Questions
Relate price changes in bond markets to price changes in stock markets. Explain why prices move...

Relate price changes in bond markets to price changes in stock markets. Explain why prices move or do not move together.

In: Economics

A single client is referred to you and you have determined that he has a net...

A single client is referred to you and you have determined that he has a net worth of $16,000,000 consisting of a house in his name worth $5,000,000, an investment account in his name alone worth $9,750,000 and a bank account in joint tenancy with his only child, 18-years-old, worth $1,250,000. In addition to this, he also has a life insurance policy with a face amount of $1,000,000, the beneficiary being his child.

He has asked you about gifts, death tax, probate costs and how to handle his life insurance. He is also considering a gift to his church.

What would you tell him to motivate him to act on your advice? What would your advice be? What more information might you want?

In: Accounting

A single client is referred to you and you have determined that he has a net...

A single client is referred to you and you have determined that he has a net worth of $16,000,000 consisting of a house in his name worth $5,000,000, an investment account in his name alone worth $9,750,000 and a bank account in joint tenancy with his only child, 18-years-old, worth $1,250,000. In addition to this, he also has a life insurance policy with a face amount of $1,000,000, the beneficiary being his child. He has asked you about gifts, death tax, probate costs and how to handle his life insurance. He is also considering a gift to his church.

What would you tell him to motivate him to act on your advice? What would your advice be? What more information might you want?

In: Accounting

Ms. R, a 25-year-old health care worker from Chicago, volunteered for work in Haiti with her...

Ms. R, a 25-year-old health care worker from Chicago, volunteered for work in Haiti with her church group following the earthquake. She observed a high incidence of measles in infants in the tent cities set up for survivors.

1. Identify factors that would promote the transmission of measles in this case.

2. For each factor, suggest at least one preventive measure that could be undertaken.

3. Analyze how host resistance been reduced in the Haitian population.

4. Appraise if Ms. R at risk for measles. Support your conclusions

5. Design a research project that includes three possible methods of study with the goal of reducing the incidence of measles transmission. Choose the method that you think may be most successful and provide your rationale for this choice.

In: Nursing

Are these items deductible or not deductible? a. Deductible b. Not deductible ____state income taxes ____Interest...

Are these items deductible or not deductible?

a. Deductible

b. Not deductible

____state income taxes

____Interest on a 2018 mortgage loan of $750,000

____Real estate taxes

____$67 in credit card interest

____$ 576 interest on a bank loan

____FICA withheld by employer

____federal gasoline tax

____federal excise tax

____loan fee for appraisal

____local income tax

____$500 to family physician (disregard limits)

____$2000 for long term care (disregard limits)

____$400 for eye glasses (disregard limits)

____$300 for maternity clothes

____$50 donation to your public library

____$250 donation to your church or mosque or synagogue

____$200 to a political party

____Personal property tax based on value of your property

____property tax you paid on your parent's property

____real estate taxes paid on your own property

In: Accounting

Which of the following best describes the process (in order) of how monetary policy effects the...

Which of the following best describes the process (in order) of how monetary policy effects the macroeconomy?

A. The 3 players have to cooperate, the aggregate demand changes, interest rate change, investment and consumption change and then the money supply changes.

B. The 3 players have to cooperate, the money supply changes, interest rate change, investment and consumption change, and then the aggregate demand changes.

C. They 3 players have to cooperate, interest rate change, the money supply changes, investment and consumption change and then the aggregate demand changes.

D. The money supply changes, interest rate changes, investment and consumption change, the aggregate demand changes, and then the 3 players have to cooperate.

In: Economics

Refer to the scenario to answer the following question(s): Unilever, the world’s second largest consumer goods...

Refer to the scenario to answer the following question(s):
Unilever, the world’s second largest consumer goods company, received a jolt in 2004 when its stock price fell sharply after management had warned investors that profits would be lower than anticipated. Even though the company had been the first consumer goods company to enter the world’s emerging economies in Africa, China, India, and Latin America with a formidable range of products and local knowledge, its sales faltered when rivals began to attack its entrenched position in these markets. Procter & Gamble’s (P&G) acquisition of Gillette had greatly bolstered P&G’s growing portfolio of global brands and allowed it to undermine Unilever’s global market share. For example, when P&G targeted India for a sales initiative in 2003–04, profit margins fell at Unilever’s Indian subsidiary from 20% to 13%.
An in-depth review of Unilever’s brands revealed that its brands were doing as well as were those of its rivals. Something else was wrong. According to Richard Rivers, Unilever’s head of corporate strategy, “We were just not executing as well as we should have.”
Unilever’s management realized that it had no choice but to make-over the company from top to bottom. Over decades of operating in almost every country in the world, the company had become fat with unnecessary bureaucracy and complexity. Unilever’s traditional emphasis on the autonomy of its country managers had led to a lack of synergy and a duplication of corporate structures. Country managers had been making strategic decisions without regard for their effect on other regions or on the corporation as a whole.
Starting at the top, two joint chairmen were replaced by one sole chief executive. In China, three companies with three chief executives were replaced by one company with one person in charge. Overall staff was cut from 223,000 in 2004 to 179,000 in 2008. By 2010, management planned close to 50 of its 300 factories and to eliminate 75 of 100 regional centers. Twenty thousand more jobs were selected to be eliminated over a four-year period. Ralph Kugler, manager of Unilever’s home and personal care division, exhibited confidence that after these changes, the company was better prepared to face competition. “We are much better organized now to defend ourselves,” he stated.

