1/Lake Power Sports sells jet skis and other powered recreational equipment. Customers pay one-third of the sales price of a jet ski when they initially purchase the ski, and then pay another one-third each year for the next two years. Because Lake has little information about the ability to collect these receivables, it uses the cost recovery method to recognize revenue on these installment sales. In 2017, Lake began operations and sold jet skis with a total price of $780,000 that cost Lake $390,000. Lake collected $260,000 in 2017, $260,000 in 2018, and $260,000 in 2019 associated with those sales. In 2018, Lake sold jet skis with a total price of $1,380,000 that cost Lake $828,000. Lake collected $460,000 in 2018, $368,000 in 2019, and $368,000 in 2020 associated with those sales. In 2020, Lake also repossessed $184,000 of jet skis that were sold in 2018. Those jet skis had a fair value of $69,000 at the time they were repossessed.

In 2019, Lake would recognize realized gross profit of:

Multiple Choice

• $260,000.

• $0.

• $420,000.

• $628,000.

2/ Johnson sells $112,000 of product to Robbins, and also purchases $12,400 of advertising services from Robbins. The advertising services have a fair value of $9,200. Johnson should record revenue on its sale of product to Robbins of:

Multiple Choice

• $99,600

• $102,800

• $108,800

• $112,000

3/ Video Planet (“VP”) sells a big screen TV package consisting of a 60-inch plasma TV, a universal remote, and on-site installation by VP staff. The installation includes programming the remote to have the TV interface with other parts of the customer’s home entertainment system. VP concludes that the TV, remote, and installation service are separate performance obligations. VP sells the 60-inch TV separately for $1,280, sells the remote separately for $80, and offers the installation service separately for $240. The entire package sells for $1,500.

Required:
How much revenue would be allocated to the TV, the remote, and the installation service?

4/ Present and future value tables of $1 at 9% are presented below.

   
Ajax Company purchased a one-year certificate of deposit for its building fund in the amount of $190,000. How much should the certificate of deposit be worth at the end of one years if interest is compounded at an annual rate of 9%?

Multiple Choice

• $205,841.

• $173,053.

• $207,100.

• $174,312.

4.

Required information

Decision Making Tree Scenarios

• For the past several years, you’ve been purchasing a product from a supplier at a high-volume cost and reselling the product at a lower price than your customers could buy it.
• You’d like to improve the product, but the manufacturer isn’t interested in doing this
• Would it make sense (cents) to buy the equipment and make it yourself with better quality?

Create decision trees using the following Scenario Information. There are 2 Scenarios;

Scenario A

• Expected Money Value (EVM) or Expected Value
• Equipment = $500,000 + 100,000 for training
• Chances of a good market next year are 60% so chances of a poor market are 40%
• A good market will yield $1,000,000 in gross revenue; a poor market will yield $200,00 in gross revenue
• If you continue selling the product as you currently do, a good market will generate $300,000 in gross revenue and a poor market $50,000 in gross revenue. Estimated costs for working with your supplier are $30,000/yr.

Scenario B

• What if with a higher quality product, the probability for good market increases to 80% and the probability of a good/poor market for purchasing remain the same

Assume that you recently graduated and you just landed a job as a financial planner with the Cleveland Clinic. Your first assignment is to invest $100,000. Because the funds are to be invested at the end of one year, you have been instructed to plan for a one-year holding period. Further, your boss has restricted you to the following investment alternatives, shown with their probabilities and associated outcomes.

Barney Smith Investment Advisors recently issued estimates for the state of the economy and the rate of return on each state of the economy. Alta Industries, Inc. is an electronics firm; Repo Men Inc. collects past due debts; and American Foam manufactures mattresses and various other foam products. Barney Smith also maintains an "index fund" which owns a market-weighted fraction of all publicly traded stocks; you can invest in that fund and thus obtain average stock market results. Given the situation as described, answer the following questions.

a. Calculate the expected rate of return on each alternative.

b. Calculate the standard deviation of returns on each alternative.

c. Calculate the coefficient of variation on each alternative.

d. Calculate the beta on each alternative.

Despite regulatory reforms aimed at inhibiting aggressive financial reporting, earnings management persists and continues to concern practitioners, regulators, and standard setters. To provide insight into this practice and how to mitigate it, we conduct an experiment to examine the impact of two independent variables on CFOs' discretionary expense accruals. One independent variable, incentive conflict, is manipulated at two levels (present and absent)-i.e., the presence or absence of a personal financial incentive that conflicts with a corporate financial incentive. The other independent variable is CFOs' earnings management ethics ('EM-Ethics,' high vs. low), measured as their assessment of the ethicalness of key earnings management motivations. We find that incentive conflict and EM-Ethics interact to determine CFOs' discretionary accruals such that (a) in the presence of incentive conflict, CFOs with low (high) EM-Ethics tend to give into (resist) the personal incentive by booking higher (lower) expense accruals; and (b) in the absence of an incentive conflict, CFOs with low (high) EM-Ethics tend to give into (resist) the corporate incentive by booking lower (higher) expense accruals. We also find support for a mediated-moderation model in which CFOs' level of EM-Ethics influences their moral disengagement tendencies which, in turn, differentially affect their discretionary accruals, depending on the presence or absence of incentive conflict. Theoretical and practical implications of these findings are discussed

Mitigation: How would you, as CEO/CFO of a publicly traded manufacturing firm, mitigate the potential for serious corporate damage due to ethical and/or legal issues? Explain.

Process: What kind of process would you build into operations, culture, policy, and procedures to make sure your firm will not experience any ethical or legal issues?

Figure 1

BMD, Inc. Income Statements (in 000s)

                                                                          Current       Pro-Forma

                                                                                         Year          Statements

Is projected net income growing faster or more slowly than projected sales? Discuss any differences. You should carefully review the 2020 Income Statement data to see if you want to recommend or make any adjustments.

1. A thorough review of GE Broadcasting assets at the end of December 31, 20X5, resulted in the following information:

■ Cash on hand and cash at bank totaling $484,000

■ Fixed-term deposits with banks totaling $142,000 (matures July 1, 20X7)

■ Inventories totaling $324,000

■ Trade receivables totaling $245,000

■ Loans to employees of $120,000, 30% of which is due by the end of 20X6

■ PPE with a historical cost of $129,000 and accumulated depreciation of $12,000

■ Investment in associate companies using equity method at $35,000

■ Short-term investment in publicly traded shares of listed companies at $10,000

Question 1: What are GE Broadcasting's current and non-current assets?

2. GE Broadcasting's liabilities at the end of December 31, 20X5:

■ Trade payable of $317,000

■ Note payable of $245,000 due July 1, 20X7

■ Interest accrued for note payable $8,000 (payable every quarter, the next payment being

on April 1, 20X6)

■ Provisions for unbilled expenses of $40,000

■ Provision for employee benefit of $248,000 (first employee retirement expected in 20X9)

■ Interest-free loan from a shareholder, totaling $400,000, payable in eight equal quarterly

installments, first payment due on March 1, 20X6.

Question 2: What are GE Broadcasting's current and non-current liabilities?

Dear teaches

would you take time help me classify the right items and catogary them for me reference.

Regarding the Question1 my concern is on "Loans to Employee 120K 30% due by end of 20X6".

Regarding the Question 2 is provisions for unbilled expenseds of 40K, this belong to current right?

Looking forward to your answers and thanks so much.

Thanks