The heinrich tire company recalled a tire in its subcompact line in december 2018. costs associated with the recall were originally thought to approximate $52 million. now, though, while management feels it is probable the company will incur substantial costs, all discussions indicate that $52 million is an excessive amount. based on prior recalls in the industry, management has provided the following probability distribution for the potential loss: (fv of $1, pv of $1, fva of $1, pva of $1, fvad of $1 and pvad of $1) (use appropriate factor(s) from the tables provided.) loss amount probability $ 42 million 20% $ 32 million 50% $ 22 million 30% an arrangement with a consortium of distributors requires that all recall costs be settled at the end of 2019. the risk-free rate of interest is 4%. required: 1. & 2. by the traditional approach to measuring loss contingencies, what amount would heinrich record at the end of 2018 for the loss and contingent liability? for the remainder of this problem, apply the expected cash flow approach of sfac no. 7. estimate heinrich’s liability at the end of the 2018 fiscal year. 3. to 5. prepare the necessary journal entries.

Fred smithers, a recent college graduate decided to open his own portable juice bar, smithers smoothies, to wheel around newport beach. you, a trusted friend of fred, are a business major that has also recently graduated and agreed to handle the books for a while to get some practical experience and have a favor that you can ask of fred in the future. given the following five transactions concerning the new venture, prepare the necessary journal entries for the transactions, post the journal entries to appropriate t accounts and prepare a trial balance as of the end of the month in order to answer to the necessary may 2: fred invests $12,000 of his own money to start the new company. this money was obtained from a part-time job working at a legal firm while he was in school. may 3: fred spent $5,100 cash to purchase a refrigerated trailer that he can pull behind his car and set up at the beach. under your advice, fred agrees to place the new asset under an account called "equipment." may 6: fred bought $640 of supplies on account from the flav-o-rite confectioners company. because they will last longer than a single accounting period fred agrees to record them as, "supplies" as per your suggestion. may 13: fred sat on the beach for six hours without a single sale and was feeling very down. right before he left, however, a plumber escorting his family reunion along the beach stopped by his stand and bought $800 worth of smoothies for the entire family. under your advice, fred agrees to call this cash revenue, "sales." may 15: excited about his new venture, fred withdraws $350 from the company to take his girlfriend out to dinner. what would be the balance in the cash account at the end of the period following the posting of all the transactions?

True or flase? a. new technological developments can us adapt to depleting sources of natural resources. b. research and development funds from the government to private industry never pay off for the country as a whole; they only increase the profits of rich corporations. c. in order for fledgling industries in poor nations to thrive, they must receive protection from foreign trade. d. countries with few natural resources will always be poor. e. as long as real gdp (gross domestic product) grows at a slower rate than the population, per capita real gdp increases.

Provide an example of open-ended credit account that caroline has. caroline blue's credit report worksheet.