The Amada fund contains the three stocks listed below. The fund is comprised of 40% Canyon, 40% Zara, and 20% Junio.

a) Calculate the yearly returns of the portfolio, as well as its arithmetic and geometric average.

b) Assume you invested at the beginning of 2016, and sold at the end 2019 (so there was a four year holding period). Ignore all taxes. If you put $20,000 in this portfolio at the beginning of 2016, what was the value at the end of 2019? Show the steps of your work.

Metlock Corporation enters into a 6-year lease of equipment on December 31, 2016, which requires 6 annual payments of $37,100 each, beginning December 31, 2016. In addition, Metlock guarantees the lessor a residual value of $20,900 at the end of the lease. However, Metlock believes it is probable that the expected residual value at the end of the lease term will be $10,900. The equipment has a useful life of 6 years. Assume that for Lost Ark Company, the lessor, collectibility of lease payments is probable and the carrying amount of the equipment is $130,000. Prepare Lost Ark’s 2016 and 2017 journal entries, assuming the implicit rate of the lease is 10% and this is known to Metlock.

On January 1, 2016, a company pays $5,222,591 for a 5-year corporate bond with a face value of $5 million. The bond pays interest at 5 percent on December 31 of each

year, and the principal is due on December 31, 2020. The investment yields a 4 percent compound annual

return to maturity. The company classies the bond as a held-to-maturity investment.

Required

Prepare the journal entries to record the investment on January 1, 2016, receipt of the interest payments

on December 31 of each year 2016 through 2020, and receipt of the bond principal on December 31,

2020, using the effective interest method.

Broussard Skateboard's sales are expected to increase by 25% from $8.6 million in 2016 to $10.75 million in 2017. Its assets totaled $6 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 7%, and the forecasted payout ratio is 65%. What would be the additional funds needed? Do not round intermediate calculations. Round your answer to the nearest dollar.

Obtain Apple's fiscal 2016 10-K (filed October 26, 2016) either through the "Investor Relations" portion of its website ( web search for "Apple Investor Relations") or go to www.sec.gov and click "Company Filings Search" under "Forms."

Using Apple's 10-K, answer the following questions:

6. How many days' sales does Apple have in receivables and inventory for 2015 and 2016? (When added together, this is its operating cycle.) (Note: Round all answers to two decimal places.)

How do I find days sales in receivables, inventory and operating cycle?

The net income of Steinbach & Sons, a landscaping company, decreased sharply during 2016. Mort Steinbach, owner and manager of the company, anticipates the need for a bank loan in 2017. Late in 2016 Steinback instructs the company's accountant to record $20,000 service revenue for landscape services for the Steinbach family, even though the services will not performed until January 2017. Steinbach also tells the accountant not to make the following December 31, 2016 adjusting entries:

Salaries owed to employees $9,000
Prepaid Insurance that has expired $4,000

1. Why is Steinback taking this action? Is his action ethical? Give your reason.

Q3. On January 1, 2016, ATM Corporation acquired all of the common stock of ZED Company for $300,000. On that date, ZED's identifiable net assets had a fair value of $250,000. The assets acquired in the purchase of ZED are considered to be a separate reporting unit of ATM Corporation. The carrying value of ZED's investment at December 31, 2016, is $310,000. The fair value of the net assets (excluding goodwill) at that date is $220,000 and the fair value of the reporting unit is determined to be 260,000.

Required:

1) Explain how goodwill is tested for impairment for a reporting unit.

2) Determine the amount, if any, of impairment loss to be recognized at December 31, 2016.

Balance Sheet Presentation

Thiel Company reports the following deferred tax items at the end of 2016:

Show how the preceding deferred tax items are reported on Thiel's December 31, 2016, balance sheet.

AFN equation

Broussard Skateboard's sales are expected to increase by 20% from $7.6 million in 2016 to $9.12 million in 2017. Its assets totaled $5 million at the end of 2016. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2016, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 7%, and the forecasted payout ratio is 65%. What would be the additional funds needed? Do not round intermediate calculations. Round your answer to the nearest dollar.
$

Harrods is a high-end department store chain in London. House of Fraser is high-end department store in Edinburgh, Scotland. Consider the following data for these two companies (Millions of £).

Compute the operating cash flow to current liabilities ratio for both firms

Compute the free cash flow for both firms.

Compute Operating cash flow to Capital Expenditures

Comment on the results of your computations (at least 3 comments).