Question 1
Use the financial statements attached to answer (short answers) the following questions (for the city of Richmond, VA) 1. How does the audit opinion given to this city by its independent auditors differ from the audit opinion rendered on the financial statements for a for-profit business? 2. A reconciliation should be presented to explain the difference between the net changes in fund balances for the governmental funds (fund-based financial statements) and the change in net assets for the governmental activities (government- wide financial statements). What were several of the largest reasons for the difference? 3. What were the city?s largest sources of general revenues? 4. What was the total amount of expenditures recorded by the General Fund during the period? How were those expenditures classified? 5. What assets are reported for the General Fund? 6. Review the notes to the financial statements and then determine the number of days the government uses to define the end-of-year financial resources that are viewed as currently available. 7. Did the size of the General Fund balance increase or decrease during the most recent year and by how much? 8. In addition, read the Management?s Discussion and Analysis (MD&A) that should be located near the beginning of the annual report. Write a memo to explain four or five of the most interesting pieces of information that the Management?s Discussion and Analysis provides.
Question 2
I need a reply to this ? The Incoterms rules or are a series of pre-defined commercial terms published by the International Chamber of Commerce widely used in international commercial transactions. Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods. They are intended to reduce or remove altogether uncertainties arising from different interpretation of the rules in different countries. EXW: Ex Works- this term constitutes a named place of delivery. The seller makes the goods available at its premises. This places maximum obligation on the buyer and minimum obligations on the seller. The buyer bears the risk for bringing the goods to their final destination. ? FOB: Free On Board- This term constitutes named port of shipment. The seller must load the goods on board the vessel nominated by the buyer. Costs and risk are divided when the goods are actually on board of the vessel. The seller bears the expense and risk of shipping. CIF: Cost, Insurance, and Freight- This term constitutes named port of destination. This price includes in a lump sum the cost of the goods and the insurance and freight to the named destination. Seller must pay all costs to bring goods to the destination. Risk is transferred to the buyer once the goods are loaded on the vessel. DDU: Delivered Duty Unpaid- This term constitutes named place of destination. The seller delivers the goods to the buyer to the named place of destination in the contract of sale. The buyer is responsible for the costs and risk for the unloading, duty, and any subsequent delivery beyond the place of destination,this will not open for me can you write it out were I can see it please.
Question 3
1. (TCO 3) You have been approved for a $70,000 loan toward the purchase of a new home at 12% interest. The mortgage is for 30 years. How much are the approximately annual payments of the loan? Hint: Assume you pay yearly. (Points: 3) $2613 $8690 $5740 None of the above 2. (TCO 3) First Choice Bank pays 9% APR compounded quarterly on its business loans. National Emerald Bank pays 13% APR compounded monthly. The EAR for First Choice and National Emerald Bank are: (Points: 3) 9.31% and 13.80%, respectively 9% and 13.80%, respectively 9.31% and 13.50%, respectively 9% and 13.50%, respectively 3. (TCO 3) Computer Parts, Inc. is considering an investment that will have cash flows of $8,000, $7,000 and $4,000 for years 1 through 3. What is the approximate value of this investment today if the appropriate discount rate is 10% per year? (Points: 3) $24,250 $20,900 $16,060 None of the above 4. (TCO 3) You deposited $3,000 in your bank account today. An increase in which of the following will increase the future value of your deposit assuming that all interest is reinvested? Assume the interest rate is a positive value. Select all answers that apply: (Points: 4) interest rate initial amount of your deposit frequency of the interest payments length of the investment period 5. (TCO 3) If you borrow $50,000 today at 10% interest for eight years. How much of your first payment will be applied towards the principal of the loan? (Points: 3) $5,000 $4,372 $4,790 zero, all will be applied towards the interest 6. (TCO 3) Match the following terms with the examples as appropriate: (Points: 4) Matching: Answer Potential Matches: : Pure discount loan 1: You obtained a business loan for four months. The loan will allow you to paid $300 in interest for three months and a final payment of interest and principal at the end of the four month. 2: You obtained a mortgage to buy a home. You will pay $800 per month to cover both interest and principal. 3: a way used by the US government to borrow money on short-term basis. 4: You borrow $1,000 from your best friend. In return, you will give him back $1150 in 3 months. : Pure discount loan : Amortized Loan : Interest-only Loan : Treasury Bill 7. (TCO 3) You are interested in saving to buy a new machine that costs $1,105. You can deposit $250 in your bank today. If your bank pays 8% annual interest on its accounts, how long will it take you to save for the new machine? (Points: 4) about 19 years about 9 years about 4.5 years Can not be determined
Question 4
5. Items 1 through 6 represent an auditor's observed changes in certain financial statement ratios or amounts from the prior year's ratios or amounts. For each observed change, select the most likely explanation or explanations from the list of explanations provided. Answers on the list may be selected once, more than once, or not at all. (Please use the following key (e.g., ?A?) for your answers: A-F). Do not copy the rule itself into your student answer packet. Auditor's observed changes (independent of each other). A. Inventory turnover increased substantially from the prior year. (Select 3 explanations) B. Accounts receivable turnover decreased substantially from the prior year. (Select 3 explanations) C. Allowance for doubtful accounts increased from the prior year, but allowance for doubtful accounts as a percentage of accounts receivable decreased from the prior year. (Select 3 explanations) D. Long term debt increased from the prior year, but interest expense increased a larger than proportionate amount than long term debt. (Select 1 explanation) E. Operating income increased from the prior year although the entity was less profitable than in the prior year. (Select 2 explanations) F. Gross margin percentage was unchanged from the prior year although gross margin increased from the prior year. (Select 1 explanation) Explanations (Please use these numbers for the explanations for A-F above when responding to this problem): (1) Items shipped on consignment during the last month of the year were recorded as sales. (2) A significant number of credit memos for returned merchandise that were issued during the last month of the year were not recorded. (3) Yearend purchases of inventory were overstated by incorrectly including items received in the first month of the subsequent year. (4) Yearend purchases of inventory were understated by incorrectly excluding items received before the year-end. (5) A larger percentage of sales occurred during the last month of the year, as compared to the prior year. (6) A smaller percentage of sales occurred during the last month of the year, as compared to the prior year. (7) The same percentage of sales occurred during the last month of the year, as compared to the prior year. (8) Sales increased at the same percentage as cost of goods sold, as compared to the prior year. (9) Sales increased at a greater percentage than cost of goods sold increased, as compared to the prior year. (10) Sales increased at a lower percentage than cost of goods sold increased, as compared to the prior year. (11) Interest expense decreased, as compared to the prior year. (12) The effective income tax rate increased, as compared to the prior year. (13) The effective income tax rate decreased, as compared to the prior year. (14) Short term borrowing was refinanced on a long-term basis at the same interest rate. (15) Short term borrowing was refinanced on a long-term basis at lower interest rates. (16) Short term borrowing was refinanced on a long-term basis at higher interest rates.,Thank you very much. Greatly appreciated,that was very helpful. Thank you. you confirmed my second guesses.
Question 5
Consider the following information about three stocks: Rate of Return if State Occurs State of Probability of Economy State of Economy Stock A Stock B Stock C Boom 0.20 0.34 0.46 0.50 Normal 0.40 0.25 0.23 0.20 Bust 0.40 0.03 ? 0.25 ? 0.42 a-1 If your portfolio is invested 35 percent each in A and B and 30 percent in C, what is the portfolio expected return? (Round your answer to 2 decimal places. (e.g., 32.16)) Portfolio expected return % a-2 What is the variance? (Do not round intermediate calculations and round your final answer to 5 decimal places. (e.g., 32.16161)) Variance a-3 What is the standard deviation? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Standard deviation % b. If the expected T-bill rate is 4.50 percent, what is the expected risk premium on the portfolio? (Round your answer to 2 decimal places. (e.g., 32.16)) Expected risk premium % c-1 If the expected inflation rate is 4.00 percent, what are the approximate and exact expected real returns on the portfolio? (Round your answers to 2 decimal places. (e.g., 32.16)) Approximate expected real return % Exact expected real return % c-2 What are the approximate and exact expected real risk premiums on the portfolio? (Round your answers to 2 decimal places. (e.g., 32.16)) Approximate expected real risk premium % Exact expected real risk premium %
