The following condensed income statements of the Jackson Holdings company are presented for the two years ended December 31, 2021 and 2020.
2021 2020
Sales Revenue $15,900,00 $10,500,000
Cost of goods sold 9,650,000 6,450,000
Gross profit 6,250,000 4,050,000
Operating expenses 3,560,000 2,960,000
operating income 2,690,000 1,090,000
gains on sale of divison 690,000 -
3,380,000 1,090,000
Income tax expenses 845,000 272,500
Net income 2,535,000 817,500
On October 15, 2021 Jackson entered into a tentative agreement to seel all the assets of one of its divisons. the divison qualifies as a component of an entity as defined by GAAP. the division was sold on december 31, 2021 for $5,270,000. Book value of the divisions assets was $4,580,000. The division's contribution to Jackson's operating income before-tax for each year was as follows:
2021 $445,000
2020 $345,000
Assume an income tax rate of 25%
Required
1. Prepare revised income statements according to GAAP, beginning with income from continuing operations before income taxes, Ignore EPS disclosures.
2. Asume that by december 31,2021 the divions had not yet been sold but was considered held for sale. The fair value of the divisons assets on december 31 was $5,270,000. prepare revised income statements accoring to GAAP, beginning with income from continuing operations before income taxes. ignore EPS disclosures.
3. Assume that by december 3, 2021, the division had not yet been sold but was considered held for sale. The fair value of the divisions asets on December 31 was $3,990,000. Prepare revised income statements according to GAAP, beginning with income from continuing operations before income taxes, ignore EPS disclosures.
In: Accounting
The following condensed income statements of the Jackson Holdings company are presented for the two years ended December 31, 2021 and 2020.
2021 2020
Sales Revenue $15,900,00 $10,500,000
Cost of goods sold 9,650,000 6,450,000
Gross profit 6,250,000 4,050,000
Operating expenses 3,560,000 2,960,000
operating income 2,690,000 1,090,000
gains on sale of divison 690,000 -
3,380,000 1,090,000
Income tax expenses 845,000 272,500
Net income 2,535,000 817,500
On October 15, 2021 Jackson entered into a tentative agreement to seel all the assets of one of its divisons. the divison qualifies as a component of an entity as defined by GAAP. the division was sold on december 31, 2021 for $5,270,000. Book value of the divisions assets was $4,580,000. The division's contribution to Jackson's operating income before-tax for each year was as follows:
2021 $445,000
2020 $345,000
Assume an income tax rate of 25%
Required
1. Prepare revised income statements according to GAAP, beginning with income from continuing operations before income taxes, Ignore EPS disclosures.
2. Asume that by december 31,2021 the divions had not yet been sold but was considered held for sale. The fair value of the divisons assets on december 31 was $5,270,000. prepare revised income statements accoring to GAAP, beginning with income from continuing operations before income taxes. ignore EPS disclosures.
3. Assume that by december 3, 2021, the division had not yet been sold but was considered held for sale. The fair value of the divisions asets on December 31 was $3,990,000. Prepare revised income statements according to GAAP, beginning with income from continuing operations before income taxes, ignore EPS disclosures.
In: Accounting
3. Review and discuss the collapse of the Futures Oil Market, which fell into the negative realm in May 2020.
What were the main reasons for this fall into the negative realm? Critically discuss
After May 2020, what are the prospects of futures contracts as a significant risk management tool for firms? Discuss critically.
Please state references and use APA Citation latest version
In: Finance
A rich aunt has promised you $3,000 one year from today. In addition, each year after that, she has promised you a payment (on the anniversary of the last payment) that is 2% larger than the last payment. She will continue to show this generosity for 2020 years, giving a total of 2020 payments. If the interest rate is 4%, what is her promise worth today?
