companies use a perpetual inventory system. (Currency in Central African CFA franc, FCFA) (30%)
Instructions:
In: Accounting
The following information is available for a corporation:
January 1st, 2020 Shares outstanding: 1,250,000
April 1, 2020 Shares Issued: 200,000
July 1, 2020 Purchased Treasury Stock 75,000
October 1, 2020 Issued a 2 for 1 stock split
The number of shares to be used in computing earnings per common share for 2020 is
A) 2,737,500
B) 2,825,500
C) 2,725,000
D) 1,706,250
In: Accounting
Discuss Acquired Immune Deficiency Syndrome
In: Anatomy and Physiology
At December 31, 2015, Layla’s Design Company received legal advice from an outside advisor that it was 75% probable that the company would be found liable in a lawsuit related to fabric used in a spring 2014 dress collection. A range of damages in the amount of $250,000 to $300,000 was equally likely. Under U.S. GAAP, should Layla’s Design Company recognize a provision for damages? If so, please record the journal entry below.
________________________________ $
_________________________________ $
Description of the journal entry:__________________________________________________________
Would your answer be different under IFRS? YES NO (circle one)
If yes, what would be the journal entry?
________________________________ $
_________________________________ $
Please explain how a decline in probability from 75% to 60% would make a difference in your analysis. _________________________________________________________________________________________ _____________________________________________________________________________________
In: Accounting
Ben Apple is employed at Bakers Biscuits CC which has a financial year end of 30th June every year. The following information relates to Ben’s 2022 year of assessment: Taxable income from employment N$355 000 Income from sales of the woodwork – April 2016 N$50 000 Retirement annuity fund contributions, N$55 0000 Bakers Biscuits CC had a taxable income of N$560 000 in 2020 and N$590 000 in 2021. The entity foresees that taxable income will grow by 20% during the 2022 year of assessment. The entity acquired new manufacturing equipment worth N$900 000 in December 2021. This acquisition was not accounted for in the taxable income prediction. No other significant transactions took place during the year of assessment. Required: Carefully consider the options below and choose the correct option.
1. The amount to be deducted as PAYE from Ben Apple’s salary for the 2022 year of assessment is:
a. N$63 200 once per annum
b. N$53 200 once per annum
c. N$49 170 once per annum
d. None of the above
2. The 1st provisional tax payment if he wants to pay the minimum amount and avoid any penalties and interest, will be:
a. Payable on 31 August 2021 and will be N$29 200
b. Payable on 30 September 2021 and will be N$36 500
c. Payable on 31 August 2021 and will be zero
d. None of the above
3. The 3rd final top-up payment, if he paid N$1 000 as a 1st and N$2 000 as a 2nd provisional tax payment, will be:
a. N$6 800
b. N$14 000
c. N$11 000
d. None of the above
4. Mr. Ben’s tax return with the final top-up payment is due on:
a. 31 August 2022
b. 30 September 2022
c. 28 February 2022
d. None of the above
5. The taxable income for Bakers Biscuits CC for the 2022 year of assessment will be:
a. N$408 000
b. N$708 000
c. N$558 000
d. None of the above
6. The payment dates for provisional tax for Bakers Biscuits CC for the 2022 year of assessment will be:
a. 31 December 2020, 30 June 2021, and 31 January 2022
b. 30 August 2020, 28 February 2021, and 30 September 2022
c. 31 December 2020, 30 June 2021, and 30 January 2022
d. None of the above
In: Finance
You are the in-house counsel for a small bank (the “Bank”) located in Northwest Colorado. The Bank has three locations: Steamboat Springs, Hayden and Craig. The Bank offers a broad range of banking services, such as making personal and commercial loans and offering various types of savings and checking accounts. The vast majority of the Bank’s customers live in Routt, Moffat and Rio Blanco Counties. The Bank has a reputation as being a friendly, small town bank that knows its customers by name. The Bank sponsors and helps organize many local community activities. The Bank is a publicly traded company. During the past several years, the price of the Bank’s stock has fallen at alarming rates. This is mainly due to decreased profits. Many of the Bank’s customers work for the coal, oil and gas industries, and with recent regulations and falling energy prices, many have lost their jobs and cannot afford to use the Bank’s services to buy cars, real estate or start businesses that require loans. Shareholders are losing faith in the Bank, and because of the mass of selling of its stock, its price has fallen by 50% in the past three years. Major shareholders are demanding that the Bank take initiative immediately to generate more revenue. The CEO of the Bank wants your advice on whether the Bank should get into the business of subprime lending. That is, relax its own lending standards to allow customers with poor credit to obtain a loan by putting as little as 3% down. Currently, the Bank requires a down payment of at least 15%, and only lends to customers with good or great credit scores. The CEO thinks that subprime lending will immediately generate additional revenue without adding to the Bank’s risk. Once the Bank makes the loan, it will sell the promissory note and deed of trust or security agreement to another financial institution for less than the total repayment amount, but more than the original amount. For example, if the Bank lends its customer $200,000 to buy a house, and the total repayment owed including interest is $350,000, the Bank could sell the debt for $250,000 and make a $50,000 profit in a short period of time. The customer would then make payments to the company that bought the debt from the Bank. The CEO says that the practice of relaxing its lending standards will allow local residents who are short on money to obtain loans to buy homes or start businesses. Please write a memorandum to the CEO counseling her on whether the Bank should, in your opinion, relax its lending standards and get into the business of subprime lending. Make sure to support your opinion with evidence such as laws that apply, historical examples, etcetera. You may use the information you learned in class, but you will also have to conduct your own research via the internet. As the attorney for Bank, you may provide both legal advice and practical advice.
Factors you should discuss include: What, if any, legal implications are there? (For example, are subprime loans allowed? Are there any laws that govern subprime loans?) What, if any, financial implications are there? (What are the possible good and bad things that could happen to the finances of the customers, the Bank, the Bank’s shareholders, and the economy in general?) What, if any, ethical implications are there? (For example, should the Bank be responsible for the higher risk that the customers will not be able to repay the loan? How should the Bank balance its own interest in making a profit versus protecting customers from risky loans?) Are there any other issues you think the CEO should know about before making a decision? If the Bank starts offering subprime loans, what precautions should it take in order to minimize the risks you think are greatest?
In: Finance
Agree/Disagree and Why?
Question: Describe and discuss the role of planning in the business use of information technology, using the scenario approach, and planning for competitive advantage as examples. In addition, Hash out the role of planning and business models in the development of business/IT strategies, architectures, and applications. Identify several change management solutions for end-user resistance to the implementation of new IT-based business strategies and applications.
Answer: In order to use information technology well, and implement it in a cohesive and effective way requires more than just knowing its importance of it. There needs to be a creation and implementation on an action plan. There are six components to an organization planning process. 1- Team building, modeling, and consensus 2- Evaluating what an organization has accomplished and the resources they have acquired 3- Analyzing the business, economic, political, and societal environments 4- Anticipating and evaluating the impact of future developments 5- Building a shared vision and deciding on what goals they want to achieve 6- Deciding which actions to take to achieve their goals The result of these 6 components results in the planning process, which is then followed by the implementation process. There are different types of planning processes. One of them is the Scenario approach in which is known for making planning easier, more accurate, and more relevant to the real world. This is actually an approach my company takes as we create potential scenarios and play out different ways to resolve it and find the best action course. Planning for competitive advantage is very important within business/IT planning. It involves looking at the potential risks and benefits the company might encounter when using IT strategies and technologies. The role of the business models and planning are to answer specific questions that revolve around how a business will deliver value to its target customers and at what cost. It is very important as it focuses on all the important components of a business and how they fit within the whole system. In order to actually utilize the internet in a competitive advantageous way the company needs to be able to have a strategic framework and continue to access the strategic value it has, by looking into the following different aspects, cost and efficiency improvements, Performance improvement in business efficiency, global market penetration, and Product and service transformation. Some solutions for end-user resistance that can be implemented to assist in the transition are as follows. Involve as many people as possible in e-business planning and application development, Make constant change an expected part of the culture, tell everyone as much as possible about everything as often as possible, preferably in person, make liberal use of financial incentives and recognition, work within the company culture and not around it. O’Brien, James. (2011). Management Information Systems. 10th Edition. The McGraw=Hill Companies, Inc. New York Schoemaker, P. (1995, January 15). Scenario Planning: A Tool for Strategic Thinking. Retrieved October 4, 2020, from https://sloanreview.mit.edu/article/scenario-planning-a-tool-for-strategic-thinking/ Ali, Rami. (2020.May14). Scenario Planning: Strategy, Steps and Practical Examples. Brainyard. https://www.netsuite.com/portal/business-benchmark-brainyard/industries/articles/cfo-central/scenario-planning.shtml
In: Computer Science
On August 1, Rantoul Stores Inc. is considering leasing a building and purchasing the necessary equipment to operate a retail store. Alternatively, the company could use the funds to invest in $152,000 of 7% U.S. Treasury bonds that mature in 16 years. The bonds could be purchased at face value. The following data have been assembled:
| Cost of store equipment | $152,000 |
| Life of store equipment | 16 years |
| Estimated residual value of store equipment | $12,800 |
| Yearly costs to operate the store, excluding depreciation of store equipment | $60,120 |
| Yearly expected revenues—years 1–8 | $86,000 |
| Yearly expected revenues—years 9–16 | $72,700 |
| Required: | ||||||||||||||||||||||||||||||||||||||||||
| 1. | Prepare a differential analysis as of August 1 presenting the proposed operation of the store for the 16 years (Alternative 1) as compared with investing in U.S. Treasury bonds (Alternative 2). Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required. | |||||||||||||||||||||||||||||||||||||||||
| 2. | Based on the results disclosed by the differential analysis, should the proposal be accepted? | |||||||||||||||||||||||||||||||||||||||||
| 3. |
3. If the proposal is accepted, what would be the total estimated income from operations of the store for the 16 years? Lexigraphic Printing Company is considering replacing a machine that has been used in its factory for four years. Relevant data associated with the operations of the old machine and the new machine, neither of which has any estimated residual value, are as follows:
Annual non-manufacturing operating expenses and revenue are not expected to be affected by purchase of the new machine.
Prepare a differential analysis as of April 30 comparing operations using the present machine (Alternative 1) with operations using the new machine (Alternative 2). The analysis should indicate the total differential income that would result over the six-year period if the new machine is acquired. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. For those boxes in which you must enter subtracted or negative numbers use a minus sign. If there is no amount or an amount is zero, enter "0". A colon (:) will automatically appear if required.
|
In: Accounting
On January 1, 2018, M Company granted 95,000 stock options to
certain executives. The options are exercisable no sooner than
December 31, 2020, and expire on January 1, 2024. Each option can
be exercised to acquire one share of $1 par common stock for $10.
An option-pricing model estimates the fair value of the options to
be $4 on the date of grant.
If unexpected turnover in 2019 caused the company to estimate that
15% of the options would be forfeited, what amount should M
recognize as compensation expense for 2019?
In: Accounting
On July 2020, Sotoma Pty Ltd noticed that a number of its employees have been with the company for a number of years including some who have actually been working for more than 10 years. The company has always provided annual leave and sick leave to its employees. However, our accounting team is not sure whether these employees are entitled to any other employee benefits. It would be much appreciated if you could give the accounting team some clarification on this matter and how to deal with this in our accounts.
In: Accounting