Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:

The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Required:

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)

Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:

The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Required:

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.)

Middle East Uber rival Careem says data of 14 million drivers and riders stolen in cyberattack

Careem, the Middle East rival to Uber, had the data of its 14 million customers and drivers stolen in a cyberattack, the company said on Monday.

The start-up became aware of the incident on January 14.

Careem has operations in 13 countries and in over 90 cities.

Careem, the Middle East rival to Uber, had the data of its 14 million customers and drivers stolen in a cyberattack, the company said Monday.

The start-up became aware of the incident on January 14. It said people who signed up to the platform after that date were not affected. Careem said since the incident, it has been investigating what happened and is working with law enforcement agencies.

"Careem has identified a cyber incident involving unauthorized access to the system we use to store data. While we have seen no evidence of fraud or misuse related to this incident, it is our responsibility to be open and honest with you, and to reaffirm our commitment to protecting your privacy and data," the ride hailing service said in an email to customers.

The company urged drivers and customers to update their passwords, look out for any unsolicited communication, avoid clicking links or downloading attachments from unfamiliar emails, and review bank account statements for any suspicious activity.

Careem has operations in 13 countries and in over 90 cities.

how does this effect the international business?

Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:

The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows:

Required:

Compute the activity rate for each of the activity cost pools. (Round your answers to 2 decimal places.

When the equity method of accounting for investments is used by the investor, the investment account is increased when: 

A cash dividend is received from the investee.
       The investee reports a net income for the year.
       The investor records additional depreciation related to the investment.
       The investee reports a net loss for the year.
Assume that, on 1/1/06, Matsui Co. paid $1,200,000 for its investment in 60,000 shares of Yankee Inc. Further, assume that Yankee has 200,000 total shares of stock issued. The book value and fair value of Yankee's identifiable net assets were both $4,000,000 at 1/1/06. The following information pertains to Yankee during 2006:

• Net Income$200,000
• Dividends declared and paid$60,000
• Market price of common stock on 12/31/06
• $22/share

What amount would Matsui report in its year-end 2006 balance sheet for its investment in Yankee? (Points : 1)         $1,320,000
       $1,260,000
       $1,242,000
       None of the above is correct.

1 1. Use "DOW_Characteristics" data in Chapter1.xlsx to answer the following questions. For questions that require Excel, include the appropriate output (copy + paste) along with an explanation. Data description: The accompanying table shows a portion of the 30 companies that comprise the Dow Jones Industrial Average (DJIA). The second column shows the year that the company joined the DJIA (Year). The third column shows each company’s Morningstar rating (Rating). (Five stars is the best rating that a company can receive, indicating that the company’s stock price is undervalued and thus a very good buy. One star is the worst rating a company can be given, implying that the stock price is overvalued and a bad buy.) Finally, the fourth column shows each company’s stock price as of March 17, 2017 (Price in $).

Questions: a. Are data in the table from a sample or from a population? Explain.

b. Are data in the table time series data or not? Explain

c. What is the measurement scale of the Year data? What are the strengths of this type of data? What are the weaknesses?

d. What is the measurement scale of Morningstar’s star-based rating system? Summarize Morningstar’s star-based rating system for the companies in tabular form. Let 5 denote *****, 4 denote ****, and so on. What information can be extracted from these data?

e. What is the measurement scale of the Stock Price data? What are its strengths?

f. List the qualitative and quantitative variables in the data table.

Treibacher, an Austrian vendor of hard-metal powders, agreed to two contracts with the defendant TDY to sell specified quantities of tantalum carbide (TaC), a hard-metal powder, to TDY Industries, Inc., for delivery to consignment. TDY planned to use the TaC in manufacturing tungsten-graded carbide powders at its plant in Gurney, Alabama. After it had received some of the amount of TaC specified in the November 2000 contract, TDY refused to take delivery of the balance of the TaC specified in both contracts and, in a letter to Treibacher dated August 23, 2001, denied that it had a binding obligation to take delivery of or pay for any TaC that it did not want to use. Unbeknownst to Treibacher, TDY had purchased the TaC it needed from another vendor at lower prices than those specified in its contracts with Treibacher. Treibacher eventually sold the quantities of TaC that TDY had refused to take delivery of, but at lower prices than those specified in its contracts with TDY. Treibacher then filed suit against TDY, seeking to recover the balance of the amount Treibacher would have received if TDY had paid for all of the TaC specified in the November and December 2000 contracts. What is the appropriate remedy here for Treibacher if TDY is in breach? Does this case fall under the CISG or the UCC? Is there any significance to applying the CISG rather than the UCC? [Treibacher Industrie, A.G., Plaintiff-Appellee, v. Allegheny Technologies, Inc., a Pennsylvania Corporation et al., Defendants, TDY Industries, Inc., Defendant-Appellant, 464 F.3d 1235 (11th Cir. 2006); 2006 U.S. App. LEXIS 23252; 19 Fla. L. Weekly Fed. C 1046 (2006).]

Mr. Thompson is a businessman. He started a business five years ago and it has increased in size gradually for its continuous success. Thompson Inc. is a private company and it uses ASPE for preparing its financial statements. It has completed accounting year on December 31, 2017. At the end of 2017, the financial position statement shows that there is huge amount of surplus cash and Thompson has shown interest in investing a part of the surplus amount to the equity securities of Panna Corporation. It is also a growing company in the same industry. The balance sheets of Thompson Inc. and Panna Corporation as on December 31, 2017 with fair values of assets and liabilities of Panna Corporation are presented below:

You, a CPA, CGA, the CFO of Thompson Inc., were asked by Mr. Thompson to give your opinion on the following different situations regarding the –

• Accounting requirements for the following investment proposals; and

• Presentation of Financial statement for each independent investment proposals of Mr. Thompson.

Situations:

1. Suppose Thompson purchased 1,000 shares of Panna Corporation at $ 1,100 on January 1, 2018. Show the journal entry for this transaction in the book of Thompson and present the balance sheet of Thompson Inc. after this investment on January 1, 2018.

2. Suppose Thompson purchased 4,000 shares of Panna Corporation at $ 4,500 on January 1, 2018. These shares are traded in Toronto Stock Exchange. Thompson Inc. gained significant influence over the investee (Panna Corporation) by this investment. Explain to Mr. Thompson what will be the appropriate accounting method for this transaction. Show the journal entry for this transaction in the book of Thompson on January 1, 2018.

Now assume that Thompson Inc. is a publicly traded company. It follows IFRS for the preparation and presentation of its annual financial reports. Based on this assumption, give your opinion on the following different situations regarding the –

• Accounting requirements for the following investment proposals; and

• Presentation of Financial statement for each independent investment proposals of Mr. Thompson.

Situations:

Wholly-Owned Subsidiary

1. Suppose Thompson Inc. purchased all the identifiable assets except cash and goodwill from Panna Corporation and assumed both the current liabilities and long-term liabilities by paying $ 210,000 cash on January 1, 2018.

• Identify the form of business combination and accounting requirements.

• Journal entry/entries required in the book of Thompson Corporation.

• Balance sheet of Thompson Inc. on January 1, 2018 after this purchase.

2. Suppose Thompson Inc. purchased all the outstanding shares of Panna Corporation for $250,000 on January 1, 2018. The amount is paid partly by cash of $125,000 and the rest by issuing 10,000 additional shares at a market value of $12.50 per share. The stock issuance costs amount to $ 5,000. In this situation, you are required to :

• Identify the form of business combination and accounting requirements.

• Journal entry/entries required in the book of Thompson Corporation.

• Consolidated Balance sheet of Thompson Inc. on January 1, 2018 after this purchase.

3. Suppose Thompson Inc. purchased all the outstanding shares of Panna Corporation for $200,000 on January 1, 2013. The amount is paid fully by cash. Legal fees for this purchase amount to $ 5,000. In this situation, you are required to :

• Give Journal entry/entries required in the book of Thompson Corporation.

