Pro forma income statement   The marketing department of Metroline Manufacturing estimates that its sales in 2020 will be $1.63 million. Interest expense is expected to remain unchanged at $32,000​,and the firm plans to pay $72,000 in cash dividends during 2020.

Metroline​ Manufacturing's income statement for the year ended December​ 31, 2019​, is given​, along with a breakdown of the​ firm's cost of goods sold and operating expenses into their fixed and variable components.

a. Use the ​percent-of-sales method to prepare a pro forma income statement for the year ended December​ 31,2020.

b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December​ 31,2020.

c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of 2020 ​income? Explain why.

Before the audit report was signed, the audit team encountered the following situation. Treat each situation independently and assume the remaining financial statements are fine.

1) A property owned by Cook’s Furniture Ltd was sold to Lidia Preston, the wife of Howard Cook in June 2020. The property has a market value of four million and was sold at 3.2 million. Management did not disclose this in the financial statement because they believed this was a private matter. The disposal of this asset has been appropriately accounted for on the financial statements (e.g. the asset was removed from PPE and the loss of disposal was correctly recognised as an expense).

2) The subsequent selling price of the ready-made furniture range suggests the inventory valuation as at 30 June 2020 should be written down by $48,000 but management only wrote $38,000 off as per the financial statements because they were confident that they can increase the selling price again in 2021 after people settling back to normality.

3) Carl Cook decided to retire in 2021 due to health reasons, Carl is willing to sell his shareholding to the remaining shareholders. However, the BoD decided to explore the potential of selling the business. By the time to sign the 2020 financial statements, the company has not commenced a negotiation with any potential buyer. The BoD said to the auditor that they may not sell the business if they cannot get a good deal. Carl’s retirement decision is disclosed on the financial statements, but not the intention to sell the business.

REQUIRED: For each of the above situation:

a) Discuss the audit procedure that the auditor needs to perform in relation to each situation.

b) Explain which audit opinion is appropriate for each situation.

1. Kiley Company had a $700 credit balance in Allowance for Doubtful Accounts (What is normal balance for the contra asset?( Debit or Credit?) at December 31, 2020, before the current year's provision for uncollectible accounts. An aging of the accounts receivable revealed the following:

Instructions

1. Calculate the balance for the Allowance for Doubtful Accounts.
2. Prepare the adjusting entry on December 31, 2020, to recognize bad debts expense.
3. Calculate the net realizable value after your adjusting entry for December 31, 2020.

1. STROUP Supply Co. has the following transactions related to notes receivable during the last month of 2019.

Dec. 16 Received a $4,000, 6 month, 9% note in exchange for Weinberg’s outstanding accounts receivable.

Dec. 31 Accrued interest revenue on all notes receivable.

