Financial contracts involving investments, mortgages, loans, and so on are based on either a fixed or a variable interest rate. Assume that fixed interest rates are used throughout this question. Heather deposited $1,700 at her local credit union in a savings account at the rate of 9.8% paid as simple interest. She will earn interest once a year for the next 13 years. If she were to make no additional deposits or withdrawals, how much money would the credit union owe Heather in 13 years? $1,882.93 $3,865.80 $266.60 $5,731.65

Answer:

The correct answer in this case is $3865.8

Explanation:

The first thing to do is to calculate the on the principal in thirteen years' time using the below formula:

I=PRT

I is the interest which is unknown

P is the principal of $1700

R is the rate of interest of 9.8%

T is the length of the deposit which is 13 years

I=1700*9.8%*13=$2165.8

The total amount owed by the credit union in 13 years=principal+interest

                                                                                          =$1,700+$2,165.8

                                                                                           =$3865.8

The correct option is is the second option

P & G Auto Parts sells parts to AAA Car Repair during 2021. P&G offers rebates of 3% on purchases up to $80,000 and 6% on purchases above $80,000 if the customer’s purchases for the year exceed $300,000. In the past, AAA normally purchases $400,000 in parts during a calendar year. On March 25, 2021, AAA Car Repair purchased $90,000 of parts.
Required:
1. The journal entry to record the purchase includes a ____________.

The following information applies to the questions displayed below.
The December 31, 2021, unadjusted trial balance for Demon Deacons Corporation is presented below.
Debit $ 8,400 13,400 5,280 2,400 Accounts Credit Cash Accounts Receivable Prepaid Rent Supplies Deferred Revenue Common Stock Retained Earnings Service Revenue Salaries Expense 1,400 11,000 4,400 39, 680 27,000 $56,480 $56,480 At year-end, the following additional information is available
1. The balance of Prepaid Rent, $5,280, represents payment on October 31, 2021, for rent from November 1, 2021,
2. The balance of Deferred Revenue, $1,400, represents payment in advance from a customer. By the end of the .
3. An additional $700 in salaries is owed to employees at the end of the year but will not be paid until January 4
4. The balance of Supplies, $2,400, represents the amount of office supplies on hand at the beginning of the year to April 30, 2022 year, $350 of the services have been provided. 2022 of $900 plus an additional $1,500 purchased throughout 2021. By the end of 2021, only $640 of supplies remains.

On January 1, Hillcrest Co. acquired a 40% interest in Preston, Inc. with the excess of purchase price over book value solely attributable to equipment with a ten-year life and undervaluation by $250,000. During the year of acquisition, Preston reported net income of $500,000. What amount of Equity Income should Hillcrest report on its income statement for the year of acquisition? Select one: A. $200,000 B. $210,000 C. $190,000 D. $250,000

Suppose a​ ten-year, $ 1 comma 000 bond with an 8.6 % coupon rate and semiannual coupons is trading for $ 1 comma 035.77. a. What is the​ bond's yield to maturity​ (expressed as an APR with semiannual​ compounding)? b. If the​ bond's yield to maturity changes to 9.9 % ​APR, what will be the​ bond's price? a. What is the​ bond's yield to maturity​ (expressed as an APR with semiannual​ compounding)? The​ bond's yield to maturity is nothing​%. ​ (Round to two decimal​ places.)

Presented below is information related to copyrights owned by Ivanhoe Company at December 31, 2020.
Cost $8,620,000
Carrying amount 4,300,000
Expected future net cash flows 4,180,000
Fair value 3,440,000
Assume that Ivanhoe Company will continue to use this copyright in the future. As of December 31, 2020, the copyright is estimated to have a remaining useful life of 10 years.
Required:
(a) Prepare the journal entry to record the impairment of the asset at December 31, 2020. The company does not use accumulated amortization accounts.(b) Prepare the journal entry to record amortization expense for 2021 related to the copyrights

