InstructionsCookie Creations (Chapters 11 and 15)This assignment is a continuation of the Cookie Creations case study and focuses on Cookie Creations' liabilities (current and long-term). From the information gathered from the unit lesson, required unit resources, and suggested unit resources, read the Cookie Creations case study below, which is also available on p.11-37 (Chapter 11) and p. 15-38 (Chapter 15) in the textbook.The case study allows you to apply what you have learned about liabilities and the accounting process. This assignment will allow you to practice what you have learned so far.Part IRecall that Cookie Creations sells fine European mixers that it purchases from Kzinski Supply Company. Kzinski warrants the mixers to be free of defects in material and workmanship for 1 year from the date of original purchase. If the mixer has such a defect, Kzinski will repair or replace the mixer free of charge for parts and labor. The product must be shipped prepaid to an authorized Kzinski service center. The consumer pays the cost to ship the mixer. The cost to return the product to the consumer is paid by Kzinski.The authorized service center is located in Boston. Because Cookie Creations values serving its customers, it pays the shipping to Boston for any mixers needing repair under Kzinski’s warranty terms. Based on past experience, Kzinski has found that approximately 10% of mixers are returned for repair or replacement. The average cost to ship a mixer to Boston is $60.The following transactions take place in 2020 and 2021.A total of 30 mixers are sold in 2020.Four of the mixers sold in 2020 are returned for repair in 2021. The total shipping cost for returning these four mixers to Boston is $210.A total of 40 mixers are sold in 2021.Two of the mixers sold in 2021 are returned for repair in 2021. The total shipping cost for returning these two mixers to Boston is $55.For Part I of the assignment, complete the tasks listed below using Excel.Calculate Cookie Creations’ warranty liability for the shipping costs at December 31, 2020.Record the estimated warranty liability at December 31, 2020.Prepare the summary journal entry (or entries) to record the shipment of the six mixers (four from the 2020 sales and two from the 2021 sales) for warranty repair in 2021. d.Calculate Cookie Creations’ warranty liability at December 31, 2021. (Hint: Note that there is no liability outstanding for the mixers sold in 2020. The 1-year warranty period has expired.)Record the estimated warranty liability at December 31, 2021. (Hint: Similar to accounting for bad debts, consider any existing balance in the warranty liability account when you prepare your entry. You will find it helpful to prepare a general ledger account for the warranty liability and to post the above transactions.)Part IINatalie and Curtis have been experiencing great demand for their cookies and muffins. As a result, they are now thinking about buying a commercial oven. They know which oven they want and that it will cost $17,000. The company already has $5,000 set aside for the purchase and will need to borrow the rest.Natalie and Curtis met with a bank manager to discuss their options. She is willing to lend Cookie & Coffee Creations Inc. $12,000 on November 1, 2020, for 3 years at a 5% interest rate. The terms provide for fixed principal payments of $2,000 on May 1 and November 1 of each year plus 6 months of interest.For Part II of the assignment, complete the tasks listed below.Prepare a payment schedule for the life of the note.Prepare the journal entry for the purchase of the oven and the issue of the note payable on November 1, 2020.Prepare the journal entries on May 1 and November 1 for the note.Determine the current portion of the note payable and the long-term portion of the note payable at October 31, 2021.Parts I and II should be submitted in a single Excel spreadsheet. You will use a new tab to complete each transaction for both Parts I and II for a total of nine separate tabs or sheets. Submit the Excel spreadsheet in Blackboard.

Sara Gandhi is a 50-year-old entrepreneur with a great idea of developing a new computer software product that will help users communicate using the next-generation magnet. Sara owns a software company registered as S corporation. S Corp is a special designation that allows small businesses to be taxed as if they were a sole proprietorship or a partnership rather than as a corporation whilst at the same time enjoying limited liability of a corporation. Sara is satisfied with this choice because she is aware that one of the disadvantages of a corporation is the double taxation of corporate earnings. Sara is determined to make sure her business succeeds. She has a long-term plan of expanding the business to some emerging countries. She has been reading some articles in finance journals about time value of money and how she can apply the concept to manage her finances and expansion plans. The time value of money holds that it is better to receive money sooner than later. Money that is available today is worth more than money to be received in the future. This is so because money in hand today can be invested to earn a positive rate of return, thereby producing more money in the future. On her google search she came across this article:Rahman, M. (2018). Time value of money: A case study on its concepts and its applications in real life problems. International Journal of Research in Finance and Management, 1(1), 18 – 23.The article discusses a contemporary financial planning problem of correctly solving time value of money problems and identifying the cash flows and timing necessary for financial and investment decisions. Rahman (2018) explains with practical examples the applications of the concept of time value of money to retirement planning, valuing of stocks and bonds, setting up loan amortization schedules, and making capital budgeting decisions. Sara does not fully understand some of the finance terms such as future value and compounding, present value and discounting, perpetuity, annuities etc. that the article discussed. She believes that once she grasps these time value of money concepts, she will be able to make sound financial and investment decisions. Her major concern is that these concepts require application of some basic quantitative techniques which she tried to avoid at the graduate school twenty years ago.Sara has approached you for help in answering the following personal and business-related questions:1. Suppose Sara has $150,000 to invest in an individual retirement account (IRA) at an interest rate of 8% per year for her retirement in 15 years. How much money can she accumulate at the end of the time period? 2. Sara wants to send her two-year old daughter to college in 16 years. She has assumed that she would need $120,000 at the time in order to pay for her tuition, room and board, school supplies etc. If she can earn an average of 8% per year, how much money does she need to invest today as a lump sum to achieve that goal? 3. Sara wants to move $60,000 from her checking accounts and invests it in money market securities for 5 years. The money market earns 8% interest compounded annually. How much can this investment grow at the end of the investment period?4. Sara wants to find the present value of the following uneven cash flows she expects to receive in the next 3 years from her business.YearCash Flows1$135,0002$140,0003$145,000What is the present value of the cash flows assuming the discount rate is 7%? 5. Sara is considering a perpetuity that pays $100 a year. If the interest rate is 6%, what is the value of the perpetuity?6. Sara also wants to invest in preferred stocks issued by Camden Company. The company is about to pay $3 dividend per share on its stock. Investors anticipate that the annual dividend will rise by 6% a year forever. If Sara requires a rate of return of 11% on the stock, what is the current price of Camden stock? 7. Sara’s software company is thinking of buying a real estate property for $400,000 with the intention of selling it at the end of the year. The company expects that the property will be worth $480,000 in one year. If the interest rate is 10%, should the company buy the property?8. Should the company purchase the property if the interest rate is 25%?9. Sara’s company wants to calculate the end-of-the year wealth if the company receives an annual rate of 24% compounded monthly. Calculate the effective annual rate.10. If an annual percentage rate of 24% is compounded quarterly, what is the effective annual rate for Sara software company?

Michelle has told you that the board is now ready to see the final presentation of your plan for MM’s new product.  "They are very eager to see what we have been working on during the past few weeks," she says excitedly. "I am sure they will love the plan and am looking forward to your presentation." "Thanks," you respond, feeling a few butterflies in your stomach. "I am looking forward to the presentation also. I think we have covered all of the bases and I am sure we have a solid plan.  I have jotted down the order of items to cover that I think will be best for the presentation. What do you think?" Objectives of plan Marketing research used to select target market Product Pricing Distribution Promotional Strategies Measuring results Contingency Plan"This looks like a solid format for the presentation. Let me know if you have any questions and I will be happy to help," Michelle says exiting your office. You close the door of your office so you can fully concentrate on preparing your presentation. You have a lot of material to cover, but you have been working on this plan for weeks. Now it's just a matter of formulating a cohesive strategy and anticipating any questions that may arise during the presentation. What might somebody else say to show your proposed solution is wrong?  What could you say to show s/he is wrong?  What alternative solution might someone else recommend?  What reasons might someone provide to support their solution?  How would you respond to their reasons?  Is there a compromise or creative solution?