Several states challenge the Patient Protection and Affordable Care Act (2010) mandate to purchase health insurance. These challenges were meet by a strong government response. In 2012, the US Supreme Court ruled in a 5 to 4 decision that the mandate to purchase was constitutional. From the second e-Activity review the option in the case and explain the Court's rationale for upholding the mandate.
In: Economics
The number of new businesses established in the US since 1990 can be modeled by the function Nx=110.8x^3-5305.5x^2+76,701x+332,892 where x = 0 represents 1990 and the domain is [0, 25].
1) What was the average rate of change in the number of new businesses established between 2000 and 2010? Don’t forget to label and interpret the answers.
In: Advanced Math
c. The standard of living in China is higher than the standard of living in Belgium as the size of China’s real GDP in 2018 (using 2010 constant prices) was USD10,800,568.39 million compared to Belgium’s USD538,738.79 million (figures from the World Development Index Database). Do you agree or disagree with this statement? Refer to the UN Human Development Index to Justify your answer.
In: Economics
In a March 26-28, 2010 Gallup poll, 473 respondents (out of 1033) approved of they way President Obama handled the health care debate (regardless of their opinions on health care policy).
a) What is your point estimate for this proportion?
b) Construct a 95% confidence interval for this opinion. did a significant majority disapprove of how he handled the debate?
In: Math
What is the history of healthcare reform? What are the key provisions of the Affordable Care Act of 2010? What are the key provisions of the Medicare Access and CHIP Reauthorization Act of 2015? What are the two major free-market initiatives and what is the impact of each on quality, cost and access? Lastly, please Include any additional initiatives that are current, and applicable, to healthcare today.
In: Operations Management
The Angela’s home cleaning ltd provides home cleaning services. The following is the 1 March 2020 Trial Balance (TB). The company has not made all the March entries but the required info is given below. You will be asked to update the accounts as at 31 March 2020.
angela’s Cleaning COMPANY
Angela’s
Unadjusted Trial Balance
1 March 2020
Cash...................................................................................... $ 5,700
Accounts receivable........................................................... 1,800
Cleaning supplies............................................................... 800
Accounts payable............................................................... 300
Dividend payable................................................................ 500
Dividends ............................................................................ 500 Capital Stock ............................................................................................... 6,000
Retained earnings............................................................... 1,400
Client revenue..................................................................... 5,800
Salaries expense................................................................ 3,100
Travel expense.................................................................... 1,500
Printing expense ................................................................ 600
$14,000 $14,000
the following transaction happened in march
ADJUSTING ENTRIES
Instructions
Please show any working where required.
In: Accounting
(THERE IS NO ADDITIONAL INFORMATION PROVIDED OR NEEDED, SIMPLY NEED THIS CREATED IN EXCEL)
Credit Card Amortization Schedule (MUST BE IN EXCEL)
Starter File Name: None
Difficulty: Level 3
Credit cards can offer people considerable flexibility when it comes to purchasing power. However, this flexibility usually comes at a cost through a high APR on any unpaid balances. If only the minimum payment is made on a credit card balance, this debt could be carried for many years and cost thousands of dollars in interest expense. The purpose of this exercise is to design an amortization schedule for a credit card where only the minimum payment is made. Assume the bank charges an APR of 16% and that the current balance on the credit card is $5,000. The minimum payment is established on a fourteen year repayment period and payments are made at the end of each month. The design of your amortization table must include the following:
Design is limited to one worksheet.
Assume credit card statements are issued on the first day of each month. Show the statement date for each payment and the statement month on the amortization schedule. The date for the first statement is 9/1/2020.
For each payment, show the total payment, how much of the payment is interest expense, and how much is used to reduce the balance of the credit card. The schedule should also show the credit card balance at the beginning of every month.
Once the amortization table is complete, use the data to create a PivotTable on a second worksheet. The PivotTable should show how much total interest is paid each year and the total interest paid on the $5,000 balance after fourteen years. Also show the total amount of principal paid each year. The row heading should be the year sorted in chronological order beginning with 2020. Finally, show the number of payments made each year. Since the first statement is 9/1/2020, the year 2020 will have four payments.
Use column and/or row headings, add titles to your worksheets, and rename the worksheet tabs with appropriate labels. Also, use appropriate number formats on both the amortization worksheet and the PivotTable.
In: Accounting
The Verbrugge Publishing Company's 2019 balance sheet and income statement are as follows (in millions of dollars).
Balance Sheet
Current assets $300 Current Liabilities $40
Net fixed assets $200 Advance payments by customers $80
Noncallable Preferred Stock, $6 coupon, $110 par value (1,000,000 shares) 110
Callable preferred stick, $10 coupon, no par, $100 call price (2,000,000 shares) 200
Common stock, $2 par value (5,000,000 shares) $10
Retained earnings $60
Total Assets $500 Total liabilities and equity $500
Income Statement
Net sales $540
Operating expense $516
Net operating income $24
Other income $4
EBT $28
Taxes(25%) $7
Net income $21
Dividends on $6 preferred $6
Dividends on $10 preferred $2
Income available to common stockholders $13
Verbrugge and its creditors have agreed upon a voluntary reorganization plan. In this plan, each share of the noncallable preferred will be exchanged for 1 share of $2.50 preferred with a par value of $35 plus one 9% subordinated income debenture with a par value of $75. The callable preferred issue will be retired with cash generated by reducing current assets.
a. Assume that the reorganization takes place and construct the projected balance. Show the new preferred stock at its par value. What is the value for total assets? For preferred stock? Enter your answers in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answers to the nearest whole number. The projected balance sheet (in millions of dollars) follows:
Current assets 100 Current Liabilities 40
Net fixed assets 200 Advance payments by customers 80
Noncallable Preferred Stock, $6 coupon, $110 par value (1,000,000 shares) 75
Callable preferred stick, $10 coupon, no par, $100 call price (2,000,000 shares) 35
Common stock, $2 par value (5,000,000 shares) 10
Retained earnings 60
Total Assets 300 Total liabilities and equity 300
What is the value for debt (i.e., liabilities)? Do not treat preferred stock as debt. Enter your answer in millions. For example, an answer of $1 million should be entered as 1, not 1,000,000. Round your answer to the nearest whole number.
$ ???? million
b. Construct the projected income statement. What is the income available to common shareholders in the proposed recapitalization? Do not round intermediate calculations. Enter your answers in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places. The projected income statement (in millions of dollars) follows:
Net sales 540
Operating expense 516
Net operating income 24
Other income 4
EBIT 28
Interest 6.75
EBT 21.25
Taxes (25%) 5.31
Net income 15.94
Dividends on $2.50 preferred 2.5
Income available to common stockholders 13.44
What were the total cash flows received by the noncallable preferred stockholders prior to the reorganization? What were the total cash flows to the original noncallable preferred stockholders after the reorganization? Do not round intermediate calculations. Enter your answers in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places.
Total cash flow to noncallable preferred stockholders before recapitalization: $ million
Total cash flow to noncallable preferred stockholders after recapitalization: $ million
What was the net income to common stockholders before the reorganization? After the reorganization. Do not round intermediate calculations. Enter your answers in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places.
Net income to common stockholders before recapitalization: $ million
Net income to common stockholders after recapitalization: $ million
Required pre-tax earnings are defined as the amount that is just large enough to meet fixed charges (debenture interest and/or preferred dividends). What are the required pre-tax earnings before and after the recapitalization? Do not round intermediate calculations. Enter your answers in millions. For example, an answer of $1.23 million should be entered as 1.23, not 1,230,000. Round your answers to two decimal places.
Required pre-tax earnings before recapitalization: $ million
Required pre-tax earnings after recapitalization: $ million
How is the debt ratio (i.e., liabilities/total assets) affected by the reorganization? Round your answers to two decimal places.
Suppose you treated preferred stock as debt and calculated the resulting debt ratios. How are these ratios affected?
