"Accounting Valuation and Ethics" Please respond to the following: As a CFO of a publically traded company, suggest how you would create an ethical environment to ensure account balances are correctly valued and reported so that information is reliable for users. Provide support for your rationale. Assess the ethical requirements as outlined in the Sarbanes-Oxley Act, indicating whether or not you believe the requirements are adequate to ensure integrity in financial accounting and reporting activities. Suggest improvements that may be needed while providing support for your rationale.

A company needs to open new warehouses to distribute products to the customers in two different regions. The company has to decide where to open warehouses and in which capacity should be preferred for them. Past data shows that average daily demand of customers are 1000 units for the customers in region 1 and 1200 units for the customers in region 2. There are two possible locations to open a warehouse. The daily equivalent setup cost of opening a warehouse at location alternative A requires $1,000 for a warehouse with delivery capacity of 1000 units per day and it requires $1,500 for a warehouse with delivery capacity of 2200 units per day. The daily equivalent setup cost of opening a warehouse at location alternative B is $550 for a warehouse with a maximum capacity of 1200 units per day. Delivery costs are as follows: $1 from a warehouse located at A to the customers in region 1; $1.5 from a warehouse located at A to the customers in region 2; $1.5 from a warehouse located at B to the customers in region 1; $1 from a warehouse located at B to the customers in region 2. Develop a linear mathematical model for minimizing total daily equivalent cost of distribution system

Luther Company’s selected transactions during 2017, 2018, 2019 and 2020 are as follows:

Required: Record the transactions and adjusting entries in general journal form.

Europa Publications, Inc. specializes in reference books that keep abreast of the rapidly changing political and economic issues in Europe. The results of the company’s operations during the prior year are given in the following table. All units produced during the year were sold. (Ignore income taxes.)

Required:

1. 1-a. Prepare a traditional income statement for the company.

2. 1-b. Prepare a contribution income statement for the company.

3. 2. What is the firm’s operating leverage for the sales volume generated during the prior year?

4. 3. Suppose sales revenue increases by 12 percent. What will be the percentage increase in net income?

5. 4. Which income statement would an operating manager use to answer requirement (3)?

Europa Publications, Inc. specializes in reference books that keep abreast of the rapidly changing political and economic issues in Europe. The results of the company’s operations during the prior year are given in the following table. All units produced during the year were sold. (Ignore income taxes.)

Sales revenue $ 1,850,000

Manufacturing costs: Fixed 478,000

Variable 974,000

Selling costs: Fixed 37,000

Variable 67,000

Administrative costs: Fixed 77,000

Variable 32,000 Required:

1-a. Prepare a traditional income statement for the company. 1-b. Prepare a contribution income statement for the company.

2. What is the firm’s operating leverage for the sales volume generated during the prior year?

3. Suppose sales revenue increases by 12 percent. What will be the percentage increase in net income?

4. Which income statement would an operating manager use to answer requirement (3)?

Subject: BUSINESS POLICY

a. For each company listed below, compute Return on Sales (ROS),which reveals the portion of each revenue dollar that results in profit. ROS =Net income / Sales revenue.

b. Wal-Mart Stores has (greater /Iess) revenue than Microsoft, but Microsoft has a (higher / lower) ROS ratio than Wal-Mart. The ROS ratio for Microsoft indicates _____________ % of every revenue dollar resulted in profit (net income), but for Wal-Mart Stores only ____________ % of every revenue dollar resulted in profit. Ford Motor Company reports a (positive I negative) ROS,indicating (revenue / net income) is negative.

c. For Wal-Mart, _______________ cents of each revenue dollar went to pay for all of the costs of running the business, leaving _______________ cents of each revenue dollar for profit.

d. The corporation with the strongest ROSratio is (MSFT/ WMT/ F).

How can a company increase its ROSratio?

e. Does a low ROSratio indicate a weak corporation? (Yes/ No) Why?

elaborate Acquisitions implemented by KNM GROUP in 2004 (800 words)

Use view of Corporate strategy analysis.

Please answer with directly, (don't write something no related)

i will rate the answer

The current year financial statements for Blue Water Company and Prime Fish Company are presented below. Blue Water Prime Fish Balance sheet: Cash $ 41,100 $ 20,900 Accounts receivable (net) 38,500 31,300 Inventory 98,500 40,600 Property & equipment (net) 141,500 402,200 Other assets 84,100 306,000 Total assets $ 403,700 $ 801,000 Current liabilities $ 98,500 $ 50,500 Long-term debt (interest rate: 15%) 65,700 60,200 Capital stock ($10 par value) 148,700 513,000 Additional paid-in capital 29,100 106,100 Retained earnings 61,700 71,200 Total liabilities and stockholders’ equity $ 403,700 $ 801,000 Income statement: Sales revenue (1/2 on credit) $ 445,500 $ 801,000 Cost of goods sold (240,500 ) (400,100 ) Operating expenses (161,200 ) (311,100 ) Net income $ 43,800 $ 89,800 Other data: Per share stock price at end of current year $ 22.1 $ 16 Average income tax rate 45 % 45 % Dividends declared and paid in current year $ 33,100 $ 148,500 Both companies are in the fish catching and manufacturing business. Both have been in business approximately 10 years, and each has had steady growth. The management of each has a different viewpoint in many respects. Blue Water is more conservative, and as its president has said, “We avoid what we consider to be undue risk.” Neither company is publicly held. Required: 1. Complete a schedule that reflects a ratio analysis of each company. (Round your intermediate calculations and final answers to 2 decimal places. Enter percentage answers rounded to 2 decimal places (i.e. 0.1234 should be entered as 12.34).) Ratio BLUE WATER COMPANY PRIME FISH COMPANY Profitability ratios: 1. Return on equity 2. Return on assets 3. Financial leverage percentage 4. Net profit margin 5. Earnings per share Turnover ratios: 6. Total asset turnover 7. Fixed asset turnover 8. Receivable turnover 9. Inventory turnover Liquidity ratios: 10. Current ratio 11. Quick ratio 12. Cash ratio Solvency ratios: 13. Debt/equity ratio Market ratios: 14. Pricelearnings ratio 15. Dividend yield ratio

One of the major measures of the quality of service provided by any organization is the speed with which it responds to customer complaints. A large family-held department store selling furniture and flooring, including carpet, had undergone a major expansion in the past several years. In particular, the flooring department had expanded from 2 installation crews to an installation supervisor, a measurer, and 15 installation crews. The store had the business objective of improving its response to complaints. The variable of interest was defined as the number of days between when the complaint was made and when it was resolved. Data were collected from 40 complaints that were made in the past year (furniture2.xlsx). (a) The installation supervisor claims that the mean number of days between the receipt of a complaint and the resolution of the complaint is 30 days. To test the claim, build null and alternative hypotheses (for a two-tail test). (b) To conduct a two-tail t test based on the hypotheses in (a), identify the rejection regions (two sides) given the 99% critical level. (c) Using the given data, compute the test statistic for the t test. (d) At the 0.01 level of significance, should the claim be rejected (i.e., the mean number of days is different from 30)? In the critical-value approach, what is your conclusion based on (b) and (c)? Explain. (e) Using the test statistic in (c), determine the p-value for the t test. (f) In the p-value approach, what is your conclusion based on (e)? Explain.

Depreciation and advance prepayments

Pan Asia Airlines was founded in 1980. Headquartered in Hong Kong, the publicly traded company has routes throughout Asia and to major airports throughout Europe and North America. While Pan Asia charges a premium of 10 to 20% over its competitors, customers have not been deterred from using the airline because of the high quality of service.

A key reason for this reputation for high quality is the company's relatively young fleet of aircraft, with an average age of five years and no plane older than eight years. To maintain a young fleet, Pan Asia replaces its planes regularly to ensure that the planes are equipped with the latest technology and operate efficiently. Other airlines typically have fleets with an average age of 10 years, while discount airlines have even older fleets, with an average age of 15 years. A well-maintained aircraft can last for 20 to 25 years, or even more in some cases.

Each of five regional managers has responsibility for all investment and operating decisions for his/her region. The company evaluates each region as a profit centre. The decentralized structure allows each region to respond quickly to changes in its market.

Financially, the company has been consistently profitable in recent years. Stock analysts have projected a target price that is 20% higher than the current price of $32.50 per share, based on their projections of earnings before interest, taxes, depreciation, amortization (EBITDA). Because of its solid financial performance, Pan Asia has earned a high credit rating, allowing it to borrow at a rate of 6%. Debt currently comprises about 40% of assets, while liquid assets amount to about 10% of assets, which total approximately $2 billion.

It is now February 2012. A new chief executive officer (CEO), William Chan, has been appointed following the retirement of the founding CEO. Chan has a background in mechanical engineering and previously served as Pan Asia's chief operating officer for the past 15 years. While Chan has a thorough understanding of the company's central operations, he is less familiar with other aspects of the company. Consequently, he has spent the last three months reviewing the company's marketing program, human resources, information systems, treasury, as well as accounting.

During this review, Chan has identified a few issues that he would like you, the chief financial officer, to explain to him.

1. The CEO noted that Pan Asia uses the declining-balance method of depreciation. He also noted that many (though not all) competitors use the straight-line method. He wonders whether Pan Asia should consider conforming to the majority in the industry.

2. One of Pan Asia’s manufacturers has recently started a promotion that offers a significant discount to airlines that make advance payments on their aircraft orders. The discount amounts to 15% of the regular price. To obtain the discount, Pan Asia would need to pay in full when it orders a plane, rather than when the manufacturer delivers it. Typically, the amount of time between order and delivery is two years. Chan is unsure whether he should encourage the regional managers to take up this offer. He is also wondering what the effects might be for the financial statements.

Required: Draft a memo to the CEO that addresses the issues raised.