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Gunn Company makes two products in a single facility. These products have costs: Product A Product B Variable manufacturing costs$28.50$17.20 Fixed manufacturing overhead$18.50$24.80 Unit product cost$47.00$42.00 Additional data concerning these products are listed below: Product AProduct B Mixing minutes pe...
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You are in the market for a used 2006 Honda Accord. You know that half of the 2006 Accords are lemons and half are peaches. If you could be assured that the Accord you were buying were a peach, you would be willing to pay up to $10,000. On the other hand, you would only be willing to pay $2,000 for a lemon. You have no...
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The number of 3 mm by 3 mm squares that will fit into a space 2.8 cm by 3.5 cm is (A) 11 (B) 12 (C) 13 (D) 14 (E) 16
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Find the critical points of the function f(x,y) = x^3 +y^3 -3xy. A. (0,0) only B. (0,1) only C. (1,0) only D. (0,0) & (1,1)
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Calculate the final temperature when 30.0 g of water at 88.0 C is mixed with 100.0 g of water at 17.0 C. {eq}\displaystyle 1) 43.2 C 2) 31.8 C 3) 25.3 C 4) 22.5 C 5) 65.0 C {/eq}
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Which of the following bond price scenarios could occur as a result of a decrease in the level of the market interest rate, if the bond in each case pays $100 in annual interest payments? a. the price of a 10-year bond would increase from $750 to $980, but the price of a 10-year zero-coupon bond would remain unchanged...
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Given the region bounded by the curves $y = x$ and $y = x^2$, find the volume of the solid obtained by rotating the region about the line $y = x$. The sketches show the region and the solid with a disk as a typical cross-section.
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If the last dividend was $3.00 and dividends are expected to grow at a rate of 7% forever, then what is the P0 if the P/E ratio is 12? a. $37.80 b. $36.36 c. $45.00 d. $28.57
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F Ltd. deducted the following reserves on its income statement for the current year: $32,000 reserve for doubtful accounts, $47,000 reserve for warranty claims, and $249,000 reserve for amounts due after the end of the year for merchandise sales with two- and three-year payment terms. Determine the amount that is not ...
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Otobai Publishing has a line of credit with their bank and must keep a $10,000 minimum balance each month. There is no outstanding loan at the beginning of January. Loans can be borrowed and repaid in any amount. The cash balance on January 1 is expected to be $12,000. Sales were $35,000 in December, and are budgeted t...
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An investor has a total of $250,000 to invest in either stocks or Treasury bills. The investor must invest at least $50,000 in the stock portfolio, and the remaining funds to be invested in Treasury bills. At least 25 percent of the amount invested in stock must be in a stock whose risk is relatively high, and no more ...
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A $1 per unit sales tax paid by the retailer has the potential to change the markup. If the sales tax is a lump sum tax, then the markup will: A. fall by less than $1. B. rise by more than $1. C. fall by more than $1. D. rise by less than $1. E. Not change.
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Find {eq}f'' (\frac{\pi}{4}) {/eq}, given {eq}f(x) = 3x \cot x {/eq}.
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The demand for your school district's educational software is: QX = 12 - 2PX + 0.6PY + 0.2M + 1.2H, where, Qx is the number of copies sold per month PX is the price of the software, PY is the price of the latest educational software, M is the average monthly income of households, H is the number of hours the sof...
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When consumers are required to pay a fraction of the cost of their medical treatment: A. it has no effect on the demand for health care services, but does generate revenue for the government. B. it reduces the income elasticity of demand for health care services. C. it reduces the demand for health care services to ...
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James, Inc., had 45,000 shares of $6 par value common stock issued and outstanding as of December 31, 2015. In addition, 5,000 shares of $60 par value nonconvertible preferred stock were outstanding as of that date. No changes were made to the number of shares of either class of stock during 2016. The preferred stock h...
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Assume the following information about a particular company. Revenue $60,000 Cost of Goods Sold $20,000 Fixed Selling Expenses $5,000 Fixed Administrative Expenses $4,000 Variable Administrative Expenses $3,000 What is the company's degree of operating leverage (DOL)? a. 1.50 b. 2.00 c. 3.00 d. 5.00 Show Wor...
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Which of the following statements is true about activity-based costing? a. Direct costs are assigned to the first department in the production process. b. Indirect costs are assigned to the first department in the production process. c. Direct and indirect costs are assigned to the first department in the production...
