Based on the Finical accounting theory( William R. Scott)Ch1-CH5

please explain

Coffee Ltd. operates under the following details: The company acquired an asset on January 1, 2020 The company financed the purchase of the asset by obtaining bank debt The revenues earned depend on whether the state of nature is positive or negative. There is a 40% chance that the state of nature will be negative, and a 60% chance that the state of nature will be positive. If positive, the cash flows to the company will be $1,200. If negative, the cash flows will be $300. . The probabilities and cash flows given are objectively determined and universally known. . The economy-wide interest rate is 10% per year. On December 31, 2020 the asset will have no value and no disposal costs . On December 31, 2020 Coffee Ltd's management will announce if the state of nature was positive or negative. Round all figures to two decimal places Assuming that the factors above conform with "ideal conditions", what is retained earnings (deficit) on the balance sheet at December 31, 2020 if the state of nature is negative Retained earnings (deficit) ($360.00) Retained earnings (deficit) ($540.00) Common stock $763.84; retained earnings (deficit) ($540.00) Retained earnings $540.00 Retained earnings $360.00 Assuming that the factors above confirm with "ideal conditions", what is revenue for the year ended December 31, 2020 if the state of nature is negative $145.79 $840.00 $300.00 $1.200.00 $76.36 Assuming that the factors above confirm with "ideal conditions", what is net income (loss) for the year ended December 31, 2020 if the state of nature is negative $394.21 ($463.64) $360.00 $436.36 ($540.00) Does this scenario conform with ideal conditions as described in Chapter 2 of you textbook? Yes, all four ideal conditions are present No, there is no fixed interest rate No, the interest rate is above the prime interest rate No, there is no publicly observable state realization No, there is information asymmetry Is there information asymmetry in this environment at any point in time Yes, there is adverse selection Yes, there is insider trading Yes, there is moral hazard No, there is no information asymmetry under ideal conditions If Coffee Ltd. completes all sales of their products in Euros and reports their financial statements in Canadian dollars, what information do investors and potential investors need to see in the notes to the financial statements in order to be able to assess earnings persistence? i. Amount of sales in Euros; ii. Foreign currency transactions accounting policy: iii. Risk mitigation techniques Neither of i, ii, and iii Oi, ii, and iii Oi i and