Business law

(1) Can a small-holding (minor) shareholder have an influence on how a company is managed? What are the main restrictions and are the number of shares held relevant?

1. Wytch Corporation bases its budgets on machine-hours. The company's static planning budget for February appears below:

Required:

Prepare a flexible budget for 6,400 machine-hours per month.

P 14 - 2

On January 1, 2018, Baddour Inc., issued 10% bonds with a face amount of $160 million. The bonds were priced at $140 million to yield 12%. Interest is paid semiannually on June 30 and December 31. Baddour's fiscal year ends September 30.

Question #1.) What amount(s) related to the bonds would Baddour report in its balance sheet at September 30, 2018?

On 9/30/18 Interest expense - Interest payable is $4,212,000 - $4,000,000 = $212,000,000. I'm curious then, when subtracting the interest payable from the interest expense what it would be on 6/30/18? This is the 9th edition of Intermediate Accounting by authors Spiceland, Nelson, and Thomas. Published by Mcgraw Hill.

Sarasota Company sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the year 2017 in which no benefits were paid. 1. The actuarial present value of future benefits earned by employees for services rendered in 2017 amounted to $55,700. 2. The company’s funding policy requires a contribution to the pension trustee amounting to $144,323 for 2017. 3. As of January 1, 2017, the company had a projected benefit obligation of $894,700, an accumulated benefit obligation of $792,500, and a debit balance of $402,000 in accumulated OCI (PSC). The fair value of pension plan assets amounted to $601,400 at the beginning of the year. The actual and expected return on plan assets was $54,300. The settlement rate was 9%. No gains or losses occurred in 2017 and no benefits were paid. 4. Amortization of prior service cost was $49,800 in 2017. Amortization of net gain or loss was not required in 2017. Determine the amounts of the components of pension expense that should be recognized by the company in 2017. (Enter amounts that reduce pension expense with either a negative sign preceding the number e.g. -45 or parenthesis e.g. (45).) Prepare the journal entry or entries to record pension expense and the employer’s contribution to the pension trustee in 2017. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No entry" for the account titles and enter 0 for the amounts.) Indicate the pension-related amounts that would be reported on the income statement and the balance sheet for Sarasota Company for the year 2017.

John Fleming, chief administrator for Valley View Hospital, is concerned about the costs for tests in the hospital’s lab. Charges for lab tests are consistently higher at Valley View than at other hospitals and have resulted in many complaints. Also, because of strict regulations on amounts reimbursed for lab tests, payments received from insurance companies and governmental units have not been high enough to cover lab costs. Mr. Fleming has asked you to evaluate costs in the hospital’s lab for the past month. The following information is available: Two types of tests are performed in the lab—blood tests and smears. During the past month, 700 blood tests and 2,900 smears were performed in the lab. Small glass plates are used in both types of tests. During the past month, the hospital purchased 14,500 plates at a cost of $54,520. 1,900 of these plates were unused at the end of the month; no plates were on hand at the beginning of the month. During the past month, 1,900 hours of labor time were recorded in the lab at a cost of $20,425. The lab’s variable overhead cost last month totaled $14,250. Valley View Hospital has never used standard costs. By searching industry literature, however, you have determined the following nationwide averages for hospital labs: Plates: Three plates are required per lab test. These plates cost $4.00 each and are disposed of after the test is completed. Labor: Each blood test should require 0.8 hours to complete, and each smear should require 0.40 hours to complete. The average cost of this lab time is $11.10 per hour. Overhead: Overhead cost is based on direct labor-hours. The average rate for variable overhead is $7.00 per hour. Required: 1. Compute a materials price variance for the plates purchased last month and a materials quantity variance for the plates used last month. 2. For labor cost in the lab: a. Compute a labor rate variance and a labor efficiency variance. b. In most hospitals, one-half of the workers in the lab are senior technicians and one-half are assistants. In an effort to reduce costs, Valley View Hospital employs only one-fourth senior technicians and three-fourths assistants. Would you recommend that this policy be continued? 3-a. Compute the variable overhead rate and efficiency variances. 3-b. Is there any relation between the variable overhead efficiency variance and the labor efficiency variance?

Explain in details what are the factors that forces Australian Companies to disclose environmental and climate change information. Provide examples to substantiate your answer. Kindly do not copy and paste .

QUESTION 1 [41 MARKS]
ABC Holdings is considering two projects. The projects are similar in nature and are expected to both operate for four years. Due to unavailability of funds to undertake both of them, only one project can be accepted. The cost of capital is 12%.
The following information is available:

Depreciation is charged on the straight line basis.

1. Assuming that the management of ABC holdings have decided to undertake both projects and the projects can be undertaken in part, how much NPV will they get if they have N$80 000 000 available to invest.

2. Explain three non-financial considerations that should be taken into account before a project is chosen

Issue Price

The following terms relate to independent bond issues:

1. 530 bonds; $1,000 face value; 8% stated rate; 5 years; annual interest payments
2. 530 bonds; $1,000 face value; 8% stated rate; 5 years; semiannual interest payments
3. 900 bonds; $1,000 face value; 8% stated rate; 10 years; semiannual interest payments
4. 2,160 bonds; $500 face value; 12% stated rate; 15 years; semiannual interest payments

Use the appropriate present value table:

PV of $1 and PV of Annuity of $1

Required:

Assuming the market rate of interest is 10%, calculate the selling price for each bond issue. If required, round your intermediate calculations and final answers to the nearest dollar.

The balance sheet data of Ivanhoe Company at the end of 2017 and 2016 are shown below.

Land was acquired for $30,500 in exchange for common stock, par $30,500, during the year; all equipment purchased was for cash. Equipment costing $12,900 was sold for $3,000; book value of the equipment was $6,000. Cash dividends of $10,000 were declared and paid during the year.

Compute net cash provided (used) by:

Dexter Industries purchased packaging equipment on January 8 for $87,200. The equipment was expected to have a useful life of three years, or 20,000 operating hours, and a residual value of $7,200. The equipment was used for 8,590 hours during Year 1, 7,370 hours in Year 2, and 4,040 hours in Year 3.

Exercise 9-3 Service department expenses allocated to operating departments LO P2

Advertising department expenses of $57,800 and purchasing department expenses of $57,800 of Cozy Bookstore are allocated to operating departments on the basis of dollar sales and purchase orders, respectively. Information about the allocation bases for the three operating departments follows.
  

  
Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.

Complete the following table by allocating the expenses of the two service departments (advertising and purchasing) to the three operating departments.

During Heaton Company’s first two years of operations, it reported absorption costing net operating income as follows:

* $3 per unit variable; $250,000 fixed each year.

The company’s $39 unit product cost is computed as follows:

Forty percent of fixed manufacturing overhead consists of wages and salaries; the remainder consists of depreciation charges on production equipment and buildings.

Production and cost data for the first two years of operations are:

Required:

1. Using variable costing, what is the unit product cost for both years?

2. What is the variable costing net operating income in Year 1 and in Year 2?

3. Reconcile the absorption costing and the variable costing net operating income figures for each year.