Your client is a medium-sized company and is a leader in its small industry of producing replica vehicles of classic automobiles. Customers are either very wealthy individuals or from the entertainment industry (for example, movie production studios that require automobiles typical of a certain era). The company uses a proprietary accounting software package that includes […]
Your client’s degree of risk aversion is A = 3.5. a. What proportion, y, of the total investment should be invested in your fund? b. What is the expected value and standard deviation of the rate of return on your client’s optimized portfolio? You manage a risky portfolio with expected rate of return of 18% […]
Your company is experiencing a cash shortage this month and can only pay up to $ 150,000 of in-voices. You received the following list of invoices currently due. Required A. Determine the invoices to pay this month (i. e., in the next 30 days) and what the total cash disbursement is. (Assume no partial payments […]
Your company is reviewing the following accounts: Bonds payable ………………………………. Inventory Dividends …………………………………… Accounts payable Cash …………………………………………. Accounts receivable Accumulated depreciation-Cars …………….. Income taxes payable Common shares …………………………….. Net income Required: Group the preceding accounts as asset, liability, or shareholders equity accounts.
Your company plans to issue bonds later in the upcoming year. But with the economic uncertainty and varied interest rates, it is not clear how much money the company will receive when the bonds are issued. The company is committed to issuing 2,000 bonds, each of which will have a face value of $ 1,000, […]
Your co-worker wanted the afternoon off and you graciously agreed to finish up his work for him. Use the completed journal entries provided and post them to their T-accounts. Assume all accounts start with a zero balance. Compute the balance of each account and mark it as Bal.
Your employer, Wagner Inc., is a large Canadian public company that uses IFRS 16. You have collected the following information about a lease for a fleet of trucks used by Wagner to transport completed products to warehouses across the country. The trucks have an economic life of eight years. The lease term is from July […]
Your friend, Daniel Nat, recently began work as the lead accountant for the Asheville Company. Dan prepared the following balance sheet for December 31, 2018: Asheville Company Balance Sheet For the Year Ended December 31, 2018 Assets Land. . . . . . . . . . . . . . . . . . […]
Your friend Harold is trying to decide whether to buy or lease his next vehicle. He has gathered information about each option but is not sure how to compare the alternatives. Purchasing a new vehicle will cost $26,500, and Harold expects to spend about $500 per year in maintenance costs. He would keep the vehicle […]
Your grandmother would like to share some of her fortune with you. She offers to give you money under one of the following scenarios (you get to choose): 1. $7,000 a year at the end of each of the next eight years 2. $45,000 (lump sum) now 3. $75,000 (lump sum) eight years from now […]
