<Bit Stuffing Question>
a) The following message is to be sent by a host running a protocol with starting and ending flags
and bit stuffing. The starting and ending flags are both 01111110 and they have not yet been
added.
0111111011111011110011111100111111000000111110101111110
What is the message actually sent (after bit stuffing and after adding the starting and ending flags)?
b) Suppose the bit pattern shown above is received by a host running the bit stuffing protocol.
That is, this is the actual message that has been received after bit stuffing and after adding the
starting and ending flags. How many frames are being received? What is the actual content of
each frame before the flags are added and the bits are stuffed?

Some studies show that people who think they are intoxicated will show signs of intoxication, even if they did not consume alcohol. To test whether this is true, researchers had a group of five adults consume nonalcoholic drinks, which they were told contained alcohol. The participants completed a standard driving test before drinking and then after one nonalcoholic drink and after five nonalcoholic drinks. A standard driving test was conducted in a school parking lot where the participants had to maneuver through traffic cones. The number of cones knocked over during each test was recorded. The following table lists the data for this hypothetical study.

(a) Complete the F-table. (Round your answers to two decimal places.)

(b) Compute a Bonferroni procedure and interpret the results. (Assume experimentwise alpha equal to 0.05. Select all that apply.)

Students knocked over significantly more cones after 1 nonalcoholic drink compared with the driving test prior to drinking.

Students knocked over significantly more cones after 5 nonalcoholic drinks compared with the driving test prior to drinking.

Students knocked over significantly more cones after 5 nonalcoholic drinks compared with the driving test after 1 nonalcoholic drink.

There were no significant differences between any of the groups.

Question 1

The following statement of financial position relates to XYZ Ltd for the years ending 30 June 2019 and 30 June 2020.

Additional Information:

1. Gross profit for the year ended 30 June 2020 was $110,500, and consisted of:

Sales Revenue                 $393,500

Cost of Sales                     283,000

2. All purchases and sales of inventory were on credit.
3. Loss for the year ended 30 June 2020 was $18,750, after deducting expenses of $129,250 from the gross profit figure.
4. Expenses of $129,250 comprise of depreciation on Buildings and on Plant & Equipment, a loss on sale of land, $5,000 in interest expense, and other expenses (other expenses relate to Accrued Employee Expenses in the statement of financial position).
5. During the year ended 30 June 2020, cash dividends were paid.
6. The increase in Buildings was due to building extensions which were paid for during the year, and a block of land costing $37,500 was sold for $31,250 cash.
7. No Plant & Equipment was purchased or sold during the year.
8. The revaluation increment on land of $20,000 does not have any effect on profit or loss.

Required:

Prepare the statement of cash flows of XYZ Ltd for the year ended 30 June 2020 based on the direct method of presentation. Ignore tax effects. Notes are not required.

(Total = 16 marks)

Your answers:

Provide your answers from here

Workings:

Provide your workings from here. Please use the blank T-account format (if necessary).

Account name

Copy & pate the T-account above and use them more (if necessary)

For the following independent situations, assume you are the audit partner and have raised these issues with management as appropriate.

What audit opinion would you recommend (unmodified, qualified, adverse, or disclaimer), and explain what factors have caused this recommendation.

Question 5 continued next page

Question 5 (continued)

Bass Ltd, a leading producer of construction, mining and electrical equipment, suffered a significant drop in the demand of the company’s products due to COVID-19 in 2020 that significantly threatens the financial stability of the company. Bass in order to survive in this critical situation decides to restructure its strategy for forthcoming years. Changes in company strategies and accounting policies have a significant impact on reported profit. The basic earnings per share and diluted earnings per share presented in the company’s current year financial statements in accordance with “AASB 133 Earnings per Share” were comparatively higher than that of the last year. In contrast, company share prices have dropped by 20% at the reporting date, according to Yahoo finance.

While most shareholders seem unhappy to own company shares for the meagre dividend attached to them the question of whether Bass Ltd are fully valued at their current share prices continues to linger.

The directors of Bass Ltd are not sure how to calculate and include basic and diluted earnings per share in the company’s financial statements in accordance with AASB 133, and called for a report from the Finance Manager of the company.

On 30 June 2020, Bass Ltd had the following equity:

During the year ended 30 June 2020, the company earned after tax profit of $1 240 000 from ordinary activities.

The additional information is available.

1. On 20 November 2019, the company made a one-for-five bonus issue, and on 30 March 2020, the company made a rights issue of 400 000 ordinary shares.
2. On 20 July 2017, the company issued $ 750 000 of 8% convertible notes. Each $ 100 note was convertible into 50 ordinary shares. There was no conversion during the year ended 30 June 2020.
3. On 28 February 2019, the company issued options to purchase 10 000 shares at $ 3.50 each. No options were exercised during the year ended 30 June 2020.
4. The company income tax rate is $ 0.30 in the dollar and the company’s ordinary shares are trading at $ 5 per share on 30 June 2020.
5. The company paid preference dividends of $ 40 000.

