CASE 3.9

Walmart de Mexico

Sam Walton was born on March 29, 1918, in Kingfisher, Oklahoma, a small town 50 miles northwest of Oklahoma City. Sam’s father, a farmer, struggled to support his family during the Great Depression. The Walton family hopscotched around the country before finally settling in Missouri where Sam graduated from high school. After obtaining a degree in economics from the University of Missouri, Sam went to work as a management trainee with J.C. Penney Company at a monthly salary of $75. Following the outbreak of World War II, Sam enlisted in the U.S. Army and served until 1945.

Upon returning to civilian life, Sam Walton borrowed money from his father-in-law to purchase a small retail store in northern Arkansas. Walton purchased additional stores in Arkansas, Kansas, and Missouri over the following years. In 1962, Walton opened the first store branded as a “Wal-Mart” in Rogers, Arkansas, 10 miles from Bentonville, which would become the company’s corporate headquarters. Walmart expanded its operations across the continental United States over the next three decades. In 1992, the year Sam Walton died, Walmart surpassed Sears to become the largest retailer in the United States.

By 2012, Walmart employed over two million people, making it the world’s largest private employer. In that same year, four members of Sam Walton’s family ranked among the top 10 of the Forbes 400, the 400 wealthiest individuals in the United States.1 Those individuals, with a collective wealth of more than $100 billion, included his three surviving children and the widow of his son, John Walton, a former Green Beret who was awarded the Silver Star for heroism during the Vietnam War.

The Lowest Prices Anytime, Anywhere!

Walmart’s incredible growth was due to the hypercompetitive business model developed by Sam Walton. The central tenet of Walton’s business plan was the motto that he adopted for his company, “The Lowest Prices Anytime, Anywhere!” Walton reasoned that if he undercut the prices charged by his competitors, his company would generate sufficient sales volume to realize significant economies of scale. The most important of those economies of scale would be purchasing merchandise in bulk quantities at discounted wholesale prices that were not available to other retailers.

Walton’s simple business plan worked to perfection as Walmart routinely dominated the geographical markets that it entered. The ultimate result of Walmart’s alleged “predatory” business model was to drive large numbers of small retailers, including pharmacies, groceries, and general merchandise stores, out of business. In an op-ed piece written for the New York Times, Robert Reich, former Secretary of the U.S. Department of Labor, observed that Walmart “Turns main streets into ghost towns by sucking business away from small retailers.”2

In the early 1990s, Walmart became an international company when it opened retail outlets in Mexico and Canada. After replicating its successful business model in those countries, Walmart extended its operations outside of North America. Within two decades, approximately one-fourth of the company’s sales were produced by its 6,000 retail stores in more than two dozen countries scattered around the globe.

To date, Mexico has easily been Walmart’s most successful international venture. Walmart quickly seized control of the retail industry in that country by taking away large chunks of a market share previously held by domestic retailers that had operated in the country for decades. By 2012, Walmart’s Mexican subsidiary, Walmart de Mexico, was Mexico’s largest retailer and that nation’s largest private employer.

Bribery Allegations

In April 2012, an article published by the New York Times, “Vast Mexico Bribery Case Hushed Up by Wal-Mart After Top-Level Struggle,” reported that Walmart had routinely bribed government officials to obtain building permits and other business licenses required by Mexican law. A former Walmart de Mexico officer testified that the bribes allowed the Mexican subsidiary “to build hundreds of new stores so fast that competitors would not have time to react.”3 The Pulitzer Prize-winning article in the New York Times, which was the culmination of an 18-month long investigation, insisted that the bribes violated the Foreign Corrupt Practices Act of 1977 (FCPA). The article also accused Walmart’s senior management of concealing those bribes from U.S. law enforcement authorities.

Walmart’s senior executives learned of the bribes being paid by their company’s Mexican subsidiary in late 2005 and immediately launched an investigation. “Wal- Mart dispatched investigators to Mexico City, and within days they unearthed evidence of widespread bribery. . . . They also found documents showing that Wal-Mart de Mexico’s top executives not only knew about the payments but had taken steps to conceal them from Wal-Mart’s headquarters in Bentonville, Ark.”4

Following the discovery of the bribes, Walmart’s senior executives disagreed on how to address the problem. The New York Times article reported that Walmart’s management ultimately decided to resolve the matter quietly and internally. That goal was achieved by placing the Walmart de Mexico executive who had allegedly authorized the bribes in charge of the ongoing investigation of them. The investigation ended shortly thereafter. The subsequent internal report noted that “There is no clear evidence or clear indication of bribes paid to Mexican government authorities with the purpose of wrongfully securing any licenses or permits.”5

The former FBI agent who served as Walmart’s director of corporate investigations found the internal report inadequate. “The report was nonetheless accepted by Wal- Mart’s leaders as the last word on the matter.”6 Walmart’s senior executives informed the U.S. Department of Justice that their company may have violated the FCPA only after they had learned of the ongoing investigation by the New York Times.

The author of the New York Times article charged that Walmart’s “relentless pursuit of growth” had compromised its commitment to the “highest moral and ethical standards.”7 A follow-up article in the New York Times in December 2012, “How Wal-Mart Used Payoffs to Get Its Way in Mexico,” described the methods used by

Walmart de Mexico to gain an unfair advantage over its competitors. That article also dismissed the suggestion that Walmart was a “victim” of a corrupt business culture in Mexico that obligated companies to bribe governmental officials.

The Times’ investigation reveals that Wal-Mart de Mexico was not the reluctant victim of a corrupt culture that insisted on bribes as the cost of doing business. Nor did it pay bribes merely to speed up routine approvals. Rather, Wal-Mart de Mexico was an aggressive and creative corrupter, offering large payoffs to get what the law other-wise prohibited. It used bribes to subvert democratic governance—public votes, open debates, transparent procedures. It used bribes to circumvent regulatory safeguards that protect Mexican citizens from unsafe construction. It used bribes to outflank rivals. 8

After reporting the potential FCPA violations to the U.S. Department of Justice in December 2011, Walmart instructed its audit committee to use “all resources necessary” to “aggressively” investigate the company’s “FCPA compliance” not only in Mexico but worldwide. The audit committee hired KPMG and a major law firm to assist in the forensic investigation.10 Walmart’s board also created a network of international “FCPA compliance directors” that would report to a Bentonville-based “Global FCPA Compliance Officer.” In an April 2012 press release that addressed the bribery allegations made by the New York Times, Walmart officials declared that “We will not tolerate non-compliance with the FCPA anywhere or at any level of the company.”11

Since 2012, Walmart officials have discussed the status of the ongoing internal and external FCPA investigations in their company’s periodic registration statements filed with the SEC. Those disclosures have consistently warned the investing and lending community that it is “probable” that Walmart will eventually incur a loss stemming from the alleged FCPA violations but that the amount of the loss can- not be “reasonably estimated.” Nevertheless, company management reports that the expected loss is unlikely to have a “material adverse” effect on Walmart’s operations. The company also regularly discloses the cumulative cost that it has incurred in connection with its internal FCPA investigation. By early 2016, that figure had topped $600 million. Finally, the company’s interim reports on the FCPA matter reveal that potential FCPA violations have been uncovered within the company’s operations in countries other than Mexico, including Brazil, China, and India.

There has been widespread speculation in the business press concerning the ultimate outcome of the joint SEC and U.S. Department of Justice investigation of Walmart’s alleged FCPA violations. Much of that speculation has focused on the magnitude of the monetary fines the federal agencies might levy on Walmart. Many observers believe that those fines could surpass the $450 million in FCPA-related fines imposed on the German engineering and electronics firm Siemens AG in 2008.

The FCPA: From Watergate to Walmartgate

Walmart’s widely publicized FCPA problems refocused attention on the origins and nature of that federal statute. The FCPA was a by-product of the scandal-ridden Watergate era of the 1970s. During the Watergate investigations, the Office of the Special Prosecutor uncovered large bribes, kickbacks, and other payments made by U.S. corporations to officials of foreign governments to initiate or maintain business relationships.

Widespread public disapproval compelled Congress to pass the FCPA, which criminalizes most such payments.12 The FCPA also requires U.S. companies to maintain internal control systems that provide reasonable assurance of discovering improper foreign payments. In a 1997 Accounting and Auditing Enforcement Release, the Securities and Exchange Commission (SEC) highlighted the importance and need for the accounting and internal control requirements embedded in the FCPA.

The accounting provisions [of the FCPA] were enacted by Congress along with the anti-bribery provisions because Congress concluded that almost all bribery of foreign officials by American companies was covered up in the corporations’ books and that the requirement for accurate records and adequate internal controls would deter bribery.13

In the two decades following the passage of the FCPA, the SEC seldom charged U.S. companies with violating its provisions. In fact, in 1997 when the SEC filed FCPA- related charges against Triton Energy Ltd., an international oil and gas exploration company, more than 10 years had elapsed since the federal agency’s prior FCPA case. At the time, the SEC conceded that the filing of the FCPA charges against Triton Energy was intended to send a “message” to U.S. companies that “it’s not O.K. to pay bribes as long as you don’t get caught.”14 At the same time, an SEC spokesperson predicted that his agency would be filing considerably more FCPA charges in the future.15

The SEC was true to its word. By 2015, the SEC was investigating potential FCPA violations by 74 public companies. Those companies included such prominent firms as Bristol-Myers Squibb, Cisco Systems, Halliburton, United Technologies, and Wynn Resorts. The World Bank has reinforced the need for the SEC and other global law enforcement agencies to rein in corporate bribery since it estimates that more than $1 trillion in bribes are paid annually in the U.S. alone.16

The FCPA is not without its critics. Many corporate executives have complained that the federal statute places U.S. multinational companies at a significant competitive disadvantage to multinational firms based in countries that have do not have a comparable law. Those same executives also find the recent “overzealousness” in prosecuting alleged FCPA violators inappropriate. “We are seeing companies getting scooped up in aggressive enforcement actions and investigations. A culture of overzealousness has grabbed the Justice Department. The last time I checked, we were not living in a police state.”17 In response to that complaint, a representative of the U.S. Department of Justice observed, “This is not the time for the United States to be condoning corruption. We are a world leader and we want to do everything to make sure that business is less corrupt, not more.”18

To date, the FCPA has not had a significant impact on the auditors of SEC registrants. An audit firm has been named in only one FCPA complaint filed by the SEC. In that case, a representative of KPMG’s Indonesian affiliate was charged with paying a bribe to a governmental official to reduce the tax bill of its client. The KPMG affiliate settled the charge by agreeing to a cease and desist order but was not fined.19 As the FCPA complaint against Walmart unfolded, a reporter for the Reuters international news service noted that it was unlikely that Ernst & Young, Walmart’s longtime auditor, would become a target of that investigation.

In fact, the FCPA has created a new revenue stream for the major accounting firms that serve as the auditors of most SEC registrants. For example, Deloitte’s website lists “Foreign Corrupt Practices Act Consulting” as an ancillary service that it provides to public companies.

Our Foreign Corrupt Practices Act (FCPA) Consulting practice helps organizations navigate FCPA risk and respond to potential violations. Utilizing the network of Deloitte member firms and their affiliates including their forensic resources in the United States, Canada, Europe, Russia, Africa, Latin America, and Asia, we have worked on a variety of FCPA engagements including investigations, acquisition due diligence, and compliance program implementation and assessments in over fifty countries for some of the world's leading companies

1. Identify control activities that Walmart could have implemented for Walmart de Mexico and its other foreign subsidiaries to minimize the likelihood of illegal payments to government officials. Would these control activities have been cost-effective?

2. What responsibility, if any, does an accountant of a public company have when he or she discovers that the client has violated a law? How does the accountant’s position on the company’s employment hierarchy affect that responsibility, if at all? What responsibility does an auditor of a public company have if he or she discovers illegal acts by the client? Does the auditor’s position on his or her firm’s employment hierarchy affect this responsibility?

3. Does an audit firm of an SEC registrant have a responsibility to apply audit procedures intended to determine whether the client has complied with the FCPA? Defend your answer.

4. If the citizens of certain foreign countries believe that the payment of bribes is an acceptable business practice, is it appropriate for U.S. companies to challenge that belief when doing business in those countries? Defend your answer.

Note: This problem is for the 2018 tax year.

Logan B. Taylor is a widower whose wife, Sara, died on June 6, 2016. He lives at 4680 Dogwood Lane, Springfield, MO 65801. He is employed as a paralegal by a local law firm. During 2018, he had the following receipts:

Logan inherited securities worth $60,000 from his uncle, Daniel, who died in 2018. Logan also was the designated beneficiary of an insurance policy on Daniel's life with a maturity value of $200,000. The lot in St. Louis was purchased on May 2, 2013, for $85,000 and held as an investment. As the neighborhood has deteriorated, Logan decided to cut his losses and sold the lot on January 5, 2018, for $80,000. The estate sale consisted largely of items belonging to Sara and Daniel (e.g., camper, boat, furniture, and fishing and hunting equipment). Logan estimates that the property sold originally cost at least twice the $9,000 he received and has declined or stayed the same in value since Sara and Daniel died.

Logan's expenditures for 2018 include the following:

Logan and his dependents are covered by his employer's health insurance policy for all of 2018. However, he is subject to a deductible, and dental care is not included. The $10,500 dental charge was for Helen's implants. Helen is Logan's widowed mother, who lives with him (see below). Logan normally pledges $2,400 ($200 per month) each year to his church. On December 5, 2018, upon the advice of his pastor, he prepaid his pledge for 2019.

Logan's household, all of whom he supports, includes the following:

Helen receives a modest Social Security benefit. Asher, a son, is a full-time student in dental school and earns $4,500 as a part-time dental assistant. Mia, a daughter, does not work and is engaged to be married.

Federal income tax of $4,500 was withheld from Logan's wages.

Required:
Determine the Federal income tax for 2018 for Logan by providing the following information that be reported on Form 1040, Schedule A Schedule D, and Form 8849. Complete the tax advice letter.

Make realistic assumptions about any missing data.

If Logan has any overpayment on his income tax, he wants the refund sent to him.

Assume that the proper amounts of Social Security and Medicare taxes were withheld.

Enter all amounts as positive numbers.

If an amount box does not require an entry or the answer is zero, enter "0".

When computing the tax liability, do not round your immediate calculations. If required round your final answers to the nearest dollar.

2. Calculate taxable gross income.
$

3. Calculate the total adjustments for AGI.
$

4. Calculate adjusted gross income.
$

5. Calculate the greater of the standard deduction or itemized deductions.
$

6. Calculate total taxable income.
$

7. Calculate the income tax liability.
$

8. Calculate the total tax credits available.
$

9. Calculate total withholding and tax payments.
$

10. Calculate the amount overpaid (refund):
$

11. Calculate the amount of taxes owed:
$

Consider the following SQL script.

QUESTION: Which best completes the following statement(Select 3):

Table SELECT TABLE NAME is in SELECT NORMAL FORM and is SELECT FORM TYPE

***Note: The answer choices are at the bottom

Assume also that even if there are some issues you cannot resolve them. Report on the current state of the database based on the code that you have been provided.

