Assume Jinan University and an American Professor signed a contract for a summer business arrangement. In the contract, the professor promised to teach for the summer in Guangzhou, and in return, Jinan University promised to pay the professor $1 million. In preparation for the arrival of the professor, Jinan paid $20,000 for a fancy Guangzhou apartment for the professor. Jinan also bought $2,000 plane tickets, $500 in weekend tours, and $200 in equipment for the professor.

In addition, Jinan spent $12,000 in advertising, showing possible students that the professor was coming to teach. 500 students saw the advertising. Each paid $20,000 to Jinan to enroll. The students gave up the opportunity to attend a different program in Guangzhou. The other program would have cost each student $30,000.

All of the students fly to Guangzhou, spending $2,500 on airfare. Each also paid $10,000 for excellent apartments near the university. The university was ready to go.

Then the night before classes start, the professor calls and says he decided not to come. In the above story, who can sue whom? What will each party argue in each case? What legal concepts are involved from our class? Discuss how much (if anything) different parties would pay. Explain. Be thorough. Please also be specific.

Assume Jinan University and an American Professor signed a contract for a summer business arrangement. In the contract, the professor promised to teach for the summer in Guangzhou, and in return, Jinan University promised to pay the professor $1 million. In preparation for the arrival of the professor, Jinan paid $20,000 for a fancy Guangzhou apartment for the professor. Jinan also bought $2,000 plane tickets, $500 in weekend tours, and $200 in equipment for the professor.

In addition, Jinan spent $12,000 in advertising, showing possible students that the professor was coming to teach. 500 students saw the advertising. Each paid $20,000 to Jinan to enroll. The students gave up the opportunity to attend a different program in Guangzhou. The other program would have cost each student $30,000.

All of the students fly to Guangzhou, spending $2,500 on airfare. Each also paid $10,000 for excellent apartments near the university. The university was ready to go. Then the night before classes start, the professor calls and says he decided not to come.

In the above story, who can sue whom? What will each party argue in each case? What legal concepts are involved from our class? Explain. Be thorough.

Please be specific on bold font questions !!

Sandhill Company expects to have a cash balance of $69,000 on January 1, 2020. These are the relevant monthly budget data for the first two months of 2020.

Prepare a cash budget for January and February. Show all your work for partial credits in your uploaded file. List items that increase cash balance first.

Based on past experience, Maas Corp. (a U.S.-based company) expects to purchase raw materials from a foreign supplier at a cost of 1,200,000 francs on March 15, 2021. To hedge this forecasted transaction, on December 15, 2020, the company acquires a call option to purchase 1,200,000 francs in three months. Maas selects a strike price of $0.68 per franc when the spot rate is $0.68 and pays a premium of $0.005 per franc. The spot rate increases to $0.686 at December 31, 2020, causing the fair value of the option to increase to $10,000. By March 15, 2021, when the raw materials are purchased, the spot rate has climbed to $0.70, resulting in a fair value for the option of $24,000. The raw materials are used in assembling finished products, which are sold by December 31, 2021, when Maas prepares its annual financial statements.

1. Prepare all journal entries for the option hedge of a forecasted transaction and for the purchase of raw materials.

2. What is the overall impact on net income over the two accounting periods?

3. What is the net cash outflow to acquire the raw materials?

Prepare all the necessary journal entries for the transactions listed above for Parker Corporation.

5. On December 1, 2018, Folks Wagon Company adopted a stock-option plan that granted options

to key executives to purchase 50,000 shares of the company’s $10 par value common stock. The

options were granted on January 1, 2019, and were exercisable 3 years after the date of grant if the

grantee was still an employee of the company. The options expired 5 years from the date of grant.

The option price was set at $35, and the fair value option-pricing model determines the total

compensation expense to be $450,000.

All of the options were exercised during the year 2022: 20,000 on February 23 when the market

price was $46, and 30,000 on August 8 when the market price was $85 a share.

a. Prepare the journal entries relating to the stock option plan for the years 2019, 2020, and 2021.

Assume that the employee performs services equally in 2019, 2020, and 2021.

b. Prepare the journal entries that record the two events of exercising the options in 2022

Based on past experience, Maas Corp. (a U.S.-based company) expects to purchase raw materials from a foreign supplier at a cost of 1,500,000 francs on March 15, 2021. To hedge this forecasted transaction, on December 15, 2020, the company acquires a call option to purchase 1,500,000 francs in three months. Maas selects a strike price of $0.63 per franc when the spot rate is $0.63 and pays a premium of $0.005 per franc. The spot rate increases to $0.634 at December 31, 2020, causing the fair value of the option to increase to $13,000. By March 15, 2021, when the raw materials are purchased, the spot rate has climbed to $0.65, resulting in a fair value for the option of $30,000. The raw materials are used in assembling finished products, which are sold by December 31, 2021, when Maas prepares its annual financial statements.

1. Prepare all journal entries for the option hedge of a forecasted transaction and for the purchase of raw materials.

2. What is the overall impact on net income over the two accounting periods?

3. What is the net cash outflow to acquire the raw materials?

Company A on 1 January 2014 issued a bond that required it to pay an annual coupon of €800 in
arrears and to repay the principal of €10,000 on 31 December 2023. By 2019, Company A was in
significant financial difficulties and was unable to pay the coupon due on 31 December 2019. On 1
January 2020, Company X estimates that the holder could expect to receive a single payment of
€4,000 at the end of 2021. It acquires the bond at an arm’s length price of €3,000. Company X
determines that the debt instrument is credit-impaired on initial recognition, because of evidence of
significant financial difficulty of Company A and because the debt instrument was purchased at a
deep discount.
Requirements :
a. Calculate the EIR using the estimated cash flows of the instrument
b. Calculate the interest income would be recognised on the instrument during 2020
c. Determine the carrying amount at the end of the year 2020
d. Assumed that at the end of the year based on reasonable and supportable evidence, the
cash flow expected to be received on the instrument had increase to €4,250 (still to be
received at the end of 2021), determine the carrying amount and impairment gain/loss.
e. Assumed that at the end of the year based on reasonable and supportable evidence, the
cash flow expected to be received on the instrument had increase to €3,500 (still to be
received at the end of 2021), determine the carrying amount and impairment gain/loss.

Costa Cruise Lines (CCL) (a U.S. company based in Miami, FL) purchased a ship from Komatsu Heavy Equipment for ¥700 million – payable in 1 year.  The current spot rate is ¥110/$ and the one-year forward rate is ¥108/$.  

For borrowing (or depositing), the annual interest rate in Japan is 6%.  In the United States, the rate is 2%.

Yen call and put options, with a 1-year expiration date and an exercise price of $.009 are available. The price (premium) of the call option is $.002 per yen.  The price (premium) of the put option is $.001 per yen.

* Assume that one year from today, the spot rate for yen is either ¥130/$ or ¥105/$.  If CCL decides to hedge with options, should they use a call or a put?  If CCL follows the appropriate options hedging strategy, what is CCL’s net cost (in $US) to purchase the ship if the spot rate is ¥130/$?  What is the net cost if the spot rate is ¥105/$?  (Be sure to include the cost of buying the option in your answer.)

Recommended strategy (check one box):  Call options….□                   Put options….□

Net Cost if ¥130/$ = $____________________    Net cost if ¥105/$  = $____________________

* If CCL decides to hedge with a forward contract, what will the ship cost (in $US)?

* If CCL decides to use a money market hedge, what will the ship cost (in $US)?

There is not a cure for HIV yet, but there is an effective treatment for reducing the likelihood of transmission of HIV from an infected mother to her unborn child (or born child, through breast milk). In the absence of treatment, the likelihood of transmission averages about 25%. In collaboration with Eastern Mediterranean University Faculty of Pharmacy, a Cyprus based, private pharmaceutical company KuntePharma develop a new drug called HIV-OFF. Researchers from the university and KuntePharma, travel to X country in Africa and ask 200 pregnant HIV-positive mothers there to participate in a trial for a new drug that reduces, “from mother to child” HIV transmission. It is said that, the reasons of choosing Africa are: “Compared to Cyprus it would cost much less and the fact that laws and regulations allow more flexibility to conduct the research in the X country”. The give 100 women a placebo, and they give 100 women HIV-LESS. Of the 100 HIV-LESS children, only 1 contract HIV. Of the 100 placebo children, 44 do. In this study, 45 children contract HIV, when it is likely that, if all the participants were given HIV-LESS, less would have. Are the scientists morally responsible for the transmission of HIV to more children in this trial? Remembering the concepts Consent, Placebo, Risk-benefit-harm, The Rights of the Patients, exploitation; respect for persons and utilitarian approaches and others that you might think relevant to this case, which were discussed during the course, discuss if this trial is ethical? You might compare the dynamics of this case with historic examples that caused drastic changes in understanding of experimentations on human beings and formed the present day ethical principles and laws.

Your blood belongs to one of four genetically determined types: O, A, B, or AB. A bulletin issued by a large blood bank claims that these four blood types are distributed in the U.S. population according to the following proportions: 0.44 are type O, 0.41 are type A, 0.10 are type B, and 0.05 are type AB. Let’s treat this claim as a null hypothesis to be test with a random sample of 100 students from a large university. The data collection results of each blood type from the university showed 38 for O and A, 20 for B, and 4 for AB.

A) What is the statistical hypothesis? (Ho and Ha)

B) Find an expected frequency for each expected proportion.

C) Solve for chi-square test statistic.

D) Find the degrees of freedom.

E) Identify the chi-square value from the table.

F) What is the conclusion?