Sandra and Michael Wilson are the parents of Rory who just turned 5 years old (coincidentally on the same date that primary, secondary and university academic years commence). They own a four-bedroom home in Edinburgh. Sandra is a partner in a local dental practice and Michael is a stay at home dad. Sandra earns £100,000 a year (after tax).

Now that Rory is starting primary school, thoughts have turned to saving for his education. Rory is enrolled to attend a state (i.e. non fee-paying) primary school. The Wilsons plan to send Rory to a private secondary school (when he turns 11). The school is prestigious and its fees are set accordingly. Currently tuition is £20,000 per school year and are projected to rise at the rate of inflation. Currently around 2% per annum.

The Wilsons hope that Rory will subsequently attend their alma mater, Oxford University when he turns 18. Most undergraduate courses at Oxford have a four academic year duration. Undergraduate fees at Oxford are currently £9250 per annum and are projected to rise faster than inflation, at a rate of 4% per annum. In addition, as Rory would be living away from home if he attended Oxford, his parents envisage that his living costs (primarily student accommodation and food) would amount to £10,000 per annum (expressed in today’s prices). These living costs are projected to increase at the rate of inflation, 2% per annum.

Using a discount rate of 7%, what is the present value of the combined projected spend on Rory’s private school fees, university tuition and living costs? (Assume that all fees and living costs are incurred at the beginning of each academic year e.g. Rory’s first school fee invoice will arrive in exactly 6 years which coincides with his first day at secondary school when he turns 11).

The Wilsons plan to fund the expenditure on private school fees from Sandra’s income. They would however like to start investing today in a fund that would be used to pay Rory’s university fees and living costs. They would like to make an equal annual payment into that fund every year (starting in one years’ time) with a view to accumulating £120,000 by Rory’s 18th birthday. This £120,000 would then be drawn down over Rory’s time at Oxford to meet expenses as they come due.

How much money would they have to deposit into the fund every year (with the first payment one year from now) to meet that target assuming a conservative fund return estimate of 3% a year. Will the accumulated amount be enough to cover the joint fees and living costs during Rory’s time at Oxford?

Cascade Company was started on January 1, Year 1, when it acquired $152,000 cash from the owners. During Year 1, the company earned cash revenues of $80,700 and incurred cash expenses of $68,400. The company also paid cash distributions of $6,500.

Required
Prepare a Year 1 income statement, capital statement (statement of changes in equity), balance sheet, and statement of cash flows under each of the following assumptions. (Consider each assumption separately.)

c. Cascade is a corporation. It issued 10,000 shares of $9 par common stock for $152,000 cash to start the business. (Amounts to be deducted should be indicated with minus sign.)

It is 2020. The US government has passed a new federal minimum wage of $11.00/ hour. It will go into effect on January 1, 2021. Please follow the instructions, given the background information in items A, B, C, and D below.

Instructions

1. Calculate the immediate financial impact in 2021 (change in hourly wages) on the profitability of the company due to the impending increase in the minimum wage. Ignore tax issues such as employment tax in your calculation.

2. Identify at least three (3) courses of action (options) for the owner of this company that will offset the increase in labor costs from #1 above. Explain why you think these options are viable options for the small company. Your course of action must quickly offset the effect of the increase in wages and the decrease in profitability of the company due to the minimum wage increase.

3. Lastly, recommend the one course of action from among your list of three courses of action that you think is the best option for the small business owner and his or her company. Justify your response.

Background Information

A- The company has 19 employees, which includes two assistant managers. The owner is the only shareholder of the company.

B. 6 employees earn $8.00/ hour which is slightly above the current federal minimum wage, but $3/ per hour below the new federal minimum wage.

C. The other employees earn the following:

ii. 6 earn $13/ hour

iii. 3 earn $18/ hour

iv. 2 earn $22/ hour

v. The 2 managers each earn $50,000 per year

See Table 1 on the next page.

D. The company earned a profit last year of $100,000 based on sales of $1,500,000 that was passed through to the owner as the owner’s only source of income.   This year sales are on track to be approximately $1,500,000 again due to industry conditions. The owner’s family just bought a new house for their growing family and has a mortgage of $141,000 with monthly payments of $1,008 per month.

