P23.7  

(LO 2, 3, 4 ) (SCF—Direct and Indirect Methods from Comparative Financial Statements) Chapman Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Chapman as of May 31, 2020, are as follows. The company is preparing its statement of cash flows.

The following is additional information concerning Chapman's transactions during the year ended May 31, 2020.

• 1.All sales during the year were made on account.
• 2.All merchandise was purchased on account, comprising the total accounts payable account.
• 3.Plant assets costing $98,000 were purchased by paying $28,000 in cash and issuing 7,000 shares of stock.
• 4.The “other expenses” are related to prepaid items.
• 5.All income taxes incurred during the year were paid during the year.
• 6.In order to supplement its cash, Chapman issued 2,000 shares of common stock at par value.
• 7.Cash dividends of $105,000 were declared and paid at the end of the fiscal year.

Instructions

a.  

Compare and contrast the direct method and the indirect method for reporting cash flows from operating activities.

c.  

Using the indirect method, calculate only the net cash flow from operating activities for Chapman Company for the year ended May 31, 2020.

Please help with A & C

Scenario You have been hired as a financial consultant by Stark Enterprise Ltd. which is a publicly listed company. Stark Enterprise Ltd. intends to raise additional funds to expand operation overseas, a vision the CEO Mr. Tony Stark is very keen to pursue. The CFO Mr. Phil Coulson suggested that Stark Enterprise issue share options that will convert to a new class of ordinary shares later. Tony Stark is not confident that issuing share options would be the best strategy to raise the additional funds. In Mr. Stark’s request to you- the financial consultant, he would like to know your thoughts on the following matters:

i. If Stark Enterprise Ltd. decides to issue share options, what effect(s) will this have on the basic and diluted EPS of the company?

ii. What are the other alternatives apart from issuing share options available for Stark Enterprise Ltd. to raise additional funds for this expansion plan without borrowing? iii. Based on your discussion in

(ii.) above identify at least TWO funding strategies you think would be better than issuing share options and why?

Required: Write a short memorandum format report to the CEO Mr. Tony Stark to answer his questions. Your report should cover all three questions/issues raised by Mr. Stark. Each question should be answered under a sub-heading within the report with appropriately cited references.

COST & PRODUCTION FUNCTIONS

In order to reduce unit cost, the CEO of ABC Corporation has to decide whether to increase or decrease total production. A marketing analyst has reported the following information about ABC Corporation’s cost and production structure:

1.Use Ordinary Least Squares Method (OLS) to estimate the ABC Corporation’s total cost function; that is, TC =β +βQ;

2. What is ABC Co’s marginal cost?

3. What is ABC Co’s fixed cost?

4. Calculate the scale elasticity at the mean of the data

5. In order to reduce the unit cost would you recommend an increase or a decrease in total production? Why?

Explain the concept of Global Sustainability. Give three (3) reasons why it has emerged as one of the major business issues facing multinational corporations today. If you were the CEO of Coca Cola, discuss two (2) actions you would take to address the sustainability issues facing your company?

For your fictitious healthcare service, you will create a balance sheet and income statement based upon the following financial transactions occurring during your start-up year:

6. May 1, 2020 through December 31, 2020: You use $30,000 in supplies to provide healthcare services to your patients each month. You record the use of supplies on the last day of each month.

7. June 1, 2020: You pay your suppliers $80,000 for supplies purchased on credit.

8. July 1, 2020: You receive payments from health insurance companies totaling $250,000.

9. August 1, 2020:

a. You purchase $160,000 of supplies on credit for use in caring for your patients.

b. You receive payments from health insurance companies totaling $320,000

10. September 1, 2020: You receive payments from health insurance companies totaling $225,000.

11. October 1, 2020: You receive payments from health insurance companies totaling $310,000.

Write a C++ program that will be an information system for Oregon State University using classes as well as demonstrating a basic understanding of inheritance and polymorphism.

You will create a representation of an Oregon State University information system that will contain information about the university. The university will contain a name of the university, n number of buildings, and m number of people. People can be either a student or an instructor. Every person will have a name and an age. Every student will have also have a GPA, but an instructor will NOT have a GPA. Every instructor will have an instructor rating, but a student will NOT have an instructor rating. Every building will have a name, the size in sqft (preferred the real value which you need to look up), and an address (stored as a string, also preferred to look this up).

