Required information

[The following information applies to the questions displayed below.]

Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2019 and 2020 (in thousands of dollars):

Required:

1. Classify the cost items in the table into cost-of-quality (COQ) categories.

2. Calculate the ratio of each COQ category to revenues in each of the 2 years.

3. Calculate the percentage change in each COQ category and total COQ and comment on the results:

a. Percentage change in total COQ as a percentage of sales, from 2019 to 2020;

b. Total COQ in 2020 expressed as a percentage of 2019 sales dollars;

c. Percentage change in total prevention costs, 2019 to 2020;

d. Percentage change in total appraisal costs, 2019 to 2020;

e. Percentage change in total internal failure costs, 2019 to 2020;

f. Percentage change in total external failure costs, 2019 to 2020.

The balance date for this company is 31^st March 2020. You are to record the effect of each transaction on the extended accounting equation using the table on the next page (page 5). Include all balance day adjustments where applicable. The first example illustrates how you would record the answers on the table.

1. Purchased inventory for $55,000. Paid half upon the receipt of the inventory and the remainder on credit.

1. Depreciate the equipment at balance date. Cost of equipment is $40,000 and the expected salvage value at the end of 5 years is $5,000. The equipment was purchased on 1^st September 2019. Use the straight line depreciation for this business.

2. Sold an old equipment for $12,000. The cost of the equipment was $50,000 and it has an accumulated depreciation to date of $42,000.

3. Paid the supplier promptly as a 10% discount was offered for an amount owing of $10,000.

4. Paid the annual insurance of $24,000 on 1^st Feb 2020.

5. Invested $20,000 with the bank on 1^st January 2020 with an interest rate of 3.5% per annum. The interest was shown in the business bank account on 2^nd April 2020.

6. Sold inventory on credit for $17,000 (cost is $9,000).

7. Weekly wages of $50,000 was paid on 3^rd April 2020. The wages was for the period 29^th March to 2^nd April 2020.

8. Repaid the bank loan: $50,000 principal and $4,000 interest.

1. Received from debtor the full amount owing of $17,000 less 3% discount for early repayment.

10. Received $5,000 deposit from a supplier on 1^st March 2020 for the sale of inventory to be delivered on 7^th April 2020.

11. Dividends paid to the owners of $2,000.

Extended Accounting Equation: Asset + Expenses = Liabilities + Equity + Revenue

Cecil C. Seymour is a 64-year-old widower. He had income for 2020 as follows:Pension from former employer$39,850Interest income from Alto National Bank5,500Interest income on City of Alto bonds4,500Dividends received from IBM stock held for over one year2,000Collections on annuity contract he purchased from Great Life Insurance5,400Social Security benefits14,000Rent income on townhouse9,000The cost of the annuity was $46,800, and Cecil was expected to receive a total of 260 monthly payments of $450. Cecil has received 22 payments through 2020.Cecil’s 40-year-old daughter, Sarah C. Seymour, borrowed $60,000 from Cecil on January 2, 2020. She used the money to start a new business. Cecil does not charge her interest because she could not afford to pay it, but he does expect to collect the principal eventually. Sarah is living with Cecil until the business becomes profit-able. Except for housing, Sarah provides her own support from her business and $1,600 in dividends on stocks that she inherited from her mother.Other relevant information is presented below.•             Expenses on rental townhouse:Utilities$2,800Maintenance1,000Depreciation2,000Real estate taxes750Insurance700• State income taxes paid: $3,500•              County personal property taxes paid: $3,100•         Payments on estimated 2020 Federal income tax: $5,900•               Charitable contributions of cash to Alto Baptist Church: $7,400• Federal interest rate: 6%•            Sales taxes paid: $912Compute Cecil’s 2020 Federal income tax payable (or refund due)."

requirement

1) What is the 2020 Adjusted Gross Income for Cecil Seymour?

2) What is the 2020 taxable income for Cecil Seymour?
3) What is the 2020 balance due or (refund) for Cecil Seymour?

The amounts are listed in the above problem; "Some Company has asked you to prepare a cash budget for the year 2020 using the following information"

Following are selected balance sheet accounts of Sheridan Bros. Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information.

Additional information:

Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items.

Question 3

Comparative financial statement data of Tardis Plc follow:

Tardis Plc

Comparative Income Statement

For the year ended 30 June 2020

Tardis Plc

Comparative Balance Sheet

As of 30 June 2020

Other information:
1. The market price of Tardis Plc ordinary shares: $36.75 at 30 June 2020,

and $50.50 at 30 June 2019

2. Ordinary shares outstanding 15,000 during 2020 and 14,000 during 2019

3. All sales of CREDIT

Required:
1. Calculate the following ratios for 2020 and 2019

(a) Current ratio

(b) Inventory turnover

(c) Times interest earned

(d) Return on Ordinary equity

(e) Earnings per share of ordinary shares

(f) Price /Earnings ratio

2. Comment on the company’s performance and decide whether Tardis’ financial position improved or deteriorated during 2020 and the investment attractiveness of its ordinary shares.

[The following information applies to the questions displayed below.] Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2019 and 2020 (in thousands of dollars): 2019 2020 Sales $ 15,900 $ 19,900 Materials inspection 290 59 In-process (production) inspection 159 124 Finished product inspection 240 69 Preventive equipment maintenance 19 59 Scrap (net) 490 290 Warranty repairs 690 440 Product design engineering 149 260 Vendor certification 21 59 Direct costs of returned goods 265 79 Training of factory workers 39 139 Product testing—equipment maintenance 59 59 Product testing labor 200 89 Field repairs 69 39 Rework before shipment 230 199 Product-liability settlement 350 59 Emergency repair and maintenance 190 74 Required: 1. Classify the cost items in the table into cost-of-quality (COQ) categories. 2. Calculate the ratio of each COQ category to revenues in each of the 2 years. 3. Calculate the percentage change in each COQ category and total COQ and comment on the results: a. Percentage change in total COQ as a percentage of sales, from 2019 to 2020; b. Total COQ in 2020 expressed as a percentage of 2019 sales dollars; c. Percentage change in total prevention costs, 2019 to 2020; d. Percentage change in total appraisal costs, 2019 to 2020; e. Percentage change in total internal failure costs, 2019 to 2020; f. Percentage change in total external failure costs, 2019 to 2020.

Following are selected balance sheet accounts of Headland Bros. Corp. at December 31, 2020 and 2019, and the increases or decreases in each account from 2019 to 2020. Also presented is selected income statement information for the year ended December 31, 2020, and additional information.

Additional information:

Determine the category (operating, investing, or financing) and the amount that should be reported in the statement of cash flows for the following items.

There are different perspectives on human population growth and the dynamics associated with population change. Go to CIA World Factbook website and one developing country and compare the following and answer the questions:

Example of a developed country: China

• Population growth rate: 0.32 percent year 2020 estimation, rank 170 in the whole world
• Birth rate: 11.6 births per 1000 people 2020 estimation, rank 168 in the whole world
• Death rate: 8.2 deaths per 1000 people 2020 estimation, rank 85 in the whole world
• Net migration rate: 0.4 migrant (s) per 1000 people 2020 estimation, rank 123 in the whole world

Example of a developing country: Sudan

• Population growth rate: 2.69 percent year 2020 estimation, rank 17 in the whole world
• Birth rate: 33.8 births per 1000 people 2020 estimation, rank 23 in the whole world
• Death rate: 6.5 deaths per 1000 people 2020 estimation, rank 144 in the whole world
• Net migration rate: 0.4 migrant (s) per 1000 people 2020 estimation, rank 125 in the whole world

Please help me answer the following questions with the information I have provided above.

1.      Why do you think the population is increasing or decreasing for that country? Try to explain at least two reasons as to why this is happening?

2.      How do diseases affect the population? Can you think about any diseases that have affected the human population? (Please use peer reviewed sources to support your answer).

3.      Looking at the countries you compared, what are the toxins present in the environment that impact human health? Provide one example for each country.

Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2020, with payment of 34,000 dinars to be received on March 1, 2021. Icebreaker enters into a forward contract on December 1, 2020, to sell 34,000 dinars on March 1, 2021. The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a straight-line method on a monthly basis. Relevant exchange rates for the dinar on various dates are as follows:

Icebreaker must close its books and prepare financial statements at December 31.

Company purchases materials from a foreign supplier on December 1, 2020, with payment of 34,000 dinars to be made on March 1, 2021. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2020, Brandlin enters into a forward contract to purchase 34,000 dinars on March 1, 2021.

1. a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars.

2. a-2. What is the impact on 2020 net income?

3. a-3. What is the impact on 2021 net income?

4. a-4. What is the impact on net income over the two accounting periods?

5. b-1. Assuming that Icebreaker designates the forward contract as a fair value hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars.

6. b-2. What is the impact on net income in 2020 and in 2021?

7. b-3. What is the impact on net income over the two accounting periods?