The DeVille Company reported pretax accounting income on its income statement as follows:

   
Included in the income of 2018 was an installment sale of property in the amount of $62,000. However, for tax purposes, DeVille reported the income in the year cash was collected. Cash collected on the installment sale was $24,800 in 2019, $31,000 in 2020, and $6,200 in 2021.

Included in the 2020 income was $26,000 interest from investments in municipal bonds.

The enacted tax rate for 2018 and 2019 was 30%, but during 2019 new tax legislation was passed reducing the tax rate to 25% for the years 2020 and beyond.

Required:
Prepare the year-end journal entries to record income taxes for the years 2018, 2019,  2020 , 2021.

Business Analytics -MBA

What is machine learning? How does it differ from statistically learning? Give an example of each.

Are both still relevant and important when making business decisions? Explain your answer.

Write your responses in detail with EXAMPLES. Be sure to identify the source of your example in your posting. Your initial post should be of minimum of 300 words.

Business Analytics -MBA What is machine learning? How does it differ from statistically learning? Give an example of each. Are both still relevant and important when making business decisions? Explain your answer. Write your responses in detail with EXAMPLES. Be sure to identify the source of your example in your posting. Your initial post should be of minimum of 300 words.

You are a senior auditor of the accounting firm QTP Partners. Your audit team is currently planning the 2018 audit of GreenHome Limited, a medium sized listed company that manufactures and sells household appliances such as televisions, refrigerators and washing machines. The company has many stores in shopping centres across Australia. This is the second year your accounting firm is engaged to perform the audit for this client. The financial year under audit ends on 30th June 2019. Past audit work and initial inquiries this year have revealed the following information.

GreenHome Ltd (hereafter referred to as “the company” or “the audit client”) had several years of stable profit growth because it focused on manufacturing energy saving appliances. The manufacturing costs and selling prices of such products are higher than those of traditional products sold by competitors. However, as consumers have become more conscious of environmental issues, there is a niche market for your audit client’s products. However, since February 2018, your audit client’s main competitor, BetterLiving Limited, which is substantially larger in size than GreenHome, gradually introduced a new range of energy saving appliances that are similar to your audit client’s products. Although the competitor’s products are still inferior to your audit client’s products in terms of energy efficiency, the competitor is able to sell its products at lower prices due to economy of scale. This development has had an obvious impact on the audit client’s sales, which declined by 20% in the previous financial year.

In response to BetterLiving Ltd’s new products, the CEO of GreenHome launched an intensive advertising campaign throughout the 2018 financial year to emphasise that GreenHome’s products are both more energy efficient and more durable. A substantial amount of money was spent on the advertising campaign. When the advertising campaign was proposed to the board of directors in July 2018, one of the directors asked the CEO whether the company has any scientific evidence to show that its products are more durable than the competitor’s products. The CEO said no formal study was conducted but the company’s product designers and the staff in the manufacturing department both think the company’s products are of better quality than the competitor’s. The directors were not given any written report of such opinions.

In August 2018, The CEO obtained the directors’ permission to invest a lot of money into new product development because the CEO argued that the company needs to develop better products to maintain its competitive advantage. The CEO also reported to the directors that the depreciation of the Australian dollar keeps increasing the costs of raw materials and components imported from overseas. As the competitor is selling similar products at lower prices, the CEO believes it is not feasible to increase selling prices. Instead, in September 2018, the CEO asked the manufacturing department to switch to cheaper but lower quality raw materials and components. When the directors questioned whether this change will make the products less durable and thus render the key message of the company’s advertising campaign (that the company has more durable products) misleading, the CEO said the company’s products are still of good quality. The CEO also said selling slightly less durable products can help improve long- term sales because customers need to replace the products more frequently.

To help fund increasing operating costs including advertising and research and development costs, the audit client took out a $5 million bank loan in August 2018 to be repaid after 3 years. One of the conditions in the debt contract requires the audit client’s return on assets ratio (calculated as net profit divided by total assets) to be above 7% for the duration of the loan.

In May 2018, the board of directors approved a new remuneration (pay) package for the CEO for the 2018 financial year to motivate the CEO to lead the company out of its difficulties. Based on the new package, about 20% of the CEO’s remuneration would be paid with the company’s shares, and a special cash bonus will be paid if the company returns to positive profit growth for the 2019 financial year. The CEO believes it is important that all employees of the company should be aware of the company’s situation so the CEO e-mailed all employees in November 2018 to encourage them to help improve revenues and cut costs as better profit performance will reduce the necessity of staff cuts.

