preparation of adjusting entries at the end of the financial year is required:

preparing the financial statements of a business, which of the following statements concerning the Equity figure found in the Balance Sheet is correct?

preparing the accounts, at the end of the financial year management forgot to include an item of Dividend Income earned during the period. This will result in an:

Van Gough Pty Ltd borrows $222 000 cash from Ozzie Bank Ltd in 2010 and intends to pay it back in 2020.

How would the transaction have originally been recorded in the books of Van Gough Pty Ltd back in 2010, when the loan was taken out.

following is not an enhancing Qualitative Characteristic:

following is not an important consideration in developing an accounting system:

following statements concerning accrual accounting is correct?

Closing the accounts refers to which of the following:

publishers of ‘Guide to the Stock Market’, a magazine published monthly, received $396 in advance, including $36 GST on 1 March, 2019 for a whole one year’s subscription (12 issues) beginning with the March issue. On receipt of the subscription which entry will the company make in their books?

The following account balances are for the Agee Company as of January 1, 2017, and December 31, 2017. All amounts are denominated in kroner (Kr).

Additional Information

• Agee issued additional shares of common stock during the year on April 1, 2017. Common stock at January 1, 2017, was sold at the start of operations in 2010.

• Agee purchased buildings in 2011 and sold one building with a book value of Kr 17,500 on July 1 of the current year.

• Equipment was acquired on April 1, 2017.

Relevant exchange rates for 1 Kr were as follows:

1. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $145,200, which included a remeasurement loss of $28,300.

2. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $162,250, and a cumulative translation adjustment of $9,650 (credit balance).

The following account balances are for the Agee Company as of January 1, 2017, and December 31, 2017. All amounts are denominated in kroner (Kr).

Additional Information

• Agee issued additional shares of common stock during the year on April 1, 2017. Common stock at January 1, 2017, was sold at the start of operations in 2010.

• Agee purchased buildings in 2011 and sold one building with a book value of Kr 17,500 on July 1 of the current year.

• Equipment was acquired on April 1, 2017.

Relevant exchange rates for 1 Kr were as follows:

1. Assuming the U.S. dollar is the functional currency, what is the remeasurement gain or loss for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $145,200, which included a remeasurement loss of $28,300.

2. Assuming the foreign currency is the functional currency, what is the translation adjustment for 2017? The December 31, 2016, U.S. dollar-translated balance sheet reported retained earnings of $162,250, and a cumulative translation adjustment of $9,650 (credit balance).

Calculate the pH of 0.100 L of the buffer 0.110 M CH3COONa/0.130 M CH3COOH before and after the addition of the following species. (Assume there is no change in volume.)

(a) pH of the starting buffer:

(b) pH after addition of 0.0030 mol HCl:

(c) pH after addition of 0.0040 mol NaOH (added to a fresh solution of the starting buffer):

A 1300 kg aircraft going 35 m/s collides with a 1500 kg aircraft that is parked and they stick together after the collision and are going 16.3 m/s after the collision. If they skid for 14.3 seconds before stopping, how far did they skid? Hint: Are the aircraft moving at a constant velocity after the collision or do they experience an acceleration?

1. Kirksville Foods Corporation (KFC) currently processes seafood with a unit it purchased three years ago. The unit will be built on the lot that was purchased for $200,000 after-tax last year. The lot is currently appraised for $250,000 after-tax and is expected to be sold for $300,000 after-tax in five years. The unit, which originally cost $480,000 after-tax, is expected to be used five more years and have a market value of $15,000 after-tax after five years. KFC is considering replacing the existing unit with a newer, more efficient one. The new unit will cost $700,000 after-tax and will require an additional $50,000 after-tax for installation. The new unit will also require KFC to increase its investment in initial net working capital by $40,000. The new unit will be depreciated on a straight-line basis over five years to a zero balance. KFC can currently sell the existing unit for $275,000 before-tax. KFC’s marginal tax rate and appropriate discount rate are 20% and 10%, respectively.

If KFC purchases the new unit, annual sales revenues are expected to increase by $100,000 before-tax (due to increased processing capacity), and annual operating costs (exclusive of depreciation) are expected to remain constant at this new level over the five-year life of the project. After five years, the new unit will be completely depreciated and is expected to be sold for $70,000 before-tax.

A. (12 points) What is the initial outlay associated with this project?

B. (6 points) What is the operating cash flow per year?

C. (8 points) What is the terminal cash flow?

D. (4 points) Should this machine be replaced? Support your argument with NPV.

Cost of debt using both methods​ (YTM and the approximation​ formula)   ​Currently, Warren Industries can sell 15 dash year $1,000 ​-par-value bonds paying annual interest at a 11​% coupon rate. As a result of current interest​ rates, the bonds can be sold for $1,100 each before incurring flotation costs of ​$30 per bond. The firm is in the 40​% tax bracket. a.  Find the net proceeds from the sale of the​ bond, Upper N d

b.  Calculate the​ bond's yield to maturity (YTM​) to estimate the​ before-tax and​ after-tax costs of debt.

c.  Use the approximation formula to estimate the​ before-tax and​ after-tax costs of debt.

a.  The net proceeds from the sale of the​ bond,

Upper N d is

​

QUESTION TWO [45] About Acer… 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 ACER 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. ACER Labs: Innovation That Fuels Growth The advanced research from ACER Labs changes the world. We’re a powerful innovation engine for ACER, 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 Acer products – and the next generation of technologists, teachers, physicians and artists At Acer, 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 Acer 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 Acer 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 ACER'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 ACER Discover 2018 Madrid ACER 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 ACER experts.

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2.1. ACER employees seem highly motivated. Do you agree? Motivate your answer by providing an explanation of intrinsic and extrinsic motivation. In your discussion, illustrate Maslow’s Hierarchy of Needs and provide any five (5) guidelines that ACER could use for motivating demotivated employees.

2.2. 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. This extract, especially the repetition of “we” is indicative of the fact that groups and teams are at the core of the company’s success. Do you agree? Provide a balanced debate by focussing on the Acer employee’s desire to form teams and groups and work within those structures. In your answer, by considering certain assumptions, comment on group characteristics that may have unfolded at Acer over time.

2.3. Acer 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. (

THE SHAW GROUP, INC.* This case includes data from The Shaw Group, Inc. annual report for the year ended August 31, 2010. Note 6 – Property and Equipment: Property and equipment consisted of the following (in thousands):

August 31,

2010 2009

Transportation equipment $10,899 $20,977

Furniture, Fixtures, and software 162,446 146,905

Machinery and Equipment 263,759 219,753

Buildings and improvements 233,353 151,708

Assets acquired under capital leases 3,612 5,561

Land 14,269 12,404

Construction in progress 89,401 79,004

777,739 636,402

Less: accumulated depreication (293,098) (250,796)

Property and equipment, net 484,641 385,606

Assets acquired under capital leases, net of accumulated depreciation, were $1.6 million and $2.0 million at August 31, 2010, and 2009, respectively. If the assets acquired under capital leases transfer title at the end of the lease term or contain a bargain purchase option, the assts are amor- tized over their estimated useful lives; otherwise, the assets are amortized over the respective lease term. Depreciation expense of $59.8 million, $52.3 million, and $43.7 million for the fiscal years ended August 31, 2010, 2009, and 2008, respectively, is included in cost of revenues and general and administrative expenses in the accompanying consolidated statements of operations. At August 31, 2010, construction in progress consisted primarily of deposits on heavy equipment to be used on some of our power projects. At August 31, 2009, construction in progress consisted primarily of cost related to the construction of our module fabrication and assembly facility in Lake Charles, Louisiana. In fiscal year 2009, we recorded an asset impairment charge of $5.5 million for a con- solidated joint venture. The impairment charge reduced the property, plant, and equipment to its salvage value.

