1. Bird Song Industries makes a bird seed that sets native song birds singing all day long. Its product has been discovered by the back-to-nature crowd around the world. As a result, Bird Song's executives expect free cash flow (FCF) to grow rapidly over the next 3 years. The forecast FCFs are 25 in 2020 (one year from now), 40 in 2021, with a jump to 80 in 2022. After 2022 Bird Song expects growth to slow to 2.5% per year in perpetuity. Bird Song's weighted average cost-of-capital (WACC) is 11%.   What is Bird Song’s fundamental value?

2. Bird Song Industries makes a bird seed that sets native song birds singing all day long. Its product has been discovered by the back-to-nature crowd around the world. As a result, Bird Song's executives expect free cash flow (FCF) to grow rapidly over the next 3 years. The forecast FCFs are $15 in 2020 (one year from now), $25 in 2021, with a jump to $40 in 2022. After 2022 Bird Song expects growth to slow to 2.0% per year in perpetuity. Bird Song's weighted average cost-of-capital (WACC) is 13%. What is Bird Song’s fundamental value?

UnAdjusted trial balance 31 st May 2020

Office supplies 6,660

June Transaction

05-06-20 Purchased office supplies on credit, due 15 July 2020 $1,045

Additional Information

• A physical count of office supplies on 30th June shows $2940 of unused supplies on hand.

Journal entries for the year ended 30 june 2020 with workings P&L and SOFP Transaction

On January 1, 2020, ABC Company borrowed $200,000 from the bank. The loan is
a 10-year note payable that requires semi-annual payments of $24,000 every
June 30 and December 31, beginning June 30, 2020. Assume the loan has a 20%
interest rate, compounded semi-annually.

Calculate the amount of the note payable at December 31, 2020 that would be
classified as a long-term liability.

Utilizing the equal weighted series calculate the index values for each day for the market below.

Hansen Computer Corp. acquires $2,150,000 in new 7-year class assets (all tangible personal property) in February 2020. The company elects to take all available Sec. 179 expense and bonus first-year depreciation. Assume Hansen uses a calendar year and that Sec. 179 expense will not be limited by taxable income in 2020. What cost recovery deduction can Hansen take in 2020?

A company began work in 2020 on a contract for $7,800. Other data are as follows:

If the company uses the percentage-of-completion method, for the journal entry that records construction revenue, construction expense, and gross profit for 2020, how much will be recorded for Construction in Process?

On July 1, 2020, Sandhill Company purchased $3,860,000 of Duggen Company’s 8% bonds, due on July 1, 2027. The bonds, which pay interest semiannually on January 1 and July 1, were purchased for $3,340,000 to yield 10%. These bonds are classified as available-for sale and they have a fair value at December 31, 2020, of $3,444,400, prepare the journal entry (if any) at December 31, 2020, to record this transaction.

A company began work in 2020 on a contract for $7,800. Other data are as follows:

                                                   2020                         2021

Costs incurred to date                 $3,000 $5,600

Estimated costs to complete         2,000       —

Billings to date    4,400                   7,800

Collections to date                       2,000                      4,800

If the company uses the percentage-of-completion method, for the journal entry that records construction revenue, construction expense, and gross profit for 2020, how much will be recorded for Construction in Process?