Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Part 1. Sprockets, Inc. has a December 31 year-end. On June 30, 2009, Sprockets obtains a $3,000,000 loan from a bank to purchase new equipment. The loan must be repaid in two years. In December 2009, Sprockets incurs unexpected operating costs and as a result violates one of its bank loan covenants as of December 31, 2009. As a result of the covenant violation, the bank loan becomes due in 30 days. On December 31, 2009, Sprockets asks the bank to waive the violation. Sprockets informs the bank that it will sell idle property to cure the debt covenant violation. On January 5, 2010, the bank agrees to waive the violation, stipulating that it must be rectified within 90 days. Sprockets issues its financial statements on January 25, 2010. Required: Identify the guidance in IFRS that pertains to this situation. Using that guidance, determine whether this loan should be classified as current or non-current on Sprockets’ balance sheet as of December 31, 2009 under IFRS.
Part 2. Now assume that Sprockets obtained a waiver from the bank on December 30, 2009 stipulating that the debt covenant violation must be rectified within 90 days. Required: Determine whether this loan should be classified as current or non-current on Sprockets’ balance sheet as of December 31, 2009 under IFRS.
Compare the change in the quantity of raw steel exchanged at the market level with the change in raw steel produced by a representative firm. How do you explain this difference?
In the absence of government interference, there is a constant marginal cost of $5 per ounce for growing marijuana and delivering it to buyers. If the probability that any shipment of marijuana is seized is 0.20 and the fine if a shipper is caught is..
There is currently 20 identical firms in a perfectly competitive market. Each firm has a cost function of the form: SC(q) = 10q2 +200q + 7000. The market demand is P = -4QD + 3000. Find the short run equilibrium price, market quantity, and firm quant..
Explain how should the United States Supreme Court interpret the United States Constitution.
Bob manages a grocery store in a country experiencing a high rate of inflation. To keep up with inflation, he spends a lot of time every day updating the prices, printing new price tags, and sending out newspaper inserts advertising the new prices. T..
The costs of in?ation: Consider two possible in?ation scenarios. In one, the in?ation rate is 100% per year, but it has been at this level for three decades and the central bank says it will keep it there forever. In the other, the in?ation rate was ..
The Operations Manager asks you to identify the ways in which statistical quality control methods can be applied to the weights of the boxes.
Hurricane Katrina damaged a large portion of refining and pipeline capacity when it swept through the Gulf coast states in August 2005. As a result of this, many gasoline distributors were not able to maintain normal deliveries. the quantity demanded..
Firms A and B make up a cartel that monopolizes the market for a scarce natural resource. The firms’ marginal costs are MCa = 6+2Qa and MCb = 18+Qb respectively. The firms seek to maximize the cartel’s total profit. The firms have decided to limit th..
What do you believe is the proper balance between the free market and government regulation of industry? And why?
The Carolina Christmas Tree Corporation grows and sells 500 Christmas trees. The average cost of production per tree is $50. Each tree sells for a price of $65. The Carolina Christmas Tree Corporation’s total revenues are
When most consumers and firms reduce spending only because they expect other consumers and firms to reduce spending, and a recession results, A. a real-business-downturn has occurred. B. a self-correction has occurred. C. a coordination failure has o..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd