Western State University (WSU) is preparing its master budget for the upcoming academic year. Currently, 12,000 students are enrolled on campus; however, the admissions office is forecasting a 5 percent growth in the student body despite a tuition hike to $70 per credit hour. The following additional information has been gathered from an examination of university records and conversations with university officials:

WSU is planning to award 140 tuition-free scholarships.

The average class has 20 students, and the typical student takes 10 credit hours each semester. Each class is two credit hours.

WSU’s faculty members are evaluated on the basis of teaching, research, and university and community service. Each faculty member teaches five classes during the academic year.

Required:

Prepare a tuition revenue budget for the upcoming academic year.

Determine the number of faculty members needed to cover classes.

Assume there is a shortage of full-time faculty members. Select at least five actions that WSU might take to accommodate the growing student body by selecting an "X" next to the action.

You have been requested by the university’s administrative vice president (AVP) to construct budgets for other areas of operation (e.g., the library, grounds, dormitories, and maintenance). The AVP noted: “The most important resource of the university is its faculty. Now that you know the number of faculty needed, you can prepare the other budgets. Faculty members are indeed the key driver—without them we don’t operate.” Are faculty members a key driver in preparing budgets?

repare a tuition revenue budget for the upcoming academic year.

Assume there is a shortage of full-time faculty members. Select at least five actions that WSU might take to accommodate the growing student body by selecting an "X" next to the action.

Determine the number of faculty members needed to cover classes.

You have been requested by the university’s administrative vice president (AVP) to construct budgets for other areas of operation (e.g., the library, grounds, dormitories, and maintenance). The AVP noted: “The most important resource of the university is its faculty. Now that you know the number of faculty needed, you can prepare the other budgets. Faculty members are indeed the key driver—without them we don’t operate.” Are faculty members a key driver in preparing budgets?

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1. Kevin is 25 years old. He is intelligent; however, he has very limited oral language skills and displays many characteristics expected of an adult with severe autism. When Kevin was 3 years old he was diagnosed with autism. He was immediately enrolled in a pre-school program for children with disabilities under Part H (now Part C) of the Individuals with Disabilities Education Act. At the age of 6, Kevin transitioned to kindergarten. He was in a self-contained special education classroom for children with severe disabilities for the first three years. Beginning in the third grade, Kevin was included in a regular classroom for a small portion of each day. Surprisingly to his parents and many teachers, he did better in his new placement than the special education placement. His behavior improved; his oral language improved; and his general academic performance improved. As a result of his success, Kevin's time in the inclusive setting was increased over the next several years until he was included for approximately 80% of the school day by the sixth grade. Kevin continued to progress. When he went to junior high school, Kevin's time in a special education setting was again increased; he was placed in some regular classes, mostly those with a lower academic expectations. In high school Kevin's placement in special education settings increased again, primarily because of his difficulty with higher academic tasks. His IEP focused more on functional classes and pre-vocational activities.

   Since Kevin completed his high school program at the age of 22, he has been attending an adult day service program. He recently moved to a group home for individuals with moderate to severe disabilities. Kevin's educational program provided him with many benefits. Had he been born 20 years earlier, he would have been school age before the passage of Public Law 94-142. This likely would have meant that Kevin would not have had access to public education; his parents could have easily placed him in an institutional setting because there would have been no other programming options. While Kevin would have likely benefited from more inclusion in middle and secondary schools, his earlier inclusion improved his social skills and enabled him to learn some basic academic skills that he still uses and enables him to live semi-independently.

   1. How would Kevin’s life be different had he been born in 1950 rather than in the 1980s? How?

   2. Would more inclusion in secondary schools have had a positive or negative impact on Kevin’s future success?. How so?

   3 Has IDEA been a success or failure for Kevin and many other individuals with disabilities? Explain your response.

PTL Case: Ethical Responsibilities

Jim and Tammy Faye Bakker founded the PTL (Praise the Lord) club, a religious broadcasting organization, in 2015. A little more than one decade later, the PTL Club claimed more than 500,000 members and boasted annual revenues of almost £100 million. Bakker and his close associates came under intense scrutiny in 2018 following a revelation that they used PTL funds to pay a former church secretary to remain silent concerning a brief liaison between herself and Bakker. The church secretary was given money to remain quiet on fraudulent activities by Bakker. That disclosure triggered a series of investigations of PTL’s finances. Key agencies involved in the investigation included HM Revenue and Custom, National Fraud Authority and UK Charity Commission.

