Vittoria Ltd requires a Statement of Cash Flows to be prepared for the year ended

31 March 2018, the following information has been collected for this purpose.

Question 2 continued:

Additional information:

Vittoria Ltd classifies interest expense and dividends paid as cash outflows from financing activities.

Plant and equipment, with a fair value of $100 000, has been acquired by the issue of

$100 000 worth of fully paid Vittoria Ltd shares to the sellers of the plant and equipment.

During the year, equipment that originally cost $100 000 was sold for $30 000 cash.

Plant and equipment was revalued upwards by $30 000.

A long-term loan of $30 000 was specifically organised for the purchase of plant and equipment costing $30 000.  

Required:

(i) Prepare the general ledger accounts as required in the answer booklet.

(ii) Prepare a statement of cash flows for Vittoria Ltd, for the year ended 31 March 2018, in accordance with NZ IAS 7 Statement of Cash Flows. Vittoria Ltd uses the indirectmethod for the cash flows from operating activities (CFOA) section.  

(iii) Prepare a statement of cash flows for Vittoria Ltd, for the year ended 31 March 2018, in accordance with NZ IAS 7 Statement of Cash Flows. Vittoria Ltd uses the directmethod for the cash flows from operating activities (CFOA) section. Complete the necessary reconciliation, as required by NZ FRS-44, to be included in the notes.

(iv) Explain, by completing the table in the answer booklet, how your answers to (ii) and (iii) above would changeifVittoria Ltd classified interest expense paid as a cash outflow from operating activities.

(v) Vittoria Ltd has provided you with 15 types of cash inflows and cash outflows in the answer booklet and requires you to determine where they should be included in the Statement of Cash Flows in accordance with NZ IAS 7 Statement of Cash Flows. AssumeVittoria Ltd uses the direct method for CFOA.  Hint: Remember certain cash flows have a choice of classification; for these particular cash flows highlight the two choices available.

CFOA = cash flows from operating activities, CFIA = cash flows from investing activities and CFFA = cash flows from financing activities.                                                                                                    

The 2018 Annual Reports/Financial Statements forboth Air NZ and Auckland Airportare provided on Canvas/Modules/5.Assignments 1 to 5.Answer the questions in the Answer Booklet for both Air NZ and Auckland Airport. All questions relate to 2018.

Air NZ : https://p-airnz.com/cms/assets/PDFs/Air-NZ-2018-Financial-Results.pdf

AKL airport : https://corporate.aucklandairport.co.nz/-/media/Files/Corporate/Annual-Report-2018/Annual-Report-2018-Financial-Statements.ashx?la=en&hash=3FD590BBFBB78389CD2DEA7EE8402BCAEC4332E9

Present in your own words by taking a company as a sample study with regard to Voucher & Non-Voucher in Invoice processing?

We know that Assets=Liabilities+Equity. If company increases the debt level , how can affect it to the ROE. Debt affects the Equity and the ROE?

2. Change all of the numbers in the data area of your worksheet so that it looks like this:

If your formulas are correct, you should get the correct answers to the following questions.

(a) What is the break-even in dollar sales?

(b) What is the margin of safety percentage?

(c) What is the degree of operating leverage? (Round your answer to 2 decimal places.)

3. Using the degree of operating leverage and without changing anything in your worksheet, calculate the percentage change in net operating income if unit sales increase by 20%.

4. Confirm your calculations in Requirement 3 above by increasing the unit sales in your worksheet by 20% so that the Data area looks like this:

A

B

C

1

2

3

4

5

6

7

(a) What is net operating income? (Negative amount should be indicated by a minus sign.)

(b) By what percentage did the net operating income increase?

5. Thad Morgan, a motorcycle enthusiast, has been exploring the possibility of relaunching the Western Hombre brand of cycle that was popular in the 1930s. The retro-look cycle would be sold for $13,000 and at that price, Thad estimates 200 units would be sold each year. The variable cost to produce and sell the cycles would be $9,100 per unit. The annual fixed cost would be $390,000.

a. What is the break-even in unit sales?

b. What is the margin of safety in dollars?

c. What is the degree of operating leverage? (Round your answer to 2 decimal places.)

