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In 2016, the Australian Government established an inquiry into corporate social responsibilities with the aim of deciding whether the Corporations Act should be amended so as to specifically include particular social and environmental responsibilities within the Act. At the completion of the inquiry it was decided that no specific regulations would be added to the legislation, and that instead, 'market forces' would be relied upon to encourage companies to do the 'right thing' (that is, the view was expressed that if companies did not look after the environment, or did not act in a socially responsible manner, then people would not want to consume the organisations' products, and people would not want to invest in the organisation, work for them, and so forth. Because companies were aware of such market forces they would do the 'right thing' even in the absence of legislation).
REQUIRED
Question 1: Critically analyse the decision of the Australian Government not to regulate social and environmental responsibilities from the perspective of the Public Interest Theory and Capture Theory.
Prepare the 20X1 consolidated income statement and its related income distribution schedules. Prepare the 20X1 statement of retained earnings. Prepare the 20X1 consolidated balance sheet.
Clopack Company manufactures one product that goes through one processing department called Mixing. All raw materials are introduced at the start of work in the Mixing Department. The company uses the weighted-average method to account for units and ..
Emerson and Dakota formed a partnership dividing income as follows: How much net income should be distributed to Emerson?
Santana Rey is considering the purchase of equipment for Business Solutions that would allow the company to add a new product to its computer furniture line.
At the close of its first year of operations, December 31, 2017, Ming Company had accounts receivable of $1,620,000, after deducting the related allowance for doubtful accounts. What should the company report on its balance sheet at December 31, 2017..
Costs of registering and issuing the equity securities amounted to $80,000. No goodwill was involved in the acquisition.
The adjusted trial balance for Speedy Courier as of December 31, 2013, follows.
On January 1, 2016, Day Corporation purchased 30% of Night Corporation for $770,000 cash. On the date of the purchase, Night’s assets had a book value of $2,200,000 and liabilities with a book value of $400,000. Prepare the allocation of the purchase..
XYZ Company makes 30,000 motors to be used in the production of its power lawn mowers. Calculate the selling price per unit charged by the outside supplier that would make XYZ economically indifferent between making and buying the motor. Enter your a..
Prepare a master budget for Optima Company for each quarter of 2008 and for the year in total. The following component budgets must be included.
Listed below are the transactions of Newman Kawabata, D.D.S., for the month of September. Record depreciation using a 5-year life on the equipment, the straight-line method, and no salvage value. List of Accounts: Cash, Accounts Receivable, Rent Expe..
Ellson Electronics Company manufactures video cassette recorders, which it sells for $300 per unit. Variable costs are $210 per unit, and fixed costs are $630,000 a year. The tax rate is 40%. How many VCRs must be sold each year for the firm to break..
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