FIN 534 – Homework Chapter 4
Directions: Answer the following five questions on a separate document. Explain how you reached the answer or show your work if a mathematical calculation is needed, or both. Submit your assignment using the assignment link in the course shell. Each question is worth five points apiece for a total of 25 points for this homework assignment. 1. A $50,000 loan is to be amortized over 7 years, with annual end-of-year payments. Which of these statements is CORRECT? a. The annual payments would be larger if the interest rate were lower. b. If the loan were amortized over 10 years rather than 7 years, and if the interest rate were the same in either case, the first payment would include more dollars of interest under the 7-year amortization plan. c. The proportion of each payment that represents interest as opposed to repayment of principal would be lower if the interest rate were lower. d. The last payment would have a higher proportion of interest than the first payment. e. The proportion of interest versus principal repayment would be the same for each of the 7 payments.

2. Which of the following statements is CORRECT?
a. If you have a series of cash flows, each of which is positive, you can solve for I, where the solution value of I causes the PV of the cash flows to equal the cash flow at Time 0. b. If you have a series of cash flows, and CF0 is negative but each of the following CFs is positive, you can solve for I, but only if the sum of the undiscounted cash flows exceeds the cost. c. To solve for I, one must identify the value of I that causes the PV of the positive CFs to equal the absolute value of the PV of the negative CFs. This is, essentially, a trialand-error procedure that is easy with a computer or financial calculator but quite difficult otherwise. d. If you solve for I and get a negative number, then you must have made a mistake. e. If CF0 is positive and all the other CFs are negative, then you cannot...

...Cinthia Gutierrez
Acc 307
HomeworkChapter4
3. Allen visits Reno, Nevada, once a year to gamble. This year his gambling loss was $25,000. He commented to you, “At least I didn’t have to pay for my airfare and hotel room. The casino paid that because I am such a good customer. That was worth at least $3,000. “What are the relevant tax issues for Allen?
Allen received something of value from the casino. Under the broad concept of income, the airfare and hotel accommodations would be considered income. However, Allen could argue that the income should be matched with his $25,000 in gambling losses on the trip, and when the income and losses are combined, the net effect is an economic loss
7. Why does the constructive receipt doctrine apply to cash basis taxpayers but not to accrual basis taxpayers?
The cash method taxpayer is subject to the constructive receipt doctrine. Generally, the cash basis taxpayer does not recognize income until it is collected. Under the constructive receipt concept, when the taxpayer has earned the income and the customer has offered to pay, the taxpayer cannot defer its recognition by postponing the date when the income is collected. The constructive receipt doctrine is not relevant to accrual basis taxpayers, who must recognize income when the taxpayer has a right to receive it even though the income has not been collected
12. Wade paid $7,000 for an automobile that needed substantial...

...systems developme nt is super complex, DFDs and flowcharts ar! e tools that are used to fix order from sanatorium and complexity.Â (Ch 3, p. 50)| | | Â | Points Received:| 4 of 5| Â | Comments:| First, data flow diagrams and flowcharts are the two most frequently used development and documentation tools used today. Second, since systems development is extremely complex, DFDs and flowcharts are tools that are used to create order from chaos and complexity.| |
TCO 1) Name two reasons why it is important to have a working knowledge of DFDs and flowcharting. (Points TCO 1) Name two reasons why it is important to have a working knowledge of DFDs and flowcharting. (Points
The flow diagram and the flowcharts are the two more common systems use. Also when it comes to the system development they can get very complex meaning that the DFD and the flowchart are tools that can be used to create order form chaos and complexity.
TCO 1) What is the purpose behind the five primary activities in the value chain?
First, info flow diagrams and flowcharts argon the two most much utilize development and musical accompaniment tools employ today. Second, since systems developme nt is super complex, DFDs and flowcharts ar! e tools that are used to fix order from sanatorium and complexity.Â (Ch 3, p. 50)| | | Â | Points Received:| 4 of 5| Â | Comments:| First, data flow diagrams and flowcharts are the two most frequently used development and documentation tools...

...Brandon Powell
FIN 534 Chapter4
Question 1
Answer: C
A, D, and E can be ruled out as incorrect by simple reasoning. “B” is also incorrect because interest in the first year would be Loan amount × interest rate regardless of the life of the loan, so the interest payment would be identical for the first payment. Think about the situation where r = 0%, statement “C” is the "most logical guess." One could also set up an amortization schedule and change the numbers to confirm that only c is correct.
Question 2
Answer: C
To solve for I, one must identify the value of I that causes the PV of the positive CFs to equal the absolute value of the PV of the negative CFs. This is essentially a trial and error procedure that is easy with a computer or financial calculator but difficult otherwise.
Question 3
Answer: D
Effect Annual Rate of Riverside Bank:
rR = (1 + (0.065 / 12)) ^ 12 = 1.067
Effective Annual rate of Midwest Bank
rM = (1 = (0.07 / 1)) ^ 1 = 1.07
Effective Annual Rate of Midwest Bank is higher by (1.07 – 1.067) 0.003 or 0.3%
Question 4
Answer: A
8 i (interest earned)
46 n (periods remaining)
-2500 pmt (payment made into the account each period)
0 PV (starting balance of account)
solve for FV
FV = $1,129,750.38
We can now use this value to solve backwards
8 i
41 n (only 41 more payments here)
0 PV (starting balance)
1,129,750.38 FV (ending value)
solve for pmt
pmt = 3,725.55 ~ 3,726
Question 5...

...| Corporate Finance2 CreditsBU.231.620.62Thursday 6pm – 9pm, 10/18/2012--12/13/2012Fall2, 2012Columbia, Columbia Center, 218 |
Instructor
Shabnam Mousavi
Contact Information
Phone Number: (410)234-9450
E-mail Address: shabnam@jhu.edu
Office Hours
Monday/Thursday 10am-noon
Required Text and Learning Materials
(1) Berk, J. and P. DeMarzo. 2007. Corporate Finance. 2nd Edition. Pearson, Addison-Wesley with MyLab access. The ISBN is 0-13-295-040-5.
(2) Lecture Notes. The lecture notes will be posted weekly on Blackboard, before class.
(3) MyFinanceLab: All homework and quizzes are posted on MyFinanceLab. Instructions available at the end of this syllabus. Course ID: mousavi28617
Blackboard Site
A Blackboard course site is set up for this course. Each student is expected to check the site throughout the semester as Blackboard will be the primary venue for outside classroom communications between the instructors and the students. Students can access the course site at https://blackboard.jhu.edu. Support for Blackboard is available at 1-866-669-6138.
Course Evaluation
As a research and learning community, the Carey Business School is committed to continuous improvement. Therefore each student must complete the course evaluation as part of the continuous improvement process. Information on how to complete the evaluation will be provided near the end of the course.
Disability Services
Johns Hopkins University and the Carey...

...E -11
DM 5
DL 4
VMO 3
FMO = 180,000/50,000 = 3.6
Total = 15.6
15.6 * 5,000
(50,000-45000) = 78,000
E-12
DM 5
DL 4
VMO 3
Cost per unit = 12 $
EIV = 12 * 5000 = 60,000
E-13
Difference 3.6 * 5000 = 18,000
And 78,000 – 60,000 = 18,000
E-14
CGS sold = 45000(sold) * 15.60 = 702,000
E15
12 * 45000 = 540,000
E16
Sales = 30 * 45,000 = 1,350,000
CGS 702,000
CM 648,000
Less S & admin. 160,000
Net income 488,000
E17
Sales = 30 * 45,000 = 1,350,000
Less var. CGS 12*45000 540,000
CM 810,000
less fixed costs:
FMO 180,000
Fixed S & admin. 160,000
Net income 470,000
EX5-18
3.6 * 5000 = 18,000
And 488,000 – 470,000 = 18,000
Problem 5-2
VC per unit = 75
2013 2014 2015
Full cost per unit = 50,000/5000 50,000/6,000 50,000/4000
10 8.33 12.50
Add 75 75 75
= 85 83.33 87.50
Sales= 225*5000 1,125,000 1,125,000 1,125,000
Less CGS 85*5,000 83.33*5000 87.5 *4000 +83.33*1000
= 425,000 416,000 433,333
CM = 700,000 708,350 691,667
Less s&admin 5,000 5,000 5,000
Net Income 695,000 703,350 686,667
EINV 0 83.33 * 1000 0
=83,330
b. In 2016 production exceeded the sales. The fixed manufacturing ov. Expense from 2015 ending inventory is included in CGS in 2016. Which explains the lowest income in 2016.
In 2015 because production was more than sales ....

...Chapter4Homework Answer Sheet
Name:
ID Number:
Instructions
Download this form and type in your answers. When you are done, upload the finished form. Each answer is worth 5 points.
For Exercises 18-29, type your answers in this table:
18. | 19. | 20. | 21. | 22. | 23. | 24. | 25. | 26. | 27. | 28. | 29. |
F | A | D | C | B | E | F | A | D | C | B | E |
For Exercise 31, type your answer below:
A gate accepts one or more input signals and produces an output signal. Each type of gate performs one logical function. A circuit is a combination of gates designed to accomplish a more complex logical function.
For Exercise 44:
Type the Boolean expression below:
X=A+B+C
Fill in the truth table:
A | B | C | X |
0 | 0 | 0 | 0 |
0 | 0 | 1 | 1 |
0 | 1 | 0 | 1 |
0 | 1 | 1 | 1 |
1 | 0 | 0 | 1 |
1 | 0 | 1 | 1 |
1 | 1 | 0 | 1 |
1 | 1 | 1 | 1 |
For Exercise 49, type your answer below:
A Source is an electric signal. The base value regulates a gate that determines whether the connection between the source and ground (emitter) is made. An output is usually connected to the source.
For Exercise 54, type your answer below:
Combination circuit is a circuit whose output is solely determined by its input values. In a Sequential circuit a circuit whose output is a function of its input values and the current state of the circuit.
For Exercise 56:
Draw your answer on a separate piece of paper....

...Chapter 3 Homework
1. Manufacturing overhead is not assigned to jobs because that would make the costs direct costs and not overhead costs. The total overhead costs are estimated at the beginning of the year. (p. 90)
2. The four-step process used to compute predetermined overhead rate starts with 1st estimating the total amount of the allocation based that will be required for next period’s estimated level of production. The 2nd step is to estimate the total fixed manufacturing overhead cost for the coming period and the variable manufacturing overhead cost per unit of the allocation base. The 3rd step is to use the cost formula of Y = a + bX where Y = the estimated total manufacturing overhead cost, a = the estimated total fixed manufacturing overhead cost, b = the estimated variable manufacturing overhead cost per unit of the allocation base, and X = the estimated total amount of the allocation base. And the 4th step is to compute the predetermined overhead rate. The estimated amount of the allocation base is determined before estimating the total manufacturing overhead cost; which needs to be done because total manufacturing overhead cost includes variable overhead costs that depend on the amount of the allocation base. (p. 89)
3. The purpose of the job cost sheet in a job-order costing system is to record the materials, labor, and manufacturing overhead costs charged to a particular job. (p. 86)
4. A sales order, a...

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MAT 540 Week 4HomeworkChapter 15 problems
2. The manager of the Carpet City outlet needs to make an accurate forecast of the demand for SoftShag carpet (its biggest seller).If the manager does not order enough carpet from the carpet mill,customers will buy their carpet from one of Carpet City’s many competitors. The manager has collected the following demand data for the past 8 months:
Month Demand for Soft Shag Carpet (1,000 yd.)
1 8
2 12
3 7
4 9
5 15
6 11
7 10
8 12
a. Compute a 3-month moving average forecast for months 4 through 9.
b. Compute a weighted 3-month moving average forecast for months 4 through 9. Assign weights of 0.55,0.33,and 0.12 to the months in sequence, starting with the most recent month.
c. Compare the two forecasts by using MAD. Which forecast appears to be more accurate?
6. The manager of the Petroco Service Station wants to forecast the demand for unleaded gasoline nextmonth so that the proper number ofgallons can be ordered from the distributor.The owner has accumulated the following data on demand for unleaded gasoline from sales during the past 10 months:
Month Gasoline Demanded (gal.)
October 800
November 725
December 630
January 500
February 645
March 690
April 730
May 810
June 1,200
July 980
a. Compute an exponentially...