What is the yield to maturity of a bond? How

Question What is the yield to maturity of a bond? How is it computed?

Home Depot is the largest hardware and home improvement company

Question Home Depot is the largest hardware and home improvement company in the world.  As of February 3, 2017 (the fiscal 2016 year end) the company operated 2,256 stores. Many of these stores were leased.  In its lease footnote for its financial statements, the company reported that the approximate future minimum lease payments under capital and operating leases were as follows (in millions):  Capital OperatingFiscal Year Leases Leases2017   112   8562018   107   8072019   99   7472020   97    6562021   93   582Thereafter   797   4,560    1,305  Less imputed interest   813      492  Less current installment   33  Long-term capital lease obligation, excluding current installments   459  The average life of operating leases was 15 years, implying that the average lease payment in years six to fifteen is $456 (million) per year.  The company typically borrows at a rate of 5%.1. From the perspective of the CEO of Home Depot, what are the pros and cons of using operating leases to finance new stores, rather than purchasing the stores outright?2. What is the liability for Home Depot for capital leases at February 3, 2017?3. Estimate the additional lease asset and liability for Home Depot on February 3, 2017 if accounting rules changed so that Home Depot was required to report its operating leases as capital leases.  Show the entry to record the asset and liability on the books on February 3, 2017.  Please record any entries related to these leases that will be made during the year ended February 3, 2018.4. What impact will moving from an operating to a capital lease have on ROA?

Please detail how the following transactions affect the cash flows

Question Please detail how the following transactions affect the cash flows statement (e.g., increase to operating).1.       Gain on sale of equipment2.       Increase in inventory3.       Repurchase of common stock4.       Purchase of machinery5.       Giving employees stock as compensation6.       Capital lease payment

Rich began working for George Washington University (GWU) on July

Question Rich began working for George Washington University (GWU) on July 1, 2016, the first day of GW’s fiscal year, at a monthly salary of $5,000 plus benefits.  When he joined he was given a copy of GW’s policy on paid time off.  The details are as follows: Vacation: “Administrative and professional staff earn 20 vacation days per year, accrued at the rate of 1.67 days per month. You may accrue, and carry into the next year, up to a total of 40 vacation days.” Sick Times: “You earn one sick day per month (12 per year).  You may use up to 12 sick days per year to care for sick members of your family or household who regularly depends on your care.  You may accrue up to 130 sick days” Personal days: “You may take up to three personal days per fiscal year.  These days do not accrue.” If Rich did not take any time off during his first year of work at GW for a vacation, sick time, or personal reasons, should GW record a liability for vacation, sick time, and personal days owing to Rich on June 30, 2017? Explain why or why not.  If GW does record a liability, what other financial statement items will be affected for the year ended June 30, 2017?

The mayor of Batman, a city in southeastern Turkey, sued

Question The mayor of Batman, a city in southeastern Turkey, sued Warner Bros. for royalties from the movie “The Dark Knight” which grossed over $1 billion at the box office. The movie is about a superhero named Batman and the mayor claims that the producers used the name of this city without permission.  A lawyer for Warner Bros. believes the chances of losing this suit are remote.  Per GAAP, Warner Bros. should:A.Record an expense on the income statementB.Record a liability on the balance sheetC.Dislose the lawsuit in the footnotesD.Do nothing in the financial statements related to this lawsuitE.Only produce Hobbit movies because the inhabitants of Middle-earth aren’t so litigious

In their early years, start-up companies are most likely to

Question In their early years, start-up companies are most likely to report:A.Positive cash flows from both operating activities and investing activitiesB.Negative cash flows from operating activities and positive cash flows from investing activitiesC.Positive cash flows from financing activities and negative cash flows from investing activitiesD.Negative cash flows from financing activities and positive cash flows from operating activitiesE.Negative cash flows from both financing activities and operating activities

