Given below are the Statements of Financial Position and the Statement of Profit or Loss for BA107 Trading Bhd:

2020

(RM)

Sales 505,000

Cost of sales (105,000)

Gross profit 400,000   

Expenses   (252,000)

Profit before tax 148,000

Taxation (40,000)

Profit after tax   108,000

2020 2019

(RM) (RM)

Property, plant and equipment 355,000 300,000

Trade receivables 80,000 75,000

Inventory 145,000 120,000

Bank balance   24,500      15,000

604,500    510,000

Ordinary share capital 250,000 250,000

Retained profits 222,500    140,000

472,500 390,000

Other payables 87,000 90,000

Trade payable 45,000      30,000

604,500    510,000

Additional information:

(a) Dividend paid by the Company was RM25,500.

(b) The dividend declared have all been paid. Included in other payables of 2020 is an amount of current tax payable of RM20,000.

  
(c) Depreciation was RM32,000 and a non-current asset with carrying amount of RM12,500 was disposed of for a cash consideration of RM40,500 during the year. The depreciation and gain on disposal of property, plant and equipment are included in “Expenses”.

Required:

Prepare the Statement of Cash Flows for the year ended 31 December 2020 by using the direct and indirect methods.

1. The table given below summarizes the 2019 income statement and end-year balance sheet of Drake’s Bowling Alleys. Drake’s financial manager forecasts a 10% increase in sales and costs in 2020. The ratio of sales to average assets is expected to remain at 0.40. Interest is forecasted at 5% of debt at the start of the year. At the end of 2018 debt was $2,400,000 and assets were $6,960,000. (10 points)

a. What is the expected level of assets at the end of 2020?

b. If the company pays out 50% of net income as dividends, how much cash will Drake need to raise in the capital markets in 2020? Assumes debt remains constant.

c. If Drake is unwilling to make an equity issue, what will be the debt ratio at the end of 2020?

(show all work)

Larkspur Company began operations on January 1, 2019, adopting the conventional retail inventory system. None of the company’s merchandise was marked down in 2019 and, because there was no beginning inventory, its ending inventory for 2019 of $38,000 would have been the same under either the conventional retail system or the LIFO retail system.

On December 31, 2020, the store management considers adopting the LIFO retail system and desires to know how the December 31, 2020, inventory would appear under both systems. All pertinent data regarding purchases, sales, markups, and markdowns are shown below. There has been no change in the price level.

Cost

Retail

Inventory, Jan. 1, 2020

$38,000$59,600

Markdowns (net)

12,800

Markups (net)

22,000

Purchases (net)

129,900175,400

Sales (net)

166,400

Determine the cost of the 2020 ending inventory under both (a) the conventional retail method and (b) the LIFO retail method. (Round ratios for computational purposes to 2 decimal place, e.g. 78.72% and final answers to 0 decimal places, e.g. 28,987.)

LCI Cable Company grants 1.5 million performance stock options to key executives at January 1, 2018. The options entitle executives to receive 1.5 million of LCI $1 par common shares, subject to the achievement of specific financial goals over the next four years. Attainment of these goals is considered probable initially and throughout the service period. The options have a current fair value of $20 per option.

Required:
1. & 2. Record the necessary journal entries.
3. Suppose at the beginning of 2020, LCI decided it is not probable that the performance objectives will be met. Prepare the appropriate entries on December 31 of 2020 and 2021.

1. Record the grant of 1.5 million performance stock options when the options have a fair value of $20 per option as on January 01, 2018.

2. Record the entry that would be made on December 31 of 2018, 2019, 2020 and 2021.

3a. Prepare any necessary entry on December 31, 2020 assuming that it is not probable that the performance objectives will be met.

3b. Prepare any necessary entry on December 31, 2021 assuming that it is not probable that the performance objectives will be met

Swift Corp., a capital goods manufacturing business that started on January 4, 2019, and operates on a calendar-year basis, uses the cost recovery method of profit recognition in accounting for all its sales. The following data were taken from the 2019 and 2020 records.

                                                                      2019                   2020

Installment sales                                 $800,000         $1,000,000

Cost of sales                                         $600,000         $700,000

Cash collections on sales of 2019 $500,000         $300,000

Cash collections on sales of 2020        –0–                $600,000

Instructions: Using cost recovery method

(a) Compute the amount of realized gross profit to be recognized in each year

(b) State where the balance of Unrealized Gross Profit in each year

answer with exel

At December 31, 2019, Shiga Naoya Corporation had the following stock outstanding.

During 2020, Shiga Naoya did not issue any additional common stock. The following also occurred during 2020.

Compute earnings per share data as it should appear in the 2020 income statement of Shiga Naoya Corporation.

1. The information below is about ACT Fast Enterprise for the year ended 31 December 2020.

Debtors (before bad debt write off)                                            RM240,000

Bad debt write off                                                                     RM5,000

Balance Allowance Doubtful Debt Account on 31 Dec 2019        RM500 (credit)

Based on experience, ACT Fast Enterprise expects that uncollectible debt is 5% from the debtors balance.

Required:

1. Show the journal entries for all relevant transactions above.

2. Prepare the ledger for allowance for doubtful debt showing balance on 31 December 2020.

3. Show extracts of Profit or Loss Account for the year ended 31 December 2020 and extract of the Balance Sheet as of that date.

Ramakrishnan, Inc., reported 2021 net income of $45 million and depreciation of $2,950,000. The top part of Ramakrishnan, Inc.’s, 2021 and 2020 balance sheets is reproduced below (in millions of dollars): 2021 2020 2021 2020 Current assets: Current liabilities: Cash and marketable securities $ 50 $ 17 Accrued wages and taxes $ 31 $ 26 Accounts receivable 85 83 Accounts payable 95 90 Inventory 173 126 Notes payable 90 85 Total $ 308 $ 226 Total $ 216 $ 201

Calculate the 2021 net cash flow from operating activities for Ramakrishnan, Inc. (Enter your answer in dollars not in millions.)

More Americans are approving of the way that Donald Trump is managing his job of being President of the United States of America. In an American Research Group poll of February 2020, American voters were at 37% approval, 59% disapproval. As of March 2020, 35% approved of the way President Trump was handling his job and 62% were disapproved. The poll consisted of 246 Republicans, 358 Democrats, 391 independents, and 105 non-voters and was sample dates were taken from March 16^th to March 19^th of 2020

1. State the confidence interval estimate in two ways:
   • the upper and lower limits
   • the sample proportion ± the error term
     (don’t forget to include the confidence level)

The prevalence of obesity remains high and affects Americans of all ages. Review the following resource: • United States Department of Health and Human Services (2017). 2020 Topics and objectives: Nutrition and weight status (Links to an external site.)Links to an external site.. Retrieved from: https://www.healthypeople.gov/2020/topics-objectives/topic/nutrition-and-weight-status Initial Discussion Post: • Identify two (2) contributing factors to childhood obesity. • List three (3) ways the nurse could intervene to promote the nutrition and weight status objectives for Healthy People 2020. • Discuss why these objectives are important for individuals or communities. • Identify two (2) contributing factors to adult obesity.