Ahmed Solomon has run his printing business since 2009 in Somolu. He started with a second hand Gestetner machine but about seven years ago had acquired a complete suite of equipment and was doing very well. In order to position himself to handle much bigger jobs he decided to incorporate his business. He has three sons and a daughter. He registered Solomonic Printers as a limited liability company with a share capital of N500,000.00. He held N200,000.00 shares directly and took out a debenture of N250,000.00. He gave his wife shares of N20,000.00 and registered N10,000.00 in the names of his sons.
Jensen Jibiti was one of his regular customers and often gave him printing jobs running into several millions of naira. Some seven months ago Jibiti introduced a business of printing fake dollars to Ahmed’s son who was running the business as the managing director. Lured on by Jibiti that son began to divert much of the company’s business to this business as an advance against payments by Jibiti. The company became insolvent in July 2021 and had to be wound up. The liquidator wants to know whether he should pay Ahmed first or the other creditors who had given advances on printing jobs. If he paid Ahmed there would not be enough to satisfy the other creditors. He wishes to take various steps against the managing director, as well. Advise him
Answers
In this scenario, the company has become insolvent due to the actions of Ahmed Solomon's son, who, in collusion with Jensen Jibiti, diverted much of the company's business to print fake dollars as an advance against payments by Jibiti.
Now, the liquidator wants to know whether he should pay Ahmed first or the other creditors who had given advances on printing jobs. Advise him.The liquidator should prioritize the payment of creditors who had given advances on printing jobs over Ahmed Solomon as per the principles of priority in liquidation. In a winding-up, the liquidator must follow certain rules when distributing the assets of the insolvent company.
According to the rules of priority, certain claims have priority over others. Section 530(1) of the Companies and Allied Matters Act (CAMA) provides a list of preferred creditors whose claims are given priority over others. The priority order of distribution is as follows:
Costs and expenses of winding-up ;
Outstanding salaries, wages, and other benefits to employees;
Local government tax and dues;
Payments due to the Federal Inland Revenue Service (FIRS);
Payments due to any other creditor with a valid fixed charge;
Payments due to other creditors who have no valid fixed charge;
Payments due to shareholders for the return of capital (paid in cash);
Payments due to shareholders as dividends;
In this case, since Ahmed Solomon is a shareholder and has a debenture, he falls under the seventh category of preferred creditors, and his claim must be paid after the first five categories have been settled, but before other unsecured creditors such as those who gave advances on printing jobs.
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Related Questions
Abacus Bhd has entered into the following transactions after the year end and wish to know how to deal with them in a cash flow statement, as they are unsure of the meaning of the definition of cash and cash equivalents. Abacus Bhd had decided after the year end to deposit the funds with the bank in two term deposit accounts as follows:
(i) RM3 million into a 12-month term account, earning 3.5% interest. The cash can be withdrawn by giving 14 days’ notice but Angel will incur a penalty, being the loss of all interest earned.
(ii) RM7 million into a 12-month term account earning 3% interest. The cash can be withdrawn by giving 21 days’ notice. Interest will be paid for the period of the deposit but if money is withdrawn, the interest will be at the rate of 2%, which is equivalent to the bank’s stated rate for short-term deposits.
Abacus Bhd is confident that it will not need to withdraw the cash from the higher-rate deposit within the term, but wants to keep easy access to the remaining RM7 million to cover any working capital shortfalls which might arise.
Required: Advise Abacus Bhd on whether any of the above transactions should be treated as cash equivalent. Support your answer with reasons. (15 marks)
Answers
Abacus Bhd has entered into two transactions involving term deposit accounts with a bank. The first transaction involves depositing RM3 million into a 12-month term account, earning 3.5% interest.
This cash can be withdrawn with a 14-day notice, but the company will lose all interest earned if the withdrawal is made. The second transaction involves depositing RM7 million into another 12-month term account, earning 3% interest. Withdrawals from this account require a 21-day notice, and if money is withdrawn, the interest rate will be reduced to 2%, which is the bank's stated rate for short-term deposits.
Now, in terms of the cash flow statement, Abacus Bhd wants to know if any of these transactions should be treated as cash equivalents. Cash equivalents are short-term, highly liquid investments that are easily convertible into cash. They typically have maturities of three months or less from the date of purchase.
