A beverage company target market includes: local organizations, the island university as well as different universities in the Caribbean region, supermarkets, retail companies and different companies in the region through exportation. Jason is seeking to obtain data to introduce a new Malt beverage to the Market. This data will be obtained through the use of a survey distributed to the Local University students. However, he found these students to be non-cooperative at times and wondered whether the data supplied was fudged.

Question. State:

i) Potential Reasons for Non-corporations from students

ii) Potential Reasons why Jason was left to wonder whether the data supplied was fudged

The company was established with authorized capital 300 000$, of which 200 000$ were in cash, 60 000$ was in Building, 40 000$ was in equipment. The company has employees with salary      15 000$. During the week the company acquired a car for company needs, by the price 20 000$ and paid in cash the full amount. Then it obtained office supplies from Intellect LLC by the price 2000$, but paid 20% in cash. In order to get familiar to the publicity, the company arranged several interviews with one of the channels, and for this cause preliminary rented a room (which included snack and service) in PLAZA, and paid in advance in cash the amount 8000$ for the whole month. The company was supplied with goods from Craft LLC by the price 100 000$, plus freight-in charges in the amount of 3000$. During the check, there were found out that some goods are damaged, and some are provided incorrectly against the invoice. The damaged goods amounting to 6000$ were returned to Craft LLC, and despite of fact that there was incorrectness in provision of some goods, the company considered them still eligible for sale, but claimed allowance for them in the amount of 4000$. Craft LLC agrees and states that if our company makes the payment for the goods in 15 days, it will get an additional 10% discount on the price. Our company makes the payment during the discounting period. During the month company makes sales amounting to 220 000$ to Barnes LLC and send them invoice. During the transportation some of the goods were damaged and Barnes LLC returned to us 6000$ worth of damaged goods that costed 2500$, and paid in cash just            110 000$. Ending inventory at the end of the month was 15 000$. The utility expenses were 500$, commissions to staff were 10 000$. Al the expenses were paid out. Prepare relevant transactions, Balance and Income statement.

At the beginning of 2019, Robotics Inc. acquired a manufacturing facility for $12.7 million. $9.7 million of the purchase price was allocated to the building. Depreciation for 2019 and 2020 was calculated using the straight-line method, a 25-year useful life, and a $1.7 million residual value. In 2021, the estimates of useful life and residual value were changed to 20 total years and $570,000, respectively. What is depreciation on the building for 2021?

At the beginning of 2019, Robotics Inc. acquired a manufacturing facility for $13.0 million. $10.0 million of the purchase price was allocated to the building. Depreciation for 2019 and 2020 was calculated using the straight-line method, a 20-year useful life, and a $2.0 million residual value. In 2021, the estimates of useful life and residual value were changed to 15 total years and $600,000, respectively. What is depreciation on the building for 2021?

Problem 8-3

On October 9, 2020, Steven Company purchased $4,500 of product on account from Bryant Company on with credit terms of 2/15 n/30. The product cost Bryant Company $3,750. The freight terms were F.O.B. shipping point, the cost was $125 and the freight was paid in cash to ABC Trucking Company on Oct 12, 2020.

On October 15, Bryant Company purchased $2,000 of product from Mitchell Company, with credit terms of 3/10, n/60. The product cost Mitchell Company $1,200. The freight terms were F.O.B. destination. the cost was $75 and the freight was paid in cash to ABC Trucking Company on October 16.

On October 17, Steven Company paid for the purchase made on October 9.

On October 30, Bryant Company paid for the purchase made on October 15.

Prepare the journal entries for Steven, Bryant, and Mitchell Companies. Calculate the gross margin on Bryant’s sale to Steven Company and on Mitchell’s sale to Bryant Company.

Case Summary

The SurveyMonkey case portrays the evolution of the company from its founding in 1999 through to 2014. SurveyMonkey was launched by Ryan Finley, a young computer science graduate from the University of Wisconsin-Madison, to address the dearth of easy-to-use, affordable online survey tools on the market. In 2009, Finley sold the company to Spectrum Equity and Bain Capital Ventures, having recognized the need for a partner to help the company achieve its full potential. David Goldberg, an entrepreneur and former Yahoo! Executive, took the helm as CEO and immediately put in place his plan to set the company on track to scale at a consistent and rapid pace of growth. Goldberg’s primary initiatives in the early days were to hire a strong management team, rebuild the entire technology platform, and expand internationally. As it made substantial progress on these fronts, SurveyMonkey completed several acquisitions and began to expand its feature set and product offerings to include SurveyMonkey Audience (panels of survey respondents) and survey templates, among others. The company completed an $800 million secondary financing raise in 2012 to provide liquidity to employees and investors in lieu of an IPO and charged forward on its efforts to transform its survey tool to a full-blown platform. Though SurveyMonkey had established itself as the dominant player in the direct-to-consumer market in 2013, it began building out an enterprise offering to compete against the other large players in the growing enterprise feedback management space. Having achieved tremendous growth in its 15-year history, the majority of which took place since the 2009 acquisition, as Goldberg and his team looked ahead to 2014, they faced the critical question of how to prioritize SurveyMonkey’s avenues for growth-international expansion, quality initiatives enterprise, platform growth-so as to best position the company to achieve its full potential.

Question: How should SurveyMonkey prioritize their avenues for growth-international expansion, quality initiatives enterprise, and platform growth so as to best position the company to achieve its full potential?

Please answer the question in 2-3 paragraphs min.

A US company has ordered watches from Switzerland that will require a payment of Swiss francs (CHF) 500,000 in three months. The expected spot prices to prevail in three months range from $1.00 to $1.12. The following information is available:

Spot rate $1.06/CHF
3-month forward rate $1.07/CHF
Interest rate in US5.00%
Interest rate in Switzerland2.00%
Call option premium$0.040E=$1.06
Put Optionpremium$0.045E=$1.06

1. How can the firm hedge using forward rates? Show the payoffs for the expected spot rates.
2. How can the firm hedge using money market rates? Show the payoffs for the expected spot rates.
3. How can the firm hedge using options. Show the payoffs for the expected spot rates.

Which hedging would you recommend

Shanghai Company sells electronic equipment that it acquires from the US. During the year 2014, the inventory records reflected the following:

At the end of 2014, 45 units are still on hand at the end of year 2014. Shanghai sell its electronic equipment at a fixed price of $100 each. Required:

1. Determine the cost of goods sold and the cost of ending inventory assuming the company uses FIFO.

2. Determine the amount of gross profit that would be reported for the year.

3. Given the price trend shown above, which valuation method (FIFO, LIFO, or Weighted Average) will result in the lowest gross profit?

4. Given the price trend shown above, which valuation method (FIFO, LIFO, or Weighted Average) will result in a better matching of Revenues & Cost of goods sold? Explain.

Adjusting entry

the prepaid insurance account is reported at $800 on the December 31, 2019, unadjusted trial balance. Analysis of the insurance coverage reveals that the company has two policies that were acquired at the same premium :

A- policy A for 3 years was acquired on January 1, 2017.

b- policy B for 2 years was acquired on January 1, 2019.