Use The Following Information For The Exercises Below. [The Following Information Applies To The

Use the following information for the Exercises below. [The following information applies to the questions displayed below.] Turner, Roth, and Lowe are partners who share income and loss in a 1:4:5 ratio (in percents: Turner, 10%; Roth, 40%; and Lowe, 50%). The partners decide to liquidate the partnership. Immediately before liquidation, the partnership balance sheet shows total assets, $140,400; total liabilities, $90,000; Turner, Capital, $3,700; Roth, Capital, $14,600; and Lowe, Capital, $32,100. Cash received from selling the assets was sufficient to repay all but $34,000 to the creditors. a. Calculate the loss from selling the assets. Calculate the loss from selling the assets. ( I filled in these answers not sure if they are correct) Liabilities before liquidation $90,000 Proceeds from sale of assets (paid to creditors) 56,000 Remaining liabilities $34,000 Proceeds from sale of assets $56,000 Book value of assets sold 140,400 Loss on sale of assets $(84,400) b. Allocate the loss from part a to the partners. Required B Required C Allocate the loss from part a to the partners. (Losses and deficits should be indicated with a minus sign.) ( I filled in these answers not sure they are correct) Turner Roth Lowe Total Initial capital balances $3,700 $14,600 $32,100 $50,400 Allocation of gains (losses) 1/10 (8,440) 4/10 (33,760) 5/10 (42,200) (84,400) Capital balances after gains (losses) $(4,740) $(8,040) $(23,900) $(34,000) c. Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency. remaining capital deficiency. Required C Determine how much each partner should contribute to the partnership to cover any remaining capital deficiency. Turner Roth Lowe Total Amount to be contributed to the partnership: $0

Brief Exercise 128 Snyder Industries Had One Patent Recorded On Its Books As Of

Brief Exercise 128 Snyder Industries had one patent recorded on its books as of January 1, 2018. This patent had a carrying amount of $252,000 and a remaining useful life of 7 years. During 2018, Snyder brought a patent infringement suit against a competitor. On October 1, 2018, Snyder received the good news that its patent was valid and that its competitor could not use the process Snyder had patented. The company incurred $90,000 to define this carrying amount of the patent. Compute the carrying amount of the patent that would be reported on the December 31, 2018, balance sheet, assuming monthly amortization of carrying value of the patents. Patent $   

‘Profitable Companies Always Have Sufficient Cash, So The More Profitable A Company Is, The

‘Profitable companies always have sufficient cash, so the more profitable a company is, the less important it is to manage cash flows carefully’. Why is this usually but not always true?

Exercise 23-4 The Income Statement Of Cullumber Company Is Shown Below. CULLUMBER COMPANY INCOME

Exercise 23-4 The income statement of Cullumber Company is shown below. CULLUMBER COMPANY INCOME STATEMENT FOR THE YEAR ENDED DECEMBER 31, 2017 Sales revenue $6,850,000 Cost of goods sold Beginning inventory $1,880,000 Purchases 4,410,000 Goods available for sale 6,290,000 Ending inventory 1,610,000 Cost of goods sold 4,680,000 Gross profit 2,170,000 Operating expenses Selling expenses 450,000 Administrative expenses 710,000 1,160,000 Net income $1,010,000 Additional information: 1. Accounts receivable decreased $380,000 during the year. 2. Prepaid expenses increased $150,000 during the year. 3. Accounts payable to suppliers of merchandise decreased $260,000 during the year. 4. Accrued expenses payable decreased $110,000 during the year. 5. Administrative expenses include depreciation expense of $50,000. Prepare the operating activities section of the statement of cash flows using the direct method.

