"Cash Flow Statements and Cash Hoards" Please respond to the following: Apple Inc. and Microsoft Corp. are identified as companies that have accumulated substantial sums of cash. Microsoft and Apple increased dividend payouts and acquired treasury stock to return some of the excess cash to shareholders. Use the Internet and/or Strayer Learning Resource Center to identify one (1) additional large company which is currently accumulating a cash hoard. Next, evaluate how the company identified in your research can use the cash flow statement to project efficient uses of the cash hoard it has accumulated. Suggest at least two (2) advantages and two (2) disadvantages of companies accumulating cash hoards. Provide a rationale for your suggestion.

True Financial corporation is a financial services holding company headquartered in ithaca new york, that offers banking insurance and wealth management service. It pays cash dividends quarterly and also issues stock dividends periodically.

1. At March 31, 2012, True had 9,726,700 shares issued with a par value of $7.00 per share and $75,00 share held in treasury. On April 25, 2012, the company announced that its Board of Directors approved payment of a regular quarterly cash dividend of 3.50 per share , payable on May 15, 2012, to common shareholder of record on May 7,2012. Assume no shares were acquired or sold by the company after March 31. Give the journal entry to record the declaration of the cash dividend.

2. At December 31, 2009, True reported 5,918,200 shares issued with a par value of $7.00 per share and 11,200 share held in treasury. On January 27,2010, the company announced that its board of directors approved payment of a regular quarterly cash dividend of $3.60 per share, payable on February 25, 2010 to common shareholders of record on February 5, 2010. The board also approved the payment of 5% stock dividend distributable on February 25, 2010, to common shareholders of record on February 5, 2010. The share price was $50 when the stock dividend was issued. Assume no treasury shares were acquired or sold after June 30. Prepare the journal entry to record true 's stock dividend.

3. True issued 5% stock dividends in 1995, 2003, 2005, 2006, 2010. In 1998, True issued a three-for-one split. If an investor purchased 1,200 shares in 1994, how many shares would the investor have in 2012?

Since 1980, the United States has undertaken a set of “10 year plans” called Health People Initiatives. What are the major differences between Health People 2020 from any of the previous Health People Initiatives?

How can you obtain a random sample of 60 students from MQBS student who are enrolled in BCom with a Major in Marketing in Session 1, 2020? (hint: think about the relationship between population and a random sample).

Recording Revenue Under Different Repurchase Agreements

On January 1, 2020, Miller Inc. sells equipment to Smith Inc. for $132,000. As stipulated in the revenue contract, Miller Inc. will buy back the equipment on December 31, 2020, for $141,240. The relevant interest rate is 7%

a. Prepare the seller’s journal entry on January 1, 2020.

b. Prepare the seller’s journal entry on December 31, 2020.

c. Assume instead that Miller has the option to buy back the equipment and the fair value of the equipment is expected to
decline through 2020. How would the answers to parts a and b change (if at all)?

d. Assume instead that Smith has the option to require Miller to buy back the equipment after one year for $141,240 (an amount greater than
the expected market value of the equipment at that time). How would the answers to parts a and b change (if at all)?

Molly’s Greenhouse supplies bedding plants and other gardening products to a variety of stores across Alberta and also has a local greenhouse open to the public. Molly’s uses a perpetual inventory system and the earnings approach for revenue recognition. Transactions for the business are shown below:

Prepare journal entries to record the above transactions using the perpetual method. (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. Record journal entries in the order presented in the problem.)

Prepare journal entries to record the above transactions using the periodic method. (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. Record journal entries in the order presented in the problem.)

The Fit Stop Ltd. is a brand-new firm that will open its doors exactly four months from today. Its business objective is to sell all types of training, fitness, conditioning, and exercise equipment to the general public. The Fit Stop plans to specialize in this equipment and to provide customers with personalized advice geared to a customer's specific training or conditioning needs (e.g., training for a particular sport, rehabilitation from injuries, strengthening of back muscles to deal with back pain, general conditioning and fitness), whether the customer is eight or 80 years of age. In order to provide high-quality advice, each store will employ a physiotherapist (to provide advice on problems such as injuries or chronic back pain) and a person with a bachelor's degree in kinesiology (to provide advice on training for various sports of other physical activities). A staff member will even sit down with customers and develop a personalized training or conditioning program that meets their own specific objectives and needs, al no cost to the customer. The remainder of the staff in the store will consist of a manager, with a Bachelor of Commerce degree, and sales staff, who will have at least high school diplomas. Due to the long opening hours, it is expected that between 8 and 12 salespeople will be needed for each store. Because the stores are in shopping malls, they will operate on a Neven-day-4-week basis, open 9:00-9:00 weekdays, 9:00-6:00 Saturdays, and noon to 6:00 on Sundays. Aside from personally helping customers, the roles of the physiotherapist and kinesiologist will be to train other employees in how each type of equipment can be used for various conditioning and rehabilitation purposes. Initially, sales staff will be given general training, but as time goes by, each salesperson will be expected to learn in depth about all the different pieces of equipment, to help customers diagnose their needs accurately, and to be able to explain proper use of the equipment. Because of the high level of training required, all employees will be full-time. The founder of the business is Susan Super fit, who has undergraduate degrees in kinesiology and commerce from the University of Saskatchewan. While at university, she participated in many sports and suffered many injuries due to her all-out style of play). She carne up with the idea for this business while laid up with one of her injuries. While there were businesses that sold fitness and conditioning equipment’s found that the people selling it had very limited knowledge and often gave poor advice on what to buy and how to use it. She has secured funding from private investors and from Growthworks, a large Canadian labour-sponsored investment fund. In order to get volume discounts on the equipment she will be purchasing and to beat competitors into the market, she wants to start off quite large, with stores in major cities in Ontario and the four western provinces, before expanding to Quebec and the Atlantic provinces. She knows that this is a risky strategy and that cost control will be essential to keep the business going long enough to become well known and develop a stable clientele. She does not expect the business to make a profit for at least one year, or maybe even two. Her main competitors will be sporting goods megastores and department and dis- count stores, each of which sells some of the same equipment. Some of these outlets will be able to price their equipment lower than The Fit Stop will be able to, but none have the range of equipment that The Fit Stop will have, and none provide the personalized services that The Fit Stop will. Susan believes that the key to her business success will be highly motivated and knowledgeable employees who have a strong concern for their customers and who are able to work as a team with the other employees to provide the best possible customer service. Since no two customers are exactly alike, employees will have to he innovative in developing solutions that fit their needs. It will also be crucial to keep up with the latest fitness and training trends, as knowledge about fitness is continually increasing, along with new and different types of specialized equipment. A key aspect of company strategy is to be the most up-to-date and advanced supplier of new products and techniques. Although Susan has given a lot of thought to her business, one thing she hasn't really given much thought co is how to compensate her employees. Since she doesn't really know much about compensation, she tends to feel that the safest thing would be to just do what her competitors are doing

que 1-Analyze “The Fit Shop Ltd.” Case and identify the benefit systems (including specific benefits) that would make the most sense for this firm. minimum 500 words

que 2-You have decided that the Fit Stopwould be well suited to Organizational Performance Pay. Select the specific organizational performance pay plan that would seem to work best; then design it, describing specifically how you would deal with various design issues. When you are done, the plan should be ready for implementation. minimum 500 words.

The following are quotes from a currency dealer in the New York currency market:

1a. Which currency above has the widest bid ask spread?

Which has the narrowest?

b. Which currency above has the widest percentage bid ask spread?

Which has the narrowest?

2. Using the quotes provided above, answer the following question. (Phrase your answer to the second part of each of the following as either “If you sell one (identify the currency) to the dealer, you will receive (specify the number of units) (identify the currency)” or ““If you buy one (identify the currency) from the dealer, you will pay (specify the number of units) (identify the currency)”.)

a. What is the bid price in the quote for the Australian dollar? Explain what it means.

b. What is the ask price in the quote for the New Zealand dollar? Explain what it means.

c. What is the bid price in the quote for the Mexican peso? Explain what it means.

d. What is the ask price in the quote for the Egyptian pound? Explain what it means.

3. Using the quotes provided above, how many US dollars a customer would receive from this dealer in exchange for one million

a. British pounds?                  

b. Thai baht?                          

c. Swiss francs?                      

d. New Zealand dollars?        

(In these transactions, the customer is selling foreign currency and buying US dollars.)

4. Using the quotes provided above, how many units of the following foreign currencies would a customer receive from this dealer in exchange for one million US dollars?

a. Canadian dollars                

b. Korean won                       

c. euros                                   

d. Australian dollars               

(In these transactions, the customer is selling US dollars and buying foreign currency.)

5. Using the quotes provided above, how many units of the foreign currency indicated would it take to purchase one million US dollars

a. Australian dollars               

b. Brazilian real                                  

c. British pounds                    

d. Mexican pesos       

(In these transactions, the customer is selling foreign currency and buying US dollars.)

6. Using the quotes provide above, how many US dollars would it cost to purchase one million

a. euros?

b. New Zealand dollars?

c. Mexican pesos?

e. Egyptian pounds?

Exercise 10-13

Presented below is information related to Nash Company.

1. On July 6, Nash Company acquired the plant assets of Doonesbury Company, which had discontinued operations. The appraised value of the property is:

Nash Company gave 12,500 shares of its $100 par value common stock in exchange. The stock had a market price of $188 per share on the date of the purchase of the property.

2. Nash Company expended the following amounts in cash between July 6 and December 15, the date when it first occupied the building. (Prepare consolidated entry for all transactions below.)

3. On December 20, the company paid cash for equipment, $269,700, subject to a 2% cash discount, and freight on equipment of $11,200.

Joe Watt, an ambitious 22 year-old, started an entertainment business called Grand Club after he graduated from Connecticut State University. Grand Club was initially a business failure because Joe ignored day-to-day operations and cost controls. One year later, Joe was heavily in debt. Despite his debt, Joe decided to open another location of Grand Club. He was confident that Grand Club would bring him financial success.

However, as his expenses increased, Joe could not meet his debts. He turned to insurance fraud to save his business. He would stage a break-in at a Grand Club location and then claim a loss. In addition, he reported fictitious equipment to secure loans; falsified work order contracts to secure loans, stole money orders for cash, and added zeros to customers’ bills who paid with credit cards. Joe was living the “good life,” with an expensive house and a new sports car.

Two years later, Joe decided to make Grand Club a public corporation. He falsified statements to greatly improve the reported financial position of Grand Club. In order to avoid the SEC’s scrutiny of his financial statements, he merged Grand Club with Purple House, an inactive New York computer firm, and acquired Purple House’s public owned shares in exchange for stock in the newly formed corporation. The firm became known as Purple House, and the Grand Club name was dropped. Joe personally received 79 percent of the shares. He was now worth $24 million on paper. Joe was continually raising money from new investors to pay off debts. A few months later, Purple House’s stock was selling for $21 a share and the company’s book value was $310 million. Joe was worth $190 million on paper. A short time later, he met Peter Jason, president of GH Firm, an advertising service. Jason agreed to raise $100 million, via junk bonds, for Purple House to buy out Sun Travel, a travel service.

Afterward, with television appearances, Joe became a “hot figure” and developed a reputation as an entrepreneurial genius. However, this reputation changed after an investigation report was published in a major newspaper. The report chronicled some of his early credit card frauds. Within two weeks, Purple House’s stock plummeted from $21 to $5.

After an investigation, Joe was charged with insurance, bank, stock, and mail fraud; money laundering and tax evasion; and Purple House’s shares were selling for just pennies. A company once worth hundreds of millions of dollars dropped in value to only $48,000.

Required:

From this case, identify:

1. The pressures, opportunities and rationalization that led Joe to commit his fraud(s).

2. The signs that could signal a possible fraud.

3. Controls or actions that could have detected Joe’s behavior.