The partners A, B and C runs a partnership firm M/s. Raga LLC with their capitals of OMR 112,000;
rtnership Deed of the business contains PaOMR 67,200 and OMR 56,000 respectively on 1.1.2019.
several clauses, which discloses the following information about the partnership arrangement.
The firm has to pay Interest on Capital for the partners’ capital @ 5.5 % p.a. and has to receive
rom the partners @ 2.5 % p.a. Profit and Losses to be shared Up to OMR Interest on Drawings f
12,600 in the ratio of 4:3:2 and Above OMR 12,600 equally. The net profit of the firm for the year
0 ended 31st December 2019 amounts to OMR 77,700. Partner A has to get a salary @ OMR 84
per month, B and C have to get 10% commission each on the net profit and the Bonus to be paid
A OMR 6,720: B OMR 4,480 and C -to A and C @ OMR 700 each. Drawings of the partners are OMR 2,800. a. Prepare Profit and Loss Appropriation Account and (2.5 Marks) b. Capital Accounts of the partners assuming – a. Capitals are fixed and b. Capitals are fluctuating.   

Mary performs a PCR reaction and runs it on an agarose gel, using 100-bp ladder as her molecular weight standard. She images the gel using UV light and sees NO bands (no band in her PCR reaction and no bands for her ladder). Which of the following could explain these results? Explain each answer.

1. Mary forgot to add Gel Red when pouring the gel.

2. Mary's PCR product had an unusually high % of G and C bases.

3. Mary connected the electrodes to her gel incorrectly, swapping the positive and negative poles.

Prezzo plc runs a chain of restaurants in the UK that serve mainly Italian style food including pizza, pasta, and grilled dishes as well as a few Chimichanga Mexican restaurants. During 2012, the number of restaurants in the group increased from 184 to 210. Prezzo shares are listed on AIM, which is a stock market for smaller growing companies. Extracts from Prezzo’s annual report 2012, including financial statements for the year to 30 December 2012 and extracts from the director’s report, are given:

Table FA.1

Table FA.2

Table FA.3

Required:

a) Using extracts from the Annual Report, compute the following profitability ratios for Prezzo plc for 2012 and 2011 and interpret your findings, giving a possible reason for any observed changes in each ratios:

• return on capital employed

• operating profit margin

• use of assets

• gross profit margin

Identify one other profitability ratio that might enable you to gain a better understanding of the company's profitability. Compute that ratio for both years and discuss your findings.

b) Use ratios to assess the liquidity of the company at both year-ends and explain what has caused the movement in the ratios between the two year-ends.

c) Use the company’s statement of cash flows to discuss what has happened to the company’s cash position during 2012.

d) Complete the following table of share information and investment ratios:

Table FA.4

Interpret the investment ratios, explaining what they reveal to shareholders about the return their shares have generated.

e) Describe two other sources of information that might have enabled you to give a fuller interpretation of the company’s performance and financial position and explain how that information could have been used.

Jay Thomas runs an automobile service station. The station is housed in facilities leased for $5,800 per month which includes rent on equipment and service bays used for oil changes, tire changes, and weather checks. Approximately 25% of the rent is attributable to service bays and 75% is to gasoline sales. Jay employs 6 employees who are paid on average $8 per hour.

Jay realizes that many hazardous substances are handled on a daily basis in his station. He would like to determine the environmental cost associated with each type of service. He needs to know whether his charges are sufficient to cover those environmental costs, or whether the cost is such that the service should be discontinued. Jay has analyzed each ser- vice he provides and assembled the following information.

Oil Changes. A complete oil change generally takes a half an hour to perform. For each vehicle, the filter must be replaced, and the old oil drained and placed in a waste oil storage tank. Jay’s cost for new filters averages $1.35 each. Most vehicles require 5 quarts of oil at $0.50 per quart. In addition, the oil storage tank, purchased at a cost of $3,500, holds 400 gallons of used oil. Each oil change adds 1.25 gallons of fluid to the tank. Jay estimates that the use of the oil storage tank costs $0.10 per oil change. A local waste hauler empties and disposes of the oil in the tank at a charge of $10 per month. About 10 minutes of each oil change is spent complying with EPA guidelines for oil and filter disposal.

The EPA requires Jay to charge (and show on the sales ticket) a $1.50 fee for oil and filter disposal. In the past Jay has shown this on the sales ticket, but has discounted his charge an equal amount. This practice is commonly followed by his competitors.

Tire Installation. It takes approximately one hour to install 4 new tires. Normally, Jay sells and installs 30 sets of new tires per month. Old tires are placed in a designated area for scrap tires. This area occupies 1/10 of the work bay area. Removal of scrap tires must be done by a registered disposer of scrap tires, who charges $1.00 per tire. Jay passes this cost to his customers.

