I have the following code for my java class assignment but i am having an issue with this error i keep getting.

On the following lines:

return new Circle(color, radius);

return new Rectangle(color, length, width);

I am getting the following error for each line:

"non-static variable this cannot be referenced from a static context"

Here is the code I have:

/*
* ShapeDemo - simple inheritance hierarchy and dynamic binding.
*
* The Shape class must be compiled before the derived classes
* Circle, Rectangle, and Square can be compiled.
*
* The Shape, Circle, Rectangle, and Square classes
* must be compiled before this democlass can be compiled.
*
*/

import java.util.Scanner;

public class ShapeDemo
{
  
/**
* getShape - read a Shape's description and create the specific object
*/
public static Shape getShape()
{
Scanner sc = new Scanner(System.in);

// Continue asking for input until a valid shape entered, or 'done'
do {
System.out.println("\nEnter the shape's color (or 'done')...");
String color = sc.nextLine();
if (color.equalsIgnoreCase("done")) {
return null;
}
if (!color.equalsIgnoreCase("red") &&
!color.equalsIgnoreCase("blue") &&
!color.equalsIgnoreCase("green")) {
System.out.println(" Error - color must be 'red', 'blue', or 'green'");
continue;
}

System.out.println("Enter shape type...");
String name = sc.nextLine();
if (name.equalsIgnoreCase("circle")) {
System.out.println("Enter the radius...");
double radius = sc.nextDouble();
if (radius < 0.0) {
System.out.println("Radius must be non-negative");
continue;
}
return new Circle(color, radius);
} else if (name.equalsIgnoreCase("rectangle")) {
System.out.println("Enter the length and width...");
double length = sc.nextDouble();
double width = sc.nextDouble();
if (length < 0.0 || width < 0.0) {
System.out.println("length and width must be non-negative");
continue;
}
return new Rectangle(color, length, width);
} else if (name.equalsIgnoreCase("square")) {
System.out.println("Enter the length of a side...");
double length = sc.nextDouble();
if (length < 0.0) {
System.out.println("length must be non-negative");
continue;
}
return new Square(color, length);
} else {
System.out.println("shape name must be 'circle', 'rectangle', or 'square'");
continue;
}
} while (true);

}

/**
* main
*/
public static void main (String[] args)
{
Scanner sc = new Scanner(System.in);

// Create an array of Shape references larger than the maximum number
// of Shapes to be read (could also prompt for size).
Shape[] slist = new Shape[50];

// Read shapes until null returned. Note that this code doesn't know what
// specific type of Shape has been returned.
System.out.println("Enter a list of shapes - 'done' to end");
Shape sp;
int numShapes = 0;
while (null != (sp = getShape())) {
slist[numShapes++] = sp;
}

// Print the list of shapes. Get the specific Shape's information using
// dynamic binding to call the implementation of toString() defined for
// the actual type of Shape referenced.
System.out.println("\nThe list of shapes entered...");
for (int n = 0; n < numShapes; ++n) {
System.out.println(" " + slist[n].toString());
}

// Sort the list of shapes into ascending order by area. Get the each
// specific shape's area using dynamic binding to call the implementation
// of area() defined for the the actual type of Shape referenced.
System.out.println("\nSorting shapes into order by area...");

// TODO - call the sortArray method to sort the array of Shapes.
// Pass slist and numShapes as parameters.
sortArray(slist,numShapes);
// Print the sorted list of shapes.
System.out.println("\nThe sorted list of shapes...");
for (int n = 0; n < numShapes; ++n) {
System.out.println(" " + slist[n].toString());
}

// Keep console window alive until 'enter' pressed (if needed).
System.out.println();
System.out.println("Done - press enter key to end program");
String junk = sc.nextLine();
}

// TODO - add the sortArray method to sort the array of Shapes into
// ascending order. The array and number of shapes in it must be passed
// as parameters.
public static void sortArray(Shape[] slist, int numShapes)
{
int i,j;
Shape temp;
for(i=0; i<numShapes-1; i++)
for(j=i+1; j<numShapes; j++)
if(slist[i].area()>slist[j].area()){
temp=slist[i];
slist[i]=slist[j];
slist[j]=temp;
}
}
  
public class Shape
{
private String color;
public Shape(String color)
{
this.color=color;
}
public String getColor()
{
return color;
}
public double area()
{
return 0.0;
}
public String toString()
{
return "generic shape";
}
}
  
public class Circle extends Shape
{
private double radius;
public Circle(String color, double radius)
{
super(color);
this.radius=radius;
}
public double area()
{
return (Math.PI*Math.pow(this.radius, 2));
}
public double getRadius()
{
return radius;
}
public String toString()
{
return getColor()+" Circle with radius of "+radius+" and area of "+area();
}
}
  
public class Square extends Shape
{
private double length;
public Square(String color, double length)
{
super(color);
this.length=length;
}
public double area()
{
return length*length;
}
public double getLength()
{
return length;
}
public String toString()
{
return getColor()+" Square with side length of "+length+" and area of "+area();
}
}
  
public class Rectangle extends Square
{
private double width;
public Rectangle(String color, double length, double width)
{
super(color, length);
this.width=width;
}
public double area()
{
return getLength()*width;
}
public double getWidth()
{
return width;
}
public String toString()
{
return getColor()+" Rectangle with length of "+getLength()+" and width of "+width+" and area of "+area();
}
}
  
}

Enterprise resource planning (ERP) integrates all departments and functions throughout an organization into a single IT system (or integrated set of IT systems) so that employees can make decisions by viewing enterprisewide information on all business operations.

ERP as a business concept resounds as a powerful internal information management nirvana: Everyone involved in sourcing, producing, and delivering the company’s product works with the same information, which eliminates redundancies, reduces wasted time, and removes misinformation.

ENTERPRISE RESOURCE PLANNING BUSINESS DILEMMA:

You have recently started selling a few new products including customized CDs, customizable coffee presses, and coffee-of-the-month and tea-of-the-month programs. Each time you develop a new product you are forced to create an entire new system to track sales. You are not sure why the accounting system you purchased forces you to do this, but you are stuck with this system until you can replace it. You quickly notice that separate systems for each different line of business including coffee, tea, CDs, equipment, programs, etc. is going to hurt your business. You notice that each system works independently to perform its job of creating, updating, and maintaining sales information, but you are wondering how you are going to operate the business as a whole.

Create a list of issues you will encounter if you continue to run the business with separate systems, performing the same operations, for each different product.

What could happen to the cafe if you cannot correlate the details of each system?

How could separate systems for each product hurt marketing campaigns?

Be sure to highlight at least 10 issues where separate systems could cause problems running your business.

At The Broadway Cafe customers receive more than just a great cup of coffee - they receive exposure to music, art, literature, and town events. The cafe’s calendar for programs gives their customers a quick view into their corner of the world - from live music and art displays, to volunteering or a coffee tasting. The cafe offers the following:

Music Center - Information of all live music events occurring in the area. The store also hosts an open microphone two nights a week for local musicians.

Art Gallery - A space in the store filled with great pieces from local artists.

Book Clubs - Customers can meet to discuss current and classic literature.

Coffee Sampler - Customers can sample coffees from around the world with the experts.

Community Events - Weekly meetings are held where customers can find ways to become more involved in their community.

Brewing Courses - Offer the finer details of the brewing, grinding, and blending equipment for sale in the cafe - from the traditional press to a digital espresso machine. Also, includes a trouble-shooting guide developed by brewing specialists.

The Broadway Cafe sales are great and profits are soaring, however, current operations need a complete overhaul. Your grandfather built the business piece-by-piece over the last few decades. The following offers a quick look at current operations.

The cafe does not receive any information on how many of its customers attend live music events. Musicians typically maintain a fan e-mail listing and CD sales records for the event, however, this information is not always provided to the store.

Book club events are booked and run through the local bookstore - Pages Up. Pages Up runs a tab during the book club and provides the cafe with a check at the end of each month for all book club events. The cafe has no access to book club customer information or sales information.

Artist gallery is run by several local artists who pay the cafe a small commission on each sale. The cafe has no input into the art contained in the store or information on customers who purchase art.

Coffee sampler events are run through the cafe’s primary operations.

Community event information is open to all members of the community. Each event is run by a separate organization, which provides monthly event feedback to the cafe in a variety of formats from hand written notes, to Word, to Access files.

Brewing and machine resource courses are run by the equipment manufacturer and all customer and sales information is provided to the cafe in a Word document at the end of each year.

You want to revamp the way the cafe operates so you can take advantage of marketing and sales opportunities across its many different lines of business. For example, offering customers who attend book club events discounts on art and brewing and machine resource courses. You also want to gain a better understanding of how the different events impact sales. For example, should you have more open microphone nights or more book clubs? Currently, you have no way to tell which events result in higher sales.

Create an ERP strategy to help gain visibility across the cafe.

Create a list of issues you will encounter if you continue to run the business with separate systems, performing the same operations, for each different product.

What could happen to the cafe if you cannot correlate the details of each system?

How could separate systems for each product hurt marketing campaigns?

Be sure to highlight at least 10 issues where separate systems could cause problems running your business.

Create an ERP strategy to help gain visibility across the cafe. Please consider all that happens in the cafe from the information listed above

The Federal Reserve on Thursday took additional actions to provide up to $2.3 trillion in loans to support the economy. This funding will assist households and employers of all sizes and bolster the ability of state and local governments to deliver critical services during the coronavirus pandemic.

"Our country's highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus," said Federal Reserve Board Chair Jerome H. Powell. "The Fed's role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible."

The Federal Reserve's role is guided by its mandate from Congress to promote maximum employment and stable prices, along with its responsibilities to promote the stability of the financial system. In support of these goals, the Federal Reserve is using its full range of authorities to provide powerful support for the flow of credit in the economy.

The actions the Federal Reserve is taking today to support employers of all sizes and communities across the country will:

• Bolster the effectiveness of the Small Business Administration's Paycheck Protection Program (PPP) by supplying liquidity to participating financial institutions through term financing backed by PPP loans to small businesses. The PPP provides loans to small businesses so that they can keep their workers on the payroll. The Paycheck Protection Program Liquidity Facility (PPPLF) will extend credit to eligible financial institutions that originate PPP loans, taking the loans as collateral at face value;
• Ensure credit flows to small and mid-sized businesses with the purchase of up to $600 billion in loans through the Main Street Lending Program. The Department of the Treasury, using funding from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) will provide $75 billion in equity to the facility;
• Increase the flow of credit to households and businesses through capital markets, by expanding the size and scope of the Primary and Secondary Market Corporate Credit Facilities (PMCCF and SMCCF) as well as the Term Asset-Backed Securities Loan Facility (TALF). These three programs will now support up to $850 billion in credit backed by $85 billion in credit protection provided by the Treasury; and
• Help state and local governments manage cash flow stresses caused by the coronavirus pandemic by establishing a Municipal Liquidity Facility that will offer up to $500 billion in lending to states and municipalities. The Treasury will provide $35 billion of credit protection to the Federal Reserve for the Municipal Liquidity Facility using funds appropriated by the CARES Act.

The Main Street Lending Program will enhance support for small and mid-sized businesses that were in good financial standing before the crisis by offering 4-year loans to companies employing up to 10,000 workers or with revenues of less than $2.5 billion. Principal and interest payments will be deferred for one year. Eligible banks may originate new Main Street loans or use Main Street loans to increase the size of existing loans to businesses. Banks will retain a 5 percent share, selling the remaining 95 percent to the Main Street facility, which will purchase up to $600 billion of loans. Firms seeking Main Street loans must commit to make reasonable efforts to maintain payroll and retain workers. Borrowers must also follow compensation, stock repurchase, and dividend restrictions that apply to direct loan programs under the CARES Act. Firms that have taken advantage of the PPP may also take out Main Street loans.

The Federal Reserve and the Treasury recognize that businesses vary widely in their financing needs, particularly at this time, and, as the program is being finalized, will continue to seek input from lenders, borrowers, and other stakeholders to make sure the program supports the economy as effectively and efficiently as possible while also safeguarding taxpayer funds. Comments may be sent to the feedback form until April 16.

To support further credit flow to households and businesses, the Federal Reserve will broaden the range of assets that are eligible collateral for TALF. As detailed in an updated term sheet, TALF-eligible collateral will now include the triple-A rated tranches of both outstanding commercial mortgage-backed securities and newly issued collateralized loan obligations. The size of the facility will remain $100 billion, and TALF will continue to support the issuance of asset-backed securities that fund a wide range of lending, including student loans, auto loans, and credit card loans.

The Municipal Liquidity Facility will help state and local governments better manage cash flow pressures in order to continue to serve households and businesses in their communities. The facility will purchase up to $500 billion of short term notes directly from U.S. states (including the District of Columbia), U.S. counties with a population of at least two million residents, and U.S. cities with a population of at least one million residents. Eligible state-level issuers may use the proceeds to support additional counties and cities. In addition to the actions described above, the Federal Reserve will continue to closely monitor conditions in the primary and secondary markets for municipal securities and will evaluate whether additional measures are needed to support the flow of credit and liquidity to state and local governments.

All of the facilities mentioned above are established by the Federal Reserve under the authority of Section 13(3) of the Federal Reserve Act, with approval of the Treasury Secretary.

The Federal Reserve remains committed to using its full range of tools to support the flow of credit to households and businesses to counter the economic impact of the coronavirus pandemic and promote a swift recovery once the disruptions abate

1. Describe some of the policies in the press release that the Fed has enacted and how they will help businesses in the economy.

1) What is an important aspect of ethics that will keep you out of “The Gray Zone”?

Question 1 options:

Question 2 (5 points)

2) Who are project stakeholders?

Question 2 options:

Question 3 (5 points)

3) OSHA stands for______?

Question 3 options:

Question 4 (5 points)

4) Which of the following would NOT be considered a Direct Cost?

Question 4 options:

Question 5 (5 points)

5) Which form of company ownership includes two or more owners whose personal assets are at risk?

Question 5 options:

Question 6 (5 points)

6) Which one is not considered a form of ADR?

Question 6 options:

Question 7 (5 points)

7) Arbitration is Legally binding and is typically included with the contract documents?

Question 7 options:

Question 8 (5 points)

8) What is considered the stage in the progress of the Work when the Work or designated portion thereof is sufficiently complete in accordance with the Contract Documents so that the Owner can occupy or utilize the Work for its intended use

Question 8 options:

Question 9 (5 points)

9) What are the primary purposes of OSHA?

Question 9 options:

Question 10 (5 points)

10) The ________ the Experience Modification Rate (EMR) of your business, the ________ your worker compensation insurance premiums will be.

Question 10 options:

Question 11 (5 points)

11) What might contingency be used for?

Question 11 options:

Question 12 (5 points)

12) Which of the following reason for defects can a Contractor trypically not Control?

Question 12 options:

Question 13 (5 points)

13) What type of contract does the owner control contingency?

Question 13 options:

Question 14 (5 points)

14) What is construction quality?

Question 14 options:

Question 15 (5 points)

15) Which form of dispute resolutions does not allow an appeal process?

Question 15 options:

Question 16 (5 points)

16) What is included in a Gannt Chart?

Question 16 options:

Question 17 (5 points)

17) Right-to-work state prohibit unions from organizing?

Question 17 options:

Question 18 (5 points)

18) Which of the following is considered a soft skill?

Question 18 options:

Question 19 (5 points)

19) Who is a safety officer on a project site?

Question 19 options:

Question 20 (5 points)

20) What plan is not part of the key elements for Site Logistics?

Question 20 options:

Question 21 (5 points)

21) Labor unions use collective bargaining for what?

Question 21 options:

Question 22 (5 points)

22) Do Heavy Civil contract documents typically use the CSI division format?

Question 22 options:

KNIGHTS ENGINES INC.

The government has recently invited submissions from the private sector for the supply of one thousand V-16Z (Class A) automobile engines. Although these particular engines only have eight cylinders, they can easily duplicate the speed and performance of a sixteen cylinder engine. Their compact size and durability make them ideal for military operations and it is for this reason that the military has decided to incorporate them into their new line of All Terrain Vehicles (ATVs). For reasons that cannot be exposed without jeopardizing national security, the engines must be delivered within 60 days.

Knight Engines Inc. has been involved in the manufacture of a wide variety of engines for nearly five years. Although Knight has managed to turn a healthy profit every year, sales for its V-16Z engines have been lagging somewhat. It is for this reason that Knight is quite excited by the government's request for V-16Z engines. Knight has dealt with the government before and their established reputation would certainly be a bonus in their favor if another company were to submit an equally low bid. There is, however, one problem: Although Knight does have the capacity to build one thousand V-16Z automobile engines, they do not have the pistons required to make the Class A engines. Their regular piston supplier only manufactures inferior Class C pistons, which would be unacceptable to the government. Since one thousand engines are to be produced, eight thousand Class A pistons are required. If the Class A pistons could be acquired within two weeks, the two-month government deadline could be met.

Knight made inquiries at several companies and only one showed any interest in supplying Knight with all the Class A pistons that it needs on such short notice. The Excalibur Engine Parts Company stated that it would be possible to process such a rush order but that it would do so only on two conditions: First, that the chassis of any engine constructed with their pistons clearly states that it is fitted with Excalibur brand pistons. Second, that a 5% mark-up be applied due to the extra costs of processing such an order on short notice.

Although the technical aspect of fitting these pistons into the engines presents no problems, the people in manufacturing are rather concerned about using a new type of piston from a company with which Knight has no previous experience. They stated that on the average, about 3 to 4% of the Class C pistons ordered in the past (from other suppliers) contained various structural flaws that rendered them unusable. There is no reason to believe that the Class A pistons should fare any differently. It is therefore essential that Excalibur provide some sort of guarantee in order to ensure that Knight does not have to pay for defective pistons. Even with such a guarantee, the inevitable delays for the delivery of a replacement could hinder Knight's ability to complete its engines before the government deadline. In order to cushion against such a problem, it might be advisable to order extra pistons. Ideally, Excalibur would agree to take back all unused pistons as part of a guarantee package.

You are Knight's Director of Purchasing and it is your responsibility to negotiate a contract with Excalibur for their Class A pistons, the Series 2.1 Intensaflux pistons. Since the price paid for the piston will raise the overall cost of the engine and therefore affect the bid submitted to the government, it is paramount that the lowest possible price be paid. In order to strike a good deal, you must pay careful attention to the following points:

1. You have never before purchased Class A pistons. Your knowledge of the market for other pistons (for instance, the Class C pistons sell for $250 each) suggests that they should sell for about $500 per piston. The absolute maximum that could be paid per piston and still enable the submission of a competitive bid would be $600 per piston.

2. There is rumor that Excalibur has been trying to get its foot in the door with respect to government contracts. Many of your colleagues find it somewhat unreasonable that Excalibur should have a free ride on Knight's coattails by having their company name mentioned on all the Knight engines fitted with Excalibur pistons, especially when you consider that they are charging a 5% “rush” fee. Perhaps Excalibur should deduct 5% from their price in return for this advertising service. Still, you do not want to press this issue too far because your company president has told you that it might be in the interests of Knight to develop a good relationship with Excalibur's management since Knight may one day be in a position to acquire this smaller company.
3. A competitor of Excalibur, Mordred Technologies Inc., has stated emphatically that it would in no way be able to fulfill such a rush order for a similar piston in 2 weeks’ time. However, they did state that if Knight was willing to wait 4 weeks for shipment, they would gladly supply all the pistons required for $470 per piston. Although a 4-week delivery date would certainly not allow enough time to meet the government deadline, Knight could use these pistons to upgrade some engines in stock and await another government or private contract.

Questions:

1. How would you prepare for this negotiation?
2. Which items (price, speed of delivery, guarantees, long-term relationship) do you consider the most important?
3. What is the highest price you would consider (your walk-away price)?

i have attached my code here and we are supposed to create two classes. one is date the other switches accounts for bank and then displays the bank account,type,name,date(pulled from first class and then prints out. i am having issues getting my code to pull from the first class and dont know how to make it read the data from date class if someone can look at my code and tell me how to fix this i would greatly appreciate it. Thank you!

include <iostream>
#include <string>
using namespace std;
#ifndef date_H
#define Date_H // dont know if need these two

class Date
{
private:
   int month, day, year;

public:
   //These are consturctors
   Date();// programmer defined default constructor without parameters
   Date(int, int, int);
   //Destructor
   ~Date() {}// destroy the data put into this time for new one
  
   void setDay(int); // set the day(mutator) not returning anything
   void setMonth(int);// set the month(mutator)not returning anything
   void setYear(int);// set the year(mutator)not returning anything
   void DisplDate();// displays the date which passed to class 2 Accounts
};
#endif// or this

Date::Date()// initialize the default constructor holding no parameters
{
   //Initialize variables.
   month = day = year = 0;// default values all set to 0
  
}//not returning anything
Date::Date(int Month, int Day, int Year)// default constructor hold 3 ints
{
   month = Month;
   day = Day;
   year = Year;
}//not returning anything
void Date::setDay(int d)
{
   cout<< "enter the day of your last payment"<< endl;
   cin >> day;

}//not returning anything
void Date::setMonth(int m)// need this between 1 and 12 for months
{
   cout << " enter the month of your last payment" << endl;
   cin >> month;
}//not returning anything
void Date::setYear(int y)
{
   cout << "enter a year number" << endl;
   cin >> year;
}
void Date::DisplDate()// display out the month day and year
{
   cout << month << " /" << day << " /" << year << endl;
}//not returning anything but holds the valid input data

class Account: private Date // calling the private date values relationship
{
private:
       int ActNum;// account number is integers i.e (1234567890)
       char ACCT_TYPE, Name[20];// checking, savings and user name
       Date defaultdate;
       //object of class date
       float ActBal;// must be float dealing with decimals
      
public://default parameterized constructor
   Account(int AccountNum, string Name, char ActType, float balance, Date day, Date month, Date year)
   {
       ActNum = AccountNum;
       string ActName = Name;
       char ACCT_Type = ActType;
       float ActBal =balance;
       defaultdate.day = 0;
       defaultdate.month = 00;
       defaultdate.year = 0000;// how to call this from first
   }
   void AccountData();   // idk if date goes in here
   void Accountdeposit();
   void Accountwithdrawl();
   void Accounttransfer();
   void Accountdisplay();
   //~Account() {};

};
void Account::AccountData(void)
{
   cout << "\nEnter account number : ";
   cin >> ActNum;
   cout << "\nEnter account type (c/s) : ";
   cin >> ACCT_TYPE;
   cout << "\nEnter name : ";
   cin >> Name;
   getchar();
   cout << "\nEnter balance : ";
   cin >> ActBal;
   cout << "\nEnter date of last transaction : ";
   cout << "\n Day : ";
   cin >>day;
   cout << "\n Month : ";
   cin >> month;
   cout << "\n Year : ";
   cin >> year;
}
void Account::Accountdeposit() //depositing an amount
{
   int DepositAmt;
   cout << "\n Enter Deposit Amount = ";
   cin >> DepositAmt;
   cout << " enter the account to be deposited into" << endl;
   cin >> ACCT_TYPE;
   ActBal += DepositAmt;
}

void Account::Accountwithdrawl() //withdrawing an amount
{
   int WithdrwlAmt;
   cout << "\n enter ammount to withdraw = ";
   cin >> WithdrwlAmt;
   cout << " which account do you want to be withdrawn from?" << endl;
   cin >> ACCT_TYPE;
   if (WithdrwlAmt > ActBal)
       cout << "\n Exceeds balance ammount to withdraw";
   else
       ACCT_TYPE=ActBal -= WithdrwlAmt;// the account balance of said act is
}
void Account::Accountdisplay()
{
   cout << "\n ----------------------";
   date;
   cout << "\n Accout No. : " << ActNum;
   cout << "\n Name : " << Name;
   cout << "\n Account Type : " << ACCT_TYPE;// checking and savings
   cout << "\n Balance : " << ActBal;
}

void Account::Accounttransfer()
{
  
   char ACCT_TYPE;
   double Savings, Checking, ammount;// ammount to transfer
  
   //cin >> selection;
   cout << " enter the ammount to transfer" << endl;
   cin >> ammount;
   cout << " select whihc account to transfer from and to" <<
       "checking or savings as an s or c" << endl;
   cin >> ACCT_TYPE;
   if (ACCT_TYPE == Savings)
   {
       if (Savings > 0.00)
       {
           Savings -= ammount;
           Checking += ammount;

       }
       else
           cout << "error not enough money" << endl;
  
   if (ACCT_TYPE==Checking )
       {
           if (Checking > 0.00)
           {
               Checking -= ammount;
               Savings += ammount;
           }

           else
               cout << " error not enough money" << endl;
           }
       }

   }

int main()
{   //so far below prints out data for date
   int Month, Day, Year;
  
   cout << "please enter month day and year in numerical values" <<
       "then press enter " << endl;
   cin >> Month >>Day >>Year;
   //now that the user inputted data, goes to class and evaluate for new
   //date other than default
   Date newDate(Month, Day, Year);// call to date class
   cout << " the date of your last payment was" << endl;
   newDate.DisplDate();// maybe as showpoint? without this nothing prints out
   cin.get();// getting the data from the class for the new date
   cout<< " your last payment was made on" << cin.get();// getting the data to display function
   return 0;
}

How to do a value stream map (VSM) of the customer ordering process for the X-opoly scenario?

X-Opoly, Inc., was founded by two first-year college students to produce a knockoff real estate board game similar to the popular Parker Brothers; game Monopoly®. Initially, the partners started the company just to produce a board game based on popular local landmarks in their small college town, as a way to help pay for their college expenses. However, the game was a big success and because they enjoyed running their own business, they decided to pursue the business full-time after graduation.

X-Opoly has grown rapidly over the last couple of years, designing and producing custom real estate trading games for universities, municipalities, chambers of commerce, and lately even some businesses. Orders range from a couple of hundred games to an occasional order for several thousand. This year X-Opoly expects to sell 50,000 units and projects that its sales will grow 25 percent annually for the next five years.

X-Opoly’s orders are either for a new game board that has not been produced before, or repeat orders for a game that was previously produced. If the order is for a new game, the client first meets with a graphic designer from X-Opoly’s art department and the actual game board is designed. The design of the board can take anywhere from a few hours to several weeks, depending on how much the client has thought about the game before the meeting. All design work is done on personal computers.

After the client approves the design, a copy of the computer file containing the design is transferred electronically to the printing department. Workers in the printing department load the file onto their own personal computers and print out the board design on special decals, 19.25 inches by 19.25 inches, using high-quality color inkjet printers. The side of the decal that is printed on is usually light gray, and the other side contains an adhesive that is covered by a removable backing.

The printing department is also responsible for printing the property cards, game cards, and money. The money is printed on colored-paper using standard laser printers. Ten copies of a particular denomination are printed on each 8.5-inch by 11-inch piece of paper. The money is then moved to the cutting department, where it is cut into individual bills. The property cards and game cards are produced similarly, the major difference being that they are printed on material resembling posterboard.

In addition to cutting the money, game cards, and property cards, the cutting department also cuts the cardboard that serves as the substrate for the actual game board. The game board consists of two boards created by cutting a single 19-inch by 19.25-inch piece of cardboard in half, yielding two boards each measuring 19.25 inches by 9.5 inches. After being cut, game boards, money, and cards are stored in totes in a work-in-process area and delivered to the appropriate station on the assembly line as needed.

Because of its explosive growth, X-Opoly’s assembly line was never formally planned. It simply evolved into the 19 stations shown in the following table.

Once you have the dataset, please use knowledge gained in other business and/or economics classes to realize what topic and theory the data could relate and a research question that it could allow you to answer. More specifically, please put together an analysis by making sure your project report includes the following:

1. Brief statement of the research topic and problem. As you get the dataset from me, you would need to use some imagination what research problem that data could be related to. Nevertheless, please state very briefly (i.e. in one paragraph) what theory (research literature or textbooks related to business or economics) says about the research problem – e.g. is there some dilemma or controversy that your research will help to clarify.
2. Clearly worded research question that limits the research problem to researchable task. (This is a short sentence that ends with the question mark and it is suggested that you draw from theory (research literature / textbook knowledge) in one of the business studies field to word it!)
3. Please identify the type of data that you are working with – on what type of measurement scale(s) where the selected variables measured by the original data collectors. (As you work with the dataset given by me, use your educated guess).
4. Describe the data with the tools of descriptive statistics, using both numerical as well as graphical methods. In addition to reporting and commenting on the values central tendency and diagrams, please also justify the choice of method (e.g. why a particular kind of measure of central tendency was selected and the chosen graphic is appropriate to use in this context).
5. Justify the selection of the specific data analysis method of inferential statistics. Recommendation – use the decision tree (introduced in Ch. 9ff) to make the selection and justification of it. You should look up also the assumptions and comment how your data meets them but I will not penalize you if it does not meet all the criteria. Nevertheless, please make sure that you include the basic information about distribution of the variables – are they more or less normally distributed (use both numerical as well as graphical methods). It is required that you restrict the choice of data analysis method(s) to the ones introduced in the class. (In addition to the fact that we covered only the most basic / frequently used methods in class, also the spreadsheet program (Excel) which the textbook is based on and that I presented during the course, has limited set of methods available).
6. Formulate the null and research (alternative) hypothesis – similarly to point 2 it is recommended that you word them on the basis of research literature / textbook knowledge in one of the business studies field that you know);
7. Determine the test criteria:

7.1. Specify the level of significance (Type I error associated with the null hypothesis),

7.2. Determine the test statistic (the appropriate statistical test as mentioned under point 5 above),

7.3. Determine the critical values (and region(s) if applicable),

8. Calculate the value of the test statistic (obtained value).
9. Make a decision about the null and research hypothesis by comparing the obtained value to the critical value and interpret the results of the data. You can pay attention also to the p-values.
10. Sum up you research report by relating the statistical test result(s) to the research question and theory that you set to test.

Father, Son and Gum; As other dynasties fade, a fourth-generation CEO shakes up Wrigley by tossing out his dad's rule book.

IN 1995, WILLIAM WRIGLEY JR. approached his father with a bold idea: The family-run company, after dominating the chewing-gum business for a century, should start selling mints. His father, who had successfully run Wm. Wrigley Jr. Co. for more than three decades, turned him down. "We know gum," the son recalls his father saying.

Family dynasties running big public companies over several generations are a vanishing breed. But William Wrigley Jr., who took over the business in 1999 after his father's unexpected death, has managed to turn around a company whose sales had stagnated and whose staff was steeped in doing things in the ultra-conservative manner of his father. At 35 years old, Mr. Wrigley set out to reinvent an iconic company while battling the legacy of his dad, a tough boss who had rejected many of his ideas over the years.

Since then, Mr. Wrigley has transformed the company from a cautious purveyor of Doublemint and Juicy Fruit into one of the fastest-growing publicly traded food companies. For the first time in decades, Wrigley is buying competitors, taking on debt and pouring money into research. After introducing few products in the 1990s, the company launched 72 last year alone, including cappuccino-flavored gum and sour gummy Life Savers. It purchased Altoids mints, is thinking about chocolate and patented chewing gum for dogs. "I don't rule anything out," says Mr. Wrigley.

While some of his ventures have flopped, Wrigley has performed well in the seven years since he took over. Sales have more than doubled, to $4.16 billion last year, profits have increased 68% overall and the company's stock has risen about 45%. Some analysts worry that the company's moves to diversify could shift its focus from the $15 billion world-wide gum market, where Wrigley is the top player.

Mr. Wrigley, now 42, has also hired outsiders for top positions, eased the dress code and encouraged employees to take risks -- things that didn't happen under his father. As long as his father was at the center of the company, "I was going to get stopped from getting any further into the center or we were going to collide like two neutrons or atoms in an accelerator," says Mr. Wrigley. "That is one of the biggest challenges for family businesses," he says. "When to step aside and how to step aside."

Ford Motor Co. and J.M. Smucker Co. are run by the great-grandsons of the founders, but many older family business dynasties are dying out as the third and fourth generations decide not to take over. Children don't feel as close to the founder as time passes, and increasingly independent boards are demanding broader sets of skills for leaders.

The Wrigley family helped build Chicago and remains one of its best- known dynasties. Wrigley's Michigan Avenue headquarters is one of the city's landmark buildings and the family's name is on everything from the Chicago Cubs baseball stadium to the Wrigleyville neighborhood to part of the new Millennium Park.

Yet growing up, Mr. Wrigley tried to conceal his identity, by introducing himself with just his first name. "Introducing yourself as Bill Wrigley was way more of a liability," he says. "Most people would think it's terrific. But people instantly look at you differently, judge you, and say, 'Oh here's this real wealthy person' or something, 'and he's going to be full of himself.' "

Although Mr. Wrigley shut down the company's 94-year-old gum plant on Chicago's south side last year, he simultaneously opened a $45 million research and development center in the city that's helped revitalize the Goose Island area and is bringing in white-collar jobs. Wrigley, which has had gum factories overseas since the 1920s, still makes gum at a facility in Yorkville, Ill.

Through trusts, Mr. Wrigley controls more shares of the company than any other investor, with about 15% under his beneficial ownership. The company won't say how many shares are held by the entire Wrigley clan. A divorced father of three, Mr. Wrigley is the only family member at Wrigley. His older sister and brother have never worked at the company. The family has been intensely private for decades, and Mr. Wrigley grants few interviews.

The first William Wrigley Jr. was 11 years old when, in 1872, he ran away from Philadelphia to New York, where he hawked newspapers and slept on the street, according to a 1920 article in American Magazine. Years later he went to Chicago to peddle soap, then baking powder, to shop owners. To entice them, he gave away two packages of chewing gum with each can of baking powder. When the gum became more popular, he started selling that instead. Soon he was making his own gum. Juicy Fruit hit shelves in 1893. To build sales, Mr. Wrigley twice gathered every phonebook in the country and mailed each person listed four sticks of chewing gum, according to the article, which the company cites. By 1920, he was making nine billion sticks of gum a year and had become the world's largest advertiser of a single product. In 1923, the company went public.

The Great Depression nudged the company in a more cautious direction under the founder's son, Philip Wrigley. (He was the company's only leader who wasn't named William.) When Philip's son, William Wrigley, took over as chief executive in 1961, he increased sales by pushing into Europe and Asia. But Wrigley stood by as Warner-Lambert Co. took the lead in sugarless gum with Trident in the 1960s.

The current William Wrigley Jr. grew up watching his father go to work at the company's white terra cotta headquarters in Chicago. When he was 5, his parents divorced. At 10, he moved to Arizona with his mother and siblings, where he swam competitively. He was a B student in private school. As a teen, he lived with his father during the summers and worked at the company, driving to the office with his father. On weekends, he water-skied with his dad at the Wrigley estate in Lake Geneva, Wis.

One summer, the younger Mr. Wrigley donned a white lab coat to mix test batches of Extra sugarless gum. At Duke University, where he studied economics, he read company memos mailed to him by his father. But he didn't go to work at Wrigley right away. He wanted to create something of his own. "I've always liked the idea of being an entrepreneur," Mr. Wrigley says. He'd grown up intrigued by the adventurous tales he heard about his great-grandfather, the company founder. "Those genes maybe skipped a couple generations and popped up again."

After graduating, he moved to Seattle to help a friend launch a three-person business selling stain remover. His father gave his reluctant blessing, Bill Jr. says. Bill Jr. set himself up in the frozen-foods aisle of supermarkets to demonstrate the stain remover on a carpet sample. Soon, working at Wrigley seemed more exciting. He returned to Chicago in 1985 as his father's assistant.

The elder Wrigley was a formal man whom nearly everyone, even friends, called "Mr. Wrigley." He was called that until he died, even though by the 1990s, many top executives were much more informal. Yet Mr. Wrigley warmed employees by remembering their birthdays and shaking hands with workers at factories, recalls Dushan Petrovich, Wrigley's chief administrative officer.

Fanatical about details, Mr. Wrigley once flew a Chicago designer to meet him at Wrigley's Prague office in order to match the shade of blue in the carpet there with the floors at headquarters. He insisted on screening casting tapes for the new Doublemint twins, to find actors with the right look. "He didn't get challenged a whole lot," Bill Jr. says. "It was sort of 'This is what Mr. Wrigley wants and so let's go find a character with a shorter haircut.' "

When the younger Mr. Wrigley took a top job at Wrigley's Canadian division in 1990, he set out to change the recipes and packaging for Juicy Fruit, Doublemint and Spearmint. Sales in Canada were falling and the formulas had hardly changed in decades. He also proposed launching a pellet-shaped sugarfree gum, which was selling well for Wrigley in Europe.

His father quickly nixed the packaging and recipe changes because he said they could alienate longtime customers, Bill Jr. recalls. The elder Wrigley balked at pellet gum, too, because it required costly new packaging equipment. Bill Jr. pressed, lobbying over lunch in his father's regular booth at the company's private restaurant. His father gave in. Excel pellets eventually became Wrigley's best- selling product in Canada. Bill Jr. doesn't recall his father congratulating him. "That just wasn't his style," he says.

In the mid-1990s, Altoids and other strong-tasting mints began gaining space in the candy aisle. Bill Jr. prodded his father to buy Frisk, a Belgian maker of zippy peppermints. Wrigley already had vast global merchandising and distribution. It could plug in the mints and increase sales, Bill Jr. figured. But his father thought "intense" mints were a fad. Besides, he told his son, there was still room to grow in gum. Italian competitor Perfetti Van Melle bought Frisk instead in 1995.

By the late 1990s, as the elder Mr. Wrigley reached his mid-60s, Bill Jr. began asking about his own future. The elder Mr. Wrigley didn't want to talk about succession. And he rarely commented on whether his son was doing a good job, Bill Jr. says. "I never felt that confidence from him." Frustrated, he began thinking about leaving Wrigley.

Howard Bernick, the departing Alberto-Culver Co. CEO who now sits on Wrigley's board, recalls the elder Mr. Wrigley thinking his son wasn't ready yet to take over and saying, " 'I just wish he was a little bit older.' "

Mr. Wrigley's father "had no doubt that he was going to be the next leader," says Richard Smucker, co-chief executive of jam maker J.M. Smucker and a Wrigley director. He just "leaned over backward a little bit not to express that" so people wouldn't think of his son as "the fair-haired boy." Mr. Smucker knows the issue of family business dynasties well, also being the great-grandson of a company founder. "Any family member has to work harder," he says.

The younger Mr. Wrigley was working in Europe in January 1999 when his father slipped on ice at the family estate in Wisconsin and broke his hip. Since his father was going through a divorce with his third wife at the time, Bill Jr. stepped in to take care of him, helping him run meetings from his home. What seemed a mild injury grew serious as his frail condition magnified other health problems. Nevertheless, the elder Wrigley insisted on running the annual shareholder meeting that March.

His condition took a turn for the worse. Bill Jr. sent the company jet to fetch his dad's doctor, who was away in Arizona. It was the first time anyone had dispatched the plane without his father's permission. "Don't worry," Bill Jr. told his father as he sat on his hospital bed. "I'm going to take care of everything." He says his father told him that he loved him.

By the next morning, the elder Mr. Wrigley had slipped into a coma. Terrified, Bill Jr. led the annual meeting for the first time. Days later, Wrigley's board named him acting president. He went to the hospital to tell his father, who was unresponsive in the coma. Mr. Wrigley died the next day, of complications from pneumonia. "Once he knew that I was going to run the company, I think he said, 'OK, now it's time for me to go,' " Bill Jr. says.

Ten days later, William Wrigley Jr. became the fourth chief executive of the company, following his father, grandfather and great- grandfather. Wall Street immediately questioned whether he had enough experience. Although the company had been largely successful during his father's tenure, when Bill Jr. took over, its U.S. gum sales had been flat for about five years.

Sorting through his father's office, Mr. Wrigley was shocked to find in his in-box a question on what color to make the carpet on the 12th floor. "I don't want to make this decision," Mr. Wrigley recalls thinking. "And I don't want anyone who reports to me to make this decision." He turned his father's office into a conference space.

He started making other changes. Some were little, like lifting the ban on using voice-mail during business hours and loosening the dress code from coats and ties to "business-appropriate" attire.

Other changes were bigger, like creating the company's first-ever strategic plan, and hiring top managers from Gillette Co. and Procter & Gamble Co., breaking a tradition of promoting from within. He also ordered the new packaging and recipes for Doublemint and other standards that his father had rejected.

Sitting in a church before a friend's wedding, Mr. Wrigley scrawled on a card: "Wrigley brands woven into the fabric of everyday life around the world." He says he intentionally left out "gum" so the statement would stay relevant as the company expanded into candy. Today, his scribbling has become the company's vision statement.

Mr. Wrigley says he isn't trying to change Wrigley's values -- or its emphasis on chewing gum, a retail standard in the checkout line. Gum accounts for 90% of Wrigley's sales. "We see great growth in chewing gum," Mr. Wrigley says. "But then it was also just logical to say 'Well, what else is up at the front end there? Who else are we competing with? And why can't we do some of that too?' "

When Mr. Wrigley took over, there was "an unleashing of a lot of energy," says Mr. Petrovich, who also worked for his father. But some employees bristled at the changes in style. Managers fumbled over the new dress code, some not exactly sure what kind of shoes were allowed. A company-described "breakthrough" training session, that emphasized stretching and drinking water, was dismissed by some employees as a new-age fad, executives say. In a meeting shortly after Mr. Wrigley took over, someone mentioned a new initiative he knew nothing about. The people "looked at me like I was on the moon," he recalls, "because in the past, anything that happened, the CEO knew about."

He sent workers an email that said, "If we never make mistakes, then we are most likely not being very innovative and not taking enough risks." He made his own mistakes. He thought gum could be a vehicle for medicine, so Wrigley invested more than $10 million to start a health-care division that launched Surpass, a chewing gum infused with antacid. Wrigley couldn't persuade stores to stock it at the checkout counter, and finally pulled it off the market in 2003.

What might have been his biggest gamble never materialized. In 2002, he says he got a message to call Richard Lenny, Hershey's CEO. Mr. Lenny said the trust that controls Hershey wanted to sell the candy maker. Would Wrigley consider a bid? Wrigley hadn't bought a company in half a century and didn't even carry debt on its balance sheet at the time. "Absolutely," Mr. Wrigley said.

Board members weren't so sure about a deal that huge. Mr. Bernick says he thought Mr. Wrigley should "hit singles" instead of swinging for homers. His father "wouldn't have done that deal," Mr. Smucker says. Mr. Wrigley eventually convinced the board, and Wrigley beat Nestle SA and Cadbury Schweppes PLC with its $12.5 billion bid. But the Hershey trust got cold feet amid community and political pressure and called off the sale at the last minute.

Getting so close to a big deal made Mr. Wrigley more determined to move into candy. He told workers to internally start calling the company the Wrigley Confectionery Co. In 2004, Wrigley expanded into lollipops and chewy candy by buying assets from the Joyco arm of Agrolimen, a Spanish food conglomerate. Later that year, Wrigley paid $1.48 billion for Altoids, Life Savers and other candy brands from Kraft Foods.

Wrigley is looking at more acquisitions and, at its new research center, scientists are searching for the next big candy. New products now account for 17% of sales, up from less than 6% during the late 1990s. Executives won't be specific about what is in the works, but "chocolate is within our playing field," says Surinder Kumar, Wrigley's chief innovation officer.

Some analysts say Wrigley may have overpaid for Kraft's brands and that weak sales of Altoids aren't a good sign. Mr. Wrigley says sales are within expectations. And some of Wrigley's new products haven't panned out. In addition to closing its health-care division, the company has pulled back on breath-freshening strips amid strong competition from Pfizer Inc.'s Listerine brand.

In his office, Mr. Wrigley keeps a picture of his father huddled with his dogs. In some ways, he says, it was better that his father wasn't there when he took over the company. "Maybe the silver lining in the whole thing is that maybe he realized it would have been difficult to coexist with different styles in the business," Mr. Wrigley says. His father's passing "was a graceful exit, although, to put it mildly, hugely unfortunate to lose your father at 66," he says.

He wishes his father were alive to see how he's made Wrigley grow. "My only regret is that I don't have my father side by side, or even off relaxing or retiring on some island, to be able to share it with."

While Mr. Wrigley says he never felt overt pressure from his dad to take over the business, "you kind of know there's a legacy there. You know your family's been in this business since 1891, and there's been a sequence of generations running the company." Mr. Wrigley says he "tried to push that into the background and leave options open to me in terms of what I might be interested in doing . . . .And at the end of the day, the reason I did come back to the business is because it was just darn interesting."

He isn't insisting that his children follow his career path. "You get so much influence from your parents," he says. "The important thing is for us to kind of get out of the way and make sure that we don't try and force them into doing something we wanted to do."

Questions:

1) What changes did he make after assuming leadership?

2) What were the challenges he faced as the new leader?

Today is November 1, 2020. You, CPA, have just been hired by Custom Auto Parts (CAP) as an accountant to provide financial expertise during its current expansion. CAP was founded in 1995 by Jerome Blackman (sole shareholder), and CAP has remained a private corporation ever since. From its humble beginnings, CAP has grown substantially. CAP's operations focus on the production of both standard and unique car parts. CAP always strives to use modern technology to produce quality car parts. When CAP commenced, it produced car parts for Canadian automotive companies that were seeking to outsource their production. Soon after, as word spread on the quality of its parts, CAP's products were being sought after by companies outside of Canada. In addition, CAP began selling its to individuals who were looking for unique car parts to restore older cars.

As a car buff, you are very excited about the position as it allows you to apply your accounting knowledge in an industry that interests you. On your first day, you met with CAP's CFO, Robert Ryder. Robert begins by explaining how excited he is that you have joined CAP's team and he looks forward to the expertise that you will bring to CAP's accounting department.

Robert continues by explaining that as CAP has grown, so has its on external financing. Just this year, CAP had purchased additional equipment to handle its recent growth. CAP has had a long-standing relationship with its bank. However, given the recent credit crisis, the bank has changed its policies on all loans. Robert has provided you with a copy of CAP's statement of financial position (see Exhibit I) as at October 31, 2020, which is CAP's fiscal year-end date.

Exhibit I ( CAP's FINANCIAL POSITION)

                                                                      Custom Auto Parts

                                                               Statement of Financial Position

                                                                      as at October 31

Assets

current assets 2020                      2019

Cash $ 35,000 $ 20,000

Accounts receivable 13,000 10,000

Inventory 20,000 12,000

Prepaids 3,000 3,000

  Total current assets 71,000 45,000

Property, plant, and equipment (net) 2,800,000 2,200,000

Total assets 2,871,000 2,245,000

Liabilities

Current liabilities

      Accounts payable 25,000 20,000

      Notes payable 13,000 25,000

  Current portion of long-term debt 150,000 50,000

188,000 95,000

Long-term debt 1,800,000 1,450,000

Total liabilities   1,988,000 1,545,000

Shareholders's equity

        Share capital 100 100

        Preferred shares 100,000 100,000

        Retained earnings 782,900 599,900

Total equity    883,000   700,000

Total liabilities and shareholders equity    $2,871,000 $2,245,000

                                           Debt equity    2.67 2.21

After the meeting, Robert asks you to analyze the new accounting issues surrounding CAP and to provide recommendations on their resolution. He concludes by reminding you that the bank is eager to see the year-end financial statements. As you make your way back to your desk, you begin by reviewing a file outlining important transactions undertaken by CAP. You note the following issues:

1.      On November 1, 2019 (the beginning of the fiscal year), CAP acquired a of its equipment through a lease agreement with Lessor Corp. The lease contract has the following terms and conditions:

·        CAP agrees to lease equipment from Lessor Corp. with a fair market value of $900,000

·         The term of the lease is for seven years, with annual rental payments of $145,000 due at the beginning of each year. CAP knows the implicit interest rate on the lease agreement is 5%. CAP knows that it could borrow at an incremental rate of 6%.

·        There is no residual value.

·        CAP will cover the executory costs associated with the lease. The executor costs will be approximately $10,000 per annum and are included as part of the $145,000 rental payment.

·        The lease offers a bargain purchase option to purchase the equipment for $50,000 at the end of the seventh year. At the end of year seven, the fair market value of the asset is expected to be $70,000.

·        The first payment was made on November 1, 2019, with annual payments thereafter. You remember from auditing a client in the past that equipment such as this usually has an economic life of nine years. CAP has classified this lease as an operating lease. You remember from your discussion with Robert that he was unsure of the benefits of leasing versus buying an asset. This information is for Robert for any future capital budgeting decisions.

2.       After reviewing the statement of financial position, you notice that there are preferred shares valued at $100,000, which equals a total of 1,000 shares outstanding. The preferred shares are redeemable and have a 5% annual dividend. The dividend will double every three years up to a maximum 20% dividend yield. The preferred shares convertible into common shares if CAP does not pay the specified dividend on the preferred shares.

3.      The file also contained a letter from CAP's lawyer (Stonechild, Pilla, and Partners). The letter from the lawyers explained a current lawsuit undertaken against CAP. Apparently, a customer had asked for 50,000 parts to be produced and delivered no later than July 15, 2020. However, due to major downtime in July, CAP could not produce the parts as scheduled. In turn, the customer was late in delivering its vehicles to its distributors and had to pay a penalty equivalent of $600,000. This customer is now suing CAP for retribution for these costs. The letter goes on to state that retribution will be inevitable; however, it is believed that a settlement between $350,000 to $550,000 can be reached.

4.      On November 1, 2019, an additional $500,000 of long-term loan was taken out to help finance the purchase of certain manufacturing equipment for $600,000. (Note: the additional $100,000 was paid for with cash.) Given this new loan and CAP's revised debt load, CAP must now maintain a maximum debt to equity ratio of 3:1 and its financial statements must comply with ASPE. If CAP breaches the covenant, the bank has the ability to call for the loan in full.

The manufacturing equipment that was purchased during the year will be depreciated over 10 years. It is classified as class 39 and has a CCA rate of 25%. CAP is taxed at the highest rate of 45%, and the half-year rule applies. Robert explained that CAP has not taken any consideration for potential tax consequences on the equipment purchase. (Note: for simplicity, assume that all other future tax considerations have been properly addressed.)

After reviewing this information, you realize that you have much to contemplate as to how these issues should dealt with.

Required

Provide a report to Robert outlining your recommendation on the accounting issues and note other important issues.