ConditionalStatementsWorksheetAnswers

合集下载

条件处理英语

条件处理英语Conditional statements are an essential aspect of programming, allowing developers to create programs that execute different lines of code based on specific conditions. In this article, we will discuss the importance ofconditional statements, the different types of conditionals, and their applications in programming.Importance of Conditional Statements:Conditional statements play a vital role in programming, as they enable developers to create programs that can handle complex scenarios. Without conditional statements, programs would execute the same set of statements each time they run, regardless of the input or other conditions. By using conditional statements, developers can create programs that make decisions based on specific conditions and execute different sets of statements accordingly. This enhances program flexibility and enables developers to create more efficient and effective programs.Types of Conditional Statements:There are four major types of conditional statements in programming:1. IF: The IF statement executes a set of statements ifa specified condition is true. If the condition is false, the statements are skipped.2. IF-ELSE: The IF-ELSE statement executes one set of statements if the condition is true, and a different set if the condition is false.3. ELSE-IF: The ELSE-IF statement executes a set ofstatements if the previous IF or ELSE-IF statements are false and the current condition is true.4. SWITCH: The SWITCH statement executes a set of statements based on the value of a specified variable or expression.Applications of Conditional Statements:Conditional statements are used extensively in programming, appearing in almost every program or application.1. Validation: Developers use conditional statements to validate user input. If a user enters data that doesn't meet specific criteria, the program can display an error message.2. Looping: While loops, do-while loops, and for loopsall make use of conditional statements to determine when to stop iterating through a set of statements.3. Error Handling: Developers use conditional statements to handle errors that occur during program execution. If an error is detected, the program can execute specific error handling code.4. Decision Making: Conditional statements enable developers to create programs that make decisions based on specific conditions. For example, a program might check the time of day and execute different sets of statements based on whether it's morning or afternoon.Conclusion:Conditional statements are a critical aspect of programming, and every developer should have a clear understanding of their importance and applications. By using these statements, developers can create more flexible and efficient software that is better equipped to deal with complex scenarios.。

商业银行管理系统ROSE7e课后问题详解chapter_06

商业银行管理系统ROSE7e课后问题详解chapter_06CHAPTER 6MEASURING AND EVALUATING THE PERFORMANCE OF BANKS AND THEIRPRINCIPAL COMPETITORSGoal of This Chapter: The purpose of this chapter is to discover what analytical tools can be applied to a bank’s financial statements so that management and t he public can identify the most critical problems inside each bank and develop ways to deal with those problemsKey Topics in This ChapterStock Values and Profitability RatiosMeasuring Credit, Liquidity, and Other RisksMeasuring Operating EfficiencyPerformance of Competing Financial FirmsSize and Location EffectsThe UBPR and Comparing PerformanceChapter OutlineI. Introduction:II. Evaluating a Bank's PerformanceA. Determining Long-Range ObjectivesB. Maximizing The Value of the Firm: A Key Objective for Nearly AllFinancial-Service InstitutionsC. Profitability Ratios: A Surrogate for Stock Values1. Key Profitability Ratios2. Interpreting Profitability RatiosD. Useful Profitability Formulas for Banks and Other Financial Service CompaniesE. Breaking Down Equity Returns for Closer AnalysisF. Break-Down Analysis of the Return on AssetsG. What a Breakdown of Profitability Measures Can Tell UsH. Measuring Risk in Banking and Financial Services1. Credit Risk2. Liquidity Risk3. Market Risk4. Interest-Rate Risk5. Operational Risk6. Legal and Compliance Risk7. Reputation Risk8. Strategic Risk9. Capital RiskI. Other Goals in Banking and Financial Services ManagementIII. Performance Indicators among Banking’s Key CompetitorsIV. The Impact of Size on PerformanceA. Size, Location and Regulatory Bias in Analyzing The Performance of Banks andCompeting Financial InstitutionsB. Using Financial Ratios and Other Analytical Tools to Track BankPerformance--The UBPR.V. Summary of the ChapterAppendix to the Chapter - Improving the Performance of Financial Firms Through Knowledge: Sources of Information on the Financial-Services IndustryConcept Checks6-1. Why should banks and other corporate financial firms be concerned about their level of profitability and exposure torisk?Banks in the U.S. and most other countries are private businesses that must attract capital from the public to fund their operations. If profits are inadequate or if risk is excessive, they will have greater difficulty in obtaining capital and their funding costs will grow, eroding profitability. Bank stockholders, depositors, and bank examiners representing the regulatory community are all interested in the quality of bank performance. The stockholders are primarily concerned with profitability as a key factor in determining their total return from holding bank stock, while depositors (especially large corporate depositors) and examiners typically focus on bank risk exposure.6-2. What individuals or groups are likely to be interested in these dimensions of performance for a bank or other financial institution?The individuals or groups likely to be interested in bank profitability and risk include other banks lending to a particular bank, borrowers, large depositors, holders of long-term debt capital issued by banks, bank stockholders, and the regulatory community.6-3. What factors influence the stock price of a financial-services corporation?A bank's stock price is affected by all those factors affecting its profitability and risk exposure, particularly its rate of return on equity capital and risk to shareholder earnings. A bank can raise its stock price by creating an expectation in the minds of investors of greater earnings in the future, by lowering the bank's perceived risk exposure, or by a combination of increases in expected earnings and reduced risk.6-4. Suppose that a bank is expected to pay an annualdividend of $4 per share on its stock in the current period and dividends are expected to grow 5 percent a year every year, and the minimum required return to equity capital based on the bank's perceived level of risk is 10 percent. Can you estimate the current value of the bank's stock?In this constant dividend growth rate problem the current value of the bank's stock would be:P o = D1 / (k – g) = $4 / (0.10 – 0.05) = $80.6-5. What is return on equity capital and what aspect of performance is it supposed to measure? Can you see how this performance measure might be useful to the managers of financial firms?Return on equity capital is the ratio of Net Income/Total Equity Capital. It represents the rate of return earned on the funds invested in the bank by its stockholders. Financial firms have stockholders, too who are interested in the return on the funds that they invested.6-6 Suppose a bank reports that its net income for the current year is $51 million, its assets totally $1,144 million, and its liabilities amount to $926 million. What is its return on equity capital? Is the ROE you have calculated good or bad? What information do you need to answer this last question?The bank's return on equity capital should be:ROE = Net Income = $51 million = .098 or 9.8 percentEquity Capital $1,444 mill.-$926 mill.In order to evaluate the performance of the bank, you have to compare the ROE to the ROE of some major competitors or some industry average.6-7 What is the return on assets (ROA), and why is it important? M ight the ROA measure be important to banking’skey competitor s?Return on assets is the ratio of Net Income/Total Assets. The rate of return secured on a bank's total assets indicates the efficiency of its management in generating net income from all of the resources (assets) committed to the institution. This would be important to banks and their major competitors.6-8. A bank estimates that its total revenues will amount to $155 million and its total expenses (including taxes) will equal $107 million this year. Its liabilities total $4,960 million while its equity capital amounts to $52 million. What is the bank's return on assets? Is this ROA high or low? How could you find out?The bank's return on assets would be:ROA = Net Income = $155 mill. - $107 mill. = 0.0096 or 0.96 percent T otal Assets $4,960 mill. + $52 mill.The size of this bank's ROA should be compared with the ROA's of other banks similar in size and location to determine if this bank's ROA is high or low relative to the average for comparable banks.6-9. Why do the managers of financial firms often pay close attention today to the net interest margin and noninterest margin? T o the earnings spread?The net interest margin (NIM) indicates how successful the bank has been in borrowing funds from the cheapest sources and in maintaining an adequate spread between its returns on loans and security investments and the cost of its borrowed funds. If the NIM rises, loan and security income must be rising or the average cost of funds must be falling or both. A declining NIM is undesirable because the bank's interest spread is being squeezed, usually because of rising interest costs on deposits and other borrowings and because of increased competition today.In contrast, the noninterest margin reflects the banks spread between its noninterest income (such as fees on deposits) and its noninterest expenses (especially salaries and wages and overhead expenses). For most banks the noninterest margin is negative. Management will usually attempt to expand fee income, while controlling closely the growth of noninterest expenses in order to make a negative noninterest margin less negative.The earnings spread measures the effectiveness of the bank's intermediation function of borrowing and lending money, which, of course, is the bank's primary way of generating earnings. As competition increases, the spread between the average yields on assets and the average cost of liabilities will be squeezed, forcing the bank's management to search for alternative sources of income, such as fees from variouss the bank offers.6-10. Suppose a banker tells you that his bank in the year just completed had total interest expenses on all borrowings of $12 million and noninterest expense of $5 million, while interest income from earning assets totaled $16 million and noninterest revenues added to a total of $2 million. Suppose further that assets amounted to $480 million of which earning assets represented 85 percent of total assets, while total interest-bearing liabilities amounted to 75 percent of total assets. See if you can determine this bank's net interest and noninterest margins and its earnings base and earnings spread for the most recent year.The bank's net interest and noninterest margins must be:Net Interest = $16 mill. - $12 mill. Noninterest = $2 mill. - $5 mill.Margin $480 mill. Margin $480 mill.=.00833 = -.00625。

