Case scenario: Which Form Is Best?
Watoma Kinsey and her daughter Katrina are about to launch a
business that specializes in children’s parties. Their target
audience is upscale families who want to throw unique, memorable
parties to celebrate special occasions for their children between
the ages of 5 and 15. The Kinseys have leased a large building and
have renovated it to include many features designed to appeal to
kids, include many features designed to appeal to kids, including
special gym equipment, a skating rink, an obstacle course, a mockup
of a pirate ship, a ball crawl, and even a moveable haunted house.
They can offer simple birthday parties (cake and ice cream
included) or special theme parties as elaborate as the customer
wants. Their company will provide magicians, clowns, comedians,
jugglers, tumblers and a variety of other entertainers.
Watoma and Katrina each have invested $45,000 to get the business ready to launch. Based on the quality of their business plan and their preparation, the Kinseys have negotiated a $40,000 bank loan. Because they both have families and own their own homes, the Kinseys want to minimise their exposure to potential legal and financial problems. A significant portion of their start-up costs went to purchase a liability insurance policy to cover the Kinsey in case a child is injured at a party. If their business plan is accurate, the Kinseys will earn a small profit in their first year (about $1,500), and a more attractive profit of $16,000 in their second year of operation. Within five years, they expect their company to generate as much as 50,000 in profits. The Kinseys have agreed to split the profits and the workload equally.
If the business is as successful as they think it will be, the Kinseys eventually want to franchise their company. That, however, is part of their long range plan. For now, they want to perfect their business system and prove that it can be profitable before they try to duplicate it in the form of franchises. As they move closer to the launch date for their business, the Kinseys are reviewing the different forms of ownership. They know that their decision has long term implications for themselves and for their business, but they aren’t sure which form of ownership is best for them.
Answer all questions.
1. Which form(s) of ownership would you recommend to the Kinseys?
Explain.
2. Which form(s) of ownership would you recommend the Kinsyes
avoid? Explain.
3. Examine the factors that the Kinsyes should consider as they
evaluate the various forms of ownership.
Please write all your answers in essay format. Do not answer in point-form unless the questions mention “List” or “State”. It is not necessary to precede each answer with an introduction and end with a summary. Proceed directly with the answer
In: Operations Management
Esther Jackson is a 56-year-old black female who is 1-day post-op following a left radical mastectomy. During morning rounds, the off-going nurse shares with you during bedside report that the patient has been experiencing increased discomfort in her back throughout the night and has required frequent help with repositioning. She states that the patient was medicated for pain approximately 2 hours ago but is voicing little relief and states that you might want to mention that to the doctor when he rounds later this morning. With the patient appearing to be in no visible distress, you proceed on to the next patient's room for report. Approximately 1 hour later, you return to Ms. Jackson's room with her morning pills and find her slumped over the bedside stand in tears. The patient states, "I don't know what is wrong, I don't feel right. My back hurts and I'm just so tired. What is wrong with me?" The patient refuses to take her medications at this time stating that she is starting to feel sick to her stomach. Just then the nursing assistant comes into the patient's room to record Ms. Jackson's vital signs, you take this opportunity to quickly research the patient's medication record to determine if she has a medication ordered for nausea. Upon return, the nursing assistant hands you the following vital signs: T 37, R 18, and BP 132/54, but states she couldn't get the patient's pulse because "it is all over the place."
PLEASE address the following questions related to the scenario.
PLEASE DO NOT COPY AND PASTE!
1. What do you suspect is the cause of the patient's symptoms?
2. Describe the course of action that you will take to confirm this suspicion and prevent further decline.
3. What further assessments, lab values, and tests will likely be ordered for this patient and how often? If testing is to be completed more than once, please explain the rationale for doing so.
4. While you are caring for this patient, how will you ensure that the needs of your other patients are being met?
In: Nursing
4. A manufacturing plant produces memory chips to be used in cardiac pacemakers.The manufacturing process produces a mix of “good” chips and “bad” chips. The lifetime of good chips follows an exponential law with a rate of failure ??, that is:
P[chip still functioning after time ?] = ?−?t
The lifetime of bad chips also follows an exponential law, but with a much faster failure rate of 500*?.
a. Suppose the fraction of bad chips in a typical batch is?.What is the probability that a randomly selected chip is still functioning after time ???
b. Suppose that in an attempt to weed out the bad chips, every chip is tested for some small time ? prior to leaving the factory. The chips that fail during the test time are discarded and the remainder are sent out to customers. What is the value of test- time ? for which 99.9% of chips sent out to customers are good?
c. Suppose the good chips are designed to have a 50% chance of still being functional after 15 years, and that 5% of chips manufactured are bad. Repeating the test in (b), what is the value of test-time ?? for which 99.9% of chips sent out to customers are good?
d. For these particular chips, testing is an expensive process :suppose that the average manufacturing cost of a single chip is $2, but that to test a single chip for one full day costs the company $5. These chips can be sold to pacemaker companies for $200 each, and currently the company is selling 10,000 of these chips each year. The company’s CEO would like to increase profitability by decreasing the testing time before chips are shipped. However, shipping too many bad chips will cause pacemaker companies to lose faith in the product and stop buying the chips – not to mention the cost to patients who may receive a pacemaker with a faulty chip and need additional surgery to repair or replace the malfunctioning device. Your boss has asked you to present a proposal for a reasonable testing time that will maximize profits while still maintaining a quality standard that will satisfy the customer. What do you propose, and what is your reasoning for this proposal?
In: Statistics and Probability
Detailed Instructions:
In a business setting, we are often asked to write a memo to
communicate with internal and external professionals. Therefore, I
felt it especially beneficial for you to practice writing a memo
dealing with our managerial accounting concepts.
Background:
Currently, you work at Technology on Demand (TOD), which manufactures mobile technology such as flip phones, smartphones, notebooks, and smartwatches. The company slogan is Connection, Communication, and Coordination...access when and where you need it! You are a senior accountant in the accounting department and have been with the company for five years. Since the company's inception eight years ago, TOD has operated under a traditional costing system based on machine hours. Company growth has really taken off in the last three years. Michelle Dodd, the controller hired last year, is always open to new ideas. In fact, she welcomes communications to discuss how the company is doing and what, if anything, the company could or should be doing differently. This is your chance to make a good impression on the controller and management! It is your understanding that Brad Jones, the company CFO, has submitted paperwork for retirement. Therefore, there will be opportunities for people to move up or change positions within the company. You would have an interest in the controller position. You want to propose to the current controller the idea of evaluating TOD's costing system. Perhaps, it is time for a change. You briefly mention your idea to the controller. Michelle is excited about your initial comments and asks that you send her something in writing. The controller asks that you put your ideas in a memo to her only. In turn, she will consider and include you on more research/analysis for the two of you to present to the senior management of the company.
In consideration of the background, prepare a memo in a Word document to submit to the controller. Compare a traditional costing system with an Activity-Based Costing (ABC) system. Include the similarities, differences, advantages, disadvantages of the two costing systems. Why are you suggesting the costing system be evaluated now? What do you feel this could mean for the company?
In: Accounting
Part 1
Information for Year 1, Year 2, and Year 3 for the Andean branch of Powell Corporation is presented in the following table. The corporate tax rate in the Andean Republic changes drastically year-to-year. The U.S. corporate tax rate each year is 21%.
|
Year 1 |
Year 2 |
Year 3 |
|
|
Foreign source income |
$75,000 |
$100,000 |
$100,000 |
|
Foreign (Andean) tax rate |
15% |
20% |
22% |
|
Foreign taxes paid |
|||
|
U.S. tax before FTC |
In: Accounting
Suppose that you will receive $5,000 in year 1, $5,000 in year 2, $5,000 in year 3 and $7,000 in year 5. And somehow you know that the present value for the whole cash stream is $23,071.30. At a 7% discount rate, the cash flow received in year 4 will be ــــــــــــــــــــــــــــ.
Select one:
a. $6,500
b. $7,200
c. $7,000
d. $6,800
In: Finance
Suppose that you will receive $5,000 in year 1, $5,000 in year 2, $5,000 in year 3 and $7,000 in year 5. And somehow you know that the present value for the whole cash stream is $23,071.30. At a 7% discount rate, the cash flow received in year 4 will be ــــــــــــــــــــــــــــ.
Select one:
a. $7,000
b. $7,200
c. $6,500
d. $6,800
In: Finance
In: Accounting
Information for Year 1, Year 2, and Year 3 for the Alpinian branch of Rawl Corporation is presented in the following table. The corporate tax rate in the Alpinian Republic in Year 1 was 11 percent. In Year 2, the Alpinian Republic increased its corporate income tax rate to 15 percent. In Year 3, the Alpinian Republic increased its corporate tax rate to 22 percent. The U.S. corporate tax rate in each year is 21 percent.
| Year 1 | Year 2 | Year 3 | ||||
| Foreign source income | $ | 75,000 | $ | 100,000 | $ | 100,000 |
| Foreign taxes paid | 8,250 | 15,000 | 22,000 | |||
| U.S. tax before FTC | 15,750 | 21,000 | 21,000 | |||
For Year 1, Year 2, and Year 3, what is the foreign tax credit allowed in the United States?
In: Accounting
|
Yr0 Yr1 Yr2 Yr3 Yr4 Yr 5 Yr 6 $1,000 $1,200 $2,000 ? |
(Hint: compare the PVs of annuity X ($5,200 per year for 8 years) with annuity B ($7,300 per year for 5 years)
Chapter 7
|
6 months 1 year 18 months 2years |
|
$20 $20 $20 $20 +$1000 |
In: Finance