You are a senior auditor working on the audit of HealthyGlow for the year ended 30 June 2015. You are in the planning stage of the audit. It is April 2015 and you discover that HealthyGlow has recently acquired two new, full-body scanning machines, representing the very latest in technology, at a cost of more than $10 million each. The machine enables a full 360 degree scan of the body with the ability to identify tumours, cysts and other abnormal internal growths which currently have a 50% probability of being detected with other scanning devices on the market.

Recent studies have shown there may be potential long-term side effects to patients who are scanned by the new technologically advanced machine. However, given the machine has only just arrived on the market, the results will not be known for many more years. This uncertainty and the potential high risk associated with the machine have caused bad press for both the scanning machine and HealthyGlow.

HealthyGlow charges patients a premium price for the scanning machine due to its advanced technological abilities. As a result of high demand, the hospital has decided to reserve the use of the machine for pre-paid patients only. All scans must be paid for in full by patients at the time of booking. Payments are immediately recognised as revenue by the hospital.

Demand for the scanners has been extremely high and HealthyGlow now has bookings for four months in advance. You note that even though it is only April 2015, the hospital has bookings for July and August 2015.

The Medical Association of NSW is currently reviewing the use of the scanning machines and may ban their use within Australia until the issue is resolved. The decision is expected to be communicated on 1 August 2015. Management have indicated there is an 80% chance the scanners will be given the go ahead.

Required

1. Assess the main business risks for HealthyGlow.
2. Identify two key account balances likely to be affected by the above information.
3. For each account balance identified in (b), identify and explain the key assertion most at risk.

1. In the year 2018, a director was dismissed and he commenced an action against the company claiming substantial damages for wrongful dismissal. The company's lawyer advised that the ex-director was likely to succeed with his claim estimated to be $1,000,000. In 2019, this case was still unsettled and the company has just found some new evidence showing that the possibility of success of the ex-director's claim was lower, around 30% as advised by the company's lawyer.

Required:

What was the accounting treatment for the claim for 2018 and 2019? Justify your answer. Provide journal entries where applicable. Limit your answer to 50 words.

2. Simple limited is preparing its financial statements for the year ended 31 December 2019. Before the authorization of financial statements for issue, the following material events took place:

(a) Simple Limited holds a portfolio of shares listed on the Hong Kong Stock Exchange as at the reporting date. The fair value of the investment portfolio of shares on the reporting date was $3.5 million. The value of such investments had deteriorated by 30% since the reporting date.

(b) Simple Limited carries its inventory at the lower of cost and net realizable value. On 20 January 2020, the company entered into an agreement to sell part of its inventory for $1 million. The cost of inventory as reported in its statement of financial position was $1.5 million.                             

Required;

Suggest and explain the accounting treatment for each of the above items. Justify your answers. Provide journal entries where applicable.

A mutual fund holds the following assets at the beginning of the year:

8,000 shares of FB, price $180

1250 shares of AMZN, price $1100

1100 shares of GOOG, price $950

The mutual fund has 910,000 number of shares issued at this point. The mutual fund has 1.2% operating expenses, 0.5% 12b-1 fees and a 4% front-end load. Expenses and fees are deducted from assets at the end of the year. At the end of the year, the assets held by the fund are worth $ 4.4m (before expenses) and there are 900,000 shares outstanding. Just before the end of the year, the fund realized $0.3m capital gains and received $0.2m dividends. What is the reported return on the fund? (Provide your answer in %, rounded to two decimals, omitting the % sign. Please show all formulae, solutions and steps.)

Roquan, a single taxpayer, is an attorney and practices as a sole proprietor. This year, Roquan had net business income of $90,000 from his law practice. Assume that Roquan pays $40,000 wages to his employees, he has $10,000 of property (unadjusted basis of equipment he purchased last year), and has no capital gains or qualified dividends. His taxable income before the deduction for qualified business income is $100,000. (Leave no answer blank. Enter zero if applicable.)

Required:

1. Calculate Roquan’s deduction for qualified business income.
2. Assume the same facts provided above, except Roquan’s taxable income before the deduction for qualified business income is $300,000. Calculate Roquan’s deduction for qualified business income.

Please use 2019 tax laws and explain your answer!

Consider the following.

a. What is the duration of a four-year Treasury bond with a 9.5 percent semiannual coupon selling at par? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Duration of the bond years

b. What is the duration of a three-year Treasury bond with a 9.5 percent semiannual coupon selling at par? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Duration of the bond years

c. What is the duration of a two-year Treasury bond with a 9.5 percent semiannual coupon selling at par? (Do not round intermediate calculations. Round your answer to 2 decimal places. (e.g., 32.16)) Duration of the bond years

A 34 year old female with HIV comes to the office due to the appearance of multiple tender nodules on her lower extremities over the past several weeks. The patient tried to squeeze open the lesions, but this led to profuse bleeding with no expression of pus. She works at a pet store in Mississippi and has regular contact with a variety of animals. Skin examination findings are shown below. Biopsy of the lesions reveals large endothelial cells forming vascular channels with a mixed neutrophilic and lymphocytic infiltrate. Immunohistochemical staining for human herpesvirus 8 is negative. On Warthin-Starry Stain there are gram negative bacteria. Infection with which of the following pathogens is most likely responsible for the patient's skin condition?

Group of answer choices

Bartonella henselae

Pseudomonas aeruginosa

Yersinia pestis

Yersinia enterocolitica

Closing the Balances in The Variance Accounts at the End of the Year

Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end:

Unadjusted Cost of Goods Sold equals $1,540,000, unadjusted Work in Process equals $336,000, and unadjusted Finished Goods equals $260,000.

Required:

1. Assume that the ending balances in the variance accounts are immaterial and prepare the journal entries to close them to Cost of Goods Sold. Note: Close the variances with a debit balance first. If an amount box does not require an entry, leave it blank or enter "0".

What is the adjusted balance in Cost of Goods Sold after closing out the variances?

$

2. What if any ending balance in a variance account that exceeds $9,000 is considered material? (a) Close the immaterial variance accounts to Cost of Goods Sold. (b) Prorate the largest of the labor variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. (c) Prorate the largest of the material variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. The prime cost in Cost of Goods Sold is $1,050,000, the prime cost in Work in Process is $165,200, and the prime cost in Finished Goods is $136,000. If an amount box does not require an entry, leave it blank or enter "0".

Note: Round all interim calculations to three decimal places, and round your final answers to the nearest dollar. Adjust credit entry for rounding to ensure debits equal credits in journal entry.

What are the adjusted balances in Work in Process, Finished Goods, and Cost of Goods Sold after closing out all variances?

At the beginning of the school year, Katherine Malloy decided to prepare a cash budget for the months of September, October, November, and December. The budget must plan for enough cash on December 31 to pay the spring semester tuition, which is the same as the fall tuition. The following information relates to the budget:

a. Prepare a cash budget for September, October, November, and December. Enter all amounts as positive values except an overall cash decrease which should be indicated with a minus sign.

b. Are the four monthly budgets that are presented prepared as static budgets or flexible budgets?

(static, flexible)

c. Malloy can see that her present plan (will, will not provide) sufficient cash. If Malloy did not budget but went ahead with the original plan, she would be $ ? (over/short) at the end of December, with no time left to adjust.

The average salary of merchandisers is $54,000 per year with a standard deviation of $6000. a. What is the probability that a merchandiser earns more than $66,000 per year? (Round z-score computation to 2 decimal places and the final answer to 4 decimal places.) Probability 0.5228 b. What is the probability that a merchandiser earns less than $42,000 per year? (Round z-score computation to 2 decimal places and the final answer to 4 decimal places.) Probability 0.5228 c. What is the probability that a merchandiser earns between $50,000 and $58,000 per year? (Round z-score computation to 2 decimal places and the final answer to 4 decimal places.) Probability 0.4972 d. What is the probability that a merchandiser will earn between $45,000 and $63,000 per year? (Round z-score computation to 2 decimal places and the final answer to 4 decimal places.) Probability 0.8664 e. What is the average salary below which 25% of the merchandisers earn? (Round the final answer to the nearest whole number.) Salary $

What is the estimated CPM for advertising on? per month and per year.

- Spotify:

- Pandora:

- Tik Tok: