Microsoft has low efficiency ratios in comparison to the industry standards. What does this tell us about the company? What are some reasons their numbers may be low?

What does the Altman Z score tell us with respect to company financial distress? How should we use such a tool as managers? (300 words minimum)

A manufacturer of fabricated metal products has acquired a new plasma table for $37,000. It is projected that the acquisition of this equipment will increase revenue by $10,000 per year. Operating costs for the machine will average $2,600 per year. The machine will be depreciated using the MACRS method, with a recovery period of 7 years. The company uses an after-tax MARR rate of 10% and has an effective tax rate of 30%.

2. Now, suppose that the duration of the project is six years and that an estimate of the value of the equipment cannot be obtained from the marketplace.

2.2. Find the before-tax PW, IRR and discounted payback period (before-tax MARR = 10%). Can the acquisition be economically justified? Why or why not?

Fesler Inc. acquired all of the outstanding common stock of Pickett Company on January 1, 2017. Annual amortization of $22,000 resulted from this transaction. On the date of the acquisition, Fesler reported retained earnings of $520,000 while Pickett reported a $240,000 balance for retained earnings. Fesler reported net income of $100,000 in 2017 and $68,000 in 2018, and paid dividends of $25,000 in dividends each year. Pickett reported net income of $24,000 in 2017 and $36,000 in 2018, and paid dividends of $10,000 in dividends each year.

If the parent’s net income reflected use of the initial value method, what were the consolidated retained earnings on December 31, 2018?

Pesto Company posesses 80 percent of Salerno Company's outstanding voting stock. Pesto uses the initial value method to account for this investment. On January 1, 2014, Pesto sold 9 percent bonds payable with a 10 million dollar face value (maturing in 20 years) on the open market at a premium of 600,000. On January 1 2017, Salerno acquired 40 percent of these same bonds from an outside party at 96.6 percent of face value. Both companies use the straight line method of amortization. For 2018 consolidation what adjustment should be made to Pesto's beginning Retained earnings as a result of this bond acquisition? Please show step by step calculations

Your company, DrugsRUs, has developed a generic angiotensin-converting-enzyme inhibitor, Vasotec, as a pharmaceutical drug used primarily for the treatment of hypertension and congestive heart failure. You are leading the regulatory strategy team and have been asked to describe the path to approval comparing introduction in the US versus Brasil.

Please discuss the following:

(1) Which agency or agencies will be responsible for approving/reviewing your Vastec drug: (a) before commercial introduction, and (b) after approval for commercialization/sale within the US., and

(2) Compare known issues your company will need to consider to market your generic drug is Brasil.

Case (a) A Cement manufacturing organization incurred the following expenses during the year 2017.The establishment cost for a new business facility was amounted to OMR 45,000, the cost of formulas and prototype was OMR 76,000, The design of pilot plan was OMR 172,000, The television advertisement cost was OMR 25,000, Goodwill acquired from purchase combination was OMR 65,000, Operating rights cost was 36,000 During the year, in house accounting software was developed by the organization at a cost of OMR 120,000.

Case (b) A new product was developed during the year. The expenditure totaled OMR 4.5 million of which OMR 3 million was incurred prior to 30 November 2018 and on that date it became clear that the product was technically viable. The new product will be launched in the next four months and its recoverable amount is estimated at OMR 2,100,000.

Case (c) A customer list was prepared by marketing division and through that innovative marketing strategies have been developed. The estimated cost of preparation of customer list was OMR 900,000 out of which the actual cost incurred for this purpose was OMR 650,000. Because of this cost the company has earned incremental revenue of OMR 450,000.

Case (d) The Company has acquired a formula from an organization for production of one variety of products. The cost incurred on acquiring the formula was OMR 200,000. The new product with the formula was popularized and the increased profit to the business over the next two years would be OMR 325,000

Required:

On the role of an accountant, assess ALL the above cases and justify your answer for ALL the cases about the capitalization of assets and charging of expenses as per the requirement so IAS 38

Case (a) A Cement manufacturing organization incurred the following expenses during the year 2017.The establishment cost for a new business facility was amounted to OMR 45,000, the cost of formulas and prototype was OMR 76,000, The design of pilot plan was OMR 172,000, The television advertisement cost was OMR 25,000, Goodwill acquired from purchase combination was OMR 65,000, Operating rights cost was 36,000 During the year, in house accounting software was developed by the organization at a cost of OMR 120,000.

Case (b) A new product was developed during the year. The expenditure totaled OMR 4.5 million of which OMR 3 million was incurred prior to 30 November 2018 and on that date it became clear that the product was technically viable. The new product will be launched in the next four months and its recoverable amount is estimated at OMR 2,100,000.

Case (c) A customer list was prepared by marketing division and through that innovative marketing strategies have been developed. The estimated cost of preparation of customer list was OMR 900,000 out of which the actual cost incurred for this purpose was OMR 650,000. Because of this cost the company has earned incremental revenue of OMR 450,000.

Case (d) The Company has acquired a formula from an organization for production of one variety of products. The cost incurred on acquiring the formula was OMR 200,000. The new product with the formula was popularized and the increased profit to the business over the next two years would be OMR 325,000

Required:

On the role of an accountant, assess ALL the above cases and justify your answer for ALL the cases about the capitalization of assets and charging of expenses as per the requirement so IAS 38

Elements of the Income Statement for Hofstadter Experiments Ltd. follow:

Highlights of the Balance Sheet:

Required: (Round all answers to 2 decimal places).

1. Calculate the gross profit rate for both 2019 and 2020.
2. Did the gross profit rate improve or worsen from 2019 to 2020?
3. What was the Accounts Receivable Turnover ratio for 2020?
4. Explain what Accounts Receivable Turnover is in your own words.
5. What was the Return on Common Shareholders’ Equity for 2020?
6. What was the Current Ratio for 2020?
7. Is the current ratio calculated in f) adequate?