Days Ltd's financial year ended on 30 June 2020. The following events occurred between the end of the reporting period and the date the directors of Edwards Ltd expect to authorise the financial statements for issue:

1. On 3 July 2020, directors proposed a final dividend of $120,000.
2. On 15 July 2020, Days Ltd took delivery of building materials (inventory). Building materials were purchased from a Chinese manufacturer. Building materials were in transit at the end of the reporting period. An inspection of the building materials revealed significant flaws and the materials were returned to the supplier on 25 July 2020. Days Ltd is to receive a full refund of the $125,000 purchase price, which had been paid in advance on 27 June 2020.

REQUIRED

For each of the above material after-reporting-period events, state whether adjustment or disclosure is required in the 30 June 2020 financial statements. Assume the above events would not significantly affect the going-concern assumption for Days Ltd.

(No need for financial statement notes or any journal entries for adjustments.)

Presented here are summarized data from the balance sheets and income statements of Wiper Inc.:

Required:

1. Calculate return on investment, based on net income and average total assets, for 2020 and 2019.
2. Calculate return on equity for 2020 and 2019.
3. Calculate working capital and the current ratio for each of the past three years.
4. Calculate earnings per share for 2020 and 2019.

Rolt Company began 2016 with a $120,000 balance in retained earnings. During the year, the following events occurred:

1. The company earned net income of $80,000.
2. A material error in net income from a previous period was corrected. This error correction increased retained earnings by $9,800 after related income taxes of $4,200.
3. Cash dividends totaling $13,000 and stock dividends totaling $17,000 were declared.
4. One thousand shares of callable preferred stock that originally had been issued at $110 per share were recalled and retired at the beginning of 2016 for the call price of $120 per share.
5. Treasury stock (common) was acquired at a cost of $20,000. State law requires a restriction of retained earnings in an equal amount. The company reports its retained earnings restrictions in a note to the financial statements.

Required:

1. Prepare a statement of retained earnings for the year ended December 31, 2016.

A promises a 20% discount to a customer. The colleague B knows that the customer is compensated with a huge Christmas gift every year. Your boss asks B why the price is so low? B says the truth because B does not lie. Colleague A, a family father, is terminated. Here the consequence of the statements was catastrophic for A. From a sense of fellow humanity or compassion, B would better have said nothing, right? But what if B had said nothing and because of this order the company goes into the insolvency? You don’t lie. Her colleagues claim they have acquired many new customers. Instead, they were mediated by the subsidiary. Colleagues are promoted, you are not.   

Required: (a) Determine the ethical issues and dilemmas faced by the company in this situation.

(b) Using consequentialist approach describe the actions taken by the company.

(c) Elaborate the ethical issue based on Kant’s Theory of Duty.

(d) Describe the potential solutions that the company can take to resolve this situation.

The entire answer should not be more than 1,000 words (+/- 10%) (excluding preliminary pages such as Cover Page, Table of Contents, Reference Page, Declaration and Appendix). o The Assignment should be written with the following formatting:

On January 1, 2019, the Pebbles Company acquired a Bam-Bam Business bond investment with a principal of $ 100,000 for $ 90,000. Pebbles classified the investment as Held to Maturity. The bonds mature in 5 years and pay interest annually at 10%. Pebbles uses the indirect method to prepare the Statement of Cash Flows.
Assuming that, in 2019, Pebbles forgot to amortize the investment discount on Bam-Bam Bonds, what is the impact of this error on net income and on net operating cash flow of 2019 if it is not discovered timely and not taken into account when preparing the financial statements?
 
Net Income
Net Cash Flow from
Operational Activities

Select one:
to. Overrated None
b. Underrated None
c. Underestimated Underestimated
d. Underestimated Underestimated

Bensen Company started business by acquiring $26,300 cash from the issue of common stock on January 1, Year 1. The cash acquired was immediately used to purchase equipment for $26,300 that had a $3,900 salvage value and an expected useful life of four years. The equipment was used to produce the following revenue stream (assume that all revenue transactions are for cash). At the beginning of the fifth year, the equipment was sold for $4,330 cash. Bensen uses straight-line depreciation. Year 1 Year 2 Year 3 Year 4 Year 5 Revenue $ 7,640 $ 8,140 $ 8,340 $ 7,140 $ 0 Required Prepare income statements, statements of changes in stockholders’ equity, balance sheets, and statements of cash flows for each of the five years.

Ross Enterprises has a contract with Big Steel Company Limited in respect of Information Technology (IT) Services. The contract was signed on January 1^st 2020 and will be effected on the 1^st April 2020.

In mid-February 2020 Big Steel’s sales plummeted due to the Covid 19 pandemic. In addition, an already high long term debt, and operating cost, as well as Big Steel’s current negative cash flows situation placed the company in serious financial peril. Indeed if they cannot find a resolution soon to deal with their cash flow problems and debt, they will have to close operations permanently and send all employees home.

Upon hearing this pronouncement, the Trade Union representing workers at Big Steel advised management that they will take strike action. This further affected the operations of Big Steel and resulted in a loss of production, sales and the much-needed cash flows, which is critical to pay off their debt and meet current fixed operating cost. On 3^rd March 2016, Big Steel files for bankruptcy and sent all employees home.

On the 4^th March, Big Steel wrote Ross Enterprises advising of their circumstances and the virtual impossibility of implementing the sign contact for IT Services, which is scheduled to commence on 1^st April 2020.

Ross Enterprises is adamant that they have binding arrangement and wanted to proceed as per signed contract. However Big Steel has advised Ross that certain events, covid 19, global recession and a subsequent strike has culminated for which the company has little or no control of. Thus, it was impossible to implement the contract on the agreed start date due to these circumstances.

Advise Ross Enterprises on this matter using the IRAC method

The condensed financial statements of Murawski Company for the years 2019 and 2020 are presented follows. (Amounts in thousands.)

Compute the following ratios for 2020 and 2019. (Round current ratio and invertory turnover ratio to 2 decimal places, e.g. 1.62 or 1.62% and all other answers to 1 decimal place, e.g. 1.6 or 1.6%.)

Ross Enterprises has a contract with Big Steel Company Limited in respect of Information Technology (IT) Services. The contract was signed on January 1st 2020 and will be effected on the 1st April 2020. In mid-February 2020 Big Steel’s sales plummeted due to the Covid 19 pandemic. In addition, an already high long term debt, and operating cost, as well as Big Steel’s current negative cash flows situation placed the company in serious financial peril. Indeed if they cannot find a resolution soon to deal with their cash flow problems and debt, they will have to close operations permanently and send all employees home. Upon hearing this pronouncement, the Trade Union representing workers at Big Steel advised management that they will take strike action. This further affected the operations of Big Steel and resulted in a loss of production, sales and the much-needed cash flows, which is critical to pay off their debt and meet current fixed operating cost. On 3rd March 2016, Big Steel files for bankruptcy and sent all employees home. On the 4th March, Big Steel wrote Ross Enterprises advising of their circumstances and the virtual impossibility of implementing the sign contact for IT Services, which is scheduled to commence on 1st April 2020. Ross Enterprises is adamant that they have binding arrangement and wanted to proceed as per signed contract. However Big Steel has advised Ross that certain events, covid 19, global recession and a subsequent strike has culminated for which the company has little or no control of. Thus, it was impossible to implement the contract on the agreed start date due to these circumstances.

Advise Ross Enterprises on this matter.

You are working with a type 2 diabetic who reveals through a “usual intake” interview that he only eats refined grains and lifestyle habits indicate that he is not physically active. Explain the importance of the introduction of whole grains and exercise to his diet and routine in the management of his condition.​