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The transaction sequence for a typical bank is a) Accept deposits; extend loans; service loans; invest in government securities. b) Accept deposits; extend loans; invest in government securities; service loans. c) Accept deposits; invest in government securities; extend loans; service loans. d) Accept deposits; ext...
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Suppose the line segment C is given by the parameterization: r(t) = (t+1) i +2 tj, 0 ≤ t ≤ 3. Evaluate the integral \(\displaystyle \int_{C} \langle x^2, -y \rangle\ dx\)
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You own $15,000 of City Steel stock that has a beta of 3.24. You also own $35,000 of Rent-N-Co (beta = 1.77) and $20,000 of Lincoln Corporation (beta = -1.03). What is the beta of your portfolio?
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The graph shows the electric field as a function of position in a particular region of space. If {eq}E_{xs} {/eq} = 100 N/C, what is the potential difference between x = 3 m and x = 6 m?
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Dilloyd Company sold $200,000 of bonds on December 31, 2018. A portion of the amortization table appears below. Period Cash Payment (Credit) Interest Expense (Debit) Discount on Bonds Payable (Credit) Discount on Bonds Payable Balance (Debit) Bond Payable Carrying Value (Credit) At issue $8,000 $192,000 6/30/2019$12,...
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Security Pension Services helps clients to set up and administer pension plans that are in compliance with tax laws and regulatory requirements. The firm uses one job-order costing system in which overhead is applied to clients' accounts on the basis of professional staff hours charged to the accounts. Data concerning ...
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A firm has an ROE of 24 percent and a debt/equity ratio of 2.00. If it had no debt, its ROE would be _____ percent. A) 8.00 B) 16.00 C) 12.00 D) 24.00
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Evaluate the integral. {eq}\int_{2}^{5} \int_{1}^{3} x^2y^3 \: dxdy {/eq}
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You are trying to see if there is an arbitrage opportunity. Current US interest rate is 4%. The spot rate for US/EUR is 2.5 while the forward rate for a year is 2. If the current interest rate in Germany is 3%, what should be done? a. Borrow in US and convert money to euros, invest in Germany and after a year convert ...
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The common stock of Non-Yummy Burgers has an expected return of 17.5 percent and a beta of 1.65. The risk-free rate is 3.55 percent. What is the slope of the security market line? (Hint: Use the CAPM)
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Lester Company reported a net loss of $18,450 for the year ended December 31, 2013. During the year, accounts receivable decreased by $6,464, merchandise inventory increased by $6,077, accounts payable increased by $11,693, and depreciation expense of $5,207 was recorded. What was the net cash used for or provided by ...
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Suppose that in a particular industry, the market demand curve is downward sloping, while all firms have U-shaped average cost and marginal cost curves. Moreover, all firms in this industry are identical. Now, suppose that because of improved technology, all firms in the industry are able to produce the same level of o...
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The Adams Company decided to change from FIFO to LIFO late in 2011. Prior to the change, the Statement of Retained Earnings for the year ended Dec. 31, 2011 showed the following items: Retained earnings, 12/31/10 - $50,000 Net income for 2011 - $40,000 Retained earnings, 12/31/11 - $80,000 Under LIFO, net income fo...
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Maloney, Inc., has an odd dividend policy. The company has just paid a dividend of $1.54 per share and has announced that it will increase the dividend by $2.68 per share for each of the next five years, and then never pay another dividend. If you require a return of 2.32 percent on the company's stock, how much will ...
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Why does $\sum_{n=1}^{\infty} \frac{n}{(n+1)!(n+2)!}$ evaluate to $e^{-1}-1$?
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When a lump sum tax is added to a monopolistically competitive industry, (a) Deadweight loss and economic surplus will both decrease. (b) Deadweight loss and economic surplus will both increase. (c) Deadweight loss will decrease and economic surplus will increase. (d) Deadweight loss will increase and economic surp...
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Frankie Smith started a new business selling a trendy line of athletic footwear that was wrapped in clear plastic and shipped directly from the manufacturer to customers. The following transactions occurred during January 2015: (1) The business received $350,000 in cash from 10,000 customers. (2) The business purchas...
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In the current year, Alton, Inc. had: Income before income taxes $44,000 Loss on sale of investments (9,000) Gain on insurance recovery (on destroyed warehouse) 15,000 Excess of income taxes paid over income tax expense (due to change in tax law) (1,000) The company?s tax rate is 40%. What is Alton's net income f...
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Company XYZ expects to save $800 a year for the next 10 years. If their required rate of return is 9%, what is the most they should pay for this opportunity? A) $4,817.35 B) $5,085.33 C) $5,454.70 D) $5,608.02
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Jumble Foods just paid their annual dividend of $3.15 per share. They are projecting dividends of $1.75, $1.88, and $2.14 over the next three years, respectively. After that, the company expects to pay a constant dividend of $2.50 a share. What is the maximum amount you are willing to pay for one share of this stock if...
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The Kwik-e-Tax Center was organized on January 1, 2005, and began operations on March 1. The center has been using the FIFO method to compute its tax net income, which is treated as taxable income. For the first three years, the center used an assumed LIFO inventory method to compute its financial statement net income,...
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Orchard Farms sells its products to customers for $56 per unit. Orchard Farms incurs the following costs to produce 100,000 units: * Direct materials: $175,000 * Direct labor: $240,000 * Variable overhead: $75,000 * Fixed overhead: $60,000 Assume that Orchard Farms has excess capacity and normally sells all of its...
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Sally has $100,000 she can invest today. She expects to earn 4% per year. How much will she have in her investment at the end of 20 years?
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Zapata Corporation will purchase a new machine for $275,000. The machine is expected to have a five-year life and a residual value of $11,000. The machine is expected to reduce cash operating costs by $58,000 per year. The straight-line method of depreciation will be used, and the company uses a 14% discount rate. The ...
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Given the function $$f(x)=\lim_{n\to \infty}{({e^{\frac{1}{x}})\arctan{1\over{1+x}}}\over{x^2+e^{nx}}}$$, when $x >0$, it is argued that $e^{nx} \to +\infty$ and $f(x)=0$. However, when $x\to0^+$, $e^{1 \over x} $ goes to infinity. Is there an explanation why it's valid to conclude $e^{nx} \to+\infty$ when $x$ is appro...
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A solid of constant density is bounded below by the plane z = 0 , above by the cone z = r, {eq}r\geq 0{/eq}, and on the sides by the cylinder r = 1. Find the center of mass.
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Find the steady-state distribution of the temperature in the earth if the temperature at any point (x, z) is given by {eq}T = e^{-ax}\cos (z) {/eq} where {eq}a = 0.003 \text{ per km} {/eq}
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Assume that today is December 31, 2015, and that the following information applies to both Barkley Motors' and Garlington Technologies' stock. The required rate of return on the market, r M , is 10.25%. The risk-free rate, r RF , is 6.10%. Both stocks have a required rate of return of 14%. Both stocks have the same...
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Two objects, with masses 2.5 and 1.0, are connected by a string, and the combination is free to slide on a frictionless slope that makes an angle of 40 degrees with the horizontal. (a) Find the tension in the string.
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Which of the following correctly identifies the stage in which spoilage is first detected? A. reporting B. batch identification C. control D. reconciliation
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Assume a bond is currently selling at par value. What will happen if the bond's required return declines? A) the coupon rate of the bond will decline B) the par value of the bond will increase C) the par value of the bond will decrease D) the coupon payments will be adjusted to the new rate E) the bond price will ...
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JMM Corporation uses the weighted-average method in its process costing system. The Assembly Department started the month with 8,000 units in its beginning work in process inventory that were 80% complete with respect to conversion costs. An additional 65,000 units were transferred in from the prior department during t...
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Capital markets allow for the transfer of capital from: a. borrowers to lenders. b. lenders to borrowers. c. businesses to individuals. d. individuals to businesses. e. none of the above.
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Given the relations $P(t)=I R(t)$ and $R(t)={C\over t^2}e^{t/B}$ where $I$, $C$, and $B$ are constants and $t>0$, how can I show that ${{d P\over dt}}<0$ for all $t$? Specifically, how do I proceed with the inequality $$\left({{I\over B}-{{2 C\over B^2}t^2}}\right)e^{t/B}>0$$ given that $t>0$ and $e^{t/B}>0$?
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Approximate $I=\int_0^1 x^3 \arctan(2x^2)dx$ using Simpson's rule with $n=10$. Compute an error estimate and find the exact error. I estimated the error to be 0.0001, but the exact error is 0.0000819523... How do I get this number?
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Last month Sparks Company issued $100,000 face value of bonds payable. These bonds were issued at a premium for $100,000 and have an 8% annual rate of interest. Sparks uses the straight-line method to amortize any bond discounts or premiums and the annual accounting period ends on December 31. If the bonds mature on Ju...
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Calculate the pi bond order in a molecule with one of the following structures. Which molecule has the greatest pi bond order? a) I, II, and III have equal pi bond order b) II and III have equal pi bond order, which is greater than I c) II has the greatest pi bond order, followed by I, then III d) I and III have eq...
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Company is considering replacing an existing piece of equipment. The new equipment will have a cost of $29,000, and it will be depreciated on a straight-line basis over a period of six years (years 1-6). The existing equipment has a book value of $20,000 (at year 0) and a remaining useful life of six years. The new equ...
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At the end of an accounting period, manufacturing overhead costs are transferred from manufacturing overhead applied to work in process and are then closed out to the cost of goods sold account. This entry is necessary because: a) underapplied overhead must be removed from cost of goods sold account. b) overapplied o...
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Given the following reduction half-reactions and their standard reduction potentials: {eq}AgI_{(s)} + e^- \rightarrow Ag_{(s)} + I^- {/eq} : {eq}E^o = 0.15 V {/eq} {eq}Sn^{2+}{_{(aq)}} + 2e^- \rightarrow Sn_{(s)} {/eq} : {eq}E^o = -0.14 V {/eq} {eq}F_{2(g)} + 2e^- \rightarrow 2F^- {/eq} : {eq}E^o = +2.87 V {/eq} ...
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Farrow Co. expects to sell 150,000 units of its product in the next period with the following results: Sales (150,000 units) $2,250,000 Costs and expenses: Direct materials 300,000 Direct labor 600,000 Overhead 150,000 Selling expenses 225,000 Administrative expenses 385,508 Total costs and expenses $1,660,500 Net in...
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Curb stomp bonds were issued at a par value of $1,000 in 1991 and mature in 1996. The bonds pay interest annually at a rate of 10 percent. If an investor purchased one of these bonds on January 1, 1996 when the market interest rate was 6 percent, how much should that investor pay for the bond? a. $1,000 b. $800 c. $...
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In 2012, Cassiopeia Company's sales were $510,000. In 2013, sales were $811,000. Which of the following correctly states the direct materials cost for 2013? a. $126,000 b. $411,000 c. $385,000 d. Cannot be determined with the given information Cash and credit sales in 2012 amounted to $210,000 and $285,000, respec...
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Calculate the curl of the following Electric Field: $\vec{E} = \left( 4y^2 + \dfrac{3x^2y}{z^2} \right) \vec{u_x} + \left(8xy + \dfrac{x^3}{z^2}\right)\vec{u_y} + \left(11 - \dfrac{2x^3y}{z^3}\right)\vec{u_z} $
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Evaluate the integral by using the given transformation: {eq}\iint_R xy \, dA; R = \{(x, y) | 0 \leq x \leq 3, 1 \leq y \leq 11\}; u = 3x, v = 6y{/eq}
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A certain moving electron has a kinetic energy of {eq}1.55\times {{10}^{-17}} {/eq} J. Calculate the speed of the electron. {eq}\rm (mass of an electron = 9.11\times {{10}^{-31}} {/eq} kg; {eq}\rm h = 6.626\times {{10}^{-34}} {/eq} J {eq}\cdot {/eq} s)
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Company X and Company Y have the same net income, and each has 1,000,000 shares of common stock outstanding. The balance sheet for Company X reveals total assets of $500,000,000 and total liabilities of $400,000,000. The balance sheet for Company Y reveals total assets of $200,000,000 and total liabilities of $100,000,...
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Data concerning Miyagi Corporation's single product appear below: Per UnitPercent of Sales Selling price$180100% Variable expenses5430% Contribution margin$12670% Fixed expenses are $889,000 per month. The company is currently selling 8,900 units per month. The marketing manager would like to introduce sales commissi...
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An astronaut can barely resolve two objects on the earth's surface, 250 km below. The diameter of the astronaut's pupils is 5.0 mm and the wavelength of the light is 550 nm. What is the minimum distance s min that separates the two objects?
