The company A generates revenue primarily through the following means:

Software license fees: typically licenses its software for periods of up to 60 months. Licensees are normally given the following payment options:

Under the first payment option, the company collects the entire license fee at inception. This is categorized as a Paid-Up-Front (PUF) contract. Under a PUF arrangement, company A typically charges a one-time, paid-up- front fee for perpetual usage and the customer does not have the ability to cancel the contract.

Under the second payment option, the licensee pays a portion of the total software license fees at the beginning of the term (initial license fee [ILF]), and the remainder over the license term (ongoing monthly license fee [MLF] for month-to-month usage). In certain arrangements, the customer is contractually committed to making MLF payments for a minimum number of months even when the customer prematurely cancels the contract.

Under either payment option, the company is not obligated to refund any payments received from the customer.

Maintenance fees: These contracts oblige the company to provide post- contract customer support (PCS) to the client over a specified time period. PCS includes a right to periodic upgrades and technical support. The term for PCS is generally shorter than the term of the licensing agreement and is renewable for the duration of the license period.

Services: Other professional services provided by company A include training, installation, and consulting.

Assume that company A entered into a contract with client TDS Inc. for €230,000 on January 1, Year 1, to transfer a software license and an additional €15,000 for installation of the software. The license entitles TDS Inc. to use the software in its current form over an unlimited period and does not include updates. Two years of customer support come free with the license. In recent stand-alone contracts with other customers for the same software, company A has charged €200,000 for the software license, €60,000 for two-year customer support, and €40,000 for installation. The software is usable without customer support from company A and it can be installed by other vendors. The installation is expected to take 250 hours of which 150 hours will be required in Year 1 and the remainder in Year 2. The entire fee of €245,000 is collected on the contract date Based on the five-step revenue recognition process described by the recent revenue recognition rules (IFRS 15 / US GAAP ASC 606),

a. Determine the number of performance obligations, and the contract price to be allocated to each, in the following situations:

i. The installation service does not modify the software.

ii. Installation involves customizing the software to work seamlessly with other software used by the customer. As before, the installation can be performed by other firms as well.

b. Explain if (and if so, why) your responses in i) and ii) above differ, referring to IFRS 15 or to the equivalent US GAAP ASC 606.

c. How much revenue will be booked in Years 1 and 2 from the contract in each case? Assume that all conditions for revenue recognition other than those specified have been met in the situations above.

1) Answer T or F for the following

a) Medical expenses for the year are to be reduced by any insurance reimbursement that is expected to be received in the future in order to arrive at the current deduction.

b) The full-cost of home-related capital expenditures paid to enable a physically disabled individual to live independently qualifies as a medical expense, but is still subject to the 10% of AGI floor limitation.

c) Appraisal costs associated with determining the increase in value of a residence due to capital expenditures undertaken for medical reasons are deductible as a medical expense.

d) If the seller of a residence during the year pays more than her prorate share of the real estate taxes, the buyer must increase his basis in the home by the "excess".

e) When arriving at the taxpayer's net investment income in calculating the deduction for investment interest expense for the year, miscellaneous "investment expenses" are disallowed before any non-investment expenses when applying the 2% of AGI floor.

f) points paid to refinance an existing home mortgage are fully deductible in the year of payment.

g) A taxpayer who gives cash directly to a needy individual will be able to claim a charitable contribution, subject to AGI limits.

h) No deduction is allowed for the value of one's services contributed to a charity.

51% of students entering four-year colleges receive a degree within six years. Is this percent different from for students who play intramural sports? 120 of the 230 students who played intramural sports received a degree within six years. What can be concluded at the level of significance of αα = 0.05?

