Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF‘s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This material is also available under the Finance link at the company’s website (www.airfranceklm.com). Required: 1. Read Notes 23 and 35.4. Focusing on investments accounted for at fair value through profit and loss (FVTPL), a. As of December 31, 2017, what is the total balance of those investments in the balance sheet? b. How much of that balance is classified as current and how much as noncurrent? c. How much of the fair value of those investments is accounted for using level 1, level 2, and level 3 inputs of the fair value hierarchy? Given that information, assess the reliability (representational faithfulness) of this fair value estimate. 2. Complete requirement 1 again, but for investments accounted for as available for sale. 3. Given your answer to 1c and 2c, which type of investment has more reliable (representational faithful) fair value estimates: FVTPL investments or available for sale investments? 4. Read Notes 4.3 and 21. a. When AF can exercise significant influence over an investee, what accounting approach does it use to account for the investment? How does AF determine if it can exercise significant influence? b. If AF is involved in a joint venture, what accounting approach does it use to account for the investment? c. What is the carrying value of AF’s equity-method investments in its December 31, 2017, balance sheet? d. How did AF’s equity-method investments affect AF’s 2017 net income from continuing operations?
> One of your friends is a financial analyst for a major stock brokerage firm. Recently she indicated to you that she had read an article in a weekly business magazine that alluded to the political process of establishing accounting standards. She had alwa
> The purpose of this case is to introduce you to the information available on the website of the Securities and Exchange Commission (SEC) and its EDGAR database. Required: Access the SEC home page on the Internet. The web address is www.sec.gov. Answer th
> The purpose of this case is to introduce you to the information available on the website of the International Accounting Standards Board (IASB). Required: Answer the following questions. 1. The IASB has how many board members? 2. In what city is the IASB
> Refer to the situation described in BE 4–8. Assume instead that the estimated fair value of the segment’s assets, less costs to sell, on December 31 was $7 million rather than $10 million. Prepare the lower portion of the 2021 income statement beginning
> In prior chapters, you applied Tableau to examine a data set and create calculations to compare two companies’ financial information. In this case, you continue in your role as an analyst conducting introductory research into the relative merits of inves
> In prior chapters, you applied Tableau to examine a data set and create calculations to compare two companies’ financial information. In this case, you continue in your role as an analyst conducting introductory research into the relative merits of inves
> To prepare for this case, you will need to download Tableau to your computer. If you have not completed any of the prior data analytics cases, follow the instructions listed in the Chapter 1 Data Analytics case to get set up. You will need to watch the v
> In the Chapter 1 and Chapter 2 Data Analytics Cases, you applied Tableau to examine a data set and create charts to compare our two (hypothetical) publicly traded companies: Discount Goods and Big Store. In this case, you continue in your role as an anal
> In the Chapter 1 Data Analytics Case, you applied Tableau to examine a data set and create bar charts to compare ten-year trends in operating cash flows and net income for our two (hypothetical) publicly traded companies: Discount Goods and Big Store. In
> This case introduces you to data analysis in a very basic way by allowing you to quickly extract, visualize, and compare financial data over a span of ten years for two (hypothetical) publicly traded companies: Discount Goods and Big Store. For this case
> In the Data Analytics Cases in previous chapters, we applied Tableau to examine two (hypothetical) publicly traded companies: GPS Corporation and Tru, Inc. regarding various aspects of their earnings performance and financial position. In this case, you
> In the Data Analytics Cases in the previous chapter, you used Tableau to examine two (hypothetical) publicly traded companies: GPS Corporation and Tru, Inc. regarding the return on stockholders’ equity. This time, you investigate two aspects of the relat
> In the Data Analytics Cases in the previous chapter, you used Tableau to examine two (hypothetical) publicly traded companies: GPS Corporation and Tru, Inc. regarding changes in the funded status of their pension plans during the previous ten years as we
> In the Data Analytics Cases in the previous chapter, you used Tableau to examine a data set and create charts to examine two (hypothetical) publicly traded companies: GPS Corporation and Tru, Inc., to examine the effect of the Tax Cuts and Jobs Act of 20
> Refer to the situation described in BE 4–7. Assume that the semiconductor segment was not sold during 2021 but was held for sale at year-end. The estimated fair value of the segment’s assets, less costs to sell, on December 31 was $10 million. Prepare th
> In the Data Analytics Cases in the previous chapter, you used Tableau to examine a data set and create charts to examine two (hypothetical) publicly traded companies: GPS Corporation and Tru, Inc. as to their pattern of leasing facilities, their transiti
> In the Data Analytics Cases in prior chapters, you used Tableau to examine a data set and create charts to compare two (hypothetical) publicly traded companies, Big Store and Discount Goods. In this chapter, you will examine GPS Corporation and Tru, Inc.
> In the Chapter 13 Data Analytics Cases, you used Tableau to examine a data set and create charts to compare our two (hypothetical) publicly traded companies: Discount Goods and Big Store as to their liquidity - their ability to pay short-term debts as th
> In the Chapter 3 Data Analytics Cases, you used Tableau to examine a data set and create charts to compare our two (hypothetical) publicly traded companies, Discount Goods and Big Store, as to their liquidity - their ability to pay short-term debts as th
> In the Chapter 11 Data Analytics Case, you used Tableau to examine a data set and create calculations to compare the relative age of two companies’ assets. In this case you continue in your role as an analyst conducting introductory research into the rel
> In the Chapter 10 Data Analytics Case, you used Tableau to examine a data set and create calculations to compare two companies’ fixed-asset turnover. In this case you continue in your role as an analyst conducting introductory research into the relative
> In the Chapter 3 Data Analytics Case, you applied Tableau to examine a data set and create calculations to compare two companies’ profitability. For the case in this chapter, you continue in your role as an analyst conducting introductory research into t
> In this case you are seeking to gain insight into the relative demand for the company’s products in various regions of the country and various states in which it sells. Your focus is on assessing the company’s inventory management relative to regional an
> In prior chapters, you used Tableau to examine a data set and create calculations to compare two companies’ financial information. In this case you are seeking to gain insight into the relative profitability of a company in various regions of the country
> Air France-KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are provided in Connect. This ma
> On December 31, 2021, the end of the fiscal year, California Microtech Corporation completed the sale of its semiconductor business for $10 million. The semiconductor business segment qualifies as a component of the entity according to GAAP. The book val
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material also is available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This m
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material also is available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are provided in Connect. This ma
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material is also available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This m
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material is also available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This m
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material is also available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This m
> On December 31, 2021, the end of the fiscal year, Revolutionary Industries completed the sale of its robotics business for $9 million. The robotics business segment qualifies as a component of the entity according to GAAP. The book value of the assets of
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material also is available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This m
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material also is available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This m
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material also is available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This m
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material is also available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This m
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material is also available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This m
> The following are partial income statement account balances taken from the December 31, 2021, year-end trial balance of White and Sons, Inc.: restructuring costs, $300,000; interest revenue, $40,000; before-tax loss on discontinued operations, $400,000;
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material also is available under the Investor Relations li
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material also is available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This m
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material is also available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This m
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material is also available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This m
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material is also available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This m
> Refer to the facts described in BE 4–16. Show the DuPont framework’s calculation of the three components of the 2021 return on equity for Anderson TV and Appliance. Data from BE 4-16: The 2021 income statement for Anderson TV and Appliance reported net
> On July 1, 2021, Apache Company, a real estate developer, sold a parcel of land to a construction company for $3,000,000. The book value of the land on Apache’s books was $1,200,000. Terms of the sale required a down payment of $150,000 and 19 annual pay
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material is also available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This m
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material also is available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This m
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material also is available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are available in Connect. This m
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material is also available under the Investor Relations li
> Air France–KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are provided in Connect. This ma
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material is also available under the Investor Relations li
> Air France-KLM (AF), a Franco-Dutch company, prepares its financial statements according to International Financial Reporting Standards. AF’s financial statements and disclosure notes for the year ended December 31, 2017, are provided in Connect. This ma
> The 2021 income statement for Anderson TV and Appliance reported net sales of $420,000 and net income of $65,000. Average total assets for 2021 was $800,000. Shareholders’ equity at the beginning of the year was $500,000, and $20,000 was paid to sharehol
> Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material is also available under the Investor Relations li
> EDGAR, the Electronic Data Gathering, Analysis, and Retrieval system, performs automated collection, validation, indexing, and forwarding of submissions by companies and others who are required by law to file forms with the U.S. Securities and Exchange C
