[jeff]

Post by Another71.

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AUD - 79
BEC - 80
FAR - 76
REG - 92

Jeff Elliott, CPA (KS)
NINJA CPA | NINJA CMA | NINJA CPE | Another71

[Anonymous]

A shift of the demand curve for a country’s currency to the right could be caused by which of the following?

A. A foreign government placing restrictions on the importation of the country’s goods.

B. A fall in the country’s interest rates.

C. A rise in consumer incomes in another country.

D. Domestic inflation worsens.

can someone explain why the answer is c and not b?

[Tarheelgirl]

This is what my notes say…

As incomes rise in one country, the prices of foreign currencies rise as well, and the local currency will depreciate.

Interest rates in a given country rise relative to those of other countries, the demand for that country's currency rises.

FAR - 46, 79 (7/8/14)
AUD - 56, 59, 2/23/15 3rd times a charm!
BEC - 69, 74 Really??
REG - April, I hope. Fingers crossed!

[Anonymous]

A company purchased property that it expects to sell for $14,000 next year. The net present value of the investment is $1,000. The company is guaranteed an interest rate of 12% by the bank. What amount did the company pay for the property?

a. $11,500

b. $12,500

c. $13,000

d. $13,500

why do you do 14000/(1.12)?? I guess I am asking for the theory behind dividing anything by 1+the IR.

thanks

[Anonymous]

The NPV is going to be your cash inflows (return) versus your cash outflows (investment).

I think: 12% of your return is straight interest, not your actual cash investment. So, you need to figure out what true cash amount invested with a 12% return included will give you $14,000. X * 1.12 = $14,000

At first glance it looks like the simple answer is $13K.

[Anonymous]

thanks bobcat

however the answer becker gives is

14000/(1.12)=12500. 12500 – x = 1000 npv x=11500

[JS867_5309]

The Frame Supply Company has just acquired a large account and needs to increase its working capital by $100,000. The controller company has identified the following source of funds:

Issue $110,000 of 6-month commercial paper to net $100,000 (New paper would be issued every six months).

Assume a 360-day year on all of your calculations. The cost of this source is:

A) 10.0%

B) 11.1%

C) 18.2%

D) 20.0%

Exam:I'm done 🙂 🙂 🙂
REG - 71 (2/22/14); 67 (4/3/14); 74 (8/29/15); 83 (2/29/16)!!!
BEC - 72 (5/24/14); 85 (1/3/15)!!!!
AUD - 72 (8/23/14); 76 (10/15/14)!!!
FAR - 77 (5/26/15)!!!

Started in 2013 using Kaplan and failed REG, REG, BEC, AUD. Switched to NINJA suite in Sept 2014 and passed AUD...then BEC...then FAR!
REG took 2 tries but I finally got it in too!
I'm a hard convert - Using NINJA method with NINJA video/book/notes/MCQ

Education: Check
Experience: 3 months left! I hit 4 years on May 30 🙂

[Anonymous]

@dsch — yeah, my bad. I think that's because you need to subtract 1,000 from the 12,500 since your return is $1K more than what you invested.

[Anonymous]

@JS — It's either (D) or (C).

I'll go with (D)?

[JS867_5309]

The answer is D.

Explanation: To retain $100,000 for a full 12 months requires two issues at $110,000 each. Therefore, the interest would be 10,000 + 10,000 = 20,000. The cost would be 20,000/100,000 = .2 or 20%

What I don't understand is why the denominator doesn't change to 200,000. If you issue a second set of commercial paper, don't you have double the income as well as the expense?

Exam:I'm done 🙂 🙂 🙂
REG - 71 (2/22/14); 67 (4/3/14); 74 (8/29/15); 83 (2/29/16)!!!
BEC - 72 (5/24/14); 85 (1/3/15)!!!!
AUD - 72 (8/23/14); 76 (10/15/14)!!!
FAR - 77 (5/26/15)!!!

Started in 2013 using Kaplan and failed REG, REG, BEC, AUD. Switched to NINJA suite in Sept 2014 and passed AUD...then BEC...then FAR!
REG took 2 tries but I finally got it in too!
I'm a hard convert - Using NINJA method with NINJA video/book/notes/MCQ

Education: Check
Experience: 3 months left! I hit 4 years on May 30 🙂

[Anonymous]

the way i reason it out is that for the first six months its 10/100=.1 and then you issue MORE commercial paper separately for the next six month at the same rate so again its 10/100=.1 and thats how you ends up with 20%

[Anonymous]

The accountant for Champion Brake Inc. applies overhead based on machine hours. The budgeted overhead and machine hours for the year are $260,000 and 16,000, respectively. The actual overhead and machine hours incurred were $275,000 and 20,000. The cost of goods sold and inventory data compiled for the year is as follows:

Direct Materials. $ 50,000

COGS. 450,000

WIP (units). 100,000

Finished Goods (units). 150,000

What is the amount of over/underapplied overhead for the year

a. $65,000

b. $50,000

c. $15,000

d. $67,000

[Anonymous]

(B) — $50,000 over-applied.

All the rest of the info on the bottom is garbage. Don't you just love that?

[Anonymous]

B (as in bobcat) is correct

I need to slow it down sometimes as I just jumped to 15,000 without noticing a change in the hours. I have 10 days and have already started review. I'm going from part time to full time starting Monday so I hope I can make it.

[Anonymous]

You'll be fine. Once you get through the material once you need to just practice MCQs to reiterate and bury the concepts in your brain to notice fact patterns. That's how I learn.

When I see the budgeted overhead cost & hours I know that's the first calc I need to do to get my per unit rate. Then just take that times your actual and compare against actual dollar amount. Anything greater is over-applied, anything less is under-applied.

I'm so ready to take this thing already. I wish I could take it today.

[Anonymous]

Going through Variances today and here's one for all of you:

Management has reviewed the standard cost variance analysis and is trying to explain an unfavorable labor efficiency variance of $8,000. Which of the following is the most likely cause of the variance?

A. The new labor contract increased wages

B. The maintenance of machinery has been inadequate for the last few months

C. The department manager has chosen to use highly skilled workers

D. The quality of raw materials has improved greatly

[Author]

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