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Stewart Enterprises reported the following information for 2007: Net income: $156,000 Dividends: $56,000 Interest paid: $36,000 Tax rate: 40% If the total interest expense for the company for 2007 is $115,000, what is the number of days in the company's operating cycle? a. 220.9 days b. 31.4 days c. 78.8 days ...
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Jungle, Inc. manufactures puzzle toys and generally uses the average cost method to calculate its inventory amounts. The following data pertains to the store's inventory: Actual quantity: Beginning inventory of 7,700 units Purchases of 18,500 units Ending inventory of 15,500 units Inventory costs: Beginning inven...
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How many orbitals in an atom can have the quantum numbers n = 4, l = 1, ml = 1? How many orbitals can have n = 4 and l = 1?
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Assume that there are two firms in the beer market. Each firm can produce the perfect substitute beer. Assume that marginal cost = total cost = $10 + Q and that the demand curve is P = $100 - Q. The Cournot equilibrium is a. Q1 = 40, Q2 = 40, P = $20. b. Q1 = 30, Q2 = 30, P = $40. c. Q1 = 30, Q2 = 30, P = $30. d. Q...
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What is the probability that more than 10% of the 6 students sampled suffer from allergies, given that 1 in 5 Americans suffers from allergies and the president's home contains most common allergens?
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A company purchases a building for $2 million. The estimated salvage value is $200,000 and the building is estimated to have a life of 10 years. If the company uses the straight-line method, what is the annual amount of depreciation expense?
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The price of a stock is 22 euros. In one period, it either goes up by 30% or down by 10%. The risk-free interest rate is 5%, the time period is a year, and the stock does not pay a dividend. Consider the stock plus a call option with an exercise price of 23 euros. What is the risk neutral probability that the stock pri...
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Let $X_1, . . . , X_n$ be i.i.d. random variables with common variance $\sigma^2$ and $S^2 = \frac{\sum_{i=1}^n (X_i-\overline{X})^2}{n-1}$ be the sample variance. Find the bias of $S^2$ as an estimator of $\sigma^2$, i.e., find $E(S^2) - \sigma^2$.
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Net cash flow from operating activities using the indirect method. Marina Products' comparative balance sheet for current assets and liabilities was as follows: Mar. 31, 2014Mar. 31, 2013 Accounts receivable$1,671,000$1,520,000 Inventory5,489,0006,447,000 Accounts payable4,049,0003,850,000 Dividends payable94,000117,...
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Which of the following is the correct journal entry to record bad debt expense for $1,000, assuming that a percentage of receivables approach was used to determine the allowance for doubtful accounts balance? a. Debit Bad Debt Expense, $1,000; credit Allowance for Doubtful Accounts, $1,000. b. Debit Bad Debt Expense,...
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A firm has a target debt/equity ratio of 1/4. It also has a beta of 1.6. If the firm had no debt, its cost of equity would be 7.00%. The tax rate is 50%. What is the cost of equity for this firm?
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Suppose that you have collected data and found that the regression equation relating the score you can achieve on an aptitude test and the number of hours you spend practicing (x) is: y-hat = 72 + 8x What is the slope of the regression equation?
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At most 10% of the trees in an area in the 300 square meter plots. 600 trees were randomly chosen and it was found that 45 of them were less than 300 square meter plots. Test, at the 5% significance level, the company's claim.
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You are trying to see if there is an arbitrage opportunity. Current US interest rate is 4%. The spot rate for US/EUR is 2.5 while the forward rate for a year is 2. If the current interest rate in Germany is 30%, what should be done? a. Borrow in US and convert money to euros, invest in Germany and after a year convert...
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Cost benefit a) is a constraint on accounting b) is a concept applied to all reports c) is the source for many accounting practices d) has been eliminated from current accounting practices e) was a basic constraint in the development of generally accepted accounting principles before 1930
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The table below shows the market demand schedule for a patented prescription drug manufactured and marketed by the Alchemist, the patent holder. The table also shows the patent holder's marginal cost schedule. (Assume that the Alchemist's patent prevents other firms from producing this drug.) Price Qua...
