Below is a table of the growth of the Corona Virus in USA and the requests for masks.

Using causal with masks being the dependent variable. Generate a forecast for the number of masks requested based on the number of Corona cases in the USA. Use a linear regression line. Write the equation as y-hat = a + bx. X is the number of Corona cases and y-hat is the number of masks requested.

What is the value of "a"?

What is the value of "b" ? (Three decimals for both answer.)

Rell Corporation reports under IFRS No. 9. Rell has an investment in Tirish, Inc. bonds the Rell accounts for at amortized cost, given that the bonds pay only interest and principal and Rell's business purpose is to hold the bonds to maturity. Rell purchased the bonds for €10,600,000. As of December 31, 2018, Rell calculates €816,000 of credit losses expected for default events occurring during 2019 and €510,000 of credit losses expected for default events occurring after 2019.

Required: 1. Assume the Tirish bonds have not had a significant increase in credit risk. Prepare the journal entry to record any impairment loss as of December 31, 2018.

2. Assume the Tirish bonds have had a significant increase in credit risk. Prepare the journal entry to record any impairment loss as of December 31, 2018.

3. Assume the Tirish bonds have not had a significant increase in credit risk, and that as of December 31, 2019, Rell calculates €710,000 of credit losses expected for default events occurring during 2020 and €410,000 of credit losses expected for default events occurring after 2020. Prepare the journal entry Rell would make with respect to any impairment loss as of December 31, 2019.

Projecting NOPAT and NOA Using Parsimonious Forecasting Method

Following are Cisco Systems’ sales, net operating profit after tax (NOPAT), and net operating assets (NOA) for its year ended July 31, 2016 ($ millions).

Use the parsimonious method to forecast Cisco’s sales, NOPAT, and NOA for years 2017 through 2020 using the following assumptions.

Rounding instructions:

Round total revenue "unrounded" to two decimal places.

Round total revenue "rounded", NOPAT and NOA answers to the nearest whole number.

For NOPAT and NOA computations, use total revenue "rounded".

First Cup Ltd., a Canadian coffee retailer and roaster which operates more than 1,000 cafes in Canada, reported the following balances as at December 31, 2020:

7% Par $100 convertible bonds, issued at par $250,000

      3,000 call options, each entitled to purchase 1 common shar

Cumulative Preferred shares, 36,000 convertible shares outstanding    $960,000

Common shares, 112,500 shares issued and outstanding $2,880,000

Contributed surplus on repurchase of common shares $31,200

Retained earnings $1,032,000

First Cup Ltd. applies IFRS. The company also informed you details related to the following transactions during 2020:

a]   On February 1, the company declared and distributed a 20% stock dividend for its common shareholders. The shares were being traded in the market at $30.

b]   On March 1, it acquired 18,000 of its own common shares in the market at $30.00 per share and retired them on the same day.

c]   On April 1, the company issued 17,500 common shares in exchange for plant and equipment assessed at $336,000.

d]   On May 1, 40% of the call option holders exercised their options when the market price of the common share was $31. As these options were issued before stock dividends, options holders receive an increased number of shares considering a 20% stock dividends (i.e. adjust for stock dividend).

e]   On May 15, the company declared a 3:1 stock split on common shares. The common shares were being traded at the adjusted market price of $32.00 per share

f]   On August 1, the company issued share certificates for 3,708 common shares to subscribers who had applied to an earlier share subscription issue. These subscribers had paid for the shares they had subscribed at $34 per share.

g]   On October 1, 20% of the bond holders submitted their bonds to the company for conversion into common shares. As the bonds were issued before stock dividends and stock split, the number of shares given to reward conversion need to be adjusted consequently.

h]   No Dividends have been declared in the previous two years. Dividends for the current year were also not declared.

