For each of the following businesses, what are four nonfinancial measures that might be useful for helping management evaluate the success of its strategies?
__ Grocery store
__ Hospital
__ Auto manufacturer
Law office
_ Coffee shop
__ Movie theater
YOUR TASKS
1. YOU HAVE TO PICK UP ANY ONE BUSINESS FROM ABOVE AND DRAW UP A BALANCE SCORE CARD AS SHOWN BELOW.ANY EFFORT TO COPY FROM OTHER WORK WOULD RESULT IN CHEATING OUR OWN SELVES AND LIMITING GROWTH OF MIND. (5)
2. YOU HAVE TO MAKE ATLEAST TWO COMMENTS ON BALANCE SCORE CARD MADE BY OTHERS IN THE DISCUSSION TRAIL.DO NOT CRITICISE BUT RATHER SUGGEST WAYS TO IMPROVE. (5)
In: Accounting
For each of the following businesses, what are four nonfinancial measures that might be useful for helping management evaluate the success of its strategies?
__ Grocery store
__ Hospital
__ Auto manufacturer
Law office
_ Coffee shop
__ Movie theater
YOUR TASKS
1. YOU HAVE TO PICK UP ANY ONE BUSINESS FROM ABOVE AND DRAW UP A BALANCE SCORE CARD AS SHOWN BELOW.ANY EFFORT TO COPY FROM OTHER WORK WOULD RESULT IN CHEATING OUR OWN SELVES AND LIMITING GROWTH OF MIND. (5)
2. YOU HAVE TO MAKE ATLEAST TWO COMMENTS ON BALANCE SCORE CARD MADE BY OTHERS IN THE DISCUSSION TRAIL.DO NOT CRITICISE BUT RATHER SUGGEST WAYS TO IMPROVE. (5)
In: Accounting
Constructing and Assessing Income Statements Using
Cost-to-Cost Method
Assume General Electric Company agreed in May 2016 to construct a
nuclear generator for NSTAR, a utility company serving the Boston
area. General Electric Company estimated that its construction
costs would be $360 million. The contract price of $450 million is
to be paid as follows: $150 million at the time of signing; $150
million on December 31, 2016; and $150 million at completion in May
2017. General Electric incurred the following costs in constructing
the generator: $144 million in 2016 and $216 million in 2017.
a. Compute the amount of General Electric's revenue, expense, and
income for both 2016 and 2017, and for both years combined, under
the cost-to-cost revenue recognition method.
Enter dollar amounts in millions.
| Cost-to-Cost Method | ||||
|---|---|---|---|---|
|
Year |
Costs incurred |
% of total excepted costs |
Revenue recognized |
Income |
| 2016 | Answer | Answer | Answer | Answer |
| 2017 | Answer | Answer | Answer | Answer |
| Total | Answer | Answer | Answer | |
In: Accounting
|
Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: |
| Activity Cost Pool | Activity Measure | Estimated Overhead Cost | Expected Activity | ||
| Machining | Machine-hours | $ | 213,400 | 11,000 | MHs |
| Machine setups | Number of setups | $ | 61,600 | 140 | setups |
| Production design | Number of products | $ | 78,000 | 2 | products |
| General factory | Direct labor-hours | $ | 244,000 | 10,000 | DLHs |
| Activity Measure | Product Y | Product Z |
| Machining | 6,400 | 4,600 |
| Number of setups | 60 | 80 |
| Number of products | 1 | 1 |
| Direct labor-hours | 7,400 | 2,600 |
| Required: |
| 1. | What is the company’s plantwide overhead rate? (Round your answer to 2 decimal places.) |
| 2. |
Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) |
| 3. |
What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.) |
| 4. |
What is the activity rate for the Machine Setups activity cost pool? (Round your answer to 2 decimal places.) |
| 5. |
What is the activity rate for the Product Design activity cost pool? (Round your answer to 2 decimal places.) |
| 6. |
What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) |
| 7. | Which of the four activities is a batch-level activity? | ||||||||
|
| 8. | Which of the four activities is a product-level activity? | ||||||||
|
| 9. |
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) |
| 10. |
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) |
| 11. |
Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your answers to 2 decimal places.) |
| 12. |
Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
| 13. |
Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
| 14 |
Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
||
|
In: Accounting
|
Greenwood Company manufactures two products—15,000 units of Product Y and 7,000 units of Product Z. The company uses a plantwide overhead rate based on direct labor-hours. It is considering implementing an activity-based costing (ABC) system that allocates all of its manufacturing overhead to four cost pools. The following additional information is available for the company as a whole and for Products Y and Z: |
| Activity Cost Pool | Activity Measure | Estimated Overhead Cost | Expected Activity | ||
| Machining | Machine-hours | $ | 227,700 | 11,000 | MHs |
| Machine setups | Number of setups | $ | 153,900 | 270 | setups |
| Production design | Number of products | $ | 91,000 | 2 | products |
| General factory | Direct labor-hours | $ | 257,000 | 10,000 | DLHs |
| Activity Measure | Product Y | Product Z |
| Machining | 7,700 | 3,300 |
| Number of setups | 60 | 210 |
| Number of products | 1 | 1 |
| Direct labor-hours | 8,700 | 1,300 |
|
1. |
What is the company’s plantwide overhead rate? (Round your answer to 2 decimal places.) |
||||||||
|
2. |
Using the plantwide overhead rate, how much manufacturing overhead cost is allocated to Product Y and Product Z? (Round your intermediate calculations to 2 decimal places and final answers to the nearest dollar amount.) |
||||||||
|
3. |
What is the activity rate for the Machining activity cost pool? (Round your answer to 2 decimal places.) |
||||||||
|
4. |
What is the activity rate for the Machine Setups activity cost pool? (Round your answer to 2 decimal places.) |
||||||||
|
5. |
What is the activity rate for the Product Design activity cost pool? (Round your answer to 2 decimal places.) |
||||||||
|
6. |
What is the activity rate for the General Factory activity cost pool? (Round your answer to 2 decimal places.) |
||||||||
|
7. |
Which of the four activities is a batch-level activity? |
||||||||
|
|||||||||
|
8. |
Which of the four activities is a product-level activity? |
||||||||
|
|||||||||
|
9. |
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Y? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) |
||||||||
|
10. |
Using the ABC system, how much total manufacturing overhead cost would be assigned to Product Z? (Round your intermediate calculations to 2 decimal places and final answer to the nearest dollar amount.) |
||||||||
|
11. |
Using the plantwide overhead rate, what percentage of the total overhead cost is allocated to Product Y and Product Z? (Round your answers to 2 decimal places.) |
||||||||
|
12. |
Using the ABC system, what percentage of the Machining costs is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
||||||||
|
13. |
Using the ABC system, what percentage of Machine Setups cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
||||||||
|
14. |
Using the ABC system, what percentage of the Product Design cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
||||||||
|
15. |
Using the ABC system, what percentage of the General Factory cost is assigned to Product Y and Product Z? (Round your answers to 2 decimal places.) |
In: Accounting
The Institute of Econometric Excellence’s report “Adult Males Living with Parents” states the following:
The examination of the percentage of males aged 25-34 living with their parents across 1000 US cities reveals that three economic and three sociological variables were deemed determinative. In a solely economic regression model, called Model E, the three economic variables alone explained 45% of the changes in cohabitation. In a solely sociological regression model, called Model S, the three sociology variables alone explained 47% of the changes in cohabitation. To determine whether the economic variables added any predictive power to Model S, and to avoid variables confounding one another, the researchers added the predicted percentages of cohabitation from Model E to Model S. The coefficient for predicted cohabitation was 2.5 with a standard error of 1.0. The authors then added the predicted percentages of cohabitation from Model S to Model E and found that the coefficient for predicted cohabitation was -3.0 with a standard error of 1.0.
The econometric term for the problem of variables “confounding” one another is a)________ (serial correlation/multicollinearity/heteroscedasticity) and it would appear in regression results in in terms of b)_______ (VIFs exceeding 5/Durbin-Watson statistic near 2/failing to reject the H0 of a White test).
The test procedure the researchers are running by adding the predicted cohabitation variables to different regression models is the c)________ (Ramsey RESET /Davidson-MacKinnon J/Quandt-Andrews Breakpoint test).
According to these results, if our sole desire is to accurately predict the percentage of cohabitation in a city, the variables that should be included in a regression model are the d)________ (sociology only/economic only/sociology and economic) because the test reveals the e)_______ (sociology only/economic only/sociology and economic) are statistically significant.
In: Economics
Health Costs
Your company, like many others, is experiencing double digit percentage increases in health care costs.
What suggestions can you offer Papa John's Pizza that may reduce the rate of cost increases?
