Using the following information, complete journal entries, adjusted trial balance, financial statements (income statement, statement of owner’s equity and balance sheet) and closing entries (be sure to post the closing entries to the ledger accounts).
|
On April 1, 2020, Jennifer Stafford created a new travel agency, See-It-Now Travel. The following transactions occurred during the company’s first month. |
|
April 1 |
Stafford invested $48,000 cash and computer equipment worth $20,000 in the company. |
|
2 |
The company rented furnished office space by paying $2,300 cash for the first month’s (April) rent. |
|
3 |
The company purchased $1,400 of office supplies for cash. |
|
10 |
The company paid $3,000 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. |
|
14 |
The company paid $1,600 cash for two weeks' salaries earned by employees. |
|
24 |
The company collected $10,500 cash on commissions from airlines on tickets obtained for customers. |
|
28 |
The company paid $1,600 cash for two weeks' salaries earned by employees. |
|
29 |
The company paid $250 cash for minor repairs to the company's computer. |
|
30 |
The company paid $1,050 cash for this month's telephone bill. |
|
30 |
Stafford withdrew $2,200 cash from the company for personal use. |
|
The company's chart of accounts follows: |
|
101 |
Cash |
405 |
Commissions Earned |
|
106 |
Accounts Receivable |
612 |
Depreciation Expense—Computer Equip. |
|
124 |
Office Supplies |
622 |
Salaries Expense |
|
128 |
Prepaid Insurance |
637 |
Insurance Expense |
|
167 |
Computer Equipment |
640 |
Rent Expense |
|
168 |
Accumulated Depreciation—Computer Equip. |
650 |
Office Supplies Expense |
|
209 |
Salaries Payable |
684 |
Repairs Expense |
|
301 |
J. Stafford, Capital |
688 |
Telephone Expense |
|
302 |
J. Stafford, Withdrawals |
901 |
Income Summary |
|
Use the following information: |
|
a. |
Two-thirds of one month’s insurance coverage has expired. |
|
b. |
At the end of the month, $600 of office supplies are still available. |
|
c. |
This month’s depreciation on the computer equipment is $600. |
|
d. |
Employees earned $520 of unpaid and unrecorded salaries as of month-end. |
|
e. |
The company earned $1,600 of commissions that are not yet billed at month-end. |
(So I have posted this question before but I have forgotten to add the important information at the top of this question)
In: Accounting
Question is related to organisations and stakeholders. Different stakeholders have different expectations from the company. select a small/ medium enterprise and list 11 stakeholders related to the enterprise and their individual concerns.
In: Math
book: Fundamentals of Corporate Finance Alternate Edition (9th Edition)
Conch Republic Electronics, Part 1
Conch Republic Electronics is a small electronics manufacturer
located in Key West, Florida. The president of the company is
Shelley Couts, who inherited the business. When the company was
founded more than 70 years ago, it repaired radios and other
devices for the home. With the passage of time, the company
expanded to the manufacturing areas and today is a reputed producer
of various electronic items. Jay McCanless, a recent MBA graduate,
has been hired by the company's bail department. One of the main
devices manufactured by Conch Republic and that generates income in
a personalized digital assistant (PDA, acronym for personal digital
assistant). Today, Conch Republic has a PDA model in the market and
sales have remained at an excellent level. The PDA is a unique item
that comes in a variety of tropical colors and has been
preprogrammed to play Jimmy Buffett's music. However, as with any
electronic article, the technology changes the deprivation and the
real PDA has limited features compared to other more recent models.
Conch Republic spent $ 750,000 to develop the prototype of a new
PDA that has all the characteristics of the real, but adds new
features such as the capacity of a cell phone. The company has
spent an additional $ 200,000 for a marketing study to determine
the sales figures expected for the new PDA. Conch Republic can
manufacture the new PDA at a variable cost of $ 155 per unit. It
has been estimated that the operation costs will be 4.7 million per
year. The estimated volume of sales is 74,000, 95,000,125,000,
105,000 and 80,000 dollars annually for the next five years. The
unit price of the new PDA will be 360 ??dollars. The necessary
equipment can be purchased for 21.5 million dollars and depreciated
based on a seven-year MACRS program. It is considered that within
five years the value of the equipment will be 4.1 million dollars.
