On November 10, 2009, King Co. sold inventory to a customer in a foreign country. King agreed to accept local currency units (LCU) in full payment for this inventory. Payment was to be made on Feb 1, 2010. On December 1, 2009, King entered into a forward contract wherein the total payment to be received would be delivered to a currency broker in two months. Additional information is as follows:

Total payment in local currency units (LCU) for the inventory: 120,000

Date Rate Description Exchange Rate per LCU

Nov. 10, 2009 Spot Rate $0.28

Dec. 1, 2009 Spot Rate $0.30

2-Month Forward Rate $0.32

Dec. 31, 2009 Spot Rate $0.34

1-Month Forward Rate $0.36

Feb. 1, 2010 Spot Rate $0.38

The present value factor for one month based on the company's borrowing rate is 0.9901

Assume this hedge is designated as a cash flow hedge, what items relating to this transaction should the company report on its 2009 and 2010 financial statements? Please prepare journal entries and show what items (account name and dollar amounts) related to the export sale and forward contract the company will report on its 2009 and 2010 financial statements.

rev: 10_31_2013_QC_37911, 03_06_2015_QC_CS-9041

XYZ stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2010 $ 130 $ 5 2011 $ 144 $ 5 2012 $ 120 $ 5 2013 $ 125 $ 5 An investor buys six shares of XYZ at the beginning of 2010, buys another three shares at the beginning of 2011, sells one share at the beginning of 2012, and sells all eigth remaining shares at the beginning of 2013. a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Do not round intermediate calculations. Round your answers to 2 decimal places.) Arithmetic mean % Geometric mean % b-1. Prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2010, to January 1, 2013. (Negative amounts should be indicated by a minus sign.) Date Cash Flow 1/1/2010 $ 1/1/2011 1/1/2012 1/1/2013 b-2. What is the dollar-weighted rate of return? (Hint: If your calculator cannot calculate internal rate of return, you will have to use a spreadsheet or trial and error.) (Negative value should be indicated by a minus sign. Round your answer to 4 decimal places.) Rate of return %

Good Slings Inc. manufactures several wood and string instruments at its factory in Thunder Bay. In particular, it is well-known for its production of classic guitars. Assume that Good Slings uses a periodic inventory system and a physical count of inventory takes place at year end. The company accumulated the following costs and account balances for the year ended December 31, 2010 with respect to direct materials:

In addition, the following table shows Good Slings’ remaining costs for the year:

Do not enter dollar signs or commas in the input boxes.

a) Calculate the cost of direct materials used in production for the year.

Materials used in production: $Answer
b) What is the total manufacturing overhead cost for the year?

Manufacturing Overhead: $Answer
c) Calculate total manufacturing costs.

Total Manufacturing Costs: $Answer
d) If there is no beginning work in process inventory and ending work in process inventory is $54,000, what is the cost of goods manufactured?

Cost of Goods Manufactured: $Answer

Hershey Company is one of the world’s leading producers of chocolates, candies, and confections. The company sells chocolates and candies, mints and gums, baking ingredients, toppings, and beverages. Hershey’s consolidated balance sheets for 2009 and 2010 follow:

Additional information for 2010:    Total sales                        $5,671.0

                                                  Costs of goods sold           $3,255.8

                                                  Net income                       $   509.8

REQUIRED:

1. Compute the common-size balance sheet for 2010 and the rate of change balance sheet for 2010.

2. Compute the following ratios for 2010. Provide a brief description of what each ratio reveals about Hershey.
   1. Return on common equity
   2. Debt-to-assets
   3. Debt-to equity
   4. Current
   5. Quick
   6. Inventory turnover days
   7. Accounts receivable turnover days
   8. Accounts payable turnover days
   9. Operating cycle (in days)
   10. Total asset turnover

