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Using the data above, compute pension expense for Teal Corp. for the year 2020 by preparing a pension worksheet. (Enter all amounts as positive.)
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In: Accounting
P20.8 (LO2,4,5) (Comprehensive 2-Year Worksheet) Lemke SA sponsors a defined benefit pension plan for its employees. The following data relate to the operation of the plan for the years 2019 and 2020.
| 2019 | 2020 | |
| Defined benefit obligation, Jan1 | 600,000 | |
| Plan Assets(fair value), Jan 1 | 410,000 | |
| Pension asset/liability, Jan 1 | 190,000 | |
| Service Cost | 40,000 | 59,000 |
| Discount(interest)rate | 10% | 10% |
| Actual return on plan assets | 36,000 | 61,000 |
| Annual Contributions | 97,000 | 81,000 |
| Benefits paid retires | 31,500 | 54,000 |
| Increase in defined benefit obligation due to changes in actuarial assumptions | 87,000 | 0 |
| Accumulated benefit obligation at Dec 31 | 721,800 | 789,000 |
| Vested benefit obligation at Dec 31 | 464,000 |
Instructions
a. Prepare a pension worksheet presenting both years 2019 and 2020.
b. Prepare the journal entries (from the worksheet) to reflect all pension plan transactions and events at December 31 of each year.
C. For 2020, indicate the pension amounts reported in the financial statements.
In: Accounting
| Stackhouse Industries had the following operating results for 2020: sales = $54,510; cost of goods sold = $37,430; depreciation expense = $5,830; interest expense = $1,325; dividends paid = $2,820. At the beginning of the year, net fixed assets were $33,200, current assets were $8,300, and current liabilities were $5,553. At the end of the year, net fixed assets were $42,820, current assets were $9,395, and current liabilities were $5,870. The tax rate was 24 percent. |
| a. | What was net income for 2020? (Do not round intermediate calculations.) |
| b. | What was the operating cash flow for 2020? (Do not round intermediate calculations.) |
| c. | What was the cash flow from assets for 2020? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.) |
| d-1. | If no new debt was issued during the year, what was the cash flow to creditors? (Do not round intermediate calculations.) |
| d-2. | If no new debt was issued during the year, what was the cash flow to stockholders? (A negative answer should be indicated by a minus sign. Do not round intermediate calculations.) |
In: Accounting
Nelson, Inc. hedges 50% of their translation exposure one calendar quarter in advance, and rolls the contracts when they mature. Currently 1st quarter net income is projected to be 125 million Canadian dollars. The current spot rate is .98 US dollars per Canadian dollar, and the forward rate to March 31, 2011, the end of 1st quarter, is .987 US dollars per Canadian dollar. On 3/31/2011 the spot rate is now 1.045 US dollars per Canadian dollar.
(a) Explain how you would put in place a hedge on 50% of the forecasted net income.
(b) On 3/31 what do you now need to do?
(c) What is your total translated net income from the Canadian subsidiary including the impact of the hedge on 3/31/2011?
In: Finance
The dollar has been steadily depreciating in value relative to other major global currencies, including the Japanese Yen, over the past six months.
a) How would this impact the competitiveness of US automotive firm General Motors competing with Japanese automotive firm Toyota in global markets?
b) How would the Bank of Japan implementing expansionary monetary policy impact the competitiveness of Toyota? How do you know?
c) Suppose the US government wants to, at a minimum, maintain its market share in the domestic automobile market, so they implement tariffs on cars imported from Japan. Illustrate and describe how such a policy will redistribute welfare within the US. Who gains and who loses? How does this trade policy impact the volume of trade?
In: Economics
Ohio Inc. has a global beta of 1.6 and its debt-to-equity ratio is 0.6. The risk-free rate is 3.2% and the expected global market risk premium is 9%. Although Ohio is a US firm, it issued Swiss Franc (SF) denominated bond and converted SF to US dollar. The semi-annual interest payment is made in SF. The coupon rate is 8%, the price of the bond is SF1020, the face value is SF1,000, and the bond matures in 15 years. The exchange rate is expected to move from SF0.9400/$ to SF0.9200/$. Ohio’s tax rate is 40%.
a. What’s Ohio’s SF cost of debt? ____________________
b. What’s your best estimate of Ohio’s US dollar cost of debt? ______
c. What’s Ohio’s cost of equity? __________________
d. What’s Ohio’s WACC? ___________________
In: Finance
Answer to the questions based on your knowledge about positive psychology and happiness theory (PERMA-model; P+E+M) plus the character strengths model.
As people living in the UAE we are very fortunate to live a safe life. We regularly however, hear and see human tragedies unfold around us, which have the capacity to significantly move us. Unfortunately, often society moves too fast to allow us to mindfully reflect and remember those who are suffering. What would happen if we donated some of our time and prayers for those in need?
In: Psychology
1. Inge Brothers Inc. had the following items in its capital structure at December 31, 2019: Preferred stock, 10%, $8 par value, convertible into 46,200 common shares no earlier than 2020, issued at par value on July 1, 2019 (current market value, $8 per share).................................................................... $1,660,000
Common stock, $20 stated value, issued January 2, 2016 (current market value, $17 per share).................................................................. 1,200,000
Treasury stock, common, 10,000 shares, acquired on November 30, 2018........ 280,000
Common stock options, issued in 2016, exercisable for 22,000 shares, beginning in 2021, at a “strike” price of $15 per share. The cash that would be received from the option-holders from a hypothetical exercise of the options at December 31, 2019 would be sufficient for Inge Brothers to acquire 8,800 shares of its own common stock (as treasury stock).
Stock warrants outstanding, issued in exchange for legal services at June 30, 2019, convertible into 9,800 shares of common stock at the discretion of the warrant-holders, but not earlier than 2022. The hypothetical conversion of the warrants at December 31, 2019 would require a cash payment from the warrant-holders, which would be sufficient for Inge Brothers to acquire 5,440 shares of its own common stock (as treasury stock) .................... 220,000
Additional paid-in-capital.................................................................................... 760,000
Retained earnings................................................................................................ 460,000
Inge Brothers’ net income for 2019 was $553,000. As of December 31, 2019, the company’s Board of Directors had not yet declared the dividend for 2019 for the preferred shareholders. What earnings per share would Inge Brothers Inc. report for the year ended December 31, 2019? Prepare a schedule to support your answer.
In: Accounting
Warren Buffett, the billionaire investor and chairman/CEO of Berkshire Hathaway, stated that "diversification is protection against ignorance”. Do you agree with his statement? Why or Why not?
In: Finance
You are a CEO of a healthcare organization. What factors should you consider when developing a consistent HIT strategy. Please answer this question in 200 words or less.
In: Finance