You are the manager of a business that is losing money due to COVID and the CEO is pushing you hard to fix things.

You have many employees who are also effected by COVID.

Your financial statements show that you must cut employment costs by 50 percent. If you do not do this you will go out of business. You made the decision for the entire company: except for two employees.  Miss. Jackson and Jerome Edwards.

Tip 1: Remember from Chapter 1 the goal of the Financial Manager is to maximize the wealthy of your company.  

Tip 2: What about the human component? This is never covered in the text. This is on YOU as a manager.

Facts below.

_________________________________________________________________

Miss. Jackson is one of your best employees, she has worked for you for 10 years, and recently she has lost two family members to COVID. Miss. Jackson is not doing well. If she is furloughed she risks losing her house and everything she has worked for over the years. Her performance has decreased due to these major life issues. She suffers from depression and sleep issues due to the stress. She has not communicated these circumstances to you because she is overwhelmed and she is afraid of losing her job. However you know, based upon her performance, she is going through rough times.  Miss. Jackson earns $60,000 a year.

Jerome Edwards is a new and upcoming employee that obtained his MBA from UNCFU with a 3.9 GPA and he is Miss. Jackson's subordinate. Jerome meets deadlines and shows no emotion to the difficulties of COVID. He hits every deadline and has the potential to succeed under any circumstances. When you send him a task he states "I'm on it" and he delivers.  Jerome earns $40,000 a year.

__________________________________________________

I am the CEO of the corporation and I care about people. However I need to keep this business alive.

My request for this answer is to write a 250 word memo to me, the CEO, discussing your decision regarding Miss. Jackson and Jerome.

_________________________________________________

I am a CEO who requires facts and an analysis based on how we can support our employees while keeping the business sustainable.

Zugar Company is domiciled in a country whose currency is the dinar. Zugar begins 2017 with three assets: cash of 23,600 dinars, accounts receivable of 81,100 dinars, and land that cost 211,000 dinars when acquired on April 1, 2016. On January 1, 2017, Zugar has a 161,000 dinar note payable, and no other liabilities. On May 1, 2017, Zugar renders services to a customer for 131,000 dinars, which was immediately paid in cash. On June 1, 2017, Zugar incurred a 111,000 dinar operating expense, which was immediately paid in cash. No other transactions occurred during the year. Currency exchange rates for 1 dinar follow:

1. Assume that Zugar is a foreign subsidiary of a U.S. multinational company that uses the U.S. dollar as its reporting currency. Assume also that the dinar is the subsidiary’s functional currency. What is the translation adjustment for this subsidiary for the year 2017?

2. Assume that Zugar is a foreign subsidiary of a U.S. multinational company that uses the U.S. dollar as its reporting currency. Assume also that the U.S. dollar is the subsidiary’s functional currency. What is the remeasurement gain or loss for 2017?

3. Assume that Zugar is a foreign subsidiary of a U.S. multinational company. On the December 31, 2017, balance sheet, what is the translated value of the Land account? On the December 31, 2017, balance sheet, what is the remeasured value of the Land account?

On April 1, 2020, Darius acquired 2,000 ordinary shares at P48 per share in Alan Enterprises and classified the Equity investment FVOCI. In addition, the broker’s commissions for this transaction were P2,400. During 2020, Darius received P7,200 in cash dividends, and on July 1, 2020, a 5% stock dividend was issued. On December 1, Alan issued a 2-for-1- stock split. At December 31, 2020, the book value per ordinary share held by Darius is?

According to International management experience:

Q-1 The British and former colonies follow the Common law, America was colonized by the British. How come the United States follow Civil law as opposed to Common Law?

Q-2 Do you know how to tell if a law can be applied extraterritorial according to the U.S.?

NOTE: Answer has to be in 150 words each, please do not copy and paste!

On 30 June 2020 the CEO has asked you to selectively revalue Land and Buildings to improve the balance sheet. You note that some of the Land and Buildings on the balance sheet have fair values higher than their carrying amounts while others have fair values lower than their carrying amounts. Furthermore, some items of Land & Buildings have fair values that are difficult to measure reliably. Explain to the CEO how the relevant Australian accounting standard limits opportunistic revaluation s.   