When the non-dividend paying stock price is $20, the strike price is $20, the risk-free rate is 6%, the volatility is 20% and the time to maturity is 3 months, which of the following is the price of a European call option on the stock?
(Note: N(*) represent cumulative normal density function.)
a. 20*N(0.1) - 19.7*N(0.2)
b. 19.7*N(0.2) - 20N*(0.1)
c. 19.7*N(0.1) - 20N*(0.2)
d. 20N*(0.2) - 19.7N*(0.1)

Raner, Harris, & Chan is a consulting firm that specializes in information systems for medical and dental clinics. The firm has two offices—one in Chicago and one in Minneapolis. The firm classifies the direct costs of consulting jobs as variable costs. A contribution format segmented income statement for the company’s most recent year is given below:
Required:
1-a. Compute the companywide break-even point in dollar sales. (Round "CM ratio" to 2 decimal places and final answer to the nearest whole dollar amount.)
1-b. Compute the break-even point for the Chicago office and for the Minneapolis office. (Round "CM ratio" to 2 decimal places and final answers to the nearest whole dollar amount.)
1-c. Is the companywide break-even point greater than, less than, or equal to the sum of the Chicago and Minneapolis break-even points?
Greater than
Less than
Equal to
2. By how much would the company’s net operating income increase if Minneapolis increased its sales by $48,750 per year? Assume no change in cost behavior patterns.
3. Refer to the original data. Assume that sales in Chicago increase by $32,500 next year and that sales in Minneapolis remain unchanged. Assume no change in fixed costs.
a. Prepare a new segmented income statement for the company. (Round your percentage answers to 1 decimal place (i.e.1234 should be entered as 12.3)

As an auditor for Bernard and Thomas, you are responsible for determining the proper classification of income statement items in the audit of California Sports Grill. Required: Select whether each of the following items should be classified as discontinued operations, other revenues, or other expenses.
Items Description
a. One of the company's restaurants was destroyed in a forest fire that raged through Southern California. Uninsured losses from Other expenses the fire are estimated to be $450,000
b. Califomia Sports Grill has three operating divisions: restaurants, catering, and frozen retail foods. The company sells the frozen retail foods division of the business for a profit of $2.4 million in order to focus more on the restaurant and catering business
c. An employee strike to increase wages and benefits shut down operations for several days at an estimated cost of $200,000.
d. A restaurant waiter slipped on a wet floor and sued the company. The employeo won a settlement for $100,000, but Califormia Sports Grill has not yet paid the settiement.
e. The company owns and operates over 40 restaurants but sold one restaurant this year at a gain of $650,000 Other revenues

Wiemers Corporation’s comparative balance sheets are presented below.
WIEMERS CORPORATION
Balance Sheets
December 31
2017 2016
Cash $ 4,500 $ 3,200
Accounts receivable (net) 20,800 23,300
Inventory 10,100 7,200
Land 19,500 26,400
Buildings 70,000 70,000
Accumulated depreciation—buildings (14,600 ) (10,600 )
Total $110,300 $119,500
Accounts payable $ 12,700 $ 31,100
Common stock 74,900 68,600
Retained earnings 22,700 19,800
Total $110,300 $119,500
Wiemers’s 2017 income statement included net sales of $110,000, cost of goods sold of $60,800, and net income of $15,000.
Required:
1. Compute the following ratios for 2017.
a. Current ratio.b. Acid-test ratio.c. Accounts receivable turnover.d. Inventory turnover.e. Profit margin

Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.31 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $1,785,000 in annual sales, with costs of $695,000. The tax rate is 25 percent and the required return on the project is 12 percent. What is the project’s NPV? (Do not round intermediate calculations. Enter your answer in dollars, not millions of dollars, and round your answer to 2 decimal places, e.g., 1,234,567.89.)

Fire Department Turns to BI Analytics. New York City has nearly one million buildings, and each year, more than 3000 of them experience a major fire. The Fire Department of the City of New York (FDNY) is adding BI analytics to its arsenal of firefighting equipment. It has created a database of over 60 different factors (e.g., building location, age of the building, whether it has electrical issues, the number, and location of sprinklers) in an attempt to determine which buildings are more likely to have a fire than others. The values of these parameters for each building are fed into a BI analytics system that assigns each of the city's 330,000 inspectable buildings a risk score. (FDNY doesn't inspect single and two-family homes.) Building inspectors then use these risk scores to prioritize which buildings to visit on their weekly inspections. The FDNY has roughly 350 inspectors who are trained and certified to perform their duties.
Which set of three parameters all provides measures useful in determining which buildings are more likely to have a fire than others?
a. Year the building was constructed, the number of building occupants, and primary materials used in the construction of the building
b. Primary materials used in the construction of the building, the assessed value for property taxes, and distance from the nearest fire station
c. Distance from the nearest fire hydrant, whether or not the building has an elevator, and the number of stories in the building
d. The amount the building is insured for, distance from the nearest fire hydrant, and primary building materials used in the construction of the building

On June 1, 2021, Andres Property Management entered into a 2-year contract to oversee leasing and maintenance for an apartment building. The contract starts on July 1, 2021. Under the terms of the contract, Andres will be paid a fixed fee of $56,000 per year and will receive an additional 15% of the fixed fee at the end of each year provided that building occupancy exceeds 90%. Andres estimates a 30% chance it will exceed the occupancy threshold, and concludes the revenue recognition over time is appropriate for this contract.
Required:
1. Assume Andres estimates variable consideration as the expected value. How much revenue should Andres recognize on this contract in 2021?

Veys Limos, Inc., is considering the purchase of a limousine that would cost $155,776, would have a useful life of 7 years, and would have no salvage value. The limousine would bring in cash inflows of $32,000 per year in excess of its cash operating costs. Determine the internal rate of return on the investment in the new limousine.

In the past, some people believed that the Fed routinely expanded the money supply during the presidential election years to help the incumbent president. For this question, assume that the Fed allows inflation to be 3% in every presidential election year instead of 2% in other years.If people form expectations adaptively, their expectations will ________ inflation so expansionary policy will____________. a) Overestimate; reduce the unemployment rate.b) Overestimate; increase the unemployment ratec) Underestimate; increase the unemployment rated) Underestimate; reduce the unemployment rate.e) Accurately estimate; not change the unemployment rate.

What operations strategy should Nokero pursue? Should it continue to supply all of its light bulb orders from a single factory location in China? In terms of supply chain networks, should Nokero maintain fulfillment warehouses in Africa, Asia, and Latin America? How should Nokero address the last mile issue of accessing people in the most remote locations? How should Nokero build its supply chain footprint in international markets? What regions should it emphasize? A number of potential supply chain partners have asked Nokero for exclusive distribution rights in key geographic markets. Should Nokero grant exclusive country distribution rights? What performance standards or metrics should Nokero put in place for supply chain partners (distributors)?

Caba Corporation’s sales budget for the first half of the year is as follows: Budgeted Sales January $ 115,000 February $ 198,000 March $ 220,000 April $ 250,000 May $ 210,000 June $ 290,000 Total: $ 1,283,000 Sales are 30% cash and 70% on account. Sales on account are to be collected over a three-month period, with 20% collected in the month of the sale, 65% collected in the first month following the sale, and 15% collected in the second month following the sale. What is the budgeted balance in the Accounts Receivable account as of June 30?

ChipMaker is a company that produces computer chips. To gain an advantage over other computer chip makers, ChipMaker focuses on reducing its costs below all of its competitors and has aligned its value chain accordingly. Recently, several of ChipMaker's competitors have begun to reduce the company's competitive advantage. In response to this threat, ChipMaker has decided to add production capacity in an effort to lower costs. By increasing production volume in an effort to reduce costs, the company is pursuing which sources of cost advantage? technological advantages size differences and economies of scale first-mover advantage differential access to productive inputs

Bonita Company's inventory records show the following data:
Units Unit Cost
Inventory, January 1 10000 $9.00
Purchases: June 18 9000 9.00
November 8 6000 8.00
A physical inventory on December 31 shows 3500 units on hand. Bonita sells the units for $15 each. The company has an effective tax rate of 20%. Bonita uses the periodic inventory method.
Required:
1. The weighted-average cost per unit is ___________.
O $8.52
O $8.53
O $9.10
O $8.76

The independent cases are listed below includes all balance sheet accounts related to operating activities:
Case A Case B Case C
Net income $ 303,000 $ 11,500 $ 413,000
Depreciation expense 33,000 143,000 73,000
Accounts receivable increase (decrease) 86,000 (193,000) (13,000)
Inventory increase (decrease) (43,000) 28,000 43,000
Accounts payable increase (decrease) (43,000) 113,000 63,000
Accrued liabilities increase (decrease) 53,000 (213,000) (33,000)
Required:
1. Show the operating activities section of cash flows for each of the given cases. (Amounts to be deducted should be indicated with minus sign.)
Case A Case B Case C
Net Income
Adjustments to Reconcile Net income to Net Cash Provided by Operating Activities
Depreciation
Changes in Assets and Liabilities
Accounts Receivable
Inventory
Accounts Payable
Accrued Liabilities
Net Cash Provided by Operating Activities

Turnbull Corp. is in the process of constructing a new plant at a cost of $30 million. It expects the project to generate cash flows of $13,000,000, $23,000,000, and 29,000,000 over the next three years. The cost of capital is 20 percent. What is the net present value of this project? (Do not round intermediate computations. Round final answer to nearest million dollars) Group of answer choices $10 mil. $14 mil. $12 mil. $16 mil.

New Orleans Chemicals Company follows the indirect method to prepare its statement of cash flows. Refer to the following portion of the comparative balance​ sheet:

New Orleans Chemicals Company
Comparative Balance Sheet
December​ 31, 2018 and 2017
2018 2017 ​Increase/ ​(Decrease)
Common Stock $ $35,000 $2,200 $32,800
Retained Earnings 157,000 92,000 65,000
Treasury Stock ​(8,100​) ​ (5,200​) ​(2,900​)
Total Equity $183,900 $89,000 $94,900
Net Income for 2018 was $94,000.

Based on the above​ information, determine the amount of dividends declared during 2018.

Lincoln Company issued $ 90,000 of​ 10-year, 9 % bonds payable on January​ 1, 2018. Lincoln Company pays interest each January 1 and July 1 and amortizes discount or premium by the​ straight-line amortization method. The company can issue its bonds payable under various conditions.

Requirements
1. Journalize Anderson Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at face value. Explanations are not required.
2. Journalize Anderson Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at 92. Explanations are not required.
3. Journalize Anderson Company's issuance of the bonds and first semiannual interest payment assuming the bonds were issued at 103. Explanations are not required.
4. Which bond price results in the most interest expense for Anderson Company? Explain in detail.

In December 2016, Custom Mfg. established its predetermined overhead rate for jobs produced during 2017 by using the following cost predictions: overhead costs, $460,000, and direct materials costs, $200,000. At year-end 2017, the company’s records show that actual overhead costs for the year are $1,271,100. Actual direct material cost had been assigned to jobs as follows.

Jobs completed and sold $ 420,000
Jobs in finished goods inventory 76,000
Jobs in work in process inventory 53,000
Total actual direct materials cost $ 549,000

1. Determine the predetermined overhead rate for 2017.
2&3. Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied.
4. Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.

Complete this question by entering your answers in the tabs below.

Req 1

Req 2 and 3

Req 4

Determine the predetermined overhead rate for 2017.

Overhead Rate
Choose Numerator: / Choose Denominator:
Complete this question by entering your answers in the tabs below.

Req 1

Req 2 and 3

Req 4

Enter the overhead costs incurred and the amounts applied during the year using the predetermined overhead rate and determine whether overhead is overapplied or underapplied.

Factory Overhead
Actual overhead
Applied overhead
Underapplied overhead 0 = Overhead Rate
Estimated overhead costs / Estimated direct material costs = Overhead rate
/ = 0
Prepare the adjusting entry to allocate any over- or underapplied overhead to Cost of Goods Sold.

No Date General Journal Debit Credit
1 Dec 31 Cost of goods sold
1 Factory overhead

ne year ago, a U.S. investor converted dollars to yen and purchased 100 shares of stock in a Japanese company at a price of 3,150 yen per share. The stock's total purchase cost was 315,000 yen. At the time of purchase, in the currency market 1 yen equaled $0.00952. Today, the stock is selling at a price of 3,465 yen per share, and in the currency market $1 equals 145 yen. The stock does not pay a dividend. If the investor were to sell the stock today and convert the proceeds back to dollars, what would be his realized return on his initial dollar investment from holding the stock

Vasquez Construction has been awarded a contract by a local school board to build a new public school and must provide a performance bond. a. With respect to the performance bond, identify the principal, surety, and obligee. b. If Vasquez Construction fails to complete the building according to the terms of the contract, what would be the surety’s obligation? c. Does the surety have any recourse against Vasquez Construction in this example? Explain your answer.

Ted is the owner and chief executive officer of a business. He recently began an advertising campaign to promote a new product that is regulated by state law. The law is somewhat unclear. Before launching the campaign, he researched the relevant law and consulted with his attorney in an effort to comply with the law. Nevertheless, the attorney general of his state has filed a lawsuit against him for deceptive advertising. Ted's best defense is that ___________.a. He acted in good faith by conducting due diligence and acting accordingly, under anunclear law.b. Marshall owns and operates a construction firm.c. He uses inexpensive and low-gradebuilding products and accepts inferior carpentry work from his subcontractors.d. Nevertheless, Marshall complies with all the city building codes as well as all state and federal laws.

Sheridan, Inc. acquired 40% of Pina Corporation's voting stock on January 1, 2021 for $1060000. During 2021, Pina earned $364000 and paid dividends of $250000. Sheridan's 40% interest in Pina gives Sheridan the ability to exercise significant influence over Pina's operating and financial policies. During 2022, Pina earned $533000 and paid cash dividends of $138000 on April 1 and $138000 on October 1. On July 1, 2022, Sheridan sold half of its stock in Pina for $681000 cash. What should the gain be on sale of this investment in Sheridan's 2022 income statement?

Here are selected data for Sunny Sky Corporation: Beginning raw materials inventory $37,000 Beginning work in process inventory $62,200 Beginning finished goods inventory $58,300 Cost of materials purchased $151,000 Cost of direct materials requisitioned $91,300 Direct labor incurred $135,000 Actual manufacturing overhead $160,000 Cost of goods manufactured $287,000 Cost of goods sold $265,000 Manufacturing overhead rate (per dollar of direct labor cost) $1.25 What is the finished goods ending inventory

George Wynn is a salesperson for EGC whose primary responsibility is to contact engineers in charge of constructing commercial buildings. One such engineer is Don Snyder, who is in charge of building the new Texas A&M College of Business Administration facility. Don’s Houston-based engineering firm purchased three new EGI portable generators for this project. George learned that Don’s company will build four more buildings on the Texas A&M campus, and he felt that Don might buy more machines. Salesperson: Don, I understand you have three of our new model electric generators. Buyer: Yeah, you’re not kidding. Salesperson: I’m sure you’ll need additional units on these new jobs. Buyer: Yeah, we sure will. Salesperson: I’ve gone over the building’s proposed floor plans and put together the type of products you need. Buyer: They buy down in Houston; you need to see them! Salesperson: I was just in there yesterday, and they said it was up to you. Buyer: Well, I’m busy today. Salesperson: Can I see you tomorrow? Buyer: No need; I don’t want any more of your lousy generators! Salesperson: What do you mean? That is our most modern design! Buyer: Those so-called new fuses of yours are exploding after five minutes’ use. The autotransformer starter won’t start. . . . Did you see the lights dim? That’s another fuse blowing. Question George Wynn feels pressured to sell the new EGI. Don Snyder’s business represents an important sale both now and in the future. If you were George, what would you do?1. Have EGC’s best engineer contact Don to explain the generator’s capabilities.2. Come back after Don has cooled down.3. Get Don to talk about problems and then solve them.

Vesuvius Company has net sales revenue of $786,000, cost of goods sold of $346,200,net income of $151,200, and preferred dividends of $13,000 during the current year. At the beginning of the year, 491,000 shares of common stock were outstanding, and, at the end of the year, 543,000 shares of common stock were outstanding.A total of 4,000 preferred shares were outstanding throughout the year. The company’s earnings per share for the current year is closest to: