The Managing Director of Wraymand plc has asked you to prepare the statement of comprehensive income for the group. The company has one subsidiary undertaking, Blonk Ltd. The statements of comprehensive income of the two companies for the year ended 31 March 2020 are set out below. Statements of comprehensive income for the year to 31 March 2020 Wraymand Blonk £000 £000 Sales revenue 38,462 12,544 Cost of sales (22,693) (5,268) –––––– –––––– Gross profit 15,769 7,276 Dividend from Blonk Ltd 580 –––––– 16,349 Distribution costs (6,403) (2,851) Administrative expenses (3,987) (2,466) –––––– –––––– Profit from operations 5,959 1,959 Finance costs (562) (180) –––––– –––––– Profit before tax 5,397 1,779 Taxation (1,511) (623) –––––– –––––– Profit for the year 3,886 1,156 –––––– –––––– Further information: (i) Wraymand plc acquired 75% of the ordinary share capital of Blonk Ltd on 1 April 2019. (ii) During the year, Blonk Ltd sold goods which had cost £1,100,000 to Wraymand plc for £1,600,000. All of the goods had been sold by Wraymand plc by the end of the year.

On January 1, 2018, Winn Heat Transfer leased office space under a three year operating lease agreement. The arrangement specified three annual rent payments of $102,000 each, beginning December 31, 2018, and at each December 31 through 2020. The lessor, HVAC Leasing calculates lease payments based on an annual interest rate of 8%. Winn also paid a $276,000 advance payment at the beginning of the lease in addition to the first $102,000 rent payment. With permission of the owner, Winn made structural modifications to the building before occupying the space at a cost of $378,000. The useful life of the building and the structural modifications were estimated to be 30 years with no residual value. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: Prepare the appropriate entries for Winn Heat Transfer from the beginning of the lease through the end of 2020. Winn’s fiscal year is the calendar year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Round your answers to nearest whole dollars.)

Bumblebee Company estimates that 318,000 direct labor hours will be worked during the coming year, 2020, in the Packaging Department. On this basis, the following budgeted manufacturing overhead cost data are computed for the year.

It is estimated that direct labor hours worked each month will range from 22,500 to 33,900 hours.

During October, 22,500 direct labor hours were worked and the following overhead costs were incurred.

Fixed overhead costs: Supervision $7,830, Depreciation $5,760, Insurance $2,510, Rent $1,730, and Property taxes $1,120.

Variable overhead costs: Indirect labor $11,890, Indirect materials, $5,920, Repairs $2,170, Utilities $3,775, and Lubricants $1,415.

(a) Prepare a monthly manufacturing overhead flexible budget for each increment of 3,800 direct labor hours over the relevant range for the year ending December 31, 2020. (List variable costs before fixed costs.)

Streamland SA started producing a new mini series featuring super heroes with useless powers. The management board considered various financing options. The CFO, Sam Yang, suggested to issue convertible bonds, an instrument that had not been used by the company before. The other board members were hesitant at first but eventually agreed that convertible bonds were the best option to finance this production. Therefore, Streamland SA issued €18,000,000 of 8%, 5-year convertible bonds on January 1, 2020, at 95 with interest payable on December 31. Each of the 18,000 €1,000 bonds is convertible into 10 ordinary shares (par value of €1). Using the prevailing market interest rates at the issuance date for similar non-convertible bonds, the bonds would have been sold at 90. Any bond premium or discount is amortized annually using the effective-interest method.

At maturity, the bond has been repurchased. Prepare the schedule of bond amortization for the convertible bonds for all years (2020 to 2024) and the journal entry(ies) for the last year of the bond schedule. (15p)

but how do i know the market interest rate?

Exercise 9-11 (Video)

Atlanta Company is preparing its manufacturing overhead budget for 2020. Relevant data consist of the following.