Question 2 [26] Bio Laboratories (Pty) Ltd Is Considering Purchasing One Of Two Electron

Question 2 [26] Bio Laboratories (Pty) Ltd is considering purchasing one of two electron microscopes for its biochemistry laboratory. Both microscopes require an investment of R2 500 000, excluding installation costs which amounts to an additional R500 000. The marketing and finance teams have prepared the following expected returns analysis associated with possible business scenarios: Electra microscope Biofocus microscope Rate of return Probability Rate of return Probability 20% 0.25 15% 20.00% 25% 0.50 25% 55.00% 30% 0.25 35% 25.00% Required Show all calculations and round off to two decimals. 2.1. Use the information provided to calculate the expected returns and standard deviations for the two microscopes. (18) 2.2. Calculate the coefficient of variation for the two microscopes. (4) 2.3. Explain to Bio Laboratories’ management which investment is the riskiest and give reasons for your answer.

Exercise 23-6 Wildhorse Company’s Income Statement For The Year Ended December 31, 2017, Contained

Exercise 23-6 Wildhorse Company’s income statement for the year ended December 31, 2017, contained the following condensed information. Service revenue $848,000 Operating expenses (excluding depreciation) $618,000 Depreciation expense 59,000 Loss on sale of equipment 25,000 702,000 Income before income taxes 146,000 Income tax expense 40,000 Net income $106,000 Wildhorse’s balance sheet contained the following comparative data at December 31. 2017 2016 Accounts receivable $39,000 $57,000 Accounts payable 39,000 32,000 Income taxes payable 4,200 8,900 (Accounts payable pertains to operating expenses.)

Problem 24-3 Headland Corporation Was Formed 5 Years Ago Through A Public Subscription Of

Problem 24-3 Headland Corporation was formed 5 years ago through a public subscription of common stock. Daniel Brown, who owns 15% of the common stock, was one of the organizers of Headland and is its current president. The company has been successful, but it currently is experiencing a shortage of funds. On June 10, 2018, Daniel Brown approached the Topeka National Bank, asking for a 24-month extension on two $34,970 notes, which are due on June 30, 2018, and September 30, 2018. Another note of $5,970 is due on March 31, 2019, but he expects no difficulty in paying this note on its due date. Brown explained that Headland’s cash flow problems are due primarily to the company’s desire to finance a $300,080 plant expansion over the next 2 fiscal years through internally generated funds. The commercial loan officer of Topeka National Bank requested the following financial reports for the last 2 fiscal years. HEADLAND CORPORATION BALANCE SHEET MARCH 31 Assets 2018 2017 Cash $18,120 $12,410 Notes receivable 147,220 132,930 Accounts receivable (net) 130,790 124,530 Inventories (at cost) 104,940 49,570 Plant

In The Preparation Of Consolidated Financial Statements, Why Are Adjustments Required To The Subsidiaries

In the preparation of consolidated financial statements, why are adjustments required to the subsidiaries assets and liabilities if the carrying amounts are not equal to fair value? Using the following example, demonstrate the adjustment required when the subsidiary has a contingent liability for damages disclosed, for which the fair value is determined to be $10,000. Explain in detail the journal entry, line by line. Then show how this would be posted in the consolidation worksheet, highlighting the effect to the group’s financial statements.

1.2. Jerry Ncube Received A Performance Bonus Of R8 000 From His Employer. Jerry

1.2. Jerry Ncube received a performance bonus of R8 000 from his employer. Jerry is considering investing this money by purchasing ordinary shares in Delco Ltd, a company that develops and provides customer relations management systems (CRMS). Jerry spoke to an investment consultant about his intended investment and the consultant provided him with the following information relating to Delco: Delco’s most recent (2019) payment was R3.50 per share. According to the published shareholder’s report, future dividends are expected to grow at 15% per year for the next 3 years (2020–2022) owing to the fact that more organisations are purchasing CRMS. In 2023, the company expects its sales to slow down because most organisations will have implemented CRMS at that stage. Dividend growth from 2023 onwards is projected to be a constant 8% per year, indefinitely. Jerry does not want to pay more than R50.00 per share for Delco shares and his required return is 18%. Jerry requested your assistance to help him make the investment decision. Required Show all calculations. Calculate the 2019 ordinary share price per share using the appropriate share valuation model and then make your recommendation to Jerry. (26)

Please Answer The 10 Questions Below According To The Miller Corporation Miller Corporation ‐