In: Accounting
Analyzing and Interpreting Pension and Health Care Footnote
Assume Xerox reports the following pension and retiree health care ("Other") footnote as part of its 10-K report.
| Pension Benefits | Retiree Health | |||
|---|---|---|---|---|
| (in millions) | 2010 | 2009 | 2010 | 2009 |
| Change in Benefit Obligation | ||||
| Benefit obligation, January 1 | $ 10,467 | $ 10,302 | $ 1,592 | $ 1,653 |
| Service cost | 237 | 244 | 17 | 19 |
| Interest cost | 578 | 732 | 87 | 92 |
| Plan participants' contributions | 12 | 13 | 20 | 19 |
| Plan amendments | 11 | (234) | -- | 31 |
| Acturarial gain | (508) | (85) | (114) | (105) |
| Currency exchange rate changes | 331 | 564 | 21 | -- |
| Curtailments | (1) | (2) | -- | -- |
| Benefits paid/settlements | (629) | (1,067) | (102) | (117) |
| Benefit obligation, December 31 | $ 10,498 | $ 10,467 | $ 1,521 | $ 1,592 |
| Change in Plan Assets | ||||
| Fair value of plan assets, January 1 | $ 9,217 | $ 8,444 | $ -- | $ -- |
| Actual return on plan assets | 695 | 959 | -- | -- |
| Employer contribution | 256 | 355 | 82 | 98 |
| Plan participants' contributions | 12 | 13 | 20 | 19 |
| Currency exchange rate changes | 280 | 513 | -- | -- |
| Benefits paid/settlements | (629) | (1,067) | (102) | (117) |
| Fair value of plan assets, December 31 | $ 9,831 | $ 9,217 | $ -- | $ -- |
| Net funded status (including under-funded and non-funded plans) at December 31 | $ (667) | $ (1,250) | $ (1,521) | $ (1,592) |
| Pension Benefits | Retiree Health | |||||
|---|---|---|---|---|---|---|
| (in millions) | 2010 | 2009 | 2008 | 2010 | 2009 | 2008 |
| Components of Net Periodic Benefit Cost | ||||||
| Defined benefit plans | ||||||
| Service cost | $ 237 | $ 244 | $ 234 | $ 17 | $ 19 | $ 20 |
| Interest cost | 578 | 732 | 581 | 87 | 92 | 90 |
| Expected return on plan assets | (668) | (802) | (622) | -- | -- | -- |
| Recognized net acturarial loss | 75 | 104 | 98 | 10 | 19 | 31 |
| Amortization of prior service credit | (20) | (18) | (3) | (12) | (13) | (24) |
| Recognized net transition obligation (asset) | -- | 2 | 1 | -- | -- | -- |
| Recognized curtailment/settlement loss | 33 | 93 | 54 | -- | -- | -- |
| Net periodic benefit cost | 235 | 355 | 343 | 102 | 117 | 117 |
| Defined contribution plans | 80 | 70 | 71 | -- | -- | -- |
| Total | $ 315 | $ 425 | $ 414 | $ 102 | $ 117 | $ 117 |
| Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income | ||||||
| Net acturarial loss (gain) | (499) | (114) | ||||
| Prior service cost (credit) | 5 | -- | ||||
| Amortization of net acturarial (loss) gain | (108) | (10) | ||||
| Amortizaion of prior service (cost) credit | 20 | 12 | ||||
| Total recognized in other comprehensive income | (582) | (112) | ||||
| Total Recognized in Net Periodic Benefit Cost and Other Comprehensive Income | $ (267) | $ (10) | ||||
(a) Describe what is meant by service cost and interest cost (the
service and interest costs appear both in the reconciliation of the
PBO and in the computation of pension expense).
Service cost represents the wages earned by employees managing the pension plan during the current year. Interest cost is the expense we incur on funds borrowed by the pension plan.
Service cost represents the wages earned by employees managing the pension plan during the current year. Interest cost is an expense that accrues on the pension obligation during the year.
Service cost represents the additional pension benefits earned by employees during the current year but paid to employees in the future. Interest cost is the expense we incur on funds borrowed by the pension plan.
Service cost represents the additional pension benefits earned by employees during the current year but paid to employees in the future. Interest cost is an expense that accrues on the pension obligation during the year.
1.00 points out of 1.00
The correct answer is: Service cost represents the additional
pension benefits earned by employees during the current year but
paid to employees in the future. Interest cost is an expense that
accrues on the pension obligation during the year.
(b) What is the actual return on the pension and the health care
("Other") plan investments in 2010?
$Answer
million
Was Xerox's profitability impacted by this amount?
Xerox's profit is reduced by the expected return on pension assets. Because the health care ("Other") plan is not funded, there are no assets generating a return, hence there is no expected return offset for this plan.
The actual return for both plans is the income or loss that is reported in Xerox's income statement.
The expected return (not the actual return) on the pension plan assets impacts Xerox's income for 2010. Pension expense is reduced by this amount. Because the health care ("Other") plan is not funded, there are no assets generating a return, hence there is no expected return offset for this plan.
The actual return for the pension plans is the income or loss that is reported in Xerox's income statement. Because the "Other" (health care) plan is funded on a pay-as-you-go basis, it does not affect Xerox's profit until the benefits are paid.
1.00 points out of 1.00
The correct answer is: The expected return (not the actual return)
on the pension plan assets impacts Xerox's income for 2010. Pension
expense is reduced by this amount. Because the health care
("Other") plan is not funded, there are no assets generating a
return, hence there is no expected return offset for this plan.
(c) Provide an example under which an "actuarial gain," such as the
$508 million gain in 2010 that Xerox reports, might arise.
An increase in the actual return on plan assets.
An increase in the discount rate.
An increase in the expected return assumption.
A reduction in the amount of benefit payments.
1.00 points out of 1.00
The correct answer is: An increase in the discount rate.
(d) What is the source of funds to make payments to retirees?
pension and health care liabilities
pension and health care assets
pension and health care obligations
operating cash flows
1.00 points out of 1.00
The correct answer is: pension and health care assets
(e) How much cash did Xerox contribute to its pension and health
care plans in 2010?
Pension = $Answer
million
Health care = $Answer
million
(f) How much cash did retirees receive in 2010 from the pension
plan and the health care plan?
Pension = $Answer
million
Health care = $Answer
million
How much cash did Xerox pay these retirees in 2010?
Answer
million
(g) Show the computation of the 2010 funded status for the pension
and health care plans.
Do not use negative signs with your answers.
Pension : $9,831 million - $Answer
million = $Answer
million Answerunderfundedoverfunded
Health care : $0 million - $Answer
million = $Answer
million Answerunderfundedoverfunded
(h) The company reports $108 million "amortization of net actuarial
(loss) gain" in the table relating to Other Comprehensive Income
and $75 million "Recognized net actuarial loss" and $33 million
"Recognized curtailment/settlement loss" in the net periodic
benefit cost table. (Note that $75 million + $33 million = $108
million.) The company also reports a $20 million "Amortization of
prior service (cost) credit" and a corresponding amount in the net
periodic benefit cost table. Describe the process by which these
amounts are transferred from Other Comprehensive Income to pension
expense in the income statement.
These amounts remain in AOCI unless they exceed the greater of 10% of pension assets or PBO at the beginning of the year. If the accumulated amounts exceed the maximum, the excess is amortized to income over a 10-year period.
These amounts remain in AOCI and are never amortized to income.
These amounts remain in AOCI unless they exceed the greater of pension assets or PBO at the beginning of the year. If the accumulated amounts exceed the maximum, the excess is amortized to income over the remaining service lives of the employees.
These amounts remain in AOCI unless they exceed the greater of 10% of pension assets or PBO at the beginning of the year. If the accumulated amounts exceed the maximum, the excess is amortized to income over the remaining service lives of the employees.
1.00 points out of 1.00
The correct answer is: These amounts remain in AOCI unless they
exceed the greater of 10% of pension assets or PBO at the beginning
of the year. If the accumulated amounts exceed the maximum, the
excess is amortized to income over the remaining service lives of
the employees.
In: Accounting
ChalaCorporation,whichbeganbusinessin2019appropriately,usestheinstallment
salesmethodofaccountingforitsinstallmentsales.Thefollowingdatawereobtained
forsalesduring2019and2020: 2019 2020
Kshs Kshs
Installmentsales 360,000 350,000
Costofinstallmentsales 234,000 245,000
Cashcollectionsoninstallmentsalesduring:
2019 150,000 100,000
2020 - 120,000Required:
Preparesummaryjournalentriesfor2019and2020toaccountfortheinstallmentsalesand
cash
collections.Thecompanyusesperpetualinventorysystem.
In: Accounting