4 Answer sheet for test paper of Chapter 11

Answer sheet for test paper of Chapter 11I.Fill in the table below by giving the corresponding English or ChineseequivalentsII.Decide whether the following statements are true (T) or false (F)1 T 2T 3F 4F 5T 6T 7T 8T 9T 10TIII.Explain the following terms.1.Character means clients’ willingness to pay debts.2.Capacity means how much money is reasonable for each payment3.Capital means clients’ total financial status.4.Collateral means clients’ willingness to provide guarantee/assets to obtain creditfrom the hotel.5.Condition means economic situations that might influence clients’payingcapacity.IV.Choose the best answer to complete each sentence according to the text. 1D 2C 3D 4B 5AV.Give brief answers to the following questions.1.Why do items have to be checked by Receiving Department?They check quantity, quality, size and other important particulars such as manufacture date, expiry date so neither Purchasing Staff nor Suppliers can take advantage of the hotel.If items are not up to standard, the Requisition Department will suffer and eventually the hotel’s products or services will be affected negatively.2.What factors does the AR have to evaluate in order to grant clients creditratings?Character, Capacity, Capital, Collateral, Condition.3.How does AR get clients’ information about credit?Actually there are many channels: clients’ profiles in the hotel, information provided by banks and credit brokers.4.How does AR pressure clients to pay the hotel?First of all, make the hotel credit policy known when clients make reservations or check in.Secondly, mail bills to clients on time. Often this job is neglected by the hotel but many customers and travel agencies who do not have account payable system rely on these notices to make payments.Last of all, make a policy that finds a balance between amount owing and difficulty in collecting. When it costs more to keep trying, it makes more sense to write off the debt.VI.Critical thinking questions.e three examples to illustrate how the hotel controls cost.If one department wants to make some flyers, they have to fill in an Artwork Requisition (AR). On one hand, Accounting Department can justify the expense in Communications; on the other hand, the Sales people know how much to charge clients who use posters / banners for functions in the hotel, enough that will cover the cost of the flyers.If it happens to be a VIP ’s birthday while staying in the hotel, the hotel sends him/her a complimentary birthday cake, we have to fill in a Cake Order Form. This same form is used for other situations such as hotel employees’ birthdays. Human Resources use this so Pastry staff in F&B know to prepare cakes which staff fetch themselves. If a customer wants to hold a birthday party in our hotel, Sales or F&B staff fill in this form for him/her and then charge accordingly.Sales people plus divisional /departmental heads often entertain clients, business related people, they also need to fill in an Entertainment Request and get approval from their superiors who make sure they aren’t entertaining family members/friends.2.What jobs does the General Cashier usually perform in the hotel?Mainly there are four parts:●Collect all money /checks deposited into the drop safe. This safe is inGeneral Cashier’s Room. Every morning GC opens and counts moneydeposited in this safe by departmental cashiers at the end of previous dayin the presence of a witness, this witness could either be GC’s colleagueor a Security Supervisor. Cash/checks are deposited in the bank afterfilling in a General Cashier’s Report.●Provide changes for departmental cashiers, handle foreign moneyexchange. GC performs surprise checks on Front Office and F&Bcashiers’ cash flow regularly to ensure control.●Reimbursement or make payments in cash or check after approval ofrelevant departmental heads and Financial Controller. Prepare receiptsand remittance control ledger for all cash and checks received and paid.●Safeguard money kept in the hotel by locking General Cashier’s roomfrom inside to prevent unauthorized entrance.GC performs other duties from time to time as instructed by his /her superior. GC follows department procedures and when a problem arises, reports it to a superior immediately.Another important aspect of GC’s work is to guide staff in daily money related work, ex., opening invoices for hotel customers.。

