1. Balthrop Co. is a new education consulting firm that just paid its annual dividend of $1.00 yesterday. Analysts believe that due to a special one-time boost in revenue, the following year’s dividend (t=1) will be $3.50. Dividends will decline at a 30% rate for 2 years, after which point they will grow at a steady rate of 3% forever. Similar firms in the industry have a 20% cost of capital associated with them.

2. Balthrop Co. is a new education consulting firm that just paid its annual dividend of $1.00 yesterday. Analysts believe that due to a special one-time boost in revenue, the following year’s dividend (t=1) will be $3.50. Dividends will decline at a 30% rate for 2 years, after which point they will grow at a steady rate of 3% forever. Similar firms in the industry have a 20% cost of capital associated with them. \

3. QUESTION starts below Using the same information as in parts 1 and 2, and the calculated share price from part 2:

You are offered the chance to buy shares in Balthrop Co. for $11.75 per share. Should you purchase shares? Would your answer change if you felt Balthrop Co. would have a 10% cost of capital? Why/why not?

Lavage Rapide is a Canadian company that owns and operates a large automatic carwash facility near Montreal. The following table provides data concerning the company’s costs: Fixed Cost per Month Cost per Car Washed Cleaning supplies $ 0.80 Electricity $ 1,100 $ 0.08 Maintenance $ 0.15 Wages and salaries $ 4,300 $ 0.40 Depreciation $ 8,400 Rent $ 2,000 Administrative expenses $ 1,400 $ 0.02 For example, electricity costs are $1,100 per month plus $0.08 per car washed. The company expects to wash 8,300 cars in August and to collect an average of $6.70 per car washed. The actual operating results for August appear below. Lavage Rapide Income Statement For the Month Ended August 31 Actual cars washed 8,400 Revenue $ 57,710 Expenses: Cleaning supplies 7,140 Electricity 1,734 Maintenance 1,485 Wages and salaries 7,980 Depreciation 8,400 Rent 2,200 Administrative expenses 1,466 Total expense 30,405 Net operating income $ 27,305 Required: Complete the flexible budget performance report that shows the company’s activity variances and revenue and spending variances for August. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

The researchers measured the impact of software that monitors employee-level theft and sales transactions, before and after the technology was installed, at 392 restaurants in 39 states. The restaurants were in five “casual dining” chains."

"The savings from the theft alerts themselves were modest, $108 a week per restaurant. However, after installing the monitoring software, the revenue per restaurant increased by an average of $2,982 a week, or about 7 percent."

"The impact, the researchers say, came not from firing workers engaged in theft, but mostly from their changed behavior. Knowing they were being monitored, the servers not only pulled back on any unethical practices, but also channeled their efforts into, say, prompting customers to have that dessert or a second beer, raising revenue for the restaurant and tips for themselves."

"In the research, the data sets were sizable. For example, there were more than 630,000 transactions by servers tracked and collected each week over the course of the project."

Based on this research, do you think employee monitoring and surveillance are actually good things? Should companies employ more strategies to monitor employee behavior? What are the drawbacks to employee monitoring? Using the ethical models that we are learning in this class (Utilitarianism, Deontology, Virtue Ethics, Ethic of Care), is employee monitoring an ethically sound practice?

Crowley Company has the following ledger accounts and adjusted balances as of December 31, 2017. All accounts have normal balances. Crowley’s income tax rate is 40%.

Accounts Payable……………………………. 28,125

Accounts Receivable………………………… 202,500

Accumulated Depreciation-Building………… 56,250

Administrative Expenses……………………. 60,750

Allowance for Doubtful Accounts………….. 22,500

Bonds Payable (Mature 2020)………………. 281,250

Building……………………………………… 416,250

Cash…………………………………………. 28,125

Common Stock……………………………… 300,000

Cost of Goods Sold…………………………. 450,000

Dividends…………………………………… 18,000

Gain on Sale of Land…………………………..21,000

Interest Revenue…………………………….. 22,500

Inventory…………………………………….. 315,000

Land…………………………………………. 258,750

Loss from Operations of Division X………… 52,500

(Division X is a component of Larson Company) Loss from Sale of Division X........................... 49,500

(Division X is a component of Larson Company) Patent………………………………………… 33,750

Paid-In Capital in Excess of Par ……………. 150,000

Prepaid Rent…………………………………. 11,250*

Retained Earnings, January 1, 2017………… 247,050

Sales Returns and Allowances……………… 10,500

Sales Revenue………………………………1,023,000

Selling Expenses……………………………. 112,500

*Three years rent paid in advance for offsite document storage. Crowley has 200,000 shares of $10 par common stock authorized and has no treasury stock. Instructions:

Use this information to prepare a multiple-step income statement, a retained earnings statement, and a classified balance sheet.

After reading newspapers and journal articles and using wider research platforms such as the Australian Taxation Office Rulings on the subject of Taxing of Cryptocurrency and how governments are going to start tackling this issue you should be able to form an opinion to whether the policing of cryptocurrency will be effective or will it be a difficult task for revenue authorities.
For this area of the assessment you need to explain
a) What is Cryptocurrency and how does it work?
b) How is Cryptocurrency taxed within Australia at the moment?
c) What are revenue authorities doing going forward to ensure that it is correctly taxed within their own regions?
d) What is your opinion of the measures being taken by the tax authorities to ensure that they catch all the taxpayers partaking in the cryptocurrency world, will it be successful or will it be difficult to police? This area is based about your opinion so you need to ensure that you give us your own personal views of the topic and not a summary of the articles you have collected in part one of the assessment task.
The requirements of the assignment for part two is to produce a 1500 word essay on your opinion of this topic which should be based on your findings from the Australian newspapers you have collected and any other research you may want to undertake, please do not just provide a detailed summary of the articles you have included in Part 1

SOLVE MANUALLY ALL THE PARTS IN THIS QUESTION

The Black Lotus Co. paid $250,000 for a second-hand cruise. This cruise is used for tourism purpose. It will generate $140,000 in revenue and incur $45,000 in general expenses from the first year. Revenue will increase at 3% each year and expenses will increase at 2% each year. The asset is classified as a 3-year MACRS property for depreciation purposes. The expected salvage value is $15,000 at the end of the project life. The firm pays taxes at a rate of 25% and has a MARR of 15%. The project has a 4- year life. A loan is to be taken out for 40% of the initial investment amount. The loan will be repaid annually over the project life in equal payments, at an interest rate of 5%. Calculate the following:

1. Determine the allowed depreciation amounts by using 3-year MACRS (4 points)

2. Calculate the repayment schedule of the loan (4 points)

3. Calculate the Gains (Losses) and tax associated with Asset Disposal (2 points)

4. Create the Income Statement (8 points)

5. Develop a Cash Flow Statement (8 points)

6. Is this project justifiable at a MARR of 15%?

6.1. Calculate the NPW (2 points)

6.2. Calculate IRR (2 points)

6.3. State your conclusions.

uzzy Monkey Technologies, Inc., purchased as a long-term investment $90 million of 6% bonds, dated January 1, on January 1, 2021. Management intends to have the investment available for sale when circumstances warrant. For bonds of similar risk and maturity the market yield was 8%. The price paid for the bonds was $73 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2021, was $80 million.

Required:
1. to 3. Prepare the relevant journal entries on the respective dates (record the interest at the effective rate).

-Record Fuzzy Monkey’s investment on bonds on January 1, 2021.

-Record the interest revenue on June 30, 2021.

-Record the interest revenue on December 31, 2021.
4-a. At what amount will Fuzzy Monkey report its investment in the December 31, 2021, balance sheet?
4-b. Prepare the entry necessary to achieve this reporting objective.

-Record any necessary entry to report the investment at the correct value on the balance sheet.
5. How would Fuzzy Monkey's 2021 statement of cash flows be affected by this investment? (If more than one approach is possible, indicate the one that is most likely.)

Fuzzy Monkey Technologies, Inc., purchased as a short-term investment $90 million of 6% bonds, dated January 1, on January 1, 2018. Management intends to include the investment in a short-term, active trading portfolio. For bonds of similar risk and maturity the market yield was 8%. The price paid for the bonds was $73 million. Interest is received semiannually on June 30 and December 31. Due to changing market conditions, the fair value of the bonds at December 31, 2016, was $80 million.

Required:

1.Prepare the relevant journal entries on the respective dates (record the interest at the effective rate). (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Do not round intermediate calculations. Enter your answers in millions rounded to 2 decimal places, (i.e., 5,500,000 should be entered as 5.50).) a. Record Fuzzy Monkey’s investment on bonds on January 1, 2018.

b. Record the interest revenue on June 30, 2018.

c. Record the interest revenue on December 31, 2018.

2. At what amount will Fuzzy Monkey report its investment in the December 31, 2018, balance sheet?

3. How would Fuzzy Monkey's 2018 statement of cash flows be affected by this investment?

a. Operating cash flow

b. Investing cash flow

The following data pertain to problems 6.3 through 6.6:
St. Benedict’s Hospital has three support departments and four patient services departments. The direct costs to each of the support departments are as follows:
General Administration $2,000,000

Facilities $5,000,000

Financial Services $3,000,000
Selected data for the three support and four patient services departments are shown below:

Q:

6.3 Assume that the hospital uses the direct method for cost allocation. Furthermore, the cost driver for general administration and financial services is patient services revenue, while the cost driver for facilities is space utilization.

a. What are the appropriate allocation rates?

b. Use an allocation table similar to Exhibit 6.7 to allocate the hospital’s overhead costs to the patient services departments.