Delta Corporation's capital structure consists of 20,000 common shares at December 31. At December 31, 2020 an analysis of the accounts and discussions with company officials revealed the following information:

       Sales.................................................................................................        $1,300,000

       Inventory, January 1, 2020..............................................................        150,000

       Purchases.........................................................................................        728,000

       Purchase discounts...........................................................................        18,000

       Inventory, December 31, 2020........................................................        130,000

       Tornado loss (net after $18,000 tax) ..............................................        42,000

       Selling expenses..............................................................................        148,000

       Cash.................................................................................................        60,000

       Accounts receivable........................................................................        90,000

       Common shares...............................................................................        200,000

       Accumulated depreciation...............................................................        180,000

       Dividend revenue............................................................................. 22,000

       Unearned service revenue................................................................        4,400

       Accrued interest payable.................................................................        1,000

       Land.................................................................................................        370,000

       Patents..............................................................................................        100,000

       Retained earnings, January 1, 2020.................................................        350,000

       Interest expense...............................................................................        15,000

       Prior years cumulative effect of change from straight-line to accelerated

       depreciation (net after $15,000 tax)..................................................... 45,000

       General and administrative expenses..............................................        172,000

       Dividends declared..........................................................................        52,750

       Allowance for doubtful accounts.....................................................        5,000

       Notes payable (maturity July 1, 2021).............................................        200,000

       Machinery and equipment...............................................................        450,000

       Materials and supplies inventory.......................................................        40,000

       Accounts payable............................................................................        60,000

Unless indicated otherwise, you may assume a 25% income tax rate.

Required:

a)    Prepare, in good form, a multiple-step income statement

b)    Prepare, in good form, a retained earnings statement.

API Development Essay

Read and reflect on the contribution in the FINTECH Book titled "Banking on Innovation Through Data". Compose a persuasive 500 words linking fintech innovation, data, and APIs.  

Cite the book to support your paper's main ideas.  Illustrate your ideas with an example of a real-life third-party fintech API.  

Persuade readers on the following issues:

1. Explain why banks open up their data and services to innovative developers
2. Describe the advantage to third party companies of access to customer data
3. Relate how an open API/API developer hub facilitates the implementation of the app

Question 1: General Equilibrium in closed and open economies [50 marks]

Consider the following closed Keynesian economy

Desired consumption, Cd = 1000 + 0.6(Y-T) - 300r;

Desired investment, Id = 600 - 300r;

Money deman d, L = 0.6Y - 300r;

Output, Ȳ = 4000;

Expected inflation, πe = 0;

Assume that we are in an open economy with a flexible exchange rate. Add the following equations to those presented before part a:

Taxes, T =20 + 0.2Y;

government purchases, G = 100;

net exports, NX = 150 − 0.1Y − 400r;

money supply, M = 1000;

output, Y ̄ = 2000;

d. Find the equilibrium values of output, the real interest rate, consumption, investment, net exports, and the price level. The following are the steps to help you find them:

(i) Find an equation describing the IS curve in the following format: r = f(Y)

(ii) Find an equation describing the LM curve in the following format: r = g(Y, P)

(iii) What is the value of output at the FE line?

(iv) Given that value, use the IS curve to find the real interest rate. Calculate the investment, the consumption and the net exports.

(v) Given the values of output and real interest rate, find the price level.

QUESTION 1

Given the financial statements below for Firefly Enterprises, what is the external financing need for a pro forma increase in sales of 5%? Enter your answer as the nearest whole (e.g., 123), but do not include the $ sign.

  

QUESTION 1. Given the financial statements below for Firefly Enterprises, what is the external financing need for a pro forma increase in sales of 18%? Enter your answer as the nearest whole (e.g., 123), but do not include the $ sign.

Firefly Enterprises Income Statement ($ Million) 2011

Sales 740

Cost of Goods Sold 452

Selling, General, & Admin Exp. 124

Depreciation 40

Earnings Before Interest & Taxes 124

Interest Expense 24

Taxable Income 100

Taxes at 40% 40

Net Income 60

Dividends 18

Addition to Retained Earnings 42

Balance Sheets as of 12-31

Assets 2010 2011

Cash 20 20

Account Receivable 102 110

Inventory 76 80

Total Current Assets 198 210

Net Fixed Assets 352 410

Total Assets 550 620

Liabilities and Owners Equity

2010 2011

Accounts Payable 62 70

Notes Payable 0 0

Total Current Liabilities 62 70

Long-Term Debt 280 300

Common Stock 34 34

Retained Earnings 174 216

Total Liab. and Owners Equity 550 620

Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a pro forma increase in sales of 25% if the firm is operating at 92% capacity? Enter your answer as the nearest whole (e.g., 123), but do not include the $ sign.

  

Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a pro forma increase in sales of 8% if the company is operating at full capacity? Enter your answer as the nearest whole (e.g., 123), but do not include the $ sign.

  

Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a pro forma increase in sales of 19% if the company is operating at 90% capacity? Enter your answer as the nearest whole (e.g., 123), but do not include the $ sign.

  

Given the financial statements below for Dragonfly Enterprises, what is the external financing need for a pro forma increase in sales of 18% if the company is operating at 90% capacity? Enter your answer as the nearest whole (e.g., 123), but do not include the $ sign. Dragonfly Enterprises Income Statement ($ Million) 2011 Sales 370 Cost of Goods Sold 226 Selling, Gen & Admin Exp 62 Depreciation 20 Earnings Before Int & Tax 62 Interest Expense 12 Taxable Income 50 Taxes at 40% 20 Net Income 30 Dividends 9 Addition to Retained Earn. 21 Balance Sheets as of 12-31 Assets 2010 2011 Cash 10 10 Account Receivable 46 50 Inventory 43 45 Total Current Assets 99 105 Net Fixed Assets 166 195 Total Assets 265 300 Liabilities and Owners Equity 2010 2011 Accounts Payable 26 30 Notes Payable 0 0 Total Current Liabilities 26 30 Long-Term Debt 140 150 Common Stock 22 22 Retained Earnings 77 98 Total Liab. and Owners Eq 265 300