The Bank Account

The bank account as a control device that helps to protect cash.

One of the requirements is to conduct periodic bank statement reconciliations. Using the following data, complete the bank statement reconciliation. (Use the format shown on page 255 of your textbook) (25 points) Use the information below to prepare the bank reconciliation for EEE Electric for the month of September. • The bank statement indicated bank service charges of $63. • Outstanding checks as of September 30 amounted to $1,405. • Deposits in transit as of September 30 amounted to $2,769. • The ending balance per the September bank statement is $40,653. • EEE’s bookkeeper mistakenly recorded a $1,610 cash disbursement as $1,160 for Office Supplies on check #2402. • The bank mistakenly recorded a deposit of $2,800 as $280 on February 17. • The bank made an EFT payment on behalf of the company for Insurance for $3,200. • Bank collected rent of $3,000 and a note, for $16,450, including interest of $450. • The ending cash balance per the books for September before any adjustments was 28,800. (Points : 25)

 

Expert Answers

1. Global Products’ sales are expected to increase from $5 million in 2010 to $6 million in 2011 or by 20%. Its assets totaled $3 million at the end of 2010. Global is at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2010, current liabilities were $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accruals. The after-tax profit margin is fore casted to be 6%, and the fore casted payout ratio is 60%. Use the AFN formula to forecast Baxter’s additional funds needed for the upcoming year.
2. Jammer is a fast-growing supplier of office products. Analysts project the following free cash flows (FCFs) during the next 3 years, after which FCF is expected to grow at a constant 4% rate. Dozier’s weighted average cost of capital is WACC 13%. Year 1 2 3 Free cash flow ($ millions) – $20 $30 $40 What is the current value of operations for Jammer? Enter your answer in millions. For example, an answer of $1.2 million should be entered as 1.2, not 1,200,000. Round your answer to two decimal places.
3. Suppose Jammer has $9 million in marketable securities, $80 million in debt, and 12 million shares of stock. What is the price per share? Round your answer to the nearest cent. ______________
4. Rondos’ sales are expected to increase by 20% from $5 million in 2010 to $6 million in 2011. Its assets totaled $4 million at the end of 2010. Rondo is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2010, current liabilities were $1 million, consisting of $250,000 of accounts payable, $500,000 of notes payable, and $250,000 of accruals. The after-tax profit margin is fore casted to be 7%, and the fore casted payout ratio is 75%. Assume that the company pays no dividends. Under these assumptions, what would be the additional funds needed for the coming year?
5. Soho generated $4,000,000 in sales during 2010, and its year-end total assets were $2,200,000. Also, at year-end 2010, current liabilities were $500,000, consisting of $200,000 of notes payable, $200,000 of accounts payable, and $100,000 of accruals. Looking ahead to 2011, the company estimates that its assets must increase at the same rate as sales, its spontaneous liabilities will increase at the same rate as sales, its profit margin will be 3%, and its payout ratio will be 40%. How large a sales increase can the company achieve without having to raise funds externally; that is, what is its self-supporting growth rate? Round your answer to the nearest cent. ______________

Consider the class Apple

1. (TCO 4) Consider the class Apple. Given your knowledge of some common components of apples show a class hierarchy in which the class Apple inherits from other classes, which, in turn, can also be inherited from yet other classes;
discuss inheritance from class Apple for other closely related derived classes; and discuss the common components of class Apple. (Points : 18)

2. (TCO 2) Does Encapsulation imply Data/Information Hiding in object-oriented programming? Why or why not? (Points : 18)

3. (TCO 2) Given the following program description, identify the required classes/objects necessary to achieve the program requirements;
briefly describe any relationships that might exist between your classes; and
briefly describe the overall hierarchy of your proposed classes.
Program Description – You have been asked to create a program designed to take coffee orders in a coffee shop. The program must be able to take an order, assign a unique ID to the order, add any number of drinks to the order and calculate the total bill.

 

4. (TCO 7) Briefly describe what an Interface is and how it can be used in an object-oriented program. Provide example pseudocode showing how an IChef Interface might be constructed.

