Air France Case

Air France KLM, A franco-dutch company, prepares its financial statements according to International Financial reporting standards. AF;’s financial statements and disclosures notes for the year ended December 31, 2015 are provided in connect. This material is also available under the Finance link at the company’s website. ( www.airfranceklm-finance.com)

Required:

What are the primary classification into which AF’s cash inflows and cash outflows are separated? Is this classification the same as or different from cash flow statements prepared in accordance with US GAAP?

How are cash inflows from dividends and interest and cash outflows for dividends and interest classified in AF’s cash flow statements? Is this classification the same as or different from cash flow statements prepared in accordance with US GAAP?

The following information is available for the McCain Manufacturing Company for 2020.
Accounts receivable, January 1, 2020 $120,000
Accounts payable, January 1, 2020 ?
Raw materials, January 1, 2020 10,000
Work in process, January 1, 2020 25,000
Finished goods, January 1, 2020 75,000
Accounts receivable, December 31, 2020 80,000
Accounts payable, December 31, 2020 200,000
Raw materials, December 31, 2020 ?
Work in process, December 31, 2020   60,000
Finished goods, December 31, 2020 50,000
Raw materials used in production   100,000
Raw materials purchased 130,000
Accounts receivable collections ?
Accounts payable payments 80,000
Sales ?
Total manufacturing costs ?
Cost of goods manufactured ?
Cost of goods sold 60% of Sales
Gross margin 400,000

Assume that all raw materials are purchased on credit and all sales are credit sales. Compute the missing amounts above.

Please provide step by step solution in excel (with formulas) Breaking Even Mountain Cycle specializes in making custom mountain bikes. The company founder, PJ Steffan, is having a hard time making the business profitable. Knowing that you have great business knowledge and solid financial sense, PJ has come to you for advice. Project Focus PJ would like you to determine how many bikes Mountain Cycle needs to sell per year to break even. Using Goal Seek in Excel solve using the following: Fixed cost equals $65,000 Variable cost equals $1,575 Bike price equals $2,500

1) All of the following are differences in an asset acquisition compared to a stock acquisition except for:

A) Who the consideration is paid to by the acquiring company

B) The recognition of any gain or loss on the part of the target company

C) The valuation used to account for the value of the acquired assets and liabilities

D) The journal entries that would be made on the part of the acquiring company

2) Company ABC owns 100% of the outstanding shares of Company XYZ, and accounts for the net income of Company XYZ using the Cost Method. When Company XYZ reports quarterly Net Income of $40,000 on 6/30/18, Company ABC will:

Fama Corp sold some plant assets during 2020 for $265,000. The original cost to Fama of these assets was $1,830,000. The accumulated depreciation on these particular assets was $1,350,000 at December 31, 2019, and was $1,500,000 at the time of the sale in 2020. Fama uses the indirect method for its statement of cash flows. In reconciling net income to cash flows from operations

1.what is the net effect (i.e., addition or subtraction) stemming from these plant assets for the year ended December 31, 2020?

2. What is the net effect on cash flows from investing activities for the year ended December 31, 2020, stemming from these plant assets?

3. What is the net effect on cash flows from financing activities for the year ended December 31, 2020, from these plant assets?

1. The exchange rate between Japan (JP¥) and the United States (US$) currencies was especially volatile in the early 1990s. The JP¥/US$ exchange rate changed from JP¥160 per US$1 in 1990 to JP¥99 per US$1 in 1993.

a.      Did the JP¥ appreciate or depreciate relative to the US$ between 1990 and 1993? Explain briefly.

b.      How would this exchange rate change affect Japanese auto manufacturers who produce cars in Japan for export to the US? Explain your logic.

c.       How would this exchange rate change affect Japanese auto manufacturers who have factories in the US and assemble cars there from US and Japanese parts for sale in the US? Are they better off or worse off than the producers in part (b) above? Explain your logic,

d.      How would this exchange rate change affect Japanese investment companies who have previously purchased US financial assets? Explain your logic.

e.      How would this exchange rate change affect Japanese firms who have US$-denominated loans from US banks? Explain your logic.

Opening UCC balances

Class 1 $330,000

Class 8 $56,000

Class 10.1 $21,000

Class 13 $45,000

Class 50 $260,000

The company purchased furniture on August 1, 2020 for $44,914.

On the same date, the company sold furniture, which had been originally purchased for $22,031, for $15,364.

Calculate the maximum impact on business income for the year from furniture and other miscellaneous tangible capital assets.

Population bottlenecks and founder effects

A.have opposite effects on population variation

B.both lead to genetic drift, which reduces variation in the population

C.both result in genetic variation due to extreme conditions

D.both result in an increased mutation rate in the population