CREATE TABLE ASSIGNMENT (
ASSIGN_NUM int,
ASSIGN_DATE datetime,
PROJ_NUM varchar(3),
EMP_NUM varchar(3),
ASSIGN_HOURS float(8),
ASSIGN_CHG_HOUR numeric(5,2),
ASSIGN_CHARGE numeric(5,2)
);
INSERT INTO ASSIGNMENT VALUES('1001','2018-3-4','15','103','2.6','84.5','219.7');
INSERT INTO ASSIGNMENT VALUES('1002','2018-3-4','18','118','1.4','18.36','25.7');
INSERT INTO ASSIGNMENT VALUES('1003','2018-3-5','15','101','3.6','105','378');
INSERT INTO ASSIGNMENT VALUES('1004','2018-3-5','22','113','2.5','48.1','120.25');
INSERT INTO ASSIGNMENT VALUES('1005','2018-3-5','15','103','1.9','84.5','160.55');
INSERT INTO ASSIGNMENT VALUES('1006','2018-3-5','25','115','4.2','96.75','406.35');
INSERT INTO ASSIGNMENT VALUES('1007','2018-3-5','22','105','5.2','105','546');
INSERT INTO ASSIGNMENT VALUES('1008','2018-3-5','25','101','1.7','105','178.5');
INSERT INTO ASSIGNMENT VALUES('1009','2018-3-5','15','105','2','105','210');
INSERT INTO ASSIGNMENT VALUES('1010','2018-3-6','15','102','3.8','96.75','367.65');
INSERT INTO ASSIGNMENT VALUES('1011','2018-3-6','22','104','2.6','96.75','251.55');
INSERT INTO ASSIGNMENT VALUES('1012','2018-3-6','15','101','2.3','105','241.5');
INSERT INTO ASSIGNMENT VALUES('1013','2018-3-6','25','114','1.8','48.1','86.58');
INSERT INTO ASSIGNMENT VALUES('1014','2018-3-6','22','111','4','26.87','107.48');
INSERT INTO ASSIGNMENT VALUES('1015','2018-3-6','25','114','3.4','48.1','163.54');
INSERT INTO ASSIGNMENT VALUES('1016','2018-3-6','18','112','1.2','45.95','55.14');
INSERT INTO ASSIGNMENT VALUES('1017','2018-3-6','18','118','2','18.36','36.72');
INSERT INTO ASSIGNMENT VALUES('1018','2018-3-6','18','104','2.6','96.75','251.55');
INSERT INTO ASSIGNMENT VALUES('1019','2018-3-6','15','103','3','84.5','253.5');
INSERT INTO ASSIGNMENT VALUES('1020','2018-3-7','22','105','2.7','105','283.5');
INSERT INTO ASSIGNMENT VALUES('1021','2018-3-8','25','108','4.2','96.75','406.35');
INSERT INTO ASSIGNMENT VALUES('1022','2018-3-7','25','114','5.8','48.1','278.98');
INSERT INTO ASSIGNMENT VALUES('1023','2018-3-7','22','106','2.4','35.75','85.8');

/* -- */

CREATE TABLE DATA_ORG(
PROJ_NUM varchar(3),
PROJ_NAME varchar(25),
EMP_NUM varchar(3),
EMP_NAME varchar(25),
JOB_CLASS varchar(25),
CHG_HOUR numeric(5,2),
HOURS float(8)
);
INSERT INTO DATA_ORG_1NF VALUES('15','Evergreen','103','June E. Arbough','Elect. Engineer','84.5','23.8');
INSERT INTO DATA_ORG_1NF VALUES('15','Evergreen','101','John G. News','Database Designer','105','19.4');
INSERT INTO DATA_ORG_1NF VALUES('15','Evergreen','105','Alice K. Johnson *','Database Designer','105','35.7');
INSERT INTO DATA_ORG_1NF VALUES('15','Evergreen','106','William Smithfield','Programmer','35.75','12.6');
INSERT INTO DATA_ORG_1NF VALUES('15','Evergreen','102','David H. Senior','Systems Analyst','96.75','23.8');
INSERT INTO DATA_ORG_1NF VALUES('18','Amber Wave','114','Annelise Jones','Applications Designer','48.1','24.6');
INSERT INTO DATA_ORG_1NF VALUES('18','Amber Wave','118','James J. Frommer','General Support','18.36','45.3');
INSERT INTO DATA_ORG_1NF VALUES('18','Amber Wave','104','Anne K. Ramoras *','Systems Analyst','96.75','32.4');
INSERT INTO DATA_ORG_1NF VALUES('18','Amber Wave','112','Darlene M. Smithson','DSS Analyst','45.95','44');
INSERT INTO DATA_ORG_1NF VALUES('22','Rolling Tide','105','Alice K. Johnson','Database Designer','105','64.7');
INSERT INTO DATA_ORG_1NF VALUES('22','Rolling Tide','104','Anne K. Ramoras','Systems Analyst','96.75','48.4');
INSERT INTO DATA_ORG_1NF VALUES('22','Rolling Tide','113','Delbert K. Joenbrood *','Applications Designer','48.1','23.6');
INSERT INTO DATA_ORG_1NF VALUES('22','Rolling Tide','111','Geoff B. Wabash','Clerical Support','26.87','22');
INSERT INTO DATA_ORG_1NF VALUES('22','Rolling Tide','106','William Smithfield','Programmer','35.75','12.8');
INSERT INTO DATA_ORG_1NF VALUES('25','Starflight','107','Maria D. Alonzo','Programmer','35.75','24.6');
INSERT INTO DATA_ORG_1NF VALUES('25','Starflight','115','Travis B. Bawangi','Systems Analyst','96.75','45.8');
INSERT INTO DATA_ORG_1NF VALUES('25','Starflight','101','John G. News *','Database Designer','105','56.3');
INSERT INTO DATA_ORG_1NF VALUES('25','Starflight','114','Annelise Jones','Applications Designer','48.1','33.1');
INSERT INTO DATA_ORG_1NF VALUES('25','Starflight','108','Ralph B. Washington','Systems Analyst','96.75','23.6');
INSERT INTO DATA_ORG_1NF VALUES('25','Starflight','118','James J. Frommer','General Support','18.36','30.5');
INSERT INTO DATA_ORG_1NF VALUES('25','Starflight','112','Darlene M. Smithson','DSS Analyst','45.95','41.4');

