In: Biology
The T-accounts below summarize transactions of Dansko Integrated from February 22 to February 25, 2020:
Cash
Balance
9,900
90
16
65
10
4
49
PP&E, Net
Balance
16,800
49
Accounts Payable
4
Balance
2,700
17
Other Liabilities
Balance
1,000
Accounts Receivable
Balance
4,500
10
Other Assets
Balance
1,600
Debt
Balance
3,500
65
Paid-In Capital
Balance
8,000
90
Inventory
Balance
3,800
17
13
Retained Earnings
Balance
21,400
3
What is the final amount in Total Equity?
| Gulf Shipping Company Balance Sheet As of March 11, 2020 (amounts in thousands) |
|||
|---|---|---|---|
| Cash | 14,300 | Accounts Payable | 1,900 |
| Accounts Receivable | 4,100 | Debt | 3,200 |
| Inventory | 5,800 | Other Liabilities | 4,000 |
| Property Plant & Equipment | 14,800 | Total Liabilities | 9,100 |
| Other Assets | 700 | Paid-In Capital | 7,700 |
| Retained Earnings | 22,900 | ||
| Total Equity | 30,600 | ||
| Total Assets | 39,700 | Total Liabilities & Equity | 39,700 |
Use T-accounts to record the transactions below, which occur on March 12, 2020, close the T-accounts, and construct a balance sheet to answer the question.
1. Purchase equipment for $50,000 in cash
2. Borrow $67,000 from a bank
3. Issue $80,000 in stock
4. Buy $16,000 worth of manufacturing supplies on credit
5. Pay $7,000 owed to a supplier
What is the final amount in Total Equity?
| Lightspeed Industries Balance Sheet As of March 11, 2020 (amounts in thousands) |
|||
|---|---|---|---|
| Cash | 14,100 | Accounts Payable | 1,900 |
| Accounts Receivable | 3,200 | Debt | 3,600 |
| Inventory | 4,900 | Other Liabilities | 2,000 |
| Property Plant & Equipment | 16,300 | Total Liabilities | 7,500 |
| Other Assets | 500 | Paid-In Capital | 7,200 |
| Retained Earnings | 24,300 | ||
| Total Equity | 31,500 | ||
| Total Assets | 39,000 | Total Liabilities & Equity | 39,000 |
Use T-accounts to record the transactions below, which occur on March 12, 2020, close the T-accounts, and construct a balance sheet to answer the question.
1. Sell, deliver, and receive payment of $20,000 for
service
2. Consume good or service and pay expense of $3,000
3. Sell product for $25,000 in cash with historical cost of
$20,000
What is the final amount in Total Assets?
In: Accounting
EcoPak Ltd is a small private company, specialising in the manufacture of takeaway packaging, which offers an environmentally friendly alternative to disposable food containers. The business’s accountant Kate has prepared a draft version of EcoPak’s Balance Sheet and Income Statement for the financial year ended 30 June 2020. Kate knows she has made several mistakes in classifying the elements of the Balance Sheet and Income Statement because the income statement shows EcoPak has made a loss and the Balance Sheet doesn’t balance! Kate’s statements are shown below.
|
EcoPak Ltd - Draft Income Statement for the year ended 30 June 2020 |
|
|
Cash at Bank |
255,000 |
|
Accrued Wages |
22,000 |
|
Gross profit |
277,000 |
|
Expenses |
|
|
Bank Loan |
320,000 |
|
Interest expense |
27,000 |
|
Prepaid Rent |
3,600 |
|
Depreciation Expense |
43,000 |
|
Donations Expense |
12,000 |
|
Accounts Receivable |
14,000 |
|
Other expenses |
32,000 |
|
Earnings before interest and tax |
-174,600 |
|
Accounts Payable |
22,000 |
|
Profit before tax |
-196,600 |
|
Income tax expense |
125,000 |
|
Profit for the period from continuing operations |
-321,600 |
|
EcoPak Ltd – Draft Balance Sheet AS AT 30 June 2020 |
|||
|
Assets |
Liabilities |
||
|
Current Assets |
Current Liabilities |
||
|
Wages Expense |
78,000 |
Drawings |
-25,000 |
|
Cost of Sales |
376,000 |
Inventory |
108,000 |
|
Rent Expense |
31,200 |
Electricity expense |
18,000 |
|
Sales revenue |
1,244,000 |
Non-current liabilities |
|
|
Prepaid Utilities |
2,100 |
Trucks |
90,000 |
|
Property Plant and Equipment |
578,000 |
Advertising Expense |
45,000 |
|
Non-current Assets |
Total Liabilities |
236,000 |
|
|
Retained Profits |
468,700 |
Owner’s Equity |
|
|
Mortgage |
63,000 |
Insurance Expense |
72,000 |
|
Contributions |
198,000 |
||
|
Intangibles |
18,000 |
||
|
Total Owner’s Equity |
288,000 |
||
|
Total Assets |
2,841,000 |
Total Liabilities and Owner’s Equity |
524,000 |
|
EcoPak Ltd – CORRECTED Draft Income Statement for the year ended 30 June 2020 |
|
|
Gross profit |
|
|
Expenses |
|
|
Earnings before interest and tax |
|
|
Profit before tax |
|
|
Profit for the period from continuing operations |
|
|
EcoPak Ltd – Draft Balance Sheet AS AT 30 June 2020 |
|||
|
Assets |
Liabilities |
||
|
Current Assets |
Current Liabilities |
||
|
Non-current liabilities |
|||
|
Non-current Assets |
Total Liabilities |
||
|
Owner’s Equity |
|||
|
Total Owner’s Equity |
|||
|
Total Assets |
Total Liabilities and Owner’s Equity |
||
In: Accounting
Hedging Decision. Indiana Company expects to receive 5 million euros in one year from exports. It can use any one of the following strategies to deal with the exchange rate risk. Estimate the dollar cash flows received as a result of using the following strategies: unhedged strategy money market hedge option hedge The spot rate of the euro as of today is $1.10. Interest rate parity exists. Indiana Company uses the forward rate as a predictor of the future spot rate. The annual interest rate in the U.S. is 8% versus an annual interest rate of 5% in the eurozone. Put options on euros are available with an exercise price of $1.11, an expiration date of one year from today, and a premium of $.06 per unit. Estimate the dollar cash flows it will receive as a result of using each strategy. Which hedge is optimal?
In: Finance
Indiana Company expects to receive 5 million euros in one year from exports. It can use any one of the following strategies to deal with the exchange rate risk. Estimate the dollar cash flows received as a result of using the following strategies:
a) unhedged strategy
b)money market hedge
c)option hedge
The spot rate of the euro as of today is $1.10. Interest rate parity exists. Indiana Company uses the forward rate as a predictor of the future spot rate. The annual interest rate in the U.S. is 8% versus an annual interest rate of 5% in the euro zone. Put options on euros are available with an exercise price of $1.11, an expiration date of one year from today, and a premium of $.06 per unit. Estimate the dollar cash flows it will receive as a result of using each strategy. Which hedge is optimal?
In: Finance
1. RV Company agrees to buy a certain quantity of vintage campers from Sales Inc. Their contract limits consequential damages for lost profits resulted from the use of the goods. This limit is not neccessarily unconscionable because
A. Consequential damages cover only reasonable foreseeable losses
B. the transaction is a sale, not a lease
C. the loss would be commercial in nature
D. lost profits are indirect losses
2. In a letter-of-credit transaction, Unum Inc., a U.S. firm, delivers a bill of lading to Verity Bank to prove that a contracted-for shipment was made to Wallaby Ltd., an Australian company. Verity must pay Unum
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In: Finance
Indiana Company expects to receive 1 million euros in one year from exports. It can use any one of the following strategies to deal with the exchange rate risk. Estimate the dollar cash flows received as a result of using the following strategies:
a) unhedged strategy
b) money market hedge
c) option hedge
The spot rate of the euro as of today is $1.10. Interest rate parity exists. Indiana Company
uses the forward rate as a predictor of the future spot rate. The annual interest rate in the U.S. is 8% versus an annual interest rate of 5% in the eurozone. Put options on euros are available with an exercise price of $1.11, an expiration date of one year from today, and a premium of $.06 per unit. Estimate the dollar cash flows it will receive as a result of using each strategy. Which hedge is optimal?
In: Finance
4. Indiana Company expects to receive 5 million euros in one year from exports. It can use any one of the following strategies to deal with the exchange rate risk. Estimate the dollar cash flows received as a result of using the following strategies:
a). unhedged strategy
b). money market hedge
c). option hedge
The spot rate of the euro as of today is $1.30. Interest rate parity exists. Indiana Company uses the forward rate as a predictor of the future spot rate. The annual interest rate in the U.S. is 6% versus an annual interest rate of 4% in the eurozone. Put options on euros are available with an exercise price of $1.25, an expiration date of one year from today, and a premium of $.04 per unit. Estimate the dollar cash flows it will receive as a result of using each strategy. Which hedge is optimal?
In: Finance
Wiese Limited, a
foreign subsidiary of U.S. based Wald Inc. operates primarily
economically independent from its parent company. When the exchange
rate was $1.30 per one British Pound Sterling (£), Wald Limited
purchased Inventory for £2,100 pounds. Wald resells one-third of
the inventory for £900 when the exchange rate was $1.26 per Pound
Sterling and another one-third for £900 when the exchange rate was
$1.28 per Pound Sterling. At the end of the reporting period, the
exchange rate is $1.29 per Pound Sterling. The parent company
applies the current rate method in its process of consolidating the
financial results of its subsidiaries with its own financial
results.
Wald Inc. reports sales revenue associated with its subsidiary in
the amount of:
Multiple Choice
$2,286.
$2,268.
$2,340.
$2,304.
In: Accounting
Indiana Company expects to receive 5 million euros in one year from exports.It can use any one of the following strategies to deal with the exchange rate risk. Estimate the dollar cash flows received as a result of using the following strategies:
a). unhedged strategy
b). money market hedge
c). option hedge
The spot rate of the euro as of today is $1.30. Interest rate parity exists. Indiana Company uses the forward rate as a predictor of the future spot rate. The annual interest rate in the U.S. is 6% versus an annual interest rate of 4% in the eurozone. Put options on euros are available with an exercise price of $1.25, an expiration date of one year from today, and a premium of $.04 per unit. Estimate the dollar cash flows it will receive as a result of using each strategy. Which hedge is optimal?
In: Finance