Many assets provide a series of cash inflows over time; and many obligations require a series of payments. When the payments are equal and are made at fixed intervals, the series is an annuity. There are three types of annuities: (1) __________ (2)_________, and (3) __________-. One can find an annuity's future and present values, the interest rate built into annuity contracts, and the length of time it takes to reach a financial goal using an annuity.

Answer:

Fixed annuities

Variable annuities

Indexed annuities

Explanation:

Annuities are defined as contract that pays out regular amounts over time at a particular interest rate.

Usually there is an initial investment of a lumps sum or a series of deposits.

Annuities are classified based on level of risk and payout potential into 3:

- Fixed annuity give out a fixed guaranteed payout amount. The risk is low but the payout is low. Slightly above certificate of deposits.

- Variable annuity is one that gives room for a higher payout but risk is also higher. A set of mutual funds are invested in and payout is dependent on how they perform.

- Indexed annuity gives higher return that is tied to the performance of an index like the S&P 500. The risk is lower than that of variable annuity

______ factors are things in the global environment that may impact a firm’s operations or success, examples are a rise in interest rates, or a natural disaster.

Generating ideas often includes brainstorming or brainwriting. These techniques can be an effective way to produce the best ideas if they are done correctly. Read the scenario, and then identify how the brainstorming or brainwriting process could be improved. Jeanne, a girls’ outdoor adventure leader, created a meeting agenda to address a problem her troop had. Their cookie fundraiser was in trouble: The mint chocolate chip cookies were not selling. Jeanne wanted the girls to come up with new cookie ideas and innovative ways to sell them. The group began the session by yelling out cookie ideas ranging from real mud pies to snickerdoodles in the shape of a bear. It was an amazing session; everyone participated. The group came up with 50 new cookie ideas in less than 12 minutes, but they could remember only a few of them at the end of the meeting. To improve the group’s brainstorming, Jeanne should:_________

a. Use flip-charts and classify ideas
b. Create an agenda
c. Encourage out-of-the-box thinking

Choose whether the following situation represents crowdsourcing, crowd-storming, or crowdfunding. You own a local coffeeshop. Recently, you noticed that customers were doodling on your white paper cups. Intrigued, you set up a contest, and asked your customers to submit their best doodles to you. You chose your favorite doodle, and put it on a reusable cup. This is an example of:

a. Crowd-storming
b. Crowdsourcing
c. Crowdfunding

garland mills purchased a certain piece of macinery 3 years ago for $500,000. Its present resale value is $320,000. Assuming that the macine's resale value decreases exponentially, what will it be 4 years from now

Daily demand for a certain product is normally distributed with a mean of 138 and a standard deviation of 13. The supplier is reliable and maintains a constant lead time of 7 days. The cost of placing an order is $17 and the cost of holding inventory is $0.40 per unit per year. There are no stock-out costs, and unfilled orders are filled as soon as the order arrives. Assume sales occur over 358 days of the year.
Your goal here is to find the order quantity and reorder point to satisfy a 73 percent probability of not stocking out during the lead time.
a. To manage inventory, the company is using
Continuous review system
Periodic review system
b. Find the order quantity. (Round your answer to the nearest whole number.)
Order quantity books
c. Find the reorder point. (Use Excel's NORMSINV() function to find the correct critical value for the given α-level. Do not round intermediate calculations. Round "z" value to 2 decimal places and final answer to the nearest whole number.)
Reorder point

You want a seat on the board of directors of Red Cow, Inc. The company has 260,000 shares of stock outstanding and the stock sells for $51 per share. There are currently 5 seats up for election. The company uses straight voting. How much will it cost you to guarantee that you will be elected to the board

Using the information for the Melville Corporation, calculate the cash flow from operating activities.

Accounts payable increase $12,000
Accounts receivable increase 4,000
Accrued liabilities decrease 5,000
Amortization expense 7,000
Cash balance, January 1 22,000
Cash balance, December 31 23,000
Cash paid as dividends 31,000
Cash paid to purchase land 90,000
Cash paid to retire bonds payable at par 60,000
Cash received from issuance of common stock 37,000
Cash received from sale of equipment 19,000
Depreciation expense 29,000
Gain on sale of equipment 4,000
Inventory decrease 13,000
Net income 80,000
Prepaid expenses increase 2,000

Required:
a. Use a negative sign with answer to show cash outflow from (used by) operating activities.
b. Using the information for the Melville Corporation above, calculate the cash flow from financing activities.

To protect consumers from unfair credit practices, credit laws were established
-true
-false

Cute Camel Woodcraft Company’s income statement reports data for its first year of operation. The firm’s CEO would like sales to increase by 25% next year.
1. Cute Camel is able to achieve this level of increased sales, but its interest costs increase from 10% to 15% of earnings before interest and taxes (EBIT).
2. The company’s operating costs (excluding depreciation and amortization) remain at 60% of net sales, and its depreciation and amortization expenses remain constant from year to year.
3. The company’s tax rate remains constant at 25% of its pre-tax income or earnings before taxes (EBT).
4. In Year 2, Cute Camel expects to pay $100,000 and $1,759,500 of preferred and common stock dividends, respectively.
Complete the Year 2 income statement data for Cute Camel.
Cute Camel Woodcraft Company
Income Statement for Year Ending December 31
Year 1 Year 2 (forecasted)
Net sales $15,000,000
Less: Operating costs, except
depreciation and amortization 9,000,000
Less: Depreciation and
amortization expenses 600,000 600,000
Operating income (or EBIT) $5,400,000
Less: Interest expense 540,000
Pre-tax income (or EBT) 4,860,000
Less: Taxes (25%) 1,215,000
Earnings after taxes $3,645,000
Less: Preferred stock dividends 100,000
Earnings available to
common shareholders 3,545,000
Less: Common stock dividends 1,458,000
Contribution to retained
earnings $2,087,000 $2,539,250
Given the results of the previous income statement calculations, complete the following statements:
• In Year 2, if Cold Goose has 5,000 shares of preferred stock issued and outstanding, then each preferred share should expect to receive____in annual dividends.
• If Cold Goose has 400,000 shares of common stock issued and outstanding, then the firm’s earnings per share (EPS) is expected to change from_____in Year 1 to_____in Year 2.
• Cold Goose’s earnings before interest, taxes, depreciation and amortization (EBITDA) value changed from_____in Year 1 to_____in Year 2.
• It is_____to say that Cold Goose’s net inflows and outflows of cash at the end of Years 1 and 2 are equal to the company’s annual contribution to retained earnings, $3,485,500 and $4,284,812, respectively. This is because_____of the items reported in the income statement involve payments and receipts of cash.

Eastern Edison Company leased equipment from Hi-Tech Leasing on January 1, 2018.


Other information:

Lease term 5 years
Annual payments $79,000 on January 1 each year
Life of asset 5 years
Implicit interest rate 7%
PV, annuity due, 5 periods, 7% 4.3872
PV, ordinary annuity, 5 periods, 7% 4,1002

Hi-Tech's cost of the equipment $346,589 There is no expected residual value.

Required:
Prepare appropriate journal entries for Hi-Tech Leasing for 2018 and 2019. Assume a December 31 year-end.

You are preparing the financial statements for the Johnson family. To begin with you just want to identify each line and indicate where it will be going (e.g. Balance Sheet, Income Statement). Just write Balance Sheet and or Income statement next to each line.

Home Value $549,000
Joint Savings balance $5,400
Tom's 2014 Salary Before Taxes was $78,000
Kate's 2014 Salary Before Taxes was $84,000
Fed income taxes, state income taxes and FICA combined totaled $46,120 (paid)
2014 property taxes were $14,000 (paid)
Mortgage $300,000
House Payment plus insurance per month $2400
Kate bought Microsoft stock in 2012 and they still own it. It's worth $40,0000
Tom's 401k at work has several mutual funds worth a total of $120,000
Tom has a 2002 VW GTI worth about $3,000
Kate has a 2013 Audi S6 worth about $35,000
Car loan on Audi totals is $25,000
Car Payment is $1583
Car insurance for 2014 was $2000 (paid)
Credit Card Balance $4,000
Tom's monthly contribution o his 401k is $1,000
Joint Checing account balance $1,200

The Belmont principle of beneficence requires that:

Kirkwood acquires 100 percent of the outstanding voting shares of Soufflot Company on January 1, 2018. To obtain these shares, Kirkwood pays $400 cash (in thousands) and issues 10,000 shares of $20 par value common stock on this date. Kirkwood's stock had a fair value of $36 per share on that date. Kirkwood also pays $15 (in thousands) to a local investment firm for arranging the acquisition. An additional $10 (in thousands) was paid by Kirkwood in stock issuance costs.

The book values for both Kirkwood and Souflout as of January 1, 2018 follow. The fair value of each of Kirkwood and Soufflot accounts is also included. In addition, Soufflot holds a fully amortized trademark that still retains a $40 (in thousands) value. The figures below are in thousands. Any related question also is in thousands.


Kirkwood Inc Book Value Fair Value
Cash 900 80 80
Receivables 480 180 160
Inventory 660 260 300
Land 300 120 130
Buildings (net) 1,200 220 280
Equipment 360 100 75
Accounts payable 480 60 60
Long-term liabilities 1,140 340 300
Common stock 1,000 80
Additional paid-in capital 200 0
Retained earnings 1,080 480


Required:
What amount will be reported for consolidated cash after the acquisition is completed?

