When calculating the NCI share of equity the step approach is used. Demonstrate the step approach, explaining in detail each journal entry, using the following information:

Time Ltd acquired 90% of Out Ltd for $252,000 cash on 1 July 2018. At that date the equity of Out included the following:

       Share Capital          $200 000

       Retained Earnings              80 000

                                   280 000

On 30 June 2020, Out Ltd provided the following information:

Profit after tax               $ 40 000

Retained earnings (1/7/19)       100 000

Dividend paid                    10 000

A local college enters into an agreement with a Bookstore, which will distribute that college press books. According to the contract, The bookstore has the right to return any unsold books no later than 24 weeks after sale.

On February 1, 2020, The Press (The college) sold on credit 300 books for $150 each to that Bookstore. The cost of each book is $70. The Press estimates that 50 of the books sold to the bookstore will be returned. On June 4, 35 books were returned.

Required:

As The Press's accountant, write the journal entries to record the sale, the return of 35 books and the expiry of the right of return

Listed below are yearly forecasts of “free cash flow” (operating cash flow plus investment-related cash flow) for Tomkat LLC.

Year Cash Flow

2020 -$2.8 million.

2021 -$2.0 million.

2022 -$1.2 million.

2023 -$0.2 million.

2024 $0.9 million.

2025 $2.2 million.

After year 2025, cash flows are anticipated to grow by 3% per year, in perpetuity. For simplicity, assume all that cash flows occur at the end of each year. Assume a discount rate of 8% per year.

What is the value of Tomkat LLC as of the end of 2019?

AFN equation

Broussard Skateboard's sales are expected to increase by 25% from $7.2 million in 2019 to $9.00 million in 2020. Its assets totaled $5 million at the end of 2019. Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, 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 3%, and the forecasted payout ratio is 55%. Use the AFN equation to forecast Broussard's additional funds needed for the coming year in $

Barcelona Machine Tools. Oriol​ D'ez Miguel​ S.R.L., a manufacturer of heavy duty machine tools near​ Barcelona, ships an order to a buyer in Jordan. The purchase price is

€426,000.

Jordan imposes a

12%

import duty on all products purchased from the European Union. The Jordanian importer then​ re-exports the product to a Saudi Arabian​ importer, but only after imposing its own resale fee of

29%.

Given the following spot exchange rates on April​ 11, 2010, what is the total cost to the Saudi Arabian importer in Saudi Arabian​ riyal, and what is the U.S. dollar equivalent of that​ price?  ​(Click on the

icon to import the table into a​ spreadsheet.)

The spot​ rate, Saudi Arabian riyal per Jordanian dinar is SRI

nothing​/JD.

​(Round to five decimal​ places.)

Below is the 2009 contribution income statement of a company.

During the coming year, the company expects an increase in variable manufacturing costs of $8 per unit and in fixed manufacturing costs of $72,000.

(a) If sales for 2010 remain at 12,000 units, what price should Colgate charge to obtain the same profit as last year?
$______

(b) Management believes that sales can be increased to 16,000 units if the selling price is lowered to $109. What would be the excepted profit (or loss) as a result of this action? Use a negative sign with your answer, if appropriate.
______

(c) After considering the expected increases in costs, what sales volume is needed to earn a profit of $98,000 with a unit selling price of $109?
_____

We would like to build an Excel model addressing the following situation:

Kristy will open an investment account on September 1, 2020 at a bank. She plans on saving and depositing $300 into the account at the end of each month with first deposit on September 30, 2020. The account will earn 6 percent interest compounded monthly (i.e. she earns 6%/12=0.5% interest on deposits with the bank on any given month). Kristy is curious about how much would accumulate in her investment account after 20 years.

To help her with her financial planning you will prepare three graphs using the data table feature in Microsoft Excel:

1. A graph showing how much would accumulate in the bank account after 1, 3, 5, 10, 20 (actual), or 30 years. Label the x-axis as time and y-axis of the graph as dollar amount accumulated in the bank account.
2. A graph showing how much would accumulate in the bank account if annual interest rate were 4%, 6% (the actual), 8%, 10%, and 12% hypothetically. Label the x-axis of the graph as the interest rate and the y-axis as dollar amount accumulated in the bank account.
3. A graph showing how much would accumulate in the bank account if deposits were to be $100, $200, $300 (actual), or $500 hypothetically.  Label the x-axis of the graph as the monthly deposit amount and the y-axis as dollar amount accumulated in the bank account.  

Simnet Solutions Inc. manufactures and sells cell phones. For the 2020 business plan, the company estimated the following:

Selling Price per Unit   $750
Variable Cost per Unit   $450
Annual Fixed Cost   $180,000
Net Income After Tax   $360,000
Tax Rate   25%
The January financial statements reported that sales were not meeting expectations. For the first 3 months of the year, only 400 units had been sold at the established price. With variable cost staying as planned, it was clear that 2020 after tax projection would not be reached unless some action was taken. A management committee presented the following mutually exclusive alternatives to the president.
Reduce the selling price by $60. The sales team forecast that with a significantly reduced selling price 3,000 units can be sold in the remainder of the year. Total fixed and variable unit cost will stay as budgeted.
Lower variable cost per unit by $20 through the use of less expensive direct materials. The selling price will also be reduced by $40, and sales of 2,800 units are expected for the remainder of the year.
Cut fixed costs by $20,000 and lower the selling price by 5%. Variable cost per unit will be unchanged and sales of 2,500 units are expected for the remainder of the year.
PROBLEM 3 INSTRUCTIONS
Under the current production, policy determines the number of units that the company must sell to:
break-even
achieve its desired operating income
Determine which alternative the company should select to achieve its desired operating income.

Company X has the following information:

Inventory at end-of-year prices of $1,300,000 (2018 – base year), $1,450,000 (2019), and $1,350,000 (2020)

The price index is 105 in 2019 and 107 in 2020

Use the dollar-value LIFO method to calculate ending inventory for 2019 and 2020.