For its first year if operations, Altitude Inc. reports pretax GAAP income of $100,000 in 2020. Assume pretax income in 2021 and 2022 of $125,000 and $90,000 respectively. The enacted income tax rate in all years is 25%. The following additional information is available for the first three years of operation (with the exception of the one item in the 4th year).

• Prepaid rent in the amount of $20,000 was recorded on December 21, 2020 for 2021 rent.
• A warranty accrual of 30,000 was recorded on December 31, 2020. The warranty was paid evenly over the years 2021-2023.
• The company recorded interest revenue of $500 each of the three years on municipal bonds.

1. Compute the income tax payable each year for 2020, 2021, 2022
2. Determined the balance of any deferred tax assets or deferred tax liabilities at the end of each year (2020, 2021, 2022)
3. Record the journal entry related to taxes in 2020, 2021, 20222

For its first year of operations, Altitude Inc. reports pretax GAAp income of 100,000 in 2020. Assume pretax GAAP income in 2021 and 2022 of 125,000 and 90,000, respectively. The enacted income tax rate in all years is 25%. The following additional information is available for the first three years of operation (with the exception of the one item in the 4th year): Prepaid rent in the amount of 20,000 was recored on December 31, 2020 for 2021 rent. A warranty accrual of 30,000 was recorded on December 31, 2020. The warranty was paid evenly over the years 2021-2023. The company recorded interest revenue of 500 each of three years on municipal bonds.

1. Compute the income tax payable each year for 2020, 2021, and 2022

2. Determined the balance of any Deferred Tax Assets or Deferred Tax Liabilities at the end of each year (2020, 2021, 2022)

3. Record the journal entries related to taxes in 2020, 2021, 2022

C programming:

Assume you have the following spreadsheet as example.csv. This .csv file can have more than 1000 lines of data.

Read the spreadsheet which is example.csv file in your new c program and then sort the above data by latitude in ascending order. Use bubble or insertion sort and time it. Please do not hard code anything, especially do not hard code .csv file.

Desrosiers Ltd. had the following long-term receivable account balances at December 31, 2019:

Notes receivable    $1,800,000

Notes receivable—Employees 400,000

Transactions during 2020 and other information relating to Desrosiers' long-term receivables were as follows:

1. The $1.8-million note receivable is dated May 1, 2019, bears interest at 9%, and represents the balance of the consideration received from the sale of Desrosiers's electronics division to New York Company. Principal payments of $600,000 plus appropriate interest are due on May 1, 2020, 2021, and 2022. The first principal and interest payment was made on May 1, 2020. Collection of the note instalments is reasonably assured.

2. The $400,000 note receivable is dated December 31, 2019, bears interest at 8%, and is due on December 31, 2022. The note is due from Marcia Cumby, president of Desrosiers Ltd., and is secured by 10,000 Desrosiers common shares. Interest is payable annually on December 31, and the interest payment was made on December 31, 2020. The quoted market price of Desrosiers's common shares was $45 per share on December 31, 2020.

3. On April 1, 2020, Desrosiers sold a patent to Pinot Company in exchange for a $200,000 non–interest bearing note due on April 1, 2022. There was no established exchange price for the patent, and the note had no ready market. The prevailing rate of interest for a note of this type at April 1, 2020, was 12%. The present value of $1 for two periods at 12% is 0.79719 (use this factor). The patent had a carrying amount of $40,000 at January 1, 2020, and the amortization for the year ended December 31, 2020 would have been $8,000. The collection of the note receivable from Pinot is reasonably assured.

4. On July 1, 2020, Desrosiers sold a parcel of land to Four Winds Inc. for $200,000 under an instalment sale contract. Four Winds made a $60,000 cash down payment on July 1, 2020, and signed a four year, 11% note for the $140,000 balance. The equal annual payments of principal and interest on the note will be $45,125, payable on July 1, 2021, through July 1, 2024. The land could have been sold at an established cash price of $200,000. Desrosiers had paid $150,000 for the land when it purchased it. Collection of the instalments on the note is reasonably assured.

5. On August 1, 2020, Desrosiers agreed to allow its customer, Saini Inc., to substitute a six-month note for accounts receivable of $200,000 it owed. The note bears interest at 6% and principal and interest are due on the note's maturity date.

Instructions

a. For each note:

1. Describe the relevant cash flows in terms of amount and timing.

2. Determine the amount of interest income that should be reported in 2020.

3. Determine the portion of the note and any interest that should be reported in current assets at December 31, 2020.

4. Determine the portion of the note that should be reported as a long-term investment at December 31, 2020.

b. Prepare the long-term receivables section of Desrosiers's SFP at December 31, 2020.

c. Prepare a schedule showing the current portion of the long-term receivables and accrued interest receivable that would appear in Desrosiers's SFP at December 31, 2020.

d. Determine the total interest income from the long-term receivables that would appear on Desrosiers's income statement for the year ended December 31, 2020.

MINI CASE: Jen and Larrys Frozen Yogurt Company (Revisited) In…

MINI CASE: Jen and Larry’s Frozen Yogurt Company (Revisited)

In 2010, Jennifer (Jen) Liu and Larry Mestas founded Jen and Larry’s Frozen Yogurt Company, which was based on the idea of applying the microbrew or microbatch strategy to the production and sale of frozen yogurt. Jen and Larry began producing small quantities of unique flavors and blends in limited editions. Revenues were $600,000 in 2010 and were estimated at $1.2 million in 2011.

Because Jen and Larry were selling premium frozen yogurt containing premium ingredients, each small cup of yogurt sold for $3, and the cost of producing the frozen yogurt averaged $1.50 per cup. Administrative expenses, including Jen and Larry’s salaries and expenses for an accountant and two other administrative staff, were estimated at $180,000 in 2011. Marketing expenses, largely in the form of behind-the-counter workers, in-store posters, and advertising in local newspapers, were projected to be $200,000 in 2011.

An investment in bricks and mortar was necessary to make and sell the yogurt. Initial specialty equipment and the renovation of an old warehouse building in lower downtown (known as LoDo) of $450,000 occurred at the beginning of 2010 along with $50,000 being invested in inventories. An additional equipment investment of $100,000 was estimated to be needed at the beginning of 2011 to make the amount of yogurt forecasted to be sold in 2011. Depreciation expenses were expected to be $50,000 in 2011, and interest expenses were estimated at $15,000. The tax rate was expected to be 25 percent of taxable income.

A. How much net profit, before any financing costs, is the venture expected to earn in 2011? What would be the net profit if sales reach $1.5 million? What would be the net profit if sales are only $800,000?

B. If inventories are expected to turn over ten times a year (based on cost of goods sold), what will be the venture’s average inventories balance next year if sales are $1.2 million? How much might the venture be able to borrow if a lender typically lends an amount equal to 50 percent of the average inventories balance? If the borrowing rate is 12 percent, how much dollar amount of interest would have to be paid on the loan?

C. How might the venture acquire and finance the new equipment that is needed?

D. Identify potential government credit resources for the venture.

E. Prepare a summary of the benefits and risks of Jen and Larry’s continued use of credit card financing.

F. Prepare a summary of how the venture might benefit from receivables financing if commercial customers are extended credit for thirty days on their purchases.

G. Discuss the impact of potential loan restrictions should the venture seek commercial loan financing.

H. Comment on how the venture might be evaluated in terms of the five Cs of credit analysis.

Question 1: Construct the balance of payment table for Japan for the year 2010 which is comparable in format to Exhibit 3.1, page 66 (this page number from the version 6e, if you cannot find it, please let me know), to calculate the missing information data (Services; balance current account; balance on financial account; Statistical discrepancies). The table is provided on the second page. Please show your clearly calculation and explanation to support each number.

A summary of the Japanese Balance of Payments for 2000 (in $ billion)

Question 2 : 1. Explain the following terms on the table

a] Merchandise trade

b] Trade balance

c] Service

d] Invisible trade

e] Factor income

f] Unilateral transfers

Jaime’s home was completely destroyed by flooding in 2016. He purchased the home in 2010 for $175,000 including $50,000 allocated for the land. a. What is Jaime’s loss (assuming he had no insurance)? b. If Jaime’s adjusted gross income is $80,000, what is his deductible loss? c. Assume Jaime had insurance and received $160,000 in insurance proceeds to rebuild his home. What is his realized gain or loss? d. What is the recognized gain or loss if he elects to build a smaller home and only uses $120,000 of the insurance proceeds to build the replacement home?

Would C. and D. be a gain or loss?

The following table shows a portion of the monthly returns data (in percent) for 2010–2016 for two of Vanguard’s mutual funds: the Vanguard Energy Fund and the Vanguard Healthcare Fund. [You may find it useful to reference the t table.]

a. Calculate the sample correlation coefficient r_xy. (Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)
b. Specify the competing hypotheses in order to determine whether the population correlation coefficient is different from zero.

• H₀: ρ_xy ≤ 0; H_A: ρ_xy > 0

• H₀: ρ_xy ≥ 0; H_A: ρ_xy < 0

• H₀: ρ_xy = 0; H_A: ρ_xy ≠ 0

c-1. Calculate the value of the test statistic. (Round intermediate calculations to at least 4 decimal places and final answer to 2 decimal places.)

c-2. Find the p-value.

• p-value < 0.01

• 0.01 ≤ p-value < 0.02

• 0.02 ≤ p-value < 0.05

• 0.05 ≤ p-value < 0.10

• p-value ≥ 0.10

c-3. At the 5% significance level, what is the conclusion to the test?

• Reject H₀; there is enough evidence to state the returns are correlated.

• Reject H₀; there is not enough evidence to state the returns are correlated.

• Do not reject H₀; there is enough evidence to state the returns are correlated.

• Do not reject H₀; there is not enough evidence to state the returns are correlated.

If 800 million liters of oil were released into the Gulf of Mexico during the 2010 Deepwater Horizon oil spill. If the oil from this oil spill formed a film on the ocean surface that was one molecule thick, how much area would it cover? Warning: estimates required.(Answer:10^9 km^2)

On January 1, 2010 Ryan Corporation issued bonds with a face value of $5,000,000 and a coupon rate of 5% for $4,670,865. The effective rate on the bonds is 6%. The bonds pay interest each January 1 and July 1 and mature on July 1, 2018.
The company uses effective rate amortization method.
6. The journal entry (and amount) to recognize the interest expense on December 31, 2010 would be:
a. Debit Interest Expense [$140,126]; Credit Bonds Payable [$15,126]; Credit Cash [$125,000].
b. Debit Interest Expense [$140,580]; Credit Bonds Payable [$15,580]; Credit Interest Payable [$125,000].
c. Debit Interest Expense [$150,000]; Credit Bonds Payable [$25,000]; Interest Payable [$125,000].
d. Debit Interest Expense [$140,126]; Credit Cash [$125,000]; Credit Bonds Payable [$15,126].
e. None of the above but: .
7. On December 31, 2011, the total amount for bonds payable reported by Ryan on its Balance sheet would be:
a. Long-term Liability: Bonds Payable [$5,000,000].
b. Long-term Liability: Bonds Payable [$4,734,147].
c. Long-term Liability: Bonds Payable [$4,717,618].
d. Long-term Liability: Bonds Payable [$4,751,171].
e. None of the above but: $ .