Each month, the Sports Exports Company (a U.S. firm) receives an order for footballs from different British sporting goods distributors. The monthly payment for the footballs is denominated in British pounds, as requested by the British distributor. Jim Logan, owner of the Sports Exports Company, must convert the pounds received into dollars.

1. Explain how a higher level of inflation in UK affect Sports Exports Company (assume U.S, inflation remains constant.

2. How could a decreasing level of national income in UK affect Sports Exports Company?

LazyDaz, Inc. reported the following for its 2020 financial statements.
Balance Sheet

Income Statement
For the Year Ending Dec 31, 2020

The financial notes of LazyDaz disclose the following 2020 information:
(1) Property, plant and equipment was sold for cash. The PP&E had an original cost of $400
and accumulated depreciation of $100.
(2) Stock was issued for $120 cash.
(3) Bonds of $30 were retired.
(4) Land with a cost of $140 was sold.
(5) There were two major noncash transactions. PP&E was acquired by issuing a $75 long-term
note. Later in the year, PP&E was acquired by issuing $100 in common stock.
(6) All other transactions were cash transactions.

Can you prepare a Statement of Cash Flows for this information

Standard Costing

Answer Approach Required (steps)

Mayfield Ltd manufactures a small part used in the automotive industry. You are the Management Accountant of the company and have been presented with the following information to allow you to prepare a performance report for the year ended 31st March 2020.

The budgeted level of production and sales for the year was 265,000 units and the standard manufacturing cost per unit was as follows;

                                                                                                €         

Direct materials 2.2 kg @ €11.50 each                                   25.30

Direct labour 2 hours @ €11 per hour                                   22

Variable manufacturing overhead 2hrs @ €13                        26                               

Fixed manufacturing overhead 2 hrs @ €14.50                       29                 

Standard manufacturing cost                                                  102.30

During the year, demand for the company’s product exceeded expectations. 280,000 units were manufactured and sold, generating sales revenue of €38,920,000. Shortly after establishing the standard costs for the year Kenny Ltd was forced to find a new supplier to meet its direct material requirements. Throughout the period the new supplier charged a price which was 10% in excess of the standard price. In total 600,000 kg was purchased and used. The company uses a Just-in-Time system so there were no closing stocks.

With regard to direct labour cost, while the actual rate paid to direct manufacturing employees was €0.20 per hour below standard rates, there were some labour efficiency problems encountered during the year. The employees reported difficulties handling the materials resulting in each unit taking 10% longer than the standard time.

Direct labour hours is the basis used by Kenny for allocating both variable and fixed manufacturing overheads to units of production. In the year ended 31st March 2020 the actual variable manufacturing overhead cost amounted to €8,069,000 and the fixed manufacturing overhead amounted to €9,240,000.

Requirements

1. Prepare the cost variances for Kenny Ltd for the year to 31st March 2020 in as much detail as the information given above permits.

After presenting the variances that you have calculated in part (a) above at a management meeting one of the management team expresses the view that while he ‘understands the reasons for the material and labour variances he is confused about the fixed and variable overhead variances’

2. Briefly interpret and explain the reasons for the variable and fixed overhead variances that you have calculated for the benefit of the management team.   
3. Calculate the actual gross profit earned by Kenny Ltd. for the year ended 31st March 2020.   
4. Write a short CEO brief discussing succinctly the benefits and problems with standard costing. Address the relevance of standard costing to the modern business environment.

Consider the following cases about the management of investment funds. In each case state if there is potential conflict of interest that may result in unethical conduct and describe why.

a) The manager of a mutual fund invests in a small firm for which his spouse is an independent auditor.

b) The research analysis and rating department and the investment management department of an investment company are headed by the same person.

c) The compensation of the mutual fund manager is based on the turnover of the fund.

d) An actively managed mutual fund provides only one annual report to clients.

e) The mutual fund manager invests in a company managed by his former college classmate.

The following account balances were taken from ABC Company’s unadjusted trial
balance at December 31, 2020:

Accounts Payable ............  $56,000
Accounts Receivable .........  $42,000
Cash ........................  $11,000
Common Stock ................  $63,000
Cost of Goods Sold ..........  $52,000
Income Tax Expense ..........  $12,000
Insurance Expense ...........  $21,000
Inventory ...................  $70,000
Land ........................  $68,000
Mortgage Payable ............  $49,000
Patent ......................  $31,000
Prepaid Insurance ...........  $17,000
Rental Revenue ..............  $46,000
Retained Earnings ...........  $72,000 (at January 1, 2020)
Sales Revenue ...............  $95,000
Supplies ....................  $19,000
Wage Expense ................  $38,000

ABC Company has not yet recorded adjusting entries related to the following
two items:

(1)  $11,000 of supplies were used up during 2020.

(2)  ABC Company has provided services to a customer totaling $14,000 as of
     December 31, 2020. However, the customer has not yet paid ABC Company.

Calculate the total assets reported in ABC Company's December 31, 2020 balance
sheet after the appropriate adjusting entries have been recorded and posted.

