Accounting equation

Inspirational Inc. is a motivational consulting business. At the end of its accounting period, October 31, 20Y2, Inspirational has assets of $5,700,000 and liabilities of $3,000,000.

Using the accounting equation and considering each case independently, determine the following amounts. Round your answers to the nearest dollar.

A. Stockholders' equity as of October 31?

B. Stockholders’ equity as of October 31, 20Y3, assuming that assets increased by $850,000 and liabilities increased by $250,000 during 20Y3?

C. Stockholders’ equity as of October 31, 20Y3, assuming that assets decreased by $800,000 and liabilities increased by $280,000 during 20Y3?

D. Stockholders’ equity as of October 31, 20Y3, assuming that assets increased by $370,000 and liabilities decreased by $90,000 during 20Y3?

E. Net income (or net loss) during 20Y3, assuming that as of October 31, 20Y3, assets were $8,000,000, liabilities were $3,000,000, and no additional common stock was issued or dividends paid?

Answer for 8 and 9

On October 15, 2016, Koala, Inc. issued a 10 year bond (with a typical $1000 face value) that had an annual coupon value of $60. [We are assuming that the 2020 coupon has just been redeemed.]

• Initially, the bond was sold for the premium price of $1,025.
• On October 15, 2020, this bond was selling for only $975.
• The market rate of interest for a riskless corporate bond, of this maturity, was 4.5% on October 15, 2016, which reflects market expectations about future rates of inflation.
• The market rate of interest for a riskless corporate bond, of this maturity, was 4.0% on October 15, 2020, which reflects market expectations about future rates of inflation.

1. What was the nominal yield on this bond on October 15, 2016? 6% [To 1 decimal place.]

2. What was the current yield on this bond on October 15, 2016?5.36% [To 2 decimal places.]

3. What was the yield to maturity for this bond on October 15, 2016? 5.679% [To 3 decimal places.]

4. What was the risk premium for this bond on October 15, 2016? 1.179% [To 3 decimal places.]

5. What was the nominal yield on this bond on October 15, 2020?6% [To 1 decimal place.]

6. What was the current yield on this bond on October 15, 2020?6.15% [To 2 decimal place.]

7. What was the yield to maturity for this bond on October 15, 2020?6.346% [To 3 decimal places.]

8. What was the risk premium for this bond on October 15, 2020? [To 3 decimal places.]

9. It is now October 15, 2020 and suddenly the Federal Reserve announces a massive program to reduce inflation. Instantly, the market rate of interest for a riskless corporate bond that would apply to this bond, falls from 4.0% to 2.5%. If there is no change in the risk premium expected for this Koala, Inc. bond, what will be this bond’s yield to maturity? [To 3 decimal places.]

You are the supervisor on the audit of New Generation Club, a large suburban club in New South Wales. As well as the usual club facilities such as poker machines, bars and a bistro, the club also operates a large gymnasium, an indoor heated pool and a restaurant. The following dates are relevant to the current audit engagement: End of the reporting period 30 June 2019 Financial statements signed 15 August 2019 Auditor’s report signed 15 August 2019 Annual report mailed to members 22 August 2019 You are aware that the following independent and material events have occurred.

1. On 1 August 2019, you read the minutes of a board meeting held on 15 July 2019. The minutes note that merger discussions with a nearby bowling club are progressing smoothly and the matter will be put to a vote of members on 30 October 2019. Costs associated with putting the issue to a vote (currently not included in the 30 June 2019 financial statements) are approximately $50 000.

Required: For each event:

a. What are auditors’ responsibilities toward the subsequent event?

b. What are the audit evidences/procedures need to be obtained/performed to examine the effect on the financial statements for the year 30 June 2019?

An American Company borrowed 1million Canadian dollars to finance the construction of an office building when the Canadian dollar was worth $1 US. At 10% interest, the American Company expected to pay back 1.1 million Canadian dollars which would cost $1.1 million US dollars. However, based on changes in the value of the Canadian dollar, the American Company must pay $1,030,000 million US dollars to satisfy this debt. How will this $70,000 US dollar difference be shown on the American Company’s financial statements under GAAP? How would this have been shown if the American Company used IFRS? Which gives us more relevant information? Explain

sample of 16 Triple-A minor league baseball teams were selected for statistical analysis. The following data show the average attendance for the 16 teams selected. Also shown are the teams’ records; W denotes the number of games won, L denotes the number of games lost, and PCT is the proportion of games played that were won.  Additionally, each teams’ major league association was given. The data are contained in the file named AAA.

1. Graph and Summary statistics:  present a graph that summarizes the data along with a table of summary statistics for each variable in the data set.  An interpretation must accompany any graph, chart, or table that you use.

Homework #8 - Chapter 17

PR.17-02B

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Cost of Production Report

Bavarian Chocolate Company processes chocolate into candy bars. The process begins by placing direct materials (raw chocolate, milk, and sugar) into the Blending Department. All materials are placed into production at the beginning of the blending process. After blending, the milk chocolate is then transferred to the Molding Department, where the milk chocolate is formed into candy bars. The following is a partial work in process account of the Blending Department at October 31:

Required:

1. Prepare a cost of production report, and identify the missing amounts for Work in Process—Blending Department. If an amount is zero enter "0". If required, round your cost per equivalent unit answers to the nearest cent.

2. Assuming that the October 1 work in process inventory includes direct materials of $38,295, determine the increase or decrease in the cost per equivalent unit for direct materials and conversion between September and October. If required, round your answers to two decimal places.

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American Airlines revenue is as follows:

- What is the trend analysis for American Airlines in the past three years?

- the projection of its revenue growth in the coming two years?

- The trend of American Airlines profitability in the past 3 years

Read page 302 (The American Ethnic Hierarchy)

Describe the current ethnic hierarchy in American society.

What are the factors that are used to stratify groups in American society?

Do you agree with the assertion that our society has an ethnic hierarchy? Why or why not?

2 full paragraphs

What impact does the westernization of early childhood assessments (such as gross motor assessments) have on equity in early childcare? Are there other methods of assessment that would be more productive and inclusive?