The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys equity securities as investments. None of Ornamental’s investments are large enough to exert significant influence on the investee. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017.

Mar. 31 Acquired Distribution Transformers Corporation common stock for $520,000.

Sep. 1 Acquired $1,080,000 of American Instruments' common stock.

Sep. 30 Received a $18,200 dividend on the Distribution Transformers common stock.

Oct. 2 Sold the Distribution Transformers common stock for $557,000.

Nov. 1 Purchased $1,560,000 of M&D Corporation common stock.

Dec. 31 Recorded any necessary adjusting entry(s) relating to the investments. The market prices of the investments are: American Instruments common stock $ 1,018,000 M&D Corporation common stock $ 1,640,000

Required: 1. Prepare the appropriate journal entry for each transaction or event during 2018, as well as any adjusting entries necessary at year end.

2. Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet as a result of these investments.

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys equity securities as investments. None of Ornamental’s investments are large enough to exert significant influence on the investee. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017.

Required:

1. Prepare the appropriate journal entry for each transaction or event during 2018, as well as any adjusting entries necessary at year end.

2. Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet as a result of these investments.

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2018. The company buys equity securities as investments. None of Ornamental’s investments are large enough to exert significant influence on the investee. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2017.

Required:
1. Prepare the appropriate journal entry for each transaction or event during 2018, as well as any adjusting entries necessary at year end.
2. Indicate any amounts that Ornamental Insulation would report in its 2018 income statement, 2018 statement of comprehensive income, and 12/31/2018 balance sheet as a result of these investments.

Described below are three independent and unrelated situations involving accounting changes. Each change occurs during 2018 before any adjusting entries or closing entries are prepared.

a. On December 30, 2014, Rival Industries acquired its office building at a cost of $9,600,000. It has been depreciated on a straight-line basis assuming a useful life of 30 years and no residual value. Early in 2018, the estimate of useful life was revised to 18 years in total with no change in residual value.

b. At the beginning of 2014, the Hoffman Group purchased office equipment at a cost of $576,000. Its useful life was estimated to be 8 years with no residual value. The equipment has been depreciated by the sum-of-the-years’-digits method. On January 1, 2018, the company changed to the straight-line method.

c. At the beginning of 2018, Jantzen Specialties, which uses the sum-of-the-years’-digits method, changed to the straight-line method for newly acquired buildings and equipment. The change increased current year net income by $565,000.

Required: For each change: 1. Identify the type of change. 2. Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2018 related to the situation described. (Ignore income tax effects.)

Theory of inheritance of acquired characters was given by

(a) Wallace

(b) Lamarck

(c) Darwin

(d) De Vries.

A. Your branch has just started the day’s business and many customers are thronging to get banking services. Suddenly the computer system breaks down and the customers and staff are complaining as this problem happens frequently. What should you do?
B. Encik Bahari is a long standing customer of your branch. He applied for a housing loan recently and your head office approved the loan at an interest rate of BLR
+ 2%. Encik Bahari requests for your goodwill as the branch manager to reduce the interest rate to BLR + 1%. You are unable to do it as it is against the rules of the Institute of Banks in Malaysia and Bank Negara Malaysia. How will you explain to Encik Bahari?

A. SBE Private Limited company is applying for a working capital loan. This is the company’s first application for credit facility from your bank. SBE Private Limited company is a medium-sized company that manufactures various types of antique furniture for local as well as international markets. The company is currently facing cash flow problem due to ineffective cost control.

B. XYZ Private Limited company is applying for an additional overdraft facility from your bank. This company has a good track record with your bank. However, the company has been experiencing difficulty lately due to industry-wide recession. According to the finance manager of XYZ Private Limited company, the purpose of the additional facility is to finance the company’s overhead cost.

Part 2
TASK
Obtain the balance sheets of two Commercial banks in Malaysia from their annual reports.
Calculate the following ratios, based on the available information:
1. Capital to total deposits ratio
2. Capital to total assets ratio
3. Capital to risk weighted assets ratio
4. Capital to loans ratio
Based on the ratios, which bank has better capital adequacy? Which bank has better capital
adequacy if you also incorporate qualitative measurement into the assessment?
Various aspects that can be used as qualitative measurement are as follows:
(a) Quality of bank’s management
(b) Quality of bank’s assets
(c) Bank’s earnings history
(d) Quality of bank ownership
(e) Accommodation cost
(f) Quality of operation procedures
(g) Volatility of deposits
(h) Local market conditions

Course Name : MBA FINANCE & BANKING

Please read the following article: Whole Foods_ Walmart, Costco Steal Grow:

Over much of the past 30 years, Whole Foods Market co-founder John Mackey enjoyed wild success selling organic groceries to the masses. That brought media buzz, fast growth, and high profit margins to his grocery chain. It's also attracted imitators. Now, with the likes of Kroger and Wal-Mart Stores muscling into everything from organic milk to sustainably raised salmon, Mackey finds himself fending off challenges from bigger rivals intent on eating Whole Foods' lunch. Just how well the competition is doing became clear on May 6 when Whole Foods reported that sales growth at stores open more than 57 weeks had slowed to 3.6 percent in the most recent quarter, well off the 5.3 percent gain forecast by analysts. Mackey also announced a plan to revive growth by starting a lowerpriced chain aimed at millennials next year. The disappointing growth and seeming change in strategy spooked investors, who trimmed almost 10 percent from Whole Foods' stock price on the day after the news. "Business has really slowed down compared to what it used to be," says Brian Yarbrough, an analyst at Edward Jones. "I fear they're being a little complacent about what's going on in the competitive environment." So far, Whole Foods has said only that its as-yet-unnamed chain for millennials will be smaller and more focused on value, convenience, and technology than traditional Whole Foods markets. They'll also be cheaper to open and build, Mackey said.

With the new stores, Whole Foods is targeting younger consumers who may not be as dazzled by its organic offerings, particularly when many of those items are increasingly available at their neighborhood grocery stores, says Virginia Morris, vice president for global consumer strategy at retailing consultant Daymon Worldwide. "It's not unique to millennials-they've grown up with it," she says. "There's no cachet."

The grocer was founded in 1978 in Austin, Texas, by Mackey and a former girlfriend. It expanded quickly in the 2000s-there were fewer than 200 Whole Foods stores in 2006, compared with more than 400 nowas it helped introduce items such as kale and quinoa to mainstream Americans. In its glory days, from 2000 to 2008, Whole Foods' average annual sales growth was 20.4 percent. Stores opened quickly, as the company snatched up cheap real estate that defunct retailers such as Circuit City had abandoned. Those gains slowed to 9.9 percent in the fiscal year ended Sept. 28, 2014, the smallest annual increase since 2009. Kroger and Fresh Market, which sells high-end produce, both logged better sales growth in their latest fiscal years. To hold on to shoppers, Whole Foods since 2014 has focused on lowering prices, especially on fresh fruits and vegetables. It also started running its first national ads, dubbing its campaign "Values matter." But it hasn't pulled back on the fancy amenities that have given it an image to match its prices. A new store in Boston, for instance, has a spa; many others offer valet parking. Sales of organic foods in the U.S. jumped 11.3 percent, to $39.1 billion, last year, according to the Organic Trade Association. The problem for Whole Foods is that an increasing share of those sales is going to mainstream players in the U.S. grocery store business, which logged $1.07 trillion in sales last year, according to Euromonitor International.

Kroger's natural and organic Simple Truth line has become a $1 billion-a-year brand. Costco Wholesale sells organic and grass-fed beef and organic coconut oil under its Kirkland Signature brand; its total organic sales were close to $3 billion last year. Even Wal-Mart is hawking everything from organic chia seeds to its Wild Oats Marketplace organic marinara sauce. There are about 3,800 Wal-Mart stores in the U.S. that have at least 30 Wild Oats items, the company says, plus about 2,300 Walmarts have separate organic produce sections. "You've got a number of competitors out in the marketplace that are growing very rapidly -Kroger, Sprouts Farmers Market, Trader Joe's, Fresh Market," says Bruce Cohen, senior partner at consulting firm Kurt Salmon. "It's caused Whole Foods to pause." Whole Foods concedes that rivals are encroaching on its sales gains. "Everybody is jumping kind of on the natural and organic food bandwagon, and that's really frankly due to our success," Mackey said on a May 6 analyst call. He and co-Chief Executive Officer Walter Robb declined to be interviewed for this story. Developing a grocer specifically for millennials could be a gamble. Americans under the age of 35 prefer natural and organic food, which often costs more, and seek more transparency on labels, according to recent Goldman Sachs research. Yet, while millennials tend to marry later and put off having kids, once they settle down and form families, their shopping habits aren't that unusual, says Sucharita Mulpuru, a Forrester Research retail analyst. "It's all delayed, but once those things happen, they spend just like their parents." That means the biggest determinants of where they will shop will be value, convenience, and selection.

Even if Mackey is right about a need for stores tailored to a younger demographic, his new tack could present problems, says Edward Jones's Yarbrough. The smaller locations will likely have lower profit margins and may cannibalize customers from Whole Foods' namesake chain, he says. Some analysts think Whole Foods may be taking aim at Trader Joe's with its new concept. That 440-store chain appeals to young consumers who have broad, global tastes and like to hunt for items they might not find elsewhere, Daymon's Morris says. But Trader Joe's benefits from a perception that its products are cheap-chic, while Whole Foods continues to grapple with its "Whole Paycheck" image. Says Morris: "That's something they really haven't been able to shake."

Write a 500 Word document. Please respond to the following questions:

After reading "Whole Foods or Walmart?" what is your opinion about whether they believe that the new concept from Whole Foods will work.

What are at least three ways that companies can develop innovative practices based on demographic trends?

How can companies make good decisions about what trends should impact their corporate strategies?

1. A U.S. firm has a MXN 25,000,000 payable (money they will owe to a supplier, for example) due in 4 months. The current exchange rate is $.082/MXN and the U.S. firm fears the MXN could appreciate substantially over the next 4 months. The interest rate on 4-month MXN money market deposits is 2.50% (a periodic rate, not a yearly rate). How could the U.S. firm execute a money market hedge? (Show everything and include numbers)

Covington Co. is a large U.S.-based MNC with large subsidiaries in France. It has issued stock in France in order to establish its business. It could have issued stock in the U.S. and then used the proceeds in order to support the growth in Europe.

• What is a possible advantage of issuing the stock in France to finance French operations?
• Why might the French investors prefer to purchase the stock that was issued in France rather than purchase the stock of Covington on a U.S. stock exchange?

• Using additional resources, you should take a position on whether a trade war with China is good or bad for U.S. Consumers. What about U.S. workers? What about U.S. business? What does the theory of Comparative Advantage tell you about whether we are better or worse off with free trade?
• As part of your posting, please take a position on whether the next president should continue or attempt to halt the current trade war.