Use the information below to answer the following questions. Currency per U.S. $ Australia dollar 1.2377 6-months forward 1.2356 Japan Yen 100.3300 6-months forward 100.0500 U.K. Pound .6792 6-months forward .6781 Suppose interest rate parity holds, and the current six month risk-free rate in the United States is 5 percent. Use the approximate interest rate parity equation to answer the following questions. a. What must the six-month risk-free rate be in Australia

Answer:

Missing word "a. What must the six-month risk-free rate be in Japan"

a. Spot rate = 1 US $ = 1.2377 Aus.dollar

Forward rate = 1 US $ = 1.2356 Aus.dollar

1.2356 = (1 + i Ad)

1.2377     (1 + 0.05)

0.9983 * (1.05) = 1 + i.Ad

1.048215 = 1 + i.Ad

i.Ad = 1.048215 - 1

i.Ad = 0.048215

i.Ad = 4.82%

b. Spot rate = 1 US $ = 100.3300 Japan Yen

Forward rate = 1 US $ = 100.0500 Japan Yen

100.0500 = (1 + i Ad)

100.3300     (1 + 0.05)

0.9972 * (1.05) = 1 + i.Ad

1.04706 = 1 + i.Ad

i.Ad = 1.04706 - 1

i.Ad = 0.04706

i.Ad = 4.71%

The master budget at Western Company last period called for sales of 225,000 units at $8.60 each. The costs were estimated to be $4.00 variable per unit and $270,000 fixed. During the period, actual production and actual sales were 230,000 units. The selling price was $8.70 per unit. Variable costs were $4.75 per unit. Actual fixed costs were $270,000. Required: Prepare a flexible budget for Western.

Assume you work for a company as an accountant and you have been asked to calculate the depreciation expense for each year of a new machine that your company purchased on April 1, 2021, at a cost of $ 350,000. You have estimated that the machine will have a salvage value of $15,000. The machine is expected to be used for 27,800 working hours during its 5-year life.

a) Prepare the depreciation schedule for each year of the useful life under
straight line method.

b) Compute the depreciation expense for 2021, 2022 and 2023 under units-of activity method, assuming machine usage was 2700 hours in 2021 and 3500 hours and 2200 hours in 2022 and 2023 respectively.

Vandelay Industries has a target capital structure consisting of 40% debt, 5% preferred stock, and 55% common equity. Vandelay has 20-year, 11% semiannual coupon bonds that sell at their par value of $1,000. The component cost of preferred stock is 12.4%. Vandelay is a constant growth firm that recently paid a dividend of $2.05, sells for $27.00 per share, and has a growth rate of 7%. Flotation costs on new common stock are 10%, and the firm's marginal tax rate is 25%. What is Vandelay Industries’ WACC assuming they will have to use internal equity?
a. 13%
b. 12.24%
c. 12.74%
d. none of these choices

What is a living will?

Select all the correct locations on the image.
On the tax bracket table, choose all the marginal tax rates that will apply to a single taxpayer with a taxable income of $75,000.

Assume that a war breaks out abroad, and foreign investors choose to invest more in a large safe country, the United States. Then, the U.S. real interest rate:_________.

Nelson Won wants to withdraw $25,000 (including principal) from an investment fund at the end of each year for five years. How should he compute his required initial investment at the beginning of the first year if the fund earns 10% compounded annually

All of the following are part of an accounting system except:

(Pension Expense, Journal Entries, Amortization of Loss) Gottschalk Company sponsors a defined benefit plan for its 100 employees. On January 1, 2017, the company’s actuary provided the following information.
Accumulated other comprehensive loss (PSC) $150,000
Pension plan assets (fair value and market-related asset value) 200,000
Accumulated benefit obligation 260,000
Projected benefi t obligation 380,000
The average remaining service period for the participating employees is 10 years. All employees are expected to receive benefits under the plan. On December 31, 2017, the actuary calculated that the present value of future benefits earned for employee services rendered in the current year amounted to $52,000; the projected benefit obligation was $490,000; fair value of pension assets was $276,000; the accumulated benefit obligation amounted to $365,000. The expected return on plan assets and the discount rate on the projected benefit obligation were both 10%. The actual return on plan assets is $11,000. The company’s current year’s contribution to the pension plan amounted to $65,000. No benefits were paid during the year.
Instructions
(a) Determine the components of pension expense that the company would recognize in 2017. (With only one year involved, you need not prepare a worksheet.)
(b) Prepare the journal entry to record the pension expense and the company’s funding of the pension plan in 2017.
(c) Compute the amount of the 2017 increase/decrease in gains or losses and the amount to be amortized in 2017 and 2018.
(d) Indicate the pension amounts reported in the financial statement as of December 31, 2017.