会计专业英语课后答案 Answer for lesson3

Answer for Chapter 33.1 Select the best answer for each of the following unrelated items1.c2. b3. b4. d5.b6. c7.c8.a9.b 10.b11d 12d 13b 14d 15 a 16d 17b 18 c 19 b 20c3.2Prepare an income statementWindsor Corporation had the information listed below available in preparing an income statement for the year ended December 31, 2X11. All amounts are before income taxes. Assume a 30% income tax rate for all items.Sales ₤ 600,000Income from operation of discontinued cement division ₤ 100,000Loss from disposal of cement division ₤ (80,000)Operating expenses ₤ 125,000Gain on sale of equipment ₤ 65,000Cost of goods sold ₤ 420,000EnquiredPrepare an income statement in good form which takes into account intra-period income tax allocation.SolutionWINDSOR CORPORA TIONIncome Statementor the Year Ended December 31, 2011 ———————————————————————————————————————————Sales ................................................................................................................. ₤600,000Cost of goods sold ............................................................................................. 420,000 Gross profit ........................................................................................................ 180,000 Operating expenses ............................................................................................ 125,000 Income from operations ..................................................................................... 55,000 Other income and expenseGain on sale of equipment ....................................................................... 65,000 Income before income taxes .............................................................................. 120,000 Income taxes ...................................................................................................... 36,000 Income from continuing operations ................................................................... 84,000 Discontinued operationsIncome from operation of discontinued cementdivision, net of $30,000 income taxes ................................................. ₤70,000Loss from disposal of cement division,net of $24,000 income tax savings ...................................................... (56,000) 14,000 Net income ......................................................................................................... ₤98,0003.3 Prepare the retained earnings statementThe balance in retained earnings on January 1, 20X1, for Blakely Inc., was $600,000. During the year, the corporation paid cash dividends of $70,000 and distributed a share dividend of $15,000. In addition, the company determined that it had overstated its depreciation expense in prior years by $50,000. Net income for 20X1 was $120,000.EnquiredPrepare the retained earnings statement for 20X1.SolutionBLAKEL Y INC.Retained Earnings StatementFor the Y ear Ended December 31, 20X1Balance, January 1 as reported $600,000 Correction for understatement of net incomein prior period (depreciation expense error) 50,000 Balance, January 1, as adjusted 650,000 Add: Net income 120,000770,000 Less: Cash dividends $70,000Share dividend 15,000 85,000 Balance, December 31 $685,0003.4 Prepare fiancial statementsThese financial statement items (in thousands) are for Chen Company at year-end, July 31, 2X11.Salaries payable ¥4,580 Note payable (long-term) ¥3,300Salaries expense 45,700 Cash 22,200Utilities expense 19,100 Accounts receivable 9,780Equipment 22,000 Accumulated depreciation 6,000Accounts payable 4,100 Dividends 4,000 Commission revenue 56,100 Depreciation expense 4,000Rent revenue 6,500 Retained earnings (1/1/2X11) 30,000Share capital-ordinary 16,200Enquired(a) Prepare an income statement and a retained earnings statement for the year.(b) Prepare a classified statement of financial position at July 31, 2X11.Solution(a) CHEN COMPANYIncome StatementFor the Year Ended July 31, 2X11 ———————————————————————————————————————————RevenuesCommission revenue .................................................................................... ¥56,100Rent revenue ................................................................................................. 6,500 Total revenues ...................................................................................... ¥62,600 ExpensesSalaries expense ............................................................................................ 45,700Utilities expense ........................................................................................... 19,100Depreciation expense .................................................................................... 4,000Total expense........................................................................................ 68,800 Net loss ................................................................................................................... ¥ (6,200)CHEN COMPANYRetained Earnings StatementFor the Year Ended July 31, 2X11 ———————————————————————————————————————————Retained Earnings, August 1, 2X10 ............................................................................. ¥30,000 Less: Net loss ..................................................................................................... ¥6,200 Dividends ...................................................................................................... 4,000 10,200 Retained Earnings , July 31, 2X11 .......................................................................... ¥18,800(b) CHEN COMPANYStatement of Financial PositionJuly 31, 2X11 ———————————————————————————————————————————AssetsProperty, plant, and equipmentEquipment..................................................................................................... ¥22,000Less: Accumulated depreciation ................................................................... 6,000 ¥16,000 Current assetsAccounts receivable ...................................................................................... 9,780Cash ............................................................................................................ 22,20031,980 Total assets ............................................................................................ ¥47,980Equity and LiabilitiesEquityShare capital-ordinary………………………………………………… ¥16,200Retained earnings ......................................................................................... 18,800 ¥35,000 Long-term liabilitiesNote payable ................................................................................................. 3,300 Current liabilitiesAccounts payable .......................................................................................... ¥4,100Salaries payable ............................................................................................ 4,580 8,680 Total equity and liabilities ....................................................................................... ¥47,9803.5 Prepare a statement of cash flowsA comparative statement of financial position for Mann Company appears below:MANN COMPANYComparative Statement of Financial PositionDec. 31, 2Y11 Dec. 31, 2Y10AssetsEquipment €60,000 €32,000Accumulated depreciation—equipment (20,000) (14,000) Long-term investments -0- 18,000 Prepaid expenses 6,000 9,000 Inventory 25,000 18,000 Accounts receivable 18,000 14,000 Cash 27,000 10,000 Total assets €116,000€87,000Equity and LiabilitiesShare capital-ordinary € 40,000€23,000 Retained earning 22,000 10,000 Bonds payable 37,000 47,000 Accounts payable 17,000 7,000 Total equity and liabilities €116,000€87,000 Additional information:1. Net income for the year ending December 31, 2Y11 was €27,000.2. Cash dividends of €15,000 were declared and paid during the year.3. Long-term investments that had a cost of €18,000 were sold for €14,000.4. Sales for 2Y11 were €120,000.EnquiredPrepare a statement of cash flows for the year ended December 31, 2Y11, using the indirect method.SolutionMANN COMPANYStatement of Cash FlowsFor the Year Ended December 31, 2Y11Cash flows from operating activitiesNet income .................................................................................................. €27,000Adjustments to reconcile net income to net cash provided byoperating activities:Depreciation expense ....................................................................... € 6,000Loss on sale of long-term investments ............................................... 4,000Increase in accounts receivable ........................................................ (4,000)Decrease in prepaid expenses ........................................................... 3,000Increase in inventories ...................................................................... (7,000)Increase in accounts payable ............................................................ 10,000 12,000Net cash provided by operating activities ........................................ 