1. Armando's body metabolizes caffeine at a rate of 13.6% per hour (so the amount of caffeine in Armando's body decreases by 13.6% each hour).

a) If Armando consumes a cup of coffee with 82 mg of caffeine in it, how long will it take for Armando's body to metabolize half of the 82 mg of caffeine?

b) If Armando consumes an energy drink with 208 mg of caffeine in it, how long will it take for Armando's body to metabolize half of the 208 mg of caffeine?

c) If Armando consumes a cup of coffee with c mg of caffeine in it, how long will it take for Armando's body to metabolize half of the c mg of caffeine? (Hint: your answer will be a numerical value.)

2. At the beginning of 2000 Cesar's house was worth 230 thousand dollars and Omar's house was worth 120 thousand dollars. At the beginning of 2003, Cesar's house was worth 190 thousand dollars and Omar's house was worth 158 thousand dollars. Assume that the values of both houses vary at an exponential rate.

a) Write a function f that determines the value of Cesar's house (in thousands of dollars) in terms of the number of years t since the beginning of 2000.

b) Write a function g that determines the value of Omar's house (in thousands of dollars) in terms of the number of years t since the beginning of 2000.

c) How many years after the beginning of 2000 will Cesar's and Omar's house have the same value?

Cowboy Corp. is about to expand its operations and they have several projects with various cash flows available in Excel upload file. Each project has an 8-year life and the firm has a cost of capital at 8%. The firm has $15,000 for the expansion and will invest in multiple projects with that capital constraint.

1. Calculate NPV for each project

2. Find the project combination that maximizes total NPV for Cowboy Corp. and calculate total capital spending

3. Find the optimum combination under following constraints; Project A and C can only be invested together and at least one out of Project E, F or G must be invested.

Cowboy Corp. is about to expand its operations and they have several projects with various cash flows available in Excel upload file. Each project has an 8-year life and the firm has a cost of capital at 8%. The firm has $15,000 for the expansion and will invest in multiple projects with that capital constraint.

1. Calculate NPV for each project

2. Find the project combination that maximizes total NPV for Cowboy Corp. and calculate total capital spending

3. Find the optimum combination under following constraints; Project A and C can only be invested together and at least one out of Project E, F or G must be invested.

1. Using SQL, answer the following question referring to the table below
   1. How many twins are there? (Just having the same birthday does not make you twins.)
2. 2. Name the twins.

CREATE TABLE IF NOT EXISTS students (

student_id INT NOT NULL AUTO_INCREMENT,

first_name VARCHAR(16),

last_name VARCHAR(24),

birthday DATE,

street_address VARCHAR(128),

city VARCHAR(32),

PRIMARY KEY (student_id));

INSERT INTO students

(first_name, last_name, birthday, street_address, city) VALUES

('John','Jones','2000-12-17','250 Pines Blvd.','Pembroke Pines'),

('Mark','Bacon','2000-04-12','1270 Walnut St.','Prarie Bluff'),

('Bill','Carlson','1999-07-06','250 Pines Blvd.','Pembroke Pines'),

('Jean','Carlson','1999-07-06','250 Pines Blvd.','Pembroke Pines'),

('Leonard','Cook','2000-09-14','8046 Maple St.','Highland Park'),

('William','Markham','1999-07-06','1600 Sylvan Ln.','Lake Forest'),

('Sam','Cook','1998-10-13','8046 Maple St.','Highland Park'),

('Fred','Williams','1999-07-08','722 Oack Knoll','Arlington'),

('Sally','Fillmore','2000-03-25','1215 Carrington St.','Decatur'),

('Mary','Jones','1999-11-13','1940 Grant St.','Denver'),

('Phyllis','Jones','1999-11-13','1940 Grant St.','Denver');

Mr. Leo Supreme owns a pizza restaurant. He is currently operating on a takeaway basis only. He has several employees working in the kitchen and delivering pizzas. He also owns various assets, including a rental property.

Luigi is Leo’s head chef and he is provided with the use of a Toyota RAV4 motor car as well as his salary of $100,000 per year. The car was purchased by Leo on 1 April 2018 for $55,000. Leo has not made the election under section 10 of the Fringe Benefits Tax Assessment Act. Luigi travelled 10,000 km in the car during the FBT year ended 31 March 2019 and, of this, 4,000 km were for business purposes. Luigi paid for the petrol for the car and this amounted to $900 for the FBT year ended 31 March 2019. Luigi was not reimbursed for the petrol.

Isabella is Leo’s store manager and she was given an interest free loan of $500,000 by Leo on 1 January 2019. Isabella used the loan for two purposes: 60% for the purchase of an investment property and 40% to pay off her home mortgage.

Leo purchased a rental property on 1 July 2018 for $1,200,000. To finance this purchase, he borrowed $1 million from Megabank at an interest rate of 5%. To arrange for the loan Leo paid a total of $4,000 for a loan application fee, a valuation fee, and legal fees on 1 July 2018. He also paid stamp duty of $52,000 and $3,200 in legal fees in connection with the purchase of the property.

In August 2018 Leo fixed the door to the rental property which was broken at the time of his purchase for a cost of $900. He also purchased new refrigerator for the rental property of $3,000 on 1 November 2018. The useful life of the refrigerator is 10 years. Leo replaced the entire roof of the rental property in October 2018 at a cost of $35,000 after it was severely damaged in a hailstorm in September 2018. He used substantially the same type of material that was there before.

On 10 June 2019 he sold the rental property for $1,500,000. The costs he incurred on the sale were $30,000 for real estate agent’s commission and $2,000 for advertising. With the proceeds of the property sale, Leo repaid his loan from Megabank on the date of sale.

Leo purchased some BHP Billiton Limited shares in May 1990 for $50,000 and then sold them in May 2019 for $100,000. He purchased an antique clock for $600 in June 2000 and sold it in June 2019 for $4,000. Leo also sold his Mercedes sports car in April 2019 for $60,000 which he purchased in April 2001 for $20,000.

Leo always wants to maximise his deductions. Assume that Leo can claim GST input tax credits for the provision of all fringe benefits he provides apart from the loan.

Question 2

What is Leo’s net capital gain or net capital loss for the year ended 30 June 2019?

Question 2

What is Leo’s net capital gain or net capital loss for the year ended 30 June 2019?

Question 2

What is Leo’s net capital gain or net capital loss for the year ended 30 June 2019?

Question 2

What is Leo’s net capital gain or net capital loss for the year ended 30 June 2019?

Question 2

What is Leo’s net capital gain or net capital loss for the year ended 30 June 2019?

Explain how the transactions below should be treated in the financial statements of Gidimadjor Catering Services in accordance to IAS 10; Events after the Reporting Period:

i. Gidimadjor Catering Services has an investment worth GH¢1 million in its financial statements at 31 December 2018. Due to the continuing recession, the investment reduced in value to GH¢900,000 by 15, January 2019. ii. On 8 January 2019, one of the accountants left Gidimadjor Catering Services suddenly. On further investigation, the company realized that this employee had been paying himself money from the bank account in relation to false rental invoices. The amount of the overpayment was found to be GH¢86,000. With the help of the police, the accountant was tracked down and repaid all of the money on 18 January 2019. iii. On 10 January 2019, Gidimadjor Catering Services sold some inventory for GH¢80,000. This inventory had been included in the year-end inventory count at cost of GH¢100,000.

iv. Gidimadjor Catering Services LTD sold a truck on 31 December 2018 for GH¢20,000. This truck had been purchased on 1 January 2013. On 31 December, a non-refundable deposit of GH¢15,000 was paid towards a new truck and a cheque was posted with the balancing payment of GH¢50,000. This cheque was not received and cashed by the seller until 4 January 2019.

You are required to use the following information relating to Gone Limited, and answer the questions below: Gone Limited Income Statement for the year to 31 March 2017 ($) 2018 ($) Sales 160,000 200,000 Cost of goods sold (96,000) (114,000) Gross profit 64,000 86,000 Operating expenses (35,000) (39,000) Net profit before tax 29,000 47,000 Gone Limited Statement of Financial Position As At 31 March Assets 2017 2018 $ $ $ $ Non Current Assets (at Net Book Value) 300,000 320,000 Current Assets Inventory 18,000 20,000 Trade Receivables 30,000 40,000 Cash at Bank 7,000 9,000 Cash in Hand 3,000 58,000 2,000 71,000 Total assets 358,000 391,000 Equity: Ordinary Share Capital 200,000 200,000 Retained earnings 123,000 323,000 146,000 346,000 Current Liabilities Trade Payables 25,000 35,000 Accrued salaries payable 10,000 35,000 10,000 45,000 Total Equity and Liabilities 358,000 391,000 (a) Calculate the following ratios for each of the 2 years:

i. Current Ratio [4 marks]

ii. Acid-Test Ratio [4 marks]

iii. Gross Profit Ratio [4 marks]

iv. Net Profit Ratio [4 marks]

(b) From the results of the ratios computed, what advice would you give to the management regarding the state of the business?

II.  The Balance Sheet and Income Statement for Wholesome, Inc are presented below.  

Wholesome Inc. Balance Sheet as of December 31, 2018

Wholesome, Inc Income Statement for Year Ended 2018

1. Prepare in GOOD FORM a common-size Balance sheet and Income Statement for Wholesome, Inc.
2. Make an observation regarding the meaning or sigificance of one of the percentages presented in the common-size income statement and one of the percentages presented in the common-size balance sheet. (Don’t just restate the percentage).

Consolidation: non-controlling interest (NCI)
Partial goodwill method
**Prepare the consolidation worksheet entries at 30 June 2019. Assume a profit for Carl Ltd for the year ended 30 June 2019 of $61,400

Laura Ltd purchased 97% of the issued shares of Chris Ltd for $1,759,000 on 1 July 2018 when the equity of Chris Ltd was as follows;

At this date, Chris Ltd had not recorded any goodwill, and all identifiable assets and liabilities were recorded at fair value except for the followings;

60% of inventory on hand at 1 July 2018 were sold by 20 June 2019. Further life of the assets is listed on the above table. Partial goodwill method is under use and the tax rate is 30%

Exercise 21A-6 a-b

Teal Mountain Leasing Company signs a lease agreement on January 1, 2017, to lease electronic equipment to Sandhill Company. The term of the non-cancelable lease is 2 years, and payments are required at the end of each year. The following information relates to this agreement: