1. The goal of the needs assessment stage in the selling process is ____________________.

   		a. to maximize the fit between what the company can offer and the customer's needs
   		b. to figure out what competitors are offering the customer
   		c. to identify how much the potential customer is willing to pay
   		d. calculate the probability that the customer will end up buying from the company
   		e.decide how to best convince the buyer to buy the company's top-of-the line product

2. Online retailers of clothing often provide recommendations for additional products a customer should buy that would "complete the look." This is an example of _____________________________.   

   		a. cross-selling
   		b. referral selling
   		c. relationship selling
   		d. target selling
   		e. quota selling

3. The idea behind CRM (Customer Relationship Management) is that _______________________________.

   		1. customers must be managed in order for them to understand how services should be used
   		2. a company should build relationships with its stakeholder customers through the use of publicity
   		3. it is important to maximize short-term profit
   		4. knowing more about individual customers will help a company serve its customers better
   		5. customers should take a bigger role in creating products of the future

4. For which situation would personal selling be the most appropriate choice?

   		a. Facebook would like to encourage older consumers to use its service.
   		b. Coca-Cola would like to remind its customers to drink more soda.
   		c. Gatorade is launching a new organic sportsdrink.
   		d. Nike is launching a new sneaker.
   		e.GE Healthcare is selling medical equipment to hospitals.

Bradley-Link’s December 31, 2018, balance sheet included the following items:

Long-Term Liabilities

($ in millions) 7.0% convertible bonds, callable at 102 beginning in 2019, due 2022 (net of unamortized discount of $3) [note 8] $247

11.0% registered bonds callable at 105 beginning in 2028, due 2032 (net of unamortized discount of $1) [note 8] 56

Shareholders’ Equity 5 Equity—stock warrants

Note 8: Bonds (in part) The 7.0% bonds were issued in 2005 at 98.0 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond is convertible into 50 shares of the Company’s no par common stock.

The 11.0% bonds were issued in 2009 at 103 to yield 10%. Interest is paid semiannually on June 30 and December 31. Each $1,000 bond was issued with 50 detachable stock warrants, each of which entitles the holder to purchase one share of the Company’s no par common stock for $20, beginning 2019.

On January 3, 2019, when Bradley-Link’s common stock had a market price of $27 per share, Bradley-Link called the convertible bonds to force conversion. 90% were converted; the remainder were acquired at the call price. When the common stock price reached an all-time high of $32 in December of 2019, 40% of the warrants were exercised.

Required: 1. Prepare the journal entries that were recorded when each of the two bond issues was originally sold in 2005 and 2009.

2. Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2019 and the retirement of the remainder.

3. Assume Bradley-Link induced conversion by offering $130 cash for each bond converted. Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2019.

4. Assume Bradley-Link induced conversion by modifying the conversion ratio to exchange 55 shares for each bond rather than the 50 shares provided in the contract. Prepare the journal entry to record (book value method) the conversion of 90% of the convertible bonds in January 2019.

5. Prepare the journal entry to record the exercise of the warrants in December 2019.

Hogan Company uses the net method of accounting for sales discounts. Hogan offers trade discounts to various groups of buyers.

On August 1, 2021, Hogan factored some accounts receivable on a without recourse basis. Hogan incurred a finance charge.

Hogan also has some notes receivable bearing an appropriate rate of interest. The principal and total interest are due at maturity. The notes were received on October 1, 2021, and mature on September 30, 2022. Hogan’s operating cycle is less than one year.

Required:

1a. Using the net method, do sales discounts affect the amount recorded as sales revenue and accounts receivable at the time of sale?
1b. Using the net method, is there an effect on Hogan’s sales revenues and net income when customers do not take the sales discounts?
2. Do trade discounts affect the amount recorded as sales revenue and accounts receivable?
3. Should Hogan decrease accounts receivable to account for the receivables factored on August 1, 2021?
4. Hogan should report the face amount of the interest-bearing notes receivable and the related interest receivable for the period from October 1 through December 31 on its balance sheet as:

On January 1, 2018, Red Flash Photography had the following balances: Cash, $21,000; Supplies, $8,900; Land, $69,000; Deferred Revenue, $5,900; Common Stock $59,000; Retained Earnings, $34,000. During 2018, the company had the following transactions: February 15 Issue additional shares of common stock, $29,000. May 20 Provide services to customers for cash, $44,000, and on account, $39,000. August 31 Pay salaries to employees for work in 2018, $32,000. October 1 Purchase rental space for one year, $21,000. November 17 Purchase supplies on account, $31,000. December 30 Pay dividends, $2,900. The following information is available on December 31, 2018: Employees are owed an additional $4,900 in salaries. Three months of the rental space has expired. Supplies of $5,900 remain on hand. All of the services associated with the beginning deferred revenue have been performed.

