Diaz Company incurred the following costs during the year 2020.

1.	Salaries expense related to design for a trademark with an indefinite estimated life	$12,000
2.	Materials used for research and development projects for the current year	20,000
3.	Fees paid to external consultants related to research and development projects	60,000
4.	Trouble-shooting in connection with breakdowns during production	36,000
5.	Design of tooling involving new technology	18,000
6.	Cost of equipment (purchased January 2019) that will have alternative uses over 6 years	160,000
7.	Salaries expense related to updates to an existing product	80,000
8.	Allocation of rent expense for a facility partially used for research and development activities	30,000
9.	Routine testing of product during commercial production	56,000

Determine the amount of research and development costs that would be disclosed in the financial statements of Diaz company for the year 2020.

Note: Round your answer to the nearest whole dollar.

Diaz Company incurred the following costs during the year 2020.

1.	Salaries expense related to design for a trademark with an indefinite estimated life	$12,000
2.	Materials used for research and development projects for the current year	20,000
3.	Fees paid to external consultants related to research and development projects	60,000
4.	Trouble-shooting in connection with breakdowns during production	36,000
5.	Design of tooling involving new technology	18,000
6.	Cost of equipment (purchased January 2019) that will have alternative uses over 6 years	160,000
7.	Salaries expense related to updates to an existing product	80,000
8.	Allocation of rent expense for a facility partially used for research and development activities	30,000
9.	Routine testing of product during commercial production	56,000

Determine the amount of research and development costs that would be disclosed in the financial statements of Diaz company for the year 2020.

Note: Round your answer to the nearest whole dollar.

 

Jane Jones organized Kinney Enterprise, Inc., in January 2018. The corporation immediately issued at $15 per share on half of its 260,000 authorized shares of $1 par value common stock. On January 2, 2019, the corporation sold at par value the entire 10,000 authorized shares of 10 percent, $100 par value cumulative preferred stock. On January 2, 2020, the company again needed capital and issued 5,000 shares of an authorized 8,000 shares of no-par cumulative preferred stock for a total of $320,000. The no-par shares have a stated dividend of $6 per share.

The company declared no dividends in 2018 and 2019. At the end of 2019, its retained earnings were 530,000. During 2020 and 2021 combined, the company earned a total net income of $1,400,000. Dividends of 90 cents per share in 2020 and $2 per share in 2021 were paid on common stock.

Required:

1.   Prepare the stockholders’ equity section of the balance sheet at December 31, 2021. Include a supporting schedule showing your computation of retained earnings at the balance sheet date. Ensure that your partial balance sheet is labeled correctly and uses the correct format for the stockholders’ equity section of the balance sheet.

2. Assume that on January 2, 2019, the corporation could have borrowed $1,000,000 at 10 percent interest on a long-term basis instead of issuing the 10,000 shares of the $100 par value cumulative preferred stock. Identify two reasons a corporation may choose to issue cumulative preferred stock rather than finance operations with long-term debt.

The following facts pertain to a non-cancelable lease agreement between Mooney Leasing Company and Rode Company, a lessee. Commencement date May 1, 2020 Annual lease payment due at the beginning of each year, beginning with May 1, 2020 $20,471.94 Bargain purchase option price at end of lease term $4,000 Lease term 5 years Economic life of leased equipment 10 years Lessor’s cost $65,000 Fair value of asset at May 1, 2020 $91,000 Lessor’s implicit rate 8 % Lessee’s incremental borrowing rate 8 % The collectibility of the lease payments by Mooney is probable. Click here to view factor tables. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.) (a) Correct answer iconYour answer is correct. Discuss the nature of this lease to Rode. The nature of this lease to Rode is a lease. eTextbook and Media List of Accounts Attempts: 1 of 5 used (b) Correct answer iconYour answer is correct. Discuss the nature of this lease to Mooney. The nature of this lease to Mooney is a lease. eTextbook and Media List of Accounts Attempts: 3 of 5 used (c) Prepare a lease amortization schedule for Rode for the 5-year lease term. (Round answers to 2 decimal places, e.g. 5,275.15.) RODE COMPANY (Lessee) Lease Amortization Schedule Date Annual Lease Payment Plus BPO Interest on Liability Reduction of Lease Liability Lease Liability 5/1/20 $ $ $ $ 5/1/20 5/1/21 5/1/22 5/1/23 5/1/24 4/30/25 $ $ $ eTextbook and Media List of Accounts Attempts: 0 of 5 used?

