Question 1
Can You please write a response to this persons discussion. A small paragraph just to show that I know what shes talking about. THANK YOU "Financial statements are prepared in accordance with what? What governing bodies set accounting standards? Why do you think financial statements are required to be prepared using the same standards? Financial statements are prepared in accordance with what? According to our chapter 2 readings financial statements are prepared in accordance with the U.S GAAP and the IFRS. What governing bodies set accounting standards? From my understanding there are 4 different governing bodies that the standards for accounting. These are the FASB, IASB, SEC, and the GASB. The FASB is the Financial Accounting Standards Board which helps to protect not only investors but also protects the public from fraud. The IASB is the Internal Accounting Standards Board and they have boards all around the world to help develop the standards for accounting. The SEC is the Security and Exchange Commission which are set in place to help the stock markets from crashing. GASB is the Governmental Accounting Standards Board they set standards to help users better understand reports, guidelines and educate these users. Why do you think financial statements are required to be prepared using the same standards? I believe that it is important to use these standards when preparing the financial statements to help keep accounting organized, fraud from occuring and chaos. If we did not have the standards fraud would be at a higher rate along with businesses closing doors sooner than expected do to not fallowing any type of standard and knowledge of how to record financial funds. "
Question 2
Breadth Area Essay Questions Social/Civic Breadth Area General Discussion Questions 1. What Social/Civic breadth area related subject did you explore and which format (observation) did you use for your research? 2. How is your subject related to the Social/Civic breadth area? 3. What are the global or cultural implications of this subject? 4. Did exploration of this topic challenge any preconceptions or assumptions you hold? 5. Was your understanding of a global or cultural issue broadened or changed? If so, how? 6. Any surprises or special gifts from your exploration? 7. What was the most important thing you learned and would like to share with others? Specific Essay Questions Observation (Site Visit or Observation via the Web) 1. What Social/Civic breadth area related subject did you explore? 2. What are the global or cultural implications of this subject? 3. If applicable, were you able to follow the story/subject in an American news source as well as a foreign one? 4. Did the observation challenge any preconceptions or assumptions you hold? 5. Did the observation broaden your understanding of the selected topic related to this breadth area? Essays must be a minimum of two full pages (typed and double-spaced) and cannot exceed four pages in length. Include the following: 1) Title page 2) Header with short title in caps at left margin and page numbers in upper right-hand corner of every page, starting with title page 3) Introduction (this is a main heading, centered on the page, and typed in boldface) 4) Discussion of Experience (this is a main heading, with the heading format noted above) 5) Conclusion (this is a main heading as well) Another idea that could be used for any of the four breadth areas is to ?observe? via the web. Choose a news or feature story of global interest or that has global implications in any of the breadth areas. Follow the story in both an American news source as well as a foreign news source. Write an essay comparing key differences in coverage, looking also for subtleties in language, style, and emphasis. Did the observation challenge any preconceptions or assumptions that you hold? How did the observation broaden your understanding in the particular breadth area chosen? : In order for each essay to be evaluated as having met the required criteria, be sure that you have: ? Clearly explained how your experience reflects the specific liberal arts breadth area ? Clearly discussed how your experience relates to living in a global community Failure to adequately address both of these criteria will affect the grade for the essay. Social/Civic Breadth Area There is a body of knowledge, usually associated with the social and behavioral sciences, that each educated person needs to function effectively within relationships and to make a positive contribution to other persons and the social order. This area treats the understanding of human behavior as manifest in individuals and groups, however large or small. Both knowledge and appropriate action are marks of the educated person. This is the breadth area for looking at involvement in volunteer organizations, churches, schools, or local government. It is the area of being an informed citizen in voting and considering issues. It is looking at who we are as a society and people in relationship to one another. Courses in this area are psychology, anthropology, sociology, economics, history, and political science. Examples of resources you might use for your observation paper: Social/Civic Local museums, historical centers, ethnic festivals or centers, non-profit group addressing a global issue or working with a diverse population, etc. Focus on global perspectives on social issues. ( You can make it up ) Here is a website where they explain how to write an observation paper. http://www.custom-essays.org/essay_types/Observation_Essay.html
Question 3
Ok, here is the question again... with $70 paid. Chapter 6 4. Antivirus, Inc., expects its sales next year to be $2,000,000. Inventory and accounts receivable will increase by $430,000 to accommodate this sales level. The company has a steady profit margin of 12 percent with a 25 percent dividend payout. How much external financing will the firm have to seek? Assume there is no increase in liabilities other than that which will occur with the external financing. 8. Biochemical Corp. requires $500,000 in financing over the next three years. The firm can borrow the funds for three years at 10.60 percent interest per year. The CEO decides to do a forecast and predicts that if she utilizes short-term financing instead, she will pay 7.25 percent interest in the first year, 11.90 percent interest in the second year, and 8.15 percent interest in the third year. Determine the total interest cost under each plan. Which plan is less costly? 10. Assume that Hogan Surgical Instruments Co. has $2,000,000 in assets. If it goes with a low-liquidity plan for the assets, it can earn a return of 18 percent, but with a high-liquidity plan, the return will be 14 percent. If the firm goes with a short-term financing plan, the financing costs on the $2,000,000 will be 10 percent, and with a long-term financing plan, the financing costs on the $2,000,000 will be 12 percent. (Review Table 6?11 on page 178 for parts a, b, and c of this problem.) a. Compute the anticipated return after financing costs with the most aggressive asset-financing mix. b. Compute the anticipated return after financing costs with the most conservative asset-financing mix. c . Compute the anticipated return after financing costs with the two moderate approaches to the asset-financing mix. d. Would you necessarily accept the plan with the highest return after financing costs? Briefly explain. Chapter 7 2. Neon Light Company of Kansas City ships lamps and lighting appliances throughout the country. Ms. Neon has determined that through the establishment of local collection centers around the country, she can speed up the collection of payments by one and one-half days. Furthermore, the cash management department of her bank has indicated to her that she can defer her payments on her accounts by one-half day without offending suppliers. The bank has a remote disbursement center in Florida. a. If Neon Light Company has $2 million per day in collections and $1 million per day in disbursements, how many dollars will the cash management system free up? b. If Neon Light Company can earn 9 percent per annum on freed-up funds, how much will the income be? c. If the total cost of the new system is $375,000, should it be implemented? 7. Eco-Friendly Products has annual credit sales of $900,000 and an average collection period of 30 days. Assume a 360-day year. What is the company?s average accounts receivable balance? Accounts receivable are equal to the average daily credit sales times the average collection period. 13. Fisk Corporation is trying to improve its inventory control system and has installed an online computer at its retail stores. Fisk anticipates sales of 75,000 units per year, an ordering cost of $8 per order, and carrying costs of $1.20 per unit. a. What is the economic ordering quantity? b. How many orders will be placed during the year? c. What will the average inventory be? d. What is the total cost of ordering and carrying inventory? Chapter 8 10. Talmud Book Company borrows $16,000 for 30 days at 9 percent interest. What is the dollar cost of the loan? Dollar cost of loan = Amount borrowed x Interest rate x Days loan is outstanding/ 360 14. The Dade Company is borrowing $300,000 for one year and paying $27,000 in interest to Miami National Bank. The bank requires a 20 percent compensating balance. What is the effective rate of interest? What would be the effective rate if the company were required to make 12 monthly payments to retire the loan? The principal, as used in Formula 8?6 on page 232, refers to funds the firm can effectively utilize (Amount borrowed ? Compensating balance). 17. Your company plans to borrow $5 million for 12 months, and your banker gives you a stated rate of 14 percent interest. You would like to know the effective rate of interest for the following types of loans. (Each of the following parts stands alone.) a. Simple 14 percent interest with a 10 percent compensating balance. b. Discounted interest. c. An installment loan (12 payments). d. Discounted interest with a 5 percent compensating balance.
Question 4
I have 3 more questions...please let me know if there is a fee for these as they are part of my study guide. Thank you 1. Booth Financial Services, LLC has two revenue producing departments, Financial Planning and Business Consulting. The accounting department is trying to determine the best method to allocate $1,000,000 of common costs (secretarial staff, reception personnel, etc), either by salary or number of employees. Information on the revenue departments are as follows: Department Financial Planning 50 Employees Business Consulting 150 Employees $5,000,000 (a) Allocate the $1,000,000 common costs to the two revenue departments using both methods. (b) Why are allocations called arbitrary? 2. Gina's Boutique makes custom jewelry. One item, the guru necklace, is a best seller and sales in units for the first quarter are as follows: January 100,000 units February 150,000 units March 180,000 units Desired ending inventory is budgeted at 20% of next month sales. Compute production for February. 3. Acme Fireworks uses a traditional overhead allocation based on direct labor hours. For the current year overhead is estimated at $1,000,000 and direct labor hours are budgeted at 200,000 hours. Actual hours worked were 195,000 and actual overhead was $978,000. (a) Compute the predetermined manufacturing overhead rate. (b) Compute the applied manufacturing overhead.