39,000 Cash flows from investing activitiesSale of long-term investments .................................................................... 14,000Purchase of equipment ................................................................................ (28,000)Net cash used by investing activities ................................................ (14,000) Cash flows from financing activitiesIssuance of ordinary shares ......................................................................... 17,000Retirement of bonds payable ...................................................................... (10,000)Payment of cash dividends ......................................................................... (15,000)Net cash used by financing activities ............................................... (8,000) Net increase in cash .............................................................................................. 17,000 Cash at beginning of period .................................................................................. 10,000 Cash at end of period ............................................................................................€27,0003.6 Perform vertical analysisDecember 31, 2X12December 31, 2X11Inventory€ 780,000 € 600,000 Accounts receivable 510,000 400,000 Total assets 3,000,0002,500,000EnquiredUsing these data from the comparative statement of financial position of Luca Company perform vertical analysis. Solution Dec. 31, 2012Dec. 31, 2011Amount Percentage*Amount Percentage**Inventory€ 780,000 26% € 600,000 24% Accounts receivable 510,000 17% 400,000 16% Total assets 3,000,000100.0%2,500,000100.0%€€780,000.263,000,000=€€600,000.242,500,000=€€510,000.173,000,000=€€400,000.162,500,000=3.7 Perform horizontal analysisComparative information taken from the Wells Company financial statements is shown below: 2X12 2X11 (a) Notes receivable $ 20,000 $ -0-(b) Accounts receivable 175,000 140,000 (c) Retained earnings 30,000 (40,000) (d) Income taxes payable 45,000 20,000 (e) Sales900,000 750,000 (f)Operating expenses170,000200,000EnquiredUsing horizontal analysis, show the percentage change from 2X11 to 2X12 with 2X11 as the base year. Solution (a) Base year is zero. Not possible to compute. (b) $35,000 ÷ $140,000 = 25% increase(c) Base year is negative. Not possible to compute. (d) $25,000 ÷ $20,000 = 125% increase (e)$150,000 ÷ $750,000 = 20% increase***(f) $30,000 ÷ $200,000 = 15% decrease3.8 Perform horizontal analysisThe following items were taken from the financial statements of Ritz, Inc., over a four-year period:Item 2Y12 2Y11 2Y10 2Y09Net Sales €800,000€650,000€600,000€500,000Cost of Goods Sold 580,000 460,000 420,000 400,000Gross Profit €220,000€190,000€180,000€100,000EnquiredUsing horizontal analysis and 2Y09 as the base year, compute the trend percentages for net sales, cost of goods sold, and gross profit. Explain whether the trends are favorable or unfavorable for each item.SolutionItem 2Y12 2Y11 2Y10 2Y09Net Sales 160% 130% 120% 100%Cost of Goods Sold 145% 115% 105% 100%Gross Profit 220% 190% 180% 100%The trend in net sales is increasing and favorable. The cost of goods sold trend is increasing which could be unfavorable, but the sales are increasing each year at a faster pace than cost of goods sold. This is apparent by examining the gross profit percentages, which show a favorable, increasing trend.3.9 Analysis the liquidity of the Howell CompanyHowell Company has the following selected accounts after posting adjusting entries:Accounts Payable € 55,000Notes Payable, 3-month 80,000Accumulated Depreciation—Equipment 14,000Salary Payable 27,000Notes Payable, 5-year, 8% 30,000Estimated Warranty Liability 34,000Salary Expense 6,000Interest Payable 3,000Mortgage Payable 200,000Sales Tax Payable 21,000Enquired(a) Prepare the current liability section of Howell Company's statement of financial position, assuming $25,000of the mortgage is payable next year. List liabilities in magnitude order, with largest first.(b) Comment on Howell 's liquidity, assuming total current assets are €450,000.Solution(a) HOWELL COMPANYCurrent LiabilitiesNotes payable, 3-month € 80,000Accounts payable 55,000Estimated warranty liability 34,000Salary payable 27,000Long-term debt due within one year 25,000Sales tax payable 21,000Interest payable 3,000Total Current Liabilities €245,000(b) The liquidity position looks favorable. If all current liabilities are paid out of current assets, there would stillbe €205,000 of current assets. The current assets are almost twice the current liabilities and it appears as though Howell Company has sufficient current resources to meet current obligations when due.3.10 Calculate the debt to total assets and times interest earned ratiosFranco Corporation reports the following selected financial statement information at December 31, 2X11: Total Assets $110,000Total Liabilities 65,000Net Income 18,000Interest Income 1,600Interest Expense 900Tax Expense 300EnquiredCalculate the debt to total assets and times interest earned ratios.SolutionDebt to total assets: $65,000 ÷ $110,000 = 59%Times interest earned: ($18,000 + $900 + $300) ÷ $900 = 21.33 times3.11 Compute the receivables turnover and the average collection periodBerman Company reported the following financial information:12/31/2X11 12/31/2X10Accounts receivable $ 320,000 $ 360,000Net credit sales 2,550,000 2,420,000EnquiredCompute (a) the receivables turnover and (b) the average collection period for 2X11.Solution(a) Receivables turnover = $2,550,000 ÷ $340,000 = 7.5 times(b) Average collection period = 365 ÷ 7.5 = 49 days3.12 Calculate the net income and EPSBanks Company is considering two alternatives to finance its purchase of a new $4,000,000 office building.(a) Issue 400,000 ordinary shares at $10 per share.(b) Issue 8%, 10-year bonds at par ($4,000,000).Income before interest and taxes is expected to be $3,000,000. The company has a 30% tax rate and has 600,000 ordinary shares outstanding prior to the new financing.EnquiredCalculate each of the following for each alternative:(1) Net income.(2) Earnings per share.Solution(a) Issue Shares (b) Issue BondsIncome before interest and taxes $3,000,000 $3,000,000Interest (8% × $4,000,000) —320,000Income before income taxes 3,000,000 2,680,000Income tax expense 900,000 804,000(1) Net income $2,100,000 $1,876,000Shares outstanding 1,000,000 600,000(2) Earnings per share $2.10 $3.133.13 Compute the return on ordinary shareholders’ equity ratioThe following information is available for Ritter Corporation:2Y11 2Y10 Average ordinary shareholders’ equity$1,500,000 $1,000,000Average total shareholders’ equity 2,000,000 1,500,000Ordinary dividends declared and paid 72,000 50,000Preference dividends declared and paid 30,000 30,000Net income 330,000 270,000EnquiredCompute the return on ordinary shareholders’ equity ratio for both years. Briefly commen t on your findings.Solution2Y10 2Y11Return on ordinaryshareholders’ equity ratio:$270,000 – $30,000 $330,000 – $30,000————————— = 24% ————————— = 20%$1,000,000 $1,500,000Ritter’s return on common stockholders’ equity ratio decreased approximately 17% during 2011. Ritter’s earnings increased during 2011 by 22%, but its average ordinary shareholders’ equity increased by 50%, causing the return on ordinary shareholders’ equity to declin e by 17%.3.14 Calculate book value per shareBellingham Corporation has the following equity balances at December 31, 2X11.Share Capital–Ordinary, $1 par $ 3,500Share Premium–Ordinary 24,500Retained Earnings 62,500Total $90,500EnquiredCalculate book value per share.SolutionNumber of shares outstanding: $3,500/$1 = 3,500Book value per share: $90,500/3,500 = $25.863.15 Calculate financial ratiosSelected information from the comparative financial statements of Fryman Company for the year ended December 31 appears below:2X11 2X10Inventory $ 140,000 $160,000Accounts receivable (net) 180,000 200,000Total assets 1,200,000 800,000Long-term debt 400,000 300,000Current liabilities 140,000 110,000Net credit sales 1,330,000 700,000Cost of goods sold 900,000 530,000Interest expense 50,000 25,000Income tax expense 60,000 29,000Net income 150,000 85,000EnquiredAnswer the following questions relating to the year ended December 31, 2X11. Show computations.1. Inventory turnover for 2X11 is __________.2. Times interest earned in 2X11 is __________.3. The debt to total assets ratio for 2X11 is __________.4. Receivables turnover for 2X11 is __________.5. Return on assets for 2X11 is __________.Solution$900,0001. Inventory turnover for 2011 is 6 times. ———————————— = 6 times.($140,000 + $160,000) ÷ 2$150,000 + $60,000 + $50,0002. Times interest earned in 2011 is 5.2 times. —————————————— = 5.2 times.$50,000$140,000 + $400,0003. The debt to total assets ratio for 2011 is 45%. —————————— = 45%.$1,200,000$1,330,0004. Receivables turnover for 2011 is 7 times. ———————————— = 7 times.($180,000 + $200,000) ÷ 2$150,0005. Return on assets for 2011 is 15%. ————————————— = 15%.($1,200,000 + $800,000) ÷ 2。

英语证书考试美国经企管理研究生入学考试(GMT)2022年模拟题7

英语证书考试美国经企管理研究生入学考试(GMT)2022年模拟题7(总分：30.00，做题时间：120分钟)一、单项选择题(总题数：30，分数：30.00)1.Is x equal to 1?(1)x2=1(2)x2+x-2=0（分数：1.00）A.Statement (1) ALONE is sufficient, but statement (6) alone is not sufficient to answer the question asked.B.Statement (2) ALONE is sufficient, but statement (5) alone is not sufficient to answer the question asked.C.BOTH statement (1) and (6) TOGETHER are sufficient to answer the question asked, but NEITHER statement ALONE is sufficient. √D.EACH statement ALONE is sufficient to answer the question asked.E.Statement (1) and(6)TOGETHER are NOT sufficient to answer the question asked, and additional data specific to the problem are needed.解析：题目中问x=1吗?单独(1)，得到x=1 or x=-1，问一个量的值是多少，这个值必须是唯一的。

现在x有两个值，当然不能够回答问题。

单独(2)，得到x=1 or x=-2，和(1)的分析一样，单独(2)也不能够回答问题。

把(1)和(2)结合起来得到x=1，那么能够回答问题，选择C。

Logic statement

Chapter 3 Worksheet Packet Finite Math Name: ____________________ 3.1 – Statements and Logical Connectives1)List the dominance of connectives from the most dominant to the least dominant.Indicate whether the statement is a simple statement or a compound statement. If it is a compound statement indicate whether it is a negation, conjunction, disjunction, conditional or Biconditional by using both the word and the symbol.2)The sun is shining and the air is crisp.3)If the electricity goes out then the standard telephone will still work.4)The hurricane did $400,000 worth of damage to DeSoto County.5)If Cathy Smith walks 4 miles today then she will be sore tomorrow.6)It is false that if John Wubben fixes your car then you will need to pay him in cash.Write the negation of the statement.7)No stock mutual funds have guaranteedyields.8)Some turtles do not have claws.9)All horses have manes. 10)Some pine trees do not producepinecones.11)No one likes asparagus.Write the statement in symbolic form if: p: The tent is pitched.q: The bonfire is burning.12)The tent is not pitched.13)The bonfire is not burning if and only ifthe tent is not pitched. 14)If the tent is not pitched then thebonfire is not burning.Write the statement in symbolic form if:p: The charcoal is hot.q: The chicken is on the grill.15)Neither is the charcoal hot nor is the chicken on the grill.16)The charcoal is not hot, but the chicken is on the grill.17)It is false that the charcoal is hot and the chicken is on the grill. Write the statement in words if:p: Firemen work hard.q: Firemen wear red suspenders.18)~q19)p ^ q20)~p q 21)~(q v p)22)p v qWrite the statement in symbolic form if:p: The temperature is 90o F.q: The air conditioner is working.r: The apartment is hot.23)The apartment is hot if and only if the temperature is not 90o F, or the air conditioner is notworking.24)If the apartment is hot and the air conditioner is working, then the temperature is 90o F.25)It is false that if the apartment is hot then the air conditioner is not working.26)The apartment is hot or the air conditioner is not working, if and only if the temperature is 90o F.Write the statement in words if:p: The water is 70o F.q: The sun is shiningr: We go swimming27)(p v q) ^ ~r28)~p → (q v r)29)(q ←→p) ^r30)(p →r) ^ p31)(p ^ q ) v rAdd parentheses to each statement by using the dominance of connectives and indicate whether the statement is a negation, conjunction, disjunction, conditional or Biconditional.32)~p ^ q ←→ ~q33)p v q34)q →p ^ ~r35)~[p → q v r]36)~[r ^ ~q →q ^ r] 37)~q ←→ ~q →r38)~q ^ ~r39)r ^ ~q → q v ~p40)r v q → ~p41)q → p ←→p → qSelect letters to represent the simple statements and write each statement symbolically by using parentheses. Then indicate whether the statement is a negation, conjunction, disjunction, conditional or biconditional.42)Ruth Bignel retired, but she did not start her concrete business.43)It is false that if your speed is below the speed limit then you will not get pulled over.44)If the food has fiber or the food has vitamins, then you will be healthy.45)You may take this course if an only if you did not fail the previous course or you passed theplacement test.46)The classroom is empty if and only if it is the weekend, or it is 7am.47)If the car has the gas and the battery is charged then the car will start.3.2 & 3.3 – Truth Tables for Negation, Conjunction, Disjunction, Conditional and BiconditionalAnswer the following questions regarding the construction of truth tables.48)How many distinct cases must be listed in a truth table that contains:a.Two simple statements?b.Three simple statements?49)Under what circumstances is a conjunction false?50)Under what circumstances is a disjunction false?51)Under what circumstances is a conditional false?52)Under what circumstances is a Biconditional false? Determine the truth value of the statement if:a)P is true, Q is false, and R is true.b)P is false, Q is true, and R is true.53)~p v (q ^ r)54)(~p ^ r) ^ q55)(p v ~q) ^ ~(p ^ ~r)56)P →(~q ^ r) 57)(q ^ ~p) ←→~r58)[(~r→~q) v (p ^~r)]→q59)(p^r) ←→(p v ~q)60)~[(p v q) ←→ (p → ~r)]Write the statement in symbolic form and construct a truth table.61)Meetings are dull and teaching is fun.______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________62)Bob will get a haircut, but he will not shave his beard.______________________________________________________________________________ Array ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ 63)It is false that Jasper Adams is a tutor and Mark Russo is a secretary.______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ 64)The copier is out of toner, or the lens is dirty or the corona wires are broken.______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ 65)I am hungry, and I want to eat a healthy lunch and I do not want to eat in a hurry.______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________66)If I drink a glass of water, then I will have a better complexion and I will sleep better.______________________________________________________________________________ Array ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ 67)If Mary Andrews does not send me an e-mail then we can call her, or we can write to Mom.______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ 68)The goalie will make the save if and only if the stopper is in position, or the forward cannothandle the ball.______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________Construct a truth table for the following.69)p v ~q______________________________________________________________________________ Array ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________70)~p ^ ~q______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________71)r v (p ^ ~q)______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________72)(p v q) v ~q______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________73)q →(p →~q)______________________________________________________________________________ Array ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ 74)(p v q) ←→(p ^ q)______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ 75)~[r ^ (q v ~p)] ←→ ~p →r______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ 76)~[(~r →~q) v (p ^ ~r)] → ~q______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________Determine the truth value for each simple statement then use those truth values to determine the truth value of the compound statement. You may have to use a reference source such as the internet or an encyclopedia.77)3 + 5 = 4 + 4 or 10 – 9 = 9 – 1078)Elvis Presley was a singer or chickens can swim.79)Cal Ripkin Jr. played football or George Bush was the prime minister of England, and ColinPowell was in the Army.80)Alaska is the 50th state or Hawaii is a group of islands, and Atlanta is the capital of Alabama.81)If 10 + 5 = 15, then 56/7 = 8.82)Dell makes computers, if and only if Gateway makes computers or Cannon makes printers.83)Valent ine’s Day is in February or President’s Day is in March, and Thanksgiving is in November.84)Spike Lee is a movie director, or if Halle Berry is a school-teacher then George Clooney is a circusclown.Determine whether the statement is a tautology, self-contradiction, or neither.85)p → ~q______________________________________________________________________________ Array ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________86)(p v q) ←→ ~p______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________87)[(p→q)vr]←→[(p^q)→r]______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________88)(p ^ ~q)→q______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________Determine whether the statement is an implication.89)p →(~q ^ r)______________________________________________________________________________ Array ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________90)(q ^ p) →(p v q)______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________91) [(p v q) ^ r] →(p v q)______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________3.4 – Equivalent StatementsInverse, Converse, Contrapositive & Logical Equivalence.92)Which of the following are equivalent statements?a.The converse.b.The contrapositive.c.T he inverse.d.The conditional.93)For a statement of the form p→q, symbolically indicate the forms of the:a.Converseb.Contrapositivec.Inverse94)Write a disjunctive statement that is logically equivalent to p →q.95)Write a conjunction involving two conditional statements that is logically equivalent top ←→q.96)Write the converse, inverse, and contrapositive of the following statements:a.If the book is interesting then I will finish the book in 1 week.i.Converse:ii.Inverse:iii.Contrapositive:b.If you finish your homework, then you can watch televisions.i.Converse:ii.Inverse:iii.Contrapositive:Use DeMorgan’s laws to determine whether the statements are equivalent.97)~p v ~q; ~(p ^ q)98)~(p v q); ~p ^ ~q99)~(p ^ q); ~p ^ ~q100)~(p ^ q); ~p ^ qUse DeMorgan’s laws to determine whether the statements are equivalent.101)~(p v ~q); ~p ^ q102)~(p ^ q); ~(q v ~p)103)(~p v ~q) →r; ~(p ^ q) →r104)q →~(p ^ ~r); q→~p v r105)~(p→~q); p ^ q106)~(~p→q); ~p ^~qUse DeMorgan’s laws to write an equivalent statement for the sentence.107)It is false that the Mississippi River runs through Ohio or the Ohio River runs through Mississippi.108)The snowmobile was neither an Arctic Cat nor was it a Ski-Do.109)The pot roast is hot, but it is not well done.110)If we go to Cozumel, then we will go snorkeling or we will not go to Senior Frogs.111)The hotel does not have a weight room or the conference center does not have an auditorium.Use the fact that p→q is equivalent to ~p v q to write an equivalent form of the given statement.112)If you drink a glass of orange juice, then you will get a full day supply of folic acid.113)Bob the Tomato visited the nursing home or he did not visit the Cub Scout meeting.114)It is false that if the plumbers meet in Kansas City then the Rainmakers will provide the entertainment.Use the face that (p→q) ^ (q→p) is equivalent to p←→q to write an equivalent form of the given statement.115)If it is cloudy then the front is coming through and if the front is coming through then it is cloudy.116)The chemistry teacher teaches mathematics if and only if there is a shortage of mathematics teachers.117)If Model Road is closed then we use Kirkwood Road and if we use Kirkwood Road then Model Road is closed.Use a truth table (if necessary) to determine whether the statements are equivalent.118)p →q; ~p v q______________________________________________________________________________ Array ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ 119)~(p←→q) ; [~(p→q)] ^ [~(q→p)]______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ 120)(p ^ q) ^ r; p ^ (q ^ r)______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________121)(p →q) ^ (q→p); p←→q______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________122)~p→q; p ^ q______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________123)~q →(p ^ r); ~(p v r) →q______________________________________________________________________________ Array ____________________________________________________________________________________________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ 124)(p→q)^(q→r); (p→q)→r______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ __________________________________________________________________________________________________________________________________________________________________________________________________________________________________________。

ISMChap007

CHAPTER 7 CONSOLIDATED FINANCIAL STATEMENTS—OWNERSHIPPATTERNS AND INCOME TAXES Chapter OutlineI. Indirect subsidiary controlA. Control of subsidiary companies within a business combination is often of an indirectnature; one subsidiary possesses the stock of another rather than the parent having direct ownership.1. These ownership patterns may be developed specifically to enhance control or fororganizational purposes.2. Such ownership patterns may also result from the parent company's acquisition of acompany that already possesses subsidiaries.B. One of the most common corporate structures is the father-son-grandson configurationwhere each subsidiary in turn owns one or more subsidiaries.C. The consolidation process is altered somewhat when indirect control is present.1. The worksheet entries are effectively doubled by each corporate ownership layer butthe concepts underlying the consolidation process are not changed.2. Calculation of the accrual-based income of a subsidiary recognizing the consolidatedrelationships is an important step in an indirect ownership structure.a. The determination of accrual-based income figures is needed for equity incomeaccruals as well as for the computation of noncontrolling interest balances.b. Any company within the business combination that is in both a parent and asubsidiary position must recognize the equity income accruing from its subsidiarybefore computing its own income.II. Indirect subsidiary control-connecting affiliationA. A connecting affiliation exists whenever two or more companies within a businesscombination hold an equity interest in another member of that organization.B. Despite this variation in the standard ownership pattern, the consolidation process isessentially the same for a connecting affiliation as for a father-son-grandson organization.C. Once again, any company in both a parent and a subsidiary position must recognize anappropriate equity accrual in computing its own income.III. Mutual ownershipA. A mutual affiliation exists whenever a subsidiary owns shares of its parent company.B. Parent shares being held by a subsidiary are accounted for by the treasury stockapproach.1. The cost paid to acquire the parent's stock is reclassified within the consolidationprocess to a treasury stock account and no income is accrued.2. The treasury stock approach is popular in practice because of its simplicity and is nowrequired by the FASB Codification.IV. Income tax accounting for a business combination—consolidated tax returnsA. A consolidated tax return can be prepared for all companies comprising an affiliated group.Any other companies within the business combination file separate tax returns.B. A domestic corporation may be included in an affiliated group if the parent company (eitherdirectly or indirectly) owns at least 80 percent of the voting stock of the subsidiary as well as 80 percent of each class of its nonvoting stock.C. The filing of a consolidated tax return provides several potential advantages to themembers of an affiliated group.1. Intra-entity profits are not taxed until realized.2. Intra-entity dividends are not taxed (although these distributions are nontaxable for allmembers of an affiliated group whether a consolidated return or a separate return isfiled).3. Losses of one affiliate can be used to reduce the taxable income earned by othermembers of the group.D. Income tax expense—effect on noncontrolling interest valuation1. If a consolidated tax return is filed, an allocation of the total expense must be made toeach of the component companies to arrive at the realized income figures that serveas a basis for noncontrolling interest computations.2. Income tax expense is frequently assigned to each subsidiary based on the amountsthat would have been paid on separate returns.V. Income tax accounting for a business combination—separate tax returnsA. Members of a business combination that are foreign companies or that do not meet the 80percent ownership rule (as described above) must file separate income tax returns.B. Companies in an affiliated group can elect to file separate tax returns. Deferred incometaxes are often recognized when separate returns are filed due to temporary differences stemming from unrealized gains and losses as well as intra-entity dividends.VI. Temporary tax differences can stem from the creation of a business combinationA. The tax basis of a subsidiary's assets and liabilities may differ from their consolidatedvalues (which is based on the fair value on the date the combination is created).B. If additional taxes will result in future years (for example, it the tax basis of an asset islower than its consolidated value so that future depreciation expense for tax purposes will be less), a deferred tax liability is created by a combination.C. The deferred tax liability is then written off (creating a reduction in tax expense) in futureyears so that the net expense recognized (a lower number) matches the combination's book income (a lower number due to the extra depreciation of the consolidated value).Vll. Operating loss carryforwardsA. Net operating losses recognized by a company can be used to reduce taxable incomefrom the previous two years (a carryback) or for the future 20 years (a carryforward).B. If one company in a newly created combination has a tax carryforward, the future taxbenefits are recognized as a deferred income tax asset.C. However, a valuation allowance must also be recorded to reduce the deferred tax asset tothe amount that is more likely than not to be realized.Chapter 07 - Consolidated Financial Statements—Ownership Patterns and Income TaxesAnswers to Questions1. A father-son-grandson relationship is a specific type of ownership configuration oftenencountered in business combinations. The parent possesses the stock of one or more companies. At least one of these subsidiaries holds a majority of the voting stock of its own subsidiary. Each subsidiary controls other subsidiaries with the chain of ownership going on indefinitely. The parent actually holds control over all of the companies within the business combination despite having direct ownership in only its own subsidiaries.2. In a business combination having an indirect ownership pattern, at least one company is inboth a parent and a subsidiary position. To calculate the accrual-based income earned by that company, a proper recognition of the equity income accruing from its own subsidiary must initially be made. Structuring the income calculation in this manner is necessary to ensure that all earnings are properly included by each company.3. Able—100% of income accrues to the consolidated entity (as parent company).Baker—70% (percentage of stock owned by Able).Carter—56% (80% of stock owned by Baker multiplied by the 70% of Baker controlled by Able).Dexter—33.6% (60% of stock owned by Carter multiplied by the 80% of Carter controlled by Baker multiplied by the 70% of Baker owned by Able).4. When an indirect ownership is present, the quantity of consolidation entries will increase,perhaps significantly. An additional set of entries is included on the worksheet for each separate investment. Furthermore, the determination of realized income figures for each subsidiary must be computed in a precise manner. For any company in both a parent and a subsidiary position, equity income accruals are recognized prior to the calculation of that company's realized income. This realized income total is significant because it serves as the basis for noncontrolling interest calculations as well as the equity accruals to be recognized by that company's parent.5. In a connecting affiliation, two (or more) companies within a business combination own sharesin a third member. A mutual ownership, in contrast, exists whenever a subsidiary possesses an equity interest in its own parent.6. In accounting for a mutual ownership, U.S. GAAP requires the treasury stock approach. Thetreasury stock approach presumes that the cost of the parent shares should be reclassified as treasury stock within the consolidation process. The subsidiary is being viewed, under this method, as an agent of the parent. Thus, the shares are accounted for as if the parent had actually made the acquisition.7. According to present tax laws, an affiliated group can be comprised of all domesticcorporations in which a parent holds 80 percent ownership. More specifically, the parent must own (directly or indirectly) 80 percent of the voting stock of the corporation as well as at least80 percent of each class of nonvoting stock.8. Several basic advantages are available to combinations that file a consolidated tax return.First, intra-entity profits are not taxed until realized. For companies with large amounts of intra-entity transactions, the deferral of unrealized gains causes a delay in the making of significant tax payments. Second, losses incurred by one company can be used to reduce or offsetChapter 07 - Consolidated Financial Statements—Ownership Patterns and Income Taxestaxable income earned by other members of the affiliated group. In addition, intra-entity dividends are not taxable but that exclusion applies to the members of an affiliated group regardless of whether a consolidated or separate tax return is filed.Members of a business combination may be forced to file separate tax returns. Foreign corporations, for example, must always file separately. Domestic companies that do not meet the 80 percent ownership rule are also required to file in this manner. Furthermore, companies that are in an affiliated group may still elect to file separately. If all companies within the combination are profitable and few intra-entity transactions are carried out, little advantage may accrue from preparing a consolidated return. With a separate filing, a subsidiary has more flexibility as to accounting methods as well as its choice of a fiscal year-end.9. The allocation of income tax expense among the component companies of a businesscombination has a direct bearing on realized income totals and, therefore, noncontrolling interest calculations. Obviously, the more expense that is assigned to a particular company the less realized income is attributed to that concern. Income tax expense can be allocated based on the income totals that would have been reported by various companies if separate tax returns had been filed or on the portion of taxable income derived from each company. 