Ancelotti, Inc. is a calendar-year corporation. Its financial statements for the years 2011 and 2010 contained errors as follows:

1) Ending Inventory for 2011 is overstated by $3,000

2) Ending Inventory for 2010 is overstated by $8,000

3) Salaries expense for 2011 is understated by $2,000

4) Salaries expense for 2010 is overstated by $6,000

No correcting entries were made at December 31, 2010. Assuming no taxes, by how much will retained earnings at December 31, 2011 be overstated or understated?

a. $1,000 understated b. $5,000 overstated c. $5,000 understated d. $9,000 understated

The answer is a. $1,000 but I need an explanation because I do not know how to solve this question, thanks.

On Jan 1, 2010, the Michael-book Company adopted the dollar-value LIFO method for its one inventory pool. The pool's value on this date was $600,000. The 2010 and 2011 ending inventory valued at year-end costs were $690,000 and 714,960 respectively. The appropriate cost indexes are 1.04 for 2010 and 1.08 for 2011.

1. Calculate the ending inventory balance that Michael-book will report on its Dec 31, 2010 balance sheet.

2. Calculate the ending inventory balance that Michael-book will report on its Dec 31, 2011 balance sheet.

3. Explain in 1 to 3 sentences, why the dollar-value LIFO often results in less frequent LIFO liquidations.

1. Consider the following data, answer the question below:

Calculate Real GDP in 2012

2) Given the data below calculate Nominal GDP, Real GDP, and the GDP Deflator using 2010 as the base year.

                                                      2010               2011               2012              

Nominal GDP Calculation                    _______        _______        _______

Real GDP Calculation              _______        _______        _______

GDP Deflator Calculation

A

2010

poll asked people in the United States whether they were satisfied with their financial situation. A total of

338

out of

833

people said they were satisfied. The same question was asked in

2012

, and

304

out of

1156

people said they were satisfied.

Part 1 of 2

Your Answer is correct

(a) Construct a

99.8%

confidence interval for the difference between the proportions of adults who said they were satisfied in

2012

and

2010

. Let

p1

denote the proportion of adults who said they were satisfied in

2010

.Use tables to find the critical value and round the answer to at least three decimal places.

A

99.8%

confidence interval for the difference between the proportions of adults who said they were satisfied in

2012

and

2010

is  

<0.077<−p1p20.209.

Part: 1 / 2

1 of 2 Parts Complete

Part 2 of 2

(b) A sociologist claims that the proportion of people who are satisfied increased from  

2010

to  

2012

by more than

0.22

. Does the confidence interval contradict this claim?

Case Study Instructions: Read this case study and answer the questions that follow: Virgin was founded in 1970 by Richard Branson and is classified as a holding company for multiple ventures under the Virgin Group. When it comes to innovation Virgin is one of the top companies in the world. What began as a mail order record company has evolved into one of the most diverse companies in existence. Virgin invests in and builds companies that revolve around delivering fantastic customer experience and change the scope of industries. They do everything from space tourism to air travel, make comic books and video games. The company now holds over 200 companies and operates in 29 countries. They’ve found that the most successful ideas they get are the ones that are marketing, sales, and customer focused, sit under the Virgin brand, have a well-defined and differentiated customer offer and oftentimes are delivered in partnership with experts in their field.
Virgin takes the ideas it gets and boils them down into several categories. Anything that doesn’t quite fit into an existing company gets sent to corporate development for review. They take the time to read and respond to every proposal. They do not disclose how rewards are awarded but there are substantial ones for good ideas that are implemented. Internally Virgin also sources business plans and ideas from employees. Once a flight attendant had an idea. It got presented to the CEO and before long she had a considerable role in starting up Virgin Brides (which beyond being a fantastic idea didn’t quite work out in the market place). It’s incredible that a flight attendant can have an idea that makes it that far in a company. Notice that Virgin has over 200 companies under it. If you stop for a second you’ll realize just how massive that number is. That is a lot of innovation for a company only 40 years old. Financially they do quite well so obviously something has been working out for them. Not a lot of firms innovate this much or support this much innovation but that’s kind of the key – they don’t just source great ideas, they act on them. Sourcing this many fantastic ideas isn’t easy – it’s a lot of hard work for the company and they have to devote time and resources to going through all of them never mind actually taking the time to respond. But it shows that they care and that they’re serious about this. All great innovations come from an idea. Some go so far as to say it’s the most important part of the process (Seth Godin would likely disagree and say that shipping is the most important). Some companies looking at Virgin’s requirements might find them surprisingly strict, others surprisingly loose. No matter how you view it the only thing that remains true at the end of the day is that Virgin’s strategy works – and it works well.

Required:
Business excellence is about strategy. From the case study which strategies has Virgin used to achieve continuous creativity and innovation.

Explain why emissions permit trading mechanism in general provides relatively weaker incentives for innovation compared with emissions taxes?

The term innovation has begun to be a buzz word in healthcare. How does this concept fit into leadership and in knowledge of the healthcare environment?

using qualitative or quantitative research tools to explain how motives to adopt green innovation might differ among business.

Briefly discuss the reason why firms can still benefit from their innovation despite imitation by other rival firms?

When creating a measurement system for innovation, how would you measure the improvement in the skills of your employees?

Your thoughts?