International Trade and Politics are very much in the news today.

•Research current event articles on American International Trade agreements with GATT, TIP and NAFTA.

•Explain the Trump Administration’s view is on these agreements, how the view differs from the last administration, and what effect it has on current American Trade.

Early in 2016, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2016 and was completed on December 31, 2016 Dobbs made the following payments to Kiner, Inc. during 2016:

In order to help finance the construction, Dobbs issued the following during 2016:

In addition to the 9% bonds payable, the only debt outstanding during 2016 was a $357,000, 12% note payable dated January 1, 2012 and due January 1, 2019, with interest payable annually on January 1.

Compute the amounts of each of the following:

Early in 2017, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2017 and was completed on December 31, 2017. Dobbs made the following payments to Kiner, Inc. during 2017:

In order to help finance the construction, Dobbs issued the following during 2017:

In addition to the 9% bonds payable, the only debt outstanding during 2017 was a $1,247,000, 12% note payable dated January 1, 2013 and due January 1, 2023, with interest payable annually on January 1.

Compute the amounts of each of the following:

Early in 2020, Dobbs Corporation engaged Kiner, Inc. to design and construct a complete modernization of Dobbs's manufacturing facility. Construction was begun on June 1, 2020 and was completed on December 31, 2020. Dobbs made the following payments to Kiner, Inc. during 2020:

In order to help finance the construction, Dobbs issued the following during 2020:

In addition to the 9% bonds payable, the only debt outstanding during 2020 was a $518,500, 12% note payable dated January 1, 2016 and due January 1, 2023, with interest payable annually on January 1.

Compute the amounts of each of the following:

Timpco, a retailer, makes both cash and credit sales (i.e., sales on open account). Information regarding budgeted sales for the last quarter of the year is as follows: October November December Cash sales $ 100,000 $ 120,000 $ 80,000 Credit sales 100,000 150,000 90,000 Total $ 200,000 $ 270,000 $ 170,000 Past experience shows that 5% of credit sales are uncollectible. Of the credit sales that are collectible, 60% are collected in the month of sale; the remaining 40% are collected in the month following the month of sale. Customers are granted a 1.5% discount for payment within 10 days of billing. Approximately 75% of collectible credit sales take advantage of the cash discount. Inventory purchases each month are 100% of the cost of the following month’s projected sales. (The gross profit rate for Timpco is approximately 30%.) All merchandise purchases are made on credit, with 25% paid in the month of purchase and the remainder paid in the following month. No cash discounts for early payment are in effect. Required: 1. Calculate the budgeted total cash receipts for November and December. (Round your discount factor to 3 decimals places. Round your other intermediate calculations and the final answers to the nearest whole dollar amount.) 2. Calculate budgeted cash disbursements for November and December (budgeted total sales for January of the coming year equals $200,000).

Answer the following three questions. You can use any reference to write your answers (e.g., textbook, articles, internet web pages, etc.

1. Your boss told you that he wants to put you on charge of the opening ceremony for company new plant in Jeddah. He gives you the authority to choose your team members and to make all necessary decisions. The ceremony will be held on October 30th. Explain in details how are you going to manage your team throughout the assignment.

2. One day you came back home to find your older brother setting there. You asked him: “Why did you come early from work?” He replied: ”I did not go to work today.” You noticed that he was frustrated and nervous. Obviously, his job satisfaction is low. Using what you have learned from this course, explain in details what are the possible reasons for his dissatisfaction.

3. You have decided to become the president of the student club at the college. Based on what you have learned from the topics of leadership, power & politics, and conflict & negotiation, explain in details how you are going to practice your leadership role as the club president.

Sales-Related Transactions

Showcase Co., a furniture wholesaler, sells merchandise to Balboa Co. on account, $47,500, terms n/30. The cost of the goods sold is $28,500. Showcase issues a credit memofor $9,500 for merchandise returned prior to Balboa paying the original invoice. The cost of the merchandise returned is $5,700.

a. Journalize Showcase Co.'s entries for (1) the sale, including (2) the cost of the goods sold.

b. Journalize Showcase Co.'s entries for (1) the credit memo, including (2) the cost of the returned merchandise.

c. Journalize Showcase Co.'s entry for the receipt of the check for the amount due from Balboa Co.

Equity as an option Tucci Co. is a manufacturing firm. Tucci Co.’s current value of operations, including debt and equity, is estimated to be $25 million. Tucci Co. has $10 million face-value zero coupon debt that is due in two years. The risk-free rate is 5%, and the volatility of companies similar to Tucci Co. is 50%. Tucci Co.’s performance has not been very good as compared to previous years. Because the company has debt, it will repay its loan, but the company has the option of not paying equity holders. The ability to make the decision of whether to pay or not looks very much like an option. Based on your understanding of the Black-Scholes option pricing model (OPM), calculate the following values and complete the table. (Note: Use 2.7183 as the approximate value of e in your calculations. Also, do not round intermediate calculations. Round your answers to two decimal places.) Tucci Co. Value (Millions of dollars) Equity value Debt value Debt yield Tucci Co.’s management is implementing a risk management strategy to reduce its volatility. Complete the following table, assuming that the goal is to reduce Tucci Co.’s volatility to 30%. Tucci Co. Goal (Millions of dollars) Equity value at 30% volatility Debt value at 30% volatility Debt yield at 30% volatility Complete the following sentence, assuming that Tucci Co.’s risk management strategy is successful: If its risk management strategy is successful and Tucci Co. can reduce its volatility, the value of Tucci Co.’s stock will , and the value of its debt will .

The following selected transactions were completed during August between Summit Company and Beartooth Co. Both companies use the net method under a perpetual inventory system.

Journalize the August transactions for (1) Summit Company and (2) Beartooth Co. Refer to the Chart of Accounts of the appropriate company for exact wording of account titles.

On December 31, 2017, Turnball Associates owned the following securities, held as a long-term investment. The securities are not held for influence or control of the investee.

Common Stock

Gehring Co. Wooderson Co. Kitselton Co.

Shares

2,000 5,000 1,500

Cost

$60,000 45,000 30,000

On December 31, 2017, the total fair value of the securities was equal to its cost. In 2018, the following transactions occurred.

Aug. 1 Sept. 1 Oct. 1 Nov. 1 Dec. 15

31

Received $0.50 per share cash dividend on Gehring Co. common stock. Sold 1,500 shares of Wooderson Co. common stock for cash at $8 per share. Sold 800 shares of Gehring Co. common stock for cash at $33 per share. Received $1 per share cash dividend on Kitselton Co. common stock. Received $0.50 per share cash dividend on Gehring Co. common stock. Received $1 per share annual cash dividend on Wooderson Co. common stock.

At December 31, the fair values per share of the common stocks were: Gehring Co. $32, Wooderson Co. $8, and Kitselton Co. $18.

Instructions

(a) Journalize the 2018 transactions and post to the account Stock Investments. (Use the T-account form.)

(b) Prepare the adjusting entry at December 31, 2018, to show the securities at fair value. The stock should be classified as available-for-sale securities.

(c) Show the balance sheet presentation of the investments at December 31, 2018. At this date, Turnball Associates has common stock $1,500,000 and retained earnings $1,000,000.