Advanced Accounting
12th Edition
ISBN: 9781305084858
Author: Paul M. Fischer, William J. Tayler, Rita H. Cheng
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Question
Chapter 19, Problem 19.10.10P
To determine
Introduction: Health Care organizations are continuously serving to the wellbeing of the individuals & meeting the health needs of the people. Many organizations are investing their surplus funds in Equity markets for better returns & serving people well out of those returns.
To select: The best option.
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
1. Assume that George Mason Medical Center has investments in a Building
Replacement Fund with the following balances as of July 15, 2022 listed
by category. The Investment Committee of the Board has approved a
recommendation to reallocate these funds, and to include for the first-time
common stocks from non-US companies. Assume that the portfolio will be
rebalanced on August 1, 2022, to equal the Board's targeted desired
allocation percentages.
George Mason Medical Center
Recommended Asset Allocation for Building Replacement Fund
Rebalancing of Investment Portfolio as of July 15, 2022
Investment Description
Cash and Cash Equivalents
Fixed Income - Domestic Bonds
Fixed Income - International Bonds
Equities Large Cap Growth
Equities Large Cap Value
Equities - Mid/Small Cap Growth
Equities Mid/Small Cap Value
Equities International
Total
S
Balance on
7/15/2022
12,000,000
32,000,000
10,000,000
13,000,000
25,000,000
11,000,000
12,000,000
S 115.000.000
Current
Allocation %
10.4%
27.8%
8.7%…
During the annual review of Acme’s pension plan, several trustees questioned their investment consultant about various aspects of performance measurement and risk assessment.a. Comment on the appropriateness of using each of the following benchmarks for performance evaluation:∙ Market index.∙ Benchmark normal portfolio.∙ Median of the manager universe.b. Distinguish among the following performance measures:∙ The Sharpe ratio.∙ The Treynor measure.∙ Jensen’s alpha.i. Describe how each of the three performance measures is calculated.ii. State whether each measure assumes that the relevant risk is systematic, unsystematic, or total. Explain how each measure relates excess return and the relevant risk.
Analyze the following three years of data relating to the MoMoney Mutual Fund, . It should report the
amount of dividend income and capital gains distributed to the shareholders, along with any other
changes in the fund's net asset value (b = 0.5).
(Click the icon here ☐ in order to copy the contents of the data table below into a spreadsheet.)
2019
2018
NAV (beginning of period)
?
?
2017
$35.56
Net investment income
0.64
0.74
0.56
Net gains on securities
5.48
4.52
- 3.41
Dividends from net investment income
0.64
0.56
Distributions from realized gains
1.61
1.96
0.51
1.44
a. What is the total income from the investment operations?
b. What are the total distributions from the investment operations?
a. The total income from investment operations in 2019 is $
The total income from investment operations in 2018 is $
(Round to the nearest cent.)
(Round to the nearest cent.)
(Round to the nearest cent.)
The total income from investment operations in 2017 is $
b. The total distributions from…
Chapter 19 Solutions
Advanced Accounting
Ch. 19 - Prob. 1UTICh. 19 - Prob. 2UTICh. 19 - Prob. 3UTICh. 19 - Distinguish assets lmited as to use from...Ch. 19 - Prob. 5UTICh. 19 - Prob. 6UTICh. 19 - Prob. 1ECh. 19 - Record the following operating activities: 1....Ch. 19 - Record the following events that affect the loan...Ch. 19 - Prob. 5E
Ch. 19 - Prob. 6ECh. 19 - Prob. 7ECh. 19 - Prob. 8ECh. 19 - Prob. 9ECh. 19 - Prob. 19.1.1PCh. 19 - Prob. 19.1.3PCh. 19 - Prob. 19.1.4PCh. 19 - Prob. 19.1.5PCh. 19 - Prob. 19.1.6PCh. 19 - Prob. 19.1.7PCh. 19 - Prob. 19.1.8PCh. 19 - Prob. 19.1.9PCh. 19 - Prob. 19.1.10PCh. 19 - Prob. 19.2.1PCh. 19 - Prob. 19.2.2PCh. 19 - Prob. 19.2.3PCh. 19 - Prob. 19.2.4PCh. 19 - Prob. 19.2.5PCh. 19 - Prob. 19.2.6PCh. 19 - Prob. 19.2.7PCh. 19 - Prob. 19.2.9PCh. 19 - Prob. 19.2.10PCh. 19 - Prob. 19.4.1PCh. 19 - Prob. 19.4.2PCh. 19 - Prob. 19.5PCh. 19 - Prob. 19.6.1PCh. 19 - Prob. 19.6.2PCh. 19 - Prob. 19.7.1PCh. 19 - Prob. 19.7.2PCh. 19 - Prob. 19.8.1PCh. 19 - Prob. 19.8.2PCh. 19 - Prob. 19.10.1PCh. 19 - Prob. 19.10.2PCh. 19 - Prob. 19.10.3PCh. 19 - Prob. 19.10.4PCh. 19 - Prob. 19.10.5PCh. 19 - Prob. 19.10.6PCh. 19 - Prob. 19.10.7PCh. 19 - Prob. 19.10.8PCh. 19 - Prob. 19.10.9PCh. 19 - Prob. 19.10.10PCh. 19 - Prob. 19.11.1PCh. 19 - Prob. 19.11.2PCh. 19 - Prob. 19.11.3PCh. 19 - Prob. 19.11.4PCh. 19 - Prob. 19.11.5PCh. 19 - Prob. 19.11.6PCh. 19 - Prob. 19.11.7PCh. 19 - Prob. 19.11.8PCh. 19 - Prob. 19.11.9PCh. 19 - Prob. 19.11.10PCh. 19 - The following nominal accounts were extracted from...Ch. 19 - Prob. 19.15P
Knowledge Booster
Similar questions
- During the annual interview of Acme's Pension Plan, several trustees questioned Lucy Graham a pension consultant,about various aspects of performance measurement and risk assessment. In particular, one trustee asked about the appropriateness of using each of the following benchmarks; I). Market index II). Benchmark normal portfolio III). Median of the manager universe IV). Explain 2 different weaknesses of using each of the three benchmarks to measure the performance of a portfolioarrow_forwardThe following information is provided regarding the performance of fund namely Birla Advantage, Sundaram Growth and Sun F&C Value for a period of six months ending August 2022. The Risk free rate of interest is assumed to be 9 percent. Rank them with the help of Treynor Index and discuss. Birla Sundaram Sun Rp 25.38 25.11 25.01 Sigma p 4 9.01 3.55 Beta 0.23 0.56 0.59arrow_forward1. For the year 2020, the permanent fund requirement of DICE Co. has been estimated as P 70,000. The total fund requirements are given as follows: Current Assets. Fixed AssetsFirst Quarter. 20,000 60,000Second quarter. 27,500. 60,000Third quarter 30,000. 60,000Fourth quarter 19,000. 60,000 a). Compute for the seasonal fund requirements b) Compute for the following under aggressive and conservative strategies: 1. short-term funds 2. working capital excessarrow_forward
- Bhavika Investments, a group of financial advi-sors and retirement planners, has been requested to provide advice on how to invest $200,000 forone of its clients. The client has stipulated thatthe money must be put into either a stock fund ora money market fund and the annual return shouldbe at least $14,000. Other conditions related to riskhave also been specified, and the following linear program was developed to help with this invest-ment decision: Minimize risk = 12S + 5Msubject toS + M = 200,000 total investment is$200,000 0.10S + 0.05M Ú 14,000 return must be at least $14,000 M Ú 40,000 at least 40,000 must bein money market fund S, M Ú 0whereS = dollars invested in stock fundM = dollars invested in money market fundThe QM for Windows output is shown below.(a) How much money should be invested in themoney market fund and the stock fund? What isthe total risk?(b) What is the total return? What rate of return isthis?(c) Would the solution change if the risk measurefor each dollar…arrow_forward1. For the year 2020, the permanent fund requirement of DICE Co. has been estimated as P 70,000. The total fund requirements are given as follows: Current Assets. Fixed AssetsFirst Quarter. 