1. Explain the institutional framework of the Australian financial system; 2. Discuss the financial instruments available from their chosen company, their uses and apply the financial concepts to their chosen company; 3. Perform financial ratio calculations and analysis. 4. Assess the relationships between financial institutions that make up their chosen industry.
The Fair Play Division of Fast Company (the parent company) produces wheels for off- road sport vehicles. One-half of Fair Play's output is sold to the Glow Division of Fast; the remainder is sold to outside customers. Fair Play's estimated operating profit for the year is: Sales Variable costs Fixed costs Operating profits Unit sales Internal Sales $ 300,000 200,000 60,000 $ 40,000 20,000 3 External Sales $ 400,000 200,000 60,000 $ 140,000 20,000 Unless otherwise stated assume the fixed costs given above are unavoidable. Glow Division has an opportunity to purchase 20,000 wheels of the same quality from an outside supplier on a continuing basis for $12.50 per wheel. 08. 09. Now assume the Fair Play Division is operating at full capacity and can sell all the units it manufactures to outside customers at the current external selling price. What is the cost to the Fast Division (in terms of opportunity loss) of transferring wheels to Glow Division at the current transfer price? Continuing with the conditions described in question , what unit price should the Fair Play Division charge the Glow Division in order to reduce the opportunity loss to zero? Continuing with the conditions described in question 9, what would be the total operating profit of the Fair Play Division if it sold all of its production in the external market? Continuing with the conditions described in question 8, what would be the increase in total profit earned by the Fast Company (compared to the status quo) if the Fair Play Division sold all of its production in the external market and the Glow Division purchased the required wheels from the external supplier? Q10. Q11.
Indicate the effect on your audit report, which will be widely used in the United States.
2. Osakis reports its inventory, fixed assets, depreciation, and cost of goods sold on a current-value basis. Such accounting violates the accounting standards of both Japan and the United States. There is disclosure of the pertinent facts, including the effect on key financial statement amounts, in footnote 13.
a. What factors should you consider in deciding whether to issue a qualified or an adverse opinion?
b. Draft the explanatory and opinion paragraphs for the following:
1. A qualified opinion
2. An adverse opinion
3. Osakis prepares two sets of financial statements; one set for use in Japan using Japanese accounting principles and the other set for use in the United States using U.S. GAAP. The Japanese set contains a footnote describing the accounting principles used.
How should you report on these two sets of statements?
Santa s Holiday Farm sells and delivers fir trees over the holiday season. The trees sell for $50 each and the farm also offers a removal service after the holiday season for $20. The trees cost $15 each. In November and December 2017, the farm offers customers a holiday package that costs $60 and includes both a fir tree and removal service. The trees will be removed on January 3, 2018. On December 2, 2017, Santa s Holiday Farm sells 200 holiday packages which are all delivered on the same day. Instructions (a) Using the five-step model for revenue recognition under the contract-based approach, answer the following questions related to the holiday packages sold by Santa s Holiday Farm: 1. Is there a contract? If so, describe the contract. 2. What is Santa s Holiday Farm s performance obligation(s)? 3. What is the transaction price? 4. Is there a need to allocate the transaction price? 5. Has the performance obligation(s) been satisfied? If so, when? (b) Prepare any journal entries required to record revenue. (Round to the nearest dollar.) TAKING IT FURTHER Stephen Forni is the manager of Santa s Holiday Farm. He has found the use of the contract-based approach to revenue recognition very challenging and does not understand why he cannot go back to the old way of doing it. Explain to Stephen why accounting standards change over time
please give me the correct solution
Problem 3 – 12 points Savalas Industries produces shampoo in a continuous process. During the month of March, Savalas had the following results: 400 gallons, thcluding material cost of $758 and Beginning work in process inventory conversion cost of $1,142. The work in process was 100% complete as to materials and 70% complete as to conversion During the month, Savalas placed 6,000 more gallons into production. They also added $12,346 of materials and $15,882 of conversion cost. At the end of October 800 gallons remain in process, 80% complete as to materials and 60% complete as to conversion. Calculate the following items: امام Total gallons to account for 400+ 6000 = 6400 5600 3800 €2) Gallons completed 4600-800-3200 6080 Number of equivalent gallons of conversion cost 3080 in) IN 2.50 800+ 3800 860 = Conversion cost per equivalent unit 2280+ (1142+121346): 3000 13488 Conversion cost in the gallons completed 4.399 4048 2560 Conversion cost in the ending inventory 400 84.4 = 480 1344 1760 EU
Write 150 words Discussing with the class which topic, objective, or concept was most difficult to comprehend
here are the topics: Define organized crime. Compare the various models that explain the structure of organized crime groups. Describe the attributes of organized crime and its common behavior categories.
You are a financial analyst at SilverBaggs, a major investment banking firm. Your supervisor has just handed you a difficult assignment. You must review the work of an intern, who after given the pro forma income statement and pro forma balance sheet was asked to prepare a valuation. This intern is known to make at least 10 mistakes on each valuation attempted. Your boss wants you to identify those specific errors, suggest how they should have been done but do NOT calculate the correction, nor challenge the assumptions underlying the valuation.