Which of the following statements does not correctly describe an adjustment to net income when determining cash flows from operating activities using the indirect method?
A. An increase in wages payable will be added to net income.
B. An increase in prepaid expenses will be subtracted from net income.
C. An increase in income taxes payable will be subtracted from net income.
D. A gain on the sale of a depreciable asset will be subtracted from net income.

You have been working as a security analyst in the information security department at Aim Higher College for two months. Your manager asks you to propose a set of controls that will allow the use of the research datacenter for its intended purpose while protecting the business systems that reside there. What controls would you suggest, and why

Suppose your college or organization is considering a new project to develop an information system that would allow all employees, students, and customers to access and maintain their own human resources information, such as address, marital status, and tax information. The main benefits of the system would be a reduction in human resources personnel and more accurate information. For example, if an employee, student, or customer had a new telephone number or email address, he or she would be responsible for entering the data in the new system. The new system would also allow employees to change their tax withholdings or pension plan contributions. Identify five potential risks for this new project and be sure to list some negative and positive risks.

Required:
Provide a detailed description of each risk and propose strategies for addressing each risk.

The following present value factors are provided for use in this problem: Norman Co. wants to purchase a machine for $40,000 but needs to earn an 8% return. The expected year-end net cash flows are $12,000 in each of the first three years and $16,000 in the fourth year. What is the machine's net present value (rounded to the nearest whole

Holmes, Inc., has offered $482 million cash for all of the common stock in Watson Corporation. Based on recent market information, Watson is worth $454 million as an independent operation. If the merger makes economic sense for Holmes, what is the minimum estimated value of the synergistic benefits from the merger? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.)

Calculate Payroll K. Mello Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee: Consultant Computer Programmer Administrator Regular earnings rate $2,810 per week $36 per hour $46 per hour Overtime earnings rate Not applicable 2 times hourly rate 1.5 times hourly rate Federal income tax withheld $930 $238 $515 For hourly employees, overtime is paid for hours worked in excess of 40 hours per week. For the current pay period, the computer programmer worked 55 hours and the administrator worked 65 hours. Assume further that the social security tax rate was 6%, and the Medicare tax rate was 1.5%. Determine the gross pay and the net pay for each of the three employees for the current pay period. Assume the normal working hours in a week are 40 hours. If required, round your answers to two decimal places.

What is technical profession?Give examples.​

Consider the following list of transactions: Repay borrowing from the bank, $2,000. Pay employees' salaries of $1,500. Purchase equipment for cash, $10,000. Provide services to customers for cash, $4,500. Issue shares of common stock for cash, $5,000. Pay utilities, $1,000. Provide services to customers on account, $2,500. Sell old delivery truck for cash, $4,000. What amount would the company report for operating cash flows in the statement of cash flows

Gipple Corporation makes a product that uses a material with the quantity standard of 7.8 grams per unit of output and the price standard of $6.50 per gram. In January the company produced 3,900 units using 25,370 grams of the direct material. During the month the company purchased 27,900 grams of the direct material at $6.70 per gram. The direct materials purchases variance is computed when the materials are purchased. The materials price variance for January is:

The management of Petro Garcia Inc. was discussing whether certain equipment should be written off as a charge to current operations because of obsolescence. This equipment has a cost of $900,000 with depreciation to date of $400,000 as of December 31, 2020. On December 31, 2020, management projected its future net cash flows from this equipment to be $300,000 and its fair value to be $230,000. The company intends to use this equipment in the future. Prepare the journal entry (if any) to record the impairment at December 31, 2020

Speedy Delivery Systems can buy a piece of equipment that is anticipated to provide an 11 percent return and can be financed at 6 percent with debt. Later in the year, the firm turns down an opportunity to buy a new machine that would yield a 9 percent return but would cost 15 percent to finance through common equity. Assume debt and common equity each represent 50 percent of the firm’s capital structure. a. Compute the weighted average cost of capital. (Do not round intermediate calculations. Input your answer as a percent rounded to 2 decimal places.)

You are provided with the following information for Najera Inc. for the month ended June 30, 2017. Najera uses the periodic method for inventory.

Date Description Quantity Unit Cost or Selling Price
June1 Beginning inventory 38 $42
June4 Purchase 135 $46
June10 Sale 108 $70
June11 Sale return 12 $70
June18 Purchase 58 $48
June18 Purchase return 9 $48
June25 Sale 64 $75
June28 Purchase 33 $52

Required:
Calculate cost per unit.

