ITF 302 HOMEWORK GUIDELINES
You are required to conduct an analysis on Turkish Derivatives Market by emphasizing the following points
1- What is VIOP?
2- What is a derivative?
3- What are the underlying assets?
4- Why should I invest on the products at VIOP?
5- What are the hours that VIOP products can be traded?
6- How does margin and collateral work with products traded at VIOP?
7- What does it mean a “risky account”?
8- What is the tax treatment for profits and losses from derivatives transactions on VIOP contracts?
Important Points:
The report must be written in Times New Roman, 12 pt. and 1.5 line space and justified format. The minimum page for the report must be 3 without the references. You are required to add the references at the end of the report.

QUESTION 6: Case Study II [10 Marks]

Intellectual Property Rights and Computer Technology “Over the course of less than a decade, Facebook has morphed from a small, niche networking site for mostly Ivy League college students into a publicly traded company with a market worth of $148 billion in 2014 (up from $59 billion in 2013). Facebook boasts that it is free to join and always will be, so where’s the money coming from to service 1 billion worldwide subscribers? Just like its fellow tech titan and rival Google, Facebook’s revenue comes almost entirely from advertising. Facebook does not have a diverse array of hot new gadgets, a countrywide network of brick-and-mortar retail outlets, or a full inventory of software for sale; instead, it has your personal information, and the information of hundreds of millions of others with Facebook accounts. Facebook’s goal is to serve advertisements that are more relevant to you than anywhere else on the Web, but the personal information they gather about you both with and without your consent can also be used against you in other ways. Facebook has a diverse array of compelling and useful features. Facebook allows active-duty soldiers to stay in touch with their families; it gives smaller companies a chance to further their e-commerce efforts and larger companies a chance to solidify their brands; and, perhaps most obviously, Facebook allows you to more easily keep in touch with your friends. These are the reasons why so many people are on Facebook. However, Facebook’s goal is to get its users to share as much data as possible, because the more Facebook knows about you, the more accurately it can serve relevant advertisements to you. Facebook CEO Mark Zuckerberg often says that people want the world to be more open and connected. It’s unclear whether that is truly the case, but it is certainly true that Facebook wants the world to be more open and connected, because it stands to make more money in that world. Critics of Facebook are concerned that the existence of a repository of personal data of the size that Facebook has amassed requires protections and privacy controls that extend far beyond those that Facebook currently offers. Facebook wanting to make more money is not a bad thing, but the company has a checkered past of privacy violations and missteps that raise doubts about whether it should be responsible for the personal data of hundreds of millions of people. There are no laws in the BN201 - Professional Issues of IT - Final Assessment Trimester 2, 2020 Page 7 of 10 United States that give consumers the right to know what data companies like Facebook have compiled. You can challenge information in credit reports, but you can’t even see what data Facebook has gathered about you, let alone try to change it. It’s different in Europe: you can request Facebook to turn over a report of all the information it has about you. More than ever, your every move, every click, on social networks is being used by outside entities to assess your interests, and behavior, and then pitch you an ad based on this knowledge. Law enforcement agencies use social networks to gather evidence on tax evaders, and other criminals; employers use social networks to make decisions about prospective candidates for jobs; and data aggregators are gathering as much information about you as they can sell to the highest bidder. Facebook user’s friends are not notified if information about them is collected by that user’s applications. Many of Facebook’s features and services are enabled by default when they are launched without notifying users. And a study by Siegel+Gale found that Facebook’s privacy policy is more difficult to comprehend than government notices or typical bank credit card agreements, which are notoriously dense. Next time you visit Facebook, click on Privacy Settings, and see if you can understand your options. Facebook’s value and growth potential is determined by how effectively it can leverage the personal data it aggregated about its users to attract advertisers. Facebook also stands to gain from managing and avoiding the privacy concerns raised by its users and government regulators. For Facebook users that value the privacy of their personal data, this situation appears grim. But there are some signs that Facebook might become more responsible with its data collection processes, whether by its own volition or because it is forced to do so. As a publicly traded company, Facebook now invites more scrutiny from investors and regulators because, unlike in the past, their balance sheets, assets, and financial reporting documents are readily available. [Source: Brookshear. ICT Services Management (Custom Edition EBook), Pearson Education Australia, 2015. ProQuest Ebook Central, http://ebookcentral.proquest.com.] BN201 - Professional Issues of IT - Final Assessment Trimester 2, 2020 Page 8 of 10 Please answer the following questions:

1. Explain the ethical dilemma presented by the above case. [3 Marks]

2. Describe the weaknesses of Facebook’s privacy policies and features. [3 Marks]

3. Explain the management, organisation, and technology factors that have contributed to those weaknesses? [2 Marks]

4. Will Facebook be able to have a successful business model without invading privacy? Explain your answer.

Intelectual Property Rights and Computer Technology
“Over the course of less than a decade, Facebook has morphed from a small, niche networking site
for
mostly Ivy League college students into a publicly traded company with a market worth of $148 billion
in
2014 (up from $59 billion in 2013). Facebook boasts that it is free to join and always will be, so
where’s
the money coming from to service 1 billion worldwide subscribers? Just like its fellow tech titan and
rival
Google, Facebook’s revenue comes almost entirely from advertising. Facebook does not have a
diverse
array of hot new gadgets, a countrywide network of brick-and-mortar retail outlets, or a full inventory
of
software for sale; instead, it has your personal information, and the information of hundreds of
millions
of others with Facebook accounts. Facebook’s goal is to serve advertisements that are more relevant
to
you than anywhere else on the Web, but the personal information they gather about you both with
and
without your consent can also be used against you in other ways. Facebook has a diverse array of
compelling and useful features. Facebook allows active-duty soldiers to stay in touch with their
families; it
gives smaller companies a chance to further their e-commerce efforts and larger companies a chance
to
solidify their brands; and, perhaps most obviously, Facebook allows you to more easily keep in touch
with
your friends. These are the reasons why so many people are on Facebook. However, Facebook’s goal
is
to get its users to share as much data as possible, because the more Facebook knows about you, the
more
accurately it can serve relevant advertisements to you. Facebook CEO Mark Zuckerberg often says
that
people want the world to be more open and connected. It’s unclear whether that is truly the case,
but it is
certainly true that Facebook wants the world to be more open and connected, because it stands to
make
more money in that world. Critics of Facebook are concerned that the existence of a repository of
personal
data of the size that Facebook has amassed requires protections and privacy controls that extend far
beyond those that Facebook currently offers. Facebook wanting to make more money is not a bad
thing,
but the company has a checkered past of privacy violations and missteps that raise doubts about
whether
it should be responsible for the personal data of hundreds of millions of people. There are no laws in
the
BN201 - Professional Issues of IT - Final Assessment Trimester 2, 2020
Page 7 of 10
United States that give consumers the right to know what data companies like Facebook have
compiled.
You can challenge information in credit reports, but you can’t even see what data Facebook has
gathered
about you, let alone try to change it. It’s different in Europe: you can request Facebook to turn over
a
report of all the information it has about you. More than ever, your every move, every click, on social
networks is being used by outside entities to assess your interests, and behavior, and then pitch you
an ad
based on this knowledge. Law enforcement agencies use social networks to gather evidence on tax
evaders,
and other criminals; employers use social networks to make decisions about prospective candidates
for
jobs; and data aggregators are gathering as much information about you as they can sell to the
highest
bidder. Facebook user’s friends are not notified if information about them is collected by that user’s
applications. Many of Facebook’s features and services are enabled by default when they are
launched
without notifying users. And a study by Siegel+Gale found that Facebook’s privacy policy is more
difficult
to comprehend than government notices or typical bank credit card agreements, which are
notoriously
dense. Next time you visit Facebook, click on Privacy Settings, and see if you can understand your
options.
Facebook’s value and growth potential is determined by how effectively it can leverage the personal
data
it aggregated about its users to attract advertisers. Facebook also stands to gain from managing and
avoiding the privacy concerns raised by its users and government regulators. For Facebook users that
value
the privacy of their personal data, this situation appears grim. But there are some signs that Facebook
might become more responsible with its data collection processes, whether by its own volition or
because
it is forced to do so. As a publicly traded company, Facebook now invites more scrutiny from investors
and regulators because, unlike in the past, their balance sheets, assets, and financial reporting
documents
are readily available.
[Source: Brookshear. ICT Services Management (Custom Edition EBook), Pearson Education Australia,
2015. ProQuest
Ebook Central, http://ebookcentral.proquest.com.]
BN201 - Professional Issues of IT - Final Assessment Trimester 2, 2020
Page 8 of 10
Please answer the following questions:
1. Explain the ethical dilemma presented by the above case. [3 Marks]
2. Describe the weaknesses of Facebook’s privacy policies and features. [3 Marks]
3. Explain the management, organisation, and technology factors that have contributed to those
weaknesses?
[2 Marks]
4. Will Facebook be able to have a successful business model without invading privacy? Explain
your answer. [2 Marks]

Based on the information below create the year end income statement, balance sheet, and cash flow statement.

On January 2, 2003, Alexander, together with a number of relatives and friends, established Chemalite, Inc.; 500,000 shares were issued, of which Alexander received 125,000 in exchange for his patent, and the remainder were sold to the other investors at $1 per share. During the period January 2, 2003, through June 30, 2003, Chemalite, Inc., made the following expenditures:

• January 15—Paid $7,500 in legal fees, charter costs, and printing expenses associated with the incorporation of the company.
• June 15—Spent $62,500 building the machinery that would be used to produce the first commercial models of the Chemalite.
• June 24—Purchased $75,000 worth of plastics and chemicals for use in the production of commercial Chemalites. ‘

Between January 2 and June 30, the company’s bank balance had fallen from $375,000 to $230,000.

During the last half of 2003, Chemalite, Inc., did indeed go into full operation. To prepare for the shareholders’ meeting in early January 2004, Bill Murray, the firm’s recently hired bookkeeper, produced the following data:

1. In early July 2003, a consulting engineer delivered the prototypes of the Chemalite that he had been developing, and he was paid a total of $23,750.
2. During the six months from July to December 2003, Chemalite sold $754,500 of its product. The largest single purchaser, the auto parts distributor with whom Peterson had negotiated, still owed Chemalite, Inc., $69,500. All other customers’ accounts were paid in full by year- end.
3. Additional chemicals and plastics were purchased for a total of $175,000. All of these purchases were paid for in cash.
4. Chemalite, Inc., spent $22,500 on television and trade journal advertising to introduce the product.
5. During the six months ended December 31, 2003, the company expended $350,000 on direct manufacturing labor and on manufacturing-related overhead (rent, utilities, supervisory labor). An additional $80,000 was spent on corporate salaries and other corporate expenses.
6. In early July, a further $150,000 was spent on machinery to be used in the production of Chemalites.
7. During the period, the company had borrowed $50,000 for a short time and repaid the loan by year-end. The interest paid on the loan amounted to $750.

In preparing his state-of-the-corporation report, Alexander noted with some anxiety that the company’s bank balance had fallen a further $117,000 from the $230,000 reported in June to only $113,000. It bothered him because he believed that the company was really doing quite well, and he failed to understand why the bank account did not appear to reflect this condition. In surveying the cash outflows incurred by Chemalite, Inc., over the entire year, he noted the following:

1. The machinery used in the production of the Chemalites was general purpose machinery, not restricted to Chemalite production, that might reasonably be expected to last for 10 years—six months of which had already passed.
2. There was still a stock at December 31 of $55,000 worth of plastics and chemicals in the warehouse; however, there were no finished or partially finished Chemalites at yearend.
3. Although the patent that the company had acquired from Alexander had a legal life of 20 years, he expected competitors to develop equivalent products that did not use the patented technique in about five years.
4. Alexander was quite confused by the worth of the prototypes. They had directly resulted in the development of the product the company was presently selling, so perhaps their value had actually increased over the last six months of 2003.
5. The committee organizing The Olympic Games, Athens 2004, had placed a firm order with the company for 60,000 Chemalites at a price of $1.50 each. It was their intention to give a Chemalite to each person at the opening ceremony of the 2004 Olympic Games and to have athletes and fans light their Chemalites, symbolic of the Olympic flame.

Mastery Problem: Analyzing Transactions

KL Company Inc.

In February, Katie Long formed KL Company Inc. Transactions for the month of March have been posted to the T accounts. An intern has prepared a trial balance from the T accounts, but there seem to be some errors.

T accounts

Required:

Transactions

Descriptions of the transactions for the month of March are provided in the following table. Each of the transactions that follow has been posted to the T accounts. Referring to the T accounts, select the date on which each transaction occurred, enter the amount of the transaction, and select the account to debit and credit.

Trial Balance: Unequal Totals

The intern has prepared the following trial balance for the month of March.

Trial Balance: Correct

The Trial Balance: Unequal Totals was prepared by the intern. The intern is puzzled by the unequal totals. Prepare a corrected trial balance. If an amount box does not require an entry, leave it blank.

Errors on Trial Balance

Compare the trial balance prepared by the intern (Trial Balance: Unequal Totals) to the trial balance that you prepared (Trial Balance: Correct). In the following table, select the accounts for each type of error. Not all accounts contain errors.

