In a test of the effectiveness of garlic for lowering​ cholesterol, 4747 subjects were treated with garlic in a processed tablet form. Cholesterol levels were measured before and after the treatment. The changes (before−​after) in their levels of LDL cholesterol​ (in mg/dL) have a mean of 5.25.2 and a standard deviation of 16.6. Construct a 99​%confidence interval estimate of the mean net change in LDL cholesterol after the garlic treatment. What does the confidence interval suggest about the effectiveness of garlic in reducing LDL​ cholesterol?

What is the confidence interval estimate of the population mean μ​?

A rectangular channel carries a flow at a velocity of 2.1 m/sec and at a depth of 2.1m. The tail end gate of the channel is suddenly closed. Find the height and speed of the surge. What would be the values of these quantities if the gate is partially closed to release half of the flow?

Using the numbers shown in parentheses, indicate how each separate question will affect the reconciliation of December 31, 2020. (Assume you are reconciling the balance per books and the balance per bank to the correct or adjusted balance). Write your answers on the space provided before each number. Use only CAPITAL LETTERS.

A. Add to bank balance
B. Deduct from the bank balance
C. Add to book balance
D. Deduct from book balance
E. No effect

1. Bank service charge for December, P 300, not recorded on books.

2. Checks totaling P 41,500 were outstanding at December 31, 2020.

3. Deposits totaling P 26,500 were in transit at December 31, 2020.

4. Check No. 601 dated November 30, 2020 was paid by the bank in December.

5. Check No. 607 for P 2,050 were recorded on the books as P 2,500.

6. A check from a customer was paid by the bank in December. It had been returned earlier in December for proper endorsement and was redeposited. No entry for the return or re-deposit had been made.


7. An interest charge was made to the account by the bank in error.

8. The December bank statement included the proceeds of a customer’s draft collected by the bank on December 30, 2020, but not recorded on the books.


9. Credit memorandum from the bank for December was not recorded in December. It was, however, recorded in January 2021.


10. A debit memo issued by the bank for P 450 recorded as a credit to cash.

The statement of comprehensive income of kolad plc, a publicly listed company, is as follows:

Statement of comprehensive income for the year ended 31 March 2020

The following supporting information is available:

1. Depreciation of £965,000 was charged (to cost of sales) for property, plant and equipment in the year ended 31 March 2020. An item of plant with a carrying value of £750,000 was sold at a profit of £65,000 during the year.

2. The following extracts from the statements of financial position for the years ended 31 March 2020 and 31 March 2019 are relevant:

YOU ARE REQUIRED TO:

1. Calculate the net cash flow from operating activities for kolad plc for the year to 31 March 2020 in accordance with IAS 7 Statement of cash flows using the indirect method.

2. Explain the characteristics of an item to be considered as a cash equivalent and give three examples of items that could be included as cash and cash equivalents in a statement of cash flows.

3. Profit is not a good indicator of performance as it can be changed to suit management’s needs.

Discuss whether, in your opinion, the statement of profit or loss or the statement of cash flows is a better indicator of a company’s performance.

CASE STUDY:

About Hewlett Packard Enterprise (HPE)… Technology innovation that fosters business transformation

We Are In the Acceleration Business We help customers use technology to slash the time it takes to turn ideas into value. In turn, they transform industries, markets and lives.
Some of our customers run traditional IT environments. Most are transitioning to a secure, cloudenabled, mobile-friendly infrastructure. Many rely on a combination of both. Wherever they are in that journey, we provide the technology and solutions to help them succeed
Technology That Fuels Transformation We make IT environments more efficient, productive and secure, enabling fast, flexible responses to a rapidly changing competitive landscape. We enable organisations to act quickly on ideas by delivering infrastructure that can be easily composed and recomposed to meet shifting demands so they can lead in today’s marketplace of disruptive innovation.
Solutions You Need to Succeed We deliver high-quality, high-value products, consulting and support services in a single package. That’s one of our principal differentiators. We have industry-leading positions in servers, storage, wired and wireless networking, converged systems, software, services and cloud. And with customised financing solutions and strategy, we can provide the right tech solutions for your unique business goals.
Innovating for Today and Tomorrow Hewlett Packard Enterprise has been in the innovation business for more than 75 years. Our vast intellectual property portfolio and global research and development capabilities are part of an innovation roadmap designed to help organisations of all sizes – from global enterprises to local startups – transition from traditional technology platforms to the IT systems of the future.

