Questions
Question 4.2 (Total: 12 marks; 4 marks each) Financial statements for Space Galaxy Ltd. are presented...

Question 4.2 (Total: 12 marks; 4 marks each)

Financial statements for Space Galaxy Ltd. are presented below:


Space Galaxy Ltd.

Statement of Financial Position

December 31, 2020


Assets Liabilities & Shareholders’ Equity

Cash $44,000 Accounts payable $28,000

Accounts receivable 39,000 Bonds payable 54,000

Buildings and equipment 154,000

Accumulated depreciation—

buildings and equipment (46,000) Common shares 69,000

Patents 24,000 Retained earnings 64,000

$215,000 $215,000


Space Galaxy Ltd.

Statement of Cash Flows

For the Year Ended December 31, 2020


Cash flows from operating activities

Net income $60,000

Adjustments to reconcile net income to net cash

provided by operating activities:

Increase in accounts receivable $(19,000)

Increase in accounts payable 7,000

Depreciation—buildings and equipment 12,000

Gain on sale of equipment (7,000)

Amortization of patents 3,000 (4,000)

Net cash provided by operating activities 56,000


Cash flows from investing activities

Sale of equipment 14,000

Purchase of land (27,000)

Purchase of buildings and equipment (52,000)

Net cash used by investing activities (65,000)


Cash flows from financing activities

Payment of cash dividend (25,000)

Sale of bonds 45,000

Net cash provided by financing activities 20,000


Net increase in cash 11,000

Cash, January 1, 2020 33,000

Cash, December 31, 2020 $44,000


At the beginning of 2020, the accounts payable balance was $21,000, and the bonds payable balance was $9,000. All of Space Galaxy’s bonds have been issued at par.

Required

1. Calculate the current cash debt coverage ratio

2. Calculate the cash debt coverage ratio

3. Calculate the free cash flow

In: Accounting

Sheridan Inc. reported income from continuing operations before taxes during 2020 of $804,900. Additional transactions occurring...

Sheridan Inc. reported income from continuing operations before taxes during 2020 of $804,900. Additional transactions occurring in 2020 but not considered in the $804,900 are as follows.

1. The corporation experienced an uninsured flood loss in the amount of $93,900 during the year.
2. At the beginning of 2018, the corporation purchased a machine for $70,200 (salvage value of $11,700) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2018, 2019, and 2020, but failed to deduct the salvage value in computing the depreciation base.
3. Sale of securities held as a part of its portfolio resulted in a loss of $58,400 (pretax).
4. When its president died, the corporation realized $159,600 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of $47,530 (the gain is nontaxable).
5. The corporation disposed of its recreational division at a loss of $117,100 before taxes. Assume that this transaction meets the criteria for discontinued operations.
6. The corporation decided to change its method of inventory pricing from average-cost to the FIFO method. The effect of this change on prior years is to increase 2018 income by $60,600 and decrease 2019 income by $21,510 before taxes. The FIFO method has been used for 2020. The tax rate on these items is 30%.


Prepare an income statement for the year 2020 starting with income from continuing operations before taxes. Compute earnings per share as it should be shown on the face of the income statement. Common shares outstanding for the year are 108,490 shares. (Assume a tax rate of 30% on all items, unless indicated otherwise.) (Round earnings per share to 2 decimal places, e.g. 1.48 and all other answers to 0 decimal places, e.g. 5,275.)

In: Accounting

Please answer ALL of the following questions! 1. Suppose China is rich in unskilled labor relatively...

Please answer ALL of the following questions!

1. Suppose China is rich in unskilled labor relatively to Japan. Then, according to the Heckscher=Ohlin model, China tends to export (a. high-tech goods/ b. low-tech goods) to Japan and a trade with China benefits (a. unskilled labor/ b. skilled labor/ c. capital owner) of Japan.

2. Wage rates across countries tend (a. to be equalized only if/ b. to be equalized whether or not) trade barriers and technology gaps are absent. When Japan imports low-technology goods and export high-technology goods, a rise in the relative price of imports of Japan tends to (a. increase/ b. decrease/ c. not affect) its skilled-labor wage/ unskilled-labor wage ratio and (a. increase/ b. decrease/ c. not affect) its welfare.

3. The Leontief Paradox comes from the fact that the US exported (a. capital/ b. labor/ c. technology) intensive goods. The paradox can be explained by (a. complete specialization/ b. productivity difference/ c. no output price convergence).

4. If China’s growth worsens her terms of trade, it will (a. always hurt/ b. sometimes hurt/ c. always benefit) her trading partners, and will (a. always hurt/ b. sometimes hurt/ c. always benefit) herself.

5. Since the welfare effects of import tariffs and export subsidies are clear cut, home country’s tariffs should be (a. always welcome/ b. sometimes welcome/ c. never welcome) to home citizens rather than its export subsidies, which is (a. always welcome/ b. sometimes welcome/ c. never welcome) to foreign citizens.

 Foreign aid (a. increases/ b. reduces) its donor country’s purchasing power and leads to a (a. rise/ b. decline) of her export goods price, if the country is (a. large/ b. small) and has a home bias for the export goods. On the other hand, if foreign aid decreases a recipient country’s export price, it (a. always hurt/ b. sometimes hurt/ c. always benefit) the country.

In: Economics

Purchasing a car is a difficult decision. Car prices are a function of many variables such...

Purchasing a car is a difficult decision. Car prices are a function of many variables such as mileage, age, foreign or domestic manufacture and engine technology utilized. Develop and run the following multiple regression model:

  1. Interpret the beta coefficient (slope)s of all slopes: mileage, age, dummy engine and dummy foreign
  2. Interpret R squared value of the model and root mean squared error (RMSE)
  3. Would mileage and age influence your decision based on the statistical output for this sample data?
  4. Would the price of a car be raised if a car were of foreign make and used V6 engine technology?

What will the expected price of a car be in the lemon market if the age of a car was 8 years, with 9,000 miles on it, is of foreign make and with V6 engine?

Use Car Price ($) Mileage (Miles) Age (Years) Dummy Engine: V6 Technology=0, Not V6 Technology=1 Dummy Foreign: US=0, Foreign=1
26900 18000 10 1 1
24995 18500 11 0 1
23998 18670 12 0 1
22988 19000 17 1 0
21895 19020 16 0 0
20995 19540 18 1 0
19995 20001 19 0 0
19995 20025 19 0 0
18995 21000 18 0 0
18975 21250 17 0 0
17999 22000 17 0 0
17995 22134 18 0 0
17995 22345 18 0 0
16950 23450 19 1 0
16922 23540 20 0 0
16796 23780 20 1 0
15988 24000 21 0 1
14995 24670 22 0 1
14995 25000 23 1 1
14990 25009 23 1 1
13877 26001 24 0 1
11995 27001 15 0 1
11495 27250 16 0 1
10990 28000 17 0 1

In: Statistics and Probability

Last week, a small company based in Texas won its patent infringement lawsuit against Nintendo of...

Last week, a small company based in Texas won its patent infringement lawsuit against Nintendo of America. The jury awarded iLife Technologies $10 million in damages when it decided that Nintendo's Wii controllers infringe on iLife's six patents on motion-sensing technology. iLife filed the federal patent lawsuit against Nintendo in 2013, asking for $144 million. The suit stated that Nintendo's Wii and Wii U controllers use accelerometers to track how a player is moving their hands relative to their environment, which is a system iLife says it invented and patented for use in medical monitors that would automatically call an ambulance if an elderly person fell or if a baby was at risk of dying from sudden infant death syndrome. Nintendo, in a statement during the court proceeding, said the patent was not written correctly to cover the way the company used motion-sensing technology in its controllers. In a statement to the BBC, the company said it would appeal the judgment. "Nintendo disagrees with the decision, as Nintendo does not infringe iLife's patent and the patent is invalid," Nintendo said in a statement. "Nintendo looks forward to raising those issues with the district court and with the court of appeals." iLife's lawsuit sought a $4 royalty on each Wii console sold in the six years before iLife launched legal action, totaling 36 million units. iLife also sued Fitbit and Under Armour in similar lawsuits, both of which were dismissed and settled out of court, according to court filings. Back in 2013, an attorney for iLife's CEO Michael Lehrman denounced claims that Lehrman was a "patent troll." "iLife and its CEO Michael Lehrman are the original inventors of this technology, and the company does not enforce any patents that it did not develop," Wallace Dunwoody, an attorney and partner at Munck Wilson Mandala, told the Dallas Observer. "Unlike so-called patent trolls, iLife also has a history of developing and bringing to market products using their technology." PUBLISHED ON: SEP 5, 2017

give me a summary to this article

In: Economics

I'm being ask to design an experiment about enzymes. I'm not sure about how to do...

I'm being ask to design an experiment about enzymes. I'm not sure about how to do that.

To test for the presence of monosaccharides and reducing disaccharide sugars in food, the food sample is dissolved in water, and a small amount of Benedict's reagent is added. The solution should progress in the colors of blue (with no glucose present), green, yellow, orange, red, and then brick red when there is a large amount of glucose present.

Design an experiment where you would determine how quickly Lactaid works to break down milk sugar at different temperatures and pH. Be specific in your description and create illustrations.

answer the questions below

a. What are enzymes?

b. How do enzymes work?

c. What is lactase?

d. What is Lactaid?

e. What is lactose intolerance?

2. Write down how you will perform these experiments? There are two experiments. (1) How does temperature influence Lactaid’s ability to break down lactose (2) How does pH influence Lactaid’s ability to break down lactose? Include illustrations and be very specific and elaborate on why you are doing 3. Write down what you think will happen in each experiment.

Thank you.

In: Biology

1. Blue Spruce Corp. purchased a new machine on October 1, 2019, at a cost of...

1. Blue Spruce Corp. purchased a new machine on October 1, 2019, at a cost of $134,000. The company estimated that the machine will have a salvage value of $20,000. The machine is expected to be used for 10,000 working hours during its 5-year life.

Compute the depreciation expense under straight-line method for 2019. (Round answer to 0 decimal places, e.g. 2,125.)
2019 Depreciation expense:

2. Yello Bus Lines uses the units-of-activity method in depreciating its buses. One bus was purchased on January 1, 2019, at a cost of $227,125. Over its 4-year useful life, the bus is expected to be driven 132,500 miles. Salvage value is expected to be $8,500.

Compute the depreciable cost per unit. (Round answer to 2 decimal places, e.g. 0.50.)

Depreciation cost per unit:        per mile

3. In recent years, Sheffield Transportation purchased three used buses. Because of frequent turnover in the accounting department, a different accountant selected the depreciation method for each bus, and various methods were selected. Information concerning the buses is shown as follows.

For the declining-balance method, the company uses the double-declining rate. For the units-of-activity method, total miles are expected to be 124,000. Actual miles of use in the first 3 years were 2018, 26,000; 2019, 31,500; and 2020, 29,500.

For Bus #3, calculate depreciation expense per mile under units-of-activity method. (Round answer to 2 decimal places, e.g. 0.50.)

Depreciation expense:    per mile

USE CHART BELOW THIS

Bus

Acquired

Cost

Salvage
Value

Useful Life
in Years

Depreciation
Method

1 1/1/17 $ 99,000 $ 7,500 4 Straight-line
2 1/1/17 130,000 10,500 5 Declining-balance
3 1/1/18 89,340 7,500 4 Units-of-activity

4. On January 1, 2019, Pina Colada Company purchased the following two machines for use in its production process.

Machine A: The cash price of this machine was $46,000. Related expenditures included: sales tax $3,250, shipping costs $200, insurance during shipping $110, installation and testing costs $90, and $100 of oil and lubricants to be used with the machinery during its first year of operations. Pina Colada estimates that the useful life of the machine is 5 years with a $4,200 salvage value remaining at the end of that time period. Assume that the straight-line method of depreciation is used.
Machine B: The recorded cost of this machine was $180,000. Pina Colada estimates that the useful life of the machine is 4 years with a $9,850 salvage value remaining at the end of that time period.

Prepare the following for Machine A. (Round answers to 0 decimal places, e.g. 2,125. 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.)

Account Titles and Explanation

debit credit
1
2

5. At December 31, 2019, Sheffield Corp. reported the following as plant assets.

Land $ 3,770,000
Buildings $27,870,000
Less: Accumulated depreciation—buildings 11,900,000 15,970,000
Equipment 48,370,000
Less: Accumulated depreciation—equipment 4,850,000 43,520,000
    Total plant assets $63,260,000


During 2020, the following selected cash transactions occurred.

April 1 Purchased land for $2,120,000.
May 1 Sold equipment that cost $930,000 when purchased on January 1, 2016. The equipment was sold for $558,000.
June 1 Sold land purchased on June 1, 2010 for $1,490,000. The land cost $394,000.
July 1 Purchased equipment for $2,480,000.
Dec. 31 Retired equipment that cost $508,000 when purchased on December 31, 2010. The company received no proceeds related to salvage.

Journalize the above transactions. The company uses straight-line depreciation for buildings and equipment. The buildings are estimated to have a 50-year life and no salvage value. The equipment is estimated to have a 10-year useful life and no salvage value. Update depreciation on assets disposed of at the time of sale or retirement. (Credit account titles are automatically indented when amount is entered. Do not indent manually. Record journal entries in the order presented in the problem. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

In: Accounting

This maze project assumes that a cell is rectangular, and that there is an entrance into...

This maze project assumes that a cell is rectangular, and that there is an entrance into and an exit from the cell.  What if the entrance and the exit were closed doors and the user was to choose which door leads to the next cell?  What would be some pseudocode for this scenario?

Notice that " switch case " statements are used for this project along with " if " statements.  Can they be interchanged and still produce the same results [ i.e., make the switch case statements into if statements, and the if statements into switch case statements ] ? Support your answer!

Reference source code for more information:

public class Maze

{

  static Scanner sc = new Scanner(System.in);

  // maze movements

  static char myMove = '\0';

  // cell position

  static int currentCell = 0;

  static int score = 0;

  static boolean advance = true;

  static boolean checkThis = false;

  public static void main(String args[])

  {

   // the local variables declared and initialized

   char answer = 'Y';

  

   displayMenu();  

      

   while(answer == 'Y' || answer == 'y')

   {

            displayMovement();

            makeYourMove();

            checkThis = checkYourMove();

            mazeStatus();

            System.out.println("move again(Y or N)?");

      answer = sc.next().charAt(0);

  }

   System.out.println("***************************");

}// end main() method

static void displayMenu()

{

   System.out.println("");

   System.out.println("***************************");

   System.out.println("----The Maze Strategy---");

   System.out.println("");

}// end method

static void displayMovement()

{

            if(currentCell == 0)

            {

                        System.out.println("You have entered the maze!!");

                        System.out.println("There is no turning back!!");

                        currentCell = 1;

                        mazeStatus();

                        advance = true;

            }

      System.out.println("make your move (W, A, S, D)");

      System.out.println("W = up, A = left, S = down, D = right)");

}// end method

static void makeYourMove()

{

            myMove = sc.next().charAt(0);

            score++;

            

            switch(myMove)

            {

              case 'W': { MoveUp(); break; }

              case 'A': { MoveLeft(); break; }

              case 'S': { MoveDown(); break; }

              case 'D': { MoveRight(); break; }

            }

            // end program menu

}// end method

static boolean checkYourMove()

{

            if(currentCell == 1 && advance == true)

            {

                        if (myMove == 'W')

                        {

                                    advance = false;

                                    System.out.println("try again");

                                    return advance;

                        }

                        if (myMove == 'A')

                        {

                                    advance = false;

                                    System.out.println("SORRY, there is no return");

                                    return advance;

                        }

                        if (myMove == 'D')

                        {

                                    currentCell = 2;

                                    advance = true;

                                    System.out.println("continue through the maze");

                                    return advance;

                        }

                        if (myMove == 'S')

                        {

                                    advance = false;

                                    System.out.println("continue through the maze");

                                    return advance;

                        }

            }

return advance;

            // end program menu

}// end method

static void MoveLeft()

{

   System.out.println("you moved to the left");

   

}// end method

static void MoveRight()

{

             System.out.println("you moved to the right");

            

}// end method

static void MoveUp()

{

            System.out.println("you moved up (forward)");

            

}// end method

static void MoveDown()

{

            System.out.println("you moved down (downward)");

            

}// end method

static void mazeStatus()

{

            System.out.println("current position: cell " + currentCell);

}// end method

}// end class

In: Computer Science

Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2009 by two...

Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2009 by two talented engineers with little business training. In 2021, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2021 before any adjusting entries or closing entries were prepared. The income tax rate is 25% for all years.

  1. A five-year casualty insurance policy was purchased at the beginning of 2019 for $35,000. The full amount was debited to insurance expense at the time.
  2. Effective January 1, 2021, the company changed the salvage value used in calculating depreciation for its office building. The building cost $600,000 on December 29, 2010, and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salvage value of $100,000. Declining real estate values in the area indicate that the salvage value will be no more than $25,000.
  3. On December 31, 2020, merchandise inventory was overstated by $25,000 due to a mistake in the physical inventory count using the periodic inventory system.
  4. The company changed inventory cost methods to FIFO from LIFO at the end of 2021 for both financial statement and income tax purposes. The change will cause a $960,000 increase in the beginning inventory at January 1, 2022.
  5. At the end of 2020, the company failed to accrue $16,400 of sales commissions earned by employees during 2020. The expense was recorded when the commissions were paid in early 2021.
  6. At the beginning of 2019, the company purchased a machine at a cost of $720,000. Its useful life was estimated to be ten years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2020, was $460,800. On January 1, 2021, the company changed to the straight-line method.
  7. Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.75% is a better indication of the actual cost. Management effects the change in 2021. Credit sales for 2021 are $4,000,000; in 2020 they were $3,700,000.


Required:
For each situation:
1. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change. For accounting errors, choose "Not applicable".
2. Prepare any journal entry necessary as a direct result of the change or error correction, as well as any adjusting entry for 2021 related to the situation described. Any tax effects should be adjusted for through Income tax payable or Refund—income tax.

Prepare any journal entry necessary as a direct result of the change or error correction, as well as any adjusting entry for 2021 related to the situation described. Any tax effects should be adjusted for through Income tax payable or Refund—income tax. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

No Transaction General Journal Debit Credit
1 a(1) Prepaid insuranceselected answer correct 35,000selected answer incorrect not attempted
Retained earningsselected answer correct not attempted 35,000selected answer incorrect
2 a(2) Insurance expenseselected answer correct 7,000selected answer correct not attempted
Prepaid insuranceselected answer correct not attempted 7,000selected answer correct
3 b(1) Depreciation expenseselected answer incorrect 15,000selected answer incorrect not attempted
Accumulated depreciationselected answer incorrect not attempted 15,000selected answer incorrect
4 b(2) Retained earningsselected answer incorrect 25,000selected answer incorrect not attempted
Inventoryselected answer incorrect not attempted 25,000selected answer incorrect
5 c(1) Inventoryselected answer incorrect 960,000selected answer incorrect not attempted
Retained earningsselected answer correct not attempted 960,000selected answer incorrect
6 c(2) Depreciation expenseselected answer incorrect 57,600selected answer incorrect not attempted
Accumulated depreciationselected answer incorrect not attempted 57,600selected answer incorrect
7 d(1) Warranty expenseselected answer incorrect 30,000selected answer incorrect not attempted
Estimated warranty liabilityselected answer incorrect not attempted 30,000selected answer incorrect
8 d(2) Retained earningsselected answer incorrect 25,000selected answer incorrect not attempted
Inventoryselected answer incorrect not attempted 25,000selected answer incorrect
9 e(1) Retained earningsselected answer correct 5,000selected answer incorrect not attempted
Inventoryselected answer incorrect not attempted 5,000selected answer incorrect
10 e(2) Depreciation expenseselected answer incorrect 15,000selected answer incorrect not attempted
Accumulated depreciationselected answer incorrect not attempted 15,000selected answer incorrect
11 f(1) Depreciation expenseselected answer incorrect 15,000selected answer incorrect not attempted
Accumulated depreciationselected answer incorrect not attempted 15,000selected answer incorrect
12 f(2) Retained earningsselected answer incorrect 25,000selected answer incorrect not attempted
Inventoryselected answer incorrect not attempted 25,000selected answer incorrect
13 g(1) Retained earningsselected answer incorrect 15,500selected answer incorrect not attempted
Compensation expenseselected answer incorrect not attempted 15,500selected answer incorrect
14 g(2) Warranty expenseselected answer correct 30,000selected answer correct not attempted
Estimated warranty liabilityselected answer correct not attempted 30,000selected answer correct

In: Accounting

write a paper about an entrepreneur you admire. Select one entrepreneur in your country, region or...

write a paper about an entrepreneur you admire. Select one entrepreneur in your country, region or the world that you admire. Then write a biographical essay on the person using the requirements outlined below.Word limit: 1500-2500 words.

Your essay should contain:

2.   Introduction. This will provide the reader with basic background information on why this entrepreneur was chosen.
3.   Body of the essay. This should include the following information:

•   Business and industry of your selected entrepreneur (innovation, market share, future in the industry, and profitability)
•   Entrepreneur’s background.
•   Decision for the entrepreneur to start their own company as well as the industry they chose.
•   Major events and decision in the entrepreneur’s life.
•   Challenges that the entrepreneur had to overcome.
•   Innovative techniques and practices the entrepreneurs used to gain a competitive advantage.

4.   Conclusion. Discuss the innovative techniques used by the entrepreneur and how they gave a competitive advantage.
5.   References

In: Economics