The following balances were taken from the books of Oriole Corp. on December 31, 2020.

Assume the total effective tax rate on all items is 20%.

Prepare a multiple-step income statement; 100,000 shares of common stock were outstanding during the year. (Round earnings per share to 2 decimal places, e.g. 1.48.)

how would I prepare a classfied balance sheet with this ?

Consider a private value auction with 2 bidders. The auction is carried out as a second price sealed bid auction where in case of a tie between the bidders, the winner is selected by a coin toss. The seller has valuation of the good of zero and will accept any bid at or greater than zero. Each bidder knows his/her own valuation, v, and does not know the valuation of the other bidder. It is common knowledge that the bidder valuations are drawn from the following distribution: The valuation is a realization from the following set of values {0.25, 0.5, 0.75}. Each realization is equally likely.

1. State a dominant strategy equilibrium of the auction by starting the bidding strategies of each bidder as a function of the bidder’s valuation.

2. What is the expected revenue of the seller? (For this work out the 9 different possible value realization combinations for the bidders. Each one has probability 1/9 of being realized. Work out the revenue to the seller in each case and take the average. Possible value realization combinations are (v1, v2) = (0.25, 0.25), (v1, v2) = (0.25, 0.5), and so on...).

Cryan Jeep Tours operates jeep tours in the heart of the Colorado Rockies. The company bases its budgets on two measures of activity (i.e., cost drivers), namely guests and jeeps. One vehicle used in one tour on one day counts as a jeep. Each jeep has one tour guide. The company uses the following data in its budgeting:

In May, the company budgeted for 497 guests and 202 jeeps. The company's income statement showing the actual results for the month appears below:

A summarised comparative statement of financial position of Kangaroo Ltd is presented below. 30-Jun-20 30-Jun-19 Cash $80,000 $60,000 Accounts Receivable $65,000 $90,000 Inventories $58,000 $62,000 Prepayments $10,000 $12,000 Land $90,000 $90,000 Plant $380,000 $300,000 Accumulated Depreciation ($70,000) ($57,000) $621,000 $557,000 Accounts Payable $45,000 $52,000 Long-term Borrowings $170,000 $200,000 Share Capital $280,000 $230,000 Retained Earnings $126,000 $75,000 $621,000 $557,000 Additional information There were no disposals of land or plant during the year. A $30 ,000 borrowing was settled through the issue of ordinary shares. There were no other repayments of borrowings. Profit for the year was $120 ,000, interest expense was $24,000, and income tax paid was $20,000. There were no items of other comprehensive income. A $49,000 dividend was paid during the year. Sales revenue for the year was $600 ,000. There was no other revenue. Required Prepare the operating activities section of the statement of cash flows using the indirect method of presentation for the year ended 30 June 2020

Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 16,200 portable grills, 59,400 stationary grills, and 5,400 smokers. Information on the three models is as follows:

Total fixed cost is $2,078,310.

Capital Budgeting

California Health Center, a for-profit hospital, is evaluating the purchase of a new diagnostic equipment, which costs $600,000 and has an expected life of five years.   Average investments in inventory and accounts receivable will be $50,000 and $200,000 respectively, while the average accounts payable balance will be $30,000. The expected before-tax salvage value of the equipment after five years’ use is $200,000. The equipment will produce an annual revenue of $300,000 each year in years 1-3, and $350,000 in years 4 and 5.

All costs excluding depreciation: 22% of revenue

Depreciation method: MACRS

Year    Depreciation

1          20%

2          32%

3          19%

4          12%

5          11%

6          6%

You will multiply the depreciation percentage for each year by the purchase price to get the depreciation expense in dollars for that year.

Tax rate: 21%

Estimate the project’s cash flows for the next five years and calculate the project’s payback period, NPV and IRR.   The cost of capital is 11% and the required payback is three years. Indicate whether the project will be acceptable by each of the three techniques.

Texas-Q Company produces and sells barbeque grills. Texas-Q sells three models: a small portable gas grill, a larger stationary gas grill, and the specialty smoker. In the coming year, Texas-Q expects to sell 19,200 portable grills, 43,200 stationary grills, and 4,800 smokers. Information on the three models is as follows:

Total fixed cost is $2,175,120.

*SOLVE USING THE STRAIGHT-LINE METHOD*

Universal Foods issued 12% bonds, dated January 1, with a face amount of $175 million on January 1, 2021 to Wang Communications. The bonds mature on December 31, 2035 (15 years). The market rate of interest for similar issues was 14%. Interest is paid semiannually on June 30 and December 31. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
1. to 3. Prepare the journal entries to record the purchase of the bonds by Wang Communications on January 1, 2021, interest revenue on June 30, 2021 and interest revenue on December 31, 2028. (Round final answers to the nearest whole dollars. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

1. Record the investment in bonds on January 1, 2021.

2. Record the interest on June 30, 2021.

3. Record the interest on December 31, 2028.