QUESTIONAS

[4:30 PM, 2/27/2022] flo: Additional instructions from the student: SUBJECT: BUSINESS ETHICS JOURNAL REVIEW

References:

any news, articles, issues, research regarding to the subject Business Ethics

please ensure the guidelines [4:31 PM, 2/27/2022] flo: The purpose of this assignment is to provide visual for displaying data.

Use the data from the Tableau VLab Activity to provide a visual representation of the data in the form of a report, chart, or graph. Include a brief rationale explaining how the data were organized and used in the creation of the visualization and why you chose the specific visual element.

Additional instructions from the student: The purpose of this assignment is to create a visual for displaying data.

Use the data from the Tableau VLab Activity to create a visual representation of the data in the form of a report, chart, or graph. Include a brief rationale explaining how the data were organized and used in the creation of the visualization and why you chose the specific visual element.

MCO implementation has had a significant impact on the production of crude palm oil (CPO) due to tight standard operating procedures (SOPs) and a lower workforce. The palm oil supply is expected to remain tight until the 1st quarter of 2022 as there is slow production due to the MCO restriction. Based on current news of the limited supply of crude palm oil, Mr. Jorgen, Chief Executive Officer (CEO) of Simplistic Bhd, anticipates that the price of CPO will increase between now and March 2022. The current market price of CPO is RM3,500 per metric tonne. However, due to a tight budget, the purchase could not be made immediately. Mr. Jorgen proposed that the management use CPO futures to hedge against the CPO price increase. The March FCPO in the futures market is trading at RM3,580. Assume that the basis is equal to zero in March 2022.

Required: i. Explain the risk that Simplistic Bhd is exposed to and how it affects its profit. Comment how the measure proposed by the CEO can mitigate the risk. No calculation is required.

Explain and show Graphically the effect of a decrease in interest rate (ID) US $ on the expected future exchange rate (RF) on the equilibrium dollar exchange rate using the symbols below .

E 1 and E2 (Exchange rates)

Rd 1 and id (Return on Dollar deposits and Interest Rate on Dollar deposits)

Rf 1 and Rf2 (Return on Foreign deposits

tackle all

Wexdorf Consulting Ltd. has been in business for several years, providing software consulting to its customers on an annual contract or special assignment basis. All work is done over the Internet, although some travel is occasionally required for meeting with customers to negotiate contracts and renewals of contracts, as well as resolving possible disputes in invoicing for their services. Wexdorf operates out of rented premises in Toronto and Stratford, Ontario (see note 5 below) and has a modest investment in equipment that is used by the consulting team. Wexdorf is a private company that follows ASPE and that has a calendar year end.

At the end of each year, Wexdorf obtains the services of an accountant to complete the annual accounting cycle of the business and prepare any year-end adjusting of journal entries, financial statements, and corporate tax returns.

Upon arrival in early 2020, the accountant was given an unadjusted trial balance (excel template provided) and obtained the following additional information to complete his work.

Additional information:

