Problem:

Answer each of the following questions related to various short-term liabilities:

a.  

On September 1, 2016, a company borrowed $100,000 from its bank and signed a nine-month note with 8% interest. The principal and interest on the loan are to be paid when the note matures. What is the total amount related to this loan that should be reported under current liabilities on the company's December 31, 2016, statement of financial position?

b.  

The balance in a company's long-term mortgage payable account on December 31, 2016, is $150,000. This is to be repaid at the rate of $25,000 per year for the next six years. How should this liability be reported on the company's statement of financial position on December 31, 2016?

c.  

During the spring and summer of 2016, the Prairie Predators hockey team sold 2,000 season tickets for the 2016-2017 hockey season. Each of the season tickets was sold for $500 and covered 20 games, with 8 to be played in the fall (October to December) and 12 in the winter (January to March). What is the effect on the team's financial statements when the season tickets are sold? What amount of liability (if any) related to the season tickets should be reported on the team's December 31, 2016, statement of financial position?

d.  

Bathurst Beverages Ltd. collects cash deposits on its returnable bottles and other containers. Past experience indicates that virtually all the bottles and containers will be returned and the deposits refunded. During the current year, the company received $150,000 in such deposits and it disbursed $140,000 for bottles and other containers that were returned. How would this information be reflected in the year-end statement of financial position for Bathurst Beverages?

e.  

During the current year, a company sold 10,000 units of a product that was covered by a two-year warranty. Past experience indicates that approximately 3% of the units sold will require warranty repairs, at an average cost of $50 per unit. The actual costs incurred during the year for repairs under the warranty totalled $7,000. What amount of liability (if any) should be reported on the company's statement of financial position at the end of the current year?

Required information

[The following information applies to the questions displayed below.]

Simon Company’s year-end balance sheets follow.

The company’s income statements for the years ended December 31, 2017 and 2016, follow. Assume that all sales are on credit:

(1) Compute days' sales uncollected.

(2) Compute accounts receivable turnover.

(3) Compute inventory turnover.

(4) Compute days' sales in inventory.
  

Problem 4-2 (Essay)

On November 1, 2016, Campbell Corporation management decided to discontinue operation of its Rocketeer Division and approved a formal plan to dispose of the division. Campbell is a successful corporation with earnings of $150 million or more before tax for each of the past five years. The Rocketeer Division, a major part of Campbell’s operations, is being discontinued because it has not contributed to this profitable performance.

The division’s main assets are the land, building, and equipment used to manufacture engine components. The land, building, and equipment had a net book value of $42 million on November 1, 2016.

Campbell’s management has entered into negotiations for a cash sale of the division for $36 million (net of costs to sell). The sale date and final disposal date of the division is expected to be July 1, 2017. Campbell Corporation has a fiscal year ending May 31. The results of operations for the Rocketeer Division for the 2016–17 fiscal year and the estimated results for June 2017 are presented below. The before-tax losses after October 31, 2016, are calculated without depreciation on the building and equipment.

The Rocketeer Division will be accounted for as a discontinued operation on Campbell’s financial statements for the year ended May 31, 2017. Campbell’s tax rate is 25% on operating income and all gains and losses. Campbell prepares financial statements in accordance with IFRS.

(d)
Assume that Campbell Corporation management was debating whether the sale of the Rocketeer Division qualified for discontinued operations accounting treatment under IFRS. List specific factors or arguments that management would use to suggest that the Rocketeer Division should be treated as a discontinued operation. Why might management have a particular preference about which treatment is given? From an external user’s perspective, what relevance does the presentation of the discontinued operation have when interpreting the financial results?

Freese, Inc., is in the process of preparing the fourth quarter budget for 2016, and the following data have been assembled:

• The company sells a single product at a price of $70 per unit. The estimated sales volume for the next six months is as follows:

  September	10,400	units
  October	9,600	units
  November	11,200	units
  December	16,000	units
  January	7,200	units
  February	8,000	units

• All sales are on account. The company's collection experience has been that 30% of a month's sales are collected in the month of sale, 68% are collected in the month following the sale, and 2% are uncollectible. It is expected that the net realizable value of accounts receivable (i.e., accounts receivable less allowance for uncollectible accounts) will be $495,040 on September 30, 2016.
• Management's policy is to maintain ending finished goods inventory each month at a level equal to 30% of the next month's budgeted sales. The finished goods inventory on September 30, 2016, is expected to be 2,880 units.
• To make one unit of finished product, 5 pounds of materials are required. Management's policy is to have enough materials on hand at the end of each month to equal 40% of the next month's estimated usage. The raw materials inventory is expected to be 20,160 pounds on September 30, 2016.
• The cost per pound of raw material is $6, and 70% of all purchases are paid for in the month of purchase; the remainder is paid in the following month. The accounts payable for raw material purchases is expected to be $91,152 on September 30, 2016.

d. Prepare a materials purchases budget in pounds, by month and in total, for the fourth quarter of 2016.

e. Prepare a schedule of cash payments for materials, by month and in total, for the fourth quarter of 2016. (Do not round intermediate calculations.)