Fiscal Year Ended December 31 December 31, 2016 2017Balance at

Question               Fiscal Year Ended  December 31 December 31,  2016 2017Balance at beginning of period   9,284  6,105           Provision   4,091    6,402                Warranty usage   (3,069)  (3,223)              Balance at end of period 10,306   9,284                      iRobot Corp, a leading producer of robots for consumers, government and industry, provided the above information about its warranty payable account. What journal entry did iRobot make in the year ended December 31, 2016? A. Warranty Expense                                    3,069             Warranty Payable                                          3,069 B. Warranty Payable                               4,091          Inventory                                                4,091 C. Warranty Payable                                 4,091             Warranty Expense                                  4,091 D. Warranty Payable                                    3,069            Inventory                                                   3,069 E. Warranty Expense                                    4,091                  Inventory                                             4,091

On January 1, 2017, Weaver D.’s Restaurant is planning to

Question   On January 1, 2017, Weaver D.’s Restaurant is planning to enter as the lessee into the following lease agreement.  The lease is non-cancelable, and Weaver D. does not receive title to the leased property during or at the end of the lease term. Lessor: Hadaway Inc.  Type of property Truck  Yearly rental payment $15,000  Lease term 6 years  Economic life of leased asset 10 years  Bargain purchase option No  Fair Market value of leased asset $125,000  Lessee’s incremental borrowing rate 10%       Weaver D. Restaurant should treat the lease agreement with Hadaway Inc. as a(n)A.Capital lease with an initial asset value of $65,329B.Capital lease with an initial asset value of $125,000C.Operating leasing, charging the present value of the annual rental expense to annual operationsD.Operating lease, charging $15,000 in annual rental expense

On January 1, 2017, Johnson Company acquired Glenn Enterprises for

Question On January 1, 2017, Johnson Company acquired Glenn Enterprises for $10 million in cash.  As part of the acquisition, Johnson obtained tangible assets with a book value of $2 million and an estimated market value of $6 million.  In addition, Johnson identified market values of Glenn’s identifiable intangible assets to which Johnson would have a legal right as $3 million.  Johnson also assumed Glenn’s liabilities, which had a market value of $2 million.  How much goodwill does Johnson record as a result of the transaction?A.$0 millionB.$1 millionC.$2 millionD.$3 millionE.$6 million

The LGC Company requires advance payments for custom orders made

Question  The LGC Company requires advance payments for custom orders made to customer’s specifications.  Information concerning 2017 transactions include: Customer advances, balance, Jan. 1, 2017                                   $295,000Advances received with orders during 2017                                     460,000Advances applied to orders shipped during 2017                                  410,000Nonrefundable advances forfeited by customers who cancelled during 2017         125,000 What is the balance for Customer Advances on December 31, 2017?A.$0B.$220,000C.$345,000D.$460,000

The following information is available from Zak corporation’s accounting records

Question The following information is available from Zak corporation’s accounting records for the year ended December 31, 2017Cash received from customers  $550,000Cash paid for purchase of supplies        325,000Income taxes paid    45,000Cash dividends paid to shareholders    25,000 What is Zak’s cash from operating activities?A.$155,000B.$180,000C.$200,000D.$225,000E.$550,000

Manchester United (NYSE: MANU) is an English football club, which

Question Manchester United (NYSE: MANU) is an English football club, which generates revenue from sponsorships, merchandising, broadcasting and ticket sales.  In 2017, Forbes named MANU the world’s most valuable sports team and valued the brand at $2.23 billion (up from $1.86 billion in 2016).  Because of the external validation, MANU shouldA.Debit intangible assets by $370 million and credit common stock by $370 millionB.Debit intangible assets by $370 million and credit intangible revenue by $370 millionC.Debit intangible assets by $370 million and credit gain by $370 millionD.Debit intangible assets by $370 million and credit retained earnings by $370 millionE.None of the above

QUESTION 1 (30 MARKS)Mr. Verron Brown, and his business partners

Question  QUESTION 1                                                                                                                             (30 MARKS)Mr. Verron Brown, and his business partners Mr. Blue and Mrs. Green, are extremely proud of their business – Milky Milk Tarts (Pty) Ltd (MMT hereafter). The company owns a milk tart factory situated in the East Rand, and was incorporated on 1 June 1994. They recently appointed a new financial manager in their team, Ms. Bronwyn Harris, a close associate of Mr. Brown.Ms. Harris requires your assistance with the following matters which arose during the financial year ended 31 May 2018:1.   Payroll queriesMs. Harris did her articles at one of the big four auditing firms but she doesn’t have any direct experience in accounting for payroll related transactions, as she was never assigned that section of the audit during her thee-year training period. Her team had not processed any payroll entries for the month of May. On 1 June, she reviewed MMT’s electronic bank statement and identified the following payments made: Date Description Note Amount 25 May 2018 Various payments made directly to employees   3,405,600 25 May 2018 MMT Defined benefit plan i 167,000 31 May 2018 Receiver of revenue: Income tax   1,259,384 31 May 2018 Unemployment insurance fund (UIF) ii 64,300 3 June 2018 Alexander Forbes iii 395,800 3 June 2018 Discovery Medical Holdings iv 313,000 Notes:i)             Only senior executives qualify for membership to the MMT Defined benefit plan, and the contributions to the fund are made by MMT. It forms part of the executive’s total cost to company.ii)            Unemployment insurance fund (UIF) contributions are statutory contributions to a government administered insurance fund that both the employer and the employee are required to contribute to in equal parts, and is calculated with reference to gross salaries (i.e. 50:50 contribution).iii)          Employees may elect to contribute up to 12% of the gross salaries to the Alexander Forbes provident fund (a post-employment defined contribution retirement fund). MMT does not contribute to this fund.iv)          The payment to Discovery Medical Holdings in respect of medical aid contributions comprises: R200, 000 employer contributions, R110 000 employee contributions and R3 000 employee contributions for the Vitality benefit offered by Discovery to its members. QUESTION 1 (CONTINUED)2.   Leave payMs. Harris received a summary report in respect of employees’ leave balances from the Human Resources department on 31 May 2018. The summary report has been included as Annexure A.Additional information:·        The company calculates its discount rates with reference to returns attainable on Namibian government bonds with maturities greater than 10 years.·        You may assume a tax rate of 28% for all periods.·        You may ignore VAT. Salary band (employment level) Number of employee on salary band Leave entitlement per employee(days) Leave balance for level per employee(days) Accumulating? Vesting? Average annual gross salary at 31 May 2018 Average annual cost to company at 31 May 2018 Expected increases: 2018 Executive 3 30 7 Yes Yes R550,000 R650,000 3% Management 4 20 5 Yes No R300,000 R350,000 4% Admin 7 20 3 No Yes R175,000 R200,000 5% Factory 20 15 1 No No R80,000 R100,000 5% QUESTION 1 (CONTINUED)Summary report: MMT leave balances at 31 MAY 2018  ·               All employees work for 5 days a week; that is 260 days per annum·               Where leave accumulates, it accumulates for a maximum of one year.·               Vested leave is paid out in the first month of the new financial year.·               Average sick leave balance per employee: 25 days   QUESTION 1 REQUIRED:  a) Payroll queries: Assist Ms. Harris by preparing the journal entries which she will need to process to record the payroll for the month ended 31 May 2018 to the extent that the information provided allows you to do. ·        Round all workings to the nearest Rand.·        Include relevant amounts and calculations where necessary as marks will be awarded for them.·        Include journal narrations. ·        Clearly indicate where an account is situated in the financial statements, i.e. statement of financial position (SFP); profit or loss (SP/L); other comprehensive income (SOCI); or statement of changes in equity (SCE). Effective and efficient communication: narrations; correct statements are indicated (9)             (1)  b) Leave pay: Calculate the amount which should be accrued and/or provided for by Milky Milk Tarts (Pty) Ltd (MMT) in respect of the outstanding leave balances for the year ended 31 May 2018. ·        Round all workings to the nearest Rand.·        Include all calculations as marks will be awarded for them. Effective and efficient communication: structured calculations; easy to follow thought process  (9)          (1)

On October 1, 2016, White Company declared a property dividend

Question On October 1, 2016, White Company declared a property dividend payable in the form of marketable equity securities classified as “available for sale” for financial accounting purposes. The marketable equity securities will be distributed to the common stockholders on December 1, 2016. The investment in equity securities originally cost White $510,000 on August 1, 2016. The investment’s fair value on various dates is as follows:October 1, 2016$530,000December 1, 2016535,000December 31, 2016540,000

Why does a premium received on a bond have an

Question Why does a premium received on a bond have an account that is being payed off? I would assume that it is lequidated and the bond is simply payed at the face value of x dollars? Why is the face value deducted over time? Why is a 200,000 bond selling at 103 not still a 200,000 bond if the company gets the extra 6,000?

Calculate the new interest rate if a bank realizes that

Question Calculate the new interest rate if a bank realizes that the value of a mortgage increases from $450,000 to $471,428.57, if the duration of the mortgage is 10 years and the interest rate used to price this asset was originally 5%.

Concrete Creations manufactures concrete bird baths that are sold through

Question Concrete Creations manufactures concrete bird baths that are sold through retail outlets nationwide. The bird baths are made in a two-stage process. In the Forming Department, the concrete is poured into silicone molds where it is allowed to cure and set. Once set, the birdbaths are removed from the mold and sent to the Finishing Department where any imperfections are removed and the birdbaths are sprayed with a special sealant.Information for the Forming Department for the month of May is provided below.1.     Assume that Concrete Creations uses the weighted-average method for cost allocation.Determine the equivalent units of production for the Forming Department for the month of May.2.     Assume that Concrete Creations uses the weighted-average method for cost allocation. Compute the cost per equivalent units of production for the Forming Department3.     Assume that Concrete Creations uses the weighted-average method for cost allocation. ATTACHMENT PREVIEW Download attachment Concrete sheet.png Percent Complete Units Materials Conversion Work in Process, Beginning 10,000 100% 60% Started into Production 90,000 Completed and Transferred Out 80,000 Work in Process, Ending 20,000 100% 40% Materials Conversion Work in Process, beginning 12,600 S 12,400 Cost added during period 167,400 119,350

Compare the liquidity, solvency, and prof tability of the two

Question Compare the liquidity, solvency, and prof tability of the two companies.  src=”/qa/attachment/9518000/” alt=”2019-08-25 (4).png” /> ATTACHMENT PREVIEW Download attachment 2019-08-25 (4).png tarea 1.xlsx – Excel michelle thurber X File Home Insert Page Layout Formulas Data Review View Help Tell me what you want to do Share do Cut Calibri – 12 – A A 29 Wrap Text General AutoSum Be Copy Fill – AY O Paste Format Painter BIU – – LA- E Merge

You are a loan off cer for White Sands Bank

Question You are a loan off cer for White Sands Bank of Taos. Paul Jason, president of P. Jason Corporation, has just left your off ce. He is interested in an 8-year loan to expand the company’s operations. The borrowed funds would be used to purchase new equipment. As evidence of the company’s debt-worthiness, Jason provided you with the following facts. 2017 2016 Current ratio 3.1 2.1 Asset turnover 2.8 2.2 Net income Up 32% Down 8% Earnings per share $3.30 $2.50 Jason is a very insistent (some would say pushy) man. When you told him that you would need additional information before making your decision, he acted offended and said, “What more could you possibly want to know?” You responded that, at a minimum, you would need complete, audited f nancial statements. Instructions With the class divided into groups, answer the following. (a) Explain why you would want the f nancial statements to be audited. (b) Discuss the implications of the ratios provided for the lending decision you are to make. That is, does the information paint a favorable picture? Are these ratios relevant to the decision? (c) List three other ratios that you would want to calculate for this company, and explain why you would use each.

Use the CAFR of city LOS GATOS, answer the questions

Question Use the CAFR of city LOS GATOS, answer the questions that relate to the overall government and governmental fundsa) Find the budgetary comparison schedules for the general fund. Using them, what were the estimate revenues and appropriations for the most recent fiscal year?b) Using the same information as in part (a), list the amounts of any transfers in and transfers out that were budgeted for the most recent year.c) Based on the notes following the financial statements, what is the policy of the general fund with respect to outstanding encumbrances at the fiscal year-end?

How the retail do evaluate and measure performance of budget

Question How the retail do evaluate and measure performance of budget plan and total sale?Why the evaluate and measure performance of budget plan and total sale will improve performance of the company?

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