Managers should make marketing decisions in the light of their own knowledge and experience instead of viewing research reports as the final answer to their problems because:

a. the number of factors included in a marketing research study are not exhaustive.
b. decisions based on marketing research reports are highly risky.
c. there is no possibility that marketing research will be affected by researcher bias.
d. marketing research is not a systematic process for obtaining information.

Multiple-Step and Single-Step Income Statements, and Statement of Comprehensive Income On December 31, 2019, Opgenorth Company listed the following items in its adjusted trial balance:

Loss from fire (pretax) $8,000 General and administrative expenses $17,000
Interest revenue 3,000 Sales 180,000
Selling expenses 15,000 Unrealized decrease in fair value of available-for-sale securities 1,800
Cost of goods sold 90,000 Loss on sale of equipment (pretax) 2,000

Additional data:
Seven thousand shares of common stock have been outstanding the entire year. The income tax rate is 30% on all items of income.

Required:
Prepare a 2019 multiple-step income statement. Disregard EPS disclosure.

when the fed acts as a lender of last resort like it did in the financial crisis of 2007, it is performing its role of

Wight Corporation has provided its contribution format income statement for June. The company produces and sells a single product. Sales (4,400 units) $ 162,800 Variable expenses 79,200 Contribution margin 83,600 Fixed expenses 44,800 Net operating income $ 38,800 If the company sells 4,500 units, its total contribution margin should be closest to:

Use the information from the balance sheet and income statement below to calculate the following ratios:

a. Current Ratio
b. Acid-test ratio
c. Times interest earned
d. Inventory turnover
e. Total asset turnover
f. Operating profit margin
g. Days in receivables
h. Operating return on assets
i. Debt ratio
j. Fixed asset turnover
k. Return on equity

Balance Sheet ASSETS

Cash $100,000
Accounts receivable 30,000
Inventory 50,000
Prepaid expenses 10,000
Total current assets $190,000
Gross plant and equipment 401,000
Accumulated depreciation (66,000)
Total assets $525,000

LIABILITIES AND OWNERS' EQUITY

Accounts payable $90,000
Accrued liabilities 63,000
Total current liabilities $153,000
Long-term debt 120,000
Common stock 205,000
Retained earnings 47,000
Total liabilities and equity $525,000
Income Statement Sales* $210,000
Cost of goods sold (90,000)
Gross profit $120,000
Selling, general, and
administrative expenses (29,000)
Depreciation expenses (26,000)
Operating profits $65,000
Interest expense (8,000)
Earnings before taxes $57,000
Taxes (11,970)
Net income $45,030

James Dodgsen is a student in a graduate course in business. The professor in the course has given Dodgsen and his classmates a surprise quiz in class. Dodgsen did not do the reading for class that day because he had been grading papers as part of his TA position. He has been prepared for every other class that semester. As he glances as the quiz questions, he realizes that he does not know any of the answers. However, he sees that Jane Frampton, the student who sits next to him, is well prepared and answering the questions with great ease. He can see her answers because of her large, block-style printing. Dodgsen copies her answers.

a. Dodgsen is justified in using the answers because the pop quiz was unfair.
b. Dodgsen is justified in using the answers because he was fulfilling his TA responsibilities instead of preparing for class.
c. Dodgsen is justified in using the answers if he intends to read the material eventually.
d. Dodgsen has been dishonest.

Case in Discussion Extensive Enterprise’s management plans to finance its operations with bank loans that will be repaid as soon as cash is available. The company’s management expects that it will take 60 days to manufacture and sell its products and 50 days to receive payment from its customers. Extensive’s CFO has told the rest of the management team that they should expect the length of the bank loans to be approximately 110 days. Which of the following responses to the CFO’s statement is most accurate?

a. The CFO is not taking into account the amount of time the company has to pay its suppliers. Generally, there is a certain length of time between the purchase of materials and labor and the payment of cash for them.
b. The CFO can reduce the estimated length of the bank loan by this amount of time.
c. The CFO’s approximation of the length of the bank loans should be accurate, because it will take 110 days for the company to manufacture, sell, and collect cash for its goods.
d. All these things must occur for the company to be able to repay its loans from the bank.

g On which financial statements would you look to find the total costs of merchandise that remains and the total that has been sold?

Assume that Ms. Sawyer's salary is $35,000, up from $31,000 last year, while the CPI is 187.5 this year, up from 180 last year. This means that Ms. Sawyer's real income has ____________ since last year.

You see me now 4 kkt

The accounts in the ledger of Dependable Delivery Service contain the following balances on July 31, 2022.

Accounts Receivable $11,400
Prepaid Insurance $1,800
Accounts Payable 7,400
Maintenance and Repairs Expense 1,200
Cash 15,940
Service Revenue 15,500
Equipment 59,360
Dividends 800
Utilities Expense 950
Common Stock 40,000
Insurance Expense 600
Salaries and Wages Expense 8,400
Notes Payable, due 2024 31,450
Salaries and Wages Payable 900
Retained Earnings (July 1, 2022) 5,200

Required:
Prepare classified balance sheet for July 31, 2022.

a. On December 31, Gina receives a distribution of $140,000 cash in liquidation of her partnership interest. Nothing is stated in the partnership agreement about goodwill. Gina's outside basis for the partnership interest immediately before the distribution is $90,000. (1) How much is Gina's recognized gain from the distribution

Adriana Corporation manufactures football equipment. In planning for next year, the managers want to understand the relation between activity and overhead costs. Discussions with the plant supervisor suggest that overhead seems to vary with labor-hours, machine-hours, or both. The following data were collected from last year's operations:

Month Labor-Hours Machine-Hours Overhead Costs
1 730 1,354 $ 102,748
2 710 1,401 103,792
3 690 1,514 109,835
4 735 1,449 108,346
5 775 1,589 116,252
6 745 1,574 114,581
7 740 1,393 106,947
8 730 1,316 102,010
9 705 1,450 106,479
10 800 1,548 113,012
11 680 1,290 101,925
12 705 1,610 115,205
Required:
(a)
Use the high-low method to estimate the fixed and variable portions of overhead costs based on machine-hours. (Round your variable cost answer to 2 decimal places.)

(b)
Managers expect the plant to operate at a monthly average of 1,400 machine-hours next year. What are the estimated monthly overhead costs, assuming no inflation?

Cari created a list of ways to reduce her spending. Which activity should she omit from her list? Choose the correct answer below. use less expensive places for services such as haircuts wear items of clothing for an extra season buy store brands instead of name brands for food and other items rely on friends to treat me when I am out of money

Coronado Industries sells 50000 units for $13 a unit. Fixed costs are $350000 and net income is $100000. What should be reported as variable expenses in the CVP income statement?

The following are a trial balance and several transactions that relate to Lewisville's Concert Hall Bond Fund:


Lewisville Debt Service Fund Concert Hall Bond Fund Trial Balance July 1, 2012

Cash $60,000
Investments 40,000
Restricted fund balance $100,000
$100,000 $100,000

The following transactions took place between July 1, 2012, and June 30, 2013:


1. The city council of Lewisville adopted the budget for the Concert Hall Bond Fund for the fiscal year. The estimated revenues totaled $100,000, the estimated other financing sources totaled $50,000, and the appropriations totaled $125,000.
2. The General Fund transferred $50,000 to the fund.
3. To provide additional resources to service the bond issue, a property tax was levied upon the citizens. The total levy was $100,000, of which $95,000 was expected to be collected.
4. Property taxes of $60,000 were collected.
5. Revenue received in cash from the investments totaled $1,000.
6. Property taxes of $30,000 were collected.
7. The fund liability of $37,500 for interest was recorded, and that amount of cash was transferred to the fiscal agent.
8. A fee of $500 was paid to the fiscal agent.
9. Investment revenue totaling $1,000 was received in cash.
10. The fund liabilities for interest in the amount of $37,500 and principal in the amount of $50,000 were recorded, and cash for the total amount was transferred to the fiscal agent.
11. Investment revenue of S500 was accrued. Use the preceding information to do the following:
a. Prepare all the journal entries necessary to record the preceding transactions for the Concert Hall Bond Fund.
b. Prepare a trial balance for the Concert Hall Bond Fund as of June 30, 2013.
c. Prepare a statement of revenues, expenditures, and changes in fund balance and a balance sheet for the Concert Hall Bond Fund (assume all fund balance is restricted).
d. Prepare closing entries for the Concert Hall Bond Fund

Two manufacturers, denoted 1 and 2, are competing for 100 identical customers. Each manufacturer chooses both the price and quality of its product, where each variable can take any nonnegtive real number. Let pi and xi denote, respectively, the price and quality of manufacturer i's product. The cost to manufacturer i of producing for one customer is 10+5xi . Note in this expression that the cost is higher when the quality is higher. If manufacturer i sells to qi customers, then its total cost is qi(10+5xi). Each cutomer buys from the manufacturer who offers the greatest value, where the value of buying from manufacturer i is 1000+ xi - pi ; higher quality and lower price means more value. A manufacturer's is qi( pi- 10 - 5xi ). If both manufacturer offers the same value, then 50 customers buy from each manufacturer. If one manufacturer offers higher value, then 100 customers buy from it.
Find all symmetric Nash equilibria.

If the expected rate of return for the market is not much greater than the risk-free rate of return, what does this suggest about the general level of compensation for bearing systematic risk