Delta Automotive Corporation has the following assets listed in its 12/31/2021 trial balance:

*Purchased on 11/30/21

Required:
1. Determine the correct balance of cash and cash equivalents to be reported in the current asset section of the 2021 balance sheet.

2. Tracy Company, a manufacturer of air conditioners, sold 200 units to Thomas Company on November 17, 2021. The units have a list price of $650 each, but Thomas was given a 30% trade discount. The terms of the sale were 3/10, n/30.

3-a. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on November 26, 2021, assuming that the net method of accounting for cash discounts is used.
3-b. Prepare the journal entries to record the sale on November 17 (ignore cost of goods) and collection on December 15, 2021, assuming that the net method of accounting for cash discounts is used.

Keep in mind that each transaction triggers two offsetting entries in the BoP

Example: Starbucks buys coffee from an Indonesian farmer for USD 50 K who in return acquires fertilizer from a US manufacturer

US Current Account (CA):

Trade: -50 K (import of coffee)

Trade: +50 K (export of fertilizer)

For each of the following transactions, indicate how the transaction would appear in the US balance of payments. Indicate the USD amount (with the correct sign) as well as the appropriate accounts and sub-accounts:

1. A U.S. oil company imports oil from a firm in Canada. The firm pays USD 135M for the oil which is kept in a US bank by the Canadian firm

2. Apple pays USD 790 M dividends to its non-US shareholders who reinvest the dividends in Apple shares.

3. A U.S. company acquires a 40% stake in a joint venture (JV) in China for USD 74 M. The payment is converted from USD to RMB by the People’s Bank of China (PBC), i.e. the Chinese central bank, at the official exchange rate. PBC then provides the USD to a state-owned Chinese enterprise that acquires a US firm.

A group of about 20 shareholders for the Fly High Corporation, a multinational airline, sued the CEO of Fly High, Chelsea Edinburgh, for failing to disclose that she had relations with the officers at one of the rivaling airlines, Delta Airlines. Chelsea had recently shut down several flight routes that were not creating the revenue flows that Chelsea desired. This decision had received the majority of shareholder approval during a vote. However, the 20 shareholders alleged in court that Chelsea had violated her duty to disclose the fact that she had a conflict of interest in that Delta Airlines' CEO was one of Chelsea's college classmates, and Delta Airlines would continue to operate the flight routes that Fly High had just shut down. The court ruled in favor of Chelsea, however, concluding that Chelsea had acted consistent with the shareholders' vote and in good faith.

But what if the facts of the case were different? Select each set of facts below that could change the outcome of the case.

Check All That Apply

• Instead of being an old college classmate, the Delta Airlines CEO was Chelsea's ex-husband. Chelsea disclosed this fact, and still received the majority of votes from shareholders.
• The two shareholders who supported the shutdown proposed by Chelsea Edinburgh each owned 30% of Fly High Corporations' shares, and had always backed Chelsea's decisions in the past because they were close friends of Chelsea outside of work.

• A set of e-mails presented in court revealed that Chelsea had been contacted by the Delta Airlines CEO, and had been offered a future director's job paying twice her current salary if she shut down the several flights that were not creating revenue flows that Chelsea desired.
• Chelsea disclosed that she knew that Delta Airlines was headed by an old college classmate whom she had never spoken with.

The following accounts, among others, appeared on ZZ Company's balance
sheet at January 1, 2020 and December 31, 2020:

                  January 1, 2020       December 31, 2020

Accounts receivable    48,000                63,000
Utilities payable      20,000                26,000
Notes payable          71,000                80,000
Common stock           30,000                90,000
Retained earnings      22,000                78,000

The following information was taken from ZZ Company's 2020 income
statement:

Sales revenue                   $500,000
Cost of goods sold               280,000
Other expenses                   120,000
Net income                      $100,000

Calculate the net cash flow from financing activities for 2020. If
your answer is negative, place a minus sign in front of your answer
with no spaces in between (e.g., -1234).

Explain and illustrate the impacts that the COVID-19 pandemic and horrendous bushfires of 2019/2020 have had on the Australian economy. You will do so by comparing the three main macro-economic indicators –GDP growth, inflation and unemployment – in June 2020 to a point in time prior to the pandemic and bushfires (pre-July 2019), then you will illustrate and explain the impacts using the AD-AS model. Provide references that support your work and submit your slides and a link to your video for marking.

The Articles of Partnership for partners Moon, Sun, and Stars stipulate 10% interest allowance for each partner based on average capital balances during 2020. The beginning capital balances for Moon, Sun, and Stars on January 1, 2020 are $100,000, $250,000, and $400,000, respectively. On April 1, 2020, Moon invests additional 20,000 in the partnership. On July 1, 2020 Star withdraws 50,000 from the partnership. During 2020, Sun and Stars have drawings of 60,000 and 20,000, respectively. During 2020, partners Sun and Stars receive salary allocation of 60,000 and 20,000, respectively. If the partnership’s Net Income for the period after salary allocations are considered is above 130,000, Stars is also going to receive a bonus allowance of 10% of Net Income. The measure of Net Income used to determine the actual amount of the bonus is Net Income after bonus and interest allocations are considered, but before salary allocations are considered. The profit-and-loss sharing ratios for the partnership are: Moon (20%), Sun (50%), and Stars (30%) Required (show all your calculations):

1. Assume that the partnership’s net income for 2020 is $250,000. What is the TOTAL partnership RESIDUAL INCOME allocation in 2020? What is the total partnership profit allocation for Moon, Sun, and Stars, respectively? (10 points)

2. Assume that the partnership’s net income for 2020 is $250,000. Prepare the journal entry to close the NI into the Capital balances of the partners. (5p.)

3. Assume that the partnership incurs a net loss of $100,000 in 2020. What is the TOTAL partnership RESIDUAL INCOME allocation in 2020? What is the total partnership profit allocation for Moon, Sun, and Stars, respectively? (10 points)

4. Assume that the partnership incurs a net loss of $100,000 in 2020. Prepare the journal entry to close the net loss into the Capital balances of the partners. (5p.)

1. Evaluate the following statement


A. “Managers should specialize by acquiring only the tools needed to operate in a particular market structure. That is, managers should specialize in managing either a perfectly competitive, monopoly, monopolistically competitive, or oligopoly firm.”



B. The CEO of a major automaker overheard one of its division managers make the following statement regarding the firm’s production plans: “In order to maximize profits, it is essential that we operate at the minimum point of our average total cost curve.” If you were the CEO of the automaker, would you praise or chastise the manager? Explain.




C. You are the manager of a small pharmaceutical company that received a patent on a new drug three years ago. Despite strong sales (GH¢125 million last year) and a low marginal cost of producing the product (GH¢0.25 per pill), your company has yet to show a profit from selling the drug. This is, in part, due to the fact that the company spent GH¢1.2 billion developing the drug and obtaining Food and Drugs Authority approval. An economist has estimated that, at the current price of GH¢1.25 per pill, the own price elasticity of demand for the drug is -2.5. Based on this information, what can you do to boost profits? Explain.



D. The opening statement on the Website of the Organization of Petroleum Exporting Countries (OPEC) says, “...OPEC’s eleven members are all developing countries whose economies are heavily reliant on oil export revenues. They therefore seek stable oil prices that are fair and reasonable for both producers and consumers of oil.” To achieve this goal, OPEC attempts to coordinate and unify petroleum policies by raising or lowering their collective oil production. However, increased production by Russia, Oman, Mexico, Norway, and other non-OPEC countries has caused the price of crude oil to fall dramatically in recent years. To achieve its goal of stable and fair oil prices, what must OPEC do to maintain the price of oil at its desired level? Do you think this will be easy for OPEC to do? Explain.

1. A hospital determined that the average duration of a stay at the hospital is 7.1 days. Suppose that the population standard deviation for the duration of stays at this hospital is 1.9 days. Researchers randomly select 26 former patients to include in further research on hospital stays.

a) Use the central limit theorem to find the approximate probability that total amount of time these 26 patients spent at the hospital exceeds 156 days?

b) What assumptions must you make to use the central limit theorem in (a)? Are these assumptions reasonable in this case?

Kyle, a single taxpayer, worked as a free-lance software engineer for the first three months of 2018. During that time, he earned $62,000 of self-employment income. On April 1, 2018, Kyle took a job as a full-time software engineer with one of his former clients, Hoogle Inc. From April through the end of the year, Kyle earned $172,000 in salary.

What amount of FICA taxes (self-employment and employment related) does Kyle owe for the year?