Question 1
The majority of the attached questions I have answered, shown my work on and just need clarity. But 2 of them I am completely befuddled! Thanks!,Thank you so much for your help, I am so frazzled on the few I am stumped on! So I sincerely appreciate your help Nicole,You are most welcome. Do you think there is any chance you will be able to review the work tonight sometime or before noon tomorrow?,I cannot begin to thank you enough for responding! I have a few questions, On 13, 28, 39, 60, and 64 you didn't say yes or no if I was correct or not so should I assume that that means they were right? On 29, that was the answer I had when I submitted the first time and I got it wrong :-( and you got the same answer as me right? I really appreciate you taking the time to go through the questions, I hope it wasn't to jumbled and hard to understand!,Good afternoon, I made a 97% on the assignment, thank you very much for working with me. I missed #29, & #62 so I asked the instructor for clarification on how the problems should have been worked. Would you like his follow up or no? Do I report positive feedback anywhere because most definitely I would like to Thanks again Nicole,I didn't ask for clarification, I don't think you could have explained it any clearer, the instructor is going to have to show me what in the world he is doing different than we are
Question 2
(TCO 4) If there are certain columns of information that are not needed at a particular time but might be needed later, _____ the unneeded columns to allow users to focus on only the essential information. (Points : 2) hide delete freeze format 2. (TCO 4) In Excel, the print area is defined as _____. (Points : 2) an individual piece of data, such as a last name a complete set of data for an entity the sequence in which pages print the range of data to print 3. (TCO 4) When sorting in Excel, it arranges records in a table _____. (Points : 2) by the number of pages in the worksheet by the number of pages in the workbook by the value in field(s) within a table by permanently removing extraneous data 4. (TCO 4) Filtering the Last_Name column (field) to show only records that begin with the letter S is an application of _____. (Points : 2) the use of a table element as a formula a Number Filter a Text Filter a Date Filter 5. (TCO 4) To apply a red background color to cells for employees who have sales greater than $1,000, you can use _____. (Points : 2) a PivotTable a multiple level sort conditional formatting a range name 6. (TCO 4) Using Conditional Formatting to draw attention to cells that are blank _____. (Points : 2) displays a particular color based on the relative value of the cell contents to other selected cells displays an icon representing a value in the top third, quarter, or fifth based on values in the selected range helps locate where data may be missing helps locate errors in cells quickly 7. (TCO 4) For Subtotals to be useful and accurate, it is important that the data be _____ correctly. (Points : 2) sorted formatted aligned labeled 8. (TCO 4) To add a PivotTable, choose the Insert PivotTable command from the _____ group. (Points : 2) tables format layout chart 9. (TCO 4) Data mining techniques such as PivotTables can detect _____ of data. (Points : 2) patterns categories styles groups 10. (TCO 4) To create a calculated field, select _____ located on the PivotTable Tools Options tab. (Points : 2) Calculations Insert Calculated Field dialog launcher Tools PivotTable Calculation 11. (TCO 4) A Pivot Table Style controls all the following EXCEPT _____. (Points : 2) bolding font colors number format shading colors 12. (TCO 4) What are the areas of a PivotTable Report where fields can be placed? (Points : 2) Criteria Range and Extract Range Values, Axis Fields, Legend Fields, and Report Filter Values, Row Labels, Column Labels, and Report Filter Database, Field, and Criteria 13. (TCO 4) The PivotChart Tools contextual tab includes all the following EXCEPT _____. (Points : 2) design layout format type 14. (TCO 4) Click the _____ to sort or filter the chart representation based on the values. (Points : 2) Axis Field arrows Report Filter arrows Values arrows Legend Field arrows 15. (TCO 4) Pivot Charts look best when they use basic charts, such as a _____. (Points : 2) column chart scatter chart radar chart surface chart
Question 3
Question 1 Linden Co. has 1,000,000 euros as payables due in 90 days, and is certain that euro is going to depreciate substantially over time. Assuming the firm is correct, the ideal strategy is to: Answer sell euros forward purchase euro currency put options. purchase euro currency call options. purchase euros forward. remain unhedged 0.25 points Question 2 Jacko Co. is a U.S.-based MNC with net cash inflows of euros and net cash inflows of Sunland francs. These two currencies are highly negatively correlated in their movements against the dollar. Kriner Co. is a U.S.-based MNC that has the same exposure as Jacko Co. in these currencies, except that its Sunland francs represent cash outflows. Which firm has a high exposure to exchange rate risk? Answer Jacko Co. Kriner Co. the firms have about the same level of exposure. neither firm has any exposure. 0.25 points Question 3 To hedge a ____ in a foreign currency, a firm may ____ a currency futures contract for that currency. Answer receivable; purchase payable; sell payable; purchase none of the above 0.25 points Question 4 In a forward hedge, if the forward rate is an accurate predictor of the future spot rate, the real cost of hedging payables will be: Answer highly positive. highly negative. zero. none of the above 0.25 points Question 5 Dubas Co. is a U.S.-based MNC that has a subsidiary in Germany and another subsidiary in Greece. Both subsidiaries frequently remit their earnings back to the parent company. The German subsidiary generated a net outflow of ?2,000,000 this year, while the Greek subsidiary generated a net inflow of ?1,500,000. What is the net inflow or outflow as measured in U.S. dollars this year? The exchange rate for the euro is $1.05. Answer $3,675,000 outflow $525,000 outflow $525,000 inflow $210,000 outflow 0.25 points Question 6 Exhibit 11-1 U.S. Jordan 360-day borrowing rate 6% 5% 360-day deposit rate 5% 4% Refer to Exhibit 11-1. Perkins Corp. will receive 250,000 Jordanian dinar (JOD) in 360 days. The current spot rate of the dinar is $1.48, while the 360-day forward rate is $1.50. How much will Perkins receive in 360 days from implementing a money market hedge (assume any receipts before the date of the receivable are invested)? Answer $377,115. $373,558. $363,019. $370,000. 0.25 points Question 7 Transaction exposure reflects: Answer the exposure of a firm's international contractual transactions to exchange rate fluctuations. the exposure of a firm's local currency value to transactions between foreign exchange traders. the exposure of a firm's financial statements to exchange rate fluctuations. the exposure of a firm's cash flows to exchange rate fluctuations. 0.25 points Question 8 Assume the following information: U.S. deposit rate for 1 year = 11% U.S. borrowing rate for 1 year = 12% New Zealand deposit rate for 1 year = 8% New Zealand borrowing rate for 1 year = 10% New Zealand dollar forward rate for 1 year = $.40 New Zealand dollar spot rate = $.39 Also assume that a U.S. exporter denominates its New Zealand exports in NZ$ and expects to receive NZ$600,000 in 1 year. You are a consultant for this firm. Using the information above, what will be the approximate value of these exports in 1 year in U.S. dollars given that the firm executes a money market hedge? Answer $238,584. $240,000. $234,000. $236,127. 0.25 points Question 9 Use the following information to calculate the dollar cost of using a money market hedge to hedge 200,000 pounds of payables due in 180 days. Assume the firm has no excess cash. Assume the spot rate of the pound is $2.02, the 180-day forward rate is $2.00. The British interest rate is 5%, and the U.S. interest rate is 4% over the 180-day period. Answer $391,210. $396,190. $388,210. $384,761. none of the above 0.25 points Question 10 Assume that Patton Co. will receive 100,000 New Zealand dollars (NZ$) in 180 days. Today's spot rate of the NZ$ is $.50, and the 180-day forward rate is $.51. A call option on NZ$ exists, with an exercise price of $.52, a premium of $.02, and a 180-day expiration date. A put option on NZ$ exists with an exercise price of $.51, a premium of $.02, and a 180-day expiration date. Patton Co. has developed the following probability distribution for the spot rate in 180 days: Possible Spot Rate in 90 Days Probability $.48 10% $.49 60% $.55 30% The probability that the forward hedge will result in more U.S. dollars received than the options hedge is ____ (deduct the amount paid for the premium when estimating the U.S. dollars received on the options hedge). Answer 10% 30% 40% 70% none of the above 0.25 points Question 11 Which of the following reflects a hedge of net receivables in British pounds by a U.S. firm? Answer purchase a currency put option in British pounds. sell pounds forward. borrow U.S. dollars, convert them to pounds, and invest them in a British pound deposit. A and B 0.25 points Question 12 Assume that the British pound and Swiss franc are highly correlated. A U.S. firm anticipates the equivalent of $1 million cash outflows in francs