A) Boyne University offers an extensive continuing education program in many cities throughout the state. For the convenience of its faculty and administrative staff and to save costs, the university operates a motor pool. The motor pool’s monthly planning budget is based on operating 20 vehicles; however, for the month of March the university purchased one additional vehicle. The motor pool furnishes gasoline, oil, and other supplies for its automobiles. A mechanic does routine maintenance and minor repairs. Major repairs are performed at a nearby commercial garage.

The following cost control report shows actual operating costs for March of the current year compared to the planning budget for March.

The planning budget was based on the following assumptions:

1. $0.27 per mile for gasoline.
2. $0.16 per mile for oil, minor repairs, and parts.
3. $51 per automobile per month for outside repairs.
4. $86 per automobile per month for insurance.
5. $8,610 per month for salaries and benefits.
6. $211 per automobile per month for depreciation.

The supervisor of the motor pool is unhappy with the report, claiming it paints an unfair picture of the motor pool’s performance.

Required:

Calculate the spending variances for March. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Please do the following for part B

B) You have just been hired by FAB Corporation, the manufacturer of a revolutionary new garage door opening device. The president has asked that you review the company’s costing system and “do what you can to help us get better control of our manufacturing overhead costs.” You find that the company has never used a flexible budget, and you suggest that preparing such a budget would be an excellent first step in overhead planning and control.

After much effort and analysis, you determined the following cost formulas and gathered the following actual cost data for March:

During March, the company worked 16,000 machine-hours and produced 10,000 units. The company had originally planned to work 18,000 machine-hours during March.

Required:

1. Calculate the activity variances for March.

2. Calculate the spending variances for March.

Your company sells a product bundle that includes software and a 3 year service contract for $100,000, The company installed the software on July 1, 2020, and the client paid $50,000 cash. The balance is due on December 31, 2020. What if:

(a) the performance obligations are interdependent and cannot be separated out or sold separately.

(b) the performance obligations are not interdependent ( The service contract is sold separately for $25,000 and the software for $100,000.)

On January 1, 2020, Sheffield Company purchased 8% bonds having a maturity value of $240,000, for $260,219.71. The bonds provide the bondholders with a 6% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Sheffield Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.

EU Funds Language Learning: Key Concepts: management training and development, management development and competitive advantage, the European Union, global mind-set, language training, globalization

Notes: The classrooms are busy at the University of Bedfordshire in Britain. However, instead of being filled with traditional university students, business people fill the rooms. The University of Bedfordshire is offering a program funded by the European Union to help business people learn foreign languages. The basic idea behind the program is to use the facilities at the university not only for the benefit of traditional students, but also for the benefit of the local community. The European Union hopes the program will help local business people gain a competitive edge over their rivals.

Currently about 80 people are enrolled in the program. One man taking advantage of the opportunity is Martin Brady who runs a company that helps firms find manufacturers in China. Brady is studying Mandarin. He wants to gain basic conversational skills that he hopes will help him when he is working in China. Already, Brady has noticed a difference in how Chinese people respond to him when he uses his newly acquired language skills. Brady notes that in China the relationship is as important as the business deal, and feels that his language skills will go a long way towards building relationships with Chinese business people.

Martin Brady, it appears, has figured out what many Britons have not. Foreign language skills are important in business. Research shows that Britain lags at the bottom when it comes to learning foreign language skills, and this deficiency may be causing British firms to miss opportunities to do business in other countries. Currently, most British firms have a tendency to do business in foreign countries where English is spoken, and avoid countries that speak a foreign language. As a result, firms tend to take a reactive approach to their business strategy going only where they think they can do business instead of looking at the entire world to see where the best opportunities lie. In the hopes of getting other people to realize the competitive advantages languages can give companies, the European Union will be funding the programs again. This time the program will be offered at ten universities across the country making the program more available to everyone.

Discussion Questions: be detailled in your answers

1- How might a lack of knowledge of foreign languages influence the strategic direction of a firm? What does your response suggest about the ability of the firm to compete in the global market place?

2- In China, the relationship between business people is an important part of a business deal. How can knowledge of the local language help build that trust? What can be learned from the experiences of Martin Brady, a British businessman enrolled in the European Union’s language program?

