What is the company's inventory in the opening balance sheet? What is the amount of the company's financial assets in the opening balance sheet? What is the company's working capital in the opening balance sheet?
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- What is the company's inventory in the opening balance sheet?
- What is the amount of the company's financial assets in the opening balance sheet?
- What is the company's
working capital in the opening balance sheet? - Calculate the company's total revenue.
- Calculate the sales margin for the fiscal year.
- Calculate the EBIT (operating profit) for the fiscal year.
- Calculate the net income (earnings) for the fiscal year.
- Calculate the cash flow from investments (CFinv) for the fiscal year.
- Calculate the cash flow from financing (CFfin) for the fiscal year.
- Calculate the change in working capital during the fiscal year.
- Calculate the cash flow from operations (CFops) for the fiscal year.
- Calculate the change in cash assets during the fiscal year.
- Calculate the change in financial assets during the fiscal year.
- Calculate the total amount of the closing balance sheet.
- Calculate the ROCE (Return on Capital Employed) describing the profitability of the operations.
- Calculate the gearing percentage (net indebtedness) from the closing balance sheet, depicting the company's solvency.
- Calculate the
current ratio from the closing balance sheet, depicting the company's liquidity.
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- Clonal, Inc., a biotechnology company, developed and patented a diagnostic product called Trouver. Clonal purchased some research equipment to be used exclusively for Trouver and subsequent research projects. Clonaldefeated a legal challenge to its Trouver patent, and began production and marketing operations for the project.Corporate headquarters’ costs were allocated to Clonal’s research division as a percentage of the division’ssalaries.Required:1. How should the equipment purchased for Trouver be reported in Clonal’s income statements and statementsof financial position?2. a. Describe the accounting treatment of research and development costsCody Paper Mill produces various grades of paper sheeting for industrial uses. All of the following may be considered an initiative undertaken as a part of the company’s CSR efforts except a. investing funds in equipment to reduce greenhouse gas emissions from its production facilities b. improving worker health and safety efforts to reduce injuries in the workplace c. expanding the customer base to increase the net income of the company d. planting trees to replace those used by the paper-making processCryogenics Inc., is a leading developer, designer, and manufacturer of tanks, moveable containers, and trailers for the most efficient storage and distribution of liquid helium and hydrogen. Cryogenics started as a private company when founded in 1960 by industrialist William Hodges. It has since gone public and has grown to support a staff 250 employees between its Tulsa, Oklahoma, and Prague, Czech Republic, operations to meet the global demand for liquid helium and hydrogen storage with the highest performance ratings in the industry. The following describes Cryogenics fixed asset system. Asset acquisition begins when the department manager recognizes the need to obtain or replace an existing fixed asset. The manager prepares two copies of a purchase requisition; one is filed in the department, and one is sent to the purchasing department. The purchasing department uses the purchase requisition to prepare three copies of a purchase order. One copy of the purchase order is sent to the supplier, another copy is sent to the AP department, and the third copy is filed in the purchasing department. Vendors ship the ordered items to Cryogenics receiving department along with the packing slip. The receiving clerk then prepares three copies of a receiving report. One copy of the receiving report is sent to AP, one is sent to the department manager, and one is sent to the inventory department clerk who uses it to update the inventory records. A few days later the vendor sends an invoice to the AP clerk, which the clerk reconciles with the purchase order and receiving report. The AP clerk inputs the information into the computer terminal, posts the liability, updates the purchase journal, and prints out hard copies of a journal voucher and cash disbursement voucher. The journal voucher is sent to the general ledger department, and the cash disbursement voucher and the suppliers invoice are sent to the cash disbursements department. The purchase order and the receiving report are filed in the AP department. Using the information from the suppliers invoice and the cash disbursement voucher, the cash disbursements clerk prepares a hard copy check in payment of the liability, sends the check to the vendor, and posts it to the check register. Finally, the clerk sends the cash disbursement voucher to the general ledger department. Periodically, the department manager adjusts the fixed asset inventory subsidiary account balances to reflect asset depreciation and sends an asset status summary to the general ledger. The general ledger department clerk reconciles the cash disbursements voucher, the journal voucher, and the asset status summary, and posts to the general ledger accounts. Required a. Prepare the REA model to support the fixed asset procedures. b. Show the cardinalities for all associations. c. List the tables, keys, and attributes needed to implement this model in a relational database.
- NextG Limited is a leading manufacturer of automotive components. It supplies to the original equipment manufacturers as well as the replacement market. Its projects typically have a short life as it introduces new models periodically. You have recently joined NextG Limited as a financial analyst reporting to Mr. Atiamoh, the CFO of the company. He has provided you the following information about two mutually exclusive projects. A and B, that are being considered by the Executive Committee of NextG Limited:Project A is an extension of an existing line. Its cash flow will decrease over time. Project B involves a new product. Building its market will take some time and hence its cash flow will increase over time.The expected net cash flows of the two mutually exclusive projects are as follows. Mr. Atiamoh believes that all the two projects have risk characteristics similar to the average risk of the firm and hence NextG’s cost of capital of 10 percent will apply to them and both…REA MODEL—CRYOGENICS' FIXED ASSET SYSTEM Cryogenics Inc. is a leading developer, designer, and manufacturer of tanks, moveable containers, and trailers for the most efficient storage and distribution of liquid helium and hydrogen. Cryogenics started as a private company when founded in 1960 by industrialist William Hodges. It has since gone public and has grown to support a staff 250 employees between its Tulsa, Oklahoma, and Prague, Czech Republic, operations to meet the global demand for liquid helium and hydrogen storage with the highest performance ratings in the industry. The following describes Cryogenics' fixed asset system. Asset acquisition begins when the department manager recognizes the need to obtain or replace an existing fixed asset. The manager prepares two copies of a purchase requisition; one is filed in the department, and one is sent to the purchasing department. The purchasing department uses the purchase requisition to prepare three copies of a purchase order.…[The following information applies to the questions displayed below.] Biondi Industries is a manufacturer of chemicals for various purposes. One of the processes used by Biondi produces HTP-3, a chemical used in hot tubs and swimming pools; PST-4, a chemical used in pesticides; and RJ-5, a product that is sold to fertilizer manufacturers. Biondi uses the net-realizable-value method to allocate joint production costs. The ratio of output quantities to input quantities of direct material used in the joint process remains consistent from month to month. Biondi Industries uses FIFO (first-in, first-out) in valuing its finished-goods inventories. Data regarding Biondi's operations for the month of October are as follows. During this month, Biondi incurred joint production costs of $2,250,000 in the manufacture of HTP-3, PST-4, and RJ-5. Finished goods inventory in gallons (October 1) October sales in gallons October production in gallons Additional processing costs Final sales value per…
- Clonal Inc., a biotechnology company, developed and patented a diagnostic product called Trouver. Clonal purchased some research equipment to be used exclusively for Trouver and other research equipment to be used on Trouver and subsequent research projects. Clonal defeated a legal challenge to its Trouver patent and began production and marketing operations for the product. Clonal allocated its corporate headquarters’ costs to its research division as a percentage of the division’s salaries. Required: What is the definition of research and of development as defined by GAAP? Briefly indicate the justification for the existing GAAP relating to R&D costs. Explain how Clonal should report the equipment purchased for Trouver on its income statements and balance sheets. Explain how Clonal should report the legal costs incurred in defending Trouver’s patent on its statement of cash flows. Explain how Clonal should classify its corporate headquarters’ costs allocated to the…Lansing Electronics Inc. manufactures a variety of printers, scanners, and fax machines in itstwo divisions: the PSF Division and the Components Division. The Components Division produces electronic components that can be used by the PSF Division. All the components thisdivision produces can be sold to outside customers. However, from the beginning, nearly allof its output has been used internally. The current policy requires that all internal transfers ofcomponents be transferred at full cost.Recently, Cam DeVonn, the chief executive officer of Lansing Electronics, decided to investigate the transfer pricing policy. He was concerned that the current method of pricing internaltransfers might force decisions by divisional managers that would be suboptimal for the firm. Aspart of his inquiry, he gathered some information concerning Component Y34, which is usedby the PSF Division in its production of a basic scanner, Model SC67.The PSF Division sells 40,000 units of Model SC67 each year…H-Robotic Incorporated (HRI), a world leader in the robotics industry, produces a line of industrial robots and peripheral equipment that performs many routine assembly-line tasks. However, increased competition, particularly from Japanese firms, has caused HRI's management to be concerned about the company's growth potential in the future. HRI's research and development department have been applying the industrial robot technology to develop a line of household robots. The household robot is designed to function as a maid, mainlyperforming such tasks as vacuuming floors and carpets. This effort has nowreached the stage where a decision on whether to go forward with production must be made. The engineering department has estimated that the firm would need a new manufacturing plant with the following construction schedule: The plant would require a 35-acre site, and HRI currently has an option to purchase a suitable tract of land for $2.5 million. The building construction would begin…
- Raindeer PLC is a highly profitable electronics company that manufactures a range of innovativeproducts for industrial use. Its success is based to a large extent on the ability of the company’sdevelopment group to generate new ideas that result in commercially viable products. The latestof these products is just about to undergo some final tests and a decision has to be taken whetheror not to proceed with an investment in the facilities required for manufacturing. You have beenasked to undertake an evaluation of this investment.The company has already spent £750,000 on the development of this product. The final testing ofthe product will cost about £40,000. The head of the development group is very confident that thetests will be successful based on the work already undertaken. Another company has alreadyoffered Raindeer £1.10 million for the product’s patent and an exclusive right to its manufactureand sale, even though the final tests are still to be completed. This sum being…Extreme Inc. is a newly established enterprise. It was set up by an entrepreneur who is generally interested inthe business of providing engineering and operational support services to aircraft manufacturers. ExtremeInc., through the contacts of its owner, received a confirmed order from a well-known aircraft manufacturerto develop new designs for ducting the air conditioning of their aircraft. For this project, Extreme Inc.needed funds aggregating to $1 million. It was able to convince venture capitalists and was able to obtainfunding of $1 million from two Silicon Valley venture capitalists. The expenditures Extreme Inc. incurred inpursuance of its research and development project follow, in chronological order: • January 15, 20X5: Paid $175,000 toward salaries of the technicians (engineers and consultants) • March 31, 20X5: Incurred $250,000 toward cost of developing the duct and producing the test model • June 15, 20X5: Paid an additional $300,000 for revising the ducting process…ABC PLC is a highly profitable electronics company that manufactures a range of innovative products for industrial use. Its success is based to a large extent on the ability of the company’s development group to generate new ideas that result in commercially viable products. The latest of these products is just about to undergo some final tests and a decision has to be taken whether or not to proceed with an investment in the facilities required for manufacturing. You have been asked to undertake an evaluation of this investment.The company has already spent £750,000 on the development of this product. The final testing of the product will cost about £40,000. The head of the development group is very confident that the tests will be successful based on the work already undertaken. Another company has already offered Raindeer £1.10 million for the product’s patent and an exclusive right to its manufacture and sale, even though the final tests are still to be completed. This sum being…