Case 2: Reporting shareholders’ equity

Vinabread Ltd had the following equity account on 1 July 2020:

Share Capital (100,000 shares) 1,800,000

Retained Earnings $ 960,000

General Reserve $ 100,000

Vinabread Ltd’s profit for the year ending 30 June 2020, which has not been included in the retained earnings was $180,000. During the year, the following transactions and events occurred:

July 15, 2020 Declared and paid interim dividend of $0.50 per share.

July 30, 2020 Effected 3 for 1 share split,

June 30, 2021 Declared a final cash dividend of $0.30 per share and transferred $20,000 from retained earnings to general reserve.

Required: Prepare the equity section of the statement of financial position of Vinabread Ltd as at 30 June 2021.

Two large countries, the US and China, produce only two goods, manufactured goods and Financial services, using two factors of production, skilled and unskilled labour. The production of Financial services is relatively skill-labour intensive and manufacturing is unskilledlabour intensive. The US is relatively well endowed with skilled labour, whereas China is relatively well endowed with unskilled labour. Assume that each society's preferences over the two goods are identical.

(a) Draw the production possibilities frontier (PPF) for the US. Carefully explain the shape of the PPF. How will the PPF of China differ?

(b) Suppose there is no trade between the two countries. Explain why, in a competitive equilibrium, the relative price of Financial services must be lower in the US than in China.

(c) Explain why the neoclassical (Hecksher-Ohlin) theory of trade implies there must be an increase in the goods available for consumption in both countries as a result of opening to free trade. Does this imply that all households in each economy will gain from trade? Explain.

(d) Provide a coherent economic argument to justify a protectionist policy in China that imposes a tariff on Financial services from the US. What problems may arise in following such a strategy in the long run?

Two large countries, the US and China, produce only two goods, manufactured goods and financial services, using two factors of production, skilled and unskilled labour. The production of financial services is relatively skill-labour intensive and manufacturing is unskilled-labour intensive. The US is relatively well endowed with skilled labour, whereas China is relatively
well endowed with unskilled labour. Assume that each society‘s preferences over the two goods are identical.
(a) Draw the production possibilities frontier (PPF) for the US. Carefully explain the shape of the PPF. How will the PPF of China differ?
(b) Suppose there is no trade between the two countries. Explain why, in a competitive equilibrium, the relative price of financial services must be lower in the US than in China.
(c) Explain why the neoclassical (HecksherOhlin) theory of trade implies there must be an increase in the goods available for consumption in both countries as a result of opening to free trade. Does this imply that all households in each economy will gain from trade? Explain.
(d) Provide a coherent economic argument to justify a protectionist policy in China that imposes a tariff on financial services from the US. What problems may arise in following such a strategy in the long run?

Aligning Technology with Strategy DP

Champion Analytics from the Top

Create a Single Analytics Initiative

Focus your Analytics Initiative

Establish an Analytics Culture

Hire the Right People

Implement the Right Technology

On June 1, 2018 Antwerp Company purchased 300 shares of Palmira at a cost of $34 per share. Antwerp is a public company reporting under IFRS. It intends to hold the shares indefinitely, and consequently elects to record the shares using Fair Value Through Other Comprehensive Income (FV-OCI). · On December 31, 2018 the shares have a fair value of $36 per share. · On September 1, 2019, Palmira pays its shareholders a dividend of $4 per share. ·

On December 31, 2019, the shares have a fair value of $37 per share. · On March 31st, 2020 due to cash flow difficulties, Antwerp decides to sell its shares at $35 per share. Required: Write the entries to record all of Antwerp’s transactions from the purchase to the sale of shares using FV-OCI. Assume that Antwerp reclassifies any balance from AOCI when the shares are sold.

Did US, Mexico, or Canada benefit most from NAFTA? Which benefited the least? Explain

From a regulatory theory perspective explain the differences in disclosure requirements for US companies and Australian companies.

On January 1, 2018, a machine was purchased for $100,000. The machine has an estimated salvage value of $6,400 and an estimated useful life of 5 years. The machine can operate for 104,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 20,800 hrs; 2019, 26,000 hrs; 2020, 15,600 hrs; 2021, 31,200 hrs; and 2022, 10,400 hrs.

Compute the annual depreciation charges over the machine’s life assuming a December 31 year-end for each of the following depreciation methods. (Round answers to 0 decimal places, e.g. 45,892.)

On January 1, 2018, a machine was purchased for $100,000. The machine has an estimated salvage value of $6,400 and an estimated useful life of 5 years. The machine can operate for 104,000 hours before it needs to be replaced. The company closed its books on December 31 and operates the machine as follows: 2018, 20,800 hrs; 2019, 26,000 hrs; 2020, 15,600 hrs; 2021, 31,200 hrs; and 2022, 10,400 hrs.

Compute the annual depreciation charges over the machine’s life assuming a December 31 year-end for each of the following depreciation methods. (Round answers to 0 decimal places, e.g. 45,892.)

Assume a fiscal year-end of September 30. Compute the annual depreciation charges over the asset’s life applying each of the following methods. (Round answers to 0 decimal places, e.g. 45,892.)

Provide the Director of Operations with a memo presenting a short diagnosis of the recent problems that the introduction of new technology has caused in the packaging department.

In this memo you will address the following ideas:

1. The methods of collecting data for OB analysis

2. The conclusions drawn from the data

3. A complete statement of the diagnosis

Pigs R US Corporate Profile (is a company that produces ham)

Current Company Vision: Bringing quality meats to family tables everywhere.

Current Mission: We believe that family and tradition matter. Pigs R Us is a family too and because we believe that family matters, it our commitment to put only quality pork products on your kitchen table just as we would our own.

Current Business Philosophy

As one of the largest worldwide producers of pork products it is the goal of PRU to help improve its international sales. It will now look forward two years as change in business strategy is imperative to keep growing. The need for innovation and competitive edge ideas are the focus for the next two years. Sustainability both for profit and planet is foremost in the minds of the leadership. The development of "green" friendly international delivery strategies will be a main emphasis.  

Current Corporate Culture

PRU has always considered their employees to be like family. They value their input in the business and seek to empower them whenever they can. The current company culture is a hierarchical with a functional underpinning. The growth of the company and the need for structure and communication to keep the global deadlines has caused the Directors to move towards a collaborative culture. They hope that the family feel of the clan culture will not be lost hence the hybrid.

Organizational Structure:

This company has a functional division structure. However, within each division is a functional structure whose make up is dependent on its purpose. For instance, if the branch is a meat packing plant where slaughter takes place than its decision-making flow will follow the jobs that are part of the slaughter and packing processes. Communication and decision making still flows from top down.