1. For this study, we should use Select an answer t-test for a population mean z-test for a population proportion
2. The null and alternative hypotheses would be:
   Ho: ? μ p  Select an answer ≠ > < =   (please enter a decimal)   
   H₁: ? μ p  Select an answer > = ≠ <   (Please enter a decimal)

3. The test statistic ? z t  =  (please show your answer to 3 decimal places.)
4. The p-value =  (Please show your answer to 4 decimal places.)
5. The p-value is ? ≤ >  αα
6. Based on this, we should Select an answer accept reject fail to reject  the null hypothesis.
7. Thus, the final conclusion is that ...
   • The data suggest the populaton proportion is significantly different from 51% at αα = 0.05, so there is sufficient evidence to conclude that the population proportion of students who played intramural sports who received a degree within six years is different from 51%
   • The data suggest the population proportion is not significantly different from 51% at αα = 0.05, so there is sufficient evidence to conclude that the population proportion of students who played intramural sports who received a degree within six years is equal to 51%.
   • The data suggest the population proportion is not significantly different from 51% at αα = 0.05, so there is not sufficient evidence to conclude that the population proportion of students who played intramural sports who received a degree within six years is different from 51%.
8. Interpret the p-value in the context of the study.
   • If the population proportion of students who played intramural sports who received a degree within six years is 51% and if another 230 students who played intramural sports are surveyed then there would be a 72.18% chance that either more than 52% of the 230 studetns surveyed received a degree within six years or fewer than 50% of the 230 students surveyed received a degree within six years.
   • If the sample proportion of students who played intramural sports who received a degree within six years is 52% and if another 230 voters are surveyed then there would be a 72.18% chance that we would conclude either fewer than 51% of all students who played intramural sports received a degree within six years or more than 51% of all students who played intramural sports received a degree within six years.
   • There is a 72.18% chance that the percent of all students who played intramural sports who received a degree within six years differs from 51%.
   • There is a 72.18% chance of a Type I error.
9. Interpret the level of significance in the context of the study.
   • If the population proportion of students who played intramural sports who received a degree within six years is 51% and if another 230 students who played intramural sports are surveyed then there would be a 5% chance that we would end up falsely concluding that the proportion of all students who played intramural sports who received a degree within six years is different from 51%
   • There is a 5% chance that the proportion of all students who played intramural sports who received a degree within six years is different from 51%.
   • If the population proportion of students who played intramural sports who received a degree within six years is different from 51% and if another 230 students who played intramural sports are surveyed then there would be a 5% chance that we would end up falsely concluding that the proportion of all students who played intramural sports who received a degree within six years is equal to 51%.
   • There is a 5% chance that aliens have secretly taken over the earth and have cleverly disguised themselves as the presidents of each of the countries on earth.

Simmons Company has the following information about its ending inventory. It values its inventory on an individual-item basis. Determine the value of the ending inventory. Show your work.

Let’s start with a product everyone is familiar with. If you were going to purchase a new car, walk us through the steps you would go through in your purchase process. How does your process differ from the process detailed in the text? How does it differ from others in this thread?

Converting Book Income to Taxable Income. The following income and expense accounts appeared in the accounting records of Rocket Corporation, an accrual basis taxpayer, for the current calendar year. Book Income These are all Credits Net Sales $3,230,000 Dividends 10,000 (1) Interest 18,000 (2) Gain on Sale of stock 9,000 (3) Key-person life insurance proceeds 100,000 These are all debits Cost of goods sold $2,000,000 Salaries and wages $500,000 Bad Debts 13,000 (4) Payroll Taxes 62,000 Interest Expense 12,000 (5) Charitable Contributions 50,000 (6) Depreciation 70,000 (7) Other expenses 40,000 (8) Federal Income Taxes 168,000 Net Income 452,000 Total Debits $3,367,000 Total Credits $3,367,000 The following additional information applies. 1. Dividends were from Star Corporation, a 15%-owned domestic corporation 2. Interest revenue consists of interest on corporate bonds, $15,000 and municipal bonds;$3,000 3. Stock is a capital asset held for three years prior to sale 4. The Allowance for Doubtful Accounts was $0 at the end of the prior year, and $8,000 at the end of the current year. The company changed its method of accounting from the specific write-off method in the prior year to the allowance method in the current year. 5. Interest expenses consists of $11,000 interest incurred on funds borrowed for working capital and $1,000 interest on funds borrowed to purchase municipal bonds. 6. Charitable contributions in the current year are comprised of $40,000 to State University and $10,000 to Alex Ampadu for President. 7. Rocket calculated depreciation per books using the straight-line method. For income tax purposes, depreciation amount to $95,000 8. Other expenses included premiums of $5,000 on the key-person life insurance policy covering Rocket's president who died in December 9. Rocket has a $90,000 NOL carryover from prior years and a $12,000 capital loss carryover from the prior year. 10. Rocket has a $90,000 NOL carryover from prior years. Required: Prepare a worksheet reconciling Rocket's book with its taxable income (before special deductions) Six columns should be used-two( one debit and one credit). For each of the three major headings book income, schedule M-1 Adjustments and taxable income. Assume state taxes do not apply.

This assignment is designed to get you to locate the Annual Report for a company and become familiar with its contents, particularly the financial statements and the notes to the financial statements (LO 2 and 3). While we have looked at very basic formats of the financial statements, the financial statements for a company contain much more detailed information much of which you have not been introduced to yet. Pay attention in the Annual Report to the information provided in the notes to the financial statements as you will find a lot of useful information in them that may help with some of the assignment questions.

This questioned need to based in JB HIFI ANNUAL REPORT 2019

Question 1 Describe the principal activities of the company? (1 mark)

Question 2 Define the revenue recognition criteria of the company and identify the page number and note number where this is stated in the annual report?

Question 3 Describe how the company values all classes of property, plant and equipment? Identify the page number and note number where this is stated in the annual report?

Question 4 Name the Audit firm responsible for performing the audit of the financial statements of the company. Explain why the auditor must declare their independence, and also explain why the financial statements must be audited by an external party.

Question 5 Provide any evidence of the company’s initiative or commitment to business sustainability practices. Why are businesses concerned about sustainability?

PART B ‐ ANALYSIS OF COMPANY’S FINANCIAL INFORMATION

Question 1 Using the company financial information, analyse and compare their 2018 and 2019 financial data by answering the following questions (you should analyse 2 ratios for each question):

A. Calculate the efficiency of the company by identifying and calculating two efficiency ratios. You need to calculate the two ratios for 2018 and 2019 (2 mark).

B. You must also explain what the efficiency ratio results tell us about the company performance occurring between the 2 periods (1 mark). Has the company’s efficiency improved or deteriorated? (1 mark)

C. Analyse the profitability of the company by identifying and calculating two profitability ratios. You need to calculate the two ratios for 2018 and 2019 (1 mark).

D. You must also explain what the profitability ratio results tell us about the company performance occurring between the 2 periods. (1 mark) Has the company’s profitability improved or deteriorated? (1 mark)

E. Analyse the company debt position by identifying and calculating two ratios. You need to calculate the two ratios for 2018 and 2019 (1 mark).

F. You must also explain what the debt ratio results tell us about the company performance occurring between the 2 periods. (1 mark). Has the company’s debt position improved or deteriorated? (1 mark)

Questions & Problems

1. Explain why the first question a person should ask when getting ready to analyze a contract problem is, "Is this alleged contract a contract for the sale of a good?"

2. What is the difference between an offer for a unilateral contract and an offer for a bilateral contract? Why might that difference be important to understand?

3. What must a party prove to recover under the theory of quasi-contract?

4. What is the mirror image rule?

5. What is the mailbox rule?

6. R. J. Reynolds Tobacco Company (RJR) operated a customer rewards program, called Camel Cash, from 1991 to 2007. Under the terms of the program, RJR urged consumers to purchase Camel cigarettes, to save Camel Cash certificates included in packages of Camel cigarettes, to enroll in the program, and, ultimately, to redeem their certificates for merchandise featured in catalogs distributed by RJR. The plaintiffs were 10 individuals who joined the Camel Cash program by purchasing RJR's products and filling out and submitting signed registra-tion forms to RJR. RJR sent each plaintiff a unique enrollment number that was used in communications between the parties. These communications included catalogs RJR distributed to the plaintiffs, containing merchandise that could be obtained by redeeming Camel Cash certificates.

From time to time, RJR issued a new catalog of merchandise offered in exchange for Camel Cash, which it either sent on request or mailed to consumers enrolled in the program. The number of Camel Cash certificates needed to obtain merchandise varied from as few as 100 to many thousands, and this encouraged consumers to buy more packages of Camel cigarettes and to save Camel Cash certificates to redeem for more valuable items.

RJR honored the program from 1991 to 2006, and, during that time, Camel's share of the cigarette market nearly doubled, from approximately 4 percent to more than 7 percent. In October 2006, however, RJR mailed a notice to program members announcing that the program would terminate on March 31, 2007. The termination notice stated: "As a loyal Camel smoker, we wanted to tell you our Camel Cash program is expiring. C-Notes will no longer be included on packs, which means whatever Camel Cash you have is among the last of its kind. Now this isn't happening overnight-there will be plenty of time to redeem your C-Notes before the program ends. In fact, you'll have from OCTOBER '06 through MARCH 07 to go to camelsmokes.com to redeem your C-Notes. Supplies will be limited, so it won't hurt to get there before the rush."

Beginning in October 2006, however, RJR stopped printing and issuing catalogs and told consumers that it did not have any merchandise available for redemption. Several of the plaintiffs attempted, without success, to redeem C-Notes or obtain a catalog during the final six months of the program. The plaintiffs had saved hundreds or thousands of Camel Cash certificates that they were unable to redeem.

In November 2009, the plaintiffs filed a class action complaint against RJR. They alleged breach of contract and promissory estoppel, among other claims, because RJR's actions had made the plaintiffs' unredeemed certificates worthless. The defendant argued that it had no bilateral contract to breach because the plaintiffs had not promised to anything. The trial court agreed and dismissed the complaint. The plaintiffs appealed. How do you think the appellate court ruled, and why? [Sateriale v. R.J. Reynolds Tobacco Co., 697 F.3d 777, C.A.9 (Cal. 2012).]

7. An oral agreement was made between multiple parties to put together some money and open a bar and restaurant. The men first had to create joint company. However, one potential owner was not able to provide his share of the funding at the time of the company formation and was subsequently pushed out of the deal by the other owners; who formed the company without him.

The man then sued the owners. In response, the defendants argued that the plaintiff had no documentation to support a cause of action. The court had to decide whether the plaintiff's complaint and statement of fact could support a breach-of-contract claim when no contract seemed to exist. Furthermore, the court considered the idea that a theory of quasi-contract could maintain a cause of action that could consist of the theft of ownership opportunity and/or breach of fiduciary duty. How do you think the court ultimately decided? [Don v. Broger, 2012 Slip Op 51934U.J?

8. NDWC Investment Properties owned six properties in DeKalb County, Georgia, which were secured by fully amortized 30-year loans. At some point before the trial, NDWC entered into negotiations with Branch Banking and Trust (BB&T) to refinance their loans. In the course of the negotiations, BB&T offered NDWC a lower interest rate on all six of the DeKalb County properties but only for a five-year term. NDWC expressed concerns about moving from 30-year fixed loans to a series of five-year loans. According to NDWC, BB&T assuaged NDWC's fears by assuring them that BB&T would continue to refinance the remaining balance on the loans in four successive five-year terms at the current market interest rate. NDWC made an agreement based on the oral representations by BB&T.

In December 2009, NDWC transferred the six DeKalb properties along with the loans to a newly created company named Corso Properties. BB&T approved the loan transfer but explained to Corso that the term would be for one year instead of five because Corso was a new company. Corso asserted that it had made an oral agreement with BB&T that BB&T would refinance the remaining balance in successive five-year terms if Corso satisfied certain conditions. In 2011. BB&T refused to renew the loans despite Corso's claims that it had met the required conditions.

Corso subsequently filed an action against BB&T, asserting claims of breach of Georgia's implied covenant of good faith and fair dealing when making contracts, fraud in the inducement, and fraud in the general. BB&T filed a motion to dismiss based on the plaintiff's failure to allege an independent breach of contract claim, as well as not pleading their fraud claims with enough details. The plaintiffs submitted an amended complaint which no longer contained the fraud in general claim but now included a breach of oral contract claim.

BB&T responded with a second motion to dismiss, asserting that the amended complaint failed to state a claim upon which relief could be granted. The plaintiffs did not respond to the defendant's second motion to dismiss and the defendant was dee unopposed.

What arguments could the plaintiffs have made if they had responded to the defendant's second motion? Although the defendant won by being deemed unopposed, the court still reviewed the defendant's grounds for dismissal. How did the court rule on each of the three claims: Breach of Oral Contract, Breach of Duty of Good Faith and Fair Dealing, and Fraud in the Inducement? How do state laws affect this decision? Recall the WPH standards for Business Ethics. Although the court would have ruled in favor of BB&T by a matter of law, was the way BB&T acted ethical? [Corso Properties, LLC and WC Investment Property, Inc. v. Branch Banking And Trust Company, (2013 U.S. Dist. Lexis 137955).]

9. In April 2011, Elias Groisman entered into a contract with Shabsi Pfeifer to sell three real properties to Pfeifer on the condition that Pfeifer satisfied two liens on the properties against Groisman's name and upon payment of $55,000. The e-mail which contained the offer did not have an end date by which Pfeifer had to complete performance.

More than six months later, Groisman entered a contract of sale for the three properties with Maya Development, LLC. In December 2012, Pfeifer filed a complaint against Groisman and Maya Development, seeking specific performance of the contract for the sale of real properties.

The trial court dismissed the case, and Pfeifer appealed to the New York Appellate Division Supreme Court. Did Groisman and Pfeifer enter into a valid contract on April 2011? What kind of agreement did both parties have instead? Based on your answers to the previous answers, who won the court case? Why? [Shabsi Pfeifer v. Elias A. Groisman, et al., 997 N.Y.S.2d 706 (N.Y. App. Div. 2014).]

10. Dr. Griffith allowed his life insurance to lapse after May 15, 2007. According to US Life's life insurance policy, he was granted a 31-day grace period, after which he would be able to reinstate his insurance by paying the balance of the unpaid bill and receiving written approval from US Life of the required evidence of insurability. According to a reminder notice, Griffen had 60 days to make a full payment. On or around June 15, 2007, the insurance provider sent Griffith a lapse notice that included a reinstatement form and a self-addressed envelope, and required payment and the reinstatement form to be received by the policy provider within 30 days from the lapsed coverage. On July 23, 2007, Griffith electronically directed payment to American Medical Association Insurance Agency (AMAIA), which acted as a third-party administrator for US Life. AMAIA acted on US Life's behalf to bill and collect premiums. AMAIA received the check from Griffith on July 30, 2007. On July 28, 2007, Griffith was kneeling beside his bicycle at Bethany Beach, Delaware, when he was struck by a car that had drifted off the road when the driver fell asleep at the wheel. Do you think Griffith was insured at the time of his death? Why or why not? [US Life Insurance Company v. Wilson, 2011 Md. App. LEXIS 52.]

11. Adwoa Gyabaah was hit by a bus owned by Rivlab Transportation Company. She retained attorney Aronsky to represent her in negotiations with the bus company, their insurance company, and their attorneys for a contingency fee of one-third of her recovery. On October 1, 2010, defendant tendered Aronsky its $1 million policy limits for purposes of settlement. After Aronsky explained the settlement to her, Gyabaah said she accepted it and signed a general release on October 5, 2010. Aronsky said he would hold onto the release for her until she decided whether she wanted the settlement in one lump sum or paid over a period of time.

On December 9, 2013, Gyabaah retained a new lawyer, Kenneth Wilhelm, and he advised Aronsky that Gyabaah did not wish to settle the case nor have the release sent over to the defendant. Aronsky filed a motion with the court seeking to enforce the $1 million settlement and setting his contingency fee at one-third of the recovery in accordance with the contingency agreement. The relevant issue in this case was whether there was a valid settlement agreement between the bus company and Gyabaah. Do you think the court found a valid agreement? Why or why not? [Gyabaah v. Rivlab Transp. Corp., 22 N.Y.3d 1018, 4 N.E.3d 359, 2013 N.Y. LEXIS 3446 (2013).]