our company uses network access protection （NAP) to enforce policies on client computers t

an increase in the LIFO reserve for the year.If the company used FIFO rather than LIFO:

A.COGS is lower and net income is lower.

B.CFGO is lower and net income is higher.

C.COGS is higher and net income is lower.

A.＄8,960

B.＄12,720

C.＄13,440

D.＄6,800

A.A sharp increase of the prices of raw materials led to considerable drop in sales.

B.The year of 2018 witnessed a 15% decline in our company output.

C.In 2017,the net profit of the company is RMB 108 million.

D.We have been experiencing moderate growth in the past few years.

Rocky Mountain Air Cargo is a privately held commercial aviation company serving the western United States. It publishes financial statements in accordance with U.S. GAAP and uses a fiscal year that matches the calendar year.

Rocky Mountain was in good financial shape heading into 2003, with assets of $50 million at the beginning of the fiscal year. That year, it earned $3 million in net income and was easily able to maintain its traditional 50 percent dividend payout ratio. However, Rocky Mountain had a very difficult year in 2004, reporting a loss of $800,000. It managed to pay $1 million in dividends, but the decision to pay dividends in such a weak financial year further undermined the company’s fiscal stability.

Flitenight Air Lines, a publicly-traded aviation firm serving the central and Midwestern United States, wanted to expand its range of service by coordinating its flight schedule with airlines serving different geographic regions ofNorth America. One of these airlines was Rocky Mountain Air Cargo.

To cement the relationship, Flitenight’s CEO, John “Bulldog” Basten, decided to make a significant investment in Rocky Mountain Air Cargo. He was easily able to convince both boards of the wisdom of the deal, and, in his usual brash style, personally negotiated the terms with his counterpart at Rocky Mountain, Buck Matthews. Flitenight Air Lines acquired a 20 percent stake in Rocky Mountain Air Cargo (with an option to purchase 40 percent more) for $10 million cash. The deal closed on January 1, 2003 and Flitenight accounted for the investment using the equity method.

Basten was not happy to find that he had invested right at the peak of Rocky Mountain’s profitability and wound up with a money-losing airline. He had a difficult conversation with Matthews in early 2005, complaining about the impact of the Rocky Mountain investment on Flitenight’s financials. Basten pointed out that he had a loss on his books: the original $10 million investment in Rocky Mountain was carried at only $9,940,000 on Flitenight’s December 31, 2004 balance sheet. Matthews countered that this was just an accounting entry: on a cash basis, Flitenight had a gain of 5 percent on its investment over the two years.

Matthews’ insistence that the investment had earned money for Flitenight did not sit well with Basten. Basten decided that Rocky Mountain was clearly being mismanaged and concluded it was time to gain control of the company.

Basten assured Neil Glenn, the Chairman of Flitenight’s board, that he could turn Rocky Mountain around. He promised Glenn that, in 2005, Rocky Mountain would once again achieve $3 million in earnings and a 50 percent payout ratio. “With those results,” Basten promised Glenn, “our asset accounts will value the Rocky Mountaininvestment at $10,240,000 on our December 31, 2005 balance sheet – so we’ll show a gain on our original investment.” Glenn was skeptical of anyone’s ability to turn the airline around so quickly. Even so, Glenn assured Basten, “If it takes you longer to turn it around, at least we’ll have the dividend income on our 2005 cash flow statements.”

Basten notified Matthews and Rocky Mountain’s board that Flitenight intended to exercise its option. At the direction of Basten and Glenn, Flitenight purchased the additional shares for cash and gained control of RockyMountain on December 31, 2004.

Part 4)

Which of the following statements about the consolidation method and the equity method is FALSE？

A)Both result in the same net income.

B)Only capital flows between parent and investee (such as dividends) appear in the cash flows of the parent.

C)Both result in the same net worth.

D)Both result in the same ROE.

ding the following given letter．Dear Mr．Wang:

Our company is one of the leading companies in china ornaments retail business．We have oufiets throughout our England．We are interested in your products displayed at the exhibition Guangzhou fair and would like to know whether you could offer us a sole agency to retail your products in our country.

