1. At the beginning of its fiscal year 2020, an analyst made the following forecast for Greenfield, Inc. (in millions of dollars):

Greenfield has a net debt of $1,950 at the end of 2019. Assume that free cash flow will grow at 4 percent per year in 2024 and 2025, after that this will grow at 5 percent per year. Greenfield had 425 million shares outstanding at the end of 2019, trading at $72.5 per share. Using a required return of 9 percent, calculate the following for Greenfield at the beginning of 2020 (You have to fill in the table below, and also show your working process):

1. The enterprise value                                                                           

[5 marks]

2. Equity value                                                                            

[2 mark]

3. Equity value per share                                                                        

[1 mark]

4. Based on your estimate, should investors buy the share of this company?

                                                                                                              [1 mark]

The term of the non-cancelable lease is 5 years with no renewal option. The equipment has an estimated economic life of 5 years.

The cost of the asset to the lessor is $320,000. The fair value of the asset at January 1, 2020, is $320,000.

The asset will revert to the lessor at the end of the lease term, at which time the asset is expected to have a residual value of $34,000, none of which is guaranteed.

The agreement requires equal annual rental payments, beginning on January 1, 2020.

Collectibility of the lease payments by Sanders is probable.

can you please solve this question as soon as possible. Thank you

Raleigh Department Store uses the conventional retail method for the year ended December 31, 2019. Available information follows:

1. The inventory at January 1, 2019, had a retail value of $45,000 and a cost of $27,500 based on the conventional retail method.
2. Transactions during 2019 were as follows:
   

Sales to employees are recorded net of discounts.

3. The retail value of the December 31, 2020, inventory was $56,100, the cost-to-retail percentage for 2020 under the LIFO retail method was 62%, and the appropriate price index was 102% of the January 1, 2020, price level.
4. The retail value of the December 31, 2021, inventory was $48,300, the cost-to-retail percentage for 2021 under the LIFO retail method was 61%, and the appropriate price index was 105% of the January 1, 2020, price level.

Required:
2. Estimate ending inventory for 2019 assuming Raleigh Department Store used the LIFO retail method. (Amounts to be deducted should be indicated with a minus sign.)

Question 11

The following facts pertain to a non-cancelable lease agreement between Carla Vista Leasing Company and Tamarisk Company, a lessee.

The collectibility of the lease payments by Carla Vista is probable.

1. Discuss the nature of this lease to Tamarisk

2. Discuss the nature of this lease to Carla Vista.

3. Prepare the journal entries on the lessee’s books to reflect the signing of the lease agreement and to record the payments and expenses related to this lease for the years 2020 and 2021. Tamarisk’s annual accounting period ends on December 31. Reversing entries are used by Tamarisk. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 2 decimal places, e.g. 5,275.15. Record journal entries in the order presented in the problem.)

2019 is the first year of operation for Flitz Company. Applicable tax rates enacted by the end of 2018 are as follows:2019 25%2020 20%2021 and later 30%Compute the amount of deferred taxes to appear on the balance sheet at 12/31/19 with proper classifications, prepare the journal entry to record income tax expense for 2019, and show the current and deferred portions of income tax expense on the income statement for 2019.(a) In 2019 Flitz had pre-tax financial income of $450,000.(b) Pre-tax financial income was different from taxable income due to the following:Depreciation, the straight-line method for financial purpose while MACRS is used for tax purpose 35,000(tax-deductible in 2019, expense in 2020 20,000 in 2021 15,000)Fine for pollution 8,000(not tax-deductible, expense in 2019) Revenue received in advance 14,000(taxable 2019, revenue in 2020)Revenue from investment on equity method for financial purpose and cost method is used for tax purpose 10,000(revenue in 2019, taxable in 2020) Litigation accrual 80,000(expense in 2019, tax-deductible in 2022)Interest received on municipal bonds 6,000(revenue in 2019, not taxable)

The following information is available for Vandal Corporation for 2019. There is no Beginning deferred taxes.                                                                                               

1. Depreciation reported on the tax return exceeded depreciation reported on the income statement by $3,540,000. This difference will reverse in equal amounts of $708,000 over the years 2020-2024.

2. Vandal accrues a loss and a related liability of $4,130,000 due to a pending litigation in 2019.         

3. Life insurance proceeds from a key executive is $20,650,000.                                            

4. Rent collected in advance on January 1, 2019, totaled $6,490,000 for a 4-year period. Of this amount, $1,622,500 was reported as earned at December 31, 2019 for book purposes.

5. The tax rates are 30% for 2019 and 20% for 2020 and subsequent years.   

6. Pretax Financial income for 2019 is $149,122,500. .                                              

7. The company was fined $7,375,000 for pollution.                    

8. No deferred taxes existed at the beginning of 2019.                                                                                 

Instructions:                                                                                    

(a) Compute taxable income for 2019 (8 points).                                                                                           

(b) Prepare the journal entries to record income tax expense, deferred income taxes, and income taxes payable for 2019 and 2020. Assume taxable income is $103,250,000 in 2020 (12 points).

(c) Prepare the income tax expense section of the income statement for 2019, beginning with "Income before income taxes." (6 points)                                                                          

Stevens Ltd is the leading retailer of Gym equipment. The following information occurred during May 2020. Stevens Ltd had an opening inventory balance of $8,400,000.

May

1            Returned to the suppliers $80,000 of the opening inventory and received cash.

12          Purchased additional inventory on credit from the supplier for $12,000,000.

18          Sold inventory for $6,000,000 cash (Cost price to Stevens Ltd $2,400,000).

19          Paid the suppliers the account from 12 May.

31          The closing stocktake at year-end revealed an inventory balance of $17,800,000.

Required:

1. Record the above information for the month of May 2020 in the general journal using the perpetual inventory method. Narrations are not required. Ignore GST. [6 marks]

2. Record the above information for the month of May 2020 in the general journal using the physical inventory method. Narrations are not required. Ignore GST. Journal entries should include the four closing entries to determine the cost of goods sold and ending inventory. [8 marks]

3. Present the Income Statement extract for Stevens Ltd using the periodic inventory method for the month ended 31 May 2020. [3 marks]

4. Briefly explain two advantages of the perpetual inventory method for Stevens Ltd. [2 marks]

Stevens Ltd is the leading retailer of Gym equipment. The following information occurred during May 2020. Stevens Ltd had an opening inventory balance of $8,400,000.

May

1            Returned to the suppliers $80,000 of the opening inventory and received cash.

12          Purchased additional inventory on credit from the supplier for $12,000,000.

18          Sold inventory for $6,000,000 cash (Cost price to Stevens Ltd $2,400,000).

19          Paid the suppliers the account from 12 May.

31          The closing stocktake at year-end revealed an inventory balance of $17,800,000.

Required:

1. Record the above information for the month of May 2020 in the general journal using the perpetual inventory method. Narrations are not required. Ignore GST. [6 marks]

2. Record the above information for the month of May 2020 in the general journal using the physical inventory method. Narrations are not required. Ignore GST. Journal entries should include the four closing entries to determine the cost of goods sold and ending inventory. [8 marks]

3. Present the Income Statement extract for Stevens Ltd using the periodic inventory method for the month ended 31 May 2020. [3 marks]

4. Briefly explain two advantages of the perpetual inventory method for Stevens Ltd. [2 marks]

I need this ASAP.

3. The classical dichotomy and the neutrality of money

The classical dichotomy is the separation of real and nominal variables. The following questions test your understanding of this distinction.

Amy spends all of her money on paperback novels and mandarins. In 2015, she earned $18.00 per hour, the price of a paperback novel was $9.00, and the price of a mandarin was $1.00.

Which of the following give the nominal value of a variable? Check all that apply.

Amy's wage is 2 paperback novels per hour in 2015.

Amy's wage is $18.00 per hour in 2015.

The price of a mandarin is $1.00 in 2015.

Which of the following give the real value of a variable? Check all that apply.

Amy's wage is $18.00 per hour in 2015.

Amy's wage is 18 mandarins per hour in 2015.

The price of a paperback novel is 9 mandarins in 2015.

Suppose that the Fed sharply increases the money supply between 2015 and 2020. In 2020, Amy's wage has risen to $36.00 per hour. The price of a paperback novel is $18.00 and the price of a mandarin is $2.00.

In 2020, the relative price of a paperback novel is   .

Between 2015 and 2020, the nominal value of Amy's wage   , and the real value of her wage   .

Monetary neutrality is the proposition that a change in the money supply   nominal variables and   real

The Lynbrook Rentals Company offers credit terms to all of its customers. At the end of 2019, accounts receivables totaled $3,400,000. During 2020 credit sales were $2,100,000 and cash collections from customers were $3,700,000. The allowance method is used to account for uncollectible accounts. The allowance for uncollectible accounts had a credit balance of $42,000 at the beginning of 2020 and $70,000 in receivables were written off during the year as uncollectible. In addition, $20,000 was collected from a customer whose account was written off in 2019. The allowance for uncollectible accounts is determined by an ageing of accounts receivable. An aging of accounts receivable at December 31, 2020, reveals the following:

Age Group 0-60 days 61-90 days 91-120 days Over 120 days

Required:

Percentage of Year-end Percent Receivable in Group Uncollectible

55% 5% 30 15 10 45 5 60

a. Prepare journal entries to record the write-off of receivables, collection of the accounts receivable previously written off, and the year-end adjusting entry for bad debt expense.
b. Show how accounts receivables would be presented in the 2020 year-end balance sheet?