Management has been going over the list of accounts receivable for possible accounts that are not collectible. One account for $700 must be written off. In the past, 5% of the balance of all accounts receivable has been the basis of an estimate for the required balance in the allowance for doubtful accounts. Management feels that this estimate should be followed for 2020. After doing a count of supplies on hand, management determined that $400 of supplies remained unused at December 31, 2020. The account balance in Prepaid Insurance of $4,000 represents the annual cost of the renewal of all of Wexdorf's insurance policies that expire in one year. The policies' coverage started April 1, 2020. FV-NI Investments are long-term investments. The fair value of the portfolio of investments was $22,500 at December 31, 2020, based on quoted market values on the TSX. In March 2020, Wexdorf closed its Stratford, ON location. The Stratford location had some equipment that it sold for proceeds of $300 cash. The entry made when depositing the cash was debit Cash, credit Gain on Disposal of Equipment. The original cost of the equipment was $4,300 and the accumulated depreciation was $4,200. Up to its closure, the Stratford location generated Service Revenue of $11,750 in 2020 and had the following expenses that are included in the unadjusted trial balance: Salaries and Wages, $3,600/ Rent, $9,000/ Telephone and internet expense, $300/ Office expense, $500. The depreciation expense for the remaining equipment was calculated to be $7,200 for the 2020 fiscal year. The notes receivable from customers are due October 31, 2023, and bear interest at 5%, with interest paid semi-annually. The last interest collected related to the notes was for the six months ended October 31, 2020. Bank loans are demand bank loans for working capital needs and vary in amount as the needs arise. The bank advised that the interest charge for December 2020 that will go through on the January 2021 bank statement is in the amount of $200. Unpaid salaries and wages at December 31, 2020, totalled $790. These will be paid as part of the first payroll of 2021. After some analysis, management informs the accountant that the Unearned Revenue account should have a balance of $1,000. Wexdorf was sued by one of its former clients for $50,000 for giving bad advice and instructions. Upon discussion with legal counsel, it has been agreed that it will likely take $5,000 to settle this dispute out of court, in the next fiscal year. No entry has yet been recorded. The accountant is told that a sublet lease arrangement for some excess office space has been negotiated and signed. It will provide Wexdorf with rent revenue starting on February 1, 2021, at a rate of $400 per month. Wexdorf has been making income tax instalments as required by the Canada Revenue Agency. All instalment payments have been debited to the Income Taxes Payable account. After recording all of the necessary adjustments and posting to the general ledger, management drafted a new trial balance to arrive at the income before income taxes. Using this result, the accountant prepared the tax returns, and determined that a tax rate of 28% needed to be applied to the income before income tax amount. The necessary adjusting entry for taxes has not yet been recorded. Instructions

a. Prepare ll necessary adjusting and correcting entries required based on the information given, up to item 13

b. Post the journal entries in adjustment columns and arrive at an adjusted trial balance (use excel tab c. Trial Balance)

10. What should a successful brand promise be able to do? A. Customize the product for each customer B. Clarify the company's processes C. Communicate an appealing benefit D. Convey a high-quality image 11. Which of the following is one way that freedom in a private enterprise system is limited by laws: A. Certain occupations must be licensed. B. All workers must take ability tests. C. Specific pay scales are regulated. D. Employees must register with the state. 12. During the month of July, sales at Handy's Shoe Mart totaled $2,500. The cost of the shoes was $1,025. The owner paid $866 for supplies, insurance, rent, and utilities during the month. The $609 left over represents the owner's A. net profit. B. gross profit. C. sales income. D. operating expenses. 13. Non-corporations are taxed as pass-through entities, meaning that A. profits and losses are claimed on owners' personal tax returns. B. they do not have to pay payroll taxes. C. their income tax rates are lower than those of corporations. D. they pay only state and local taxes. 14. Which of the following activities is an example of preparing before attempting to sell an idea: A. Explaining solutions to audience needs B. Determining the details of your idea C. Overcoming objections from the audience D. Affirming the audience's decision to "buy" 15. Managers are more likely to be able to persuade employees to follow new procedures if the managers have A. organizational skills. B. credibility. C. enthusiasm. D. self-motivation. 16. Ali wants to negotiate with her boss to take on more job responsibilities. Before approaching her boss, Ali needs to determine her boss's position and A. abilities. B. interests. C. standards. D. procedures. 17. After writing your personal vision, what must you do to achieve it? A. Commit to your vision through hard work and dedication. B. Put your vision in a safe space and look at it again in five years. C. Get the highest-paying job that you can find out of high school. D. Spend all of your free time working on self-improvement. 18. Ryan keeps a list of his goals to remind himself of what he's working toward. Which tip for smart goal setting is Ryan following? A. Putting goals in writing B. Tying goals to a timetable C. Making goals specific D. Making goals difficult but possible 16. The current price of a non-dividend paying stock is 40 and the continuously compounded risk-free interest rate is 8%. The following table shows call and put option premiums for three-month European of various exercise prices: Exercise Price Call Premium Put Premium 35 6.13 0.44 40 2.78 1.99 45 0.97 5.08

Millennium Capital Management, Inc., (MCM) acquired a 90% interest in NextGen, Inc. MCM's Financial Manager, Matthew Steven, has prepared draft memo to the CFO, Hannah Jordan, advising her on how the company should account for certain aspects of the acquisition. Mr. Steven would like you to review the draft memo and make any necessary revisions to comply with generally accepted accounting principles.

To revise the document, click on each segment of underlined text below and select the needed correction, if any, from the list provided. If the underlined text is already correct in the context of the document, select [Original Text] from the list. If removal of the underlined text is the best revision to the document, select [Delete Text] from the list if available.

To: Hannah Jordan, CFO From: Matthew Steven, Financial Manager Re: Accounting for Acquisition of NextGen

The fair value of the consideration that MCM transferred to acquire its interest in NextGen is $9,000,000.

We must expense the $190,000 payment to Jacob, Sullivan, & Duke.

On its acquisition-date consolidated balance sheet, MCM will report a noncontrolling interest of $900,000 in NextGen.

On the date of MCM's acquisition of a 90% interest in NextGen, MCM will recognize goodwill of $500,000 on the acquisition. : Your company has issued several financial instruments in the past year and you must determine how to account for these under ASPE and IFRS.

The first financial instrument was a compensatory stock option plan that was granted to 12 key management positions for the first time. The company wanted to provide these employees with additional compensation and due to financial constraints could not increase salaries. The plan granted these management employees 7,500 options each to purchase shares at $40 each when they were actually worth $80. The options were granted on January 1, 2021 and were exercisable within a two year period beginning January 1, 2023 if the employee was still employed with the company at the time of exercise. A fair value options pricing model determined total compensation to be $820,000. Assume that there are no forfeitures. On January 1, 2023, two employees exercised the options. Show the journal entries for December 31, 2021, December 31, 2022, January 1, 2023 for ASPE and IFRS. If the entries are the same under ASPE and IFRS you can just state they are the same.

The second financial instrument was a loan from a shareholder. The company borrowed a $6 million dollar loan at a rate of 4% when the market rate of interest was 6%. The company received the lower rate of interest by agreeing that in five years time, the lender would have the option to receive repayment in full in cash or to accept 40,000 common shares as full repayment. Assume the loan was advanced on January 1, 2021. Both ASPE and IFRS.

A third financial instrument was a forward contract. The company agreed to buy $2 million in U.S. currency for $2,100,000 (U.S. $1 = Canadian $1.05). On December 14, 2021 the new value was U.S. $ = Canadian $ 1.08.

On September 1, 2021, your company sold at 103 (plus accrued interest) 4,000 of its $1,000 face value, 10-year, 8%, non-convertible bonds with detachable stock warrants. Each bond carried two detachable warrants; each warrant was for one common share at a specified price of $12 per share. Shortly after issuance, the warrants were selling for $6 each. Assume there is no fair value available for the bonds. Interest is payable on December 1 and June 1. Show both methods.

The company established a stock appreciation rights program for the president. The program entitled the president to receive cash for the difference between the common shares fair value and the pre-established price of $20 which was the fair value on January 1, 2021 on 20,000 SARs. The date of the grant was January 1, 2021 and the required employment (service period) is two years. Assume the common shares' fair value fluctuated as follows: December 31, 2021, $24; December 31, 2022, $23 and December 31, 2023, $26. Assume, also, that the president exercised half of the SARs on January 1, 2024. Use ASPE but indicate how IFRS determines the value of Share Appreciation Rights

The last item that you need to consider is a contract that your company signed on November 15, 2021 agreeing to purchase 100 barrels of oil at $99 per barrel. Your company anticipated that the price of oil would increase significantly. Since the company requires oil in the production of its product and will need to take delivery of the oil in the new year, they wanted to reduce the risk of increased costs for the oil.

Required:

Prepare ll the 2021 journal entries to account for the financial instruments under both ASPE and IFRS. For ASPE assume that the company chooses to value the equity component of compound financial instruments at $0. For financial instruments 1 and 5, also show the journal entries for subsequent years. Determine the carrying value of each statement of financial position item at year end, December 31, 2021, under both ASPE and IFRS.

A trader interested in speculating on volatility in the stock price is considering two investment strategies. The first is a 40-strike straddle. The second is a strangle consisting of a 35-strike put and a 45-strike call. Determine the range of stock prices in 3 months for which the strangle outperforms the straddle. (A) The strangle never outperforms the straddle. (B) 33.56 < ST < 46.44 (C) 35.13 < ST < 44.87 (D) 36.57 < ST < 43.43 (E) The strangle always outperforms the straddle. 17. The current price for a stock index is 1,000. The following premiums exist for various options to buy or sell the stock index six months from now: Strike Price Call Premium Put Premium 950 120.41 51.78 1,000 93.81 74.20 1,050 71.80 101.21 Strategy I is to buy the 1,050-strike call and to sell the 950-strike call. Strategy II is to buy the 1,050-strike put and to sell the 950-strike put. Strategy III is to buy the 950-strike call, sell the 1,000-strike call, sell the 950-strike put, and buy the 1,000-strike put. Assume that the price of the stock index in 6 months will be between 950 and 1,050. Determine which, if any, of the three strategies will have greater payoffs in six months for lower prices of the stock index than for relatively higher prices. (A) None (B) I and II only (C) I and III only (D) II and III only (E) The correct answer is not given by (A), (B), (C), or (D) 20. The current price of a stock is 200, and the continuously compounded risk-free interest rate is 4%. A dividend will be paid every quarter for the next 3 years, with the first dividend occurring 3 months from now. The amount of the first dividend is 1.50, but each subsequent dividend will be 1% higher than the one previously paid. Calculate the fair price of a 3-year forward contract on this stock. (A) 200 (B) 205 (C) 210 (D) 215 (E) 220 21. A market maker in stock index forward contracts observes a 6-month forward price of 112 on the index. The index spot price is 110 and the continuously compounded dividend yield on the index is 2%. The continuously compounded risk-free interest rate is 5%. Describe actions the market maker could take to exploit an arbitrage opportunity and calculate the resulting profit (per index unit). (A) Buy observed forward, sell synthetic forward, Profit = 0.34 (B) Buy observed forward, sell synthetic forward, Profit = 0.78 (C) Buy observed forward, sell synthetic forward, Profit = 1.35 (D) Sell observed forward, buy synthetic forward, Profit = 0.78 (E) Sell observed forward, buy synthetic forward, Profit = 0.34 24. Determine which of the following statements is NOT a typical reason for why derivative securities are used to manage financial risk. (A) Derivatives are used as a means of hedging. (B) Derivatives are used to reduce the likelihood of bankruptcy. (C) Derivatives are used to reduce transaction costs. (D) Derivatives are used to satisfy regulatory, tax, and accounting constraints. (E) Derivatives are used as a form of insurance. 26. Determine which, if any, of the following positions has or have an unlimited loss potential from adverse price movement in the underlying asset, regardless of the initial premium received. I. Short 1 forward contract II. Short 1 call option III. Short 1 put option (A) None (B) I and II only (C) I and III only (D) II and III only (E) The correct answer is not given by (A), (B), (C), or (D) 29. The dividend yield on a stock and the interest rate used to discount the stock's cash flows are both continuously compounded. The dividend yield is less than the interest rate, but both are positive. The following table shows four methods to buy the stock and the total payment needed for each method. The payment amounts are as of the time of payment and have not been discounted to the present date. Outright purchase A Fully leveraged purchase B Prepaid forward contract C Forward contract D Determine which of the following is the correct ranking, from smallest to largest, for the amount of payment needed to acquire the stock. (A) C < A < D < B (B) A < C < D < B (C) D < C < A < B (D) C < A < B < D (E) A < C < B < D 30. Determine which of the following is NOT a distinguishing characteristic of futures contracts, relative to forward contracts. (A) Contracts are settled daily, and marked-to-market. (B) Contracts are more liquid, as one can offset an obligation by taking the opposite position. (C) Contracts are more customized to suit the buyer's needs. (D) Contracts are structured to minimize the effects of credit risk. (E) Contracts have price limits, beyond which trading may be temporarily halted. 32. Judy decides to take a short position in 20 contracts of S&P 500 futures. Each contract is for the delivery of 250 units of the index at a price of 1500 per unit, exactly one month from now. The initial margin is 5% of the notional value, and the maintenance margin is 90% of the initial margin. Judy earns a continuously compounded risk-free interest rate of 4% on her margin balance. The position is marked-to-market on a daily basis. On the day of the first marking-to-market, the value of the index drops to 1498. On the day of the second marking-to-market, the value of the index is X and Judy is not required to add anything to the margin account. Calculate the largest possible value of X. (A) 1490.50 (B) 1492.50 (C) 1500.50 (D) 1505.50 (E) 1507.50

