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.

Statement of Cash Flows

The following are several items involving the cash flow activities of the ROCKY HORROR PICTURE CO. for 2016:

1. Net income, $58,000
2. Payment of dividends, $16,300
3. Ten-year, $32,100 bonds payable were issued at face value
4. Depreciation expense, $15,500
5. Building acquired at a cost of $30,800
6. Accounts receivable decreased by $2,700
7. Accounts payable decreased by $4,700
8. Equipment acquired at a cost of $6,500
9. Inventories increased by $7,000
10. Beginning cash balance, $15,300

Required:

Prepare Rocky Horror Picture's statement of cash flows for 2016 using the indirect method. Use a minus sign for any negative amounts.

Statement of Cash Flows

The following are several items involving the cash flow activities of the ROCKY HORROR PICTURE CO. for 2016:

Net income, $43300

Payment of dividends, $15600

Ten-year, $36100 bonds payable were issued at face value

Depreciation expense, $20600

Building was acquired at a cost of $36400

Accounts receivable decreased by $1800

Accounts payable decreased by $4600

Equipment was acquired at a cost of $6600

Inventories increased by $6100

Beginning cash balance, $16500

Required:

Prepare Rocky Horror Picture's statement of cash flows for 2016 using the indirect method. Use a minus sign for any negative amounts.

Statement of Cash Flows

The following are several items involving the cash flow activities of the ROCKY HORROR PICTURE CO. for 2016:

Net income, $45,800

Payment of dividends, $14,400

Ten-year, $31,600 bonds payable were issued at face value

Depreciation expense, $24,900

Building acquired at a cost of $38,400

Accounts receivable decreased by $2,900

Accounts payable decreased by $3,000

Equipment acquired at a cost of $5,100

Inventories increased by $5,700

Beginning cash balance, $30,100

Required:

Prepare Rocky Horror Picture's statement of cash flows for 2016 using the indirect method. Use a minus sign for any negative amounts.

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.​

List three examples of “Types of Nonverbal Communication.” Then “compare and contrast” your possible use of nonverbal communication at a party with friends versus a job interview. The choices listed on pages 166- 175 of textbook (13th ed.) are: body movements, voice, appearance, touch, space, environment and tim

On April 1 2020 DinePlus Restaurants Incorporated, a franchisor, signed a franchise agreement to allow a franchisee to operate a business in northwest Edmonton, Alberta for a 10-year period.

Note:       A franchise agreement is an agreement between a franchisor (a parent company) and a franchisee (an individual or a company) that permits the franchisee to operate a business using the products and services of the franchisor in return for payment of a franchise fee to the franchisor.

The agreement requires the franchisee to pay DinePlus $200,000 up front and a royalty of 2% of its sales revenue. The franchisee paid DinePlus the $200,000 on the date the agreement was signed. Management at DinePlus estimates that the value of services rendered to this franchisee in setting up the business was $80,000, taking into account location, demographic analysis, staffing, and training. Management at DinePlus also believes that the remainder of the initial fee relates to services that will be provided by the franchisee evenly over next 10 years.

DinePlus follows IFRS and has a September 30 year-end. Monthly sales during the 2020 calendar year as reported by the franchisee were as follows:

Question No. 1 (continued)

PART B: (continued)

Required:

1. Prepare the journal entry for DinePlus on the date the franchise agreement is signed.     

2. Prepare the journal entries for DinePlus for the year ended September 30, 2020.

Note:   You may expand the JE blocks shown below if necessary and you may copy/paste to add more blocks as needed.

Tony and Suzie purchased land costing $500,000 for a new camp in January 2020. Now they need money to build the cabins, dining facility, a ropes course, and an outdoor swimming pool. Tony and Suzie first checked with Summit Bank to see if they could borrow another million dollars, but unfortunately the bank turned them down as too risky. Undeterred, they promoted their idea to close friends they had made through the outdoor clinics and TEAM events. They decided to go ahead and sell shares of stock in the company to raise the additional funds for the camp. Great Adventures has two classes of stock authorized: 7%, $10 par preferred, and $1 par value common.

When the company began on July 1, 2018, Tony and Suzie each purchased 15,000 shares of $1 par value common stock at $1 per share. The following transactions affect stockholders’ equity during 2020, its third year of operations:

July 2 Issue an additional 110,000 shares of common stock for $13 per share.

September 10 Repurchase 11,000 shares of its own common stock (i.e., treasury stock) for $16 per share.

November 15 Reissue 5,500 shares of treasury stock at $17 per share.

December 1 Declare a cash dividend on its common stock of $134,500 ($1 per share) to all stockholders of record on December 15.

December 31 Pay the cash dividend declared on December 1.

1. Record each of these transactions.

2. Great Adventures has net income of $158,000 in 2020. Retained earnings at the beginning of 2020 was $148,000. Prepare the stockholders’ equity section of the balance sheet for Great Adventures as of December 31, 2020.

The BCJ Company needs a master budget for the three months beginning April 1, 2020. The company retails widgets. The 2020 budget should be based on the following information. An ending minimum cash balance of $10,000 each month is required. Sales are forecasted at an average selling price of $8 per widget. Merchandise costs are $4 per widget. Currently, the company maintains an ending inventory balance equal to 20% of the next month’s projected cost of goods sold. Purchases during any given month are paid half in the month of purchase and half during the following month. Sales are 20% cash and 80% on credit (payable within 30 days), but experience has shown that 60% of monthly credit sales is collected in the current month, 40% in the next month.

Monthly operating expenses are as follows:

Wages and salaries                                  $15,000

Insurance expired 150

Depreciation                                                 1,200

Utilities    1,000

Advertising   300                          

Miscellaneous 500

Rent 400 per month+ 10% of monthly sales.

All operating expenses are paid as incurred, except insurance, depreciation, and rent. Rent of $400 is paid at the beginning of each month, and the additional 10% of sales is paid in the month following the sales.    The company plans to buy some new equipment for $5,000 cash in June. Cash dividends of $1,500 are to be paid quarterly, beginning April 15. Dividends are declared on the 15th of the last month in the calendar quarter.

BCJ has an established line of credit with its bank, Third Fifth National. Money can be borrowed and repaid in multiples of $1,000, at an interest rate of 6% per annum. Management wants to minimize borrowing and repay rapidly. Interest is computed and paid when the principal is repaid. Assume that borrowing occurs at the beginning and repayments at the end of the months in question. Money is never borrowed at the beginning and repaid at the end of the same month. Compute interest to the nearest dollar.

Balance Sheet

March 31, 2020

Assets                                                                          Liabilities

Cash                                                      $16,300           Accounts payable (inventory)                          $13,750

Accounts receivable (net)                        19,200 Dividends payable                                            1,500      

Inventory                                                   4,000 Rent payable 6,000

Prepaid insurance                                 1,800 Total 21,250

Land, Building, Equipment (net)            75,000

Stockholders' Equity                                                

                                                                                   Capital stock ($1 par value)    54,400

                                                                                   Retained earnings 40,650

Total assets                                   $116,300           Total Liabilities & Stockholders' Equity            $116,300

Recent and forecasted sales:

January         $45,000      February    $50,000                March $60,000               April            $40,000     

May               $50,000      June           $70,000                July            $60,000

Required:            1.    Prepare a master budget, using Excel, and all supporting schedules (including sales) for the months April, 2020 through June, 2020.

2. Prepare the budgeted Income Statement and Statement of Cash Flows for the quarter ended June 30, 2020 and the budgeted Balance Sheet at June 30, 2020.