1. How can business process improvement management technique can benefit a company? What are the important aspects of business process improvement for a firm to succeed from an accounting and decision making standpoint?

ThreePoint Sports Inc. manufactures basketballs for the Women’s National Basketball Association (WNBA). For the first 6 months of 2020, the company reported the following operating results while operating at 80% of plant capacity and producing 120,300 units.

Fixed costs for the period were cost of goods sold $960,000, and selling and administrative expenses $243,000.

In July, normally a slack manufacturing month, ThreePoint Sports receives a special order for 10,000 basketballs at $29 each from the Greek Basketball Association (GBA). Acceptance of the order would increase variable selling and administrative expenses $0.73 per unit because of shipping costs but would not increase fixed costs and expenses.

(a) Prepare an incremental analysis for the special order. (Round all per unit computations to 2 decimal places, e.g. 15.25. Enter negative amounts using either a negative sign preceding the number e.g. -45 or parentheses e.g. (45).)

(b) Should ThreePoint Sports Inc. accept the special order?

(c) What is the minimum selling price on the special order to produce net income of $5.19 per ball? (Round answer to 2 decimal places, e.g. 15.25.)

Service Emphasis
The following analysis of selected data is for each of the two services Rockville Corporation provides.

In the Rockville's operation, labor capacity is the company's constraining resource. Each unit of G requires 3 hours of labor, and each unit of H requires 1 hours of labor. Assuming that all services can be sold at a normal price, prepare an analysis showing which of the two services should be provided with any unused productive capacity that Rockville might have.

A. Any unused capacity should be devoted to Service H, which has $2 less contribution margin per labor hour than does Service G.

B. Any unused capacity should be devoted to Service G, which has $2 more contribution margin per labor hour than does Service H.

C. Any unused capacity should be devoted to Service H, which has $2 more contribution margin per labor hour than does Service G.

The following payments and receipts are related to land, land improvements, and buildings acquired for use in a wholesale ceramic business. The receipts are identified by an asterisk.

Allocation to Fixed Asset Accounts

Shields Company is preparing its interim report for the second quarter ending June 30. The following payments were made during the first two quarters: Expenditure Date Amount Annual advertising January $ 808,000 Property tax for the fiscal year February 358,000 Annual equipment repairs March 268,000 One-time research and development fee to consultant May 98,000 Required: For each expenditure, indicate the amount that would be reported in the quarterly income statements for the periods ending March 31, June 30, September 30, and December 31. Quarters Ending March 31 June 30 September 30 December 31 Advertising Property tax Equipment repairs Research and development

X Company prepares monthly financial statements. Its accountant recorded the following October 1 transactions and the appropriate adjusting entries on October 31:

1. On October 1, the company paid rent for the final three months of the year. Rent was $1,525 per month.
2. On October 1, the company purchased equipment that cost $20,000, borrowing the full amount from a bank. The equipment has a life of four years and a salvage value at that time of $2,000. The company will repay the loan on December 31, along with interest at $152 per month.

8. What was the effect of the accountant's entries on total assets?

9. What was the effect of the accountant's entries on Net Income in October?

The following information was taken from Egeland Ltd.’s adjusted trial balance as at July 31, 2020:

Prepare a single-step statement of income for the year ended July 31, 2020.
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Prepare a multi-step statement of income for the year ended July 31, 2020.

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Determine Egeland’s gross margin percentage for the year. (Round answer to 1 decimal place, e.g. 52.7%.)

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If Egeland had 88,000 common shares outstanding throughout the year, determine the company's basic earnings per share. (Round answer to 2 decimal places, e.g. 52.75.)

Part A

Billy Tushoes recently received an offer to join the accounting firm of Tick and Check LLP. Billy would prefer to work for Foot and Balance LLP but has not received an offer from the firm the day before he must decide whether to accept the position at Tick and Check. Billy has a friend at Foot and Balance and is thinking about calling her to see if she can find out whether an offer is forthcoming.

Part B

Assume that Billy calls his friend at Foot and Balance and she explains the delay is due to the recent merger of Vouch and Trace LLP with Foot and Balance. She tells Billy that the offer should be forthcoming. However, Billy gets nervous about the situation and decides to accept the offer of Tick and Check. A week later, he receives a phone call from the partner at Foot and Balance who had promised to contact him about the firm’s offer. Billy is offered a position at Foot and Balance at the same salary as Tick and Check. He has one week to decide whether to accept that offer. Billy is not sure what to do. On one hand, he knows it’s wrong to accept an offer and then renege on it. On the other hand, Billy hasn’t signed a contract with Tick and Check, and the offer with Foot and Balance is his clear preference because he has many friends at that firm.

Required information

Suppose Billy Tushoes rejects the Tick and Check to take the Foot and Balance offer. Three months later at a local CPA chapter meeting, one of the partners at Tick and Check informs his counterpart, a partner at Foot and Balance, of his disappointment in Billy reneging on his promise at the last minute. Following the AICPA Code of Conduct, Foot and Balance might well do what?

