Question & Answer

Explain how each type of financial institution serves as a financial intermediary. (LO3)

Ten samples of size n = 8 have been collected from a process in statistical control, and the dimension of interest has been measured for each part. The calculated values of x for each sample are (mm) 9.22, 9.15, 9.20, 9.28, 9.19, 9.12, 9.20, 9.24, 9.17, and 9.23. The values of R are (mm) 0.24, 0.17, 0.30, 0.26, 0.26, 0.19, 0.21, 0.32, 0.21, and 0.23, respectively. (a) Determine the values of the center, LCL, and UCL for the x and R charts. (b) Construct the control charts and plot the sample data on the charts.

Do theories of the long-run and short-run consumption functions help us to understand consumer reactions to a change in taxes? (See section 17.1 and Case Studies 17.1 – 17.4 on the student website.

What is an operating segment, and when can information about two operating segments be aggregated?

An electron-beam welding operation uses the following process parameters: accelerating voltage = 25 kV, beam current = 100 milliamp, and the circular area on which the beam is focused has a diameter = 0.020 in. If the heat transfer factor = 90%, determine the average power density in the area in Btu/sec in2.

Supply tends to be more elastic in the long run than in the short run. Assume that a tax is imposed on a good that was previously untaxed. How will the incidence of this tax change as time passes? How will the incidence be affected if demand too becomes more elastic over time?

What are the two basic methods by which the circuit pattern is transferred to the copper surface of the boards?

Explain (using intuition instead of math) why stock prices may decrease in response to a higher risk-free rate according to the CAPM. In some periods, the risk-free rate rises in response to higher economic growth. Explain (using intuition instead of math) why stock prices may increase in this situation even though the risk-free rate increases. (LO2)

Discuss the reasons why individuals generally prefer capital gains over ordinary gains. Explain why corporate taxpayers might prefer capital gains over ordinary gains.

Rodriguez Corporation includes the following items in its liabilities at December 31, 2014. 1. Notes payable, $25,000,000, due June 30, 2015. 2. Deposits from customers on equipment ordered by them from Rodriguez, $6,250,000. 3. Salaries and wages payable, $3,750,000, due January 14, 2015. Instructions Indicate in what circumstances, if any, each of the three liabilities above would be excluded from current liabilities.

In a turning operation, spindle speed is set to provide a cutting speed of 1.8 m/s. The feed and depth of cut of cut are 0.30 mm and 2.6 mm, respectively. The tool rake angle is 8°. After the cut, the deformed chip thickness is measured to be 0.49 mm. Determine (a) shear plane angle, (b) shear strain, and (c) material removal rate. Use the orthogonal cutting model as an approximation of the turning process

Differentiate between an originating temporary difference and a reversing difference.

A spool of wire has a starting diameter of 2.5 mm. It is drawn through a die with an opening that is to 2.1 mm. The entrance angel of the die is 18° degrees. Coefficient of friction at the work-die interface is 0.08. The work metal has a strength coefficient of 450 MPa and a strain hardening coefficient of 0.26. The drawing is performed at room temperature. Determine (a) area reduction, (b) draw stress, and (c) draw force required for the operation.

A hot upset forging operation is performed in an open die. The initial size of the workpart is: Do = 25 mm, and ho = 50 mm. The part is upset to a diameter = 50 mm. The work metal at this elevated temperature yields at 85 MPa (n = 0). Coefficient of friction at the die-work interface = 0.40. Determine (a) final height of the part, and (b) maximum force in the operation.

Identify some of the non-machine tool applications of numerical control.

Define the difference between elastic and plastic deformation in terms of the effect on the crystal lattice structure

Garcia Corporation purchased a truck by issuing an $80,000, 4-year, zero-interest-bearing note to Equinox Inc. The market rate of interest for obligations of this nature is 10%. Prepare the journal entry to record the purchase of this truck.

Describe the mechanical limitation on the deduction for interest on qualified education loans.

The federal income tax scores very high on the economy criterion because the current IRS budget is relatively low compared to the costs of a typical collection agency.”  Explain why this statement may be considered wrong.

Crocker Corp. owes D. Yaeger Corp. a 10-year, 10% note in the amount of $330,000 plus $33,000 of accrued interest. The note is due today, December 31, 2014. Because Crocker Corp. is in financial trouble, D. Yaeger Corp. agrees to forgive the accrued interest, $30,000 of the principal, and to extend the maturity date to December 31, 2017. Interest at 10% of revised principal will continue to be due on 12/31 each year. Assume the following present value factors for 3 periods. 21/4% 23/8% 21/2% 25/8% 23/4% 3% Single sum .93543 .93201 .92859 .92521 .92184 .91514 Ordinary annuity of 1 2.86989 2.86295 2.85602 2.84913 2.84226 2.82861 Instructions (a) Compute the new effective-interest rate for Crocker Corp. following restructure. (Hint: Find the interest rate that establishes approximately $363,000 as the present value of the total future cash flows.) (b) Prepare a schedule of debt reduction and interest expense for the years 2014 through 2017. (c) Compute the gain or loss for D. Yaeger Corp. and prepare a schedule of receivable reduction and interest revenue for the years 2014 through 2017. (d) Prepare all the necessary journal entries on the books of Crocker Corp. for the years 2014, 2015, and 2016. (e) Prepare all the necessary journal entries on the books of D. Yaeger Corp. for the years 2014, 2015, and 2016.

Define hardenability.

Reveille Corporation experienced a complete loss of its lumber mill as the result of a fire. The company received $2 million from the insurance company. Rather than rebuild, Reveille decided to distribute the $2 million to its two shareholders. No stock was exchanged in return.  Under what conditions will the distribution meet the requirements to be treated as a partial liquidation and not a dividend?  Why does it matter to the shareholders?

A product is produced in batches. Batch size = 2000 units. Annual demand = 50,000 units, and unit cost of the product = $4.00. Setup time to run a batch = 2.5 hr, cost of downtime on the affected equipment is figured at $250/hr, and annual holding cost rate = 30%. What would the annual savings be if the product were produced in the economic order quantity?

Solve Problem 16.5, except that the diameter of the particles is 0.004 in. Assume the same packing factor.

At December 31, 2014, Fell Corporation had a deferred tax liability of $680,000, resulting from future taxable amounts of $2,000,000 and an enacted tax rate of 34%. In May 2015, a new income tax act is signed into law that raises the tax rate to 40% for 2015 and future years. Prepare the journal entry for Fell to adjust the deferred tax liability.