On February 1, 2018, Arrow Construction Company entered into a three-year construction contract to build a bridge for a price of $8,570,000. During 2018, costs of $2,190,000 were incurred with estimated costs of $4,190,000 yet to be incurred. Billings of $2,690,000 were sent, and cash collected was $2,440,000. In 2019, costs incurred were $2,690,000 with remaining costs estimated to be $3,885,000. 2019 billings were $2,940,000 and $2,665,000 cash was collected. The project was completed in 2020 after additional costs of $3,990,000 were incurred. The company’s fiscal year-end is December 31. Arrow recognizes revenue over time according to percentage of completion. Required: 1. Compute the amount of revenue and gross profit or loss to be recognized in 2018, 2019, and 2020 using the percentage of completion method? 2a. Prepare journal entries for 2018 to record the transactions described (credit "various accounts" for construction costs incurred). 2b. Prepare journal entries for 2019 to record the transactions described (credit "various accounts" for construction costs incurred). 3a. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2018. 3b. Prepare a partial balance sheet to show the presentation of the project as of December 31, 2019.

AFN EQUATION

Broussard Skateboard's sales are expected to increase by 20% from $7.4 million in 2018 to $8.88 million in 2019. Its assets totaled $5 million at the end of 2018.
Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2018, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 3%, and the forecasted payout ratio is 50%. What would be the additional funds needed? Do not round intermediate calculations. Round your answer to the nearest dollar.
$ ????

Assume that the company's year-end 2018 assets had been $6 million. Is the company's "capital intensity" ratio the same or different?

The capital intensity ratio is measured as A₀*/S₀. Broussard's current capital intensity ratio is (SELECT ANSWER: Higher than, Lower than, equal to) that of the firm with $6 million year-end 2018 assets; therefore, Broussard is (SELECT ANSWER: Less, More, Same) capital intensive - it would require (SELECT ANSWER: A Smaller, A larger, The same) increase in total assets to support the increase in sales.

Broussard Skateboard's sales are expected to increase by 15% from $8.6 million in 2018 to $9.89 million in 2019. Its assets totaled $6 million at the end of 2018.
Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2018, current liabilities were $1.4 million, consisting of $450,000 of accounts payable, $500,000 of notes payable, and $450,000 of accruals. The after-tax profit margin is forecasted to be 4%, and the forecasted payout ratio is 60%. What would be the additional funds needed? Do not round intermediate calculations. Round your answer to the nearest dollar.
$  

Assume that the company's year-end 2018 assets had been $7 million. Is the company's "capital intensity" ratio the same or different?

The capital intensity ratio is measured as A₀*/S₀. Broussard's current capital intensity ratio is -Select-higher than, lower than,equal to. Item 2 that of the firm with $7 million year-end 2018 assets; therefore, Broussard is -Select-less,more,the same. Item 3 capital intensive - it would require -Select-a smaller,a larger,the same. Item 4 increase in total assets to support the increase in sales.

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.

1. 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.
2. 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.
3. 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:

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.)

Nanticoke Industries had the following operating results for 2018: sales $30,420; cost of goods sold = $20,060; depreciation expense = $5,500; interest expense = $2,940; dividends paid = $1,750. At the beginning of the year, net assets were $17,410, current assets were $5,920, and current liabilities were $3,475. At the end of the year, net fixed assets were $20,960, current assets were $7,390, and current liabilities were $4,050. The tax rate for 2018 was 30 %.

a. What is net income for 2018? (Negative answers should be indicated by a minus sign. Omit $ sign in your response.)

Net income           $

b. What is the operating cash flow for 2018? (Negative answers should be indicated by a minus sign. Omit $ sign in your response.)

Operating cash flow           $

c. What is the cash flow from assets for 2018? (Negative answer should be indicated by a minus sign. Omit $ sign in your response.)

Cash flow from assets           $

d. If no new debt was issued during the year, what is the cash flow to creditors? What is the cash flow to shareholders? (Negative answers should be indicated by a minus sign. Omit $ sign in your response.)

Black Tyres (BT) manufactures and sells two products in Australia: low-budget tyres and high performance tyres. Low-budget tyres are made from hard rubber for durability while high performance tyres are made from softer rubber for superior grip in wet conditions. When the low-budget model was introduced in the market, another competitor from India introduced low priced tyres with almost alike features. Due to this, the Sales Director decides to reduce the price of low-budget tyres so that sales do not get hurt.

At the same time, the sales director decided to run a marketing campaign demonstrating the benefits of high performance tyres and promoting the brand to the top-segment customers. The campaign focused on unique features and safety of high-performance tyres.

The market is growing by about 0.8% per year, with strong competition due to tyres imported from India. The CFO, Peter Srock, has provided extracts from last year’s actual income statement and profit plan. When Peter prepared the budget in November 2017, he expected and assumed that the market would grow by 0.80% compared to the previous year. When he received the Annual Tyre Industry Report, he found that the market actually grew by 0.75%.

C. (Part 1) Prepare a short report outlining BT’s performance for the year ended 30 June 2018. The focus of your report should be on how the variances may relate to each other and (Part 2) Suggest any issues that may warrant further investigation by Peter.

Country facing a lost decade of growth, ANZ warns

By Shane Wright (Sydney Morning Herald, 21 January 2020)

Australia is facing a lost decade of economic growth, ANZ has warned, that will see living standards slip and wages grow modestly while putting pressure on the Morrison government's plan for a string of budget surpluses.

As separate research suggests consumers are eager to get back into the housing market, ANZ said the 2020s were likely to endure the slowest rate of growth since the 1980s, which was a decade that included a recession and the start of Australia's last economic contraction.

...

ANZ head of Australian economics David Plank said growth through the current decade would average 2.6 per cent, with that tipped to fall to between 2 and 2.5 per cent across the 2020s.

He said that level of growth, lower than both estimated by the Reserve Bank and the federal Treasury, would be driven by tepid non-mining business investment, weak productivity and household consumption held back by high debt and modest wage increases.

Australian households, despite record levels of wealth due to high house prices, were carrying record levels of debt that would crimp their spending plans.

...

In its December budget update, Treasury forecast economic growth to lift to 2.75 per cent through 2020-21 and then climb to 3 per cent for the next two years. That level of growth is expected to help drive down unemployment and push up wages.

...

"Lower trend growth poses challenges for the fiscal outlook. Critically, however, the slowdown in trend doesn't have to be meekly accepted," he said. "To be specific, the policy focus should be on lifting investment."

...

Question 1:

a) According to the macroeconomic indicators mentioned in the article above , what phase of the business cycle is the Australian economy most likely in during 2020? Represent your answer in a diagram.

b) What type of fiscal policy is undertaking in 2020 (at the article above)? How would this affect aggregate demand and the economy? Demonstrate your answer in a diagram.

FinCorp is a mid-size financial company. A couple of years ago FinCorp decided to establish a fullfledged EA practice to accommodate with the growing problems around non-transparency of its IT investments and poor business and IT alignment in general. In order to boost its EA initiative, the company decided to purchase a specialized software tool for enterprise architecture. For this purpose, its IT leaders studied the available offerings on the EA tool market, contacted most promising vendors, organized meetings with vendor representatives and listened to their presentations. As a result, FinCorp had selected and acquired a rather powerful and expensive tool for enterprise architecture from a well-known vendor. Then, the company had installed and configured the tool, established a central repository for storing architectural information and sent its architecture team to a special training supplied by the tool vendor. After the training, architects had documented most areas of the organizational IT landscape and associated business processes in the EA repository and started to update this information to keep it current. Architects were also impressed with the modeling, visualization and analytical capabilities offered by their new EA tool. However, FinCorp’s CIO is pretty skeptical towards the chosen EA tool. He believes that the company is only wasting money on the tool as it is essentially nothing more than a sophisticated repository of Page | 8 Asia Pacific International College Pty Ltd. Trading as Asia Pacific International College 55 Regent Street, Chippendale, Sydney 2008: 02-9318 8111 PRV12007; CRICOS 03048D Approved: 14/02/2019, Version 1 current-state information. Furthermore, the tool is used by only 4-5 people in the entire organization (all architects), does not facilitate informed decision-making among business stakeholders in any sense and does not contribute to achieving the original objectives of the EA initiative to improve business and IT alignment.

Questions

1. What is wrong with the installed EA tool?

2. Is the tool adding value to FinCorp?

3. How can the tool be used to facilitate business and IT alignment?

4. What should be done to maximize the value of the tool for the company

Database Design and SQL

The following relations keep track of airline flight information:

Flights (flno: integer, from : string, to: string, distance: integer, departs: time, arrive: time, price: integer)
Aircraft (aid: integer, aname : string, cruisingrange: integer)
Certified (eid: integer, aid: integer)
Employees (eid: integer, ename : string, salary: integer)

The Employees relation describe pilots and other kinds of employees as well. Every pilot is certified for some aircraft and only pilots are certified to fly.

Based on the schemas, formulate the following SQL queries:

a. A customer wants to travel from Madison to New York with no more than two changes of flight. List the choice of departure times from Madison if the customer wants to arrive in New York by 6 p.m.

b. Compute the difference between the average salary of a pilot and the average salary of all employees (including pilots).

c. Print the name and salary of every nonpilot whose salary is more than the average salary for pilots.