Assume that the USD/JPY exchange rate is 108.58. Which one of the following concepts supports the idea that an item that sells for 500 U.S. dollars in the U.S. is currently selling in Japan for 54,290 Japanese yen?

Group of answer choices

Interest rate parity

Absolute purchasing power parity

International fisher effect

Uncovered interest rate parity

Unbiased forward rates condition

Instant Brake Inc.’s comparative balance sheet information at December 31, 2020 and 2019, and its income statement for the year ended December 31, 2020, are as follows:

During 2020, the following transactions occurred:

1. Purchased equipment for $20,700 cash.
2. Sold the investment on January 1, 2020, for $43,800, resulting in investment income of $19,020.
3. Sold equipment for $7,470 cash that had originally cost $39,720 and had $20,140 of accumulated depreciation.
4. Issued $19,000 of bonds payable at face value.

Required:
1. How much cash was paid in dividends?

2. Prepare a statement of cash flows for Instant Brake for the year ended December 31, 2020, using the indirect method. (List any deduction in cash and cash outflows as negative amounts.)

Mr Ahmed Kumar runs a snack distribution business located in the Light Industrial area in Lusaka. The following list of balances was extracted from his ledger as at 31 March, 2020; the end of his most recent financial year.

K

Capital                                                                                                83,887

Sales                                                                                                  259,870

Trade accounts payable                                                                 19,840

Returns outwards                                                                             13,407

Allowance for doubtful debts                                                          512

Discounts allowed                                                                            2,306

Discounts received                                                                          1,750

Purchases                                                                                         135,680

Returns inwards                                                                               5,624

Carriage outwards                                                                           4,562

Drawings                                                                                           18,440

Carriage inwards                                                                              11,830

Rent, rates and insurance                                                              25,973

Heating and lighting                                                                         11,010

Postage, stationery and telephone                                               2,410

Advertising                                                                                        5,980

Salaries and wages                                                                         38,521

Bad debts                                                                                          2,008

Cash in hand                                                                                    534

Cash at bank                                                                                    4,440

Inventory as at 1^st April 2019                                                         15,654

Trade accounts receivable                                                             24,500

Fixtures and fittings - at cost                                                          120,740

Prov. for depreciation on fixtures and fittings – 31/03/2020     63,020

Depreciation                                                                                     12,074

The following additional information as at 31^st March, 2020 is available:

(a) Inventory at the close of business was valued at K17,750

(b) Insurances have been prepaid by K1,120

(c) Heating and lighting is accrued by K1,360

(d) Rates have been prepaid by K5,435

(e) The allowance for doubtful debts is to be adjusted so that it is 3% of trade accounts receivable.

Required:

For the year 2020, prepare Mr Kumar’s:

Unadjusted Trial Balance as at 31^st March, 2020.

                                                                                                                              [10 Marks]

General Journal recording the adjustments highlighted above.

                                                                                                                              [10 Marks]

Trading, Profit or Loss statement for the year ended 31^st March, 2020.

[10 Marks]

Statement of financial position as at 31^st March, 2020.

                                                                                                                              [10 Marks]

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Marin Inc. has an executive stock option plan, details of which follow:

Marin uses an option-pricing model to value the stock options. When granted, the options are estimated to have a fair value of $8.50 each. This estimate remains unchanged during the vesting period.

Assuming that Marin has a December 31 year end, prepare the required journal entries as at the following dates. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Assuming that Marin has a December 31 year end, prepare the required journal entries as at the following dates. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Current Attempt in Progress

On August 15, 2019, Martinez Co. invested idle cash by purchasing a call option on Counting Crows Inc. common shares for $738. The notional value of the call option is 820 shares, and the option price is $82. The option expires on January 31, 2020. The following data are available with respect to the call option.

Prepare the journal entries for Martinez for the following dates.

(Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

A manufacturing area needs to forecast workhours. This is a slightly different project. The data for several months is supplied below. Beside each of the actual numbers in black, the forecast is provided in red. The goal is to calculate three stats on the data: MAD, MAPE, and the tracking signal. Be careful since the data is listed beginning with the most recent. Please round to two decimal places. For MAPE, please convert to a percentage before rounding. Do not enter the percent sign.

Type or paste question hereiole Ltd., a private company reporting under ASPE, reported the following for the years ended May 31, 2021, and 2020.

Prepare a cash flow statement for the year using the indirect method

DeLong Corporation was organized on January 1, 2020. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year.

Question 1 (1 point)

Equity-method investments (20%-50% ownership) are generally shown at their fair market value on the Balance Sheet.

A: True

B: False

Question 2 (1 point)

For Equity-Method investments (20-50% ownership), dividends received from the investee company will result in the following journal entry:

A: Dr. Cash and Cr. Investment

B: Dr. Investment and Cr. Cash

C: Dr. Investment and Cr. Dividend Revenue

D: Dr. Cash and Cr. Dividend Revenue

Question 3 (1 point)

On 1/1/20, Hershey Corporation purchases 20,000 of the 60,000 outstanding shares of CC Confectioneer for $40 per share. During 2020, CC Confectioneer reports net income of $600,000 and pays total dividends to common shareholders of $300,000. Hershey's 2020 pre-tax Net Income will be ________ because of this investment.

A: $600,000 higher

B: $200,000 higher

C: $100,000 higher

D: $300,000 higher

Question 4 (1 point)

There is usually more uncertainty about the accuracy of Level 3 investment valuations than Level 1 investment valuations.

A: True

B: False