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。） 4
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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. =2RhPD
Calculate M’s expected dividends for 2008 if it follows each of the following policies: zG-_!FIn
A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. U^ M@um M
B. It continues the 2007 dividend payout ratio. h1 ^9tz{
C. It uses a residual policy with all distributions in the form of dividends. %_B:EMPd
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). g.[+yzuE6
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Answer: v !< PDw2'
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A: long-run growth rate zW"~YaO%C
3*(1+10%) =3.3 million -`zG_]=-
= cf{f]N
B: target payout ratio 6 QN1+MwB
Target payout ratio=3/15=20% g2g`,"T
Dividend of 2008=18*2%=3.6 million P] pmt1a
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C: residual dividend approach 5TXg;v#Z
Retained earnings=total new investment*(1-debt ratio) {PN:bb
=12*(1-40%) ? .c?Pu
=7.2 million gB(9vhj $
Residual dividend=18-7.2=10.8 million 'RDWU7c9]
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) P['X<Xt8
Regular dividend=3*(1+10%) =3.3 million zc6H o
Extra dividend=residual dividend –regular dividend -M"IVyy@
=10.8-3.3 M*d- z
=7.5 million 2 Ryp@c&r^
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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. r #LnDseW
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. 84iJ[Fq{
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. \Os:6U=X-
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). = y?#^
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Answer: Q/9 a,85
Notes: %lXbCE:[
Actual price=18560/3200=$5.8/unit ]}BB/KQy^
Actual quantity materials per unit=3200/2000=1.6 kg/unit .W!tveX8-
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1).Standard quantity * standard price=standard total cost jMK3T
(1.5*2000) * 6 =$18000 Hab!qWK`
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials @Ppo &>
（3200-3000） * 6 =$1200 @(Z( /P;:
3)Actual quantity * （actual price- standard price）= Price variance of direct materials K n']n91m
3200 * (5.8 – 6) =$640 |}Q( F+cL
4)actual quantity *actual price =actual total cost Oz :D.V
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3200 * 5.8 =$18560 LFCTr/ ,
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A：Price variance of direct materials=（actual price-standard price）*actual quantity ] } '^`
= (5.8-6)*3200 aw1P5aPmX
= $640 【F】 v#zPH5xo
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. F#6cF=};@
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B：Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price GOGt?iw*<
= (3200-3000)*6 ?~!tM}X0:3
=$1200 【U】 .
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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. :#WEx_]
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C：Total variance of direct materials=actual costs- standard cost o"RJ.w:dn
=18560-18000 Gi*<~`Gr
=560 【U】 :ztyxJv1
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