Assume that the following data relative to Kane Company for 2020 is available:

Net Income                                                                                                                                                                                                                $2,100,000

8% Cumulative Convertible Preferred Stock

Sold at par, convertible into 200,000 shares of common

(adjusted for split).    $1,000,000

Stock Options

Exercisable at the option price of $25 per share. The average

market price in 2020, $30 (market price and option price

adjusted for split). 60,000 shares

Instructions

(a)   Compute the basic earnings per share for 2020 (Round to the nearest penny).

(b)   Compute the diluted earnings per share for 2020 (Round to the nearest penny).

n this chapter, we have noted how businesses are dynamic and constantly looking to exploit new opportunities that involve changing the way they operate production. What might not have been a success for some firms does not mean to say that there are no other firms that will be able to benefit. This article shows how problems faced by one firm in making sufficient profits are not necessarily shared by other firms as the use of factor inputs is changed.    

Best Buy Fails to Break UK Market.

US electrical retailer, Best Buy, made an attempt to enter the UK electrical retail market in 2010. The retailer is known across the united states for its high-quality sales staff and discount prices and attempted to bring its business model to the crowded UK market which features the likes of Currys, Argos, Dixons, and Comet.

The plans to enter the UK market arose when Best Buy Inc. brought half of the Carphone Warehouse's retail interests. Plans were made to open up to 200 so-called 'Big-Box' stores throughout the UK within the first one opening in Thurrock, Essex in April 2010. However, facing strong competition a lack of brand recognition by UK consumers, and the rapid growth of online retailing from firms like Amazon, Best Buy found things difficult and by January 2012 a decision was made to close down its 11bricks and mortar retail operations following losses of around 62 million pounds.

The decision to close down was made after consideration was given to commit more capital to its operations in an attempt to secure the advantages of large-scale production - economies of scale. In the end, the cost of such an investment in relation to the expected benefits in a market which was challenging (given the economic situation in the UK, the income elasticity of demand for electrical goods in general, and the increasing use of online as the medium of choice for shoppers), meant that option was discounted.

The decision to close down operations will have been takin in the light of the expected costs of trying to maintain its presence on the high street and the future of the industry as a whole. it would not have been taken lightly as reports suggested closing down would cost Best Buy and Carphone Warehouse around 100 million pounds.

One option being considered was selling its stores to the UK's fourth-largest supermarket group by share, Morrisons. Morrisons was reported to have expressed interest in acquiring the stores, mostly in large out-of-town retail sites, for its Kiddicare brand of baby, infant, and small children's products such as toys, pushchairs, costs, and so on.

The reports caused interest in the markets and some surprise given the challenges that exist in that market for some of the reasons that Best Buy found life difficult. An increasing trend to purchase goods online and the economic climate had already seen retailers like Mothercare and its Early Learning Centre stores facing declining sales and profits. Kiddicare had been an almost exclusively online operation and so the decision by Morrisons to move into the bricks and mortar sector was seen as a high-risk move.

Questions:

1. For Morrisons, what is the difference between the short run and the long run in this case?

The answer I get are either general short run and long run or the answer would be for Best Buy as mentioned bellow. Please provide me the answer for the Morrison not Best Buy. Tell me For the Morrison the short run and long run difference considering the case study itself.

this answer that I got is not according to Morrison it is according to Best Buy:

The difference between short and long run according to Morrisons is

in short run, the Best Buy was confident to take over its business as it assumed that eah businesses have their own uniqueness in reaching its customers and brought half of the Carphone Warehouse's retail interests. but it didn't work well due to lack of brand recognition by UK consumers and not only that the other retailers were also growing tremendously like, Amazon(online store) and it faced loss.

In the long run, it decided to shut down its business but that might cause huge lose(100 Million pounds) so it decided to sell its stores to the UK's fourth-largest supermarket group by share, Morrisons and it decided to acquire the store.

Finally, it observed that the mortar sector was seen as a high-risk move as the whole world i undergoing the technological revolution.

Exercise 20-13 Indigo Company sponsors a defined benefit pension plan. The corporation’s actuary provides the following information about the plan. January 1, 2020 December 31, 2020 Vested benefit obligation $1,650 $1,750 Accumulated benefit obligation 1,750 2,750 Projected benefit obligation 2,250 2,770 Plan assets (fair value) 1,730 2,640 Settlement rate and expected rate of return 10 % Pension asset/liability 520 ? Service cost for the year 2020 440 Contributions (funding in 2020) 750 Benefits paid in 202- 210

(a) Compute the actual return on the plan assets in 2020.

