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A company produces two types of riding lawn mowers: the Hero and the Warrior. Each type requires both hand assembly and quality assurance inspection. The company has a total of 240 hours of labor available for assembly and 160 hours for inspection. The average time required to complete a Hero is 2 hours of assembly and...
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If the current assets are $750,000, net fixed assets are $1,500,000, long-term debt is $800,000, and equity is $750,000, then what is the total amount of interest paid? a. $150,000 b. $60,000 c. $100,000 d. $950,000
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Gamma Corporation has bonds on the market with 15 years to maturity, a YTM of 7.43 percent, and a current price of $1,023. What must the coupon rate be on the company's bonds?
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Warp Manufacturing Corporation uses a standard cost system to collect costs related to the production of its ski lift chairs. Warp uses machine hours as an overhead base. The variable overhead standards for each chair are 1.2 machine hours at a standard cost of $18 per hour. During the month of September, Warp incurred...
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Riverbed Company estimates that annual operating cash flows will be $290,000 for the first three years of a project. During years 4 and 5, the project will generate $270,000 annually in cash inflows. What is the average annual operating cash inflow over the five years? Average annual operating cash inflow$_________
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How many years will it take for $500 to become $800 at 6% interest compounded quarterly? Show work.
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If the total emissions in the two countries is to be fixed at 2000, and each country plans to produce an equal amount of pollution, then the cost of pollution abatement in each country will be: A. 450 in the United States, 450 in Canada. B. 600 in the United States, 300 in Canada. C. 300 in the United States, 600 in...
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In the production process, materials are added at the start of work on each unit. If all units of product are complete except for labor and overhead, the equivalent units for direct materials are: a) equal to the equivalent units for direct labor and manufacturing overhead. b) equal to the units completed and transfe...
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Use the method of cylindrical shells to find the volume V generated by rotating the region bounded by the curves y = 9sin(5x^2), y = 0, 0 ≤ x ≤ sqrt(pi/5) about the y-axis.
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Consider two events in a single inertial system with an orientation where $x = y = z$ is a direction of motion for observers in the second system with respect to the first. Event 1 occurs at the origin with time $t = 0$. Event 2 occurs at $x = 3655$ m at time $t = 3$ $\mu$s. The time between the events as measured by t...
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If we define government purchases as government spending less transfer payments, the statistical discrepancy is most likely to be eliminated when we _____. a. use government purchases as our measure of aggregate demand, rather than government spending b. use government spending as our measure of aggregate demand, rat...
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How many sellers could there be of lemons, assuming that these sellers have an equal number of perfectly reliable cars in their fleets? a) More than 10 but less than 100 b) More than 100 c) 10 or fewer d) None of the above
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You are managing a {eq}\$10 {/eq} million portfolio of government bonds and plan to sell {eq}\$1 {/eq} million of these bonds and replace them with S&P 500 stock index futures. One contract covers {eq}\$250 {/eq} of stock value. If the beta of your portfolio was {eq}0.8 {/eq} before the transaction, what beta will...
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Once financial statement fraud is suspected, how should the fraud investigator proceed? a. Call the district attorney to begin criminal proceedings. b. Determine whether the financial statements agree with the general ledger balances. c. Perform a Benford's Law test. d. Interview the accounting department staff.
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A company purchases a machine for $12,600. The machine has a useful life of 7 years and no residual value. The straight-line depreciation method is used. What is the amount of depreciation expense at the end of the fifth year? a) $1,161 b) $1,800 c) $1,332 d) $1,730
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Brenda's Bed Co. uses a periodic inventory system and the LIFO inventory method. The following data is available for the month of September 2018: Beginning inventory: 30 units at $10 Net purchases: 120 units at $12 Net markups: $8 Net markdowns: $10 Net Sales: 130 units at $14 What is the amount of cost of goods ...
