Beginning WIP inventory is 15,500 units, 75% complete for materials. During the month, 90,000 units were started; 87,000 were finished; and ending WIP was 18,500 units that were 50% complete for materials.
1) How many equivalent units should be used to allocate costs for materials? (Assume that the weighted average method )
Question #2 During a period, 38,200 units were completed and 4,200 units were in ending WIP inventory. Ending WIP was 75% complete for direct materials and 50% complete for conversion costs.
2) What are the equivalent units for direct materials?
3) What are the equivalent units for conversion costs?
Tuesday, February 23, 2016
Determining Profit or Loss from an Investment. Three years ago, you purchased 150 shares of IBM stock for $88 a share
1. Determining Profit or Loss from an Investment. Three years ago, you purchased 150 shares of IBM stock for $88 a share. Today, you sold your IBM stock for $103 a share. For this problem, ignore commissions that would be charged to buy and sell your IBM shares.
a. What is the amount of profit you earned on each share of IBM stock?
b. What is the total amount of profit for your IBM investment?
2. Calculating Rate of Return. Assume that at the beginning of the year, you purchase an investment for $8,000 that pays $100 annual income. Also assume the investment’s value has decreased to $7,400 by the end of the year.
a. What is the rate of return for this investment?
b. Is the rate of return a positive or negative number?
3. Calculating Earnings Per Share, Price-Earnings Ratio, and Book Value. As a stockholder in Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets of $9 million, liabilities of $5 million, after-tax earnings of $2 million, and 750,000 outstanding shares of common stock.
a. Calculate the earnings per share of Bozo Oil’s common stock.
b. Assuming that a share of Bozo Oil’s common stock has a market value of $40, what is the firm’s price-earnings ratio?
c. Calculate the book value of a share of Bozo Oil’s common stock.
4. Determining Interest and Approximate Bond Value. Assume that three years ago, you purchased a corporate bond that pays 9.5 percent. The purchase price was $1,000. Also assume that three years after your bond investment, comparable bonds are paying 8 percent.
a. What is the annual dollar amount of interest that you will receive from your bond investment?
b. Assuming that comparable bonds are paying 8 percent, what is the approximate dollar price for which you could sell your bond?
c. In your own words, explain why your bond increased or decreased in value.
5. Using Margin. Bill Campbell invested $4,000 and borrowed $4,000 to purchase shares in Wal-Mart. At the time of investment, Wal-Mart was selling for $45 a share.
a. If Bill paid $30 commission, how many shares could Bill buy if he used only his own money and did not use margin?
b. If Bill paid $50 commission, how many shares could Bill buy if he used his $4,000 and borrowed $4,000 on margin to buy Wal-Mart stock?
c. Assuming that Bill did use margin, paid $90 commission to sell his stock, and sold his Wal-Mart stock for $53, how much profit did he make on his Wal-Mart investment?
6. Calculating yields. Assume you purchased a corporate bond at its current market price of $850 on January 2, 2002. It pays 9 percent interest and it will mature on December 31, 2011, at which time the corporation will pay you the face value of $1,000.
a. Determine the current yield on your bond investment at the time of purchase.
b. Determine the yield to maturity on your bond investment.
a. What is the amount of profit you earned on each share of IBM stock?
b. What is the total amount of profit for your IBM investment?
2. Calculating Rate of Return. Assume that at the beginning of the year, you purchase an investment for $8,000 that pays $100 annual income. Also assume the investment’s value has decreased to $7,400 by the end of the year.
a. What is the rate of return for this investment?
b. Is the rate of return a positive or negative number?
3. Calculating Earnings Per Share, Price-Earnings Ratio, and Book Value. As a stockholder in Bozo Oil Company, you receive its annual report. In the financial statements, the firm has reported assets of $9 million, liabilities of $5 million, after-tax earnings of $2 million, and 750,000 outstanding shares of common stock.
a. Calculate the earnings per share of Bozo Oil’s common stock.
b. Assuming that a share of Bozo Oil’s common stock has a market value of $40, what is the firm’s price-earnings ratio?
c. Calculate the book value of a share of Bozo Oil’s common stock.
4. Determining Interest and Approximate Bond Value. Assume that three years ago, you purchased a corporate bond that pays 9.5 percent. The purchase price was $1,000. Also assume that three years after your bond investment, comparable bonds are paying 8 percent.
a. What is the annual dollar amount of interest that you will receive from your bond investment?
b. Assuming that comparable bonds are paying 8 percent, what is the approximate dollar price for which you could sell your bond?
c. In your own words, explain why your bond increased or decreased in value.