Questions:
1. What was the triggering event(s) in the case of Unilever? Elaborate.
2. Conduct the environmental scanning of Unilever through SWOT analysis,
emphasizing on the factors that were changed based on the management decisions.
3. Which Mintzberg’s mode of strategic decision making is adopted in the case of Unilever? Elaborate.
4. Discuss any 2 strategies used or might be used in the case. Elaborate.

In: Operations Management

Refer to the text to answer the following question(s). Unilever, the world’s second largest consumer goods...

Refer to the text to answer the following question(s).
Unilever, the world’s second largest consumer goods company, received a jolt in 2004 when its stock price fell sharply after management had warned investors that profits would be lower than anticipated. Even though the company had been the first consumer goods company to enter the world’s emerging economies in Africa, China, India, and Latin America with a formidable range of products and local knowledge, its sales faltered when rivals began to attack its entrenched position in these markets. Procter & Gamble’s (P&G) acquisition of Gillette had greatly bolstered P&G’s growing portfolio of global brands and allowed it to undermine Unilever’s global market share. For example, when P&G targeted India for a sales initiative in 2003–04, profit margins fell at Unilever’s Indian subsidiary from 20% to 13%.
An in-depth review of Unilever’s brands revealed that its brands were doing as well as were those of its rivals. Something else was wrong. According to Richard Rivers, Unilever’s head of corporate strategy, “We were just not executing as well as we should have.” Unilever’s management realized that it had no choice but to make-over the company from top to bottom. Over decades of operating in almost every country in the world, the company had become fat with unnecessary bureaucracy and complexity. Unilever’s traditional emphasis on the autonomy of its country managers had led to a lack of synergy and a duplication of corporate structures. Country managers had been making strategic decisions without regard for their effect on other regions or on the corporation as a whole. Starting at the top, two joint chairmen were replaced by one sole chief executive. In China, three companies with three chief executives were replaced by one company with one person in charge. Overall staff was cut from 223,000 in 2004 to 179,000 in 2008. By 2010, management planned close to 50 of its 300 factories and to eliminate 75 of 100 regional centers. Twenty thousand more jobs were selected to be eliminated over a four-year period. Ralph Kugler, manager of Unilever’s home and personal care division, exhibited confidence that after these changes, the company was better prepared to face competition. “We are much better organized now to defend ourselves,” he stated.
Questions:
1. What was the triggering event(s) in the case of Unilever? Elaborate.
2. Conduct the environmental scanning of Unilever through SWOT analysis,
emphasizing on the factors that were changed based on the management decisions.
3. Which Mintzberg’s mode of strategic decision making is adopted in the case of Unilever? Elaborate.
4. Discuss any 2 strategies used or might be used in the case. Elaborate.

In: Operations Management

Cisco Income Statements 2002 2001 2000 Sales 18,915 22,293 18,928 Cost of sales, reported 6,902 11,221...

