Matilda Company financial statement information has given in the following table.

Required:

Based on the financial statement information above, calculate the operating and cash cycle.

List 2 assertions for each account below & the risk associated with each account/assertions

1. 1. Using your own words, explain how the direct write-off method and the allowance method applied in accounting for uncollectible accounts receivables?
2. 2. Give me an explanation of the difference between revenue expenditures, and capital expenditures, and how they are recorded in the accounting system using your own words.

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Enumerate and briefly explain the differences between the IFRS and US GAAP on the following issues:

Treatment of Contingent Assets and Liabilities

Treatment of Asset Recognition

Treatment of Revenue Recognition

Treatment of Options

Treatment of Onerous Contracts

Treatment of Restructuring Provision

Treatment of Measurement of Deferred Taxes

Treatment of Service Contracts

Treatment of Financial Assets

Enumerate and briefly explain the differences between the IFRS and US GAAP on the following issues:

Treatment of Contingent Assets and Liabilities

Treatment of Asset Recognition

Treatment of Revenue Recognition

Treatment of Options

Treatment of Onerous Contracts

Treatment of Restructuring Provision

Treatment of Measurement of Deferred Taxes

Treatment of Service Contracts

Treatment of Financial Assets

1. Explain what happens to the efficiency of free markets if:

a) There is market power exercised by buyers or sellers.

b) There are externalities

2. What is the relationship between a change in the size of a tax, and the change in the deadweight loss of the tax?

3. What is the best predictor of whether reducing a tax in a market will increase or decrease tax revenue? Explain.

1. Explain why you agree or disagree with the following statement: “All municipal bonds are exempt from federal income taxes.”

2. Explain why you agree or disagree with the following statement: “All municipal bonds are exempt from state and local taxes.”

3. What is the difference between a tax-backed bond and a revenue bond?

Alex and Barry have a joint project. Each has first to decide whether to invest 10 or zero (i.e., not to invest) into the project. They make these individual investment choices simultaneously. Once made, these investments are sunk. If no-one invests, the project generates a total revenue of 0. If just one of them invests, then the project generates a (gross) total revenue of 15. If both of them invest, the project generates a (gross) total revenue of 30. Suppose that both Alex and Barry are told how much the project has generated before they make their “share demands”.Alex and Barry then use the following scheme to divide the total project revenue. Each player simultaneously writes down a “share demand” on a piece of paper. The demands can be either 1/5, 1/2 or 4/5. If the two “share demands”add up exactly to one, then each player is given his demand. Otherwise, all the money is thrown away. Thus, for example, if Alex and Barry each invest 10,then the project generates a gross total of 30. If Alex then writes down 4/5 and Barry writes down 1/5, then (since this adds up to one) Alex gets his demand 2 of 24 (= 4/5 x 30) for a net profit of 14( i.e., 24 minus his initial investment of 10), while Barry gets his demand of 6 (= 1/5 x 30) for a net profit of -4(i.e., 6 minus his initial investment of 10). If Barry had demanded 1/2 while Alex was still demanding 4/5, then the project money would have been thrown away and each would simply have lost his initial investment of 10.

a. Consider the subgame that follows Alex choosing to invest 10 and Barry choosing to invest 0. Find all the pure NE of this subgame .

b. Is there a pure SPE in which each player starts by investing 0? If so,explain the equilibrium strategies clearly. If not, explain why not clearly.

c. Is there a pure SPE in which each player starts by investing 10? If so,explain the equilibrium strategies clearly. If not, explain why not clearly.

1. You are an intern with an equity research organization. You have been given the task to project the values of certain income statement and balance sheet items for the next year (FY2020) for ABC Ltd (Your current time=0 is FY ending 2019). You have collected information about the historical income statement and balance sheet items. The historical information is provided in Table 1.

Table 1

Net PPE: Net Property Plant and equipment (Balance sheet item)

1. Calculate the year-over- year (yoy) growth rate in Sales Revenue for (2016-2017, 2017-2018 and 2018-2019). Also calculate the average of the three growth rates and denote it as Sales growth rate   
2. Calculate the EBITDA margin for three years (2019, 2018 and 2017). Also calculate the average of the EBITDA margin
3. Calculate the ratio Depreciation expense/Net PPE_t-1 for the three years (2019, 2018 and 2017). Calculate the average of this ratio of depreciation expense as a % of prior period Net PPE
4. Calculate the corporate tax rate from the Table above and take an average of the three years.
5. Calculate the Net PPE turnover ratio from the Table above for the three years of data provided (2019, 2018,2017) and take an average of the last three years
6. Project the Sales revenue for the FY2020 using the average growth rate in sales revenue   
7. Project the EBITDA for the FY2020 using EBITDA margin average
8. Project the Depreciation expense for the year FY2020 using average Depreciation divided by NetPPE_t-1   
9. Project the EBIT for the FY2020 using the projected values of EBITDA and depreciation
10. Project the Tax amount for the FY2020 using the tax % average calculated   
11. Project the Net Profit for the FY2020

Project the Net PPE figure for FY2020 ending using the average turnover ratio         

During 2020, Martinez Company started a construction job with a contract price of $1,610,000. The job was completed in 2022. The following information is available.

Compute the amount of gross profit to be recognized each year, assuming the percentage-of-completion method is used.

List of Accounts

Question Part Score

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Prepare all necessary journal entries for 2021. (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. For costs incurred use account Materials, Cash, Payables.)

List of Accounts

Question Part Score

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Compute the amount of gross profit to be recognized each year, assuming the completed-contract method is used.