The data in the above table give the annual salary (Salary), number of years of employment (Years), employee's age (Age), and whether or not the employee has an MBA degree (1 = yes, 0 = no) for 15 workers in a particular industry and location.

In this location and industry, what is the predicted salary of a 40 year old employee who has 10 years of employment and holds an MBA degree? Use the MLR equation.

Question 7 options:

The data in the above table give the annual salary (Salary), number of years of employment (Years), employee's age (Age), and whether or not the employee has an MBA degree (1 = yes, 0 = no) for 15 workers in a particular industry and location.

At the 0.10 level of significance, are any of the predictor variables making a statistically significant contribution to predicting Salary?

Question 8 options:

ABC Energy Corp. (the “Company”), an SEC registrant, operates three manufacturing facilities in the United States. The Company manufactures various household cleaning products at each facility, which are sold to retail customers. The U.S. government granted the Company emission allowances (EAs) of varying useable years (i.e., the years in which the allowance may be used) to be used between 2015 and 2030. Upon receipt of the EAs, the Company recorded the EAs as intangible assets with a cost basis of zero, in accordance with the Federal Energy Regulatory Commission (FERC) accounting guidance for EAs. The Company has a fiscal year end of December 31.

As background, in an effort to control or reduce the emission of pollutants and greenhouse gases, governing bodies typically issue rights or EAs to entities to emit a specified level of pollutants. Each individual EA has a useable year designation. EAs with the same useable year designation are fungible and can be used by any party to satisfy pollution control obligations. Entities can choose to buy EAs from, and sell EAs to, other entities. Such transactions are typically initiated through a broker. At the end of a compliance period, participating entities are required to either (1) deliver to the governing bodies EAs sufficient to offset the entity's actual emissions or (2) pay a fine. The Company currently emits a significant amount of greenhouse gases because of its antiquated manufacturing facilities. The Company plans to upgrade its facilities in 2024, which will decrease greenhouse gas emissions to a very low level. On the basis of the timing of the upgrade, the Company currently anticipates a need for additional EAs in fiscal years 2020–2024.

However, upon completion of the upgrade, the Company believes it will have excess EAs in fiscal years subsequent to 2024 because of reduced emissions as a result of the upgrade. The Company currently has forecasted the updates to its facilities will cost approximately $15 million. As the Company operates in a capital intensive industry, analysts and investors focus on a number of important ratios and measures, including working capital, capital expenditures, cash flows from operations, and free cash flow. As a result, the board of directors and management provide forward-looking guidance on these ratios and measures and expend great effort managing these results in light of the Company’s operational needs. The Company entered into the following two separate transactions in fiscal year 2020, which will impact the Company’s results as presented in the statement of cash flows, which the Company prepares under the indirect method.

            1. To meet its need for additional EAs in fiscal years 2020–2024, on April 2, 2020, the Company spent $6.5 million to purchase EAs with a useable year of 2023 from XYZ Manufacturing Corp.

2. In an effort to offset the costs of the April 2, 2020, purchase of 2023 EAs, the Company sold EAs with a useable year of 2026 to DEF Chemical Corp. for $5 million.

Required:

1. What is the appropriate classification in the statement of cash flows in the Company’s December 31, 2020, financial statements for its purchase of 2023 EAs from XYZ Manufacturing Corp.?

2. What is the appropriate classification in the statement of cash flows in the Company’s December 31, 2020, financial statements for its sale of 2026 EAs to DEF Chemical Corp.?

3. Should these cash flows be reported at gross amounts or net amounts in the 2020 statement of cash flows?

Be sure to cite appropriate authoritative support for your answer from the Accounting Standards Codification.

I. Contemporary Psychodynamic

Founder(s):

Philosophical Assumptions- What’s the Big Idea?:

Model of Personality What Makes People Tick?:

Model of Abnormality- What Makes People Sick?:

Model of Health- What’s the Goal?:

Model of Psychotherapy- What Makes People Well?:

II. Behavior

Founder(s):

Philosophical Assumptions- What’s the Big Idea?:

Model of Personality- What Makes People Tick?:

Model of Abnormality- What Makes People Sick?:

Model of Health- What’s the Goal?:

Model of Psychotherapy- What Makes People Well?:

III. Rational- Emotive

Founder(s):

Philosophical Assumptions- What’s the Big Idea?:

Model of Personality- What Makes People Tick?:

Model of Abnormality- What Makes People Sick?:

Model of Health- What’s the Goal?:

Model of Psychotherapy- What Makes People Well?:

