Unilever Group is a global company that markets a wide variety of products, including Lever soap, Breyer’s ice cream, and Hellman’s mayonnaise. The income statement and statement of comprehensive income for the Dutch company, Unilever Group is shown below.

$$\begin{array}{c} \textbf{Unilever Group}\\ \textbf{Consolidated Income Statement}\\ \textbf{For the Year Ended December 31, 2009}\\ \textbf{(in millions of euros)}\\ \end{array}$$

$$\begin{array}{lr} \hline \text{Turnover}&\$39,823\\ \text{Operating profit}&5,020\\ \text{}&\\ \text{After (charging)/crediting:}&\\ \quad\text{Restructuring}&(897)\\ \quad\text{Business disposals, impairments, other}&29\\ \text{}&\\ \text{Net Finance costs:}&(593)\\ \quad\text{Finance income}&75\\ \quad\text{Finance costs}&(504)\\ \quad\text{Pensions and similar obligations}&(164)\\ \text{}&\\ \text{Share of net profit/(loss) of joint ventures}&111\\ \text{Share of net profit/(loss) of associates}&4\\ \text{Other income from non-current investments}&374\\ \text{}&\\ \text{Profit before taxation}&\$4,916\\ \text{Taxation}&(1,257)\\ \text{Net profit}&\$3,659\\ \text{}&\\ \text{Earnings per share—basic}&\$1.21\\ \text{Earnings per share—diluted}&\$1.17\\ \end{array}$$

$$\begin{array}{c} \textbf{Consolidated Statement of Comprehensive Income}\\ \textbf{For the Year Ended December 31, 2009}\\ \end{array}$$

$$\begin{array}{lr} \hline \text{Fair value gains (losses), net of tax}&\$65\\ \text{Actuarial gains (losses) on pensions, net of tax}&18\\ \text{Currency retranslation gains (losses), net of tax}&396\\ \text{Net income (expense) recognized directly into equity}&\$519\\ \text{}&\\ \text{Net profit}&3,659\\ \text{Total comprehensive income}&\$4,178\\ \end{array}$$

a. What do you think is meant by “turnover”?

The balance on the Razazadas' credit card on May 12, their billing date, was $378.50. For the period ending June 12, they had the following transactions. May 13 Charge: Toys$129.79, May 15 Payment 50.00, June I Charge: Clothing 135.85, June 8 Charge: Housewares 37.63. (a) Determine the average daily balance for the billing period. (b) Determine the finance charge to be paid on June 12. Assume an interest rate of 1.3% per month. (c) Determine the balance due on June 12.

Determine the new balance. $$ \scriptstyle\begin{array}{|c|c|c|c|c|c|} \hline \begin{array}{c} \text { Billing } \\ \text { Date } \end{array} & \begin{array}{c} \text { Previous } \\ \text { Balance } \end{array} & \begin{array}{c} \text { Finance } \\ \text { Charge } \end{array} & \begin{array}{c} \text { New } \\ \text { Purchases } \end{array} & \begin{array}{c} \text { Payments } \\ \text { & Credits } \end{array} & \begin{array}{c} \text { New } \\ \text { Balance } \end{array} \\ \hline 03/01 & \$ 450.95 & \$ 6.75 & \$ 39.95 & \$ 160.00 & \\ \hline \end{array} $$

Unilever Group is a global company that markets a wide variety of products, including Lever soap, Breyer’s ice cream, and Hellman’s mayonnaise. A recent income statement and statement of comprehensive income for the Dutch company, Unilever Group, are shown below for a recent year.

$$\begin{array}{lcr} &\textbf{Unilever Group}\\ &\textbf{Consolidated Income Statement}\\ &\textbf{For the Year Ended December 31}\\ &\textbf{(in millions of euros)}\\ \text{Turnover}&&\$44,262\\ \text{Operating profit}&&6,339\\ \\ \text{After (charging)/crediting:}&&\\ \text{Restructuring.}&&(589)\\ \text{Business disposals, impairments, other}&&308\\ \\ \text{Net finance costs}&&(394)\\ \text{Finance income}&&77\\ \text{Finance costs}&&(491)\\ \text{Pensions and similar obligations}&&20\\ \\ \text{Share of net profit/(loss) of joint ventures}&&120\\ \text{Share of net profit/(loss) of associates}&&(9)\\ \text{Other income from non-current investments}&&76\\ \\ \text{Profit before taxation}&&\$ 6,132\\ \text{Taxation}&&\underline{(1,534)}\\ \text{Net profit}&&\underline{\$ 4,598}\\ \\ \text{Earnings per share—basic.}&&\$ 1.51\\ \text{Earnings per share—diluted.}&&\$ 1.46\\ \end{array}$$

$$\begin{array}{lcr} &\textbf{Consolidated Statement of Comprehensive Income}\\ &\textbf{For the Year Ended December 31}\\ \text{Fair value gains (losses), net of tax}&&\$43\\ \text{Actuarial gains (losses) on pensions, net of tax}&&105\\ \text{Currency retranslation gains (losses), net of tax}&&\underline{460}\\ \text{Net income (expense) recognized directly into equity}&&\$ 608\\ \\ \text{Net profit}&&\underline{4,598}\\ \text{Total comprehensive income}&&\underline{\underline{\$5,206}}\\ \end{array}$$

Source: Unilever N.V., Form 20-F. Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. For the fiscal year ended December 31, 2010. Securities and Exchange Commission, Washington D.C. 20549. a. What do you think is meant by “turnover”?

