1. Fun Toys Co. reported a per-share book value of $3.5, earnings per share (EPS)

of $2.3, and dividend per share (DPS) of 0.85 in its balance sheet on

December 31, 2010. In early 2011 analysts made the following forecasts for 2011~2015: EPS growth rate is 4.5%, and DPS growth rate is 2%. The required return for equity is 8.5% percent.

Case 1: If the residual earnings are zero after 2015, calculate the value per share at the end of 2010.

Case 2: If the residual earnings are at 2015 level for 2016 and beyond, calculate the continuing value at the end of 2015 and value per share at the end of 2010.

Case 3. If the residual earnings will grow at 4% per year for 2016 and beyond, calculate the continuing value at the end of 2015 and value per share at the end of 2010.

During 2010, Salem Company spent $1,360,000 in research and development costs. As a result of its R&D activities, Salem patented a new product on September 30, 2010. On September 30, 2010, Salem incurred and paid $42,000 of legal costs related to its new patent. The patent had a five-year legal life. Salem only prepares adjusting journal entries once each year as of 12-31 (year-end).

1. Prepare the entries Salem made in 2010 related to the R&D activities and the patent.
2. Prepare the entries Salem made in 2011 and 2012 related to the patent.
3. On September 1, 2013, Salem spent $12,000 to defend its patent rights. Salem’s defense was successful, protecting the patent’s remaining legal life. Prepare the entries Salem made in 2013 related to the patent

During 2012 the company discovered the following accounting errors 1- the machine has been mistakenly depreciated based on 5 years instead of 6 years. In July 1 2009, XYZ corporation Acquired an equipment on July 1 2009 at cost of $16000 the estimated useful life for the machine 6 years and the residual value $1000. Company use SLM for depreciation. 2- Ending inventory for year 2009 was overstated by $ 1800 3- Ending inventory for year 2010 was understated by $2000 Company subject to income tax rate 40%. Show the dollar amount of the combined effect, if any, and the nature of the effect (overstatement or understatement or correct) of these accounting errors on the reporting value of the following financial statement items as in the following table:

F S items the combined impact on reporting value of FS items NI 2009 Total Assets Dec. 31 2010 Owners Equity Dec. 31 2010 Total Liabilities

Question 7 (20 minutes) (AR and AFDA)
Gauthier Services uses the percentage of accounts receivable method for estimating bad debts, and concludes at the end of the fiscal year that 1.5 % of accounts receivable will become uncollectible. Sales are $776,500 for the fiscal year ending December 31, 2010 and sales returns and allowances amounted to $20,800. All sales were on account and the balance of accounts receivable at December 31, 2010 was $185,000 and the allowance for doubtful accounts, before any year-end adjustments, had a debit balance of $449.   

Instructions

a) Prepare any required adjusting journal entry at December 31, 2010

b) Assume now that the percentage of sales method is used instead of the percentage of accounts receivable basis and that ½ of 1 % of net credit sales are estimated as being uncollectible. Also assume that the allowance for doubtful accounts has a debit balance of $650. Prepare any required adjusting journal entry at December 31, 2010.

c) Show how net accounts receivable would be reported on the balance sheet after recording the adjusting journal entry at December 31, 2010, under the assumption (b) above.

I’ve got a three part question:

(a) As a response to the recent COVID-19 outbreak, the Commonwealth Government put in place lockdown restrictions. Using the dynamic AD-AS framework, analyse and demonstrate the impact of the COVID-19 pandemic on the level of output (or real GDP), unemployment, and inflation.

(b) In response to the COVID-19 pandemic, in March 2020 the Commonwealth Government announced a fiscal stimulus which included income support for workers and businesses hit by the pandemic. Using the same dynamic AD-AS framework used in part (a), explain and illustrate the effect of the fiscal stimulus on the level of output (or real GDP), unemployment, and inflation.

(c) Using the same dynamic AD-AS framework used in part (b), show what the impact of the fiscal stimulus would have been if Australia had no interactions in trade or finance with other economies (i.e. if Australia was a closed economy).

Differential Geometry

Open & Closed Sets, Continuity

(1) Prove (2,4) is open

(2) Prove [2,4) is not open

(3) Prove [2,4] is closed

Backwoods American, Inc., produces expensive water-repellent, down-lined parkas. The co. implemented a TQM program in 2005. Following are the quality-related accounting data that have been accumulated for the 5-year period after the program's start.

• List some examples of each quality-related costs - i.e., of prevention, appraisal, and internal and external failure costs - that might result from the production of the parkas.
• The BA Inc produces 20,000 parkas annually. The quality management program implemented improved average percentage of good parkas produced by 2% each year beginning with 83% good quality parkas in 2005. Only 20% of poor quality parkas can be reworked (and made good). Compute the product yield for each of the 5 years.
• Assuming a rework cost of $12/parka, determine the manufacturing cost per good parka for each of the 5 years. What do these results imply about the co's quality management program?

Question 10 (1 point)

Which of the following statements is true about productivity growth?

Question 11 (1 point)

Which of the following statements is true?

Question 12 (1 point)

Which of the following statements is true?

The following macroeconomic data corresponds to a closed economy (all values are in € billion):

Private Consumption 35,000
Public Spending 12,500
Taxes 10,000
Gross Domestic Product 50,000
Moreover, the investment function is estimated to be the following: I=4,500 -200r

1) Write down the GDP identity [Y=C+I+G] stating the value in € of each component. Explain your answer.

2) Calculate Total Savings, Total Investment, Private Savings, Public Savings and the equilibrium interest rate.

3) Suppose that the government increases its level of expenditure to 14,000. What happens to private savings, public savings and total savings? Which new values do they take? What are the new equilibrium values for investment and the interest rate? Explain your answer and comment on the results