E. The owner’s spouse does not work and the family cannot justify the spouse getting a job of any kind because the wages from a new job would not cover the weekly cost of day care and after school care for the family’s three young children, ages 2, 5, and 7.

Table 1. Summary of Current Costs of Payroll

1--- Exxon Oil Corp. is negotiating the purchase of 1 million barrels of oil from a bankrupt competitor to be delivered and paid for in exactly 1 year. The oil exporter wants the contract expressed in Mexican Pesos, and the current "in USD" Peso exchange rate is $0.075. The contract is signed at a price of 1405 Pesos per barrel. How many US Dollars will Exxon be wrose off if at the time of oil delivery the "in USD" Peso exchange rate changes to $0.080?
$

Note: Round your answer rounded to the closest $USD.

2----Exxon Oil Corp. is negotiating the purchase of 1 million barrels of oil from a bankrupt competitor to be delivered and paid for in exactly 1 year. The oil exporter wants the contract expressed in Mexican Pesos, and the current "in USD" Peso exchange rate is $0.068. The contract is signed at a price of 1430 Pesos per barrel. Exxon can enter a futures contract that allows the company to purchase Pesos at the exact time of oil delivery at $0.069. If we consider the use of the futures contract to hedge Exxon's foreign exchange risk, how much is the cost of this insurance to Exxon?
$

Note: Round your answer to the closest $USD.

3---Charlie is a currency trader and has in inventory 115000 Euros that he purchased for $1.35 per Euro. The Euro is now trading at $1.35. What is Charlie's profit or loss on this currency trade?
$

Place your answer in numbers of dollars of profit or loss.

4--- Ford sells a particular car in Geneva for 50125 Swiss francs. The company sells the same car in the U.S. for $34800. The company has a position that it collects foreign currency and brings it over to its U.S. headquarters in dollars at the end of each quarter. What exchange rate, expressed as U.S. dollars per Swiss franc, at the end of this current quarter would make the revenues earned on the car the same whether it was sold in Detroit or Geneva?



Place your answer as a number with four decimal places

On January 1, 2017, Sandhill Co.'s accounting records contained these liability accounts.

During January, the following selected transactions occurred.

During January, the company’s employees earned wages of $72,900. Withholdings related to these wages were $5,577 for Social Security (FICA), $5,207 for federal income tax, and $1,562 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages earned during January will be paid during February. Wages or payroll tax expense have not been recorded as of January 31.

On January 1, 2017, Blossom Company's accounting records contained these liability accounts.

During January, the following selected transactions occurred.

During January, the company’s employees earned wages of $78,300. Withholdings related to these wages were $5,990 for Social Security (FICA), $5,593 for federal income tax, and $1,678 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages earned during January will be paid during February. Wages or payroll tax expense have not been recorded as of January 31.

Bal

Jan 1

Jan 5

Jan 12

Jan 14

Jan 20 Adj.

Jan 31

Jan 31

Jan 31

Bal

The Student Recreation Center wanted to determine what sort of physical activity was preferred by students. In a survey of 89 random students, 68 indicated that they preferred outdoor exercise over exercising in a gym. The 95% confidence interval estimating the proportion of all students at the university who prefer outdoor exercise is given by which of the following?

Question 9 options:

During your lunchtime, which you usually spend at the university canteen in the presence of other students, one particular accounting student who was having difficulty with the textbook complained that he did not understand which costs were to be regarded as part of the acquisition cost of land, which costs were to be attributed to buildings under construction, and which were to be treated as an expense. Explain the basic principles to be followed. Are there any difficulties in applying these principles? Please provide illustration to your explanation

Bport university annualy hosts the break at the port. as a class project, during the most recent of these parties, one of the statistics classes investigated the proportion of students who consumed more than 2 glasses of beer by class. they were testing the hypothesis that seniors had a lower proportion than did freshman. they found that of the 50 freshman evaluated, 40 consumed more than 2 glasses of beer while 75 of the 100 seniors did. test their hypothesis with an alpha of .05

1.What are the feasibility study issues?
2.Requirements may change throughout the life of a computer based system. Explain.
3.Suggest who might be stakeholders in a university student records system. Explain why it is almost inevitable that the
requirements of different stakeholders will conflict in some ways.
4.In software engineering why do we desperately need good design at all levels?
5.Explain with example that how the modular design reduces the design complexity?
What are common characteristics of a system?