The following account balances were taken from ABC Company’s unadjusted trial
balance at December 31, 2020:

Accounts Payable ............  $56,000
Accounts Receivable .........  $42,000
Cash ........................  $11,000
Common Stock ................  $63,000
Cost of Goods Sold ..........  $52,000
Income Tax Expense ..........  $12,000
Insurance Expense ...........  $21,000
Inventory ...................  $70,000
Land ........................  $68,000
Mortgage Payable ............  $49,000
Patent ......................  $31,000
Prepaid Insurance ...........  $17,000
Rental Revenue ..............  $46,000
Retained Earnings ...........  $72,000 (at January 1, 2020)
Sales Revenue ...............  $95,000
Supplies ....................  $19,000
Wage Expense ................  $38,000

ABC Company has not yet recorded adjusting entries related to the following
two items:

(1)  $11,000 of supplies were used up during 2020.

(2)  ABC Company has provided services to a customer totaling $14,000 as of
     December 31, 2020. However, the customer has not yet paid ABC Company.

Calculate the total assets reported in ABC Company's December 31, 2020 balance
sheet after the appropriate adjusting entries have been recorded and posted.

The term “majlis” refers to:

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Question 22 pts

Which of these statements is true about Palestine in the 19th century?

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Question 31 pts

The Zionist movement primarily desired to :

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Question 41 pts

The CPU and its Young Turks sided with Germany in WWI for the following reasons except:

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Question 51 pts

The Balfour Declaration of 1917 promised that Palestine would:

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Question 61 pts

What was the "Mandate System"?

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Question 71 pts

In 1923, Mustafa Kemal transformed Turkey into:

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Question 81 pts

The Sykes-Picot Agreement ignored the nationalistic feelings of the...

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Question 91 pts

One could speak of British foreign policy in the late 19th and early 20th centuries as manipulativebecause...

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Question 101 pts

Which of these Arabic dynastic families helped the British empire by leading the revolt against the Ottomans, and were eventually rewarded with territories?

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Question 111 pts

In theory, the purpose of the League of Nations in Middle Eastern affairs was to...

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Question 121 pts

In the face of European imperialist domination, secular modernists reforms in the Egypt, Turkey, Iran, and Afghanistan acquired most popular because...

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Question 131 pts

Hassan El Banna and his Muslim Brotherhood organization were originally influenced by which of these 19th century Muslim reformists?

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Question 141 pts

Which of these terms does not refer to the context of European Jewish ambitions to establish a homeland in Palestine?

Question 15

Which of these Muslim territories did not give cheap concessions to Western business interests to exploit their newly-discovered oil resources?

Question 16

Match the terms in the left side with its appropriate definition in the right side

Ayatollah Khomeini

      [ Choose ]            Leader of the Muslim Brotherhood in Egypt, Hanged by the then president Nasser.            First democratically elected Iranian prime minister            Iranian Shia Islamist revolutionary            Lebanese Shia militant/political group.            Former Iranian Monarch and dictator.                    

Mohammed Reza Pahlavi

      [ Choose ]            Leader of the Muslim Brotherhood in Egypt, Hanged by the then president Nasser.            First democratically elected Iranian prime minister            Iranian Shia Islamist revolutionary            Lebanese Shia militant/political group.            Former Iranian Monarch and dictator.                    

Mosaddeq

      [ Choose ]            Leader of the Muslim Brotherhood in Egypt, Hanged by the then president Nasser.            First democratically elected Iranian prime minister            Iranian Shia Islamist revolutionary            Lebanese Shia militant/political group.            Former Iranian Monarch and dictator.                    

Sayyid Qutb

      [ Choose ]            Leader of the Muslim Brotherhood in Egypt, Hanged by the then president Nasser.            First democratically elected Iranian prime minister            Iranian Shia Islamist revolutionary            Lebanese Shia militant/political group.            Former Iranian Monarch and dictator.                    

Hezbollah

      [ Choose ]            Leader of the Muslim Brotherhood in Egypt, Hanged by the then president Nasser.            First democratically elected Iranian prime minister            Iranian Shia Islamist revolutionary            Lebanese Shia militant/political group.            Former Iranian Monarch and dictator.                    

Choose from

Leader of the Muslim Brotherhood in Egypt, Hanged by the then president Nasser.  

First democratically elected Iranian prime minister           

Iranian Shia Islamist revolutionary           

Lebanese Shia militant/political group.           

Former Iranian Monarch and dictator.                    

Question 17

One similarity in the leadership between Kemal Ataturk, Gamal Nasser, and Shah Reza Pahlavi, is that all these leaders...

Question 18

Gamel Abdel Nasser was...

Question 191

Which of these factors best explain the reasons behind the 1978 revolution in Iran:

Question 20

The Middle East is important to the United States for the following reasons:

Question 21

The Iraqi invasion of Kuwait led to:

Question 22

The long Iran-Iraq war resulted in:

Question 23

In your opinion, what was the reason for the success of the Iranian Revolution that brought downthe rule of the dictator Shah Reza Pahlavi in in 1979?