The audit client’s accounting department is separate from other operating departments. Only the accounting staff has access to the accounting system. The CEO does not have direct access to the accounting records. The CEO needs to consult with the chief accountant about any proposed changes to the accounting records. If the chief accountant agrees that an adjustment is appropriate, the chief accountant would then make the change in the computer system.

The computer systems for sales, inventory management and accounting are integrated.
However, access to different systems is restricted to authorised staff via individual passwords so that only sales staff has access to the sales computer system, and only accounting staff has access to the accounting system, etc.

When customers make an order in store, sales staff enters the details for a sales invoice into the sales computer system. The sales system then sends the details of the sales invoice to the inventory management system. The warehouse staff uses this information to prepare delivery documents. Customers are required to sign a paper copy of the delivery document upon receipt of the appliances they ordered. Sales invoices and delivery documents are serially numbered. The original copy of the customer-signed delivery document is then sent to the accounting department while the warehouse staff keeps a duplicate copy of the document. At the end of each day, the warehouse manager gives authorisation in the inventory management system to process sales transactions for which delivery has been made. The system then updates the perpetual inventory records, and sends the sales transactions to the accounting system. The accounting staff checks the sales invoices in the accounting system against the signed delivery documents before giving authorisation for the accounting system to record the sales in the accounting records. The accounting staff is required to regularly check recent sales transactions to see whether there are duplicate or missing sales invoice numbers, and whether each sales transaction has both a sales invoice number and a delivery document number.

The audit client usually offers 1-year free warranty for most of its products. The rate of faulty products used to be quite stable between the financial years 2014 to 2017. In July 2018, to improve sales after the competitor introduced new products, the audit client’s CEO changed the warranty policy and started offering 2-year free warranty for products worth more than $500.

When warranty costs are incurred, the accounting staff checks the reasonableness of the cost for the type of technical problem reported against an official list of common technical faults and related costs. The company uses the provision method to record warranty expenses.

The audit client prepares monthly reports to show actual warranty costs for different types of products. Quarterly meetings are held to discuss the reasonableness of these costs and whether product design should be changed to reduce the rate of faulty products. These meetings are attended by senior managers from departments such as manufacturing, sales, accounting, research and development, and technical support and maintenance departments. Records of these meetings are sent to the CEO for review. The reports in the last few months of the financial year show that after the company started using lower quality materials and components to manufacture its products, the rate of faulty products and the costs of repair/refund have both increased.

At the end of the financial year, the CEO and the chief accountant meet to discuss major accounting issues such as appropriate accounting estimates to be reported in current year financial statements. Data such as the monthly warranty costs reports are used for such decisions. Discussions in these meetings are documented by a secretary. The chief accountant told the auditor that the accounting estimate for warranty expense takes into consideration other information such as sales volume for different products in the current year and the frequency of faults reported for different products.

The CEO and the chief accountant have worked together for the company over the last five years. They have been friends for many years before they started working for this company. Both of them have friendly and charismatic personalities and can be very persuasive. They usually get on well with the board of directors and the auditors. The audit client’s board of directors consists of a majority of independent directors. The independent directors attended most of the board meetings.

Extracts of the audit client’s financial ratios for the last few years are provided below.

Sales growth is calculated as the difference between current period sales and prior period sales divided by prior period sales, i.e. (Sales t – Sales t-1) / Sales t-1.

Profit growth is calculated as the difference between current period profit and prior period profit divided by prior period profit, i.e. (Profit t – Profit t-1) / Profit t-1.

Return on assets ratio = Net profit divided by total assets. Warranty expense is an accounting estimate.

Required

For the (A) occurrence general audit objective of the sales revenue account, and (B) thevaluation assertion (i.e., the accuracy general audit objective) of the provision for warranty account, answer all of the following questions in accordance with the Australian Auditing Standards. You need to perform your analysis using the facts in the case study.

For each of the two audit objectives of the accounts specified above:

1. (2) Assess control risk for each of the general audit objectives of the accounts given above. In your answer, identify existing internal controls that are relevant to the specified general audit objectives, and briefly explain how each internal control can prevent/detect misstatements for the specified general audit objectives for sales and provision for warranty.

MBA_Salary table contains the annual salaries, in thousands of dollars, earned by individuals who graduated with MBAs in 2015 and 2016 from a certain business school in Canada. We would like to determine whether the distribution of salaries for 2015 MBA graduates is higher than for 2016 MBA graduates. a) Create a boxplot and compare the distribution of salaries for 2015 and 2016 graduates. b) Perform the appropriate non-parametric test at a 5% significance level to determine whether the salary for 2015 graduates is higher than for 2016 graduates. State the hypotheses clearly and show your manual calculation for all the relevant steps in the test. c) Use Excel to perform the appropriate non-parametric test in part (b). How does the result from Excel compare with your conclusion in part (b).

I have an interview with Company IHS Markit for the position CIP Intern - Project Management for the Indices-Fixed Income group

1.Why do you want to work for our organization?

2. Why should we consider you for this internship?

3. What do you know about our company?

Job Posting:

https://www.linkedin.com/jobs/view/cip-intern-product-management-indicies-at-markit-532927374

Your company’s current pay structure was developed using the point-factor method in conjunction with market review data. Following the lead of other companies in the industry, however, your CEO proposes that she would like to overhaul the current pay structure by using market pricing exclusively. Recall from this chapter that market pricing refers to the process of basing a pay structure (almost) entirely off of competitors’ pay practices. The CEO declares that the overhauled pay structure will do a better job at attracting and retaining top talent, as pay will match or exceed that of competitors.

You are the vice president of HR at the company, and the CEO values your opinion on HR-related topics and issues. The CEO has asked you to evaluate her proposal and provide her with feedback.

Should the organization overhaul the current pay structure using market pricing? Evaluate this decision using the following criteria.

Please provide the rationale for your answer to each of the questions below.

Is market pricing legal, ethical, and fair?

Is it evidence based/evidence informed?

Does it foster healthy employee–employer relationships?

Is it time and cost effective?

Does it take a systematic stakeholder perspective?

Considering your analysis above, overall, do you think this would be an effective decision? Why or why not?

What, if anything, do you think should be done differently or considered to help make this decision more effective?

1. In 2020, Dr. Chen’s daughter is 7-year old, and Dr. Chen is planning for his daughter’s college fund. He expects his daughter to start her college education at the age of 18, which is 11 years from now. The expected cost of tuition only for a 4-year college education in 2032 is $94,800 at a public, in-state university. The college fund is invested to gain investment returns. Dr. Chen is considering two investment options. The first is a mutual fund that is expected to provide an annual return of 7%. The second is a bank deposit account that offers an annual return of 3%. Dr. Chen decides to put a fixed amount of money every month into the college fund starting from January 2020 to January 2032 (12 months × 11 years). The interest is monthly compounded.

1. Between mutual fund and bank deposit, which investment option is the better one if maximizing the interests is the priority, and why? If Dr. Chen prefers an investment with less risk, which one should he choose?
2. With the better investment option, if Dr. Chen starts saving in January 2020, how much money does he need to put in every month to fully cover his daughter’s college tuition if he wants the account fully funded when she turns 18? (Hint: There are 11 full years left for Dr. Chen to save for his daughter. We assume Dr. Chen’s daughter will do a four-year college with a fixed annual tuition of $94,800 per year.)

In 2020, Pina Ltd., which follows IFRS, reported accounting income of $1,178,000 and the 2020 tax rate was 20%. Pina had two timing differences for tax purposes:

CCA on the company’s tax return was $476,500. Depreciation expense on the financial statements was $283,000. These amounts relate to assets that were acquired on January 1, 2020, for $1,906,000.

Accrued warranty expense for financial statement purposes was $138,100 (accrued expenses are not deductible for tax purposes). This is the first year Pina offers warranties.

Both of these timing differences will fully reverse over the next four years, as follows:

Prepare the journal entries to record income taxes for 2020

In 2021 the government announced a further tax rate reduction will be effective for the 2024 taxation year. The new rate will be 15%. Prepare the journal entry to adjust deferred taxes for the reduced rate.

Good afternoon interns,

As you all know, you are all vying for the 15 openings to be offered at the end of the internship. Another chance has come up for you to show us that you deserve one of those positions here at Firmament Financials Inc. New clients, Mr. and Mrs. Perez are planning on starting a family and would like to start saving for their child’s college education. The want to know what they can afford when their child is ready for college. They would like to utilize our Yearly College Savings Plan which grows a yearly deposit at an APR of 15% with continuous compounding. Your job is to analyze their information and come up with feasible recommendations. Their information can be found in the email they sent. Of course, you will be graded on your analysis. A grading rubric has been provided.

Good luck interns!

Dear Ms. Robles,

As satisfied customers of Firmament Financial, we of course look to you to help us save for our upcoming child’s college education. We feel that we can afford $100 per month for the 18 years until college in your College Savings Plan. We have a list of universities that we have researched with the approximate cost per year for each. Which if any of the university options will we be able to afford for our child? We would prefer to send them to an elite private university if we can afford it.

Anthony & Veronica Perez