Algol, Altair, Vernon, Vega, Gamma and Betelgeuse are the only shareholders and directors of Beacon Fun Stuff Pty Ltd. Algol holds 20%, Altair 60%, Vernon 5%, Vega 5%, Gamma 5% and Betelgeuse 5%. The relationship between the rest of the family and Betelgeuse breaks down and Betelgeuse has moved to the USA and is no longer actively involved in the company's management. Algol and Altair called a general meeting to be held at the family home in Hobart on the 20th August 2020. They propose to pass a resolution removing Betelgeuse from the board.

The notice of meeting was sent to Betelguese but was delayed in the post and did not reach him until two days before the meeting. At this late stage he was unable to book a plane ticket from Missouri so could not attend the meeting.

Required: Please advise Betelguese.

On december 31, 2017, Houston Inc. Provided consulting services to Conroe companyat anagreed price of $356,630.79. Houston accepted $75000 down and agreed to accept the balance in six equal installments of $60,000 to be received annually on December 31st, beginning December, 2018. An assumed interest rate of 7.5% is imputed. using excel, prepare the amortization schedule and then record all required journal entries-that would be made by Houston and Conroe on the following dates a) December 31, 2017; b) December 31,2018; c) December 31 2019; D) December 31, 2020; E) December 31 2021; F) December 31, 2022; G) December 31 2023.

Please help on journal entries for Houston and Conroe since I have done the amortization table already. Thanks for your help

a) Question 2a) Draw a graph representing a loanable funds market. Assume inelastic supply of loanable funds. Make sure to label axes, curves, and equilibrium. Write down equations for each of the curves. b) Interpret the slope of the demand for loanable funds curve. c) Interpret the slope of the supply of loanable funds curve. In 2020, the COVID pandemic has spread around the world. Some substantial policy changes in response to the adverse effects of the pandemic in the US included an increase in spending on publicly provided medical tests and provision of stimulus checks to public ($1200 per person). d) Focus on these two events only and illustrate them on your loanable funds model diagram. e) What changes to the equilibrium can you predict with this model going from (a) to (d) and what is the intuition for your predictions?

On January 1, 2018, Byner Company purchased a used tractor. Byner paid $3,000 down and signed a noninterest-bearing note requiring $44,000 to be paid on December 31, 2020. The fair value of the tractor is not determinable. An interest rate of 11% properly reflects the time value of money for this type of loan agreement. The company’s fiscal year-end is December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
1. Prepare the journal entry to record the acquisition of the tractor.
2. How much interest expense will the company include in its 2018 and 2019 income statements for this note?
3. What is the amount of the liability the company will report in its 2018 and 2019 balance sheets for this note?
  

1) Calculate daily returns over the sample period.

2) Compute "mean" and "standard deviation" for the daily returns.

3)Calculate the 1-day VaR (99%) on a percentage basis using the calculated mean and standard deviation.

Answer in EXCEL . Use data provided below

Record below listed transactions under the appropriate General Ledger accounts. Be sure to list the Posting Reference number in the space provided under the General Ledger account for each transaction. Remember, each transaction should affect at LEAST two seperate General Ledger accounts.

Posting Reference Date Transaction PR 1 1/1/2020 Record owner's investment of $10,000 cash.

PR 2 1/1/2020 Purchased equipment at a total cost of $6,000. $1,000 of purchase paid with cash and the remainder paid with note payble in the amount of $5,000.

PR 3 1/3/2020 Prepaid three months of insurance expense in the amount of $900 with cash.

PR 4 1/15/2020 Deposited $2,000 for services provided.

PR 5 1/22/2020 Purchased $500 in office supplies with cash.

PR 6 1/31/2020 Deposited $2,500 for services provided.

AJE 1 1/31/2020 Record depreciation for equipment purchased at beginning of January. Equipment total cost was $6,000 with estimate life of 5 years. Record one month of depreciation.

AJE 2 1/31/2020 Record one month of insurance expense for the month of January 2020.

PR 7 2/4/2020 Paid January rent expense of $1,000 with cash.

PR 8 2/7/2020 Received January electricity bill in the amount of $232 to be paid later.

PR 9 2/7/2020 Received January telephone bill in the amount of $85 to be paid later.

PR 10 2/14/2020 Provided $500 in services; payment to be received later.

PR 11 2/25/2020 Paid January electricity bill with cash.

PR 12 2/25/2020 Paid January telephone bill with cash.

PR 13 2/25/2020 Paid $100 on Equipment Note Payable with cash; $84 toward princple and $16 toward interest expense.

PR 14 2/28/2020 Deposited $1,000 from services provided.

AJE 3 2/28/2020 Record depreciation for equipment purchased at beginning of January. Equipment total cost was $6,000 with estimate life of 5 years. Record one month of depreciation.

AJE 4 2/28/2020 Record one month of insurance expense for the month of February 2020.

PR 15 3/4/2020 Paid February rent expense of $1,000 with cash.

PR 16 3/4/2020 Prepaid March 2020 rent expense of $1,000 with cash.

PR 17 3/6/2020 Received February electricity bill in the amount of $200 to be paid later.

PR 18 3/6/2020 Received February telephone bill in the amount of $85 to be paid later.

PR 19 3/9/2020 Received payment for $500 of previously provided services.

PR 20 3/12/2020 Deposited $1,250 for services provided.

PR 21 3/16/2020 Paid $450 in professional fees for legal services with cash.

PR 22 3/25/2020 Paid February electricity bill with cash.

PR 23 3/25/2020 Paid February telephone bill with cash.

PR 24 3/25/2020 Paid $100 on Equipment Note Payable with cash; $84 toward princple and $16 toward interest expense.

PR 25 3/27/2020 Paid $75 for advertising expenses.

PR 26 3/27/2020 Provided $1,200 in services; payment to be received later.

PR 27 3/31/2020 Deposited $2,300 from services provided.

PR 28 3/31/2020 Received bill of $367 for maintenance services provided on equipment to be paid later.

PR 29 3/31/2020 Prepaid $3,000 for three months of rent expense.

PR 30 3/31/2020 Prepaid three months of insurance expense in the amount of $900 with cash.

AJE 5 3/31/2020 Record depreciation for equipment purchased at beginning of January. Equipment total cost was $6,000 with estimate life of 5 years. Record one month of depreciation.

AJE 6 3/31/2020 Record one month of insurance expense for the month of March 2020.

AJE 7 3/31/2020 Record March 2020 rent expense.

AJE 8 3/31/2020 Record March 2020 interest expense on Equipment Note Payable of $16.

AJE 9 3/31/2020 Record March 2020 electricity bill in the amount of $245 to be paid later.

AJE 10 3/31/2020 Record March 2020 telephone bill in the amount of $85 to be paid later.

Question 2 Active PLC is a leading investment company in Australia and you the below details relating to the capital structure of the company. Information concerning raising new capital Bonds $1,000 Face value 13% Coupon Rate (Annual Payments) 20 Term (Years) $25 Discount offered (required) to sell new bonds $10 Flotation Cost per bond Preference Shares 11% Required rate to sell new preference shares $100 Face Value $3 Flotation cost per share Ordinary Shares $83.33 Current Market Price $4.00 Discount on share price to sell new shares $5.40 Flotation Cost per bond $5.00 2019 - Proposed Dividend Dividend History $4.63 2019 $4.29 2018 $3.97 2017 $3.68 2016 $3.40 2015 Current Capital Structure Extract from Balance Sheet $1,000,000 Long-Term Debt $800,000 Preference Shares $2,000,000 Ordinary Shares Current Market Values $2,000,000 Long-Term Debt $750,000 Preference Shares $4,000,000 Ordinary Shares Tax Rate 33% Risk Free Rate 5% 3 a) Calculate the cost associated with each new source of finance. The firm has no retained earnings available. b) Calculate the WACC given the existing weights The financial controller does not believe the existing capital structure weights are appropriate to minimise the firm’s cost of capital in the medium term and believes they should be as follows Long-term debt 40% Preference Shares 15% Ordinary Shares 45% c) What impact do these new weights have on the WACC? The firm is considering the following investment opportunity. (2020-2027) Data is as follows Initial Outlay $1,600,000 Upgrade $700,000 End of Year 4 Upgrade - 350,000 Increased sales units per annum - (Year 5-8) Working Capital $45,000 Increase required Estimated Life 8 Years Salvage Value $60,000 Depreciation Rate 0.125 For tax purposes The machine is fully depreciated by the end of its useful life Other Cash Expenses $60,000.00 Per annum (Years 1-4) Other Cash Expenses $76,000.00 Per annum (Years 5-8) Production Costs $0.15 Per Unit Sales price $0.75 Per Unit (Years 1-4) Sales price $1.02 Per Unit (Years 5-8) 4 Prior sales estimates Year Sales 2010 520000 2011 530000 2012 540000 2013 560000 2014 565000 2015 590000 2016 600000 2017 610000 2018 615559 2019 659000 2020 680000 d) Calculate the Net Present Value, Internal Rate of Return and Payback Period The financial controller is considering the use of the Capital Asset Pricing Model as a surrogate discount factor. The risk-free rate is 5 per cent. Year Stock Market Share Index Price 2010 2000 $15.00 2011 2400 $25.00 2012 2900 $33.00 2013 3500 $40.00 2014 4200 $45.00 2015 5000 $55.00 2016 5900 $62.00 2017 6000 $68.00 2018 6100 $74.00 2019 6200 $80.00 2020 6300 $83.33 e) Calculate the CAPM f) Explain why this figure may differ from that calculated above (i.e. Cost of equity – Ordinary Shares)

As the senior accountant at Technology on Demand (TOD), which manufactures mobile technology such as flip phones, smartphones, notebooks, and smartwatches, you are often asked to prepare various financial analysis necessary for decision making. Michelle Dodd, the controller, asked you to evaluate whether a piece of factory equipment should be replaced or kept.

The old piece of factory equipment was purchased four years ago for $875,000. Over the last four years, TOD has allocated depreciation based on the straight-line method. The expected salvage value is $25,000. The current book value of the factory equipment is $425,000. The operating expenses total approximately $45,000 a year. It is estimated that the residual value (market value) of the old machine is $350,000.

The controller is contemplating whether to replace the piece of factory equipment. The replacement factory equipment would consist of a purchase price of $500,000, a useful life of eight years, salvage value of 30,000, and annual operating costs of $35,000.

In consideration of the background, prepare a memo in a Word document to submit to the controller. Your first paragraph would be an introduction paragraph of what the memo is about. Next, you will want to consider the equipment replacement decision. To add clarity to your discussion, you are to insert a table comparing the old equipment to the new equipment. In evaluating the “relevant” costs, what does your analysis show? Do you recommend that the equipment be replaced or kept ongoing for the next eight years? Why or why not?

Choose an information technology and develop a business case for implementing the technology in your company (or a publicly traded company).

This should be written as a memo to your upper management.

Be sure to include the following:

A brief background on the company. What does it do, company size, where does it fit in the overall industry, financial situation, etc.

What is the generic strategy (e.g, cost leader, differentiator, focus) the company is pursuing? Note, this real strategy might be very different than the strategy statement the company puts out.

High level overview of the technology - what is it and how does it work.

How well does the technology proposed align with corporate strategy?

What are the high level costs and benefits (no need for detail here, but are we talking thousands, millions, billions, etc.)?

Based on what you have researched and written so far, make a recommendation as to whether the company should invest in the technology or not. Be sure to back up your recommendation.