You are the Chief Operations Officer responsible for overall company operations in ATCHULO
Company Ltd, a large courier company in Ghana. Your company has 16 regional offices
(terminals) scattered around the country in each of the regional capitals and a main office (hub)
located in the capital city of the country. Your operations are strictly domestic. You do not accept
international shipments.
The day at each terminal begins with the arrival of packages from the hub. The packages are loaded
onto trucks for delivery to customers during morning hours. In the afternoon, the same trucks pick
up packages that are returned to the terminal in late afternoon and then shipped to the hub where
shipments arrive from the terminals into the late evening and are sorted for delivery early the next
day for the terminals.
Each terminal in your company is treated as an investment centre and prepares individual income
statements each month. Each terminal receives 30% of the revenue from packages that it picks up
and 30% of the revenue from the packages it delivers. The remaining 40% of the revenue from
each transaction goes to the hub. Each terminal accumulates its own costs. All costs relating to
travel to and from the hub are charged to the hub. The revenue per package is based on size and
service type and not the distance the package travels. (There are two services: overnight and ground
delivery, which takes between 1 and 7 days, depending on the distance traveled).
All customer service is done through a central service group located in the hub. Customers access
this service centre through a toll-free telephone number. The most common calls to customer
service include requests for package pickup, requests to trace an overdue package, and requests
for billing information. The company has invested in complex and expensive package tracking
equipment that monitors the package’s trip through the system by scanning the bar code placed on
every package. The bar code is scanned when the package is picked up, enters the originating
terminal, leaves the originating terminal, arrives at the hub, leaves the hub, arrives at the
destination terminal, and is delivered to the customers. All scanning is done with hand held wands
that transmit the information to the regional and then central computer.
The major staff functions in each terminal are administrative (accounting, clerical, and executive),
marketing (the sales staff), courier (the people who pick up and deliver the shipments and the
equipment they use), and operations (the people and equipment who sort packages in the terminal).
This organisation takes customer service very seriously. The revenue for any package that fails to
meet the organisation’s service commitment to the customer is not assigned to the originating and
destination terminals.
All company employees receive a wage and a bonus based on the terminal’s economic value added.
This system has promoted many debates about the sharing rules for revenues, the inherent inequity
of the existing system, and the appropriateness of the revenue share for the hub. Service problems
have arisen primarily relating to overdue packages. The terminals believe that most of the service
problems relate to wrong sorting in the hub, resulting in packages being sent to the wrong
terminals.
Required:
A) Explain why an investment centre is or not an appropriate organisational design in
ATCHULO Company Ltd.
B) Assuming that ATCHULO Company Ltd is committed to the current design, how would
you improve it?
C) Assuming that ATCHULO Company Ltd has decided that the investment centre model is
unacceptable, what model to performance evaluation would you recommend and why?

You are the Chief Operations Officer responsible for overall company operations in ATCHULO
Company Ltd, a large courier company in Ghana. Your company has 16 regional offices
(terminals) scattered around the country in each of the regional capitals and the main office (hub)
located in the capital city of the country. Your operations are strictly domestic. You do not accept
international shipments.
The day at each terminal begins with the arrival of packages from the hub. The packages are loaded
onto trucks for delivery to customers during morning hours. In the afternoon, the same trucks pick
up packages that are returned to the terminal in the late afternoon and then shipped to the hub where
shipments arrive from the terminals into the late evening and are sorted for delivery early the next
day for the terminals.

Each terminal in your company is treated as an investment centre and prepares individual income
statements each month. Each terminal receives 30% of the revenue from packages that it picks up
and 30% of the revenue from the packages it delivers. The remaining 40% of the revenue from
each transaction goes to the hub. Each terminal accumulates its own costs. All costs relating to
travel to and from the hub are charged to the hub. The revenue per package is based on size and
service type and not the distance the package travels. (There are two services: overnight and ground
delivery, which takes between 1 and 7 days, depending on the distance travelled).
All customer service is done through a central service group located in the hub. Customers access
this service centre through a toll-free telephone number. The most common calls to customer
service include requests for package pickup, requests to trace an overdue package, and requests
for billing information. The company has invested in complex and expensive package tracking
equipment that monitors the package’s trip through the system by scanning the bar code placed on
every package. The bar code is scanned when the package is picked up, enters the originating
terminal, leaves the originating terminal, arrives at the hub, leaves the hub, arrives at the
destination terminal, and is delivered to the customers. All scanning is done with handheld wands
that transmit the information to the regional and then the central computer.
The major staff functions in each terminal are administrative (accounting, clerical, and executive),
marketing (the sales staff), courier (the people who pick up and deliver the shipments and the
the equipment they use), and operations (the people and equipment who sort packages in the terminal).
This organisation takes customer service very seriously. The revenue for any package that fails to
meet the organisation’s service commitment to the customer is not assigned to the originating and
destination terminals.
All company employees receive a wage and a bonus based on the terminal’s economic value-added.
This system has promoted many debates about the sharing rules for revenues, the inherent inequity
of the existing system, and the appropriateness of the revenue share for the hub. Service problems
have arisen primarily relating to overdue packages. The terminals believe that most of the service
problems relate to wrong sorting in the hub, resulting in packages being sent to the wrong
terminals.
Required:
A) Explain why an investment centre is or not an appropriate organisational design in
ATCHULO Company Ltd.
B) Assuming that ATCHULO Company Ltd is committed to the current design, how would
you improve it?
C) Assuming that ATCHULO Company Ltd has decided that the investment centre model is
unacceptable, what model to performance evaluation would you recommend and why?

At the beginning of the current season on April 1, the ledger of Kokott Pro Shop showed Cash $3,800; Inventory $4,300; and Common Stock $8,100. These transactions occurred during April 2017.

The chart of accounts for the pro shop includes Cash, Accounts Receivable, Inventory, Accounts Payable, Common Stock, Sales Revenue, Sales Returns and Allowances, Purchases, Purchase Returns and Allowances, Purchase Discounts, and Freight-In.

Step 1: Journalize the April transactions using a periodic inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Record journal entries in the order presented in the problem.)

Step 2: Using T-accounts, enter the beginning balances in the ledger accounts and post the April transactions. (Post entries in the order of journal entries presented in the previous question.)

Step 3: Prepare a trial balance on April 30, 2017.

Step 4: Prepare an income statement through gross profit, assuming merchandise inventory on hand at April 30 is $5,469.

GetMyFood, Inc. has developed an application for cell phones aimed toward consumers who live in more rural areas where there are few delivery options for take-out food.   The app connects local taxi drivers with the larger restaurant food delivery services in nearby areas to extend the range of home meal delivery service.

The company expects to generate revenues of $2000 (figures in thousands) in the first year (2020) with a general costs of services sold of $1200 (figures in thousands.) The company expects to see a sharp increase in the revenues earned after the first year as the new service gains recognition but believes that the life-cycle of the product will be relatively short as market research has shown that the business model will be most successful in areas that are more rural but still relatively close to larger population centers. Given the general demographic trend in population growth, the company believes that their target market will diminish over time as more standard delivery services become available.  

The company estimates the following growth rate for revenue, costs, and SG&A over the next five years:

The have also forecasted the following items for working capital:

Taxes are assumed to be 34% per year. The initial outlay for software development is estimated to be $1000.

You have been hired as a financial consultant to determine the estimated free cash flows to the firm for GetMyFood, Inc.

This is urgent Please !

• During the 2005 gubernatorial administration, significant reductions in funding
  were made to the “municipal revenue sharing program” that provides aid to local governments. Some cutbacks were lessened by Legislative action, but it tended to be a difficult battle to restore funding to this program.
• Your response will be written as an opinion editorial to a newspaper.
• In your own words, define the term “fiscal disparity.”
• explain why fiscal disparities occur initially and how changes in fiscal circumstances are affected by location choices of households. Describe how service production conditions may increase fiscal disparities.
• Finally, describe why intergovernmental aid is an important tool for mitigating disparities in revenue capacity and helping to balance spending pressures and financing ability.
• Your response must demonstrate knowledge of the fiscal environment including service and production characteristics.

Please explain why the correct answer is correct

In 2005, 5.9% of people used marijuana.

This year, a company wishes to use their employment drug screening to test a claim. They take a simple random sample of 2488 job applicants and find that 120 individuals fail the drug test for marijuana. They want to test the claim that the proportion of the population failing the test is lower than 5.9%. Use .05 for the significance level. Round to three decimal places where appropriate.

Hypotheses:

Ho:p=5.9%Ho:p=5.9%

H1:p<5.9%H1:p<5.9%

Test Statistic: z =

Critical Value: z =

p-value:

Conclusion About the Null:

• Reject the null hypothesis
• Fail to reject the null hypothesis

Conclusion About the Claim:

• There is sufficient evidence to support the claim that the proportion of the population failing the test is lower than 5.9%
• There is NOT sufficient evidence to support the claim that the proportion of the population failing the test is lower than 5.9%
• There is sufficient evidence to warrant rejection of the claim that the proportion of the population failing the test is lower than 5.9%
• There is NOT sufficient evidence to warrant rejection of the claim that the proportion of the population failing the test is lower than 5.9%

Do the results of this hypothesis test suggest that fewer people use marijuana? Why or why not?

Mark Sexton and Todd Story, the owners of S&S Air, have decided to expand their operations. They instructed their newly hired financial analyst, Chris Guthrie, to enlist an underwriter to help sell $20 million in new 10-year bonds to finance construction. Chris has entered into discussions with Renata Harper, an underwriter from the firm of Crowe & Mallard, about which bond features S&S Air should consider and what coupon rate the issue will likely have.

Although Chris is aware of the bond features, he is uncertain as to the costs and benefits of some features, so he isn't clear on how each feature would affect the coupon rate of the bond issue.

You are Renata's assistant, and she has asked you to prepare a memo to Chris describing the effect of each of the following bond features on the coupon rate of the bond. She would also like you to list any advantages or disadvantages of each feature.

a. The security of the bond—that is, whether the bond has collateral.

b. The seniority of the bond.

c. The presence of a sinking fund.

d. A call provision with specified call dates and call prices.

e. A deferred call accompanying the preceding call provision.

f. A conversion feature (note that S&S Air is not a publicly traded company).

g. A floating rate coupon.

Mandaue Foam (MF) is a leading company in the furniture and fixture industry in the country. It has obtained substantial loans from finance companies and commercial banks. The interest rate on the loans is tied to market interest rates and is adjusted every six (6) months. MF has a credit line with a bank in case it suddenly needs to obtain funds for a temporary period. It previously purchased Treasury securities that it could sell if it experiences any liquidity problems. If the economy continues to be strong, MF may need to increase its production capacity by about 50% over the next few years to satisfy demand. It is concerned about a possible slowing of the economy because of the potential actions of Bangko Sentral ng Pilipinas (BSP) to reduce inflation. It needs funding to cover payments for supplies. It is also considering issuing stock or bonds to raise funds in the next year. The prevailing commercial paper rate on paper issued by large publicly traded firms is lower than the rate MF would pay when using a line of credit.

Questions:

1. Do you think that MF could issue commercial paper at the prevailing market rate?
2. Should MF obtain funds to cover payments for supplies by selling its holdings of Treasury securities or by using its credit line? Which alternative has a lower cost? Explain.

Give the reference please. Thanks.