Vittoria Ltd requires a Statement of Cash Flows to be prepared for the year ended

31 March 2018, the following information has been collected for this purpose.

Additional information:

Vittoria Ltd classifies interest expense and dividends paid as cash outflows from financing activities.

Plant and equipment, with a fair value of $100 000, has been acquired by the issue of

$100 000 worth of fully paid Vittoria Ltd shares to the sellers of the plant and equipment.

During the year, equipment that originally cost $100 000 was sold for $30 000 cash.

Plant and equipment was revalued upwards by $30 000.

A long-term loan of $30 000 was specifically organised for the purchase of plant and equipment costing $30 000.  

Required:

(iii) Prepare a statement of cash flows for Vittoria Ltd, for the year ended 31 March 2018, in accordance with NZ IAS 7 Statement of Cash Flows. Vittoria Ltd uses the directmethod for the cash flows from operating activities (CFOA) section. Complete the necessary reconciliation, as required by NZ FRS-44, to be included in the notes.

CFOA = cash flows from operating activities, CFIA = cash flows from investing activities and CFFA = cash flows from financing activities.        

The twenty-year bond yields 6.1% and has a coupon of 8.1%. If this yield to maturity remains unchanged, what will be its price one year hence? Assume annual coupon payments and a face value of $100. (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Price            $

b. What is the total return to an investor who held the bond over this year? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Total return             %

Armand Company projects the following sales for the first three months of the year: $10,600 in January; $12,300 in February; and $12,900 in March The company expects 60% of the sales to be cash and the remainder on account. Sales on account are collected 50% in the month of the sale and 50% in the following month. The Accounts Receivable account has a zero balance on January 1. Round to the nearest dollar. 1. Prepare a schedule of cash receipts for Armand for January, February, and March. What is the balance in Accounts Receivable on March 31? 2. Prepare a revised schedule of cash receipts if receipts from sales on account are 60% in the month of the sale, 30% in the month following the sale, and 10% in the second month following the sale. What is the balance in Accounts Receivable on March 31? Solution: Requirement 1 Schedule of Cash Receipts from Customers January February March Total Total Sales $10,600 $12,300 $12,900 $35,800 Cash Receipts from Customers Accounts Receivable Balance, January 1 $0 1st Qtr. - Cash sales (60%) 6,360 1st Qtr. - Collected for sales on credit (20%) 2,120 2nd Qtr. - Collection of remaining amount of Jan. sales (20%) $2,120 2nd Qtr. - Cash sales (60%) 7,380 2nd Qtr. - Collected for sales on credit (20%) 2,460 3rd Qtr. - Collection of remaining amount of Feb. sales (20%) $2,460 3rd Qtr. - Cash sales (60%) 7,740 3rd Qtr. - Collected for sales on credit (20%) 2,580 Total cash receipts from customers $8,480 $11,960 $12,780 $33,220 Calculate and show below the Accounts Receivable Balance as of March 31 Requirement 2 Revised Schedule of Cash Receipts from Customers January February March Total Accounts Receivable balance, March 31: Amount February - Credit sales (finish this . . . .

4. Calculate the payments and amortization table of a 3-year car loan for $12,000 at a 6% rate of interest. The loan will be repaid with three annual payments.

A 20-year loan of 150,000 is negotiated with the borrower agreeing to repay principal and interest at 5%. A level payment of 9,000 will apply during the first ten years and a higher level payment will apply during the remaining ten years. Each time the lender receives a payment from the borrower, he will deposit the portion representing the principal into a sinking fund with an annual effective interest rate of 4%. (Assume that the interest portion remains level throughout these 20 years and assume that all but the interest portion is deposited into the sinking fund.) This scheme will replace the lender’s capital.

What is the higher payment (rounded to the nearest dollar) that applies during the years 11-20?


A. 16,982  
B. 13,306  
C. 16,426  
D. The answer is not listed here

E. 13,900

Find the lender’s yield on this investment.


A. . 0479  
B. .0384  
C. .0784  
D. .0704  
E. The answer is not listed here

Mary takes a loan for 5 years to be repaid by level end of year payments of R. The interest paid in the third payment was 136.16 and the interest paid in the 5 th payment was 47.62. Please find the amount of principal paid in the fourth payment P4.

On January 1, the first day of the fiscal year, a company issues a $1,350,000, 11%, five-year bond that pays semiannual interest of $74,250 ($1,350,000 x 11% x ½), receiving cash of $1,512,610. Journalize the bond issuance. Refer to the Chart of Accounts for exact wording of account titles.

CHART OF ACCOUNTS- General Ledger

ASSETS- 110 Cash, 111 Petty Cash, 121 Accounts Receivable, 122 Allowance for Doubtful Accounts, 126 Interest Receivable, 127 Notes Receivable, 131 Merchandise Inventory, 141 Office Supplies, 191 Land, 194 Office Equipment, 195 Accumulated Depreciation-Office Equipment

LIABILITIES- 210 Accounts Payable, 221 Salaries Payable, 231 Sales Tax Payable, 232 Interest Payable ,241 Notes Payable,251 Bonds Payable, 252 Discount on Bonds Payable, 253 Premium on Bonds Payable

EQUITY- 311 Common Stock, 312 Paid-In Capital in Excess of Par-Common Stock, 315 Treasury Stock, 321 Preferred Stock, 322 Paid-In Capital in Excess of Par-Preferred Stock, 331 Paid-In Capital from Sale of Treasury Stock, 340 Retained Earnings, 351 Cash Dividends, 352 Stock Dividends, 390 Income Summary

REVENUE- 410 Sales, 610 Interest Revenue, 611 Gain on Redemption of Bonds

EXPENSES- 510 Cost of Merchandise Sold, 515 Credit Card Expense, 516 Cash Short and Over, 522 Office Salaries Expense, 531 Advertising Expense, 532 Delivery Expense, 533 Repairs Expense, 535 Rent Expense, 536 Insurance Expense, 537 Office Supplies Expense, 541 Bad Debt Expense, 562 Depreciation Expense-Office Equipment, 590 Miscellaneous Expense, 710 Interest Expense, 711 Loss on Redemption of Bonds

The following gifts are received and sold in the current year:

Determine the basis for gain and basis for loss and realized gain or realized loss. Enter "0" if the field should be blank or if an amount is zero.

The traffic volume in the year 2018 at an airport (number of take-offs and landings) during peak hour of each day is a described as a log-normal random variable with a mean of 200 planes and a standard deviation of 60 planes. a. If the present runway capacity (for landings and take-offs) is 350 planes per hour, what is the current probability of congestion? [2 marks] b. If the mean traffic volume is increasing linearly at the annual rate of 10% of the volume in 2018 with the coefficient of variation remaining constant what would be the probability of congestion at the airport in year 2028? [2 marks] c. Assuming the same projected growth rate of traffic volume as part (b), and that the maximum acceptable probability of congestion is 10% what year will the airport need to increase their runway capacity? [4 marks] d. Assuming the same projected growth rate of traffic volume as part (b) when the airport upgrades their runway capacity in part (c) what new runaway capacity will they need to ensure the probability of congestion does not exceed the max acceptable probability of congestion of 10% until year 2038? [2 marks]