Bonita Inc. had the following long-term receivable account balances at December 31, 2019.

Transactions during 2020 and other information relating to Bonita’s long-term receivables were as follows.

Duncan Street Company (DSC), a British company, is considering establishing an operation in the United States to assemble and distribute smart speakers. The initial investment is estimated to be 25,000,000 British pounds (GBP), which is equivalent to 30,000,000 U.S. dollars (USD) at the current exchange rate. Given the current corporate income tax rate in the United States, DSC estimates that total after-tax annual cash flow in each of the three years of the investment’s life would be US$10,000,000, US$12,000,000, and US$15,000,000, respectively. However, the U.S. national legislature is considering a reduction in the corporate income tax rate that would go into effect in the second year of the investment’s life and would result in the following total annual cash flows: US$10,000,000 in year 1, US$14,000,000 in year 2, and US$18,000,000 in year 3. DSC estimates the probability of the tax rate reduction occurring at 50 percent. DSC uses a discount rate of 12 percent in evaluating potential capital investments. Present value factors at 12 percent are as follows: Period PV Factor 1. . . . . . 0.893 2. . . . . . 0.797 3. . . . . . 0.712 The U.S. operation will distribute 100 percent of its after-tax annual cash flow to DSC as a dividend at the end of each year. The terminal value of the investment at the end of three years is estimated to be US$25,000,000. The U.S. withholding tax on dividends is 5 percent; repatriation of the investment’s terminal value will not be subject to U.S. withholding tax. Neither the dividends nor the terminal value received from the U.S. investment will be subject to British income tax. Exchange rates between the GBP and USD are forecasted as follows: Year 1 GBP 0.74 = USD 1.00 Year 2 GBP 0.70 = USD 1.00 Year 3 GBP 0.60= USD 1.00 Required:

A. Determine the expected net present value of the potential U.S. investment from a parent company perspective.

In 2015, a delivery company purchased a fleet of local delivery trucks for $175,000. These are 5 year assets. This company pays federal tax at a rate of 23% per year. (a) Develop a MACRS depreciation table for this asset, and compute the post-tax income of this company using their gross sales income given below. (b) Is this a good investment if MARR = 25% per year? (c) The company sold the trucks in September 2020 for $18,000. What are the tax implications? Year Gross Annual Income di Di Taxable Income Tax paid Post-Tax income 2015 $250,000 2016 $350,000 2017 $30,000 2018 $150,000 2019 $165,000 2020 $65,000

I JUST NEED THE ANSWER, THX.

Three different companies each purchased trucks on January 1, 2018, for $80,000. Each truck was expected to last four years or 250,000 miles. Salvage value was estimated to be $4,000. All three trucks were driven 78,000 miles in 2018, 55,000 miles in 2019, 50,000 miles in 2020, and 70,000 miles in 2021. Each of the three companies earned $69,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation.
Answer each of the following questions. Ignore the effects of income taxes.

a-1. Calculate the net income for 2018? (Round "Per Unit Cost" to 3 decimal places.)

a-2. Which company will report the highest amount of net income for 2018?

b-1. Calculate the net income for 2021? (Round "Per Unit Cost" to 3 decimal places.)

b-2. Which company will report the lowest amount of net income for 2021?

c-1. Calculate the book value on the December 31, 2020, balance sheet? (Round "Per Unit Cost" to 3 decimal places.)

c-2. Which company will report the highest book value on the December 31, 2020, balance sheet?

d-1. Calculate the retained earnings on the December 31, 2021, balance sheet?

d-2. Which company will report the highest amount of retained earnings on the December 31, 2021, balance sheet?

E.Which company will report the lowest amount of cash flow from operating activities on the 2020 statement of cash flows?

Consolidated amounts when affiliate's debt is acquired from non-affiliate

Assume that a Parent company owns 100 percent of its Subsidiary. On December 31, 2013, the Parent company had a $400,000 (face) bond payable outstanding with a carrying value of $420,000. The bond was originally issued to an unaffiliated company. On that same date, the Subsidiary acquired the bond for $398,000. During 2013, the Parent company reported $180,000 of (pre-consolidation) income from its own operations (i.e., prior to any equity method adjustments by the Parent company) and after recording interest expense. The Subsidiary reported $100,000 of (pre-consolidation) income from its own operations. Related to the bond during 2013, the parent reported interest expense of $55,000. The unaffiliated company that held the bond prior to December 31, 2013 recorded interest income of $55,000. Determine the following amounts that will appear in the 2013 consolidated income statement:

a. Interest income from bond investment

b. Interest expense on bond payable

c. Gain (loss) on constructive retirement of bond payable Use a negative sign with answer to indicate a loss.

d. Consolidated net income

Study the following items related to transactions during the year to September 30, 2020 for Thompson’s Tours’ Inc. All transactions are reported on the financial statements in $XCD.

I. A bank overdraft of $200,000 in a chequing account at St Kitts National Bank.

II. A saving account with a balance of $400,000 at Open Campus Bank and chequing account with an overdraft of $100,000 at the same bank repayable on demand.

III. The Operation Manager was given a salary advance of $2,000 on August 24, 2020 and this amount was deducted from his October salary.

IV. CAD$3,045 on hand from tips up to March 31, 2020, its pre-COVID operations when the exchange rate was CAD$1 = $2.01 XCD. On September 30, 2020, the exchange rate was CAD$1 = $1.95 XCD

V. Special Edition Independence postage stamps on hand valued at $200.

VI. Cash holdings of US$100,000, the exchange rate on September 30, 2020 is $2.70.

VII. Petty cash on hand valued at $1,500.

VIII. A cheque in the amount of $5,000 and dated October 23, 2020 was received from a customer on September 27, 2020.

IX. Short term 60 days treasury bill valued at $35,000.

X. Thompson’s Tours’ Inc. invested $1,000,000 in a money market fund with Mona Campus Bank on July 10, 2020 which will mature on October 9, 2020.

Required:

a. List all items from above that would NOT be classified as cash or cash equivalents in the current asset section of Thompson’s Tours’ Inc. Statement of Financial Position as at September 30, 2020? State how each of these items would then be classified in the financials.

b. Prepare the necessary journal entry at September 30, 2020 to account for Item IV.

C. Using the information in B above, calculate the cash and cash equivalent value that would appear in Thompson’s Tours’ Inc. Statement of Financial Position on September 30,2020.

Question 2 .

A. List two (2) policies a company may adopt to lessen the risk of uncollectible accounts and improve its cashflows. (1 mark)

B. Joseph Corporation a mobile phone wholesaler sells mobile phones to PhoneTech Ltd, a mobile phone retailer on August 1, 2020 for $500 each, the value of the sale is $50,000, with credit terms of 3/10, n/30. Assume the company uses the net method to record accounts receivables.

Required:

a. Prepare the journal entry to record the sale.

b. On August 8, 2020, collection on $15,000 of the sales was received from PhoneTech. Record the necessary journal entry for the cash received.

c. The remaining $35,000 of the sales was collected on August 28, 2020 from Phone Tech. Record the necessary journal entry for the transaction on this date.

Question 3

A. J & B Company uses the percentage of sales approach to estimate its uncollectible accounts. The company’s annual sales for its first financial year of operations ending July 31, 2020 was $500,000, cash sales contributed to 2% of the overall sales and the 3 accounts receivable balance at year end was $75,000. Based on industry expectations, it estimated that 3% of its credit sales would be uncollectible.

Required:

a. Calculate the bad debt expense at July 31, 2020.

b. Calculate the net receivable balance that would be reported in the Statement of Financial Position as at July 31, 2020.

B. Tosh and Sons Inc. uses the percentage of receivables approach to estimate its uncollectible accounts. The company had sales of $100,000 at the end of its financial year on June 30, 2020. The allowance for doubtful debts account had a debit balance of $400, the accounts receivable balance was $30,000at year end and the company estimates the uncollectible percentages as follows:

Current (1 - 30 days) $15,000 0.5%

31 - 60 days $10,000 2.0%

61 - 90 days $3,000 10.0%

Over 90 days $2000 60.0%

Required:

a. Calculate the bad debt expense at June 30, 2020.

b. Prepare the necessary journal entry to record the bad debt expense for the year.

C. During the financial year ending May 31, 2020 the Board of Directors of Chung Sa Corporation authorised the write off of a $3,000 two-year debt belonging to a previous customer Jap Inc. On July 2, 2020 Chung Sa Corporation received an electronic funds transfer from Jap Inc. in the amount of $3,000.

Required: Prepare all necessary journal entries to record this transaction.

Problem 3 MGMT 61000 Final Exam; Lynn Turner- PUID-00311127131 Pricing stock for Initial Public Offering Ten years ago, Video Toys began manufacturing and selling coin-operated arcade games. The company has done well in that dividends have been growing at a 15% compounded annual rate for the past five years. The last Dividend paid, which was just yesterday, was $1.50 per share. The annual growth rate of 15% is expected to be maintained for the next 3 years, after which dividends are expected to grow at half the rate for 1 year. Beyond that time, Video Toys' dividends are expected to grow at 5% per year. A. If the company was going to go public today, what would be the price per share that you think the public offer price should be if your required rate of return on equity is 18%? B. The company has a total of 10,000,000 shares. 5 million shares will be sold in the IPO and 5 million shares will remain in the possession of the founder, Mr. Strong. What is the total value of the company's equity after the IPO?

Starware Software was founded last year to develop software for gaming applications. The founder initially invested $ 800,000 and received 8 million shares of stock. Starware now needs to raise a second round of​ capital, and it has identified a venture capitalist who is interested in investing. This venture capitalist will invest $ 1.00 million and wants to own 20 % of the company after the investment is completed.

a. How many shares must the venture capitalist receive to end up with 20 % of the​ company? What is the implied price per share of this funding​ round?

b. What will the value of the whole firm be after this investment​ (the post-money​ valuation)?

a. How many shares must the venture capitalist receive to end up with 20 % of the​ company? What is the implied price per share of this funding​ round?

The venture capitalist will receive _____ million shares. ​ (Round to three decimal​ places.)

The implied price per share is ​$____per share.  ​(Round to the nearest​ cent.)

b. What will the value of the whole firm be after this investment​ (the post-money​ valuation)? The value of the firm will be ​$____million. ​ (Round to three decimal​ places.)

Pick any 2 questions and answer it ( answers should be half page long per question):

6. China is currently the world’s second largest economy. It is predicted to surpass the U.S. to become the biggest economy in the not-too-distant future. How does this development influence the strategic balance and the position of the United States?

7. In 1990, Congress imposed a luxury tax on yachts costing more than $100,000, along with similar taxes on a handful of other luxury goods. It was estimated that the new taxes would yield more than $31 million in revenue in 1991. However, the tax actually generated a bit more than half the amount, $16.6 million. Several years later, the Joint Economic Committee estimated that the tax on yachts had led to a loss of 7,600 jobs in the U.U. boating industry. Taking account of lost income taxes and increased unemployment benefits, the U.S. government actually came out $7.6 million behind in fiscal 1991 as a result of its luxury taxes- almost $ 39 million worse than the initial projection. Congress repealed the luxury tax on yachts in 1993. What went wrong?

8. What is the "invisible hand "? Explain how the invisible hand delivers an efficient market outcome.

9. How can a person argue that health care services in America are provided efficiently, but not fairly?

10. Bill Gates is a founder of Microsoft and the world's richest individual. Suppose Microsoft sells more software and Mr. Gates acquires another billion dollars in wealth. Simultaneously, suppose a burglar whose income is well below average broke into Bill Gates' house and stole a million dollars worth of antiques. Using the "it's not fair if the rules aren't fair" approach to fairness, is Mr. Gates' acquisition of additional wealth fair? Is the (poor) thief's acquisition fair?

1. On July 1, 2019 IT Corp acquired a machinery worth Php 2,500,000 from DIKO Co. Term of the contract calls for a downpayment of Php 500,000 and signing a 2 year 10% note payable for the balance. Interest is payable quarterly. The existing loan agreement does not carry a provision to refinance. During September, IT Corp was experiencing financial difficulty due to COVID-19 and was unable to pay the periodic Interest. a. What amount of current liability should IT Corp report in its December 31, 2019 balance sheet assuming DIKO Co. agreed at balance sheet date not to demand payment as a consequence of the breach? b. What amount of current liability should IT Corp report in its December 31, 2019 balance sheet assuming DIKO Co. agreed to provide a grace period ending at least twelve months to rectify the breach? 2. A truck owned and operated by BASICzxc Company was involved in an accident with an auto driven by Julian on January 12, 2019. BASICZxc Company received notice on April 24 2019 of a lawsuit for Php 800,000 damages for a personal injury suffered by Julian. BASICZXC
2. A truck owned and operated by BASICzxc Company was involved in an accident with an auto driven by Julian on January 12, 2019. BASICzxc Company received notice on April 24, 2019 of a lawsuit for Php 800,000 damages for a personal injury suffered by Julian. BASICzxc Company counsel believes it is reasonably possible that Julian will be successful against the company for an estimated amount in the range between Php 100,000 and Php 400,000. No amount within this range is a better estimate of potential damages than any other amount. It is expected that the lawsuit will be adjudicated in the latter part of 2020. What amount of loss should BASICzxc Company accrue at December 31, 2019?