Note 9 – Debt and Revolving Lines of Credit (in part): Our debt (including capital lease obligations) consisted of the following (in thousands):

August 31, 2010 August 31, 2009

Short-term Long-term Short-term Long-term

Notes payable on purchases of equipment; 0% to 1.3% interest;

payments discounted at imputed rate of 5.9% interest; due

September 2010 through April 2011 4,079 ------- 10,610 2,146

Notes payable on purchases of equipment; 5.2% to 6.0%

interest; due June 2011 through July 2012, and paid in full

October 2009 -------- --------- 1,188 1,824

Other notes payable --------- ---------- 2,805 2,277

Capital lease obligations 400 979 796 1,380

Subtotal 4,479 979 15,399 7,627

Westinghouse Bonds (see description below) 1,520,674 ------- 1,387,954 --------

Total 1,525,153 979 1,403,353 7,627

The notes payable on purchases of equipment are collateralized by the purchased equip- ment. The carrying amount of the equipment pledged as collateral was approximately $18.8 million at August 31, 2010. Annual scheduled maturities of debt and minimum lease payments under capital lease obligations during each year ending August 31 are as follows (in thousands):

Capital Lease Obligation Debt

2011 $ 475 $ 4,079

2012 399 —

2013 399 1,520,674

2014 266 —

2015 — —

Thereafter ----- --------

Subtotal 1,539 1,524,753

Less: amount representing interest (160) -------

Total 1,379 1,524,753

Note 13 – Operating Leases We lease certain office buildings, fabrication and warehouse facilities, machinery, and equip- ment under various lease arrangements. Leases that do not qualify as capital leases are classi- fied as operating leases and the related lease payments are expensed on a straight-line basis over the lease term, including, as applicable, any free-rent period during which we have the right to use the asset. For leases with renewal options where the renewal is reasonably assured, the lease term, including the renewal period, is used to determine the appropriate lease classification and to compute periodic rental expense. Certain of our operating lease agreements are non-cancelable and expire at various times and require various minimum rentals. The non-cancelable operating leases with initial non- cancelable periods in excess of twelve months that were in effect as of August 31, 2010, require us to make the following estimated future payments:

For the year ending August 31 (in thousands)

2011 $72,805

2012 61,677

2013 51,381

2014 45,791

2015 35,883

Thereafter 91,845

Total Future minimum lease payments $359,382

Future minimum lease payments as of August 31, 2010 have not been reduced by mini- mum non-cancelable sublease rentals aggregating approximately $0.8 million.

In 2002, we entered into a 10-year non-cancelable operating lease for our Corporate Headquarters building in Baton Rouge, Louisiana. In connection with this lease, we pur- chased an option for $12.2 million for the right to acquire additional office space and unde- veloped land for approximately $150 million. The option expires the earlier of January 2012, or upon renewal of the existing Corporate Headquarters lease. The cost of the option is included in other assets. The book value of the option is assessed for impairment annually based on appraisals of the additional office space and undeveloped land subject to the option. If we renew the lease rather than exercise the option, the option value will be expensed over the term of the new Corporate Headquarters building lease. We also enter into lease agreements for equipment needed to fulfill the requirements of specific jobs. Any payments owed or committed under these lease arrangements as of August 31, 2010, are not included as part of total minimum lease payments shown above. The total rental expense for the fiscal years ended August 31, 2010, 2009, and 2008 was approximately $178.8 million, $178.1 million, and $170.6 million, respectively. Deferred rent payable (current and long-term) aggregated $32.0 million and $30.3 million at August 31, 2010 and 2009, repsectively.

Required

a. For August 31, 2010:

1. What was the gross amount for property and equipment?

2. What was the net amount for property and equipment?

3. What was the gross amount for assets acquired under capital leases?

4. What was the net amount for assets acquired under capital leases?

5. How material are assets acquired under capital leases in relation to total property and equipment?

b. How material are capital lease obligations in relation to total debt and revolving lines of credit at August 31, 2010?

c. Operating leases:

1. What was the total future minimum lease payments as of August 31, 2010?

2. Using two-thirds of future minimum lease payments representing principal, what would be the estimate for principal at August 31, 2010?

3. How material are operating leases in relation to capital leases?

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 15 % and it has $1,830,000 of debt at market value and $370,000 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.

b.??Use your finding in part a?, along with the data provided? above, to find Nabor? Industries' common stock value.

c.??If the firm plans to issue 200,000 shares of common? stock, what is its estimated value per? share?

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 $2,190,000 of debt at market value and $440,000 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 3% annually.

a. Estimate the value of Nabor​ Industries' entire company by using the free cash flow valuation model.
b. Use your finding in part along with the data provided​ above, to find Nabor​ Industries' common stock value.
c. If the firm plans to issue 200,000 shares of common stock, what is its estimated value per​ share?