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Badger Co. recorded the following inventory information during the month of January. Units Unit Cost Total Cost Beginning inventory on 1/1 800 $6 $4,800 Purchase on 1/7 1,000 $8 $8,000 Sale on 1/12 1,500 300 Purchase on 1/19 1,600 $9 $14,400 Sale on 1/26 1,300 900 Ending inventory on 1/31 1,600 2,200 Ass...
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Myers Company uses the perpetual inventory method and had the following inventory and sales activities for the month of May 2013: Date Activities Units Unit Cost May 1 Beginning inventory 180 $10.00 May 5 Purchase 300 11.00 May 10 Sale 320 May 15 Purchase 200 12.00 May 20 Sale 250 May 25 Purchase ...
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Sheridan Division's operating income was $740,000 using budgeted sales of $5,000,000. Actual sales were $5,750,000. Compute the division's operating income (in percentage terms) if actual sales had been $5,250,000.
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Woolcrest Corporation has no debt or preferred stock-it is an all-equity firm and has a beta of 2.0. The chief financial officer is evaluating a project with an expected return of 14%, before any risk adjustments. The risk-free rate is 5%, and the market risk premium is 4%. The project being evaluated is equally as ris...
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You are analyzing the beta of a security for a portfolio you are managing. The variance of the return on the market is 60% and the variance of return on the security is 100%. The correlation coefficient between returns on the security and returns on the market is 0.15. What is the beta of the security?
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Which of the following best describes cash flow from financing activities? Select one: a. Interest income, plus dividend income, minus taxes b. Interest paid, plus dividends paid, plus increase (or minus decrease) in stock, plus increase (or minus decrease) in debt c. Interest expense, minus dividends paid d. Incre...
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Why does L'Hopital's rule fail when finding the limit of $y = \frac{f(x)}{g(x)}$ as $x\to\infty$ with $f(x)=\frac{1}{x}$ and $g(x)=e^{-x}$, when it yields the indeterminate form $0*∞$, while directly substituting $x=\infty$ suggests the limit is $0$?
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Your company has two divisions- one based in the United States and the other in China. The China division has a profit margin of 15% and a return on sales of 25%. The US division has a profit margin of 14% and a return on sales of 18%. You should: A. expand your operations in the United States and China simultaneously...
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Consider an asset that costs $249,600 and is depreciated straight-line to zero over its 5 year tax life. The asset is to be used in a 4 year project; at the end of the project, the asset can be sold for $44,800. If the relevant tax rate is 35%, what is the after-tax cash flow from the sale of this asset? a) $26,480.00...
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The president of Good News Paper announced that the paper was being discontinued because of poor sales and a loss. A report indicated that Good News Paper did not make its final cut but was included in a group of six papers whose sales were found to be equal. The president was aware that, for many years, the manager of...
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Rearden Metal has earnings per share of $2. It has 10 million shares outstanding and is trading at $20 per share. Rearden Metal is thinking of buying Associated Steel, which has earnings per share of $1.25, 4 million shares outstanding, and a price per share of $15. Rearden metal will pay for Associated Steel by issuin...
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An investor purchases a bond for {eq}\$2,145 {/eq} and holds it for {eq}5 {/eq} years before selling it for {eq}\$3,036 {/eq}. What is the annual rate of return earned on the bond?
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Data for the past year are given here on 30-Company: Actual Income Statement Data: Sales $780,000 Variable expenses 420,000 Fixed expenses 130,000 Interest expenses 75,000 Taxes 26,000 Net income $ 69,000 Balance Sheet Data: ...
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Palm Corporation paid a dividend of $2.65 this year, and that dividend is expected to grow by 2 percent per year for the foreseeable future. If investors' required rate of return is 13 percent, what is the market value of Palm's stock?
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Assume that the risk-free interest rate is 5% per annum with continuous compounding, the stock price is $100, and the volatility is 40%. What is the probability that the option will be exercised if it is an American call option with a strike price of $100 that expires in 3 months?
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Alton Corp. reported 2014 net income of $157,000. Included on its income statement are depreciation expense of $32,000 and amortization of patent of $1,700. Alton Corp.'s comparative balance sheets show an increase in accounts receivable of $15,600 and an increase in accounts payable of $9,700. Compute cash flows from ...
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Buildwell Builders, Inc., has 15-year bonds outstanding with a face value of $1,000 and a market price of $974. The bonds pay interest annually and have a yield to maturity of 4.03 percent. What is the coupon rate?
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