Accounting Equation

The intern is puzzled and asks "Are you sure the accounting equation is still in balance?" Using the corrected trial balance you prepared, prove that the accounting equation is in balance.

Still puzzled, the intern asks "Why do none of the amounts in the accounting equation equal the totals on the trial balance?"

The following transactions were selected from the records of Evergreen Company:

July 12 Sold merchandise to Wally Butler, who paid the $1,140 purchase with cash. The goods cost Evergreen Company $670.

16 Sold merchandise to Claudio’s Chair Company at a selling price of $5,140 on terms 3/10, n/30. The goods cost Evergreen Company $3,570.

19 Sold merchandise to Otto’s Ottomans at a selling price of $3,070 on terms 3/10, n/30. The goods cost Evergreen Company $1,970.

23 Received cash from Claudio’s Chair Company for the amount due from Jul-16.

31 Received cash from Otto’s Ottomans for the amount due from July Jul-19. Find the revenue for the month of ended july 31.

Find the Revenue for the month ended july 31

The following information comes from the 2019 Annual Report of the Cola Company:
Accounts Receivable at 1/1/19 $ 3,141
Allowance for Uncollectible Acconts at 1/1/19 51
2019 Sales (assume all were on credit) 30,990
2018 Collections of cash from customers 30,289
Write off of Customer Accounts 22
2019 estimate of Uncollectible Accounts 26
Required:
Prepare t-accounts showing how the above activity flows through the Cola
Company's accounts. MAKE SURE TO SHOW THE ENDING BALANCE (Label "Balance"FOR EACH ACCOUNT)
Then answer the questions below the t-accounts.

5 t account chARTS

1 How much do Cola's customers owe the company as of 12/31/19?
2 How much does Cola expect NOT TO COLLECT from customers as of 12/31/19?
3 How much does Cola expect to collect from customers as of 12/31/19?

The number of hours worked per year per adult in a state is normally distributed with a standard deviation of 37. A sample of 115 adults is selected at random, and the number of hours worked per year per adult is given below. Use Excel to calculate the 98% confidence interval for the mean hours worked per year for adults in this state. Round your answers to two decimal places and use ascending order.

Number of hours
2250
1987
2029
2018
1938
2197
2099
2228
2245
1913
1903
2298
2231
2200
1902
2161
2211
2124
2082
2257
2087
2123
1929
1948
2124
2013
1973
2000
2030
1932
1993
2014
2118
1900
2195
2222
2035
2088
2010
1962
2166
1918
2070
2277
2114
1975
2045
2050
1921
2103
1954
2017
2235
1993
2156
1984
2057
2200
2133
2144
2145
2219
2222
2210
2143
2163
2168
2246
2186
1907
2072
2142
2187
2036
2207
2270
2262
2159
1914
1926
2261
2006
1948
2028
2256
2182
1955
1969
1941
1924
2176
2256
2051
2111
2221
2222
2190
2068
1942
2024
2258
2201
2085
2061
2004
2260
2136
2244
1989
1941
2297
2159
2260
2093
2293

State the method ( Winter's additive or multiplicative) which is the most accurate to forecast for 2018 according to the data set?

IAS 7 - CONSOLIDATED CASH FLOW

Assume that on 1 January 2003, HH Bhd (HHB) a parent company acquired 75% of interest in subsidiary SS Bhd (SSB). On that date the shareholders’ funds of SSB stood at RM700K. Assume that SSB is the only subsidiary that PPB has. An item of property plant and equipment (PPE) was found to be undervalued by RM40K and was subsequently revalued to its fair value. HHB had paid RM655K in cash. The following are the consolidated financial statement prepared by HHB for 2004 incorporating its subsidiary SSB.

Consolidated Statement of Comprehensive Income for the year ended 31 December 2004

Consolidated Statement of Financial Position as at 31 December 2004

Additional information:

(a) There is no impairment of goodwill recorded for the year.

(b). During current year, HHB paid RM400K dividend. SSB earned net income of RM600K and paid dividend of RM180K.

(c)   During the year, an item of machinery which had originally cost RM140K and had been depreciated RM60K was sold by HHB for RM68K. Another machine was immediately purchased for RM190K.

(d)   An investment which had originally cost RM80K was sold for RM96K cash.

(e)   An additional long term loan of RM50K was obtained during the year.

You are required to prepare:

a).     The worksheet for the preparation of a consolidated cash flow statement.

b).     The consolidated statement of cash flows for the year ended 31 December 2004.