People will contain a method called “do_work” that will take in a random integer as a parameter that represents how many hours they will do work for. If the person is a student, a message will be printed to the screen that says “PERSON_NAME did X hours of homework.” If the person is an instructor, a message will be printed to the screen that says “Instructor PERSON_NAME graded papers for X hours.” You will need to fill in the appropriate values.

The student GPA can either be an input from the user or randomized, but it must be between 0.0 and 4.0. It cannot be preset. The instructor rating can either be an input from the user or randomized, but it must be between 0.0 and 5.0. The ages of a person can be randomized or an input, but make it realistic. You can choose whether it is randomized or user input, or both.

The university will contain a method that will print the name and address of all the buildings in its information system and another method that will print the name of all the people. The name of the university MUST be “Oregon State University” (because we are the best).

You will manually instantiate at least 1 student, 1 instructor, and 2 buildings, then give them values and store them appropriately in the university object. You can do this in whatever fashion you wish.

You will have a menu that does at least the following:

1) Prints names of all the buildings

2) Prints names of everybody at the university

3) Choose a person to do work

4) Exit the program

Note that option 3 will require you to print another menu that gives options for each person.

You may create any other functions, methods, member variables, etc. to modularize your code and complete the lab.

Extra Credit Add an option to save the information system to a file, and add an option to read a saved information system from a file so that you can close the program, but not lose information. This will also require you to be able to add people and/or buildings to the program during runtime. This is an all or nothing extra credit (you will not get partial points for partial completion).

Many universities offer subsidized tuition benefits to all employees. Discuss reasons

why thismight be efficient for universities, compared to paying higher salaries.Why

might a university be more likely to offer these benefits than a company in another

industry?

QUESTION 66

1. The Legal List is for

   		investment advisers
   		corporate accounts
   		fiduciaries
   		municipal finance professionals

1 points   

QUESTION 67

1. Which of the following establishes the U.S. Treasury Department as the regulator for anti-money-laundering programs?

   		SDN
   		The Bank Secrecy Act
   		None of the provided answers are correct
   		OFAC

1 points   

QUESTION 68

1. The Federal Reserve Board is responsible for which of the following?

   		Setting Regulation T
   		All provided answers are corrects
   		Printing currency
   		Easing the money supply

1 points   

QUESTION 69

1. Which of the following is rated by most securities rating services?

   		Investment risk
   		Quality
   		Market risk
   		Quantity

1 points   

QUESTION 70

1. An investor owns the following investments:

   50 New York 5-percent general obligation bonds maturing in 2020 and rated AA

   50 Florida University 6.25-percent revenue bonds maturing in 2021 and rated AA

   50 Nevada Turnpike 5.75-percent revenue bonds maturing in 2020 and rated AA

   What type of diversification does this represent?

   		Quantity
   		Maturity
   		Geographical
   		Quality

Peanut Corporation is a private corporation using IFRS. At December 31, 2020, an analysis of the accounts and discussions with company officials included the following account balances and other information:

Accounts receivable

$102,000

Accrued interest payable

1,000

Dividend revenue

9,000

Sales revenue

600,000

Purchase discounts

9,000

Purchases

360,000

Accounts payable

30,000

Loss from fire (net of $7,000 tax)

21,000

Selling expenses

64,000

Common shares (20,000 issued; no change during 2020)

200,000

Accumulated depreciation

90,000

Long-term note payable (due Oct 1, 2024)

100,000

Inventory, Jan 1, 2020

76,000

Inventory, Dec 31, 2020

62,500

Supplies inventory

40,000

Unearned service revenue

3,000

Land, at cost (fair value is $450,000).

370,000

Cash

60,000

Franchise

100,000

Retained earnings, Jan 1, 2020

135,000

Interest expense

8,500

Cumulative effect of change from straight-line to accelerated depreciation (net of $6,000 tax) prior to 2020

(18,000)

General and administrative expenses

80,000

Dividends declared and paid

15,000

Allowance for doubtful accounts

5,000

Loss from discontinued operation (before tax)

20,000

Machinery and equipment

225,000

Unless indicated otherwise, you may assume a 25% income tax rate.

General and administrative expenses include depreciation.

Peanut has chosen to account for its land at fair value but the bookkeeper does not understand what to do so he has kept the land’s recorded value at cost.

There are no preferred shares issued.

Instructions

a.    Prepare, in good form, a multiple-step comprehensive income statement.

b. Prepare, in good form, the retained earnings portion of the statement of changes in equity.