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:

The Chairman of the Board directed the Company Accountant to submit a detailed report on the above project.

Required

Explain, by reference to the requirements of AASB 117, why the consultant prefers operating to finance leases.                                                   

Payroll Accounting 101:

Question 1: your client runs a business with 100 employees and has been having some personnel issues. The client has very strong religious beliefs and wants to start hiring form their religion only to create an easier culture at the office. They plan to ask the next round of interviewees their religious affiliation. What advice do you have for them?

Question 2: Yvette has a novelty goods business with 60 employees. She had a 10-year-old who came in and wanted to work as a salesperson for toys. Yvette is very impressed by the girl's ambition and is considering hiring her. Do you have any advice for Yette?

Clint Barton is a self-employed consultant who runs his company, Hawkeye Solutions, out of a house that he owns that he does not live in. He uses the main floor for his work and rents out the second floor to a tenant. Since he uses a fair amount of computing in his work, he wants to make sure that he writes off a representative portion of the electrical bill for the house against the business. In the past, he estimated that 70% of the electricity in the house goes towards the business.

Since the Canada Revenue Agency might want to see documentation about his expenses, Barton wants to sample some of the power use to provide support for his case. Since the building has central heating and cooling, these electrical costs are shared evenly as utilities and Barton has already accounted for them separately.

Barton connected monitors to lines going to each floor for non-utility power. Because he has had disagreements about proper expenses in the past, he wants to provide strong evidence to the Canada Revenue Agency to support his claim that he uses 70% of the non-utility power for the business.

Design a test for Barton where he will record the values of the power going upstairs and to the main floor every day for a month (30 days). And answer the following questions (use complete sentences and exact equations where possible):

Barton does the test as you outline above. He finds over the course of the sample that the business used $320 of power and the upstairs used $80.

f) What is the value of the test statistic in this case?

g) What is the decision of the test in this case? Explain your reasoning.

h) What does this mean for Barton’s attempt to get sufficient documentation?

A month later, Barton does a test with a sample of 2 months (60 days). He finds over the course of the sample that the business used $720 of power and the upstairs used $180.

i) What is the value of the test statistic in this case?

j) What is the decision of the test in this case? Explain your reasoning.  

k) What does this mean for Barton’s attempt to get sufficient documentation?  

Adam runs his own marketing business in Australia. During the year he incurred the following expenses: a) salary costs of $500,000. b) salary costs of $9,000 for his son who did some graphic design work for him as he was studying graphic design at university. The work took approximately 19 hours to complete. c) $1200 on membership to the local bowls club where he entertains clients. d) $3,000 on smart clothing that he considered necessary to portray the correct image to his clients. e) $8,500 on meal expenses for his important clients. f) Interest cost of $8,400 on a loan he took out to start up the business. g) $4,000 in travelling from home to work. h) $8,500 in telephone bills, of which he estimates 80% to be used for calling clients. i) $9,000 on airfare and accommodation to a marketing conference. j) $600 charged by his accountant to complete his tax return for the year. Advise Adam as to the deductibility of the above expenses. Ensure to make reference to relevant legislation

MGMT HARDWARE, runs a chain of fourteen (14) building supplies stores located in four (4) Caribbean countries. The company caters for a wide set of products and services including, building materials, home delivery, household materials, retail sales, online ordering, drive through sales and order-online-pickup-in-store sales. The company has a centrally branded ecommerce website that caters to the needs of all four (4) countries and presents a consistent look and feel to all customers.

The locations within each country connect over a Metro-E wide area network (WAN) provided by FLOW, but there is no country-to-country connectivity. Mainly because the company grew by mergers and acquisitions, not all locations use the same Enterprise Resource Planning (ERP) software.

Each store also has an “offline” server that ensures the location can still sell and receive stock when the WAN goes down. Within a country, each store has a local Point-of-Sale (POS) but these all replicate back to a central hub in the main country office. Replication occurs once every 15 minutes, so the country head office is virtually up-to-date, in real time and can see, at a glance, transactions in each store.

As a new employee of MGMT HARDWARE, your manager wants you to produce some reports, related to stock and sales for an upcoming trade show that the purchasing team will be attending.

Congratulations, you have been promoted! You are now a manager in one of the departments of MGMT HARDWARE, and you get to choose your department.

Prior to the Metro-E, the company did not have a distributed POS, and sales reports from each site were manually combined in excel for analysis. In a similar way each location had its own telephone system. Now the company even allows VPN connectivity for the purchaser, when on business trips, to access reports and use her soft-phone. The Metro-E, VPN and internet access have changed everything.

NOTES

1. Congratulations, you have been promoted!
2. You have been placed in a group of 5 or 6 group-mates. You are required to share with and critique information in the group.
3. This is an exercise where you get to experience and demonstrate several concepts in gathering, analyzing and using information for management reporting.
4. You are now a manager in one of the departments of the company. Each of you will select:

• ONE Management Level that you will represent (operational, management/tactical or strategic). More than one person will have the same level.
• ONE department that you will represent. A department can only be represented ONCE in the group. First‑come, first-served allocation method.

Once you have chosen a persona, all contributions MUST be delivered from the perspective of that persona.

REQUIRED                                                                                

Management Reporting

You are attending a number of routine meetings that are conducted online. You are to post questions and response with information related to your analysis. Posts can be conversational among managers asking and responding to questions. There is no requirement for groups to meet outside of the course for this discussion, as it is expected that the meetings/posts will proceed in a manner similar to messaging with a corporate collaboration tool.

Forum 1: Introduce yourself, identifying your Management Level and your Functional Area

For your FIRST discussion post state your management level and department you will represent. No two students should choose the same department.

For example: CIO (strategic) of the IT department (functional area).

Forum 2: Discuss how the Metro-E can contribute with respects to both the POS and the company’s telephone systems

1. From the perspective of your department and management level:
   1. Suggest ONE advantage for the POS and ONE advantage for the phones.
   2. Request information from TWO other departments that could assist in your investigation. Please specify both the TYPE, and specific CONTENTS of the report you are requesting (Unit 3 types of output)

Forum 3: Discuss how the metro-E and the internet can contribute with respects to backups and disaster recovery.

1. From the perspective of your department and management level, discuss the implications of backup and recovery over Metro-E and into the cloud.
   1. Suggest ONE advantage and ONE disadvantage.
   2. Discuss ONE security consequence that could arise from VPN access to the company’s IT infrastructure.
   3. Critique TWO post made by group mates from other departments

Forum 4: Create the swim-lane process diagram

1. Choosing any one of the channels, explicitly mentioned in the scenario, via which a customer may purchase a good or a service, DESIGN and DRAW a high level “as-is” process diagram depicting how the customer would order/buy, pay for and get the product or service.

Forum 5: Summarise and make Recommendations

1. Summarise the information shared thus far, and discuss TWO findings about your analysis from your management level that can be used to justify the Metro-E and VPN solutions. From the following models - subscriptions (usually all you can eat), a la carte (pay for what you use) and “freemium” (uses advertising revenue to provide content for free), make TWO recommendations on ways to start generating more revenue via the eCommerce website.
2. YOU CAN DO IT!!!!

Question: Write a complete C++ program that runs multiple tests and calculations using switch statement. Based on your input and the selection from the keyboard, the program does the followings.

If the selection is 1, the program should test the input if it’s positive, negative or zero. For example, the output should be

“The selection is 1 to test the input value if it’s positive, negative or equal to zero.

The input value 7 is positive” If the selection is 2, the program should test the input if it is divisible by 5 or not.

For example, the output should be “The selection is 2 to test the input value if it’s divisible by 5 or not The input 25 is divisible by 5”

If the selection is 3, the program should find the square of the input. The output should be similar pattern as above selections.

If the selection is 4, the program should find the square root of the input. The output should be similar pattern as above selections. Your program should have default statement to report that selection is not valid.

Tropical Charters, based in the Bahamas, runs multi-day fishing charters for wealthy anglers. They have been very successful in their first five years in operation and Brian (the owner) is considering adding a second boat. A new 80’ Viking would cost $5,000,000 with another $1,000,000 needed to upgrade the interior to a level that would attract the wealthy clients they desire. The boat would be depreciated straight-line over 15 years, but would be sold at the end of five years, for an estimated $5,000,000. The new boat would generate estimated additional revenue of $2,000,000 per year and would have associated expenses of $625,000. No additional working capital would be necessary. The firm’s tax rate is 30% and the required rate of return is 12%. Calculate the NPV. Should the new boat be purchased?

Solve all three capital budgeting problems on one spreadsheet

Maria has built a cafeteria called "Princess of Gourmai and More" since 1995. Amira runs her project that provides coffee from the most delicious coffee in the city. It serves around 800 cups of coffee a day, along with special soups, ready-made Italian sandwiches, and a large selection of delicious cheese cakes. Maria noticed that despite the store's popularity, she always maintains nearly the same revenue. Maria has contacted your staff, who is affiliated with a consulting firm, in her city to advise the way the cafeteria works.

Maria said: “Many community college students visit us next to the cafeteria, as well as many retired clients who live next door and a large group of employees who work in the companies deployed next to the cafeteria. Every day our customers have only 30 minutes to eat their meal and have coffee so we must be fast. When preparing their meals, as it is the worker at the cafeteria who receives the customer’s order and enters the order on the cash box device, as well as receives the money and deposits it in the box and provides the customer with his meal.

The Royal Director Maria added: "We have one cash box that all workers, including myself, are handling to respond to customer requests. This cash box is not of the new type developed but it can track the different categories of meals and coffee, however the worker who receives the order must press every time." He receives the order on the button that pertains to the specific category requested by the customer (coffee, soup, sandwich, cakes) There is an internal tape in the box device that records and maintains a record of all transactions. The customer receives a receipt only when requested to deliver. The number of cafe workers is four along with the manager Maria Two workers work N in the morning from seven o'clock to three o'clock in the evening and two others from three o'clock to eleven at night time. "

Maria also said: “I open the cash box twice a day at the end of the morning period at three o'clock in the evening and at the end of the evening period at eleven o'clock at night. When I open the fund I help workers before they leave to open the cash box and calculate the amount of money and compare it to the total recorded on the tape stored Inside the fund When there is a difference between the money withdrawn from the fund and the total recorded on the tape, I recalculate the money again. "

The owner Maria told your group that since the beginning of the opening of the store, she did not face cases of theft, but rather discovers that the differences that occurred previously between the cash available in the fund and the total amount of money recorded on the tape are usually recording for an employee a different amount than the amount inadvertently received. For example, he records $ 18 instead of the $ 1.8 received amount.

Maria sends the tape and receipts manually to the accountant to make adjustments and also sends him all purchase invoices from the materials she needs to make coffee, sandwiches, soups and cakes. Note that Maria uses the economic quantity method in demand to maintain the stock of materials, given that the daily sales recorded by the cafeteria are close.

Read the case and identify weaknesses, based on the information provided by Maria and the cafeteria manager.

write the necessary recommendations for each weakness

3. A device runs until either 2 components fails, at which the device stops running. Let X and Y be the lifetimes in hours of the first and second component, respectively. The joint probability density function of the lifetimes is:

f(x,y) = { (x+y)/27 : 0 < x < 3, 0< y < 3

{ 0

a) Find the marginal probability density function of X and the marginal probability density function of Y.

b) Are X and Y independent? Why or why not?

c) Find the conditional density of X given that Y = y

d) Find the expected value of X given that Y =1/4

Please show your work, I have an exam tomorrow, thank you!