Question 2 Below is the Trial Balance of Marks Supermarket as at 31 March 2010. Dr Cr Pula Pula Purchases and sales 328 000 960 000 Inventory at 1 April 2009 60 000 10% Debenture 400 000 Accounts receivables/ payables 100 000 80 000 Cash/Bank 68 000 Retained profit at 1 April 2009 620 000 General reserve 80 000 Advertisement 50 000 Audit fees 24 000 Interim dividend 30 000 Debenture interest 20 000 General expenses 84 000 Building at cost 800 000 Provision for depreciation(building) 60 000 Plant at cost 1 600 000 Provision for depreciation ( Plant) 380 000 Ordinary shares of P10 each 600 000 8% preference share capital 200 000 Wages and salaries (administration) 100 000 Salesmen salaries 60 000 Carriage inwards 16 000 Rent and rates 40 000 Total 3 380 000 3 380 000 Additional information: 1. Property, plant and equipment to be depreciated as follows: Buildings at 5% using straight line method, Plant at 10% using reducing balance method. All depreciation for the year was to be charged to administration. 2. The amount of inventory as at 31 March 2010 was P80 000. 3. An amount of P58 000 was to be provided for taxation for the year ended 31 March 2010. 4. Rent paid in advance amounted to P16 400. 5. General expenses were to be allocated as follows: 2/3 to administration and 1/3 to distribution. 6. An amount of P80 000 was to be transferred to general reserve. 7. A 10% final dividend on ordinary shares was declared. 8. Preference dividend has not yet been paid. Required to prepare the following financial statements for Marks Supermarket: a) Statement of comprehensive income( income statement) for the year ended 31 March 2010 b) Statement of Changes in Equity for the year ended 31 March 2010 c) Statement of financial position (Balance Sheet) as at 31 March 2010

The actual selling expenses incurred in March 2020 by Fallon Company are as follows.

(a) Prepare a flexible budget performance report for March, assuming that March sales were $172,800. Variable costs and their percentage relationship to sales are sales commissions 6%, advertising 7%, traveling 4%, and delivery 2%. Fixed selling expenses will consist of sales salaries $35,100, Depreciation on delivery equipment $6,500, and insurance on delivery equipment $1,900. (List variable costs before fixed costs.)

(b) Prepare a flexible budget performance report, assuming that March sales were $180,500. (List variable costs before fixed costs.)

USE INDIRECT METHOD

The profit or loss section of the statement of comprehensive income of ITS NOT OK NOT TO BE OK company for the year ended December 31, 2020 as reproduced below:

Sales- 6,100,000

COGS- 3,700,000

GROSS PROFIT- 2,400,000

Gain on sale of equipment- 100,000

Salaries expense- (820,000)

Insurance expense- 380,000

Depreciation expense- 220,000

Profit before interest and income tax -1,080,000

Interest Expense- 120,000

Profit before income tax- 960,000

Income tax expense- 288,000

Profit- 672,000

The following info is also available

Decrease in AR- 120,000

Increase in Inventory- 280,000

Decrease in AP- 160,000

Increase in Salaries Payable- 100,000

Increase in Prepaid Insurance- 180,000

Decrease in interest payable- 30,000

Increase in income tax payable- 18,000

REQUIRE: PREPARE INDIRECT METHOD

Melbourne Ltd acquired 100% of Sydney Ltd on 11 December 2016. On 1 January 2017, Sydney Ltd sold a machine to Melbourne Ltd for $80,000 and recorded a profit of $20,000. Melbourne Ltd will depreciate this machine on a straight-line basis over its useful life of 8 years. You, the group accountant, have just finished preparing the consolidated financial statements for the year ending 30 June 2020. Mrs Jones, CEO of Melbourne Ltd, is not an accountant and she doesn’t understand why you had to make some adjustments before you prepare the consolidated accounts.

Required: Write an email to Mrs Jones summarising why it is essential to adjust for this intra-group transaction before preparing the consolidated financial statements. Note: consolidation entries are not required.

3. Delray Inc. follows IFRS and has the following amounts for the year ended December 31, 2020: gain on disposal of FV-NI investments (before tax), $15,000; loss from operation of discontinued division (net of tax), $42,000; income from operations (before tax), $220,000; unrealized holding gain-OCI (net of tax) $12,000; income tax on income from continuing operations, $63,000; loss on disposal of discontinued division (net of tax), $75,000. The unrealized holding gain-OCI relates to investments that are not quoted in an active market. a. Calculate income from continuing operation. b. Calculate net income. c. Calculate other comprehensive income. d. Calculate comprehensive income. e. How would your answers to parts (a) to (d)be different if Delray followed ASPE?