Question 24

Which of these could be considered the most important achievement of secular modernists in Egypt?

Question 25

The main course of the Arab-Israeli conflicts from 1948 to 1973 was the clash between...

Question 26

As explained in details in chapter 14, in order for an invention to take off and engender progress, certain social and cultural conditions need to be met. Based on your close reading of the chapter, explain how Ottoman society in the 18th and 19th centuries lack these social preconditions of industrialization?

Question 27

How do you explain the rise of the secular modernist reformists in the Middle East during the post-World War II era? How did they attempt to liberate their countries from Western imperial domination? What were the domestic and foreign challenges to the implementation of their reforms?

Question 28

What's at the source of the Palestinian-Israeli conflict? Elaborate on the Arab and Zionistnationalist arguments...

Question 29

How far back can you trace the U.S. involvement in the Middle East? What explains U.S. interest in this region? Do you feel like through its involvement, did the U.S. uphold or betray its principles of promoting freedom and democracy in the Middle East?

Question 30

Which one of these wars was not a direct confrontation between Israel and the Arab nations?

Delta CEO Bastian wondered how he should respond to increased global competition, including
the threat posed by rapidly expanding Persian Gulf carriers and the European ultra-low cost competi-tors, all of which are making inroads into Delta’s profit sanctuary on international routes. Meanwhile, the domestic U.S. airline industry is getting more consolidated, and thus making the few remaining competitors more potent. In addition, the U.S. also has its share of ultra-low cost competitors such as Spirit Airlines and Allegiant Air. Will they be expanding and making inroads to Delta’s routes? At the same time, customer service has become much more important given the recent high-profile inci-dents. Customers and regulators are becoming increasing vocal in demanding better customer service.
He could also see changing demographic trends would drive changes, and Delta’s strategy needed
to adapt to meet the needs of new consumer groups. Importantly, looming demographic shifts repre-sented an opportunity to offer new products and services.
Sipping his Diet Coke, and looking at the A-380 flight by Korean Air taking off, Ed Bastian won-dered, what does Delta need to address all these threats, and what would Delta need to do to create a competitive advantage? He needed to outline proposals to present to the next Board of Directors meet-ing concerning new products and services Delta should offer. How could Delta be better positioned to meet emerging challenges and opportunities, both domestically and globally? Ed Bastian started to type on his laptop...

Delta CEO Bastian wondered how he should respond to increased global competition, including
the threat posed by rapidly expanding Persian Gulf carriers and the European ultra-low cost competi-tors, all of which are making inroads into Delta’s profit sanctuary on international routes. Meanwhile, the domestic U.S. airline industry is getting more consolidated, and thus making the few remaining competitors more potent. In addition, the U.S. also has its share of ultra-low cost competitors such as Spirit Airlines and Allegiant Air. Will they be expanding and making inroads to Delta’s routes? At the same time, customer service has become much more important given the recent high-profile inci-dents. Customers and regulators are becoming increasing vocal in demanding better customer service.
He could also see changing demographic trends would drive changes, and Delta’s strategy needed
to adapt to meet the needs of new consumer groups. Importantly, looming demographic shifts repre-sented an opportunity to offer new products and services.
Sipping his Diet Coke, and looking at the A-380 flight by Korean Air taking off, Ed Bastian won-dered, what does Delta need to address all these threats, and what would Delta need to do to create a competitive advantage? He needed to outline proposals to present to the next Board of Directors meet-ing concerning new products and services Delta should offer. How could Delta be better positioned to meet emerging challenges and opportunities, both domestically and globally? Ed Bastian started to type on his laptop...

1. On December 31, 2020, for GAAP purposes, Clubs Inc. reported a balance of $40,000 in a warranty liability for anticipated costs to satisfy future warranty claims. No claims were paid in 2020. Pretax GAAP income is $300,000 and the tax rate is 25%. Assume no other differences between the tax bases and GAAP bases of assets and liabilities, or any beginning balances in deferred tax accounts.

Required:

1. Record the income tax journal entry on December 31, 2020.

___________________________________              ____________            _____________

            ___________________________________              ____________            _____________

            ___________________________________              ____________            _____________

            ___________________________________              ____________            _____________

b. Assume that there was a December 31, 2019, balance of $4,000 in the DTA account. Record the income tax journal entry on December 31, 2020.

___________________________________              ____________            _____________

            ___________________________________             ____________            _____________

            ___________________________________              ____________            _____________

            ___________________________________              ____________            _____________

2. In 2020, Cardinals Company operated at a tax loss, totaling $88,000 during its first year of business. Assuming a tax rate of 25%, and that income is expected in 2021, record the entry to reflect the tax benefit of the net operating loss on December 31, 2020. Cardinals Company determined that it was more likely than not that 75% of the deferred tax asset would not be realized.

___________________________________              ____________            _____________

            ___________________________________              ____________            _____________

            ___________________________________              ____________            _____________

            ___________________________________              ____________            _____________

___________________________________              ____________            _____________

            ___________________________________              ____________            _____________

            ___________________________________              ____________            _____________

            ___________________________________              ____________            _____________