Cisco Income Statements
2002 2001 2000
Sales 18,915 22,293 18,928
Cost of sales, reported 6,902 11,221 6,746
Gross margin 12,013 11,072 12,182
R&D 3,448 3,922 2,704
Sales and marketing 4,264 5,296 3,946
General and administrative 618 778 633
Restructuring charges --- 1,170 ---
Amortization of good will 690 154
Amortization of intagible assets 699 365 137
In-process R&D 65 855 1,373
total operating expenses 9,094 13,076 8,947
operating income from sales, before tax 2,919 -   (2,004) -   3,235
Investment income (209) 1,130 1,108
Income before tax 2,710 (874) 4,343
Taxes 817 140 1,675
Net income 1,893 -   (1,014) -   2,668
Cisco Balance Sheets
Assets 2002 2001 2000 1999
Current Assets:
Working Cash 9,484 4,873 4,234 913
Short-term investments 3,172 2,034 1,291 1,189
Accounts Receivable 1,105 1466 2299 1250
Inventories 880 1684 1232 658
Deferred tax assets 2,030 1809 1091 580
Lease receivables 239 405 -   -  
Prepaid expenses 523 564 963 171
total current assets 17,433 12,835 11,110 4,761
investments 8,800 10,346 13,688 7,032
restricted investments 1,264 1,286 1,080
Property and equipment 4,102 2,591 1,426 825
Goodwill 3,565 3,189 2,937 157
Lease receivables 39 253 527 500
Purchased intangibles 797 1,470 1,150 303
Other assets 3,059 3,290 746 235
Total assets 37,795 35,238 32,870 14,893
Liabilities
Current
Accounts payable 470 644 739 374
Income tax payable 579 241 233 630
Accrued compensation 1,365 1,058 1,317 679
Deferred revenue 3,892 3,214 1,386 724
Other accrued liabilities 2,496 2,553 2,653 631
Restructuring liabilities 322 386 --- ---
9,124 8,096 6,328 3,038
Minority interest 15 22 45 44
Common shareholders' equity 28,656 27,120 26,497 11,811
Cash Flow
Years Ended July 27, 2002 July 28, 2001 July 29, 2000
Cash flows from operating activities:
Net income (loss) $1,893.00 ($1,014.00) $2,668.00
Adjustments to reconcile net income (loss) to
net cash provided by operating activities:
Depreciation and amortization 1,957 2,236 863
Provision for doubtful accounts 91 268 40
Provision for inventory 149 2,775 339
Deferred income taxes ($573.00) ($924.00) ($782.00)
Tax benefits from employee stock option plans 61 1,397 2,495
Adjustment to conform fiscal year ends of pooled acquisitions - - ($18.00)
In-process research and development 53 739 1,279
Net (gains) losses on investments and provision for losses 1,127 43 ($92.00)
Restructuring costs and other special charges - 501 -
Change in operating assets and liabilities:
Accounts receivable 270 569 ($1,043.00)
Inventories 673 ($1,644.00) ($887.00)
Prepaid expenses and other current assets ($28.00) ($25.00) ($249.00)
Accounts payable ($174.00) ($105.00) 286
Income taxes payable 389 ($434.00) ($365.00)
Accrued compensation 307 ($256.00) 576
Deferred revenue 678 1,629 662
Other accrued liabilities ($222.00) 251 369
Restructuring liabilities ($64.00) 386 -
Net cash provided by operating activities 6,587 6,392 6,141
Cash flows from investing activities:
Purchases of short-term investments ($5,473.00) ($4,594.00) ($2,473.00)
Proceeds from sales and maturities of short-term investments 5,868 4,370 2,481
Purchases of investments ($15,760.00) ($18,306.00) ($14,778.00)
Proceeds from sales and maturities of investments 15,317 15,579 13,240
Purchases of restricted investments ($291.00) ($941.00) ($458.00)
Proceeds from sales and maturities of restricted investments 1,471 1,082 206
Acquisition of property and equipment ($2,641.00) ($2,271.00) ($1,086.00)
Purchases of technology licenses - ($4.00) ($444.00)
Acquisition of businesses, net of cash and cash equivalents 16 ($13.00) 24
Change in lease receivables, net 380 457 ($535.00)
Purchases of investments in privately held companies ($58.00) ($1,161.00) ($130.00)
Lease deposits 320 ($320.00) -
Purchase of minority interest of Cisco Systems, K.K. (Japan) ($115.00) ($365.00) -
Other 159 ($516.00) ($424.00)
Net cash used in investing activities ($807.00) ($7,003.00) ($4,377.00)
Cash flows from financing activities:
Issuance of common stock 655 1,262 1,564
Repurchase of common stock ($1,854.00) - -
Other 30 ($12.00) ($7.00)
Net cash (used in) provided by financing activities ($1,169.00) 1,250 1,557
Net increase in cash and cash equivalents 4,611 639 3,321
Cash and cash equivalents, beginning of fiscal year 4,873 4,234 913
Cash and cash equivalents, end of fiscal year $9,484.00 $4,873.00 $4,234.00

Analysis of Changes in

Profitability and Growth: Cisco Systems, Inc.

1

By any stretch of the imagination, Cisco System

s (CSCO) has been a strong growth company. A

darling of the Internet boom of

the late 1990s, it was one of the few technology companies tied to

the Internet and telecommunications

that prospered during that era.

