A U.S. company, G. Marx Co., purchases and receives video games from a Japanese company, Saki Corporation, on October 20, Year 7. The transaction is denominated in yen and calls for Marx to pay Saki 2 million yen on January 15, Year 8. The spot rate for yen is $.01015 at the time of the transaction. The spot rate is $.01005 on October 31, Year 7, Marx's fiscal year end, and $.01030 on January 15, Year 8.

G. Marx Co. has two wholly owned subsidiaries, H. Marx of Canada and C. Marx of France. Functional currencies are the Canadian dollar for H. Marx and the euro for C. Marx. However, C. Marx keeps its books in a currency that is not the functional currency or the reporting currency.

G. Marx also recently disposed of a long-term investment in Z. Marx of Mexico, a consolidated entity whose functional currency was the peso.

Enter the appropriate amounts for the following journal entries recorded by Marx Corporation for its transaction with Saki Corporation.

To prepare each required journal entry:

• Enter the corresponding debit or credit amount in the associated column.
• Round all amounts to the nearest whole number.
• Not all rows in the table might be needed to complete each journal entry.
• If no journal entry is needed, check the “No entry required” box at the top of the table as your respons

Sunland Corp. has 149,080 shares of common stock outstanding. In 2020, the company reports income from continuing operations before income tax of $1,217,100. Additional transactions not considered in the $1,217,100 are as follows.

Analyze the above information and prepare an income statement for the year 2020, starting with income from continuing operations before income tax. Compute earnings per share as it should be shown on the face of the income statement. (Assume a total effective tax rate of 19% on all items, unless otherwise indicated.) (Round earnings per share to 2 decimal places, e.g. 1.47.)

Question B4
The following data are extracted from the financial statements of Lala Company:

Additional Information:

1. (1) Made a loan of $30,000 to the ABC Company.

2. (2) Repaid a 3-year loan of $100,000 to Hang Seng Bank.

3. (3) Sold the old machine at cash of $122,500 (the cost of the machine is $175,500 and the accumulated depreciation at disposal was $55,000).

4. (4) Purchased a new machine for cash at $300,000.

5. (5) Paid cash dividend of $0.15 per share for the 220,000 ordinary shares issued and outstanding.

Required:

1. (a) Prepare the statement of cash flows for the year ended 30 June 2020 using the indirect method for LaLa Company.

2. (b) In preparing the statement of cash flows under indirect method, state how to deal with a gain on sale of property, plant and equipment? Give one reason to support your answer.

3. (c) Which section of business activities in the statement of cash flow is least likely to show positive net cash flows in a successful and growing business? (1 mark)

Income Statement

For the Year Ended December 31, 2018

Sales                                                               $8,500,000

Manufacturing Expenses

Variable                                $3,250,000

Fixed overhead                       640,000       3,890,000

Gross Margin                                                  $4,610,000

Selling and administrative expenses

Commissions                           $580,000

Fixed marketing expenses       300,000

Fixed admin expenses               450,000      1,330,000

Net Operating Income                                     $3,280,000

Fixed Interest expenses                                       230,000    

Income before Taxes                                      $3,050,000     

Income Taxes (21%)                                            640,500

Net Income                                                     $2,409,500

Your company is considering out-sourcing the sales and marketing to an agency specializing in these types of sales. The outsourcing would remove the commissions, reduce the marketing by $270,000, and reduce the fixed administrative expenses by $35,000. The out-sourcing firm, Jangler Marketing, will charge a fee of 14% of sales. Jangler requires a 3-year contract. Jangler believes that it can increase sales by 10% for 2019 and 13% each year after (2020 and 2021). The company believes that with its current sales and marketing staff, sales will increase by 8% for 2019 and 9% in each year after (2020 and 2021).

1.Prepare contribution format projected income statements for 2019, 2020 & 202a assuming the company hires Jangler Marketing.

2.Prepare contribution format projected income statements assuming the outsourcing is rejected.

(Please show how you got each answer)

Sunland Inc. has 1.10 million common shares outstanding as at January 1, 2020. On June 30, 2020, 4% convertible bonds were converted into 95,000 additional shares. Up to that point, the bonds had paid interest of $225,000 after tax. Net income for the year was $1,298,572. During the year, the company issued the following:

On February 1, Sunland also purchased in the open market 13,260 call options on its own shares, allowing it to purchase its own shares for $31. Assume the average market price for the shares during the year was $39.

Calculate the required EPS numbers under IFRS. For simplicity, ignore the impact that would result from the convertible debt being a hybrid security. (Round answers to 2 decimal places, e.g. 15.25.)

eTextbook and Media

Show the required presentations on the face of the income statement. (Round answers to 2 decimal places, e.g. 15.25.)

Income Statement For the Year Ended December 31, 2018 Sales $8,500,000 Manufacturing Expenses Variable $3,250,000 Fixed overhead 640,000 3,890,000 Gross Margin $4,610,000 Selling and administrative expenses Commissions $580,000 Fixed marketing expenses 300,000 Fixed admin expenses 450,000 1,330,000 Net Operating Income $3,280,000 Fixed Interest expenses 230,000 Income before Taxes $3,050,000 Income Taxes (21%) 640,500 Net Income $2,409,500 Your company is considering out-sourcing the sales and marketing to an agency specializing in these types of sales. The outsourcing would remove the commissions, reduce the marketing by $270,000, and reduce the fixed administrative expenses by $35,000. The out-sourcing firm, Jangler Marketing, will charge a fee of 14% of sales. Jangler requires a 3-year contract. Jangler believes that it can increase sales by 10% for 2019 and 13% each year after (2020 and 2021). The company believes that with its current sales and marketing staff, sales will increase by 8% for 2019 and 9% in each year after (2020 and 2021). 1.Prepare contribution format projected income statements for 2019, 2020 & 202a assuming the company hires Jangler Marketing. 2.Prepare contribution format projected income statements assuming the outsourcing is rejected. (Please show how you got each answer)

Tower Company owned a service truck that was purchased at the beginning of 2018 for $47,000. It had an estimated life of three years and an estimated salvage value of $5,000. Tower company uses straight-line depreciation. Its financial condition as of January 1, 2020, is shown in the following financial statements model. Assets = Equity Revenue − Expense = Net Income Cash Flow Cash + Machine − Accumulated Depreciation = Common Stock + Retained Earnings 35,000 + 47,000 − 33,000 = 19,000 + 30,000 NA − NA = NA NA In 2020, Tower Company spent the following amounts on the truck: Jan. 4 Overhauled the engine for $7,500. The estimated life was extended one additional year, and the salvage value was revised to $4,000. July 6 Obtained oil change and transmission service, $400. Aug. 7 Replaced the fan belt and battery, $500. Dec.31 Purchased gasoline for the year, $9,000. 31 Recognized 2018 depreciation expense. Required a. Record the 2020 transactions in a statements model like the preceding one. (In the Cash Flow column, use the initials OA to designate operating activity, IA for investing activity, FA for financing activity, NC for net change and NA for not affected. Round your answers to the nearest dollar amount. Enter any decreases to account balances with a minus sign.)

All I need now is the last row for 12/31

Below provides a summary of US current account in the year 2006 (in billions of $)

a) Should the US be concerned about its current account balance? Why or why not? What are the possible reasons for this observation?

b) Will U.S. tariffs help reduce a U.S. balance-of-trade deficit?

Tweet Inc. is planning its initial public offerings (IPO). The firm’s current value of equity is estimated to be $750 million. The founder of Tweet Inc. and a few venture capital funds together hold all the 48 million existing shares, and they want to retain 75% of the firm after the IPO. The floatation costs, including underwriting fees charged by Silverman Sachs, the investment bank, will be 10% of the proceeds. How many shares will be sold and for how much per share?

Please show work using Financial Calculator not excel.