/* -- */

CREATE TABLE EMPLOYEE (
EMP_NUM varchar(3),
EMP_LNAME varchar(15),
EMP_FNAME varchar(15),
EMP_INITIAL varchar(1),
EMP_HIREDATE datetime,
JOB_CODE varchar(3)
);
INSERT INTO EMPLOYEE VALUES('101','News','John','G','2000-11-8','502');
INSERT INTO EMPLOYEE VALUES('102','Senior','David','H','1989-7-12','501');
INSERT INTO EMPLOYEE VALUES('103','Arbough','June','E','1997-12-1','503');
INSERT INTO EMPLOYEE VALUES('104','Ramoras','Anne','K','1988-11-15','501');
INSERT INTO EMPLOYEE VALUES('105','Johnson','Alice','K','1994-2-1','502');
INSERT INTO EMPLOYEE VALUES('106','Smithfield','William','','2005-6-22','500');
INSERT INTO EMPLOYEE VALUES('107','Alonzo','Maria','D','1994-10-10','500');
INSERT INTO EMPLOYEE VALUES('108','Washington','Ralph','B','1989-8-22','501');
INSERT INTO EMPLOYEE VALUES('109','Smith','Larry','W','1999-7-18','501');
INSERT INTO EMPLOYEE VALUES('110','Olenko','Gerald','A','1996-12-11','505');
INSERT INTO EMPLOYEE VALUES('111','Wabash','Geoff','B','1989-4-4','506');
INSERT INTO EMPLOYEE VALUES('112','Smithson','Darlene','M','1995-10-23','507');
INSERT INTO EMPLOYEE VALUES('113','Joenbrood','Delbert','K','1994-11-15','508');
INSERT INTO EMPLOYEE VALUES('114','Jones','Annelise','','1991-8-20','508');
INSERT INTO EMPLOYEE VALUES('115','Bawangi','Travis','B','1990-1-25','501');
INSERT INTO EMPLOYEE VALUES('116','Pratt','Gerald','L','1995-3-5','510');
INSERT INTO EMPLOYEE VALUES('117','Williamson','Angie','H','1994-6-19','509');
INSERT INTO EMPLOYEE VALUES('118','Frommer','James','J','2006-1-4','510');

/* -- */

CREATE TABLE JOB (
JOB_CODE varchar(3),
JOB_DESCRIPTION varchar(25),
JOB_CHG_HOUR numeric(5,2)
);
INSERT INTO JOB VALUES('500','Programmer','35.75');
INSERT INTO JOB VALUES('501','Systems Analyst','96.75');
INSERT INTO JOB VALUES('502','Database Designer','105');
INSERT INTO JOB VALUES('503','Electrical Engineer','84.5');
INSERT INTO JOB VALUES('504','Mechanical Engineer','67.9');
INSERT INTO JOB VALUES('505','Civil Engineer','55.78');
INSERT INTO JOB VALUES('506','Clerical Support','26.87');
INSERT INTO JOB VALUES('507','DSS Analyst','45.95');
INSERT INTO JOB VALUES('508','Applications Designer','48.1');
INSERT INTO JOB VALUES('509','Bio Technician','34.55');
INSERT INTO JOB VALUES('510','General Support','18.36');

/* -- */

CREATE TABLE PROJECT (
PROJ_NUM varchar(3),
PROJ_NAME varchar(25),
EMP_NUM varchar(3)
);
INSERT INTO PROJECT VALUES('15','Evergreen','105');
INSERT INTO PROJECT VALUES('18','Amber Wave','104');
INSERT INTO PROJECT VALUES('22','Rolling Tide','113');
INSERT INTO PROJECT VALUES('25','Starflight','101');

Answer Choices:  

ASSIGNMENT

DATA_ORG

EMPLOYEE  

JOB

PROJECT

1NF   

2NF

3NF

BCNF  

Normalized

Intentionally Denormalized

Supplies are dropped from an airplane to land at a certain point. The velocity of the package at release from the airplane is the speed of the airplane, v0x=250ft/s. The acceleration of the package due to gravity isay= -32.2 ft/s2. The displacement in the y direction can be found using the following equation: y - y0 = v0yt + ½ayt2. The final position of the package (y) is on the ground, and y0 represents the height of the plane when the package is dropped. The initial velocity in the y direction (v0y) is zero. Therefore the equation becomes: y = y0 + ½ayt2. The distance the package travels in the x direction can be found from the equation: x - x0 = v0xt + ½axt2. The final position of the package (x) is measured from the initial position (x0). If x0 is taken as zero, and if the plane is traveling at a constant speed (ax is zero), then the equation becomes: x = v0xt. Step-by-step Excel Instructions: 1. Create a table for the initial data: i. In cell B2 put the label “Plane height:” ii. In cell C2 put the initial height of the plane in feet (ft): 350 iii. In cell B3 put the label “Acceleration (g):” iv. In cell C3 put the acceleration of gravity in ft/s^2: -32.2 v. In cell B4 put the label “Velocity:” vi. In cell C4 put the velocity in ft/s: 250 vii. In cells D2, D3, and D4, place the appropriate units 2. Create a table for the data and calculations: i. In cells B6, C6, and D6 respectively, put the labels “t”, “x”, and “y”. ii. In cell B7, enter the initial time: 0 iii. Increment the time in ½-second intervals in column B, from B8 to B16. iv. Center all of the labels and data in columns B, C, and D. v. Enter the formulas to calculate 1) x in cell C7 and 2) y in cell D7. vi. Copy the formula from C7 to C8 through C16 and from D7 to D8 through D16. vii. Format the numbers in the y column to one decimal point. 3. Create separate graphs of 1) “x vs. t” and of 2) “y vs. t”. Using the “x vs. t” graph as an example: i. Select the x data (C7:C16), and then select the “line with markers” plot type. ii. To add the time on the horizontal axis, right-click on the chart and chose “Select Data…”. In the “Select Data Source” dialog box, chose “edit” for the Horizontal (Category). In the next dialog box, simply select (drag the mouse over) the time data (B7:B16). iii. Add major vertical gridlines, chart titles, and axis labels using the buttons under the “Layout” tab. Include the correct units in the axis titles and rotate the vertical axis title to the horizontal. iv. Remove the “series” labels from these two charts (Layout/legend). v. Repeat these steps for the “y vs. t” graph. 4. Create a graph of “x and y vs. t” i. highlighting the x and y data before choosing the chart type or by copying and modifying one of the existing charts using the “Select Data…” command. ii. Change the series labels to read “x” and “y” or “horizontal distance” and “vertical distance”. iii. Add the appropriate chart title and axis labels. 5. Use trial and error: i. Change the values in the “t” column to determine, by trial and error, the time at which the package hits the ground. b. Using the “Goal Seek” tool: i. Goal Seek can be found under the “Data” tab, “What-If Analysis” button. ii. To use goal seek, open the Goal Seek dialog box: Set cell: D16, To Value: 0, By changing cell: B16. iii. Record your answer in B18, then return the spreadsheet to its initial configuration. What to Submit: Write a memorandum to the instructor that explains the data tables and the graphs. DO NOT refer to “cell B18” or any other cell (When looking at the data table in a Word document, how can you locate cell D9?). 1. Copy and paste the graphs (3) and the data tables into a Word document. It is recommended that you paste the data tables and each graph separately as a Picture (Windows or Enhanced Metafile). Do not paste the data or the graphs as a Graphic Object, or as an Excel Object (use “Paste Special” found under “Paste” on the Ribbon). Use appropriate titles or captions. 2. Explain each graph and data table. In the text, refer to each graph and table using appropriate labels. 3. Explain the number (time) obtained by using the “Goal Seek” function. 4. Carefully arrange the text, data tables, and charts to print correctly (use Print Preview). 5. Insert page numbers and a header if you have multiple pages.

HIMT 2150

Healthcare Statistics

You are the Health Information Management Director at Georgetown Hospital. Georgetown is a 75 bed, 20 bassinet general hospital located in Charleston, South Carolina. A flu epidemic in Charleston stretched the capacity of the facility, so 10 adult beds were set up in the solarium for the entire month of March 2014.

Your responsibilities as HIM director include the maintenance and reporting of common hospital statistics. As often happens during budget and tax season, requests for information begin to arrive from a number of sources throughout the hospital. Make calculations as necessary and construct appropriate displays for each question. Be sure your displays have effective titles, that the page orientation is appropriate, etc.

You must use Excel to develop the graphs and PowerPoint to develop your displays. Graphs for all 6 scenarios should be combined into a single PowerPoint presentation.

Develop one or more displays for each of the scenarios that follow:

1. Your hospital administrator would like to consider requesting a certificate of need for five more adult beds. He is having lunch with the head of the hospital’s governing board tomorrow, and would like to discuss the issue. He asks you for information on percentage of occupancy at Georgetown Hospital last year. Since the governing body executive is very visual, he’d like to present it in some kind of graphic form. Adult/child occupancy data is listed in the table below. Make your calculations and prepare a display the administrator can use for this meeting.

GEORGETOWN HOSPITAL

Occupancy Data on Adults and Children

January – December 2013

2. The day after your administrator’s lunch with the head of the board, he stops by to ask you for more occupancy information. The governing body head was encouraging, so they are going to put the question on the agenda for the next full board meeting. In addition to the information you have already provided on percentage of occupancy, the administrator would like to see information on the average length of stay this past year. Calculate the length of stay and develop a display the administrator can use at the full board meeting.

3. As you get together this information, you notice that patients on the general medicine floor have unusually long lengths of stay, which of course drives up your hospital’s length of stay. You decide that, in addition to reporting the hospital’s average length of stay, you want to show them the average LOS for Medicine and Surgery. The breakout data is as follows:

GEORGETOWN HOSPITAL

Average Length of Stay (in days) for Adults and Children

Medicine and Surgical Services, 2013

4. Your hospital marketing director is going to address the local chapter of the Expectant Mother’s Association. She would like to take along a display of the number of births at the hospital during the past year, and she’s like to look really upbeat and “spiffy”. Your data is as follows:

GEORGETOWN HOSPITAL

Live Births – 2013

5. The board of directors will discuss income at their next meeting. You have been asked to prepare a handout that illustrates the sources of the hospital’s income. You visit the finance office and obtain the following information:

GEORGETOWN HOSPITAL SOURCES OF HOSPITAL INCOME

2013

6. Even though Georgetown Hospital is small, your HIM department is pretty large. Your department has responsibility for medical records, of course; but you are also the director for quality management functions at Georgetown. You have three supervisors that help you run the department – one who supervises the QM functions (4 technical and one clerical worker), one who is in charge of record assembly (including scanning), analysis, completion, main file and release of information (12 clerks and one technical worker) and one who is the lead coder (she supervises 6 coders). Construct a chart to illustrate the organization of your department.

⦁   CASE STUDY

The Allure of Franchising

Neil Erlich knew that he wanted to be an entrepreneur when he helped start a contracting business when he was just 14 years old. During his junior year at Sonoma State University, Erlich, with help from his father, a corporate executive, began investigating franchise options that would suit his interests and skills. They honed in on the automotive service industry and reviewed the regulations of several franchises, including Total, Jiffy Lube, and Midas, before settling on Express Oil Change. Erlich was particularly impressed with the support that Express Oil Change offered its franchisees. When Erlich graduated with a business degree, his father put up $375,000 to help him purchase and set up the $1.5 million franchise operation. Erlich, who is the youngest franchisee in the Express Oil Change system, sees the franchisor’s support as one of the greatest benefits of choosing to open a franchise rather than an independent business of his own.” The franchisor is there for you," he says. "It’s very comforting. "

Like Erlich, a growing number of college graduates and twenty-something adults who are disenchanted w*+
th the prospects of a dull job in the corporate grind are looking to franchising as a promising career choice. Indeed, franchising is attracting people of all ages and backgrounds, from corporate dropouts and military veterans to retired Baby Boomers and corporate castoffs.
” People say, ’I put 20 years into a company, and because they ran into some tough times, they let me go,’” explains Ray Titus, head of the United Franchise Group.” They think, ’Do I want to put myself into a position where I may get laid off again?’ Instead, they take control of their future by running their own businesses." For many of them, franchising is the perfect fit.

Retirees who are looking for second careers also are turning to franchising as well. "They’ve got school-of-hard-knocks experience and business skills that they can apply on day one at a franchise," says Michael Shay of the International Franchise Association. Judy Divita, a retired corporate human resources manager, and her husband Charlie, a retired college professor and consultant, decided to embark on second careers as franchisees rather than stop working. After researching franchise opportunities, they opened a Subway franchise in Columbia, South Carolina, not far from where Charlie had taught at the University of South Carolina. Over the next nine years, the Divitas opened five more sandwich shops in Columbia, including one on the university campus. In addition to their built-in market of college students, they target the players on the athletic teams that come to campus to participate in more than 400 sporting events ranging from baseball and football to basketball and volleyball each year. The Divitas have won the MVP Award Winner for Innovation from Multi-Unit Franchisee magazine. Their nine outlets generate $4.5 million in annual sales, and the couple’s goal is to have 13 Subway locations within 10 years.” The franchise gives you the basic things to put you in business pretty quickly," says Charlie.” You have to take it beyond that and be creative to come up with novel ways of doing things that are particular to your company and your community.”

Franchising can be the ideal path to owning a business for people in almost any phase of professional life, whether they are retirees looking for a new direction and extra income or recent college graduates who are ready to embark on exciting careers. "Boosted by a brand name, training, advertising, and an established business plan, a franchise can ease the struggle and the risk of opening a business and still let you call some shots,” says one business writer.

⦁   QUESTIONS:
Answer the below questions based on the text above, the course material, your own experience and information search on the internet and in academic sources from the AOU e-library. (i.e. companies’ webpages, AOU e-library databases…)

⦁   These examples show people at different stages of their professional lives choosing to become business owners with the help of a franchise. What conclusions can you draw from their stories about the benefits and appeal of franchising? (300 words – 40- marks)

⦁   What are the disadvantages of investing in a franchise? (200 words – 30 marks)

⦁   Suppose that one of your friends who is about to graduate is considering purchasing a franchise. What advice would you offer him or her before signing the franchise contract? (200 words – 30 marks)

NEW YORK (CBSNewYork) — A Brooklyn family is dealing with absolute devastation after their only child died following a fatal mistake. Their baby boy was taken to the hospital with just a fever and was given what turned out to be a deadly dose of medication.

Earlier Wednesday afternoon, the New York City Medical Examiner ruled the death of 6-month-old Amaan Ahmmad an accident. The ME said the death was the result of complications following administration of an adult dose of the antibiotic azithromycin, which is commercially known as Zithromax.

Instead of looking forward to a lifetime of birthdays, the family is now making funeral arrangements for their child. Ummay Sultana and Amain Ahmmad said their son became ill last Friday, so they took him to Brookdale, where he was born.

“He catch cold and we took him to the emergency,” Sultana said.

Hospital records showed baby Amaan was brought to the ER “alert and responsive” and with the exception of a fever, which was reportedly around 100, the nursing staff did not list any other visible symptoms.

But an examination led to a diagnosis of clinical pneumonia. Amaan was transferred to the pediatric unit and given a dose of the azithromycin through an IV drip in his right arm.

According to the nursing notes, at least 36 minutes passed before the hospital staff realized something was wrong.

CBS 2’s Jay Dow spoke with the parents Wednesday and asked the boy’s father who he blames for his son’s death.

“Hospital management, doctor, nurse—of emergency,” he replied.

“I’m like ‘look, look my baby’s dying! My baby’s dying!’ and then nurse came over and said ‘no, you’re baby’s pretty good. He’s sleeping,’” Sultana told CBS 2’s Sean Hennessey.

A copy of the hospital’s discharge summary states the child was given “Azithromycin (500mg), in error” — which led to “cardiac shock.”

Family pediatrician Dr. Suzanne Loiselle said that dosage is more typical for an adult and not a 17-pound baby like Amaan.

“Nobody can feel worse for the family than the doctors and nurses that were involved in this child’s care,” Loiselle said. “About 80 milligrams would be appropriate for a child roughly in his weight class.”

Less than 24 hours after the overdose, Ummay and Amain were told their son was brain dead. Amaan was taken off a respirator on Monday.

“They told us there is no hope because his head is totally collapsed,” his father told Hennessey.

Brookdale Hospital would not answer questions from 1010 WINS or CBS 2, saying only: “We are investigating the circum- stances of this tragic incident and express our condolences to the Ahmmad family.”

“I never think like that he pass away forever,” Sultana said. “I thought he’s gonna come back.”

The two first-time parents said they are both devastated and outraged over a fatal medical mistake that cut short their baby’s

life just as it was getting started.

1) Some medications are formulated such that there is a slow release of the active ingredients. Such formulations are known as “extended release.” Azithromycin ER is a single-dose, extended release formulation. The recommended dosage for a child 6 months and older who is brought to the Emergency Room with community acquired pneumonia is 60 mg/kg administered orally. Azithromycin (immediate release) has much faster onset of action and acts almost immediately when administered intravenously (by IV). Clinicians exercise clinical judgment when deciding whether or not to treat a pediatric patient with azithromycin intravenously. If therapy is deemed necessary, a dose of 10 mg/kg for those age 6 months to 16 years is considered reasonable.

(a) Based on the information above, what would be an appropriate dose of azithromycin ER for a baby weighing 17 lbs such as Amaan? (3 points) Note: The dosage used in this problem was obtained from the reference:

http://www.drugs.com/dosage/azithromycin.html#Usual_Pediatric_Dose_for_Pneumonia

(b) How does the appropriate dose of azithromycin ER for a baby weighing 17 lbs such as Amaan compare with the dose of azithromycin that was given intravenously to Amaan. (3 points)

(c) What would be an appropriate dose of azithromycin (immediate release) administered by IV for a baby weighing 17 lbs such as Amaan? How does your calculated dose compare with that indicated by Dr. Loiselle? (3 points)

Salim was a Sales Manager for XYZ Company in Muscat City branch. A week ago,
he was promoted and shifted to Head Office as Manager - Product Management
for a division of products which he was not very familiar with. Three days ago, the
company VICE PRESIDENT - Mr. Hamed, convened a meeting of all Product
Managers. Salim's new boss (Senior Manager – Ms. Asma) was not able to attend
due to some other preoccupation. Hence, the Marketing Director, Abdullah -
asked Salim to attend the meeting as this would give him an exposure into his
new role. At the beginning of the meeting, Abdullah introduced Salim very briefly
to the VICE PRESIDENT. The meeting started with an address from the VICE
PRESIDENT and soon it got into a series of questions from him to every Product
Manager. Hamed, of course, was pretty thorough with every single product of the
company and he was known to be pushy and a blunt veteran in the field. Most of
the Product Managers were very clear of Hamed's ways of working and had
thoroughly prepared for the meeting and were giving to the point answers.
Hamed then started with Salim. Salim being new to the product, was quite
confused and fared miserably. Abdullah immediately understood that Hamed had
possibly failed to remember that Salim was new to the job. He thought of
interrupting Hamed's questioning and giving a discrete reminder that Salim was
new. But by that time, Hamed who was pretty upset with the lack of preparation
by Salim made a public statement "Gentlemen, you are witnessing here an
example of casual work and this can't be excused". Now Abdullah was in two
minds - should he interrupt Hamed and tell him that Salim is new in that position
OR should he wait till the end of the meeting and tell Hamed privately. Abdullah
chose the second option. Salim was visibly angry at the treatment meted out by
Hamed but he also chose to keep mum. Hamed quickly closed the meeting saying
that he found in general, lack of planning in the department and asked Abdullah
to stay back in the room for further discussions. Before Abdullah could give any
explanation on Salim, Hamed asked him "Tell me openly, Abdullah, was I too
rough with that boy?" Abdullah said "Yes, you were. In fact, I was about to remind
you that Salim is new to the job". Hamed explained that the fact that Salim was
new to the job didn't quite register with him during the meeting. Hamed admitted
that he had made a mistake and asked his secretary to get Salim report to the
room immediately. A confused and uncomfortable Salim reported to Hamed's
room after few minutes. Hamed looking Salim straight into his eyes said "I have
done something which I should have never even thought of and I want to
apologies to you. It is my mistake that I did not recollect that you were new to the
job when I was questioning you". Salim was left speechless. Hamed continued "I
would like to state few things clearly to you. Your job is to make sure that people
like me and your bosses do not make unintelligent decisions. We have good
confidence in your abilities and that is why we have brought you to the Head
Office. For everybody, time is required for learning. I will expect you to know all
the nuances of your product in three months time. Until then you have my
complete confidence". Vice president closed the conversation with a big
reassuring handshake with Salim.
Questions:
1. Is it necessary for Mr. Hamed to apologies to such a junior employee like Salim?
If you were in Salim's place, how would you to respond to Hamed's apology?
2. Was Hamed correct in saying that Salim is there to correct the "unintelligent
mistake" of his boss and Hamed? If yes or no then how?
3. Did Abdullah make a mistake by not intervening during the meeting and correct
Hamed's misconception about Salim? Provide your justification?
4. As an HR person, how would you define the character of Hamed - mistreatment
but later regretting? Does his attitude need to be corrected? If yes or no give your
suggestions?
5. If you are the Vice President of XYZ Company, briefly discuss how you will
handle the situation?