2. A small business takes out a $100,000 loan on April 1, 2020. The loan interest rate is j4 = 6%. They are to repay the loan with quarterly payments of $4,000 for 5 years (first payment on July 1, 2020), followed by n quarterly payments of 5,000 for as long as necessary. Determine the total number of loan payments made and both the amount and calendar date of the smaller final payment made one quarter after the last 5,000 payment.

Below is the leasing footnote disclouse from UPS 2015 10-K report:

The following table sets for the aggregate minimum lease payments under operating leases (in millions): The implicit interest rate is 7%

Year Operating LEase

2016 $324

2017 $263

2018 $197

2019 $125

2020 $84

After 2020 $252

What adjustments would be made to UPS's Balance Sheet to capitalize the operating leases at the end of 2015?

IP A soccer ball is kicked with an initial speed of 10.8 m/s in a direction 26.0 ∘ above the horizontal.

a) Find the magnitude of its velocity 0.250 s after being kicked.

b) Find the direction of its velocity 0.250 s after being kicked.

c) Find the magnitude of its velocity 0.500 s after being kicked.

d) Find the direction of its velocity 0.500 s after being kicked.

e) Is the ball at its greatest height before or after 0.500 s ? before or after

Assignment

You are a consultant, external to this firm. Create two years (2020 and 2021) of pro forma income statements and balance sheets and the statement of cash flows, including operating, investing and financing sections for 2020 only.

Techno Corporation

Techno Corp

Income Statement

Actual results 2019 for 12 months ending December 31, 2019

Techno Corp

Balance Sheet

December 31, 2019

Techno Corporation Paper

Techno Corporation is developing its pro forma financial statement forecasts for 2020 and 2021. Its actual results for 2019 are shown in the income statement and balance sheet.

Background

• The relationship between cost of goods sold and sales revenue Is expected to continue in the near term and no inflation is expected.
• Operating expenses include $200,000 in depreciation (fixed expense), the remainder is variable costs tied to sales revenue.
• Fixed assets are adequate to support sales growth for the next two years and long=term debt will decline $200,000 per year.
• Dividend policy calls for 40% of net profits after taxes to be paid before yearend.
• Interest is 10% of long-term debt and notes payable
• Inventory needs to grow at half the rate of sales growth and accounts receivable maintains the same relationship to sales as was the case on December 31, 2019 for 2019 sales. Accounts payable maintains the same relationship to cost of good sold as of December 31, 2019 for 2019 sales.
• Any cash over $500,000 is put in marketable securities, Interest income is negligible
• Other current liabilities are stable.
• Taxes payable are equal to one-half of the current year’s taxes.
• Assume sales will increase 10% per year for each of the next two years.

A Question of Ethics

You are enjoying your job as a summer intern in the IT department of a local company. At lunch yesterday, several people were discussing ethical issues. You learned that some of them belong to IT organizations that have ethical codes to guide members and set professional standards. For example, Ann, your supervisor, belongs to the Association for Computing Machinery (ACM), which has over 100,000 members from more than 100 countries and a website at acm.org. Ann said that the ACM code of ethics is important to her, and would definitely influence her views. On the other hand, Jack, a senior programmer, believes that his own personal standards would be sufficient to guide him if ethical questions were to arise.

Because you are excited about your career as an IT professional, you decide to visit ACM’s website to examine the code of ethics and make up your own mind. After you do so, would you tend to agree more with Ann or with Jack? Why?

Company A has a market value of equity of $2,000 million and 80 million shares outstanding. Company B has a market value of equity of $400 million and 25 million shares outstanding. Company A announces at the beginning of 2019 that is going to acquire Company B.

The projected pre-tax gains in operating income (in millions of $) from the merger are:

The projected pre-tax gains in operating income are expected to grow at 4% after year 2023. The company is using a discount rate of 8% to value the synergies. The marginal corporate tax rate is 35%.

Company A has decided to pay a $300 million premium for Company B. Assume that capital markets are efficient and that there is a 100% probability the deal will be closed.

1/ By how much the price per share of Company A would change at the time of the announcement of the acquisition?

2/ If Company A were to make a 100% stock offer for Company B, what would the exchange ratio be? Remember that the exchange ratio is the number of Company A’s shares that the shareholders of Company B will receive in exchange for each of their shares.

3/ If Company A were to offer 0.80 share of Company A for each share of company B, by how much the price per share of Company A would change at the time of the announcement of the acquisition?

Consider the program and data that follows, reflecting paired data:

PROC FORMAT;
VALUE $OPINION 'P'='Positive'
'N'='Negative';
RUN;

DATA A;
LENGTH AFTER BEFORE $ 1;
INPUT AFTER $ BEFORE $ COUNT;
FORMAT BEFORE AFTER $OPINION.;
DATALINES;
N N 26
N P 38
P N 18
P P 159
;

Add to this SAS code to identify the appropriate p value for evaluating whether a significant change occurred from baseline to follow-up?

​​​​​​​

1. 0.0075
2. < 0.0001
3. 0.0382
4. 0.3383

Hornet plc acquired 60% of the equity share capital of Alton on 1 January 2009 for a cash consideration of $ 4.5 M. The fair value of net assets of Alton at this date was $6 and full goodwill method is used. During 2009 until 31 December 2009 Alton made a net income of $2. On 1 January 2010, Hornet acquired an additional 30% of equity of Alton for $ 2M. On 1 January 2010, identifiable net assets of Alton were included in the consolidated statement of financial position at $ 8M.

Use the above to answer the following

Solve the question in details as we took in class and then answer the questions

1. What is the goodwill recognized on 1 January 2009?

2. What is the worksheet journal entry to record the effect of the 30% additional purchase of shares on 1 January 2010?

3. What is the value of goodwill following the purchase of the additional 30% shares on 1 January 2010?

4. What is the amount of gain or loss recognized following the purchase of the additional 30% shares on 1 January 2010 and why?

Question 1

An economy produces and consumes four goods namely milo, rice, bread and sobolo. The prices and quantities of these goods over a three-year period are shown in the table below.

Table I: Prices and quantities of milo, rice, bread and sobolo goods over a 3-year period

1. Calculate nominal GDP in 2017, 2018 and 2019.                                                  
2. Using 2017 as your base year, calculate real GDP in 2017, 2018 and 2019.       
3. Calculate the percentage changes in real and nominal GDP:
   1. between 2017 and 2018                                                                                 
   2. between 2018 and 2019                                                                                 
4. Calculate the GDP deflator for 2017, 2018 and 2019.                                           

Question 2

1. Before computing the Consumer Price Index (CPI), the Ghana Statistical Service (GSS) surveys consumers to determine the “basket of goods” bought by a typical consumer. Assume that the GSS chooses 2018 as its base year and, consistent with the data shown in the Table I in Q.1 decides that the basket of goods in this economy should consist of 24 tins of milo, 16 bags of rice, 30 loaves of bread and 15 bottles of sobolo.

1. Calculate the inflation rate between 2018 and 2019.                               
2. Determine the purchasing power of the Ghana cedi in 2019 and interpret your answer.

b) In the mid-1920s, the American author F. Scott Fitzgerald wrote a somewhat comical article for the Saturday Evening Post magazine titled, “How to Live on $36,000 a Year”, in which he explained how he and his wife managed to spend their entire annual income of $36,000 without saving anything.

1. In the mid-1920s, the consumer price index was around 18; in 2010, the CPI was around 225. Using these figures, calculate how much Fitzgerald’s income would be worth in 2010’s dollars.                                                                                                                    

In 2010, Forbes magazine published a list of the highest-paid authors, showing that J. K. Rowling, author of the Harry Potter books, earned $10 million. After adjusting for the effects of inflation, who earned more: Fitzgerald or Rowling?          

Recording Revenue Under Different Repurchase Agreements

On January 1, 2020, Miller Inc. sells equipment to Smith Inc. for $132,000. As stipulated in the revenue contract, Miller Inc. will buy back the equipment on December 31, 2020, for $141,240. The relevant interest rate is 7%

a. Prepare the seller’s journal entry on January 1, 2020.

b. Prepare the seller’s journal entry on December 31, 2020.

c. Assume instead that Miller has the option to buy back the equipment and the fair value of the equipment is expected to
decline through 2020. How would the answers to parts a and b change (if at all)?

d. Assume instead that Smith has the option to require Miller to buy back the equipment after one year for $141,240 (an amount greater than
the expected market value of the equipment at that time). How would the answers to parts a and b change (if at all)?