The movement for improved accounting of sustainability has grown substantially in recent years. The calls for integrated reporting and improved sustainability accounting metrics have created new forces within accounting bodies. The recent efforts of the Sustainability Accounting Standards Board (SASB) highlight the potential for this enhancement to corporate reporting. Discuss how sustainability is being incorporated into corporate reporting today and some of the reasons for these changes? Provide examples for some of this reporting

Net Present Value

A project has estimated annual net cash flows of $6,250 for seven years and is estimated to cost $45,000. Assume a minimum acceptable rate of return of 10%. Use the Present Value of an Annuity of $1 at Compound Interest table below.

Determine (a) the net present value of the project and (b) the present value index. If required, use the minus sign to indicate a negative net present value.

The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2018, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2017, in exchange for various considerations totaling $600,000. At the acquisition date, the fair value of the noncontrolling interest was $400,000 and Keller’s book value was $800,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $200,000. This intangible asset is being amortized over 20 years.

Gibson sold Keller land with a book value of $50,000 on January 2, 2017, for $110,000. Keller still holds this land at the end of the current year.

Keller regularly transfers inventory to Gibson. In 2017, it shipped inventory costing $175,000 to Gibson at a price of $250,000. During 2018, intra-entity shipments totaled $300,000, although the original cost to Keller was only $195,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Gibson owes Keller $55,000 at the end of 2018.

(Note: Parentheses indicate a credit balance.)

1. Prepare a worksheet to consolidate the separate 2018 financial statements for Gibson and Keller.

2. How would the consolidation entries in requirement (a) have differed if Gibson had sold a building with a $110,000 book value (cost of $240,000) to Keller for $200,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.

The production department of Zan Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year:

In addition, 21,000 grams of raw materials inventory is on hand at the start of the 1st Quarter and the beginning accounts payable for the 1st Quarter is $8,000.

Each unit requires 4 grams of raw material that costs $1.20 per gram. Management desires to end each quarter with an inventory of raw materials equal to 25% of the following quarter’s production needs. The desired ending inventory for the 4th Quarter is 8,000 grams. Management plans to pay for 60% of raw material purchases in the quarter acquired and 40% in the following quarter. Each unit requires 0.20 direct labor-hours and direct laborers are paid $12.50 per hour.

Required:

1.&2. Calculate the estimated grams of raw material that need to be purchased and the cost of raw material purchases for each quarter and for the year as a whole.

3. Calculate the expected cash disbursements for purchases of materials for each quarter and for the year as a whole.

4. Calculate the estimated direct labor cost for each quarter and for the year as a whole.

From a management perspective why do you think budgets are so important AND give an example, that relates specifically to your major, of how you will use budgets in your field. Do not forget APA format on your sources and in-text citations.

Impact on EPS, Rankings, and Computations

Waseca Company had 5 convertible securities outstanding during all of 2016. It paid the appropriate interest (and amortized any related premium or discount using the straightline method) and dividends on each security during 2016. Each of the convertible securities is described in the following table:

Additional data:

Net income for 2016 totaled $119,460. The weighted average number of common shares outstanding during 2016 was 40,000 shares. No share options or warrants are outstanding. The effective corporate income tax rate is 30%.

Required:

1. Prepare a schedule that lists the impact of the assumed conversion of each convertible security on diluted earnings per share. Round to two decimal places.

2. Prepare a ranking from 1-5 of the order in which each of the convertible securities should be included in diluted earnings per share. The convertible security having the most dilutive impact on diluted earnings per share is listed at the top of the ranking (i.e. "1").

3. Compute basic earnings per share. Round to two decimal places.
$ ___ per share

4. Compute diluted earnings per share. Round to two decimal places.
$ ___ per share

5. Indicate the amount(s) of the earnings per share that Waseca would report on its 2016 income statement. Round to the nearest cent.

Basic earnings per share: $ ___

Diluted earnings per share: $ ___

Question (a):

Dividing Partnership Net Income.

Required:

Steve Conyers and Chelsy Poodle formed a partnership, dividing income as follows: Annual salary allowance to Poodle of $170,500. Interest of 6% on each partner's capital balance on January 1. Any remaining net income divided to Conyers and Poodle, 1:2. Conyers and Poodle had $77,600 and $75,000, respectively, in their January 1 capital balances. Net income for the year was $310,000. How much is distributed to Conyers and Poodle?

Question (b):

Liquidating Partnerships

Prior to liquidating their partnership, Perkins and Brooks had capital accounts of $46,000 and $74,000, respectively. Prior to liquidation, the partnership had no cash assets other than what was realized from the sale of assets. These partnership assets were sold for $144,000. The partnership had $5,000 of liabilities. Perkins and Brooks share income and losses equally. Determine the amount received by Brooks as a final distribution from liquidation of the partnership.

Comprehensive: EPS

Frost Company has accumulated the following information relevant to its 2016 earnings per share.

