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During a recent year, General Motors Corporation had accounts receivable of $21,000,000 and net credit sales of $66,000,000. The average collection period of the receivables in days was: a. 48.2 days b. 54.5 days c. 66.6 days d. None of these answer choices are correct.
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Calculate {eq}\binom{10}{0}+2\binom{10}{1}+2^2\binom{10}{2}+...+2^{10}\binom{10}{10} {/eq}.
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The town of Brittainville has two Enterprise Funds - one for its water and wastewater operations and another for its cable television operation. The Water and Wastewater Enterprise Fund issued $11,000,000 of 6%, 15-year refunding bonds at par during the year. It also received a $175,000 federal grant to expand water an...
c
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Which of the following statements is/are correct? i) In an inelastic collision, the total momentum of the system is the same before and after the collision. ii) Only in an inelastic collision is momentum not conserved. iii) In an elastic collision, the total momentum of the system is the same before and after the co...
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For the inverse market demand p=10-Q, and the market supply p=Q+4, a tax of $2 per unit is placed on buyers. Which of the following statements is true? a. With the tax, the equilibrium quantity is between 2 and 3 units. b. With the tax, the equilibrium price is between $3 and $4. c. Without the tax, the equilibrium ...
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In an attempt to increase sales, Flowers by Flo, a local florist, is creating mixed bouquets and delivering them to area businesses for their birthday gifts. This year's Mixed Twosome offers two do-it-yourself packs with the instructions inside each pack. Pack A contains three tulips and two daisies, while Pack B cont...
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While working on the final accounts for the fiscal year ended 31 December 2016, an auditor observed that some expenses for 2016 were charged to the capital stock account. Under these circumstances, the income statement would overstate expenses by $3,000 and net income by $3,000. The auditor reported this to the board o...
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Lion Incorporated uses a job-costing system at its Euston plant. Direct materials and direct labor costs are assigned to products using a predetermined overhead rate. Last year, Lion incurred the following costs: The actual overhead cost was $154,600. During the year, Job A981, which had cost $192,000 to complete, wa...
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Major Manuscripts, Inc, does not want to incur any additional external financing. Major Manuscripts, Inc. 2012 Income Statement Net sales 9,500 Cost of goods sold 7,615 Depreciation 380 Earnings before interest and taxes 1,505 ...
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For 2017, Jarvis Manufacturing recorded sales of $449,600 and total assets during the year of $409,600. How many days are in the average collection period (assume $100 of receivables are past due)? Show your work.
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The Fantastic Tool Company (Mexico Division) produced 100,000 saw blades during the year. It took 2 hours of labor per blade at a rate of $5.50 per hour. However, its standard labor rate is $5.00. Its labor efficiency variance was a favorable $55,000. What is Fantastic's standard hours allowed for a volume of 100,000 b...
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If $\dfrac{\partial u}{\partial x}=\dfrac{\partial v}{\partial y}$ and $\dfrac{\partial u}{\partial y}=\dfrac{\partial v}{\partial x}$, where $u,v \in \mathcal{C}^1$, then how does one prove $$\iint\limits_D \dfrac{\partial u}{\partial x}\mathrm{d}x\mathrm{d}y=\iint\limits_D \dfrac{\partial v}{\partial y}\mathrm{d}x\ma...
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What is the future value of $4,467 invested for 12 years at 14 percent compounded semi-annually? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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Suppose the risk-free return is {eq}8\% {/eq} and the market portfolio has an expected return of {eq}10\% {/eq} and a standard deviation of {eq}15\% {/eq}. Johnson & Johnson Corporation stock has a beta of {eq}0.33 {/eq}. What is its expected return?
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Crayola Company's bank statement for May 2016 shows this data: Balance May 1 $12,650 Balance May 31 $14,280 Debits: Credits: NSF Check $175 Notes $505 The cash balance per books on May 31 is $13,319. Your review of the data reveals the following: The NSF check was from Waxco, a customer. The note collected by the...