Weather Checks. In the spring, air conditioning and coolant checks become a staple part of Jay’s business. A weather check requires 1.5 hours to complete. Freon and coolants, drained during weather checks, are both considered hazardous substances. However, Jay is able to recycle these substances through individual filtration systems. The filtration sys- tems were purchased for a cost of $3,850 each. Jay estimates that the cost of these systems is $1.50 per weather check. The filters in the coolant tank must be replaced once a month; this costs Jay $30.

The freon system stores freon until the tank is full and then compresses the freon to remove excess water. This drying process reduces the liquid by 50%. Jay performs the drying process 5 times per year. Each drying uses 2 filters which cost $15 each. The recy-

cled freon is stored in another container and used to fill vehicles as needed. The storage tanks for coolants and freon occupy 5% of the work bay areas.

Other. Training and certification for the handling of hazardous substances is required for all new employees. This is generally accomplished in a 6-hour course offered locally by a national automotive chain. Cost for the course is $100. Jay has an employee turnover rate that requires him to hire around 6 new employees each year. Usually 4 of these have previ- ous experience and certification and do not require the EPA training.

Additional information about Jay’s sales is provided below.

Budgeted Revenue

Oil changes—320 per month @ $12.95 $4,144.00

Tire changes—30 per month @ $19.95 $598.50

Tire sales $10,350.00
Weather checks—15 per month @ 44.95 $674.25

Gasoline sales and other services $12,450.00

Total revenues $28,216.75

Required

a. Compute the total cost per month for each type of service: oil changes, tire changes and weather checks.

b. Develop an environmental cost analysis similar to Exhibit 3 of the module classifying the costs from requirement (a) as environmental or nonenvironmental.

c. Calculate the amount Jay spends for prevention, assessment, control and failure costs.

d. Are there any services Jay should consider discontinuing?

Sarah has a BMR of 1775 and ingests, on average, 2390 kcals daily. She runs on the treadmill every day right after class for 45 minutes at 6.5mph, 3% grade. If she continues to follow her current eating and exercise regimen, will she likely lose weight, maintain her weight or gain weight? Her current weight is 70kg.

Vijay runs a popular local restaurant and occasionally hires Dilpreet as a dancer to entertain patrons. One evening a regular customer, Winston, is celebrating his 85th birthday with his family. Winston had been drinking some alcohol but later claims he was definitely not drunk when Dilpreet enticed him to dance with her. As the dance got faster Winston made every effort to keep up with her but, unfortunately, he had a fall breaking his leg. This has never happened at Vijay’s restaurant before and it has never happened to Dilpreet either. Winston has no previous history of leg injury.

Explain how the rules of vicarious liability may be applied to this case. You must use relevant cases to support your answer.

Assume the year runs from January 1 to December 31 for the Year 2018. On May 1, Company DEF (“The Company”) purchased inventories costing $49,000; the Company paid $29,000 in cash and giving a one-year, 9% note for the balance; accrual of interest expense.  On August 1, The Company received $6,000 cash for legal services to be performed evenly throughout the six months period (starting on August 1); and the Company started rendering the legal services on August 1. On November 1, The Company paid $5,400 in cash for one year of the rent in advance.

Prepare the journal entries to record the above transactions on May 1, August 1, and November 1 in box .

Prepare the adjusting entries at 31 December 2018 related to the above transactions in box . Assume straight-line amortization method is applied.

Prepare the journal entries to record the payment of the note on the maturity date in box .

Indicate the manner in which the above transactions should be reflected in the Current Liabilities section of The Company's Statement of Financial Position at 31 December 2018 in box

The following data shows the number of home runs hit by the top 12 home run hitters in Major League Baseball during the 2011 season.

43    41 39 39 38 37 37 36 34 33 33 32

The lower limit for determining outliers for a box-and-whisker plot is ________.

23.75

20.0

22.5

25.25

. Dean runs The Creamy Bar which specialises in artisan ice cream sold at a local farmer’s market. Prevailing prices in the local market are $8 for a take-home tub of Classic Vanilla and $15 for a tub of Chocolate Almond Fudge.

The local dairy farmer delivers 48 litres of milk every Friday in preparation for market day. Classic Vanilla will need 0.5 litres per tub and Chocolate Almond Fudge requires 3 times as much. Both flavours require 500g of sugar to enhance the taste. There is a total of 20kg of sugar available per market day. For the signature velvety mouthfeel, Dean adds 0.5 litres of heavy cream to Classic Vanilla and double the amount for Chocolate Almond Fudge. He ordered 50 litres of heavy cream from the supplier.