IV. Person-Centered

Founder(s): Carl Rogers

Philosophical Assumptions- What’s the Big Idea?:

Model of Personality- What Makes People Tick?:

Model of Abnormality- What Makes People Sick?:

Model of Health- What’s the Goal?:

Model of Psychotherapy- What Makes People Well?:

1/ Imagine that you run a U.S. company based in New Jersey that lists only on the New York Stock exchange. Assume that the company has only one factory, located in New Jersey. All of the company’s workers are paid in U.S. dollars and the company buys all of its materials from U.S. suppliers (and pays in dollars). Also, all of the company’s other costs are paid for in U.S. dollars; however, assume that all of the country’s products are exported to Europe and that all of its sales are denominated in Euros. Further assume that all of these exports are sold by the company’ European sales office. This Office is a subsidiary of the U.S. Headquarters and consolidates its statements with the U.S. headquarters.

Questions: Assume that the dollar has been increasing in value against the Euro. For the U.S. company described above, what impact (if any) will the rising dollar have on the demand for the company’s products? If the U.S. company described above sells to European companies on credit contracts denominated in Euros, what impact will the rise in the dollar have on the U.S. company’s dollar valued Accounts Receivable? What is the reporting currency of the U.S. headquarters parent that lists on the NYSE. What is the functional current of the U.S. (headquarters) parent. What is the functional currency of the foreign (sales office) subsidiary?

2/ Imagine that you run a U.S. company based in New Jersey and lists only on the NYSE. Assume that the company’s main headquarters is in New Jersey, but that its only factory is in Germany. Thus, all of the company’s workers are paid in Euros and the company buys all of its materials from German firms (and pays Euros). Also, all of the company’s (i.e. factory’s) other costs are paid for in Euros. Also, assume that the company’s German factory operates as a separate foreign subsidiary that consolidates its financial statements with the U.S. headquarters that lists on the NYSE.

Question: Assume that the dollar has been rising in value against the Euro. For the U.S. company described above, what impact will the rising dollar have on the demand for the company’s products? If the U.S. company described above sells to German companies on credit contracts denominated in Euros, what impact will the increase in the dollar have on the U.S. company’s Accounts Receivable? ? What is the reporting currency of the U.S. headquarters parent that lists on the NYSE. What is the functional current of the U.S. (headquarters) parent. What is the functional currency of the foreign subsidiary?

Problem 23-01

The following are Marigold Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

Additional information:

Prepare a statement of cash flows for Marigold Corp. for the year ended December 31, 2020, using the indirect method.

Problem 23-01

The following are Shamrock Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

Additional information:

Prepare a statement of cash flows for Shamrock Corp. for the year ended December 31, 2020, using the indirect method

(b) On 1 July 2018, Maxwell Chemical Ltd acquired a plant at a cost of $1,000,000. Maxwell depreciated the assets on a straight line basis. As at 30 June 2020, the machinery had accumulated depreciation of $200,000 and an expected remaining useful life of four years. On 30 June 2020, Maxwell Chemical Ltd conducted an impairment test on asset. It was assessed that the plant could be sold to other entities for $600,000 with costs of disposal of $25,000. The management expect to use the plant for another four years and it is expected that net cash flow to be generated by the plant would be $195,000 over each of the next four years. The rate of return by the market on this plant is 8% as at 30 June 2020.

Note: The present value of an annuity of $1 for four years discounted at 8 per cent is $3.3121

Required: (a) Determine whether the plant is impaired. If so, provide appropriate journal entry at 30 June 2020.

(b) Provide the journal entry to account for the depreciation in 2021.

On 1 July 2018, Maxwell Chemical Ltd acquired a plant at a cost of $1,000,000. Maxwell depreciated the assets on a straight line basis. As at 30 June 2020, the machinery had accumulated depreciation of $200,000 and an expected remaining useful life of four years. On 30 June 2020, Maxwell Chemical Ltd conducted an impairment test on asset. It was assessed that the plant could be sold to other entities for $600,000 with costs of disposal of $25,000. The management expect to use the plant for another four years and it is expected that net cash flow to be generated by the plant would be $195,000 over each of the next four years.

The rate of return by the market on this plant is 8% as at 30 June 2020.

Note: The present value of an annuity of $1 for four years discounted at 8 per cent is $3.3121

Required:

(a)  Determine whether the plant is impaired. If so, provide appropriate journal entry at 30 June 2020.                                                                                                         

(b) Provide the journal entry to account for the depreciation in 2021.