1. Net income for 2016: $150,500.
2. Bonds payable: On January 1, 2016, the company had issued 10%, $200,000 bonds at 110. The premium is being amortized in the amount of $1,000 per year. Each $1,000 bond is currently convertible into 22 shares of common stock. To date, no bonds have been converted.
3. Bonds payable: On December 31, 2014, the company had issued $540,000 of 5.8% bonds at par. Each $1,000 bond is currently convertible into 11.6 shares of common stock. To date, no bonds have been converted.
4. Preferred stock: On July 3, 2015, the company had issued 3,800 shares of 7.5%, $100 par, preferred stock at $108 per share. Each share of preferred stock is currently convertible into 2.45 shares of common stock. To date, no preferred stock has been converted and no additional shares of preferred stock have been issued. The current dividends have been paid.
5. Common stock: At the beginning of 2016, 25,000 shares were outstanding. On August 3, 7,000 additional shares were issued. During September, a 20% stock dividend was declared and issued. On November 30, 2,000 shares were reacquired as treasury stock.
6. Compensatory share options: Options to acquire common stock at a price of $33 per share were outstanding during all of 2016. Currently, 4,000 shares may be acquired. To date, no options have been exercised. The unrecognized compensation cost (net of tax) related to these options is $5 per share.
7. Miscellaneous: Stock market prices on common stock averaged $41 per share during 2016, and the 2016 ending stock market price was $40 per share. The corporate income tax rate is 30%.

Required:

1. Compute the basic earnings per share. Round intermediate calculations to the nearest whole number, then round your final answer to two decimal places.
   $ per share
2. Compute the diluted earnings per share. Round intermediate calculations to the nearest whole number, then round your final answer to two decimal places.
   $ per share
3. Indicate which earnings per share figure(s) Frost would report on its 2016 income statement.
   Choose: (1) Basic EPS only (2) Both basic and diluted EPS (3) Diluted EPS only

The following data are for the 2016 fiscal year of Alphabet, Inc., which is the parent company of Google, Inc., and Facebook, Inc. All dollar amounts are in thousands.

Required

1. Calculate the EBIT for each company.
2. Calculate each company’s debt-to-assets ratio, current ratio, and the times-interest-earned ratio.
3. Calculate each company’s return-on-assets ratio using EBIT instead of net earnings. Calculate each company’s return-on-equity ratio using net earnings.
4. Alphabet reported interest expense of $124 million, before taxes. What was its after-tax interest expense in dollars? (Hint: You will need to compute its tax rate by dividing income tax expense by earnings before taxes, which must be computed.)

The Cutting Department of Karachi Carpet Company provides the following data for January. Assume that all materials are added at the beginning of the process.

a. Prepare a cost of production report for the Cutting Department. If an amount is zero or a blank, enter in "0". For the The rate used to allocate costs between completed and partially completed production.cost per equivalent unit computations, round your answers to two decimal places.

b. Compute and evaluate the change in cost per equivalent unit for direct materials and conversion from the previous month (December). If required, round your answers to two decimal places.

"Foreign Currency Transactions and International Financial Reporting Standards (IFRS)"

• Analyze the main reasons why a company might prefer a foreign currency option over a forward contract in hedging a foreign currency firm commitment. In contrast, analyze the main reasons why a company might prefer a forward contract over an option in hedging a foreign currency asset or liability. Determine the option (e.g. a foreign currency option or a forward contract) that you consider to be more effective. Provide a rationale for your response.
• Assume that all the companies in the world use International Financial Reporting Standards (IFRS). Determine at least two (2) obstacles to the worldwide comparability of financial statements and provide one (1) strategy to overcome the obstacles in question. Provide support for your rationale.

Prepare journal entries for the City of Pudding's governmental funds to record the following transactions, first for fund financial statements and then for government-wide financial statements.

1. A new truck for the sanitation department was ordered at a cost of $107,250.
2. The city print shop did $2,700 worth of work for the school system (but has not yet been paid).
3. An $12 million bond was issued to build a new road.
4. Cash of $183,000 is transferred from the general fund to provide permanent financing for a municipal swimming pool that will be viewed as an enterprise fund.
5. The truck ordered in (a) is received at an actual cost of $110,850. Payment is not made at this time.
6. Cash of $38,600 is transferred from the general fund to the capital projects fund.
7. A state grant of $60,000 is received that must be spent to promote recycling.
8. The first $9,300 of the state grant received in (g) is appropriately expended.

Schedule of Cash Payments

EastGate Physical Therapy Inc. is planning its cash payments for operations for the first quarter (January–March). The Accrued Expenses Payable balance on January 1 is $33,100. The budgeted expenses for the next three months are as follows:

Other operating expenses include $4,200 of monthly depreciation expense and $900 of monthly insurance expense that was prepaid for the year on May 1 of the previous year. Of the remaining expenses, 65% are paid in the month in which they are incurred, with the remainder paid in the following month. The Accrued Expenses Payable balance on January 1 relates to the expenses incurred in December.

Prepare a schedule of cash payments for operations for January, February, and March.

Given the financial data for four mutually exclusive alternatives in the table below,

Use a Rate of Return Analysis to solve for the following:

• Which alternative should be chosen using an MARR of 9%? Mathematical solution
• Create a choice table from 0 – 25%.
• Create a graphical solution to the problem indicating which alternative should be chosen for interest rates from 0 – 20%. Make sure your graph has all proper labels including the appropriate choices for the Rate of Returns shown in the graph. The graph should be on its own page and not embedded.