10. In filing a separate tax return (assuming that the two companies do not qualify as members ofan affiliated group), the parent must include as income the dividends received from the subsidiary. For financial reporting purposes, however, income is accrued based on the ownership percentage of the realized income of the subsidiary. Because income is frequently recognized by the parent prior to being received in the form of dividends (when it is subject to taxation), deferred income taxes must be recognized.Either the parent or the subsidiary might also have to record deferred income taxes in connection with any unrealized intra-entity gain. On a separate tax return, such gains are reported at the time of transfer while for financial reporting purposes they are appropriately deferred until realized. Once again, a temporary difference is created which necessitates the recognition of deferred income taxes.11. If the consolidated value of a subsidiary’s assets exceeds their tax basis, depreciationexpense in the future will be less on the tax return than is shown for external reporting purposes. The reduced expense creates higher taxable income and, thus, increases taxes.Therefore, the difference in values dictates an anticipated increase in future tax payments.This deferred liability is recognized at the time the combination is created. Subsequently, when actual tax payments do arise, the deferred liability is written off rather than recognizing expense based solely on the current liability. In this manner, the expense is shown at a lower figure, one that is matched with reported income (which is also a lower balance because of the extra depreciation).Recognition of this deferred liability at date of acquisition also reduces the net amount attributed to the subsidiary's assets and liabilities in the initial allocation process. Therefore, the residual asset (goodwill) is increased by the amount of any liability that must be recognized.12. A net operating loss carryforward allows the company to reduce taxable income for up to 20years into the future. Thus, a benefit may possibly be derived from the carryforward but that benefit is based on Wilson (the subsidiary) being able to generate taxable income to be decreased by the carryforward. To reflect the potential tax reduction, a deferred income taxChapter 07 - Consolidated Financial Statements—Ownership Patterns and Income Taxesasset is recorded for the total amount of anticipated benefit. However, because of the uncertainty, unless the receipt of this benefit is more likely than not to be received, a valuation allowance must also be recorded as a contra account to the asset. The valuation allowance may be for the entire amount or just for a portion of the asset.13. At the date of acquisition, the valuation allowance was $150,000. As a contra asset account,recognition of this amount reduced the net assets attributed to the subsidiary and, hence, increased the recording of goodwill (assuming that the price did not indicate a bargain purchase). If the valuation allowance is subsequently reduced to $110,000, the net assets have increased by $40,000. This change is reflected by a decrease in income tax expense.Chapter 07 - Consolidated Financial Statements—Ownership Patterns and Income TaxesAnswers to Problems1. D2. B3. D4. C5. C6. C7. D Sapphire's accrual-based income:Operatingincome ....................................................................... $210,000Defer unrealized gain ................................................................ (50,000) Sapphire's accrual-based income ...................................... $160,000 Emerald's accrual-based income:Operating income ...................................................................... $228,000Investment Income (90% of Sapphire’s accrual income) ....... 144,000 Emerald's accrual-based income ....................................... $372,000 Diamond's accrual-based income:Operating income ...................................................................... $348,000Investment income (80% of Emerald's accrual income) ........ 297,600 Diamond's accrual-based income ...................................... $645,600 8. C Cherry's accrual-based income:Operating income ...................................................................... $280,000Defer unrealized gain ................................................................ (50,000) Cherry's accrual-based income .......................................... $230,000 Outside ownership .................................................................... 20% Net income attributable to noncontrolling interest ............ $46,000 Beech's accrual-based income:Operating income ...................................................................... $315,000Defer unrealized gain ................................................................ (19,000)Investment income (80% of Cherry's accrual-based income)...... 184,000 Beech's accrual-based income ........................................... $480,000 Outside ownership .................................................................... 20% Net income attributable to noncontrolling interest ........... $96,000 Total net income attributable to noncontrolling interest =($46,000 + $96,000) =$142,000Chapter 07 - Consolidated Financial Statements—Ownership Patterns and Income Taxes9. A Stark's operating income ................................................................ $78,000Dividend income from Arryn .......................................................... 18,000Stark 's income ............................................................................... $96,000Outside ownership ......................................................................... 5%Noncontrolling interest .................................................................. $ 4,80010. B Equity income (75% of $415,000) .................................................. $311,250Dividend income (75% of $110,000) .............................................. 82,500 Tax difference ............................................................................ $228,750 Dividends received deduction upon eventual distribution (80%) (183,000) Temporary portion of tax difference ........................................ $ 45,750 Tax rate .......................................................................................... 40% Deferred income tax liability .................................................... $ 18,30011. C Unrealized Gross Profit:Total gross profit ........................................................................ $30,000Portion still held .......................................................................... 20%Unrealized gross profit ............................................................. $6,000 Tax rate .......................................................................................... 25% Deferred tax asset ....................................................................... $1,50012. A Recognition of this gross profit is not required on a consolidated tax return.13. A Because fair value of the subsidiary's assets exceeds the tax basis by$144,000, a deferred tax liability of $57,600 (40%) must be recorded. Goodwill is then computed as follows:Consideration transferred ....................................... $450,000Fair value ............................................................... $454,000Deferred tax liability ................................................. (57,600) 396,400Goodwill .................................................................... $53,60014. (30 Minutes) (Series of reporting and consolidation questions pertaining to afather-son-grandson combination. Includes unrealized inventory gains)a. Consideration transferred (by Aspen) ......................... $288,000Noncontrolling interest fair value ................................. 72,000Birch’s business fair value ............................................ 360,000Book value ............................................................... (300,000)Trade name ...................................................................... $ 60,000Life .................................................................................. 30 yearsAnnual amortization ...................................................... $2,000Chapter 07 - Consolidated Financial Statements—Ownership Patterns and Income Taxes14. (continued)Consideration transferred for Cedar (by Birch) .......... $104,000Noncontrolling interest fair value ................................. 26,000Cedar’s business fair value .......................................... $130,000Book value ............................................................... (100,000)Trade name ...................................................................... $30,000Life .................................................................................. 