O a. 400,000 asset
Q: Martin has a controlling interest in Rowen's outstanding stock. At the current year-end, the…
A: d&e. Rowen Tax (380,000 x 21%) $79,800 Martin Tax Tax on operating income…
Q: Omicron plc prepares financial statements to 31 December each year. On 1 January 2021, Omicron plc…
A: Here discuss about the details of the contract which are made by the company to sell the product…
Q: The following information is available from the current period financial statements: Net income…
A: Introduction: A cash flow financial statement that summarizes all cash inflows received by a firm…
Q: explain why the author's assessment of the appropriateness of the going concern assumptions is so…
A: Going Concern Assumption- As per the going concern assumption business will continue its…
Q: Excise and Sales Tax Calculations Clifford Company has just billed a customer for $1,100, an amount…
A: Revenue: It implies to the income that is earned by the business during it's course of trading…
Q: By the condition of a will, the sum of P 20,000 is left to a girl to be held in trust fund by her…
A: Time will tell worth of cash changes as it complete long duration of Investement. it will tell value…
Q: Klamath Company produces a single product. The projected income statement for the coming year is as…
A: Break-even sales revenue produces the net income of $0. Therefore at break-even sales, fixed cost is…
Q: In computing the ending balance of defined benefit obligation, which of the following is deducted…
A: Defined benefit obligation is the present value of future pension liabilities of a company which it…
Q: M3-2 (Algo) Reporting Cash Basis versus Accrual Basis Income LO3-3 Skidmore Music Company had the…
A: Note: Hi! Thank you for the question As per the honor code, We’ll answer the first question since…
Q: Comprehensive Problem Set On July 1, Lula Plume created a new self-storage business, Safe…
A: A balance sheet is a representation of an individual's personal or corporation's financial balances…
Q: Phoenix Company’s 2019 master budget included the following fixed budget report. It is based on an…
A: variable costing income statement are as follows
Q: PT Arjuna will make a balance sheet as of December 31, 2021. The following is a trial balance after…
A: Lets understand the basics. Income statement is a statement prepared by the management in order to…
Q: 014, PEACE COMPANY received interest income of 100,000 on government obligations and P600,000 in…
A: Deferred Tax : It is the difference of Book accounting income and taxable income of the year. If…
Q: . Production has indicated that they can produce widgets at a cost of P4.00 each if they lease new…
A: Lease- The lease contract details each party's responsibilities and the terms and conditions of the…
Q: Calculate the sample size for the AHMED Company using the following information: The population…
A: Income statement: It is statement which shows the company's income and expenditure, it shows profit…
Q: Prepare journal entries to record each of the following transactions of a merchandising company. The…
A: Perpetual inventory system is that system under which all purchases and sales related to inventory…
Q: Aqua-fuel Ltd is a fast-growing marine biotech company operating in the ASEAN region. The following…
A: Earning per share and dilutive earning per share both are a method of analyzing the financial…
Q: A city transfers cash of $90,000 from its general fund to start construction on a police station.…
A: Particulars Debit credit Cash 1800000 Bonds payable 1800000 ( being to record Bonds…
Q: Design a salary slip for the month of December 2021 with information given below. Fixed vs variable…
A: A salary slip, often known as a payslip, is a periodic document delivered by a business to its…
Q: Heather pays $5,000 to the institution in return for the chance to purchase football season tickets.…
A: Heather donates $5,000 to the university in exchange for the right to purchase tickets for the…
Q: impairment losses must be assessed by companies on a annual basis
A: Impairment loss is an amount by which carrying value is exceeds recoverable amount. At the end of…
Q: Jacobs is considering the purchase of a new machine for $10,700 that has a life of 6 years and would…
A: Present Value- The value of an investment or an amount today is referred to as its present value. It…
Q: Boom has damaged materials of 2,000 units with cost of 200,000. If rework, additional cost is 20,000…
A: Cost of goods sold is the total of all direct Cost of producing the goods sold by a company like…
Q: Compute basic and diluted earnings per share for the year ended December 31, 2021.
A: Basic EPS = (Net Income - Preferred Dividend )/ Outstanding Common stock Diluted EPS =…
Q: A company reports the following: Cost of goods sold $2,263,000 Average inventory 182,500…
A: Introduction: Inventory turnover is a financial ratio that shows how frequently a company's…
Q: What is meant by the term notes payable?
A: Notes payable is an account that details the specifics of a borrowed amount in note form. Its a…
Q: What will be the expected return and the beta of your portfolio after you purchase the new stock
A: Expected return is the return which is the return which has been expected by the investor to earn…
Q: On December 31, 2022, Ditka Incorporated had Retained Earnings of $271,800 before its closing…
A: Closing entries are prepared at the year end while preparing financial statements. It is through the…
Q: 2. Please work out the following financial ratios for Windswept, Inc. a) What is the days' sales in…
A: As multiple questions have been posted, as per the guidelines only the first three sub-parts will be…
Q: Prepare a complete service cost allocation report with details using the following method:…
A: total overhead of admin dept= p150000 + 20% overhead of IT dept…
Q: A taxpayer received during the taxable year the following passive income derived from within the…
A: The income is the income earned without the use of time and labor of the taxpayer. Passive income…
Q: 16. Elaine Company experienced the following changes in selected accounts for the current year as…
A: Answer - Calculation of Total amount of Cash was Received from customer during the year -…
Q: Parker's chief financial officer (CFO) wishes to determine the effects that a change in the value of…
A: As the earlier question does not solve the forth part as per our policy and nothing is specified by…
Q: A written code of ethics is a document for reference: it is never actively enforced or practiced in…
A: Disclaimer: "Since you have asked multiple questions in a single question so we answered the first…
Q: Jurvin Enterprises is a manufacturing company that had no beginning inventories. A subset of the…
A: Ledgers - After recording transactions in the journal next step is to transfer them into ledgers.…
Q: I need help with parts 3 and 4. See attachements below for template. Sunblessed Juice Company sells…
A: Profit maximization is the main aim of any entity. The profit can be maximized by performing two…
Q: M. Suave Inc. was organized on January 1, 2018 with authorized ordinary share capital of P…
A: A corporation's stock shares are measured in shares. Shares serve as a financial asset for certain…
Q: Ahmad needs $7000 for a future project. He can invest $5000 now at an annual rate of 13.5%,…
A: There are two type of interest being earned on investments. One is simple interest and other is…
Q: On July 1, 2019, Hart signed an agreement to operate as a franchisee of Ace Printers for an initial…
A: On July 1, 2019, Hart signed an agreement to operate as a franchisee of Ace Printers for an initial…
Q: B) In term of depreciation, give summery notification about each method within graphical examples?
A: In accounting, depreciation refers to spreading a tangible asset's cost over its useful life.…
Q: perpetual equivalent annual worth
A: Annual worth refers to the net of all the benefits and the expenses which are incurred in the…
Q: Following are selected accounts for Gemini Corporation and Mars Company as of December 31, 2019.…
A: Introduction: Common stocks are stock exchange-traded shares of ownership in a firm. The two most…
Q: B, C D are partners in a firm. Their Balance Sheet as on 31/12/2021 is as follows: Liabilities R.O…
A: Calculation of amount payable to the legal representative of C :- Particulars Amount C's…
Q: On January 1, 20X4, Passive Heating Corporation paid $104,000 for $100,000 par value, 9 percent…
A: A consolidated statement is a combined financial statement of the company and its all subsidiary and…
Q: How would a client re-contribute a coronavirus-related payout to their individual retirement
A: A distribution is coronavirus-related if it fits all three of the following criteria:• It can be…
Q: Blossom Limited purchased a machine on account on April 1, 2021, at an invoice price of $365,470. On…
A: Depreciation is a reduction in the value of asset due to its use or wear and tear. Cost of an asset…
Q: Aqua-fuel Ltd is a fast-growing marine biotech company operating in the ASEAN region. The following…
A: Earning per share is the earnings calculated to be divided amongst the common shareholders only. The…
Q: Instructions 1. Journalize entries for transactions (a) through (i), using the following account…
A: Journal entries for the above transactions
Q: Compute the amount to be paid for each of the four separate invoices assuming that all invoices are…
A: Introduction:- Discount term "2/10, n/60" means If the invoice is paid within 10 days of its date, a…
Q: A 10,000 loan is to be paid of in 10 equals payments. The annual intersect is 15% How much interest…
A: Interest @15% should be calculated on the outstanding balance of the loan at the beginning of the…
Step by step
Solved in 2 steps
- 13. Indang Company requires 40,000 kilos of soya beans each month in its operations. To eliminate the price risk associated with the purchase of soya beans, on December 1, 2011, Indang entered into a futures contract as a cash flow hedge to buy 40,000 kilos of soya beans at P150 per kilo on March 1, 2012. The market price on December 31, 2011 and March 1, 2012 is P160 per kilo. The appropriate discount rate is 9% and the present value of 1 at 9% for one period is 0.917. What amount should be recognized by Indang Company on December 31, 2011 as derivative asset or liability? a. 400,000 asset b. 400,000 liability c. 366,800 asset d. 366,800 liabilityMinetech Resources Berhad anticipates the need to purchase 80,000 bushels of soybeans in six months to use in their products. The current cash price for soybeans is RM5.50 a bushel. A six-month futures contract for soybeans can be purchased at RM5.53. Show all your working steps. i)Explain why Minetech Resources Berhad might need to purchase futures contracts to hedge their position. ii)To completely hedge their exposure, how many contracts will they need to purchase? Soybeans trade in 5,000-bushel contracts. iii)If the cash price of soybeans ends up at RM5.75 per bushel after six months, by how much will the actual cost of 80,000 bushels of soybeans have gone up? iv)After the futures contracts are closed outsold at RM5.75, what will be the gain on the futures contracts? v)Considering the answers to parts (iii) and (iv), what is their net position?Choc Full of Good Inc., a producer of powdered hot chocolate, has just received a large order that will require the purchase of 800 metric tons of cocoa in 3 months. The current spot price of cocoa is US $3,055 per metric ton. The standard deviation of the change in spot cocoa price is 0.2. Mr. Dulce, the CFO of Choc Full, is considering a minimum-variance hedge of this future cocoa purchase using the three-month cocoa futures contract. The contract size is 10 metric tons. The standard deviation of the change in cocoa futures price is 0.25. The covariance between the change in the spot and futures cocoa price is 0.035. The annually compounded interest rate faced by the company is 5%, the three-month storage cost is $2.5 per metric ton, and the convenience yield is $0.5 per metric ton. a. What is the futures price per metric ton of cocoa? b. Should the company long or short cocoa futures?
- 14. Naga Company produces bottled grape juice. Grape juice concentrate is typically bought and sold by the pound. Naga uses 50,000 pounds of grape juice concentrate each month. On November 1, 2011, Naga entered into a grape juice concentrate futures contract as a cash flow hedge to buy 50,000 pounds of concentrate on February 1, 2012 at a price of P50 per pound. The market price on December 31, 2011 and February 1, 2012 of the grape juice concentrate is P38 per pound. The appropriate discount rate is 11%. The periodic system is used. What amount should be recognized by Naga Company on December 31, 2011 as derivative asset or liability? a. 540,540 asset b. 540,540 liability c. 600,000 liability d. 600,000 assetXYZ flour company is planning to buy wheat for the next year’s production. 10,000 bushels of wheat will be purchased each quarter, on the 15th of January, April, July, and October in 2022. It wants to lock the wheat price using a futures contract, and at the same time use a swap to prepare the expenditure. The spot price of wheat today (April 15, 2021) is $3.1 per bushel, and the company enters futures contracts today. The prevailing interest rate is 1.5%, compounded continuously. Recall that each futures contract is for 5000 bushels and assume no storage cost of wheat. (a) If the company uses a prepaid swap, what is the prepayment? (b) If the company uses a plain vanilla swap for the quarterly purchase next year, what is the fixed amount?A trader buys two July futures contracts on frozen orange juice concentrate. Each contract is for the delivery of 15,000 pounds. The current futures price is 160 cents per pound, the initial margin is $6,000 per contract, and the maintenance margin is $4,500 per contract. What price change would lead to a margin call? Under what circumstances could $2,000 be withdrawn from the margin account?
- A farmer shorts cocoa futures for 500 tons at RM6,000 per ton. The exchange requires him to post RM300,000 as the initial margin, and sets the maintenance margin at RM250,000. At what price change the margin call level will be triggered? What is the margin call price?The spot price for smoked salmon is $5,000 per ton and its six-month futures price is $4,800. The monthly interest rate is .0025 (.25%). What is the average monthly net convenience yield on smoked salmon for the next six months? If you are a manager of Bread&Circusand need 10 tons of smoked salmon in six months. How can you avoid the risk in the price of smoked salmon over the next six months using futures? Suppose that your net convenience yield for smoked salmon is 1.2%. How does this change your hedging strategyA company enters into a short futures contract to sell 25,000 units of a commodity for 70 cents per unit. The initial margin is $4,000 and the maintenance margin is $3,000. What is the futures price per unit above which there will be a margin call? O 76 cents O 66 cents 74 cents O 78 cents
- You are the buyer for a cereal company and you must buy 80,000 bushels of corn next month. The futures contracts on corn are based on 5,000 bushels and are currently quoted at 415′0 cents per bushel for delivery next month. If you want to hedge your cost, you should _____ contracts at a cost of _____ per contract.A company enters into a short futures contract to sell 10,000 units of a commodity for $0.5 per unit. The initial margin is $5000 and the maintenance margin is $3000. When will there be a margin call? Question 1Answer a. As soon as the futures price exceeds $0.7 per unit. b. As soon as the futures price exceeds $0.8 per unit. c. As soon as the futures price exceeds $0.5 per unit. d. As soon as the futures price exceeds $0.6 per unit.After collecting basis data, a canola grower feels that 775 dollars per tonne is a realistic forward cash price for the fall’s crop since November canola futures are trading at 800 dollars per tonne. To hedge, the producer purchases an at-the-money PUT for 20 dollars tonne on May 19th. While the hedge was in place, canola producers in Europe experienced crop failures and consumers in China began to import large quantities of canola produced in Canada. By October 15th, November canola futures had risen to 825 dollars per tonne. However, because of increased local production, the basis in the grower’s region weakened by 5 dollars tonne. On October 15th the grower sold his canola in the cash market. Use T-accounts to answer the following: 1. What is the net selling price from hedging using the PUT?
