Question 1
Each student is required to complete a paper that demonstrates effective communication skills, research competence, and technology fluency. The paper should demonstrate the ability to clearly communicate ideas about financial management in a professional manner and tone. Research for the paper can be conducted using the UMUC online library as a primary source, as well as industry and trade references. The paper should be created using word processing and other software programs to exhibit the student?s ability to prepare technology-enhanced documents and/or presentations. Effective communication includes appropriate writing style, organization, grammar, and spelling, as well as the ability to integrate course-related material and research. The paper should link concepts studied in the course to real-world organizations and the environments in which they operate. Research competency is evidenced by the student?s ability to formulate a viable thesis or relevant research topic, select scholarly references and resources, and using sources in an ethical way to support positions taken in the paper. Technological fluency is apparent in the uses of technology in academic studies and in understanding its application in work and everyday life. The paper should select an article from either the ABI/INFORM, Business Source Complete databases or other reliable sources (check with your instructor if unsure). Your topic should cover one of the following three subjects that have been identified as issues that have significant impact on the financial decisions of managers and that are covered in varying depth in FIN 620. Corporate Governance & Ethics Risk Management The Use of Technology in Finance The paper should be 10-12 double-spaced pages and consist of the following: Introduction/summary, analysis/critical evaluation and conclusions. In addition to the primary article selected, the student needs to perform additional research to support the analysis/critical evaluation portion of the paper. At least three sources should be included in the references of your paper. In terms of content, the paper should do the following: 1. Clearly state the issues being addressed. For example, the student could address the recent changes in corporate governance driven by Sarbanes-Oxley legislation and new regulations promulgated by the SEC, NYSE, etc. What is the intended impact on corporate behavior and ethics and what are the prospects for success? A paper on the use of technology in finance could explore the impact of changes in information technology and the financial impact of such changes on the structure of industries and in the ways companies compete, demonstrate how the organization's financial success is now being or will be affected in the future by the issues, e.g., costs, access to capital, revenues, risks. 2. Evaluate the position(s) taken in the article. Are there particular strengths or weaknesses in the accompanying arguments? 3. What is your assessment, given the views in the article and other research conducted? Conclusions need to be supported by solid analysis and logical reasoning. Paper Format Guidelines The paper should be between 10-12 double-spaced pages, plus any appendices, exhibits, and references, and prepared using word processing software. Appendices, exhibits, graphs, and other references may take the form of spreadsheet and/ or PowerPoint inserts that demonstrate an understanding of technology tools used in financial management and demonstrate student use of technology enhanced presentations. Properly cited reference sources are required. These may include course material, information from magazines, journals, and online sources. All reference sources must have a publication date no earlier than 2004. Contact the instructor for permission to use sources published prior to 2004. Note: When using online references, abstracts should not be used. Use full-text articles. The pdf version typically prints out in the same format (e.g., exact page numbers) as the article appeared in the journal. The paper will be graded for writing style, organization, grammar, and spelling, as well as for analysis and content. The writing style must follow the Publication Manual of the American Psychological Association, 5th edition. Citations for online sources should include the online address (URL) and access date as well as the citation for the specific reference. See the Student Writing Resources Page for further guidelines about form and policies. Post your paper in the public conference "Completed Short Papers" conference by the due date indicated in the course schedule. In addition, the author should facilitate the threaded discussion of their paper by classmates and the instructor. Each student is responsible for posting substantive comments to the papers of at least three classmates. This will be counted towards the course participation grade. Failure to make the required postings will result in deductions to the participation grade. Late papers will be penalized in accordance with the late policy above. Information on Data Sources Research for the paper can be-and is strongly recommended-to be conducted online using the UMUC online library as your primary source. When you download from online library, do not use abstracts, but use full-text articles: the pdf version typically prints out in the same format (e.g., exact page numbers) as the article appeared in the journal. You may find relevant and useful information for your paper from the following UMUC library sources, which you can access with Library Option at the top of the Web Tycho classroom screen: . Grading Criteria The paper will be graded using the following Rubric: NOTE: To avoid substantial deductions for lack of originality, the paper cannot be the same (or virtually the same) paper completed for another class. WRITING CRITERIA Weight ASSESSMENT Word Usage/ Grammar/Spelling/ Punctuation (including APA format) Uses wording, grammar, spelling and punctuation accurately and correctly. 10 Organization Uses logical sequencing including introduction, transitions between paragraphs, and summary/ conclusion to develop main idea(s) and content. 10 Conceptual Understanding Demonstrates an understanding of discipline theories and concepts presented in the course, and relevant to the assignment criteria 25 Theory Application Exhibits an ability to apply theories to practical problems within the context of the assignment. 25 Knowledge Integration - Conclusions Integrates current learning with prior learning to further demonstrate a comprehensive understanding of the subject matter. 30
Question 2
Assignment House #1 House #2 Go to the following website: http://www.realtor.com/. Enter a ZIP code. Chose Homes for Sale. Enter your price range (the minimum and maximum amount you want to spend). Enter the specifications (number of bedrooms and number of baths). Hit Search. Find a home that you like or would consider. Go to the U.S. Census website: http://www.census.gov. Click on the American Factfinder tab on the left of the screen. Under the Fact Access to Information title, enter the ZIP code of the house you found. You will get lots of data on demographics like age, gender, family size, education, income, and crime rates. Find out the price per square foot for the house you found. The goal now is to find a very similar house (age, lot size, square footage, number of rooms, and number of bathrooms). Repeat Steps 1 through 12. In Step 2, pick another ZIP code 20+ miles away from the first ZIP code you picked for the first house. In Step 5, pick the same specification and choose a house that was built in the same year or so as the first house. Also, try your best to find a house that has the same lot size and square footage as the first house. Construct a table showing a comparison of data (including location, square footage, total price, price per square foot, and specifications), for both houses and then write a 3?4-page paper detailing the following: 1. What is the logic for choosing your two ZIP codes? Is the selection based upon work location, family location, good schools, and so on? 2. What is the logic behind choosing the size and specifications of each house? 3. Compare the total price of the two homes. 4. Compare the price per square foot for each house. 5. Compare the demographic data (referring to the location and ZIP code) of each house. Based upon these data, try to explain the similarities and differences in pricing for each home. 6. Select the home that you will purchase and explain the reasoning behind your selection. Assume that at least a 20% down payment is required. How much money would you need to have saved? After the down payment, what would be the purchase price of the home? 7. Assume the following: Closing costs (including all potential loan origination, title, and closing fees) are $3,500. You have been approved for a 30-year fixed-rate mortgage note at a rate of 5.0%. Calculate the monthly payment for this loan. (It is recommended that you show your calculation.) 8. Using your textbook readings this week as a resource, and based upon your monthly gross income and current additional debt payments, perform the calculations below (it is recommended that you show your calculations). Your affordable monthly mortgage payment (assume your lender uses a guideline of 33% for monthly gross income or 38% if you have other debt payment obligations) Your affordable mortgage amount (meaning the amount that can be financed; assume the loan terms under #7b) Your affordable home purchase price (assume a 20% down payment). Compare these calculations to the previous data under #6 and #7. What are your conclusions? Discuss your findings, including any surprises! When purchasing a home, what additional considerations must you take into account? Discuss the parties that will be involved, what type of documentation will be required, home inspection requirements, any additional financing options that you would evaluate, and so on Present a general summary regarding home ownership. What are the advantages and disadvantages of home ownership, and how does your personal choice fit into your overall personal financial plan?,Hi Rachel, Thank you so much for wanting to help me out with this assignment. I am just having hard time with catching up with all the assignments for four classes:( Thank you in advance for all your help.
Question 3
MINI CASE #2 Instructions: Fill in the blanks _____. Use this mini case to help you study Kids-At-Play is a toy store that began operations this year. At the end of its first year of operations, Kids-At-Play had accounts receivable totaling $50,000. The store's manager estimates that $1,500 of those receivables will not be collected. Journal entry to record uncollectible accounts at the end of the year: __________________ ______ _________________________ ______ The year-end balance sheet will report the following balances under the Current Assets section: Accounts receivable $_____ Less allowance for doubtful accounts $ ___ Net realizable value of accounts receivable $_____ ====== $______ is the amount of receivables that Kids-At-Play actually expects to collect. Assume that early in the second year of operations, Kids-At-Play decides to write off as uncollectible a $500 receivable owed by Shirley Smith. This keeps the subsidiary ledger current for references on the credit standing of customers. Journal entry to write off the uncollectible account: ______________?????. _____ __________________??.. _____ Many students will want to debit Uncollectible Accounts Expense when writing off an account. Shirley Smith's $500 account was included in the $1,500 uncollectible accounts expense recorded at the end of last year. Therefore, debiting the expense account now would record the expense twice. After writing off the uncollectible account, the T accounts and balance sheet would appear as follows: Accounts Receivable Allowance for Doubtful Accounts Bal. 50,000 Entry to Bal. 1,500 500 Write-off 500 Account Bal. 49,500 Bal. 1,000 Balance Sheet Presentation: Accounts receivable $49,500 Less allowance for doubtful accounts 1,000 Net realizable value of accounts receivable $48,500 The net realizable value of accounts receivable did not change. Kids-At-Play still expects to collect $48,500 of its receivables. All that has changed is that the company now knows that Shirley Smith, who owes $500, is one credit customer who will probably not pay. There still is approximately $1,000 in bad debts left to be discovered. Kids-At-Play received notice that another customer, George Jackson, will not be able to pay his $100 account receivable. ____________________?????.. ___ _______________________??. ____ How to record collection of an account that has been written off. Assume that after Kids-At-Play has written off George Jackson's account, he does pay the $100 he owes. Step 1: The account must be reinstated. __________________________????? ____ __________________________??. ___ Step 2: The cash received is recorded. ________????????????????? _____ ________________________________?? ____ DEMONSTRATION PROBLEM ? Estimating Uncollectible Accounts Based on Receivables When accountants estimate uncollectible accounts based on receivables, they determine what the balance of the allowance for doubtful accounts should be. Assume that an accountant determines that $2,000 of the current accounts receivable will probably not be collected. Also assume that the Allowance for Doubtful Accounts currently shows a $200 credit balance. Allowance for Doubtful Accounts 200 Current Balance ____ Amount that must be added to the account to get the correct balance 2,000 Amount that should be in the account based on the estimate of bad debts The adjusting entry to record uncollectible accounts is: ___________________??????. ____ ___________________??.. ____ Assume that the accountant determines that $2,000 of the current accounts receivable will probably not be collected and that the Allowance for Doubtful Accounts currently shows a $200 debit balance. Allowance for Doubtful Accounts Current Balance 200 ____ Amount that must be added to the account to get the correct balance 2,000 Amount that should be in the account based on the estimate of bad debts Now, the adjusting entry to record uncollectible accounts is: ______________________?????? 2,200 ______________________??. 2,200 Why the Allowance for Doubtful Accounts would have a debit balance. The following T-account explaining the entries which effect the Allowance will show that a debit balance occurs when the amount of bad debts are underestimated and there are more actual write-offs than expected. In the above example, bad debts from the previous period were underestimated by $200. Since the allowance came up short, the entry to record bad debts in the current period is $2,200?the current expense of $2,000 plus an extra $200 to catch-up for the amount underestimated last accounting period. Allowance for Doubtful Accounts Actual Write-Off Adjusting Entry to of Uncollectible Record Estimate of Accounts Uncollectible Accounts A credit balance occurs when the amount of bad debts are overestimated. The account would have a zero balance if a business perfectly estimated the amount of bad debts. Compared to the allowance method, the journal entries for the direct write-off method of recording uncollectible accounts are very straight forward. Use the lecture aids that follow to quickly review the basics of the direct write-off method, and ask your students to practice the journal entries using the group learning activity. Direct Write-Off of Uncollectible Receivables Under the direct write-off method, the following occur: 1. Uncollectible Accounts Expense is recorded when an account is written off. NOTE: No attempt is made to estimate the amount of uncollectible accounts in advance. An Allowance for Uncollectible Accounts is not established. 2. If an account that has been written off is collected, the account is reinstated before recording the payment received. The direct write-off method does not require an adjusting entry at the end of the accounting period. Remember to emphasize that the direct write-off method is theoretically unacceptable, because the expense resulting from uncollectible accounts may be recognized in a different accounting period from the sales revenue from those accounts. Expenses are not matched against revenues. Therefore, the direct write-off method should be used only when the following two conditions exist: 1. It is impossible to estimate uncollectible accounts with any reasonable accuracy. 2. The amount of uncollectible accounts is immaterial. How do you record the write off when using The Direct Write-off Method: _________________........_______ __________________..............________ When do you record the write off when using the Direct Write-off Method: a) At the end of every year b) At the beginning of the year c) When is determined by the company that the account is uncollectable. If using the DirectWrite off method the balance sheet statement is impacted when writing off an account: YES or NO,Thank you. Please use the attached word document to answer the questions since it is in the correct format. Thanks.
Question 4
8. A dealer in government securities is considering buying $875 million in 10-year Treasury notes and $1,425 million dollars in 6-month Treasury bills. Current yields on the T-notes average 7.15 percent, while 6-month T-bill yields average 3.28 percent. The dealer can currently borrow $2,300 million through one-week repurchase agreements at an interest rate of 3.20 percent. Compute the dealer?s expected carry income in each of the following scenarios. (Hint: A spreadsheet can be most useful here. Perform the succession of calculations for the T-note in row 1; the succession of calculations for the T-bill in row 2; and the expenses from the RP in the row 3. Then, compute the carry income from the appropriate columns where income and expenses have been computed for each scenario.) a. The dealer purchases the T-notes and T-bills and finances them with the RP under the terms listed above. b. Same as part (a) above except that interest rates change to 7.30 percent on the T-notes, 5.40 percent on the T-bills and 5.55 percent on the RP, and the dealer must refinance the T-note and T-bill purchases at the new RP rate. c. Same as part (b) above except the dealer had not purchased the T-notes and T-bills until after interest rates changed. d. Repeat part (b) in the case where rates changed to 7 percent on the T-notes, 5.10 percent on the T-bills, and 4.5 percent on the RP. e. Repeat part (b) except the dealer had not purchased the T-notes and T-bills until after the interest rates changed. f. Based on the above results, is it always good for the dealer when interest rates rise? How about when they fall? Please explain. g. Could the dealer have benefited by a short position in case (b) or (d) above? Please explain.
Question 5
Question 1 Abigail Corporation produces a custom mountain bike that sells for $800. During its first year of operations, Abigail produced 1,000 bikes and sold 900 bikes. The costs of production for each bike are: Direct materials $100 Direct labor $50 Variable Overhead $30 Additionally, the annual fixed overhead is $200,000. Determine the following: 2. What is the product cost of one bike using the variable costing method? 3. What is the product cost of one bike using the full costing method? 4. Under variable costing, are fixed overhead costs a product cost or a period cost? Question 2 Costs associated with two alternatives, code-named Q and R, being considered by Albiston Corporation are listed below: Required: a. Which costs are relevant and which are not relevant in the choice between these two alternatives? b. What is the differential cost between the two alternatives? Question 3 The management of Kinion Corporation is considering the purchase of a machine that would cost $170,000, would last for 7 years, and would have no salvage value. The machine would reduce labor and other costs by $50,000 per year for each of the 7 years. The required rate of return is 16%. Show your work! Required: 2. Determine the payback period. 3. Should the company purchase the machine? Question 4 Darter Company manufactures two products, Product F and Product G. The company expects to produce and sell 2,600 units of Product F and 6,000 units of Product G during the current year. The company uses activity-based costing to compute unit product costs for external reports. Data relating to the company's three activity cost pools are given below for the current year: Required: Using the activity-based costing approach 1. Determine the overhead rate for each of the three cost pools. 3. Determine the overhead cost per unit for Product G.. Question 5 Kirsten Corporation makes 100,000 units per year of a part called a B345 gasket for use in one of its products. Data concerning the unit production costs of the B345 gasket follow: An outside supplier has offered to sell Kirsten Corporation all of the B345 gaskets it requires. If Kirsten Corporation decided to discontinue making the B345 gaskets, 25% of the above fixed manufacturing overhead costs could be avoided. Required: Assume Kirsten Corporation has no alternative use for the facilities presently devoted to production of the B345 gaskets. If the outside supplier offers to sell the gaskets for $0.46 each, should Kirsten Corporation accept the offer? Fully support your answer with appropriate calculations.
