Your company produces mass spectrometers for sale to colleges and universities throughout the United States. On February 12, the University of Washtaw contacts your company to purchase 12 mass spectrometers at $1,000,000 per unit. You enter into a contract with the university on March 1 under those terms, along with a delivery date of December 1. On April 10, you receive a letter from the university stating that, due to ambiguities in the contract language, they believe you are only owed $10,000,000. Specifically, Washtaw states, "please find enclosed a check for $10,000,000 for payment in full, check marked as such. Also, this is the total amount of our budget. We would be more agreeable to cancelling the contract than to have to come up with another $2,000,000." Your company has not yet started production on the spectrometers. What are your options and why?

1. Preparation Review the six tasks that you need to complete to prepare for a job interview. What two tasks are the easiest for you to complete? What two tasks do you need to focus the most attention on when preparing for an interview? 2. Interview Stages What are the three stages of every interview, and which is the most important? Which stage do you feel you excel at during the interview process? 3. Interview Questions Give an example of a behavioral interview question. Give an example of a situational interview question. Give an example of a question to ask an interviewer. 4. Follow-Up In addition to displaying strong communication skills and business​ etiquette, why are​ follow- up messages​ important? What information should be included in a​ follow-up message after an​ interview?

Villa Corporation (VC) is a private company that follows ASPE. The company’s policy is to report all cash flows arising from interest and dividends as operating activities. The company’s activities for the year ended December 31, 2020 included the following:

1. VC reported income before income taxes of $400,000. Income tax expense was $50,000.

2. Retained earnings increased by $340,000 for the year; the dividends payable account increased by $5,000.

3. Income taxes payable increased by 2,000 during the year.

4. Interest expense for the year was $20,000; the interest payable account increased by $12,000.

5. Accounts receivable decreased by $18,000 and accounts payable increased by $40,000 during the year.

6. Inventory increased by $14,000 during the year.

7. VC sold equipment with a net book value of $40,000 for $42,000 cash.

8. VC sold a long-term investment for $12,000; the book value of the investment was $15,000.

1. Depreciation expense for the year totaled $22,000.

10. VC recorded a goodwill impairment loss of $15,000 during the year.

11. VC acquired $200,000 in equipment by way of a $20,000 cash down payment and a $180,000 loan from its local bank.

Required:

1. Prepare the cash flows from operating activities section of the Cash Flow Statement for Villa Corporation for the year ended December 31, 2020 using the indirect method.       

2. For each activity described in this question that is not classified as an operating activity, explain how the activity and the related cash flow would be reported in Villa Hospitality’s Cash Flow Statement.

Cash Flow Statement (Partial)

For the Year Ended December 31, 2020 (Indirect Method)

2. Consider the following data on salaries and experience. Persons 2,4,6,8,and 9 have MBA degrees. All others only have undergraduate degrees.

1. Calculate the regression of Salary on Experience within a model that controls for whether a person has an MBA or not.

b. Print the data set that allows you to do this regression. Sketch the graph the estimated regression that clearly indicates the impact of a MBA degree on Salary.

c. What is the market value of the MBA degree?

Person           Salary              Experience

1                   $130,468            10 Years

2                       62,250              1

3                       50,000              2.3

4                     140,000              9

5                     110,000              8

6                      80,050              2.8

7                      95,772              7

8                     110,000              6

9                       87,752              4.2

10                     79,290              5

Royal Minty of Britain has purchased 20,000 ounces of silver from Silver Products at US$8.30, payable in 180 days. The current spot rate is 1.8127 ($US/£) and the 180-day forward is 1.7863. The CEO at Royal Minty suggests that the spot rate in six months time will be 1.7915. Interest rates in Britain are currently 4.70 percent for 180 days and 1.15 percent in the United States. a-1. Calculate the receipts if Royal Minty takes a chance on the spot rate. (Round the final answer to the nearest whole pound.) Receipts £ a-2. Calculate the receipts if Royal Minty books a forward contract. (Round the final answer to the nearest whole pound.) Receipts £ a-3. Calculate the receipts if Royal Minty buys a money market hedge. (Round intermediate calculations and the final answer to the nearest whole pound.) Receipts £

Royal Minty of Britain has purchased 20,000 ounces of silver from Silver Products at US$8.30, payable in 180 days. The current spot rate is 1.8127 ($US/£) and the 180-day forward is 1.7863. The CEO at Royal Minty suggests that the spot rate in six months time will be 1.7915.

Interest rates in Britain are currently 4.70 percent for 180 days and 1.15 percent in the United States.

a-1. Calculate the receipts if Royal Minty takes a chance on the spot rate. (Round the final answer to the nearest whole pound.)

Receipts           £

a-2. Calculate the receipts if Royal Minty books a forward contract. (Round the final answer to the nearest whole pound.)

Receipts           £

a-3. Calculate the receipts if Royal Minty buys a money market hedge. (Round intermediate calculations and the final answer to the nearest whole pound.)

Receipts           £   

b. Not available in Connect.

Royal Minty of Britain has purchased 20,000 ounces of silver from Silver Products at US$8.30, payable in 180 days. The current spot rate is 1.8127 ($US/£) and the 180-day forward is 1.7863. The CEO at Royal Minty suggests that the spot rate in six months time will be 1.7915.

Interest rates in Britain are currently 4.70 percent for 180 days and 1.15 percent in the United States.

a-1. Calculate the receipts if Royal Minty takes a chance on the spot rate. (Round the final answer to the nearest whole pound.)

Receipts           £

a-2. Calculate the receipts if Royal Minty books a forward contract. (Round the final answer to the nearest whole pound.)

Receipts           £

a-3. Calculate the receipts if Royal Minty buys a money market hedge. (Round intermediate calculations and the final answer to the nearest whole pound.)

Receipts           £   

The Chancellor of the University System has recently indicated that classes in the Fall of 2020 will continue to be virtual to be able to cope with the Corona Virus. Assume that all business students take a student satisfaction survey each semester. A researcher wants to compare two random groups of students from Fall 2019 to Fall 2020 in their satisfaction scores. The Chancellor has indicated that student satisfaction will improve with virtual classes. The groups are called FSS2019 for Student Satisfaction scores for Fall, 2020 and FSS202- for Student Satisfaction Scores for Fall, 2020. The study will calculate the difference using a confidence level of 95%. The population standard deviation is known.

Which of the following is a good example of a Null Hypothesis?

Select one:

a. FSS2020 >= FSS2019

b. FSS2019 = FSS2020

c. FSS2020<= FSS2019

d. FSS2019<FSS2020

What best describes this type of test?

Select one:

a. Two-tailed test

b. One-tailed test

c. Weighted Means

d. P-value approach

The results are in, but due to the inability of the researcher to get random samples, the research believes that they may be subject to Type 1 error. What will that mean for this research?

Select one:

a. The researcher will reject the true Null Hypothesis

b. The researcher will fail to reject the true Null Hypothesis

c. The researcher will reject the true Alternative Hypothesis

d. The researcher will fail to reject the true Alternative Hypothesis

The results are in, but due to the inability of the researcher to get random samples, the research believes that they may be subject to Type 2 error. What will that mean for this research?

Select one:

a. The researcher will reject the true Null Hypothesis

b. The researcher will fail to reject the true Null Hypothesis

c. The researcher will reject the true Alternative Hypothesis

d. The researcher will fail to reject the true Alternative Hypothesis

On January 1, 2017, Company One’s Board of Directors approved granting 5,000 stock options to a select group of senior employees. The requisite service period is five years with 20% of the options vesting each year from 2017 to 2021. The fair value of the option is as below:

1. Based on the description in question, determine the type of vesting condition (cliff vs. graded)
2. What is the total compensation expense needed to be recognized under US GAAP for each year from 2017 to 2021?
3. What is the total compensation expense needed to be recognized under IFRS for each year from 2017 to 2021 (round to one decimal point)?

Question 2 Gamma Ltd. acquired a tract of land with a building for $600,000. The closing statement indicated that the land’s assessed tax value was $400,000 and the building’s value was $200,000. The land was acquired as a site for Gamma's new office building and immediately after acquisition the building was demolished at a cost of $60,000. Gamma Ltd. constructed a new building, for $900,000 plus the following costs: Building design $ 20,000 Construction foreman salary 40,000 Imputed interest on retained earnings used during construction 30,000 Since Gamma has no debt, and a surplus of cash, all amounts were paid with cash.

a) Calculate the cost of the land. b) Calculate the cost of the building. c) Assume your answer to b) above was $1,000,000. Gamma Ltd. has a December 31 yearend. The building was completed and occupied on September 30, 2020. The estimated useful life of the building is 20 years, the residual value is estimated to be $100,000, and double-declining-balance depreciation is used. Calculate depreciation expense for 2020 and 2021. d) Assume your answer to b) above was $1,000,000. The building was completed and occupied on January 1, 2020. The estimated useful life of the building is 20 years and the residual value is estimated to be $100,000. On January 1, 2020, Gamma received a government grant of $400,000 to assist in the cost of the building. Prepare the journal entries required during 2020 related to the government grant and depreciation of the building. Assume straight-line amortization.