Define the importance of collecting information from CIB for credit management. Write the reasons of big financial crimes in recent banking industry. 10 (b) Explain-Without collateral securities only Trust Receipt (RT) in enough for funded liabilities? Give your comments on practical problems of TR based liability in banking industry. 10 6. (a). Mr. Karim has taken a Term loan of Tk. 20.00 lac at 10% interest rate for 05 years under quarterly repayment system. Prepare loan amortization schedule. 10 (b) What are the constituents and minimum requirement of capital in Tier I capital, Additional Tier 1 Capital and Tier 2 Capital under Basel III in Bangladesh? 10 7. (a) Describe the facilities of using plastic money. Give your suggestions to minimize the risk of plastic money and Mobile Banking. 10 (b) What are the types of business risk? Describe the role of a risk Manager. How risk starts from opening of an account? 10 8. (a) What is SME financing? What SME products are offered by different banks? Write salient features of SME Products. (b) What roles are playing by Small & Medium Enterprises for the economic development of Bangladesh? Write. 10 10 9. (a) Write down names of components of Market Risk of a Bank-In detail. 10 (b) Write names of departments of Banks their policies & process for mitigating market risk of the bank. 10 10. Write short notes (any four) : (a) Bangladesh Automated Clearing House (BACH); 5x4=20 (b) FUNDED & NON-FUNDED LOANS; (c) EARLY WARNING SYSTEM; (d) Off-Shore Banking; MCO implementation has had a significant impact on the production of crude palm oil (CPO) due to tight standard operating procedures (SOPs) and a lower workforce. The palm oil supply is expected to remain tight until the 1st quarter of 2022 as there is slow production due to the MCO restriction. Today is 15 January. Simplistic Bhd forecasted that they need 425 metric tons of CPO in March. It is to ensure that there will be no disruption to the production of their cosmetics line so that their contract to supply cosmetics products to the distributors will not be interrupted. Based on current news of the limited supply of crude palm oil, Mr. Jorgen, Chief Executive Officer (CEO) of Simplistic Bhd, anticipates that the price of CPO will increase between now and March 2022. The current market price of CPO is RM3,500 per metric tonne. However, due to a tight budget, the purchase could not be made immediately. Mr. Jorgen proposed that the management use CPO futures to hedge against the CPO price increase. The March FCPO in the futures market is trading at RM3,580. Assume that the basis is equal to zero in March 2022.

Required: i. Explain the risk that Simplistic Bhd is exposed to and how it affects its profit. Comment how the measure proposed by the CEO can mitigate the risk. No calculation is required.