A. Ignore the incident and be glad to have Billy at FB rather than at the competition.

B. Prepare a memo for Billy’s file recounting the situation.

C. Call Billy in and ask why he acted in such a manner.

D. Inform Billy he has 90 days to find a job somewhere else because the firm no longer trusts his integrity.

Music Teachers, Inc., is an educational association for music teachers that has 20,400 members. The association operates from a central headquarters but has local membership chapters throughout the United States. Monthly meetings are held by the local chapters to discuss recent developments on topics of interest to music teachers. The association’s magazine, Teachers’ Forum, is issued monthly with features about recent developments in the field. The association publishes books and reports and also sponsors professional courses that qualify for continuing professional education credit. The association’s statement of revenues and expenses for the current year is presented below.

The board of directors of Music Teachers, Inc., has requested that a segmented income statement be prepared showing the contribution of each segment to the association. The association has four segments: Membership Division, Magazine Subscriptions Division, Books and Reports Division, and Continuing Education Division. Mike Doyle has been assigned responsibility for preparing the segmented income statement, and he has gathered the following data:

a. The 20,400 members of the association pay dues of $100 per year, of which $20 covers a one-year subscription to the Teachers’ Forum. Other benefits include membership in the association and chapter affiliation. The portion of the dues covering the magazine subscription ($20) should be assigned to the Magazine Subscriptions Division.

b. A total of 3,800 one-year subscriptions to Teachers’ Forum were also sold last year to nonmembers and libraries at $38 per subscription. In addition to subscriptions, the journal generated $109,000 in advertising revenues.

c. The costs to produce the Teachers’ Forum magazine included $7 per subscription for printing and paper and $4 per subscription for postage and shipping.

d. A total of 28,200 technical reports and professional texts were sold by the Books and Reports Division at an average selling price per unit of $25. Average costs per publication were $4 for printing and paper and $2 for postage and shipping.

e. The association offers a variety of continuing education courses to both members and nonmembers. The one-day courses had a tuition cost of $75 each and were attended by 2,500 students. A total of 1,780 students took two-day courses at a tuition cost of $125 for each student. Outside instructors were paid to teach some courses.

f. Salary costs and space occupied by division follow:

Personnel costs are 25% of salaries in the separate divisions as well as for the corporate staff. The $226,000 in occupancy costs (which can be allocated to segments based on their square feet occupied) includes $53,000 in rental cost for a warehouse used by the Books and Reports Division for storage purposes. Assume that this cost could be avoided if the division were eliminated.

g. Printing and paper costs other than for magazine subscriptions and for books and reports relate to the Continuing Education Division.

h. General and administrative expenses include costs relating to overall administration of the association as a whole. The company’s corporate staff does some mailing of materials for general administrative purposes.

The expenses that can be traced or assigned to the corporate staff, as well as any other expenses that are not traceable to the segments, will be treated as common costs. It is not necessary to distinguish between variable and fixed costs.

Required:

1. Prepare a segmented income statement for Music Teachers, Inc. This statement should show the segment margin for each division as well as results for the association as a whole.

How might cultural, political, or geoeconomic challenges affect a global company’s use of the Internet? Give several examples in your own words.

On December 18, 2017, Stephanie Corporation acquired 100 percent of a Swiss company for 4.0 million Swiss francs (CHF), which is indicative of book and fair value. At the acquisition date, the exchange rate was $1.00 = CHF 1. On December 18, 2017, the book and fair values of the subsidiary’s assets and liabilities were:

Stephanie prepares consolidated financial statements on December 31, 2017. By that date, the Swiss franc has appreciated to $1.10 = CHF 1. Because of the year-end holidays, no transactions took place prior to consolidation.

1. Determine the translation adjustment to be reported on Stephanie’s December 31, 2017, consolidated balance sheet, assuming that the Swiss franc is the Swiss subsidiary’s functional currency. What is the economic relevance of this translation adjustment?

2. Determine the remeasurement gain or loss to be reported in Stephanie’s 2017 consolidated net income, assuming that the U.S. dollar is the functional currency. What is the economic relevance of this remeasurement gain or loss?

A firm is deciding on a new project. Use the following information for the project evaluation and analysis: - The initial costs are $450,000 for fixed assets. The fixed assets will be depreciated straight line to a zero book value over the 3-year life of the project. The fixed assets have an estimated salvage value of $30,000 at the end of the project. - The project also requires an additional $100,000 for net working capital to start the project. All of the net working capital will be recouped at the end of the 3 years. - The project is expected to generate annual sales of $1,000,000 (1,000 units at $1,000) and total costs of $550,000 per year - The firm’s marginal tax rate is 40 percent. - The required rate of return for this project is 20% a) What is the Operating Cash Flow for each year of the project? b) What is the after-tax salvage value at the end of this project? c) What are the Cash Flows from Assets each year for this project? Year 0 1 2 3 OCF ΔNWC NCS CFFA d) What is the NPV of this project?

Determine the missing amounts in each of the following independent cases

What is the Uniform Interstate Family Support Act? Why would HR be concerned with this Act?

See http://www.aaml.org/sites/default/files/jurisdictional%20issues%20under-uifsa.pdf for an overview.