(b) Compute the amount of the other comprehensive income (G/L) as of December 31, 2020. (Assume the January 1, 2020, balance was zero.) (Enter loss using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).

(c) Compute the amount of net gain or loss amortization for 2020 (corridor approach).

(d) Compute pension expense for 2020.

In the green cells calculate total Gross Profit (i.e., Sales - COGS) using the condition(s) as specified and without creating a helper column, using Filters, or Pivot Tables.

The following information was taken from the accounting
records of JBD Company as of December 31, 2020:

Inventory .................   $17,000
Accounts Payable ..........   $36,000
Common Stock ..............   $78,000
Accounts Receivable .......   $11,000
Retained Earnings .........   $24,000 (at January 1, 2020)
Copyright .................   $20,000
Salaries Expense ..........   $28,000
Supplies ..................   $12,000
Mortgage payable ..........   $80,000 (due March 1, 2040)
Land ......................   $93,000
Notes Payable .............   $17,000 (due November 1, 2022) 
Trademark .................   $37,000
Sales Revenue .............   $97,000
Equipment .................   $85,000
Income Tax Expense ........   $10,000
Cost of Goods Sold ........   $45,000
Salaries Payable ..........      ?
Cash ......................      ?
Accumulated Depreciation ..      ?
Dividends .................      ?
Interest revenue ..........      ?

Additional information:
1)  Total current assets at December 31, 2020 are equal to
    30% of the total assets at December 31, 2020.

2)  20% of JBD’s 2020 net income was paid to stockholders
    as dividends.

3)  Total long-term liabilities at December 31, 2020 are
    equal to total current liabilities at December 31, 2020.

4)  Total equity at December 31, 2020 is equal to 35% of the
    total liabilities at December 31, 2020.

Calculate the balance in the accumulated depreciation account
at December 31, 2020.

Mayberry Investment Ltd. Price History

Question 1

Kindly calculate the Price Weighted Index for Mayberry Investment Ltd. and Value Weighted Index for Mayberry Investment Ltd ( Jamaica )

EFG Industries began operations with no beginning inventory on 10/1/2020. EFG adopted a Periodic inventory system and a FIFO cost flow assumption.
The following events occurred:
10/1/2020 Purchased 100 units @ $10/unit
10/15/2020 Returned 10 units for full refund
10/30/2020 Sold 60 units @ $14/unit FOB Shipping Point (shipped same day)
11/15/2020 Purchased 200 units @ $12/unit
11/18/2020 Sold 210 units @ $15/unit FOB Destination (arrived at customer 12/15)
12/12/2020 Purchased 100 units @ $14/unit
12/18/2020 Obtained $50 discount on 12/12 purchase
12/30/2020 Sold 50 units @ $16 FOB Destination (in transit at year end)
Based on this information,
1. What is the value of Ending Inventory?
2. What is the value of Cost of Goods Sold?
3. Prepare the adjusting journal enties that would be used to record Cost of Goods Sold on 12/31/2020.

On 1 June2020, Purchase Limited enters into a firm commitment Supply Limited to buy USD 100,000 of
inventory. On 1 July 2020, the Purchase Limited enters into a hedging arrangement which meets the hedge
accounting criteria stipulated by the accounting standards (Australian Accounting Standards Board (AASB) 9).
Purchase Limited has designated the firm commitment hedging arrangement as a fair value hedge. On 1 August
2020, Supply Limited transfers the inventory to Purchase Limited, and on that date, the Purchase Limited makes
the payment. The spot and forward rates are as follows.

Required:
a) Explain at least two determinants of determining an effectiveness of a hedge instrument against a
hedge
5 Marks
b) Provide journal entries to account for the hedged item (firm commitment to buy inventory) 8 Marks
i. On 1 June 2020
ii. On 30 June 2020
iii. On 1 August 2020
c) Provide journal entries to account for the hedge instrument (forward contract) 7 Marks
i. On 1 June 2020
ii. On 30 June 2020
iii. On 1 August 2020