Pronghorn Inc. and Culver Corporation are Canadian fertilizer companies. The following information has been taken from their financial statements for the fiscal years ended December 31. All figures are in millions of dollars.

1) Calculate both companies’ gross profit margin and profit margin for the years 2019 through 2021. (Round answers to 1 decimal place, e.g.52.7%.)

2)

Determine which company had the best performance for profitability in each year.

3) Using horizontal analysis, calculate the percentage change between the following years: 2019 and 2020; 2020 and 2021 for both companies. (Round answers to 1 decimal place, e.g.52.7%.)

4) Using the information in the horizontal analysis, identify the company that had the most improvement in net sales, gross profit margin and profit margin in 2020 and 2021.

On January 31, 2020, the manufacturing facility of a medium-sized company was severely damaged by an accidental fire. As a result, the company's direct materials, work in process, and finished goods inventories were destroyed. The company did have access to certain incomplete accounting records, which revealed the following:1.Beginning inventories, January 1, 2020:

2.Key ratios for the month of January 2020:

Gross profit = 20% of sales

Prime costs = 70% of manufacturing costs

Factory overhead = 40% of conversion costs

Ending work in process is always 10% of the monthly manufacturing costs.

3.All costs are incurred evenly in the manufacturing process.

4.Actual operations data for the month of January 2020:

Instructions

a.  From the above data, reconstruct a cost of goods manufactured schedule.

CGM $788,000

b.  Calculate the total cost of inventory lost, and identify each category where possible (direct materials, work in process, and finished goods), at January 31, 2020.

Total $330,000

The Concord Company counted physically their beginning balance on January 02, 2020 and subsequent inventory purchases made by the company during the month of January 2020 are given below:

Date Description Units   Rate

Jan. 02 Beginning Inventory 300 $10

Jan. 11 Purchased 600 12   

Jan 23 Purchased 700 11

The company sold 1,300 units during the month of January 2020.

Instructions: The company uses periodic inventory system. Compute the cost of goods sold and ending inventory on January 31, 2020 using the following inventory costing methods:

a)    First in, first out (FIFO) method.

b) Weighted Average cost method.

1. Conduct an interview with the healthcare professional selected in your Interview Assignment.

• What is your healthcare profession? How long have you worked in this field? In what kind of facility do you practice?

• How racially, ethnically, religiously, or sexually diverse is the community your facility serves?

• How racially, ethnically, religiously, or sexually diverse is the staff at your facility?

• What changes– increases or decreases in specific populations -- have you observed in the workplace with patients and staff over time?

• If there has been an increase in diversity, what changes, if any, has your facility made to accommodate this diversity, such as diversity training, providing interpretation services, etc.?

• Describe an experience you have participated in, observed, or heard about in which cultural or other differences have caused problems for patients and/or staff.

• What factors came into play (such as stereotyping, prejudice, assumptions, etc.) and what was the outcome?

• In your view, how well was this situation handled?

• If faced with a similar scenario, what, if anything, would you change about how it was handled? If you would not change anything, what advice would you give to another healthcare professional else facing the same kind of situation?

• Have your personal attitudes towards diversity changed over time? If so, how have they changed? If not, why?

Read the fictional scenario and address the checklist items.

Secnario:

ROBolnc is a robotics software company with 100 employees located in South Bend, Indiana, in the United States. Until recently, the corporate culture had been established as a rigid culture that excluded families from company celebrations and in which everyone had an explicit job description. The company hires mostly locals, and only directors make any important decisions. The company has had a formal code of ethics but it has not be enforced. As a result, there have been increasing incidents of personnel doing consulting work for other companies outside of working hours. The CEO is concerned that their robotics software could be compromised. Lately, as the company's software has been increasingly sought out by robot-producing companies around the globe, the CEO realizes it is time to reimagine a more diverse, inclusive, and global type company, while adhering to an ethical code of conduct with uniform responses to infringement.

The CEO knows they will soon need to hire at least another 20 sales staff and additional software developers to address this increasing global demand. The CEP wants to restructure the company while keeping company costs down as much as possible.

Help ROBolnc.address the problems by completing the checklist items.

view the company's current organizational structure:

There are two V.P.'s one for finance and one for human resources. An accountant reports to the budget manager who reports to the V.P. of Finance and a recruiter reports the V.P.of Human resources. Then reporting to the two V.P.s and CEO are 4 directors. The director of production has 10 robot maintenance engineers (maintain the robots once on client site), 20 robot engineers (they design al parts), and 10 software engineers (who program the robots) all reporting to him. The director of sales has 2 assistants, 7 industrial sales staff and 7 medical sales staff reporting to her. The director of customer services has a customer services manager reporting to him and he in turn has and 14 call center customer service staff reporting to him,

Address the following items in your Assessment

1. Identify the characteristics needed to implement a share ethical culture and explain how this will help the organization.