Please answer the 10 questions below according to the Miller Corporation Miller Corporation ‐ Year 20X3 During the year, you paid the amounts owed for Motorcycles at the end of year 20X2 and collected all the amounts owed by customers for 20X2. You purchased 25 more Motorcycles for $6,000 each and at the same terms as in 20X2. During the year, you sold 22 Motorcycles for $11,000 each at the same terms as 20X2. You paid the money owed to suppliers (Accounts Payable) at the beginning of the year and collected all money due you at the beginning of the year (Accounts Receivable). You use the FIFO inventory system. On January 1, 20X3, you purchased furniture and fixtures for $55,000. You put $15,000 down and financed the remaining amount at 10%. You will make annual payments on December 31st for four years that include the interest accrued to date plus $10,000 on the principal each year. You estimate that you will use them for 10 years and then they will be worth $5,000. On June 30th, you paid $3,600 for a two‐year insurance policy; office expenses of $12,000; $4,500 for advertising in The Post; utilities of $6,000; and Supplies of $1,500. You also paid $26,000 for 13 months of rent. You paid your worker $18,000 (includes amount owed from prior year) and owed her $2,000 more at the end of the year. On December 31st, you paid the first payment on the furniture and fixtures loan. Paid Uncle Mike his interest and paid the principal balance owed on December 31st. This year you declared and paid a dividend of $4,000 to your shareholders. On October 1st you issued 30 shares of common stock for $3,000. You paid the 20X2 taxes. The 20X3 taxes will be paid in 20X4. The tax rate is 21%. Prepare the Journal Entries (including the closing entry), T‐accounts, and all four Financial Statements (in good form). Miller Corporation ‐ Year 20X4 During the year, you bought 31 more Motorcycles for $6,500 each and sold 29 for $12,000 each, same terms as last year. You paid the money owed to suppliers (Accounts Payable) at the beginning of the year and collected all money due you at the beginning of the year (Accounts Receivable). On January 1st, you purchased a delivery truck for $41,000. You made a down payment of $10,000 and financed the balance at 7%. You will make four equal payments that include interest @ 7%. You make the first payment on December 31st of this year. You estimate the truck will last about 6 years and then be worth $5,000. You paid your worker $17,000 (includes amount owed from prior year) and owed her $2,000 more at One part of financial analysis is analyzing the same company over many years using a trend analysis. Using the information you prepared for Assignment #3 (the Accounting Cycle Problem) for Miller Corp., answer the following questions: Below is the answer of assignment 3: Miller Corporation has shown good financial performance year on year basis. In third year of operations, the company has generated net income $28,835 and gross profit is $114,000. The revenue of the company is $242,000 during third year of operations. The gross profit margin of the company is 47.10% and net profit margin is 11.92%. The revenue of the company is growing year on year basis, but the net profit margin and gross margin have slightly reduced in third year. The company should try to improve its gross profit margin and net profit margin to grow at speedy rate. The company has generated $40,656 from operations which has been utilized for investing and financing activities. The net changes in cash flows have slightly reduced which shows that the company has utilized its cash balance $10,944 to pay finance obligations during the third year of operations. The total assets of the company are $345,732 as on year 20X3 and the assets partly financed from liability and equity i.e. $152,165 from liability and $193,567 from equity. It shows that the majority assets are financed from equity and the company has reduced its debt obligations during the year. During fourth year of operations, the revenue, gross profit and net profit of the company are $348,000, $162,000 and $56,114 respectively. The gross margin of the company is 46.55% and net profit margin is 16.12%. The gross margin I fourth year is equivalent to third year of operations and the net profit margin o the company has increase in comparison to third operations and the net profit margin of the company has increased in comparison to third year. It shows that the company has improved its profitability and has utilized its resources more effectively and efficiently. The company has generated $64,060 from operations and the amount has been utilized for investing activities. Further the total asset base of the company has also increased, and the financial position and financial performance of the company has improved year on year basis which is a healthy indicator for the company. 1. How is Miller’s liquidity trending from one year to the next? 2. How is Miller’s solvency trending from one year to the next? 3. How has Miller’s asset base changed over time? Will this allow the company to meet consumer demand for their product? Why or why not? 4. Miller’s current assets have increased over time. What is the major reason for this increase? Is this a problem? Why or why not? 5. How has Miller’s total liabilities changed over time? 6. How has Miller’s current liabilities changed over time? How will the company be able to pay them when they are due? 7. Is there consistent growth in revenue? If not, is this a problem? 8. Has Cost of Goods Sold remained a consistent percentage of Revenue? If not, is this a problem? 9. Is net income a consistent percentage of Revenue? If not, is this a problem? 10. If notes payable increased in 20X4, why did interest expense decrease?

1. At December 21, 2016, The Client Had A Receivable Of $820,000 From Hendricks,

1. At December 21, 2016, the client had a receivable of $820,000 from Hendricks, Inc on its balance sheet. Hendricks Inc. has gone bankrupt, and no recovery is expected. The client proposes to write off the receivable as a prior period item. 2. The client proposes the following changes in depreciation policies. a) For office furniture and fixtures, it proposes to change from 10-year useful life to an 8-year life. If this change had been made in prior years, retained earnings at December 31, 2016, would have been $250,000 less. The effect of the change on 2017 income alone is a reduction of $60,000. b) For its new equipment in the leasing division, the client proposes to adopt the sum-of-the-years’-digits depreciation method. The client had never used SYD before. The first year the client operated a leasing division was 2017. If straight-line depreciation were used, 2017 income would be $110,000 greater. 3. In preparing its 2016 statements, one of the client’s bookkeepers overstated ending inventory by $235,000 because of a mathematical error. The client proposes to treat this item as a prior period adjustment. 4. In the past, the client has spread preproduction costs in its furniture division for over 5 years. Because of its latest furniture is of the “fad” type, it appears that the largest volume of sales will occur during the first 2 years after introduction. Consequently, the client proposes to amortize preproduction costs on a per-unit basis, which will result in expensing most of such costs during the first 2 years after the furniture’s introduction. If the new accounting method had been used prior to 2017, retained earnings at December 31, 2016, would have been $375,000 less. 5. For the nursery division, the client proposes to switch from FIFO to LIFO inventories because it believes that LIFO will provide a matching of current costs with revenues. The effect of making this change on 2017 earnings will be an increase of $320,000. The client says that the effect of the change on December 31, 2016, retained earnings cannot be determined. 6. To achieve an appropriate recognition of revenues and expenses in its building construction division, the client proposes to switch from the completed-contract method of accounting to the percentage-of-completion method. Had the percentage-of-completion method been employed in all prior years, retained earnings at December 31, 2016, would have been $1,075,000 greater. Instructions: a) For each of the changes described above, decide whether: 1) The change involves an accounting principle, accounting estimate, or correction of an error. 2) Restatement of opening retained earnings is required. b) What would be the proper adjustment to the December 31, 2016, retained earnings?

4.3 Estimate, Showing All Relevant Calculations, The Maximum Premium Navidale Co Could Pay To

4.3  Estimate, showing all relevant calculations, the maximum premium Navidale Co could pay to acquire Lonchivar Co, explaining the approach taken and any assumptions made. (14)

Consider The Differing Means Of Debt Financing Available (or Emerging) That May Be Involved

Consider the differing means of debt financing available (or emerging) that may be involved in business performance and decision-making (Ch. 26, 27, 30, 31). What are the legal rights, responsibilities, and liabilities of parties involved with negotiable instruments, secured transactions, and debtor-creditor relationships? What steps should be taken to account for and safeguard a company’s rights and track its responsibilities in such relationships?

Anne LLC Purchased Computer Equipment (5-year Property) On August 29 For $44,000 And Used

Anne LLC purchased computer equipment (5-year property) on August 29 for $44,000 and used the half-year convention. Anne LLC did not take §179 or bonus depreciation in the year it acquired the computer equipment. During the current year, which is the fourth year Anne LLC owned the property, the property was disposed of on January 15. Calculate the maximum depreciation expense. (Use MACRS Table 1) a. $634 b. $2,534 c. $2,750 d. $5,069 e. none of these choices are correct Arlington LLC purchased an automobile for $77,000 on July 5, 2018. What is Arlington’s depreciation expense for 2018 if its business use percentage is 77 percent (ignore any possible bonus depreciation)? (Use MACRS Table 1, and Exhibit 10-10.) a. $5,900 b. $7,800 c. $7,700 d. $11,550 e. none of the choices are correct

An Analyst Must Decide Between Two Different Forecasting Techniques For Weekly Sales Of Roller

An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the naive approach. The linear trend equation is Ft = 127 1.9t, and it was developed using data from periods 1 through 10. Based on data for periods 11 through 20 as shown in the table, which of these two methods has the greater accuracy if MAD and MSE are used? (Round your intermediate calculations and final answers to 2 decimal places.) t Units Sold 11 148 12 146 13 151 14 146 15 155 16 150 17 154 18 156 19 162 20 162 MAD (Naive) MAD (Linear) MSE (Naive) MSE (Linear)

PART B Broadfield Limited Purchased 5% Debentures In X Limited On 1 January 20X3

PART B Broadfield Limited purchased 5% debentures in X Limited on 1 January 20X3 (their issue date) for N$ 100 000. The term of the debentures was 5 years and the maturity value is N$ 130 525. The effective interest on the debentures is 10% and the company has classified them as held to maturity financial asset. At the end of 20X4 X Limited went into liquidation. All interest had been paid until that date. On 31 December 20X4 the liquidator of X Limited announce that no further interest would be paid and only 80% of the maturity value would be repaid, on the original repayment date. The market interest rate on similar bonds is 8% on that date. Required (a) What value should the debentures have been stated at just before the impairment became apparent? ( 7 marks) (b) At what value should the debentures be stated as 31 December 20X4 after the impairment? (1 mark) (c) How will the impairment be reported in the financial statements for the year ended 31 December 20X4 (2 marks)

QUESTION 2 (30 Marks) Ellesmere Limited Entered Into The Following Transactions During The Year

QUESTION 2 (30 marks) Ellesmere Limited entered into the following transactions during the year ended 31 December 20X3 (1) Entered into a speculative interest rate option costing N$ 10 000 on 1 January 20X3 to borrow N$ 6 000 000 from AB Bank commencing 31 March 20X5 for 6 months at 4%. The value of the option was N$ 15 250 (2) Purchased 6% debentures in FG Limited on 1 January 20X3 (their issue date for N$ 150 000 as an investment. Ellesmere Limited intends to hold the debentures until their redemption at a premium in 5 years’ time. The effective rate of interest of the bond is 8.0% (3) Purchased 50 000 shares in ST Limited on 1 July for N$ 3.50 each as an investment. The share price for on 31 December 20X3 was N$3.75. Required Show the accounting treatment and relevant extracts from the financial statements for the year ended 31 December 20X3. Ellesmere Limited only designates financial assets at their fair value through profit and loss where this is unavoidable (20 marks)

CASE STUDY ON MRS. B Background Information Mrs. B, Recently Widowed And In Her

CASE STUDY ON MRS. B Background information Mrs. B, recently widowed and in her mid to late 40s, is a senior executive working for a Singapore-based multi-national corporation with SGD 10 billion in global sales. She has a son aged 20 and a daughter aged 18. In 3 months’ time, her son will be leaving for the UK to study in the law faculty of a prestigious UK university for the next 3 years (annual expenses including fees, lodging, air fares and miscellaneous items for an outside of London-based university education can be assumed to be SGD 80,000 per annum, after taking into account potential impact of inflation in the UK over the next 3 years). As for her daughter, all indications are that in another year’s time, she will be studying in one of the government-funded local universities (you can assume SGD 80,000 to be more than adequate to cover her entire cost of education based on SGD 20,000 per annum for a 4-year programme taking into account inflation and increasing costs of higher education in Singapore). Current situation Mrs. B has recently received a lump sum payment of SGD 1.2 million from the insurance pay out of her late husband’s life insurance policy. Together with the available family savings of SGD 300,000, Mrs. B reckons that she now has cash funds totalling SGD 1.5 million available for her to invest prudently to meet her various needs. Investment proposals Mrs. B has over the past couple of weeks been busy meeting with executives from various financial and investment firms with a view to deploying and investing the available funds rather than just placing them with banks given the current low interest rate environment. Specifically, she has narrowed down her choice to the following 2 proposals: PROPOSAL 1 Ms. Shelly, who is the Senior Executive Director of Pillar Energy Resources Pte. Ltd. (‘PER’), a privately held firm specialising in energy investments, marketing and distribution, suggests that Mrs. B sets aside funds to invest with her firm. According to Shelly, the expected returns amounted to 3% every 3 months on the total funds invested. As an illustration, clients who invest SGD 100,000 at the beginning of each quarter (the fixed dates are 1 January, 1 April, 1 July and 1 October) will get their original investment amount of SGD 100,000 together with the return of SGD 3,000 at the end of the respective quarter (31 March, 30 June, 30 September and 31 December). If only the principal funds are rolled over every quarter on an annual basis, clients can potentially obtain SGD 12,000 in returns over a 12- month period. At the end of each period of investment, the principal sums invested and the returns are paid back to the investors so that they can decide whether or not to continue investing and if so for whatever amounts in the following and subsequent quarters. Shelly recommends that Mrs. B invests with her firm an amount of at least SGD 500,000 over a suggested minimum period of 3 years so that the burden of funding her son’s education can be taken care of. She further emphasizes that the investment duration with her firm is relatively short term in nature. Hence, there is no need for Mrs. B to be overly concerned about its liquidity. Moreover, there is no compulsion for her to continuously invest every quarter as she can easily get out at the end of each investment period if she needs the funds. She can always re-invest again in the subsequent quarters should the need arises. Just a week ago, Mrs. B attended a private presentation held by PER at a 5-star hotel at the invitation of Shelly where she further learned of the following: a. The minimum amount to invest is an affordable SGD 25,000. Most of Shelly’s clients have invested amounts ranging from at least SGD 250,000 to SGD 1.5 million each over the past 8 years. These clients prefer such investments due to the relatively short duration, considering that each investment period is only 3 months, unlike other investment products which might require longer periods of commitment with much less certainty of returns. b. As explained by the Managing Director of PER (Shelly’s boss), the invested funds from clients are being held in trust and are secured through first “charges” or “lien” on specific oil fields and gas reservation sites belonging to the firm located in the well-known shale oil area of Dakota in the US. Such investments are fully secured and duly documented. In addition, the oil and gas reserves are properly certified by experts (investors can view at PER’s Marina Bay Suite office the various documents which have been duly prepared and certified by lawyers who are experts in this area). In this manner, an investor can be assured of getting his or her returns as the whole investment process will be properly documented, be above board and entirely transparent. c. PER has very well-established track records, having tied up with professional middlemen and other connections with the oil majors that have enabled it to pre-sell oil and gas reserves to achieve the desired returns. Since oil and energy prices in general have been depressed for some time previously, and are now stabilised and even on the uptrend recently, the future prospects for the industry and for the firm, in particular, have never looked brighter or better. Hence, investors are assured of the safety features of their investments with the firm. d. The Managing Director of PER gave an assurance to the audience that there were no currency risks for investors since the returns and the funds being invested would be denominated and paid back in SGD. Similarly, investors would not face any risks or uncertainties in the oil and gas markets as the proven energy reserves have been pre-sold. e. Some investors with prior experience of investing with PER went on stage to give first-hand testimonials and shared their investment experiences. Some had gone on fact-finding field trips to the actual project sites in Dakota, USA, to witness for themselves the development of the projects they had previously invested in. All these investors have successfully obtained the returns as promised as well as their invested principal amounts. These satisfied investors further indicated to the audience their intentions to commit existing as well as fresh funds with the firm. As Shelly was aware of Mrs. B’s financial situation, she told her that if she were to invest diligently and sufficiently through her recommendation, both her children’s educational expenses and even her own financial needs could be more than adequately taken care of. In view of the above and considering that Mrs. B (through her late husband) has known and trusted Shelly for more than 20 years, she was keen to take up this proposal to meet her investment goals and various financial objectives. PROPOSAL 2 Ms. Emily, Executive Director in the Private Wealth Department of First Union National Bank Ltd. (its listed symbol on an overseas stock exchange is ‘FUNB’), proposes that Mrs. B places her available funds with FUNB in a discretionary investment management account that can grow steadily at an average of 5 – 15% p.a. (the figures provided are based on the audited track records of FUNB for such similarly managed discretionary accounts over the past 30 years). At a previous meeting with Mrs. B, Ms. Emily had explained the workings of a discretionary investment management account as one in which the investments for clients are specifically tailored and managed by FUNB for each investor who opens such accounts and are individually segregated. Its team of economic, stock and investment experts at FUNB is given full discretion or authority with regards to making all the necessary investment management decisions such as allocation of assets, choice of stocks or bonds or currencies to invest in, timing of buying and selling, etc. FUNB will provide detailed records of transactions and send statements with regular reviews to all its clients. All clients including Mrs. B can, if they wish, give specific instructions to override the investment decisions, liquidate the securities, make partial withdrawals or even terminate the account depending on the wishes of the clients themselves by giving due notice. In other words, a discretionary investment management account is one in which the Bank is given a mandate by the client to make investment decisions on his or her behalf and over which the client himself or herself can still have full control over the funds at the same time. As initially proposed by Ms. Emily, the funds to be managed by FUNB for Mrs. B will be invested in a diversified portfolio that comprises traditional asset classes. After further meetings with Mrs. B, Ms. Emily highly recommended that the allocations of the portfolio for Mrs. B be proportionately weighted to comprise cash deposits and foreign currencies (5%), local stocks (45%), bonds (10%) and foreign stocks including the US, EU and Greater China (40%) given the forecasts and outlook by the expert panel of the Bank. While FUNB will have full discretionary power to manage the investments on her behalf as it sees fit, Ms. Emily reminded Mrs. B that the individual asset weightings can be adjusted to fit her requirements. This is an ideal situation for Mrs. B as she is freed from the hassles of the investment decision making process and administrative chores, yet at the same time any of her specific requests such as her wish not to invest in say, casino, gaming, tobacco or liquor stocks can be accommodated if these and any other requests are made known either in advance or at any time to FUNB. The minimum amount accepted by FUNB for such a discretionary investment management account or service is SGD 1 million and above with no minimum investment period or duration except that to close the discretionary account a minimum notice period of 1 month is needed. Assumptions The terrace house in the east coast area off Changi Road that Mrs. B and her family currently live in is fully paid for. She has more than adequate insurance policies to cover her entire family for medical expenses, long term disability and premature death benefits as various policies were purchased years ago when she and her husband first started working. Therefore, it can be assumed that insurance coverage will not be considered by Mrs. B in her current investment decision deliberations. Also, it is highly likely that given her current pay of about $ 12,000 per month, Mrs. B will continue in her present job for the next three years barring any unforeseen circumstances such as her redundancy after 3 years and the restructuring of her firm. For the purpose of this case study, please bear in mind the following: 1. Other than the two investment proposals above, Mrs. B does NOT wish to consider evaluating or investing directly by herself (with all its hassles and administrative requirements) in properties, annuities, listed equities, bonds, REITs and mutual funds (unit trusts) with other insurance companies, banks, brokers, investment houses, independent financial advisers or through online internet accounts. 2. For the sake of simplicity, do not consider bank fees or charges, discretionary investment management account fees, brokerages, stamp duties, commissions and charges, capital gains taxes and income taxes etc. in Mrs. B’s investment decision-making process. 3. As for the economic environment in Singapore, you can assume that the interest rate for short- to medium-term bank deposits is 1 % p.a. while the annual inflation rate in Singapore is in the region of 3 % p.a. 4. Do not take into account the CPF balances and their effects on Mrs. B. Assignment Based on your understanding of the investment tools and concepts that you have learned about thus far, explain how you can use the same tools and concepts to advise Mrs. B on allocating and utilising her investible funds of SGD 1.5 million. Describe and discuss your recommendation(s) (in 800 – 1,000 words) by analysing with whom and how Mrs. B should or should not invest the cash she has on hand given her situation. Compare the relative merits, demerits and risks involved and evaluate the potential outcomes if Mrs. B were to take up all your recommendations. You can also synthesise and give additional suggestion(s) and/or alternative(s) where appropriate (after giving due consideration to the various assumptions outlined above) all of which must be duly supported by sound and detailed arguments.

Maria Cupcakes After Her Graduation, Maria Decided To Start Her New Cupcakes Shop In

Maria Cupcakes After her graduation, Maria decided to start her new Cupcakes Shop in a fast growing Area. As a source of initial cost financing, she received a loan of 400KEGP at interest rate of 15%, to be paid over 4 years. Fixed Costs per Month Staff salaries: 25,000 Rental fees: 65,000 Expected demand and costs per Piece Variable Costs (Expenses Only) per Unit: 3 EGP Expected Average number of Sold Units/Day: 200 pieces (Expected Growth rate of 20% y/y). Based on her pricing strategy, Maria set a price of 35 EGP/pc. Vanilla Cupcakes- Bill of Materials- Y1 Ingredient Qty Unit of Measure Plain 25 G Sugar 100 G Eggs 1 Piece Vanilla Extract 4 Teaspoon Baking Powder 2 Teaspoon Milk 50 G Key Assumptions Year 1 Prices Ingredient Price Unit of Measure Currency Plain 10 kg EGP Sugar 1 kg US Large Eggs 2 pc EGP Vanilla Extract 2 Teaspoon EGP Baking Powder 2 Teaspoon EGP Milk 11 kg EGP  1USD:18EGP  Inflation Rate:25%  Working Days/year: 300 Days  Rental fees increasing by 5 % y/y (5 years contract )  Material prices increasing 10% y/y “ For Materials purchased in local Currency”  Starting year 4, Maria is planning to have a new Recipe. Vanilla Cupcakes- Bill of Materials- Y4 Ingredient QTY Unit of Measure Plain 20 G Sugar 100 G large Eggs 1 PIECE Vanilla Extract 3 Teaspoon Baking Powder 2 Teaspoon Milk 50 G In 40 mins, help Maria to assess the following; • CM % in Y1. • Required volume to Achieve 50,000 EGP Net in profit in year1. • Profit

Trudy Is Jocelyn’s Friend. Trudy Looks After Jocelyn’s Four-year-old Son During The Day So

Trudy is Jocelyn’s friend. Trudy looks after Jocelyn’s four-year-old son during the day so Jocelyn can go to work. During the year, Jocelyn paid Trudy $4,030 to care for her son. What is the amount of Jocelyn’s child and dependent care credit if her AGI for the year was $30,300? (Exhibit 8-9) a. $0 b. $810 c. $ 1,088 d. $3,000 Brandon, an individual, began business four years ago and has sold §1231 assets with $5,650 of losses within the last 5 years. Brandon owned each of the assets for several years. In the current year, Brandon sold the following business assets: Asset Original Cost Accumulated Depreciation Gain/Loss Machinery $ 31,300 $ 8,300 $ 10,650 Land 53,000 0 26,500 Building 116,000 33,000 (18,000 ) Assuming Brandon’s marginal ordinary income tax rate is 32 percent, what effect do the gains and losses have on Brandon’s tax liability? Use Dividends and Capital Gains Tax Rates for reference. 2018 a. $19,150 ordinary income, $6,128 tax liability . b. $19,150 1231 gain and $2,783 tax liability. c. $5,200 1231 gain, $13,950 ordinary income, and $5,244 tax liability. d. $13,950 1231 gain, $5,200 ordinary income, and $3,757 tax liability. e. none of the choices are correct.

Hushovd Iron Works Has Collected The Following Data For Its Thunderbolt Line Of​ Products:

Hushovd Iron Works has collected the following data for its Thunderbolt line of​ products:

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