Calculate the annual interest payment on the bonds. Calculate the amount of interest paid on each semi-annual payment. Calculate the total amount of interest to be paid over the 8 years. Were the bonds issued at a premium or a discount?

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Market interest rates

On January 1, 2020, $10 million worth of 8-year bonds with a stated rate of 8% were issued; interest is paid semi-annually on June 30th and Dec 31st. The market interest rates were 7% when the bonds were issued.

  • Calculate the annual interest payment on the bonds.
  • Calculate the amount of interest paid on each semi-annual payment.
  • Calculate the total amount of interest to be paid over the 8 years.
  • Were the bonds issued at a premium or a discount?

On January 1, 2020, $4 million worth of 6-year bonds with a stated rate of 9% were issued; interest is paid quarterly on March 31, June 30th, Sept 30th, and Dec 31st. The market rates were 11% when the bonds were issued.

  • Calculate the annual interest payment on the bonds.
  • Calculate the amount of interest paid on each quarterly payment.
  • Calculate the total amount of interest to paid over the 6years.
  • Were the bonds issued at a premium or a discount?

If Reliant used IFRS as does its competitor, how would the items described be reported differently?

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Case 13-3

Required: I. Calculate the current ratio for IGF for 2024. The average ratio for the stocks listed on the New York Stock Exchange in a comparable time period was 1.5. What information does your calculation provide an investor? 2. Calculate IGF’s acid-test or quick ratio for 2024. The ratio for the stocks listed on the New York Stock Exchange in a comparable time period was .30. What does your calculation indicate about IGF’s liquidity?
As a second-year financial analyst for A.J. Straub Investments, you are performing an initial analysis on Reliant Pharmaceuticals. A difficulty you’ve encountered in making comparisons with its chief rival is that Reliant uses U.S. GAAP, and the competing company uses International Financial Reporting Standards. Some areas of concern are the following: I. Reliant has been designated as a potentially responsible party by the United States Environmental Protection Agency with respect to certain waste sites. These claims are in various stages of administrative or judicial proceedings and include demands for recovery of past governmental costs and for future investigations or remedial actions. Reliant accrues costs associated with environmental matters when they become probable and reasonably estimable. Counsel has advised that the likelihood of payments of about $70 million is slightly more than 50%. Accordingly, payment is judged reasonably possible, and the contingency was disclosed in a note. 2. Reliant had $10 million of bonds issued in 1995 that mature in February 2025. On December 31, 2024, the company’s fiscal year-end, management intended to refinance the bonds on a long-term basis. On February 7, 2025, Reliant issued $10 million of 20-year bonds, applying the proceeds to repay the bond issue that matured that month. The bonds were reported in Reliant’s balance sheet as long-term debt. 3. Reliant reported in its 2024 financial statements a long-term contingency at its face amount rather than its present value even though the difference was considered material. The reason the cash flows were not discounted is that their timing is uncertain.

Required:
If Reliant used IFRS as does its competitor, how would the items described be reported differently?

Would Stellar capitalize or expense the cost of the robotic pizza-making machine? Would Stellar capitalize or expense the cost of the truck to house the robotic pizza-making machine?

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What costs would the Stellar Pizza robotic pizza restaurant capitalize or expense?

Stellar Pizza has a pizza–making robotic machine that was built by three former SpaceX engineers. More than 23 former SpaceX employees work at Stellar Pizza. The pizza–making robot can produce
a pizza every 45 seconds. A pizza can be customized, baked, and topped in less than five minutes by the robotic machine. Stellar Pizza will be in operation in the spring of 2022 in Los Angeles. The pizza–making robot will fit into the back of a truck. View this video (3:36 minutes) that shows the Stellar Pizza robotic machine in action.

Questions
1. Would Stellar capitalize or expense the cost of the robotic pizza–making machine?
2. Would Stellar capitalize or expense the cost of the truck to house the robotic pizza–making machine?
3. Would Stellar capitalize or expense the cost of the ingredients used to top the pizzas (i.e., pepperoni, mushrooms, onions, and cheese)?
4. If Stellar needs to replace the controller cables after the robotic machine is used for 2,000 hours, is the cost of those controller cables capitalized or expensed by Stellar? Why does it matter?
5. What is the impact of capitalizing an item on the balance sheet? On the income statement?
6. What is the impact of expensing an item on the balance sheet? On the income statement?

Explain formula for individual’s income tax and business entities. Arrange relative tax liability by filing status from lowest to highest? Identify Items that are not Income under US income tax law. ?

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Income tax and business entities

Q1. Explain formula for individual’s income tax and business entities. (five marks)

Q2. Arrange relative tax liability by filing status from lowest to highest? (2.5 marks)

Q3. Contrast concepts of Income from accounting , economic and tax perspectives.( use your own words ) (five marks)

Q4. Identify Items that are not Income under US income tax law. ? (2.5 marks)

 

Explain interview methods and the areas of concern in conducting them. Give example for each method. What are the characteristics of a good sample? Explain why the publication in a Refereed journal articles is more difficult than Professional journal articles.

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Assignment Questions (15Marks)

Question 1: (5 MARKS)

  1. Prepare a questionnaire (Minimum 10 questions) for a survey/interview on the question you came up from the activity you did in assignment 1 that is
  2. Q2( Write a description of the research problem you propose to investigate and explain why you chose this topic.

Question 2.   (5 Marks)

Explain interview methods and the areas of concern in conducting them. Give example for each method.

Question 3. (2.5 Mark)

Q2. What are the characteristics of a good sample?

Question 4.  (2.5 Marks)

Q4.  Explain why the publication in a Refereed journal articles is more difficult than Professional journal articles.

Describe the most important takeaway from the book The Number for you and why this was the most important takeaway for you.

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The Number

In your essay, describe the most important takeaway from the book The Number for you and why this was the most important takeaway for you.

Your essay should not be a summary of the book. Instead, it should describe your personal perspective — that is, what resonated with you the most? What is (or are) the key takeaway(s) for you personally? Did reading the book change your perspective on any aspect of our capital markets or how you will participate (as an investor) going forward?

What happens when the capital structure changes? How are the gains from mergers distributed between the shareholders of the acquired and acquiring firms?

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Corporate finance

1- What happens when the capital structure changes?

2- How are the gains from mergers distributed between the shareholders of the acquired and acquiring firms?

3- What options may be provided in financial securities?

 

Why did many people want to migrate to the west, and where did those Western settlers come from? Describe the contrasting cultural influences they brought to the region.

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Response questions about Westward expansion

  1. Moving West (258-260) – Why did many people want to migrate to the west, and where did those Western settlers come from? a. Describe the contrasting cultural influences they brought to the region.
  2. What was the Homestead Act and why was it such a significant factor in the westward migration?
  3. Conflict with Native Peoples (261-267)

 

A Clash of Beliefs – In Lesson 1 of this course we discussed the role of beliefs in determining how people act and behave. We also looked at how many conflicts between different groups of people were due to their vastly different beliefs about themselves, to other peoples and to the land. The question was asked: “What beliefs influenced Europeans’ views of themselves and other cultures, and how do these beliefs affect their actions?” These inevitable conflicts of beliefs have shaped American history. This question remains relevant as we study the continued conflicts between the native peoples and the mostly white settlers as the latter moved westward. Keep this idea of beliefs in mind as you answer these questions.

  1. What caused changes in the life of the Plains Indians?

 

Compare the different depreciation methods. Give an example of how companies depreciate their plant assets under each method. Why is it important for companies to implement good internal control? What are the principles of internal control? Explain your answer.

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Depreciation methods

Instructions – READ THEM CAREFULLY

  • The Assignment must be submitted on Blackboard (WORD format only) via allocated folder.
  • Assignments submitted through email will not be accepted.
  • Students are advised to make their work clear and well presented; marks may be reduced for poor presentation. This includes filling your information on the cover page.
  • Students must mention question number clearly in their answer.
  • Late submission will NOT be accepted.
  • Avoid plagiarism, the work should be in your own words, copying from students or other resources without proper referencing will result in ZERO marks. No exceptions.
  • All answered must be typed using Times New Roman (size 12, double-spaced) font. No pictures containing text will be accepted and will be considered plagiarism).
  • Submissions without this cover page will NOT be accepted.

Assignment Question(s):    (Marks15)

Q1. Compare the different depreciation methods. Give an example of how companies depreciate their plant assets under each method.     (Marks5)

Q2. Why is it important for companies to implement good internal control? What are the principles of internal control? Explain your answer.   (Marks5)

Q3. A company wants to use the allowance method to account for bad debts. You are assigned to explain to the company the different ways it can use to estimate bad debts.    (Marks5)

 

 

Long-lived tangible asset are associated with either depreciations, impairments or depletions. Explain why companies revalue such assets on an annual basis, and give examples on depreciations, impairments and depletions.

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Financial Accounting

Q1- IFRS requires capitalizing actual interest (with modification) in self-constructed assets. What are the five steps necessary to meet IFRS requirement.

Q2- A company abandons the historical cost principle and adopts the LCNRV method of valuing inventory. Explain the process of LCNRV

Q3- Long-lived tangible asset are associated with either depreciations, impairments or depletions. Explain why companies revalue such assets on an annual basis, and give examples on depreciations, impairments and depletions.