Part hree questions worth 20 points each. Show all work. 1. The following balance sheet information (in $ millions) comes from the Annual Report to Shareholders of Hotel California for the 2013 fiscal year. (Certain amounts have been replaced with question marks to test your understanding of balance sheets.) In addition, you're provided with the follow- ing information from an analysis of Hotel California’s financial position at the same date: Current ratio = 1.440584 Acid-test ratio = 0.489143 Debt-to-equity ratio = 3.040706 Compute the missing amounts (rounded to the nearest $ in millions) in the Hotel California balance sheet.Assets Current assets Cash and equivalents ‘Accounts and notes receivable Inventory other Total current assets Property and equipment, net Intangible assets, net Investments Notes and other receivables, net other Total non-current asssets Total assets Liabilities and Shareholders’ Equity Current liabilities Accounts payable Accrued payroll and benefits Other payables and accruals Total current liabilities Long-term debt Other long-term liabilities Total long-term liabilities ‘Total liabilities Shareholders’ equity Common stock ‘Additional paid-in capital Retained earnings Treasury stock and other ‘Total shareholders’ equity ‘otal liabilities and shareholders’ equity $1,443 596 988 1,136 3,490 3,265 (5,680) 8,934 $854 996 2533 LE2. Shown below is activity for one of the products of Big Oil: January 1 balance, 400 units @ $75 for a total of $30,000 Purchases January 10 $50 units @ $45 January 20 1,000 units @ $52 Sales: January 12 800 units January 28 725 units Compute the ending inventory and cost of goods sold assuming Big Oil uses FIFO. Compute the ending inventory and cost of goods sold assuming Big Oil uses IFO and a perpetual inventory system. Compute the ending inventory and cost of goods sold assuming Big Oil uses average cost and a perpetual inventory system: Compute the ending inventory and cost of goods sold assuming average cost and a periodic inventory system. Compute the ending inventory and cost of goods sold assuming Big Oil uses LIFO ‘and a periodic inventory system Big Oil uses 3, The following information is provided in the 2013 annual report to shareholders of Old Spice December 31.2013 December 31,2012 Accounts receivable 72 $100 milion Inventory $70 million $30 million Other assets 27? $170 million Total assets m $300 million ‘Total liabilities ” $100 milion ‘otal stockholders’ eouity 27? $200 million For the year ended Des Net sales 2 Cost of goods sold ™ Net income $40 milion Return on assets. 10% Receivables turnover 8.0 Inventory turnover 12.0 Asset tuover 25 Return on stockholders’ equity 20% Profit margin on sales 4% Required: Compute the missing amount in the Old Spice financial statement informa~ tion, indicated by 227 in the table above.part B: Ten questions worth 4 points each Show all work. 1. The following information ($ in anilions) comes from a recent annual report of Amazing Inc.: vat sales 912,301 “otal assets: 4,363 End of year balance in cash 2,102 ‘otal stockholders’ equity a3 Gross profit (Sales ~ Cost of Sales) 4,526 Net increase in cash for the year 19 ‘operating expenses 2,067 Net operating cash flow 702 other income (expense), net a2) a, Compute Amazing’s balance in cash af the beginning of the year b Compute Amazing’s total liabilities at the end of the year: c. Compute cost of goods sold for the YESr. &. compute the income before income {2% for Amazing. 2, The current asset section of Sanford & Son cpn’s balance sheet consists of cash, accounts receivable, investments, and prepaid expenses. The 2013 balance sheet reported the following: cash, $110,000; investments, $22,000) prepaid expenses, $18,000; noncurrent assets, 422,000; and shareholders’ equity: $350,000. The sircent ratio at the end of the year Was 2 and the debt to equity ratio was 8: Required: Determine the following 2023 amounts and ratios: Current liabilities. ‘The acid-test ratio. ‘Accounts receivable. Long-term liabilities: 4, Cooper's reported the following tems '9 its adjusted trial balance for the year ended December 31, 2013: income from continuing operations before income taxes $110,000 extraordinary gain on property condemnsation 28,000 Extraordinary loss on natural disaster (50,000) Cooper's is subject to a 34% tax rate, Required: Prepare the December 31, 2013, income statement for Cooper's, starting with income from continuing operations before income taxes.4, 1n 2013, KP Building Inc. Bega” work on a four-year construction project (called “Cincy One"). The contract price is $300 million. KP uses the percentage-of-completion aathod of accounting, Ar the end ‘of 2013, the following financial statement informa thom indicates the results to date For Ciney One! INCOME STATEMENT ‘rons Profit (pefore-taxes) recognized In 2011 22 million BALANCE SHEET accounts Receivable from construction billings 10 million Construction in progress $66 million Less: Billings on construction (475 milion) et billings in excess of construction progress 59 million Required: Compute the following, placing your answer in the spaces provided and showing supporting computations: Items to compute: Cash collected by KPon ciney One CUAMS 2013 atuat costs incurred by KP an Cincy OE during 2013 ‘at 12/31/2013, the estimated remainin costs to complete Cincy On€ ‘The percentage of Cincy One that W25 completed during 2013 5, On June 30, 2013, Gentex igsued 5% stated rate bonds wth 2 face amount of $300 raion, The bonds mature on June 30, 2033 (20 years). The market rate of interest for similar bond issues was 49% (2% wemiannval rate). Interest is paid semiannually (2.5%) on June 30 and ‘December 31, beginning on December 31, 2023 Required: a. Determine the price of the bonds on June 30, 2013. b. Calculate the interest expense Gentex reports in 2013 for these bonds. 6. During Burns Company's fist Veat of operations, credit sales totaled 140,000 and collections on credit sales totaled ‘105,000, Burns estimates thet bad debt losses will be 1.5% of credit sales. BY year-end, Burns had written ‘off $300 of specific accounts ‘as uncollectible, Required: «a, prepare all appropriate journal entries relative to uncollectible accounts and bad debt expense: tb. Show the year-end balance sheet presentation for accounts receivable7. Crabby Appleton Inc. adopted dollar-value LIFO on January t+ 2013, when the Tnventory value was $1,200,000. Te December 31, 2022, ending inventory at year-end costs Was 1,430,000 and the cost index for the year is 1.05 Required: Compute the dollar-value LIFO inventory valuation for the December 31, 2013, inventory, 8, OK Super Stores Inc. uses the average cost retail method to estimate its ending inventory. Information at 2une 30+ 2013, is as follows: cost Retail Beginning inventory §105,000 Net purchases 375,000 Net sales 380,000 Ending inventory 64,000 Required: Compute the cost-to-retail percentage used by OK 49, Open Pit Mining operates 2 coPPET mine in Wyoming. Acquisition, exploration, and development costs totaled $8.2 vrillion, Extraction activities began oP july 1, 2023; ‘after the copper is extracted in approximately six years, Open PE obligated to restore the land to its original condition, including constructing ® park. The company's ‘controller has provided the Following thee cash flow possibilities for the restoration costs: ‘cash Flow Probability a $700,000 30% 800,000 25% 900,000 45% ‘The company’s credit-adjusted, rishefree rate of interest is 49%, and 1 fiscal year ends on December 31. Required: a, What is the initial cost of the COpPEr mine? (Round computations tO nearest whole dollar.) row much accretion expense will OPS? pit report in its 2013 income statement? What is the carrying value (book value) of the asset retirement obligation that Open Pit will report in its 2023 balance sheet? 4. Assume that actual restoration costs incurred in 2019 totaled 860,000. What aespunt of gain or foss will Open Pit recognize on retirement of the liability?10. On June 30, 2012, Quarker State purchased a drilling machine for $840,000. The esti mated useful life of the machine is 10 years, and no residual value Is anticipated. An important component of the machine is the drill housing component that will need to be replaced in five years. The $200,000 cost of the drill housing component is included in the $840,000 cost of the machine. Quarker State uses the straight-line depreciation method for all machinery. The company's fiscal year ends on December 31. Required: a. Calculate depreciation on the drilling machine for 2012 and 2013 applying the typical U.S. GAAP treatment. b. Repeat requirement 1 applying IFRS.