Question: If Samantha Jones had the following itemized

> Use the following items to determine the total assets, total liabilities, net worth, total cash inflows, and total cash outflows. a. Total assets $ b. Total liabilities $ c. Net worth $ d. Total cash inflows $ e. Total cash outflows $

> Using the following balance sheet items and amounts, calculate the total liquid assets and total current liabilities.

> Based on the following data, determine the amount of total assets, total liabilities, and net worth.

> Casper Energy Exploration reports that the corporation’s assets are valued at $185,000,000, its liabilities are $80,000,000, and it has issued 6,000,000 shares of stock. What is the book value for a share of Casper stock? (LO12.3)

> Kelly and Tim Jarowski plan to refinance their mortgage to obtain a lower interest rate. They will reduce their mortgage payments by $56 a month. Their closing costs for refinancing will be $1,670. How long will it take them to cover the cost of refinanc

> If an adjustable-rate 30-year mortgage for $120,000 starts at 4.0 percent and increases to 5.5 percent, what is the amount of increase of the monthly payment? (Use Exhibit 7–7)

> Which mortgage would result in higher total payments? Mortgage A: $985 a month for 30 years Mortgage B: $780 a month for 5 years and $1,056 for 25 years

> Based on Exhibit 7–7, what would be the monthly mortgage payments for each of the following situations? a. A $160,000,15-year loan at 4.5 percent. b. A $215,000,30-year loan at 5 percent. c. A $190,000, 20-year loan at 6 percent.

> Estimate the affordable monthly mortgage payment, the affordable mortgage amount, and the affordable home purchase price for the following situation (see Exhibit 7–6).

> Ben and Carla Covington plan to buy a condominium. They will obtain a $220,000, 30-year mortgage, at 5 percent. Their annual property taxes are expected to be $1,800. Property insurance is $480 a year, and the condo association fee is$220 a month. Based

> Condominiums usually require a monthly fee for various services. At $235 a month, how much would a homeowner pay over a 10-year period for living in this housing facility?

> Many locations require that renters be paid interest on their security deposits. If you have a security deposit of $1,800,how much would you expect a year at 2 percent?

> You estimate that you can save $3,450 by selling your home yourself rather than using a real estate agent. What would be the future value of that amount if invested for five years at 3 percent?

> In an attempt to have funds for a down payment in five years, James Dupont plans to save $3,800 a year for the next five years. With an interest rate of 4 percent, what amount will James have available for a down payment after the five years?

> General Motors Corporations has a 1.34 beta. If the overall stock market increases by 6 percent, based on this information, how much should investors assume that General Motors will increase?

> Based on the following data, would you recommend buying or renting? Assume an after-tax savings interest rate of 6 percent and a tax rate of 28 percent. Assume this individual has other tax deductions that exceed the standard deduction amount.

> Based on the data provided here, calculate the items requested: b. the operating cost per mile.

> Based on the following data, prepare a financial comparison of buying and leasing a motor vehicle with a $24,000 cash price: What other factors should a person consider when choosing between buying or leasing?

> If a person saves $62 a month by using coupons and doing comparison shopping, (a) what is the amount for a year?(b) What would be the future value of this annual amount over 10 years, assuming an interest rate of 4 percent?

> What would be the net present value of a microwave oven that costs $159 and will save you $68 a year in time and food away from home? Assume an average return on your savings of 4 percent for five years. (Hint: Calculate the present value of the annual s

> A work-at-home opportunity is available in which you will receive 3 percent of the sales for customers you refer to the company. The cost of your “franchise fee” is $600. How much would your customers have to buy to cover the cost of this fee?

> A service contract for a video projection system costs $80 a year. You expect to use the system for six years. Instead of buying the service contract, what would be the future value of these annual amounts after six years if you earn 3 percent on your sa

> Calculate the unit price of each of the following items: a. Motor oil—2.5 quarts for $1.95 cents/quart b. Cereal—15 ounces for $2.17 cents/ounce c. Canned fruit—13 ounces for 89 cents cents/ounce d. Facial tissue—300 tissues for $2.25 cents/100 tissues

> John Walters is comparing the cost of credit to the cash price of an item. If John makes a $80 down payment and pays$35 a month for 24 months, how much more will that amount be than the cash price of $685?

> A class-action suit against a utility company resulted in a settlement of $1.4 million for 62,000 customers. If the legal fees, which must be paid from the settlement, are $300,000, what amount will each plaintiff receive? (LO 6.4)

> Jamie and Peter Dawson own 180 shares of Duke Energy common stock. Duke Energy's quarterly dividend is $0.95 per share. What is the amount of the dividend check the Dawson couple will receive for this quarter? (LO12.1)

> Based on the following, calculate the costs of buying versus leasing a motor vehicle.

> An online buying club offers a membership for $300, for which you will receive a 10 percent discount on all brand-name items you purchase. How much would you have to buy to cover the cost of the membership?

> What is the annual opportunity cost of a checking account that requires a $300 minimum balance to avoid service charges? Assume an interest rate of 3 percent.

> A certificate of deposit will often result in a penalty for withdrawing funds before the maturity date. If the penalty involves two months of interest, what would be the amount for early withdrawal on a $20,000, 5 percent CD?

> Janie has a joint account with her mother with a balance of $562,000. Based on $250,000 of Federal Deposit Insurance Corporation coverage, what amount of Janie’s savings would not be covered by deposit insurance?

> With a 28 percent marginal tax rate, would a tax-free yield of 7 percent or a taxable yield of 9.5 percent give you a better return on your savings? Why?

> What would be the annual percentage yield for a savings account that earned $56 in interest on $800 over the past 365 days?

> For each of these situations, determine the savings amount. Use the time value of money tables in Chapter 1 (Exhibit 1–3)or in the Chapter 1 appendix. a. What would be the value of a savings account started with $700, earning 4 percent (compounded annua

> A payday loan company charges 6 percent interest for a two-week period. What would be the annual interest rate from that company?

> If a person has ATM fees each month of $16 for six years, what would be the total cost of those banking fees?

> After researching Valero Energy common stock, Sandra Pearson is convinced the stock is overpriced. She contacts her account executive and arranges to sell short 250 shares of Valero Energy. At the time of the sale, a share of common stock had a value o

> Based on the following information, prepare a bank reconciliation (see page 131) to determine adjusted (corrected) balance:

> What would be the net annual cost of the following checking accounts? a. Monthly fee, $3.75; processing fee, 25 cents per check; checks written, an average of 14 a month. b. Interest earnings of 4 percent with a $500 minimum balance; average monthly bala

> A bank that provides overdraft protection charges 12 percent for each $100 (or portion of $100) borrowed when an over draft occurs. a. What amount of interest would the customer pay for a $188 overdraft? (Assume the interest is for the full amount borro

> An ATM with a service fee of $2 is used by a person 100 times in a year. What would be the future value in 10 years (use a 2 percent rate) of the annual amount paid in ATM fees?

> Using the tax table in Exhibit 3–5, determine the amount of taxes for the following situations: a. A head of household with taxable income of $89,525. b. A single person with taxable income of $89,001. c. A married person filing a separate return

> If 300,000 people each receive an average refund of $2,500, based on an interest rate of 3 percent, what would be the lost annual income from savings on those refunds?

> Using the tax table on page 80, determine the amount of taxes for the following situations: a. A head of household with taxable income of $55,000. b. A single person with taxable income of $35,000. c. Married taxpayers filing jointly with taxable i

> Noor Patel has had a busy year! She decided to take a cross-country adventure. Along the way, she won a new car on the “Price Is Right” (valued at $15,500) and won $500 on a scratch-off lottery ticket (the first time she ever played). She also signed up

> If $4,323 was withheld during the year and taxes owed were $4,122, would the person owe an additional amount or receive a refund? What is the amount?

> Based on the following data, would Beth and Roger Simmons receive a refund or owe additional taxes? Adjusted gross income, $42,140 Standard deduction, $24,800 Credit for child and dependent care expenses, $400 Federal income tax withheld, $2,017 Tax ra

> Jamie Lee and Ross are ready to evaluate a mutual fund more closely. Choose a mutual fund that has been mentioned in Chapter 13 or one that has been recommended by a friend or family member, and complete Your Personal Financial Plan Sheet #41.Based on

> What would be the average tax rate for a person who paid taxes of $4,706 on a taxable income of $40,780?

> Would you prefer a fully taxable investment earning 10 percent or a tax-exempt investment earning 8.25 percent? Why? (Assume a 24 percent tax rate.) (LO 3.4)

> Allison has returned to school after five years out of the work force. She is taking one course at the local university for a cost of $1,500. To maximize her taxes, should she take a tuition and fees deduction or an education credit? (Assume a 15 percent

> Julia Sims has $30,000 of adjusted gross income and $5,000 of medical expenses. She will be itemizing her tax deductions this year. The most recent tax year has a medical expenses floor of 10%. How much of a tax deduction will Julia be able to deduct?

> Wendy Brooks prepares her own income tax return each year. A tax preparer would charge her $75 for this service. Over a period of 10 years, how much does Wendy gain from preparing her own tax return? Assume she can earn 3 percent on her savings.

> Daniel Simmons arrived at the following tax information:

> If a person with a 32 percent tax bracket makes a deposit of $5,000 to a tax-deferred retirement account, what amount would be saved on current taxes?

> Reginald Sims deposits $5,500 each year in a tax-deferred retirement account. If he is in a 22 percent tax bracket, what amount would his tax be reduced over a 20-year time period?

> On December 30, you decide to make a $3,000 charitable donation. a. If you are in the 24 percent tax bracket, how much will you save in taxes for the current year? b. If you deposit that tax savings in a savings account for the next five years at 8 perce

> Jamie Lee and Ross have been reading quite a lot about stock funds. At Jamie Lee and Ross’s stage in life, what different types of stock funds would you recommend for them to invest their $50,000 inheritance in? Why? a. The financial pl

> Kara George received a $5,000 gift for graduation for her uncle. If she deposits this in an account paying 3 percent, what will be the value of this gift in 12 years?

> Brenda plans to reduce her spending by $50 a month. What would be the future value of this reduced saving over the next10 years? (Assume an annual deposit to her savings account, and an annual interest rate of 3 percent.)

> Use future value and present value calculations (see tables in the Chapter 1 Appendix) to determine the following: a. The future value of a $600 savings deposit after eight years at an annual interest rate of 6 percent. b. The future value of saving $1,

> Fran Powers created the following budget and reported the actual spending listed. Calculate the variance for each of these categories, and indicate whether it was a deficit or a surplus.

> The Brandon household has a monthly income of $5,630 on which to base their budget. They plan to save 10 percent and spend 32 percent on fixed expenses and 56 percent on variable expenses. a. What amount do they plan to set aside for each major budget se

> For the following situations, calculate the cash surplus or deficit:

> Carl Lester has liquid assets of $2,680 and current liabilities of $2,436. What is his current debt ratio? What comments do you have about this financial position?

> The Fram family has liabilities of $128,000 and a net worth of $340,000. What is the debt ratio? How would you assess this?

> Compare tax services (and providers) in your area and online. Talk to friends, relatives, and others about the providers that they use.

> Using an online search, determine the tax deductions and credits for which you may be eligible for the current year.

> It has been suggested by Jamie Lee and Ross’ professional investment counselor to perform a financial check-up as the first step in investing in mutual funds, even though they are investing $50,000 that was inherited from Ross’ late uncle’s estate. Is i

> Estimate the amount of all types of tax that you have paid in the last month

> Survey friends and relatives about their tax planning strategies. Do most people get a federal tax refund or owe taxes each year? Is their situation (refund or payment) planned?

> Using Exhibit 3-1 as a guide, calculate Jamie Lee’s Adjusted Gross Income amount by completing the table below:

> What impact on Jamie Lee’s income would the gift of $1,000 from her great aunt have on her adjusted gross income? Would there be an impact on the adjusted gross income with her $2,000 raffle prize winnings? Explain your answer.

> Jamie Lee has a marginal tax rate of 15% and an average tax rate of 11%. Explain why there is a difference between the two rates.

> What would Jamie Lee’s filing status be considered?