7)In 2020, taxpayers with the following filing statuses may be eligible to claim the earned income credit except :

Question 7 options:

1)

single


2)

head of household


3)

married filing jointly


4)

qualifying widower


5)

surviving spouse


6)

none of the above

8) In 2020, Bob, age 34, single, had no children, earned income of $2,800, and interest income of $1,100. His adjusted gross income was $3,900. Based on this information, Bob:

Question 8 options:

1)

can claim the earned income credit


2)

cannot claim the earned income credit


3)

can claim a much smaller earned income credit than a head of household taxpayer with 1 qualifying child can claim


4)

A & C are both correct

9)The alternative minimum tax ("AMT") tax formula begins with __________ and ends with ____________ .

Question 9 options:

1)

taxable income ("TI") ; AMT


2)

adjusted gross income ("AGI") ; AMT


3)

tentative minimum tax ("TMT") ; AMT


4)

None of the above

10)Why was the alternative minimum tax originally enacted into law?

Question 10 options:

1)

A study conducted in the 1960s found that hundreds of individual taxpayers with extremely high incomes had $0 in tax liability.


2)

The desire for tax simplification.


3)

Congress saw the need for a "parallel" tax system that would, in effect, levy a small tax on all taxpayers who make more than $20,000 a year.


4)

All of the above.

11)In 2020, Jimmy Joe Jackson had earned income of $14,400 and qualified for both a $300 nonrefundable tax credit and a $1,000 refundable tax credit. In 2020, he had no federal income tax withheld. Based solely on these facts, Jimmy Joe Jackson should receive a federal income tax refund of:

Question 11 options:

1)

$1,300


2)

$1,100


3)

$1,000


4)

$1,200


5)

None of these

At December 31, 2021 and 2020, Cow Co. had 117,000 shares of common stock and 6,700 shares of 3%, $100 par value cumulative preferred stock outstanding. No dividends were declared on either the preferred or common stock in 2021 or 2020. Net income for 2021 was $670,000. For 2021, basic earnings per share was: Multiple Choice $2.01 $5.38 $8.73 $5.55

Who is Ackerman?

A. Levi

B. Petra

C. Erwin





​

1. The amount of income that would result from an alternative use of cash is called opportunity cost.
A. True
B. False
2. When a segment of a company is showing a net loss, it is always best to discontinue the segment in order not to continue with losses.
A. True
B. False

Swifty Inc., which produces a single product, has prepared the following standard cost sheet for one unit of the product.

Direct materials (6 pounds at $1.60 per pound) $9.60
Direct labor (3 hours at $11.00 per hour) $33.00

During the month of April, the company manufactures 180 units and incurs the following actual costs.

Direct materials purchased and used (2,400 pounds) $4,320
Direct labor (560 hours) $6,048

Required:
Compute the total, price, and quantity variances for materials and labor.

Suppose during 2022 that Cypress Semiconductor Corporation reported net cash provided by operating activities of $96,447,240, cash used in investing of $46,576,080, and cash used in financing of $7,957,440. In addition, cash spent for fixed assets during the period was $27,888,840. No dividends were paid. Calculate free cash flow. (Show a negative free cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Everything else held constant, in the market for reserves, when the federal funds rate is 2%, lowering the interest rate paid on excess reserves rate from 1% to 0.5% has no effect on the federal funds rate. has an indeterminate effect on the federal funds rate. lowers the federal funds rate. raises the federal funds rate.

Assume you just purchased 100 shares of Apple stocks at $300. You are worrying that the competition from other tablet PC and smart phone producers will have a negative impact on Apple stock prices in 1 month. Generally speaking, you are still quite bullish on Apple stock. In order to hedge against this downside risk, you establish a protective put position by buying a put option contract with around 1-month maturity on Apple stock. However, the premium of the put option with strike price at $300 is $12, which is quite expensive. If you feel purchasing the put option with strike price at $300 and $12 premium is too expensive, what else can we do to reduce the cost of protective put position

Maintenance Department: budgeted variable cost, $2 per case; and budgeted total fixed cost, $830,000. Paints Division: percentage of peak period capacity required; 30%; and actual cases, 20,000. Stains Division: percentage of peak period capacity required, 70%; and actual cases, 63,000. For performance evaluation purposes, the amount the Maintenance Department cost should be charged to the Paints Division at the end of the year is _