Explain the following concepts: financial innovation, mortgage-back securities, asset-price bubble, debt deflation, financial crisis.

Do an analysis of the innovation culture of one local and one international organisation in your industry and write up the main learnings

I feel as innovation is a luxury to non-profit organization versus for-profit organizations, wouldn’t you agree? Why or why not?

What are the differences between horizontal and vertical acquisition? Between a joint venture and a strategic alliance? Between product development and innovation?

Your client has brought you six (6) notices of assessment for the years’ 2010 to 2010 indicating substantial income tax liabilities including penalties. He explains that he has never filed an income tax return because he had no income. He admits to you, however, that during the years involved he earned his livelihood dealing in a prohibited substance although it is illegal to do so.
Advise him of his position regarding those assessments.

Indicate whether Paid-in Capital in Excess of Par is a debit or credit account and whether it is closed or not closed each period.

Select one:

a. Debit, closed

b. Debit, not closed

c. Credit, closed

d. Credit, not closed

The coupon (stated) rate of interest is used to determine:

Select one:

a. The discount or premium recorded when the bond is issued.

b. The amount of cash interest the bond issuer pays to the investor on the interest payment dates.

c. The amount of principal due at the maturity date of the bond.

d. The rate investors demand for loaning funds to the corporation.

Which accounts are debit accounts?

Select one:

a. Premium on Bonds Payable, but not Discount on Bonds Payable

b. Discount on Bonds Payable, but not Premium on Bonds Payable

c. Both Discount and Premium on Bonds Payable

d. Neither Discount nor Premium on Bonds Payable

2. From a sample of size 250, number of females is 173. What is the point estimate of population proportion? Provide an answer with 3 decimal points.

3. Which one is the point estimate of population mean? a. sample mean b. sample proportion c. sample median d. sample maximum

4. A survey of 1,206 people asked: “What would you do with an unexpected tax refund?” Forty-seven percent responded that they would pay off debts (Vanity Fair, June 2010). if the population size is 5000, then write down the upper bound of 95% confidence interval of the population proportion.

5. An article in the National Geographic News (“U.S. Racking Up Huge Sleep Debt,” February 24, 2005) argues that Americans are increasingly skimping on their sleep. A researcher in a small Midwestern town wants to estimate the mean weekday sleep time of its adult residents. He takes a random sample of 80 adult residents and records their weekday mean sleep time as 6.4 hours. Assume that the population standard deviation is fairly stable at 1.8 hours. Write down the upper bound of 95% confidence interval.

Trillium Ltd, a small and growing innovative start-up technology company traded on the Toronto Stock Exchange, leased machinery on January 1, 2020 for a term of 10 years. The Company considered purchasing the machinery but instead opted to lease. The machinery is widely known to have a general life span of about 20 years.

At the date of signing the lease contract, the leased machinery and associated lease obligation were correctly recorded at $42,000. The first lease payment of $6,000 was made on December 31, 2020 and the interest rate inherent in the lease contract is 7%.

At the start of the year, the Company had a cash and retained earnings balance of $100,000. Assume the above was the only transaction in the year.

The Company has a December 31 year-end.

Required:

1. For the year-ended December 1, 2020, prepare the relevant parts of the following financial statements:

1. Statement of Financial Position
2. Statement of Profit or Loss

2. Explain, with support, two of the most likely reasons why this specific Company opted to lease the machinery rather than purchase it.

3. Explain how the lease will affect Earnings-before-Interest-Taxes-Depreciation (EBITDA).

4. Explain how the debt-to-equity ratio would be affected if the Company choose to borrow funds from a bank to purchase the machinery rather than leasing it. Be specific.