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。） `0-i>>
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. ;|f]e /El
Calculate M’s expected dividends for 2008 if it follows each of the following policies: \!k\%j 9
A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. T7N\b]?j@Y
B. It continues the 2007 dividend payout ratio. `R*!GHro
C. It uses a residual policy with all distributions in the form of dividends. 7r pTk&`
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). !k#N]
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Answer: B0^:nYko
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A: long-run growth rate =
UxKa`
3*(1+10%) =3.3 million fqn;,!D?9
>uE<-klv
B: target payout ratio Ef=4yH?\j
Target payout ratio=3/15=20% <<H'Z
Dividend of 2008=18*2%=3.6 million @FN1o4&3
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C: residual dividend approach <XzRRCYQ
Retained earnings=total new investment*(1-debt ratio) d!"gb ,ec
=12*(1-40%) Hq,znRz~`
=7.2 million \*c=bz&l
Residual dividend=18-7.2=10.8 million Ap kb!"}>
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) (>dL
Regular dividend=3*(1+10%) =3.3 million w# ;t$qz}
Extra dividend=residual dividend –regular dividend sO)!}#,
=10.8-3.3 \]Rmq_O
=7.5 million nDNK}O~'
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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. e{.P2rnh
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. =BzBM` -o
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. ,;yaYF 6|/
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). axv-U d E;
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Answer: )(yKm/5 0
Notes: `U{#;
Actual price=18560/3200=$5.8/unit 3GZrVhU?m
Actual quantity materials per unit=3200/2000=1.6 kg/unit 8vUq8 [[
s$/ Z+"f(
1).Standard quantity * standard price=standard total cost +sXnC\
(1.5*2000) * 6 =$18000 UQjZhH
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials
_F jax
（3200-3000） * 6 =$1200 Bc}e ??F
3)Actual quantity * （actual price- standard price）= Price variance of direct materials P}-S[[b73s
3200 * (5.8 – 6) =$640 C(}Kfi@6N
4)actual quantity *actual price =actual total cost = {~A}
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3200 * 5.8 =$18560 ?q"9ZYX<
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A：Price variance of direct materials=（actual price-standard price）*actual quantity ?$b*)<
= (5.8-6)*3200 5NM ju!/
= $640 【F】 x!UGLL]_M
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. 8+~'T|
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B：Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price ak(P<OC-
= (3200-3000)*6 "-G&]YMl
=$1200 【U】 N ^H
H&~V
S?Uvt?
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. Ft8ii|-
g+=f=5I3
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C：Total variance of direct materials=actual costs- standard cost WQHlf 0]
=18560-18000 wr2F]1bh@
=560 【U】 `_M&zN
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