1. What does a "Multidisciplinary/Interdisciplinary" environment mean to you? - Multidisciplinary is when people from different disciplines work together, each drawing on their disciplinary knowledge. Interdisciplinary is when integrating knowledge and methods from different disciplines, using a real synthesis of approaches. 2. How can this environment be achieved in the academic setting? 3. Would this type of environment help you in your academic learning? Why or why not? 4. Would this environment in school help you in any way to become a better clinical professional? Why or why not? 5. How can this environment be better achieved or promoted in the clinical setting? 6. Anything else that you find important.

Help with 2-6 please

After reviewing the case for Nature Bros. Ltd., answer the following questions. After reviewing this material, make a list of additional information which should be supplied to support the sales projections. Comment on objectives: Are they reasonable, optimistic, or conservative? What marketing mix would best support this growth rate? Evaluate the information supplied regarding a new product development and physical assets in light of the pro forma income statements Morris developed. Is the capital sought appropriate for the circumstances? If more information is needed, state what it is and how it could be obtained. What sources should Morris approach for this amount of capital? Based on the current balance sheet, how much equity should he give up for the investment?

NATURE BROS. LTD. BACKGROUND Thanksgiving Day 1993 is the day that Dale Morris remembers as the “public debut” of his creation, a new seasoned salt mix. Although he was a salesman by temperament and career, his hobby was cooking. Having experimented with both traditional home cooking and more exotic gourmet cooking, Morris had developed an appreciation for many herbs and spices. He had also done a lot of reading about the health hazards of the typical American diet. When his mother learned that she had high blood pressure, Morris decided it was time for some action. He created a low-salt seasoning mix, based on a nutritive yeast extract, that could be used to replace salt in most cases. This Thanksgiving dinner, prepared for 25 family members and friends, would be his final testing ground. He used his mix in all the recipes except the pumpkin pie—everything from the turkey and dressing to the vegetables and even the rolls. As the meal progressed, the verdict was unanimously in favor of his secret ingredient, although he had a hard time convincing them that it was his invention and was only 10 percent salt. Everyone wanted a sample to try at home. Over the next two years, Morris perfected his product. Experiments in new uses led to “tasting parties” for friends and neighbors, and the holiday season found the Morris kitchen transformed into a miniature assembly line producing gift-wrapped bottles of the mix. Morris became something of a celebrity in his small town, but it wasn’t until the Ladies’ Mission Society at his church approached him with the idea of allowing them to sell his mix as a fund-raiser that he realized the possibilities of his creation. His kitchen-scale operation could support the sales effort of the church women for a short time, but if he wanted to take advantage of a truly marketable product, he would have to make other arrangements. Morris agreed to “test-market” his product through the church group while he looked for ways to expand and commercialize his operation. The charity sale was a huge success (the best the women had ever experienced), and, based on this success, Morris moved to create his own company. Naming his product “Nature Bros. Old Fashioned Seasoning,” he incorporated the company in 1995 as Nature Bros. Ltd. Morris used most of his savings to develop and register the trademarks, for packaging, and for product displays. He researched the cost of manufacturing and bottling his product in large quantities and concluded that he just didn’t have the cash to get started. His first attempts to raise money, in the form of a personal bank loan, were unsuccessful, and he was forced to abandon the project. For several years, he concentrated on his career, becoming a regional vice president of the insurance company he worked for. He continued to make “Nature Bros. Seasoning” in small batches, mainly for his mother and business associates. These users eventually enabled Morris to get financial support for his company. To raise $65,000 to lease manufacturing equipment and building space, he sold stock to his mother and to two other regional vice presidents of the insurance company. For their contributions, each became the owner of 15 percent of Nature Bros. Ltd. The process of getting the product to the retail market began in August 2002, and the first grocery store sales started in March 2003. The initial marketing plan was fairly simple—to get the product in the hands of the consumer. Morris personally visited the managers of individual supermarkets, both chains and independents, and convinced many to allow a tasting demonstration booth to be set up in their stores. These demonstrations proved as popular as the first Thanksgiving dinner trial nearly 10 years earlier. Dale Morris’s product was a hit, and in a short time, he was able to contract with food brokerage firms to place his product in stores in a 10-state region.

PRESENT SITUATION As indicated in the balance sheet (see Exhibit 1), more capital is needed to support the current markets and expand both markets and products. Two new products are being developed: a salt-free version of the original product and an MSG-based flavor enhancer that will compete with Accent. Morris worked with a business consultant in drawing up a business plan to describe his company, its future growth, and its capital needs. OVERALL PROJECTIONS The first section discusses the objectives and sales projections for 2004 and 2005 (Exhibits 2 and 3). The resulting pro forma income statements for 2004 to 2005 are in Exhibits 4 and 5. 2004

OBJECTIVES The company’s objectives for 2004 are to stabilize its existing markets and to achieve a 5 percent market share in the category of seasoned salt, a 10 percent market share in salt substitutes, and a 5 percent market share in MSG products. Although the original product contains less than 10 percent salt, the company has developed a salt-free product to compete with other such products. The dollar volume for the seasoned salt category in the seven markets the company is in will amount to $7,931,889 in 2004. In 2003, sales of the company in the Oklahoma market were 5.5 percent of the total sales for that market for the eight-month period that the company was operational. Since these sales were accomplished with absolutely no advertising, the company can be even more successful in the future in all seven current markets with a fully developed and funded advertising campaign. The marketing approach will include advertisements in the print media, with ads on “food day” offering cents-off coupons. This program will take place in all seven markets, while stores will continue to use floor displays for demonstrations. Nearly 100 percent warehouse penetration should be achieved in 2004 in these markets. The goal for the category of salt substitutes for 2004 is 10 percent of the market share. This larger market share can be achieved since there are only a few competitors, Mrs. Dash, AMBI Inc. with Cordia Salt Alternative, and RCN with No Salt. The company’s product is superior in all respects and has a retail price advantage of 10 to 20 cents per can. In addition, the company’s product is much more versatile than competitors’ products. Aggressive marketing and advertising will emphasize the tremendous versatility of usage as well as the great taste and health benefits of the product. The informal consumer surveys at demonstrations indicated that consumers prefer Nature Bros. to competitors’ products by a wide margin. A new product, which is already developed, will be added during this time. Called “Enhance,” it too is a dry-mixed, non cooked, low-overhead, high-profit food product. Its category of MSG products has a dollar volume of $1,957,090 in these markets. This category includes only one main competitor, Accent, made by Pet Inc. Accent has not been heavily advertised, and it is a one-line product with little initial name recognition. The company’s new product will have a 10- to 20-cent per can retail price advantage to help achieve a 5 percent share of this category. In summary, 2004 will be spent solidifying the company’s present market positions. 2005

OBJECTIVES The company intends to open eight new markets in 2005 that include Los Angeles, Phoenix, Portland, Sacramento, Salt Lake City, San Francisco, Seattle, and Spokane. These new markets make up 17.1 percent of grocery store sales, according to the Progressive Grocer’s Marketing Guidebook, the industry standard. In the category of seasoned salt, these markets have a dollar volume of $15,218,886 a year. Salt substitutes sell at a volume of $10,064,028, and the MSG category $3,285,528. With proper advertising, the company’s shares forecast in our current markets will also be realized. A 5 percent penetration of the seasoned salt category is a very conservative projection considering the strong health consciousness of the West Coast. The products will be introduced in shippers, used in store demonstrations, and supported with media advertising to achieve at least a 5 percent market share. This would result in sales of $760,943 in that category. A 10 percent penetration is targeted in the salt-free category. Using aggressive marketing, price advantage at retail, and better packaging, the company will be well positioned against the lower-quality products of our competitors. With the dollar volume of this category at $10,064,028, a conservative estimate of our share would be $1,006,420. In the category of MSG, a 5 percent share will be achieved. The main competitor in this category does very little advertising. Again, attractive packaging, aggressive marketing, high quality, and a retail price advantage of 30–40 cents per unit will enable the company to realize a 5 percent market penetration. This share of the West Coast markets will generate sales of $164,276. Total sales of all three products in these eight new markets will be around $1,931,639. The company plans to continue to solidify the markets previously established through the use of coupons, co-op advertising, quality promotions, and word-of-mouth advertising. Market share in these original markets should increase by another 2.5 percent in 2005. The dollar volume of the seasoned salt category in 2005 should be around $9,522,472, and our market share at 7.5 percent would amount to $714,185. The dollar volume for the salt substitute category would be $6,220,748, giving sales at 12.5 percent of $775,593. In the MSG category, a 7.5 percent market share of the $2,055,864 volume would give sales of $154,189. The company’s total sales for the existing markets in 2005 will be in excess of $1,643,967. The totals for 2005 sales of Nature Bros. Old Fashioned Seasoning will be $1,475,128. Nature Bros. Salt-Free volume should be $1,784,013. The sales of Enhance, our MSG product, should be $318,465. This will give us a total sales volume of $3,557,606 for all three products in 2005.