Please answer the following using the information given, Thanks!

Introduction:

The Nimble Storage is a hybrid growing data storage System Company situated in Silicon Valley. The CEO of the company is Suresh Vasudevan, and the Vice President of the HR department is Paul Whitney. The company's purpose of developing the hybrid system, which is used in flash memory (It is a storage memory that leads to rapid access to random data) and hard disk to increase the performance of the company at the competitive prices offered to the customers in order to give the efficient and the flash storage platform.

The case analyzes the past performance of the company and the talented hiring of the personnel by Whitney, where the founder and CEO of the company plan to transfer the storage world into the hybrid storage system and wanted to achieve the goal to make a billion dollar company within three years. For this purpose, Suresh Vasudevan aimed to focus on both short term and long term key people initiative to measure the results. The company decided to launch the new leadership program named "LEAD" for the sustainable future growth of the company and also effects on the people initiatives to go forward in future.

The objective of the case is to make quantitative and qualitative analysis by identifying the issues, providing solutions to the problems, and providing an alternative for the growth and evaluating and choosing the best alternative and provide an implementation plan.

Define the issues/Problem statement:

The company has finished its second full fiscal year of storage on January 31, 2013, which provided the great opportunity for reproducing its core values, reviewed the success over the last years and also the strong personnel who made it possible. The company always aims to deliver the world’s most efficient way of data storage by target the broad range of enterprise applications with the goal of optimizing in many factors such as performance efficiency, capacity efficiency, data protection and dramatic simplicity.

Problems/Issues and its solutions:

In order to stabilize the performance, the company faced many potential problems and issues in producing the product and also HR-related issues faced by Whitney.

The first problem was related to the health of the customers' network that led to the unusual high temperature in the data center. The company is now organizing the data center in order to convince the customers to the belief that will help to solve the range of problems in one single platform.

The second problem was the business team was not effective due to lack of motivation and employee turnover, it as one of the biggest challenge that company was facing in last nine months. So, the business wanted to improve its values by making the business by conducting two ways process with the two-sided as the same coin. It would result in the powerful feedback and result oriented of employees, which will result in employee retention and run the business with the order of framework and program perspective.

The company was facing the hiring issue as they wanted to maintain its culture and status quo, the company needed to change the paid time off/personal time off PTO policy in fifteen days, the company wanted to increase the length of services, and they tested the idea but not preferred by the company. Therefore, the employees wanted a favor, and the company made the PTO flexible and unlimited sick leaves and holidays for employee retention.

Suresh Vasudevan had talked about the cultural openness and transparency in sharing the information to the tons of people via any social website, such as Facebook and Google. The company estimates that the openness will be challenging to measure as the hidden information would be exposed publicly.

Analyses Nimble Storage’s mission statement

The HR practice of Nimble cannot be called as a best global practice because, It lacked in various scale on the HR operation and management. In global HR practice, employees concern and issues are solved on the earliest date. Most of the companies have pro-active HR policy due to which new people wants to be associated with the company. The policy consists of standard leave policy, motivating employees and changing the organization culture according to the need of the time. All these are lacks in the company.

From the case we cannot inferred the facilities provided to the global employees by the company. In geocentric perspective the gaps are in HR operation of the company which believes in status quo. In rapidly changing world order it won't work, and organization should be dynamic to deal with the challenges. The company also changed the leave policy and make favorable for employees because it had more attrition rate and wanted to retain the employees.

Global companies are using HRIS (Human Resources Information System) and this company should also use this. From the text of the case nowhere it is mentioned about the technological tools for HR so we can assume that it is not present in that scale in the company. HRIS promote transparency and openness in the system and employee will have access to the relevant data they should know.

Nimble is a leader in predictive flash storage solutions; they take advantage of flash, cloud and big data analytics to deliver data velocity to their customers. Their employees are committed to their vision and are passionate about the work they do (Bahrami, 2015). The annual goal is to become a billion dollar company in three years by selling hybrid storage platform to efficiently store and use data, hire and retain right manpower without disturbing the culture of the organization.

The three major problems are:

Health of customers network

Employee retention

Employee motivation

Employee Retention and motivation are taken care of by multiple measures by launching a LEAD leadership program to achieve a sustainable future growth of the company and encourages people to move forward in the future. They have also made PTO flexible and have allowed unlimited sick leaves and holidays for employee retention and motivation.

Customer network and storage issues are resolved by predictive flash hybrid platform. The hybrid storage system makes organizations more competitive by using flash memory which gives rapid access to random data and hard disk to increase the performance of the company by giving efficient and flash storage.

The company is trying present itself as a global organization by introducing openness and transparency but is still limited by its conservative culture in hiring and fear of their information being exposed.

“Geocentric focus is when the company focuses on global advantages, global communication, and global hiring off manpower based on their skill sets rather than country of origin. management looks at opportunities on a global scale. Instead of focusing on the way that business gets done in a given country, it looks at how to conduct business anywhere in the world, based on common ways of communicating (Lander, n.d)”. Nimble wants to transfer the world storage to the hybrid storage system and wanted to achieve the goal to become a billion-dollar company within 3 years. The hybrid storage system makes organizations more competitive by using flash memory which gives rapid access to random data and hard disk to increase the performance of the company by giving efficient and flash storage platforms. The target is to focus on a broad range of enterprise applications with the goal to optimize in many areas as follows:

Performance efficiency

Capacity efficiency

Data protection

Dramatic simplicity

The geocentric approach to business will give the following advantages:

Putting the best people with best skills suited for the profile irrespective if they are based out of Taiwan or California

Improve the global image of the organization

Give access to more qualified and suitable manpower

Flexibility to manage customers across different time zones as if we have clients in Asia we can have customer service employees based out of remote locations in Asia.

The geocentric approach means a global approach and a global advantage to the business. The company can have the following advantages:

Best skilled and suitable resources across the globe

The benefit of cross cultural thinking and exposure and can target customers across the globe

Address customer requirement in their time zone

Customers might feel more comfortable with customer service executives from the same region

The ideas generated will be global and can address many regional problems.

To summarize everything, a global or geocentric approach will be useful to get a flexible, multicultural and multi dimension vision to your business. We can see examples of giants like Google and Facebook who have used geocentric approach to make success of their business.

In order tackle the global business proposition, there are two important staffing approaches i.e. ethnocentric and geocentric approach. Since Nimble storage is aspiring to provide solutions to organizations all across the world, the company has to move from ethnocentric staffing to geocentric staffing. But there are challenges in the transition.

Ethnocentric staffing is a practice of appointing staff from the company’s home country with a belief that native employees would be more aligned to the interests of the company headquarters. “Ethnocentric staffing means you hire management that is the same nationality as the parent company (Johnston, n.d)”. The advantages of this practice are that there will be alignment in the interests and viewpoints of the head office. Communication with a same culture employee is easier than with an employee from different culture. There are disadvantages to the practice, that the company may not be able to understand the local market and culture. Second disadvantage is that employee from the parent company can be costlier than an employee from the host country. Finally, high ration of expatriates from the parent company can give wrong messages to the local employees and customers.

Geocentric staffing is more suitable to companies aiming to serve global customers. The Nimble storage must move to geocentric staffing. In geocentric staffing practice, the performance of the job candidate is considered rather than the cultural orientation. For multinational operation, geocentric staffing is preferred. There are many benefits to Nimble Storage by adopting geocentric staffing, i.e. the company can integrate global operations at lesser cost, can derive benefits from the diversity of employees, improved management of the local issues, better market penetration in each region of operations, etc.

There are risks in managing geocentric staff. For example, from a political angle when one nation dominates the other in economic and political dimension, the staffing pattern can have tremendous influence on the organization. Some staff may feel they are treated in discriminate manner and compensation is disproportionate to others in international locations. The perception of disparity of employee treatment can lead to distrust and negative consequences of employee hostility.

Questions:

a. Determine gaps in the organization’s current practices within the global market that are relevant to the human resources team of the organization.

b. Illustrate the potential gains for the organization regarding their business practices if they adopt a more geocentric focus. Be sure to support your response with examples. What will be the benefit for the business of the organization should they adopt a more global approach?

                                                                                            

Claims against a company whereby the creditor has a charge against specific property is known as a:

      a.    circulating security interest.

      b.    specific debt covenant.

      c.     non-circulating security interest.

      d.    floating charge.

The details below were extracted from the accounting records of Great South East Ltd (a company in the process of liquidation).

40 000 $1 preference shares fully paid	$40 000
120 000 $1 ordinary shares paid to 50 cents	60 000
	$100 000
Cash available (after payment of all creditors)	$10 000

Assume that the constitution of Great South East Ltd states that in the event of liquidation, all shares are to rank equally, based on the number of shares held, in distributing any surplus or deficiency.

For preference shareholders, what is the amount of the actual refund or call?

The details below were extracted from the accounting records of Great South East Ltd (a company in the process of liquidation).

                                                                                                                     

40 000 $1 preference shares fully paid	$40 000
120 000 $1 ordinary shares paid to 50 cents	60 000
	$100 000
Cash available (after payment of all creditors)	$10 000

Assume that the constitution of Great South East Ltd states that in the event of liquidation, all shares are to rank equally, based on the number of shares held, in distributing any surplus or deficiency.

What will be the deficiency or surplus apportioned to preference shareholders?

On 1 January 2014, Cowboys Ltd acquired all the issued shares in Tate Ltd. At that date, the plant of Tate Ltd had a fair value of $20 000 more than its carrying amount and an estimated useful life of 5 years. Tate Ltd depreciates the plant on a straight-line basis. The plant was sold to external parties on 31 December 2014. The business combination valuation entries in relation to the plant as at 30 June 2015 will include:

1. Adjustments to the plant account to recognise the fair value adjustment at acquisition date
2. Adjustments to the current depreciation expense
3. Adjustments to retained earnings (reflecting previous year's depreciation and related tax effect)
4. Transfers from business combination valuation reserve to retained earnings

Unity Limited acquired 100% of the share capital of Bellvista Limited for $300 000. Bellvista had total shareholder’s equity of $200 000. The book values of Bellvista Limited’s assets were: buildings $100 000, machinery $120 000. The fair values of these assets were: buildings $180 000, machinery $140 000. The tax rate is 30%. The acquisition analysis will determine:

Fredericks Limited acquired all the identifiable assets and liabilities of Nicole Limited for $134 000. Nicole's assets and liabilities as on the acquisition date (assumed at fair value) are: plant $72 000; inventories $40 000; accounts receivable $18 000; patents $10 000; goodwill $5 000; accounts payable $16 000. The difference on acquisition is:

On 1 July 2014, Peter Limited acquired all the issued shares of Kerri Limited for $100 000 when the equity of Kerri Limited consisted of:

Share capital	$70 000
Retained earnings	30 000

The pre-acquisition entry at 1 July 2014 is:

I.	Shares in Kerri Limited	Dr	100 000
	Retained earnings	Cr		30 000
	Share capital	Cr		70 000
II.	Retained earnings	Dr	30 000
	Share capital	Dr	70 000
	Shares in Kerri Limited	Cr		100 000
III.	Retained earnings	Dr	30 000
	Share capital	Dr	70 000
	Business Combination Valuation Reserve	Dr	10 000
	Shares in Kerri Limited	Cr		110 000
IV.	Goodwill	Dr	10 000
	Share capital	Dr	70 000
	Retained earnings	Dr	30 000
	Shares in Kerri Limited	Cr		110 000

On January 1, 2020, Swifty Company purchased 12% bonds having a maturity value of $230,000, for $247,437.40. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Swifty Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.

Prepare the journal entry at the date of the bond purchase. (Enter answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when 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.)

Date	Account Titles and Explanation	Debit	Credit

Jan 01, 2020

----------------------------------------------------------------------

Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.)

Prepare a bond amortization schedule. (Round answers to 2 decimal places, e.g. 2,525.25.)

Schedule of Interest Revenue and Bond Premium Amortization Effective-Interest Method
Date		Cash Received		Interest Revenue		Premium Amortized		Carrying Amount of Bonds
1/1/20		$		$		$		$
1/1/21
1/1/22
1/1/23
1/1/24
1/1/25 -------------------------------- Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when 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.) Date      Account Title and Explanation Debit Credit Dec. 31, 2020 Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021. (Round answers to 2 decimal places, e.g. 2,525.25. Credit account titles are automatically indented when 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.) Date Account Title and Explanation Debit    Credit Dec. 31, 2021

Flounder Limited, which follows IFRS, has adopted the policy of classifying interest paid as operating activities and dividends paid as financing activities. Condensed financial data for 2020 and 2019 follow (in thousands):

FLOUNDER LIMITED Comparative Statement of Financial Position December 31
			2020			2019
Cash			$2,010			$1,150
FV-NI investments			1,300			1,420
Accounts receivable			1,845			1,350
Inventory			1,660			2,030
Plant assets			2,005			1,790
Accumulated depreciation			(1,200	)		(1,170	)
			$7,620			$6,570
Accounts payable			$1,295			$950
Accrued liabilities			290			340
Mortgage payable			1,370			1,590
Common shares			2,080			1,790
Retained earnings			2,585			1,900
			$7,620			$6,570
FLOUNDER LIMITED Income Statement Year Ended December 31, 2020
Sales						$6,885
Cost of goods sold						4,700
	Gross margin					2,185
Administrative expenses						910
Income from operations						1,275
Other expenses and gains
	Interest expense		$(20	)
	Gain on disposal of FV-NI investments		80			60
Income before tax						1,335
Income tax expense						405
Net income						$930

Additional information: During the year, $70 of common shares were issued in exchange for plant assets. No plant assets were sold in 2020. The FV-NI investments’ carrying amount and market value were the same at December 31, 2020.

Prepare a statement of cash flows using the direct method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000). Enter amounts in thousands.)

My question is how do you calculate : Proceeds from the the sale of FV-NI Investments ?

The following information is relevant to the computation of Charlie Co.’s earnings per share to be
disclosed on Charlie’s income statement for the year ending December 31, 2020:
 2020 net income: $800,000
 Common shares activity in 2020:
o Shares outstanding at January 1, 2020: 600,000
o Shares issued on May 1, 2020: 24,000
o Treasury shares purchased on July 31, 2020: 60,000
 $5,000,000 face value, 2% 10-year convertible bonds were outstanding on January 1,
2020. Each $1,000 par value bond is convertible into 20 shares of Charlie’s common
stock
 Charlie’s corporate tax rate is 25%
Charlie has no stock options, stock warrants, preferred stock or other convertible securities
outstanding in 2020.

Required
Compute Charlie’s basic and diluted earnings per share for 2020.

Based on the article, what was driving this flurry of corporate issuance?

Apple on Wednesday joined U.S. companies ranging from Deere & Co. to Walt Disney in a recent sprint to issue new bonds, taking advantage of the steep decline in benchmark interest rates and a surge in investor demand.

Apple launched its first bond deal since 2017 and is looking to raise $4 billion to $5 billion with bonds ranging in maturity from three to 30 years, according to people familiar with the sale.

Twenty-one corporations with investment-grade credit ratings issued bonds totaling about $27 billion on Tuesday, said Andrew Karp, head of investment-grade capital markets at Bank of America. “That’s equivalent to a busy week for us — in one day,” he said.

The bond boom is the corporate version of the refinancing rush that hit the mortgage market last month as homeowners moved to lock in cheaper loans. Sharply declining U.S. government bond yields — the 10-year Treasury yields about 1.5% compared with around 2% in July — have dragged down corporate borrowing costs in lockstep. The yield of Disney’s bond due in 2046 fell to 2.83% from 3.3% since the start of August, according to data from MarketAxess.

Deere and Disney nabbed record-low yields on bonds they issued Tuesday and the surge continued Wednesday with Apple leading the charge. Coca-Cola and health insurer Anthem also announced new bond sales Wednesday, according to S&P Global Market Intelligence.

Companies are also capitalizing on a surge in demand for investment-grade corporate debt in recent months that is helping to drive yields lower, said Gibson Smith, founder of Denver-based Smith Capital Investors.“The flows are presenting issuers with an opportunity to borrow at new lows,” he said.

Mutual funds focusing on corporate investment-grade bonds took in $32 billion over the past three months compared with $77 billion of outflows from all stock funds over the same period, according to data from Thomson Reuters Lipper.

The asset class is still attracting inflows because it occupies a sweet spot in the fixed-income landscape. Bonds issued by name-brand corporations give investors a relatively safe alternative that still pays more than government bonds when they switch out of stocks and high-yield debt because of global uncertainty. Conversely, government-bond investors fleeing the negative yields spreading through Asia and Europe can buy corporate bonds without taking on too much more risk.U.S. government bond yields were virtually unchanged Wednesday after initially rising on optimism about easing tensions in Hong Kong.

The yield on the benchmark 10-year Treasury note recently traded at 1.466%, compared with around 1.469% Tuesday, according to data from Tradeweb. Yields fall as bond prices rise.