LO4 Under the cash basis of accounting, revenue is recorded when it is received in cash, and expenses are recorded when they are paid in cash. Under the accrual basis of accounting, revenue is recorded when earned, even if cash is received at an earlier or a later date, and expenses are recorded when incurred, even if cash is to be paid at an earlier or a later date. Considering the following events, match which month the revenue or expenses would be recorded using the accounting method specified.

Collins Company uses the accrual basis of accounting. Crane prepays cash in November for insurance that covers the following month, December, only.

Emily's Natural Company uses the accrual basis of accounting. Emily’s Natural makes a sale to a customer in June but does not expect payment until September.

Patricia's Printing uses the cash basis of accounting. Patricia’s receives cash from customers in March for services to be performed in June.

Wesley's Travel uses the cash basis of accounting. Wesley prepays cash in January for insurance that covers the following month, February, only.

a)January

b)March

c)June

)December

Question 4

Acme Publishing has the following (independent) investment opportunities:

The optimal capital structure calls for financing all projects with 60 per cent ordinary shares and 40 per cent debt. The following information applies to the future financial position of Acme Publishing:

• The most recent dividend (DO) was $0.35
• The growth rate of earnings and dividends is 6 per cent
• The current price of shares is $4.60
• If new shares are issued, a flotation cost of 10% will be incurred
• The company can borrow up to $10,000 from its bank at an interest rate of 12%. For any amount of debt above $10,000, the interest rate is 14%
• The company’s dividend pay out ratio is 40%
• The company is in a 30% tax bracket
• Acme Publishing earned $35,000 last year before tax

Required

In which of the projects (if any) should Acme Publishing invest, and what is its capital budget and weighted average cost of capital (WACC)?

Astro Corporation was started with the issue of 5,300 shares of $11 par stock for cash on January 1, 2018. The stock was issued at a market price of $20 per share. During 2018, the company earned $58,050 in cash revenues and paid $38,894 for cash expenses. Also, a $3,300 cash dividend was paid to the stockholders.

Required:

Prepare an income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Astro Corporation’s 2018 fiscal year.

A corporation has $900,000 of debt outstanding, and it pays an interest rate of 6 percent annually on its bank loan. The firm's annual sales are $4,200,000; its average tax rate is 30 percent; and its net profit margin on sales is 5 percent. If the company does not maintain a times interest earned (TIE) ratio of at least 4 times, its bank will refuse to renew its loan, and bankruptcy will result. What is this firm's current TIE ratio?

Astro Corporation was started with the issue of 5,500 shares of $9 par stock for cash on January 1, 2018. The stock was issued at a market price of $16 per share. During 2018, the company earned $64,100 in cash revenues and paid $42,947 for cash expenses. Also, a $3,900 cash dividend was paid to the stockholders.

Required:

Prepare an income statement, statement of changes in stockholders’ equity, balance sheet, and statement of cash flows for Astro Corporation’s 2018 fiscal year.

On January 1, 2020, Cullumber Corporation had $1,125,000 of common stock outstanding that was issued at par. It also had retained earnings of $746,500. The company issued 40,000 shares of common stock at par on July 1 and earned net income of $410,000 for the year. Journalize the declaration of a 16% stock dividend on December 10, 2020, for the following independent assumptions. a. Par value is $10, and market price is $19. b. Par value is $5, and market price is $20.

Dear staff:

This is Yu.zhou. May anybody who is good at the Health Professionalism class and had read the book entitled "The Immortal Life of Henrietta Lacks" help me with the question below. I would like the questions be answered as one or several paragraphs. Thank you, sincerely.

Based on the book "The Immortal Life of Henrietta Lacks", answer the questions below:

What does this book tell us about the history of science and how science has progressed since the 1950s? After reading this book and considering the events it details, what do you think are key factors that influence scientific progress?

How would an ideal (non-real world) anti-trust law differ in its
treatment of implicit and explicit collusion? By treatment, you
can include the illegality, the punishments or any evidential thresholds
in your ideal law. [Only the law is ideal, it should face the
type of firm behaviors we see in the US economy.] Justify your
answer. Explain the differences in how these types of collusion
present themselves to either regulators who must decide which
cases to investigate and the courts. Are there any issues with
handling implicit collusion more aggressively than the current law
does?

Find information on the central bank in the US and find the comparable institution for the country you have chosen. What role does the central bank play in each country; how much power does it have, independent of the government? In other words, who makes the monetary policy decisions in each country? Provide an explanation of the material that you present. In particular, discuss how monetary policy is undertaken in the country and the central bank's role in this. What types of institutions does this central bank have to affect the working of the economy (just as an example, are there groups like the FOMC in the country you have chosen).

10. a. (2) What is the Big Mac Index? b.(3) Suppose the price of a Big Mac in the EU is 4.5 € and the price of a Big Mac in the US is $3.25. What is the implied exchange rate? Explain how you calculated the rate. c. (3) Suppose the actual exchange rate is $1=1€. According to the Big Mac Index, is the euro overvalued or undervalued. d. (3) If you are a currency investor who has confidence in the Big Mac Index, should you buy dollars or euros? Explain. e. (3) What are some limitations of the Big Mac index?