Empire Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020.

EMPIRE COMPANY
Income Statement
For the Month Ended October 31, 2020
Sales revenue               $795,000   
Less:   Operating expenses                  
Raw materials purchases       $264,600           
Direct labor cost       190,200           
Advertising expense       91,000           
Selling and administrative salaries       77,800           
Rent on factory facilities       61,000           
Depreciation on sales equipment       45,800           
Depreciation on factory equipment       32,500           
Indirect labor cost       28,200           
Utilities expense       11,600           
Insurance expense       8,300        811,000   
Net loss               $(16,000)  

Prior to October 2020, the company had been profitable every month. The company’s president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows.

1. Inventory balances at the beginning and end of October were:

October 1
October 31
Raw materials       $19,700       $36,000
Work in process       19,400       14,700
Finished goods       29,900       53,500

2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities.

Prepare a correct income statement for October 2020.

Coronado Company is a manufacturer of smart phones. Its controller resigned in October 2020. An inexperienced assistant accountant has prepared the following income statement for the month of October 2020.

Prepare a correct income statement for October 2020.

Prior to October 2020, the company had been profitable every month. The company’s president is concerned about the accuracy of the income statement. As her friend, you have been asked to review the income statement and make necessary corrections. After examining other manufacturing cost data, you have acquired additional information as follows.

1. Inventory balances at the beginning and end of October were:

2. Only 75% of the utilities expense and 60% of the insurance expense apply to factory operations. The remaining amounts should be charged to selling and administrative activities.

Problem 17-06

Tamarisk Company has the following portfolio of investment securities at September 30, 2020, its most recent reporting date.

On October 10, 2020, the Horton shares were sold at a price of $54 per share. In addition, 3,040 shares of Patriot common stock were acquired at $56 per share on November 2, 2020. The December 31, 2020, fair values were Monty $114,890, Patriot $139,880, and Oakwood $186,000.

Prepare the journal entries to record the sale, purchase, and adjusting entries related to the equity securities in the last quarter of 2020. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

Pear Company acquired all of Strawberry, Inc.'s outstanding
shares on January 1. Pear paid $300,000 and issued $200,000
in long-term liabilities and paid $35,000 in legal fees.
Pear also agreed to pay $75,000 to the former owners of
Strawberry contingent on meeting certain revenue goals during
the following year. Pear estimated the present value of its
probability adjusted expected payment for the
contingency or contingent obligation at $23,000
Precombination book values for Strawberry are as follows:
Current assets $ 85,000
Equipment 90,000
Buildings 175,000
Goodwill 30,000
Total $ 380,000
Current liabilities $ (50,000)
Common stock (180,000)
Retained earnings (115,000)
Revenues (135,000)
Expenses 100,000
Total $ 380,000
Pear's appraisal of Strawberry found two balance sheet accounts
that differed from fair value. Equipment was undervalued by
$15,000 and Buildings by $5,000. Pear noted that Strawberry
has unrecorded client contracts worth $60,000 and research and
development activity in process with an appraised
fair value of $90,000
a. What is the total consideration given by Pear?
(Show your calculations.)
b. What values for each of the acquired assets and
liabilities will be used in the consolidation?

A whistle-blower in her allegations made in a qui tam suit, alleged that her former employer fired her because she told the company that it was "padding the bills" to the federal government for the cost-plus contract it had to build ejection seats for fighter aircraft. She alleges that the company overcharged for materials, ran up labor costs, threw "all kinds of stuff in overhead," and illegally plugged corporate administrative costs into the contract billings. As the forensic accountant hired by the U.S. Justice Department to litigate this case, answer the following

a. What documents will you seek during discovery to address the whistle-blower's allegations?

b. What will you be looking for in each of the requested documents?

c. What will be the basis/foundation for the opinions you will provide in this case?

d. How will you utilize the whistle blower in pursuing your opinions in this case?