2. Explain how the ethical culture will be affected by the global context. Describe some of the global implications. (Use the Competing Values Framework in assessing the situation)

3. Analyze the current organizational structure and identify the key questions the executives need to answer in order to create the most effective and suitable organizational structure and culture.

4. Explain the importance of ethical leadership involved in implementing a new organization structure and suggest a possible new structure base on the Learning Activity.

It’s not unusual for one company to buy another company in order to obtain technology that the acquired company has developed or is in the process of developing.

Required:

Explain the accounting treatment of purchased technology.

Based on Problem 10-6

Indigo Landscaping began construction of a new plant on December 1, 2020. On this date, the company purchased a parcel of land for $147,600 in cash. In addition, it paid $3,120 in surveying costs and $4,080 for a title insurance policy. An old dwelling on the premises was demolished at a cost of $3,120, with $960 being received from the sale of materials.

Architectural plans were also formalized on December 1, 2020, when the architect was paid $34,800. The necessary building permits costing $3,120 were obtained from the city and paid for on December 1 as well. The excavation work began during the first week in December with payments made to the contractor in 2021 as follows.

Compute the balance in each of the following accounts at December 31, 2020, and December 31, 2021.

To finance construction of this plant, Indigo borrowed $602,400 from the bank on December 1, 2020. Indigo had no other borrowings. The $602,400 was a 10-year loan bearing interest at 9%.

The building was completed on July 1, 2021.

Using Excel calculate the following (show your work and use formulas where appropriate):

1. Balance in the Land account for December 31, 2020 and December 31, 2021
2. The weighted average of accumulated expenditures for 2020
3. The amount of interest capitalized in 2020
4. The weighted average of accumulated expenditures for 2021
5. The amount of interest capitalized in 2021
6. Balance in the Building account for December 31, 2020 and December 31, 2021
7. Balance in the Interest Expense account for December 31, 2020 and December 31, 2021

Financial Reporting: Do Small Errors Need to be Reported?

Ben is a recent Santa Clara University graduate who has just started his first job in the finance department of a publicly traded Silicon Valley company. One of his main responsibilities is to create and distribute extensive Microsoft Excel reports that analyze costs and revenues for different divisions. Ben sends completed reports to his direct supervisor and the CFO. The CFO then uses the information to create the company's financial reports, in addition to the strategy and forecasting formulation.

While Ben considers himself to be detailed-oriented, the complicated nature of and the sheer volume of data sometimes overwhelm him, which is exacerbated by their strict deadlines. While Ben works hard to prepare the reports as accurately as possible, he often finds errors after he has submitted his final report. When the errors are critical, he revises the reports and resends them. However, some of the errors are minor, in Ben's estimation, and he doubts that the CFO will use or look at these figures. Ben is ambitious and wants to be promoted, but worries that if he frequently sends out revised reports he will appear unreliable and unqualified. At the same time, the potential consequences from inaccurate financial reports put the company, the CFO and CEO, and Ben himself at risk.

Think about... What actions should Ben take when he catches a mistake? Is he obligated to report every error, particularly since he works for a publicly traded company? Is there such a thing as a small error in this context?

For your post, put yourself in Ben's shoes... You have a family at home that you provide for. What would you do if you caught one of your own errors? Does the amount of the error matter? Are you willing to get fired? How important is trust? How much do you value integrity?

Imagine that you are the CEO of a wind power company, and you operate under the theory of sustainability. You have been asked to give a presentation to your management team about the advantages of environmental leadership. How will you explain these motivations in the context of your company and your philosophy?

The individual financial statements for Gibson Company and Keller Company for the year ending December 31, 2021, follow. Gibson acquired a 60 percent interest in Keller on January 1, 2020, in exchange for various considerations totaling $330,000. At the acquisition date, the fair value of the noncontrolling interest was $220,000 and Keller’s book value was $430,000. Keller had developed internally a customer list that was not recorded on its books but had an acquisition-date fair value of $120,000. This intangible asset is being amortized over 20 years. Gibson uses the partial equity method to account for its investment in Keller.

Gibson sold Keller land with a book value of $55,000 on January 2, 2020, for $110,000. Keller still holds this land at the end of the current year.

Keller regularly transfers inventory to Gibson. In 2020, it shipped inventory costing $110,500 to Gibson at a price of $170,000. During 2021, intra-entity shipments totaled $220,000, although the original cost to Keller was only $132,000. In each of these years, 20 percent of the merchandise was not resold to outside parties until the period following the transfer. Gibson owes Keller $40,000 at the end of 2021.

(Note: Parentheses indicate a credit balance.)

1. Prepare a worksheet to consolidate the separate 2021 financial statements for Gibson and Keller.

2. How would the consolidation entries in requirement (a) have differed if Gibson had sold a building on January 2, 2020, with a $70,000 book value (cost of $160,000) to Keller for $120,000 instead of land, as the problem reports? Assume that the building had a 10-year remaining life at the date of transfer.