I would need a cash flow statement ONLY for the period ending December 31 2010 PLEASE!

Income Statements

(1) Should be 15, 13 is due to the cumulative rounding

Balance Sheets (year end)

Portland is an economy comprised of only of a restaurant named Gloria’s Kitchen (GK) owned and run by Gloria. In one year, the yearly sale revenue of GK is $1,000,000. GK pays $600,000 to its employees, who pay $140,000 in taxes on this income. GK’s equipment depreciates in value by $125,000. GK pays $50,000 in corporate income taxes and pays Gloria a dividend of $150,000. Gloria pays taxes of $60,000 on this dividend income. GK retains $75,000 of earnings in the business to finance future expansion.

1. How much does this economic activity contribute to each of the following?

GDP, NNP ( net national product), National income, Compensation of employees, Proprietors’ income, Corporate profits, Personal income, and Disposable personal income.

2. Now consider an economy that produces and consumes coconuts and apples. In the following table are data for two different years.

Using 2010 as the base year, compute the following statistics for each year: nominal GDP, real GDP, the implicit price deflator for GDP, and a fixed-weight price index such as the CPI.

c- Now suppose, Gloria consumes only apples. In year 1 (2010) red apples cost $1 each and green apples cost $2 each, and she buys 10 red apples. In year 2 (2015), red apples cost $2, and green apples cost 1$ each, and she buys 10 green apples. Compute a consumer price index for apples for each year. Assume that year 1 is the base year in which the consumer basket is fixed. How does your index change from year 1 to year 2? Compute the deflator for each year. How does the deflator change from year 1 to year 2?

The TQM Corporation is located in a country where there are perfect capital markets and no taxes.... The TQM Corporation is located in a country where there are perfect capital markets and no taxes. The corporation currently has $120 million in equity and $60 million in risk free debt. The return on equity, rS, is 18% and the cost of debt, rB, is 9%. Suppose TQM decides to issue additional equity to repurchase the $60 million in debt so that it will have an all-equity capital structure.

1. If TQM did this, what would the total value of the firm be after the refinancing?

2. What would the return on equity, rS, be after the refinancing?

3. Before the refinancing, a shareholder, Sheila, holds $1 million of TQM stock and $2 million of risk free debt. What is her holding of TQM stock and risk free debt after the refinancing, if she wants to keep the same level of risk in her portfolio?

4. After the refinancing, suppose the firm announces a project costing $5 million with an NPV of $2 million. Investors do not anticipate the project. The project is to be financed entirely by debt. What is the total value of the firm's equity after the debt for the project has been raised?

Asma Jaqqa started a job at the government. Her salary is $105,000 before tax and at the end of this year and all subsequent years her salary will increase by 2.5%.

The tax on her income is 30%. Each year-end she deposits 10% of her after tax salary into an RRSP. After 20 years she plans to move to part time, and her pay will drop by 50%.

When she drops to 50% pay, her tax rate will drop to 20%. She will continue to work at this capacity for 10 years until she retires. She will continue to save 10% of her after tax salary each year into an RRSP. She expects she will earn 6% p.a. on the RRSP investments.

REQUIRED:

a) How much will she have in her RRSP after 20 years?

b) How much will she have in her RRSP after 30 years?

c) If the inflation rate is 1.5% p.a. for every year, what is the real value of the 30 year RRSP balance, in today’s dollars?

d) Explain to Asma, using an example from her case, why she should monitor and use this feedback with her financial plan?

(Calculating project cash flows and​ NPV)  Raymobile Motors is considering the purchase of a new production machine for

$350,000.The purchase of this machine will result in an increase in earnings before interest and taxes of $ 200,000

per year. To operate this machine​ properly, workers would have to go through a brief training session that would cost $22,000

after tax. In​ addition, it would cost ​$4,500 after tax to install this machine correctly. ​ Also, because this machine is extremely​ efficient, its purchase would necessitate an increase in inventory of ​$20,000. This machine has an expected life of 10

​years, after which it will have no salvage value. Assume simplified​ straight-line depreciation, that this machine is being depreciated down to​ zero, a 33 percent marginal tax​ rate, and a required rate of return of 13 percent.

a.  What is the initial outlay associated with this​ project?

b.  What are the annual​ after-tax cash flows associated with this project for years 1 through 9​?

c.  What is the terminal cash flow in year 10 ​(that is, the annual​ after-tax cash flow in year 10 plus any additional cash flows associated with termination of the​ project)?

d.  Should this machine be​ purchased?

(Calculating project cash flows and​ NPV) Raymobile Motors is considering the purchase of a new production machine for $ 550,000. The purchase of this machine will result in an increase in earnings before interest and taxes of $ 100,000 per year. To operate this machine​ properly, workers would have to go through a brief training session that would cost $ $26,000 after tax. In​ addition, it would cost ​$ 6,000 after tax to install this machine correctly. ​ Also, because this machine is extremely​ efficient, its purchase would necessitate an increase in inventory of ​$ 24,000. This machine has an expected life of 10 ​years, after which it will have no salvage value. Assume simplified​ straight-line depreciation, that this machine is being depreciated down to​ zero, a 30 percent marginal tax​ rate, and a required rate of return of 12 percent.

a.  What is the initial outlay associated with this​ project?

b.  What are the annual​ after-tax cash flows associated with this project for years 1 through 9​?

c.  What is the terminal cash flow in year 10 ​(that is, the annual​ after-tax cash flow in year 10 plus any additional cash flows associated with termination of the​ project)?

d.  Should this machine be​ purchased?

Blossom Company sells goods that cost $250,000 to Ayayai Company for $400,000 on January 2, 2020. The sales price includes an installation fee, which is valued at $41,000. The fair value of the goods is $369,000. The goods were delivered on March 1, 2020. Installation is considered a separate performance obligation and was completed on June 18, 2020. Under the terms of the contract, Ayayai Company pays Blossom $250,000 upon delivery of the goods and the balance at the completion of the installation.

Using the five-step process for revenue recognition, determine when and how much revenue would be recognized by Blossom. Assume IFRS is followed. (Round percentage allocations to 2 decimal places, 15.25 and final answers to 0 decimal places, e.g. 5,275.)

eTextbook and Media

List of Accounts

Prepare the journal entries for Blossom on January 2, March 1, and June 18, 2020. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Assignment Problem Three - 14 (Employment Income)

For the past five years, Mr. Brooks has been employed as a financial analyst by a large Canadian

public firm located in Winnipeg. During 2020, his basic gross salary amounts to $63,000. In addition, he was awarded an $11,000 bonus based on the performance of his division. Of the total bonus, $6,500 was paid in 2020 and the remainder is to be paid on January 15, 2020.

During 2020, Mr. Brooks’ employer withheld the following amounts from his gross wages:

Other Information:

1. Due to an airplane accident while flying back from Thunder Bay on business, Mr. Brooks was seriously injured and confined to a hospital for two full months during 2020. As his employer provides complete group disability insurance coverage, he received a total of $4,200 in payments during this period. All of the premiums for this insurance plan are paid by the employer. The plan provides periodic benefits that compensate for lost employment income.
2. Mr. Brooks is provided with a car that the company leases at a rate of $678 per month, including both GST and PST. The company pays for all of the operating costs of the car, and these amounted to $3,500 during 2020. Mr. Brooks drove the car a total of 35,000 kilome- tres during 2020, 30,000 kilometres of which were carefully documented as employment- related travel. While he was in the hospital (see Item 1), his employer required that the car be returned to company premises.
3. In order to assist Mr. Brooks in acquiring a new personal residence in Winnipeg, his employer granted him a five year, interest free loan of $125,000. The loan qualifies as a home reloca- tion loan. The loan was granted on October 1, 2020, and, at this point in time, the interest rate on open five year mortgages was 5 percent. Assume the relevant ITR 4301 rate was 2 percent on this date. Mr. Brooks purchases a house for $235,000 on October 2, 2020. He has not owned a home during any of the preceding four years.
4. Other disbursements made by Mr. Brooks include the following:

Mr. Brooks’ employer reimbursed him for the tuition fees for the accounting course, but not the music course.

Required: Calculate Mr. Brooks’ net employment income for the taxation year ending December 31, 2020.

Consider each of the following independent and material situations. In each case:

• the financial report date is 31 December 2019;

• the field work was completed on 12 February 2020;

• the directors declaration and the audit report were signed on 19 February 2020; and

• the completed financial report accompanied by the signed audit report were mailed to shareholders on 18 March 2020

A. You are an auditor pf PP Limited (PP), a company specialising in industrial property development. On 10 February 2020, you become aware that a major overseas investor has informed the management of PP of their intention to withdraw their investment in a proposed major development. On the basis of its discussions with the investor and previously pledged funds from them, PP has incurred substantial costs in feasibility studies, structural engineering reports and architectural plans. A significant portion of these costs has been capitalised. The management is dependent on finding a new investor to be able to meet these expenses and to continue with the project.

B. You are the auditor of XY Limited (XY), a manufacturing client. XY has plans to upgrade its manufacturing process and plans to finance this by a sale of property which is superfluous to its needs, situated next to its head office. The property has been subdivided for the purposes of the sale and placed on the market in December 2019. On 25 January 2020, the state government approved a plan for the construction of an express freeway. The plan will result in the appropriation of a portion of the property owned by XY and subdivided for the purpose of sale. Construction of the freeway will begin in late 2020. No estimate of the compensation payment is available.

C. You are an auditor of Q limited (Q), a major public company involved in the property development industry. Prior to signing your audit report you sought a letter of comfort from Q’s bankers that the bank would continue to support Q by providing finance over the coming year. The bank agrees that it would continue to provide finance. It was your view that without such support Q had severe cash flow problems and the financial report would need to be modified with respect to a going concern assumption. On 15 March 2020, the company’s bankers wrote to you advising that the company had breached its loan covenant with the bank in February 2020 and that the loan facility was now due and payable and would not be renewed.

D. You are the auditor of Turbo Limited (Turbo), a professional services client. On 15 January 2020, Turbo settled and paid a personal injury claim to a former employee as the result of an accident that occurred in September 2017. The company had not previously recorded a liability for the claim. E. You are the auditor of Charge Limited (Charge), an automobile parts manufacturer. On 2 February 2020, Charge agreed to purchase for cash the outstanding shares of Electronic Fuel Injection Limited. The acquisition is likely to double the sales volume of Charge.

Required: For each of the events A to E:

1. Outline the required treatment in the financial report, if any. Justify your answer.