Question 5
hello please answer the following questions and provide me with the full answer sheet: 1- Your portfolio has a beta of 1.45. The portfolio consists of 15 percent U.S. Treasury bills, 31 percent stock A, and 54 percent stock B. Stock A has a risk level equivalent to that of the overall market. What is the beta of stock B? 2-Scanlin, Inc., is considering a project that will result in initial aftertax cash savings of $1.88 million at the end of the first year, and these savings will grow at a rate of 3 percent per year indefinitely. The firm has a target debt?equity ratio of 0.85, a cost of equity of 12.8 percent, and an aftertax cost of debt of 5.6 percent. The cost-saving proposal is somewhat riskier than the usual project the firm undertakes; management uses the subjective approach and applies an adjustment factor of 2 percent to the cost of capital for such risky projects. What is the maximum initial cost the company would be willing to pay for the project? (Enter your answer in dollars, not millions of dollars, i.e. 1,234,567. Do not round intermediate calculations and round your final answer to the nearest whole dollar amount.) 3- You are given the following information for Lightning Power Co. Assume the company?s tax rate is 35 percent. Debt: 6,000 6.7 percent coupon bonds outstanding, $1,000 par value, 25 years to maturity, selling for 103 percent of par; the bonds make semiannual payments. Common stock: 390,000 shares outstanding, selling for $57 per share; the beta is 1.13. Preferred stock: 17,000 shares of 4 percent preferred stock outstanding, currently selling for $77 per share. Market: 6 percent market risk premium and 4.70 percent risk-free rate. What is the company's WACC? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) 4- Use the option quote information shown here to answer the questions that follow. The stock is currently selling for $28. Calls Puts Strike Option Expiration Price Vol. Last Vol. Last Macrosoft Feb 30 86 0.33 41 1.33 Mar 30 62 0.57 23 1.74 May 30 23 0.85 12 2.16 Aug 30 4 1.06 4 2.20 a. Suppose you buy 11 contracts of the February 30 call option. How much will you pay, ignoring commissions? Cost $ Suppose you buy 11 contracts of the February 30 call option. Macrosoft stock is selling for $31 per share on the expiration date. b-1 How much is your options investment worth? Payoff $ b-2 What if the terminal stock price is $30? Payoff $ Suppose you buy 11 contracts of the August 30 put option. c-1 What is your maximum gain? Maximum gain $ c-2 On the expiration date, Macrosoft is selling for $24 per share. How much is your options investment worth? Position value $ c-3 On the expiration date, Macrosoft is selling for $24 per share. What is your net gain? Net gain $ Suppose you sell 11 of the August 30 put contracts. d-1 What is your net gain or loss if Macrosoft is selling for $26 at expiration? (Loss amount should be indicated by a minus sign.) $ d-2 What is your net gain or loss if Macrosoft is selling For $32 at expiration? (Loss amount should be indicated by a minus sign.) $ d-3 What is the break-even price? (Round your answer to 2 decimal places. (e.g., 32.16)) Break-even $ 5- The treasurer of a major U.S. firm has $27 million to invest for three months. The interest rate in the United States is 0.27 percent per month. The interest rate in Great Britain is 0.31 percent per month. The spot exchange rate is ?0.627, and the three-month forward rate is ?0.630. What would be the value of the investment if the money is invested in U.S and Great Britain? (Enter your answer in thousands of dollars, not in millions. (e.g., 1,234,567). Round your answer to 2 decimal places. (e.g., 32.16)) U.S. $ Great Britain $ 6- Lakonishok Equipment has an investment opportunity in Europe. The project costs ?12 million and is expected to produce cash flows of ?2.0 million in Year 1, ?2.4 million in Year 2, and ?3.5 million in Year 3. The current spot exchange rate is $1.35/?; the current risk-free rate in the United States is 2.8 percent, compared to that in Europe of 2.0 percent. The appropriate discount rate for the project is estimated to be 14 percent, the U.S. cost of capital for the company. In addition, the subsidiary can be sold at the end of three years for an estimated ?9.0 million. What is the NPV of the project? (Enter your answer in thousands of dollars, not in millions. (e.g., 1,234,567). Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) NPV $
