cenario You are the global marketing vice president at Dyson. You have been asked to attend a meeting with James Dyson, the company's founder. Dyson's CEO and the head of Dyson's New Product Innovation department will also be in attendance. "Thanks for meeting with me today," James says. "Market intelligence has shown that our major competitors—Hoover, Shark, and Bissell—are all developing new cordless vacuum cleaners with a longer battery life than what's currently available." James Dyson looks to you: "I need you to participate in a new cross-functional product development team that will research the feasibility of creating a cordless vacuum cleaner that works for one hour on a single charge. We also need to know if there's even a market for this type of vacuum," he says. "We envision that this new vacuum will be used primarily in the home, but keep in mind, we want to be able to adapt it easily and cheaply for light commercial use. One way of doing this is by using swappable battery packs." "Have an actionable marketing plan ready for me in three weeks," James says. You know that to give the CEO the most thorough report, you'll need to conduct an internal analysis of Dyson and an environmental scan for the new vacuum cleaner. You'll need to have a detailed plan for identifying marketing opportunities, and you'll need to research the home and commercial vacuum cleaner industry, market trends, and Dyson's major global competition.
Your financial analysis should include average unit cost, average unit price, number of units per batch, any outsourcing costs, a breakeven analysis, a sales forecast, and an expense forecast (including marketing and sales expenses). In addition, explain your schedule for implementation, the controls you intend to put in place, and how you intend to proceed (i.e., contingency plans) when your benchmarks are not met.
Milestone 6: Submit a one page document explaining your financial analysis and implementation for the startup of a new Dyson vacuum cleaner.
In: Accounting
Questions 4
The issue of monopolies and avoiding monopolies is a relevant theme of American business and something the U.S. government attempts through regulations to prevent. Examples of potential monopolies in the U.S. include Microsoft, Ticketmaster, and even Wal-Mart. Why does the class think some areas of business have come to be dominated by a particular company and should government undertake actions including legal actions that could result in the break-up of a successful company? Explain
In: Economics
Questions 4
The issue of monopolies and avoiding monopolies is a relevant theme of American business and something the U.S. government attempts through regulations to prevent. Examples of potential monopolies in the U.S. include Microsoft, Ticketmaster, and even Wal-Mart. Why does the class think some areas of business have come to be dominated by a particular company and should government undertake actions including legal actions that could result in the break-up of a successful company? Explain
In: Economics
Why are you looking to pursue an MBA or MS program at this point in your life and what do you see yourself doing professionally upon graduation? What key actions have you taken up to this point to prepare you for this career? 500 words
In: Accounting
More than 50% of all MBAs leave their first employer within five years. Although the change may mean career growth for these individuals, it represents a loss to the employers. What are some of the probable reasons a MBA would leave his/her first employer?
In: Economics
Preston Company acquired the assets (except for cash) and assumed the liabilities of Saville Company. Immediately prior to the acquisition, Saville Company’s balance sheet was as follows:
Book Value Fair Value
Cash $ 120,000 $ 120,000
Receivables (net) 192,000 250,000
Inventory 360,000 400,000
Plant and equipment (net) 480,000 600,000
Land 420,000 600,000
Total assets $1,572,000 $1,944,000
Liabilities $ 540,000 $ 600,000
Common stock ($5 par value) 480,000
Other contributed capital 132,000
Retained earnings 420,000
Total equities $1,572,000
Required:
A. Prepare the journal entries on the books of Preston Company to record the purchase of the assets and assumption of the liabilities of Saville Company if the amount paid was $1,600,000 in cash.
B. Repeat the requirement in (A) assuming that the amount paid was $1000,000.
C- Repeat the requirement in (A) assuming that the Preston Company issued 25000 shares of its common stock (par value $40 , fair value $ 50).
In: Accounting
On July 1, 2016, Killearn Company acquired 109,000 of the outstanding shares of Shaun Company for $21 per share. This acquisition gave Killearn a 40 percent ownership of Shaun and allowed Killearn to significantly influence the investee's decisions.