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Evaluate the integral. {eq}\int_{-2}^{3} \mid x - 1 \mid \;dx{/eq}
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What factors would cause the aggregate demand curve to shift to the left? Check all that apply. a. a reduction in the markup ratio b. a reduction in the government spending c. a rise in the price level d. a decrease in the price level
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A string wrapped around a uniform solid disk of radius r. The disk can rotate free about its axis with a moment of inertia 1/2MR^2. The loose end of the string is attached to a block. The block and disk each have mass m. Find the magnitude a of the linear acceleration of the block as the block descends.
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Which of the following would not appear on a firm's accounting statement? a. Insurance costs b. Sunk costs c. Explicit costs d. Implicit costs e. Fixed costs
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During its first year of operations, Cole's Electronics Inc. issued 1,000,000 shares of common stock for $25 per share and issued 20,000 shares of common stock to accountants for $500,000 of professional services. The articles of incorporation authorize 5,000,000 shares of common stock with a par value of $1 per share ...
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Lodge Corporation, which manufactures Products W, X, Y, and Z through a joint process costing $15,000, has the following data for 2016. Sales Value Product Units Produced Split-Off W $10,000 $5,000 X $6,000 $2,500 Y $16,000 $3...
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Find the uncertainty in the position of an electron when its velocity is known to 5% the speed of light
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What is the current in a 150-turn solenoid with a length of 31 cm and a cross-sectional area of 15 cm² if the magnetic field in the center of the solenoid is 0.042 T? Express your answer using two significant figures.
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According to the Taylor rule, if actual inflation falls from 4 percent to 3.5 percent and the output gap decreases from 2 to 1 percentage point, the Fed should target an interest rate that is: A) 0.5 percentage point higher than before. B) 1 percentage point higher than before. C) 1 percentage point lower than befor...
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What is the molar solubility of {eq}Mg(OH)_2 {/eq} in a particular buffer solution containing 0.250 M {eq}CH_3NH_2 {/eq} and 0.150 M {eq}CH_3NH_3^+Cl^- {/eq}? (Kb for {eq}CH_3NH_2 {/eq} is 0.000440, and Ksp for {eq}Mg(OH)_2 {/eq} is 5.61e-11)
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You have the following information about a project activity: Normal time (weeks)Shortened time (weeks)Normal cost per week of completion (euros)Cost per week of shortened time (euros) 2 1 3,000 5,000 Which of the following best describes the relationship between the normal time for the activity and the cost associat...
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What is the maximum value of f(x) = (4x + 3)e^{-x} on the interval -3 ≤ x ≤ 2?
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Suppose that individuals buy everything with income and that the real wage equals average labor productivity in all firms. Which of the following policies would increase real GDP the most? A. cut taxes by $100. B. raise the real wage by 1%. C. make firms pay unemployment insurance to workers who become unemployed be...
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What is the net present value of a project that requires a net investment of $45,000 and produces net cash flows of $10,000 per year for 8 years? Assume the cost of capital is 13%. 58,125.05 51,207.25 57,073.95 55,022.09
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Suppose that the nominal exchange rate is 1.25 Canadian dollar per US dollar. We would expect that if purchasing power parity holds, the Canadian price level will _____ by _____ than the US price level. A) rise; less B) fall; less C) rise; more D) fall; more
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Let $S=\{(x,y,z,w)| x-y+z-w=0\}$. Find an orthogonal basis of S. What I did is that I let $z=0,w=0$. I got $(1,1,0,0)$ as a basis for S. Afterward I found the orthogonal complement of this vector, which is orthogonal to it. I got $(1,-1,0,0)$. Then I let $z=1,w=0$. I got $(1,0,1,0)$. Then I found the orthogonal complem...
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Norton Corporation has received a request for a special order of 9,700 units of product Y for $39.00 each. The normal selling price of this product is $45.20 each, but the units would need to be modified slightly for the customer. The normal unit product cost of product Y is computed as follows: Direct materials$18.0...
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Given two points (x1,y1) = (100,100) and (x2,y2) = (200,400), determine if this represents an increase or decrease in slope.
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Which of the statements is correct concerning the statement of cash flows? a. It reports the cash inflows and outflows of a company and relates them to the financial statements. b. It reports the cash inflows and outflows for a company during an accounting period. c. It provides a record of a company's financial per...
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A sample of 25 students enrolled in the university indicates that x-bar = $315.40 and s = $75. Using the .05 level of significance, is there evidence that the population mean is above $300? a. No, because 300 is below the lower limit of the confidence interval. b. Yes, because 300 is below the lower limit of the confid...
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A firm has net working capital of $480, net fixed assets of $2,328, sales of $6,200, and current liabilities of $350. How many dollars worth of sales are generated from every $1 in total assets?
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Fiam Industries projects the following revenues from their competitor's possible strategies choices: Competitor's strategy Probability of competitor's strategy Revenue ($ millions) Expand Production 0.27 1,664.7 Reduced production 0.37 2,620.7 Fiam...
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Assume the following information: direct labor hours for the coming year, 60,000; direct labor rates, $9; and manufacturing overhead, $720,000. What will be the per-unit overhead applied to each product under an estimated rate based on direct labor hours, if each product requires 2 hours of direct labor?
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Rowan Company currently has a net profit margin of 9.3 percent, debt ratio of 42 percent, total assets of $5,413,101, sales of $6,928,691, and a dividend payout ratio of 54 percent. The firm's management desires a sustainable growth rate (SGR) of 17 percent but does not wish to change the company's level of debt or its...
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A single-product company prepares income statements using both absorption and variable costing. Manufacturing overhead cost applied per unit produced in Year 2 was the same as in Year 1. The Year 2 variable-costing statement reported a profit, whereas the Year 2 absorption-costing statement reported a loss. A possible ...
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Calgon Corporation is currently paying a dividend of $1.40. They recently announced that due to a major patent loss, they are planning to lower their dividend to $1.00. They have been basing their projected dividend growth on the assumption of a 3% growth rate. This is likely to be a long term trend, and thus a revisio...
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How do you find the arc length of the curve y = (4-x^(3/2))^(2/3) over the x-interval (0, 1)?
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At the end of the period, the balance of the Raw Materials Inventory account equals: a. the cost of direct materials used on the jobs in process during the period. b. the cost of direct materials issued from the storeroom during the period. c. the cost of direct materials used in production during the period. d. th...
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Use the bond table and formula below to answer the following question. BOND TABLE 5% 6% 7% 8% 9% 10% 10 Years 8.11 8.53 8.95 9.35 9.74 10.12 20 Years 7.26 7.58 7.88 8.16 8.42 8.68 ...
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Currently, the price is $35, and the predicted price in one year is $42. A bond has a duration of 10 years. Using the duration approximation, what is the predicted percentage price change for this bond?
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Market price has increased from $2.50 to $3.00. Which of the following is a possible explanation? A. Elastic demand, quantity supplied increased more than the price. B. Elastic demand, but quantity demanded increased more than the price. C. Inelastic demand, but the quantity demanded increased more than the price. ...
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The indicated function {eq}\displaystyle y_1(x) = e^x {/eq} is a solution of the given differential equation. Use the formula {eq}\displaystyle y_2(x) = y_1(x)\int \frac{e^{-\int P(x) dx}}{y_1^2(x)} dx {/eq} to find a second solution {eq}y_2(x) {/eq}. {eq}y'' - 2y' + y = 0 {/eq}
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When a change is made in the method of depreciation used for income tax purposes, it is generally considered a: a. Change in accounting principle b. Change in accounting estimate c. Correction of error d. Change in reporting entity e. Change in accounting basis
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A company's income statement shows EBIT of $1.000, interest of $250, taxes of $150, and depreciation of $150. The appropriate tax rate is 35%. Required: What is the firm's net cash flow from operating activities?
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A simplified model of Earth's magnetic field has it originating in a single current loop at the outer edge of the planet's liquid core (radius 3000 km). What current would give the 57-{eq}\mu{T} {/eq} field measured at the north magnetic pole?
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Sue owns an apartment building and has provided you with the following data: Market Value Basis Building 750,000 400,000 Land 250,000 150,000 Mortgage 250,000 250,000 Total 1,250,000 800,000 Sue has sold the entire apartment building for 1,500,000 after providing an additional 100,000 to reduce the mortgage balan...
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Which of the following statements is correct? a. An increase in a firm's net profit margin or an increase in its dividend payout will increase its retained earnings break point. b. When thinking about a company's financing requirements, the CFO should focus not only on whether the firm is financed with debt or stock,...
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Compared to hiring a white worker, an employer is $5 less happy when he hires a black worker and is $6 less happy when he hires a Hispanic worker. The frim faces hourly wage rates of $20 for whites, $16 for blacks, and $14 for Hispanics. Which of the following describes the firm's hiring decision? a. The firm hires al...
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Which of the following statements is correct? A) If one project has a higher IRR than another, then the IRR of the combined project is always a weighted average of the IRRs of the two projects, where the weights represent the proportion of the funds invested in the two projects. B) If one project has a higher IRR tha...
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Calculate the volume of the solid region bounded above by the sphere {eq}x^2 + y^2 + z^2 = 25{/eq} and below by the triangular region with vertices (0, 0, 0), (5, 0, 0), and (0, 5, 0).
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Which of the following is not an alternative to pursuing an entire markets strategy? a. Micromarketing. b. Narrowing the market to include only specific needs. c. Strategic alliances. d. Cost-cutting.
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Black Hill Inc. sells $100 million worth of 10-year, 10.5% coupon bonds (interest paid annually) for $986 million. If the flotation costs on these bonds are $7 million, what is the after-tax cost of debt for Black Hill if its marginal tax rate is 35%?
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Boisjoli Enterprises is an all-equity firm that has 360,000 shares of stock outstanding. The company is in the process of borrowing {eq}\$5.4 {/eq} million at {eq}6.2 {/eq} percent interest to repurchase {eq}90,000 {/eq} shares of the outstanding stock. What is the value of this firm if you ignore taxes? a. {eq}\$1...
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One factor that leads to understatement of unemployment is: (a) The existence of discouraged workers. (b) The creation of cyclical unemployment. (c) When there is no alternative job available. (d) There is negative correlation between wages and unemployment rate.
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Given that $\textrm{var}(X) = 5$, $\textrm{var}(Y) = 2$, and $\textrm{Cov}(X, Y) = 1$, find $\textrm{Cov}(2X - Y, X + 2Y)$.
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Acklac Corporation uses the weighted-average method in its process costing system. This month, the beginning inventory in the first processing department consisted of 800 units. The costs and percentage completion of these units in the beginning inventory were: Cost Percent Complete Materials costs $16,000 75% Conve...
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A new software application is being evaluated for the company you work for. It costs $35,000 initially. It has an expected useful life of five years, and will increase the firm?s cash flow by $12,000 in the first year and $5,000 in each of the next four years. For this software application, the payback period is: a) O...
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In a class of 160 students, 40% are Finance majors. A sample of 20 is selected from the class. What is the probability that four or more students in the sample are Finance majors? Show your work. a. 0.0671 b. 0.8633 c. 0.1367 d. 0.9329
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Calculate the work done in carrying a charge Q=2 C from (0,5,0) to (0,0,5) m along the straight line path C: y=x, z=5-x. The electric field intensity is {eq}E= -y^2a_x + 2xya_y {/eq} V/m.
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Consider the demand curve of the form Q=a-bP. If a is a positive real number, and b=0, then the inverse demand curve is A) a horizontal line B) not defined C) a vertical line D) none of the above
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Why is the sequence defined by $$x_{n+1} = \sqrt{2+\sqrt{x_n}}, x_0 = 0$$ convergent? And why does Wolfram Alpha say that the limit is 1?
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Which of the following is an example of a real asset? a. A stock b. Accounts receivable c. Money d. Property
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Quigley Inc.'s bonds currently sell for $1,080 and have a par value of $1,000. They pay a $100 annual coupon and have a 15-year maturity, but they can be called in 5 years at $1,125. What is their yield to call (YTC)?
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You read in The Wall Street Journal that 30-day T-bills are currently yielding 5.0%. Your brother-in-law, a broker at Safe and Sound Securities, has given you the following estimates of current interest rate premiums: Inflation premium = 3.15% Liquidity premium = 0.2% Maturity risk premium = 1.55% Default risk prem...
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On January 2, 2014, Frantic Furnishings acquired $81,000 of merchandise on account from Elite Industries, its supplier. The terms of the purchase were 2/10, n/30. Frantic Furnishings paid the invoice on January 13, 2014. If Frantic Furnishings had not paid the invoice within the discount period, what would be the amou...
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There are hundreds of high school students in need of algebra help services in San Diego. Dozens of companies offer math services, and the parents who seek out a math help view the quality of the assistance in math at the different companies to be largely the same. a. yes, meets all assumptions b. No, no free entry, ...
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Kella Corporation manufactures a variety of products. For the upcoming year, it expects the following results. 10,000 units 20,000 units Direct materials $15 $35 Direct labor $20 $15 Variable overhead $5 $10 Fixed overhe...
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During 2017, Alpha Corporation had net sales of $16.8 million, on credit. Its gross profit margin was 28 percent, its debt ratio was 23 percent, and its ROE was 14.24 percent. What was its accounts receivable balance at year-end, based on the given data? A. $7,601,000 B. $1,075,000 C. $6,205,000 D. $1,282,000 E. $...
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Which of the following statements is correct? a. Since the statement of cash flows shows how cash was generated and used during a period, it is the most important financial statement. b. The accounting identity states that assets = liabilities + common stock. c. The income statement shows the firm's operating result...
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James is considering investing in one of two well-diversified portfolios. Portfolio A has an expected return of 22% and a beta of 1.57, and Portfolio B has an expected return of 19% and a beta of 1.22. Assuming he is a rational risk-averse investor and the risk-free rate is 6.2%, which of the two portfolios should he...
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If the first person to win $n$ games wins the match, what is the smallest value of $n$ such that $A$ has a better than $0.8$ chance of winning the match?
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Let $a$ be a positive integer. How many solutions modulo $p^2$ are there to the congruence $x^2 \equiv 1 \pmod{p^a}$?
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A company is considering a project with cash flow projections: an initial outlay of $45,000 followed by annual inflows of $13,000 for six years, and an additional one-time inflow of $10,000 at the end of year 6. At a 10% cost of capital, what is the project's MIRR?
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You have been given the following information on a part: Annual demand 400 units Working days per year 250 days Lead time (in days) 10 days Safety stock 50 units Average daily demand 2 units Order cost $5...
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ABC Company is financed 50% by equity and 50% by debt. The debt has an yield to maturity of 10%. The expected rate of return on the equity is 16%. What is ABC's weighted average cost of capital (WACC)?
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Between August 2011 and August 2012 the number of economic part-time workers decreased from 8.8 million to 8.0 million. Assuming the change resulted from economic part-time workers transitioning to full-time jobs, this change created which of the following? a. no change to the U-3 unemployment rate. b. a decrease to ...
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In computing cost of debt used for WACC calculations, firms a) use interest paid by the firm during the year divided by total debt outstanding at the beginning of the year. b) must adjust for tax since interest is tax deductible. c) need to account for the fact that debt payments are not tax deductible. d) are usin...
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Sooyung, Inc., produces a variety of products. One product, KR326, has a normal selling price of $52.10 per unit and has unit variable expenses of $36.80. A special order has been received at Sooyung, Inc., for 1,400 units of product KR326 at a price of $30.40 per unit. Normal production and sales would be unaffected b...
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1. Use Chebyshev's theorem to find what percent of the values will fall between 215 and 261 for a data set with a mean of 238 and standard deviation of 9.
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Han Products manufactures 28,000 units of part S-6 each year for use on its production line. At this level of activity, the cost per unit for part S-6 is: Direct materials$3.80 Direct labor10.50 Variable manufacturing overhead3.00 Fixed manufacturing overhead13.00 Total cost per part$30.30 An outside supplier has off...
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The equation of the tangent line to the curve {eq}y = x + \sin x{/eq} at the point {eq}(0,0){/eq} is: a. {eq}y = x{/eq} b. {eq}y = 2x{/eq} c. {eq}y = 3x{/eq} d. {eq}y = x + \sin x{/eq}
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Find the value of {eq}\frac{dy}{dx} for the equation {eq}\displaystyle \ln \left( \frac{y}{x} \right) = xy {/eq}.
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A private not-for-profit hospital had the following income statement data available: Revenues $600,000 Expenses 450,000 Expenses - capital assets 300,000 Unrestricted net assets 180,000 The hospital provides services for which it bills insurance companies and patients. A commitment exists to bill insurance compan...
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The required return on Alpha's stock is 12%, and the dividend yield is 5%. The required return on Beta's stock is 15%, and the dividend yield is 4%. Alpha's dividend is expected to grow at a constant rate {eq}g_A {/eq} forever. Beta's dividend is expected to grow at a constant rate {eq}g_B {/eq} forever. Assuming th...
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A government issues bonds with a face value of $700,000. The issue price is $655,000. The bonds pay 4% annual interest, and the market rate of return is 5%. The annual interest expense is: a. $26,250 b. $16,000 c. $16,750 d. $16,100
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Kenear Equipment had the following values for 2015: Interest paid $500; Taxable Income $6,500; Required Return on New Investment 10%; Cash flow from assets $300; Depreciation $1,200; Gross profit margin 30%; Sales $10,000; Net working capital $2,500; and Tax rate 35%. Given these data, what is the net cash flow from o...
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An open market operation increases the money supply when the Federal Reserve: a) buys bonds from banks, which increases bank reserves. b) sells bonds to banks, which increases bank reserves. c) buys bonds from banks, which decreases bank reserves.
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Find the largest value of C such that there exists a unique solution to the initial value problem (IVP): $y'' + (y')^2 + \cos y = 0$ with $y(0) = C$ and $y'(0) = 0$.
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One of the chief concerns of financial statement analysis is the ___. This is the income earned, as reported, from the regular operation of the business. a. cash flow statement b. net profit margin c. earnings d. operating profit e. None of the above
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Walter Utilities is considering the purchase of a new machine for $30,000. The machine would generate annual cash inflows of $10,000 and annual cash outflows of $6,000 over its 10-year life. The firm's required rate of return is 12%. Given these data, what is the machine's NPV? Do not round your intermediate calculati...
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An electronics store has a choice of 3 different microprocessor chips, 5 different hard disk drives, and 3 different flat screen models for a computer. If a customer buys one of each of these items, how many different computer systems can the store offer to customers?
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Which of the following would not be a consequence of a binding price floor? A. An increase in aggregate demand B. A deadweight loss C. A surplus of the good in question D. None of the above
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Assume that today is December 31, 2016, and that the following information applies to Artic Supply: 1. After-tax operating income [EBIT(1 - T)] for 2017 is expected to be $450 million. 2. The depreciation expense for 2017 is expected to be $180 million. 3. The capital expenditures for 2017 are expected to be $400 mi...
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Jekyll Company had income before income taxes of $38,000 in 2014. In addition, during the year, it recorded a loss from a disaster of $25,000 and a settlement from a successful lawsuit of $16,000. Assuming a 30% income tax rate, what is Jekyll's net income for 2014? a. $19,300 b. $15,500 c. $11,000 d. $8,700
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