and the equivalent of $1 million cash outflows in pounds. During a ____ cycle, the firm is ____ affected by its exposure. Answer strong dollar; favorably weak dollar; not strong dollar; not weak dollar; favorably 0.25 points Question 13 A firm produces goods for which substitute goods are produced in all countries. Appreciation of the firm's local currency should: Answer increase local sales as it reduces foreign competition in local markets. increase the firm's exports denominated in the local currency. increase the returns earned on the firm's foreign bank deposits. increase the firm's cash outflow required to pay for imported supplies denominated in a foreign currency. none of the above 0.25 points Question 14 U.S. based Majestic Co. sells products to U.S. consumers and purchases all of materials from U.S. suppliers. Its main competitor is located in Belgium. Majestic Co. is subject to: Answer economic exposure. translation exposure. transaction exposure. no exposure to exchange rate fluctuations. 0.25 points Question 15 Which of the following is not a form of exposure to exchange rate fluctuations? Answer transaction exposure. credit exposure. economic exposure. translation exposure. 0.25 points Question 16 Assume that Smith Corporation will need to purchase 200,000 British pounds in 90 days. A call option exists on British pounds with an exercise price of $1.68, a 90-day expiration date, and a premium of $.04. A put option exists on British pounds, with an exercise price of $1.69, a 90-day expiration date, and a premium of $.03. Smith Corporation plans to purchase options to cover its future payables. It will exercise the option in 90 days (if at all). It expects the spot rate of the pound to be $1.76 in 90 days. Determine the amount of dollars it will pay for the payables, including the amount paid for the option premium. Answer $360,000. $338,000. $332,000. $336,000. $344,000. 0.25 points Question 17 Yomance Co. is a U.S. company that has exposure to Japanese yen and British pounds. It has net inflows of 5,000,000 yen and net outflows of 60,000 pounds. The present exchange rate of the Japanese yen is $.012 while the present exchange rate of the British pound is $1.50. Yomance Co. has not hedged its positions. The yen and pound movements against the dollar are highly and positively correlated. If the dollar strengthens, then Yomance Co. will: Answer benefit, because the dollar value of its pound position exceeds the dollar value of its yen position. benefit, because the dollar value of its yen position exceeds the dollar value of its pound position. be adversely affected, because the dollar value of its pound position exceeds the dollar value of its yen position. be adversely affected, because the dollar value of its yen position exceeds the dollar value of its pound position. 0.25 points Question 18 Sarakose Co. is a U.S. company with sales to Canada amounting to C$5 million. Its cost of materials attributable to the purchase of Canadian goods is C$7 million. Its interest expense on Canadian loans is C$5 million. The dollar value of Sarakose's "earnings before interest and taxes" would ____ if the Canadian dollar appreciates; the dollar value of its cash flows would ____ if the Canadian dollar appreciates. Answer increase; increase decrease; increase decrease; decrease increase; decrease increase; be unaffected 0.25 points Question 19 Sycamore (a U.S. firm) has no subsidiaries and presently has sales to Mexican customers amounting to MXP98 million, while its peso-denominated expenses amount to MXP41 million. If it shifts its material orders from its Mexican suppliers to U.S. suppliers, it could reduce peso-denominated expenses by MXP12 million and increase dollar-denominated expenses by $800,000. This strategy would ____ the Sycamore's exposure to changes in the peso's movements against the U.S. dollar. Regardless of whether the firm shifts expenses, it is likely to perform better when the peso is valued ____ relative to the dollar. Answer reduce; high reduce; low increase; low increase; high 0.25 points Question 20 A call option exists on British pounds with an exercise price of $1.60, a 90-day expiration date, and a premium of $.03 per unit. A put option exists on British pounds with an exercise price of $1.60, a 90-day expiration date, and a premium of $.02 per unit. You plan to purchase options to cover your future receivables of 700,000 pounds in 90 days. You will exercise the option in 90 days (if at all). You expect the spot rate of the pound to be $1.57 in 90 days. Determine the amount of dollars to be received, after deducting payment for the option premium. Answer $1,169,000. $1,099,000. $1,106,000. $1,143,100. $1,134,000.
Question 4
6-38 [LO 1] The following two paragraphs are used to present the auditor?s opinions of XYZ company: In our opinion, the financial statements referred to present fairly, in all material aspects, the financial position of XYZ Company as of October 31, 2010 and 2011, and the changes in net assets and its cash flows for the years then ended in conformity with accounting principles generally accepted in the United States of America. Our audits were performed for the purpose of forming an opinion on the basic financial statements of XYZ Company taken as a whole. The accompanying Schedule of Expenditures of Federal Awards and State Projects is presented for purposes of additional analysis as required by the U.S. Office ofManagement and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations, and chapter 10.650, Rules of the Auditor General, and is not a required part of the basic financial statements. The Schedule of Explicit and Discrete Disclosure for Able County and the Schedule of Revenue and Expenses are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole. (a)What do you know about XYZ Company based on the audit report? (b)How are the deliverables in this audit engagement different from those of a ?standard? integrated audit of a company that has to file with the SEC? (c) Based on the information you can glean from the audit report paragraphs above, what would the auditor consider in planning the scope, timing, and resources for the audit engagement?
Question 5
#2. Variance anallysis, sales-mix and Sales-auantity variance Aussie infornautic markets three different handheld Windows CE - compatible organizer. Aussie Infonautics markets three different handheld models. PalmPro is a souped-up version for the executive on the go Palm CE is a consumer-oriented version; and PalmKid is a stripped-down version for the young adult market. You are Aussue Infonautics' senior vice president og marketing. The CEO has discovered that the total contribution margin came in lower than budgeted, and it is your responsibility to explain to him why actual resultd are different from the budget. Budgeted and actual operating data for the company's third quarter of 2010b are as follow: Selling price Variable cost per unit Contribution Margin per unit Sales Volume in Unit PalmPro $ 379 $ 182 $ 197 12,500 PalmCE 269 98 171 37,500 PalmKid 149 65 84 50,000 100,000 Actual Operating Date, Third Quarter 2010 Selling price Variable cost per unit Contribution Margin per unit Sales Volume in Unit PalmPro $ 349 $ 178 $ 171 11,000 PalmCE 285 92 193 44,000 PalmKid 102 73 29 55,000 110,000 1. Compute the actual and budgeted contribution margins in dollars for each product and total for the third quarter 2010. 2. Calculate the actual and budgeted sales-mix for the three products for the third quarter of 2010 3. Calculate total sales-volume, sales-mix, and sales quantity variances for the third quarter of 2010. (Calculate all variances in terms of contribution margin). 4. Given that the CEO is known for having temper tantrums, you want to be well prepared for this meeting in order to prepare, write a paragraph or 2 comparing actual results to budgeted amounts. Part 2 of the question Aussie infomautics senior vice president of marketing prepared his budget at the beginning of the third quarter assuning a 25% market share based on total sales. The total handheld-organizer market was estimated by Foolinstead Research to reach sales pf 400,000 units worldwide in the third quarter. However, actual sales in the third quarter were 500,000 units. 1. Calculate the market-share and market size variances for Aussie Infonautics in the 3rd quarter of 2010 (calculate all variances in terms of contribution margins.) 2. Explain what happened based on the market-share and market-size variances. 3. Calculate the actual market size, in units, that would have led to no market-size variance (again using budgeted contribution margin per unit). Use this market size figure to calculate the actual market share that would have led to a zero market-share variance.
