1. Charlotte, Inc. began business on January 1, 2017. Its pretax financial income for the first two year was as follows:

The following Items cased the only differences between pretax financial income and taxable income.

i. In 2017, the company collected $105,000 of rent; of this amount, $35,000 was earned in 2017; the other $70,000 will be earned equally over the 2018-19 period. The full $105,000 was included in the taxable income in 2017.

ii. In 2017, the company reported depreciation expense in its financial statements of $80,000. Depreciation expense for tax purposes was 110,000. The difference will revere evenly over the next three years (2018-2020).

The tax rate in 2017 is 30% and no tax rate changes are enacted during the three year period.

Required:

a. Determine taxable income for 2017 and 2018.

b. Determine the deferred income taxes at the end of 2017, and prepare the journal entry to record income taxes for 2017.

c. Determine the deferred income taxes at the end of 2018, and prepare the journal entry to record income taxes for 2018.

d. Prepare the Income Tax section of the income statement, starting with Pretax Net Income and ending with Net Income after Taxes for both 2017 and 2018.

1. Trend Analysis

   Critelli Company has provided the following comparative information:

   	Year 5		Year 4		Year 3		Year 2		Year 1
   Net income	$1,283,300		$1,106,300		$929,700		$794,600		$673,400
   Interest expense	436,300		398,300		344,000		262,200		208,800
   Income tax expense	410,656		309,764		260,316		206,596		161,616
   Average total assets	7,676,786		6,777,477		5,789,545		4,915,349		4,181,043
   Average stockholders' equity	2,629,713		2,353,830		2,056,858		1,822,477		1,595,735

   You have been asked to evaluate the historical performance of the company over the last five years.

   Selected industry ratios have remained relatively steady at the following levels for the last five years:

   	Industry Ratios
   Return on total assets	22.1 %
   Return on stockholders’ equity	45.6 %
   Times interest earned	4.6

   Instructions:

   Calculate three ratios for Year 1 through Year 5. Round to one decimal place.

   a. Return on total assets:

   Year 5	%
   Year 4	%
   Year 3	%
   Year 2	%
   Year 1	%

   b. Return on stockholders’ equity:

   Year 5	%
   Year 4	%
   Year 3	%
   Year 2	%
   Year 1	%

   c. Times interest earned:

   Year 5
   Year 4
   Year 3
   Year 2
   Year 1

Trend Analysis

Critelli Company has provided the following comparative information:

You have been asked to evaluate the historical performance of the company over the last five years.

Selected industry ratios have remained relatively steady at the following levels for the last five years:

Instructions:

Calculate three ratios for Year 1 through Year 5. Round to one decimal place.

a. Return on total assets:

b. Return on stockholders’ equity:

c. Times interest earned:

Aritelli Company has provided the following comparative information:

You have been asked to evaluate the historical performance of the company over the last five years.

Selected industry ratios have remained relatively steady at the following levels for the last five years:

Instructions:

Calculate three ratios for Year 1 through Year 5. Round to one decimal place.

a. Return on total assets:

b. Return on stockholders' equity:

c. Times interest earned:

Managing a diverse workforce is challenging task, especially in the context of effectuating change. Due to advancements of technology and rapid globalization, the world is getting smaller and workforce diversity is enriching the game.

Individual behaviour at workplace is influenced by many variables. Assuming you are serving as a senior consultant to a multinational company in a downsizing project (make the organization smaller by shedding staff) describe your suggestions with sufficient examples. (600 words)

Assignment 02

Managing a diverse workforce is challenging task, especially in the context of effectuating change. Due to advancements of technology and rapid globalization, the world is getting smaller and workforce diversity is enriching the game.

Individual behaviour at workplace is influenced by many variables. Assuming you are serving as a senior consultant to a multinational company in a downsizing project (make the organization smaller by shedding staff) describe your suggestions with sufficient examples.

Activity 2. Now that you know the essential terms in climate and biodiversity, let us try to check your understanding of these terms. In the space provided, differentiate the following:

1.   Deciduous forest from evergreen forest.

2.   Woodland from shrubland

3. Tropical rainforest from tropical seasonal forest

4. Savanna from thornwood

5. Weather and climate

Supreme Fish is a company involved in fish farming in Vietnam. Its products are sold to supermarkets as well as restaurants throughout the world. Supreme Fish has a global market share of 40% for this type of fish. Supreme Fish has a US$150 million, 15 year bond issued 2 years ago. The bond pays a premium of 500 basis points over the SOFR. The bond is not rated. However, based on its yield, an equivalent rating would be BB. An institutional investor intends to sell its holdings of US$5 million of the bonds. As a buy-side bond analyst, you have been tasked to analyse the suitability of the bond for your fund.

Assess the credit risk issues related to the bond.

Almaden Hardware Store sells two product categories, tools and paint products. Information pertaining to its 2018 year-end inventory is as follows:

Required:
1. Determine the carrying value of inventory at year-end, assuming the lower of cost or net realizable value (LCNRV) rule is applied to (a) individual products, (b) product categories, and (c) total inventory.

2.

Assuming that the company reports an inventory write-down as a line item in the income statement, for each of the LCNRV applications determine the amount of the loss.

Do larger universities tend to have more property crime? University crime statistics are affected by a variety of factors. The surrounding community, accessibility given to outside visitors, and many other factors influence crime rate. Let x be a variable that represents student enrollment (in thousands) on a university campus, and let y be a variable that represents the number of burglaries in a year on the university campus. A random sample of n = 8 universities in California gave the following information about enrollments and annual burglary incidents.

(b) Use a calculator to verify that Σx = 149.0, Σx² = 3193.22, Σy = 243, Σy² = 9985 and Σxy = 5280.8.

Compute r. (Round to 3 decimal places.)