Please give me the correct answer with necessary calculations 2. Doggie company has the following production budget for...

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Finance

Please give me the correct answer with necessarycalculations
2. Doggie company has the following production budgetfor one of the products for the first quarter of 2016:
Month production
January 18300
February 15500
March 12000
Each units required 2 pounds material K9 which cost $5per pound. Doggie has 1000 pounds of K9 on hand on December 31,2015, and wants an inventory of K9 equal to 10% percent of the needmonth’s production requirements. What is the cost of K9 purchasedin February?
a. 176400
b. 188600
c. 152400
d. 193600
3. The production budget is required to prepare all ofthe following budgets except :
A.the overhead budget.
B.the selling and administrative budget.
C.the labor budget
D.the materials purchase budget.
4. Which of the following statement iscorrect?
a. All the answers are incorrect.
b. A cash flow can be an inflow (a deposit, a cost, or an amountpaid to others) or an outflow (a receipt from others).
c. A regular amortizing loan calculates a monthly interestcharge by multiplying the beginning loan balance by the effectiverate.
d. Annual compounding means that interest is paid twice ayear.
e. Annuities must have constant payments for a fixed number ofperiods and if these conditions do not hold, then the series is notan annuity.
5. Which of the following statement isincorrect?
a. Discounting is the process of finding the present value (PV)of a future cash flow or a series of cash flows.
b. Most of the answers are correct.
c. The nominal annual interest rate or just the nominal rate isthe rate quoted by banks, brokers, and other financialinstitutions.
d. As a result of compounding, the effective annual rate on abank deposit or a loan is always equal to or greater than thenominal rate on the deposit or loan.
e. Discounting is the same as compounding.
6. Which of the following statement isincorrect?
a. Before 1968, lenders were not required to tell borrowers theAPR but this changed when the Congress passed the Consumer CreditProtection Act in 1968.
b. The cash flows for an annuity due must all occur at thebeginning of the periods.
c. An amortized loan is paid off with uneven payments overinfinitely many periods.
d. A bank loan's nominal interest rate will always be equal toor less than its effective annual rate, assuming positive interestrates and holding other things constant.
e. Most of the answers are correct.
7. Which of the following statement iscorrect?
a. When compounding occurs more frequently than once a year, thenominal rate must be converted to a periodic rate, and the numberof years must be converted to periods.
b. If the annuity payments occur at the end of each period, thenwe call it an annuity due.
c. All the answers are incorrect.
d. An ordinary annuity is a series of cash flows in which theamount varies from one period to the next.
e. An ordinary annuity has payments occurring at the beginningof each period.
8. Which of the following statement iscorrect?
a. The process of going forward, from present values (PVs) tofuture values (FVs), is called discounting.
b. Discounting is the process of determining the future value(FV) of a cash flow or a series of cash flows.
c. If you know the cash flows and the PV of a cash flow stream,you can determine its interest rate.
d. All the answers are incorrect.
e. Compounding is the process of finding the present value of asingle payment or series of payments.
9. Which of the following statement isincorrect?
a. An inflow is a deposit, a cost, or an amount paid to others,while an outflow is a receipt collected from others.
b. Regarding a 20-year monthly payment amortized mortgage with anominal interest rate of 10%, a smaller proportion will beprincipal, than for the last monthly payment.
c. Most of the answers are correct.
d. To find the PV of an uneven series, find the PV of eachindividual cash flow and then sum them.
e. The greater the number of compounding periods within a year,then the smaller the present value of a given lump sum to bereceived at some future date.
10. Which of the following statement isincorrect?
a. An ordinary annuity has payments occurring at the end of eachperiod.
b. A cash flow can be an inflow (a receipt from others) or anoutflow (a deposit, a cost, or an amount paid to others).
c. If interest is earned only on the principal, we call itcompound interest.
d. Most of the answers are correct.
e. An amortized loan is paid off with equal payments over aspecified period.

Answer & Explanation Solved by verified expert

4.4 Ratings (917 Votes)

Answer to Q4 Correct Statement is b A cash flow can be an inflow a deposit a cost or an amount paid to others or an outflow a receipt from others The below statement could have been correct if words in bold would have been there e See Answer

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Please give me the correct answer with necessarycalculations2. Doggie company has the following production budgetfor one of the products for the first quarter of 2016:Month productionJanuary 18300February 15500March 12000Each units required 2 pounds material K9 which cost $5per pound. Doggie has 1000 pounds of K9 on hand on December 31,2015, and wants an inventory of K9 equal to 10% percent of the needmonth’s production requirements. What is the cost of K9 purchasedin February?a. 176400b. 188600c. 152400d. 1936003. The production budget is required to prepare all ofthe following budgets except :A.the overhead budget.B.the selling and administrative budget.C.the labor budgetD.the materials purchase budget.4. Which of the following statement iscorrect?a. All the answers are incorrect.b. A cash flow can be an inflow (a deposit, a cost, or an amountpaid to others) or an outflow (a receipt from others).c. A regular amortizing loan calculates a monthly interestcharge by multiplying the beginning loan balance by the effectiverate.d. Annual compounding means that interest is paid twice ayear.e. Annuities must have constant payments for a fixed number ofperiods and if these conditions do not hold, then the series is notan annuity.5. Which of the following statement isincorrect?a. Discounting is the process of finding the present value (PV)of a future cash flow or a series of cash flows.b. Most of the answers are correct.c. The nominal annual interest rate or just the nominal rate isthe rate quoted by banks, brokers, and other financialinstitutions.d. As a result of compounding, the effective annual rate on abank deposit or a loan is always equal to or greater than thenominal rate on the deposit or loan.e. Discounting is the same as compounding.6. Which of the following statement isincorrect?a. Before 1968, lenders were not required to tell borrowers theAPR but this changed when the Congress passed the Consumer CreditProtection Act in 1968.b. The cash flows for an annuity due must all occur at thebeginning of the periods.c. An amortized loan is paid off with uneven payments overinfinitely many periods.d. A bank loan's nominal interest rate will always be equal toor less than its effective annual rate, assuming positive interestrates and holding other things constant.e. Most of the answers are correct.7. Which of the following statement iscorrect?a. When compounding occurs more frequently than once a year, thenominal rate must be converted to a periodic rate, and the numberof years must be converted to periods.b. If the annuity payments occur at the end of each period, thenwe call it an annuity due.c. All the answers are incorrect.d. An ordinary annuity is a series of cash flows in which theamount varies from one period to the next.e. An ordinary annuity has payments occurring at the beginningof each period.8. Which of the following statement iscorrect?a. The process of going forward, from present values (PVs) tofuture values (FVs), is called discounting.b. Discounting is the process of determining the future value(FV) of a cash flow or a series of cash flows.c. If you know the cash flows and the PV of a cash flow stream,you can determine its interest rate.d. All the answers are incorrect.e. Compounding is the process of finding the present value of asingle payment or series of payments.9. Which of the following statement isincorrect?a. An inflow is a deposit, a cost, or an amount paid to others,while an outflow is a receipt collected from others.b. Regarding a 20-year monthly payment amortized mortgage with anominal interest rate of 10%, a smaller proportion will beprincipal, than for the last monthly payment.c. Most of the answers are correct.d. To find the PV of an uneven series, find the PV of eachindividual cash flow and then sum them.e. The greater the number of compounding periods within a year,then the smaller the present value of a given lump sum to bereceived at some future date.10. Which of the following statement isincorrect?a. An ordinary annuity has payments occurring at the end of eachperiod.b. A cash flow can be an inflow (a receipt from others) or anoutflow (a deposit, a cost, or an amount paid to others).c. If interest is earned only on the principal, we call itcompound interest.d. Most of the answers are correct.e. An amortized loan is paid off with equal payments over aspecified period.