Prepare a balance sheet for 2021 and 2022 for the company, clearly showing information about each line item. (5 marks) Prepare an income statement for 2021 and 2022 for the company. (5 marks)
Q: sabel Lopez, from Lewiston, Idaho, is age 19, and she recently received an inheritance of $50,000…
A: Here we will use formula of future value of money to calculate amount after 10 years : FV = PV × 1…
Q: ill receive $9486 at the end of Year 2. At the end of the following two years, he will receive $7971…
A: Future value of the amount include the amount that is being deposited and amount of interest…
Q: Why does the SEC require a statement of stockholders' equity to be included in a company's annual…
A: Financial statements are the ways a company represent itself to the outside world. Statement of…
Q: Your car dealer is willing to lease you a new car for $180 a month for 36 months. Payments are due…
A: We will use the concept of time value of money to solve this question. The monthly payments of…
Q: Deductible: $2000.00 Event 1 Description Tree damage Foundation repairs Repair cost $2,500.00…
A: Insurance claim A formal request for compensation for damages covered by your insurance policy is…
Q: You borrow $149,000 to buy a house. The mortgage rate is 7.5% and the loan period is 30 years.…
A: Mortgage refers to the amount borrowed to finance real estate. The mortgage requires the borrower to…
Q: What are the four categories of collateral value for secured loans?How does each affect credit risk?
A: Real property (e.g., land, buildings) Tangible personal property (e.g., equipment, vehicles)…
Q: A company’s preferred shares pays a constant dividend of $2 per year. Calculate the value now of a…
A: Data given: Dividend (D)=$2 per year Required return (r)=10% Required: Price (P0)=?
Q: Suppose that you opened a margin account (margin requirement = 60%) with your brokerage firm.…
A: STEP 1 The gain or loss of an investment over a given time period, represented as a percentage of…
Q: Iskandar earned RM500,000 a year from his estate agency for 30 years with interest rate 9% and…
A: As per the given information: Amount earned = RM500,000 a yearInterest rate = 9%Annual sinking fund…
Q: Calculate the time period of an investment in a mutual fund that matured to $68,282.52 yielding…
A:
Q: Sandra takes out a $ 22000 loan to be paid back in monthly payments of P over the next five years.…
A: Monthly payments refer to the amount that is paid to the lender by the borrower for the repayments…
Q: Smith and T Co. is expected to generate a free cash flow (FCF) of $7,810.00 million this year (FCF₁…
A: Intrinsic value Based on the cash flows from an investment, intrinsic value calculates its worth. In…
Q: Bill makes deposits of 2,700 at the end of each year for n years into a fund. At time n, he uses the…
A: The concept of money's time worth reveals that any sum of money is worth more than its worth in the…
Q: what sum of money due on july 1 2020 is equivalent to 24000 due january 1 2011 if j2=7% for 2011,…
A:
Q: lender engages in a 15-day $1,000,000 reverse repo at a rate of 2.50%. The haircut is 2%. The…
A: In a reverse repo, the borrower will have to will give the collateral to lender and the lender will…
Q: invest their funds in new businesses and help the management team get the firm to the point at which…
A: Venture capitalists give funding for start-up and expanding businesses. They accomplish this with…
Q: A. B. Question 2 Given the order book for ABC Limited, Orders to buy Price 2.00 1.95 1.90 Quantity…
A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts…
Q: A debt of 8400 is due at the end of 5years. it is proposed that $X be paid now with another $X be…
A: Debt refers to the amount that is taken by the borrower from the lender at some specified rate of…
Q: Today, is January 4, 2016. IBM common stock is selling at $135.95 per share. The stock has a…
A: Delta and gamma hedging are strategies used in portfolio management to reduce the risk associated…
Q: The ordinary shares of Park Plc are currently trading at 80p. The last dividend per share was 15p…
A: Here, Current Price of the Stock is 80p Last Dividend Paid is 15p Growth Rate from last 10 years is…
Q: Klingon Widgets, Incorporated, purchased new cloaking machinery three years ago for $4.0 million.…
A: Book value of assets of the company The equity value of a corporation as stated in its financial…
Q: 2.2 Elaborate on: - 2.2.1 how, by analysing a firm’s financial statements, risks can be identified?…
A: Risk identification The process of risk identification involves assessing an organization's…
Q: You just won the grand prize in a national writing contest! As your prize, you will receive $510 a…
A: Present value The amount of money that has to be invested in order to accomplish a particular…
Q: Which cell or column is used for the covariance?
A: Here, Probability Stock Fund Rate of Return A B 0.1 -34% 0.2 -20% 0.3 21% 0.4 36%…
Q: Consider a project to supply Detroit with 23,000 tons of machine screws annually for automobile…
A: The process that analyzes and evaluates an investment's feasibility is regarded as capital…
Q: Use the stock table below to find the year-to-date percentage change Idno Tech (ITX). VOL NET PE…
A: The year-to-date percentage change is a measure of the total yield generated from the start to the…
Q: An engineer wished to purchase an $80,000 home by making a down payment of $20,000 and borrowing the…
A: Monthly Installment - It includes a portion of principle payment along with Interest. Monthly…
Q: Question 1 Alfred Yeo is an importer of European Cars into Singapore. He has recently entered a…
A: The current exchange rate between two currencies on the foreign exchange is known as a spot rate. It…
Q: On April 5, 2022, Janeen Camoct took out an 8.75% loan for $25,000. The loan is due March 9, 2023.…
A: We need to calculate simple interest under two different conventions. Ordinary interest is…
Q: Briefly discuss dividend relevance and dividend irrelevance. Theory M&M = arguments
A: STEP 1 The impact of dividends on a company's value is the subject of dividend theories. One type of…
Q: You are in the process of purchasing a new car that will cost you $25,000. The dealership is…
A: Loan: It represents the amount borrower from the lender by the borrower. The principal amount of…
Q: Your bank is offering you an account that will pay 20% interest (an effective two-year rate) in…
A: STEP 1 In a discounted cash flow analysis, the discount rate is the interest rate that is used to…
Q: A company has just paid an annual dividend of $2 and announces that it will grow by 3% indefinitely.…
A:
Q: Q1-1 Prepare a Balance Sheet Prepare a balance sheet for the NMB company as of December 2020, based…
A: A balance sheet and an income statement are both important financial statements that provide…
Q: (a) What is the market value and duration of the coupon bond investment in this portfolio? (b) What…
A: DEAR, which stands for Dollar Economic Capital at Risk, is a measure of the potential loss in a…
Q: You would like to provide $145,000 a year forever for your heirs. How much money must you deposit…
A: The perpetuity is a stream of cash flow which will be continuing forever and it will pay a certain…
Q: You are considering an investment in Roxie's Bed & Breakfast Corp. During the last year, the firm's…
A: Hi student Since there are multiple subparts, we will answer only first three subparts. Book value…
Q: The current stock price of Pharma Inc is $20. The firm is expected to announce the successful trials…
A: An increase in stock price is expected. Upper cap is known. We need to devise an optimal option…
Q: You invest $10,000 in a 270-day CD at a rate of 6%, compounded daily. What is the amount you…
A: STEP 1 A CD contains an early withdrawal penalty that, depending on the bank and the CD term length,…
Q: A project has an initial cost of $75,000, expected net cash inflows of $15,000 per year for 8 years,…
A: The profitability index is a measure of the attractiveness of a project by finding the ratio of the…
Q: For how long Kirk have to make payments of $290 at the end of every year to repay loan of $2530 if…
A: A loan is a contract between two parties where an amount is forwarded on the promise of repayment…
Q: The process for converting present values into future values is called four time-value-of-money…
A: Time Value of money The time value of money is the concept that money available at the present time…
Q: A $2000 bill with a $25 coupon in the US is currently selling at $1800, and a 4000 Swedish Krona…
A: The uncovered interest rate parity refers to the relationship between the relative change in the…
Q: Determine the price of Lamborghini Veneno 2022 in both USD and TRY.
A: The formula to determine the price of the Lamborghini Veneno in USD we need to use the formula…
Q: Statue Builders, Inc. took out a loan for $251375 that has to be repaid in 8 equal annual…
A: annual payment which means annual compounded formula applied, borrower make the equal annual payment…
Q: Define beta. How is it calculated? How can it be used by investors?
A: The risks refer to the potential loss that a company can face because of the unpredictability of the…
Q: A corporation whose managers are separate from its owners will face zero agency costs when it uses…
A: Stock options are the type of employee compensation that gives the recipient the right to buy a…
Q: Assume that you are at Year O and are looking at two possible investments, both of which have a…
A: Annuity An annuity is a contract that you have with an insurance provider that calls for regular…
Q: A five-year project has an initial fixed asset investment of $355,000, an initial NWC investment of…
A: The equivalent annual cost of any investment indicates the regular fixed cost of any investment. It…
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
- You work as a freelance accounting professional and have beenrecently engaged by the auditors of Life-Positive Inc. for anassignment. In examining the company’s records, you have extractedthe following information: Life-Positive’s Account Balances 2021 ($) 2022 ($) accounts payable 24,600.00 21,250.00Accounts receivable 15,700.00 12,340.00Cash 23,450.00 28,600.00Cost of goods sold 19,700.00 23,000.00Depreciation 3,090.00 4,590.00Dividends 5,800.00 10,800.00Interest 2,340.00 2,890.00Inventory 7,050.00 8,640.00Long-term debt 28,000.00 30,000.00Net fixed assets 41,500.00 48,000.00Other expenses 2,400.00 2,800.00Sales 58,000.00…You are engaged in the audit of Kaya Co., a new client, on December 31,2018. You review the following accounts in the general ledger: Accounts Receivable Beg.Bal., P200,000 Sales 4,000,000 Total P4,200,000 Loan Receivable Loan granted to a customer, 1/1/2018 P3,600,000 P4,000,000 400,000 Total P4,000,000 P4,000,000 Unearned Interest Income orig. Fees Direct P11,520 Balance 288,480 Total P300,000 in 1/1/2018 P2,596,000 1,484,000 120,000 Accounts receivable Retained earnings b. Sales discount 2018 Loan receivable b. Loan receivable paid end uncollectible P4,200,000 Unearned interest income a. P2,720,000 b. P2,750,000 P300,000 Additional information: A. The beginning balance of the accounts receivable on January 1,2018 was net of the allowance for doubtful accounts in 2017 amounting to P20,000. One of the credits in the accounts receivable was made as a result of cash collections. When receivables were collected, the bookkeeper credited accounts receivable for the cash collected.…In line with your audit with DAVE, Inc. financial statements, the company accountantpresented to you the balance sheet that follows. You reviewed the client’s accountingrecords and books based thereon. You discovered that books of accounts are inagreement in the said balance sheet as presented below: DAVE, INC.STATEMENT OF FINANCIAL POSITIONDecember 31, 2021 ASSETS LIABILITIES AND OWNERS EQUITYCash P 80,000 Accounts Payable P 32,000Accounts Receivable 160,000 Notes Payable 64,000Notes Receivable 48,000 Capital Stock 160,000Inventories 400,000 Retained Earnings 432,000Total P 688,000 Total P 688,000 Further review and investigation of the company’s books revealed the followingomissions and errors which were not corrected during the year of errors: 2018 2019…
- You auditing Adel Corp's various liability accounts. The following schedule of liabilities was presented to you by the company's accountant in relation to your audit Accounts payable P460,000 Accrued expenses 29,400 Warranties payable 153,250 Salaries payable 268,500 10%, Note payable - bank 2,000,000 Audit Notes: Continuation in the pictures What is the correct balance of the accrued expenses account?In connection with your examination of the financial statements of Bukel Inc. for the year ended December 31, 2021, you were able to obtain certain information during your audit of the accounts receivable and related accounts The December 31, 2021 balance of Accounts Receivable control accounts is P 788,000 The only entries in the Doubtful Accounts Expense were : A credit for P1,296 on December 2, 2021 because Company A remitted in full for the accounts charged off on October 31, 2021; and A debit on December 31 for the amount of the credit to Allowance for Doubtful Accounts The Allowance for Doubtful Accounts schedule is presented below: DEBIT CREDIT BALANCE January 1, 2021 P 14,632 October 31, 2021 Uncollectible Accounts Company A – P 1,296 Company B – P 3,280 Company C – P 2,256 P 6,032 8,600 December 31, 2021 P…Consider the annual report of commonwealth bank or any company (most companies make their annual reports available on the company's website) and find the disclosures explaining the amounts paid to auditors. How much was the auditor paid for the audit, non-assurance, or other services?
- You auditing Adel Corp's various liability accounts. The following schedule of liabilities was presented to you by the company's accountant in relation to your audit Accounts payable P460,000 Accrued expenses 29,400 Warranties payable 153,250 Salaries payable 268,500 10%, Note payable - bank 2,000,000 AuditNotes : Continuation in the pictures * What is the correct balance of the salaries payable in the form of liability for compensated absences as of December 31, 2018?Minnie has asked you to review the methods Min Armin Wastege uses when dealing with Accounts Receivable. Minnie has compiled the following information for the past 2 months andwants you to update her records on August 31, 2020.On June 30, 2020 the Account Receivable balance for Min Armin Wastege was $13,585 Dr withan Allowance for Doubtful Debts of $462 Cr. In the last two monthsSales (net of GST)S4 800Sales Returns & Allowances (net of GST) 400Cash Collected3 550Bad Debts to be written off (Including GST) 660The bad debts listed above have not been written off as yet. Minnie has also calculated based on past experience that 7% of net credit sales go bad. All sales are made on credit. REQUIRED:Prepare the following General Journal entries to1. account for the write off of the bad debt during the past two months2. the adjusting entry on August 31 using the information Minnie has provided. b. Update the Accounts Receivable and Allowance for doubtful debts accounts.You are the senior in charge of the audit of the accounts of the Domino Industries, Inc. You and your staff have just completed the field work relative to the December 31, 2020 audit. The adjusted trial balance and certain additional information related thereto appearing in your working papers are as follows: Cash 240,000 Marketable Securities 95,000 Investment in Affiliated Companies 350,000 Accounts Receivable (including P120,000 due after one year) 680,000 Subscription Receivable 20,000 Inventories - Finished Goods 620,000 - Goods in Process 155,000 - Raw Materials 470,000 Treasury Stock (cost of 100 shares) 11,000 Construction in Progress 220,000 Land 460,000 Buildings, Machinery and Equipment 4,350,000 Cash Surrender Value of Life Insurance 60,000 Prepaid Expenses 50,000 Pre-operating Expenses 120,000 Unamortized…
- In connection with your examination of the financial statements of Ringo, Inc. for the year ended December 31, 2020, you were able to obtain certain information during your audit of the accounts receivable and related accounts. The December 31, 2020 balance in the Accounts Receivable control account is P837,900.An aging schedule of the accounts receivable as of December 31, 2020 is presented below: Age Net Debit Balance Percentage to be applied after corrections have been made 60 days & under P387,800 1 percent 61 to 90 days 307,100 2 percent 91 to 120 days 89,800 5 percent Over 120 days 53,200 Definitely uncollectible, P9,000; the remainder is estimated to be 25% uncollectible. P837,900 The Allowance for Doubtful Accounts schedule is presented below: Debit Credit Balance January 1, 2020…In connection with your examination of the financial statements of Ringo, Inc. for the year ended December 31, 2020, you were able to obtain certain information during your audit of the accounts receivable and related accounts. The December 31, 2020 balance in the Accounts Receivable control account is P837,900.An aging schedule of the accounts receivable as of December 31, 2020 is presented below: Age Net Debit Balance Percentage to be applied after corrections have been made 60 days & under P387,800 1 percent 61 to 90 days 307,100 2 percent 91 to 120 days 89,800 5 percent Over 120 days 53,200 Definitely uncollectible, P9,000; the remainder is estimated to be 25% uncollectible. P837,900 The Allowance for Doubtful Accounts schedule is presented below: Debit Credit Balance January 1,…The following accounts were included in the unadjusted trial balance of Editah Company as of December 31, 2019:Cash 963,200Accounts receivable 2,254,000Inventory 6,050,000Accounts payable 4,201,000Accrued expenses 431,000 During your audit, you noted that Editah Company held its cash books open after year-end. In addition, your audit revealed the following:1. Receipts for January 2020 of P654,600 were recorded in the December 2019 cash receipts book. The receipts of P360,100 represent cash sales, and P294,500 represent collections from customers, net of 5% cash discounts.2. Accounts payable of P372,400 was paid in January 2020. The payments, on which discounts of P12,400 were taken, were included in the December 2019 check register.3. Merchandise inventory is valued at P6,050,000 before any adjustments. The following information has been found relating to certain inventory transactions:a. The invoice for goods costing P175,000 was received and recorded as a purchase on December 31,…