QUESTION 1                                                                                                                                                       30 MARKS

The following information represents the abridged financial statements of Mega Ltd and its subsidiary Ultra Ltd:

Additional information:

On 1 January 2018, the date on which Ultra Ltd acquired the interest in Mega Ltd, the equity of Mega Ltd consisted of:

Share capital                                      N$ 260 000

Mark-to-market reserve                              N$ 3 000

Revaluation reserve                       N$ 7 000

Retained earnings                           N$ 135 000

Ultra Ltd elected to measure non-controlling interests at fair value at the acquisition date. On 1 January 2018, the fair value of each non-controlling interest’s share was N$8,50 per share, based on market prices.

Ultra Ltd classified the investment in Ultra Ltd under IFRS 9 in its separate financial statements and recognised fair value adjustments in a mark-to-market reserve (other comprehensive income). Ignore tax implications.

REQUIRED

Prepare consolidated financial statements for the Mega Ltd Group for the reporting period ended 31 December 2018.                                                                                                                                    (30 marks

Please complete the following steps for your discussion post and response.

The Joint Commission is a non-profit organization that sets quality standards for a variety of health care entities. Receiving and maintaining Joint Commission accreditation is no easy task and one that many health care managers may perceive as unnecessary.

You are having lunch with a friend who also works in health care. Your friend asks you why your hospital chooses to continue accreditation with the Joint Commission when their accreditation requirements can be such a headache for managers and clinical staff. You respond with "well because the Joint Commission does great things for improving the overall quality of care we deliver to patients." Your friend responds with "ok, that's all good and well, but let's get real here. Can't you do those things without the pain of the reporting requirements, site visits, etc.?"

How would you respond to your friend's question?

Hypothetically, if your hospital chose to not seek reaccreditation with the Joint Commission, what could the impact be on patients, staff, and the general public perception?

Please be sure to validate your opinions and ideas with citations and references in APA format.

In one market update session, a company’s story from birth to death (bankruptcy). What was its name?

Group of answer choices：

Enron Corporation

Toys “R” Us

Sears

Macy’s

9. Explain how Conway’s Life works in the context of cellular automata. Describe the update rules of the Game of Life.

10. Explain how genetic programming can be used to solve problems.

Mg₃N₂ + 3H₂O --> 3MgO + 2NH₃

How do the theoretical and experimental empirical formula can be compare?

How an incomplete conversion of Mg₃N₂ affect the results

From the result, is this a plausible method to determine the formula of metal oxides?

An empirical formula is the lowest whole number ratio of the elements in a compound and provides information about the composition of a compound. For instance, the compound sodium sulfate decahydrate has the chemical formula Na2SO4•10H2O. This formula conveys the information that there are ten water molecules per two sodium ions per one sulfate ion. You might wonder: “How were these ratios determined?” To answer the question it is necessary to recognize that the ratio of atoms (or ions) is identical to the ratio of moles. That is, for sodium sulfate decahydrate, there are ten moles of water per two moles of sodium ions per one mole of sulfate. This conception of the molar ratio is essential since there is no way to count atoms in the lab but mass can be measured and mass can be converted to moles by the formula: Eq. 1 The goal of this lab is to determine x, y, and z in the chemical formula of the hydrate: CuxCly • zH2O Compounds with a “•zH2O” in the formula are called “hydrates” and have water molecules incorporated into the lattice structure of the ionic compound. When heated, hydrates decompose to produce water and an anhydrous salt. Anhydrous salt have no water molecules in their lattice structure. Removal of water molecules from the salt creates a change in the lattice structure, which is often accompanied by a change in color. For example, cobalt(II) chloride hexahydrate is pink. Heating the hydrate salt removes the six waters causing a color change from pink to a purple-blue. Figure 1: Hydrate to anhydrous color transition example. Chemistry: Structure and Properties by Tro, 1st ed, page 160. Under the conditions of the reaction, the evolved water will vaporize. CuxCly •zH2O → CuxCly + z H2O hydrate anhydrous salt evolved water 34 Thus, the difference in the mass before and after the reaction will be the mass of the water in the compound and the mass of water can be converted to moles of water by applying Eq. 1. The next step in the analysis is to determine the mass of copper in the sample. This is done by reducing the copper ion to elemental copper using aluminum as the reducing agent: 3 Cuy+ + y Al → y Al3+ + 3 Cu The mass of the copper metal produced is the same as the mass of the copper in the original sample. Since the sample contains only copper, water, and chloride, subtracting the mass of the water and copper from the mass of the sample or subtracting the mass of the copper from the mass of the anhydrous salt will yield the mass of the chloride.

Discussion Questions:

1. A student did not notice that after ten minutes some of the contents of the crucible remained blue. Would this cause your “z” value to be erroneously high, erroneously low, or would this error not affect “z”? Explain.

2. Would the procedural error described in Discussion Question #1 cause your “y” value to be erroneously high, erroneously low, or would this error not affect “y”? Explain.

