The following incomplete (columns have missing amounts) pension spreadsheet is for Old Tucson Corporation (OTC).

($ in millions) debit (credit) PBO Plan assets Prior service cost Net (Gain) loss Pension Expenses Cash Net Pension (Liability)/ Asset
Beginning Balance (590) 85
Service cost 89
Interest cost
Expected return on assets (32)
Gain/loss on assets (6.50)
Amortization of:
Prior service cost (15)
Net gain loss
Loss on PBO (34) (34)
Contribution to funds (83)
Retiree benefits paid 61 (61)
Ending balance (679) 341 81 105 (339)

What was the balance of the net pension asset/liability reported in the balance sheet at the end of the previous year?

1. Net pension asset of $310.50.

2. Net pension asset of $555.00.

3. Net pension liability of $555.00.

4. Net pension liability of $310.00.

Solution:

Service cost (from pension expense column) = $89 = ($89) in the PBO column

Interest cost (from pension expense column) = $32 = ($32) in the PBO column

Loss on PBO (given) = ($34)

Retiree benefits (from plan assets column) = ($61) = $61 in the PBO column

Ending PBO = ($670) + (89) + (32) + (34) + 61 = ($886)

Net pension liability = ($886) + 331 = ($555)

Net pension asset of $555.00 was the balance of the net pension asset/liability reported in the balance sheet at the end of the previous year

c

explanation:

c because the item on a bank statement is also referred to as an account statement. in addition, it provides the beginning balance, ending balance, statement date, transaction date for each transaction, payee, customer name and address, statement period, the account holder's account number, and the bank's customer service number

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.