Required

1. Briefly describe the requirements of AASB 133 ‘earnings per share’ for the calculation of earnings per share.                                                                                                                     

Earnings per share

Bass Ltd, a leading producer of construction, mining and electrical equipment, suffered a significant drop in the demand of the company’s products due to COVID-19 in 2020 that significantly threatens the financial stability of the company. Bass in order to survive in this critical situation decides to restructure its strategy for forthcoming years. Changes in company strategies and accounting policies have a significant impact on reported profit. The basic earnings per share and diluted earnings per share presented in the company’s current year financial statements in accordance with “AASB 133 Earnings per Share” were comparatively higher than that of the last year. In contrast, company share prices have dropped by 20% at the reporting date, according to Yahoo finance.

While most shareholders seem unhappy to own company shares for the meagre dividend attached to them the question of whether Bass Ltd are fully valued at their current share prices continues to linger.

The directors of Bass Ltd are not sure how to calculate and include basic and diluted earnings per share in the company’s financial statements in accordance with AASB 133, and called for a report from the Finance Manager of the company.

On 30 June 2020, Bass Ltd had the following equity:

During the year ended 30 June 2020, the company earned after tax profit of $1 240 000 from ordinary activities.

The additional information is available.

1. On 20 November 2019, the company made a one-for-five bonus issue, and on 30 March 2020, the company made a rights issue of 400 000 ordinary shares.
2. On 20 July 2017, the company issued $ 750 000 of 8% convertible notes. Each $ 100 note was convertible into 50 ordinary shares. There was no conversion during the year ended 30 June 2020.
3. On 28 February 2019, the company issued options to purchase 10 000 shares at $ 3.50 each. No options were exercised during the year ended 30 June 2020.
4. The company income tax rate is $ 0.30 in the dollar and the company’s ordinary shares are trading at $ 5 per share on 30 June 2020.
5. The company paid preference dividends of $ 40 000.

Required

1. Briefly describe the requirements of AASB 133 ‘earnings per share’ for the calculation of earnings per share.                                                                                                                         
2. Distinguish between basic and diluted earnings per share.                                              

Following the requirements of AASB 133:

3. Calculate basic earnings per share.                                                                                           
4. Calculate diluted earnings per share.                                                                                     

Perfumery de France, which manufactures and sells a range of women’s fragrances worldwide, wishes to develop a new style of packaging for its Michael Cox brand. Innovation packaging is a critical differentiation factor in the perfume market, and this may explain Michael Cox’s fall in market share, as it has been using the same pink bulb-shaped bottle over eight years. Designers have now come up with three new design concepts, but before proceeding with any of this design, the Company requires a program of marketing research to a) determine market awareness and attitude towards the Michael cox brand and existing packaging and b) determine customer and potential customer attitude towards and preferences with regards to the new design concept. Research should initially focus on the European market. The company hopes that answer to such question will help in the successful re-launch of the brand. The company is willing to spend up to $100,000 on the research project.

Task

You are a research executive in a market research agency and have been asked to do the following:

a. Identify appropriate further information that you would require from the company prior to writing a proposal

b. Having made reasonable assumptions regarding the answer to the information required in Question a, produce a proposal to address the research needs of the company

Stock Dividends

On August 1, 2020, Perkins declares a 15% Common Stock dividend. The market (fair) value of the stock on August 1, 2020, is $30 per share. August 15, 2020, is the date of record. The stock dividend will be distributed on August 31, 2020. Instructions: (a) Prepare all required journal entries for August 1, 15, and 31, 2020. If no journal entry is required, state NA. (b) Assume that Perkins declares a 30% Common Stock dividend instead of a 15% stock dividend. Prepare all required journal entries for August 1, 15, and 31, 2020. If no journal entry is required, state NA

On January 2, 2020, Crane Company began construction of a new citrus processing plant. The automated plant was finished and ready for use on September 30, 2021. Expenditures for the construction were as follows:

Crane Company borrowed $3240000 on a construction loan at 12% interest on January 2, 2020. This loan was outstanding during the construction period. The company also had $12480000 in 9% bonds outstanding in 2020 and 2021.

The interest capitalized for 2021 was:

$355107

$84676

$291600

$376276

Based on the period of 1969 through 2010, which category of securities has outperformed all of the other categories?

A. Real Estate

B. Long-term government bonds

C. Stocks

D. Corporate bonds

E. T-Bills