Anna Abraham is the accounts payable clerk for Jiffy Delivery Service. This company runs 10 branches in the San Diego area. The company pays for a variety of expenses. Anna writes the checks for each of the vendors and the controller signs the checks. Anna has decided she needs a raise and the controller has told her to wait for six months.
Anna has devised a plan to get a raise on her own. She creates a new vendor for her friend's business with the name John's Car Detailing. She also creates two purchase orders for car detailing service from John's for $75 and $70. She writes checks to John's Car Detailing to pay these invoices. She knows the controller will sign all checks only looking at the checks over $100. She delivers the checks to John who will deposit the checks in his bank account. John then writes a check to her for $145. Is this a good way for Anna to obtain a raise? Is it an ethical practice? Eventually what will be the effect of her actions? What can the company do to prevent this type of behavior?
In: Accounting
Mr Ahmed Kumar runs a snack distribution business located in the Light Industrial area in Lusaka. The following list of balances was extracted from his ledger as at 31 March, 2020; the end of his most recent financial year.
K
Capital 83,887
Sales 259,870
Trade accounts payable 19,840
Returns outwards 13,407
Allowance for doubtful debts 512
Discounts allowed 2,306
Discounts received 1,750
Purchases 135,680
Returns inwards 5,624
Carriage outwards 4,562
Drawings 18,440
Carriage inwards 11,830
Rent, rates and insurance 25,973
Heating and lighting 11,010
Postage, stationery and telephone 2,410
Advertising 5,980
Salaries and wages 38,521
Bad debts 2,008
Cash in hand 534
Cash at bank 4,440
Inventory as at 1st April 2019 15,654
Trade accounts receivable 24,500
Fixtures and fittings - at cost 120,740
Prov. for depreciation on fixtures and fittings – 31/03/2020 63,020
Depreciation 12,074
The following additional information as at 31st March, 2020 is available:
(a) Inventory at the close of business was valued at K17,750
(b) Insurances have been prepaid by K1,120
(c) Heating and lighting is accrued by K1,360
(d) Rates have been prepaid by K5,435
(e) The allowance for doubtful debts is to be adjusted so that it is 3% of trade accounts receivable.
Required:
For the year 2020, prepare Mr Kumar’s:
[10 Marks]
[10 Marks]
[10 Marks]
[10 Marks]
[Total: 40 Marks]
In: Accounting
Accounting for leases Kapiti Ltd runs a successful chain of fashion boutiques, but has been experiencing significant cash flow problems. The directors are examining a proposal made by an accounting consultant that all the shops currently owned by the company be sold and either leased back or the businesses moved to alternative leased shops. The directors are keen on the plan but are puzzled by the consultant’s insistence that all lease agreements for the shops be ‘operating’ rather than ‘finance’ leases.
Meanwhile, Scarlett Ltd agreed to lease their 5 buildings to Kapiti Ltd. The lease agreement details are as follows:
Length of lease 10 years Commencement date 1 July 2020 Annual lease payment, payable 1 July each year commencing 1 July 2020 ($120000 x 5) $600 000 Estimated economic life of the building 10 years Annual Interest rate implicit in the lease 10% The Chairman of the Board directed the Company Accountant to submit a detailed report on the above project.
Required A. Explain the difference between a finance lease and an operating lease.
B. Explain, by reference to the requirements of AASB 117, why the consultant prefers operating to finance leases.
C. Show how to record the lease of the buildings in the books of the Kapiti in accordance with AASB 6 as at 30 June 2021.
In: Accounting
Accounting for leases
Kapiti Ltd runs a successful chain of fashion boutiques, but has been experiencing significant cash flow problems. The directors are examining a proposal made by an accounting consultant that all the shops currently owned by the company be sold and either leased back or the businesses moved to alternative leased shops. The directors are keen on the plan but are puzzled by the consultant’s insistence that all lease agreements for the shops be ‘operating’ rather than ‘finance’ leases.
Meanwhile, Scarlett Ltd agreed to lease their 5 buildings to Kapiti Ltd.
The lease agreement details are as follows:
|
Length of lease |
10 years |
|
Commencement date |
1 July 2020 |
|
Annual lease payment, payable 1 July each year commencing 1 July 2020 ($120000 x 5) |
$600 000 |
|
Estimated economic life of the building |
10 years |
|
Annual Interest rate implicit in the lease |
10% |
The Chairman of the Board directed the Company Accountant to submit a detailed report on the above project.
Required
Show how to record the lease of the buildings in the books of the Kapiti in accordance with AASB 6 as at 30 June 2021.
In: Accounting
Assume that you are an independent auditor who runs
your own auditing firm. Salma Company was
your client last year who engage another independent auditor this
year because of some issues on
auditing fees. You know that Salma Company is having less profit
now because of competition with
Khalsa Company. Because of this reason, Salma Company wants to buy
Khalsa Company. Just two
months ago, Hajir Company became your new client. Hajir Company’s
previous auditor suddenly
had a heart attack, so the company came to you for audit services
and you accepted them. Today,
Hajir Company’s director came to you to discuss that they also
intend to buy Khalsa Company. The
director knows that there is another company who wants to buy
Khalsa Company too, but they are
not aware that it is Salma Company and they also don’t know that
you were Salma Company’s
previous auditor. When the meeting is over, you start to feel
uncomfortable. Since Hajir Company is
your new client, you want to help them and provide good service to
them. But you realise that you
also possess confidential information concerning the plans of your
previous client, Salma Company.
You are aware of Salma Company’s problems and you know it will help
Salma Company to recover
profits if they will acquire Khalsa Company.
Required: Explain your answer to the following questions:
1. Which fundamental ethical principles in ISA 200 will be affected
in this scenario? You can
explain more than one ethical principle, if applicable.
2. Can you disclose confidential information in this scenario?
Explain your opinion.
3. How will you protect your reputation as an independent
auditor?
4. What could be the possible course of action?
In: Accounting
Ashley runs a small business in Boulder, Colorado, that makes snow skis. She expects the business to grow substantially over the next three years. Because she is concerned about product liability and is planning to take the company public in year 2, she currently is considering incorporating the business. Pertinent financial data are as follows: Year 1 Year 2 Year 3 Sales revenue $150,000 $320,000 $600,000 Tax-free interest income 5,000 8,000 15,000 Deductible cash expenses 30,000 58,000 95,000 Tax depreciation 25,000 20,000 40,000 Ashley expects her combined Federal and state marginal income tax rate to be 25% over the three years before any profits from the business are considered. Her after-tax cost of capital is 10%, and the related present value factors are: for 2017, 0.8929; for 2018, 0.7972; and for 2019, 0.7118. Click here to access the tax table to use for this problem. Enter all amounts as positive numbers. When required, round your answers to the nearest dollar. a. Considering only these data, compute the present value of the future cash flows for the three-year period, assuming that Ashley incorporates the business and pays all after-tax income as dividends (for Ashley’s dividends that qualify for the 15% rate).
In: Accounting
Helena Lorimer runs a set of ice cream cafes that sell mainly three flavors of ice cream: vanilla, chocolate, and strawberry. Hot weather and high demand have caused her to run short of the main ingredients: milk, sugar, and cream. She has decided to make the best assortment of ice cream quantities in these three flavors and ration out the deliveries to the cafes.
She has collected data on the profitability of the various flavors, availability of supplies, and the amounts of ingredients required for each flavor.
|
Flavor |
Profit per Gallon |
Usage/Gallon |
||
|
Milk (gal.) |
Sugar (lbs.) |
Cream (gal.) |
||
|
Chocolate |
$1.00 |
0.45 |
0.50 |
0.10 |
|
Vanilla |
$0.90 |
0.50 |
0.40 |
0.15 |
|
Strawberry |
$0.95 |
0.40 |
0.40 |
0.20 |
|
Max available |
200 |
150 |
60 |
|
She wants to determine the optimal product mix for the Lorimer ice cream.
Let x1 = the # of gallons of Chocolate ice cream made
x2 = the # of gallons of Vanilla ice cream made
x3 = the # of gallons of Strawberry ice cream made
Max Z = $1.00x1 + $0.90x2 + $0.95x3
Subject To:
|
0.45x1 + 0.50x2 + 0.40x3 |
≤ 200 gal |
Milk Supply Constraint |
|
0.50x1 + 0.40x2 + 0.40x3 |
≤ 150 lbs |
Sugar Supply Constraint |
|
0.10x1 + 0.15x2 + 0.20x3 |
≤ 60 gal |
Cream Supply Constraint |
|
x1 |
≥ 0 gallons |
x1 Non-negativity Constraint |
|
x2 |
≥ 0 gallons |
x2 Non-negativity Constraint |
|
x3 |
≥ 0 gallons |
x3 Non-negativity Constraint |
Use your Excel spreadsheet model to answer the following question. Select the answer that best fits what you got. The answer options are not in any particular order.
What is the value of the X1 decision variable at the optimal solution?