As you said, Conch Republic currently manufactures a PDA. It is
expected that the production of the model will be completed within
the years. If Conch Republic does not present the new PDA, sales
will be 80,000 and 60,000 units for the next two years. The price
of the real PDA is $ 290 per unit, with variable variables of $ 120
per year and costs of $ 1,800,000 per year. If Conch Republic truly
presents the new PDA, the actual PDA sales will decrease by 15,000
units per year and the price of the available units will decrease
by 255 dollars each. The net working capital for PDAs is 20% of
sales and the present with the periodicity of cash flows for the
year; for example, there is no initial outlay for the NWC, but
changes in the NWC will occur first in year 1 with the first year
sales. Conch Republic has a corporate rate of 35% and a required
return of 12%. Shelly has asked for a Jay to prepare a report that
answers the following questions.
Questions
1. What is the recovery period of the project?
2. What is the profitability index of the project?
3. What is the internal rate of return of the project?
4. What is the net present value of the project?
In: Finance
1. Suppose that an individual has the following utility function, ? = ?^0.5?.?, where U stands for utility and W for Wealth. The individual currently has a net wealth of $400,000. The individual believes there is a 5% chance they will get into a car accident this year. It is expected that a car accident would cost them $100,000 (dropping their overall wealth to $300,000).
a) How much would it cost to purchase an actuarially fair insurance policy to cover all losses from a car accident? (In other words, what are the expected losses)
b) How much would the individual be willing to pay for this policy? (What are the maximum loading fees that an insurance company could charge for this policy)
c) Provide an example utility function for a risk-averse, a risk-neutral, and risk-loving individual. You may use a graph or mathematical formula.
In: Economics
Please select topic one or topic two below and use it to formulate a thread that is at least one paragraph in length. (You do not necessarily need to address all of the questions, they are to help you get started, please feel free to add ideas as well.) After composing your initial thread, please respond to a minimum of two threads from your classmates.
1. What is a right? Please name two or more rights that we have. Is healthcare a right? If so, why, and how much are we entitled too. Who should decide what care we get? Who should pay? Who should ensure we get this right? Does the Affordable Care Act assist us in the right to healthcare? Do insurance companies assist us in the right to healthcare?
2. Please look up and list the salaries and bonuses for CEOs of Aetna, BC/BS, United Health Care, Cigna, etc. Did the information surprise you? Where does the money for this come from? How do these companies operate? Do you think the system could be improved, if so, how?
In: Economics
In: Computer Science
Please answer in required words
BAIDU'S BUSINESS MODEL AND ITS EVOLUTION
.
INTRODUCTION
.
In the second quarter of 2016 ended July, Baidu, Inc.
(Baidu), the leading Chinese language Internet search engine,
reported a 34% fall in its quarterly net income — its biggest
quarterly decline since going public in August 2005. The company’s
net income fell to RMB 2.41 billion (US$362 million) in the quarter
from RMB 3.66 billion a year earlier. The poor performance of the
company was attributed to curbs on online advertising in China
following the death of a 21-year-old Chinese student in April 2016
who had tried an experimental cancer therapy advertised on Baidu’s
website. “The challenges Baidu faced in the second quarter served
as a healthy reminder to stay focused on the key drivers of growth,
sustainability and leadership: delivering the best user experience
and staying at the forefront of technology. The implementation of
new regulations and the stricter standards that we proactively
imposed to make our platform more robust will likely suppress
revenue for the next two to three quarters. This period of
uncertainty will pass,” said Robin Li Yanhong (Li), Chairman and
CEO of Baidu.
BACKGROUND NOTE
Baidu was co-founded by Li and his friend Xu in 2000.
In 1991, Li, a native of the Shanxi province of China, went to the
US for higher studies. After completing his studies, he worked with
IDD Information Services between 1994 and 1997, and as a staff
engineer at Infoseek between 1997 and 1999. Right from the
beginning, Li had a passion for Internet-based search and while
working at Infoseek he developed a search mechanism called ‘Link
Analysis’. After this, he was given an assignment to supervise
search engine development. But in 1999, Walt Disney Co. acquired a
stake in Infoseek after which the company’s focus shifted from
search to content. In order to further his interests in search
engines, Li decided to start his own search engine along with Xu, a
Chinese national working in the US, who had a PhD in biochemistry
and good contacts in Silicon Valley.
EXCERPTS
BUSINESS MODEL
Baidu generated revenues mainly from online marketing
services which included pay-for-placement (P4P) services,
performance-based online marketing, and time-based online
advertising services. The company’s P4P Program was one of the core
tenets of its business model.The auction-based P4P platform was an
online marketplace that enabled customers to bid for priority
placement of their links in the search results and reach users who
searched for information related to their products or services.
Baidu was the first auction-based P4P service provider in China.The
P4P model helped Baidu monitor each click, understand the tastes
and preferences of Chinese internet users better, and improve user
experiences in order to drive traffic to its sites.
SECRET OF SUCCESS
Since its inception, Baidu had positioned itself as a
Chinese language search engine which allowed users to find
information, products, and services using Chinese. According to
industry observers, it was a challenging task for Baidu because of
the complexity of the Chinese language. To make search easier for
users, it introduced the ‘pinyin’ search in 2001 that allowed users
to type in Chinese keywords using English alphabets when the user
was not sure of a written form of a keyword. This gave relevant
results and made Baidu’s search reliable.
FORAY INTO O2O SERVICES
O2O was one of the fastest growing segments in the
Chinese e-commerce market and was projected to grow at an annual
rate of 25% from US$390 billion in 2014 to US$718 billion in 2017
(See Exhibit IV). A growing population, an increasing number of
internet users, and the rapid shift toward smartphones from
personal computers were driving the O2O trend in China. With the PC
search business maturing and the Chinese economy slowing down, Li
was looking to diversify as he wanted to reduce Baidu’s dependence
on the desktop search business. His goal was to transform Baidu
from connecting people with information to connecting people with
services. He decided to invest in O2O services as he wanted Baidu
to capture a substantial market share in the surging but highly
competitive e-commerce space in China. According to Li, the Chinese
O2O represented a US$1.6 trillion market opportunity.
GLOBAL EXPANSION
Though Baidu was the biggest search engine in China,
its presence outside the country was limited. In 2007, it entered
Japan but eventually succumbed to market pressures and shut down
its Japanese search engine in March 2015. In Japan, Baidu could not
compete against Yahoo and Google and eventually reported losses
that amounted to RMB 260 million in 2010. Despite the setback, Li
said that he wanted Baidu to become a global brand with a presence
in over half the world’s countries. Baidu’s president, Zhang Yaqin
(Yaqin), said the company was targeting emerging markets like
Brazil, Indonesia, and India with their huge populations and
rapidly growing mobile usage so that the company could attract a
new wave of users who were coming online for the first time on
their smartphones. He said that in such markets Baidu planned to
roll out specific products for each country rather than coming out
with a generic, across-the-board service offering. “Baidu has more
than 700 million users abroad, with over 250 million active users
in a month. Over the past three decades, we have virtualized the
physical world, but in the next three decades, we will go the
reverse process, applying the Internet technology and business
model to the physical world,” said Yaqin.
GROWING PAINS
Though Baidu dominated the online search engine market
in China, its reputation was at stake as the company became
involved in some serious medical and healthcare-related scandals in
China. In April 2016, a 21-year-old college student, Wei Zexi
(Wei), died of cancer after reportedly receiving experimental
treatment from a hospital in Beijing that advertised on the Baidu
search engine.
