In: Accounting
Beavis Construction Company was the low bidder on a construction
project to build an earthen dam for $1,730,000. The project was
begun in 2020 and completed in 2021. Cost and other data are
presented below:
| 2020 | 2021 | |||||
| Costs incurred during the year | $ | 476,000 | $ | 1,030,000 | ||
| Estimated costs to complete | 884,000 | 0 | ||||
| Billings during the year | 470,000 | 1,260,000 | ||||
| Cash collections during the year | 370,000 | 1,360,000 | ||||
Assume that Beavis recognizes revenue on this contract over time
according to percentage of completion.
Required:
Compute the amount of gross profit recognized during 2020 and
2021.
Beavis Construction Company was the low bidder on a construction
project to build an earthen dam for $1,730,000. The project was
begun in 2020 and completed in 2021. Cost and other data are
presented below:
| 2020 | 2021 | |||||
| Costs incurred during the year | $ | 476,000 | $ | 1,030,000 | ||
| Estimated costs to complete | 884,000 | 0 | ||||
| Billings during the year | 470,000 | 1,260,000 | ||||
| Cash collections during the year | 370,000 | 1,360,000 | ||||
Assume that Beavis recognizes revenue on this contract over time
according to percentage of completion.
Required:
Compute the amount of gross profit recognized during 2020 and
2021.
In: Accounting
Stenberg plc is preparing its financial statements for
the year ended 30 November 2020.
On 1 May 2020, the company purchased a factory for the manufacture
of optical disks,
paying £24,000,000. The factory will be depreciated over its
estimated life of 10 years
using the straight line method on a full year basis with no
residual value.
The asking price for the factory had been £30,000,000. However,
Stenberg plc estimated
the net present value of the factory’s future expected net cash
flows at £28,500,000 and
the price eventually agreed with the vendor was £24,000,000.
During October 2020 a rival company announced that it had patented
a new technology
which has been enthusiastically greeted by the major players in the
industry. Stenberg
plc now feels that it may be necessary to revise downwards its
expectations for the
factory. It now believes that the net present value of the expected
net cash flows from the
factory as at 30 November 2020 was £20,500,000. The net realisable
value of the factory
was estimated at £14,000,000 as at 30 November 2020.
Required:
Discuss whether or not there is evidence of impairment and describe
how the factory
should be treated in the financial statements for the year ended 30
November 2020.
In: Accounting
Suppose you are the brand manager for the JWU Online MBA Program. Design a promotional strategy to grow the program with high potential students. Define your target market. Describe your advertising objectives, messages, and media choices. How might you use communication to build the brand.
In: Operations Management
Exercise 20-13 Indigo Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested benefit obligation $1,650 $1,750 Accumulated benefit obligation 1,750 2,750 Projected benefit obligation 2,250 2,770 Plan assets (fair value) 1,730 2,640 Settlement rate and expected rate of return 10 % Pension asset/liability 520 ? Service cost for the year 2020 440 Contributions (funding in 2020) 750 Benefits paid in 202- 210
(a) Compute the actual return on the plan assets in 2020.
(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balance was zero.) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).
(c) Compute the amount of net gain or loss amortization for 2020 (corridor approach).
(d) Compute pension expense for 2020.
In: Accounting
Ajax had 5,000 shares of 8% PV=100 preferred stock
If the stock is cumulative and the company did not have any money
in 2019 but could pay 95000 in 2020 How much would the common
stockholders get in 2020?
1.95000
2.40000
3.15000
In: Accounting
The financial statements of the Precious Company appear below:
PRECIOUS COMPANY
Comparative Balance Sheet December 31,
_________________________________________________________________________
|
Assets |
2020 |
2019 |
|
Cash ............................................................................................. |
$ 25,000 |
$ 40,000 |
|
Debt investments .......................................................................... |
20,000 |
60,000 |
|
Accounts receivable (net) .............................................................. |
50,000 |
30,000 |
|
Inventory ....................................................................................... |
140,000 |
170,000 |
|
Property, plant and equipment (net) .............................................. |
170,000 |
200,000 |
|
Total assets ............................................................................. |
$405,000 |
$500,000 |
|
Liabilities and stockholders' equity |
||
|
Accounts payable .......................................................................... |
$ 25,000 |
$ 30,000 |
|
Short-term notes payable .............................................................. |
40,000 |
90,000 |
|
Bonds payable .............................................................................. |
75,000 |
160,000 |
|
Common shares ............................................................................ |
160,000 |
145,000 |
|
Retained earnings ......................................................................... |
105,000 |
75,000 |
|
Total liabilities and shareholders' equity ................................... |
$405,000 |
$500,000 |
PRECIOUS COMPANY
Income Statement
For the Year Ended December 31, 2020
|
Net sales (all on credit) ................................................................. |
$360,000 |
|
|
Cost of goods sold ........................................................................ |
184,000 |
|
|
Gross profit ................................................................................... |
176,000 |
|
|
Expenses |
||
|
Interest expense ...................................................................... |
$11,000 |
|
|
Selling expenses ..................................................................... |
30,000 |
|
|
Administrative expenses .......................................................... |
20,000 |
|
|
Total expenses .................................................................. |
61,000 |
|
|
Income before income taxes ......................................................... |
115,000 |
|
|
Income tax expense ...................................................................... |
35,000 |
|
|
Net income .................................................................................... |
$ 80,000 |
Additional information:
Required
Using the financial statements and additional information above, compute the following ratios for the Precious Company for 2020. Show all formulas and computations.
The end of the assignment
In: Accounting
In: Accounting
Trinidad is saturated with business schools; however, you want
to launch a new and private business school in the same market.
Traditionally, the existing business schools have not always
considered marketing and branding their schools because they are of
the firm belief that their institutions are already known and
nothing else needs to be done to attract new students.
Essentially, the existing business schools are not distinguishing
themselves from each other. There is competition where a lot of new
business schools are coming to the market, a lot of MBA degrees are
being offered by minor business schools, the market is less and
less clear, and there appears to be a brand proliferation and
business schools proliferation. Additionally, in conducting your
competitor research, you found that many of the existing schools
have weak brands and there is a clear danger of bringing down the
value of the MBA degree itself. Your continued research has found
that the majority of the existing business schools have been
plagued by low enrollment over the past five years. The reasons for
this predicament range from prospective students not being
interested in furthering their studies to financial challenges and
poor quality programmes. Moreover, the pricing structure for the
majority of the current business schools is extremely high, given
the present economic challenges facing the country. As a
consequence of these harsh realities, having an MBA degree will not
be the important thing; rather the importance now lies in the
school you got your MBA from.
Notwithstanding these challenges, you are determined to launch your
new business school by the next academic year (September 2017).
Your chief intention is to make a difference with your new business
school. In constructing your mini marketing plan for this scenario,
you can create a name for your business school and choose your own
location in Trinidad to set up your learning institution.
Construct your mini marketing plan around the following
elements:
Market-oriented Mission
Statement
Marketing Goals
Target Market
Product
Competition
Threats & Opportunities Analysis
Marketing Strategies/Promotions
Pricing, Positioning & Branding
Controls/Evaluation
In: Economics
You have obtained the fi nancial statements of Day Manufacturing and Night Production, two companies
in the manufacturing industry. You have acquired the following information for an analysis of the companies
(amounts in thousands):
Day Manufacturing Night Production
2020 2019 2020 2019
Cash $ 24 $ 21 $ 37 $ 35
Accounts receivable 273 196 280 230
Inventory 182 140 154 120
Prepaid expenses 7 6 5 7
Capital assets (net) 480 400 322 224
Current liabilities 154 175 170 140
Long-term debt 280 308 288 236
Share capital—common shares 140 140 120 120
Retained earnings 392 140 220 120
Sales (all credit sales) 2,660 1,820 1,750 1,680
Cost of goods sold 1,750 1,260 1,274 1,260
Interest expense 28 31 29 24
Taxes (30%) 108 78 90 78
Net income 252 182 210 182
a. Calculate the following ratios for the two companies for the two years. For 2019, assume the current
year amount is equal to the average where required.
i. Current ratio
ii. Accounts receivable turnover
iii. Inventory turnover
iv. Debt to equity
v. Interest coverage
vi. Gross margin
vii. Profi t margin
viii. Return on assets
ix. Return on equity
b. Write a brief analysis of the two companies based on the information given and the ratios calculated.
Be sure to discuss issues of short-term liquidity, activity, solvency, and profi tability. Which
company appears to be the better investment for the shareholder? Explain. Which company appears
to be the better credit risk for the lender? Explain. Is there any other information you would like to
have to complete your analysis?
In: Accounting