As of July 1, 2016, the investee had assets with a book value of $5 million and liabilities of $344,500. At the time, Shaun held equipment appraised at $210,000 above book value; it was considered to have a seven-year remaining life with no salvage value. Shaun also held a copyright with a five-year remaining life on its books that was undervalued by $672,500. Any remaining excess cost was attributable to goodwill. Depreciation and amortization are computed using the straight-line method. Killearn applies the equity method for its investment in Shaun.
Shaun's policy is to declare and pay a $1 per share cash dividend every April 1 and October 1. Shaun's income, earned evenly throughout each year, was $634,000 in 2016, $675,800 in 2017, and $733,000 in 2018.
In addition, Killearn sold inventory costing $126,600 to Shaun for $211,000 during 2017. Shaun resold $118,000 of this inventory during 2017 and the remaining $93,000 during 2018.
Determine the equity income to be recognized by Killearn during each of these years.
Compute Killearn's investment in Shaun Company's balance as of December 31, 2018.
(For all requirements, enter your answers in whole dollars and not in millions.)
In: Accounting
On July 1, 2016, Killearn Company acquired 103,000 of the outstanding shares of Shaun Company for $21 per share. This acquisition gave Killearn a 40 percent ownership of Shaun and allowed Killearn to significantly influence the investee's decisions. As of July 1, 2016, the investee had assets with a book value of $6 million and liabilities of $1,468,500. At the time, Shaun held equipment appraised at $140,000 above book value; it was considered to have a seven-year remaining life with no salvage value. Shaun also held a copyright with a five-year remaining life on its books that was undervalued by $562,500. Any remaining excess cost was attributable to goodwill. Depreciation and amortization are computed using the straight-line method. Killearn applies the equity method for its investment in Shaun. Shaun's policy is to declare and pay a $1 per share cash dividend every April 1 and October 1. Shaun's income, earned evenly throughout each year, was $580,000 in 2016, $606,600 in 2017, and $649,200 in 2018. In addition, Killearn sold inventory costing $93,000 to Shaun for $155,000 during 2017. Shaun resold $97,500 of this inventory during 2017 and the remaining $57,500 during 2018.
a.Determine the equity income to be recognized by Killearn during each of these years.
b.Compute Killearn's investment in Shaun Company's balance as of December 31, 2018.
A. Equity income 2016
Equity income 2017
Equity income 2018
B. Investment in Shaun
In: Accounting
On July 1, 2016, Killearn Company acquired 136,000 of the outstanding shares of Shaun Company for $15 per share. This acquisition gave Killearn a 25 percent ownership of Shaun and allowed Killearn to significantly influence the investee's decisions.
As of July 1, 2016, the investee had assets with a book value of $7 million and liabilities of $456,800. At the time, Shaun held equipment appraised at $319,200 above book value; it was considered to have a seven-year remaining life with no salvage value. Shaun also held a copyright with a five-year remaining life on its books that was undervalued by $980,000. Any remaining excess cost was attributable to goodwill. Depreciation and amortization are computed using the straight-line method. Killearn applies the equity method for its investment in Shaun.
Shaun's policy is to declare and pay a $1 per share cash dividend every April 1 and October 1. Shaun's income, earned evenly throughout each year, was $579,000 in 2016, $619,400 in 2017, and $675,200 in 2018.
In addition, Killearn sold inventory costing $111,000 to Shaun for $185,000 during 2017. Shaun resold $82,500 of this inventory during 2017 and the remaining $102,500 during 2018.
A).Determine the equity income to be recognized by Killearn during each of these years.
B).Compute Killearn's investment in Shaun Company's balance as of December 31, 2018.
In: Accounting
On January 1, 2018, Pomegranate Company acquired 90% of the voting stock of Starfruit Company for $91,700,000 in cash. The fair value of the noncontrolling interest in Starfruit at the date of acquisition was $6,300,000. Starfruit’s book value was $13,000,000 at the date of acquisition. Starfruit’s assets and liabilities were reported on its books at values approximating fair value, except its plant and equipment (10-year life, straight-line) was overvalued by $25,000,000. Starfruit Company had previously unreported intangible assets, with a market value of $40,000,000 and 5-year life, straight-line, which were capitalized following GAAP.
At the date of acquisition, what would the consolidation eliminating entry (R) credits the noncontrolling interest in Starfruit Company amount be?
In: Accounting