> 1) One way to identify if your college is a good investment is to review their: a) Return on Investment b) Maximum Loan Amount c) College Culture d) Average Class Size 2) The main form to qualify for Federal student aid is: a) FAFSA, Free Application fo

> For each of the following situations, what amount would the insurance company pay? (LO8.2) a. Wind damage of $1,835; the insured has a deductible of $500. b. Theft of a stereo system worth $4,000; the insured has a deductible of $500. c. Vandalism that d

> If Carissa Dalton has a $260,000 home insured for $200,000, based on the 80 percent coinsurance provision, how much would the insurance company pay on a $10,000 claim? (LO8.2)

> What would it cost an insurance company to replace a family’s personal property that originally cost $40,000? The replacement costs for the items have increased 15 percent. (LO8.2)

> Suppose Jamie Lee and Ross are evaluating corporate stocks to add to their investment portfolio. Using Your Personal Financial Plan Sheet 38, select a company from your own personal experience, such as an automobile or technology company, and research th

> Describe the stage in the adult life cycle (Chapter 1, Exhibit 1-4) that Jamie Lee and Ross are experiencing right now. What are some of the financial activities that they should be participating in at this stage?

> Aaron Zeitel is a high school senior deciding which college to attend in the fall. He has narrowed his choices to three liberal arts schools: Arrington, Barton, and Claiborne. His criteria for selection are the school’s academic reputat

> Carol Latta is visiting hotels in Los Angeles to decide where to hold a convention for a national organization of college business school teachers she represents. There are three hotels from which to choose—the Cheraton, the Milton, and

> Station WRCH in Richmond, Virginia, is interviewing candidates for the job of news anchor on its 6:00 p.M. Eyewitness News show. There are three final candidates for the job—June Pawlie, Kellie Cooric, and Tim Brokenaw. The criteria the

> Alex Wall is shopping for a new four-wheel-drive utility vehicle and has identified three models from which she will choose—an Explorer, a Trooper, and a Passport. She will make her selection based on Consumer Digest ratings, price, and

> In Problem 22, if Megan Moppett has $85,000 to invest and she wants to diversify by investing in all three funds, how much should she invest in each?

> Megan Moppett is a sales representative for Technical Software Systems (TSS), and she receives a commission for every new system installation she sells to a client. Her earnings during the past few years have been very high, and she wants to invest in a

> In Problem 13 in Chapter 6, Computers Unlimited sells microcomputers and distributes them from three warehouses to four universities. The available supply at the three warehouses, demand at the four universities, and shipping costs are shown in the follo

> Katnis Evergreen, a junior at Tech, is moving out of the dorms where she has lived for 2 years into an apartment in town. She is considering three apartment complexes—the Terraces, the Vistas, and Foxfield. She is going to evaluate the

> A Non-Resident Indian (NRI) wants to buy an apartment in India to use it when he returns home. He considers four factors—climate, infrastructure, resale value, and services—to make his decision. His friends recommended

> An interior design and construction company produces two types of tiles—floor tiles and wall tiles. Floor tiles are made with slightly rough surface to make it nonslippery; whereas wall tiles are made with smooth and mirror finish. The company currently

> The Oakdale County School Board was meeting in special session. A federal judge had ordered the board to present an acceptable busing plan for racially balancing the four high schools in Oakdale County within a week. The judge had previously given the sc

> Infocomp Systems Lab is a research and development (R&D) company that develops computer systems and software primarily for the medical industry. The lab has proposals from its own researchers for eight new projects. Each of the proposed research proj

> Mac’s Warehouse is a large discount store that operates 7 days per week. The store needs the following number of full-time employees working each day of the week: Each employee must work 5 consecutive days each week and then have 2 days

> The Eaststate Manufacturing Company produces four different airplane parts from fabricated sheet metal for several major aircraft companies. The manufacturing process consists of four operations—stamping, assembly, finishing, and packag

> A rural clinic hires its staff from nearby cities and towns on a part-time basis. The clinic attempts to have a general practitioner (GP), a nurse, and an internist on duty during at least a portion of each week. The clinic has a weekly budget of $1,200.

> A company wants to produce two products, A and B, using three resources—machine hours, raw material, and assembly time—as given in the table below. The company wants to satisfy the following goals: (1) Achieve total sa

> The East Midvale Textile Company produces denim and brushed-cotton cloth. The average production rate for both types of cloth is 1,000 yards per hour, and the normal weekly production capacity (running two shifts) is 80 hours. The marketing department es

> The Wearever Carpet Company manufactures two brands of carpet—shag and sculptured—in 100-yard lots. It requires 8 hours to produce one lot of shag carpet and 6 hours to produce one lot of sculptured carpet. The company has the following production goals,

> A manufacturing company produces products 1, 2, and 3. The three products have the following resource requirements and produce the following profit: At present, the firm has a daily labor capacity of 240 available hours and a daily supply of 400 pounds o