avi limited operates in the food industry it commenced operations on 1january 20×6 t 776301

Avi Limited operates in the food industry. It commenced operations on 1January 20X6. The following information is available for its year ended 31December 20X8:

• Profit before tax for the year ended 31 December 20X8 is C650 000. This is arrived at after correctly taking into account all the information below.

• The tax assessment for 20X7 arrived during 20X8 and indicated taxable profits of C650 000. Current normal tax of C195 000 was processed in 20X7.

• A building was sold for C100 000. It was purchased for C200 000. On the date of sale, IJanuary 20X8. the building had a carrying amount of Cl20 000 and a tax base of Cl30 000.

• Plant was revalued to a fair value of C60 000 on 1 January 20X8. This is the first revaluation of any item of property, plant and equipment to date. The plant originally cost C100 000 and had a carrying amount on 1 January 20X8 of C50 000.

• No transfers of the realized portion of the revaluation surplus to retained earnings are made.

• No other items of property, plant and equipment were revalued.

• Depreciation is provided on the revalued property, plant and equipment. It had a remaining useful life of 5 years on 1January 20X8 {consistent with previous estimates of useful life).

• The tax authorities allows tax depreciation on the item of plant (revalued above) at 25% p.a. on cost, but the item of plant already had a tax base of zero on1January 20X8.

• Depreciation and capital allowances on all items of property, plant and equipment (other than the revalued plant) were C50 000 and C35 000 respectively.

• Dividend income of C20 000 was earned in the current year.

The following items appeared in the draft 31 December 20X8 statement of financial position:

• Accrued income (taxed when earned) CIO 000

• Expenses prepaid (deductible when paid) C30 000

• The following items appeared on the 31December 20X7 statement of financial position:

• Accrued income (taxed when earned) C20 000

• Expenses prepaid (deductible when paid) CO

• Property, plant and equipment (including plant andbuildings) C700 000

• Property, plant and equipment (including plant and buildings) had a tax base at 31December 20X7 of C680 000.

• The current normal tax rate is 30% (20X7: 29%) whereas dividend income is taxable at 10%.

• There are no permanent or temporary' differences other than those evident from the information provided.

Required:

a) Calculate the deferred tax balance at 31December 20X8 using the balance sheet approach.

b) Calculate the current tax expense for the year ended 31December 20X8

mike purchases a heavy duty truck 5 year class recovery property for his delivery se 1040400

Mike purchases a heavy-duty truck (5-year class recovery property) for his delivery service on April 30, 2010. The truck is not considered a passenger automobile for purposes of the listed property and luxury automobile limitations. The truck has a depreciable basis of $39,080 and an estimated useful life of 5 years. Its estimated salvage value is $1,080. Assume no election to expense is made and no bonus depreciation is taken. a. Calculate the amount of depreciation for 2010 using financial accounting straight-line depreciation (not the straight-line MACRS election) over the truck’s estimated useful life. b. Calculate the amount of depreciation for 2010 using the straight-line depreciation election under MACRS over the minimum number of years. c. Calculate the amount of accelerated depreciation for 2010 that Mike could deduct using MACRS.

casino windsor conducts surveys to determine the opinions of its customers among oth 809764

Casino Windsor conducts surveys to determine the

opinions of its customers. Among other questions,

respondents are asked to give their opinion about

“Your overall impression of Casino Windsor.” The

responses are

Excellent Good Average Poor

In addition, the gender of the respondent is noted.

After analyzing the results, the following table of

joint probabilities was produced.

Rating Women Men

Excellent .27 .22

Good .14 .10

Average .06 .12

Poor .03 .06

a. What proportion of customers rate Casino

Windsor as excellent?

b. Determine the probability that a male customer

rates Casino Windsor as excellent.

c. Find the probability that a customer who rates

Casino Windsor as excellent is a man.

d. Are gender and rating independent? Explain

your answer.

2 ida works on creating ways to ensure that customers receive goods at the right tim 1037843

2. Ida works on creating ways to ensure that customers receive goods at the right time and correct location. Ida is involved in her firm’s ________ strategy. A. pricing B. transportation C. product D. promotion 3. Mario is part of a strategic planning team. He has identified that his company is the low-cost producer in its industry. This should be listed on a SWOT analysis as a/an A. opportunity. B. weaknesses. C. strength. D. threat. 4. According to the doctrine of supply, the amount _______ will increase as the _______ increases. A. supplied; price B. sold; demand C. bought; cost D. demanded; cheapness 5. What prompted Congress to enact the Sarbanes-Oxley Act in 2002? A. Congress wanted to make accounting practices more efficient. B. Major companies requested government regulation following negative publicity. C. A series of improper financial disclosures were found during investigations. D. Stockholders petitioned for increased access to financial records. 6. Nearly a week before Hurricane Katrina reached New Orleans, Wal-Mart began moving trucks and supplies into position, as specified in the company’s ________ plan. A. contingency B. operational C. strategic D. tactical 7. Camden Products buys a $500,000 machine by taking out a bank loan. The company’s assets will ________ by $500,000 while its liabilities will ________ by $500,000. A. fall; fall B. rise; fall C. fall; rise D. rise; rise 8. What is the name for a complex form of bartering in which several countries may be involved, each trading goods for goods or services for services? A. Countertopping B. Countertrading C. Currency fluctuations D. Exchange activity 9. If you want to turn self-directed gain into social and economic benefits for all, you should use a/an _______ strategy. A. charitable aid society B. government C. invisible hand D. visible hand 10. The Social Club is conducting a breakeven analysis to determine how many tickets it must sell at $15 each to break even on the Holiday Dance. Fixed costs are $2,000, and the variable cost per person is $10. To break even, the Social Club must sell ________ tickets. A. 500 B. 400 C. 800 D. 80 11. The curve that shows the relationship between different prices and the quantity requested at each price is the ________ curve. A. equilibrium B. supply C. demand D. buying 12. Student A says that if you’re going to prepare alternative course of action, you need to do strategic planning. Student B says that if you’re going to prepare alternative courses of action, you need to do contingency planning. Which student is correct? A. Both B. Student A only C. Student B only D. Neither 13. In which stage of the product life cycle do sales reach a saturation level, making further sales expansion difficult? A. Introductory stage B. Maturity stage C. Decline stage D. Growth stage 14. Suppose you want to price goods and services at price points that make the product appear less expensive than it is. Which strategy should you use?

the financial statements of marks and spencer plc m amp s are available at the book 739168

The financial statements of Marks and Spencer plc (M&S) are available at the book’s companion website or can be accessed at

Instructions

Refer to M&S’s financial statements and the accompanying notes to answer the following questions.

(a ) Under M&S’s share-based compensation plan, share options are granted annually to key managers and directors.

(1) How many options we r e granted during 2012 under the plan?

(2) How many options we r e exe r cisable at 31 Ma r ch 2012?

(3) Ho w man y option s we r e exe r cise d i n 2012 , an d wha t wa s th e averag e pric e o f thos e exe r cised?

(4) How many years f r om the grant date do the options expi r e?

(5) T o what accounts a r e the p r oceeds f r om these option exe r cises c r edited?

(6) What was the number of outstanding options at 31 Ma r ch 2012, and at what average exe r cise

price?

(b) Wha t numbe r o f dilute d weighted-averag e sha r e s outstandin g wa s use d b y M& S i n computing

earning s pe r sha r e fo r 201 2 an d 20 1 1 ? Wha t wa s M&S’ s dilute d earning s pe r sha r e i n 201 2 an d 20 1 1?

(c) What other sha r e-based compensation plans does M&S have?

oceangate sells external hard drives for 200 each its total fixed costs are 30 milli 1276808

  1. OceanGate sells external hard drives for $200 each. Its total fixed costs are $30 million, and its variable costs per unit are $140. The corporate tax rate is 30%. If the economy is strong, the firm will sell 2 million drives, but if there is a recession, it will sell only half as many. What is the firm’s degree of operating leverage? If the economy enters a recession, what will be the firm’s after-tax profit?

  1. As a securities analyst you have been asked to review a valuation of a closely held business, Wigwam Autoparts Heaven, Inc. (WAH), prepared by the Red Rocks Group (RRG). You are to give an opinion on the valuation and to support your opinion by analyzing each part of the valuation. WAH’s sole business is automotive parts retailing. The RRG valuation includes a section called “Analysis of the Retail Auto Parts Industry,” based completely on the data in Table 12.7 and the following additional information:

    www.mhhe.com/bkm

    • WAH and its principal competitors each operated more than 150 stores at year-end 2010.

    • The average number of stores operated per company engaged in the retail auto parts industry is 5.3.

TABLE 12.7

Selected retail auto parts industry data

2010

2009

2008

2007

2006

2005

2004

2003

2002

2001

Population 18–29 years old (percentage change)

21.8%

22.0%

22.1%

21.4%

20.8%

20.9%

21.1%

20.9%

20.7%

20.3%

Number of households with income more than $40,000 (percentage

change) 6.0% 4.0% 8.0% 4.5% 2.7% 3.1% 1.6% 3.6% 4.2% 2.2%

Number of households with income less than $40,000 (percentage

change) 3.0% 21.0% 4.9% 2.3% 21.4% 2.5% 1.4% 21.3% 0.6% 0.1%

Number of cars 5–15 years old

(percentage change) 0.9% 21.3% 26.0% 1.9% 3.3% 2.4% 22.3% 22.2% 28.0% 1.6%

Automotive aftermarket industry

retail sales (percentage change) 5.7% 1.9% 3.1% 3.7% 4.3% 2.6% 1.3% 0.2% 3.7% 2.4%

Consumer expenditures on automotive parts and

accessories (percentage change) 2.4% 1.8% 2.1% 6.5% 3.6% 9.2% 1.3% 6.2% 6.7% 6.5%

Sales growth of retail auto parts companies with 100 or more

stores 17.0% 16.0% 16.5% 14.0% 15.5% 16.8% 12.0% 15.7% 19.0% 16.0%

Market share of retail auto parts companies with 100 or more

stores 19.0% 18.5% 18.3% 18.1% 17.0% 17.2% 17.0% 16.9% 15.0% 14.0%

Average operating margin of retail auto parts companies with 100 or more stores

12.0%

11.8%

11.2%

11.5%

10.6%

10.6%

10.0%

10.4%

9.8%

9.0%

5.5%

5.7%

5.6%

5.8%

6.0%

6.5%

7.0%

7.2%

7.1%

7.2%

Average operating margin of all retail auto parts companies

  • The major customer base for auto parts sold in retail stores consists of young owners of old vehicles. These owners do their own automotive maintenance out of economic necessity.

  1. One of RRG’s conclusions is that the retail auto parts industry as a whole is in the

maturity stage of the industry life cycle. Discuss three relevant items of data from Table 12.7 that support this conclusion.

  1. Another RRG conclusion is that WAH and its principal competitors are in the con-

solidation stage of their life cycle. Cite three items from Table 12.7 that suggest this conclusion. How can WAH be in a consolidation stage while its industry is in a maturity stage?

19 calculating future values you are scheduled to receive 15 000 in two years when y 1309205

19.        Calculating Future Values   You are scheduled to receive $15,000 in two years. When you receive it, you will invest it for six more years at 7.1 percent per year. How much will you have in eight years?

20.        Calculating the Number of Periods   You expect to receive $15,000 at grad- uation in two years. You plan on investing it at 11 percent until you have $85,000. How long will you wait from now?

 

a fraud perpetrated by tricking a person into disclosing confidential information su 826169

A fraud perpetrated by tricking a person into disclosing confidential information, such as a password, is called:[Hint]

a Trojan horse.
hacking.
social engineering.
scavenging.
password cracking.
none of the above.

several years ago abc bought def company def was a supplier of merchandise for abc a 763035

Several years ago, ABC bought DEF Company. DEF was a supplier of merchandise for ABC and one of the primary reasons for this acquisition was so that ABC could save money on these purchases. In the current year, ABC reports cost of goods sold of $1,000,000 while DEF reports $500,000. Half of DEF’s sales were made to ABC for $300,000. As of the last day of the year, ABC still held 10 percent of these goods and planned to sell them early in the following year. What amount should ABC report as consolidated cost of goods sold?

A $1,015,000

B $1,205,000

C $1,165,000

D $1,190,000

sam the youngest of four will graduate in industrial engineering this june his futur 962346

Sam, the youngest of four, will graduate in industrial engineering this June. His future plans have not solidified yet, but his parents clearly believe that he will be self-supporting. In fact, they are planning on selling their home, taking a world cruise, and investing for their retirement.

Sam has been asked by his parents to spend part of his semester break/holidays helping them analyze a 4-plex that they are considering buying. The building is part of a RENTAL complex with cooperative management of the pool and parking areas. The complex is about 5 years old, and it appears stable and desirable.

Sam realizes that other investments might be more appropriate, but they are not interested in his general advice. Rather, they have asked him to calculate the highest PRICE that they could afford to offer (the asking price is $160,000). Also, they have asked him to ignore the impact of inflation and TAXES for this preliminary financial analysis since their future financial position and the future TAX laws are both unclear.

They have developed some information, but they suspect some may be missing. Since they are gone for the evening, and Sam wants to ski tomorrow, he plans on guesstimating any missing NUMBERS. This will give his parents a preliminary estimate, and it will involve them in the iterations to a sufficiently accurate answer.

Financing for the PURCHASE will come in two pieces. The 20% down payment will be part of the proceeds from the sale of their home, while the other 80% will be financed with a 9%, 20-year mortgage. In discussing this interest rate, his parents also mentioned that their longterm investments in the stock market had averaged an annual rate of return of about 11%.

The annual operating costs for the 4-plex, as reported by the current owner, have been about $350 for water and sewer, $150 for lawn mowing, and a $700 ASSESSMENT from the cooperative pool/parking authority. The renters pay for their own electricity and natural gas. Property taxes are CALCULATED at 1.8% of the assessed value, and properties are assessed at 100% of market prices with biannual adjustments by the city. The city currently appraises the property at $103,000 for the building and $41,000 for the land. Insurance for fire and liability is 1% of the building’s value.

Rents for these and other similar units in the cooperative have been fairly stable at$550/month or $500/month for long-term leases.

Real estate deals usually have substantial transaction costs. RealtorAc€?cs fees average 6% and are paid by the seller. Loan origination fees, title insurance fees, etc., will often cost the buyer 1.5%. These closing costs must be apportioned between the buyer and the sellerAc€??for the property purchase and for its later sale.

What horizon should be used? What happens to the property at the problem’s horizon?