Questions
Problem 13-4 Sheffield Corp., a leader in the commercial cleaning industry, acquired and installed, at a...

Problem 13-4

Sheffield Corp., a leader in the commercial cleaning industry, acquired and installed, at a total cost of $109,700 plus 15% HST, three underground tanks to store hazardous liquid solutions needed in the cleaning process. The tanks were ready for use on February 28, 2020.

The provincial ministry of the environment regulates the use of such tanks and requires them to be disposed of after 10 years of use. Sheffield estimates that the cost of digging up and removing the tanks in 2030 will be $29,510. An appropriate interest or discount rate is 5%.

Sheffield also manufactures commercial cleaning machines that it sells to dry cleaning establishments throughout Nova Scotia. During 2020, Sheffield sold 20 machines at a price of $11,920 each plus 15% HST. The machines were sold with a two-year warranty for parts and labour. Similar warranty agreements are available separately and are estimated to have a stand-alone value of $969. Sales in 2020 occurred evenly throughout the year. Any revenue related to the warranty agreements is assumed to be earned evenly over the two-year contract term as follows: 2020, 25%, 2021, 50%, and 2022, 25%. Sheffield estimates the total cost of servicing the warranties will be $11,181 over the two-year contract term. Sheffield incurred actual warranty expenditures of $2,898 in 2020.

Answer the following, assuming Sheffield follows IFRS and has a December 31 fiscal year end.

Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.

Assuming straight-line depreciation and no residual value for the tanks at the end of their 10-year useful life, what is the balance in the asset Storage Tanks account, net of accumulated depreciation, at December 31, 2020? (Round answer to 0 decimal places, e.g. 5,275. For calculation purposes, use 5 decimal places as displayed in the factor table provided.)
Storage Tanks account, net of accumulated depreciation $
What is the balance of the asset retirement obligation liability at December 31, 2022, assuming there has been no change to the estimate of the final cost of disposal? (Round answer to 0 decimal places, e.g. 5,275.)
Asset Retirement Obligation $
Determine the balance of the warranty-related liability that would be reported on the December 31, 2020 SFP. Ignore HST and assume that Sheffield uses the service-type approach to account for warranties.
Unearned Revenue $
Determine the warranty expense that would be reported on Sheffield’s 2020 income statement.
Warranty Expense $
Sheffield has been permitted to file its HST return on December 31 each year and either send a cheque or request a refund on this date. Assuming there are no other HST transactions during the year, will Sheffield be sending a cheque or requesting a refund on December 31, 2020?
Sheffield will

request a refundsend a cheque

.

What will be the amount of the cheque paid or refund claimed?
Amount $
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In: Accounting

Prof. Business wants a 22-year retirement annuity that begins 9 years from today with an equal...

Prof. Business wants a 22-year retirement annuity that begins 9 years from today with an equal annual payment equal to $115,000 today inflated at 2.5% annually over 9 years. Her first retirement annuity payment would occur 9 years from today. She realizes her purchasing power will decrease over time during retirement.

Prof. Business currently has $660,000 in her University retirement account. She expects these savings and any future deposits into her University and any other retirement account will earn 8% compounded annually. Also, she expects to earn 7% annual return after she retires.

Prof. Business now wants to consider retiring two years earlier in 7 years and will deposit her required University contributions each year as in question 4 and will deposit and additional $14,400 at the end of each year for the next 7 years (first deposit totals $35,400). Also, she will require a 24-year retirement annuity.

Answer from #4:

 
Value of retirement account after investment period 1951366.329
Amount of annual investment $50,612.24

Questions:

a) How much money will Prof. Business have in her retirement account immediately after her last deposit 7 years from today?

b) What would be the equal annual payment from her 24-year retirement annuity whose first payment occurs exactly 7 years from today?

Please show work and functions on an excel spreadsheet.

In: Finance

7) US per capita beef consumption is four times the world’s average. T/F 8) In an...

7) US per capita beef consumption is four times the world’s average.

T/F

8) In an “Oligopoly” market structure the demand curve faced by an individual producer is “horizontal.

T/F

9) In the US, chicken industry, contracting (between packing plants and farms) represents less than 90% of total plant purchasing of chickens.

T/F

10) Currently, the largest importer of US agricultural products is China. 11) The US agricultural Trade balance is negative.

T/F
12) Income is a demand shifter.

T/F
13) Five Rivers is a company belonging to JBS.

T/F

14) Most of white corn produced in the US is grown under contracts.

T/F
15) TDA checks the accuracy of supermarket scanners in Texas.

T/F
16) More of the 30% of US beef production is exported.

T/F
17) Cotton is the top agricultural commodity produced in Texas (by value) 18) US beef exporters will prefer a “stronger’ US Dollar

T/F

19) If demand cross price elasticity is positive, those products are substitutes.

T/F
20) Developed countries will represent most of the future global demand for grain products.

T/F

In: Economics

Did you know that many companies are now asking their entire accounting and finance staff to...

Did you know that many companies are now asking their entire accounting and finance staff to sign off on the accuracy of their work for quarterly financial reporting? This is a relatively new trend where even "lower level" employees are signing these internal company documents. This then goes up the hierarchy chain to the highest level, CEO and CFO. Why are companies going to the lowest levels in the organization to do this now? What are some pros/cons of this approach?

In: Finance

Your new venture is no longer new, hut growing and rather rapidly. You are the CEO...

Your new venture is no longer new, hut growing and rather rapidly. You are the CEO and currently own 55% of the outstanding shares. What is your preferred way to raise funding to support your rapid growth and why? What is the potential reward for your decision? What is the downside? Please provide an example of a company that has gone public in the recent past 2-4 years. Did it benefit or hurt them?

In: Economics

: What aspects of cash flows is part of the financial manager's responsibility? Elaborate on the...

: What aspects of cash flows is part of the financial manager's responsibility?

Elaborate on the financial management function. In particular, the inter-relationships between the CEO, and its reporting lines under CFO; who are the ultimate boss for CFO, and CFO responsibilities to the real boss?

If you are CFO of a big blue-chip company and would like to issue a bond (borrowing), what are the macro economic factors and others you will consider before the issuance of the bond?

In: Finance

CEO Name Stock Ticker (Example Apple's ticker on the NASDAQ is AAPL) Current stock price. 52...

CEO Name

Stock Ticker (Example Apple's ticker on the NASDAQ is AAPL)

Current stock price.

52 week range

Number of shares outstanding

Market Capitalization

Tell me why you are interested in this company and if you had an opportunity, would you buy their stock?

Why or Why not?

Upload text responses. Make sure you copy the questions as well so I know what you are responding to.

In: Statistics and Probability

Imagine you are the Chief of Human Resources for a global corporation with operations in three...

Imagine you are the Chief of Human Resources for a global corporation with operations in three different countries. The CEO of the company wants you to come up with a new compensation plan based on the labor markets of the three (3) countries where the employees live and work, rather than basing it on the parent country’s labor market.

What are some of the biggest advantages and disadvantages of setting up a compensation system like this?\

Please in your own word!

In: Operations Management

Managers at your firm are very concerned about the influence of terrorism on its long-term strategy....

Managers at your firm are very concerned about the influence of terrorism on its long-term strategy. To counter this issue, the CEO has indicated you must analyze the countries in which terrorism and political violence is minimal. As this will provide the basis for the development of future company facilities, a detailed analysis for these countries is required. Once completed, include recommendations which justify locating future operations to specific countries with little risk of terror activities.

In: Economics

You start a new job at a company that has been run the same for the...

You start a new job at a company that has been run the same for the past decade. You are asked to write a report to the CEO briefly analyzing the most important recent changes in the international country of your choice. You should provide two recent changes for each category.
a.            Economic
b.            Social
c.             Political
d.            Technological
e.            Ecological

Support your findings with statistics such as GDP, unemployment etc.

In: Operations Management