Additional Information

i]    The cumulative preferred shares had been issued several years ago when the company was incorporated. Cumulative preferred shares carried a dividend rate of $2.10 per share and as at January 1, 2020, one preferred share could be converted into two common shares.

ii] The company reported earnings from operations of $1,847,790 for 2020. There were no discontinued items to report in 2020.

iii] The bonds had been issued at par in 2017. Assume No premium was charged for the conversion rights and debt was credited for the full amount received. Each $100 bond was convertible into 8 common shares.

Required:

Determine the weighted average number of shares for determining the basic earnings per share for 2020 using this template

In the spring of 2019, Patrick Egbunonu retired as the tennis pro of the Cataraqui Tennis Club, an exclusive indoor/outdoor club in Kingston, Ontario. A special committee of the board of directors was formed to find a replacement for the combined job of tennis pro and owner of the pro shop and bar lounge. Nine candidates had applied for the position, but the board’s first choice was John “The Racquet” Conrad. His qualifications and experience were excellent, and the committee believed his reputation as the two-time Canadian amateur tennis champion would enhance the status and prestige of the club.

After learning of the job offer, Conrad accepted immediately. He was excited about the opportunity to invest his hard-earned savings into a business he knew and loved. On July 1, 2019, Conrad incorporated the pro shop and bar lounge area and deposited $100,000 into the corporation’s bank account in exchange for common shares. Also, on that day, Conrad purchased an inventory of racquets, balls, clothes, shoes, and accessories (i.e. the pro shop inventory) valued at $16,340, liquor inventory valued at $13,660, $11,000 worth of fixtures and $4,000 of glassware. The business was to receive all sales from the pro shop and bar lounge and would pay part-time help to sell goods and serve drinks. The business uses a perpetual inventory system.

Conrad was an immediate success. He was readily accepted by all the members and was regarded as an asset to the club. Much of his time was spent instructing individuals while the better players anxiously awaited an opportunity to strike up a match with Conrad. Given his busy schedule, Conrad did not keep a close watch on his accounting records. He did, however, attempt to keep an accurate cash record and decided not to worry about the rest until fiscal year-end.

On June 30, 2020, Conrad began to examine his records and notes. His cash records revealed the following:

Cash Records Continued:

1 Conrad was required to pay rent to the club in the amount of $1,500 per month for use of the space.

2 Does not include payment made on July 1, 2019, for initial pro shop inventory

3 Does not include payment made on July 1, 2019, for initial liquor inventory

Conrad was sure his bank account was correct, but he did not know what else he should record. He went to Michelle Paquin, a local chartered professional accountant (CPA) and club member, to ask for help.

Paquin began by examining the chequebook, invoices, and other records Conrad had accumulated in a shoe box. She found two outstanding bills: one for additional lounge fixtures of $4,200 (purchased on June 1, 2020) and a $2,000 invoice for the purchase of pro shop goods for resale (purchased on June 18, 2020), due in 30 days. (These items are not included in the above payments list)

On June 30, 2020, Conrad had 11 racquets in the shop, waiting to be restrung. Although he had done no work on the racquets and had not collected any money from customers, his normal rate for restringing was $175 per racquet, including materials.

The members purchased liquor “chit books” or vouchers in the pro shop for use in the bar lounge. Although the chit book cash receipts of $64,550 were noted, $650 of the chits had not been used as of June 30. These amounts could be carried over to the following year.

The fixtures purchased on July 1, 2019, had an estimated useful life of five years, whereas the new fixtures would last an estimated eight years. Due to frequent breakage, glassware had a much shorter useful life of two years. These assets would be depreciated using the straight-line method with no residual value.

During the year, Conrad instructed 606 sets of lessons for $100 per set. He had also played 155 matches with members, charging $150 per match. Conrad had not yet received payment for four of those matches. Davis felt that the social pressures among the club’s memberships would ensure full payment for all debts owed.

On June 30, 2020, Davis helped Conrad take a physical inventory count and found that there was $17,880 worth of pro shop inventory and $11,920 worth of liquor inventory.

Income taxes are calculated at a rate of 30 per cent of net income before tax.

REQUIRED:

Prepare a worksheet to verify the accuracy of the net income. Check figure: net income before tax should be $35,419. Do not forget to record the income tax expense and income tax payable @ 30% of this amount, thereby resulting in a net income after tax in the amount of $24,793.

Logan Distributing Company of Atlanta sells fans and heaters to retail outlets throughout the Southeast. Joe Logan, the president of the company, is thinking about changing the firm's credit policy to attract customers away from competitors. The present policy calls for a 1/10, net 30 cash discount. The new policy would call for a 3/10, net 50 cash discount. Currently, 30 percent of Logan customers are taking the discount, and it is anticipated that this number would go up to 50 percent with the new discount policy. It is further anticipated that annual sales would increase from a level of $393,000 to $605,000 as a result of the change in the cash discount policy. The increased sales would also affect the inventory level. The average inventory carried by Logan is based on a determination of an EOQ. Assume sales of fans and heaters increase from 14,830 to 22,350 units. The ordering cost for each order is $195, and the carrying cost per unit is $1.45 (these values will not change with the discount). The average inventory is based on EOQ/2. Each unit in inventory has an average cost of $11. Cost of goods sold is equal to 65 percent of net sales; general and administrative expenses are 15 percent of net sales; and interest payments of 14 percent will only be necessary for the increase in the accounts receivable and inventory balances. Taxes will be 40 percent of before-tax income. For average collection period, assume the customer pays on the last day possible (if they are getting the discount, that is day 10; if not, that is day 30 with the original policy and day 50 with the proposed policy).

Part A Compute the accounts receivable balance before and after the change in the cash discount policy. Use the net sales (total sales minus cash discounts) to determine the average daily sales. Round your answer to the nearest whole dollar. What is the accounts receivable balance before the change? What is the accounts receivable balance after the change?

Part B Determine the EOQ before and after the change in the cash discount policy. Translate this into average inventory (in units and dollars) before and after the change in the cash discount policy. Round your answer to the nearest whole unit. What was the EOQ prior to the change? What is the EOQ after the change? What was the average inventory prior to the change? What is the average inventory after the change?

Abc trading provided following information :-

1. Prepare a Cash Flow Statement from the following information for the year ended 30 June 2021.

2. Prepare a Statement in accordance with AASB 107 reconciling net cash flows from

operating activities to operating profit after income tax.

1. Net profit after tax – 50,230 dollars.

2. An item of plant costing $ 60,000 with a carrying value of $16,700 sold during 2020 for $20,000.

3. 25000 Shares issued at 1.50 each (Fully paid on Feb 2021).

4. Abc Trading paid an interim dividend in March 2021 of $4500 and the final proposed dividend from 2020.

1) Calculate daily returns over the sample period.

2) Compute "mean" and "standard deviation" for the daily returns.

3)Calculate the 1-day VaR (99%) on a percentage basis using the calculated mean and standard deviation.

Answer in EXCEL . Use data provided below

Record below listed transactions under the appropriate General Ledger accounts. Be sure to list the Posting Reference number in the space provided under the General Ledger account for each transaction. Remember, each transaction should affect at LEAST two seperate General Ledger accounts.

Posting Reference Date Transaction PR 1 1/1/2020 Record owner's investment of $10,000 cash.

PR 2 1/1/2020 Purchased equipment at a total cost of $6,000. $1,000 of purchase paid with cash and the remainder paid with note payble in the amount of $5,000.

PR 3 1/3/2020 Prepaid three months of insurance expense in the amount of $900 with cash.

PR 4 1/15/2020 Deposited $2,000 for services provided.

PR 5 1/22/2020 Purchased $500 in office supplies with cash.

PR 6 1/31/2020 Deposited $2,500 for services provided.