3. A 5.123g sample of the hydrate MxCly•zH2O decomposed into 1.122g My+, 1.984g chloride, and 2.017g water. If the molar mass of “M” is 40.078 g/mol, what is the empirical formula of the compound? Show your calculations. What is the most likely identity of metal “M”? Explain your answer.

An empirical formula is the lowest whole number ratio of the elements in a compound and provides information about the composition of a compound. For instance, the compound sodium sulfate decahydrate has the chemical formula Na2SO4•10H2O. This formula conveys the information that there are ten water molecules per two sodium ions per one sulfate ion. You might wonder: “How were these ratios determined?” To answer the question it is necessary to recognize that the ratio of atoms (or ions) is identical to the ratio of moles. That is, for sodium sulfate decahydrate, there are ten moles of water per two moles of sodium ions per one mole of sulfate. This conception of the molar ratio is essential since there is no way to count atoms in the lab but mass can be measured and mass can be converted to moles by the formula: Eq. 1 The goal of this lab is to determine x, y, and z in the chemical formula of the hydrate: CuxCly • zH2O Compounds with a “•zH2O” in the formula are called “hydrates” and have water molecules incorporated into the lattice structure of the ionic compound. When heated, hydrates decompose to produce water and an anhydrous salt. Anhydrous salt have no water molecules in their lattice structure. Removal of water molecules from the salt creates a change in the lattice structure, which is often accompanied by a change in color. For example, cobalt(II) chloride hexahydrate is pink. Heating the hydrate salt removes the six waters causing a color change from pink to a purple-blue. Figure 1: Hydrate to anhydrous color transition example. Chemistry: Structure and Properties by Tro, 1st ed, page 160. Under the conditions of the reaction, the evolved water will vaporize. CuxCly •zH2O → CuxCly + z H2O hydrate anhydrous salt evolved water 34 Thus, the difference in the mass before and after the reaction will be the mass of the water in the compound and the mass of water can be converted to moles of water by applying Eq. 1. The next step in the analysis is to determine the mass of copper in the sample. This is done by reducing the copper ion to elemental copper using aluminum as the reducing agent: 3 Cuy+ + y Al → y Al3+ + 3 Cu The mass of the copper metal produced is the same as the mass of the copper in the original sample. Since the sample contains only copper, water, and chloride, subtracting the mass of the water and copper from the mass of the sample or subtracting the mass of the copper from the mass of the anhydrous salt will yield the mass of the chloride.

Discussion Questions:

1. A student did not notice that after ten minutes some of the contents of the crucible remained blue. Would this cause your “z” value to be erroneously high, erroneously low, or would this error not affect “z”? Explain.

2. Would the procedural error described in Discussion Question #1 cause your “y” value to be erroneously high, erroneously low, or would this error not affect “y”? Explain.

3. A 5.123g sample of the hydrate MxCly•zH2O decomposed into 1.122g My+, 1.984g chloride, and 2.017g water. If the molar mass of “M” is 40.078 g/mol, what is the empirical formula of the compound? Show your calculations. What is the most likely identity of metal “M”? Explain your answer.

ASSIGNMENT 1
GBSw LTD
Chooye Haatimba (CH), a recent MBA graduate, was recruited as a Loan Officer of an indigenous bank. He had previous banking experience at the bank. His first assignment in this position was to review the account of GBSw, a long-standing client of the bank. GBSw has applied for an increase in their line of credit from K36,000 to K48,000 and also requested a 10-year extension on a K24,000 due on October 2020. CH’s started by doing some research into the background of the company. The company was formed in 1978 by Austin Simamba, in mid-40’s, who decided to own and operate his own business in the country. The company manufactured and sold high quality sporting wear. It remained small until 2000’s. Sales grew steadily, going from K51,600 in 2000, to K110,400 in 2005, and   K241,200 in 2010, and K308,400 in 2015. Of these sales 70% were on credit. Until 2010, GBSw had been a operated by the Simamba family. In 1994 Manns Simamba took over from his father in 1994. Under his management GBSw was growing tremendously in sales and profits. Upon his retirement in 2014, GBSw was sold two times within the next year – first to a group of Ndola businessmen and then to a group of Kitwe businessmen headed by Martin Haambotwe, thus ending the 36-year Simamba control of the business. The Simamaba family had been quite conservative in their management of GBSw, limiting the product line to high quality sporting wear sold only in sporting shops and specially approved men’s wear stores, but the Haambotwe syndicate took a more aggressive approach. They expanded the product line to include sporting shorts, sporting jackets, T-shirts and sweaters, drastically expanding the discount stores. This expansion in the product line was financed in large part through the issuance of K90,000 10% long term loan in October 2018. This debt was due in 15 years (2033), and carried a sinking fund provision of K6,000, with the first sinking fund payment being made one year after the debt was issued. Apart from the K24,000 bank loan due in June 2020, this was the first long term debt that GBSw had contracted, previously limiting the capital structure to ordinary shares. The Haambotwe group was hopeful that this aggressive expansion, relying on heavily on the good name of GBSw, would help to recapture the company’s growth recorded in the 2000’s. For the past four years the Bank has granted GBSw a line of credit for K36,000. The need for seasonal borrowing for GBSw is a result of its highly seasonal sales pattern and limited production facilities. Throughout the year GBSw is forced to keep production near full capacity, building large inventories that will be reduced from mid-July through December when 90% of the sales take place. Thus, for GBSw, short term borrowing generally reaches a peak in August and is completely repaid by the end of November. While they have had a line of credit of K36,000 for the past four years, the company’s high credit was only for K31,200 in August 2018. In preparing his report for the Bank, CH will be required to prepare a statement of cash flow for the past 2 years, to provide some insight into how GBSw has used its funds in the past. A complete ratio analysis of the firm, focusing on liquidity, debt, coverage, and profitability ratios, also will be necessary. In addition to the calculations of these ratios and an analysis of them, a tentative recommendation on both the line of credit and the loan extension is required by CH.
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The analysis will be based upon the financial data in Exhibits 1,2 and 3. EXHIBIT 1                                                                        GBSw Ltd              Statement of Income for years ending August 31, 2017 through 2019
2017 2018 2019                      K000 K000 K000 Net sales 247.2 290.4 308.4 Cost of goods sold 176.4 207.6 220.8 Gross profit   70.8   82.8   87.6 Other operating expenses (Admin, selling and general)   11.916   21.936 26.796 Depreciation      7.8     7.8     7.8    19.716 29.736   34.596 Profit before interest and taxes   51.084 53.064   53.004 Finance cost (Interest expense)     2.4     2.4     2.4 Profit before tax   48.684 50.664 50.604 Income tax    17.039 17.732 17.111 Net profit after tax   31.645 32.932 33.493 Dividends paid    19.800 22.050 22.050 Retained profit   11.845 10.882 11.443   
  
