Apple Case- Segregation of  Duties-Chapter 5 Extra Credit

Apple sells all products on 30 day trade credit. Ernst & Young CPAs is performing an audit of Apple and is becoming familiar with the department documents of the beverage wholesaler. Ernst & Young CPAs is hoping that they can reduce control risk to a minimum level but only if control activities are found which include segregation of duties and safeguarding of assets. For each numbered item choose which department within the organization is likely to perform each task for proper internal control. Choose only 1 department. If the department is not listed, choose “None Of The Above”.

List 1

Billing-Revenue Cycle

Sale-Revenue Cycle

Credit-Revenue Cycle

Shipping-Revenue Cycle

Receiving-Expenditures Cycle-unless Returns

Warehouse-Expenditues and Revenue Cycles

Vouchers Payable-Expenditures Cycle

Accounts Receivable-Revenue Cycle

Cash Disbursements-Expenditures Cycle

Human Resources

Payroll

None Of The Above

1. In the Revenue Cycle, the department that should not be allowed to authorize a bad debt write-off once permission is granted.      __________________________ department
2. In the Payroll Cycle, the department that maintains hiring date, department, salary, and position.  _______________________department
3. In the Revenue Cycle, the department that should approve the sales order before the goods are shipped to the customer.  ___________________________ department
4. In the Expenditure Cycle, the department that should approve the voucher and record payment to the vendor after the payment is made but should not be allowed to mail the check. ____________________________ department
5. In the Revenue Cycle, the department that should prepare the sales invoice is the _________________ department
6. In the Expenditures Cycle, the department that should receive a “blind copy” of the purchase order (has item ordered information but not quantities ordered) and prepare a document indicating what goods arrived from the vendor_____________________________ department
7. In the Payroll Cycle, what department should approve hours worked including overtime hours. __________________________
8. In the Payroll Cycle, the department that should handout payroll checks to employees that do not receive direct deposit. _________________________________
9. In the Revenue Cycle, the department that should only be allowed to move goods within the company and not send goods outside to the customer. ______________________________
10. In the Expenditure Cycle, the department that should match up the purchase order and receiving report. _________________________________

Apple Case- Segregation of Duties

Apple sells all products on 30 day trade credit. Ernst & Young CPAs is performing an audit of Apple and is becoming familiar with the department documents of the beverage wholesaler. Ernst & Young CPAs is hoping that they can reduce control risk to a minimum level but only if control activities are found which include segregation of duties and safeguarding of assets. For each numbered item choose which department within the organization is likely to perform each task for proper internal control. Choose only 1 department. If the department is not listed, choose “None Of The Above”.

List 1

Billing-Revenue Cycle

Sale-Revenue Cycle

Credit-Revenue Cycle

Shipping-Revenue Cycle

Receiving-Expenditures Cycle-unless Returns

Warehouse-Expenditues and Revenue Cycles

Vouchers Payable-Expenditures Cycle

Accounts Receivable-Revenue Cycle

Cash Disbursements-Expenditures Cycle

Human Resources

Payroll

None Of The Above

1. In the Revenue Cycle, the department that should not be allowed to authorize a bad debt write-off once permission is granted.      __________________________ department
2. In the Payroll Cycle, the department that maintains hiring date, department, salary, and position. _______________________department
3. In the Revenue Cycle, the department that should approve the sales order before the goods are shipped to the customer. ___________________________ department
4. In the Expenditure Cycle, the department that should approve the voucher and record payment to the vendor after the payment is made but should not be allowed to mail the check. ____________________________ department
5. In the Revenue Cycle, the department that should prepare the sales invoice is the _________________ department
6. In the Expenditures Cycle, the department that should receive a “blind copy” of the purchase order (has item ordered information but not quantities ordered) and prepare a document indicating what goods arrived from the vendor_____________________________ department
7. In the Payroll Cycle, what department should approve hours worked including overtime hours. __________________________
8. In the Payroll Cycle, the department that should handout payroll checks to employees that do not receive direct deposit. _________________________________
9. In the Revenue Cycle, the department that should only be allowed to move goods within the company and not send goods outside to the customer. ______________________________
10. In the Expenditure Cycle, the department that should match up the purchase order and receiving report. _________________________________

Fair Value Hedge: Short in Commodity Futures

American Italian Pasta Company (AIPC) manufactures several varieties of pasta. On January 1, 2020, AIPC had excess commodity inventories carried at acquisition cost of $1,000,000. These commodities could be sold or manufactured into pasta later in the year. To hedge against possible declines in the value of its commodities inventory, on January 6 AIPC sold commodity futures, obligating the company to deliver the commodities in February for $1,100,000. The futures exchange requires a $20,000 margin deposit. On February 19, the futures price increased to $1,150,000 and the company closed out its futures contract. Spot prices continued to rise and AIPC sold its inventory for $1,175,000 in cash on March 2.

Required

a. Prepare the journal entries related to AIPC’s futures contract and sale of commodities inventory. Assume a perpetual inventory system, that spot and futures prices move in tandem, and the futures position qualifies for hedge accounting. All income effects for the inventories and related hedges are reported in cost of goods sold.

b. By how much would AIPC’s profit increase if the hedge was not undertaken?

$Answer

1. What do demand and marginal revenue curves look like in monopolistic competition? How do they compare to the demand and marginal revenue curves in perfect competition and monopoly?

For the Simon Property group:

Discuss how the firm’s demand is changing. Why? What factors affecting consumer choice and demand shifters are responsible for the change? How do changes in demand affect company’s revenue (support with the revenue figures). Sketch changes in firm’s demand and revenue using demand graphs.

what more detail do you need can you explain so more please

1) Which of the following is NOT true for monopoly? A) The profit maximizing output is the one at which marginal revenue and marginal cost are equal. B) Average revenue equals price. C) The profit maximizing output is the one at which the difference between total revenue and total cost is largest. D) The monopolist's demand curve is the same as the market demand curve. E) At the profit maximizing output, price equals marginal cost

Data from 2010 & 2011, in millions (source: Billboard Magazine):

Company            Annual Revenue Market Valuation

Spotify                145 3,000

Warner Music     2,888                   3,300

Live Nation         5,600                   1,700

Pandora 241 1,300

EMI                    1,800                   1,900

3a) Find the correlation between annual revenue and market valuation. Is it statistically significant?

3b) Why is the correlation between revenue and market valuation so low?.

Problem 10-16 (Some Useful Excel Functions for Modeling)

The Camera Shop sells two popular models of digital SLR cameras (Camera A Price: 200, Camera B Price: 300). The sales of these products are not independent of each other, but rather if the price of one increase, the sales of the other will increase. In economics, these two camera models are called substitutable products. The store wishes to establish a pricing policy to maximize revenue from these products. A study of price and sales data shows the following relationships between the quantity sold (N) and prices (P) of each model:

   N_A = 195 - 0.6P_A + 0.25P_B

   N_B = 301 + 0.08P_A - 0.5P_B

A. Construct a model for the total revenue and implement it on a spreadsheet. What is the total revenue from selling the two products based on the current prices?
$ ___________________________

Assume that product A price is kept at $200. Develop a data table to estimate the optimal price for product B in order to maximize the total revenue. Vary the price of product B from $250 to $500 in increments of $10.

B. Max revenue occurs at Camera B price of $ . $___________________________________________

C. The maximum revenue obtained with the above price of Camera B would be $ . $________________________