1) Annual payment of $50,000 paid at the end of each year for the next 6 years. Interest rate is 7%.

What is the present value using the Excel formula ?

2) ABC Productions Limited operates a string of theaters across Canada. Seventy-five percent of all revenues are derived from the sale of movie tickets, advertising in the theater, and in-house food and beverage sales. The theater division (as this part of the business is called) generates 90% of the company's profit. The other 10% of the profits (and 25% of the revenues) come from the live theater division. The live theater division produces and presents live theater in three unique playhouses that are owned by the company. ABC disposed of the live theater division at the end of the year. Is the live theater division a component for the purposes of determining whether this is a discontinued operation?

3) Assume that ABC company reports net income of $450,000 and declares and pays preferred dividends of $60,000 for the year. The weighted average number of common shares outstanding during the year is 110,000 shares. What is the EPS for ABC company?

4) Indicate whether cash balance would increase or decrease on the statement of cash flows prepared using indirect method in the following situations

a) Increase in accounts receivable

b) Decrease in accounts payable

c) Decrease in Inventory

5) Indicate which category of cash activities the following should be classified into

a) Payment of cash dividend

b) Sales of land

c) issuance of bond payable

6) What is the recognition criteria under ASPE?

7) What are the 2 characteristics of quality earning?

8) What is the recognition criteria under ASPE?

9) Explain full disclosure principle.