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.

trial balance of pioneer corp. on July 1, 2010 is:

account -------------------debit ---------------credit

cash............................ $26,000   

accounts receivable...... $4,500

accounts payable....................................$2,000

common stock.........................................$10,000

retained earnings.....................................$18,500

total...............................$30,500 .............$30,500

transactions during august 2010

a.loan of $45,000 from chasebank in note form

b.bought land for $40,000 cash

c. received $5,000 for services performed for customer

d. bought $300 supplies on credit

e. paid $1000 on account

f. paid salary expenses of $3000

g.received $3000 on account

h. declared dividend of $1,800

i. paid the $1,800 dividend declared in ( h. )

1)Journalize the transactions (a - i)

2)Post to the general ledger (a - i)

calculate the total only if its a permanent account

cash, accounts receivable, supplies, land, accounts payable, notes payable, dividends payable, retained earnings, dividends, revenue, salary expense, common stock.

3) create a trial balance for pioneer corp. on august 30, 2010. Pre-Closing

---do the appropriate closing journal entries

---set up a post closing trial balance.

Nanotechnology is a field of research and innovation concerned with building 'things' - generally, materials and devices - on the scale of atoms and molecules. A nanometre is one-billionth of a metre: ten times the diameter of a hydrogen atom. The diameter of a human hair is, on average, 80,000 nanometres. At such scales, the ordinary rules of physics and chemistry no longer apply. For instance, materials' characteristics, such as their colour, strength, conductivity and reactivity, can differ substantially between the nanoscale and the macro. Carbon 'nanotubes' are 100 times stronger than steel but six times lighter.

make a case study should consider either :

1. Methods of nano-particle manufacturing
2. Application of nano-particle in chemical engineering field.

1a. Describe the five characteristics of an innovation that assist in determining the rate of acceptance or resistance of the market to a product. Please provide examples.

1b. What has become the primary vehicle for doing business in many foreign countries? Explain and justify your answer with example(s).

1c. What are the various techniques that can be used to motivate middlemen? Please illustrate your answer with examples.