In: Economics
|
Common Size Income statement |
||||
|
2017 |
2016 |
|||
|
$M |
Percentage |
$M |
Percentage |
|
|
Operating revenue |
2319 |
100% |
2375 |
100% |
|
Operating expenses |
-1666 |
-71.84% |
-1725 |
-72.63% |
|
Earnings before interest, tax, depreciation, amortisation, changes in fair value of hedges and other signifcant items (EBITDAF) |
653 |
28.16% |
650 |
27.37% |
|
Depreciation and amortisation |
-264 |
-11.38% |
-236 |
-9.94% |
|
Impairment of assets |
-10 |
-0.43% |
-4 |
-0.17% |
|
Loss on sale of assets |
-4 |
-0.17% |
-1 |
-0.04% |
|
Net change in fair value of electricity and other hedges |
-76 |
-3.28% |
-15 |
-0.63% |
|
Operating profit |
299 |
12.89% |
402 |
16.93% |
|
Finance Cost |
79 |
3.41% |
80 |
3.37% |
|
Interest Income |
2 |
0.09% |
2 |
0.08% |
|
Net change in fair value of treasury instruments |
55 |
2.37% |
-68 |
-2.86% |
|
Net profit before tax |
277 |
11.94% |
256 |
10.78% |
|
Income tax expense |
-80 |
-3.45% |
-71 |
-2.99% |
|
Net proft after tax attributed to the shareholders of the parent company |
197 |
8.50% |
185 |
7.79% |
|
Earnings per share (EPS) attributed to ordinary equity holders of the parent |
cents |
cents |
||
|
Basic and diluted earnings per share |
7.7 |
0.33% |
7.2 |
0.30% |
COMPREHENSIVE INCOME STATEMENT
|
COMPREHENSIVE INCOME STATEMENT |
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|
2017 |
2016 |
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
$M |
Percentage |
$M |
Percentage |
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|
Net profit after tax |
197 |
8.50% |
185 |
7.79% |
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Other comprehensive income |
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Intems that will not be reclassifed to profit or loss |
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|
Asset revaluation |
428 |
18.46% |
889 |
37.43% |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Defferred tax on the above item |
-120 |
-5.17% |
-248 |
-10.44% |
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|
Items that may be reclassified to profit or loss |
308 |
641 |
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|
Net gain on cash flow hedges |
2 |
0.09% |
|||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
Exchange differences arising from translation of foreign operation |
1 |
0.04% |
-23 |
-0.97% |
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Income tax on the above items |
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|
3 |
0.13% |
-23 |
-0.97% |
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Other comprehensive income for the year, net of tax |
311 |
13.41% |
618 |
26.02% |
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|
Total comprehensice income for the year, net of tax attributed to shareholders of parent company |
508 |
21.91% |
803 |
33.81% |
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Using the following financial ratios for 2016 and 2017 periods, and other associated information available in the public domain, assess the financial health of MEL from the view of an investor. Liquidity ratios b) Asset management efficiency ratios c) Profitability ratios d) Market ratios Assume you are a banker evaluating a loan request from Meridian Energy Limited (MEL) for $220 million. Considering MEL’s recent earnings announcements and earnings forecast updates, what would be your concerns in deciding on approval or denial of the loan request? Use the company’s capital structure ratios for 2016 and 2017 in your explanation. |
In: Accounting
1.A Company A sells 1200 bottles of a dietary supplement per week. The supplement is ordered from a supplier who charges Company A $80 per order and $50 per bottle. Company A’s annual holding cost percentage is 30%. Assume Company A operates 50 weeks in a year. What is the economic order quantity?
1.B Company A sells 1200 bottles of a dietary supplement per week. The supplement is ordered from a supplier who charges Company A $80 per order and $50 per bottle. Company A’s annual holding cost percentage is 30%. Assume Company A operates 50 weeks in a year. If Company A chooses to use the economic order quantity for supplement purchases, what will be the total of its holding and ordering costs per year?
In: Operations Management
11. When a market is in equilibrium and that good or service is then taxed, the:
| a. |
social marginal benefit of consumption exceeds the social marginal cost of production. |
|
| b. |
deadweight loss is greater when the tax is levied on consumers than when it is levied on producers. |
|
| c. |
social marginal cost of production exceeds the social marginal benefit of consumption. |
|
| d. |
deadweight loss is greater when the tax is levied on producers than when it is levied on consumers. |
12. What information must you know to determine the tax burdens on firms and workers for a tax on labor?
| a. |
the relative elasticities of labor demand and labor supply |
|
| b. |
the percentage of the statutory burden placed on employers |
|
| c. |
how the statutory burden of the tax is divided between employers and workers |
|
| d. |
the percentage of the statutory burden placed on workers |
In: Economics