六、英语附加题（本题型共2题，每题5分，共10分。要求用英文解答，列出计算步骤，每步骤运算得数精确到小数点后两位。在答题卷上解答，答案写在试题卷上无效。） 'loko# 6
1、In 2007,M Corporation paid dividends totaling ＄3 million on net income of ＄15 million.2007 was a normal year, and for the past five years, earnings have grown at a constant rate of 10 percent. However,earnings are expected to jump to ＄18 million in 2008,and the firm expects to have ＄12 million investment opportunities in 2009.It is predicted that M will not be able to maintain the 2008 level of earnings growth in the future----the high 2008 earnings level is attributable to an exceptionally profitable new product line introduced in that year----and the company will return to its previous 10 percent growth rate. M’s target debt ratio is 40 percent in 2007, which will be continued in the future. v sYbR3O
Calculate M’s expected dividends for 2008 if it follows each of the following policies: e X0 [C0 #
A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. T
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B. It continues the 2007 dividend payout ratio. gN<J 0c)
C. It uses a residual policy with all distributions in the form of dividends. ]XYD2fR2qA
D. It employs a regular-dividend-plus-extras policy, with the regular dividend being based on the long-run growth rate and the extra dividend being set according to the residual policy(Indicate the regular dividend and the extra dividend separately). R+Ug;r -[
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A: long-run growth rate C7&L9k~jf
3*(1+10%) =3.3 million #V Z
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B: target payout ratio (!Fu5m=<8
Target payout ratio=3/15=20% A[:(#iR5-E
Dividend of 2008=18*2%=3.6 million e_1L J
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C: residual dividend approach j& L@L.d
Retained earnings=total new investment*(1-debt ratio) }0OQm ?xh
=12*(1-40%) @CC
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=7.2 million %V# ? 1{
Residual dividend=18-7.2=10.8 million Rgz zbW
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) jRW@ $ <mG
Regular dividend=3*(1+10%) =3.3 million W"tGCnd
Extra dividend=residual dividend –regular dividend F-D$ Y?m
=10.8-3.3 iN5[x{^t
=7.5 million TR'_v[uK3
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2. N Company manufactures a kind of product used throughout the machinery industry. The standard price of the materials for the products is $6 per kilogram; the standard quantity of materials allowed per unit is 1.5 kilograms. During July, 2,000 units of the products were finished, for which 3,200 kilograms of materials were used at a total direct material cost of $18.560. xb&,9Lxd|
A. Calculate the direct material price variance for July. Indicate whether it is favorable (F) or unfavorable (U) and who is generally responsible for this variance. f{{J_""?&
B. Calculate the direct material quantity variance for July. Indicate whether it is favorable (F) or unfavorable (U) and who is generally responsible for this variance. Zk31|dL
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). Q>L .
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Actual price=18560/3200=$5.8/unit y%<CkgZS
Actual quantity materials per unit=3200/2000=1.6 kg/unit V2 '5doo
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1).Standard quantity * standard price=standard total cost 9aKO||i,
(1.5*2000) * 6 =$18000 *mW 2vJ/B
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials TW 1#'G_#
（3200-3000） * 6 =$1200 &@D\4b,?nm
3)Actual quantity * （actual price- standard price）= Price variance of direct materials LFvZ 7M\\
3200 * (5.8 – 6) =$640 -Q%Pg<Q-#
4)actual quantity *actual price =actual total cost o
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3200 * 5.8 =$18560 q/qig5Ou
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A：Price variance of direct materials=（actual price-standard price）*actual quantity b]N&4t
= (5.8-6)*3200 Qp>Z&LvC5
= $640 【F】 r,P`$ -
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. CKC5S^Mx
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B：Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price ?0lz!Nq'S
= (3200-3000)*6 U7-*]i k
=$1200 【U】 :b;`.`@KL_
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Efficiency variance of $1200 【U】 due to the higher quantity of materials per unit of 1.6 kg/unit than the standard level of 1.5 kg/unit. @\a~5CLN
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C：Total variance of direct materials=actual costs- standard cost LbR'nG{J
=18560-18000 x1}Ono3"T
=560 【U】 y
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