The company declared a 3% common stock dividend on December 1, and would like you to compute the following pieces of missing information. The market value of the common shares is $24.00 on December 1, and is $30.00 on the actual distribution date of the stock, December 31.

Fill in the missing information in the following table, using the information given and your work on the other panels. All “before” items are before the stock dividend was declared. All “after” items are after the stock dividend was declared and closing entries were recorded at the end of the year.

Points:

Pranks, Inc. is a manufacturer of joke and novelty products for perpetrators of practical jokes. The corporation has paid several cash dividends throughout Year 6, the current year. It is also declaring a stock dividend to its stockholders as the calendar year-end approaches. You’ve been brought in as a consultant to assist with this process, and also to help determine whether some missing information can be determined before the distribution of the stock dividend is made. The company has two classes of stock: common stock and cumulative preferred stock.

You’ve been able to retrieve the following information so far:

Fill in the missing information in the following table, using the information given and your work on the other panels. All “before” items are before the stock dividend was declared. All “after” items are after the stock dividend was declared and closing entries were recorded at the end of the year.

The asnweres i got are wrong

22,000.000

this one is right 33,500,000

55,500,000

22,540,000

32,960,000

55,500,00

The finance manager wants to prepare a cash budget for the July, 2020 through December, 2020 period.
The finance manager has received the following information from the marketing and operations
managers:
• The Sales were $140,000 in January, 2020 and then the sales grew by 2% each month in the first
three months (i.e., from February to April 2020) and by 5% in the next two months (i.e., in May
and June 2020). The sales are expected to grow by 1% each month thereafter.
• 45% of the Sales are collected in the same month. 30% of the sales are collected in the following
month. 24% of the sales are collected after two months and the remainder are not collected.
• The Purchases are 80% of each month’s sales and paid in the same month.
• Wages and Salaries are $25,000 each month and paid in the same month.
• Other administrative expenses are $15,000 and paid in the same month.
• Depreciation expense is $5,000 each month.
• An electrical device worth $30,000 will be purchased in October 2020. 50% of the amount due
will be paid immediately and the balance will be paid in November, 2020.
• The company had previously taken a loan of $200,000. The annual interest rate on the loan
amount is 4%. The interest is paid once a year in December each year. Assume that no principal
repayments are made in this period, only interest payments are made.
• The company pays rent of $3,500 quarterly (in March, June, September, and December each
year).

1. Determine the total cash inflows for each month from July 2020 to December 2020.
Show your work in Excel.

2. Determine the total cash outflows for each month from July 2020 to December 2020.
Show your work in Excel.

3. Determine the expected change in cash for each month from July 2020 to December 2020.
Show your work in Excel.

4. Describe in your own words some of the short-term borrowing options that the company may adopt.

On January 1, 2020, McGee Co. had the following balances:

         Projected benefit obligation                                                $7,800,000

         Fair value of plan assets                                                        7,800,000

Other data related to the pension plan for 2020:

         Service cost                                                                               315,000

         Contributions to the plan                                                         459,000

         Benefits paid                                                                             450,000

         Actual return on plan assets                                                     444,000

         Settlement rate                                                                                 9%

         Expected rate of return                                                                    6%

         No prior service cost, no prior OCI gains/losses

Required:

(a)    Prepare the journal entry to record pension expense, the contributions for 2020 and adjustments to Pension Asset/Liability and OCI (g/l).

(b) Answer the following questions:

(1) What is the plan assets balance on 12/31/2020?

(2) What is the Pension Benefit Obligation balance at December 31, 2020?

(3) What is the ending balance in the pension asset/liability at December 31, 2020?

(4)    What is Pension Expense for 2020?

A pension worksheet is provided to help you calculate and answer the questions, although you are not required to use it but feel free to fill it out here if you would like to. If you do, please make sure to answer the questions in the response area, do not expect to be graded only on what you might have included in the worksheet.

