Write a letter to Sam that contains your advice with respect to the tax and cash-flow consequences of filing versus not filing a claim for the insurance reimbursement for the damage to his car. Also prepare a memo for the tax files. Sam’s address is 450 Colonel’s Way, Warrensburg, MO 64093?

Analysis of the accounts at December 31, 2014 reveals these transactions for 2014:
Purchase of supplies …………….. $ 8,700
Cash payments for salaries ………….. 52,300
Cash receipts in advance for services revenue …….. 106,400
Requirement
Compute the amount of supplies expense, salary expense, and service revenue PDQ, Inc. will report for the year ended December 31, 2014. Solve by making T-accounts and posting the information to solve for the unknown amounts.

Dividends are declared on March 1 of each year and are paid on March 31 of that year. The translated balance in retained earnings at the beginning of 2010 was $227,300.
1. Determine the balance in the cumulative translation adjustment account as of December 31, 2011.
2. Determine how much of the cumulative translation adjustment balance as of December 31, 2011, is traceable to the years prior to 2011.
3. Given your answer to part (2), verify your answer by using an alternative approach to calculating the amount of the cumulative translation adjustment that is traceable to years prior to 2011.
4. Assume that Brico borrowed 100,000 FC on March 1, 2011, as a hedge against its investment in the subsidiary. Determine how much of the parent’s interest in the current-year translation adjustment could have been offset by this hedge assuming that the loan remains unpaid as of year-end 2011.
Relevant exchange rates are as follows: