The following information is available for the McCain Manufacturing Company for 2020.
Accounts receivable, January 1, 2020 $120,000
Accounts payable, January 1, 2020 ?
Raw materials, January 1, 2020 10,000
Work in process, January 1, 2020 25,000
Finished goods, January 1, 2020 75,000
Accounts receivable, December 31, 2020 80,000
Accounts payable, December 31, 2020 200,000
Raw materials, December 31, 2020 ?
Work in process, December 31, 2020   60,000
Finished goods, December 31, 2020 50,000
Raw materials used in production   100,000
Raw materials purchased 130,000
Accounts receivable collections ?
Accounts payable payments 80,000
Sales ?
Total manufacturing costs ?
Cost of goods manufactured ?
Cost of goods sold 60% of Sales
Gross margin 400,000

Assume that all raw materials are purchased on credit and all sales are credit sales. Compute the missing amounts above.

On July 1, 2019, the first day of its 2020 fiscal year, the Town of Bear Creek issued at par $4,200,000 of 8 percent term bonds to renovate a historic wing of its main administrative building. The bonds mature in five years on July 1, 2024. Interest is payable semiannually on January 1 and July 1.

As illustrated in the table below, a sinking fund is to be established with equal semiannual additions made on June 30 and December 31. Cash for the sinking fund additions and the semiannual interest payments will be transferred from the General Fund shortly before the due dates. Investment earnings are added to the investment principal.

Required

1.      a-1. Prepare journal entries in the debt service fund for the following: (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)

On July 1, 2019, record the budget for the fiscal year ended June 30, 2020. Include all inter-fund transfers to be received from the General Fund during the year. An appropriation should be provided only for the interest payment due on January 1, 2020.

A, Term Bond Debt Service Fund:

On December 28. 2019, the General Fund transferred $517,882 to the debt service fund. The addition to the sinking fund was immediately invested in 8 percent certificates of deposit.

B1. Tern Bond Debt Service Fund: Record the transfer fro the general fund to the debt service fund

B2. Record the investment in the certificates of deposit.

On December 28, 2019, the city issued checks to bondholders for the interest payment due on January 1, 2020.

C. Term Bond Debt Service Fund:

On June 27, 2020, the General Fund transferred $517, 822 to the debt service fund. The addition for the sinking fund was invested immediately in 8 percent certificates of deposit.

D1. Term Bond Service Fund: Record the transfer from the general fund to the debt service fund.

D2. Record the investment in the certificates of deposit

Actual interest earned on sinking fund investments at year end (june 30, 2020) was the same as the amount budgeted in the table. This interest adds to the sinking fund balance.

E. Term Bond Service Fund

Comparative balance sheets: 2019 and 2020, an income statement for 2020 are provided below for Dandelion’s shop.

Balance Sheet

As of December 31^st

Income Statement

During the Year Ended December 31^st

Additional Information from the 2020 accounting records:

1. Dandelion owns a 10% of Acorn Inc. which is labeled as a Trading Security that increased in market value during 2020. Acorn gave out $1,100 worth of dividends to all of its owners during 2020.

2. Machinery (part of the Plant Property and Equipment value) with an original cost of $1,000 was sold. Depreciation was calculated using the straight-line method and exactly 90% of its useful life was used up.

3. $1,600 worth of equipment was purchased by issuing a bond. All other Property, Plant, and Equipment purchases were made in cash.

4. Depreciation is included as part of Operating Expense.

5. 100% of Convertible bonds were exchanged for 100 shares of $1 par common stock.

Instructions:   Prepare the statement of cash flow under the indirect method. Your finished product should have all the information disclosed on a formal statement, including a list of noncash transactions.

***Please explain/show work how you got each amounts***

Kitts Ltd. has recently decided to go public and has hired you as their independent accountant. They wish to adhere to IFRS and know that they must prepare a statement of cash flows. Their financial statements for 2020 and 2019 are provided below:

Statements of Financial Position

                                                                     Dec 31/2020           Dec 31/2019

Cash.............................................                   $ 51,000                  $ 24,000

Accounts receivable........................                     45,000                     27,000

Merchandise inventory....................                     48,000                     60,000

Property, plant and equipment..........   $ 76,000                  $ 120,000

     Less accumulated depreciation.... (40,000)       36,000    (38,000)    82,000

Total Assets                                                    $ 180,000                $ 193,000

Accounts payable............................                   $ 17,000                 $ 12,000

Income taxes payable.....................                     34,000                     44,000

Dividends payable………………………………                       2,000                          -0-

Deferred income tax liability………………                     10,000                       5,000

Bonds payable................................                     50,000                     80,000

Unamortized bond discount……………….                     (2,000)                     (5,000)

Common shares.............................                     27,000                     27,000

Retained earnings...........................                      42,000                     30,000

Total Liabilities & Shareholders’ Equity                $ 180,000                $ 193,000

Statement of Comprehensive Income

Year ended December 31, 2020

Sales........................................................................................... $ 1,050,000

Cost of sales................................................................................       894,000

Gross profit..................................................................................       156,000

Selling and administrative expenses................................................         99,000

Income from operations................................................................         57,000

Interest expense..........................................................................           9,000

Income before taxes.....................................................................         48,000

Income taxes...............................................................................         12,000

Net income.................................................................................. $      36,000

The following additional data were provided for the year ended December 31, 2020:

1.   Dividends were declared.

2.   Equipment was sold for $30,000. This equipment originally cost $ 44,000, and had accumulated depreciation of $8,000 at the time of sale. Any gains, losses or other expenses not separately disclosed are included in “selling and administrative expenses”.

3.   Bonds were retired during the year for proceeds equal to their carrying value. The unamortized discount associated with the bonds redeemed was $2,000.

Required #1:

From the information above, prepare, in good form, a Statement of Cash Flows under the direct method to the extent the information provided permits all disclosures, for the year ended December 31, 2020. Show supporting calculations only in area indicated; not in the body of the good form presentation.

Kitts Limited

Statement of Cash Flows For the Year ended December 31, 2020

Supporting calculations:

Required #2:

Prepare, in good form, the cash from operations only under the indirect method of presentation. Kitts Limited wishes to disclose any separate disclosures as regards interest and taxes in the body of the cash flow from (used in) operations sections and not as a separate disclosure. Show any supporting calculations in the area indicated, not in the body of the good form presentation.

Kitts Limited

Statement of Cash Flows (Operations Only) For the Year ended December 31, 2020

Supporting calculations:

1.      In country Water, there are only 2 goods: Wave and Fish. The following table shows the prices and quantities produced of these goods in 2005, 2010, and 2015:

i)      Calculate NGDP, RGDP, GDP Deflator for all the three years.

ii)    Calculate cost of basket, CPI for the same years

iii)  Calculate inflation for year 2015 from 2010 using both GDP deflator and CPI. Does the answer vary between the two methods? Explain why or why not   

2. A) What are the main differences between financial market and financial intermediary? Why would you choose to diversify your bonds and stocks when you have the alternative option of buying stocks/ bonds of a big amount from a single organization?

B) What happens in the labor market when companies follow Minimum Wage Law? Explain with a graph. Remember to explain the supply, demand of available labor in the market and the ongoing minimum wage of the market

On January 1, 2010 Fiberglass Industries was authorized to issue 750,000 shares of 3.00 par common stock, and 40,000 shares of 4% $25 par cumulative preferred stock.

Required: Using the information below, prepare the Stockholders' Equity Section of the Balance Sheet at December 31, 2011.

2010:

Jan 4th issued 100,000 shares common stock at $5/ share.

Jan 5th issued 10,000 shares preferred stock at $40/ share.

Feb 1st Issued 60,000 shares of common stock in exchange for a shop with an estimated fair market value of $367,500.

Aug 31st Declared a $.20 cash dividend on common stock.

Dec 31st Net Income was $1,537,900 for 2010.

2011:

Mar 1st Declared and distributed a 5% common stock dividend. The company's common stock was selling for $6 per share when the stock dividend was declared.

May 15th Purchase 4,000 shares of their own common stock for $7/share.

Aug 31st Declared a $.25 cash dividend on common stock.

Nov 15th Sold 2,000 shares of the treasury stock for 22,000 Dec 31st

Net income was $1,323,380 for 2011.

Use a government website (such as BEA.gov, historical data) and complete the data for the components of GDP 2010-2017. You should only report data on personal consumption expenditures, gross private domestic investment spending, government purchases, net exports (in a base year). Then, add up all of these components to get the GDP for 2010-2017 in a base year price. In other words, complete the following table.

HINT: A. go to www.bea.gov B. Under U.S. Economic accounts, select GDP C. Under the latest NIPA tables, select interactive NIPA tables D. Choose frequently requested NIPA tables. Please note that every year they change these tables. Finally, select First and Last year. Report the data for the last quarter of each year (fourth quarter).For example, for the year 2013, select the GDP and its components reported for the fourth quarter of this year. Do the same thing for other years and complete the following table.

Urban Brains and Rural Brains A study published in 2010 showed that city dwellers have a 21% higher risk of developing anxiety disorders and a 39% higher risk of developing mood disorders than those who live in the country. A follow-up study published in 2011 used brain scans of city dwellers and country dwellers as they took a difficult math test. To increase the stress of the participants, those conducting the study tried to humiliate the participants by telling them how poorly they were doing on the test. The brain scans showed very different levels of activity in stress centers of the brain, with the urban dwellers having greater brain activity than rural dwellers in areas that react to stress.

(a) Is the 2010 study an experiment or an observational study?

(b) Can we conclude from the 2010 study that living in a city increases a person's likelihood of developing an anxiety disorder or mood disorder?

(c) Is the 2011 study an experiment or an observational study?

(d) Can we conclude from the 2011 study that living in a city increases activity in stress centers of the brain when a person is under stress?

Reliable Manufacturing, Inc. is a calendar year, accrual method C Corporation that is the business of manufacturing widgets. Its taxable income averages $2,000,000 each year. On June 1, 2010, Reliable Manufacturer purchased a new manufacturing building in Minneapolis for $2,500,00. The land was allocated $500,000 and the building was allocated $2,000,000 of the purchase price. The building will be placed in service immediately upon purchase. Reliable Manufacturer occupied the building from June 1, 2010 through October 29, 2017. Reliable Manufacturer has entered into a purchase agreement to sell the land and the manufacturing building on October 29, 2017. a) What is the maximum tax cost recovery deduction Reliable Manufacturer can take on the manufacturing building in 2010? Please show your work and explain your calculations. b) What is the maximum tax cost recovery deduction Reliable Manufacturer can take on the manufacturing building in 2015 and 2016? Please show you work and explain your calculations. c) What is the maximum tax cost recovery deduction Reliable Manufacturer can take on the manufacturing building in 2017? Please show your work and explain your calculations.