Thad is worried about the selling price. Rumors are circulating that other retro brands of cycles may be revived. If so, the selling price for the Western Hombre would have to be reduced to $10,500 to compete effectively. In that event, Thad would also reduce fixed expenses to $363,000 by reducing advertising expenses, but he still hopes to sell 200 units per year.

d. What would the net operating income be in this situation? (Negative amount should be indicated by a minus sign.)

. Provide a short, real-world workplace scenario that exemplifies at least one type of discrimination you researched. (Disability, pregnancy, race, color, religion, sex, national original….) b. Discuss how the FMLA serves to discourage workplace discrimination.

Selected Dividend Transactions, Stock Split

Selected transactions completed by Canyon Ferry Boating Corporation during the current fiscal year are as follows.

Journalize the transactions.

If no entry is required, select "No entry required" and leave the amount boxes blank. If an amount box does not require an entry, leave it blank.

Jan. 8. Split the common stock 3 for 1 and reduced the par from $84 to $28 per share. After the split, there were 135,000 common shares outstanding.

Apr. 30. Declared semiannual dividends of $1.30 on 9,000 shares of preferred stock and $0.08 on the common stock payable on July 1.

July 1. Paid the cash dividends.

Oct. 31. Declared semiannual dividends of $1.30 on the preferred stock and $0.06 on the common stock (before the stock dividend). In addition, a 3% common stock dividend was declared on the common stock outstanding. The fair market value of the common stock is estimated at $50.

Dec. 15. Paid the cash dividends and issued the certificates for the common stock dividend.

What role does the Accounting Information System play in the production cycle by taking a Company as sample study?

[The following information applies to the questions displayed below.]

Forten Company, a merchandiser, recently completed its calendar-year 2017 operations. For the year, (1) all sales are credit sales, (2) all credits to Accounts Receivable reflect cash receipts from customers, (3) all purchases of inventory are on credit, (4) all debits to Accounts Payable reflect cash payments for inventory, and (5) Other Expenses are paid in advance and are initially debited to Prepaid Expenses. The company’s income statement and balance sheets follow.

Additional Information on Year 2017 Transactions

1. The loss on the cash sale of equipment was $25,125 (details in b).
2. Sold equipment costing $106,875, with accumulated depreciation of $50,125, for $31,625 cash.
3. Purchased equipment costing $116,375 by paying $70,000 cash and signing a long-term note payable for the balance.
4. Borrowed $6,000 cash by signing a short-term note payable.
5. Paid $60,125 cash to reduce the long-term notes payable.
6. Issued 4,500 shares of common stock for $20 cash per share.
7. Declared and paid cash dividends of $54,100.

Required:
1. Prepare a complete statement of cash flows; report its operating activities using the indirect method. (Amounts to be deducted should be indicated with a minus sign.)
  

Entries for Stock Dividends

Healthy Life Co. is an HMO for businesses in the Fresno area. The following account balances appear on Healthy Life’s balance sheet: Common stock (440,000 shares authorized ; 4,000 shares issued), $100 par, $400,000; Paid-In Capital in excess of par— common stock, $80,000; and Retained earnings, $3,600,000. The board of directors declared a 2% stock dividend when the market price of the stock was $139 a share. Healthy Life reported no income or loss for the current year.

If an amount box does not require an entry, leave it blank. If no entry is required, select "No entry required" from the dropdown.

a1. Journalize the entry to record the declaration of the dividend, capitalizing an amount equal to market value.

a2. Journalize the entry to record the issuance of the stock certificates.

b. Determine the following amounts before the stock dividend was declared: (1) total paid-in capital, (2) total retained earnings, and (3) total stockholders' equity.

c. Determine the following amounts after the stock dividend was declared and closing entries were recorded at the end of the year: (1) total paid-in capital, (2) total retained earnings, and (3) total stockholders' equity.

