ABC Apartments is a 300-unit complex near Fairway University that attracts mostly university students. The manager has collected the following data and wants to project the number of units leased in Semester 9 using simple linear regression. Here is the information that has been collected:

In answering these questions, you must identify and use the correct independent and dependent variables.

a) The apartment manager wants to forecast the Number of Units Leased as a function of time. What is the linear regression relationship the manager should use and what is the forecast for the Number of Units Leased for Semester 9?

b) Suppose the manager believes that the Number of Units Leased is a function only of University Enrollment. It is believed that there will be a one semester lag between the enrollment and the units leased. In other words, the number of units leased in a semester is a function of the university enrollment in the prior semester. What is the linear regression relationship the manager should use and what is the forecast for the Number of Units Leased for Semester 9?

c) Suppose the manager believes that the Number of Units Leased is a function only of the Average Lease Price for that semester. What is the linear regression relationship the manager should use and what is the forecast for the Number of Units Leased for Semester 9 if the average lease price for that semester is $450?

d) Considering the strength of each of the relationships that you found in parts a) through c), would you use any of these to forecast the Number of Units Leased for Semester 9? Explain your answer.

Brenda Chan is the new accountant for a small private company called Ace Construction Limited. She has recently prepared the year-end financial statements for the company. Brenda's boss, Virginia Schwirtz, who is the chief executive officer (CEO), has asked her to make three changes to the financial statements as follows:

1. Remove an expense and its related liability that Brenda recorded for damages expected to be paid from a lawsuit due to a poorly done construction job a few months ago. Virginia believes that, although it is highly likely that Ace will have to pay for these damages, because a final agreement about the exact amount of these damages will not be agreed to until next month, nothing relating to this issue should be recorded in the financial statements or disclosed in the notes to the financial statements.

2. Just prior to the end of the year, Ace signed a contract to build a new arena for the city for a fixed fee of $80 million. As long as the company can build the facility for less than this amount, the company will make a profit. Since the value of the contract is fixed and because the city has always paid its bills on time, Virginia wants the revenue for this contract to be recorded in the current year because that was when the contract was signed.

3. The company has a chequing account that is allowed to go into an overdraft (negative) position. When the balance falls into an overdraft, the bank begins to charge interest on that amount as if it were a bank loan, which in essence it is. Since there is no due date on such a balance, Virginia would like the loan to be reported as a non-current liability.

a) What is the objective of financial reporting? Are Brenda's or Virginia's actions consistent with these objectives? Explain.

b) For each of the items covered above, determine if the proposed changes enhance or diminish the qualitative characteristics of the company's financial statements and whether the company is dealing with these items in a manner that is consistent with the definitions for elements of financial statements.

Robert is 34 years old and is engaged to be married. He is looking to start saving towards buying a house. He and his fiancée Alisha however have not made any plans towards any of their life goals.

Robert

Robert graduated high school in Romania, and got into engineering school at University of Toronto right after. Having graduated among the top students in his country, he was able to obtain a full scholarship and graduated university with no student debt. He started working for a firm DigitalDesign LLC where he worked as a software engineer for 3 years where he started out with a salary of 60,000 CAD annually. Even though he was set up for success, he did take time away from his job, sponsored his brother education at Carleton University, worked for a non-profit in Africa, and travelled for a year. These left him with a bit lower savings than estimated. He currently has around 200,000 CAD saved in financial assets and earns around 130,000 CAD annually. The company he works for has no pension plan.

Alisha

Alisha finished her undergraduate degree in architecture and worked in Romania for a few years. She moved to University of Toronto for her master’s degree and currently works for an architecture firm that designs factories. She has around 85000 CAD in financial assets and earns 80,000 CAD a year. She also has no pension plan. Like Robert, she likes to travel but also takes a trip once a year back to Romania to visit her family.

The Wedding

They are planning to have two ceremonies, a very small one with close friends in Toronto, which would cost (8,000 CAD). A big wedding in Romania with around 400 guests, which would cost 40,000 CAD. Their parents would foot half the wedding bill in Romania.

Lifestyle and Life Goals

Both Robert and Alisha live in a spacious 2-bedroom condominium in midtown-Toronto and they do not plan to move out of it anytime soon. None of them drives a car and they take public transit or Taxi/Uber. They plan to have only 1 kid 2 years from now and plan to remain in the apartment and put a down payment (50%) on the condo. They do like eating out once a week and Robert likes to go out for drinks with his pals on the weekend. They plan to take two trips a year. One trip to Romania during Christmas and once during the summer. When the child enters university (20 years from now), they want to be able to fund all the tuition and living expenses (totaling 100,000$). When Robert turns 50, they plan to buy a cottage in Romania near the coast for 300,000 CAD.

For Retirement, Robert and Alisha want to have 5,000,000 dollars together. All prices are based on today’s CAD. Robert and Alisha expect their real income to grow by 1% a year. Assume retirement age = 65.

Income Statement

Assume an average tax rate of 40%.

A) Create an detailed Investment policy statement for Robert and Alisha

B) Are their goals reasonable? How much money do they need to save in their first year for each of their goals and the total amount? ( Assume expenses to go up by 10,000$ a year once the kid is born)

C) If they plan to spend 50,000 each year in retirement and plan to leave 500, 000 CAD as inheritance, (to be withdrawn at the beginning of each year) are their retirement goals sufficient?

On January 1, 2016, Halstead, Inc., purchased 81,000 shares of Sedgwick Company common stock for $1,533,000, giving Halstead 25 percent ownership and the ability to apply significant influence over Sedgwick. Any excess of cost over book value acquired was attributed solely to goodwill.

Sedgwick reports net income and dividends as follows. These amounts are assumed to have occurred evenly throughout these years. Dividends are declared and paid in the same period.

On July 1, 2018, Halstead sells 10,000 shares of this investment for $24 per share, thus reducing its interest from 25 to 21 percent, but maintaining its significant influence.

Determine the amounts that would appear on Halstead's 2018 income statement relating to its ownership and partial sale of its investment in Sedgwick's common stock.

BACC460

Assignment 4 (LO3)

Trial balance data for Peanut and Snoopy as of December 31, 2018 follows. Peanut company acquired 100% of the shares of Snnopy at $ (700,220) when the book value of Snoopy’s net assets was equal to $344,000. At that date the fair value of Building and equipment was $40,000 more than the book value. Building and equipment are depreciated on a 5-year basis. At December 31, 2018, Peanut Company concluded that good will involved in the acquisition of Snoopy has been impaired and the correct carrying value was $10,000. Peanut uses the equity method to account for investments.

Instructions:

a) Prepare the journal entries in Peanut Company books to record the transaction related to the investment in Snoopy.

  Acquisition of 100 % of shares in Snoopy for $( ** it should be around 400,000 to 700,000 according to your ids) cash

b) Post the previous transactions to   the ledger and find new balances. (*) and Prepare a consolidated worksheet in good form.

Instructions:

You are the Chief Financial Officer (CFO) of a firm that is being sued for damages it caused. It is the end of your fiscal year, and you are trying to determine the appropriate treatment of this matter. Your boss, the Chief Executive Officer (CEO) acknowledges (privately) that your firm is responsible for the damages and that the judgment will be made against your firm. Your legal counsel estimates that the penalty levied by the court will be in the range of $2 million to $6 million, with a most likely amount of $4 million. The CEO's posture on the matter is that because of the wide variance in the range of possible outcomes (i.e. penalties levied) that the best thing to do is to simply wait until the case is settled (next year), and record at that time the actual damages assessed by the court.

Answer the following questions:

What are some possible reasons that the CEO may hold his viewpoint?

What should be your response to the CEO?

Do you think it is necessary to make an accrual for an estimated amount of the assessment or settlement? If so, what amount do you think is appropriate?

Explain. Would your answer to any of the above questions be different if the financials are being prepared under IFRS instead of U.S. GAAP?

RDH, Inc., manufactures high quality ladies boots. The company is considering the launch of a new boot style. Given the company’s history, it believes that it can sell 34,000, 27,000, 24,000, and 18,000 pair of boots per year for the next 4 years, respectively. The new boots would have variable costs of $134 per pair. Fixed production costs are $4.25 million per year and the equipment necessary for the new line costs $7.8 million. The equipment will be depreciated on a 5-year MACRS schedule. The line would require an investment in NWC of 15 percent of sales to be stockpiled one year ahead of sales, the tax rate is 40 percent, and the required return is 9 percent. The company expects that because of changes in styles, the new design can only be sold for the next four years. In four years, the equipment can be sold for $1.8 million, although the company believes it will keep the machinery for another product line. Additionally, the CEO has stated that she requires an NPV of $250,000 to undertake the new line of boots. What is the price per pair of boots that the company must set in order to undertake the new boot?

Choose an organization or company that has a poor logistics mandate or footprint and perform an analysis of why they ineffectively handle logistics activities. Write to the CEO of the organization explain the strengths and weaknesses of their current logistics system and provide a comparison to other logistics models. Then, outline a new logistics plan for them that explains all aspects of logistics as you see appropriate. Remember to have an introduction that summarizes your study and a concluding section that explains the rational for your suggestions on how the company should handle logistics moving forward. This assignment is designed to test your critical thinking tasked with establishing a new logistics model for an organization. It should show clear understanding of logistics management topics. Questions to possibly ask (in addition to ones you come up with on your own) include: Does the organization currently outsource any aspects of logistics? Why is the current system of logistics not efficient? What would make it more efficient? How long has the company been engaged in logistics? What partners/vendors does the organization rely on in partnership for their logistical activities? What technology and/or systems does the organization make use of? AMAZON POSSIBLE COMPANY?