Compute and Interpret Liquidity, Solvency and Coverage Ratios
Selected balance sheet and income statement information for Calpine Corporation for 2004 and 2006 follows.

(a) Compute the following liquidity, solvency and coverage ratios for both years. (Round your answers to two decimal places.)
2006 current ratio = Answer
2004 current ratio = Answer

2006 quick ratio = Answer
2004 quick ratio = Answer

2006 liabilities-to-equity = Answer
2004 liabilities-to-equity = Answer

2006 total debt-to-equity = Answer
2004 total debt-to-equity = Answer

2006 times interest earned = Answer
2004 times interest earned = Answer

2006 cash from operations to total debt = Answer
2004 cash from operations to total debt = Answer

2006 free operating cash flow to total debt = Answer
2004 free operating cash flow to total debt = Answer

(b) Which of the following best describes the company's credit risk?

Both the quick ratio and current ratio for 2006 are lower than 1.0 and have increased in the past two years. Along with interest coverage ratios that are exceedingly high, the probability that the company will face default has significantly increased.

Both the quick ratio and current ratio for 2006 are lower than 1.0 and have decreased in the past two years. Along with interest coverage ratios that are exceedingly low, the probability that the company will face default has significantly increased.

Both the quick ratio and current ratio for 2006 are above 1.0 and have decreased in the past two years. Along with interest coverage ratios that are exceedingly low, the probability that the company will face default has significantly decreased.

Both the quick ratio and current ratio for 2006 are above 1.0 and have increased in the past two years. Along with interest coverage ratios that are exceedingly high, the probability that the company will face default has significantly decreased.

Stellar Co. follows the practice of valuing its inventory at the lower-of-cost-or-market. The following information is available from the company’s inventory records as of December 31, 2017.

Greg Forda is an accounting clerk in the accounting department of Stellar Co., and he cannot understand why the market value keeps changing from replacement cost to net realizable value to something that he cannot even figure out. Greg is very confused, and he is the one who records inventory purchases and calculates ending inventory. You are the manager of the department and an accountant.

A)Calculate the lower-of-cost-or-market using the individual-item approach.

Researchers now believe that most medical errors cannot be prevented by perfecting the technical work of individual doctors, nurses, or pharmacists. Improving patient safety often involves the coordinated efforts of multiple members of the health care team, who may adopt strategies from outside health care.”

“The report reviews several practices whose evidence came from the domains of commercial aviation, nuclear safety, and aerospace, and the disciplines of human factors, engineering and organizational theory. Such practices include root cause analysis, computerized physician order entry and decision support, auto-mated medication dispensing systems, bar coding technology, aviation-style preoperative checklists, promoting a ‘culture of safety,’ crew resource management, the use of simulators in training, and integrating human factors theory into the design of medical devices and alarms.

” Discuss this concept of utilizing standard business quality initiatives and the logic of adopting them to use in healthcare. Using the practice of Root cause analysis, research, summarize, and include how you might apply this concept in your healthcare facility

It is one thing to intellectually learn all of these theories and concepts. It is another to actually put those concepts into practice. It is when we apply what we have learned to our lives that we will experience real change. I want to challenge you to apply the techniques for active, empathetic and responsive listening. This exercise will take intentionality and planning for it to be worthwhile.

Begin by choosing someone with whom you will be having this conversation. Is there someone whom you have been neglecting in the listening department? Is there someone who is typically unheard? Or do you have an unresolved conflict that would benefit from some active listening?

After you have chosen, be sure to set the stage properly for listening. Review key concepts from this week and think through how you will apply them. Next, challenge yourself by implementing these concepts in a real conversation. Feel free to ask the individual afterward, how you did and if they felt heard. Take notes soon after the conversation is over, so it is fresh in your mind. Write a response describing your experience and applying each of the concepts used

a. are tax-deductible, i.e., reduce the taxable income of the corporation b. to an individual become non-taxable income to that individual c. to another corporation receive preferential tax treatment (70% tax exclusion) d. to an individual become taxable income of that individual and receive 30% tax exclusion

You are comparing two annuities which offer monthly payments of $700 for five years and pay 0.6 percent interest per month. Annuity A will pay you on the last day of each month (ordinary annuity) while annuity B will pay you on the first day of each month (annuity due). Which one of the following statements is correct concerning these two annuities? a. Annuity B has a higher future value than annuity A b. Both annuities have the same future value as of ten years from today c. Annuity A has a higher future value than annuity B d. Both annuities will have zero value at the end of five years

Nora has some questions for you regarding her individual tax return and C-C Bakery. Her business has been doing extremely well, and she has decided to give back to her community. She would like to contribute $70,000 in December of 2016 to the charitable and nonprofit Boys and Girls Club. She would like to know if she should contribute this from her business account or her individual account. She would also like to know if there are any tax advantages or limitations. Her bakery has been profitable, as her taxable income is projected to be around $500,000 on her 2016 tax return. Her adjusted gross income on her individual return will be around $350,000. She has made no further charitable contributions throughout the year. In a short memo, advise how she can take advantage of the deduction for the charitable contributions to her community via her individual return and/or corporate return.

A client earned in first year of business, in 2015 $50,000 in cash however was told that the money earned did not have to be claimed however you learned that the client actually earned $190,000 in 2015 in cash.

Is it correct that if you earned all cash it does not have to be reported?

Is the cash that the client made taxable? If so how much?

.What will you tell the client?

What laws govern this situation? (Source)

What penalties are possible? (source for the information)

1. How does the IFRS evaluation and recording of goodwill compare with the US GAAP?
2. One of your colleagues says that intangible assets should always be amortized over their legal lives. Is he/her correct?
3. Your company needs to raise cash to market a new product it developed. One of your colleagues says “Our Company has an awful lot of goodwill. Why do not we recommend that we sell some of it to raise cash?” How should you respond to him?
4. Contrast the following types of bonds: (a) secured and unsecured, (b) term and serial, (c) registered and bearer. Write a brief memo to one of your investors recommending which option(s) is preferable? And Why?
5. The market price of bonds is solely a function of the amount of the principle payment at the end of the term of the bonds. Do you agree? And why?
6. Your company is considering issuing a convertible bond. Evaluate the advantages and disadvantages of a convertible bond from the stand point of (a) your company and (b) bond holders.

a. Using

α=0.025​,

perform a​ chi-square test to determine if the type of medal and the country that earned it are independent of one another.

Identify the null and alternative hypotheses for a​ chi-square test of independence based on the information in the table. Choose the correct answer below.

A.

H0​:

Type of medal and country that earned it are not independent of one another.

H1​:

Type of medal and country that earned it are independent of one another.

B.

H0​:

Type of medal and country that earned it are independent of one another.

H1​:

The country that earns the medal affects the type of medal.

C.

H0​:

Type of medal and country that earned it are independent of one another.

H1​:

Type of medal and country that earned it are not independent of one another.Your answer is correct.

D.

H0​:

Type of medal and country that earned it are independent of one another.

H1​:

The type of medal affects the country that earned it.

Find the​ chi-square test statistic.

χ2=nothing

​(Round to two decimal places as​ needed.)

Abby Saavedra works in Thorton Corporation Manila a media empire with more than 45,000
employees worldwide operating in more than a hundred countries. The company provides critical
information to business and professionals on financial, legal, tax and accounting, scientific,
healthcare and media markets which are keys to quality decision making. For faster, efficient, timely
delivery of services to its clients, Thorton Corporation uses the latest technologies in information
and communication.
In Manila, majority of its more than 1,500 employees are millennials. They provide knowledge-based
support for content, customer and consulting services to clients around the world. Its employees
have strong backgrounds in banking and finance, economics, accounting, business, media,
communications, law, marketing and some of them possess multi-language proficiency.
One fine day, Abby was looking forward to her day in the office. While on her way to work, she
already had her day planned, nothing new or unusual or so she thought. Just a few hours in the
office, Abby was called by her immediate boss. As she made her way to the office of her boss, she
was wondering what additional work will be assigned to her. But she was wrong. Abby was called for
a different reason.
Days ago, Abby had a problem meeting the deadline for a book which they need to send to their
publisher. They were running after the production time which was critical for the book to be
published as scheduled. She attributed the delay to unclear instructions from Joy who is her US
counterpart. Considering that the problem does not only involve their team but will also affect
manufacturing, she decided to inform her immediate boss about it. In turn, her boss informed the
manager in the US who is his counterpart.
In the US, Joy was called by her boss to be clarified on the matter. However, she obviously did not
like what Abby did. She did not take it lightly as she felt offended. Joy believed that Abby should
have talked to her first and not bring the issue to her boss. Joy’s reaction reached Abby through her
boss.
During the discussion, Joy told Abby that she should have clarified matters with her only as the
problem can still be threshed out at their level. Abby explained that as it is their practice, she also
sent an email to her to inform her what happened but at the same time she also told her manager
about it. She said that it is common practice in their team to let their boss know whatever work-
related problems they have so that he will be able to address and solve them together with his US
counterpart.
According to Abby, her decision to tell her boss was perceived by Joy as kind of complaining. Abby’s
understanding is that it seems that in the US, employees do not usually escalate problems to their
boss as they settle the matter by themselves first. But in their office, she said that the norm is to
inform the managers because it is their job to solve problems within the team. Abby said that it was never her intention to put Joy in a bad light. She was just concerned with the production deadline so
she deemed it necessary to inform her boss which she didn’t know would bring the matter to his US
counterpart in the first place. She also believed that what she did was nothing unusual as it was for
her the normal thing to do.
Because of this incident, Abby realized how culture can serve as a major barrier in effective
communication. To better understand what happened, she also checked a tool in their office called
culture calculator. Based on the tool, Abby learned how different cultures work. She found that
Americans are egalitarian at work while Filipinos are hierarchical. The different ways of working
based on one’s culture explains the behaviour of both Joy and Abby. Moreover, Abby also realized
that sometimes email is not enough to fully convey one’s message as there are no emotions to it.
She said that when she finally had a teleconference with Joy, everything was settled as their face-to-
face interaction cleared her of any ill motive. According to Abby, her sincerity as shown in her facial
expression and her manner of speaking were keys to being able to fully impart her intentions. Lastly,
since then, whenever she tells her boss of any issue or concern at the office, she would ask him not
to tell his US counterpart for the meantime. *This case is based on actual events, but the institution’s
name and some of its characteristics have been changed.

Discussion Questions
1) Was Abby right in informing her immediate boss about the problem she had?
2) In this case, how does culture affect the reaction of both Abby and Joy?
3) How do communication technologies affect behaviour?
4) What is the role of communication in ensuring smooth interpersonal relations at work?
5) Cultural differences in communication is difficult to deal with in a global organisation. What
should organisations do to lessen if not avoid conflict that will arise from it?