The 2020 inventory data for Garden Corporation’s patio furniture Bermuda set is presented below. Assume that Garden uses periodic inventory tracking.

When Garden examines the actual units in ending inventory, they see that 15 of the units are from 2020 beginning inventory, 20 units are from the 1/20/20 purchase, and 60 units are from the 6/15/20 purchase.  

1. What is Inventory on the 12/31/20 Balance Sheet if Garden uses Specific Identification?
   1. $223,500
   2. $221,600
   3. $29,400
   4. $27,500

2. What is Gross Profit on the 2020 Income Statement if Garden uses Weighted Average Cost?
   1. $251,000.00
   2. $221,193.75  
   3. $201,806.25   
   4. $29,806.25

3. In a period of falling prices, which of the following statements is true?
   1. FIFO produces a lower amount of net income than LIFO
   2. LIFO produces a lower cost for ending inventory than FIFO
   3. Average cost produces a higher net income than FIFO or LIFO
   4. LIFO produces a higher cost of goods sold than FIFO

4. Heavenly Rest, Inc. uses a periodic inventory system. When a warehouse supervisor counts the inventory on December 31, 2019, he accidentally counts one pile of blankets twice, resulting in 2019 ending inventory being overstated by $100,000. The warehouse supervisor counts the December 31, 2020 inventory correctly. Which of the following statements is true related to Heavenly Rest's 2019 and 2020 financial statements?
   1. 2019 Cost of Goods Sold will be understated by $100,000.
   2. 2020 Beginning Inventory will be understated by $100,000.
   3. 2020 Cost of Goods Sold will be overstated by $100,000.
   4. All of the above are true.
   5. Both a and c are true.

(Supplemental Disclosures) It is February 2021 and Janix Corporation is preparing to issue financial statements for the year ended December 31, 2020. To prepare financial statements and related disclosures that are faithfully representative, Janix is reviewing the following events in 2020 and 2021:

1. In August 2020, Maddux Incorporated filed a lawsuit against Janix for alleged patent infringement, claiming $1.8 million in damages. In the opinion of Janix's management and legal counsel, it is not likely that damages will be awarded to Maddux.
2. In January 2021, there was a significant decline in the fair value of Janix's FV-NI investments, resulting in an unrealized holding loss of $720,000.
3. In January 2021, a customer filed a lawsuit against Janix for alleged breach of contract related to services provided in 2020. The customer is seeking damages of $950,000. Janix's legal counsel believes that Janix will likely lose the lawsuit and have to pay between $850,000 and $950,000.
4. In August 2020, Janix signed a contract to purchase 200,000 inventory units in August 2021 for a price of $12 per unit. According to the supplier's price list at December 31, 2020, the price per inventory unit had decreased to $10 per unit.
5. At December 31, 2020, Janix had a $1.1-million demand loan outstanding. The terms of the demand loan restrict Janix's payment of dividends to $2 per common share.
6. On January 31, 2021, Janix issued 100,000 new common shares, raising $2 million in new capital.
7. On January 28, 2021, management settled a dispute with the union of its factory workers. A strike had started on November 14, 2020. A portion of the settlement involved a lump sum payment to each worker in lieu of a retroactive adjustment in pay rate dating back to the beginning of the strike.
Janix prepares financial statements in accordance with IFRS.

Instructions
For each item above, indicate whether the event relates to a provision, contingency, commitment, or subsequent event, and explain the appropriate accounting treatment. If no adjustment or disclosure is required, explain why.

Ivanhoe Corporation’s trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.

Unrecorded transactions and adjustments:

(Ignore income taxes.)

Prepare journal entries for the transactions and adjustment listed above. (Credit account titles are automatically indented when amount is entered. Do not indent manually.)

VII        Cortex Corporation had the following stockholders’ equity as of January 1, 2020:

                        Common stock, $5 par value, 20,000 shares issued         $100,000

                        Paid-in Capital in Excess of Par – Common Stock               300,000

                        Retained earnings                                                           320,000

                                    Total Stockholders’ Equity                                 $720,000

            During 2020, the following transactions occurred:

            Feb. 20             Cortex repurchased 2,400 shares of treasury stock at a price of $19 per share.

            Mar. 11            800 shares of treasury stock repurchased above were reissued at $17 per share.

            Mar. 21            500 shares of treasury stock repurchased above were reissued at $14 per share.

            Apr. 11             600 shares of treasury stock repurchased above were reissued at $20 per share.

            April 25            The remaining shares of treasury stock were retired.

            Required:

3. (a) Prepare the stockholders’ equity section as of April 30, 2020.  Net income for the first 4 months of 2020 was $130,000. Please include both Cost and Par value methods.

HCM 213

Q1. Balance sheet. The following are account balances as of September 30, 2020, for Ray

Hospital. Prepare a balance sheet at September 30, 2020. (Hint net assets will also need

to be calculated.) Also Find out the Current Ratio (1 Mark) and Net Working Capital (1 Mark)

Givens

Gross plant, property, and equipment $70,000,000

Accrued expenses                                           $6,000,000

Cash                                                                $8,000,000

Net accounts receivable                                $15,500,000

Accounts payable                                           $7,000,000

Long-term debt                                              $45,000,000

Supplies                                                          $3,000,000

Accumulated depreciation                           $5,000,000

SurveyUSA conducted a poll from March 4, 2020 to March 6, 2020 regarding how concerned people were about the Wuhan Coronavirus. One of the questions asked, "As a result of the coronavirus, have you bought anti-bacterial surface wipes?" The results are summarized in the table below.

Using your tools from the probability chapter, does it appear that buying anti-bacterial wipes is independent of gender?

• Yes, it does appear that buying anti-bacterial wipes is independent of gender.
• No, it appears that buying anti-bacterial wipes and gender are dependent.

Explain.

Are female and purchasing anti-bacterial wipes mutually exclusive (disjoint)?

• Yes, being female and purchasing anti-bacterial wipes are mutually exclusive.
• No, being female and purchasing anti-bacterial wipes are not mutually exclusive.

Explain.

Aires Corporation Comparative Balance Sheets December 31, 2020 and 2019 Assets 2020 2019 Change Cash $ 21,000 $ 54,000 Accounts receivable (net) 421,000 480,000 Inventory 310,000 340,000 Prepaid expenses 17,000 15,000 Long Term Investments 70,000 80,000 Land 400,000 300,000 Equipment 1,730,000 1,590,000 Accumulated depreciation-equipment (610,000) (600,000) Patent 40,000 50,000 Total assets $2,399,000 $2,309,000 Liabilities Accounts payable $ 328,000 $ 335,000 Accrued liabilities 171,000 170,000 Income taxes payable 22,000 34,000 Bonds payable 410,000 700,000 Long-term note payable 130,000 0 Total liabilities $1,061,000 $1,239,000

Stockholders' Equity Common stock $ 800,000 $ 600,000 Additional paid-in capital 152,000 152,000 Retained

earnings 386,000 318,000 Total stockholders' equity $1,338,000 $1,070,000 Total liabilities and stockholders' equity $2,399,000 $2,309,000 Aires Corporation Income Statement Year Ended December 31, 2020 Sales $638,700 Cost of merchandise sold 302,000 Gross profit $336,700 Operating expenses: Depreciation expense $70,000 Amortization expense 10,000 Other operating expenses 58,000 138,000 Income from operations $198,700 Other income/(expenses): Gain on sale of equipment $3,000 Loss on sale of investment (2000) Interest income 6,000 7,000 Income before income tax $205,700 Income tax 62,700 Net income $143,000 a) Issued a long-term note payable in exchange for computer equipment for $130,000. b) Purchased computer equipment for $90,000. c) Sold investments costing $10,000 for $8,000 (Hint: Calculate gain or loss) d) Sold equipment costing $80,000 with accumulated depreciation of $60,000 for $23,000 (Hint: Calculate gain or loss) e) f) Repayment of bonds payable at par for $290,000. g) Declared and paid dividends of $75,000. h) Issued 20,000 shares of common stock at par value of $10 per share. i) Paid $100,000 for land intended for a new plant site.

Required: a) Prepare a statement of cash flows using the indirect method. Include a schedule of noncash investing and financing transactions, if applicable. b) Calculate (Write final answer in space provided below. Show calculation). Ratio Answer Free Cash Flows

8. Mary has just completed her undergraduate degree from Northwestern University and is already planning on entering an MBA program four years from today. The tuition will be $20,000 per year for two years, paid at the beginning of each year. In addition, Mary would like to retire 15 years from today and receive a pension of $60,000 every year for 20 years and receive the first payment 15 years from today. Mary can borrow and lend as much as she likes at a rate of 7%, compounded annually. In order to fund her expenditures, Mary will save money at the end of years 1-3 and at the end of years 6-14. Calculate the constant annual dollar amount that Mary must save at the end of each of these years to cover all of her expenditures (tuition and retirement)? ($38254.77) I would like to know how to solve using solver in excell

With the growing popularity of casual surf print clothing, two recent MBA graduates decided to broaden this casual surf concept to encompass a “surf lifestyle for the home.” With limited capital, they decided to focus on surf print table and floor lamps to accent people’s homes. They projected unit sales of these lamps to be 8,400 in the first year, with growth of 5 percent each year for the next five years. Production of these lamps will require $49,000 in net working capital to start. The net working capital will be recovered at the end of the project. Total fixed costs are $109,000 per year, variable production costs are $20 per unit, and the units are priced at $48 each. The equipment needed to begin production will cost $189,000. The equipment will be depreciated using the straight-line method over a five-year life and is not expected to have a salvage value. The effective tax rate is 38 percent and the required rate of return is 20 percent. What is the NPV of this project?

With the growing popularity of casual surf print clothing, two recent MBA graduates decided to broaden this casual surf concept to encompass a “surf lifestyle for the home.” With limited capital, they decided to focus on surf print table and floor lamps to accent people’s homes. They projected unit sales of these lamps to be 7,800 in the first year, with growth of 8 percent each year for the following four years (Years 2 through 5). Production of these lamps will require $43,000 in networking capital to start. Total fixed costs are $103,000 per year, variable production costs are $25 per unit, and the units are priced at $50 each. The equipment needed to begin production will cost $183,000. The equipment will be depreciated using the straight-line method over a five-year life and is not expected to have a salvage value. The effective tax rate is 40 percent, and the required rate of return is 22 percent. What is the NPV of this project?