3- When an American business person in a foreign country insists on speaking only in English, what message is it sending to clients? How can knowledge of the local language help managers avoid an ethnocentric approach to business?

4- How does culture affect the different business functions? How can knowledge of different languages help managers in the different functional areas?

Review the section on the definitions of maturity stages and dimension variables in the CEO Technology Best Practices Arc. Define each of the maturity stages and performance dimensions. What are the key concepts from each section?

Suppose we have two sets of prediction for the inflation rate for next year: one from a random sample of Fortune 500 firms and another from a random sample of university economists. At 0.05 level can it be claimed that on the average university educators are predicting a higher inflation rate for next year than the major private businesses?

1. Formulate the hypothesis (H₀ and H_a) and describe each in nontechnical language and in mathematical form. (5 pts)

2. Show the mean, rejection region, and the critical value(s) on the following graph. (6 pts)

Show the equation for computing the standard error.

3. What is your decision and why? (4 pts.)

4. Provide a conclusion in non-technical language (5 pts)

Jen and Larry’s Frozen Yogurt Company

     In 2019, Jennifer (Jen) Liu and Larry Mestas founded Jean and Larry’s Frozen Yogurt Company, which was based on the idea of applying the microbrew or microbatch strategy to the production and sale of frozen yogurt. Jen and Larry began producing small quantities of unique flavors and blends in limited editions. Revenues were $600,000 in 2019 and were estimated to be $1.2 million in 2020.

     Because Jen and Larry were selling premium frozen yogurt containing premium ingredients, each small cup of yogurt sold for $3, and the cost of producing the frozen yogurt averaged $1.50 per cup. Administrative expenses, including Jen and Larry’s salary and expenses for an accountant and two other administrative staff, were estimated at $180,000 in 2020. Marketing expenses, largely in the form of behind-the-counter workers, in-store posters, and advertising in local newspapers, were projected to be $200,000 in 2020.

     An investment in bricks and mortar was necessary to make and sell the yogurt. Initial specialty equipment and the renovation of an old warehouse building in lower downtown (known as LoDo) occurred at the beginning of 2019. Additional equipment needed to make the amount of yogurt forecasted to be sold in 2020 was purchased at the beginning of 2020. As a result, depreciation expenses were expected to be $50,000 in 2020. Interest expenses were estimated at $15,000 in 2020. The average tax rate was expected to be 25% of taxable income.

1. Refer to the Mini Case above involving Jen and Larry’s Frozen Yogurt Company.
   1. Calculate the dollar amount of NOPAT if Jen and Larry’s venture achieves the forecasted $1.2 million in sales in 2020. What would NOPAT be as a percent of sales?
   2. Calculate the NOPAT breakeven point for 2020 in terms of NOPAT breakeven revenues for Jen and Larry’s venture. How many cups of frozen yogurt would have to be sold to reach NOPAT breakeven?

Case #1
Suppose that you recently completed your MBA and have just reported to work as an
investment advisor at the consultancy firm of Wais and Qais Inc. One of the firm’s clients
is Saad, a professional table tennis player who has just come to the Afghanistan from
Japan. Saad is a highly ranked table tennis player who would like to start a company to
produce and market kit he designs. He also expects to invest substantial amounts of
money through Wais and Qais
Saad is very talented, and he would like to understand in general terms what will happen
to his money. Your boss has developed the following set of questions you must answer to
explain the financial system to Saad.

Question1:

a. What is the role of primary market in fund transferring from providers (savers) to users (borrowers?)

b. What is flow of fund? Who are the providers (savers) and users (borrowers) of capital?

c. What is financial markets? Describe some types of financial markets? How are secondary markets organized?

Please Attempt all above questions (a.b.c)

No plagiarism, only own wording has credit.

Portions of the financial statements for Hawkeye Company are provided below.

Problem 21-9 (Algo) Part 1

Required:
1. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the direct method. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)

Cash flows from operating activities:

NET CASH FLOWS FROM OPERATING ACTIVITIES

Required:
2. Prepare the cash flows from operating activities section of the statement of cash flows for Hawkeye Company using the indirect method. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10). Amounts to be deducted should be indicated with a minus sign.)