The following information is available for Gildan Activewear Inc., headquartered in Montreal, for three recent fiscal years (in U.S. $ thousands):

Calculate the inventory turnover, days in inventory, and gross profit margin for 2016 and 2015. (Round inventory turnover and gross profit margin ratio to 1 decimal place, e.g. 15.2. Round days in inventory to nearest day. Use 365 days for calculation.)

Based on the ratios calculated in part (a), did Gildan’s liquidity and profitability improve or deteriorate in 2016?

Mower-Blower Sales Co. started business on January 20, 2016. Products sold were snow blowers and lawn mowers. Each product sold for $1,400. Purchases during 2016 were as follows:

The December 31, 2016, inventory included 10 blowers and 25 mowers. Assume the company uses a periodic inventory system.

Required:

a-1. Compute ending inventory valuation at December 31, 2016, under the FIFO and LIFO cost flow assumptions.
a-2. Is there any difference in valuation under FIFO and LIFO.
b. If the cost of mowers had increased to $960 each by December 1, and if management had purchased 30 mowers at that time and if it wants to minimize taxes, which cost flow assumption was probably being used by the firm?

A company has the following investment activity during 2016 and 2017:

Security E is impaired in 2017, but is not impaired in 2016. Security F is not impaired in 2017.

Required

a. Prepare the journal entries to record the above information for 2016 and 2017, assuming the company’s

reporting year ends December 31.

b. Show how this information is presented in the company’s balance sheet, income statement, and

statement of comprehensive income for 2016 and 2017.

Tulip Co acquired 80% of the share capital of Daffodil Co on 1 June 2015. The summarised draft statements of profit or loss for Tulip Co and Daffodil Co for the year ended 31 May 2016 are shown below:

During the year Tulip Co sold goods costing €1,000,000 to Daffodil Co for €1,500,000. At 31 May 2016, 30% of these goods remained in Daffodil Co’s inventory.

Required:

Prepare the Tulip group consolidated statement of profit or loss for the year ended 31 May 2016 by writing the appropriate numbers in the blanks.

TULIP GROUP CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 MAY 2016

The following details are for questions 16–20. Each individual question will appear below the details. Caterpillar Inc (CAT) has the following excerpts from their financial statements: CAT Financial Statements Item December 31, 2016 December 31, 2015 December 31, 2014 Inventory (in $ Millions) 9,615 9,700 12,205 Net Income (in $ Millions) (67) 2,512 2,452 Inventories are stated at the lower of cost or market. Cost is principally determined using the last-in, first-out (LIFO) method. The value of inventories on the LIFO basis represented about 60 percent of total inventories at December 31, 2016 and 2015. If the FIFO (first-in, first-out) method had been in use, inventories would have been $1,639 million and $2,498 million higher than reported at December 31, 2016 and 2015, respectively. Assume a corporate tax rate of 35%. Question If CAT had used FIFO method instead of LIFO method...

The amount that would be added to CAT’s retained earnings at December 31, 2016, (rounded to the nearest million) is: Group of answer choices $1,390 Million $1,065 Million No change in retained earnings $749 Million

B. indicate how deferred income taxes will be reported on the statement of financial position at the end of 2016

Question 2                                                                                                                  [15 marks]

Phoenix Photography Company experienced a sharp decrease in Net Income during the year 2016. Madea Perry, the owner of the company, anticipates a need for a Bank loan in the year 2017. Late in 2016, Perry instructed Reunion Mann, the accountant, and friend of his to record a R10, 000 sale of portraits to the Perry family even though the photos will not be shot until January 2017. Perry told Reunion not to make the following December 31 2016 adjusting entries

Salaries owed to employees R 20000

Prepaid insurance that has expired 2000

Required:

1. Compute the overall effect of these transactions on the company’s reported income for 2016. Is the reported net income overstated or understated.

2. Why did Madea take these actions? Are they ethical? Give your reason, identifying the parties that benefitted and those that were harmed by Madea’s actions.

Use the ethical decision making model which factor (economic, legal or ethical) seems to be taking precedence? Identify the stakeholders and potential consequences to each.

3) As a personal friend of Perry’s, what advice would you give to him?

The Economist collects data each year on the price of a Big Mac in various countries around the world. A sample of McDonald's restaurants in Europe in July 2016 resulted in the following Big Mac prices (after conversion to U.S. dollars).

The mean price of a Big Mac in the U.S. in July 2016 was $5.04. For purposes of this exercise, you can assume it is reasonable to regard the sample as representative of European McDonald's restaurants. Does the sample provide convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price? Test the relevant hypotheses using

α = 0.05.

(Hint: See Example 12.12.)

Find the test statistic and P-value. (Use a table or technology. Round your test statistic to one decimal place and your P-value to three decimal places.)

t=  

P-value = 0.000

State the conclusion in the problem context.

We reject H₀. We have convincing evidence that the mean July 2016 price of a Big Mac in Europe is less than the reported U.S. price.

Assume that on April 1, 2016?, Pacific?, Corp., issues 7 percent, 10-year bonds payable with a maturity value of $100,000.

The bonds pay interest on March31 and September 30?, and Pacific amortizes any premium or discount by the? straight-line method. Pacific?'s fiscal? year-end is December 31.

hey guys, I have a trouble with the above question, could you please helping me with this one?

Thanks!