30 yearsAnnual amortization ...................................................... $1,000Investment in Birch $288,000Birch's reported income-2012 $40,000Amortization expense (2,000)Accrual-based income $38,000Birch’s percentage ownership 80%Equity accrual-2012 $30,400Dividends received 2012 (8,000)Birch's reported income-2013 $60,000Amortization expense (2,000)Income from Cedar[80% x ($10,000 - $1,000)]7,200Accrual-based income $65,200Birch’s percentage ownership80%Equity accrual-2013 $52,160Dividends receivedfrom Birch 2013 (16,000)Investment in Birch 12-31-13 $346,560Note: Dividends declared by Cedar to Birch do not affect Aspen’s Investment account.b. C onsolidated sales (total for the companies) $1,298,000Consolidated expenses (total for the companies) (1,025,000)Total amortization expense (see a.) (3,000)Consolidated net income for 2014 $ 270,000c. Noncontrolling interest in income of CedarRevenues less expenses $30,000Excess amortization (1,000)Accrual-based income $29,000Noncontrolling interest percentage 20%Noncontrolling interest in income of Cedar $5,800Noncontrolling interest in income of Birch:Revenues less expenses $65,000Excess amortization (2,000)Equity in Cedar income [(30,000-1,000) × 80%]23,200Realized income of Birch—2014 $86,200Outside ownership 20% $17,240NCI share of 2014consolidated income $23,040Chapter 07 - Consolidated Financial Statements—Ownership Patterns and Income Taxes14. (continued)d. 2013 Realized net income of Birch (prior to accountingfor unrealized gross profit) (see a) $65,2002012 Transfer-gross profit recognized in 2013 10,0002013 Transfer-gross profit to be recognized in 2014 (16,000)2013 Realized net income- Birch $59,2002014 Realized net income of Birch (prior to accountingfor unrealized gross profit) (see c.) $86,2002013 Transfer-gross profit recognized in 2014 16,0002014 Transfer-gross profit to be recognized in 2015 (25,000)2014 Realized net income—Birch $77,20015. (15 minutes) (Income and noncontrolling interest with mutual ownership.)a. Consideration transferred by Uncle ............................. $500,000Noncontrolling interest fair value ................................. 125,000Nephew’s business fair value ....................................... $625,000Book value ...................................................................... 600,000Intangible assets ............................................................ $25,000Life .................................................................................. 10 yearsAmortization expense (annual) ..................................... $2,500Net income reported by Nephew—2014 ........................ $50,000Amortization expense (above) ...................................... (2,500)Accrual-based income .................................................... 47,500Uncle's ownership percentage ..................................... 80%Net income of subsidiary recognized by Uncle ........... $38,000b. To the outside owners, the $6,000 intra-entity dividends ($20,000 × 30%)declared by Uncle are viewed as income because the book value of Nephew increases. Thus, the noncontrolling interest's share of income is computed as follows:Nephew’s accrual-based income (above) $47,500Dividends declared by Uncle to Nephew 6,000Income to outside owners $53,500Noncontrolling interest percentage 20%Noncontrolling interest share of Nephew’s net income$10,700Chapter 07 - Consolidated Financial Statements—Ownership Patterns and Income Taxes16.(35 Minutes) (Consolidated net income for a father-son-grandsoncombination.)a. Mesa's operating income $250,000Butte's operating income 98,000 Valley's operating income 140,000 Amortization expense–Mesa's investment in Butte (22,500) Amortization expense–Butte's investment in Valley (8,000) Consolidated net income $457,500 b. Valley's operating income $140,000Amortization expense (on Butte's investment) (8,000)Valley's accrual-based net income $132,000Outside ownership 45%Noncontrolling interest in Valley's income $59,400 Butte's operating income $ 98,000Amortization expense (on Mesa's investment) (22,500)Equity accrual from ownership of Valley($132,000 × 55%) 72,600Butte's accrual-based net income $148,100Outside ownership 20%Noncontrolling interest in Butte's net income $29,620 Total net income attributable to noncontrolling interests $89,020 Reconciliation:Mesa’s operating income$250,000 Mesa’s share of Butte’s operating income (80% × $98,000)78,400 Mesa’s share of Valley’s operating income (80% × 55% × $140,000) 61,600 Mesa’s share of Butte’s excess amortization (80% × $22,500)(18,000) Mesa’s share of Valley’s excess amortization (80% × 55% × $8,000) (3,520) Controlling interest in consolidated net income $368,480 Net income attributable to noncontrolling interest 89,020 Consolidated net income $457,500Chapter 07 - Consolidated Financial Statements—Ownership Patterns and Income Taxes17. (30 Minutes) (Consolidated net income figures for a connecting affiliation)UNREALIZED GROSS PROFIT:Cleveland ($12,000 remaining inventory ×25% markup) = $3,000Wisconsin ($40,000 remaining inventory ×30% markup) = $12,000 NONCONTROLLING INTERESTS:CLEVELAND:Operating income (sales minus cost of goods sold andexpenses) ........................................................................ $60,000 Defer unrealized gross profit (above) ................................ (3,000) Realized income—Cleveland ......................................... $57,000 Outside ownership ............................................................... 20% Noncontrolling interest in Cleveland's net income ..... $11,400 WISCONSIN:Operating income (sales minus cost of goods sold andexpenses) ...................................................................... $110,000 Defer unrealized gross profit (above) .............................. (12,000)Investment income (60% of Cleveland's realized income of$57,000) ........................................................................ 34,200Realized income—Wisconsin ...................................... $132,200 Outside ownership ............................................................. 10% Noncontrolling interest in Wisconsin's net income .. $13,220TOTAL NONCONTROLLING INTERESTS: $24,620 ($11,400 + $13,220)CONSOLIDATION TOTALS▪Sales = $1,590,000 (add the three book values and eliminate intra-entity transfers of $40,000 and $100,000)▪Cost of goods sold = $1,015,000 (add the three book values, eliminate intra-entity transfers of $40,000 and $100,000, and defer [add] unrealized gains of $3,000 and $12,000)▪Expenses = $200,000 (add the three book values)▪Dividend income = -0- (eliminated for consolidation purposes)▪Consolidated net income = $375,000 (consolidated revenues less consolidated cost of goods sold and expenses)▪Net income attributable to noncontrolling interest = $24,620 (above)▪Net income attributable to Baxter Company = $350,380 (consolidated net income less noncontrolling interest share)18. (12Minutes) (Acquisition accounting for a subsidiary’s operating losscarryforward)a. Consideration transferred 1/1/14 $1,080,000Fair value of identifiable assets acquired:Software licensing agreements $830,000Deferred tax asset from NOL (.35 × $155,000) 54,250Fair value of net identifiable assets acquired 884,250Goodwill $195,750b. Consideration transferred 1/1/14 $1,080,000Fair value of identifiable assets acquired:Software licensing agreements $830,000Deferred tax asset from NOL (.35 × $155,000) 54,250Valuation allowance for NOL (54,250)Fair value of net identifiable assets acquired 830,000Goodwill $250,00019.(25 Minutes) (Tax expense with separate tax returns for a combination.)a. CONSOLIDATED TOTALS▪Sales = $790,000 (add the two book values and eliminate the $110,000 intra-entity transfer)▪Cost of goods sold = $340,000 (add the book values, eliminate intra-entity transfers of $110,000, recognize [subtract] $30,000 deferred gain from 2014, and defer [add] $40,000 intra-entitygain into 2015)▪Operating expenses = $234,000 (add the two book values)▪Dividend income = -0- (eliminated for consolidation purposes)▪Consolidated net income = $216,000 (Revenues less expenses)▪Net income attributable to noncontrolling interest = $18,000 (20 percent of reported Income of $100,000 plus $30,000 gain deferred from 2014 less$40,000 gain deferred into 2015)▪Net income attributable to Up Company = $198,000b. On separate returns, the unrealized gains are reported as taxable income.Because Up owns 80 percent of Down's stock, the dividends are tax- free and no deferred tax liability is necessary on the undistributed income.DUE TO GOVERNMENT: (separate returns)UP:Income (without dividend income) ............................... $126,000Tax rate .......................................................................... 30% Currently payable to government ........................... $37,800。

英语语法-Statement--Question--Command--Exclamation

b) With an existential sentence as the there as formal subject, statement, the tag still keep there as formal subject.
c) When the statement contains such negative or seminegative words as seldom, hardly, never, rarely, little, few, nowhere, nothing, etc, the tag is usually in the positive. But the tag is negative if the negative element in the statement is only a negative prefix, e.g.:
He was unsuccessful, wasn't he?
d) With I am in the Statement, the tag is aren't I.
To reinforce a statement, another set of devices are available for use. These include emphasizers, reinforcement tags, double negatives as well as rhetorical questions.
He would never do such a thing. Never would he do such a thing.
Other devices for negative reinforcement include "not one / a single + singular noun", "not a wink", "not a soul", "not a finger", "not a muscle", "never in (all) my life", etc, e.g.:

1、下载文档前请自行甄别文档内容的完整性，平台不提供额外的编辑、内容补充、找答案等附加服务。
2、"仅部分预览"的文档,不可在线预览部分如存在完整性等问题,可反馈申请退款(可完整预览的文档不适用该条件!)。
3、如文档侵犯您的权益，请联系客服反馈,我们会尽快为您处理(人工客服工作时间：9:00-18:30)。