In this case, both transactions involve term deposit accounts with maturities of 12 months. Since the maturities exceed the three-month threshold for cash equivalents, neither of these transactions should be classified as cash equivalents on the cash flow statement.
While the funds deposited in these term accounts are still considered cash, they do not meet the criteria of being a cash equivalent due to their longer-term nature. The purpose of classifying cash equivalents separately is to highlight highly liquid investments that can be easily converted into cash in the short term.
To summarize, Abacus Bhd should treat these transactions as cash on the cash flow statement but not as cash equivalents. It's important for the company to accurately classify these transactions to provide a clear picture of its liquidity position.
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The average mututal fund includes 90-200 companies.
O True
O False
Answers
Answer:
I think it will be false
what preparatory step may be necessary when devising a strategy or plan of action to exercise?
Answers
Wellness is helping, training, and encouraging others to achieve well-being in all areas of life: social, physical, emotional, occupational, intellectual, environmental, and spiritual.
Through awareness, education, and inspiration, people are encouraged to live healthy lifestyles. The National Wellness Institute endorses the Dimensions of Wellness program.
Students can lead wellness programs for individuals and groups. Students learn administrative and business skills to administer health promotion and wellness interventions in this program.
Fitness programs can improve health. Physical activity can reduce chronic illness risk, enhance balance and coordination, help you lose weight, and improve sleep and self-esteem.
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The right way of asking the question is:
What preparatory step may be necessary when devising a strategy or plan of action?
A) Purchasing walking shoes for a fitness class
B) Selecting a behavior to change
C) Rewarding yourself with a movie
D) Determining which events trigger the behavior
ABC company is considering whether or not to invest in a joint venture. The initial cost is $8.2 million and the estimated operating cash flows are shown in the following table: Period Cash Flow 1 $900,000 2 $930,000 3 $650,000 The firm's interest in the venture can be sold after three years with an estimated after-tax salvage value of $8 million. What is the IRR of this investment?
The firm's interest in the venture can be sold after three years with an estimated after-tax salvage value of $8 million. What is the IRR of this investment?
Group of answer choices
a 10.5%
b 14.1%
c 9.4%
Answers
The firm's interest in the venture can be sold after three years with an estimated after-tax salvage value of $8 million. The IRR of this investment is approximately 14.1%.
To calculate the IRR, we need to find the discount rate that makes the present value of the cash inflows equal to the initial investment cost. In this case, the initial cost is $8.2 million, and the estimated cash flows are as follows:
Period 1: $900,000
Period 2: $930,000
Period 3: $650,000
The salvage value after three years is $8 million.
To calculate the IRR, we need to set up the following equation and solve for the discount rate:
$900,000/(1+r)^1 + $930,000/(1+r)^2 + $650,000/(1+r)^3 + $8,000,000/(1+r)^3 = $8,200,000
By trial and error or using a financial calculator or software, the approximate discount rate (IRR) that satisfies this equation is approximately 14.1%.
The IRR of this investment in the joint venture is approximately 14.1%. This means that the project's internal rate of return is 14.1%, indicating that the investment is expected to generate a return that exceeds the company's cost of capital.
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Help what’s the answer?
Answers
The long-run aggregate supply curve is only influenced by capital, labor, and technology.Since it is vertical over the long term, more capital, more labor, and better technology could cause the curve to turn to the right.
Although there are a number of different ways to measure economic growth, gross domestic product (GDP) is the most widely used and reported indicator.
What long-term factors influence output?
Instead, in the long run, an economy's output is only limited by the resources and technology it has available to it.The long-run aggregate supply curve (LRAS), which is vertical at the economy's potential output, exemplifies this concept.
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as businesses expand to serve markets, new jobs will be created in service and manufacturing. there will also be more to fill those jobs.
Answers
As businesses expand to serve larger markets, people will be needed to fill positions in the service and manufacturing sectors. This will create a large number of new jobs in these areas, which require different skills and knowledge.
In addition, businesses will need to hire more people to handle the increased workload associated with serving a larger market. This will result in a greater need for skilled workers and higher wages to attract the best talent. In addition, businesses will need to invest in new technology and equipment to meet the demands of the larger market, leading to further investment in the local economy. This will create new employment opportunities and create a ripple effect of job growth in various sectors.
