You are a consultant that is in the last round of proposals to become the sole strategic adviser to the CEO of a top 5 global manufacturer of doors & windows. The firm sells and has a local presence in the 100 top ranked countries by GDP.
You and the other finalists have been asked to address potential Foreign Direct Investment in a non Top 100 GDP country. The CEO is seeking for a new high growth market (even if it comes with some political instability) and is asking you to select it. In your post, please provide your country selection and the primary reason why you selected it. Also briefly address how the organization would mitigate one or two major risks associated with FDI.
In: Finance
You are a consultant that is in the last round of proposals to become the sole strategic adviser to the CEO of a top 5 global manufacturer of doors & windows. The firm sells and has a local presence in the 100 top ranked countries by GDP. You and the other finalists have been asked to address potential Foreign Direct Investment in a non Top 100 GDP country.
The CEO is seeking for a new high growth market (even if it comes with some political instability) and is asking you to select it. In your post, please provide your country selection and the primary reason why you selected it. Also briefly address how the organization would mitigate one or two major risks associated with FDI.
In: Economics
Public corporations are led by CEOs and other upper-echelon leaders who, in turn report to shareholders and board of directors (BODs). Interestingly, even though the board overseas the CEOs, decides on the terms of employment and salaries, and monitors their performance, the CEOs are, more often than not, the people who nominate board members. The justification is that CEOs are well placed to know what type of expertise they need on the board and should have a BOD they can work with. The relationship between BOD and CEO is a complex and interesting one.
What are the potential ethical and conflict of interest issues arising from CEO involvement in the selection of board members?
How can these issues be addressed?
cite a minimum of one outside source.
In: Operations Management
CA5-5 WRITING (Cash Flow Analysis) The partner in charge of the
Kappeler Corporation audit comes by your desk and leaves
a letter he has started to the CEO and a copy of the cash flow
statement for the year ended December 31, 2017. Because he must
leave
on an emergency, he asks you to finish the letter by explaining:
(1) the disparity between net income and cash flow, (2) the
importance
of operating cash flow, (3) the renewable source(s) of cash flow,
and (4) possible suggestions to improve the cash position.
Date
President Kappeler, CEO
Kappeler Corporation
125 Wall Street
Middleton, Kansas 67458
Dear Mr. Kappeler:
I have good news and bad news about the financial statements for
the year ended December 31, 2017. The good news is that net
income of $100,000 is close to what we predicted in the strategic
plan last year, indicating strong performance this year. The
bad
news is that the cash balance is seriously low. Enclosed is the
Statement of Cash Flows, which best illustrates how both of
these
situations occurred simultaneously . . .
Instructions
Complete the letter to the CEO, including the four components
requested by your boss.
In: Accounting
a) Prior to 1 June 2020, the share capital of Jenkins’ Era Ltd consisted of 1,000,000 ordinary shares, issued at $2 each and fully paid. On 1 June, the directors of Jenkin’ Ear Ltd decided to issue a share dividend, Existing shareholders are to receive one new share for every five shares held. The share issue is to be funded entirely from retained earnings. Each new share is valued at 43, How much cash will the company pay to fund the share dividend?
a.nothing b.$1,000,000 c.$2,000,000 d.$3,000,000
b) Whiterun Ltd owned a boat that has an economic useful life of 6 years as at 1 July 2020. On 1 July 2020 the company leased the boat to Riverwood Ltd for three years. Whiterun Ltd recognised this lease as a finance lease and recorded a lease receivable valued at $58,784. The annual lease payment is $20,000. Lease payments are to be made annually and in arrears. The interest rate implicit in the lease for Riverwood Ltd is 5%. What is the amount of Riverwood Ltd’s first year’s interest expense?