Phillips Company bought 30 percent ownership in Jones Bag Company on January 1, 20X1, at underlying book value. During the period of January 1, 20X1, through December 31, 20X3, the market value of Phillips' investment in Jones' stock increased by $1,500 each year. In 20X1, 20X2, and 20X3, Jones Bag reported the following:

The balance in Phillips Company’s investment account on December 31, 20X3, was $71,000.

Required:
In each of the following independent cases, determine the amount that Phillips paid for its investment in Jones Bag stock assuming that Phillips accounted for its investment by carrying the investment at fair value, or using the equity method.
  

Iron-Bit is a manufacturer of industrial drill bits. The management is concerned about the adequacy of the firm’s working capital in funding daily operations.

a) The average collection period and average payment period are 35 days and 30 days respectively. The firm turns over its inventory 20 times each year (assume 365 days year), and currently has annual sales of $185 million.

(i) Calculate the firm’s operating cycle (OC) and cash conversion cycle (CCC), correct to 1 decimal place.

(ii) Determine the amount of resources needed to support the firm’s cash conversion cycle.

b) Iron-Bit purchases 2 million units per year of a component used in drill bits production. The cost per order is $55, while the carry cost is $6 per unit per year.

(i) Calculate the economic order quantity.

(ii) Using your answer in (i), calculate the ordering cost, carrying cost and total inventory cost.

c) Suppose Iron-Bit operates a 250 days per year, and maintains a minimum inventory level of 1500 units of safety stock. If the lead time to receive orders of the component is 3 days, calculate the reorder point.

The following items were in transit to or from Power Corp. on December 31, 2009

Goods costing $4000 were sent FOB shipping point from Power Corp. to a customer

Goods costing $2580 were sent FOB destination to Power Corp. from a vendor

Goods costing $2960 were sent FOB destination from Power Corp. to a customer

Goods costing $1957 were sent FOB shipping point to Power Corp. from a vendor.

a) Which of these items should Power Corp. include in its December 31, 2009 inventory?

b) Explain the rationale for either including or excluding the items.

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 $36 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.

The estate tax in the United States is a progressive tax on the estate of a deceased person before their property (real estate, stocks and bonds, business interests, etc.) is transferred to their heirs. In 1906, President Theodore Roosevelt proposed a federal estate tax, saying, "The man of great wealth owes a particular obligation to the State because he derives special advantages from the mere existence of government." The estate tax was passed in the Emergency Revenue Act of 1916 in preparation for WWI. The first estate tax was imposed on the value of an estate over $50,000 (roughly $850,000 in today’s dollars) at a graduated rate of one to five percent.

The debate surrounding the estate tax has existed in many forms since Teddy Roosevelt's proposal. It has become especially heated in recent years with the rise of an anti-estate tax movement. This movement really began in 1993 when a group of wealthy families, under the lead of the Mars family, began a Washington lobbying campaign against what they would soon term the "death tax" because of its political advantages. While the debate is often framed only as a class-war debate (with the wealthy being seen as the potential benefactors of a ban and the poor the losers), it also encompasses other questions that are unrelated to class and wealth. The effect on the US fiscal budget is one consideration that is particularly heavily debated with some estimating the costs in the hundreds of billions of dollars and other estimating much lower costs. This question is particularly sensitive in the context of another debate on the extent of any fiscal problems in the US which would also effect thinking on the ability of the US to absorb tax revenue losses of any kind. Another question surrounds the extent of economic impacts. One particularly extensively debated topic among scholars and politicians alike is how estate taxes affect wealthy savings rates and corresponding levels of consumption and economic generation.

Is the estate tax unfair to the wealthy? Why or why not?

Could you argue that the assessing the estate tax constitutes “double taxation”?

Do you believe that having or not having the estate tax really matters economically in the big picture?

Do you think that removing the estate tax would reduce what individuals pass on to charity?

Would getting rid of the estate tax be an irresponsible thing to do?

How does the estate tax in the United States compare to that of other countries?