Ka-Pow Corporation's charter authorizes the issuance of 1 million common shares and 500,000 cumulative, participating preferred shares that have a dividend rate of $6 per share per year.

Ka-Pow’s limited ledger shows the following balances on December 31, 2019:

Preferred shares outstanding, 10,000 shares $1,200,000 Common shares outstanding, 20,000 shares 300,000 Retained earnings 2,000,000

The following transactions involving share issues were completed in 2020. Assume that Ka-Pow follows IFRS.

Jan 1: The board of directors declared a $163,000 dividend on both the 20,000 shares of outstanding common and the 10,000 shares of outstanding preferred.

Feb 1: The dividend was paid. Mar 1: Issued 4,000 common shares for machinery. The machinery had been appraised at a fair value of $72,000, and the seller's carrying amount was $58,600. The common shares' most recent market price is $18.50 a share.

Jun 1: Purchased 6,000 of its own outstanding common shares for $20 each and cancelled them.

Dec 15:Declared a 2-for-1 stock split on the outstanding common shares. The market price of the common shares was $24 at the time of the split.

Dec 31: The company reported/declared/calculated net income of $500,000 and comprehensive income of $530,000.

Instructions:

1. Prepare the journal entries to record the transactions from January 1 through to and including December 15. If no entry is needed for a particular date, write “n/a”.

2. On December 31, 2020,

a) What is the total number of common shares outstanding?

b) What is the total number of common shares authorized?

c) What is the balance in retained earnings at December 31, 2020?

1. Place the following in the correct order from initiation to end of inflammation (some events may happen simultaneously)

Attraction of phagocytes

Clot formation around area

Damage/injury

Histamine released

Mast cell activated

Neutrophils enter tissue

Phagocytes attack

Remove debris

Swelling

Tissue repair

Vasodilation

2. Explain humoral immunity; and the active, passive, natural and acquired componenents.

1. Hyperkalemia

(a) Provide an understanding of how abnormally elevated blood serum K⁺ levels can lead to abnormalities in the resting membrane potential

(b) Describe how hyperkalemia impacts a neurons ability to produce typical action potentials

(c) From your acquired understanding of how hyperkalemia leads to abnormalities in the resting membrane potential, describe how hyperkalemia may result in cardiac arrhythmias.

PIETROLUNGA TIMBER MERCHANTS LTD

Pietrolunga is a small stock market-listed Italian timber merchant involved in forestry management, timber production, and the export of specialist woods used in the production of fine musical instruments – so-called “singing wood.” The company, based in the mountains of Trentino in the North Italy, has a reputation as the world’s finest producer of woods to produce concert-grade grand pianos.

Pietrolunga has a thirty-year contract to supply all of the piano wood requirements for a leading manufacturer based in Japan, in addition to numerous small-scale contracts with master luthiers around the world who specialize in producing high-quality hand-made classical stringed instruments from violins to double bass. The trees used in piano production take around sixty years to reach the required level of maturity, but the maple used for the backs of the stringed instruments takes much longer, and these trees are more susceptible to disease. This long lead time requires careful planning by the staff at Pietrolunga, who face huge uncertainties about the long-term demand for such items. In addition, significant amounts of working capital are tied up in the forestry stocks because even once felled, the slow air-drying processes mean that wood cannot be sold for several years.

There is also a high level of uncertainty within the company’s current business environment. The primary geographic market for products is South East Asia, in the countries of Japan, Singapore, and China, but both the European and North American markets are in decline, except for cheap student-grade instruments that are now being produced in huge numbers under factory conditions in China. Chinese producers have also gained a foothold in the professional grade of instrument making, by sending staff over to train in the leading instrument-making schools of Europe, and then using these masters to train local staff back in China. The Chinese instruments are made using local, tropical woods rather than the spruce and maple commonly used in Europe, but the resulting instruments are highly rated by many professional players and are priced at less than half of their traditional equivalent. In contrast to the market for classical instruments, that for hand-made guitars is growing. In recognition of this, Pietrolunga entered into a joint venture arrangement in 2006 with a US-based company that supplies wood to North American luthiers. Under the terms of the joint venture agreement, in which costs, income, and profit are shared 50:50 between the two parties, Pietrolunga takes responsibility for forestry management and felling, while the US party then stores, dries, prepares, and manages the sale and distribution of the wood. Due to different climatic conditions, the trees grown in the US are not the same as those in Italy, although maturity cycles are similar. The resulting tonewood is, however, very well suited to the US guitar market

All revenue from trade sales and transactions within mainland Europe are priced in euros, but sales to all other geographic areas are priced in local currencies. Contract prices are fixed on felling the selected trees an average of 24 months before delivery.

Required;

1. Identify five risks that the company is exposed to and explain their potential impact to financial performance for the entity. For each risk also propose the various strategies that can be used to control/mitigate the risks you have identified.   

Glob and Dream Company provides the budgeting information for the first two quarters of the coming year 2020;

The company expects to sell their units in the first quarter by RM 20 per unit and the price will increase by 25% in the second quarter. Based on the past experiences, the sales department in the company expects to sell about 35% of the total products for cash and only 80% of the sales on account will be collected in full in the first quarter and the remainder in the second quarter.

The company comes to an agreement with the suppliers that one-fourth of the total purchase in each quarter will be paid in the same quarter and the balance will be paid in the following quarter. Amongst the quarterly selling and administration expenses RM6,400 presents property taxes and depreciation. The property tax will be paid by the end of the third quarter however, RM40,000 part of income taxes will be paid on the second quarter. Of the remainder of the selling and administrative expenses; 50% will be paid in the quarter in which they are incurred and the other 50% will be paid in the following quarter. The company has a plan to expand its business and buy a new machine which will cost RM250,000 and it will be paid in the first

The beginning balances in the first quarter are Cash RM45000, Accounts receivable RM51000 and Account payable RM121,500 (RM102,000 for materials purchases and RM19,500 for selling and administrative expenses). Based on the company policy, it is important to maintain a minimum cash balance of RM 25,000 at the end of each quarter.

Required:

Prepare the cash budget of this company for the first and second quarter of the year 2020

Typewriter Plus purchased equipment for $40,000 on September 30, 2019. The equipment has a residual value of $8,000 and estimated life of 8 years. Calculate the net book value of the equipment on December 31, 2020.

Multiple Choice

• $32,000

• $28,000

• $35,000

• $36,000

  Which of the following statements about debits is false?

  Multiple Choice

• Debits increase assets.

• Debits decrease stockholders’ equity.

• Debits increase liabilities.

• Debits decrease liabilities.

  Elephant Company calculated depreciation per year of $8,000 on a building it purchased on January 1, 2019. How much accumulated depreciation will appear in the December 31, 2020 financial statements?

  Multiple Choice

• $12,000

• $24,000

• $16,000

• $8,000

  Kettle Company received but did not pay its electric bill. What journal entry should Kettle Company record?

  Multiple Choice

• Debit utilities expense and credit utilities payable

• Debit utilities expense and credit cash

• Debit utilities payable and credit cash

• Debit utilities payable and credit utilities expense

  If a company debits an expense account, what impact does that have on stockholders’ equity?

  Multiple Choice

• Decreases stockholders’ equity

• Increases stockholders’ equity

• There is no effect on stockholders’ equity

  A transaction has been recorded in the T-accounts of Gibbs Company as follows:
  

  Cash
  1,500

  Unearned Revenue
  	1,500

  
  Which of the following could be an explanation for this transaction?

  Multiple Choice

• Gibbs has received cash for services to be provided in the future.

• Gibbs has provided services to a customer on account.

• Gibbs has completed services for which they had earlier received cash in advance.

• Cash has been paid out to a company that will provide future services to Gibbs Company.

Activity 2. Now that you know the essential terms in climate and biodiversity, let us try to check your understanding of these terms. In the space provided, differentiate the following:

1.   Deciduous forest from evergreen forest.

2.   Woodland from shrubland

3. Tropical rainforest from tropical seasonal forest

4. Savanna from thornwood

5. Weather and climate

Supreme Fish is a company involved in fish farming in Vietnam. Its products are sold to supermarkets as well as restaurants throughout the world. Supreme Fish has a global market share of 40% for this type of fish. Supreme Fish has a US$150 million, 15 year bond issued 2 years ago. The bond pays a premium of 500 basis points over the SOFR. The bond is not rated. However, based on its yield, an equivalent rating would be BB. An institutional investor intends to sell its holdings of US$5 million of the bonds. As a buy-side bond analyst, you have been tasked to analyse the suitability of the bond for your fund.

Assess the credit risk issues related to the bond.

Please give me the correct answer:

Jacobs Engineering Group had its target price increased by analysts at KeyCorp from $82.00 to $86.00 in a research note issued to investors on Wednesday, Benzinga Ratings Tables reports. The firm currently has an "overweight" rating on the construction company's stock. KeyCorp's price target indicates a potential upside of 7.69% from the company's current price. Other research analysts have also issued research reports about the company. MKM Partners lifted their price target on Jacobs Engineering Group to $87.00 and gave the stock a "buy" rating in a report on Tuesday, February 26th. ValuEngine upgraded Jacobs Engineering Group from a "hold" rating to a "buy" rating in a report on Monday, February 25th. Cowen set a $82.00 price objective on Jacobs Engineering Group and gave the stock a "buy" rating in a report on Wednesday, February 20th. Citigroup set a $83.00 price objective on Jacobs Engineering Group and gave the stock a "buy" rating in a report on Wednesday, February 20th. Finally, Robert W. Baird set a $83.00 price objective on Jacobs Engineering Group and gave the stock a "buy" rating in a report on Wednesday, February 20th. Two equities research analysts have rated the stock with a hold rating and fifteen have issued a buy rating to the company's stock. Jacobs Engineering Group has a consensus rating of "Buy" and a consensus target price of $84.55.

The case above reports that two of the equities research analysts have rated the stock with a “hold” rating. If the two equities research analysts are right, what results must have found about the value of Jacobs Engineering Group’s common stock?

1. Two equities research analysts found that the current market price of common stock for Jacobs Engineering Group is above the book value of Jacobs Engineering Group’s common stock.

2. Two equities research analysts found that the current market price of common stock for Jacobs Engineering Group is equal to the intrinsic value of Jacobs Engineering Group’s common stock.

3. Two equities research analysts found that the current book of common stock for Jacobs Engineering Group is above the intrinsic value of Jacobs Engineering Group’s common stock.

4. Two equities research analysts found that the intrinsic value of common stock for Jacobs Engineering Group is above to the current common stock price of Jacobs Engineering Group.

5. none of the answers is correct.

Benchmark, the Silicon Valley venture firm and early investor in Uber, has sued former CEO Travis Kalanick.

In a Delaware Chancery Court filing, originally identified by Axios’ Dan Primack, the suit alleges that Kalanick committed fraud, breach of contract and breach of fiduciary duty. Both Kalanick and Benchmark hold Uber board seats.

Accusing Kalanick of being “selfish” by packing Uber’s board with “loyal allies,” Benchmark alleges that the ousted CEO broke the law by trying to pave the way.

The board of directors and corporate managers work together and at times, because they know each other well, there could be an entrenchment among them. As the alleged claim is true CEO Travis Kalanick committed fraud, breach of contract and breach of fiduciary duty to benefit himself, what kind of problem in a corporation describes the situation the best?

1. managers benefiting themselves rather than the shareholders of the company is called “fiduciary problem.”

2. managers benefiting the shareholders of the company rather than themselves is called “corporate governance.”

3. managers benefiting the shareholders of the company rather than themselves is called “agency problem.”

4. none of the answers is correct.

5. managers benefiting themselves rather than the shareholders of the company is called “agency problem.”

Pomerantz LLP is investigating claims on behalf of investors of EQT Corporation (“EQT” or the “Company”). The investigation concerns whether EQT and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On June 19, 2017, EQT announced entry into an agreement to acquire Rice Energy Inc. (“Rice”) for total consideration of $6.7 billion (the “Acquisition”). EQT touted the purported benefits of the proposed merger, telling its shareholders that the Acquisition would result in $2.5 billion in synergies, including $100 million in cost savings in 2018 alone. On July 3, 2017, activist investor JANA Partners LLC (“JANA”), in several letters citing detailed evidence, asserted that the Rice merger synergies were “grossly exaggerated” and that according to JANA’s expert analysis, “it would be impossible for EQT to support its claimed synergy drilling plan.” Nonetheless, EQT repeatedly denied JANA’s assertions and reassured investors of the merits of the Acquisition. EQT and Rice shareholders thereafter approved the Acquisition. After the Acquisition closed in November 2017, EQT continued to tout the “significant operational synergies” or the merger that would purportedly allow EQT to become “one of the lowest-cost operators in the United States.” On March 15, 2018, just five months after the Acquisition closed, EQT announced the sudden and unexpected resignation of Steven T. Schlotterbeck as the Company’s Chief Executive Officer. Then, on October 25, 2018, EQT reported surprisingly bad third-quarter financial results caused by a significant increase in total costs, which were $586.2 million higher than in the same period of the prior year. Moreover, EQT disclosed that its estimated capital expenditures for well development in 2018 would increase by $300 million, to $2.5 billion, as a result of “inefficiencies from higher activity levels, the learning curve on ultra-long horizontal wells, and service cost increases.” As a result, EQT reduced its full-year forecast for 2018. These disclosures were at odds with EQT’s prior representations concerning the purported synergies of the Acquisition.
On this news, EQT’s stock price fell $2.79 per share, or 12.65%, to close at $19.24 per share on October 25, 2018.

Which one of the goals will be appropriate for Steven T. Schlotterbeck as the Company’s Chief Executive Officer to follow?

1. Shareholders wealth maximization.

2. Short-term profit maximization.

3. Sales and net income maximization.

4. Free cash flow maximization.

5. none of the answers is correct.

When Ultra Petroleum Corp. emerges from bankruptcy protection in the coming weeks, as expected, the natural gas producer's chief executive is on track to be rewarded with roughly $35 million worth of its stock, more than 10 times his annual compensation in recent years.

Michael Watford, the CEO, and other employees at the Houston company are sharing 7.5% of the Ultra's new shares, a fairly typical cut awarded to managers of companies emerging from bankruptcy protection to incentivize them to stick around. Bankrupt companies usually issue new stock when they emerge from bankruptcy, replacing their old shares.

What's unusual in Ultra's case is the size of the pie from which that slice is coming: The company's postbankruptcy equity value has been set at about $4 billion, meaning that its employees are due some $300 million of stock, 40% of it to be doled out the day its new shares are launched, according to court filings and people familiar with the matter. The rest would be distributed at the discretion of its board.

While Ultra Petroleum Corp. emerges from bankruptcy protection, Michael Watford, the CEO of the company, will be rewarded with roughly $35 million worth of its stock. Do you think this is consistent with the firm’s goal?

1. The amount of the award is outrageous, and it is inconsistent with the sales maximization goal.

2. none of the answers is correct.
3. There's more to Uber IPO flop than meets the eye: It’s clear now that Uber Technologies Inc’s initial public offering will be left with a less than five-star review. The stock remains below its IPO price, and many people have heaped fault on the bankers who told executives that Uber could be worth $120 billion.

4. Even though the amount awarded is outrageous, the incentivizing top managers with bonuses is consistent with the shareholders wealth maximization goal.

5. Even though the amount awarded is outrages, the incentivizing top managers with bonuses is consistent with the shareholders sales maximization goal.

6. The amount of the award is outrageous, and it is inconsistent with the shareholders wealth maximization goal.