Consider each of the following independent and material situations, identified below (i-v). In each case: • the balance date is 30 June 2020; • the field work was completed on 12 August 2020; • the Directors’ Declaration and the Audit report were signed on 19 August 2020; • the completed financial report accompanied by the signed Audit report was mailed to the shareholders on 25 August 2020. (i) On 29 September 2020, you discovered that a debtor at 30 June 2020 had gone bankrupt on 1 September 2020. The debt had appeared collectible at 30 June 2020 and 19 August 2020. (ii) On 12 August 2020, you discovered that a debtor had gone bankrupt on 1 August 2020. The sale took place on 15 July 2020. The cause of the bankruptcy was a major uninsured fire at one of the debtor’s premises on 1 July 2020. (iii) On 13 August 2020, you discovered that a debtor at 30 June 2020 had gone bankrupt on 5 August 2020. The cause of the bankruptcy was an unexpected loss of a major lawsuit issued against the debtor on 10 June 2020. (iv) On 20 August 2020, the company settled a legal action out of court that had originated in 2016 and was listed as a contingent liability at 30 June 2020. (v) On 1 September, you found a letter dated 15 August with a $2 million fine from Environmental Protection Agency. The letter stated that company had illegally dumped chemicals on 15 May 2020. Required: 1. For each of the events described above (i-v), select the appropriate action from the list below, and justify your response. A. Adjust the 30 June 2020 financial report. B. Disclose the information in the notes to the 30 June 2020 financial report. C. Request that the client recall the 30 June 2020 financial report for revision. D. No action is required. (5*1.5= 7.5 marks) 2. If no action is taken by management for each of the events described above (i-v), determine the most appropriate audit opinion to be issued.

Company TMN has subsidiaries in spain, South Korea , Finland and USA
1)compare the culture of these countries in terms of Hofstede study. Name 4 dimensions and make a comparison based on these 4 dimensions.
2)check the GLOBE study and compare the leadership and CEO styles in thses countries.
3)do you think TMN is culturally diverse company? Why? Why not?

Assume you are a shareholder for a manufacturing company in a small town far from your home. Would you be willing to trade polluting the environment in that one town for an increase in firm profits? Explain for me why or why not. If the CEO of the company decided not to pollute the environment and profits decreased as a result, how should the firm market that decision to you and other stakeholders? What info is needed?

When it comes to the CEO or CFO doing the embezzlement, do you think the company as a whole should be held responsible for those funds and punished as well. If so, how? If not please explain why not, list all the parties affected and how you think it should be handled.

3. A company has calculated their point price elasticity of demand to be -0.8 when they sell 6,000 units a month at a price of $120 per unit.

3. (a) The CEO is planning to implement an aggressive price cut in order to increase the quantity sold and, therefore, the revenue of the company. What would be your feedback on such plan? Justify your answer using the economic intuition behind the concept of price elasticity of demand.

(b) What is the expected percentage change in the monthly quantity of units sold if the company raises the price by 30%? How many monthly units do they expect to sell after this change in price? Calculate price elasticity of demand at the new price and quantity.

(c) What should be the price in order to sell 7,200 units?

(d) The production manager informs the CEO of the company they just discovered a new and cheaper way to produce the good they sell. His advice is to double production because the new procedure halves the cost per unit, so costs will remain unchanged. Should the recommendation be followed? Relate your answer to the concept of elasticity.

Sky Fly, Inc is a fast growing drone manufacturer. The annual rate of return of Sky Fly's stock has been 20% over the past few years. Company managers believe 20% is a good estimate for the firms' cost of capital. Sky Fly's CEO, Dane Cooper, believes the company needs to continue to invest in projects that offer the highest possible returns. Currently, the company is reviewing two separate projects. Project E involves expanding production capacity. Project I involves introducing one of the firms' drones into a new market. The following table shows the projected cash flows for each project.

Discuss

-Calculate the NPV, IRR, and PI for both projects.

-Rank the projects based on their NPV, IRR, and PI.

-The firm can only afford to take on one investment.

-Which project will the CEO likely favor?

-What do you think the company should do?

Explain your answers.

Sky Fly, Inc is a fast growing drone manufacturer. The annual rate of return of Sky Fly's stock has been 20% over the past few years. Company managers believe 20% is a good estimate for the firms' cost of capital. Sky Fly's CEO, Dane Cooper, believes the company needs to continue to invest in projects that offer the highest possible returns. Currently, the company is reviewing two separate projects. Project E involves expanding production capacity. Project I involves introducing one of the firms' drones into a new market. The following table shows the projected cash flows for each project.

Discuss

Calculate the NPV, IRR, and PI for both projects.

Rank the projects based on their NPV, IRR, and PI.

The firm can only afford to take on one investment.

Which project will the CEO likely favor?

What do you think the company should do?

Explain your answers.

Consider

Sky Fly, Inc is a fast growing drone manufacturer. The annual rate of return of Sky Fly's stock has been 20% over the past few years. Company managers believe 20% is a good estimate for the firms' cost of capital. Sky Fly's CEO, Dane Cooper, believes the company needs to continue to invest in projects that offer the highest possible returns. Currently, the company is reviewing two separate projects. Project E involves expanding production capacity. Project I involves introducing one of the firms' drones into a new market. The following table shows the projected cash flows for each project.

Discuss

• Calculate the NPV, IRR, and PI for both projects.
• Rank the projects based on their NPV, IRR, and PI.
• The firm can only afford to take on one investment.
  • Which project will the CEO likely favor?
  • What do you think the company should do?

Explain your answers.

Morris Company has the following capital structure: Common stock, $2 par, 100,000 shares issued and outstanding

On October 1, 2020, the company declared a 5% common stock dividend when the market price of the common stock was $10 per share. The stock dividend will be distributed on October 15, 2020, to stockholders on record on October 10, 2020.

Upon declaration of the stock dividend, Norris Company would record:

Culver Company issues 8,900 shares of restricted stock to its CFO, Mary Tokar, on January 1, 2020. The stock has a fair value of $445,000 on this date. The service period related to this restricted stock is 5 years. Vesting occurs if Tokar stays with the company until December 31, 2024. The par value of the stock is $10. At December 31, 2020, the fair value of the stock is $363,000.

(a) Prepare the journal entries to record the restricted stock on January 1, 2020 (the date of grant), and December 31, 2021.

(b) On July 25, 2024, Tokar leaves the company. Prepare the journal entry to account for this forfeiture.