3.1 Radical Rewrite: Improving a Message About Checking References

Your Task. Analyze the following e-mail to be sent by the vice president of human resources to all managers:

• Step 1: Identify five or more weaknesses describing why each is a weakness. In addition to grammar faults, pay special attention to dangling modifiers, parallelism, and passive voice.
• Step 2: Revise this e-mail so that it reflects writing techniques you learned in this and previous chapters.

To:           All Managers

From:          Mark Sanchez <marksanchez@zycamindustries>

Subject: Improving Reference-Checking Procedures

With our recent increase in hiring, many of you are reviewing candidates’ applications and their references are being checked. Our CEO has asked me to provide all managers with guidance on how to check references to obtain the best information.

Generally, the two ways to check references are by calling or to make an inquiry by writing. Calling is preferred because its easier, can be done more quickly, and calling can reveal more. The main advantage of calling is that people will often provide more valuable information over the phone then they would in writing. However writing does provide stronger documentation. Which can be used to prove that you did your homework. References from former employers are likely to be more valuable than personal references, and can help avoid negligent hiring claims. Educational references should also checked when necessary

When calling to check references, several important steps should be followed to obtain the best information:

• Call once to schedule the reference check, then call back when you said you would.
• Plenty of time for the call should be allotted.
• Ask only about job-related information, do not ask inappropriate questions.
• Good notes should be taken, especially in relation to the candidate’s former employment.
• At the end, you should summarize and thank the reference for the information.

By following these guidelines, meaningful information can be obtained that will help you make the best hiring decisions.

Mark

Vice President, Human Resources | mark.sanchez@zycamindustries | Office: 455-390-5539 | Cell: 455-290-9760

Please don not copy solutions in the text book .

At December 31, 2020, Bouvier Corp. has assets of $10 million, liabilities of $6 million, common shares of $2 million (representing 2 million common shares of $1.00 par), and retained earnings of $2 million. Net sales for the year 2020 were $18 million, and net income was $800,000. As one of the auditors of this company, you are making a review of subsequent events on February 13, 2021, and you find the following.

1)

On February 3, 2021, one of Bouvier's customers declared bankruptcy. At December 31, 2020, this company owed Bouvier $300,000, of which $40,000 was paid in January 2021.

2

On January 18, 2021, one of the client's three major plants burned. Bouvier has fire insurance coverage.

3

On January 23, 2021, a strike was called at one of Bouvier's largest plants and it halted 30% of production. As of today (February 13), the strike has not been settled.

4)

A major electronics enterprise has introduced a line of products that would compete directly with Bouvier's primary line, now being produced in a specially designed new plant. Because of manufacturing innovations, the competitor has been able to achieve quality similar to that of Bouvier's products, but at a price 30% lower. Bouvier officials say they will meet the lower prices, which are barely high enough to cover variable and fixed manufacturing and selling costs.

5)

Merchandise traded in the open market is recorded in the company's records at $1.40 per unit on December 31, 2020. This price held for two weeks after the release of an official market report that predicted vastly excessive supplies; however, no purchases were made at $1.40. The price throughout the preceding year had been about $2.00, which was the level experienced over several years. On January 18, 2021, the price returned to $2.00 after public disclosure of an error in the official calculations of the prior December—the correction erased the expectations of excessive supplies. Inventory at December 31, 2020, was on a lower of cost and net realizable value basis.

6)

On February 1, 2021, the board of directors adopted a resolution to accept the offer of an investment banker to guarantee the marketing of $1.2 million of preferred shares. The company owns equity investments classified as current assets accounted for using the fair value through net income model. The investments have been adjusted to fair value as at December 31, 2020.

7

On January 21, 2021, the annual report of one of the investment companies has been issued for its year ended November 30, 2020. The investee company did not meet its earnings forecasts and the market price of the investment dropped from $49 per share at December 31, 2020, to $27 per share on January 21, 2021

Instructions

For each event, state how it will affect the 2020 financial statements, if at all. The company follows IFRS

For the following independent situations, assume you are the audit partner and have raised these issues with management as appropriate.

What audit opinion would you recommend (unmodified, qualified, adverse, or disclaimer), and explain what factors have caused this recommendation.

Question 5 continued next page

Question 5 (continued)

1.

a) How is the fair value of a Forward Contract determined by U.S. GAAP?

b) Yelton Co. just sold inventory for 80,000 euros, which Yelton will collect in sixty days. Briefly describe a hedging transaction Yelton could engage in to reduce its risk of unfavorable exchange rates

. c) What happens when a U.S. company sells goods denominated in a foreign currency and the foreign currency depreciates?

What is the mission of the CEO IN  HEALTHCARE

Identify the kind of problem with the following questions:

1. Do you know the day of the week when you joined your job?
2. Don’t you think that employees should be paid bonus for this quarter?
3. Do you agree that disabled employees should be laid off?
4. To what extent do you believe that MBA is a challenging course and is related to your job?

Q7. Marketing management is described as a total organizational activity which calls for a total corporate effort for business sustainability. As a Business Development Manager of your firm, identify and assess five (5) contributions of Marketing in growing and sustaining the business.

(Please the Expert needs to submit a detailed answer which must be a standout in a very competitive MBA Marketing Class).

XYZ Medical Ltd a Melbourne based company enters into a non-cancellable purchase commitment of US$50,000 with an American supplier on 1 April 2020 to buy the face masks in a bulk for medical staff. These face masks are to be shipped on the 1st of May 2020. The amount owing on the purchase is payable on 31 July 2020. XYZ Ltd observed that exchange rate is very volatile due to the current trade war between America and China. XYZ decided to enter into a forward rate contract. On 1 April 2020 a forward-exchange contract for US$50,000 as taken out with Westpac Bank Ltd at a cost of $76 923 (which is US$50,000 ÷ 0.65 with AU$1.00 = US$0.65 being the agreed forward rate). XYZ Ltd uses cash flow hedge accounting and its reporting date is 30 June. Date Spot rate Forward rate 1 st April 2020 0.67 0.65 1 st May 2020 0.61 0.59 30th June 2020 0.55 0.57 31st July 2020 0.64 0.64 Required: i. Calculate the gain or loss on the forward contract for each significant date. ii. Prepare the journal entries to account for the transactions including 31/7/2020.

Multiple Choice

• U.S. Treasury bills

• Long-term government bonds

• Small-company stocks

• Long-term corporate bonds

• Large-company stocks