On 1 No 2016, Burwood Limited based in Australia ordered inventories to the value of US $ 3000000 on FOB destination terms. The goods are shipped on 1 April 2017 and are paid for on 30 June 2017. Burwood Limited also entered into a forward exchange contract of  US $ 3000000 on 1 Nov 2016 with NYC Bank in which NYC Bank agrees to supply Burwood Limited with US $ 3000000 on 30 June 2017. Burwood Limited has a FY ending on 31 Dec.

Additional information on exchange rates

Management adopts cashflow hedge accounting.

Required:

Prepare a table showing gain/losses on the hedging instrument (the forward rate contract ) and also provide necessary journal entries to record the above transactions from 1.11.2016 to 30.06.2017

Texas A&M decides to invite a high profile band to perform during graduation week at Kyle stadium since they anticipate a very high demand for entertainment during that time. After carefully considering Rolling Stones and Justin Bieber, the university decides that Rolling Stones are the better choice (no kidding!). The band agrees to perform at the modest price of $500,000 (paid after the concert). As a result of the agreement, the university sells $1,000,000 worth of tickets for the concert. Justin Bieber would have agreed to perform for $100,000, but would have generated only $400,000 in revenue. The university orders $20,000 worth of the band merchandise to give away in the weeks prior to the concert to advertise the event. They also spent $50,000 on an ice statue of the band positioned in front of the Evan's library that does not have any useful purpose besides looking cool. The day of the event, Rolling Stones cancels due to a rough night for the band partying in a local pub. The university is forced to reimburse people for their tickets and spends additional $200,000 to compensate out of town individuals for incidental expenses associated with attending the concert. The university sues the band for breach of contract.

You are hired to represent the university in the lawsuit. You insist that the appropriate damages for the university are expecation damages. What is the amount of the expectation damages to the university?

Given the reputation of the band, the court decides that opportunity cost damages are more appropriate in this case. What is the size of the opportunity cost damages? Assume that the $70,000 expense for the merchandise give away and the ice statue would not have been incurred if the university contracted with Bieber.

Suppose that the university is willing to settle for reliance damages. What is the amount of these damages?

The defense argues that the university's expense on the ice statue was unreasonable. They request the court to reward hypothetical expectation damages. If the court finds their argument convincing, what should be the amount of the hypothetical expectation damages awarded to the university?

Pastina Company sells various types of pasta to grocery chains as private label brands. The company's reporting year-end is December 31. The unadjusted trial balance as of December 31, 2021, appears below. Account Title Debits Credits Cash 31,400 Accounts receivable 40,200 Supplies 1,600 Inventory 60,200 Notes receivable 20,200 Interest receivable 0 Prepaid rent 1,000 Prepaid insurance 6,200 Office equipment 80,800 Accumulated depreciation 30,300 Accounts payable 31,200 Salaries payable 0 Notes payable 50,200 Interest payable 0 Deferred sales revenue 2,100 Common stock 61,400 Retained earnings 29,000 Dividends 4,200 Sales revenue 147,000 Interest revenue 0 Cost of goods sold 71,000 Salaries expense 19,000 Rent expense 11,100 Depreciation expense 0 Interest expense 0 Supplies expense 1,200 Insurance expense 0 Advertising expense 3,100 Totals 351,200 351,200 Information necessary to prepare the year-end adjusting entries appears below. Depreciation on the office equipment for the year is $10,100. Employee salaries are paid twice a month, on the 22nd for salaries earned from the 1st through the 15th, and on the 7th of the following month for salaries earned from the 16th through the end of the month. Salaries earned from December 16 through December 31, 2021, were $800. On October 1, 2021, Pastina borrowed $50,200 from a local bank and signed a note. The note requires interest to be paid annually on September 30 at 12%. The principal is due in 10 years. On March 1, 2021, the company lent a supplier $20,200 and a note was signed requiring principal and interest at 8% to be paid on February 28, 2022. On April 1, 2021, the company paid an insurance company $6,200 for a one-year fire insurance policy. The entire $6,200 was debited to prepaid insurance. $500 of supplies remained on hand at December 31, 2021. A customer paid Pastina $2,100 in December for 800 pounds of spaghetti to be delivered in January 2022. Pastina credited deferred sales revenue. On December 1, 2021, $1,000 rent was paid to the owner of the building. The payment represented rent for December 2021 and January 2022 at $500 per month. The entire amount was debited to prepaid rent. rev: 09_14_2019_QC_CS-180268, 10_11_2019_QC_CS-184133 4. Prepare an income statement and a statement of shareholders’ equity for the year ended December 31, 2021, and a classified balance sheet as of December 31, 2021. Assume that no common stock was issued during the year and that $4,200 in cash dividends were paid to shareholders during the

Complete this question by entering your answers in the tabs below.

• Income Statement
• Statement of SE
• Balance Sheet

Prepare the income statement for the year ended December 31, 2021. (Other expenses should be indicated with a minus sign.)

What are the adjusting entries for the following?

These are the orginial events that took place, and their journal entries

There are no opening balances

XYZ was founded 10 years ago. It has been profitable for the last 5 years, but it has needed all of its earnings to support growth and thus has never paid a dividend. Management has indicated that it plans to pay a $1 dividend 3 years from today, then to increase it at a relatively rapid rate of 20% for 3 years, and then to increase it at a constant rate of 8% thereafter. Assuming a required return of 12%, what is your estimate of the stock's intrinsic value today?

a) Calculate the firm's non-constant dividends.

b) Calculate the firm's horizon value.

c) What is the firm's intrinsic value today, P̂ 0?

Functionally important traits in animals tend to vary little from one individual to the next within populations, possibly because individuals who deviate too much from the mean have lower fitness. If this is the case, does variance in a trait rise after it becomes less functionally important? Billet et al. (2012) investigated this question with the semicircular canals (SC) of the three-toed sloth (Bradypus variegatus). The authors proposed that since sloths don't move their heads much, the functional importance of SC is reduced, and may vary more than it does in more active animals. They obtained the following measurements of the ratio of the length to width of the anterior SC in 7 sloths. Assume this represents a random sample. In other, more active animals, the standard deviation of this ratio is 0.09.

Functionally important traits in animals tend to vary little from one individual to the next within populations, possibly because individuals who deviate too much from the mean have lower fitness. If this is the case, does variance in a trait rise after it becomes less functionally important? Billet et al. (2012) investigated this question with the semicircular canals (SC) of the three-toed sloth (Bradypus variegatus). The authors proposed that since sloths don't move their heads much, the functional importance of SC is reduced, and may vary more than it does in more active animals. They obtained the following measurements of the ratio of the length to width of the anterior SC in 7 sloths. Assume this represents a random sample. In other, more active animals, the standard deviation of this ratio is 0.09.

Fill in the blank for a with the estimate of the standard deviation of this measurement in three-toed sloths to two decimals, and include the leading zero __________

The 95% confidence interval for the standard deviation of this data is _____< σ < ______ (two decimals - include the leading zero)

Does this interval include the value obtained from other species? (answer yes or no in blank d) _________

Mesa Company is authorized to issue 1,000,000 shares of its $5 par value common stock and 600,000 shares of its $10 par value preferred stock. During 2018 – its first year of business - the company earned $650,000 of net income and had the following select transactions. No dividends were declared or paid throughout the year. The net income and events below are the only ones that impact Stockholders’ Equity this year.

1. Issued 300,000 shares of common stock for $35 per share
2. Issued 100,000 shares of preferred stock for $55 per share
3. Reacquired 80,000 shares of common stock at $30 per shares
4. Reissued 20,000 shares from treasury for $33 per share
5. Reissued 10,000 shares from treasury for $35 per share
6. Reissued 20,000 shares from treasury for $25 per share
7. Reissued 5,000 shares from treasury for $27 per share

Required: Prepare journal entries OR a financial statements effects template to record the above transactions.

1. a)            From the following sets of figures (i) Calculate the bank discount rate on each T-bill and

(ii) Convert that rate to the appropriate investment (or coupon equivalent) yield.

                                – A new three-month T-bill sells for US98.25 on a US$100 basis.

                                – The investor can buy a new 12-month T-bill for US$96 on a US$100 basis.

– A 30 – day bill is available from a government securities dealer at a price of US$97.50

    (per US$100).

2.             Calculate the holding – period yield for the following situations:
3. The investor buys a new 12 – month T-bill at a discount rate of 7½ percent. Sixty days later, the bill is sold at a price that results in a discount rate of 7 percent.
4. A large manufacturing corporation acquired a T-bill in the secondary market 30 days from its maturity but is forced to sell the bill 15 days later. At time of purchase, the bill carried a discount rate of 8 percent, but was sold at Discount Rate of 7¾ percent.

The University of Cincinnati Center for Analytics is organizing an event. The Center is sponsored by 15 Companies. Employees of these sponsor companies could register for the event, free of charge. 6 employees from each of the companies have registered. Registration fee for the general public is $90 per person. 135 individuals from the general public have registered to attend the event. All attendees receive breakfast, lunch and parking free of cost. The Caterer charges the Center, based on the total number of people registering. The Center pays the parking fee for only those who attend the event. Non-attendees who paid a Registration Fee will receive a 55% refund. On the day of the event, a total of 5 registrants from the sponsor companies do not show up. Also, there are 12 no-shows from among the general public registrants. (a) Build a spreadsheet model that calculates a profit or loss to the Center. (b) Create a two-way table to show how profit changes by number of public registrants and no-shows. Vary the number of general public registrants from 100 to 160 in increments of 10. Vary the number of no-shows among general public registrants from 10 to 20 in increments of 1. Other Information: Expenses incurred by the Center: Rental cost for the auditorium: $1,300 Processing cost (Badges, Brochures, Welcome desk, etc.): $10.50 per person registering Speaker Costs: 4 speakers at $1250 each Breakfast: $5.20 per person registering Lunch: $9.50 per person registering Coffee, Tea, Soft drinks: $2.40 per person attending Parking: $7.00 per person attending Refund to non-attendees: 55% of Registration fee received Fixed cost: $6,300 Registrant cost: $25.20