Financial Accounting questions and answers in April 2021

An investment that Kevin is considering offers the following cash flows. Year 1  Initial investment of $150,000 Year 2  Inflow of $55,300 Year 3  Inflow of $27,500 Year 4  Additional investmen...
Part 3 of 3 Part C The balance sheet of Sublime Company for 2 years is presented below, along with certain other information for 2018. All amounts are in $. [30 points] As at 12/31/2017 12/31/2018 Cas...
Part 1 of 3. *Note: This is a 3-part question - information is the same for all 3 parts Part A The balance sheet of Sublime Company for 2 years is presented below, along with certain other information...
No commas in answer.. The following information pertains to Anthara Inc. which uses LIFO to compute the value of inventories. Note: El stands for "ending inventory." Inventory values compute...
Grumpy Inc. had, at the beginning of the year, a balance in the allowance for uncollectible accounts of $1,200. The aging schedule at the end of the year showed that of the total Accounts receivable ...
Thomas Green is using net present value (NPV) when evaluating investment opportunities. His required rate of return is 9.39 percent. The investment will produce the same after-tax cash inflows of $38...
Your client is using the modified internal rate of return (MIRR) when evaluating investment opportunities. He makes a lump sum investment at the beginning of year one of $50,000. Your client is able t...
Assume an individual makes a lump sum investment at the beginning of year one of $14,888, the present value of which is $14,888. The investor's discount rate, for an alternative safe investment, is 11...
In a college project, a group of students has identified a four-year long project. They have requested you to evaluate the project with 17% required rate of return. The cost of the project would be $1...
1. On January 1, 2021 the Emming Corporation purchased some machinery. The machinery has an estimated life of 10 years and an estimated residual value of P5, 000. The depreciation on this machinery wa...
1. The Fairy Company purchased a site for limestone quarry for P 100,000 on January 2, 2020. It estimates that the quarry will yield 400,000 tons of limestone. It estimates that its retirement obligat...
For tax years after 2017, which of the following exchanges would qualify or 1031 like-kind exchange treatment? Question options: A business taxpayer exchanges land with a motel for land with a retail ...
Problem 1 Palmer Frosted Flakes Company offers its customers a pottery cereal bowl if they send in 3 boxtops from Palmer Frosted Flakes boxes and P1.00. The company estimates that 60% of the boxtops w...
The auditor's independence has two forms: independence of mind and independence in appearance.   (i) Is one more important than another? Explain your answer.    (ii) Should the auditor provide an...
 Glow Ltd your audit client, during its financial year lost two key personnel, was involved in legal disputes, and had substantial fall in revenue and cash flows. It is concluded that Glow is not a g...
A credit union entered a lease contract valued at $7800. The contract provides for payments at the end of each quarter for 2 years. If interest is 6.6% compounded quarterly​, what is the size of the...
With respect to​ zero-rated supplies, the​ ________.   Question 46 options: GST and PST rate are both zero HST rate is​ zero, but the GST rate applies GST and HST rate are both zero GST rate...
Baltimore Manufacturing had a Work in Process balance of $64,000 on January 1, 2020. The year end balance of Work in Process was $62,000 and the Cost of Goods Manufactured was $750,000. Use this infor...
During FY 2021, Belleview Company plans to sell Widgets for $6.00 a unit. Current variable costs are $4.00 a unit and fixed costs are expected to total $130,000. Use this information to determine the...
Hello, I need help on this following question ASAP! I really appreciate it! Thank you! There are many factors that support the increased use of transaction taxes, such as GST and HST. Which of the fol...
Financial Option 3: $30 Million Investment in Bonds Rationale for investment: The business that's offering these bonds for sale contracts with another business in China to assemble computer components...
William North has just inherited $1,317,000 which he would like to use as part of his retirement nest egg. He invested the funds at a 5.37 percent annual rate compounded annually. William will reach a...
ennifer is single with no dependants. During the year she had the following amounts deducted from her salary: CPP             $2,898 EI                 856 Federal Income...
Mr. Morra commenced employment with Peoples Bank Ltd., a public corporation, on January 1, 2018. On December 31, 2018, he was granted options to purchase 500 shares of Peoples Bank Ltd. stock for $15 ...