FINANCIAL NEEDS AND PROJECTIONS In this plan, Morris indicated a need for $100,000 equity infusion to expand sales, increase markets, and add new products. The money would be used to secure warehouse stocking space, do cooperative print advertising, give point-of-purchase display allowances, and pay operating expenses.

NEW PRODUCT DEVELOPMENT The company plans to continue an ongoing research and development program to introduce new and winning products. Four products are already developed that will be highly marketable and easily produced. Personnel are dedicated to building a large and profitable company and attracting quality brokers. The next new product targets a different market segment but can be brought online for about $25,000 by using our existing machinery, types of containers, and display pieces. A highly respected broker felt that the product would be a big success. The broker previously represented the only major producer of a similar product, Pet Inc., which had sales of $4.36 million in 1985. The company can achieve at least a 5 percent market share with this product in the first year. The company’s product will be at least equal in quality and offer a 17 percent price advantage to the consumer, while still making an excellent profit. Another new product would require slightly different equipment. This product would be initially produced by a private-label manufacturer. The product would be established before any major machinery was purchased. Many large companies use private-label manufacturers, or co-packers, as they are called in the trade. Consumer tests at demonstrations and food shows have indicated that each of these products will be strong. PLANT AND EQUIPMENT The company’s plant is located in a nearly new metal building in Rose, Oklahoma. The lease on the building limits payments to no more than $300 per month for the next seven years. The new computer-controlled filling equipment will be paid off in two months, and the seaming equipment is leased from the company’s container manufacturer for only $1 per year. The company has the capability of producing about 300,000 units a month with an additional $15,000 investment for an automatic conveyer system and a bigger product mixer. This production level would require two additional plant personnel, working one shift with no overtime. The company could double this production if needed with the addition of another shift. One of the main advantages of the company’s business is the very small overhead required to produce the products. The company can generate enough product to reach sales of approximately $4 million a year while maintaining a production payroll of only $37,000 a year. To meet the previously outlined production goals, the company will need to purchase another filling machine in 2005. This machine will be capable of filling two cans at once with an overall speed of 75 cans per minute, which would increase capacity to 720,000 units a month. A higher-speed seaming machine will also need to be purchased. The filling machine would cost approximately $22,000; a rebuilt seamer would cost $25,000, while a new one would cost $50,000. With the addition of these two machines, the company would have a capacity of 1,020,000 units per month on one shift. By 2006, the company will have to decide whether to continue the lease or buy the property where located and expand the facilities. The property has plenty of land for expansion for the next five years. The company has the flexibility to produce other types of products with the same equipment and can react quickly to changes in customer preferences and modify its production line to meet such demands as needed.

What was the initial ethical dilemma faced by the decision maker in this case?

In 2004, Becton Dickinson, the world’s largest manufac- turer of medical supplies and equipment agreed to pay Retractable, a small innovative company making safety syringes, $100 million dollars for damages it had inflicted on the small manufacturer. The year before, Premier and Novation, two of the largest GPOs (general purchasing organizations that buy supplies for hospitals and clinics), had paid Retractable an undisclosed sum of money for damages they had inflicted on the small company by co- operating with Becton Dickinson. Much more important, and uncompensated, however, were the injuries the three companies were said to have inflicted on countless health workers who had contracted AIDS and other blood-borne diseases because the three companies had blocked Re- tractable from selling its safety syringes to the hospitals, medical clinics, and other health organizations where they worked. To add insult to injury, in 2009, Becton Dickin- son was found by a jury to have copied Retractable’s pat- ented safety syringes and to have sold them to the very organizations whom earlier it had not allowed to have ac- cess to Retractable’s revolutionary safety syringes......

I can't post the whole case as it is too long to post. But you can find the case similar like this on Chegg. Sorry for the inconvenience!

The following data relates to ABC ltd for July 2004. There was no opening stock of finished units

Number of units completed                                              900


Number of units sold                                                          800
Cost incurred:

Direct material                     $2700

Direct labour                       1800

Variable overhead               2500

Fixed overhead                    1500

--------

8 500

Required:

Using both the absorption costing and variable costing methods determine

a) Unit cost of completed production for July

b) Value of closing inventory.

c) Cost of goods sold

A study in the May 4 2004 issue of the Annals of Internal Medicine considered the cost-effectiveness and cost-benefit of screening people with hypertension (blood pressure of 140/90 or higher) for Type 2 Diabetes among people with hypertension. Assume - 5 % of people with hypertension have undiagnosed diabetes. - Early diagnosis of diabetes saves 0.2 years of life per person with previously undiagnosed diabetes. - A year of life is valued at $100,000. - Early diagnosis of diabetes increases health costs (due to treatment of diabetes for a longer period of time) by $10,000 per person with previously undiagnosed diabetes. We consider the costs and benefits of diabetes screening for 10,000 people with hypertension who have not been screened for diabetes. In parts (a) and (b) assume that there are no direct costs for the actual screening tests, the only cost is the indirect cost of receiving more health care, and that the screening detects all cases of undiagnosed diabetes.

(a) Perform a cost-benefit analysis of diabetes screening for this group. Does it favor screening?

(b) What is the cost of screening per life-year saved?

(c) Suppose that the costs of screening each individual are $120. How would this affect your answer from part a? For this cost-benefit analysis, what is the break-even price that would favor screening (At what value would the costs and benefits be equal)?

Excessive executive compensation in the financial services industry ranks high among examples of failed corporate governance. Corporate government at the government-sponsored mortgage giants Fannie Mae and Freddie Mac were particularly weak. The politically appointed board at both enterprises failed to understand the risks of sub-prime loan strategies being employed, did not adequately monitor the decisions of the CEO, did not exercise effective oversight of the accounting principles being employed (which led to inflated earnings), and approved executive compensation systems that allowed management to manipulate earnings to receive lucrative performance bonuses. The audit and compensation committees at Fannie Mae were particularly ineffective in protecting shareholder interest., with the audit committee allowing the company’s financial officers to audit report prepared under their direction and used to determine performance bonuses. Fannie Mae’s audit committee also was aware of management’s use of questionable accounting practices that reduced losses and recorded one-time gains to achieve financial targets linked to bonuses. In addition, the audit committee failed to investigate formal charges of accounting improprieties filed by a manager in the Office of the Controller.

Fannie Mae’s compensation committee was equally ineffective. The committee allowed the company’s CEO, Franklin Raines to select the consultant employed to design the mortgage firm’s executive compensation plan and agreed to a tiered bonus plan that would permit Raines and other senior managers to receive maximum bonus without great difficulty. The compensation plan allowed Raines to earn performance-based bonuses of $52 million and a total compensation of $90 million between 1999 and 2004. Raines was forced to resign in November 2004 when the Office of Federal Housing Enterprise Oversight found that Fannie Mae’s executives had fraudulently inflated earnings to receive bonuses linked to financial performance. Securities and Exchange Commission investigators also found evidence of improper accounting at Fannie Mae and required the company to restate its earnings between 2002 to 2004 by $6.3 billion.

Poor governance at Freddie Mac allowed its CEO and senior management to manipulate its financial data to receive performance-based compensation as well. Freddie Mac’s CEO Richard Syron received 2007 compensation of $19.8 million while the mortgage company’s share price declined from a high of $70 in 2005 to $25 at year end 2007. During Syron’s tenure as CEO, the company became embroiled in a multibillion-dollar accounting scandal, and Syron’s personally disregarded internal reports dating to 2004 that cautioned of an impending financial crisis at the company. Forewarnings within Freddie Mac and by Federal Regulators and outside industry observers proved to be correct, with loan underwriting policies at Freddie Mac and Fannie Mae leading to combined losses at the two firms in 2008 of more than $100 billion. The price of Freddie Mac’s shares had fallen to below $1 by the time of Syron’s resignation in September 2008.

Both organisations were placed into a conservatorship under the direction of the U.S. Government in September 2008 and were provided bailout funds of more than $160 billion by early 2011. The U.S. Federal Housing Finance Agency estimated that the bailout of Fannie Mae and Freddie Mac would potentially reach $200 billion to $300 billion by 2013.

Sources: Chris Isidore, “Fannie, Freddie Bailout: $153 Billion…and counting,” CNNMoney, February 11, 2011;” Adding up the government’s Total Bailout Tab, “ New York Times Online, February 4, 2009; Eric Dash, “Fannie Mae to restate results by $6.3 Billion because of Accounting,” New York Times Online, www.nytimes.com, December 7, 2006; Annys Shin, “Fannie Mae sets executive salaries,” Washington Post, February 9,2006,p.D4; and Scott DeCarlo, Eric Weiss, Mark Jickling, and James R.Cristie, Fannie Mae and Freddie Mac: Scandal in U.S. Housing (Nova Publishers,2006), pp. 266-286.

QUESTION 1

A) Fannie Mae and Freddie Mac are two examples of poor execution of corporate governance in mortgage financial institutions. Identify and discuss the corporate governance issues in this case study.

1.)Coffey's Coffee Shop was organized on January 1, 2005 and was authorized to issue 200,000 shares of $2 par value common stock and 100,000 shares of $100, 6% cumulative preferred stock. The preferred stock is convertible to common at the rate of 1 preferred share to 4 shares of common. The conversion rate is restated for all stock dividends and splits. Coffee had the following stock transactions in 2005:

1/1/2005 - Sold 30,000 shares of common stock at $20 per share.

1/1/2005 - Sold 10,000 shares of preferred stock at $100 per share.

4/1/2005 - Issued at 50 percent stock dividend when the market price is $26 per share.

9/1/2005 - Purchased 4,000 treasury shares at $30 per share.

10/1/2005 - Sold 1,000 of the treasury shares at $32 per share.

11/1/2005 - Sold 2,000 of the treasury shares at $25 per share.

12/1/2005 - Issued a 2-1 for stock split.

12/20/2005 - Declared the required dividend to preferred stock holders and a $.25 per share dividend to common stockholders. Dividends are payable on 12/31/2005.

12/31/2005 - Paid dividends declared on 12/20/2005.

Prepare journal entries to record all of the above business events

2.)

(A) Welson Co. is being sued for illness caused to local residents as a result of negligence on the company's part in permitting the local residents to be exposed to highly toxic chemicals from its plant. Welson's lawyer states that it is probable that Welson will lose the suit and be found liable for a judgment costing Welson anywhere from $400,000 to $2,000,000. However, the lawyer states that the most probable cost is $1,200,000. As a result of the above facts, Welson should accrue and what should be disclosed?

(B) On August 1, 2006, the Frost Company purchased property from Anderson that had a fair value of $399,271. Frost gave Anderson a $500,000 noninterest-bearing note payable in five equal annual installments of $100,000 with the first payment due July 31, 2007. What is the amount of interest expense that should be recognized by Frost in 2007, using the effective interest method?

(C) Pryor Corporation issued a 2-for-1 stock split of its common stock which had a par value of $10 before and after the split. At what amount should retained earnings be capitalized for the additional shares issued?

(D) On January 2, 2004, a calendar-year corporation sold 8% bonds with a face value of $1,500,000. These bonds mature in five years, and interest is paid semiannually on June 30 and December 31. The bonds were sold for $1,384,000 to yield 10%. Using the effective interest method of computing interest, how much should be charged to interest expense in 2004?

(E) On its December 31, 2002, balance sheet, the Forge Corporation reported the following as investments in marketable equity securities which are classified as available for sale: Investment in marketable equity securities at cost $500,000 Less: valuation allowance 40,000 $460,000 At December 31, 2003, the market valuation of the portfolio was $490,000. What should Forge include in net income for 2003 as a result of the change in the market value of its investments?

(F) On February 10, 2005, after issuance of its financial statements for 2004, Goll Company entered into a financing agreement with Lebo Bank, allowing Goll Company to borrow up to $4,000,000 at any time through 2009. Amounts borrowed under the agreement bear interest at 2% above the bank's prime interest rate and mature two years from the date of loan. Goll Company presently has $1,500,000 of notes payable with First National Bank maturing March 15, 2005. The company intends to borrow $2,500,000 under the agreement with Lebo and liquidate the notes payable to First National. The agreement with Lebo also requires Goll to maintain a working capital level of $6,000,000 and prohibits the payment of dividends on common stock without prior approval by Lebo Bank. From the above information only, the total short-term debt of Goll Company as of the December 31, 2004 balance sheet date is __________________.

Give your view on this statement: “The absence of public assistance had forced the people of Europe to establish various types of self-help organization“ (Zeuli & Cropp, 2004, page 6). How can cooperatives play a role in the current economic crisis?