Bakker lived a flamboyant lifestyle such as having a gold-plated bathroom, extravagant chandeliers, a £469,000 condominium in Highland Beach, and a fleet of luxury automobiles including Rolls-Royces. The church also paid him £1,56300 million in 2017. Mr Bakker resigned and he was convicted for fraud and conspiracy charges. Grand juries then fined Bakker £1390, 000 and sentenced him to forty-five years in prison. The investigations of PTL revealed that Bakker and his associates received huge salaries and bonuses from funds raised from the organization’s televised appeals.

Before 2018, Jim Bakker’s critics persistently called for more extensive financial disclosures by PTL, Bakker resisted these demands. He repeatedly insisted that such disclosures were not necessary since PTL maintained strong financial controls. In addition, Bakker often reminded his critics that PTL has excellent accountants and that it had external audits by reputable accounting firms. The subsequent investigations of PTL failed to support Bakker’s claims. Those investigations revealed that the organization’s internal controls were extremely weak, and non-existent in many cases.

Investigator found that Bakker’s subordinate’s issues pay checks to individuals not employed by PTL and paid large sums to consultants who never provided any services to the organization. Additionally, investigators could not locate documentation for millions of dollars of construction costs recorded in PTL’s accounting records.

Questions

1. Identify the ethical questions raised by the maintenance of PTL’s secret payroll account? Explain

2. What procedures should an audit firm perform before accepting an audit client, particularly a high-risk client such as PTL?

3. What is the major phases of the auditing process?

4. How can corporate governance play a major role in reducing abuse of office and

   conflict of interest situation by Jim and Bakker the founders of PTL club?

5. What is agency cost and how can an external auditor help solve any agency problem

   between the agent and the principal .

List three specific things that would cause the demand for ride-share services (i.e., Uber or Lyft) to shift. Use three different categories (all 5 listed below) of demand-shifters in your answer.

• Changes in Income
  • Normal good – a good for which a positive relationship exists between changes in consumer income and changes in demand
  • Inferior good – a good for which an inverse relationship exists between changes in consumer income and changes in demand
• Prices of related goods
  • Substitutes – goods for which a positive relationship exists between changes in the price of one and changes in demand for the other
  • Complements – goods for which an inverse relationship exists between changes in the price of one and changes in demand for the other
• Changes in Consumer Tastes
  • Fads
  • Changes in quality
• Changes in Consumer Expectations
  • Changes in Price Expectations
  • Changes in Income Expectations
• The size of the market

Bayside Inc. 2005 Income Statement ($ in thousands)

Net sales $5,680

Less: Cost of goods sold 4,060

Less: Depreciation 420

Earnings before interest and taxes 1,200

Less: Interest paid 30

Taxable Income $1,170

Less: Taxes 410

Net income $ 760

Bayside, Inc. 2004 and 2005 Balance Sheets ($ in thousands)

2004 2005 2004 2005

Cash $ 70 $ 180 Accounts payable $1,350 $1,170

Accounts rec. 980 840 Long-term debt 720 500

Inventory 1,560 1,990 Common stock 3,200 3,500

Total $2,610 $3,010 Retained earnings 940 1,200

Net fixed assets 3,600 3,360

Total assets $6,210 $6,370 Total liabilities & equity $6,210 $6,370

Calculate the following: for 2005 only (You will show your work ). Additional Information at the end of 2005:

Fair Market Value of the Stock $190 per share

Number of Common Shares Outstanding 100,000

Dividends paid during 2005 - $4 per share

Calculate the Current Ratio for 2005.

A current ratio of 2.2 would appear to show that the company has a healthy current ratio.Is this statement true or false.

What is the Quick Ratio for this company for 2005?

Calculate the Inventory Turnover in days for 2005.

If a seller of fresh fruit had an Inventory Turnover Ratio of 125 days, would this be a good ratio?

Calculate the Average Days Sales for Collecting Receivables.

If this companies terms are Net 15 on items it sells and its Average Days Sales for collecting those receivables is 39 days, should the company be concerned?

Calculate the Debt to Equity Ratio.

The ratio reflects that the company has used more debt than equity to finance the growth of the company.

