ADMS 3541 Fall Exam coversheet, case study, formula sheet
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ADMS 3541 Final Exam
Giulio Iacobelli and Daniel Richards © 2023. All rights reserved.
Page 1 of 17
York University
ADMS 3541 B and C F2023
Final Exam (40%)
December 10, 2023
Time: 7:00 p.m. – 10:00 p.m. Toronto Time
1.
The Final exam is
3 hours
(180 minutes)
in length.
It consists of two parts; part 1 multiple
choice questions and part 2 case study, based on the material from week 1 to week 12.
2.
This is a closed-book exam.
Calculators are permitted on the entire exam.
Phones are not
permitted on the exam.
3.
Answer all of the questions on the exam papers. 80 marks in total.
4.
Do not detach the exam pages.
All pages must be returned and submitted with your response.
5.
Write clearly in ink only.
If we cannot understand your response, or read your writing, you
will receive a zero grade on that question.
Pencils are not permitted.
•
You must clearly label, present, and identify all relevant work to gain any partial
credit.
6.
Show your work.
Show your work. Show your work!
7.
The York University Senate Policy on Academic Honesty and the Student Code of Conduct
applies and it is not limited to:
•
using materials or aids that have not been approved by the instructor
•
accessing course content from any unauthorized source
•
copying another person's answer(s) or allowing your answer(s) to be copied
•
sharing answers or consulting with another person through any means
•
submitting an answer to an exam question that was completed, in whole or in part, by
another person or outside of the exam room
•
having someone take an exam for you or taking an exam for someone else
8.
If you have a question or need to use the washroom, please put up your hand.
Only one
person is permitted to use the washroom at any given time.
We will not answer any exam
specific questions.
9.
When you are done, please put up your hand and your paper will be collected.
You can leave
after your paper has been collected and you have signed out.
No one will be allowed to leave
during the last 15 minutes of the exam.
STUDENT NAME (please print):___________________________________________________
ADMS 3541 Final Exam
Giulio Iacobelli and Daniel Richards © 2023. All rights reserved.
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ADMS 3541 Final Exam
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Case study:
Dale and Sara, both 40 years of age, are married with one child named Kevin.
Kevin is 14
years old.
Dale and Sara purchased a home using funds that Dale received from his parent’s
estate a few years ago. Their current financial situation is as follows:
Net Worth:
Assets
Liabilities
House (Joint Names)
950,000
Mortgage (25 years,
5 year term, 4.5%
interest)
500,000
Car (Dale)
25,000
Car loan (Dale)
15,000
Car (Sara)
24,000
Car loan (Sara)
10,000
Cash in Bank (Joint
names)
2,000
Credit Cards
5,000
TFSA Dale
40,000
TFSA Sara
10,000
RRSP Dale
80,000
RRSP Sara
10,000
Bitcoin- Dale
48,000
Employment and Insurance
Sara works for the government in the automobile licensing department.
She has an annual
salary of $85,000 per year, which is $65,000 after-tax.
Dale works as a real estate agent.
His
gross salary is $60,000 per year and $48,000 per year after-tax. Sara’s employer provides
group life insurance equal to 3 times her gross annual salary.
Dale has a private life
insurance policy with a face value of $250,000.
Retirement Planning
Dale and Sara save money in their RRSPs for retirement purposes only.
Their plan is to use
their RRSP accounts to fund their retirement.
In addition, Sara belongs to her employers’
defined benefit pension plan and estimates it will pay her $28,000 a year starting at age 65
and will be adjusted for inflation annually in retirement.
Dale does not have a pension but
has RRSP contributed room. According to their notice of assessment, they both qualify for
the CPP and OAS retirement benefit.
The CPP benefit they will both receive is estimated to
be $930 per month and OAS is estimated to be $550 a month, beginning at age 65.
Based
on their lifestyle, they want to have a combined annual before-tax income of $70,000 per
year.
They expect to live until age 95.
Savings and Emergency Planning
The money they have saved in the TFSAs are for individual purposes.
Dale wants to use his
savings to rebuild his garage and take a trip with his son Kevin to the US to watch the World
Cup in 2026.
Sara plans on using the funds in her TFSA to take a trip with her friends to Asia.
Investments
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Giulio Iacobelli and Daniel Richards © 2023. All rights reserved.
