ABC Ltd acquired $5 million of ten-year, 6 percent, annual coupon corporate bond (which pay interest annually).
At the time of ABC Ltd acquiring the bond, the market required a rate of return 7 percent per annum on such
bonds. ABC Ltd has an intention to hold the bond for cash flows and not to trade them. Assume that the moneys
paid out to acquire debentures were allotted on the same day: 30 June 2018.
Appendix A provides the present value of $1 in n periods.
Appendix B provides the present value of an annuity of $1 per period for n periods.
Required:
(a) Calculate the acquired price of the bonds at 30 June 2018. Show workings.
(b) Prepare a schedule as follows Please copy the schedule format to the paper.

(c) Provide the relevant journal entries at 30 June 2018.
(d) Provide the journal entries for the receipt of interest and principal component at 30 June 2019. Show
workings.
(e) Provide the journal entries for the receipt of interest and principal component at 30 December 2028. Show
workings.

Suppose there are just two countries, the US and Germany. Consider the following: US Current Account balance (BCA): -$400 US Financial Account balance (BKA): +$315 The balance on the US Reserve Account is +$85, and it means that US holdings of foreign currency denominated assets decreased The balance on the US Reserve Account is +$85, and it means that US holdings of foreign currency denominated assets increased The balance on the US Reserve Account is -$85, and it means that US holdings of foreign currency denominated assets decreased The balance on the US Reserve Account is -$85, and it means that US holdings of foreign currency denominated assets increased

In October 2018, 4 people died from a mystery virus after a cruise holiday on Fun Cruises. Their families started legal action against Fun Cruises in November 2018 for a total of $2,000,000, but the company disputes liability. Up to the date of authorisation of the financial statements for the year to 30 June 2019, the lawyers advise that it is probable that the entity will not be found liable. However, when Fun Cruises prepares the financial statements for the year to 30 June 2020, its lawyers advise that, owing to developments in the case relating to a faulty dishwasher, it is probable that they will be found liable. For the year ended 30 June 2019, how should Fun Cruises account for this item in its accounts?

1. MIGITSU COMPANY
Comparative Balance Sheets
December 31

Additional information:
1. Net income for 2020 was $97,000.

2. Cash dividends of $34,000 were declared and paid.

3. Bonds payable amounting to $57,000 were redeemed for cash $57,000.

4. Common stock was issued for $42,000 cash.

5. Equipment that cost $45,000 and had a book value of $27,000 was sold for $35,000 during 2020; land was sold at cost.

PART A. Prepare a statement of cash flows for 2020 using the indirect method.

PART B. Compute free cash flow

2.

2020 2019

Cash   $14,900   $10,400

Accounts receivable.   21,500.   23,400

Land.      19,700   25,900

Buildings 70,100   70,100

Accumulated depreciation—buildings. (14,800) (10,700)

   Total $111,400 $119,100

Accounts payable $12,100   $28,300

Common stock   75,400   73,600

Retained earnings 23,900   17,200

Total $111,400   $119,100

Additional information:

1. Net income was $22,400. Dividends declared and paid were $15,700

2. No noncash investing and financing activities occurred during 2020.

3. The land was sold for cash of $4,900.

PART A.) Prepare a statement of cash flows for 2020 using the indirect method.

PART B.) Compute free cash flow

Assume all of the same facts as in Part I, except that Soccer Inc. uses the percent of receivables or "aging of receivables" method to determine bad debt expense. I will repeat the facts for your convenience: Soccer Inc. had credit sales of $775,000 during 2020. At the end of 2020, the unadjusted ending balance in Soccer’s Allowance for Bad Debt account was $7,600, and the unadjusted balance in its gross accounts receivable account was $239,000. The company has a policy of writing-off any Account Receivable which is outstanding more than 75 days. As of 12/31/20, Soccer has Accounts Receivable balances totaling $2,000 outstanding over 75 days which need to be written off.

Soccer has created the following aging schedule:

You may round your answers to the nearest dollar.

(A) What journal entry would Soccer record to "Write-Off" Accounts Receivable?

(B) What journal entry would Soccer record to recognize 2020 Bad Debt Expense?

(C) What is the adjusted 12/31/2020 balance of Soccer's Gross Accounts Receivable? **(Show calculation)**

(D) What is the adjusted 12/31/2020 balance of Soccer's Allowance for Bad Debt? **(Show calculation)**

(E) What is the adjusted 12/31/2020 balance of Soccer's Net Accounts Receivable? **(Show calculation)**

2a. How does forecasting cash flows for a multinational project differ from forecasting cash flows for a US based project? b. Describe one way the required return for the project located in a foreign country can be determined if the required return for a similar project located in the US is known. c. When determining the required return for a capital budgeting project located in a foreign country, why does it matter whether the capital market in that foreign country is integrated with the world market or is segmented? How does the required return in a segmented market differ from that in an integrated market?

I am a US chocolate importer who is importing Belgian chocolate from Belgium worth € 1 million and the amount is due in 360 days. I want to hedge my Belgian euro payables using a money market hedge and obtain the following quotes from my banker:

Spot rate is: $1.1000 – $ 1.1100 / €

The Belgium interest rates are:                  3.0 % - 3.4 % annually and

US interest rates are:                                   2.1 % – 2.5 % annually.

Using a money market hedge and bid-ask spreads, what are my $ payables in 360 days?

am a US chocolate importer who is importing Belgian chocolate from Belgium worth € 1 million and the amount is due in 360 days. I want to hedge my Belgian euro payables using a money market hedge and obtain the following quotes from my banker:

Spot rate is: $1.1000 – $ 1.1100 / €

The Belgium interest rates are:                  3.0 % - 3.4 % annually and

US interest rates are:                                   2.1 % – 2.5 % annually.

Using a money market hedge and bid-ask spreads, what are my $ payables in 360 days?

I am a US chocolate importer who is importing Belgian chocolate from Belgium worth € 1 million and the amount is due in 360 days. I want to hedge my Belgian euro payables using a money market hedge and obtain the following quotes from my banker:

Spot rate is: $1.1000 – $ 1.1100 / €

The Belgium interest rates are:                  3.0 % - 3.4 % annually and

US interest rates are:                                   2.1 % – 2.5 % annually.

Using a money market hedge and bid-ask spreads, what are my $ payables in 360 days?

1a. How does forecasting cash flows for a multinational project differ from forecasting cash flows for a US based project?

b. Describe one way the required return for the project located in a foreign country can be determined if the required return for a similar project located in the US is known.

c. When determining the required return for a capital budgeting project located in a foreign country, why does it matter whether the capital market in that foreign country is integrated with the world market or is segmented? How does the required return in a segmented market differ from that in an integrated market?