In: Finance
A company takes a short position in 10 futures contracts on soybean on October 2, 2020. The initial futures price is $10.175 per bushel. Suppose on December 31, 2020 the futures price is $10.02 per bushel. On March 20, 2021 it is $9.89 per bushel. The contracts are closed out on March 20, 2021. What gain is recognized (taxable) in the accounting year January 1 to December 31, 2021 if the company is classified as a hedger? Each contract is on 5,000 bushels of soybean.
| A. |
$7,750 |
|
| B. |
$6,500 |
|
| C. |
$14,250 |
|
| D. |
$50,875 |
A company takes a long position in 5 futures contracts on soybean on October 2, 2020. The initial futures price is $10.19 per bushel. Suppose on December 31, 2020 the futures price is $10.25 per bushel. On March 20, 2021 it is $10.42 per bushel. The contracts are closed out on March 20, 2021. What gain is recognized (taxable) in the accounting year January 1 to December 31, 2021 if the company is classified as a speculator? Each contract is on 5,000 bushels of soybean.
| A. |
$5,750 |
|
| B. |
$4,250 |
|
| C. |
$1,500 |
|
| D. |
$50,950 |
Luby’s Inc. has derivatives transactions with four different counterparties A, B, C, D which are worth $8 million, -$17 million, $20 million and -$32 million, respectively to Lucy’s. The transactions are cleared centrally through the same CCP and the CCP requires a total initial margin of $10 million. How much margin or collateral does Luby’s have to provide?
| A. |
49 million |
|
| B. |
21 million |
|
| C. |
31 million |
|
| D. |
38 million |
Suppose a trader who owns 320,000 pounds of commodity A decides to hedge the value of her position with the futures contracts. One futures contract is for the delivery of 40,000 pounds of commodity B. The price of commodity A is $21.20 and the futures price is 18.30 (both dollars per pound). The correlation between the futures price and the price of commodity A is 0.92. The volatilities of commodity A and the futures are 0.31 and 0.38 per year, respectively. What is the minimum variance hedge ratio?
| A. |
0.82 |
|
| B. |
1.23 |
|
| C. |
1.13 |
|
| D. |
0.75 |
Suppose a trader who owns 320,000 pounds of commodity A decides to hedge the value of her position with the futures contracts. One futures contract is for the delivery of 40,000 pounds of commodity B. The price of commodity A is $21.20 and the futures price is 18.30 (both dollars per pound). The correlation between the futures price and the price of commodity A is 0.92. The volatilities of commodity A and the futures are 0.31 and 0.38 per year, respectively. Should the trader take a long or short futures position?
| A. |
Long |
|
| B. |
Short |
In: Finance
On January 1, 2020, LMB, Inc. purchased some equipment for $42,000. In order to prepare the equipment for use, LMB had to pay $8,000 to have the equipment installed. LMB aos estimates that the equipment will be used for 5 years and that it can be sold to a smaller company for parts after 5 years. It expects to sell the parts for $5,000. LMB will use the equipment for 5 years but also estimates that it will produce 10,000 units in total during that time.
LMB's units of production were as follows:
2020: 2,000 units
2021: 4,000 units
2022: 2,000 units
2023: 1,500 units
2024: 500 units
Using the Units of Production method, calculate depreciation expense for the year ended December 31, 2020 (first blank) and for the year ended December 31, 2021 (second blank).
In the third blank, fill in the total accumulated depreciation after the 2nd year (12/31/2020).
In the fourth blank, fill in the net book value of the equipment on 12/31/2021.
Question 11 options:
| Blank # 1 | |
| Blank # 2 | |
| Blank # 3 | |
| Blank # 4 |
In: Accounting
Beyond starting and running new businesses, entrepreneurs are change agents who transform innovation into reality. Apple Inc. is known as one of the world's most innovative companies, and it co-founder Steve jobs was credited with Apple's most important breakthrough innovations. Steve Jobs also founded Pixar, one of the most successful film studios of all time. He was clearly an entrepreneur extraordinaire, and created continuous innovation in his quest to create value through new products or services. Jeff Bezos, and Elon Musk are also entrepreneurs that stand out as examples of successful entrepreneurs. Discuss the traits and behaviors of these entrepreneurs that might have contributed to the outstanding record of innovation in the companies they led. What are the major differences in how these individuals have approached entrepreneurship? How have those differences impacted the organizations they have founded?
In: Operations Management
For your company Uber:
(Please answer step by step) (Dont copy/paste information please)
In: Operations Management
For your company Amazon:
(Please answer step by step) (Dont copy/paste information please)
In: Operations Management
Let x be the number of years after 2007 and y represent the number of students enrolled at WWCC. Answer the following
given the data that enrollment was 2055 in the year 2007, 2244 in 2008, 2512 in 2009, and 2715 in 2010.
(a) Find the least-squares line for the data using Excel and submit your file in Canvas.
(b) Using partial derivatives, verify the formula you obtained in Excel.
(c) Find the least-squares error E.
In: Math