KCT Farms (KCT) is a private Canadian company that produces markets and distributes a variety of dairy products including cheese, milk, and extended life milk and cream products. The Farm is located in Southwestern Ontario, however, they currently ship products to retailers in Ontario and Quebec. KCT farms incorporated 30 years ago by the Kris Family. The company has a June 30 year-end.
You have been hired to work in KCT’s finance department. In a recent meeting with the CEO, she indicated that the company is looking to obtain additional financing to expand their current operations to other provinces. If that expansion is successful, KCT is hopeful that they will be able to gain attention of international investors and will be able to expand into the US, Europe and beyond. However, for the time being, the company has approached the bank for additional financing. The bank has requested that KCT provide GAAP compliant financial statement. The Kris family does not really know much about GAAP, and what their options are, and has asked that you provide some context.
It is now July 15, 2019 and you are preparing the year-end financial statements and note disclosures. You meet with the CEO and she has asked that you provide assistance prioritizing the issues facing KCT. In your discussion, following contentious issues were identified:
- During the year, KCT sold a parcel of land with a gain of $1.5million. The $4.8 million sales price has been included in sales and the $1.3 million carrying amount has been included in cost of goods sold.
- KCT accounts for its capital assets on an historical cost basis, but has not recorded depreciation on a few specific pieces of equipment. The assets in question include: Land costing $1.2 million a new state of the art manufacturing facility costing $10.5million, and 10 new processing machines costing $200,000 each. The Company’s owners have always felt that depreciation does not represent the true economic value of the equipment, and skewed the overall income in a way that is not meaningful to investors.
- During 2018, an ex-employee sued KCT in the amount of $450,000 for wrongful dismissal. Correspondence between the KCT legal team and the plaintiffs counsel indicates that a settlement of $125,000 would be acceptable to the employee. KCT has not yet agreed, but their legal counsel is suggesting that they go forward with the out of court settlement. If an agreement does not come about, court proceedings would not commence late until 2019. KCT plans to record the amount in the financial statements when the final amount is finalized.
Prepare your report to the CEO that addresses the contentious accounting issues. Provide support for your recommendations. Using the CPA way to solve this Case
In: Accounting
PLEASE read paragraphs and respond rather you agree or disagree! the answers are from the following questions 1. Do you believe that Nike has a responsibility to pay workers on foreign shores a living wage, in other words, should they JUST DO IT? 2. Are you willing to pay more for Nike products to make that happen? 3. Would you be willing to boycott Nike products if they continue to refuse to do so?
Your repond should be 200 words! thanks
1. I believe that Nike should pay workers on foreign shores a living wage. The company makes billions of dollars a year and a small decrease in profit will not hurt them. Every human being regardless where they are from or their economic status, should have their dignity intact. Nike pays millions of dollars to athletes to wear and market their brand. Why not pay workers in lower living wage workers if you have the money to spend on famous athletes? In the video, Michael Moore tries to convince the CEO of Nike, Phil Knight, to go to Indonesia and visit one of Nike’s factories. Phil refuses the offer because what he will see will not be pleasant.
2. I would not pay more money to Nike to make things happen. Nike pays famous athletes to wear their brand, then why should consumers pay more money to benefit those in lower wage countries? Nike makes billions of dollars in profits. Why not use part of those profits to benefits those employees? Instead of endorsing famous athletes, it’s best to use that money and increase the wages to those employees working in those horrible sweatshops.
Nike placed a code of conduct for their factories on how employees should be treated. When Michael Moore suggested for Phil Knight to visit one of factories, he declined. What makes you think that this code of conduct will be executed properly? Not even the CEO wanted to see his own factories. The CEO, executives, and upper management should make sure that all the factories and other branches follow through with their vision for the company. By starting from the top to the bottom, they can make that changes that are needed for a better workplace.
3. Nike isn't a brand that I currently purchase or would purchase in the future after reading and watching these videos. If people were to boycott this company, they will see more damages when it comes to the profits. It is evident that Nike is more interested in making more money for the company and its stockholders. Nike prefers to spend million of dollars in endorsements than helping their own employees.
In: Economics
Science Model
One share of Global Core Development Systems, Inc (an imaginary company with the abbreviation: Go-CDS) stock was priced at $14.59 on January 1, 2015. Your tasking in this problem is to determine how long does it take for a stockholder to double their money who has invested in Go-CDS? In other words, how long until the price per share has doubled.
