Blue Manufacturing purchased a machine on January 1, 2020 for use in its factory. Blue paid $458,000 for the machine and estimated that it had a useful life of 10 years, at the end of which time the machine was expected to have a residual value of $40,000. During its life, the machine was expected to produce 380,000 units. During 2020, the machine produced 41,800 units, and produced 58,600 in 2021. The machine was subject to a 20% CCA rate, and Blue’s year-end was December 31.

Calculate the annual depreciation amount for 2020 and 2021 under the straight-line method.

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Calculate the annual depreciation amount for 2020 and 2021 under the activity method. (Round per unit value to 2 decimal places e.g. 5.75 and final answers to 0 decimal places, e.g. 5,275.)

Calculate the annual depreciation amount for 2020 and 2021 under the double-declining balance method.

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Calculate the annual depreciation amount for 2020 and 2021 under the capital cost allowance method.

I can't get my calculations to work out for the last 2?

1. Given below are a set of foreign exchange quotes for several currencies against the Australian dollar as of August 5, 2020.

Australian Dollar Exchange Rates

(a) A friend of yours is totally confused by these rates. She is planning to visit Thailand next month and wishes to purchase 10,000,000 Baht. How many Australian dollars does she require, assuming she is able to use the above quotes?

(b) What are the direct quotes for the following currencies with respect to the Australian dollar?

(i) UK pound

(ii) Chinese Renminbi

(iii) Indian rupee

(iv) Malaysian ringgit

(v) South African rand

(c) Create a table showing the bid and ask quotes of each of the following currency pairs:

(i) GBP/CHF

(ii) PHP/THB

(iii) HKD/MYR

(iv) JPY/INR

(v) RMB/ZAR

(d) On August 5, 2020, you received 100,000 ZAR. Using the rates in the above chart how many AUD will you receive upon selling this?

Please, Answer all parts( a,b,c,d) in Question 1 and step by step. Also, by word document or by keyboard

1. Given below are a set of foreign exchange quotes for several currencies against the Australian dollar as of August 5, 2020.

Australian Dollar Exchange Rates

(a) A friend of yours is totally confused by these rates. She is planning to visit Thailand next month and wishes to purchase 10,000,000 Baht. How many Australian dollars does she require, assuming she is able to use the above quotes?

(b) What are the direct quotes for the following currencies with respect to the Australian dollar?

(i) UK pound

(ii) Chinese Renminbi

(iii) Indian rupee

(iv) Malaysian ringgit

(v) South African rand

(c) Create a table showing the bid and ask quotes of each of the following currency pairs:

(i) GBP/CHF

(ii) PHP/THB

(iii) HKD/MYR

(iv) JPY/INR

(v) RMB/ZAR

(d) On August 5, 2020, you received 100,000 ZAR. Using the rates in the above chart how many AUD will you receive upon selling this?

Bill has bought a new home in Canberra. He borrowed $600 000 at a rate of 3.5% p.a., which is to be repaid in annual instalments over a thirty year period. The first instalment is due on 19 March 2020.

Like Bill, on the situation above, Scott has bought a house in Canberra, borrowing the same amount, and on the the same terms. Scott’s bank, however, offers an ‘interest offset’ account facility with the loan. Like Bill, Scott’s first payment is on 19 March 2020. On the day Scott takes the loan of $600 000 out (19 March 2019), Malcolm gives Scott $100 000. Scott immediately puts the money into his interest offset account. This account also earns 3.5% p.a. (compound interest). Over the term of the loan Scott does not put any more money into the interest offset account. The interest offset account pays interest annually, and its first payment will be on 19 March 2020. a. [6 marks] Draw a cash flow diagram, from Scott’s perspective, that describes the actions of his interest offset account. Scott’s interest offset account pays its interest payments to Scott’s loan. b. [4 marks]What is the amount of Scott’s total loan repayment on 19 March 2020? c. [10 marks] Show that Scott can make the total repayments calculated in part b for only 25 years, and that in the 26th year Scott will only pay $2 047.95 (plus the interest payment from his interest offset account) to extinguish his loan.

Please show all work/provide explanations as appropriate, including clearly defining any variables that you use in the applied problems.

1) According to United Nations estimates ( http://www.worldometers.info/world-population/ ) , the population of the world at the start of 2020 was about 7.795 billion, and it is growing at about 1.05% per year.

a. Find an exponential growth model (i.e. write down an exponential function) that gives the earth’s population in billions as a function of time as measured by number of years after 2020. Be sure to clearly and carefully define your variables.

b. According to the model, what will the world population be in 2030? Solve algebraically as opposed to using a table of values or a graph.

c. Again, according to the model, how long will it take the population to double? Solve this algebraically; that is, do not simply use a table or graph.

d. In what year will the population reach 20 billion? Again, solve without resorting to a table of values or a graph.

2) Refer to the population model you found in problem 1. a. Sketch a graph of your model, displaying at least the next 200 years. You may carefully sketch the graph by hand on graph paper,

b. What is the average rate of change of the world population as described by your model over the next 100 years? (so, from 2020 to 2120, or t = 0 to t = 100)

c. What is the average rate of change from 2020 to 2050?

d. Describe how you could estimate the rate of change of the world population in 2030, and then carry out and show the steps you describe to give an estimate.

Consider the following information which relates to dividends per share (DPS) for a given company:

Today, we are in 2020. Management is in the process of deciding whether to expand or not to expand the firm’s branches. Below, is a set of inputs associated with each scenario:

Scenario #1 – Do Not Expand: Dividend by the end of 2020 is expected to grow at the historical annual growth rate for the period 2015−2019, which is currently undetermined. This period adds up to four years based upon starting at time zero. Once determined, this rate is expected to continue in the future. Under this scenario, the required return on common stock is 14.32%.

Scenario #2 – Expand: Dividend in 2021 is expected to be $2.19 per share, which will grow at an annual rate of 13.19% for two years (2022 and 2023), and then, the divided would grow at the same unknown rate in the first scenario from 2024 thereafter. Under this scenario, the required return on common stock is 17.07%.

Required: What is the dollar difference in the present value per share of common stock between both scenarios?

$Answer

INPUT YOUR ANSWER AS AN ABSOLUTE VALUE ROUNDED TO 2 DECIMAL PLACES. DO NOT USE POSITIVE/NEGATIVE SIGNS. DO NOT ROUND INTERMEDIATE CALCULATIONS.

You are currently employed as partner in United & Party LLC, an accounting firm. The following three different audits were performed by your team for the year ended December 31, 2018:

Peoples Shelter, a non-profit organization. Except for salaries and allowances, the company has not kept vouchers or receipts for more than 60 per cent of its expenses.

Jack Holdings, Inc. Jack Holdings is a major construction company. Jack Holdings also purchases large vacant blocks of land that it later subdivides for the construction of houses and units to compensate for the irregularity of its contracted building projects. These are then sold on its own account. Your evidence strongly shows that the apportionment of costs to houses and units sold has been kept low in order to boost profits. In your opinion, this has resulted in the overvaluation of the unsold properties. The directors of the company do not agree and maintain that the stock of properties is correctly valued.

Vacation Dreamland Ltd. Vacation Dreamland booked a major German group to perform in selected cities in the U.S.A. The contract required that Vacation Dreamland should pay the group in US dollars but, to reduce costs, it did not hedge the amounts. Subsequent to year end, the German Mark fell against the US dollar and a substantial loss relating to the group’s tour was expected. The management of Vacation Dreamland tried unsuccessfully to renegotiate the band’s contract and was not able to obtain finance to cover the expected shortfall. Vacation Dreamland cancelled the tour and expects a substantial claim from the German group. Your analysis indicate that Vacation Dreamland does not have the income, cash or other assets to sustain such a loss.

Required:

Assuming that all amounts involved are material, identify:

The most likely auditor’s opinion that you would issue on each financial report for the year ending December 31, 2018 and

Discuss the justifications for each of the opinions.

1. Draw an exposure diagram to illustrate a firm’s exposure to interest rate risk if the firm is going to borrow $10m six months from today. Assume the loan will be a one-year loan with all interest paid at the end of the year. Graph the relation between the firms interest costs and interest rates. Also graph the relation between the firm’s profit and interest rates (assuming that higher interest costs cannot be passed on the consumers).

2.Draw an exposure diagram to illustrate the relationship between a firm’s costs and the exchange rate between US dollar and Euro dollar if the fir plans to purchase goods from an European firm one year from today. Assume that the transaction is denominated in Euro dollar, but that the firm is concerned about its costs in US dollars. Also draw an exposure diagram to illustrate the relationship between a firm’s profit and the exchange rate between US dollar and Euro dollar.

3. Draw an exposure diagram to illustrate the relationship between a gold mining firm’s profit and the price of gold in three months.

4. Would a call option or a put option hedge the exposure of the firms described in problem 1,2 and 3?

5. Would a long (buy) or a short (sell) forward position hedge the exposure of the firms described in problem 1,2 and 3?