5. (TCO 2) Keeping in mind all object-oriented programming best practices, create a class for a Chair, with the following specifications:
1)     Specify two data members
2)     Default Constructor
3)     Overloaded Constructor which takes both data member values as input.
4)     Generate a unique identification number for each object instantiated from this class.  Use a static data member to keep track of the identification number last assigned to an object so that duplications will not occur. Code the necessary portion of the class definition so as to support this requirement.
5)     Show a statement which instantiates an object of this class using the overloaded constructor.
You do not need to provide any accessor/mutator methods or other methods.

6. (TCO 8) If you were a manager and wanted to address best practices in choosing appropriate names for attributes and their associated accessor/mutator properties, what would you say?

Multiple Choice Answers

1. (TCO 1) Which of the following would be the most appropriate choice for a method in a PhoneCharger class? (Points : 5)
 Voltage()
 Manufacturer()
 Current()
 Charge()
2. (TCO 1) Object-oriented programming generally does NOT focus on _____. (Points : 5)
 A. separating the interface from the implementation
 B. client side access to implementation details
 C. information hiding
 D. ease of program modifi ability
 All of the above
 None of the above
 Only A, C, and D
3. (TCO 2) Which of the following components of a class definition cannot be overloaded? (Points : 5)
 Public member methods
 Destructors
 Constructors
 Private member methods
 All of the above
4. (TCO 2) Which of the following statements is/are true? (Points : 5)
 A. A default constructor is automatically created for you if you do not define one.
 B. A static method of a class can access non-static members of the class directly.
 C. An important consideration when designing a class is identifying the audience, or users, of the class.
 None of the above
 Only A and C
5. (TCO 5) Which of the following method pairs are examples of method overloading? (Points : 5)
 A. public void Bake() ; public int Bake(int x)
 B. public int Mix(int x, int y) ; public int Mix(int y, int x)
 C. public int Shake(int x, int y) ; public int Shake(int x, int y, int z)
 All of the above
 Only A and C
6. (TCO 1) Which of the following statements is/are false? (Points : 5)
 Member methods are the means by which you implement the behavior of a class.
 By using the keyword class in your program, memory is allocated for the object being defined.
 Objects are created during program execution and eventually destroyed.
 None of the above
7. (TCO 2) You have been tasked to create an Automobile class and your boss wants you to consider the concept of encapsulation as you design your class. Which of the following actions will you take? (Points : 5)
 Declare as many class attributes public as you can, creating accessor/mutators for each one.
 Package attributes and behaviors specific to an Automobile together.
 Make sure to include a specific implementation for a drive method that all sub classes can inherit.
 Declare the class as private.
 All of the above
8. (TCO 2) A black box is a term used to describe a system that can be understood solely based on its inputs, a description of its _____ and the resulting outputs. (Points : 5)
 processing
 inherited processes
 attributes
 accessory
9. (TCO 2) A class is designed with two public attributes: attribute One and attribute Two. attribute One is an integer data type while attribute Two is a string data type. Which pseudo  code representation(s) of setters would be appropriate for this class? (Points : 5)
 A. into set Attribute One(int new Attribute One)
     {
    return attribute One
     }
 B. void set Attribute One(int new Attribute One)
    {
      Attribute One = new Attribute One
    }
 C. string set Attribute Two (int new Attribute Two)
    {
        Attribute Two = new Attribute Two
    }
 D. void set Attribute Two ()
    {
   Attribute Two = “ “
    }
 Both A and C
 None of the above
10. (TCO 7) Which of the following statements is false? (Points : 5)
 Interfaces are similar to abstract classes in that they specify a contract that must be respected by programmers.
 Interfaces specify one or more method signatures and at least one implementation, usually a multi-arg constructor.
 Interfaces can be used in some object-oriented languages to implement a form of multiple inheritance.
 Interfaces are not instantiated but instead are often implemented by regular classes.
11. (TCO 7) Which of the following statements is/are false? (Points : 5)
 Abstract methods may or may not contain instance variables.
 Abstract methods may be defined in an abstract class, a regular class or an interface.
 Abstract methods do not specify a return type.
 All of the above
 None of the above