On April 15, the billing date, Gabrielle had a balance due of $57 .88 on her credit card. She is redecorating her apartment and has the following transactions. April 16 Charge: Paint$64.75, April 20 Payment 45.00, May3 Charge: Curtains 72.85, May 10 Charge: Chair 135.50. (a) Determine the finance charge on May 15, using the previous balance method. Assume that the interest rate is 1.35% per month. (b) Determine the new balance on May 15.

The finance committee of a nonprofit summer camp for children is setting the cost for a 5-day camp. The fixed cost for the entire camp is $2400 per day, and includes things such as rent, salaries, insurance, and equipment. An outside food services company will provide meals at a cost of$3 per camper per meal. Campers will eat three meals a day. As a nonprofit camp, the camp must cover its costs, but not make any profit. The committee must come up with a proposal for setting the fee for each camper, based on the number of campers who are expected to attend each week. Is there a minimum camper fee, not counting the cost of meals? If so, what is it? Explain.

The price of a home is $120,000. The bank requires a 10% down payment and two points at the time of closing. The cost of the home is financed with a 30-year fixed-rate mortgage at 8.5%. Find the required down payment.

Use a calculator. Chris Schmaltz purchases a Toyota Avalon for $34,119. Chris makes a down payment of$5000 and finances the remaining amount for 5 years at an annual interest rate of 7.6%. The sales tax is 6.25% of the selling price, and the license fee is $429. Find the monthly payment.

Christine took a world cruise that had a cash price of $23,000 by paying 10% down and financing the balance with a 48- month fixed installment loan. The APR on the loan was 6.0%. Before making the 12th payment , Christine decides to pay off the loan. (a) Determine the original finance charge on the 48-month loan. (b) Determine Christine's monthly payment. (c) If the actuarial method is used, determine the amount of interest Christine will save by paying the loan off early. (d) If the rule of 78s is used, determine the amount of interest Christine will save by paying the loan off early. (e) Which method, the actuarial method or the rule of 78s, is more advantageous to the consumer?

The total purchase price of a new home entertainment system is $14,240. If the down payment is$2900 and the balance is to be financed over 48 months at 6% add-on interest, what is the monthly payment?

The finance committee of a nonprofit summer camp for children is setting the cost for a 5-day camp. The fixed cost for the entire camp is $2400 per day, and includes things such as rent, salaries, insurance, and equipment. An outside food services company will provide meals at a cost of$3 per camper per meal. Campers will eat three meals a day. As a nonprofit camp, the camp must cover its costs, but not make any profit. The committee must come up with a proposal for setting the fee for each camper, based on the number of campers who are expected to attend each week. What is the fee per camper if there are 2000 campers? Why is your answer different?

On December 31, 2016, Largo, Inc., had a $750,000 note payable outstanding, due July 31, 2017. Largo borrowed the money to finance construction of a new plant. Largo planned to refinance the note by issuing longterm bonds. Because Largo temporarily had excess cash, it prepaid$250,000 of the note on January 12, 2017. In February 2017, Largo completed a $1,500,000 bond offering. Largo will use the bond offering proceeds to repay the note payable at its maturity and to pay construction costs during 2017. On March 3, 2017, Largo issued its 2016 financial statements. What amount of the note payable should Largo include in the current liabilities section of its December 31, 2016, balance sheet? a.$250,000 b. $750,000 c.$500,000 d. $ 0

The Bartolotti family took out a loan to have a garage built next to their house. The 10-year, 10.4% loan was for $56,188. The monthly payment was$475, but the promissory note stated that there was a balloon payment at the end. a. How many monthly payments do the Bartolotti's have to make? b. What is the sum of all but the last monthly payment? c. If the finance charge is $34,415.60, what must the total of ail of the monthly payments be? d. What is the amount of the balloon payment for the final month of this loan?

Determine the new balance. $$ \scriptstyle\begin{array}{|c|c|c|c|c|c|} \hline \begin{array}{c} \text { Billing } \\ \text { Date } \end{array} & \begin{array}{c} \text { Previous } \\ \text { Balance } \end{array} & \begin{array}{c} \text { Finance } \\ \text { Charge } \end{array} & \begin{array}{c} \text { New } \\ \text { Purchases } \end{array} & \begin{array}{c} \text { Payments } \\ \text { & Credits } \end{array} & \begin{array}{c} \text { New } \\ \text { Balance } \end{array} \\ \hline 01 / 22 & \$ 410.75 & \$ 7.20 & \$ 175.00 & \$ 150.00 & \\ \hline \end{array} $$