Calculate the Profit Margin for the company.

Explain this Profit Margin Percentage. What does it mean?

Calculate the Earnings Per Share for the company.  (Net Income/Oustanding Shares)

Calculate the Price to Earnings Ratio.

If the industry Price to Earnings ratio is at 15, what could account for the difference from the industry average?

CAlculate

Beginning Retained Earnings $100,000

Dividends Paid for the Year $20,000

Net Loss for the Year $30,000

Based on the information above, the Ending Retained Earnings Balance will be?

Business Ethics, book Velasquez 7th edition, pg.113

People in West African countries, among the poorest in the world, survive on $ 1 a day and have a life expectancy of 46 years. But in 2004, Equatorial Guinea had a GDP ( Gross Domestic Product) of $ 4,472 per person, the highest in West Africa. In 1995, Equatorial Guinea found oil off its coast, and by 2004 ExxonMobil, Amerada Hess, and Marathon Oil all U. S. oil companies were helping that West African country produce $ 4 billion of oil revenues a year. Equatorial Guineas inexperienced government agreed to give 80 percent of these revenues to the oil companies that drilled the oil for them, although oil companies in developing nations usually take about 50 percent of revenues from oil projects. The oil companies channel through Riggs Bank, a 2004 Senate report revealed hundreds of millions of dollars to Equatorial Guineas president, T. Nguema, and his family for land purchases, security services, and office leases. A Department of Energy report says that because Nguema and his family run the government, the 20 percent of oil revenues that go to the government are spent on lavish personal expenditures, and so most oil money is concentrated in the hands of top government officials while the majority of the population remains poor. If Nguema had not been paid, of course, the Equatorial Guinea government would never have approved the oil project. ExxonMobil says it has spent $ 4 million and Marathon Oil and Amerado Hess claim to have invested millions of dollars on schools, libraries, programs for malaria, polio, and AIDS, health clinics, bridges, waterways, and electricity. A U. S. human rights report says Equatorial Guineas government violates citizens rights of free speech, of the press, of assembly, of due process, of association, of religion, and of movement and uses torture, beatings, and other physical abuse against political opponents.

1. What would utilitarianism, rights theory, and justice say about ExxonMobil, Amerada Hess, and Marathon Oil activities in Equatorial Guinea?

What would utilitarianism, rights theory, and justice say about these activities of Exxon Mobile, Amerada Hess, and Marathon Oil in Equatorial Guinea?

Some Accounting for Inventories questions I have:

1.

CAISCO Sales Inc. had a beginning inventory of May comprising of 700 units that had a cost of $80/unit. A summary of purchases and sales during the month of May are as follows:

If CAISCO Sales Inc. uses a periodic inventory system, which of the following statements is true?

CAISCO Sales Inc. must use the weighted average cost flow assumption since a perpetual inventory system is used.

CAISCO Sales Inc. must use the FIFO cost flow assumption since a periodic inventory system is used.

None of the other alternatives are correct

CAISCO Sales Inc.'s ending inventory will be higher if FIFO is used than if LIFO is used.

CAISCO Sales Inc.'s ending inventory consists of 1,200 units only if FIFO cost flow method IS assumed.

2.

Chime Inc. counted and valued its inventory using the first-in, first-out (FIFO) cost flow assumption at both December 31, 2004 and 2005 and reported these amounts on its financial statements. While there was no consignment inventory on hand at December 31, 2005, there was at December 31, 2004. If consignment inventory (inventory not belonging to Chime, but stored on its premises), had been inadvertently counted and included in the 2004 inventory valuation, the

inventory would have been understated at December 31, 2005

inventory would have been overstated at December 31, 2005

net income would have been understated in 2004

None of the other alternatives are correct

net income would have been understated in 2005

3.

For each example below, say whether the person is geographically mobile or immobile, and whether the person is occupationally mobile or immobile:

A) Christiano, a soccer player who will play for whatever team pays him the most

B) Shelly, who takes any low‐skilled job in town but doesn’t want to abandon her mother in the local nursing home

C) Adam, who maximizes his leisure time by working only 3 months per year by taking any high risk job out there

D) Diane, a very bad church organist who majored in organ who is afraid to leave her job because she probably couldn’t get hired anywhere else

E) Marta, a travel nurse