On December 18, 2017, Stephanie Corporation acquired 100 percent of a Swiss company for 4.0 million Swiss francs (CHF), which is indicative of book and fair value. At the acquisition date, the exchange rate was $1.00 = CHF 1. On December 18, 2017, the book and fair values of the subsidiary’s assets and liabilities were:

Stephanie prepares consolidated financial statements on December 31, 2017. By that date, the Swiss franc has appreciated to $1.10 = CHF 1. Because of the year-end holidays, no transactions took place prior to consolidation.

Determine the translation adjustment to be reported on Stephanie’s December 31, 2017, consolidated balance sheet, assuming that the Swiss franc is the Swiss subsidiary’s functional currency. What is the economic relevance of this translation adjustment?

Determine the remeasurement gain or loss to be reported in Stephanie’s 2017 consolidated net income, assuming that the U.S. dollar is the functional currency. What is the economic relevance of this remeasurement gain or loss?

a.Translation adjustment positive: ?

b.Remeasurement loss: ?

What are the consequences of the U.S. tax reform for the company? (Provide details.)

Compare the company’s profitability using company GAAP and U.S. GAAP

The ethical DNA of healthcare organizations is to provide health care for those who need. In the U.S., EMTALA, the federal regulation enacted in 1986 is a legal way of ensuring the beneficent commitment of the healthcare institutions. Under EMTALA, the staff at hospital emergency departments are required to screen every patient who seeks emergency care and to stabilize or transfer those with medical emergencies, regardless of health insurance status or ability to pay. However, fully abiding by the law sometimes places the hospital in financial risks. Imagine that you are the CEO of a not-for-profit-hospital. How would you satisfy the ethical demand of EMPTALA? Note that your ethical decision must be financially sustainable; however, the question is asking about your ethical direction in terms of resource allocation, not the financial and management details.   

USE THE FOLLOWING INFORMATION FOR THE NEXT 3 QUESTIONS

                     Below is an income statement for XYZ Company for 2020:

           37. Calculate breakeven sales dollars for XYZ Company using the Y-formula.

                       A. $220,000

                       B. $320,000

                       C. $350,000

                       D. $270,000

38. The degree of leverage (DOL) for XYZ Company in 2020 is equal to what amount?

            A. 1.0

            B. 2.0

            C. 3.0

            D. 4.0

            E. 5.0

39. Using the degree of leverage (DOL) for 2020 that you just calculated in question #38, if XYZ Company expects sales to increase 10% in 2021, by how much will the net income increase in 2021?

1. $5,000
2. $10,000
3. $15,000
4. $20,000
5. $25,000

Which CEO has been able to achieved and exemplified positive aspects of strategic leadership? Which characteristics make this CEO a good leader? What is his/her managerial style? What actions does this CEO take that reaffirms an effective strategic leadership? What are the effects of those actions on the firm’s performance?

I need to choose a CEO and write a 2-page paper about him/her.

Julianna Lilian is a realtor. She buys and sells properties on her own and also earns a commission as an agent for buyers and sellers. She organized a business in early 2020 where she contributed $60,000 in cash in return for common shares. Consider the following facts as of March 31, 2020:

• Office supplies of $500 were purchased and used during in the period.
• Julianna spent $20,000 for the right to use the Royal Lepage franchise, which allows her to represent herself as an agent. The franchise right is considered an asset.
• The business owes $150,000 as a loan payable for a plot of land that is currently undeveloped. The land cost Julianna $170,000 and she paid the remaining amount using cash. The loan has an interest rate of 8% / year.
• Julianna sold 5 houses and earned a commission of $42,000. As of March 31, all commission has been collected in cash and deposited into Julianna’s business bank account.
• Julianna owes $300,000 on a personal mortgage for her private residence. She acquired the home in 2018 for $450,000. The mortgage has an interest rate of 3% / year.
• In January 2020, Julianna acquired furniture for her office totalling $18,000. The furniture has a useful life of 9 years.
• Julianna paid $22,000 in upfront expenses (insurance and rent). Both expenses will cover the 2020 calendar year (January – December)
• Julianna paid $5,000 is other expenses relating to the business during the period.
• Julianna has $4,000 in her personal bank account and $19,500 in a business bank account.

Questions

1. Identify and explain why some of the data included above are not relevant to preparing the Company’s financial statements

2. Explain 2 relevant users for the financial statements. Explain the decisions that each user may make using the financial statements information

3. Prepare the journal entries and period end adjusting entries for the above transactions

Use the following format:

Dr. Account Name (Asset) $ XXX

Cr. Account Name (Liability) $ XXX

4. List the company’s total assets, total liabilities and total shareholders, as they would appear on the balance sheet as of March 31, 2020

Use the following format:

Cash $X,XXX

Asset 2 $X,XXX

Asset 3 $X,XXX

Asset 4 $X,XXX

Etc.

Total Assets: $X,XXX

Liability 1 $X,XXX

Liability 2 $ X,XXX

Total Liabilities: $X,XXX

Shareholders Equity: $X,XXX

that is all the information

what information do you prime think is missing? that is all that is given

1.

If most of a country's business financing comes from families, banks, and the government, what should we expect in terms of information disclosure to the public?

Multiple Choice

Relatively little disclosure because the public isn't a major factor

A great deal of disclosure because it will be the only way for interested parties to learn about the company

Complete openness of accounting records

No disclosure at all

2.

Which of the following is the primary role of an internal auditor?

Multiple Choice

To uncover errors, inefficiencies, and fraud

The prepare the financial budgets for the company

To ensure the adoption of IFRS by all foreign companies

To prepare the financial statements of the company

3.

Under IAS 38, which of the following items might qualify for capitalization as internally generated intangible assets?

Multiple Choice

Publishing titles

Brands

Customer lists

Market share

5.

Which of the following is a difference between the U.S. and other Anglo-Saxon countries in terms of accounting standards?

Multiple Choice

The U.S. standards are becoming more rigid than the U.K. standards.

The U.S. does not adhere to the "true and fair view" approach.

The U.S. is more private sector-oriented.

The U.S. always follows a conceptual framework when developing accounting standards.

The Strik-it-Rich Gold Mining Company is a U.S. multinational firms and considering investing in a project in Germany.  The cost of the investment project is €100 million. This cost occurs at the beginning of the year. The returning cash flow of this project is €120 million. Assume the returning cash flows happen at the end of the year. The firm’s cost of capital in the U.S. is 10%. The current exchange rate is S₀($/€)= $1.20/€. Strik-it-Rich’s management is, however, concerned with the possibility that the exchange rate may change quit a bit because of the potential withdrawal of the United Kingdom from the European Union. The firm estimates that the exchange rate at the end of the year could either be S₀($/€)= $1.00 or S₀($/€)= $1.40.

-find the net present value (NPV) of this project in U.S. dollars, if S₀($/€)is still $1.20/€ at the end of the year.

- find the net present value (NPV) of this project in U.S. dollars, if S₀($/€)is $1.00/€ or $1.40/€ at the end of the year.

- There are one-year call options on the exchange rates with the exercise price ofS($/€)= $1.20/€. The price paid to buy the call option contracts is $0.01 million for purchasing 1 million U.S. dollars. Please find the NPV if the mining company use call options.

- Instead of using call option contracts, the mining company can also use the real option. The exchange rate should become clear within a year. If the company has the option to delay this expansion plan for a year, please find the NPV after the company delays the expansion. Assume the exchange rate would not change in the next year.

You are a proposal manager for a government contractor working on a huge new program. You have an interview with an former employee of your main competitor who wants you to hire him. He happens to mention that when he left his former employer, he still had the entire text of their proposal for the same program on his laptop. If you have this information, it will give you a huge advantage in the competition. What do you do? And why?