A NEW BUSINESS MODEL
In May 2016, Li announced that Baidu would shift its
business from a search-oriented model to one based on Artificial
Intelligence due to a slowing revenue growth in its core search
business. He said that the shift would allow the company to develop
products in areas such as voice search, automatic translation, and
driverless vehicles. Baidu was exploring a sub-field of artificial
intelligence known as deep learning which aimed to improve search
results by training computers to work more like the human brain. In
September 2016, Baidu launched an artificial system called the
Baidu Brain, featuring state-of-the-art technology for recognizing
and processing speech, images, and words and building user profiles
based on big data analysis. In 2014, Baidu had opened its research
facility on Deep Learning in Silicon Valley and appointed
Artificial Intelligence (AI) researcher Andrew Ng as Chief
Scientist of Baidu. Ng was to lead Baidu Research, with labs in
Beijing and Silicon Valley.
CAN BAIDU BOUNCE BACK?
China with about 710 million internet users as of June
2016 was the world’s fastest-growing online market. As of September
2016, Baidu continued to dominate the Chinese search engine market
with a market share of 54.3% followed by Qihoo 360 (29.24%) and
Sogou 14.71%. In the third quarter ended September 2016, Baidu’s
revenues were RMB18.253 billion (US$2.737 billion), a 0.7% decrease
from the corresponding period in 2015. Net income was RMB 3.102
billion (US$465.2 million), a 9.2% increase compared to the
corresponding period of the previous year. Revenue from online
marketing services decreased by 6.7% year on year and 2.6% quarter
on quarter due to a slump in the number of active online marketing
customers.
.
Case Questions:
.
1. Evaluate the business model and
strategy of Baidu and suggest which of the leadership skills
facilitate the team performance and that contributed to its
success. (100 words)
.
2. Illustrate the internal and external
factors of team performance and examine the global expansion
strategy of Baidu. (150 words)
.
3. Identify the need to continuously
reinvent the business model of a company amidst rising competition
and the changes in the business environment. (100 words)
.
4. Explore ways in which Baidu can
overcome the challenges by effective team performance. (100
words)
In: Operations Management
A) Which of these groups is known from fossils in both Europe and Africa from 200,000 years ago?
B) What did the discovery of Neanderthal DNA in modern human genomes tell us about gene flow as Homo sapiens emerged from Africa?
C) The LCT allele for persistence of lactase until adulthood is today found at high frequency (40-100%) in various populations of Europe, where dairy farming has been practiced for thousands of years. Which of the following is our current understanding of the origins of the allele in Europe.
D) Which of the following are real limitations of direct-to-consumer percentage ancestry tests? Select all that apply.
|
A. A SNP may occur at appreciable frequency in multiple geographically distant populations, which can lead to incorrect estimates of trace percentages. |
|
|
B. The reference populations to which test subjects are compared may fail to include the genetic variation most relevant to the individual being tested and may include misclassified reference individuals. |
|
|
C. The composition of the reference population varies among companies, which can lead to an individual receiving different estimate from different tests. |
|
|
D. There are not enough variable SNPs in the human genome to identify individual relatives with certainty. |
In: Biology
n April 1, Jiro Nozomi created a new travel agency, Adventure Travel. The following transactions occurred during the company’s first month.
| April | 1 | Nozomi invested $48,000 cash and computer equipment worth $25,000 in the company in exchange for common stock. | ||
| 2 | The company rented furnished office space by paying $2,300 cash for the first month’s (April) rent. | |||
| 3 | The company purchased $1,300 of office supplies for cash. | |||
| 10 | The company paid $2,700 cash for the premium on a 12-month insurance policy. Coverage begins on April 11. | |||
| 14 | The company paid $1,400 cash for two weeks' salaries earned by employees. | |||
| 24 | The company collected $12,500 cash for commissions earned. | |||
| 28 | The company paid $1,400 cash for two weeks' salaries earned by employees. | |||
| 29 | The company paid $500 cash for minor repairs to the company's computer. | |||
| 30 | The company paid $1,050 cash for this month's telephone bill. | |||
| 30 |
The company paid $2,100 cash in dividends. |
Use the following information:
Required:
1. & 2. Prepare journal
entries to record the transactions for April and post them to the
ledger accounts in Requirement 6b. The company records prepaid and
unearned items in balance sheet accounts.
3. Using account balances from Requirement 6b,
prepare an unadjusted trial balance as of April 30.
4. Journalize the adjusting entries for the month
and prepare the adjusted trial balance.
5a. Prepare the income statement for the month of
April 30.
5b. Prepare the statement of retained earnings for
the month of April 30.
5c. Prepare the balance sheet at April 30.
6a. Prepare journal entries to close the temporary
accounts and then post to Requirement 6b.
6b. Post the journal entries to the ledger.
7. Prepare a post-closing trial balance.
In: Accounting
Structuring a Make-or-Buy Problem
Fresh Foods, a large restaurant chain, needs to determine if it would be cheaper to produce 5,000 units of its main food ingredient for use in its restaurants or to purchase them from an outside supplier for $12 each. Cost information on internal production includes the following:
| Total Cost | Unit Cost | ||
| Direct materials | $25,000 | $ 5.00 | |
| Direct labor | 15,000 | 3.00 | |
| Variable manufacturing overhead | 7,500 | 1.50 | |
| Variable marketing overhead | 10,000 | 2.00 | |
| Fixed plant overhead | 30,000 | 6.00 | |
| Total | $87,500 | $17.50 |
Fixed overhead will continue whether the ingredient is produced internally or externally. No additional costs of purchasing will be incurred beyond the purchase price.
Required:
1. What are the alternatives for Fresh
Foods?
Make the ingredient in house or buy it externally.
2. List the relevant cost(s) of internal production and of external purchase.
All of the above
3. Which alternative is more cost
effective?
Make the ingredient in-house
By how much?
$
4. Now assume that 20% of the fixed overhead
can be avoided if the ingredient is purchased externally. Which
alternative is more cost effective?
Buy
By how much?
$
Determining the Optimal Product Mix with One Constrained Resource
Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 20 minutes of machine time.
Assume that there are no other constraints.
Required:
1. What is the contribution margin per hour of machine time for each type of sweatshirt? When computing your answers, round machine time per unit to two decimal places. Round your final answers to the nearest dollar.
| Contribution Margin | |
| Swoop | $ 50 |
| Rufus | $ 45 |
2. What is the optimal mix of sweatshirts? If an amount is zero, enter "0".
| Optimal Mix | |
| Swoop | units |
| Rufus | units |
3. What is the total contribution margin earned
for the optimal mix?
$
Determining the Optimal Product Mix with One Constrained Resource and a Sales Constraint
Comfy Fit Company manufactures two types of university sweatshirts, the Swoop and the Rufus, with unit contribution margins of $5 and $15, respectively. Regardless of type, each sweatshirt must be fed through a stitching machine to affix the appropriate university logo. The firm leases seven machines that each provides 1,000 hours of machine time per year. Each Swoop sweatshirt requires 6 minutes of machine time, and each Rufus sweatshirt requires 20 minutes of machine time.
Assume that a maximum of 40,000 units of each sweatshirt can be sold.
Required:
1. What is the contribution margin per hour of machine time for each type of sweatshirt? When computing your answers, round machine time per unit to two decimal places. Round your final answers to the nearest dollar.
| Contribution Margin | |
| Swoop | $ 50 |
| Rufus | $ 45 |
2. What is the optimal mix of sweatshirts? When computing your answers, round machine time per unit to two decimal places. Round your final answers to the nearest whole unit.
| Optimal Mix | |
| Swoop | units |
| Rufus | units |
3. What is the total contribution margin earned
for the optimal mix?
$
In: Accounting