The following are BAC Bhd.’s year end statement of financial position and statement of profit and loss for 2016 and 2017:

Related items:

2017 Total dividends paid $70,075 ,   Stock price per share $15.60

2016 Total dividends paid $15.60 ,   Stock price per share $21.80

Required:

1. Calculate the after tax operating income (i.e. after-tax EBIT) for 2016 and 2017.   
2. Calculate the net working capital (NWC) that is supported by non-free sources for 2016 and 2017, and the changes in NWC between these two years.                             
3. What is free cash flow (FCF)? Calculate the FCF for 2017. Is a negative FCF always a bad sign?   
4. Calculate the following for the company for 2017:
   1. Earnings per share   
   2. Dividends per share   
   3. Book value per share

The following are BAC Bhd.’s year end statement of financial position and statement of profit and loss for 2016 and 2017:

Related items:

2017 Total dividends paid $70,075 ,   Stock price per share $15.60

2016 Total dividends paid $15.60 ,   Stock price per share $21.80

Required:

1. Calculate the after tax operating income (i.e. after-tax EBIT) for 2016 and 2017.   
2. Calculate the net working capital (NWC) that is supported by non-free sources for 2016 and 2017, and the changes in NWC between these two years.                             
3. What is free cash flow (FCF)? Calculate the FCF for 2017. Is a negative FCF always a bad sign?   
4. Calculate the following for the company for 2017:
   1. Earnings per share   
   2. Dividends per share   
   3. Book value per share

C++
1. Start with a UML diagram of the class definition for the following problem defining
a utility class named Month.
2. Write a class named Month. The class should have an integer field named
monthNumber that holds the number of the month (January is 1, February is 2,
etc.). Also provide the following functions:
• A default constructor that sets the monthNumber field to 1.
• A constructor that accepts the number of month as an argument and sets the
monthNumber field to the passed value. Set the monthNumber to 1 if the
passed argument’s value is not a value between 1 and 12.
• A constructor that accepts the name of month, such as “January” as an
argument and sets the monthNumber field to the correct corresponding value.
Make sure this is not case sensitive, so entering “January” will return the same
value as if “JaNUary” was entered. If an invalid month is entered, set the
monthNumber to 1.
• A setMonthNumber function that accepts an integer argument to assign to
the monthNumber field. Set the monthNumber to 1 if the passed argument’s
value is not a value between 1 and 12.
• A getMonthNumber function that returns the value in the monthNumber
field.
• A getMonthName function that returns the name of the month. For example,
if the monthNumber field is 1, then this function will return “January”. Note
that this function does not accept any parameters. It looks up the
monthNumber field to make its decision.
• A function named print that prints the month number and the month name.
• Write a main program that uses the class Month and test various operations
on the objects of the class Month. Perform a series of operations to test each
of the functions and the constructors. Make sure to prompt the user to enter a
value for monthNumber as you test your code. As part of your testing,
generate a set of random numbers for month number (between 1 and 12) and
display the month number along with the month name.

Here is a possible sample run:
Using the default constructor - Month number = 1
Please enter a month number between 1 and 12: 9
Using the constructor with a parameter - Month number = 9
Now please enter a month name: aprillll
Using the constructor that accepts a month name: January
Enter a number representing a month number 12
Month number is: 12
Month name for the number you entered is: December
Testing the print function
12 December
Testing the functions to assign a month number and check month name
Generating a random number between 1 and 12: 8
Month name is: August
Generating a random number between 1 and 12: 2
Month name is: February
Generating a random number between 1 and 12: 12
Month name is: December
Generating a random number between 1 and 12: 4
Month name is: April

Another run:
Using the default constructor - Month number = 1
Please enter a month number between 1 and 12: 0
Using the constructor with a parameter - Month number = 1
Now please enter a month name: MAy
Using the constructor that accepts a month name: May
Enter a number representing a month number 123
Month number is: 1
Month name for the number you entered is: January
Testing the print function
1 January
Testing the functions to assign a month number and check month name
Generating a random number between 1 and 12: 7
Month name is: July
Generating a random number between 1 and 12: 3
Month name is: March
Generating a random number between 1 and 12: 7
Month name is: July
Generating a random number between 1 and 12: 5
Month name is: May

In the photoelectric effect experiment, a light photon

with a wavelength λ=525 nm hits a metallic cesium

(work function = 3.43 ×10−34 J).\ What is the kinetic energy of the photoelectron produced?

How could an experiment such as that performed by Stern and Gerlach be used to determine the total angular momentum quantum number of the ground state of a given atom or ion? [magnetic sub-levels, number of spots…]

What is the purpose and idea behind the experiment of conducting conductometricic titration of H2(SO4) and Ba(OH)2? what sources of error can be made and how these errors would affect the result?