$13,622
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You are the manager of a Mom and Pop store that can buy milk from a supplier at $3.00 per gallon. If you believe the elasticity of demand for milk by customers at your store is -2, then your profit-maximizing price is:
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Sally found a 4-year-old savings bond that promised to pay $500 when it reaches maturity. Sally wants to sell it now, but the bank says that all bonds are to be sold at their current fair market value. If there is a 5% yield, how much would the bank be willing to pay for the bond?
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In the game below, the minimum value of X such that (B, C) is a Nash equilibrium is (x). Player 2Player 2 CD Player 1A-2,-2x-12,0 Player 1B3,1813,13
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What is the sum of the values of $x$ for which the expression $\frac{x^2 + 2x + 3}{(x-3)(x+5)}$ is undefined?
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If current financial conditions, such as wealth, expected future income, interest rates, and so on, do not change much over time, then financial markets will be characterized by: a. micro market efficiency. b. macro market efficiency. c. no market efficiency. d. None of the above
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Essary Enterprises has bonds on the market making annual payments, with eleven years to maturity, a par value of $1,000, and selling for $982. At this price, the bonds yield 7.6 percent. Required: What must the coupon rate be on the bonds?
7.35%
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Marie claims that capital budgeting ignores the time value of money by using a payback criterion. How would you respond? A. Capital budgeting does not ignore the time value of money. B. Capital budgeting is not the best method to evaluate long-term investments. C. Capital budgeting focuses on the liquidity of an inv...
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Forsyth Company is considering the purchase of new equipment costing $500,000. The equipment will be depreciated straight-line to a zero estimated salvage value over a seven-year life. The equipment will have operating costs of $80,000 per year and it will be sold for $50,000 at the end of the project life. What is th...
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Cliff Stride Construction Company has bonds outstanding that have an 8% coupon rate (coupon payments are made semi-annually), a 5.91% yield to maturity, and a face value of $1,000. The current rate of inflation is 3.46%. What is the real rate of return on these bonds?
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By means of a rope whose mass is negligible, two blocks are suspended over a pulley with {eq}m_1 = 11.2\ kg {/eq} and {eq}m_2 = 45.3\ kg {/eq}. The pulley can be treated as a uniform, solid, cylindrical disk. The downward acceleration of the {eq}45.3\ kg {/eq} block is observed to be exactly one-half the acceleratio...
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Gulick Inc. classifies all of its asset as either available for sale or held-to-maturity. When evaluating the fair value of an asset that Gulick's management believes is impaired, the fair value of the asset would be based on the quoted market price in an active market. In the absence of an active market, it would be b...
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Boles Corporation needs to raise $500,000 for one year to supply capital to a new store. Boles buys from its suppliers on terms of 3/10, net 90, and it currently pays on Day 10 and takes discounts; but it could forgo discounts, pay on Day 90, and get the needed $500,000 in the form of costly trade credit. Alternatively...
12%
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Find the slope of the curve {eq}y^4=x^3 {/eq} at the point {eq}(1,1) {/eq}.
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A bond currently sells for $1,090, which gives it a yield to maturity of 8%. Suppose that if the yield increases by 25 bps, the price of the bond falls to $1,055. What is the duration of this bond?
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Given the following cost function, determine the level of (non-zero) output at which the cost function is minimized, and the level of the costs. {eq}MC=200-48Q+3Q^2 {/eq}
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Let $a_1,a_2,...,a_{2n+1}$ be positive real numbers such that $$a_1+a_2+\cdots+a_{2n+1}\le 2n+1$$ and $$\frac{1}{a_1}+\frac{2}{a_2}+\cdots+\frac{2n+1}{a_{2n+1}}\ge (2n+1)^2$$ Prove that $$\frac{1}{a_1^2+a_1}+\frac{1}{a_2^2+a_2}+\cdots+\frac{1}{a_{2n+1}^2+a_{2n+1}}\ge n+1$$
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Zapata Corporation has 500 bonds outstanding that have a coupon rate of 6.5 percent, a face value of $1,000 each, and a market price of $970. The yield to maturity that these bonds offer is 6.81 percent. The tax rate is 34 percent. What is the pre-tax cost of debt for this firm?
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Beyer Company is considering the purchase of an asset for $350,000. It is expected to produce the following net cash flows. The cash flows occur evenly throughout each year. Year 1Year 2Year 3Year 4Year 5Total Net cash flows82,00045,00070,000180,00014,000391,000 Compute the payback period for this investment. Year...
3.85 years
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Costa Travel Agency received a $28,000 loan from a bank for 9 months at an interest rate of 11.50 percent. Compute the amount of interest the bank will earn using the simple interest method. (Use 360 days in a year.) Multiple Choice A. $2,510 B. $2,410 C. $2,195 D. $784 E. $720
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Which of the following is a drawback of the market approach of valuation? A) It does not consider current earnings. B) It may under represent earnings. C) Its reliability depends on the forecasts of future earnings. D) It over emphasizes the value of goodwill.
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Assume that your firm's marginal tax rate is 35%, and that your firm has the following capital structure: 20% in debt capital, and 80% in equity. Also assume that your firm's cost of debt capital is 10%, while your firm's cost of equity is 15%. Based on M & M Proposition II with taxes, what is your firm's weighted aver...
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Jardin Company produces a variety of gardening tools and aids. The company is examining the possibility of investing in a new production system that will reduce the costs of the current system. The new system will require a cash investment of $3,145,057 and will produce net cash savings of $600,000 per year. The system...
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The mean and standard deviation of a random variable X are μ = 2.2 and σ = 2.4, respectively. Find the z-score for an observed value of X = 3.4.
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Which of the following statements is false? (a) If an intangible asset has a finite life, it should be amortized. (b) The amortization period of an intangible asset can exceed 20 years. (c) Goodwill is recorded only when a business is purchased. (d) Research and development costs are expensed when incurred, except ...
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LeShawnte Enterprises' comparative balance sheets included inventory of $94,300 at December 31, 2018, and $73,100 at December 31, 2019. LeShawnte's comparative balance sheets also included accounts payable of $57,900 at December 31, 2018, and $39,000 at December 31, 2019. LeShawnte's accounts payable balances are compo...
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Change the triple integral {eq}\displaystyle \iiint_Q f(x, y, z) \,dV {/eq} into an iterated integral in cylindrical coordinates and evaluate it, where {eq}Q{/eq} is the solid between {eq}z = \sqrt{x^2 + y^2} {/eq} and {eq}x^2 + y^2 + z^2 = 2 {/eq} and {eq}f(x, y, z) = 1 {/eq}.
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A firm reports the following income statement for 2021: Sales (25,000 units) $175,000 Variable Costs $75,000 Fixed Costs $32,000 Income (Loss) Before Taxes $68,000 Increase in income before taxes for each unit sold in 2022 assuming a 20% increase in sales and no other changes is: A. $6,800 B. $7,360 C. $7,816 D. ...
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The number of births of first children in a certain city is approximated by {eq}n(t)= 25.6e^{0.013t} {/eq}, where n(t) is measured in thousands and t is measured in years, with t=0 corresponding to the beginning of 1997. a. How many births of first children were there in the city at the beginning of 1997? b. At what...
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Spaceship A is moving at speed c toward spaceship B, which is at rest. Spaceship B fires a laser beam toward the approaching spaceship A, with speed of light c, as measured by observer in spaceship B. A) c + u B) c C) c - u D) u Explain your reasoning.
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What is the right function for the limit $$\lim_{n\to\infty}\sum\limits_{0\leqslant{k}\leqslant{2n}} {\frac{k}{k+n^{2}}}$$?
2
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Hanover Inc. is considering a project that will require an initial investment of $2,200,000 and will generate after-tax cash flows of $550,000 for three years followed by $450,000 in year four and $300,000 in year five. Calculate the IRR. a. 8% b. 14% c. 7.39% d. 6.14%
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In December 2016, Sales Acre Inc. had 1,000 sales checks cashed, for a total of $450,000. 35% of the sales are collected in the month of sale. 60% are collected in the following month. The other 5% of the sales are uncollectible. The Accounts Receivable balance at December 31, 2016, is?
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A monopolistically competitive firm operates on the _____ of their average total cost curve. This ensures that marginal cost is _____ average total cost a. Rising portion; below b. Declining portion; below c. Rising portion; above d. Declining portion; above
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How many non-zero terms of the Taylor series of f(x) = sin x estimates sin(π/4) within 0.01?
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A diffraction grating has 5500 lines/cm. When a beam of light is incident on this grating, the second principal maximum of the interference pattern appears at 62.2{eq}^\circ {/eq} away from the central maximum. What is the wavelength of the light?
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What is a lower bound for the price of a 1-month European put option on a non-dividend-paying stock when the stock price is $12, the strike price is $15, and the risk-free interest rate is 6% per annum?
2.93
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Assume the spot British pound is $1.6800 and the six-month forward rate is $1.6710. What is the implied cost of carry in a rational market, as a percentage of the spot rate, assuming a six-month risk-free rate of 4.5 percent in the United States?
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A $1000 bond with semi-annual coupons at 4% yield 5.38%. If the bonds mature in 12 years, what is the Macaulay duration?
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A certain diet claims to lower cholesterol by an average of 25 points with a standard deviation of 8. Find the probability that the mean amount lowered will be less than 23 points in a sample of 16.
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Company A Company B Cost of goods sold $540,000 $860,000 Gross margin 240,000 100,000 Sales 840,000 960,000 Variable manufacturing costs 450,000 690,000 Contribution margin 390,000 270,000 Fixed manufacturing costs 130,000 110,000 Operating income (loss) $260,000 $160,000 Assume that Company B has excess capacity and ...
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Sunland Company acquired all of the outstanding common shares of Grasshopper Co. on January 1, 2017, by issuing 32,000 shares of $2 par value common stock having a fair market value of $12 per share. Grasshopper Co. had net assets with a fair market value of $352,000. During 2017, Grasshopper reported net income of $48...
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What is the uncertainty in the position of an electron when its velocity is known to 5% the speed of light?
3.86e-12 m
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Capes Company produces a product with a selling price of $75 per unit. The following variable costs have been determined for this product: Direct materials $19 Direct labor $10 Variable overhead $6 The fixed manufacturing overhead is $350,000 and the fixed sell...
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If the central bank increases the amount of discount window loans given to the commercial banks in the system, the money supply will: a. decrease because the monetary base will decrease. b. increase because the monetary base will increase. c. increase because reserves will decrease. d. increase because currency dra...
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A company has set up a standard cost for one of its products, 35,000 units per month. The standards call for 1 lb. of raw materials at $3.20 per lb. The company actually produced and sold 40,000 units using 85,000 lbs. of raw materials at an average cost of $2.95 per lb. The materials price variance is: ____?
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Molteni Motors Inc. produces three products. Information about each product is as follows: Product 1Product 2Product 3 Direct materials used per unit of product$12$24$15 Direct labor hours per unit of product246 Number of units produced annually30,00025,00040,000 Management is considering the discontinuance of the ...
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The reference population for a national salary study was 1,750,000 working full time in a particular field. There are 3,000 employed in this field in a city. A sample of 100 individuals was collected from the city. The average salary for the individuals in the sample was $55,000 and the population standard deviation is...
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The Assembly Department had 60,000 units 60 percent complete in Work-in-Process Inventory at the beginning of April. During April, the department started and completed 160,000 units. The department started another 40,000 units and completed 30% as of the end of April. Compute the equivalent units of work performed dur...
196,000
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Assume that the MNO Company normally sells 75,000,000 units and is considering a price cut from $4.00 to $3.75 on its product. The unit variable cost of the product is $2.50. At the same time, MNO plans to increase advertising by $15,000,000. How much must sales increase in units in order for MNO to break-even these c...
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Business Solutions, Inc., has experienced a steady growth in sales over the last 3 years. However, they are now at full capacity and must consider some long-term financing options. One of the financing options currently under consideration is issuing bonds. To finance the purchase of some fixed assets at a cost of $4...
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Let A and B be two alternatives whose expenses are mutually exclusive. Let i = 10% per year. Year A B 0 -10,000 -10,000 1 -5,000 600 2 -5,000 600 3 -5,000 600 4 2,000 600 Which alt...
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By definition, income tax expense represents the amount of: a. current income tax payable. b. accumulated income taxes payable. c. income taxes payable plus current income taxes. d. none of these is correct.
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What is the amplitude, period, and horizontal shift of $y=\cot(4\pi x)$?
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In the long run, a depreciation of the dollar against other currencies would: A. increase US exports and make the US permanently more prosperous. B. increase the US price level with no lasting change in US exports. C. reduce US exports and decrease the US price level. D. increase US imports and increase the US pric...
A
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What is the probability that the average amount of time spent by a sample of 25 office workers reading e-mail each day is less than 4.5 hours, given that the mean amount of time spent by office workers reading e-mail each day is 4.6 hours with a standard deviation of 1.5 hours and the distribution is approximately norm...
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Which of the following is likely to have been adopted by Congress in the 1990s? A) A weighted average price level target, with a small weight on the level of output. B) A quantity theory target, with a neutralization for the expected rate of inflation. C) A price level target for the next five years. D) The Taylor ...
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The following information pertains to the use of stocks of ABC Company. Current assets $250,000 Total assets $800,000 Long-term debt $350,000 Total stockholder equity $350,000 Gross profit rate 35% Net profit rate 10% Assets are proportionately liquidated and long-term debt is assumed to have a 20% intere...
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Oxford Company reports the following information for the current year, which is its first year of operations: Beginning fixed manufacturing overhead in inventory $249,700 Units produced during the year 30,000 Units sold during the year 20,000 Selling price per unit $460 Direct materials per unit $170 Direct labor pe...
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A firm is experiencing a decline in sales and decides to reduce its dividend payments. What is this policy called? a. restrictive dividend policy. b. paid-in capital dividend policy. c. residual dividend policy. d. liquidating dividend policy.
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Consider an asset that costs $885,600 and is depreciated straight-line to zero over its nine-year tax life. The asset is to be used in a six-year project; at the end of the project, the asset can be sold for $135,900. If the relevant tax rate is 35 percent, what is the after-tax cash flow from the sale of this asset?
191655
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Suppose that X has a Weibull distribution with {eq}\beta = 1 \enspace and \enspace \delta = 2{/eq}. Determine the following: a) P(X {eq}\leq{/eq} 1) b) P(X {eq}\geq{/eq} 1)
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Assume that all firms in a competitive industry have cost curves given by the following: {eq}TC = 81 + 4q + q^2 {/eq}. At what price will a firm exit the market in the long run? A. 2. B. 4. C. 9. D. 22. E. More information is required to answer this question.
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What is the mass of a cylindrical metal rod whose cross section is 6 mm x 6 mm, length is 40 cm, and the density of the material is 3.2 g/cm^3?
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What is the solubility (in mol/L) of Hg2S when dissolved in 3.20 x 10-2 M KI? (Ksp = 1.1 x 10-18 for Hg2S; Kf = 1.01 x 10-20 for Hg2I2+2.)
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Jane and Diane both have taxable income of $300,000 and use the cash method of accounting. JaneDiane Marital StatusMarried and filing a joint return Single Estimated income tax payment for last year $4,500$2,200 Estimated tax payment this year$8,500$5,000 Jane and Diane's respective shares of tax for the current yea...
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Assume a husband and wife are deciding what to watch on TV on a Friday night and that their payoffs are in units of happiness. There are two choices that each can say they want to watch: a football game or ice skating competition. If the husband says he wants to watch football and the wife says she wants to watch ice s...
0.4444
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Ming Company sells its product for $100 per unit. Variable manufacturing costs are $75 per unit, and fixed manufacturing overhead is $250,000. Variable selling and administrative costs are $10 per unit, and fixed selling and administrative costs are $45,000. The company sells 20,000 units. How much is Ming's contributi...
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A company manufactures a variety of products. One division makes two injectable enhancers for medical dogs. Product X has sales of $100,000, variable costs of $50,000 and fixed costs of $40,000. Product Y has sales of $50,000, variable costs of $10,000 and fixed costs of $20,000. The products share common fixed costs o...
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Bill plans to open a self-serve grooming center in a storefront. The grooming equipment will cost $480,000, to be paid immediately. Bill expects aftertax cash inflows of $105,000 annually for 11 years, after which he plans to scrap the equipment and retire to the beaches of Nevis. The first cash inflow occurs at the en...
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Calculate the bond length of HF from the data given in the table below. wavenumber cm-1 Transitions observed (molecule in ground electronic state) rotational quantum number (J) vibrational quantum number (v) % Intensity 4163.48 0 0 0 1.7 4159.79 0 0 1 0.0 4156.13 0 0 2 0.0 4152.52...
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Danny's Discount Furniture paid an annual dividend of $3.10 a share this past year. Today, the company declared an annual dividend of $3.45 a share to be paid one year from today. The company also announced that in the future, they will increase their dividends by 2.8 percent a year. What is the value of this stock if ...
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The following company information is available: Direct materials used for production 38,500 gallons Standard quantity for units produced 37,000 gallons Standard cost per gallon of direct material $6.50 Actual cost per gallon of direct material $7....
a
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The number of people with double-jointed (hyperextended) arms is just over 10% of the population. The average person with double-jointed arms has an extra 1.25 cm in their height. In an elementary school with 500 students, what is the average height of all students?
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Suppose that a molecular ion with charge -10e is embedded within the 6.0-nm-thick cell membrane of a cell with membrane potential -70 mV. What is the electric force on the molecule?
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At December 31, 2015, Waterways had 495,000 shares of common stock and 6,500 shares of 5%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or the common stock in 2015 or 2014. Net income for 2015 was $8,120,000. For 2015, diluted earnings per share amounted to ...
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If you are considering two portfolios- one with a beta of 1.1 and one with a beta of 2.0 which one is most likely to have a higher return during a period of inflation? a. The portfolio with the beta of 1.1 will have higher returns. b. The portfolio with the beta of 2.0 will have higher returns. c. They will have the...
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Which is correct regarding the two statements: 1. Only shifting the AD curve up raises the equilibrium output. 2. Only a fall in the slope of the AD curve raises output. a. Statement 1 is true; statement 2 is true b. Statement 1 is true; statement 2 is false c. Statement 1 is false; statement 2 is true d. Stateme...
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To improve the utilization rate, we can: I. Cross-train the workers II. Adopt flexibility equipment III. Shift from MTS systems to MTO systems Choose the most appropriate. A) I B) II C) III D) I and II E) I, II, and III
D
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Kreutzer, Inc. just paid $1.50 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 1.5%. If you require a rate of return of 11%, how much are you willing to pay to buy a share of this stock today?
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This month, Patel Company recorded the following: - Purchased $1,800 of direct materials on account with credit terms of 2/10, n/30. - Returned $100 of materials to the supplier before payment. - Paid $100 for direct materials that had been returned to the supplier. Which of the following would be the correct jo...
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You purchased a share of stock for $12. One year later, you received $1.25 in dividends and sold your share for $18. What was your total return on this investment? A. 44.29% B. 38.96% C. 26.04% D. 37.5%
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From 10 married couples, we want to select a group of 6 people that is not allowed to contain a married couple. First pick has 20 choices, second 18, etc, giving 20*18*16*14*12 = 967680. Of those, we divide by 5! to remove duplicates of sampling, where ABCDE is the same group as EDCBA. That gives me 8048. What is the e...
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Which of the following is true? a. Average total cost intersects marginal cost at the minimum of marginal cost. b. Average variable cost intersects marginal cost at the minimum of average total cost. c. Average total cost intersects marginal cost at the minimum of average total cost. d. Average total cost intersect...
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Which of the following statements about the M1 money supply is true? A) The largest component of the money supply is currency, but demand deposits are also important. B) Coins and paper money is issued by the U.S. Treasury, while demand deposit accounts are held in Federal Reserve Banks. C) The largest component of ...
A
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Which of the following is correct regarding the relationship between a bond's yield to maturity and coupon rate? a. If the bond is selling at a discount, the yield to maturity is equal to the coupon rate b. If the bond is selling at a discount, the yield to maturity is greater than the coupon rate c. If the bond is ...
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