Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.5% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2004 and is expected to retire at the end of 2038 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $93,000 at the end of 2018 and the company's actuary projects her salary to be $295,000 at retirement. The actuary's discount rate is 7%. (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.)

At the beginning of 2019, the pension formula was amended to:

1.60% × Service years × Final year's salary

The amendment was made retroactive to apply the increased benefits to prior service years.

Required:

1. What is the company's prior service cost at the beginning of 2019 with respect to Davenport after the amendment described above?
2. Since the amendment occurred at the beginning of 2019, amortization of the prior service cost begins in 2019. What is the prior service cost amortization that would be included in pension expense?
3. What is the service cost for 2019 with respect to Davenport?
4. What is the interest cost for 2019 with respect to Davenport?
5. Calculate pension expense for 2019 with respect to Davenport, assuming plan assets attributable to her of $210,000 and a rate of return (actual and expected) of 10%.

Mickey Company manufactures three different sizes of stuffed teddy bears (large, small and medium d corresponding costs for the month of January 2004 are given below: large medium small projected unit sales 3,000 5,000 4,000 $ $ $ price per unit 40 30 20 variable cost per unit --direct material 12 10 8 --direct labour 8 5 3 --support costs 5 3 2 fixed cost per unit 2 2 2 total unit cost 27 20 15 It takes 20, 15 and 10 machine hours to manufacture 100 units of large, medium and small teddy bears, respectively. The company has a monthly machine hour capacity of 2,050 machine hours and this machine hour capacity cannot be increased for at least a year. Required: b) Determine how many units Mickey Company should produce of each size to maximise its profits c) Suppose that a foreign firm has offered to buy 2,000 large teddy bears at $45 each. Determine the opportunity costs for this order. d) Suppose that the available machine hour capacity is reduced to 1,550 machine hours due to machine break down. How many units of each size should Mickey Company produce to maximise its profits?

Sachs Brands' defined benefit pension plan specifies annual retirement benefits equal to: 1.6% × service years × final year's salary, payable at the end of each year. Angela Davenport was hired by Sachs at the beginning of 2004 and is expected to retire at the end of 2038 after 35 years' service. Her retirement is expected to span 18 years. Davenport's salary is $89,000 at the end of 2018 and the company's actuary projects her salary to be $275,000 at retirement. The actuary's discount rate is 7%. (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.) At the beginning of 2019, the pension formula was amended to: 1.70% × Service years × Final year's salary The amendment was made retroactive to apply the increased benefits to prior service years. Required: 1. What is the company's prior service cost at the beginning of 2019 with respect to Davenport after the amendment described above? 2. Since the amendment occurred at the beginning of 2019, amortization of the prior service cost begins in 2019. What is the prior service cost amortization that would be included in pension expense? 3. What is the service cost for 2019 with respect to Davenport? 4. What is the interest cost for 2019 with respect to Davenport? 5. Calculate pension expense for 2019 with respect to Davenport, assuming plan assets attributable to her of $210,000 and a rate of return (actual and expected) of 10%.

In Python

Create a function called ????. The function receives a "string" that represents a year (the variable with this "String" will be called uve) and a list containing "strings" representing bank accounts (call this list ????).

• Each account is represented by 8 characters. The format of each account number is "** - ** - **", where the asterisks are replaced by numeric characters.

o For example, “59-04-23”.

• The two central characters of the "string" of each account represent the year in which the account was created.

o For example, the account “59-04-23” was created in 2004.

o Assume that all years are from the year 2000 onwards.

• The year in uve is represented by four characters.

o For example, "2001"

• The function must return a list with all the accounts that were created in the year indicated in ???, with each counts without the “-“ symbols.

o For example, if the accounts are [“49-01-26”, “19-01-33”, “99-01-53”, “59-04-23”] and the year of interest is "2001", then the function should return ["490126", "190133", "990153"]; note that the accounts continue in the form of a "string".

• In addition, the function must return the percentage of accounts that were created in the year indicated by ???.

o For example, if the accounts are [“49-01-26”, “19-01-33”, “99-01-53”, “59-04-23”] and the year of interest is "2001", so the function should return 75% (three accounts were created in 2001, and there are four accounts, therefore 100 × 3/4 = 75%)

Use the information below for ABC Co. to answer the following questions (#15 – 26).

Balance Sheet                                      December 31

                                                                                                                  2005                   2004    

Assets

Cash                                                                                                         $  20,000            $  10,000

Accounts receivable                                                                                    160,000              110,000

Inventories                                                                                                   80,000                50,000

Prepaid Rent                                                                                                 15,000                10,000

Investments                                                                                                100,000                75,000

Plant assets                                                                                                 210,000              250,000

Accumulated depreciation                                                                           (65,000)              (60,000)

         Total                                                                                                $520,000            $445,000

Liabilities and Stockholders' Equity

Accounts payable                                                                                      $  50,000            $  40,000

Interest payable                                                                                             20,000                  5,000

Income tax payable                                                                                         5,000                10,000

Note payable                                                                                               130,000              140,000

Common stock                                                                                            155,000              100,000

Retained earnings                                                                                        160,000              150,000

         Total                                                                                                $520,000            $445,000

Income Statement

For the Year Ended December 31, 2005

Sales                                                                                                                                  $800,000

Cost of goods sold                                                                                                                 480,000

Gross Profit                                                                                                                             320,000              

Operating expenses (including Depreciation Expense)                                  120,000

Interest expense                                                                                           20,000

Income tax expense                                                                                      25,000

         Total                                                                                                                           165,000

Income before Gains and Losses                                                                                            155,000

Gain on sale of plant assets                                                                                                        5,000   

Net income                                                                                                                       $  160,000

Additional information:

Accounts payable pertain to the purchase of inventory.

Plant assets were sold for $40,000. The cost of the plant assets was $40,000.

All dividends are cash.

For the year 2005:

Cash received/collected from customers is:

Purchases for the year is:

Cash paid to suppliers is:

Depreciation expense is:

Question #6. Independent cases:

A. On January 1, Nets Company paid $48,000 for a new delivery truck. It was estimated that the truck would be driven 100,000 miles during the next 5 years, at which time it would have a salvage value of $3,000. During the first and second years, the odometer registered 22,000 and 40,000 miles, respectively. Calculate the depreciation expense Nets Company needs to record at the end of year I & end of year 2. Nets Company uses the Units of Production method to account for depreciation. What is the book value of the truck at the end of 2^nd year.

B. On Jan. 1, 2004, Cav Co., which uses straight-line depreciation, purchased equipment for $60,000 with a useful life of 7 years and $4,000 salvage value. On April 1, 2008, the equipment was sold for $30,000 cash. What gain or loss should Cav recognize as a result of this disposition? Indicate the impact of the disposition on the income statement & balance sheet.

C. On Nov. 1, 2005, GoodTaste Magazine received $36,000 of annual magazine subscriptions. On Dec. 31, 2005, the end of fiscal year, Management of GoodTaste decided to recognize the $36,000 as revenues for the year 2005. Do you agree with GoodTaste Management? Explain. How should GoodTaste Magazine report this in its financial statements as of Dec. 31, 2005?

For ten years, Illinois Tool Works (ITW) has followed an acquisition strategy where it focused on growing from 800 to 1,000 businesses, each of which sought to follow an 80/20 rule where 80% of revenues business came from 20% of its products or customers. In support of this strategy, ITW sent hundreds of managers for training to sharpen their negotiating and deal making skills. As a result, ITW bought 201 companies between 2004 and 2008. Indeed, new acquired companies added $1 billion a year to annual revenues totaling nearly $18 billion.

Now, however, company leaders believe they’ve focused too much on acquisition. Former CEO David Speer said, “I can buy a lot of companies and fix them, but are they something I want to own four or five years from now?” So ITW is switching to a divestiture strategy aimed at making the company stronger through subtraction rather than addition. Divesting, or selling companies or their parts, is often done to get rid of business units that no longer fit strategic plans. The goal is to raise cash, streamline operations, and focus on the remaining core businesses. Research ITW’s divesting strategy, summarize it, and explain its goals and tactics. Find out the latest developments from the last few years. Do you think the divesting strategy will work?

42–3. Insider Trading.

Scott Ginsburg was chief executive officer (CEO) of Evergreen Media

Corp., which owned and operated radio stations. In 1996, Evergreen became interested in

acquiring EZ Communications, Inc., which also owned radio stations. To initiate negotiations,

Ginsburg met with EZ’s CEO, Alan Box, on Friday, July 12. Two days later, Scott phoned his

brother Mark, who, on Monday, bought 3,800 shares of EZ stock. Mark discussed the deal with

their father Jordan, who bought 20,000 EZ shares on Thursday. On July 25, the day before the

EZ bid was due, Scott phoned his parents’ home, and Mark bought another 3,200 EZ shares.

The same routine was followed over the next few days, with Scott periodically phoning Mark or

Jordan, both of whom continued to buy EZ shares. Evergreen’s bid was refused, but on August

5, EZ announced its merger with another company. The price of EZ stock rose 30 percent,

increasing the value of Mark and Jordan’s shares by $664,024 and $412,875, respectively. The

Securities and Exchange Commission (SEC) filed a civil suit in a federal district court against

Scott. What was the most likely allegation? What is required to impose sanctions for this

offense? Should the court hold Scott liable? Why or why not? [

SEC v. Ginsburg,

362 F.3d 1292

(11th Cir. 2004)]

Suppose a​ ten-year, $1,000 bond with an 8.3% coupon rate and semiannual coupons is trading for $1,034.16.

a. What is the​ bond's yield to maturity​ (expressed as an APR with semiannual​ compounding)?

b. If the​ bond's yield to maturity changes to 9.8% ​APR, what will be the​ bond's price?