12. (TCO 7) _____ and _____ enforce a(n) _____ which is a methodology used in object-oriented programming to force programmers to adhere to certain “rules.” (Points : 5)
 Abstract classes; interfaces; contract
 Static variables; methods; hierarchy
 Classes; objects; transitive communication
 Method signatures; the static keyword; encapsulation
 None of the above
13. (TCO 4) If you have a complete, working Bicycle class that has been thoroughly tested, and you wish to add an overloaded speed Up() method that can increase the speed of a Mountain Bike, how should this be accomplished? (Points : 5)
 Derive a new Mountain Bike class from the first Bicycle class.
 Add the method to your existing Bicycle class.
 Add the method in the same class as the main.
 Make a brand new class.
14. (TCO 3) A Ball class and a Baseball class have what type of relationship?
(Points : 5)
 The Ball is-a Baseball.
 The Baseball is-a Ball.
 The Ball has-a Baseball
 The Baseball has-a Ball.
15. (TCO 4) In what type(s) of situation(s) would it be best to make a new derived class from a base class? (Points : 5)
 A. When your current class is a general form of what your new class should be
 B. When you need to create a specialized class from an existing class
 A and B
 None of the above
16. (TCO 4) Suppose class Child is derived from class Parent which in turn is derived from class Grand Parent. The class Parent and Grand Parent are the _____? (Points : 5)
 Predecessor classes of class Child
 Forebearer classes of class Child
 Ancestor classes of class Child
 Descendant classes of class Child
 None of the above
17. (TCO 6) What is the result of over-using inheritance? (Points : 5)
 System dependencies are created
 Unnecessary relationships are created
 Code is harder to understand
 All of the above
18. (TCO 4) Which of the following is not a good example of a hierarchy that could be modeled with inheritance? (Points : 5)
 Airplanes
 Geometric shapes
 Prime numbers
 Employee
19. (TCO 8) Data/information hiding and encapsulation improves construction and maintenance because: (Points : 5)
 Program bugs are isolated to a single class.
 Coupling is increased.
 Programming to an interface makes the code and design difficult.
 All of the above
 None of the above
20. (TCO 8) What are some of the characteristics of “self-documenting” code? (Points : 5)
 Detailed comments, addressing all aspects of the code
 Deep levels of nesting to ensure all situations are addressed
 Straightforward algorithms
 All of the above
 None of the above
21. (TCO 9) Which of the following allow a programmer to reduce the complexity of an object-oriented program? (Points : 5)
 Create each class in a separate file
 Combine multiple classes in a same file to allow easy access
 Using one file to combine all the code to allow easy access
 None of the above
22. (TCO 2) Given a private attribute called weight, which of the following are proper implementations for a getter and a setter? (Points : 5)
 void GetWeight(){return weight;}, void SetWeight (int weight){this.weight = weight;}
 int GetWeight (){return weight;}, int SetWeight (int weight){return weight;}
 int GetWeight (){this.weight = weight;}, void SetWeight (int weight){return weight;}
 int GetWeight (){return weight;}, void SetWeight (int weight){this.weight = weight;}
23. (TCO 7) Which of the following declares an abstract method in an abstract class? (Points : 5)
 public abstract void Cook Ingredients() {}
 public void Cook Ingredients() {}
 public abstract void Cook Ingredients ();
 public abstract Cook Ingredients ();
24. (TCO 1) Assuming a class definition of a Pet that has a default constructor and constructor that accepts three string arguments, and the appropriate properties defined, how many objects are created in the code below?
 static void Main(string[] args)
 {
     Pet new Object;
     Pet new Pet = new Pet();
     Pet my Pet = new Pet(“Cat”, “Lucy”, “Persian”);
     New Object = newPet;
     New Object.PetName = myPet.Pet Name;
 } (Points : 5)
 1
 2
 3
 4

Long term Debt

At Year-end 2010, Bertin Inc.’s Total Assets Were OR  At year-end 2012, total assets for Ambrose Inc. were OR At year-end 2010, Soho total assets were $1.5 million and its accounts payable were $405,000. Sales, which in 2010 were $2.6 million, are expected to increase by 25% in 2011. Total assets and accounts payable are proportional to sales and that relationship will be maintained. Soho typically uses no current liabilities other than accounts payable. Common stock amounted to $495,000 in 2010, and retained earnings were $335,000. Soho has arranged to sell $145,000 of new common stock in 2011 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2011. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its profit margin on sales is 3%, and 45% of earnings will be paid out as dividends. How much new long-term debt financing will be needed in 2011? (Hint: AFN – New stock = New long-term debt.) Round your answer to the nearest dollar.