Estimated Uncollectibles 4% 1.Refer to Table 5-1. If Top cap uses the sales revenue approach for estimating bad debt expense, after the proper adjustments to the accounts are recorded, the Allowance for Uncollectibles account should show a balance of: a. $6,200. b. $7,200. c. $11,200. d. $25,200. 2. Refer to Table 5-1. If Top cap uses the gross accounts receivable approach for estimating bad debt expense, after the proper adjustment to the accounts is recorded the Allowance for Uncollectibles account should show a balance of: (Points: 5) a. $6,200. b. $7,200. c. $11,200. d. $25,200. 3. When a specific account becomes uncollectible, the Accounts Receivable account is credited and which one of the following accounts is debited? a. Allowance for Returns and Adjustments b. Allowance for Uncollectibles c. Bad Debt Expense d. Miscellaneous Expense 4. When goods are returned by customers, the seller will debit __________ and credit Accounts Receivable. a. Allowance for Uncollectibles b. Sales c. Sales Discounts d. Sales Returns and Adjustments 5. Table 5-2 The Gerner Corporation sells to customers on a note basis with 10% credit terms with interest payable quarterly. every notes are due in one year. Gerner made the following sales on April 1, Year 6. CustomerPottsLarabee Note Maturity$50,000$50,000 Interest DueQuarterlyNA Interest Rate10%None Future Value of $50,000 in one year: $55,191 gift Value of $50,000 for one year: $45,298 Note: To encourage sales, Larabee was given a special deal on interest. Refer to Table 5-2. Which one of the following entries would record the sale to Larabee? A)DR notes receivable 55,191 CR sales 55,191 B)DR Notes Receivable 50,000 CR Sales 50,000 C)DR Notes Receivable 45,298 CR Sales 45,298 D) DR Notes Receivable 45,298 DR Interest Receivable 4,702 CR Sales 50,000 6. Refer to Table 5-2. As of June 30, Year 6, which one of the following entries will be made to record the interest earned, but not yet received, by Gerner on the Potts note? A) DR Accured interest receivable 1,250 CR Interest Income 1,250 B) DR Cash 1,250 CR Intereste Income 1,250 C) DR Cash 1,132 CR Accured interest receivable 1,132 D) DR Notes receivable-Potts 1,132 CR Interest Income 1,132 7. Refer to Table 5-2. As of June 30, Year 6, which one of the following entries will be made to record the interest earned, but not yet received, by Gerner on the Larabee note? A) DR Notes Receivable?Larabee 1,132 CR Interest Income 1,132 B) DR Accrued Interest Receivable 1,250 CR Interest Income 1,250 C) DR Cash 1,250 CR Interest Income 1,250 D) There is no entry because the note is non-interest bearing. 8. ABC, Inc. enters into an arrangement with Matt D Corporation whereby Matt D will assume $100,000 of ABC?s receivables for a 6% fee. Assuming that the transaction has a factoring arrangement with recourse and a $9,000 holdback, which one of the following entries will ABC make to record this transaction? A) DR Cash 100,000 CR Accounts Receivable 100,000 B) DR Cash 91,000 DR Interest Expense 9,000 CR Accounts Receivable 100,000 C) DR Cash 85,000 DR Due from Matt D Corp. 9,000 DR Interest Expense 6,000 CR Accounts Receivable 100,000 D) DR Cash 85,000 DR Interest Expense 15,000 CR Due to Matt D Corp. 100,000 9. ABC, Inc. enters into an arrangement with Matt D Corporation whereby Matt D will assume $100,000 of ABC?s receivables for a 6% fee. Assuming the transaction was a collateralized loan, which one of the following entries will ABC make to record this transaction A) DR Cash 94,000 DR Prepaid Interest 6,000 CR Accounts Receivable 100,000 B) DR Cash 94,000 DR Interest Expense 6,000 CR Loan Payable?Matt D 100,000 C ) DR Cash 94,000 DR Prepaid Interest 6,000 CR Loan Payable?Matt D 100,000 D) DR Cash 94,000 CR Due to Matt D Corp. 94,000 "