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Dale was convinced by an online guru to purchase bitcoin using cash he received from his
parent’s estate.
Dale invested $80,000 into the coin which is now worth $48,000.
The
decline in the crypto market has made Dale very sceptical about investing in crypto.
The
funds in their TFSA’s are invested in cashable GICs paying 3.5% interest.
Their RRSPs are
invested in mutual funds at DT Bank. The investment allocation of both their portfolios are
as follows:
Asset
Allocation
Expected Return
DT Bond Fund
60%
4.65%
DT CAN Equity Fund
40%
8%
Inflation is currently at 4%.
Estate Planning
Dale and Sara do not have wills.
Sara has named Dale as her beneficiary on all her
registered accounts and life insurance.
Dale has named Sara as his beneficiary on all his
registered accounts and life insurance.
ADMS 3541 Final Exam
Giulio Iacobelli and Daniel Richards © 2023. All rights reserved.
Page 5 of 17
ADMS 3541 Exam Formula Sheet
࠵?࠵?࠵?࠵?ℎ࠵?࠵?࠵?࠵?࠵? ࠵?࠵?࠵?࠵? = .
࠵?
!
࠵?
"
!#$
࠵?࠵?࠵?࠵?࠵?࠵?࠵?࠵? ࠵?࠵?࠵?࠵? = 23(1 + ࠵?
!
)
"
!#$
8
$
"
− 1
࠵?࠵?࠵? = ࠵? × ࠵?
%
࠵?࠵?࠵? = (1 + ࠵?
%
)
%
− 1
࠵?࠵? = ࠵?࠵?(1 + ࠵?)
"
࠵?࠵? =
࠵?࠵?
(1 + ࠵?)
"
࠵?࠵?࠵?࠵?࠵? =
(1 + ࠵?)
"
− 1
࠵?
࠵?࠵?࠵?࠵?࠵? =
1 −
1
(1 + ࠵?)
"
࠵?
࠵?࠵?࠵?࠵?࠵? = ࠵? C
[(1 + ࠵?)
"
− (1 + ࠵?)
"
]
(࠵? − ࠵?)
G
࠵?࠵?࠵?࠵?࠵?࠵? = (1 + ࠵?)࠵?࠵?࠵?࠵?࠵?
࠵?࠵?࠵?࠵?࠵? = ࠵? I
1 − J
1 + ࠵?
1 + ࠵?
K
"
(࠵? − ࠵?)
L
࠵?࠵?࠵?࠵?࠵?࠵? = (1 + ࠵?)࠵?࠵?࠵?࠵?࠵?
࠵?
"&%
= (1 + ࠵?
’
)(1 + ࠵?) − 1
࠵?
’
=
1 + ࠵?
"&%
1 + ࠵?
− 1
Liquidity Ratio = monetary liquid assets / monthly expenses
Asset to debt ratio = total assets / total debts
Debt payments-to-net income ratio = monthly non-mortgage debt payments / monthly net revenue
Consumer debt ratio = Total consumer debt / annual net revenue
ADMS 3541 Final Exam
Giulio Iacobelli and Daniel Richards © 2023. All rights reserved.
Page 6 of 17
Periodic residential mortgage rate =
!1 +
!"#
$
$
%/’
− 1
Marginal tax rates
Interest
Dividends- Canada excluding Ontario
Dividends- Ontario only
Capital Gain
80% rule
Reimbursement= (L) x (I /(RV x 0.8) - D
Actual Cash Value
ACV = P – (CA x (P / LE))
Expected return and standard deviation
E(r)=
∑ ࠵?
(
࠵?
(
Expected return and standard deviation 2 asset portfolio
Expected return and standard deviation 3 asset portfolio
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A process with no beginning work in process, completed and transferred out 85200 units during a period and had 50100 units in the
ending work in process inventory that were 20% complete. The equivalent units of production for the period for conversion costs were:
O 95220 equivalent units.
O 135300 equivalent units.
O 70200 equivalent units.
O 85200 equivalent units.
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Concord Industries has equivalent units of 7100 for materials and for conversion costs. Total manufacturing costs are $124370. Total
materials costs are $91000. How much is the conversion cost per unit?
O $17.52.
O $4.70.
$12.82.
O $30.33
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Exercise 1-14 (Part Level Submission)
g 2021
Cheyenne Corp., a public camping ground near the Four Corners National Recreation Area, has compiled the following financial information as of December 31, 2019.
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204,000
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1-6
Accounts payable
14,960
Supplies on hand
3,400
Cash on hand
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Common stock
27,200
Original cost of equipment
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e1-9
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Fair value of equipment
190,400
v (a)
Your answer is correct.
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The December 31, 2024, adjusted trial balance for Fightin' Blue Hens Corporation is presented below.
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Cash
Accounts
Accounts Receivable
Prepaid Rent
Supplies
Land
Accounts Payable
Salaries Payable
Interest Payable
Notes Payable (due in two years)
Common Stock
Retained Earnings
Service Revenue
Salaries Expense
Rent Expense
Utilities Expense
Interest Expense
Totals
Required:
Debit
$12,000
Credit
150,000
6,000
30,000
265,000
$12,000
11,000
5,000
40,000
300,000
60,000
500,000
400,000
20,000
40,000
5,000
$928,000
$928,000
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Fighting Irish Incorporated pays its employees $3,360 every two weeks ($240/day). The current two-week pay period ends on
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1. Record the adjusting entry on December 31, 2024.
2. Calculate the 2024 year-end adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before adjustment in
2024 is $0).
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Calculate the 2024 year-end adjusted balance of Salaries Payable (assuming the balance of Salaries Payable before
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(b) If the allowance for doubtful accounts had a debit balance of $887 instead of a credit balance of $2,864, prepare the adjusting journal entry for
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Gerald Utsey earned $48,700 in 2021 for a company in Kentucky. He is single with one dependent under 17 and is paid
weekly. The FUTA rate in Kentucky for 2021 is 0.6 percent on the first $7,000 of employee wages, and the SUTA rate is
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Compute the employer's share of the taxes. (Do not round intermediate calculation. Round your final answer to 2 decimal places.)
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Determine the following measures for 2018.
Round ratio values to one decimal place and dollar amounts to the nearest cent. For number of days' sales in receivables and number of
days' sales in inventory, round intermediate calculations to the nearest whole dollar and final amounts to one decimal place. Assume
there are 365 days in the year.
1. Working capital
Г
2,790,000
2.
Current ratio
4.1
3. Quick ratio
2.5
4.
Accounts receivable turnover
16
5. Days' sales in receivables
22.8
days
6.
Inventory turnover
7. Days sales in inventory
8. Debt ratio
days
%
9. Ratio of liabilities to stockholders' equity
10.
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11. Times interest earned
times
times
12.
Times preferred dividends earned
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Chapter 9 Quiz
OA. $18,200
OB. $18,800
OC. $17,500
O D. $20,300
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Buddy Company uses the allowance method to account for uncollectible receivables. At the beginning of the year,
Allowance for Bad Debts had a credit balance of $800. During the year Buddy wrote off uncollectible receivables of
$2,100. Buddy recorded Bad Debts Expense of $2,800. Buddy's year-end balance in Allowance for Bad Debts is
$1,500. Buddy's ending balance of Accounts Receivable is $20,300. Compute the net realizable value of Accounts
Receivable at year-end.
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Exercise 9-12 a-b (Part Level Submission)
Oriole Supply Co. has the following transactions related to notes receivable during the last 2 months of 2020. The company does not make entries to accrue interest except at
December 31.
Nov. 1
Loaned $23,50Chcash to Manny Lopez on a 12-month, 12% note.
Dec. 11
Sold goods to Ralph Kremer, Inc., receiving a $61,200, 90-day, 10% note.
16
Received a $97,200, 180 day, 8% note in exchange for Joe Fernetti's outstanding accounts receivable.
31
Accrued interest revenue on all notes receivable.
(a)
Your answer is correct.
lournalize the transactions for Oriole Supply Co. (Ignore entries for cost of goods sold.) (Credit account titles are…
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To start, click on "Week Eleven Discussion Board " and then click on "Reply". Take the time to answer the following question:
To match revenues and expenses properly, should the expense for employee vacation pay be recorded in the period during which the vacation privilege is earned or during the period in which the vacation is taken? Explain. Discuss with your fellow classmates.
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SIS AND DESIGN OF-2020/2019-3-3
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Which entity is most likely to be part of both the payroll cycle
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