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On September 3, 2018, Able, a single individual, purchased § 1244 stock in Red Corporation from his friend Al for $60,000. On December 31, 2018, the stock was worth $85,000. On August 15, 2019, Able was notified that the stock was worthless. How should Able report this item on his 2019 tax return?
Answers
He should ask them why it was worthless then after a while of thinking maybe have and idea on how to use it again
how does lever simplify the work? explain.
Answers
Explanation:
A lever works by reducing the amount of force needed to move an object or lift a load. A lever does this by increasing the distance through which the force acts. ... Instead, they make the work easier by spreading out the effort over a longer distance.
Vendors submit invoices prior to receiving purchase orders from companies.
True
False
Answers
Answer:
False
Explanation:
Only after the purchase was approved
what is pupil reflex?
Answers
Answer:
constriction of the pupil that is elicited by an increase in illumination of the retina
Explanation:
Determining all information systems projects and assets is central to a(n) ________ analysis.
Answers
Determining all information systems projects and assets is central to a(n) portfolio analysis.
Portfolio analysis is a branch of investment management that enables market participants to analyze and evaluate the performance of portfolios (stocks, bonds, alternative investments, etc.), both in relative and absolute terms. purpose. Measure associated risks.
Analyzing a portfolio's risk and reward characteristics can help you pursue your investment goals. Portfolio analysis is a useful tool for evaluating how an investment portfolio is performing in terms of risk and return.
Portfolio analysis in strategic management provides an understanding of how current and future business portfolios (products or services) can be shaped to reduce risk and increase the impact of implemented strategies to operate in a changing environment. You can answer important questions.
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3. How would the length of the shadow at noon compare with the length of the shadow in the late afternoon?
Answers
In the morning your shadow will point west and in the afternoon it will point east. If your shadow is long, it is near sunrise or sunset. Your shadow is shortest around noon
The length of the shadow at noon would is quite different from the length of shadow in late afternoon.
What is Shadow?A shadow is a dark spot that is created when light is blocked.
The light could be blocked by an object thereby creating a shadow.
The length of shadow varies depending on the angle of the light.
Therefore, the length of the shadow at noon would is quite different from the length of shadow in late afternoon.
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which of the following is not a type of section 1231 asset? multiple choice question. personal use property depreciable real property personal property and intangibles land
Answers
personal use property is not the type of section 1231 asset.
Section 1231 assets are assets that are used in a trade or business and held for more than one year, and they include depreciable real and personal property, as well as intangible assets like patents and copyrights. However, personal use property, such as a primary residence or a personal vehicle, is not considered a section 1231 asset, since it is not used in a trade or business. Personal use property is instead subject to capital gains treatment under different tax rules.
Section 1231 of the Internal Revenue Code governs the tax treatment of property used in a trade or business and held for more than one year. Under this section, gains and losses from the sale of section 1231 assets are classified as either ordinary income or capital gains, depending on the type of asset and the holding period.
Section 1231 assets include depreciable real and personal property, such as buildings, equipment, and vehicles, that are used in a trade or business. Intangible assets like patents and copyrights are also considered section 1231 assets if they are used in a trade or business.
However, personal use property, such as a primary residence or a personal vehicle, is not considered a section 1231 asset. This is because personal use property is not used in a trade or business and is instead subject to capital gains treatment under different tax rules.
The tax treatment of gains and losses from section 1231 assets can be complex, and it is important for businesses to understand the rules to properly account for their assets and liabilities. Tax professionals can provide guidance on how to properly classify section 1231 assets and how to account for gains and losses from the sale or exchange of these assets.
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Which aspect is an essential feature of a joint venture between two companies that come together for global trade?
A.
shared production facilities
B.
shared marketing staff
C.
shared workspaces
D.
joint equity ownership
Answers
Answer:
D. joint equity ownership
Explanation:
The aspect that is an essential feature of a joint venture would be joint equity ownership. That is because in a joint venture all parties combine all of their resources and share in both the liability and profits of the company. Joint Equity Ownership is the main part of this as it explains how these companies joint their assets in order to make as much profit as possible from their business venture.
What is most often the cause for a change in career or lifestyle?
Answers
Answer:
Adjustment, is the right answer.
Explanation:
Adjustment is the reason that changes the career or lifestyle. For example, a girl who is working, if she gets married then there are chances that she will continue her professional life but after getting pregnant she has to adjust herself to not go outside. She will avoid going to the office, shopping malls, shopping, etc. Therefore, she has adjusted herself with the situation that changes her carrier (working professional) and her lifestyle.
why is it important to start with temporary investments that lead to permanent investments
Answers
These investments are commonly used when a business has a short-term excess of funds on which it wants to earn interest, but which will be needed to fund operations within the near future. These types of investments are usually very safe, but also have quite a low rate of return.
Doug offers to sell a computer router to Eve, but it is stolen before Eve accepts. Doug:
a. is not required to obtain a similar item for Eve, because it could take an unreasonable period of time to obtain a replacement.
b. is not required to obtain a similar item for Eve, because the theft of the original router terminated the offer.
c. must obtain a similar item for Eve, if Eve offers to pay before delivery.
d. must obtain a similar item for Eve, if Doug tells Eve that he accepts the offer.
Answers
Answer:
The answer is B
Explanation:
Since its been stolen he can't offer her anything anymore based on that transaction
janice has $5,000 invested in a bank that pays 6.2% annually. how long will it take for her funds to triple?
Answers
janice has $5,000 invested in a bank that pays 6.2% annually. It would take a total of 18.26 yrs for her funds to triple.
A fund is a grouping of dollars set aside for a particular objective. A fund can be created for a variety of purposes, such as the development of a new civic centre by the municipal, the awarding of prizes at a college, or indeed the payment of customer claim by an insurance carrier. To produce returns for its investors, funds usually invest and use competent management. Individuals and their families may also employ funds for other purposes such as crisis and education preservation. Pension funds, actions that benefit, foundations, and endowments are a few samples of prominent sorts of funds.
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2. What does a correlation coefficient of 0.76 between two assets indicate?
(1 point)
Answers
Answer:
The two assets are highly correlated
Explanation:
Just took the test
the united states is considered to have a high standard of living because:
A. the most important sector's of its economy are agricultural
B. most of its citizens have access to necessities like food.
C. a large number of its citizens struggle to find good jobs.
D. its currency is no longer tied to precious metals like gold.
Answers
Answer:
B. most of its citizens have access to necessities like food.
Which of these questions is unfair for a potential employer to ask?
A. What is your name?
B. Which race do you belong to?
C. Did you graduate from high school?
D. What is your address?
E. What was your previous job?
Answers
Answer: Out of the given options, the question that is unfair for a potential employer to ask is:
B. Which race do you belong to?
Explanation:
Inquiries about race, ethnicity, or any other form of protected characteristics are generally considered discriminatory and unfair in a job interview or hiring process. Employment decisions should be based on qualifications, skills, and relevant experience, rather than an individual's race or ethnicity. Such questions are inappropriate and may violate laws and regulations pertaining to equal employment opportunity and anti-discrimination measures.
The other questions (A, C, D, and E) are generally considered acceptable and relevant in a job interview. Asking for a candidate's name (A) is necessary for identification purposes, inquiring about high school graduation (C) is a standard educational background question, asking for the address (D) may be needed for future contact or administrative purposes, and inquiring about the previous job (E) is relevant to assess the candidate's experience and qualifications for the position.
Which one of the following statements is incorrect?
A: Depreciation is a non-casn expense
B: Depreciation is charged against all non-current assets
C: Depreciation has no effect on the statement of financial position
D: Depreciation impacts operating profit
Answers
The following statement is incorrect: Depreciation has no effect on the statement of financial position.
Depreciation has a great effect on the statement of financial position (balance sheet), which is the opposite of option C. Depreciation decreases the value of a company's fixed assets, such as its property, plant, and equipment, on the balance sheet.
Depreciation is an accounting technique that allocates the cost of an asset over its useful life. The amount of depreciation charged during a reporting period is reported on the income statement as an expense. Options A, B, and D are accurate statements.
Depreciation is a non-cash expense that reduces the value of a company's assets over time. Depreciation is charged against all non-current assets, including property, plant, and equipment, as well as intangible assets, such as patents, trademarks, and copyrights.
Depreciation affects a company's operating profit, which is calculated by subtracting operating expenses from revenue.
Hence, the right answer is option C. Depreciation has no effect on the statement of financial position.
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Between 1964 and 2010, the CPI (base year 1983) rose from \( 20.9 \) to \( 231.0 \). The average nominal wage rate for non-supervisory production workers rose from \( \$ 2.50 \) to \( \$ 19.97 \).
Answers
Between 1964 and 2010, the Consumer Price Index (CPI) increased from 20.9 to 231.0, using the base year 1983. This indicates a significant increase in overall prices over that period. Meanwhile, the average nominal wage rate for non-supervisory production workers increased from $2.50 to $19.97.
This means that the wage rate also experienced substantial growth over the same time frame.To determine the real wage rate, we need to adjust the nominal wage rate for inflation. We can do this by dividing the nominal wage rate by the CPI and then multiplying by 100.
For 1964, the real wage rate would be:
(2.50 / 20.9) * 100 = 11.96
For 2010, the real wage rate would be:
(19.97 / 231.0) * 100 = 8.64
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Sharon contributed property to the newly formed QRST Partnership. The property had a $100,000 adjusted basis to Sharon and a $160,000 fair market value on the contribution date. The property was also encumbered by a $90,000 nonrecourse debt, which was transferred to the partnership on that date. Sharon is treated as a general partner. She is allocated 30% of QRST's profits and 20% of QRST's losses. Sharon's basis in the partnership interest after the formation transaction is:
Answers
Answer: $37000
Explanation:
Sharon's basis in the partnership interest after the formation transaction is calculated below:
Adjusted basis of property to Sharon = $100,000
Less: Basis in mortgage = $90000 × (100% - 30%) = $90000 × 70% = $63000
Then, Sharon's basis in the partnership interest after the formation transaction will be:
= $100000 - $63000
= $37000
looking at the pros and cons for each of the standard decision making types, which would be the most effective overall method? Justify your answer
Answers
Answer:
Directive Decision making
Analytical Decision Making
Explanation:
There are various types of Standard decision making. Directive decision making is more on past experiences and there is very low tolerance for ambiguity. Analytical decision making is the decision which is based on facts and figures. The decisions are made based on reliable information only.
The pros and cons for directive decision making is managers can not make quick decisions when they face new problems where they have to apply their analytical skills.
A(n) __ can administer self-assessment tools to help you understand your personality and preferences .
Answers
guidance counselor
Explanation:
Took the quiz
HELP DUE IN 10 MINS! Sports Marketing: Product __________________ is very important today when consumers find so many similar products available for sale.
Answers
Answe
DIFFERENTIATION
Explanation:
I'm positive
Please help worth bonus points!
Answers
Answer:
the 4th and 5th one is for france
Explanation:
this is done in france France, it is called french silver service, it's a method of food service at the table, it's known as à l'anglaise (English service)
4=the staff utilizes platters to serve cooked food
5=the last one
1= america, the first one.
2=Russia
3=russia
if I got anything mixed up, pls inform me.
Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $188,600 and fair market value of $282,900). Simon invests $226,320 of cash. They each receive 100 shares in Ion Corporation, worth $226,320, but Yvonne also receives $56,580 in cash from Ion. Calculate Ion Corporation's basis in the equipment and determine Yvonne and Simon's basis in the Ion stock
Answers
The basis in the equipment transferred by Yvonne is $188,600, which represents the original cost of the equipment.
Ion Corporation's basis in the equipment will be the higher of the fair market value or the adjusted basis of the property in the hands of the transferor. In this case, since the fair market value of the equipment is $282,900, Ion Corporation's basis in the equipment will be $282,900.
Yvonne's basis in the Ion stock will be the total value of her investment, which includes the equipment transferred ($188,600) plus the cash received ($56,580), totaling $245,180.
Simon's basis in the Ion stock will be the total value of his investment, which is the cash contribution ($226,320).
Therefore, Yvonne's basis in the Ion stock is $245,180, and Simon's basis is $226,320.
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Provide an example of Red Bull’s promotional material that appeals to its target audience.
Answers
Answer:
Energy
Explanation: