The Statements of Financial Position for Lexington Limited as at 30 June 2019 and 30 June 2020 are provided below:

Question One continued on the next page

QUESTION ONE (CONTINUED)

The Statement of Financial Performance for Lexington Limited for the financial year ended 30 June 2020 is provided below:

Additional Information:

1. An interim dividend was declared and paid. A final dividend of $15,000 was declared.
2. New machinery costing $85,000 was purchased for cash during the year.
3. A machine having an original cost of $57,500 was sold for cash during the year. Accumulated depreciation of the machine sold was $48,500 at the point of sale.
4. Other Operating Expenses include depreciation expense of $46,500.
5. Additional shares were issued for cash during the year.
6. All sales and purchases are on credit throughout the year ending 30 June 2020.
7. Accounts payable reflects inventory purchases on credit from suppliers.

REQUIRED:

1. Prepare a fully classified Statement of Cash Flows for Lexington Ltd for the year ended 30 June 2020 using the direct method. Show all workings.

      (b) Compare and contrast the information provided from a Statement of Cash Flows as compared to information contained in the Statement of Financial Position and Statement of Financial Performance. (word limit 150).

QUESTION ONE

The Statements of Financial Position for Lexington Limited as at 30 June 2019 and 30 June 2020 are provided below:

Question One continued on the next page

QUESTION ONE (CONTINUED)

The Statement of Financial Performance for Lexington Limited for the financial year ended 30 June 2020 is provided below:

Additional Information:

1. An interim dividend was declared and paid. A final dividend of $15,000 was declared.
2. New machinery costing $85,000 was purchased for cash during the year.
3. A machine having an original cost of $57,500 was sold for cash during the year. Accumulated depreciation of the machine sold was $48,500 at the point of sale.
4. Other Operating Expenses include depreciation expense of $46,500.
5. Additional shares were issued for cash during the year.
6. All sales and purchases are on credit throughout the year ending 30 June 2020.
7. Accounts payable reflects inventory purchases on credit from suppliers.

REQUIRED:

1. Prepare a fully classified Statement of Cash Flows for Lexington Ltd for the year ended 30 June 2020 using the direct method. Show all workings.

      (b) Compare and contrast the information provided from a Statement of Cash Flows as compared to information contained in the Statement of Financial Position and Statement of Financial Performance. (word limit 150).

Monty Corporation has provided the following information for the year ended December 31, 2020.

Additional Information:

Calculate taxable income and taxes payable for 2020.

Prepare the journal entries to record 2020 income taxes (current and future). (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.)

You have two samples of covalently closed, circular DNA (ccc dsDNA)—one relaxed and one slightly negatively supercoiled—and you want to visualize the DNA using gel electrophoresis. You add a small amount of ethidium bromide to each sample. Each cccDNA contains the same number of base pairs. Interestingly, you see that the relaxed cccDNA sample migrates faster in the gel than the negatively supercoiled cccDNA sample. Which of the following is a valid explanation for the results? Select one choice from the list below (A-D) and explain your answer. A. The treatment with ethidium relaxed the negatively supercoiled cccDNA and positively supercoiled the relaxed cccDNA. B. The treatment with ethidium caused both cccDNAs to become positively supercoiled. C. The treatment with ethidium caused both cccDNAs to become relaxed. D. The treatment with ethidium decreased the linking number of the negatively supercoiled cccDNA and increased the linking number of the relaxed cccDNA.

18. Consider the following closed economy:

C = 60 +0.8(Y-T)

I = 150-1000i

G = 250

T = 200

Ms/P = 100

Md/P = 40+0.1Y-1000i

a. Derive the IS and LM functions.

b. Find the equilibrium interest rate and the equilibrium level of income.

c. Suppose we change this model such that investment is assumed to be completely interest inelastic: that is, investment does not depend on the rate of interest or we have I=150. Write the new equations for the IS and LM schedules and illustrate them graphically. What is the new equilibrium value of income?

d. How would an increase in money stock affect equilibrium values of Y and i under (c) above? Illustrate and explain your answer.

In the early 1990’s Heinz Pet Products, makers of 9-Lives cat food, closed eight smaller plants and centralized operations at its factory in Bloomsburg, Pennsylvania. It expanded the Bloomsburg factory from 250,000 square feet to 1 million, and increased the use of other resources by the same proportion. Output at that factory increased from 3 million cases a year to 65 million. From this information we know that the factory experienced

Select one:

a. diseconomies of scale, and average total cost rose.

b. economies of scale, and average total cost rose.

c. diseconomies of scale, and average total cost fell.

d. economies of scale, and average total cost fell.

If a typical individual were to go to the circus performance after performance, the marginal utility of each additional performance would

Select one:

a. increase, at a decreasing rate.

b. eventually decline.

c. decline at first, but eventually rise.

d. remain unchanged.

The Mr. Coffee coffeemaker was introduced in 1971, the first automatic drip coffeemaker on the market. It was immensely successful and highly profitable. Today many companies produce automatic drip coffeemakers and consumers perceive only slight differences between them. With this additional competition, Mr. Coffee’s profits are no better than those of other small appliances.

With only the information given above, an economist would probably explain the drop in Mr. Coffee’s profits as follows:

Select one:

a. Mr. Coffee must have experienced an increase in some important cost of production, resulting in a drop in profits.

b. Consumer taste for coffee must have declined, leading to a shift to the left in the demand for coffee makers.

c. Mr. Coffee’s high profits must have attracted new firms into the market for coffeemakers.

d. The government must have taxed away Mr. Coffee’s excess profits.

Hurricanes in 2005 that hit the natural gas producing areas of the U.S. Gulf Coast caused

Select one:

a. neither the supply curve nor the demand curve for natural gas to shift in 2005; there was a movement along the curves.

b. only the supply curve for natural gas to shift to the left in 2005.

c. only the demand curve for natural gas to shift to the left in 2005.

d. both the supply curve and the demand curve for natural gas to shift to the left in 2005.

I am completing a questionnaire for my course. How can I re-write following questions as closed-ended questions to be included in the questionnaire?

1.Do you believe that World Bank loans significantly helped economic development in Emerging Markets during 2008-2016.

2. Please indicate the extent to which you agree with the following statements: a) The World Bank helped improve the enabling environment for SME firms in Emerging Markets during 2008-2016. b) The World Bank’s mainstreaming of framework agreements addressed project implementation needs in Emerging Markets in 2008-2016.

3. Do you agree that the impact of the 2008 global economic crisis slowed the World Bank’s lending enhancement upon economic growth in Emerging markets?

4. To what extent do you agree with the following statement: Given the degree their exposure to global financial markets, Business Executives have a better understanding than Professors of the degree to which the World Bank’s lending enhanced economic growth in emerging markets during the period 2008-2016.

THANKS

Boatbound

Serial entrepreneur Aaron Hall took note of the “sharing economy” that emerged during the last recession and launched Boatbound, a peer-to-peer boat rental company that brings together boat owners who are willing to rent their boats when they are not in use and people who want a fun boating experience without the cost of owning a boat. Hall realized that 12.2 million boats are registered in the United States, yet the average owner uses his or her boat just 26 days per year. Boatbound screens all potential renters, verifies the condition and the safety of each boat, carries ample insurance on each boat, and covers general liability. Boat owners select their renters from Boatbound’s pool of applicants and set daily rental fees, and Boatbound collects 35 percent of the fee. Boatbound has rented every kind of boat, from kayaks to yachts with captains. Fees range from $200 to $8,500 per day. “As a boat owner and someone in the marine industry, I’ve been waiting for something like this my whole life,” says Aabad Melwani, owner of a marina. “I just didn’t know it.”

Henrybuilt

Scott Hudson, CEO of Henrybuilt, had created a profitable niche designing and building upscale kitchens that ranged from $30,000 to $100,000. In 2006, Hudson opened a New York City showroom, which doubled in size in just 18 months. By 2008, the company had more than 200 jobs in the United States, Mexico, and Canada. When the recession hit, however, new projects came to a standstill, and customers began cancelling orders. In response, Hudson launched a subsidiary, Viola Park Corporation, that provides customers lower-cost remodeling options that use its software rather than an architect to create “custom” variations on Henrybuilt designs. The result is a process that produces a kitchen much faster and at half the cost of a Henrybuilt kitchen. Henrybuilt sales have recovered, but Viola Park accounts for 20 percent of sales and is growing twice as fast as Henrybuilt. Unequal Technologies Robert Vito started Unequal Technologies in 2008 to supply protective clothing and gear, including bullet-proof vests, to military contractors. The protective gear is made from a lightweight yet strong composite material that he developed and patented. Two years later, the equipment manager of the Philadelphia Eagles called to ask whether Unequal Technologies could create a special garment for one of its star players who had suffered a sternum injury. Vito modified the bullet-proof vest for the player and soon had other players in the National Football League asking for protective gear. Unequal technologies went on to develop Concussion Reduction Technology (CRT), peel-and-stick pads for football helmets that are made from before it reaches the skull. Independent tests show that CRT reduces the risk of head injuries from impact by 53 percent. The company now supplies equipment to 27 of the NFL’s 32 teams and has its sights set on an even larger market: amateur sports. Vito says Unequal’s technology gives the company a competitive edge that has allowed it to increase sales from $1 million to $20 million in just one year.

(Source: Scarborough and Cornwall, 2016)

1. Select one of these small businesses (Boatbound or Henrybuilt) and explain how the said business used six (6) of the 10 types of innovation to bolster its success.   

15. Marks)

Alligator, Inc.

Alligator, Inc. is a shoe designer, manufacturer, and distributor that launched its business in 2012. Although the company operates globally, its headquarters location is in Arteixo, Galicia, Spain, which coincidentally is the central location for Zara, the flagship chain store of the Inditex group, the world’s largest apparel retailer. The best-selling brand of Alligator, Inc. is its Gators™ model, which is a market leader in the funky, brightly-colored, lightweight shoe market that has enjoyed unexpectedly high demand in recent years. Made of a highly-resilient, space-age plastics material, Gators™ success is related also to the fact that each pair includes “one-size fits all” orthotics to meet the needs of individual consumers. Alligator, Inc. has patented the processes relating to the manufacture of the orthotics, and the overall value of this product innovation is similar to the way in which the super-secret formula for Coke is valuable to Coca-Cola, Inc.

The Alligator supply chain begins with retail consumers who are located in regions throughout the world. The Gators™ product is available for consumers at a wide variety of department stores, airport kiosks, Internet, and a select number of Alligator stores located primarily in developed countries. In addition to proprietary manufacturing facilities in Spain, Gators™ are produced by contract manufacturers in the Shenzhen area of China and in Brasilia, Brazil. Generally, the manufacturing costs per unit were lower in Shenzhen and Brasilia, and somewhat higher in Spain. Conversely, the quality of Gators™ manufactured in Spain was considerably better than that of the other locations. The markets served by the respective manufacturing facilities were those that were in greatest proximity.

The supply side of the Gators™ supply chain was a little more complicated, as most inputs to the finished product were available from suppliers in the regional markets, but the custom-fit orthotics were all produced in University Park, PA in the United States. This is because the developers of the orthotics technology were professors in the supply chain and information systems and footwear technology departments at Penn State University. Overall, Alligator’s relationships with its suppliers could have benefited from better coordination, and more timely and complete exchanges of information. At the time that this case study was published, Alligator was in the process of designing an IT capability that would capture point-of-sale information, for further use in streamlining and aligning supply chain operations. Also, the sales of Gators™ exhibited seasonal variation, but to some extent seasonal sales in the southern hemisphere complemented sales in the northern hemisphere.

To help address some of the supply chain issues facing Alligator, Bryson Wilde has recently been hired as the new SVP Supply Chain, and Molly Walters has been selected as the first chief information officer for Alligator. Collectively, and with the help of consultant Anna Walters, this group has taken time so far to visit the company’s global facilities and to become aware of the situation, problems, and concerns that are faced by Alligator, Inc. with regard to the Gators™ product. The following are some of the questions that will need to be addressed by this group.

2. What are the impacts of less-than-perfect demand forecasts for Alligator products, including Gators™, and of volatility in the length and cost the supply chain services needed to move components from suppliers to manufacturing sites, and the subsequent movement of finished products to market? What should be done to mitigate these problem areas?

Let “ ·n” be multiplication modulo n, and consider the set Un = { [a] ∈ Zn | there is a [b] ∈ Zn with [a] ·n [b] = [1]}

(a) Show that (Un, ·n ) is a group.

(b) Write down the Cayley table for U5. Hint: |U5| = 4.

(c) Write down the Cayley table for U12. Hint: |U12| = 4.