20,000 60,000Second quarter. 27,500. 60,000Third quarter 30,000. 60,000Fourth quarter 19,000. 60,000 a). Compute for the seasonal fund requirements b) Compute for the following under aggressive and conservative strategies: 1. Total fund requirements 2. long-term fund 3. short-term funds 4. working capital excessarrow_forwardConsidering the following trading and performance data for 3 different equality mutual funds from JHancock asset management company for the year 2020: Emerging market fund Principal Balance Small Cap Fund Income Fund Average asset (RM' Mill) Security 310 655 520 40.1 570 575 Expenses ratio 0.35% 0.71% 1.65% Pre-tax return, 3-year 10.2% 11.1% 15.2% average Tax-adjusted return, 9.5% 8.91% 13.4% 3-year average i)Calculate the portfolio turnover ratio for each fund ii) Which fund is most likely to be actively managed and which is most likely to be passively managed? iii) Calculate the tax cost ratio for each fund iv) Determine which fund is the most and least tax efficient in their operations? Explain v) Explain what expenses ratio is and which portfolio is considered expenses efficient.arrow_forward
- You need to know the profitability of an investment fund where the amount to invest is $ 17,000, the amount of initial participation value is 3.1235 and at the end of the period is 4.456, what is the profitability of the fund?arrow_forward1. For the year 2020, the permanent fund requirement of DICE Co. has been estimated as P 70,000. The total fund requirements are given as follows: Current Assets. Fixed AssetsFirst Quarter. 20,000 60,000Second quarter. 27,500. 60,000Third quarter 30,000. 60,000Fourth quarter 19,000. 60,000 a). Compute for the seasonal fund requirementsarrow_forwardThe Revenue Account of a life insurance company shows the life assurance fund on 31st March, 2020 at $5,000,000 before taking into account the following items: -Claims covered under re-insurance $12,000.- Bonus utilized in reduction of life insurance premium $4,500. -Interest accrued on securities $8,000.-Outstanding premium $5,000-Claims intimated but not admitted ` $26,000. What is the life assurance fund after taking into account the above omissions?arrow_forward
- From the Case Study"DISTRICT HEADQUARTER HOSPITAL: FINANCIAL FEASIBILITY STUDY" Prepare in as much detail as possible, the projected financial statements, for District Headquarter Hospital for the next six years. The financial statements should comprise projected Balance Sheets, Income Statements and Cash Flow Statements for each of these years.arrow_forwarda. The performance of the fund over the past 1-year period from the 14th of September 2020 to the 13th of September 2021 is presented in the figure below. Based on the figure and given information, which of the following best describes the type of fund TFX: open-end active fund, index fund, close-end fund, or exchange traded fund (ETF). Please explain your answers. Value of Fund's shares 25.00 20.00 15.00 10.00 5.00 0.00 14/09/2020 23/11/2020 Fund TLW Performance -NAV -Share Price 5/02/2021 20/04/2021 30/06/2021 Date Over the past 1-year period, this fund had a portfolio turnover ratio of 10%. 10/09/2021arrow_forwardAt January 1, 2020, Windsor Company had plan assets of $303,400 and a projected benefit obligation of the same amount. During 2020, service cost was $26,700, the settlement rate was 10%, actual and expected return on plan assets were $24,500, contributions were $19,700, and benefits paid were $16,900.Prepare a pension worksheet for Windsor Company for 2020. WINDSOR COMPANY General Journal Entries Memo Record Items PensionExpense Cash PensionAsset/Liability ProjectedBenefitObligation PlanAssets 1/1/20 $enter a dollar amount select a debit or credit $enter a dollar amount select a debit or credit $enter a dollar amount select a debit or credit $enter a dollar amount select a debit or credit…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage Learning
Cornerstones of Financial Accounting
Accounting
ISBN:9781337690881
Author:Jay Rich, Jeff Jones
Publisher:Cengage Learning