Trout Swimming School uses a sales journal, purchases journal, cash receipts journal, cash payments journal and a general journal. The business also maintains subsidiary ledgers for accounts receivable and accounts payable, in addition to the related control accounts (ignore GST). The relevant account balances as of December 31, 2019 were as follows.

The accounts receivable and accounts payable subsidiary ledger balances were as follows.

.

The following transactions occurred during the first quarter of 2020.

Required

1. Enter the first quarter’s transactions in the appropriate journals. Refer to the provided Chart of Accounts for the appropriate account names.
2. Prepare a trial balance as at March 31, 2020.

On January 1, 2019, Monica Company acquired 80 percent of Young Company’s outstanding common stock for $888,000. The fair value of the noncontrolling interest at the acquisition date was $222,000. Young reported stockholders’ equity accounts on that date as follows:

In establishing the acquisition value, Monica appraised Young's assets and ascertained that the accounting records undervalued a building (with a five-year remaining life) by $90,000. Any remaining excess acquisition-date fair value was allocated to a franchise agreement to be amortized over 10 years.

During the subsequent years, Young sold Monica inventory at a 20 percent gross profit rate. Monica consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the three years after this business combination was created amounted to the following:

In addition, Monica sold Young several pieces of fully depreciated equipment on January 1, 2020, for $58,000. The equipment had originally cost Monica $94,000. Young plans to depreciate these assets over a 5-year period.

In 2021, Young earns a net income of $200,000 and declares and pays $65,000 in cash dividends. These figures increase the subsidiary's Retained Earnings to a $960,000 balance at the end of 2021.

Monica employs the equity method of accounting. Hence, it reports $154,640 investment income for 2021 with an Investment account balance of $1,062,800. Prepare the worksheet entries required for the consolidation of Monica Company and Young Company. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

You have obtained the fi nancial statements of Day Manufacturing and Night Production, two companies

in the manufacturing industry. You have acquired the following information for an analysis of the companies

(amounts in thousands):

Day Manufacturing Night Production

2020 2019 2020 2019

Cash $ 24 $ 21 $ 37 $ 35

Accounts receivable 273 196 280 230

Inventory 182 140 154 120

Prepaid expenses 7 6 5 7

Capital assets (net) 480 400 322 224

Current liabilities 154 175 170 140

Long-term debt 280 308 288 236

Share capital—common shares 140 140 120 120

Retained earnings 392 140 220 120

Sales (all credit sales) 2,660 1,820 1,750 1,680

Cost of goods sold 1,750 1,260 1,274 1,260

Interest expense 28 31 29 24

Taxes (30%) 108 78 90 78

Net income 252 182 210 182

a. Calculate the following ratios for the two companies for the two years. For 2019, assume the current

year amount is equal to the average where required.

i. Current ratio

ii. Accounts receivable turnover

iii. Inventory turnover

iv. Debt to equity

v. Interest coverage

vi. Gross margin

vii. Profi t margin

viii. Return on assets

ix. Return on equity

b. Write a brief analysis of the two companies based on the information given and the ratios calculated.

Be sure to discuss issues of short-term liquidity, activity, solvency, and profi tability. Which

company appears to be the better investment for the shareholder? Explain. Which company appears

to be the better credit risk for the lender? Explain. Is there any other information you would like to

have to complete your analysis?

On January 1, 2019, Monica Company acquired 70 percent of Young Company’s outstanding common stock for $700,000. The fair value of the noncontrolling interest at the acquisition date was $300,000.

Young reported stockholders’ equity accounts on that date as follows:

In establishing the acquisition value, Monica appraised Young's assets and ascertained that the accounting records undervalued a building (with a five-year remaining life) by $40,000. Any remaining excess acquisition-date fair value was allocated to a franchise agreement to be amortized over 10 years.

During the subsequent years, Young sold Monica inventory at a 30 percent gross profit rate. Monica consistently resold this merchandise in the year of acquisition or in the period immediately following. Transfers for the three years after this business combination was created amounted to the following:

In addition, Monica sold Young several pieces of fully depreciated equipment on January 1, 2020, for $47,000. The equipment had originally cost Monica $72,000. Young plans to depreciate these assets over a five-year period.

In 2021, Young earns a net income of $250,000 and declares and pays $80,000 in cash dividends. These figures increase the subsidiary's Retained Earnings to a $850,000 balance at the end of 2021. During this same year, Monica reported dividend income of $56,000 and an investment account containing the initial value balance of $700,000. No changes in Young's common stock accounts have occurred since Monica's acquisition.

1. Prepare the 2021 consolidation worksheet entries for Monica and Young.

2. Compute the net income attributable to the noncontrolling interest for 2021

.

1. (8 pts) Endotoxin is a major cause of septic shock. Describe
   1. (2 pts) where endotoxin comes from,

2. (4 pts) the specific steps the innate and acquired immune system takes to respond to endotoxin in the blood stream. Explain the steps from the recognition of endotoxin by the innate immune system to the response by the acquired immune system.

3. (2 pts) how the immune system response leads to septic shock.

On January 1, Lorain Corporation had 2,000 shares of $5 par common stock authorized and outstanding. These shares were originally issued at a price of $26 per share. In addition, 500 shares of $50 par preferred stock were outstanding. These were issued at a price of $75 per share. During the year, the following stock transactions occurred:

1. March 3: Lorain reacquired 100 shares of its own common stock at a cost of $24 per share.

2. April 27: It sold 25 shares of the common stock acquired on March 3 for $33 per share.

3. July 10: It sold 25 shares of the common stock acquired on March 3 for $22 per share.

4. October 12: It retired the remaining shares acquired on March 3.

What does it mean when an acquisition is unable to achieve synergy?

Which of the following statements best explains how shareholders are affected by acquisitions?

The four determinants of national advantage are factors of production; demand conditions; firm strategy, structure, and rivalry; and:

Amortization and Impairment Testing of Identifiable Intangible Assets

During the year ended July 30, 2016, Cisco Systems, Inc. acquired the following identifiable intangible assets through its purchase of two companies (in thousands):

Cisco acquired Lancope, Inc. in December 2015, and Jasper Technologies, Inc. in March 2016. Cisco separately tests identifiable intangibles acquired from each company for impairment, and collects the following information to conduct impairment tests at the end of fiscal 2016 (in thousands):

Required

a. Calculate amortization expense for the above identifiable intangibles for fiscal 2016. Intangibles are amortized on a straight-line basis starting in the month following acquisition.

• Round answers to the nearest whole number.
• Enter answers in thousands.

b. Calculate impairment losses for fiscal 2016.

• Round answers to the nearest whole number.
• Enter answers in thousands.

c. Determine the amounts reported on Cisco’s fiscal 2016 balance sheet for technology, customer relationships, and in-process R&D.

• Round answers to the nearest whole number.
• Enter answers in thousands.

Amortization and Impairment Testing of Identifiable Intangible Assets

During the year ended July 30, 2016, Cisco Systems, Inc. acquired the following identifiable intangible assets through its purchase of two companies (in thousands):

Cisco acquired Lancope, Inc. in December 2015, and Jasper Technologies, Inc. in March 2016. Cisco separately tests identifiable intangibles acquired from each company for impairment, and collects the following information to conduct impairment tests at the end of fiscal 2016 (in thousands):

Required

a. Calculate amortization expense for the above identifiable intangibles for fiscal 2016. Intangibles are amortized on a straight-line basis starting in the month following acquisition.

• Round answers to the nearest whole number.
• Enter answers in thousands.

b. Calculate impairment losses for fiscal 2016.

• Round answers to the nearest whole number.
• Enter answers in thousands.

c. Determine the amounts reported on Cisco’s fiscal 2016 balance sheet for technology, customer relationships, and in-process R&D.

• Round answers to the nearest whole number.
• Enter answers in thousands.

Network Security: A process can be in one of three states: running,
ready, and blocked. A job is a kind of process
and can be in one of three states: foreground, background, and paused.

What’s the similarity between the three process states and the three job states?

Hint: It’s not a one-to-one mapping.