Pls do not handwritten for easy reading === ===
Question:-
1a) The Singapore "Conceptual Framework for Financial Reporting" on qualitative characteristics deals with the attributes that make financial information useful.
Explain the following 2 qualitative characteristics: (i) Relevance and (ii) Verifiability
1b)Under FRS 115 Revenue from contracts with customers an entity recognizes revenue over time when it transfers control of a good or service over time and, therefore, satisfies a performance obligation over time. For measuring progress towards complete satisfaction of a performance obligation over time, the entity can choose to use the output or input method. Explain and illustrate with suitable examples of what these methods are.

On January 1, 2021, Red Flash Photography had the following balances: Cash, $31,000; Supplies, $9,900; Land, $79,000; Deferred Revenue, $6,900; Common Stock $69,000; and Retained Earnings, $44,000. During 2021, the company had the following transactions:

The following information is available on December 31, 2021:

1. Employees are owed an additional $5,900 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $6,900 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed

Requirement

General Journal

General Ledger

Trial Balance

Income Statement

Statement of SE

Balance Sheet

1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.

2. Record the adjusting entries in the 'General Journal' tab.

3. Review the adjusted 'Trial Balance' as of December 31, 2021.

4. Prepare an income statement for the year ended December 31, 2021, in the 'Income Statement' tab.

5. Prepare the statement of Stockholder's Equity for the year ended December 31, 2021, in the 'Income Statement' tab.

6. Prepare a classified balance sheet as of December 31, 2021 in the 'Balance Sheet' tab.

7. Record the closing entries in the 'General Journal' tab.

2. (a) Consider an insurer that offers 2 types of policy: home insurance and car insurance.
20% of all customers have a home insurance policy, and 92% of all customers have
a car insurance policy. Every customer has at least one of the two types of policies.
Calculate the probability that a randomly selected customer
(i) has home insurance, given that he has car insurance, (3)
(ii) does not have car insurance, given that he has home insurance. (3)
(b) Consider the number of days to maturity of 10 short-term investments below:
85 77 88 78 65 78 57 81 36 90
(i) Make a stem-and-leaf plot for the days-to-maturity data. (3)
(ii) Hence, or otherwise, compute the interquartile range of the data. (4)
(iii) Are there any outliers in the data. (3)
(c) An insurance company has a portfolio of 12,000 policies. Based on past data, the
company estimates that the probability of a claim on any one policy in a year is
0.0045. It assumes no policy will generate more than one claim in a year.
(i) Determine the approximate probability of more than 64 claims from the portfolio of 12,000 policies in a year. (5)
(ii) Determine an approximate equal-tailed interval into which the number of claims
per year will fall with probability 0.95. (2)
(iii) In practice 70 claims were received in a particular year. A Director of the company complains about the range of estimates in part (ii) being wrong. Comment
on the Director’s complaint.

You’ve just joined the Halifax Electrical Products Company as VP Sales and Marketing. As your first assignment, the president of the firm asked you to review the three distribution channels through which it sells its products. You are to recommend strategies to improve efficiency, motivate channel players, and increase sales.

Channel 1: Manufacturer’s Representatives who sell to mid-sized OEM customers.

Channel 2: Industrial Distributors who sell to small OEM customers.

Channel 3: Electrical Wholesalers who sell to dealers who sell to MRO customers.

How would you build more efficiency into the channels? What would you have to do to encourage channel partners to spend more time selling Halifax products? What performance goals would you consider? Examine the key players in the channels along with their wants and needs. Let’s discuss these and other ways to meet the president’s request.

According to the National Bureau of Economic Research, the lengths of business cycles from 1919 to 1995, measured from trough to trough (a trough is the low point) in months, were 61 38 46 50 74 73 98 58 65 44 127 62 74 38 110 57 Find the Standard Deviation, mean, median, mode, and midrange

BUSI 320 Comprehensive Problem 2 FALL D

You have been asked to assess the expected financial impact of each of the following proposals to improve the profitability of credit sales made by your company. Each proposal is independent of the other. Answer all questions. Showing your work may earn you partial credit.

Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poor risks.   Sales are projected to increase by $110,000 per year if credit is extended to these new customers. Of the new accounts receivable generated, 7% are projected to be uncollectible. Additional collection costs are projected to be 4% of incremental sales (whether they actually end up collected or not), and production and selling costs are projected to be 75% of sales. Your firm expects to pay a total of 40% of its income after expenses in taxes.

1)Compute the incremental income after taxes that would result from these projections:

2)Compute the incremental Return on Sales if these new credit customers are accepted:

If the receivable turnover ratio is expected to be 5 to 1 and no other asset buildup is needed to serve the new customers…

3)Compute the additional investment in Accounts Receivable

4)Compute the incremental Return on New Investment

5)If your company requires a 20% Rate of Return on Investment for all proposals, do the numbers suggest that trade credit should be extended to these new customers? Explain.

Proposal #2 would establish local collection centers throughout the region to decrease the time it takes to convert credit payments that are mailed in by check to cash. It is estimated that establishing these collection centers would reduce the average collection time by 2 days.

1)If the company currently averages $40,000 in collections per day, how many dollars will this suggested cash management system free up?

2)If all freed up dollars would be used to pay down debt that has an interest rate of 6%, how much money could be saved each year in interest expense?

3)Do the numbers suggest that this new system should be implemented if its total annual cost is $3600? Explain.

2. Suppose a video game company sells the following two products separately: console and headset. Through a consumer survey group, it has estimated that the following individuals value the two products at the following prices:

a) If the company prices the console at $350 each and the headset at $40 each, how much revenue will the firm receive?

b) If the company prices the console at $200 each and the headset at $60 each, how much revenue will the firm receive?

c) Suppose the company bundles the console and the headset together for a package price of $260 each. What would be the total revenue in this case?

d) Is there a bundle price at which both consumers will purchase the package that yields the highest revenue of any possibility on this page? If so, what will it be? If not, why not?   

a. Your company is evaluating a potential acquisition with annual revenue of $500 million, operating profit of $50 million and after-tax cash flow of $30 million. Your corporate development team believes it has found synergies that can save $50 million in costs which can be realized by year 3. Assuming a 10% weighted average cost of capital what is the maximum price your company should pay for this acquisition?

b. Suppose the potential deal in a question is for a highly cyclical company at peak earnings. If there is a 40% probability of recession by Year 3 and the impact would be negative by 25% of current profit estimates how does this change your answer for a?