Moon Star Company obtained two notes receivable during the year of 2019. The details of the notes are as follows:

October 3, 2019 Sold goods for $24,000 on account to a customer (Sun Company) and received 8% note. The note was due on October 18, 2019.

December 5, 2019 Received 13% note for $15,000 to replace account receivable from a customer (Strong Company). The note was due on January 5, 2020.

Instructions (35 points):

a. Compute maturity value of the note receivable received on October 3 (Show supporting calculations.)

b. Journalize the collection of the note which was due on October 18, 2019.

c. Journalize the adjusting entry at December 31, 2019 to record accrued interest.

d. Compute total interest revenue earned on the note receivable received on December 5, 2019 (Show supporting calculations.)

e. Journalize the collection of the note which was due on January 5, 2020.

Exercise 23-3 The income statement of Sheridan Company is shown below.

SHERIDAN COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,630,000Cost of goods sold Beginning inventory $1,840,000Purchases 4,520,000 Goods available for sale 6,360,000 Ending inventory 1,530,000 Cost of goods sold 4,830,000 Gross profit 1,800,000 Operating expenses Selling expenses 450,000 Administrative expenses 660,000 1,110,000 Net income $690,000 Additional information:

1. Accounts receivable decreased $290,000 during the year.

2. Prepaid expenses increased $180,000 during the year.

3. Accounts payable to suppliers of merchandise decreased $260,000 during the year.

4. Accrued expenses payable decreased $120,000 during the year.

5. Administrative expenses include depreciation expense of $60,000.

Prepare the operating activities section of the statement of cash flows for the year ended December 31, 2017, for Sheridan Company, using the indirect method.

Globalization and Sources of Equity Financing

Please respond to the following:

From the e-Activity, discuss how the company you selected might benefit from selling new customers on e-Bay (as opposed to building and maintaining its own Website).

Referring to the same company, determine the best source of equity capital available to the company you selected. Explain your rationale.

1. For the stem-and-leaf plot below,

A) 10, 21, 27, 34, 49a) Find the five-number summary (Circle the correct answer)

      B) 10, 21.5, 28, 35, 49

      C) 10, 21, 27, 35, 49

      D) 10, 21.5, 28, 36, 49                        

b) Find the interquartile range (IQR) (Circle the correct answer)

       A) 13 B) 13.5 C) 14 D) 14.5

c) What are the smallest and largest values that would not be considered an outlier? (Circle the correct answer)

       A) 15 and 90 B) 10 and 49 C) 16 and 49 D) There are no outliers

S&L Financial buys and sells securities expecting to earn profits on short-term differences in price. On December 27, 2016, S&L purchased Coca-Cola common shares for $805,000 and sold the shares on January 3, 2017, for $809,000. At December 31, the shares had a fair value of $800,500. These securities were classified as Trading Securities.

On December 27, 2016, S&L purchased Coca-Cola common shares for $730,000 and sold the shares on January 3, 2017, for $733,000.

At December 31, the shares had a fair value of $728,000. These securities were classified as Available-for-Sale securities. What amount should S&L include in its 2016 and 2017 earnings as a result of this investment?

Question No 1:

(A). Sohar Company is doing manufacturing business in Oman. Recently, it started spending funds to acquire modern technology which will improve the quality of products that leads to increase its sales. This development will positively influence the investors and help to maximize the market value of company shares.

Requirement:
(i) Which objective of Financial Management will be achieved by Sohar Company by above development?
(ii) Explain any two arguments in favor of such objective.                                      


(B ) Agency is a branch of economics relating to the behavior of principals (such as owners)
       and their agents ( such as managers).
      Why do conflicts arise between owners and managers in companies and what will be its
      effect on the interests of management? Explain.                                                 


(C) At present the collection management of receivables of ABC Company is very weak.
       The company wants to improve it and needs your help.
        What are the suggestions do you give to improve the collection management
         of ABC Company especially in the following areas?                                     
         (i) Delay in collection of receivables         (ii) Delay in sending invoices to customers
         (iii) Customers complaints on products     (iv) Lack of training for staff

A local family business is facing a decision. Constantine’s Grocery has been a landmark company in a small city in the USA. Over the past 60 years, what began as a single fresh fruit and vegetable store became a full service grocery store chain with many stores throughout the city. Constantine is incorporated with only 6 shareholders, all family members. The decision it is facing is how to raise much needed capital to maintain its current business operations and to allow the possibility of growth in the future. The family believes it needs an additional $135 million dollars. This sum is too large for a bank line of credit and no one in the family has additional funding to invest into the company.

The family is considering other alternatives. One alternative is to publicly issue debt (corporate bonds), the other alternative is to issue common stock to the public.

In this paper,

1-describe the process (in detail) of how a public offering occurs. A chronological account of how most public offerings would be an appropriate format, although not required.

2- discuss the impact and implications of each alternative. How does each alternative affect control over the company?

3- As a small family business, the internal affairs and finances of the company were well guarded from the public view by the family. How does this change?

4- What are the financial reporting effects of this decision?

5- How will additional debt impact future earnings?

6- How will new stockholders change the management of the company?

Superior papers will explain the following elements:

1-Provide a narrative about the impact of issuing stock to the public. The narrative will include the topics of loss of control of the company and the requirements that future financial statements will be available to the public.

2-Provide a narrative about the impact of issuing debt to the public. The narrative will include the topics of potential loss of the company if debt covenants are breached and the requirements that future financial statements will be available to the public.

3- Provide a narrative on the initial public offering (IPO) process using at least four research sources outside the textbook material. The narrative of the IPO process steps should include the (a) role of investment banker, (b) deal negotiation, ( c) preparation and submission to the SEC of the registration statement, (d) SEC approval, ( e) setting an issue date, and (f) setting an issue price.

Emery Pharmaceutical uses an unstable chemical compound that must be

kept in an environment where both temperature and humidity can be controlled.

Emery uses 200 pounds per month of the chemical, estimates the holding cost to be

£3.33 (because of spoilage), and estimates order costs to be £10 per order. The cost

schedules of two suppliers are as follows:

Vendor 1 Vendor 2 Quantity Price/LB (£) Quantity Price/LB (£) 1-49 35.00 1-74 34.75 50-74 34.75 75-149 34.00 75-149 33.55 150-299 32.80 150-299 32.35 300-499 31.60 300-499 31.15 500+ 30.50

500+ 30.75

Vendor 3 Vendor 4 Quantity Price/LB (£) Quantity Price/LB (£) 1-99 34.50 1-199 34.25 100-199 33.75 200-399 33.00 200-399 32.50 400+ 31.00

400+ 31.10

a) What quantity should be ordered, and which supplier should be used?

b) Discuss factor(s) should be considered besides total cost.

Please with explanations