Its products - networking and

communications equipment such as router and sw

itching devices - built the infrastructure of the

Internet. While most Internet

and telecommunications firms str

uggled and failed, their supplier,

Cisco, capitalized on the new technology. At one poi

nt in 2000, its market capitalization was over

half a trillion dollars, the largest market capitaliza

tion of any firm ever.

Its stock price increased

from $10 in 1995 to $80 in 2000, supported by sales growth from $2.0 billion in 1995 to $18.9

billion 2000.

In early 2000, Cisco’s P/E stood at 130 so investors

saw plenty of room for more earnings growth.

However, with the subsequent collapse

of the technology bubble

and the demise of

telecommunications firm such as WorldCom, Qwes

t, and AT&T, the anticipated growth failed to

materialize. Indeed, in 2001 Cisco wrote down

inventory by an astonish

ing $2.3 billion (under the

lower-of-cost-or-market rule), to reflect the dr

op in demand for its products and the emergence of

second-hand telecom equipment market.

Exhibit 1 presents Cisco’s income statements fo

r the fiscal years 2000-2002 and balance sheets for

1999-2002. The exhibit also includes

the cash flow from operations a

nd cash investing sections of

the cash flow statements. The 2000 sales of $18

.9 billion were up from $12.2 billion in 1999 and

$8.5 billion in 1998, a tremendous gr

owth record. But subsequent

sales growth was not as

impressive, as you can see, and led to declini

ng earnings. Indeed, Cisc

o posted a loss for 2001.

Lower earnings on increasing shareholders’ equity clea

rly implies that residual income is declining.

By the end of 2002, Cisco’s shares traded

at $15, well down from the 2000 high of $80.

Other information, most of the from the 10-K f

ootnotes, that was useful in reformulating the

financial statements is presented below. Note th

at the cash flow statements from Exhibit 1 are

particularly useful for identifying core income becau

se some of the items in the reconciliation of net

income to cash flow from operati

ng activities involve unusual items.

Questions:

1.

What adjustments are necessary to reformulate

the income statements and balance sheets to

properly separate financ

ing from operations?

2.

What adjustments are necessary to separate

core operations from othe

r sources of income?

What items are identified as

core in the Balance Sheet?

3.

Calculate Core RNOA and decompose the ratio for Cisco for 2002 and 2001.

In: Finance

2. How much life insurance do you need? Calculating needs - Part1 Jim and Kim Cuttner...

2. How much life insurance do you need? Calculating needs - Part1

Jim and Kim Cuttner are 52 years old and have one son, age 14. Jim is the primary earner, making $80,000 per year. Kim does not currently work. The Cuttners have decided to use the needs analysis method to calculate the value of a life insurance policy that would provide for Kim and their son in the event of Jim’s death.

Jim and Kim estimate that while their son is still living at home, monthly living expenses for Kim and their child will be about $3,300 (in current dollars). After their son leaves for college in 4 years, Kim will need a monthly income of $2,750 until she retires at age 65. The Cuttners estimate Kim’s living expenses after 65 will only be $2,300 a month. The life expectancy of a woman Kim’s age is 87 years, so the Cuttner family calculates that Kim will spend about 22 years in retirement.

Using this information, complete the first portion of the needs analysis worksheet to estimate their total living expenses.

Life Insurance Needs Analysis Worksheet

Name of insured Jim and Kim Cuttner Date July 31, 2015
Step 1: Financial resources needed after death
1. Annual living expenses and other needs
Period 1 Period 2 Period 3
a. Monthly living expenses $3,300
b. Net yearly income needed (1a x 12)
c. Number of years in time period 4 9 22
d. Total living needs per time period (1b x 1c)
Total living expenses (add Line 1d for each period to check your total): $1,062,600

In addition to these monthly expenses, other future outlays must be accounted for. Before they had a child, Kim worked as a real estate agent, but her knowledge and skills are now somewhat outdated. Therefore, they include $25,000 for Kim to go back to school. Additionally, Jim and Kim want to create a college fund of $30,000 to fund their child’s college education. They estimate that final expenses (funeral costs and estate taxes) will amount to $12,000. Finally, they have taken out a loan for home improvements of $130,000 and an automobile loan of $5,000. They own their home but still have an outstanding mortgage of $300,000.

Using this information, complete the next portion of Step 1 to determine the total financial resources needed.

2. Special needs
a. Spouse’s education fund
b. Child’s college fund
c. Other needs $0
3. Final expenses (funeral costs and estate taxes)
4. Debt liquidation
a. House mortgage
b. Other loans
c. Total debt (4a + 4b)
5. Other financial needs $0
Total financial resources needed (add right-hand column plus the Total Living Expenses you calculated):

In: Accounting