> In negotiating and effecting a troubled debt restructuring, the creditor usually incurs various legal costs. The FASB Accounting Standards Codification represents the single source of authoritative U.S. generally accepted accounting principles. Required:
> GlaxoSmithKline is a global pharmaceutical and consumer health-related products company located in the United Kingdom. The company prepares its financial statements in accordance with International Financial Reporting Standards. Required: 1. Use the Inte
> Carter Containers sold marketable equity securities, land, and common stock for $30 million, $15 million, and $40 million, respectively. Carter also purchased treasury stock, equipment, and a patent for $21 million, $25 million, and $12 million, respecti
> On July 15, 2021, M.W. Morgan Distribution sold land for $35 million that it had purchased in 2016 for $22 million. What would be the amount(s) related to the sale that Morgan would report in its statement of cash flows for the year ended December 31, 20
> On January 1, 2021, the Merit Group issued to its bank a $41 million, five-year installment note to be paid in five equal payments at the end of each year. Installment payments of $10 million annually include interest at the rate of 7%. What would be the
> Refer to the situation described in BE 21–5. What would be the amount(s) related to the bonds that Agee would report in its statement of cash flows for the year ended December 31, 2021, if it uses the indirect method? Data from BE 21-5: Agee Technology,
> Agee Technology, Inc., issued 9% bonds, dated January 1, with a face amount of $400 million on July 1, 2021, at a price of $380 million. For bonds of similar risk and maturity, the market yield is 10%. Interest is paid semi-annually on June 30 and Decemb
> Refer to the situation described in BE 21–9. What amount should Carter report as net cash from financing activities? Data from BE 21-9: Carter Containers sold marketable equity securities, land, and common stock for $30 million, $15 million, and $40 mil
> During 2021, Rogue Corporation reported net sales of $600,000. Inventory at both the beginning and end of the year totaled $75,000. The inventory turnover ratio for the year was 6.0. What amount of gross profit did the company report in its 2021 income s
> When DeSoto Water Works purchased equipment at the end of 2020 at a cost of $65,000, the company debited Buildings and credited Cash $65,000. The error was discovered in 2021. What journal entry will DeSoto use to correct the error? What other step(s) wo
> Van Frank Telecommunications has a patent on a cellular transmission process. The company has amortized the $18 million cost of the patent on a straight-line basis since it was acquired at the beginning of 2017. Due to rapid technological advances in the
> In 2020, Quapau Products introduced a new line of hot water heaters that carry a one-year warranty against manufacturer’s defects. Based on industry experience, warranty costs were expected to approximate 5% of sales revenue. First-year sales of the heat
> Three programmers at Feenix Computer Storage, Inc., write an operating systems control manual for Hill McGraw Publishing, Inc., for which Feenix receives royalties equal to 12% of net sales. Royalties are payable annually on February 1 for sales the prev
> Refer to the situation described in BE 20–4. Suppose Irwin has been using the straight-line method and switches to the sum-of-the-years’-digits method. Ignoring income taxes, what journal entry(s) should Irwin record relating to the machine for 2021? Da
> Irwin, Inc. constructed a machine at a total cost of $35 million. Construction was completed at the end of 2017 and the machine was placed in service at the beginning of 2018. The machine was being depreciated over a 10-year life using the sum-of-the-yea
> In 2021, J J Dishes changed its method of valuing inventory from the FIFO method to the LIFO method. At December 31, 2020, J J’s inventories were $96 million (FIFO). J J’s records were insufficient to determine what inventories would have totaled if dete
> In 2021, Adonis Industries changed its method of valuing inventory from the average cost method to the FIFO method. At December 31, 2020, Adonis’s inventories were $47.6 million (average cost). Adonis’s records indicated that the inventories would have t
> In 2021, the internal auditors of Development Technologies, Inc., discovered that (a) 2020 accrued salaries of $2 million were not recognized until they were paid in 2021 and (b) a $3 million purchase of merchandise in 2021 was recorded as a debit to Pur
> Refer to the situation described in BE 20–10. Assume the error was discovered in 2023, after the 2022 financial statements are issued. Ignoring income taxes, what journal entry will PKE use to correct the error? Data from BE 20-10: In 2021, internal aud
> Refer to the trial balance information in BE 3–5. Calculate the (a) current ratio, (b) acid-test ratio, and (c) debt to equity ratio. Data from BE 3-5: The following is a December 31, 2021, post-closing trial balance for Culver City Li
> In 2021, internal auditors discovered that PKE Displays, Inc., had debited an expense account for the $350,000 cost of a machine purchased on January 1, 2018. The machine’s useful life was expected to be five years with no residual value. Straight-line d
> In 2021, the Barton and Barton Company changed its method of valuing inventory from the FIFO method to the average cost method. At December 31, 2020, B & B’s inventories were $32 million (FIFO). B & B’s records indicated that the inventories would have t
> Refer to the situation described in BE 19–8. Suppose that after one year, Farmer estimates that it is not probable that divisional revenue will increase by 5% in three years. What journal entry will be needed to account for the options in 2022? Data fro
> On January 1, 2021, Farmer Fabrication issued stock options for 100,000 shares to a division manager. The options have an estimated fair value of $6 each. To provide additional incentive for managerial achievement, the options are not exercisable unless
> Refer to the situation described in BE 19–3. Suppose that the options expire without being exercised. What journal entry will National record? Data from BE 19-3: Under its executive stock option plan, National Corporation granted 12 million options on J
> Refer to the situation described in BE 19–3. Suppose that the options are exercised on April 3, 2024, when the market price is $19 per share. What journal entry will National record? Data from BE 19-3: Under its executive stock option plan, National Cor
> On January 1, 2021, Hugh Morris Comedy Club (HMCC) granted 1 million stock options to key executives exercisable for 1 million shares of the company’s common stock at $20 per share. The stock options are intended as compensation for the next three years.
> Refer to the situation described in BE 19–3. Suppose that unexpected turnover during 2022 caused the forfeiture of 5% of the stock options. What is the effect on earnings in 2022? In 2023? Data from BE 19-3: Under its executive stock option plan, Nation
