Supposed that you represent the shareholder board of Apple Inc. and decide to elicit high CEO effort to help the company: What will be your incentive contract plan (e.g. bonus, stock option…etc.)?

2) Given your answer in a, if Apple does not perform as expected (say iphone X is not popular), what criticism of the incentive contract plan can you see?

Use the adjusting journal entry information to prepare the formal adjusting journal entries as of December 31, 2020. Remember to skip a line between each adjusting journal entry and use AJ1, AJ2, AJ3, etc, instead of the actual date.

Information for Year End Adjusting Journal Entries December 31, 2020

1) The building(cost of $180,000)was purchased on January 1, 2019 and it is expected to have a useful life of 30 years with no salvage value. Depreciation expense has been recorded through November 30, 2020.

2) Office equipment(cost of $130,000)as of November 30, 2020 was purchased on January 1, 2015. The office equipment is expected to have a useful life of 10 years with $10,000 salvage value. Depreciation expense has been recorded through November 30, 2020.

3) Insurance in the amount of $4,800 was paid on April 1, 2020 covering the period of April 1, 2020 through March 31, 2021. The insurance expense and prepaid insurance accounts have been properly adjusted through November 30, 2020.

4) A December 31, 2020 count of supplies showed $3,300 of supplies remaining on hand.

5) Salaries earned but unpaid as of December 31, 2020 amount to $31,500.

6) The company has earned one of the three months rent previously received on December 1 from Bullwinkle Inc.

7) Interest at an annual rate of 3¼% is owed for the month of December 2020 on the Mortgage Note Payable due in 5 years (round interest to nearest whole dollar).

8) The savings account was opened on December 31, 2019. It earns interest at an annual rate of 1.5%, compounded monthly. Interest has been received and recorded through November 30, 2019. The bank notified the company that interest for the month of December was deposited in the savings account on December 31, 2020(round interest to the nearest dollar).

9) Uncollectible accounts are expected to be $11,500 based on net sales.

10) Income taxes owed for the year amounted to $15,000.

On November 14, Thorogood Enterprises announced that the public and acrimonious battle with its current CEO had been resolved. Under the terms of the deal, the CEO would step down from his position immediately. In exchange, he was given a generous severance package. Given the information below, calculate the cumulative abnormal return (CAR) around this announcement. Assume the company has an expected return equal to the market return. (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations. Round your answers to 1 decimal place.)

HARLAND CORP has been in existence for 45 years. Over the past, 6 years the stock price has stagnated and remained between $22.15 and $22.82. The CEO, who started the company, believes that the stock price needs to be higher, and the best way to do that is to pay a dividend to increase the demand for the stock. The company has never paid a dividend in their history. The CEO needs to determine what type of dividend policy to follow, and how much the first dividend should be, so he comes to you for advice. He provides you with the following historical information as it relates to the company’s earnings per share (as an aside, dividends per share should not exceed EPS unless the firm is liquidating):

YEAR                                                      EPS

                2017                                                       $2.36

                2016                                                       $2.12

                2015                                                       $0.81

                2014                                                       $2.01

                2013                                                       $2.09

                2012                                                       $2.44

                2011                                                       $2.31

                2010                                                       $2.01

You are to prepare a brief memo (1 page, single-spaced) as to what dividend policy you recommend, why you recommend it, what initial dividend amount you recommend, and why you recommend that amount.

You're a consultant hired by a small company that installs GPS units in semi trucks and school buses. the company is considering investing in a project to manufacture the units themselves (instead of purchasing the new units). they've used their weighted average cost of capital (WACC) of 15 percent to determine that the project has a positive NPV of $3,000.

The CFO and CEO dont agree. the CEO doesnt believe that the WACC is the correct number because the project is risky: its a brand-new venture. The CFO argues that the WACC alread incorporates risk, and the cost of new funds at the source (debt and equity financing) is the only thing that matters.

A. what is WACC? whats the formula?who is correct? why?

B. WHat are two different approaches to determine an appropriate cost of capital that appriately accounts for the different risk? Walk us through the steps in how youwould you proceed. (keep in mind theres more than one correct answer) then identify an advantage and disadvantage of each of these approaches. Lastly, how would you determine if this project should be accepted or erejected ? (no actual computations are needed)

On November 14, Thorogood Enterprises announced that the public and acrimonious battle with its current CEO had been resolved. Under the terms of the deal, the CEO would step down from his position immediately. In exchange, he was given a generous severance package. Given the information below, calculate the cumulative abnormal return (CAR) around this announcement. Date Market Return (%) Company Return (%) Nov 7 1.7 1.3 Nov 8 1.5 1.3 Nov 9 -1.4 -0.2 Nov 10 −0.6 −0.5 Nov 11 2.5 1.0 Nov 14 −1.3 3.0 Nov 15 0.1 0.1 Nov 16 0.9 1.9 Nov 17 1.4 0.8 Nov 18 −1.4 0.0 Nov 21 1.5 0.2 Assume the company has an expected return equal to the market return. (A negative value should be indicated by a minus sign. Leave no cells blank - be certain to enter "0" wherever required. ) What is the percentage cumulative abnormal return (CAR) on Day "-2", which is relative to the announcement date of the event?

Ernest and Young conducts its Decision-making in one of the most important aspects of their services to small businesses, but the process of arriving at a decision is quite precise, it yields the best results for their client executive team as they conduct major decisions. There are a few smaller decisions that managers and staff members will make, sometimes without input. To ensure that decision-making is uniform throughout your organization, the implementation process is carefully followed. 7. Create a decision-making model through a diagram to show how your company makes a decision. 8. Provide three examples to how a CEO can participate in a decision-making process. 9. Based on what we discussed in class, in your opinion, list three examples of errors in decision making.

7. Create a decision-making model through a diagram to show how your company makes a decision.

8. Provide three examples to how a CEO can participate in a decision-making process.

9. Based on what we discussed in class, in your opinion, list three examples of errors in decision making.

The March 31, 2019 balance sheet of Kalakaua Corporation had Accounts Receivable of $525,000 and a credit balance in Allowance for Doubtful Accounts of $33,000. During the year ended March 31, 2020, the following transactions occurred: sales on account $1,550,000; sales returns & allowances, $120,000; collections from customers, $1,350,000; accounts written off $41,000; previously written off accounts of $5,000 were collected.

REQUIRED:

1.Using the above information, what is the balance of Accounts Receivable at March 31, 2020?

2.Suppose that it is the company policy to use the percentage of sales basis to estimate bad debts expense and anticipates 3% of net sales to be uncollectible, what is the adjusting entry at March 31, 2020? (Show calculations.)

3.Ignore the entry made in b) above.

Assume that it is company policy to use the aging of receivables basis to estimate bad debt expense. It determines that uncollectible accounts are expected to be $38,400. What is the adjusting entry at March 31, 2020? Assume the March 31, 2020 balance of Accounts Receivable is $575,000 and Allowance for Doubtful Accounts has an existing balance of $3,000 (cr). (Show calculations)

Pronghorn Inc. and Culver Corporation are Canadian fertilizer companies. The following information has been taken from their financial statements for the fiscal years ended December 31. All figures are in millions of dollars.

1) Calculate both companies’ gross profit margin and profit margin for the years 2019 through 2021. (Round answers to 1 decimal place, e.g.52.7%.)

2)

Determine which company had the best performance for profitability in each year.

3) Using horizontal analysis, calculate the percentage change between the following years: 2019 and 2020; 2020 and 2021 for both companies. (Round answers to 1 decimal place, e.g.52.7%.)

4) Using the information in the horizontal analysis, identify the company that had the most improvement in net sales, gross profit margin and profit margin in 2020 and 2021.