1. Record the transactions that occurred during the year

2. Record the adjusting entries at the end of the year.

3. Prepare an adjusted trial balance.

4. Prepare an income statement, statement of stockholders’ equity, and classified balance sheet.

5.Prepare closing entries.

(journal entries)

Southern Alliance Company needs to raise $27 million to start a new project. The company has a target capital structure of 60 percent common stock, 11 percent preferred stock, and 29 percent debt. Flotation costs for issuing new common stock are 11 percent, for new preferred stock, 8 percent, and for new debt, 4 percent. What is the true initial cost figure Southern should use when evaluating its project?

IFRS - Accounting Questions

Write journal entries for the following series of foreign currency transactions:

a. On September 18, 2003, when the yen was valued at 225 to the dollar, a U.S. firm purchased transistors from a Japanese firm, and agreed to pay 6,750,000 yen on November 15, 2003.

b. On October 26, 2003, the same firm purchased leather goods from a Mexican company, agreeing to pay 4 million pesos on December 15, 2003. On October 26, 2003, one peso was worth $.004.

c. On November 24, 2003, the U.S. firm sold ?375,000 worth of cotton to a British firm when the pound was worth $1.45. Payment was to be received on January 15, 2004.

d. The following exchange rates prevailed on the dates below: __________________________________________________________________

November 15, 2003……………………………………………….$1.00 = 200 yen

December 15, 2003……………………………………………… $1.00 = 275 pesos

December 31, 2003……………………………………….………..$1.48 = 1 pound

January 15, 2004………………………………………..........……$1.42 = 1 pound

The market for a product has the following inverse demand and supply functions

P_d= 120 - Q_d

P_s   = 0.5Q_s.

1. Suppose the state government levies a tax of $15 on each unit sold, imposed on the consumers. Find the prices that consumers pay (Pd) and the producers receive (Ps) and the new quantity traded in the market, Q**. Show on your diagram.
2. What is the incidence of the tax on consumers and what on producers.
3. How much money does the state government collect as tax revenue? Calculate how much of the tax burden falls on the producers and how much on the consumers.
4. Find the new consumer and producer surplus. If there is a deadweight loss find it

A company employs plumbers to service, repair and replace pipes and other fittings for customers throughout the country. These plumbers are based at different locations. Four requests for service have been received and the company finds that four plumbers are available. The distances each of the plumbers is from the various customers are given in the following table. The company wishes to assign plumbers to customers to minimise the total distance to be travelled.

1. Using the Hungarian (manual) method, determine the optimal assignment of plumbers to customers in order to minimize the total distance travelled. Indicate this overall distance and show all working.                                                                              [12 marks]
2. Write an LP formulation that could be used to solve this problem with the relevant LP software packages.       [13 marks]

[TOTAL 25 MARKS]

QUESTION 4

A manufacturer of car transmissions wants to develop a cost estimate for a customer’s order for 25 transmissions. It is estimated that the first transmission will take 100 hours of shop time and an 80% learning curve is expected. Using the learning curve tables:-

1. How many labour-hours should the 25^th transmission require?                                 [5 marks]
2. How many labour-hours should the whole order for 25 transmission require?    [5 marks]
3. If the labour hour rate is $50 per hour and the pricing policy of the company is to double the labour costs of the order, what is the customer price for each transmission?     [6 marks]
4. Total Quality Management (TQM) can be an excellent quality management technique if properly implemente Discuss the obstacles associated with the implementation of TQM. [9 marks]

1) The following average SO2 concentrations per year were obtained in ppb (parts per billion):

2) The following data refer to the SO2 concentration time (t), temperature (T), relative humidity (RH) and atmospheric pressure (P) in the last 12 months:

Fit a multiple linear regression model to estimate the SO2 concentration in the coming months.