5. Using Margin. Bill Campbell invested $4,000 and borrowed $4,000 to purchase shares in Wal-Mart. At the time of investment, Wal-Mart was selling for $45 a share.
a. If Bill paid $30 commission, how many shares could Bill buy if he used only his own money and did not use margin?
b. If Bill paid $50 commission, how many shares could Bill buy if he used his $4,000 and borrowed $4,000 on margin to buy Wal-Mart stock?
c. Assuming that Bill did use margin, paid $90 commission to sell his stock, and sold his Wal-Mart stock for $53, how much profit did he make on his Wal-Mart investment?
6. Calculating yields. Assume you purchased a corporate bond at its current market price of $850 on January 2, 2002. It pays 9 percent interest and it will mature on December 31, 2011, at which time the corporation will pay you the face value of $1,000.
a. Determine the current yield on your bond investment at the time of purchase.
b. Determine the yield to maturity on your bond investment.
You are playing Texas Hold’em against one other opponent
You are playing Texas Hold’em against one other opponent.
• Your two down cards are 6 of (diamonds) & 7 of (diamonds).
• The first three cards to come up are 3 of (diamonds), 4♣ 9♠.
• The next card to come up is 10 of (diamonds).
You and your opponent have both already bet $24,000 into the pot each. Your opponent now adds $10,000 to the pot. You only have $10,000 left in total.
While you consider what to do, your opponent, in an effort to rattle you, reveals his down cards. They are 10♣ 10♠.
The Problem
Should you call his bet by tossing the rest of your money into the pot, or should you fold and give up the pot to your opponent?
Remember your opponent has at least a pair of 10s. What cards could come up to make your hand better? What could come up to make your opponent’s hand better? Is there any way you could tie each other? Also look at the expected value of the game. If you fold, you are assured a loss of $24,000. Make sure this fact is used in your analysis.
Write a 1-2 page paper in which you:
1. Explain your strategy for solving the problem.
2. Explain why your strategy will work.
3. Execute your strategy showing your mathematical work.
4. Draw conclusions from your work.
• Your two down cards are 6 of (diamonds) & 7 of (diamonds).
• The first three cards to come up are 3 of (diamonds), 4♣ 9♠.
• The next card to come up is 10 of (diamonds).
You and your opponent have both already bet $24,000 into the pot each. Your opponent now adds $10,000 to the pot. You only have $10,000 left in total.
While you consider what to do, your opponent, in an effort to rattle you, reveals his down cards. They are 10♣ 10♠.
The Problem
Should you call his bet by tossing the rest of your money into the pot, or should you fold and give up the pot to your opponent?
Remember your opponent has at least a pair of 10s. What cards could come up to make your hand better? What could come up to make your opponent’s hand better? Is there any way you could tie each other? Also look at the expected value of the game. If you fold, you are assured a loss of $24,000. Make sure this fact is used in your analysis.
Write a 1-2 page paper in which you:
1. Explain your strategy for solving the problem.
2. Explain why your strategy will work.
3. Execute your strategy showing your mathematical work.
4. Draw conclusions from your work.
Assume that you recently graduated with a major in finance and that you just landed a job as a financial planner
Assume that you recently graduated with a major in finance and that you just landed a job as a financial planner with Barney Smith Inc., a large financial services corporation. Your first assignment is to invest $100,000 for a client. Because the funds are to be invested in a new business that the client plans to start at the end of 1 year, you have been instructed to plan for a one year holding period. Further, your boss has restricted you to the investment alternatives shown in the table below. (Disregard for not the items at the bottom of the data: you will fill in the blanks later.)
Barney Smith’s economic forecasting staff has developed probability estimates for the state of the economy, and its security analysts have developed a sophisticated computer program that was used to estimate the rate of return on each alternative under each state of the economy. Alta Industries is an electronics firm; Repo Men Inc. collects past-due debts; and American Foam manufactures mattresses and various other foam products. Barney Smith also maintains an “index fund” that owns a market-weighted fraction of all publicly traded stocks; you can invest in that fund and thus obtain average stock market results. Given the situation as described, answer the following questions.