Mississippi Partners is interested in buying Pacific Snacks, publicly traded firm. They have asked SilverBaggs to conduct a valuation of Pacific Snacks. Pacific Snacks has enjoyed low but consistent growth. Mississippi Partners believes they can improve margins by better pricing, improve asset management, and increase sales by a wider geographical distribution.
SilverBaggs believes a tax rate of 30% would be appropriate. It is the firm’s policy to use a 7 times EBITDA multiple in calculating terminal value for FCF. The terminal value of tax savings is calculated using the perpetuity method. Long term growth after the initial five year period is assumed to mirror economic growth at 4%. Currently, Pacific Snacks pays a 5% interest rate on its debt. Pacific Snack does not pay a dividend. Econometric studies suggest the current risk free rate is 2%, while the market risk premium is 5%. Because this will be financed using debt, and they expect equity to rise quickly, SilverBaggs management has indicated to the intern to assume a target 100% debt-to-equity ratio.
Scoring: Correctly identifying error 1?2 credit, proper correction 1?2 credit (remember you do not calculate the correction), misidentifying error Ac?o 1?2 credit. Note that rounding is NOT an error. Each correctly identified error including the correction (no calculation) is worth 4.5 points up to a total of 45 points.
Exhibit 1: Pro Forma Income Statement Yr 1 Yr 2 Yr 3 Yr 4 Yr 5 Gross Sales 180.0 193.0 208.0 220.0 232.0 Cost of Sales 101.0 106.0 102.0 108.0 114.0 Gross Profit 79.0 87.0 106.0 112.0 118.0 SGA 40.0 41.0 42.0 43.0 45.0 Depr 15.0 16.0 16.0 16.0 15.0 Operating Income 24.0 30.0 48.0 53.0 58.0 Interest expense 7.0 6.9 7.0 6.9 6.8 Taxes 5.1 6.9 12.3 13.8 15.4 Net Income 11.9 16.2 28.7 32.3 35.8
Exhibit 2: Pro Forma Balance Sheet (Millions) 0 1 2 3 4 5 Cash 21.1 20.0 37.2 67.9 101.1 137.0 NWC 14.0 15.0 16.0 17.0 18.0 19.0 PPE 150.0 160.0 156.0 155.0 151.0 148.0 Debt 140.0 138.0 136.0 134.0 132.0 130.0 Equity 45.1 57.0 73.2 101.9 134.1 170.0
Exhibit 3: Information from Comparable Companies & Beta Calculations Sales (millions) Tax Rate D/E Levered Beta Unlevered Beta
Calculated ite-chips 300 0.200 .40 1.32 1.00 Bocadillos 150 0.300 .30 0.99 0.82 Atlantic Nachos 200 0.350 .45 1.00 0.77 Heavenly Bites 400 0.250 .20 0.61 0.53 Average 0.275 0.78
Exhibit 4: Cost of Equity Calculation
2% + .78 * 5% = 5.90%
Exhibit 5: Debt
Yr 1 Yr 2 Yr 3 Yr 4 Yr 5
Beg Debt 140 138 136 134 132
Payments 2 2 2 2 2
End Debt 138 136 134 132 130
Exhibit 6: Subsidiary Schedules 1 2 3 4 5 Depreciation Calculation EBITDA 49 42 63 65 70 -EBIT 24 30 48 53 58 Depreciation 15 16 16 16 15 Cap Ex Calculation Beg Net PPE 150 160 156 155 151 End Net PPE 160 156 155 151 148 Depreciation 15 16 16 16 15 CapEx 25 12 15 12 12 FCF/DCF Calculation EBITDA 39 46 64 69 73 -Tax 5 7 12 14 15 +CapEx 25 16 15 12 12 -Chg NWC 1 1 1 1 1 FCF 59 54 66 66 69 Terminal Value 2924 Present Value Factor 1.059 1.121 1.188 1.253 1.332 PV 4270 62 61 78 83 3986 Tax Shield Cash Flow Calculation Interest Expense 7 7 7 7 7 Interest Tax Shield 2 2 2 2 2 TV Present Value Factor 1.059 1.121 1.188 1.253 1.332 PV (Tax Shield) 13 2 2 3 3 13 Enterprise Value 4257 Debt 140 Equity Value 4397
Answer the 3 short question using the transcript from the following short TED talk:https://www.ted.com/talks/patricia_kuhl_the_linguistic_genius_of_babies/transcript?language=en 1. Describe the technique that Dr. Kuhl and Werker used to investigate the critical period for soundperception.2. Summarize the research that led Dr. Kuhl to conclude that babies need humans to learn. Whatcomment would you make to parents who were considering purchasing language DVDs oraudiotapes for their infants to listen to and learn from?3. Describe the technological innovation that Dr. Kuhl argues is responsible for the start of a â€œgolden ageâ€ for knowledge about infant brain development. What can researchers now easilystudy that they could not do before?
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A company reported the following stockholders’ equity on January 1 of the current year: Prepare journal entries for the following selected transactions related to this company’s stock during the currentyear:
A company reported the following stockholders equity on January