GeneralProducts Inc. is incorporated in Nevada, USA on Jan 1st 2013 to take over a local retail chain. The objective of the company is to supply goods of everyday use to customers at the most competitive prices. GeneralProducts has established a chain of stores throughout USA. The retail operations of the company are so designed that customers can shop seamlessly in stores and online.

You may use the attached Balance Sheet of GeneralProducts as of Dec 31, 2015 (Links to an external site.) and the financial data for 2016.The same information is provided below.

GeneralProducts provides us financial and business related data for 2016 below.

1. Trades Marks were acquired for $200,000 in 2015.Estimated useful at the time of acquisition was 20 years
   There was a litigation brought out by a competitor against the Trade Mark. GeneralProducts could successfully defend this litigation at a cost of $ 45,000. New useful life of Trade Mark is estimated to be 25 years from the date of acquisition.
2. All sales are on credit and total $ 940,560. COGS are $780,650.
3. Included in the total sales of $940,560 are the sales of GeneralProducts brand 6000 soap powder boxes GeneralProducts includes one coupon in every soap powder box. Customers can redeem 4 coupons for one Kitchen utensil. Based on past experience 60% of the coupons are redeemed by customers. During 2016 3,400 coupons were redeemed. Purchase of premiums during 2016 total 1,000 premiums @ $1.10 each on credit.
4. 6% Bonds Payable are issued on Jan 1 2015 to yield 8% interest. Interest is paid semi-annualy on Jan 1st and June 30th.
   General Products can redeem these Bonds any time after June 30,2016 @ 101.
5. To take advantage of lower interest rates and to finance the redemption of 6% Bonds on Sept.1st 2016, GeneralProducts issued 5%Bonds in the face value of $100,000 to yield 6% The maturity period of these 5% Bonds is 10 years and interest is paid semi-annually on 1st Jan and 30th June. The proceeds from the issue of 5% Bonds are used to redeem 6% Bonds Payable @ 101 on Sept.1st 2016.
6. Selling Administrative Expenses excluding depreciation are $87,345. PP&E is depreciated on Striaght Line Method over 25 years of life.
7. Cash collected from customers total $906,450
8. Cash paid to suppliers for credit purchases total $728,254
9. Purcahses of inventory total $689,525.All purchases are on credit.
10. GeneralProducts purchased Land for $30,000 for construction of building

Requirements

1. Record the necessary journal entries for 2016
2. Prepare Income Statement and Retained Earnings Statement for the year 2016
3. Prepare Balance Sheet on December 31,2016
4. Show full work of all the financial items reported in Income Statement and Balance Sheet. Please round your calculations closest to $. Ignore tax.

Suppose you were the financial Accountant for Max Company Pty. Ltd. The board of directors promoted you to position of Finance manager considering the satisfactory services that you rendered to the company. The CEO has asked you to analyze two proposed capital investments, Projects Naru and Oheema. The cost of capital for each project is 12%.

The projects’ initial cost and expected net cash flows are as follows. The two projects are mutually exclusive projects.

1. If you apply the pay criterion, which project will you choose? Why?
2. If you apply the NPV criterion, which project will you choose? Why?
3. If you apply the RR criterion, which project will you choose? Why?

Please give the answers with explanations

Christine, a newly appointed chief financial officer (CFO) at Winter Pty Ltd, is asked to evaluate and report on the company's present financial condition to the board of directors at an upcoming meeting. She discovers several instances where Paul, the chief executive officer (CEO), has made excessive risky business decisions, going against company policy resulting in the current liquidity problem facing the company.

Paul, Christine’s superior, is fearful of the board’s reactions to the adverse financial report, so he instructs Christine to modify the report to conceal the liquidity problem. Paul told Christine that the liquidity situation will ‘turn around in the near future’ and there is ‘no need to waste the board's time on the matter’. He makes it clear to Christine that if she refuses his request she will no longer have his support.

Describe Christine’s possible response using each of the six stages of Kohlberg’s stages of moral reasoning and development

Burke Enterprises is considering a machine costing $30 billion that will result in initial after-tax cash savings of $3.7 billion at the end of the first year, and these savings will grow at a rate of 2 percent per year for 11 years. After 11 years, the company can sell the parts for $5 billion. Burke has a target debt/equity ratio of 1.2, a beta of 1.79. You estimate that the return on the market is 7.5% and T-bills are currently yielding 2.5%. Burke has two issuances of bonds outstanding. The first has 200,000 bonds trading at 98% of par, with coupons of 5%, face of $1000, and maturity of 5 years. The second has 500,000 bonds trading at par, with coupons of 7.5%, face of $1000, and maturity of 12 years. Kate, the CEO, usually applies an adjustment factor to the discount rate of +2 for such highly innovative projects. Should the company take on the project?

Q.1. The Acme Medical Equipment Company has used the Last-In First-Out (LIFO) inventory method for the 15 years they have existed. Acme's operation has grown substantially, and the CEO believes that the company should now use the FIFO inventory method for this coming year end. This action meets the requirements for consistency.

True

False

Q.2. If the euro is trading at 1.2500 in U.S. dollars (this exchange rate is for illustration only), and you were spending your U.S. dollar in Europe in part of the “euro area,” then to buy products priced in euros, it would take:

Q.3. True or False? The line chart is one of four basic chart styles.

True

False

1. ABC Inc., a mid-sized company in Toronto, Ontario, wants to ensure that its pay systems are internally equitable, gender-neutral, and externally competitive. The CEO, who believes the organization’s compensation system can help it achieve its goals, has hired you to re-design the base pay for the jobs in the organization. The company has about seventy jobs (Marketing, Sales, Finance, HR, and other administrative jobs), some of which are predominantly male and female jobs. Currently, all base pays of the employees were established based on what the candidate asked for and the CEO’s/HR Manager’s limited understanding of the market. Using a point-method job evaluation system and guidelines of Ontario Pay Equity Legislation, discuss in detail how you would go about establishing a base pay for XYZ Inc. which is internally equitable, gender-neutral, and externally competitive.

This is not case analysis. There is no case to this. Please answer the following questions for the company Pfizer

1. Find a list of the members of the board of directors for your firm. How large is the board? How many independent (non-employee) members are on the board? Are any women or minorities on the board? Is the CEO also the chair of the board?

2. Who are the largest stockholders of your firm? Is there a high degree of employee ownership of the stock?

3. In reviewing press releases and news articles about your firm over the past year, can you find examples of any actions the firm has taken that, though legal, may be ethically questionable?

4. You have now completed 12 modular assignments about selected firm. You know a lot about its mission, strategies, competitive advantage, and organization. Is this a company you would like to work for? If you had $1,000 to invest in a firm, would you invest it in the stock of this firm? Why or why not?

Al-Ain Electronics Company is a large manufacturer of electronics and home appliances in the UAE. Over the past few years, Al Ain Electronics has watched overseas competitors take away market share with products that are priced lower and that at the same time, have developed a reputation for better reliability. The company is not in a dangerous position yet, but the Board of Directors wants to see a concerted effort to improve the company's competitive posture. Among the senior management, two factions have developed. One, led by the vice president of operations, is pressing the CEO to implement total quality management. After all, the aim of TQM is to improve competitiveness, and that is just what is needed. On the other hand, the manufacturing vice president and the director of quality assurance are making the case for ISO 9000:2000.

Question-1: In your opinion which approach is more appropriate in these circumstances? Why?

Question-2 Provide your arguments "for" and "against" the implementation of each approach.

Joanne asks you whether the outgoings listed below are allowable deductions. Joanne recently completed her medical degree and took up employment in Newcastle Base hospital. The following outgoings were incurred by her during the 2018-2019 income year:

1.   Travelling to Newcastle for the job interview $300;
2.   Moving from her home in Canberra to relocate to Newcastle $3,000;
3.   Purchase of compulsory doctors’ whites uniform to wear at work $600;
4.   Child care expenses for her two-year-old daughter $15,000;
5.   Travelling from Newcastle hospital to Newcastle CBD for a second job as a waitress in a restaurant $4,000;
6.   Purchase of meals at the hospital before travelling to the Newcastle CBD to commence the second job $600; and
7.   Speeding fine incurred on her way from Newcastle hospital to the Newcastle CBD to commence the second job $500.

Advise Joanne on whether or not the outgoings are tax deductible. Your answer must be supported by legislation, case law and tax rulings (if any).