• Consolidated Prepare Balance sheet of Thompson Inc. on January 1, 2018 after this purchase.

Non-Wholly Owned Subsidiary

4. Suppose, Thompson Inc. purchased 70% of outstanding shares of Panna Corporation for $ 120,000 on January 1, 2018. For non-wholly owned subsidiary, the consolidation of financial statements is a complex system. There will be two groups of shareholders – Controlling and non-controlling. There are many theories for the determination of non-controlling interest (NCI). One acceptable method of consolidating subsidiaries after January 1, 2011, is “Entity Theory”. Under this theory, the full fair value of the subsidiary is determined by combining the fair value of the controlling interest and the fair value of NCI. Another theory for the determination of NCI value is “Parent Company Extension Theory” which is also acceptable method for the valuation of NCI after January 1,2011.Under IFRS, either entity theory or parent company extension theory can be used. It is also stated in IFRS that a gain on a bargain purchase can only be recognized by the acquirer. It means NCI must be measured at its share of fair value of the identifiable net assets. In this situation, you are required to –

• Explain the appropriate theory applicable for NCI valuation.

• Prepare Balance sheet of Thompson Inc. on January 1, 2018 after this purchase.

Accounting Project (Excel)

Students are required to prepare Excel Spreadsheets with tabs for Journal Entries, T Accounts, Trial Balances, and Financial Statements.

Record all transactions and prepare financial statements within the Excel Spreadsheet

Requirements:

1) Using the Balance Sheet information, enter the beginning balances in the T-Accounts.

2) On the following sheet, use the Transaction Information to journalize entries, 1 – 10.

3) Post each entry into the T-Accounts. When finished journalizing, calculate the account balance for each T-Account.

4) Create an Unadjusted Trial Balance.

5) Journalize adjusting journal entries 1 – 4

6) Post Adjusting Journal entries to T-accounts

7) Prepare Adjusted Trial Balance

8) Prepare:

a. Income Statement

b. Statement of Owner’s Equity

c. Balance Sheet

9) Write the four closing entries, post them to the T-Accounts and determine the ending balance for each account.

10) Create the Post Closing Trial Balance from the T-accounts.

Transaction Information

Entry #

1. Supplies are purchased on account for $1,000.

2. One year of insurance is purchased for cash, costing $3,600.

3. Paid rent expense of $2,000 for current month.

4. The receivables from the prior month are collected.

5. The account payables from the prior month are paid.

6. Paid $750 of wage expenses to employees, of which $50 is accrued from the prior month.

7. Received $1,500 from a customer in advance of providing the services.

8. A $450 utility bill for the current month is received. Payment is due next month on the 15th.

9. Services are performed for customers on account. Invoices totaling $5,600 are mailed to the customers.

10. The owner withdrew $750 for personal use.

Additional information for adjusting entries (to be used after unadjusted trial balance is prepared):

1. Supplies on hand at the end of the month are $400.

2. Record one month of insurance expense.

3. Accrue $100 wages

4. The December 31 balance in Unearned Revenue is $1,000

Speedy Delivery Company  

Balance Sheet

November 30, 2017

Assets Liabilities

Cash 7,000 Accounts Payable 290

Accounts Rec 3,000 Wages Payable 50

Supplies 100 Owner’s Equity

Speedy, Capital 9,760

Total Assets 10,100 Total Liab. & O.E. 10,100

A banking executive studying the role of trust in creating customer advocates has determined that 41 % of banking customers have complete​ trust, 45 % of banking customers have moderate​ trust, and 14 % have minimal or no trust in their primary financial institution. Of the banking customers that have complete​ trust, 69 % are very likely to recommend their primary financial​ institution; of the banking customers that have moderate​ trust, 18 % are very likely to recommend their primary financial​ institution; and of the banking customers that have minimal or no​ trust, 3 % are very likely to recommend their primary financial institution. Complete parts​ (a) and​ (b) below. a. Compute the probability that if a customer indicates he or she is very likely to recommend his or her primary financial​ institution, the banking customer also has complete trust.