Culver Corporation had the following long-term receivable account balances at December 31, 2019.

Transactions during 2020 and other information relating to Culver's' long-term receivables were as follows:

Click here to view the factor table PRESENT VALUE OF 1.
Click here to view the factor table PRESENT VALUE OF AN ANNUITY OF 1.

The tables in this problem are to be used as a reference for this problem. (For calculation purposes, use 5 decimal places as displayed in the factor table provided.)

Describe the relevant cash flows in terms of amount and timing.

Determine the amount of interest income that should be reported in 2020. (Round answers to 0 decimal places, e.g. 8,971.)

Determine the portion of the note and any interest that should be reported in current assets at December 31, 2020. (Round answers to 0 decimal places, e.g. 9,871. Do not leave any answer field blank. Enter 0 for amounts.)

Determine the portion of the note that should be reported as a long-term investment at December 31, 2020. (Round answers to 0 decimal places, e.g. 8,971.)

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Prepare the long-term receivables section of Culver's statement of financial position at December 31, 2020. (Round answers to 0 decimal places, e.g. 8,971.)

Prepare a schedule showing the current portion of the long-term receivables and accrued interest receivable that would appear in Culver's's statement of financial position at December 31, 2020. (Round answers to 0 decimal places, e.g. 8,971.)

Jacob works for a large US corporation that has operations in more than 30 countries. Currently there is conflict among the international managers, as they feel that they are not being compensated fairly and claim that US managers like Jacob are paid more because the y come from countries with a higher cost of living. The firm is deciding whether to not to equalize the pay for all managers regardless of country of origin. What type of staffing policy does this company have in place?

a) polycentric

b) geocentric

c) ethnocentric

d) domestic

e) regional

Who Pays, who Provides and who Measures US Healthcare?

The costs of healthcare are higher in the United States compared to any other developed country in the world, but this does not equate to best health status for our populations (OECD, 2018).

1. Who pays for US Healthcare?
2. Who provides US Healthcare Services?
3. Who measures healthcare service results (quality of life years (QALY) disability of life years (DALY)?

Please cite all resources used to obtain your answers.

Resources:

CDC. (2018). Health People 2020. https://www.cdc.gov/nchs/healthy_people/hp2020.htm

CMS. (2018). CMS Innovations. https://innovation.cms.gov/

NACCHO. (2018) Directory of Public Health Services. https://www.naccho.org/membership/lhd-directory

OECD. (2018). Health at a Glance (2017). http://www.oecd.org/health/health-systems/health-at-a-glance-19991312.htm

. Why does Porsche hedge its foreign exchange exposure? Does it make sense, from the perspective of shareholders, for Porsche to hedge? Does it make sense from management’s perspective? Are there potential differences in interest between management and shareholders regarding the hedging policy? 2. Suppose it is end of November 2007, and Porsche reviews its hedging strategy for the cash flows it expects to obtain from vehicle sales in North America during the calendar year 2009. Assume that Porsche entertains three scenarios: The expected volume of North American sales in 2009 is 32,750 vehicles. The low-sales scenario is 30% lower than the expected sales volume, and the high-sales scenario is 30% higher than the expected sales volume. Assume, in each scenario, that the average sales price per vehicle is $90,000 and that all sales are realized at the end of November 2009. All variable costs incurred by producing and shipping an additional vehicle to be sold in North America in 2009 are billed in € and amount to €60,000 per vehicle. Characterize how Porsche’s € cash flows, net of variable costs, obtained from its North American sales depend on the spot exchange rate that prevails at the end of November 2009, if: a. Porsche does not hedge its currency exposure at all; b. Porsche hedges by selling forward US$ equal to the amount of expected 2009 sales with a two-year forward contract; c. Porsche hedges by buying two-year European at-the-money put options on US$ (providing to Porsche the right to sell US$, receiving €, at the strike exchange rate) in sufficient quantity to have the right to sell an amount of US$ equal to expected 2009 sales. 3. Based on your analysis of question 2, what’s your view on the foreign exchange hedging strategy and the hedging instruments chosen by Porsche? If you were Porsche’s CEO, would you implement a different strategy? If yes, why? If no, why not? 4. How might Porsche’s ownership structure influence the hedging strategy pursued by management? 5. Do you think Porsche’s strategy of using options to acquire a stake in VW (instead of buying stocks directly) is a sensible one? Or do you agree with the critics who argued that Porsche was speculating with shareholders’ money and that it had become a “hedge fund” that neglected its core business?

Bramble Company manufactures a line of lightweight running shoes. CEO Mark Bramble estimated that the company would incur $3,412,240 in manufacturing overhead during the coming year. Additionally, he estimated the company would operate at a level requiring 221,000 direct labor hours and 598,639 machine hours.

1) Assume that Bramble Company uses direct labor hours as its manufacturing overhead application base. Calculate the company’s predetermined overhead rate. (Round answer to 2 decimal places, e.g. 52.75.)

2) Assume that job 4375 required 400 direct labor hours to complete. How much manufacturing overhead should be applied to the job? (Round answer to 0 decimal places, e.g. 5,275.)

3) Assume that Bramble Company uses machine hours as its manufacturing overhead application base. Calculate the company’s predetermined overhead rate. (Round answer to 2 decimal places, e.g. 52.75.)

4)
Assume that job 4375 required 630 machine hours to complete. How much manufacturing overhead should be applied to the job? (Round answer to 0 decimal places, e.g. 5,275.)

Marilyn Edwards is the CEO of a mid-sized proprietary limited company. This company operates its business both online and at physical outlets. The business has been enjoying consecutive growth both in sales and profit for the last seven years. However, compared to the growth of sales net, operating profit growth seems lower. Marilyn appointed an analyst to explore the reasons for this inconsistency. The analyst came up with many interesting findings including:

• the business has been suffering from chronic physical inventory theft which has not been properly recorded and reported in a timely manner,
• preparation of management reports is taking a longer time,
• response time to customers’ queries is too high,
• information systems have been facing tremendous security threat, etc.

In addition, the present accounting systems are both inefficient and expensive. Due to these reasons, operating costs of the business are too high. This has contributed to making the difference between the growth of sales and net operating profit. The analyst has suggested redesigning the whole accounting process with a contemporary integrated accounting solution for the business.

Marilyn Edwards has taken the issue to the board and has decided to appoint you to implement an efficient automated accounting information systems. As you have technical knowledge, you need to give a detailed plan about the new efficient information system including its possible cost and benefits. In addition, if the project plan is approved you need to implement this information system as project in-charge for the business.

Assessment Tasks:

Answer all questions below:

1. Discuss the potential advantages, both tangible and intangible, the business can enjoy from implementing this system. Also give an analysis on the potential costs to implement the systems. How will you measure those relevant costs and benefits?

2. In doing a preliminary survey for the proposed automation of a new system you reached the tentative conclusion that some of the popular accounts and finance people with more than ten years of company service, will be displaced and perhaps asked to consider early retirement. Discuss how this scenario relates to the concept of “operational feasibility”. Discuss the potential impact on the success of the new system.                                                                                                                              

3. In implementing the automation systems, you are thinking to establish an in-house data centre. You need to submit a proposal comparing and contrasting the efficiency and effectiveness of an in-house data centre with an arrangement with an outsourcing vendor to own and operate a data centre for you, a service bureau, an applications service provider (ASP), Business Process Outsourcing (BPO), and software as a service (SaaS).                                                                                                                              

4. Upon completion of the system, how might you be involved in system testing? In answering this part, you assume that you are the manager of an accounts receivable department. Discuss in detail.
                                                                                                                                             

5. What mechanism do you want from the system developer so that efficient internal control is ensured? Also give your suggestions to ensure the cyber security of the business transaction.                                                                                                   

6. What implementation strategy should the company adopt to bring new information systems in practice? Explain with potential risk and benefits.                           

You are an Audit Senior currently planning the 30 June 20X8 audit of Almond Limited, an Australian-owned company that produces and exports Almond milk to China. The milk is subjected to ultra-high temperature (UHT) pasteurization processing before being packaged in cartons so that it can last six months at ambient temperatures if unopened. At a recent planning meeting with Almond Limited’s senior staff, you obtained the following overview of this year’s operations: Tight checks by Australian custom officials have delayed several shipments of Almond milk. These delays have angered Chinese customers who are threatening to deduct 20% from the amounts owing as compensation for lost production time. Almond Limited’s main competitor, Tasty Milk has taken advantage of this and started supplying to the Chinese market from its New Zealand branch for quicker deliveries and at prices lower than those offered by Almond Limited. One of Almond Limited’s customers, Super Dairy Limited (SDL), is claiming that the latest batch of milk it received was found to have very high levels of carrageenan, a seaweed derivative commonly used as a stabilizer in beverages. The presence of carrageenan has been widely associated with gastrointestinal inflammation. SDL is refusing to pay its account, which is allegedly six months overdue. Almond Limited has claimed to have launched an investigation into the allegations, but as yet not been able to substantiate them. 60% of the suppliers from which Almond Limited sources it’s almonds are owned by US firms, which demand payment in $US prior to the almonds being supplied. In January, Almond Limited upgraded its accounts payable system to a fully integrated package that automatically updates the general ledger when creditor entries are made. Some problems have been experienced with the creditors ledger, which is split into $US and $AUD amounts. In some cases, $US amounts have been recorded as $AUD, resulting in inaccurate creditor balances. Month-end rollovers have also proved problematic, with creditor balances being incorrectly reset to zero at the first of every month. This has required each creditor’s history to be re-entered manually each month, a time-consuming process that is taking accounting staff away from their normal duties. During the period, the Australian dollar has remained steady against the Chinese Yuan, although it fell by about 3% against the US dollar. Debtors are invoiced in $US at the time of shipment, and payment is received in $US one month after the shipment is delivered. It takes around four weeks for the charter vessels to travel from Almond Limited’s shipyard at Dockland Bay to China. A recent downturn in the Chinese economy is affecting forward orders, which have fallen by 15%. A team of internal auditors was hired 10 months ago by Almond Limited to improve on its existing internal control. The process of revamping the internal control has been dragging because the CEO has kept on declining the internal auditors’ suggestions for improvement. The accountant of Almond Limited has been notorious for finding gaps in the legislations in order to make its clients’ financial statements look presentable as desired by the clients themselves. In the past few years, Almond Limited has always been required by the Australian Tax Office to provide additional supporting information after the lodgement of its tax returns.

Required: Prepare a memorandum to the audit manager, outlining your risk assessment relating to Almond Limited. When making your risk assessment:

(a) Identify three (3) key account balances from the information provided that are subjected to an increase in audit risk. Briefly explain what factors increase the audit risk associated with the three (3) accounts identified. In your explanation, please mention the key assertion(s) at risk of material misstatement and the components of the audit risk model affected for each account identified.

(b) Identify how the audit plan will be affected and recommend specific audit procedures to address the risks associated with each account identified.

On January 1, 2016, Cayce Corporation acquired 100 percent of Simbel Company for consideration transferred with a fair value of $141,300. Cayce is a U.S.-based company headquartered in Buffalo, New York, and Simbel is in Cairo, Egypt. Cayce accounts for its investment in Simbel under the initial value method. Any excess of fair value of consideration transferred over book value is attributable to undervalued land on Simbel’s books. Simbel had no retained earnings at the date of acquisition. Following are the 2017 financial statements for the two operations. Information for Cayce and for Simbel is in U.S. dollars ($) and Egyptian pounds (£E), respectively.

During 2016, the first year of joint operation, Simbel reported income of £E 181,000 earned evenly throughout the year. Simbel declared a dividend of £E 33,600 to Cayce on June 1 of that year. Simbel also declared the 2017 dividend on June 1.

On December 9, 2017, Simbel classified a £E 11,800 expenditure as a rent expense, although this payment related to prepayment of rent for the first few months of 2018.

The exchange rates for 1 £E are as follows:

A. Translation Worksheet

B. consolidation worksheet

The inventory at April 1, 2020, and the costs charged to Work in Process--Department B during April for Worldwide Company are as follows:

During April, all direct materials are transferred from Department A. In Department B, the units in process at April 1 were completed, and of the 26,000 units entering the department, all were completed except 1,000 units which were 70% completed as to conversion costs. Inventories are costed by the first-in, first-out method.

Required:

Prepare a cost of production report for Department B for the month April 2020.