Khaled Co. reports SR 100000 net income for the year ended 2018, account receivables decreased by SR 7000, account payable decreased by SR 6000, and during the 2018 reported SR 10000 of depreciation expenses. What is Khaled CO. operating cash flow for 2018?

Given the following reactions:

COBr₂ (g) --------------- > CO (g) + Br₂ (g)              K = .190 at 73 °C

2 BrCl (g) ------------ > Br₂ (g) + Cl₂ (g)          K = 310 at 73 °C (estimated)

Find the equilibrium constant at 73 °C for: CO + BrCl ------- > COBr₂ + Cl₂

At 1000 K, the value of K_c = 0.032 for the reaction:

C_(s) + H₂O_(g) ⟺ CO(g) + H_2(g)

Calculate the equilibrium concentrations of H₂O, CO, and H₂ in a reaction mixture obtained by heating 6.05 mol of (H₂O) steam and excess of solid carbon in a 5.90 L container.

Globo-Chem Co. reported net sales of $600 million last year and generated a net income of $132.00 million. Last year’s accounts receivable increased by $17 million. What is the maximum amount of cash that Globo-Chem Co. received from sales last year?

The following reaction was carried out in a 3.75Lreaction vessel at 1100 K:

C(s)+H2O(g)?CO(g)+H2(g)

If during the course of the reaction, the vessel is found to contain 8.25mol of C, 13.3mol of H2O, 3.40mol of CO, and 6.00mol of H2, what is the reaction quotient Q?

In each of the following independent cases, the company closes its books on December 31.

Windsor Co. sells $511,000 of 10% bonds on March 1, 2020. The bonds pay interest on September 1 and March 1. The due date of the bonds is September 1, 2023. The bonds yield 12%. Give entries through December 31, 2021.

Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end.

Prepare all of the relevant journal entries from the time of sale until December 31, 2021. (Assume that no reversing entries were made.)

Sheridan Co. sells $365,000 of 12% bonds on June 1, 2020. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2024. The bonds yield 10%. On October 1, 2021, Sheridan buys back $120,450 worth of bonds for $127,450 (includes accrued interest). Give entries through December 1, 2022.

Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end.

Prepare all of the relevant journal entries from the time of sale until December 31, 2022. (Assume that no reversing entries were made.)

Why did citizens of Europe and North America feel that life would never be the same after WWI? What events during the War and the post-War period gave rise to the feelings of bitterness and betrayal within the civilian populations against the governments of all the warring powers? How did these events and feelings lead to the development of nihilism in postwar society (the rejection of all religious and moral principles, in the belief that life is meaningless)—characterized by the Jazz Age and “flappers,” in New York and Paris, drug addiction and pornography in Berlin, surrealism and cubism in artistic circles, and the rise of extremist political parties in Italy and Germany, etc.?

Consider the situation of United Airlines (UA), an international airline based in United States of America. As part of its business it is heavily exposed to fluctuations in the price of jet fuel and foreign exchange rates. It sells tickets in foreign currencies and has significant EUR costs. For either jet fuel costs or forex, evaluate one derivative product UA could use to hedge fluctuations in the underlying price.

• Briefly describe how the product would be used to hedge the fluctuations

• Discuss the pro’s and con’s of this product

• Suggestions and recommendations

Your answer should be no more than 500 words

It is common practice in America for companies to take out corporate-owned life insurance policies on their leaders and senior management, so that the company can offset the cost of replacing them if they die. However, some companies have begun to extend this practice to their low-level employees, which have become known as “dead peasant” policies. Although profitable for the business, it is often the case that the families of these low-level employees are not aware that this step has been taken and the practice has been outlawed in some states. Is this practice ethical for all employees? Or just top corporate leaders?

Case

Insuring the lives of top executives is common practice in corporate America. The death of a CEO or CFO can put the future of the company at risk; replacing these individuals can be costly. Large companies often take out life insurance policies, called corporate-owned life insurance (COLI) polices, on their leaders to help offset these expenses. Some firms extend their COLI policies to cover low-level employees. These policies, sometimes referred to as “dead peasant” or “dead janitor” insurance, are taken out on rank-and-file workers like convenience store clerks, electrical linemen, and cake decorators. The company pays the premiums and receives the death benefits when the employee dies. Often, workers and their surviving family members do not know that these policies exist, prompting one attorney to call these policies corporate America's “dirty little secret” (Mason, 2002). In a case featured in the film Capitalism: A Love Story, the widow of an Amegy bank project manager discovered that the bank had received a US$3.8 million payout after her husband's death. Her husband's salary, before the bank fired him, was US$70,000. (She later sued Amegy and settled for an undisclosed sum.) In another instance, Wal-Mart collected US$381,000 after the death of an employee but didn't reveal that fact to his spouse. Dead peasant policies can be profitable. The lump sum paid to the company is tax free, and in the past, the cost of the premiums could also be written off. Press reports name Proctor & Gamble, AT&T, Walt Disney, Portland General Electric, and Nestlé as corporations carrying COLI policies on low-level workers. At one time, as many as one quarter of the Fortune 500 purchased such policies, covering as many as 5–6 million workers. However, fewer companies took out such insurance after the tax laws were tightened. Wal-Mart says it discontinued its program when the tax law changed and after it lost several lawsuits. Nonetheless, policies purchased earlier may still be in place at a number of firms. Rules on dead peasant policies vary between states. Some jurisdictions outlaw this type of insurance, requiring that companies demonstrate that they have an “insurable interest” (would suffer significant loss of income) in the individual covered by the policy. Others require that employees give their consent before such insurance can be put in force. Corporations defend their use of dead peasant policies by claiming that the insurance helps defray the expenses of providing benefits for executives and of providing health insurance for employees and retirees. Critics scoff at this explanation, noting that insurance payout monies are generally mingled with general revenue. They point out that taking out such policies without the knowledge or consent of employees is disrespectful and treats workers as resources, not as human beings. Such insurance also sets up a potentially deadly conflict of interest. Employers, who are in charge of safety, now have a financial stake in the early death of employees. As one surviving spouse asked, “What incentive is there for a safe work environment if companies can do this?” (Roesler, 2003).

Discussion Questions

1.Do you think it is ethical to insure top corporate leaders? What criteria should be used in determining who should be covered?

2.Would you agree to a company-owned insurance policy on your life if it was required for employment?

3.What would Immanuel Kant say about dead peasant policies?

4.Are dead peasant policies unjust?

5.Do you think that employers have a conflict of interest if they hold life insurance policies on their employees? Why or why not?

6.Are dead peasant policies ethical if (a) workers are notified of their existence; (b) if the proceeds go towards supporting employee benefits?

7.Would you support a total ban on dead peasant policies? Why or why not?