We are confident that there is a growing market for your products in this area, due to the increasing demand for china ornaments.

We operate on a 10% commission basis on net list prices, with an additional 3% del credere commission if required．We usually pay our principals by bill of exchange on a quarterly basis.

If you are interested in the above proposal, we will send our representative to discuss further details with you．We look forward to hearing from you soon.

Yours sincerely,

Rocky Mountain Air Cargo is a privately held commercial aviation company serving the western United States. It publishes financial statements in accordance with U.S. GAAP and uses a fiscal year that matches the calendar year.

Rocky Mountain was in good financial shape heading into 2003, with assets of $50 million at the beginning of the fiscal year. That year, it earned $3 million in net income and was easily able to maintain its traditional 50 percent dividend payout ratio. However, Rocky Mountain had a very difficult year in 2004, reporting a loss of $800,000. It managed to pay $1 million in dividends, but the decision to pay dividends in such a weak financial year further undermined the company’s fiscal stability.

Flitenight Air Lines, a publicly-traded aviation firm serving the central and Midwestern United States, wanted to expand its range of service by coordinating its flight schedule with airlines serving different geographic regions ofNorth America. One of these airlines was Rocky Mountain Air Cargo.

To cement the relationship, Flitenight’s CEO, John “Bulldog” Basten, decided to make a significant investment in Rocky Mountain Air Cargo. He was easily able to convince both boards of the wisdom of the deal, and, in his usual brash style, personally negotiated the terms with his counterpart at Rocky Mountain, Buck Matthews. Flitenight Air Lines acquired a 20 percent stake in Rocky Mountain Air Cargo (with an option to purchase 40 percent more) for $10 million cash. The deal closed on January 1, 2003 and Flitenight accounted for the investment using the equity method.

Basten was not happy to find that he had invested right at the peak of Rocky Mountain’s profitability and wound up with a money-losing airline. He had a difficult conversation with Matthews in early 2005, complaining about the impact of the Rocky Mountain investment on Flitenight’s financials. Basten pointed out that he had a loss on his books: the original $10 million investment in Rocky Mountain was carried at only $9,940,000 on Flitenight’s December 31, 2004 balance sheet. Matthews countered that this was just an accounting entry: on a cash basis, Flitenight had a gain of 5 percent on its investment over the two years.

Matthews’ insistence that the investment had earned money for Flitenight did not sit well with Basten. Basten decided that Rocky Mountain was clearly being mismanaged and concluded it was time to gain control of the company.

Basten assured Neil Glenn, the Chairman of Flitenight’s board, that he could turn Rocky Mountain around. He promised Glenn that, in 2005, Rocky Mountain would once again achieve $3 million in earnings and a 50 percent payout ratio. “With those results,” Basten promised Glenn, “our asset accounts will value the Rocky Mountaininvestment at $10,240,000 on our December 31, 2005 balance sheet – so we’ll show a gain on our original investment.” Glenn was skeptical of anyone’s ability to turn the airline around so quickly. Even so, Glenn assured Basten, “If it takes you longer to turn it around, at least we’ll have the dividend income on our 2005 cash flow statements.”

Basten notified Matthews and Rocky Mountain’s board that Flitenight intended to exercise its option. At the direction of Basten and Glenn, Flitenight purchased the additional shares for cash and gained control of RockyMountain on December 31, 2004.

Part 1)

In 2003, Flitenight would reflect its investment in Rocky Mountain on its income statement by recording:

A)$300,000.

B)$900,000.

C)-$200,000.

D)$600,000.

n.2007 was a normal year, and for the past five years, earnings have grown at a constant rate of 10 percent. However, earnings are expected to jump to ＄18 million in 2008,and the firm expects to have ＄12 million investment opportunities in 2009.It is predicted that M will not be able to maintain the 2008 level of earnings growth in the future----the high 2008 earnings level is attributable to an exceptionally profitable new product line introduced in that year----and the company will return to its previous 10 percent growth rate. M’s target debt ratio is 40 percent in 2007, which will be continued in the future. Calculate M’s expected dividends for 2008 if it follows each of the following policies: A. Its 2008 dividend payment is set to make dividends grow at the long-run growth rate in earnings. B. It continues the 2007 dividend payout ratio. C. It uses a residual policy with all distributions in the form. of dividends. D. It employs a regular-dividend-plus-extras policy, with the regular dividend being based on the long-run growth rate and the extra dividend being set according to the residual policy (Indicate the regular dividend and the extra dividend separately).

colleague, to take a picnic with him

Henry: Hey. what are you doing this weekend？

Mandy: I___________yet What about you？

Henry:___________to go for a picnic？ I The weather forecast says t will be sunny this Sunday

Mandy. That's a good idea________anything？

Henry: Yes, of course, and________make some hamburgers.

Mandy OK Then r bring some drmnks, geentea. black tea. juce or cola？

Henry: How about________？ By the way.I wll bring my new kichenware for our picnic

Mandy New kitchenware？ A cooker？

Henry. Yean! 1 just bought a solar cooker last month.It's a new device that uses solar enegy and it is geting popular due to its high efficiency and its environmental friendliness. Peoplel can cook easily with this new device. I'll bring some fruit and some other food. We will lhave a wonderful picnicl.

Mandy:Wow! How amazing! I cann't wait

Henry OK I am______to our picnic.Then see you on this Sunday!

Mandy:See you!

不带质押的融通汇票

(1)开立循环的承兑信用额度证

Revolving acceptance credit covering purchase of cocoa beans opened in favour of The Manufacturing Co., by an accepting house, William Caxton & Co., Unsecured.

William Caxton & Company

To: The Manufacturing Co., London, 11 Jan., 200×

Liverpool

Dear Sirs,

Revolving Acceptance Credit No. U-429

In response to your application, we have pleasure in establishing our Revolving Acceptance Credit No. U-429 to the extent of GBP100,000.00 (say one hundred thousand pounds) available by your drafts on ourselves at three months after date for the purpose of financing your purchase of cocoa beans from Kingston to Liverpool and each draft must be marked "Drawn under Credit No. U-429 against purchase of cocoa beans".

All drafts are to be covered by you in cash with us at or before their respective maturity dates, but the credit being revolving, when and to the extent that drafts are so covered the facility automatically becomes available again.

Our acceptance commission payable at time of acceptance will be 1.75% per annum. This credit will expire on 11 Jan., next year, and all drafts must be drawn and accepted not later than that date.

The credit being unsecured is a condition hereof that you will not create any new mortgage of charge on your property or assets without our consent.

We enclose our usual form of undertaking in respect of this credit which kindly sign and return to us.

Yours faithfully

William Caxton & Co., London

signature

(2)开立融通汇票

Please draw an accommodating bill which was dated 1 April, 200× drawn by The Manufacturing Co., Liverpool, on William Caxton & Co., London payable to drawer's order duly endorsed in blank by them at three months after date for the sum of GBP10,000.00 marked: "Drawn under Acceptance Credit No. U-429 against purchase of cocoa beans". The bill was accepted by the drawee and payable at Barclays Bank Ltd., London. Please accept the bill and specify its due date.

(3)要求承兑融通汇票，提示贴现公司，请其贴现

You will send a letter to William Caxton & Co., with five bills, each for GBP10,000.00 taking the form as follows:

To: William Caxton & Co., Liverpool, 1 April, 200×

London

Dear Sirs,

Revolving Acceptance Credit No. U-429

With reference to the above credit dated ______ we would like to avail our- selves of GBP50,000.00 of the facility, and enclose here with five bills, each for ______, drawn at ______ which we have endorsed in blank.

After acceptance kindly hand these bills to Gillett Brother's Discount Co. Ltd., for ______.

We will be glad if you would debit our account with your acceptance commission.

Yours faithfully

The Manufacturing Company, Liverpool

signature

You will send another letter to Gillett Brother's Discount Co. Ltd., as follows:

To: Gillett Brother's Discount Co. Ltd.,

London Liverpool, 1 April, 200×

Dear Sirs ,

We enclose a copy of a letter we wrote to William Caxton & Co. today, and from which you will see that we have asked them to hand to you ______ bills total-ling ______ for ______. We should be glad if you would pay the net proceeds of these bills to Barclays Bank Ltd., London for the credit of our account.

Yours faithfully

The Manufacturing Co., Liverpool

signature

(4)计算贴现金额，制作贴现说明书

Please calculate the discount using the following formula.

______

Suppose V=CBP50,000.00

t=90

d=9

What is the amount of discount？ ______

What is the net proceeds？ ______

When the discount company has discounted the five bills, they will send a discount statement. Please make out this statement filling particulars in the form as follows:

Gillett Brother's Discount Co. Ltd.,

To: The Manufacturing Company, London, 2 April, 200×

Liverpool

We have pleasure in confirming the PURCHASE of the bills listed below. In accordance with your instructions, the net proceeds have been paid to Barclays Bank Ltd. London for the credit of your account.

Amounts	Discount & net proceeds	Due date	Tenor in days
GBP 10,000.00		______	______
10,000.00
10,000.00
10,000.00	Total face value GBP ______
10,000.00	Less discount at
	9% per annum ______
	Net proceeds GBP ______

Per Pro

Gillett Brother's Discount Co. Ltd.,

London

signature

(5)开立新的融通汇票，用其贴现净款归还旧的融通汇票到期应付之款

In accordance with the revolving acceptance credit, you must pay cash to the accepting house, William Caxton & Co., on or before the due date, 1 July, 200×. The credit being revolving, allows for the drawing of a new bill to replace those which are maturing.

Let us assume when the GBP50,000.00 bills fall due on 1 July, 200×, you have cash in hand for GBP20,000.00 to pay the bills, and the balance will be covered by issue of a new bill for the face amount to be calculaced by using following formula:

v=30,000 d=9 t=90

______

Please issue a new bill similar to the old bills except amount as calculated above and dated on 1 July, 200×.

Having drawn a new bill for the face amount as calculated above, The Manufacturing Company send it together with a letter addressed to William Caxton & Co., as follows:

To: William Caxton & Co.,

London 30 June, 200×

Dear Sirs,

Revolving Acceptance Credit No. U-429

With reference to the five bills of GBP10,000.00 each drawn under above credit and maturing on ______, we enclose our cheque for GBP20, 000. 00 and a new bills for ______ dated 1 July, 200× at three months after date. We should be glad if you will kindly ______ and hand to Gillett Brother's Discount Co. Ltd., for ______, the net proceeds ______ will be refunded three old bills.

Yours faithfully,

The Manufacturing Company, Liverpool

signatur

带有质押的融通汇票

A Revolving Acceptance Credit covering exports from the UK to Australia opened in favour of The Exporting Company by an accepting house, William Caxton & Company-Secured.

(1)开立循环的承兑信用额度证

William Caxton & Company

To: The Exporting Company London, 15 Feb., 200×

London, E. C. 2.

Dear Sirs,

Revolving Acceptance Credit No. 3254

In response to your application, we have pleasure in opening a Revolving Acceptance Credit facilities at your disposal to the extent of GBP100,000.00 (say one hundred thousand pounds) to assist in the financing of your export to Australia, subject to the following terms and conditions:

This credit is available by your drafts on ourselves at ninety days after sight, which are to be marked "Drawn under Acceptance Credit No. 3254 against shipment of goods to Australia".

At or before time of drawing on us, you are to deposit with us as security, and for collection under our existing arrangements with you, your draft at a determinable future time not exceeding 90 days on your buyer in the importing country, accompanied by full shipping documents, the total amount of such draft is to exceed the respective drawing on us by not less than 10%.

As and when proceeds of collection become available, they will be applied by us in cover of our outstanding acceptances.

All drafts are to be covered by you in cash with us at or before their respective maturity dates but the credit being revolving, when and to the extent that drafts are so covered, the facility automatically becomes available again.

Our commission for accepting your draft will be at the rate of 1.5% per annum, i.e. 3/8% on draft at 90 days after sight. In addition, collection commission and incidental expenses will be payable by you.

This credit will expire on 15 Feb., next year, and all drafts on us must be drawn and accepted not later than that date.

For and on behalf of

William Caxton & Co., London

signatureDirector

(2)开立托收汇票

The Seller, The Exporting Co., London who has sold agricultural tractors to the buyer, The Overseas Importing Co., Brisbane issued a collection bill on 20 March, 200× to be drawn on the buyer at 60 days after sight for GBP7,700.00 payable to the order of William Caxton & Company marked the words " Drawn under sales contract No. 27358 against shipment of agricultural tractors from London to Brisbane for collection ".

Please draw a collection bill to meet the above requirements in the form as follows:

Exchange for ______ ______

__________________ pay to the order of

________________________________________________ the sum of

____________________________________________________________

Drawn ______________________________________________________

____________________________________________________________

To __________________ For __________________

__________________ __________________

(3)开立融通汇票

The Seller wishes to make use of Acceptance Credit No. 3254, since he has issued a collection bill which would entitle him to draw on William Caxton & Co. a bill dated on 22 March, 200× for the sum of GBP7,000.00 payable at 90 days after sight to drawers' order marked "Drawn under Acceptance Credit No. 3254".

Please draw an accommodating bill on William Caxton & Co., London duly endorsed in blank by the payee. Suppose the bill was accepted by the drawee on 23 March, 200× payable at Barclays Bank Ltd., London. Please accept the bill and specify its due date.

(4)要求代收托收票款和承兑融通汇票，提示贴现公司要求贴现

You will send these two bills together with the shipping documents to William Caxton & Co. with a letter which will be written by you in the form as follows:

To: William Caxton & Co.,

London 20 March, 200×

Dear Sirs,

Revolving Acceptance Credit No. 3254

We enclose here with the full shipping documents covering a shipment of ______ to The Overseas Importing Co., Brisbane. We also enclose our ______ days sight bill drawn on the importer for ______. Would you kindly forward these to your agents at ______, and arrange for the presentation of the bill to the importer for ______, and later for collection at maturity, and remit the proceeds to ______.

Under the terms of the above credit, we also enclose our ______ days sight bill drawn on you for ______. After acceptance, we should be grateful if you would kindly hand this bill to Gillett Brother's Discount Co. Ltd. for

We should be glad if you would debit our account with your acceptance commission.

Yours faithfully

The Exporting Company

signature

You will send a copy of this letter to Gillett Brother's Discount Co. Ltd. with a covering note as follows:

To: Gillett Brother's Discount Co. Ltd.,

20 March, 200×

Dear Sirs ,

We enclose a copy of the letter which we have sent to William Caxton & Co. today. Will you please pay the net proceeds to Barclays Bank Ltd., London for credit of our account.

Yours faithfully

The Exporting Company, London

signature

(5)计算贴现金额，制作贴现说明书

Please calculate the discount using the formula as follows:

V=face value of the bill=GBP7,000.00

t=tenor in days=90

N=discount number

d=discount rate in ×% per annum=9

D=amount discounted

v=present value of bill (after deduction of amount discounted from the face value)

______

v=V-D=______

Use the given numbers in formula D and v to calculate amount discounted and net proceeds.

When Gillett Brother's Discount Co. Ltd., have discounted the bill, they will send a discount statement to The Exporting Company. Please make out a discount statement filling particulars in the form as follows:

[

Gillett Brother's Discount Co. Ltd.,＜/strong＞]

To: The Exporting Company, London, 21 March, 200×

London

We have pleasure in confirming the purchase of the bills listed below. In accordance with your instructions, the net proceeds. have been paid to Barclays Bank Ltd. London for the credit of your account.

Discount and net proceeds	Due date	Tenor in days
Face value GBP ______	______	______
Less discount at 9% per annum ______
Net proceeds GBP ______

Per Pro

Gillett Brother's Discount Co. Ltd.,

signatureManager