19 Marshall Company has 100,000 shares of common stock outstanding. On April 15, the board declared a $.40 dividend to be paid to stockholders of record on May 4. The dividend was distributed on May 1...
The contract interest rate for bonds ___________. Question 16 options: a)  must equal the effective interest rate b)  will fluctuate over the life of the bond c)  has no relation to the cash flow a...
Jonas Company had no beginning inventory and adds all materials at the very beginning of its only process. Assume 30,000 units were started, and 15,000 units completed. Ending work in process is 50% c...
What if your friend Anne is planning to invest $400 each year for four years and will earn a rate of 6 percent per year. a. determine the future value of the annuity due if her first $400 is invest no...
A share is expected to give a $2 dividend next year (D1). The required rate of return is 20 percent and the stock is selling for $20. Assuming a constant rate, find the growth rate of dividend. 5% 10%...
The monthly demand (in thousands) for a particular magazine at a newsagent is listed below along with corresponding probabilities. Demand (X) P(X) 1 0.2 2 0.3 3 0.4 4 0.1   Show workings for each of ...
Choose the option to correctly complete the sentence. The following table reports information from Stephen's Suitcases tax return and income statement for two years in a row. The tax rate is 30%. TAX ...
Choose the option to correctly complete the sentence. Assume that Melissa's Magic Markers signs an operating lease for a new retail location. The lease term is 5 years and the cost is $2,500  per mon...
Choose the option to correctly complete the sentence. Ruthie's Radios spent $50,000 in cash in 2019 developing a new type of radio knob. The wages allocated to this project were $20,000 and the raw ma...
Which statements are correct? Characteristics of employee stock options include the following: I. They motivate managers to make decisions that are aligned with company interests. II. They are not for...
Choose the option that correctly completes the sentence. Assume that a customer of Ruthie's Radios has the option to pay her invoice early. If she pays early, she will receive a 3% discount. The initi...
If the yield to maturity decreased 2 percentage point, which of the following bonds would have the smallest percentage change in value? A 1-year bond with an 8 percent coupon. A 1-year zero-coupon bon...
You hold a diversified portfolio consisting of a $10,000 investment in each of 10 different common stocks. The portfolio beta is equal to 2. You have decided to sell one of your stocks, a lead minin...
A firm has the following balance sheet: Assets $400 mn Liabilities $200 mn Equity $200 mn It has 20 million shares outstanding. If the average MB multiplier of three of its nearest competitors is 1.5,...
 Janice just graduated from Concordia and started a full-time job. She sat down with Human Resources and was explained the various benefits in the company. She was very excited to hear that she was e...
  In April 2020, Philip purchased 1,000 shares at $20/share in Crazy Inc. In April 2021, as Philip needed money for his tuition, he decided to sell his shares as they hit $25/share. During this one ...
Exhibit 2 Question 2 : Can you comment what you need i already sent everything regarding the question. File Home Insert Design Layout References Mailings Review View Help Foxit PDF Share Comments &amp...
a) Clearly differentiate, by way of example, the CFA Standard 1 (C) breach of 'Misrepresentation' from that of CFA Standard 1 (D) 'Misconduct'. (This part of the question has been allocated 4 marks) b...
A $100,000 mortgage at 4.9% compounded semiannually with a 30-year amortization requires monthly payments. The mortgage allows the borrower to increase the regular payment by up to 10% once each year....
The price of a stock is $55. A put option written on this stock with a strike price of $48.8 is quoted at $7.2. One option contracts covers 100 underlying shares. A trader enters a short position in...
There is a receivable in Mexican pesos of 40 million. Presuppose the Spot rate now, spot rate in one year and forward rate now are 20, 24 and 22 MXN/$, respectively. The premium for calls of an exerci...
Asset Impairment On January 1, 2015, Vallahara Company purchased machinery for $650,000, which it installed in a rented factory. It is depreciating the machinery over 12 years by the straight-line met...
Financial statement data for the years 20Y5 and 20Y6 for Black Bull Inc. follow:   20Y520Y6 Net income$1,554,000 $2,465,000 Preferred dividends$50,000 $50,000 Average number of common shares outs...
Wang and Partners has finished its external audit of Basia Mining Company. Basia has been in operation for only 2 years and trades in minerals. The auditors have one area of concern. Correspondence in...