Hewlett Packard Enterprise Labs: Innovation That Fuels Growth The advanced research from Hewlett Packard Enterprise Labs changes the world. We’re a powerful innovation engine for Hewlett Packard Enterprise, our customers and our industry, delivering breakthrough technologies and pioneering revolutionary research. We address everything from IT trends to complex consumer and social challenges. That’s because our ideas and technology fuel the next generation of Hewlett Packard Enterprise products – and the next generation of technologists, teachers, physicians and artists At Hewlett Packard Enterprise, quality is everyone’s responsibility and it’s accelerating time to value. We are committed to continually improving and meeting requirements by embedding quality in everything we do. We earn customers’ trust by delivering exceptional experiences through partnering, innovation, and a bias for action. Newsroom Hewlett Packard Enterprise continually introduces new products and services, explores technology and market trends, and provides industry insight and best practices. Check out our latest news or contact the HPE media relations team
Internet of Things Powers Transformative Growth Internet of Things (IoT) will drive economic growth and efficiency with smarter homes, cars, factories, businesses, and entire cities. Governments can advance IoT adoption through public project deployments, increased spectrum availability, harmonization of global standards, and robust security and data protection
High-Performance Computing Solves Complex Problems Public-private collaboration and R&D investments are critical to leap to the next level of exascale computing and to maintain U.S. economic competitiveness through leadership in High-Performance Computing
Connectivity Makes It All Possible Spectrum availability is essential to the increasingly networked world. Campus connectivity allows innovative delivery of important public services, such as education and healthcare.
Tax Policies Foster Competitiveness Tax policies drive economic growth and job creation. U.S. tax reform should focus on achieving global competitiveness and encouraging R&D
Market Access Helps Us Reach Our Customers Improved market access enables our technologies to reach global customers. Trade agreements must reduce barriers and reflect the digital economy Sustainability Guides Our Approach Sustainability is part of Hewlett Packard Enterprise's DNA and guides our operations, innovation strategy, and employee engagement. Our sustainable technologies benefit our company, our customers, and our world. We encourage organisations to consider sustainability as an integral factor in technology decisions to meeting the data needs of the future Edge-centric, Cloud-enabled and Data-driven We live in a world where everything computes. Where technology, apps and data are driving digital transformation, reshaping markets and disrupting every industry. In this world, success favours enterprises that can invent, reinvent and deliver new outcomes at warp speed. Join us to explore the hottest technology trends and realise a vision for the future enterprise that will advance the way we live and work. You’ll find it all at Hewlett Packard Enterprise Discover 2018 Madrid

HPE Discover 2018: Madrid, 27 – 29 November Four powerful reasons to attend:

1. Insight Accelerate your digital transformation. Explore new trends, strategies and opportunities at the General Session, breakouts and one-on-one meetings. 2. Connection Achieve lasting success through shared talent and strong collaboration. Build career boosting relationships with peers, sponsors, partners and Hewlett Packard Enterprise experts.

3. Knowledge Learn the best of what's been accomplished before. Grow organizational strength through training, workshops and Hands-on Labs. 4. Enjoyment Focus on our rich agenda and networking opportunities by day, and enjoy a reward by night at the HPE Discover 2018 Celebration, with superb food and beverages.(www.google.com)

QUESTION

HPE focuses on planning. Debate this assertion by making reference to the case study. In your answer pay attention to the strengths and weaknesses of planning.   

QUESTION TWO

CASE STUDY: [45]

About Hewlett Packard Enterprise (HPE)… Technology innovation that fosters business transformation

We Are In the Acceleration Business We help customers use technology to slash the time it takes to turn ideas into value. In turn, they transform industries, markets and lives.
Some of our customers run traditional IT environments. Most are transitioning to a secure, cloudenabled, mobile-friendly infrastructure. Many rely on a combination of both. Wherever they are in that journey, we provide the technology and solutions to help them succeed
Technology That Fuels Transformation We make IT environments more efficient, productive and secure, enabling fast, flexible responses to a rapidly changing competitive landscape. We enable organisations to act quickly on ideas by delivering infrastructure that can be easily composed and recomposed to meet shifting demands so they can lead in today’s marketplace of disruptive innovation.
Solutions You Need to Succeed We deliver high-quality, high-value products, consulting and support services in a single package. That’s one of our principal differentiators. We have industry-leading positions in servers, storage, wired and wireless networking, converged systems, software, services and cloud. And with customised financing solutions and strategy, we can provide the right tech solutions for your unique business goals.
Innovating for Today and Tomorrow Hewlett Packard Enterprise has been in the innovation business for more than 75 years. Our vast intellectual property portfolio and global research and development capabilities are part of an innovation roadmap designed to help organisations of all sizes – from global enterprises to local startups – transition from traditional technology platforms to the IT systems of the future.

Hewlett Packard Enterprise Labs: Innovation That Fuels Growth The advanced research from Hewlett Packard Enterprise Labs changes the world. We’re a powerful innovation engine for Hewlett Packard Enterprise, our customers and our industry, delivering breakthrough technologies and pioneering revolutionary research. We address everything from IT trends to complex consumer and social challenges. That’s because our ideas and technology fuel the next generation of Hewlett Packard Enterprise products – and the next generation of technologists, teachers, physicians and artists At Hewlett Packard Enterprise, quality is everyone’s responsibility and it’s accelerating time to value. We are committed to continually improving and meeting requirements by embedding quality in everything we do. We earn customers’ trust by delivering exceptional experiences through partnering, innovation, and a bias for action. Newsroom Hewlett Packard Enterprise continually introduces new products and services, explores technology and market trends, and provides industry insight and best practices. Check out our latest news or contact the HPE media relations team
Internet of Things Powers Transformative Growth Internet of Things (IoT) will drive economic growth and efficiency with smarter homes, cars, factories, businesses, and entire cities. Governments can advance IoT adoption through public project deployments, increased spectrum availability, harmonization of global standards, and robust security and data protection
High-Performance Computing Solves Complex Problems Public-private collaboration and R&D investments are critical to leap to the next level of exascale computing and to maintain U.S. economic competitiveness through leadership in High-Performance Computing
Connectivity Makes It All Possible Spectrum availability is essential to the increasingly networked world. Campus connectivity allows innovative delivery of important public services, such as education and healthcare.
Tax Policies Foster Competitiveness Tax policies drive economic growth and job creation. U.S. tax reform should focus on achieving global competitiveness and encouraging R&D
Market Access Helps Us Reach Our Customers Improved market access enables our technologies to reach global customers. Trade agreements must reduce barriers and reflect the digital economy Sustainability Guides Our Approach Sustainability is part of Hewlett Packard Enterprise's DNA and guides our operations, innovation strategy, and employee engagement. Our sustainable technologies benefit our company, our customers, and our world. We encourage organisations to consider sustainability as an integral factor in technology decisions to meeting the data needs of the future Edge-centric, Cloud-enabled and Data-driven We live in a world where everything computes. Where technology, apps and data are driving digital transformation, reshaping markets and disrupting every industry. In this world, success favours enterprises that can invent, reinvent and deliver new outcomes at warp speed. Join us to explore the hottest technology trends and realise a vision for the future enterprise that will advance the way we live and work. You’ll find it all at Hewlett Packard Enterprise Discover 2018 Madrid

HPE Discover 2018: Madrid, 27 – 29 November Four powerful reasons to attend:

1. Insight Accelerate your digital transformation. Explore new trends, strategies and opportunities at the General Session, breakouts and one-on-one meetings. 2. Connection Achieve lasting success through shared talent and strong collaboration. Build career boosting relationships with peers, sponsors, partners and Hewlett Packard Enterprise experts.

3. Knowledge Learn the best of what's been accomplished before. Grow organizational strength through training, workshops and Hands-on Labs. 4. Enjoyment Focus on our rich agenda and networking opportunities by day, and enjoy a reward by night at the HPE Discover 2018 Celebration, with superb food and beverages.(www.google.com)

QUESTIONS

HPE focuses on planning. Debate this assertion by making reference to the case study. In your answer pay attention to the strengths and weaknesses of planning.   

Q.4.2

In the 2020 fiscal year, Company B reported an accounting profit of $1,000. In the same year, the accounting depreciation expense for plant was $150, while the tax deduction for plant depreciation was $200. There was no other difference between accounting and tax in the year. In the 2019 fiscal year, the company recorded a tax loss ($300) and recognized a deferred tax asset in respect of this tax loss. In the 2020 fiscal year, the company reduced the taxable profit by recouping the tax losses carried forward. The company does not set off deferred tax liabilities and assets. The corporate tax rate is 30%.

1. Required: Provide the journal entries for the current tax adjustment. Workings (or narrations) are not required.

2. Now assume that Company B’s accounting profit in the 2020 fiscal year includes $55 of government grant which is exempt from tax. Also, assume that tax losses carried forward must be offset against any exempt income before being used to reduce taxable profit.

Required: Under these additional assumptions, provide the journal entries for the current tax adjustment. Workings (or explanations) are not required.

Harry Potter Inc., information for 2019:

1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $75,000.

This difference will reverse in equal amounts of $25,000 over the years 2020–2021 .

2. Interest received on municipal bonds was $24,000. 3. Rent collected in advance on January 1, 2019, totaled $45,000 for a 3-year period. Of this amount, $30,000 was reported as unearned at December 31, 2019, for book purposes.

4. The tax rates are 20% for 2019 and 30% for 2020 and subsequent years. 5. Income taxes of $270,000 are due per the tax return for 2019.

6. No deferred taxes existed at the beginning of 2019.

Required

(a) Compute taxable income for 2019.

(b) Compute pretax financial income for 2019.

(c) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2019 and 2020. Assume taxable income was $760,000 in 2019 (d) Prepare the income tax expense section of the income statement for 2019 , beginning with “Income before income taxes.”

Free cash flow valuation   Nabor Industries is considering going public but is unsure of a fair offering price for the company. Before hiring an investment banker to assist in making the public​ offering, managers at Nabor have decided to make their own estimate of the​ firm's common stock value. The​ firm's CFO has gathered data for performing the valuation using the free cash flow valuation model.

The​ firm's weighted average cost of capital is

13 %

and it has

$2,480,000

of debt at market value and

$500,000

of preferred stock at its assumed market value. The estimated free cash flows over the next 5​ years, 2016 through​2020, are given in the​ table,

. Beyond 2020 to​ infinity, the firm expects its free cash flow to grow by

5 %

annually.

a.  Estimate the value of Nabor​ Industries' entire company by using the free cash flow valuation

model.

a.  The value of Nabor​ Industries' entire company is

​$ ? nothing.​(Round to the nearest​ dollar.)