The following data applies to the two unrelated companies Aldi Ltd Wooli Ltd:
|
Profit before tax for the year to 30 June 2020 |
$1,300,000 |
$136,000 |
||
|
Taxable income for the year to 30 June 2020 |
340,000 |
150,000 |
||
|
Deferred tax liability 1 July 2019 |
— |
90,000 |
||
|
Deferred tax asset 1 July 2019 |
— |
15,000 |
||
|
Taxable temporary differences at 30 June 2020 |
960,000 |
306,000 |
||
|
Deductible temporary differences at 30 June 2020 |
— |
70,000 |
All taxable and deductible temporary differences relate to the profit or loss. Assume a corporate tax rate of 30%.
In: Accounting
Complete the journal entries as necessary for both Part 1 and Part 2.
Part 1. Transaction
1. On January 1st of 2020, Casey bought 10% of Apple 100,000 shares of outstanding common stock at $20 a share.
2. On December 31, 2020 Apple reported $40,000 of net income and paid $20,000 of dividends.
3. On December 31, 2020, the market price of stock was $ 25 a share. Assume there was a zero balance in the fair value adjustment account.
Part 2. Complete the journal entries as required: Transaction
4. On January 1st of 2020, Casey bought 30% of Apple 100,000 shares of outstanding common stock at $20 a share and has significant influence.
5. On December 31, 2020 Apple reported $40,000 of net income and paid $20,000 of dividends.
6. On December 31, 2020, the market price of stock was $ 25 a share. Assume there was a zero balance in the fair value adjustment account before this transaction.
In: Accounting
(a) Give an example of a collection of closed sets whose union is not closed.
(b) Give an example of a collection of open sets whose infinite intersection is not open.
Thank you!
In: Advanced Math
Question No. 1 (Marks 15)
C Company’s forecasted 2020 financial statements are given below, along with industry average ratios.
C Company: Forecasted Balance sheet as of December 31, 2020
|
Cash |
72,000 |
|
Accounts Receivable |
439,000 |
|
Inventories |
894,000 |
|
Total Current Assets |
1,405,000 |
|
Land and Buildings |
238,000 |
|
Machinery |
132,000 |
|
Other Fixed assets |
61,000 |
|
Total Assets |
,1,836,000 |
|
Equity & Liabilities |
|
|
Accounts and Notes Payable |
432,000 |
|
Accrued liabilities |
170,000 |
|
Total Current liabilities |
602,000 |
|
Long term Debt |
404,290 |
|
Common stock |
575,000 |
|
Retained earnings |
254,710 |
|
Total Equity & Liabilities |
1,836,000 |
C Company: Forecasted Income Statement for the year ended December 31, 2020
|
Sales |
4,290,000 |
|
Cost of goods sold |
3,580,000 |
|
Gross profit |
710,000 |
|
General Selling and Admin Expenses |
236,320 |
|
Depreciation |
159,000 |
|
Other Expenses |
134,000 |
|
Profit before Tax |
180,680 |
|
Taxes 40% |
72,272 |
|
Profit after tax |
108,408 |
Per Share data
EPS 4.71
DPS .95
Market Price Per Share 23.57
P/E Ratio 5 times
Total No. of Shares 23,000
Industry Average Ratios - 2020
|
Current Ratio |
2.7 |
|
Inventory Turnover |
7 times |
|
Average Collection Period |
32 days |
|
Total Asset turnover |
2.6 times |
|
Debt Ratio |
50% |
|
Profit Margin on Sales |
3.5% |
Quesytion : Calculate C Company’s forecasted Ratios, compare them the industry average data and comment briefly on strength and weaknesses of the company ?
In: Accounting
Question
C Company’s forecasted 2020 financial statements are given below, along with industry average ratios.
C Company: Forecasted Balance sheet as of December 31, 2020
|
Cash |
72,000 |
|
Accounts Receivable |
439,000 |
|
Inventories |
894,000 |
|
Total Current Assets |
1,405,000 |
|
Land and Buildings |
238,000 |
|
Machinery |
132,000 |
|
Other Fixed assets |
61,000 |
|
Total Assets |
,1,836,000 |
|
Equity & Liabilities |
|
|
Accounts and Notes Payable |
432,000 |
|
Accrued liabilities |
170,000 |
|
Total Current liabilities |
602,000 |
|
Long term Debt |
404,290 |
|
Common stock |
575,000 |
|
Retained earnings |
254,710 |
|
Total Equity & Liabilities |
1,836,000 |
C Company: Forecasted Income Statement for the year ended December 31, 2020
|
Sales |
4,290,000 |
|
Cost of goods sold |
3,580,000 |
|
Gross profit |
710,000 |
|
General Selling and Admin Expenses |
236,320 |
|
Depreciation |
159,000 |
|
Other Expenses |
134,000 |
|
Profit before Tax |
180,680 |
|
Taxes 40% |
72,272 |
|
Profit after tax |
108,408 |
Per Share data
EPS 4.71
DPS .95
Market Price Per Share 23.57
P/E Ratio 5 times
Total No. of Shares 23,000
Industry Average Ratios - 2020
|
Current Ratio |
2.7 |
|
Inventory Turnover |
7 times |
|
Average Collection Period |
32 days |
|
Total Asset turnover |
2.6 times |
|
Debt Ratio |
50% |
|
Profit Margin on Sales |
3.5% |
Required: Calculate C Company’s forecasted Ratios, compare them the industry average data and comment briefly on strength and weaknesses of the company.
In: Accounting
The marketing department of Metroline Manufacturing estimates that its sales in
2020 will be $1.53 million. Interest expense is expected to remain unchanged at $39,000 , and the firm plans to pay
$71,000 in cash dividends during
2020. Metroline Manufacturing's income statement for the year ended December 31, 2019 , is given
, along with a breakdown of the firm's cost of goods sold and operating expenses into their fixed and variable components.
a. Use the percent-of-sales method to prepare a pro forma income statement for the year ended December 31,2020.
b. Use fixed and variable cost data to develop a pro forma income statement for the year ended December 31, 2020.
c. Compare and contrast the statements developed in parts a. and b. Which statement probably provides the better estimate of 2020 income? Explain why.
|
Metroline Manufacturing Income Statement for the Year Ended December 31, 2019 |
||
|
Sales revenue |
$1,391,000 |
|
|
Less: Cost of goods sold |
908,000 |
|
|
Gross profits |
$483,000 |
|
|
Less: Operating expenses |
123,000 |
|
|
Operating profits |
$360,000 |
|
|
Less: Interest expense |
39,000 |
|
|
Net profits before taxes |
$321,000 |
|
|
Less: Taxes (rate=40%) |
128,400 |
|
|
Net profits after taxes |
$192,600 |
|
|
Less: Cash dividends |
61,000 |
|
|
To retained earnings |
$131,600 |
|
Metroline Manufacturing Breakdown of Costs and Expenses into Fixed and Variable Components for the Year Ended December 31, 2019 |
||
|
Cost of goods sold |
||
|
Fixed cost |
$216,000 |
|
|
Variable cost |
692,000 |
|
|
Total cost |
$908,000 |
|
|
Operating expenses |
||
|
Fixed expenses |
$30,000 |
|
|
Variable expenses |
93,000 |
|
|
Total expenses |
$123,000 |
In: Finance
Following are financial statement numbers and select ratios for
Target Corp. for the fiscal year 2016 (ending January 28,
2017).
| Current | Forecast Horizon | Terminal Year | ||||
| ($ millions) | 2016 | 2017 | 2018 | 2019 | 2020 | |
| Total revenues | $69,495 | $71,580 | $73,727 | $75,939 | $78,217 | $78,999 |
| Net operating profit after tax (NOPAT) | 3,302 | 3,436 | 3,539 | 3,645 | 3,754 | 3,792 |
| Net operating assets (NOA) | 21,128 | 21,757 | 22,409 | 23,082 | 23,774 | 24,012 |
Forecast assumptions and other financial information for Target are
as follows:
| Revenue growth | 3% |
| Net operating profit margin (NOPM) | 4.8% |
| Net operating asset turnover (NOAT) | 3.29 |
| Terminal growth rate | 1% |
| Discount rate | 7% |
| Shares outstanding in millions | 556.2 |
| Stockholders' equity | $10,953 |
| Net nonoperating obligations (NNO) | $10,175 |
Use the residual operating income (ROPI) model to estimate the
value of Target’s equity, per share at fiscal year-end.
Target Corp. shares closed at $53.82 per share on March 8, 2017,
the date the 10-K was filed with the SEC. How does your valuation
compare with this closing price?
In: Finance
Following are financial statement numbers and select ratios for
Target Corp. for the fiscal year 2016 (ending January 28,
2017).
| Current | Forecast Horizon | Terminal Year | ||||
| ($ millions) | 2016 | 2017 | 2018 | 2019 | 2020 | |
| Total revenues | $69,495 | $71,580 | $73,727 | $75,939 | $78,217 | $78,999 |
| Net operating profit after tax (NOPAT) | 3,302 | 3,436 | 3,539 | 3,645 | 3,754 | 3,792 |
| Net operating assets (NOA) | 21,128 | 21,757 | 22,409 | 23,082 | 23,774 | 24,012 |
Forecast assumptions and other financial information for Target
are as follows:
| Revenue growth | 3% |
| Net operating profit margin (NOPM) | 4.8% |
| Net operating asset turnover (NOAT) | 3.29 |
| Terminal growth rate | 1% |
| Discount rate | 7% |
| Shares outstanding in millions | 556.2 |
| Stockholders' equity | $10,953 |
| Net nonoperating obligations (NNO) | $10,175 |
Use the residual operating income (ROPI) model to estimate the
value of Target’s equity, per share at fiscal year-end.
Target Corp. shares closed at $53.82 per share on March 8, 2017,
the date the 10-K was filed with the SEC. How does your valuation
compare with this closing price?
In: Finance
Consider what you have learned about the shape normal distribution and specifically about the Empirical Rule. Please compare and contrast Roger’s Innovation Adoption Curve with what you have learned. Be as specific as possible in your explanations making reference to Roger’s Innovation Adoption Curve, the normal distribution, and the Empirical Rule .
In: Statistics and Probability
My goal is to be a NC-programmer of CNC machinist.
"Describe/illustrate if all conditions were ideal and you believed that all things were possible, what would you seek to achieve as your life's work or major accomplishment?"
Please write the answer at least 200 words. Thanks.
In: Mechanical Engineering