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。） kf+] bV
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. ";38v jIV
Calculate M’s expected dividends for 2008 if it follows each of the following policies: G?!b00H
A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. R0y={\*B5k
B. It continues the 2007 dividend payout ratio. obRR))
C. It uses a residual policy with all distributions in the form of dividends. jr{C/B}
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). WyVFh A uU
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Answer: / ]_T
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A: long-run growth rate mh]'/C_*<w
3*(1+10%) =3.3 million o^;$-O!/
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B: target payout ratio S?n k9 T+
Target payout ratio=3/15=20% K^`3 Bg
Dividend of 2008=18*2%=3.6 million [H z_x(t26
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C: residual dividend approach t9S zZ2E
Retained earnings=total new investment*(1-debt ratio) zQ9
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=12*(1-40%) <m 9hM?^q
=7.2 million pDb5t>
Residual dividend=18-7.2=10.8 million o9G%KO&;D,
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D: regular-dividend-plus-extra dividend approach (according to the residual policy) m8eyAvi 6
Regular dividend=3*(1+10%) =3.3 million q}>1Rr|U`
Extra dividend=residual dividend –regular dividend M3@Wb@
=10.8-3.3 D'Tb=
=7.5 million o9ZHa
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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. PE3FuJGz
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. D].!u {##
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. v.:aICB5
C. Calculate the total direct material cost variance for July. Indicate whether it is favorable (F) or unfavorable (U). a AZS^S4v
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Answer: CI"7* z_
Notes: \O5`R-
Actual price=18560/3200=$5.8/unit XL@i/5C[
Actual quantity materials per unit=3200/2000=1.6 kg/unit Vy0s%k
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1).Standard quantity * standard price=standard total cost $X8(OS5d'
(1.5*2000) * 6 =$18000 p3ox%4
2). (Actual quantity-standard quantity) * Standard price= Efficiency variance of direct materials r (xh5{^x
（3200-3000） * 6 =$1200
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3)Actual quantity * （actual price- standard price）= Price variance of direct materials 1oD,E!+^d
3200 * (5.8 – 6) =$640 MTo<COp($
4)actual quantity *actual price =actual total cost 4Gs#_|!
3200 * 5.8 =$18560 "M Hm9D?5
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A：Price variance of direct materials=（actual price-standard price）*actual quantity {Vw+~8
= (5.8-6)*3200 z<aB GG
= $640 【F】 $Llv6<B
Price variance of $640 【F】 due to the actual price of $5.8 per kg being fewer than the standard $6 per kg. v+uq
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B：Efficiency variance of direct materials= (actual quantity-standard quantity)*standard price 6yk=4l
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= (3200-3000)*6 zWKnkIit,
=$1200 【U】 Ix
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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. MyB&mC7Es
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C：Total variance of direct materials=actual costs- standard cost zaW y7@?
=18560-18000 K
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=560 【U】 yO*~)ALb+
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