(a)    Prepare the journal entry to record pension expense, the contributions for 2020 and adjustments to Pension Asset/Liability and OCI (g/l).

(enter Journal entry here)

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(b) Answer the following questions. Type your response after each question:

(1) What is the plan assets balance on 12/31/2020? -->

(2) What is the Pension Benefit Obligation balance at December 31, 2020? -->

(3) What is the ending balance in the pension asset/liability at December 31, 2020? -->

(4)    What is Pension Expense for 2020? -->

Maendeleo Ltd. is a manufacturing company operating through a number of branches in Kenya. The following information relates to Maendeleo Ltd.’s operations for the year ending 31 December 2020.

Additional information

1. Details of property, plants and equipment schedule reflected the following details for the assets that existed before the year ending 31^st December 2020:

2. A perimeter wall was constructed at cost of sh.960,000 during the year ending 31^st December 2020 used from 1^st March 2020
3. A go down and drainage system were constructed at cost sh.2,860,000 and sh.1,780,000 respectively put into use on 1^st April 2020.
4. The company constructed a borehole at cost of sh.1,500,000 during the year which was put in use on 1^st July 2020

Required

Capital allowance due to Maendeleo ltd for the year ending 31^st December 2020

‘Mauritius declared a "state of environmental emergency" on August 7, 2020 after Japanese-owned cargo ship MV Wakashio ran aground on a coral reef, leaking 1,000 tons of oil onto pristine coasts. The island blue economy became a trash economy overnight. The oil from the ship threatens sea life already imperiled by climate change. In the same vein, according to marine ecologist from Mauritius, Fishermen community too, will suffer the consequences for years to come. This devastating oil spill has even poisoned fish and can even make humans sick if consumed.

In a similar way, it also deepens wounds in a tourism industry hurting from the pandemic. In fact, tourism provides jobs for an estimated 1 in 5 of its workers.

But the industry collapsed after the government cut the island off from the rest of the world to protect it from the corona virus pandemic. For shuttered hotels and restaurants, an ecological disaster on top of that might now be too much to bear.

Use appropriate supply and demand diagrams to analyse the effects on the market equilibrium price and quantity traded of fish, following:

Price elasticity of demand (PED) & Income Elasticity of demand (YED) is an important tool for private firms. It helps in decision making.

(a) Explain how a Hotel manager can use the concept of price elasticity of demand and   income elasticity of demand in this low season.                            

(b) Evaluate economic policies that the government of Mauritius can adopt to increase economic growth.                              

QUESTION 1 40 MARKS

PCA Ltd declared bankruptcy in June 2020 soon after publishing the financial statements for the year ended December 2019. PCA Ltd’s financial information for 2016 through 2018 are presented below.

irkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the first 6 months of 2020, the following data are available.

Prepare a selling and administrative expense budget by quarters for the first 6 months of 2020. (List variable expenses before fixed expense.)

Vaughn Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Vaughn and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2021, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,140 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $5,990 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Vaughn’s cash flow problems are due primarily to the company’s desire to finance a $301,430 plant expansion over the next 2 fiscal years through internally generated funds.

The commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years.

(a)

Compute the following items for Vaughn Corporation. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.)

Martinez Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Martinez and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2021, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $35,170 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $6,020 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Martinez’s cash flow problems are due primarily to the company’s desire to finance a $300,530 plant expansion over the next 2 fiscal years through internally generated funds.

The commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years.

(a)

Compute the following items for Martinez Corporation. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.)

Wildhorse Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Wildhorse and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2021, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $34,960 notes, which are due on June 30, 2021, and September 30, 2021. Another note of $6,030 is due on March 31, 2022, but he expects no difficulty in paying this note on its due date. Brown explained that Wildhorse’s cash flow problems are due primarily to the company’s desire to finance a $299,210 plant expansion over the next 2 fiscal years through internally generated funds.

The commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years.

(a)

Compute the following items for Wildhorse Corporation. (Round answers to 2 decimal places, e.g. 2.25 or 2.25%.)