AJE 1 1/31/2020 Record depreciation for equipment purchased at beginning of January. Equipment total cost was $6,000 with estimate life of 5 years. Record one month of depreciation.

AJE 2 1/31/2020 Record one month of insurance expense for the month of January 2020.

PR 7 2/4/2020 Paid January rent expense of $1,000 with cash.

PR 8 2/7/2020 Received January electricity bill in the amount of $232 to be paid later.

PR 9 2/7/2020 Received January telephone bill in the amount of $85 to be paid later.

PR 10 2/14/2020 Provided $500 in services; payment to be received later.

PR 11 2/25/2020 Paid January electricity bill with cash.

PR 12 2/25/2020 Paid January telephone bill with cash.

PR 13 2/25/2020 Paid $100 on Equipment Note Payable with cash; $84 toward princple and $16 toward interest expense.

PR 14 2/28/2020 Deposited $1,000 from services provided.

AJE 3 2/28/2020 Record depreciation for equipment purchased at beginning of January. Equipment total cost was $6,000 with estimate life of 5 years. Record one month of depreciation.

AJE 4 2/28/2020 Record one month of insurance expense for the month of February 2020.

PR 15 3/4/2020 Paid February rent expense of $1,000 with cash.

PR 16 3/4/2020 Prepaid March 2020 rent expense of $1,000 with cash.

PR 17 3/6/2020 Received February electricity bill in the amount of $200 to be paid later.

PR 18 3/6/2020 Received February telephone bill in the amount of $85 to be paid later.

PR 19 3/9/2020 Received payment for $500 of previously provided services.

PR 20 3/12/2020 Deposited $1,250 for services provided.

PR 21 3/16/2020 Paid $450 in professional fees for legal services with cash.

PR 22 3/25/2020 Paid February electricity bill with cash.

PR 23 3/25/2020 Paid February telephone bill with cash.

PR 24 3/25/2020 Paid $100 on Equipment Note Payable with cash; $84 toward princple and $16 toward interest expense.

PR 25 3/27/2020 Paid $75 for advertising expenses.

PR 26 3/27/2020 Provided $1,200 in services; payment to be received later.

PR 27 3/31/2020 Deposited $2,300 from services provided.

PR 28 3/31/2020 Received bill of $367 for maintenance services provided on equipment to be paid later.

PR 29 3/31/2020 Prepaid $3,000 for three months of rent expense.

PR 30 3/31/2020 Prepaid three months of insurance expense in the amount of $900 with cash.

AJE 5 3/31/2020 Record depreciation for equipment purchased at beginning of January. Equipment total cost was $6,000 with estimate life of 5 years. Record one month of depreciation.

AJE 6 3/31/2020 Record one month of insurance expense for the month of March 2020.

AJE 7 3/31/2020 Record March 2020 rent expense.

AJE 8 3/31/2020 Record March 2020 interest expense on Equipment Note Payable of $16.

AJE 9 3/31/2020 Record March 2020 electricity bill in the amount of $245 to be paid later.

AJE 10 3/31/2020 Record March 2020 telephone bill in the amount of $85 to be paid later.

Kurz Manufacturing is currently an​ all-equity firm with

3535

million shares outstanding and a stock price of

$ 11.50$11.50

per share. Although investors currently expect Kurz to remain an​ all-equity firm, Kurz plans to announce that it will borrow

$ 45$45

million and use the funds to repurchase shares. Kurz will pay interest only on this​ debt, and it has no further plans to increase or decrease the amount of debt. Kurz is subject to a

38 %38%

corporate tax rate.  

a. What is the market value of​ Kurz's existing assets before the​ announcement?

b. What is the market value of​ Kurz's assets​ (including any tax​ shields) just after the debt is​ issued, but before the shares are​ repurchased?

c. What is​ Kurz's share price just before the share​ repurchase? How many shares will Kurz​ repurchase?

d. What are​ Kurz's market value balance​ sheet, and share price after the share​ repurchase?