Barney Smith’s economic forecasting staff has developed probability estimates for the state of the economy, and its security analysts have developed a sophisticated computer program that was used to estimate the rate of return on each alternative under each state of the economy. Alta Industries is an electronics firm; Repo Men Inc. collects past-due debts; and American Foam manufactures mattresses and various other foam products. Barney Smith also maintains an “index fund” that owns a market-weighted fraction of all publicly traded stocks; you can invest in that fund and thus obtain average stock market results. Given the situation as described, answer the following questions.
In a city in Italy, 30% of the families have a MasterCard, 20% have an American Express card
In a city in Italy, 30% of the families have a MasterCard, 20% have an American Express card, and 25% have a Visa card. Eight percent of families have both a MasterCard and an American Express card. Twelve percent have both a Visa Card and a MasterCard. Six percent have both an American Express card and a Visa card.
a. What is the probability of selecting a family that has either a Visa card or an American Express card?
b. If a family has a MasterCard, what is the probability that it has a Visa card?
c. If a family has a Visa card, what is the probability it has a MasterCard?
Show all work.
Question # 2
A National study has determined that people who work full time average 43.4 hours worked per week.
Assume that the number of hours worked per week for those who work full time is normally distributed. Suppose 12% of these workers work more than 48 hours. Based on this percentage, what is the standard deviation of number of hours worked per week for those workers?
a. What is the probability of selecting a family that has either a Visa card or an American Express card?
b. If a family has a MasterCard, what is the probability that it has a Visa card?
c. If a family has a Visa card, what is the probability it has a MasterCard?
Show all work.
Question # 2
A National study has determined that people who work full time average 43.4 hours worked per week.
Assume that the number of hours worked per week for those who work full time is normally distributed. Suppose 12% of these workers work more than 48 hours. Based on this percentage, what is the standard deviation of number of hours worked per week for those workers?
A firm has five identified capital projects they could fund in the upcoming year
A firm has five identified capital projects they could fund in the upcoming year. Each project has a initial capital cost of $5,000,000, however the firm only has $15,000,000 allocated for capital projects in the current year. The company needs to decide which projects to fund. The firms initial cost of capital (discount rate) is 8%.
Cash Flows ($ in thousands) Projects A B C D E Year 1 $1,100 $6,000 -- $1,000 $500 2 $1,100 -- $1,000 $2,500 $1,500 3 $1,100 -- $2,000 $3,500 $3,000 4 $1,100 -- $3,000 $2,750 $3,500 5 $1,100 -- $2,200 $1,000 $4,500
1. What is the net present value of each investment? 2. According to the net present values, which investment(s) should the firm make? Why? 3. What is the internal rate of return on each investment? 4. According to the internal rates of return, which investment(s) should the firm make? Why? 5. Using the simple payback method which investments should they choose? 6. If the firm could reinvest the $3,600,000 earned in year 1 from investment B at 10 percent, what effect would that information have on your what the return would be on the investment? 7. If the firm’s cost of capital had been 11 percent, what would be NPV of the investments alternatives? What would be the IRR for the investment projects?
Cash Flows ($ in thousands) Projects A B C D E Year 1 $1,100 $6,000 -- $1,000 $500 2 $1,100 -- $1,000 $2,500 $1,500 3 $1,100 -- $2,000 $3,500 $3,000 4 $1,100 -- $3,000 $2,750 $3,500 5 $1,100 -- $2,200 $1,000 $4,500
1. What is the net present value of each investment? 2. According to the net present values, which investment(s) should the firm make? Why? 3. What is the internal rate of return on each investment? 4. According to the internal rates of return, which investment(s) should the firm make? Why? 5. Using the simple payback method which investments should they choose? 6. If the firm could reinvest the $3,600,000 earned in year 1 from investment B at 10 percent, what effect would that information have on your what the return would be on the investment? 7. If the firm’s cost of capital had been 11 percent, what would be NPV of the investments alternatives? What would be the IRR for the investment projects?
There are a number of companies that utilize a global supply chain management strategy
There are a number of companies that utilize a global supply chain management strategy. Identify and research a company with a successful global supply chain management strategy and provide basic background information. Discuss the strategies this company utilizes to get their product(s) distributed internationally and how they address risks and meet business demands.
Submit to your instructor your two to three page (not including title and reference pages). Your paper should be formatted according to APA style as outlined in the approved APA style guide, and should cite at least two scholarly sources in addition to the textbook.
Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.
Submit to your instructor your two to three page (not including title and reference pages). Your paper should be formatted according to APA style as outlined in the approved APA style guide, and should cite at least two scholarly sources in addition to the textbook.
Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.
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