Purchase-Related Transactions Using Perpetual Inventory System

The following selected transactions were completed by Niles Co. during March of the current year:

Required:

Journalize the entries to record the transactions of Britt Co. for March.

Purchase-Related Transactions Using Perpetual Inventory System

The following selected transactions were completed by Niles Co. during March of the current year:

Required:

Journalize the entries to record the transactions of Britt Co. for March.

Purchase-Related Transactions Using Perpetual Inventory System

The following selected transactions were completed by Niles Co. during March of the current year:

Required:

Journalize the entries to record the transactions of Britt Co. for March.

Read the article of “Our Big Mac index of global currencies reflects the dollar’s strength”.

It is perhaps not surprising that the worst-performing major currency in the world this year is the Turkish lira. Many emerging-market currencies have taken a battering since the election in November of Donald Trump raised expectations of faster monetary tightening in America and sent the dollar soaring. But the lira has many other troubles to contend with, too: terrorist bombings, an economic slowdown, alarm over plans by the president, Recep Tayyip Erdogan, to strengthen his powers, and a central bank reluctant to raise interest rates to defend the currency. It has plunged to record lows. According to the Big Mac index, our patty-powered currency guide, it is now undervalued by 45.7% against the dollar. The Big Mac index is built on the idea of purchasing-power parity, the theory that in the long run currencies will converge until the same amount of money buys the same amount of goods and services in every country. A Big Mac currently costs $5.06 in America but just 10.75 lira ($2.75) in Turkey, implying that the lira is undervalued. However, other currencies are even cheaper. In Big Mac terms, the Mexican peso is undervalued by a whacking 55.9% against the greenback. This week it also plumbed a record low as Mr Trump reiterated some of his campaign threats against Mexico. The peso has lost a tenth of its value against the dollar since November. Of big countries, only Russia offers a cheaper Big Mac, in dollar terms, even though the rouble has strengthened over the past year. The euro zone is also prey to political uncertainty. Elections are scheduled this year in the Netherlands, France and Germany, and possible in Italy. The euro recently fell to its lowest level since 2003. Britain’s Brexit vote has had an even bigger effect on the pound, which has fallen to $1.21, a 31-year low. According to the Big Mac index, the euro and the pound are undervalued against the dollar by 19.7% and 26.3%, respectively. One of the drawbacks of the Big Mac index is that it takes no account of labour costs. It should surprise no one that a Big Mac costs less in Shanghai than it does in San Francisco, since Chinese workers earn far less than their American counterparts. So in a slightly more sophisticated version of the Big Mac index, we take account of a country’s average income. Historically, this adjustment has tended to raise currencies’ valuations against the dollar, so emerging-market currencies tend to look more reasonably priced. The Chinese yuan, for example, is 44% undervalued against the dollar according to our baseline Big Mac index, but only 7% according to the adjusted one. The deluxe Big Mac index has typically made and lower incomes than Americans, the euro has traded at around a 25% premium against the dollar in income-adjusted burger terms since the euro’s inception. But what once seemed to be an immutable axiom of burgernomics is true no longer. So strong is the dollar that even the adjusted Big Mac index finds the euro undervalued. The dollar is now trading at a 14-year high in trade-weighted terms. Emerging-world economies may struggle to pay off dollar-denominated debts. American firms may find themselves at a disadvantage against foreign competition. And American tourists will get more burgers for their buck in Europe.

Answer the following questions.

(a) The Big Mac index indicates that the Turkish lira, Mexican peso, euro and even Chinese yuan are undervalued against the US dollar. Following the philosophy of the Big Mac index – the purchasing-power parity, demonstrate how the U.S. inflation rate will adjust in response to the undervaluation.

(b) “But what once seemed to be an immutable axiom of burgernomics is true no longer.” Is the Big Mac index still able to examine whether currencies are over- or undervalued? Please elaborate your answer.

(c) Please comment the statement below. “No matter is the U.S. or emerging countries, the currencies are highly correlated with each other under the globalization. Hence, the currency correlations would be perfectly stable lastly.”

Create an e-marketing plan to support American Eagle Outfitters in their choice. This plan must include aspects of the RACE Digital Marketing Planning Framework.

Tactics – This cover the RACE tactics

a. Which digital marketing activities for American Eagles Outfitters will be optimised and why

b. Identify Key performance Indicators (KPIs) for each tactic

1. You are driving into St. Louis, Missouri, and in the distance you see the famous Gateway-to-the-West arch. This monument rises to a height of 192 m. You estimate your line of sight with the top of the arch to be 6.83 ° above the horizontal. Approximately how far (in kilometers) are you from the base of the arch?

Numbers ______ Units_____

2. A highway is to be built between two towns, one of which lies 44.0 km south and 76.9 km west of the other. (a) What is the shortest length of highway that can be built between the two towns, and (b) at what angle would this highway be directed, as a positive angle with respect to due west?

A. Numbers _____ Units____

B. Numbers_______ units____

3.

Vector A→ has a magnitude of 79 units and points due west, while vector B→ has the same magnitude and points due south. Find the magnitude and direction of (a) A→+B→ and (b) A→-B→. Specify the directions relative to due west.

(a) Magnitude and direction of A→+B→ = ______ and __________

(b) Magnitude and direction of A→-B→ =  and ^o  north of west or south of west?

4.

A force vector has a magnitude of 584 newtons and points at an angle of 40^o below the positive x axis. What are (a) the x scalar component and (b) the y scalar component of the vector?

(a)  F_x = Number  ______ Units_____

(b)  F_y = Number  Units _______

The Bartonia Company manufactures grommets in Georgia and sell them directly to industrial customers in Georgia, Florida, and South Carolina. The company’s profit for last year was $20,000,000. The company has its manufacturing plant and headquarters in Georgia, warehouses in South Carolina and Florida, and sales forces in each state. Here are some of its financial statistics:

1. Suppose each state uses a simple three-factor apportionment formula. What share of company profit would each state tax?

2. Make that same calculation, but suppose each state double-weights the sales factor.

3. Make the calculation with each using only the sales factor.

4. Assume now that GA adopts the single sales factor and the other states use double-weighted sales.

5. Assume now that South Carolina adopts the single sales factor and the other states use double-weighted sales.

6. Explain why manufacturing firms in some states have pressed for use of the single sales factor. Why have nationwide business organizations not made this switch an issue?

Please answer all parts.

Use the following information for the next 17 questions on this practice quiz: Assume that it takes South Africa 400 units of labor to produce a ton of steel and 1600 units of labor to produce a carat of diamonds. Assume it takes India 500 units of labor to produce a ton of steel and 2500 units of labor to produce a carat of diamonds. Assume that each country has 24,000 units of labor and before trade, each country splits their labor evenly between steel and diamond production. Assume that when the countries decide to trade, the country specializing in steel production specializes in steel production only Assume that when the countries decide to trade, the country that specializes in diamond production uses 4000 units of labor for steel production and the rest (20,000 units of labor) for diamond production. Assume that when the countries trade, there are a total of 5 carats of diamonds traded at a rate of 4.6 tons of steel per carat of diamonds.

After trade, how many tons of steel does South Africa consume?

After trade, how many carats of diamonds does South Africa consume?

After trade, how many tons of steel does India consume?

After trade, how many carats of diamonds does India consume?

The Bartonia Company manufactures grommets in Georgia and sell them directly to industrial customers in Georgia, Florida, and South Carolina. The company’s profit for last year was $20,000,000. The company has its manufacturing plant and headquarters in Georgia, warehouses in South Carolina and Florida, and sales forces in each state. Here are some of its financial statistics:

1. Suppose each state uses a simple three-factor apportionment formula. What share of company profit would each state tax?

2. Make that same calculation, but suppose each state double-weights the sales factor.

3. Make the calculation with each using only the sales factor.

4. Assume now that GA adopts the single sales factor and the other states use double-weighted sales.

5. Assume now that South Carolina adopts the single sales factor and the other states use double-weighted sales.

6. Explain why manufacturing firms in some states have pressed for use of the single sales factor. Why have nationwide business organizations not made this switch an issue?

Please answer all parts.

You are a manager in the business consultancy department of Eagle & Co, a firm of Chartered Certified Accountants. You have been assigned to perform a due diligence review for Panther Co, an existing audit client of your firm. Panther Co is involved in the manufacture of automobile parts. The company is currently being audited by a separate audit team to reduce any potential self-review threat to an acceptable level, and you have no prior involvement in its audit.

The scope of the engagement involves conducting a due diligence review on the fundamentals of Flamingo Co, a prospective acquisition target identified by Panther Co for the potential to realize synergies from the proposed business combination and expand its existing manufacturing plants. You have been requested to analyze Flamingo Co's operating profit forecasts and perform a valuation of its net assets as part of your assignment. The outcome of your review will aid Panther Co in ascertaining a suitable purchase consideration for the acquisition of Flamingo Co.

The following matters have been identified by your team during the engagement fieldwork and referred to you for your further consideration:

1. During the review of Flamingo Co's correspondence with its customers, a letter from Pelican Co, a large distribution centre, was discovered. In the letter, Pelican Co expressed its intention of not renewing their trade contract with Flamingo Co upon the expiration of the current one. The reason cited for this was that they are switching to a different supplier, a new market entrant, whose prices are far more competitive than Flamingo Co. Historically, Flamingo Co has supplied bespoke parts to Pelican Co, and preliminary analytical procedures revealed that Pelican Co accounts for an average of 4% of Flamingo Co's annual revenues.

2. Flamingo Co possesses a parcel of land which was gifted to it by the municipal council a decade ago. The land is a protected nature reserve and is located adjacent to Flamingo Co's main manufacturing site. Encumbrances were stipulated in the land's title deed which limit the manner in which the land may be used and to whom the land may be sold to. The land has a carrying value of nil in the company's non-current asset register.

Required:

In respect of each matter highlighted above:

(i) Explain why it requires further consideration as part of your due diligence review,

(ii) Recommend the examination procedures to be carried out.