1. Prepare the two journal entries required for the transactions for Stroup Supply Co.

CSCE 1030: Lab 7 General Guidelines: (for ALL of your programming assignments and labs)  Use meaningful variable names.  Use appropriate indentation.  Use comments, especially for the header, variables, and blocks of code. Please make sure that your submitted code has comments as points may be deducted for a lack of comments. Example Header: /* Author: Jane Doe ([email protected]) Date: Instructor: Description: A small description in your own words that describe what the program does. Any additional flags needed to allow the program to compile should also be placed here. */ Example Function Header: /* Function: Deposit Parameters: a double representing account balance and a double representing the deposit amount Return: a double representing account balance after the deposit Description: This function computes the account balance after a deposit. */ A. Working with Functions Declare and define a function that computes bonus for an employee depending on the base salary and the number of years of experience of the employee. Inside the function, check the number of experience. If the number of experience is greater than 15 years, the bonus is 5% of the base salary, otherwise it is 2.5% of the base salary. You will need to call this function from your main function and pass the base salary and the number of years as parameters/arguments. Start with the following template to write you program. 2 Now, modify the above program, referring to the comments included in the code. Complete the requested changes, and then save the file as Lab7A.cpp, making sure it compiles and works as expected. Note that you will submit this file to Canvas. B. Function calling another function You have already seen a function that has called another function, but you may not have paid close attention to it. In order to call a programmer-defined function inside another programmer-defined function, you need to have the declaration of the function that is being called before the declaration of the calling function. In this program you will write a function of void return type named compare that accepts an integer parameter named guess. This function will compare the value of guess with a seeded randomly generated integer between 1 to 100, inclusive, and let the user know what the random number was as well as whether the guess was larger than, smaller than or equal to the random number. NOTE THAT: You will NOT generate a random number inside the compare function. Rather, you will write another function named getRandom of int return type to do it. You will need to call getRandom from compare, no parameters are necessary. Inside your main function, get the guess from user and pass it to the compare function. 3 Start with the following template to write your code. Complete the requested changes, and then save the file as Lab7B.cpp, making sure it compiles and works as expected. Note that you will submit this file to Canvas. C. A function with Boolean return type Write a programmer defined function that compares the ASCII sum of two strings. To compute the ASCII sum, you need to compute the ASCII value of each character of the string and sum them up in a loop of your choice by processing one character at time. You will thus need to calculate two sums, one for each string. Then, return true if the first string has a larger ASCII sum compared to the second string, otherwise return false. In your main function, prompt the user to enter two strings with a suitable message and provide the strings to the function during function call. The user may enter multiple words for either string. Then, use the Boolean data returned by the function to inform which string has the higher ASCII sum. Use the following template to write your code. 4 Complete the requested changes, and then save the file as Lab7C.cpp, making sure it compiles and works as expected. Note that you will submit this file to Canvas. Now that you have completed this lab, it’s time to turn in your results. Once you've moved the files to your windows machine (using winscp), you may use the browser to submit them to Canvas for the Lab7 dropbox. You should submit the following files:  Lab7A.cpp  Lab7B.cpp  Lab7C.cpp Ask your TA to check your results before submission. The above three files MUST be submitted to Canvas by the end of your lab section. Now that you've finished the lab, use any additional time to practice writing simple programs out of the textbook, lectures, or even ones you come up with on your own to gain some more experience.

Waterway Services Ltd. follows ASPE and had earned accounting income before taxes of $518,000 for the year ended December 31, 2020.

During 2020, Waterway paid $80,000 for meals and entertainment expenses.

In 2017, Waterway’s tax accountant made a mistake when preparing the company’s income tax return. In 2020, Waterway paid $9,700 in penalties related to this error. These penalties were not deductible for tax purposes.

Waterway owned a warehouse building for which it had no current use, so the company chose to use the building as a rental property. At the beginning of 2020, Waterway rented the building to Trung Inc. for two years at $56,000 per year. Trung paid the entire two years’ rent in advance.

Waterway used the straight-line depreciation method for accounting purposes and recorded depreciation expense of $311,600. For tax purposes, Waterway claimed the maximum capital cost allowance of $465,300. This asset had been purchased at the beginning of the year for $3,069,000.

In 2020, Waterway began selling its products with a two-year warranty against manufacturing defects. In 2020, Waterway accrued $294,000 of warranty expenses: actual expenditures for 2020 were $90,600 with the remaining $203,400 anticipated in 2021.

In 2020, Waterway was subject to a 25% income tax rate. During the year, the federal government announced that tax rates would be decreased to 23% for all future years beginning January 1, 2021.

Prepare the journal entries to record current and future income taxes for 2020

Interpreting the Accounts receivable Footnote
Hewlett-Packard Company (HPQ) reports the following in its 2010 10-K report.

HPQ footnotes to its 10-K provide the following additional information relating to its allowance for doubtful accounts.

(a) What is the gross amount of accounts receivables for HPQ in fiscal 2010 and 2009?

(b)What is the percentage of the allowance for doubtful accounts to gross accounts receivable for 2010 and 2009? (Round your answers to two decimal places.)

(c)What amount of bad debts expense did HPQ report each year 2008 through 2010? What amount was actually written off?

Which of the following statements describes how bad debts expense compares with the amounts of its accounts receivable actually written off?

Generally, HP has overestimated its accruals, which has inflated profit by the over-accrual of bad debts.

Generally, HP has underestimated its accruals, which has inflated profit by the under-accrual of bad debts.

The difference between bad debt expense and write-off during the three years is small, so it appears they are accurately accruing for anticipated credit losses.

The difference between bad debt expense and write-off during the three years has inflated HPQ's cash flows reported.

(d)Compute HPQ's write-offs as a percentage of the allowance account at the beginning of the year (Round your answers to two decimal places).
2010 write-offs as a percentage of beginning of year allowance: Answer%
2009 write-offs as a percentage of beginning of year allowance: Answer%
What inferences can we draw as a result of changes in the allowance for doubtful accounts from 2009 to 2010?

The allowance for uncollectible accounts has decreased as a percentage of gross accounts receivable in 2010. We can , therefore, expect write-offs to increase.

The allowance for uncollectible accounts has decreased as a percentage of gross accounts receivable in 2010. This means that HPQ is over-stating its bad debt expense in the current year.

HPQ's write-offs as a percentage of the allowance decreased from 2009-2010. The reduction in write-off is reflected in their income statement as a corresponding reduction of bad debt expense and an increase in profit.

HPQ's write-offs as a percentage of the allowance decreased from 2009-2010. By this measure it appears that HPQ is accurately accruing for anticipated credit losses.

A track coach claims that their new month long training program will reduce your mile time by 1 minute. You want to statistically test if the training program reduces your mile time by something other than 1 minute. You decide to randomly select 8 people and record their mile times. You then have them follow the coach’s training program for a month and record their mile times post training program. The times of the subjects are listed below. 1 Stat 301 Spring 2020 April 17, 2020 Subject Mile Time Before Training Mile Time After Training 1 9.5 vs 9 2 7 vs 7.1 3 6.7 vs 5.2 4 8.45 vs 6.8 5 6.2 vs 6.2 6 6.3 vs 8 7 7 vs 5.5 8 9 vs 7.3

(a) What type of test is appropriate for this experiment set up?

(b) State the appropriate hypotheses.

(c) How many degrees of freedom are involved in this test?

(d) Perform a test of the hypotheses from (a) using a significance level of 5%. Make sure to compute the test statistic and P-value, and make a conclusion in context.

Marvelly company manufactures and sells dolls. The company plans to manufacture and sell 80,000 units of the dolls for $4,000,000 in 2020 with the following information: The cost for each doll consists of direct material $15, direct labour $10, and variable manufacturing overhead $5. The salaries of the factory manager and supervisors are estimated at $300,000 per annum, depreciation of machinery, factory equipment, and buildings is budgeted at $250,000 per year, and the rental of factory building is $200,000 per year.

On December 31, 2018, Isiah Company, a financing institution lent P4,000,000 to Psalms Corp. due 3 years after. The loan is supported by an 8% note receivable. Transaction costs incurred to originate the loan amounted to P248,000. P374,000 was chargeable to Psalms as origination fees. Interests on the loan are collectible at the end of each year. The yield rate on the loan is 9.25%.

Isiah was able to collect interest as it became due at the end of 2019. During 2020, however, due to Psalms Corporation’s business deterioration and due to political instability and faltering global economy, the company was not able to collect amounts due at the end 2020. After reviewing all available evidence at December 31, 2020, Isiah Company determined that it was probable that Psalms would pay back only P3,400,000 collectible as follows:

As of December 31, 2020, the prevailing rate of interest for all debt instruments is 14%.

Questions: 1-A.

1. What is the impairment loss to be recognized in the 2020 statement of comprehensive income? .

2. What is the correct carrying value of the loans receivable as of December 31, 2022?

write your solution and explanation, please. thanks.