The following are questions for discussion assignment. Could you please assist me with these questions? Thank you.

Rite Aid Corporation; NYSE: RAD

Income Statement: Listed as Consolidated of Operations, page 76

Balance Sheet: Listed as Consolidated Balance Sheets, page 75

Statement of Stockholder's Equity: Listed as Consolidated Statements of Stockholders' Equity, page 78

Statement of Cash Flows: Listed as Consolidated Statements of Cash Flows, page 79

https://www.sec.gov/Archives/edgar/data/84129/000104746918003207/a2235393z10-k.htm

As we know that generally economic exposure can be managed by balancing sensitivity of revenue and expenses to exchange rate fluctuations. To accomplish this, however, the firm must first recognize how its revenue and expenses are affected by exchange rate fluctuations which in turn will affect the firm’s future cash flow. For some firms, revenue is more susceptible. These firms are most concerned that their home currency will appreciate against foreign currencies since the unfavourable effects on revenue will more than offset the favourable effects on expenses. Conversely, firms whose expenses are more sensitive to exchange rates than their revenue are most concerned that their home currency will depreciate against foreign currencies. When firms reduce their economic exposure, they reduce not only these unfavourable effects but also the favourable effects if the home currency value moves in the opposite direction. After comprehending the economic exposure assessment from the various perspectives, you are required to answer all the questions.

Smith Co. operates business in the United States and New Zealand. In attempting to assess its economic exposure, it compiled the following information.

i.    Smith’s U.S. sales are slightly influenced by the New Zealand dollar (NZ$) value, due to confronts rivalry from New Zealand exporters. It estimates the U.S. sales based on the following three exchange rate scenarios:

                                                                               Revenue from U.S. Business

                        Exchange Rate of NZ$                             (in millions)

                                   NZ$ = $.48                                              $100

                                   NZ$ =   .50                                                105

                                   NZ$ =   .54                                                110

      ii.    Revenues for Smith Co. in New Zealand dollars are projected to be NZ$600 million.

      iii.   Cost of goods sold is projected at $60 million from the U.S. materials purchase and NZ$100 million from the New Zealand materials purchase.

      iv. Fixed operating expenses are valued at $30 million.

v.   Variable operating expenses are projected at 20 percent of total sales (after including New Zealand sales, translated to a dollar amount).

vi. Interest expense is projected at $20 million on prevailing U.S. loans, and the company has no existing New Zealand loans.

Questions:

1. Generate a forecasted income statement for Smith Co. under each of the three exchange rate scenarios.                                                              

Also answer the following questions based on the rubric.                    

2. Discuss how Smith’s projected earnings before taxes are influenced by the vital of exchange rate forecasting. Justify your viewpoints.                                                   
3. Describe how Smith Co. can restruc­ture its operations to minimize the earnings sensitivity to the degree of exchange rate movements without reducing its business volume in New Zealand.                                                                                                   

As we know that generally economic exposure can be managed by balancing sensitivity of revenue and expenses to exchange rate fluctuations. To accomplish this, however, the firm must first recognize how its revenue and expenses are affected by exchange rate fluctuations which in turn will affect the firm’s future cash flow. For some firms, revenue is more susceptible. These firms are most concerned that their home currency will appreciate against foreign currencies since the unfavourable effects on revenue will more than offset the favourable effects on expenses. Conversely, firms whose expenses are more sensitive to exchange rates than their revenue are most concerned that their home currency will depreciate against foreign currencies. When firms reduce their economic exposure, they reduce not only these unfavourable effects but also the favourable effects if the home currency value moves in the opposite direction. After comprehending the economic exposure assessment from the various perspectives, you are required to answer all the questions.

Smith Co. operates business in the United States and New Zealand. In attempting to assess its economic exposure, it compiled the following information.

      i.    Smith’s U.S. sales are slightly influenced by the New Zealand dollar (NZ$) value, due to confronts rivalry from New Zealand exporters. It estimates the U.S. sales based on the following three exchange rate scenarios:

                                                                               Revenue from U.S. Business

                        Exchange Rate of NZ$                             (in millions)

                                   NZ$ = $.48                                              $100

                                   NZ$ =   .50                                                105

                                   NZ$ =   .54                                                110

      ii.   Revenues for Smith Co. in New Zealand dollars are projected to be NZ$600 million.

      iii.   Cost of goods sold is projected at $60 million from the U.S. materials purchase and NZ$100 million from the New Zealand materials purchase.

      iv. Fixed operating expenses are valued at $30 million.

v.   Variable operating expenses are projected at 20 percent of total sales (after including New Zealand sales, translated to a dollar amount).

vi. Interest expense is projected at $20 million on prevailing U.S. loans, and the company has no existing New Zealand loans.

Questions:

1. Generate a forecasted income statement for Smith Co. under each of the three exchange rate scenarios.   

Also answer the following questions based on the rubric.

2. Discuss how Smith’s projected earnings before taxes are influenced by the vital of exchange rate forecasting. Justify your viewpoints.                                                          

C.Describe how Smith Co. can restruc­ture its operations to minimize the earnings sensitivity to the degree of exchange rate movements without reducing its business volume in New Zealand.      

Income Statement for Walgreens

All numbers in thousands

Case Development began operations in December 2016. When property is sold on an installment basis, Case recognizes installment income for financial reporting purposes in the year of the sale. For tax purposes, installment income is reported by the installment method. 2016 installment income was $320,000 and will be collected over the next three years. Scheduled collections and enacted tax rates for 2017–2019 are as follows:

You have joined a northern mail order company selling winter coats. You have the coat sales by quarter for the last three years.

Year 1 Qtr 1, 24 Winter Coats Qtr 2, 12 Qtr 3, 20 Qtr 4, 36 Year 2 Qtr 1, 28 Winter Coats Qtr 2, 10 Qtr 3, 22 Qtr 4, 40 Year 3 Qtr 1, 32 Winter coats Qtr 2, 14 Qtr 3, 27 Qtr 4, 44

Use linear regression to forecast the total coats to be sold in year 4 in thousands. For the equation Y = aX + b give "a".   ____ (two decimals) Give "b" ____ (two decimals)

Give the forecast for the fourth year? ____ (two decimals)Next use the quarters to generate seasonal factors. Give the season factor for quarter one? ____ (two decimals)

Give the season factor for quarter two? _____ (two decimals)Give the season factor for quarter three? _____ (two decimals) Give the season factor for quarter four? ______ (two decimals) Give the forecasted sales for quarter one? ______ (All answers remaining to two decimals) Quarter two? ______Quarter three? ______Quarter four? _____

The information below for questions (a) and (b) Toyoda Inc. is a Japanese firm located in Tokyo. The firm collected JPY 190,000 from customers in 2018. Of the amount collected, JPY 40,000 was from revenue accrued from services performed in 2017, and JPY 20,000 was received in advance for 2019 revenue. Furthermore, the firm incurred JPY 78,000 of expenses in 2018, which will not be paid until 2019. The firm also incurred JPY 29,000 of expenses in 2018 which had been paid in 2017. The firm paid JPY 150,000 for expenses in 2018. Of the amount paid, JPY 50,000 was for expenses incurred on account in 2017, JPY 22,000 was paid in advance for 2019 expenses. The firm also earned JPY 60,000 of revenue in 2018, which will not be collected until 2019. The firm also earned JPY 25,000 of revenue in 2018 which had been collected in 2017.

(a) Compute 2018 Toyoda Inc.’s cash-basis net income! (2 points)

(b) Compute 2018 Toyoda Inc.’s accrual-basis net income! (3 points)

(c) Kishida-san is the CEO of Hyakuen Inc. He asks you, as the firm's accounting manager, regarding cash issues that he was confused. He was unsure whether cash equivalents are the same as cash. He was also unsure of how the restricted cash funds shall be reported on the balance sheet. Explain! (3 points)

(d) Herr Lahm is the CEO of Danke Mobile Inc. Danke Mobile Inc. is a German firm located in Munich. You were hired as the Danke Mobile Inc.'s accounting manager. You have just presented the GAAP of receivables. However, Herr Lahm could not understand why cash realizable value does not decrease when an uncollectible account is written off under the allowance method. You are required to explain this point to Herr Lahm! (2 points)

Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won’t damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2019. All watches are sold for $300 each.

Required:

(a) Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2019, assuming Suzie uses FIFO to account for inventory.

(b) Prepare the gross profit section of a partial income statement for transactions related to MU watches.

Now that operations for outdoor clinics and TEAM events are running smoothly, Suzie thinks of another area for business expansion. She notices that a few clinic participants wear multiuse (MU) watches. Beyond the normal timekeeping features of most watches, MU watches are able to report temperature, altitude, and barometric pressure. MU watches are waterproof, so moisture from kayaking, rain, fishing, or even diving up to 100 feet won’t damage them. Suzie decides to have MU watches available for sale at the start of each clinic. The following transactions relate to purchases and sales of watches during the second half of 2022. All watches are sold for $503 each.

A) Calculate sales revenue, cost of goods sold, and ending inventory as of December 31, 2022, assuming Suzie uses FIFO to account for inventory.

B) Prepare the gross profit section of a partial income statement for transactions related to MU watches.

Researchers were interested in whether older parents had different parenting styles when compared to younger parents. Parenting styles were classified into one of three categories: permissive, authoritative or dictatorial. Using the information provided in the tables below, answer the following questions. 1. What are the total number of older parents in this study? 2. What was the expected count and actual count of younger parents who have dictatorial styles? 3. What was the overall sample size? 4. What percent of the sample size is not permissive (this will require a calculation)? 5. What percent of older parents were classified as authoritative?

Older parent * Younger Crosstabulation   

Older parent * Younger Crosstabulation Younger parent Total permissive authoritative dictatorial

Permissive Younger Parent Authoritative Dictatorial Total

Older parent permissive Count 23 31    27   81

Expected Count 24.6 28.8 27.5 81.0

% within Older parent 28.4% 38.3% 33.3% 100.0%

% within Younger 30.3% 34.8% 31.8% 32.4%

% of Total 9.2% 12.4% 10.8% 32.4%

authoritative    Count 27 23 31 81

Expected Count 24.6 28.8 27.5 81.0

% within Older parent 33.3% 28.4% 38.3% 100.0%

% within Younger 35.5% 25.8% 36.5% 32.4%

% of Total 10.8% 9.2% 12.4% 32.4%

Dictatorial Count 26 35 27 88

Expected Count 26.8 31.3 29.9 88.0

% within Older parent 29.5% 39.8% 30.7% 100.0%

% within Younger 34.2% 39.3% 31.8% 35.2%

% of Total 10.4% 14.0% 10.8% 35.2%

Total

Count 76 89 85 250

Expected Count 76.0 89.0 85.0 250.0

% within Older parent 30.4% 35.6% 34.0% 100.0%

% within Younger 100.0%    100.0% 100.0% 100.0%

% of Total 30.4% 35.6% 34.0% 100.0%