Select one:
a. X1 = 50
b. X1 = 50 gallons
c. X1 = 75
d. X1 = 100
e. X1 = 150
f. X1 = 0
g. X1 = 0 gallons
h. X1 = 150 gallons
i. X1 = 75 gallons
j. X1 = 100 gallons
Please show me how to run in Excel in detail. I really want to understand how to do via Excel. Thank you. ASAP
In: Statistics and Probability
Chapter 5: Ground Rules of Metabolism
* Section 5.1 – Life Runs on Energy
o Describe what energy is (definition). Explain how this definition applies to life. Use a cell as an example. Use an entire organism as an example.
o What are the first and second law’s of thermodynamics? What does each one mean for life, from the perspective of a cell?
o Compare kinetic versus potential energy. How does life obtain potential energy?
* Section 5.2 – Energy in the Molecules of Life
o Interpret a chemical formula (just identify which are products, which are reactants)
o Explain activation energy. After defining it, explain what life does to deal with activation energy (hint: think enzymes)
* Section 5.3 – How Enzymes Work
o What is an enzyme? First, which macromolecule is it? Then, what does an enzyme do?
o How does an enzyme accomplish its job? (Read about induced fit model)
o What is a substrate?
* Section 5.4 – Metabolic Pathways
o Describe allosteric regulation
o Describe feedback inhibition
o What is an electron transfer chain?
* Section 5.5 – Cofactors and Coenzymes
o Define cofactor and coenzyme. What is the difference in the two?
o What does ATP stand for? Explain what about ATP gives it lots of energy.
o Explain what ADP is and how it is related to ATP
* Section 5.6 – Diffusion and Membranes
o Describe what diffusion is. Give an example
2 / 5
o Explain the factors that can affect the speed (rate) of diffusion. Most importantly, HOW do each of these factors cause a change in the rate of diffusion?
o Describe what osmosis is. How does this compare to diffusion?
* Hint – in osmosis, water will move across a membrane to dilute the concentrated side, since the solute cannot always move on its own by diffusion
o Define the terms hypotonic and hypertonic. If I were to give you the salt concentration, for example, inside a cell versus outside a cell, be able to state whether the solution outside the cell is hypotonic or hypertonic to the cell. Also, what is isotonic?
o Explain turgor, and how this term applies to wilting (think of how a cut flower will wilt out of water)
o Critical thinking regarding turgor and osmosis – think of a leftover salad. You have salad dressing on the salad, which is typically salty and concentrated so that it is flavorful. Can you link osmosis and turgor to the fact that salads do not stay fresh very long after they are dressed?
* Section 5.7 – Membrane Transport Mechanisms
o Compare passive transport versus active transport in a simple definition of the two.
* What is the cellular form of energy that active transport requires?
* How are membrane proteins important for active and passive transport?
* Section 5.8 – Membrane Trafficking
o Define phagocytosis. What sorts of molecules might a cell ingest, and why would the want to ingest such things?
In: Biology
to estimate the fuel efficiency of a new compact automobile, an engineer performed n=16 test runs and recorded the miles per gallon (mpg) for each run. the sample mean was 42.2 mpg with standard deviation 8.8.
a) construct a 99% confidence interval for the true mean mileage for this automobile.
- Lower limit= ?
-upper limit= ?
(please round your answers to 1 decimal place)
b) the manufacturer of this automobile claims that it gets 50mpg. Based on the confidence interval, do you think this is a reasonable claim? why or why not?
In: Statistics and Probability
Mr Ahmed Kumar runs a snack distribution business located in the Light Industrial area in Lusaka. The following list of balances was extracted from his ledger as at 31 March, 2020; the end of his most recent financial year.
K
Capital 83,887
Sales 259,870
Trade accounts payable 19,840
Returns outwards 13,407
Allowance for doubtful debts 512
Discounts allowed 2,306
Discounts received 1,750
Purchases 135,680
Returns inwards 5,624
Carriage outwards 4,562
Drawings 18,440
Carriage inwards 11,830
Rent, rates and insurance 25,973
Heating and lighting 11,010
Postage, stationery and telephone 2,410
Advertising 5,980
Salaries and wages 38,521
Bad debts 2,008
Cash in hand 534
Cash at bank 4,440
Inventory as at 1st April 2019 15,654
Trade accounts receivable 24,500
Fixtures and fittings - at cost 120,740
Prov. for depreciation on fixtures and fittings – 31/03/2020 63,020
Depreciation 12,074
The following additional information as at 31st March, 2020 is available:
(a) Inventory at the close of business was valued at K17,750
(b) Insurances have been prepaid by K1,120
(c) Heating and lighting is accrued by K1,360
(d) Rates have been prepaid by K5,435
(e) The allowance for doubtful debts is to be adjusted so that it is 3% of trade accounts receivable.
Required:
For the year 2020, prepare Mr Kumar’s:
[10 Marks]
[10 Marks]
[10 Marks]
[10 Marks]
[Total: 40 Marks]
In: Accounting