Task 1

Construct a mathematical model for this problem. In doing so, consider the following:

1. What are the decision variables for this problem?
2. Using decision variables identified in part (a), formulate the objective function for this problem. Is the quantity of interest to be maximised or minimised?
3. What constraints are relevant to this problem? Using the decision variables from part (a), formulate those constraints.

Task 2

Use Excel Solver to obtain a solution to the mathematical problem from Task 1. Your submission should include:

• your Excel spreadsheet
• the Sensitivity Report
• the Answer Report

           Task 3

Use your Excel output to answer the following questions:

1. Describe the linear programming solution to the Dean of The Creamy Bar in terms of:
   • The optimum number of take-home tubs of Classic Vanilla and Chocolate Almond Fudge to prepare each market day.
   • The maximum revenue per market day.
   • Whether all the milk purchased will be fully utilised.
   • Whether all the sugar allocated will be fully utilised.
   • Whether all the heavy cream ordered will be fully used.

    Which of the Solver reports helps you answer these questions?

2. What is the maximum profit per market day if Dean paid $1.2 per litre for milk and cream and $45 for sugar? Note that Dean also draws a $100 salary per market day.

    Which Solver report allows you to answer this question?

3. Due to the popularity of the Chocolate Almond Fudge flavour, Dean is hoping to increase the price to $20 per take-home tub. Would the solution obtained in Task 2 still be optimal? Which of the EXCEL reports helps you answer this question? Justify your answer carefully. How would the solution and The Creamy Bars’ revenue change, if at all?

4. In preparation for the scorching heat in summer, Dean would like to purchase an extra 10 litres of milk to increase ice cream production. Would the solution obtained in Task 2 still be optimal? Which of the EXCEL reports helps you answer this question? Justify your answer carefully. How would the solution and The Creamy Bars' revenue change, if at all?

Attach the new Answer Report ONLY, for the scenario in which Dean purchases 58 litres of milk, verifying your calculated maximum revenue per market day.

Task 4

Write a report outlining the solution and discussing your findings from Task 3 (at most two pages, double-spaced, at least 2cm margins, 12pt Times New Roman font or equivalent).

Here are a few points to consider while working through this assignment question:

1. The first step is always to work out the mathematical set up for the problem. This means identifying decision variables, formulating the objective function and then formulating constraints. At this stage, we are not trying to solve the problem or work out interactions among constraints. We simply list all conditions that must be satisfied.

When you complete Task 1, you should have two decision variables, the objective function written in terms of those decision variables, and five constraints, also written in terms of decision variables (some using both decision variables, others just one of them).

2. The second step is to find a solution. Task 2 tells you specifically to use Excel Solver to find this solution. The key here is to translate all mathematical expressions from Task 1 into Excel format. Instructions for doing so can be found under Topic 5 in the Excel booklet, as well as in the Linear Programming supplement. In addition, the Lecture notes page in this website gives you access to Excel spreadsheets used to generate Excel output shown in lecture slides for Week 5. It may be worthwhile examining them before attempting Task 2.
3. The final step is interpreting the solution that has been found, which is Task 3.
4. The report in Task 4 is a summary of the results from linear programming and sensitivity analysis in Tasks 2 and 3.

Use the following information for questions #1 - 3:

An accounting student runs a hotdog concession at his college’s football games. After the first three games the following limited information is available to assess performance and make decisions about future operations:

#1.   The student knows that total costs are comprised of a variable component (meat, rolls, toppings, napkins) and a fixed component (afternoon rental of cooking cart, wages paid to self) and would like to better understand those. Calculate the following using the “High-Low Method (show work).

a.) Variable cost per hotdog sold (unit cost).

b.) Total Variable cost for Game #1

c.) Total Fixed cost for a game.

#2. Although sales have declined in the past couple of games, the student estimates that 280 hotdogs can be sold at Game #4 if he adjusts the price that he charges his customers for each hotdog.

       Calculate the following (show all work).

a.) Total Variable Cost for Game #4.

b.) Total Cost for Game #4

c.) What is the   “Contribution Margin” for Game # 4 if the price that customers pay for a hotdog is $3.50 ?

d.) Was the student’s decision to set the price of hotdogs at $3.50 a good one?   Why ?

#3 If the actual number of hotdogs the student sells at Game #4 drops below what was sold in Game #3, then:

            Variable Costs per unit would (select one) -

            a.) Increase                b.) Decrease               c.) Remain the same

            and Fixed Costs per unit would (select one) -

            a.) Increase                b.) Decrease               c.) Remain the same