Here are some facts about Go-CDS:
Write a MATLAB program to solve the following questions: Use matlab to make plot
1. In what month does the stock exceed 2 times the price of $14.59?
2. Prepare a plot of the stock's per-month price movement over the course starting from the first month of year 2017 until the price has exceeded 2 times the price of $14.59. (You plot should start from month 25, and should cover the month that is the answer to Question #1.) You will need to adjust the plot routine to ONLY show these months.
To limit the plot to these months, add the following command after your xlabel and ylabel commands:
| axis ([25, 56, 19, 31]) |
| xticks (0:4:length(P)) |
| yticks (0:2:31) |
In: Computer Science
Marcus Co., a U.S. company, has decided to undertake a 2-year project in Canada. The project is expected to generate 18,000,000 Canadian dollars (C$) in the first year and C$40,000,000 in the second. Marcus will need to invest $35,000,000 at the start of the project. Marcus has decided to use a cost of capital of 14 percent, which it uses for similar projects. The spot rate of the Canadian dollar is expected to be $.79 for the first year and $.82 for the second year. (1) What is the net present value of the project in U.S. dollars? (2) Would a stable exchange rate of $.79 for both years be to the advantage or disadvantage of Marcus? Explain.
In: Finance
On November 1, 2014, the Yankee Corporation, a U.S. corporation, purchased and received an extruding machine from Wales Corporation, a UK company. The purchase price was $10,000 (U.S. dollars) and Yankee agreed to pay in pounds on February 1, 2015. Both corporations are on a calendar year accounting period. Assume that the spot rates for the British pound on November 1, 2014, December 31, 2014, and February 1, 2015, are $1.60, $1.62, and $1.66, respectively.
Required:
Record the November 1, December 31, and February 1 transactions in the General Journals of Yankee Corporation and Wales Corporation. If no entry is required on a particular date, indicate "No entry" in the General Journal.
In: Accounting
International Taxation Question
Tenco, a domestic corporation, manufactures tennis rackets for sale in the United States and abroad. Tenco owns 100% of the stock of Teny, a foreign sales subsidiary that was organized in Year 1. During Year 1, Teny had $15 million of foreign base company sales income, paid $1 million in foreign income taxes, and distributed no dividends. During Year 2, Teny had no earnings and profits, paid no foreign income taxes, and distributed a $14 million dividend.
Assuming the U.S. corporate tax rate is 21%, what are the U.S. tax consequences of Teny’s Year 1 and Year 2 activities?
In: Finance
25) A U.S. firm currently produces 200 units of output according to the production function q = L0.5K0.5 and faces input prices equal to wU.S. = rU.S = $11. Should the U.S. firm move their company abroad where they will face input prices equal to wabroad = $6.50 and rabroad = $15.00?
A) Yes, because the total costs will fall from $3,859 to
$2,810.
B) No, because the total costs will increase from $2,810 to $3,859.
C) No, because the firm has decreasing returns to scale.
D) Not enough information is given to answer this problem.
the answer is A, but I cant seem to get the same numbers. Please
show your work
In: Economics
Bugs, Inc., a wholly owned subsidiary of the U.S.-based company, Pillows Ltd., was notified of a loss contingency with an estimated cost ranging between $50,000 and $150,000. Bugs, Inc. hired an expert appraiser who assessed that all possible dollar amounts of liability in this range are equally likely. Management of Bugs, Inc. has estimated that there is a 60 percent chance that this contingency will result in an actual loss. In the conversion from U.S. GAAP financial statements to IFRS financial statements, what is the amount of adjustment needed to adjust for the difference in accounting for a provision for loss contingency?
Multiple Choice
$0
$50,000
$100,000
$150,000
$200,000
In: Accounting
You invested in Facebook, and you're a diversified investors. Which of the following risks concern you the most?
a.
The risk that a global economic slowdown will affect how much companies spend on advertising
b.
The risk that users will find a different social media platform to spend their time on.
c.
The risk that Mark Zuckerberg will stay on as CEO
d.
The risk that Mark Zuckerberg will leave as CEO
e.
The risk that new privacy laws will restrict data gathering and access
In: Finance
The Cheebles cookie factory changed their recipe. The inspectors took a sample of the new cookies and found that the sample was 42 grams with a standard deviation of 4 grams. the Cheebles CEO specially asked the inspectors to use these statistics to find the lower and upper boundary weighs of 50% of their cookies. What are the Z values of the limits of the limits of the area covering the middle half of the area under the normal curve that the inspectors would use to find this information for the CEO of Cheebles?
In: Math