BUSN602 Midterm Exam Set 2 Click Link Below To Buy: http://hwcampus.com/shop/busn602-midterm-exam-2/ Return to Assessment List Part 1 of 1 - 100.0 Points Question 1 of 20 5.0 Points Jill Clinton puts $1,000 in a savings passbook that pays 4% compounded quarterly. How much will she have in her account after five years? A.$1,200.50 B.$1,220.20 C.$1,174.80 D.$1,217.50 Question 2 of 20 5.0 Points An increase in inflation should: A.increase the demand for loanable funds B.decrease the interest rate on loans C.increase the interest rate on loans D.none of the above Question 3 of 20 5.0 Points Economists use a ___________________ framework to explain
to Expected Realizable Value 60,000 EXERCISE 19-1 (15–20 minutes) (a) Pretax financial income for 2012 $400,000 Temporary difference resulting in future taxable amounts in 2013 (55,000) in 2014 (60,000) in 2015 (75,000) Taxable income for 2012 $210,000 Taxable income for 2012 $210,000 Enacted tax rate 30% Income taxes payable for 2012 $ 63,000 (b) | | Future Years | | | | 2013 | 2014 | 2015 | Total | | Future taxable (deductible) amounts | $55,000 | $60,000 | $75,000 | $190,000 | | Tax rate | X 30% | X 30% | X 30% | | | Deferred tax liability (asset) | $16,500 | $18,000 | $22,500 | $ 57,000 | Deferred tax liability at the end of 2012 $ 57,000 Deferred tax liability at the beginning of 2012 0 Deferred tax expense for 2012 (increase in deferred tax liability) 57,000 Current tax expense for 2012 (Income taxes payable) 63,000 Income tax expense for 2012 $120,000 Income Tax Expense 120,000 Income Taxes Payable 63,000 Deferred Tax Liability 57,000 (c) Income before income taxes $400,000 Income tax
D) as soon as an expense is paid from the fund. 3. The following information was taken from Bounders Company cash budget for the month of July: Beginning cash balance Cash receipts Cash disbursements $50,000 48,000 68,000 If the company has a policy of maintaining end of the month cash balance of $50,000, the amount the company would have to borrow is A) $20,000. B) $10,000. C) $30,000.
b) Balance the accounts and prepare the trial balance at the end of week 1. Question 3 The transactions of Mr Peters business during the first week of trading are as follows: 1/ Mr Peters deposits £62000 into a business bank account. 2/ Buys a machine for £7000 on credit from Mr Brown 3/ The business receives a loan of £15000. 4/ Purchases goods at a cost of £16000, paying by cheque 5/ Sells goods for £14000. Customer pays by cheque immediately.
$25 a year for 3 years compounded annually at 2 percent rate (i)= 2% number of periods (n) = 3 present value (PV) = $25 type (0 at end of period) = 0 Future value (FV) = $76.51 5-6A (Present value of an annuity) What is the present value of the following annuities? a. $2,500 a year for 10 years discounted back to the present at 7 percent rate (i)= 7% number of periods (n) = 10 Future value (FV) = $2,500 type (0 at end of period) = 0 Present value (PV) = $17,558.95 b. $70 a year for 3 years discounted back to the present at 3 percent rate (i)= 3% number of periods (n) = 3 Future value (FV) = $70 type (0 at end of period) = 0 Present value (PV) = $198.00 c. $280 a year for 7 years discounted back to the present at 6 percent rate (i)= 6% number of periods (n) = 7 Future value (FV) = $280 type (0 at end of period) = 0 Present value (PV) = $1,563.07 d. $500 a year for 10 years discounted back to the present at 10 percent rate (i)= 10% number of periods (n) = 10 Future value (FV) = $500 type (0 at end of period) = 0 Present value (PV) =
Question: : (TCO D) On December 31, 2010, Irey Co. has $2,000,000 of short-term notes payable due on February 14, 2011. On January 10, 2011, Irey arranged a line of credit with County Bank which allows Irey to borrow up to $1,700,000 at one percent above the prime rate for three years. On February 2, 2011, Irey borrowed $1,700,000 from County Bank and used $300,000 additional cash to liquidate $1,700,000 of the short-term notes payable. The amount of the short-term notes payable that should be reported as current liabilities on the December 31, 2010 balance sheet which is issued on March 5, 2011 is 9. Question: : (TCO D) Tender Foot Inc. is involved in litigation regarding a faulty product sold in a prior year.
Time Value of Money Exercises 1. What is the balance in an investment account at the end of 10 years if $5,000 is invested today and the account earns 8% interest compounded annually? What would the value be after 50 years? After 100 years? 2.
FI 515 Homework week 2. 3-1 Days Sales Outstanding Days sales outstanding= receivables/ave sales per day= receivables/annual sales/365) 20 days x $20,000= $400,000 3-2 Debt Ratio Debt ratio formula=Debt ratio +equity ratio=1 Equity ratio = 1/EM….the equity multiplier is 2.5 1 / 2.5 = .40 equity ratio Debt ratio= debt ratio +equity ratio=1 1-equity ratio=debt ratio 1-.40=.60%=debt ratio 3-3 Market/Book Ratio Market value per share =$75 Common equity =6 billion Number of shares outstanding =800M Market value per share/ (common equity/# of shares outstanding)= market/book ratio $75/(6,000,000/800,000,000) = $75/7.5 10 billion= market to book ratio 3-4 PE Ratio Price per share/earnings per share= P/E Price per share/cash flow per share= Price/cash flow
1. Analysis of stockholders' equity Star Corporation issued both common and preferred stock during 20X6. The stockholders' equity sections of the company's balance sheets at the end of 20X6 and 20X5 follow: 20X6 20X5 Preferred stock, $100 par value, 10% $580,000 $500,000 Common stock, $10 par value 2,350,000 1,750,000 Paid-in capital in excess of par value Preferred 24,000 — Common 4,620,000 3,600,000 Retained earnings 8,470,000 6,920,000 Total stockholders' equity $16,044,000 $12,770,000 a. Compute the number of preferred shares that were issued during 20X6. b. Calculate the average issue price of the common stock sold in 20X6.
a. How much in cash or securities must you put into your brokerage account if the broker’s initial margin requirement is 50% of the value of the short position? b. How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of