Prepare the manufacturing overhead budget for the year, showing quarterly data. (Round overhead rate to 2 decimal places, e.g. 1.25. List variable expenses before fixed expense.)

On February 5, 2019, Javier Sanchez purchased and placed in service a new 7-year class asset costing $477,200 for use in his landscaping business, which he operates as a single member LLC (Sanchez Landscaping LLC).

Rather than using bonus depreciation, Javier would like to use § 179 to expense $200,000 of this asset and then use regular MACRS to cost recover the remaining cost. During 2018, his business generated a net income of $572,640 before any § 179 immediate expense election.

If required round your intermediate computations and final answers to the nearest dollar. Click here to access the depreciation table to use for this problem.

a. Determine the cost recovery deductions (including first year additional depreciation) that Javier Sanchez can claim with respect to this asset in 2019 and 2020.
Total cost recovery deduction in 2019: $
Total cost recovery deduction in 2020: $

b. Complete Javier's Form 4562 (page 1) for 2019.

Note: For 2019, the maximum § 179 is $1,020,000 and the threshold amount is $2,550,000. If an amount is zero, enter "0". Enter amounts as positive numbers.

Brees Industries is considering going public but is unsure of a fair offering price for the company. Before hiring an investment banker to assist in making the public offering, managers at Brees have decided to make their own estimate of the firm’s common stock value. The firm’s CFO has gathered data for performing the valuating using the free cash flow valuation model. The firm’s weighted average cost of capital is 10%, and it has $800,000 of debt at market value and $600,000 of preferred stock at its assumed market value. The estimated free cash flows over the next 4 year, 2020 through 2023, are given below. Beyond 2017 to infinity, the firm expects its free cash flow to grow by 3% annually.
2020 RM 100000
2021 RM 200000
2022 RM 310000
2023 RM 450000

A) estimate the value of the entire company using the free cash flow valuation model?

b) using finding in part a, find the common stock value?

c) if the firm plan to issue 100,000 shares of common stock, what is the estimated value per share?

Nabor Industries is considering going public but is unsure of a fair offering price for the company. Before hiring an investment banker to assist in making the public​ offering, managers at Nabor have decided to make their own estimate of the​ firm's common stock value. The​ firm's CFO has gathered data for performing the valuation using the free cash flow valuation model.

The​ firm's weighted average cost of capital is 12%​, and it has $1,970,000 of debt at market value and $390,000

of preferred stock in terms of market value. The estimated free cash flows over the next 5​ years, 2020 through 2024​,

are given in the​ table,

Beyond 2024 to​ infinity, the firm expects its free cash flow to grow by 3% annually.

2020   $220,000
2021   $280,000
2022   $320,000
2023   $390,000
2024   $430,000

a.  Estimate the value of Nabor​ Industries' entire company by using the free cash flow valuation model.

b.  Use your finding in part a, along with the data provided​ above, to find Nabor​ Industries' common stock value.

c.  If the firm plans to issue 200,000 shares of common​ stock, what is its estimated value per​ share?

Use the income statement and balance sheets below to prepare the following ratios for Miller Corporation for the year 2020.

A researcher is interested in whether there are changes in child aggression after they watch another child get something that they want. She devises an experiment where children come into her lab and are given worn and broken toys to play with. After a short time, a new child is brought into the room and is given new, shiny toys to play with. The researcher wants to know whether there are changes in aggressive behavior among the children with the broken, worn toys after they see the new children playing with new, shiny toys. She measures the number of aggressive behaviors displayed by the children who were given the worn and broken toys both before and after they watch the new children playing with new, shiny toys. Her findings are summarized in the table below.

a. Identify the IV, IV levels, and DV.

IV:
Levels:

DV:

b. Is this experiment a paired-samples or independent-samples design?

c. State null and alternative hypotheses in words.

H₀:
H₁:

d. Conduct a statistical test of the hypothesis

t =

e. Decide whether to reject or retain the null hypothesis.

f. Interpret your results.