Current IT Trends: SIM Report of 2018

This article presents the major findings from the Society for Information Management’s (SIM) 2018 IT Trends Study. IT spending as a percentage of revenue is up sharply to 6.08% over last year’s 5.04% and the ten-year average of 4.55%. Correspondingly, 74.0% of organizations report increases in their IT budgets compared to 71.0% last year. Most of this spending is on people: 49.1 % is spent on Employees, Contractors, and Consultants; 39.3 % on Hardware, Software, and Facilities; and 11.6 % on Cloud Computing and Other. Hiring is increasing, with 61.3% of organizations increasing their hiring this year and 70.0% predicting increased hiring in 2018. Also, 94.8 % of the organizations report granting IT salary raises this year. In the areas of overlapping budget categories, “Keeping the IT Lights On” is the largest, followed by Software Development & Maintenance, IT Capital Investment, Outsourcing, Cybersecurity, and Business Analytics. In terms of new IT capital investments, organizations are investing in Business Analytics, followed by Security, Cloud, Application Development, and ERPs. Despite the spending, however, it appears that more organizations could and should be doing more about cybersecurity.

Question for Discussion:

Based on the attached SIM IT Concerns Survey discuss the following:

1. Which of the top 10 concerns would you rate as the top 3 and why?

2.What are the reasons for the new concerns added in the latest survey? Do you agree and why?

3.Which of the 10 Most Worrisome would you rate as top 3 and why?

4. Based on your reading of the findings of the SIM IT Trends Report and your own understanding of the field how would you as a CIO prepare for and respond to these issues and trends?

Submit a 2-page write up on the above.

Fletcher Fabrication, Inc., produces three products by a joint production process. Raw materials are put into production in Department X, and at the end of processing in this department, three products appear. Product A is sold at the split-off point with no further processing. Products B and C require further processing before they are sold. Product B is processed in Department Y, and product C is processed in Department Z. The company uses the estimated net realizable value method of allocating joint production costs. Following is a summary of costs and other data for the quarter ended June 30.

No inventories were on hand at the beginning of the quarter. No raw material was on hand at June 30. All units on hand at the end of the quarter were fully complete as to processing.

Required:

a. Determine the following amounts for each product: (Do not round intermediate calculations.)

(1) Estimated net realizable value used for allocating joint costs.

(2) Joint costs allocated to each of the three products.

(3) Cost of goods sold.

(4) Finished goods inventory costs, June 30.

b. Assume that the entire output of product A could be processed further at an additional cost of $6.00 per pound and then sold for $12.90 per pound. Compute the incremental income from further processing A.

c. Considering the results of part b, should the company process product A further?

Fletcher Fabrication, Inc., produces three products by a joint production process. Raw materials are put into production in Department X, and at the end of processing in this department, three products appear. Product A is sold at the split-off point with no further processing. Products B and C require further processing before they are sold. Product B is processed in Department Y, and product C is processed in Department Z. The company uses the estimated net realizable value method of allocating joint production costs. Following is a summary of costs and other data for the quarter ended June 30. No inventories were on hand at the beginning of the quarter. No raw material was on hand at June 30. All units on hand at the end of the quarter were fully complete as to processing. Products A B C Pounds sold 21,000 63,000 71,000 Pounds on hand at June 30 45,000 0 44,000 Sales revenues $ 52,500 $ 302,400 $ 372,750 Departments X Y Z Raw material cost $ 163,000 $ 0 $ 0 Direct labor cost 71,000 93,000 282,000 Manufacturing overhead 28,000 31,900 104,500 Required: a. Determine the following amounts for each product: (Do not round intermediate calculations.) (1) Estimated net realizable value used for allocating joint costs. (2) Joint costs allocated to each of the three products. (3) Cost of goods sold. (4) Finished goods inventory costs, June 30. b. Assume that the entire output of product A could be processed further at an additional cost of $5.60 per pound and then sold for $12.20 per pound. Compute the incremental income from further processing A. c. Considering the results of part b, should the company process product A further? Yes No

Fletcher Fabrication, Inc., produces three products by a joint production process. Raw materials are put into production in Department X, and at the end of processing in this department, three products appear. Product A is sold at the split-off point with no further processing. Products B and C require further processing before they are sold. Product B is processed in Department Y, and product C is processed in Department Z. The company uses the estimated net realizable value method of allocating joint production costs. Following is a summary of costs and other data for the quarter ended June 30.

No inventories were on hand at the beginning of the quarter. No raw material was on hand at June 30. All units on hand at the end of the quarter were fully complete as to processing.

Required:

a. Determine the following amounts for each product: (1) estimated net realizable value used for allocating joint costs, (2) joint costs allocated to each of the three products, (3) cost of goods sold, and (4) finished goods inventory costs, June 30.

b. Assume that the entire output of product A could be processed further at an additional cost of $5.80 per pound and then sold for $12.30 per pound. Compute the incremental income from further processing A.

c. Considering the results of part b, should the company process product A further?

Fletcher Fabrication, Inc., produces three products by a joint production process. Raw materials are put into production in Department X, and at the end of processing in this department, three products appear. Product A is sold at the split-off point with no further processing. Products B and C require further processing before they are sold. Product B is processed in Department Y, and product C is processed in Department Z. The company uses the estimated net realizable value method of allocating joint production costs. Following is a summary of costs and other data for the quarter ended June 30.

No inventories were on hand at the beginning of the quarter. No raw material was on hand at June 30. All units on hand at the end of the quarter were fully complete as to processing.

Required:

a. Determine the following amounts for each product: (Do not round intermediate calculations.)

(1) Estimated net realizable value used for allocating joint costs.

(2) Joint costs allocated to each of the three products.

(3) Cost of goods sold.

(4) Finished goods inventory costs, June 30.

b. Assume that the entire output of product A could be processed further at an additional cost of $5.90 per pound and then sold for $12.60 per pound. Compute the incremental income from further processing A.

Suppose we would like to compare spending based on income group: Low, Middle, and High. The Y-variable is "spending (dollars)" and the x-variable is "Income Group (low/middle/high)."

Suppose the p-value for this ANOVA is 0.00002

What do we conclude?

Question 8 options:

The average spending is the about the same for all three income groups.

Income group is not correlated with spending.

The high income group had the highest average spending.

The average spending for one of the income groups is different from the average spending of another income group.

The average spending is different for each income group; there is a group with the highest average spending, there is a group in the middle, and there is a group with the lowest average spending (i.e. there are no two groups whose average spending are about the same).

On January 1, 2021, Taco King leased retail space from Fogelman Properties. The 10-year finance lease requires quarterly variable lease payments equal to 2% of Taco King’s sales revenue, with a quarterly sales minimum of $490,000. Payments at the beginning of each quarter are based on previous quarter sales. During the previous 5-year period, Taco King has generated quarterly sales of over $695,000. Fogelman’s interest rate, known by Taco King, was 8%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:
1. Prepare the journal entries for Taco King at the beginning of the lease at January 1, 2021.
2. Prepare the journal entries for Taco King at April 1, 2021. First quarter sales were $705,000. Amortization is recorded quarterly.

Please fill in payment of account and total for Q1.

The Sepulcro Corporation’s purchases from suppliers in a quarter are equal to 65 percent of the next quarter’s forecast sales. The payables period is 60 days. Wages, taxes, and other expenses are 20 percent of sales, and interest and dividends are $113 per quarter. No capital expenditures are planned. Projected quarterly sales are:
  

  
Sales for the first quarter of the following year are projected at $1,590.
  
Calculate the company’s cash outlays by completing the following: (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

On January 1, 2018, Taco King leased retail space from Fogelman Properties. The 10-year finance lease requires quarterly variable lease payments equal to 3% of Taco King’s sales revenue, with a quarterly sales minimum of $460,000. Payments at the beginning of each quarter are based on previous quarter sales. During the previous 5-year period, Taco King has generated quarterly sales of over $680,000. Fogelman’s interest rate, known by Taco King, was 4%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entries for Taco King at the beginning of the lease at January 1, 2018. 2. Prepare the journal entries for Taco King at April 1, 2018. First quarter sales were $690,000. Amortization is recorded quarterly.

A consumer allocates all of her income between two goods, food and clothing, with the quantity of food consumed captured by the variable F while that of clothing by the variable C. The consumer has usual strictly convex preferences between the two goods. Assume that food is an inferior good and it is kept on the horizontal axis.

Suppose that the consumer’s income remains unchanged but prices of both of these goods change.

The price changes you need to examine is assume that both prices fall with price of food falling by a higher percentage relative to clothing.

(a)

State the impact of the price changes you are required to examine on the relative price of food.

(b)

Determine whether clothing should be treated as a normal or inferior good and explain your answer.

(c)

Now proceed with doing a geometric analysis to portray one case that is logically consistent with the price change scenario you need to examine as specified in (a). In doing so, illustrate and explain how the consumer’s optimal bundle might change in response to the cumulative impact of these price changes.

(d)

Comment on whether the direction of total change in optimal quantities of food and clothing that you have shown in your diagram for part (c) are the only logically consistent possibilities. Or, is it also possible that changes could also be in the opposite direction? Explain your answer. You do not need to do additional diagrammatic analysis to answer this part.