Questions
An excerpt from the statement of financial position of Twilight Limited follows: TWILIGHT LIMITED Selected Statement...

An excerpt from the statement of financial position of Twilight Limited follows:
TWILIGHT LIMITED
Selected Statement of Financial Position Information
At December 31, 2020
Long-term debt
Notes payable, 10% $5,000,000
4% convertible bonds payable 2,000,000
6% convertible bonds payable

3,000,000
Total long-term debt

$10,000,000
Shareholders' equity
$0.68 cumulative, no par value, convertible preferred shares
(unlimited number of shares authorized, 600,000 shares
issued and outstanding)		 $3,000,000
Common shares, no par value (8,000,000 shares authorized,
3,000,000 shares issued and outstanding)		 25,000,000
Contributed surplus 200,000
Retained earnings

7,000,000
Total shareholders’ equity

$35,200,000

Notes and Assumptions
December 31, 2020
1. Options were granted/written in 2019 that give the holder the right to purchase 100,000 common shares at $8 per share. The average market price of the company’s common shares during 2020 was $14 per share. The options expire in 2028 and no options were exercised in 2020.
2. The 4% bonds were issued in 2019 at face value. The 6% bonds were issued on June 1, 2020, at face value. Each bond has a face value of $1,000 and is convertible into 100 common shares.
3. The convertible preferred shares were issued at the beginning of 2020. Each share of preferred is convertible into one common share.
4. The average income tax rate is 25%.
5. The common shares were outstanding during the entire year.
6. Preferred dividends were not declared in 2020.
7. Net income was $2,500,000 in 2020.
8. No bonds or preferred shares were converted during 2020.
Calculate the income effect of the dividends on preferred shares.
Dividends on preferred shares $
Calculate basic earnings per share for 2020. (Round answer to 2 decimal places, e.g. 15.25.)
Basic EPS $
Determine an incremental per share effect for $0.68 preferred shares. (Round answer to 2 decimal places, e.g. 15.25.)
Potentially dilutive security Incremental
Numerator Effect		 Incremental
Denominator Effect		 EPS
$0.68 Preferred shares $ $
Calculate the proceeds from assumed exercise of 100,000 options.
Proceeds from exercise of options $

Calculate the incremental shares oustanding upon the exercise of options.
The incremental shares oustanding upon the exercise of options
Calculate the after-tax interest paid on the 4% bonds.
After-tax interest on 4% bonds converted $

In: Accounting

An excerpt from the statement of financial position of Twilight Limited follows: TWILIGHT LIMITED Selected Statement...

An excerpt from the statement of financial position of Twilight Limited follows:

TWILIGHT LIMITED
Selected Statement of Financial Position Information
At December 31, 2020
Long-term debt
Notes payable, 10% $5,000,000
4% convertible bonds payable 2,000,000
6% convertible bonds payable

3,000,000
Total long-term debt

$10,000,000
Shareholders' equity
$0.68 cumulative, no par value, convertible preferred shares
(unlimited number of shares authorized, 600,000 shares
issued and outstanding)		 $3,000,000
Common shares, no par value (8,000,000 shares authorized,
3,000,000 shares issued and outstanding)		 25,000,000
Contributed surplus 200,000
Retained earnings

7,000,000
Total shareholders’ equity

$35,200,000


Notes and Assumptions
December 31, 2020

1. Options were granted/written in 2019 that give the holder the right to purchase 100,000 common shares at $8 per share. The average market price of the company’s common shares during 2020 was $14 per share. The options expire in 2028 and no options were exercised in 2020.
2. The 4% bonds were issued in 2019 at face value. The 6% bonds were issued on June 1, 2020, at face value. Each bond has a face value of $1,000 and is convertible into 100 common shares.
3. The convertible preferred shares were issued at the beginning of 2020. Each share of preferred is convertible into one common share.
4. The average income tax rate is 25%.
5. The common shares were outstanding during the entire year.
6. Preferred dividends were not declared in 2020.
7. Net income was $2,500,000 in 2020.
8. No bonds or preferred shares were converted during 2020.
Determine an incremental per share effect for 4% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.)
Potentially dilutive security Incremental
Numerator Effect		 Incremental
Denominator Effect		 EPS
4% Bonds $ $
Calculate the after-tax interest paid on the 6% bonds.
After-tax interest on 6% bonds converted $
Determine an incremental per share effect for 6% bonds. (Round earnings per share to 2 decimal places, e.g. 15.25.)
Potentially dilutive security Incremental
Numerator Effect		 Incremental
Denominator Effect		 EPS
6% Bonds $ $
Rank the potentially dilutive securities from most dilutive to least dilutive.
4% Bonds
6% Bonds
$0.68 Preferred shares
Options
Calculate diluted earnings per share for 2020. (Round earnings per share to 2 decimal places, e.g. 15.25.)
Numerator Denominator EPS
Basic $ $
Sub Total
Sub Total
Sub Total

In: Accounting

Suppose the incidence rate of myocardial infarction (MI) was 5 per 1000 among 45- to 54-year-old...

Suppose the incidence rate of myocardial infarction (MI)
was 5 per 1000 among 45- to 54-year-old men in 2000.
To look at changes in incidence over time, 5000 men in this
age group were followed for 1 year starting in 2010. Fifteen
new cases of MI were found.

7.12 Using the critical-value method with α = .05, test the
hypothesis that incidence rates of MI changed from 2000
to 2010.


7.13 Report a p-value to correspond to your answer to
Problem 7.12.


Suppose that 25% of patients with MI in 2000 died within
24 hours. This proportion is called the 24-hour case-fatality
rate.


7.14 Of the 15 new MI cases in the preceding study,
5 died within 24 hours. Test whether the 24-hour case fatality
rate changed from 2000 to 2010.

7.15 Suppose we eventually plan to accumulate 50 MI
cases during the period 2010–2015. Assume that the
24-hour case-fatality rate is truly 20% during this period.
How much power would such a study have in distinguishing
between case-fatality rates in 2000 and 2010–2015

In: Statistics and Probability

Consider additional data for Archer-Daniels-Midland for fiscal years ending June 30, 2010 and 2011, in millions:...

Consider additional data for Archer-Daniels-Midland for fiscal years ending June 30, 2010 and 2011, in millions:

Fiscal Year End

(in millions)                June 30, 2011             June 30, 2010

Sales                          $80,676                       $61,682

Cost of goods sold      $76,376                      $57,839

Fiscal Year End

(in millions)                June 30, 2011             June 30, 2010

Accounts receivable   $9,816                        $6,122

Inventories                 $12,055                       $7,871

Accounts payable      $11,165                      $8,115

  1. Calculate the DSO, DIO, and DPO for fiscal years ending June 30, 2010, and 2011.
  1. How do the operating and cash conversion cycles compare for 2010 and 2011 with fiscal years ending in 2008 and 2009? What has changed and why?

Additional Information:

From the income statement, we need sales and cost of goods sold:

(in millions)                                 Fiscal Year End June 30, 2009

Sales                                          $69,207

Cost of goods sold                       $65,118

From the balance sheet we need the balances in receivables, inventories, and accounts payables:

                                                   Fiscal Year End

(in millions)                           June 30, 2009                        June 30, 2008

Accounts receivable                    $7,311                                     $11,483

Inventories                                 $7,782                                      $10,160

Accounts payable                       $5,786                                     $6,544

In: Finance

Horizon Corporation manufactures personal computers. The company began operations in 2012 and reported profits for the...

Horizon Corporation manufactures personal computers. The company began operations in 2012 and reported profits for the years 2012 through 2019. Due primarily to increased competition and price slashing in the industry, 2020’s income statement reported a loss of $20 million. Just before the end of the 2021 fiscal year, a memo from the company’s chief financial officer (CFO) to Jim Fielding, the company controller, included the following comments:

“If we don’t do something about the large amount of unsold computers already manufactured, our auditors will require us to record a write-down. The resulting loss for 2021 will cause a violation of our debt covenants and force the company into bankruptcy. I suggest that you ship half of our inventory to J.B. Sales, Inc., in Oklahoma City. I know the company’s president, and he will accept the inventory and acknowledge the shipment as a purchase. We can record the sale in 2021 which will boost our loss to a profit. Then J.B. Sales will simply return the inventory in 2022 after the financial statements have been issued.”

  1. Understand the reporting effect: What is the effect on income before taxes of the sales transaction requested by the CFO?

2. Specify the options: If Jim does not record the sales transaction requested by the CFO, what is the effect on total assets and income before taxes of the inventory write-down?

3. Identify the impact: Are investors and creditors potentially harmed by the CFO’s suggestion?

4. Make a decision: Should Jim follow the CFO’s suggestion?

In: Finance

AP6-5 Horizon Corporation manufactures personal computers. The company began operations in 2012 and reported profits for...

AP6-5 Horizon Corporation manufactures personal computers. The company began operations in 2012 and reported profits for the years 2012 through 2019. Due primarily to increased competition and price slashing in the industry, 2020’s income statement reported a loss of $20 million. Just before the end of the 2021 fiscal year, a memo from the company's chief financial officer(CFO) to Jim Fielding, company controller, included the following comments:
If we don't do something about the large amount of unsold computers already manufactured, our auditors will require us to record a writo down. The resulting loss for 2021 will cause a violation of our debt covenants and force the company into bankruptcy.I suggest that you ship half of our inventory to J.B. Sales, Inc., in Oklahoma City. I know the company's president, and he will accept the inventory and acknowledge the shipment as a purchase. We can record the sale in 2021 whih will boost our loss to a profit. Then J.B Sales will simply return the inventory in 2022 after the financial statements have boon issued.
Required:
1.undersrand the report effect : what is the effect on income before taxes of the sales transaction requested by CFO?
2. Specify the options: if Jim does not record the sales transaction requested by CFO , what is the effect on total asset and income before taxes of the inventory write-down?
3. Identify the impact: are inventors and creditor potentially harmed by the the CFO’s suggestion?
4. Make a decision:should Jim follow the CFO suggestion?

In: Accounting

Kurz Manufacturing is currently an​ all-equity firm with 17 million shares outstanding and a stock price...

Kurz Manufacturing is currently an​ all-equity firm with 17 million shares outstanding and a stock price of $ 14.00 per share. Although investors currently expect Kurz to remain an​ all-equity firm, Kurz plans to announce that it will borrow $ 55 million and use the funds to repurchase shares. Kurz will pay interest only on this​ debt, and it has no further plans to increase or decrease the amount of debt. Kurz is subject to a 35 % corporate tax rate.  

a. What is the market value of​ Kurz's existing assets before the​ announcement?

b. What is the market value of​ Kurz's assets​ (including any tax​ shields) just after the debt is​ issued, but before the shares are​ repurchased?

c. What is​ Kurz's share price just before the share​ repurchase? How many shares will Kurz​ repurchase?

d. What are​ Kurz's market value balance​ sheet, and share price after the share​ repurchase?

a. What is the market value of​ Kurz's existing assets before the​ announcement?

The market value of​ Kurz's existing assets before the announcement is ​$________ million. ​ (Round to one decimal​ place.)

b. What is the market value of​ Kurz's assets​ (including any tax​ shields) just after the debt is​ issued, but before the shares are​ repurchased?

The market value of​ Kurz's assets​ (including any tax​ shields) just after the debt is​ issued, but before the shares are repurchased is

​$_________ million.  ​(Round to one decimal​ place.)

c. What is​ Kurz's share price just before the share​ repurchase? How many shares will Kurz​ repurchase?

​Kurz's share price just before the share repurchase is $________ (Round to the nearest​ cent.) The number of shares that Kurz will repurchase is _______ million. ​ (Round to two decimal​ places.)

d. What are​ Kurz's market value balance​ sheet, and share price after the share​ repurchase?

The market value of assets is $________ million.  ​(Round to one decimal​ place.)

The debt is ​$_________ million. ​ (Round to the nearest​ integer.)

The market value of equity is ​$_______ million.  (Round to one decimal​ place.)

Share price after repurchase is $_______ (Round to two decimal places​).

In: Finance

On January 1, 2018, David Corp. grants options that permit key executives to acquire 32 million...

On January 1, 2018, David Corp. grants options that permit key executives to acquire 32 million of the company's $1 par common shares within the next 8 years, but not before December 31, 2021 (the vesting date). The exercise price is $27 per share. The fair value of the options, estimated by an appropriate option-pricing model, is $7 per option.

David Corp.'s policy is to estimate option forfeitures. Originally, a forfeiture rate of 3% was expected. During 2020, the third year, David Corp. revised its estimate of forfeitures from 3% to 7%.

What are the journal entry for 2018, 2019, 2020 and 2021 to record compensation expense, considering expected forfeitures.

In: Accounting

Under its executive stock option plan, Q Corporation granted options on January 1, 2018, that permit...

Under its executive stock option plan, Q Corporation granted options on January 1, 2018, that permit executives to purchase 15 million of the company's $1 par common shares within the next eight years, but not before December 31, 2020 (the vesting date). The exercise price is the market price of the shares on the date of grant, $18 per share. The fair value of the options, estimated by an appropriate option pricing model, is $4 per option. No forfeitures were anticipated; however, unexpected turnover during 2019 caused the forfeiture of 5% of the stock options. Ignoring taxes, what is the effect on earnings in 2020? Multiple Choice $18.5 million. $18 million. $19 million. $20 million.

In: Accounting

1. Determine whether Rolle's Theorem can be applied to f on the closed interval [a, b]....

1. Determine whether Rolle's Theorem can be applied to f on the closed interval

[a, b].

(Select all that apply.)

f(x) =
x2− 4x − 5
x + 5
,    [−1, 5]
Yes, Rolle's Theorem can be applied.No, because f is not continuous on the closed interval [a, b].No, because f is not differentiable in the open interval (a, b).No, because f(a) ≠ f(b).


If Rolle's Theorem can be applied, find all values of c in the open interval

(a, b)

such that

f '(c) = 0.

(Enter your answers as a comma-separated list. If Rolle's Theorem cannot be applied, enter NA.)

c =

2. The height of an object t seconds after it is dropped from a height of 230 meters is

s(t) = −4.9t2 + 230.
(a) Find the average velocity of the object during the first 6 seconds.
m/s

(b) Use the Mean Value Theorem to verify that at some time during the first 6 seconds of fall, the instantaneous velocity equals the average velocity. Find that time.
s

In: Math