Q1
Frisco Hardware is trying to do some financial planning. The company knows it will need to have $423038 in 10 years to pay off a loan. The company will be receiving $75020 at the end of year 8 from a licensing deal with another manufacturer, but the company will have to make a large payment of $51455 at the end of year 5 to fund a retirement account for the CEO. How much should the company deposit today to meet all future obligations? Assume an interest rate of 7% compounded annually.
Enter your answer as: 1234
Round your answer. Do not use a dollar sign ("$"), any commas (",") or a decimal point (".").
Q2
You deposit $387 at the end of each month into an account that pays a nominal annual rate of 8% compounded monthly. How much will you have in the account at the end of 18 years?
Enter your answer as follows: 12345
Round your answer. Do not use a dollar sign ("$"), any commas (",") or a decimal point (".").
In: Economics
Clifford Delivery Company purchased a new delivery truck for $72,000 on April 1, 2019. The truck is expected to have a service life of 5 years or 90,000 miles and a residual value of $3,000. The truck was driven 8,000 miles in 2019 and 20,000 miles in 2020. Clifford computes depreciation expenses to the nearest whole month.
Required:
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
In: Accounting
Depreciation for Partial Periods
Storm Delivery Company purchased a new delivery truck for $66,000 on April 1, 2019. The truck is expected to have a service life of 5 years or 90,000 miles and a residual value of $3,000. The truck was driven 12,000 miles in 2019 and 14,000 miles in 2020. Storm computes depreciation expense to the nearest whole month.
Required:
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
In: Accounting
Bar Delivery Company purchased a new delivery truck for $36,000 on April 1, 2019. The truck is expected to have a service life of 5 years or 120,000 miles and a residual value of $3,000. The truck was driven 10,000 miles in 2019 and 18,000 miles in 2020. Bar computes depreciation expense to the nearest whole month.
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
| 2019 | $ |
| 2020 | $ |
In: Accounting
Star & Anderson SAOG. acquired all of the common stock of Wilkinson SAOG. on January 1, 2018. As of that date, Wilkinson had the following trial balance:
|
Particulars |
Debit |
Credit |
|
Sundry Creditors |
30,000 |
|
|
Land & Buildings (10 year life) |
70,000 |
|
|
Additional Paid-in –Capital |
30,000 |
|
|
Sundry Debtors |
25,000 |
|
|
Cash and bank balances |
18,000 |
|
|
Short Term Investments |
17,000 |
|
|
Equity share capital |
150,000 |
|
|
Inventory |
55,000 |
|
|
Plant and Equipment (4 year life) |
120,000 |
|
|
Land |
45,000 |
|
|
Long term borrowings ( Maturity 31/12/2020 |
90,000 |
|
|
Retained earnings (Opening Balance) |
60,000 |
|
|
Supplies |
10,000 |
|
|
Total |
360,000 |
360,000 |
During 2018, Wilkinson SAOG reported net income of OMR 48,000 while paying dividends of OMR 6,000.
During 2019, Wilkinson SAOG reported net income of OMR 66,000
while paying dividends of OMR 18,000.
Assume that Star & Anderson SAOG. acquired the
common stock of Wilkinson SAOG. for OMR 294,000 in cash. As of
January 1, 2018, Wilkinson SAOG land had a fair value of OMR
51,000, its buildings were valued at OMR 94,000, and its equipment
was appraised at OMR 108,000. Any excess of consideration
transferred over fair value of assets and liabilities acquired is
due to an unamortized patent to be amortized over 5 years.
Star & Anderson SAOG decided to use the equity methodfor this investment.
Required: Prepare consolidation worksheet entriesfor December 31, 2018.
In: Accounting
Cybernetronics Inc. (Cyber) is a Canadian-owned public company which designs and manufactures communications and control systems. The company's year end is May 31. It is now June 2018.
You, CPA, are the manager for the audit of Cyber and yesterday had met with the treasurer to discuss the year-end audit. The partner responsible for this client has asked you to prepare a report for the client which discusses important financial accounting issues and a memo to him regarding the audit issues you believe are important.
Notes from the Meeting with the Treasurer
In June 2017, Cyber entered into an agreement with a university whereby Cyber received assistance in the development of fuzzy logic software which was to have been used in the robots designed for the contract with the mining company. The agreement requires Cyber to make an annual contribution of $0.5 million to the university for four years. The first payment of $0.5 million was made in March 2018 when the university's work was completed.
Management of Cyber is confident that the technology developed, including the fuzzy logic software, can be applied to future contracts involving the design of robots.
Cyber entered into a five-year lease on June 1, 2017 for facilities dedicated to the design and future manufacture of the robots for the mining company. Management of Cyber is presently negotiating a buy-out of the lease and has offered to make lump-sum payment of $750,000 to the lessor on September 1, 2018. The annual lease payment is $500,000.
The draft balance sheet prepared for Cyber's May 31 year end included capitalized design and development costs in the amount of $8.2 million. This amount includes the $0.5 million paid to the university. The draft income statement includes the $12 million cancellation penalty as 'other income -- gain on cancellation of contract'.
*Identify the accounting and auditing issues*
In: Accounting
One Laptop per Child Nicholas Negroponte is the founder of the MIT Media Lab and has spent his career pushing the edge of the information revolution as an inventor, thinker, and angel investor. His latest project, One Laptop per Child, plans to build $100 laptops that he hopes to put in the hands of millions of children in developing countries around the globe. The XO (the "$100 laptop") is a wireless, Internet-enabled, pedal-powered computer costing roughly $100. What types of competitive advantages could children gain from Negroponte's $100 laptop? What types of issues could result from the $100 laptop? Explain each of the efficiency metrics and effectiveness metrics that are required for each laptop to be considered successful.
In: Accounting
In: Economics
In: Accounting
7. Assume you are asked in an interview: Give one word that describes you best? Then, explain why it is important in effective leadership?
In: Accounting