EXHIBIT 2                                                                       GBSw Ltd                        Statement of financial position as at August 31,2017 to 2019             2017            2018            2019 K’000 K’000 K’000 K’000 K’000 K’000 ASSETS       Non-current assets 274.80 324.00 414.00 Accumulated depreciation   75.60    79.20    82.80    199.20 244.80 331.20 Goodwill 144.00 144.00 144.00 Non-current assets 343.20 388.80 475.20 Current assets       Inventory (Note 1)    43.20   57.60    75.60 Trade receivables     16.80   21.60    18.00 Cash and bank   25.20   21.60    19.20 Total current assets   85.20 100.80 112.80 Total assets 428.40 489.60 588.00 Current liabilities       Line of credit 28.80 31.20 28.80 Trade payables    8.40 12.00 19.20 Accrued expenses   3.60    6.00    9.60 Total current liabilities 40.80 49.20   57.60
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Bank loan (due June 2020) 24.00 24.00 24.00 Long term debt - - 90.00    24.00 24.00 114.00 Total liabilities 64.80 73.20 171.60 Assets less liabilities 363.60 416.40 416.40 Equity       Ordinary share capital 192.00 204.00 204.00 Share premium 120.00 156.00 156.00 Revenue reserves    51.60    56.40    56.40 Equity 363.60 416.40 416.40       
Note 1 Inventory   2017 2018 2019 K’000 K’000 K’000 Raw materials and supplies    9.60 12.00   14.40 Work in progress 31.20 42.00   55.20 Finished goods   2.40   3.60     6.00 Total inventory 43.20 57.60   75.60
EXHIBIT 3 INDUSTRY AVERAGES FOR SELECTED RATIOS RATIO AVERAGE Gross profit margin 23.4% Net profit margin    9.64% Return on assets (Earning power) 7.96% Asset turnover 0.826 times Inventory turnover 3.877 times Average collection period 40.3 days Current ratio 1.943 Acid test ratio 0.969 Total debt to equity 0.636 Long term debt to total capitalisation 0.487 Interest coverage ratio 4.533 times
Required 1. Compute the financial ratios for GBSw for 2017 to 2019 2. Comment on the strengths and weaknesses revealed by this analysis 3. If a value for annual cash flow before interest and taxes was available, what other ratio might be useful? Is such a ratio meaningful? Why? 4. Assuming that a value for annual cash flow before interest and taxes is not available, how might the interest coverage be modified to examine coverage other fixed charges for GBSw? What does this analysis indicate? (Use 35%as the tax rate)
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5. Prepare a statement of cash flow for 2018 and 2019. What is the significance of such an analysis? 6. Prepare a proforma statement of income for GBSw for 2018 and 2019. What is the purpose of this analysis? 7. What should CH’s recommendation be? Justify your answer  

How can you estimate the magnitude of “supplier induced demand”? (Please describe the empirical data you propose to use, and the specification of the regression). What is the identification challenge? How would you address the identification issue?

What is the usual meaning that economists give to the expression “the value of a statistical life” (VSL)? Describe two different ways that you could estimate this value. Why is empirical measure of VSL important for environmental policy making?