A.$2,939 b.$1,939 c.There has not been enough information provided to accurately determine this d.$1,000
c) Whiterun Ltd owned a boat that has an economic useful life of 6 years as at 1 July 2020. On 1 July 2020 the company leased the boat to Riverwood Ltd for three years. Whiterun Ltd recognised this lease as a finance lease and recorded a lease receivable valued at $58,784. In the lease agreement, Riverwood Ltd agreed to guarantee the full estimated $5,000 residual value. Lease payments are to be made annually and in arrears. The interest rate implicit in the lease for Riverwood Ltd is 5%. What is the amount of Riverwood Ltd’s annual depreciation expense?
a.$17,928 b.$19,595 c. There has not been enough information provided to accurately determine this d.$12,928
d) On 23 October 2027, Preston Garvey Ltd had a balance of $111,000 in their options account. This reflected the full premiums paid by the holders of 100,000 options which were on issue. Each option entitled the holder to acquire one ordinary share in Preston Garvey Ltd for $4. Each option expires on 1 December 2027. By 1 December 2027, 40% of the options had been exercised. The remaining options duly lapsed. Which of the following is NOT a journal entry which would be part of recording the exercising of the options and issuing of the shares?
e) Prior to 1 July 2020, the share capital account of MAGA Ltd had a balance of $10 million reflecting their issued capital of 1 million ordinary shares issued at $10 and paid in full. On 1 July 2020, MAGA Ltd announce a 1-for-4 rights issue, with each new share issued under the rights scheme being sold for $20, payable in full upon accepting the offer. Costs associated with the issue amount to $1 million. Assuming that all shareholders exercise their rights in full, what will the balance of the share capital account be once the rights issue is complete? (note: to be clear, we are looking for the dollar balance. NOT the number of outstanding shares)
A.$10,250,000 b.$14,000,0000 c.$16,000,000 d.$1,650,000
In: Accounting
Stellar Company reports pretax financial income of $66,100 for
2020. The following items cause taxable income to be different than
pretax financial income.
| 1. | Depreciation on the tax return is greater than depreciation on the income statement by $14,800. | |
| 2. | Rent collected on the tax return is greater than rent recognized on the income statement by $23,900. | |
| 3. | Fines for pollution appear as an expense of $10,600 on the income statement. |
Stellar’s tax rate is 30% for all years, and the company expects to report taxable income in all future years. There are no deferred taxes at the beginning of 2020.
Compute taxable income and income taxes payable for
2020.
|
Taxable income |
$enter a dollar amount | |
|---|---|---|
|
Income taxes payable |
$enter a dollar amount |
Prepare the journal entry to record income tax expense, deferred
income taxes, and income taxes payable for 2020.
(Credit account titles are automatically indented when
amount is entered. Do not indent manually. If no entry is required,
select "No Entry" for the account titles and enter 0 for the
amounts.)
|
Account Titles and Explanation |
Debit |
Credit |
|---|---|---|
| enter an account title | enter a debit amount | enter a credit amount |
| enter an account title | enter a debit amount | enter a credit amount |
| enter an account title | enter a debit amount | enter a credit amount |
| enter an account title | enter a debit amount | enter a credit amount |
Prepare the income tax expense section of the income statement
for 2020, beginning with the line “Income before income taxes.”
(Enter negative amounts using either a negative sign
preceding the number e.g. -45 or parentheses e.g.
(45).)
| Stellar Company Income Statement (Partial) choose the accounting period December 31, 2020For the Year Ended December 31, 2020For the Quarter Ended December 31, 2020 |
||
|---|---|---|
| select an income statement item
CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues |
$enter a dollar amount | |
| select an opening section name
CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues |
||
| select an income statement item
Current Deferred Dividends Expenses Income before Income Taxes Income Tax Expense Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues |
$enter a dollar amount | |
| select an income statement item
Current Deferred Dividends Expenses Income before Income Taxes Income Tax Expense Net Income / (Loss) Retained Earnings, January 1 Retained Earnings, December 31 Revenues Total Expenses Total Revenues |
enter a dollar amount | |
| enter a subtotal of the two previous amounts | ||
| select a closing name for this statement
CurrentDeferredDividendsExpensesIncome before Income TaxesIncome Tax ExpenseNet Income / (Loss)Retained Earnings, January 1Retained Earnings, December 31RevenuesTotal ExpensesTotal Revenues |
$enter a total net income or loss amount | |
Compute the effective income tax rate for 2020.
(Round answer to 1 decimal places, e.g.
25.5%.)
| Effective income tax rate | enter the Effective income tax rate in percentages rounded to 1 decimal place | % |
In: Accounting
Exercise 11-10A Prepare a statement of cash flows—indirect method (LO11-3, 11-4, 11-5)
The balance sheets for Plasma Screens Corporation, along with additional information, are provided below:
| PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 |
||||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 144,850 | $ | 156,500 | ||||
| Accounts receivable | 76,400 | 90,000 | ||||||
| Inventory | 91,000 | 76,400 | ||||||
| Prepaid rent | 3,200 | 1,600 | ||||||
| Long-term assets: | ||||||||
| Land | 460,000 | 460,000 | ||||||
| Equipment | 756,000 | 650,000 | ||||||
| Accumulated depreciation | (418,000 | ) | (260,000 | ) | ||||
| Total assets | $ | 1,113,450 | $ | 1,174,500 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 95,000 | $ | 81,400 | ||||
| Interest payable | 6,750 | 13,500 | ||||||
| Income tax payable | 7,200 | 4,600 | ||||||
| Long-term liabilities: | ||||||||
| Notes payable | 112,500 | 225,000 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | 680,000 | 680,000 | ||||||
| Retained earnings | 212,000 | 170,000 | ||||||
| Total liabilities and stockholders' equity | $ | 1,113,450 | $ | 1,174,500 | ||||
Additional Information for 2021:
Required:
Prepare the statement of cash flows using the indirect method.
(List cash outflows and any decrease in cash as negative
amounts.)
In: Accounting
Exercise 11-10A Prepare a statement of cash flows—indirect method (LO11-3, 11-4, 11-5)
The balance sheets for Plasma Screens Corporation, along with additional information, are provided below:
| PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 |
||||||||
| 2021 | 2020 | |||||||
| Assets | ||||||||
| Current assets: | ||||||||
| Cash | $ | 115,000 | $ | 131,200 | ||||
| Accounts receivable | 79,600 | 94,000 | ||||||
| Inventory | 99,000 | 83,600 | ||||||
| Prepaid rent | 4,800 | 2,400 | ||||||
| Long-term assets: | ||||||||
| Land | 500,000 | 500,000 | ||||||
| Equipment | 806,000 | 690,000 | ||||||
| Accumulated depreciation | (432,000 | ) | (276,000 | ) | ||||
| Total assets | $ | 1,172,400 | $ | 1,225,200 | ||||
| Liabilities and Stockholders' Equity | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 103,000 | $ | 88,600 | ||||
| Interest payable | 6,600 | 13,200 | ||||||
| Income tax payable | 8,800 | 5,400 | ||||||
| Long-term liabilities: | ||||||||
| Notes payable | 110,000 | 220,000 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | 720,000 | 720,000 | ||||||
| Retained earnings | 224,000 | 178,000 | ||||||
| Total liabilities and stockholders' equity | $ | 1,172,400 | $ | 1,225,200 | ||||
Additional Information for 2021:
Required:
Prepare the statement of cash flows using the indirect method.
(List cash outflows and any decrease in cash as negative
amounts.)
In: Accounting
Max Ltd is involved in furniture business and runs furniture stores successfully in Victoria. Due to the detrimental impact of Covid 19 sales began to drop sharply and company is facing a severe liquidity problems. Management consultant, who advices the company on business matters, proposed them to sell off all shops owned by them and leased out shop to ease off the liquidity issue and run the business profitability. The chairman of Max Ltd is keen on the plan but is puzzled by the consultant’s insistence that all lease agreements for the shops be ‘operating’ rather than ‘finance’ leases.
Meantime, Johnson Ltd agreed to lease 5 shops to Max ltd under the following conditions.
The lease agreements details are as follows:
|
Length of lease |
10 Years |
|
Commencement date |
1 July 2020 |
|
Annual lease payment, payable 1 July each year commencing 1 July 2020($100000*5) |
$500000 |
|
Estimated economic life of the building |
10 Years |
|
Annual interest rate implicit in the lease |
10% |
Chairman of the board directed company accountant to submit a detailed report on the above project.
Required:
In: Accounting
Discuss that current state of immigration in the U.S. What percentage of the U.S. population was born outside of the United States?
In: Economics