The Enron scandal, revealed in October 2001,
eventually led to the bankruptcy of the Enron Corporation, an
American energy company and de facto dissolution of Arthur
Andersen, which was one of the five largest audit and accountancy
partnerships in the world. Enron shareholders filed a $40 billion
lawsuit after the company's stock price, which achieved a high of
US $90.75 per share in mid-2000, dropped to less than $1 by the end
of November 2001.
The company had lost the majority of its customers and had ceased
operating. Employees and shareholders received limited returns in
lawsuits, despite losing billions in pensions and stock prices. The
US Securities and exchange commission began an investigation. Many
executives at Enron were indicted for a variety of charges and were
later sentenced to prison. Enron's $63.4 billion in assets made it
the largest corporate bankruptcy in U.S. history.
a. Explain, what causes the reasons for the collapse of Enron? What
will be the significant impact on financial accounting standards,
auditing rules, and institutional structures such as FASB and the
Securities Exchange Commission?
b. What precautions/measures should be taken by the management to
save Enron from bankruptcy?
Your answer should be around 400 words for each question.
In: Accounting
The Enron scandal, revealed in October 2001,
eventually led to the bankruptcy of the Enron
Corporation, an American energy company and de facto dissolution of
Arthur Andersen, which
was one of the five largest audit and accountancy partnerships in
the world. Enron shareholders
filed a $40 billion lawsuit after the company's stock price, which
achieved a high of US $90.75
per share in mid-2000, dropped to less than $1 by the end of
November 2001.
The company had lost the majority of its customers and had ceased
operating. Employees and
shareholders received limited returns in lawsuits, despite losing
billions in pensions and stock
prices. The US Securities and exchange commission began an
investigation. Many executives at
Enron were indicted for a variety of charges and were later
sentenced to prison. Enron's $63.4
billion in assets made it the largest corporate bankruptcy in U.S.
history.
a. Explain, what causes the reasons for the collapse of Enron? What
will be the significant impact
on financial accounting standards, auditing rules, and
institutional structures such as FASB and
the Securities Exchange Commission?
b. What precautions/measures should be taken by the management to
save Enron from
bankruptcy?
Your answer should be around 400 words for each question.
In: Finance
How many grams of Co(NO3)2 ·6H2O are needed to prepare 100.00 mL of 0.15 M solution of Co(NO3)2 ?
If 2.00 mL of the 0.15 M Co(NO3)2 solution is diluted to 10.00 mL with water, what is the resulting Co(NO3)2 concentration?
In: Chemistry
La Leche League International reports that the mean age of
weaning a child from breastfeeding is age four to five worldwide.
In America, most nursing mothers wean their children much earlier.
Suppose a random survey is conducted of 21 U.S. mothers who
recently weaned their children. The mean weaning age was 8 months
(2/3 year) with a standard deviation of 3 months. Conduct a
hypothesis test to determine if the mean weaning age in the U.S. is
less than four years old. Conduct a hypothesis test at the 5%
level.
Note: If you are using a Student's t-distribution for the
problem, you may assume that the underlying population is normally
distributed. (In general, you must first prove that assumption,
though.)
1-state the null and alternative hypothesis.
2-In words, state what your random variable X represents
3- State the distribution to use for the test. (Enter your answer in the form z or tdf where df is the degrees of freedom.)
4- What is the test statistic?
5- what is the p-value? and what does it mean?
6- Indicate the correct decision ("reject" or "do not reject" the null hypothesis), the reason for it, and write an appropriate conclusion.
(i) Alpha (Enter an exact number as an integer, fraction, or
decimal.)
α =
(ii) Decision:
reject the null hypothesis or
do not reject the null hypothesis
(iii) Reason for decision:
Since α < p-value, we do not reject the null hypothesis.
Since α > p-value, we do not reject the null hypothesis.
Since α > p-value, we reject the null hypothesis.
Since α < p-value, we reject the null hypothesis.
(iv) Conclusion:
There is sufficient evidence to conclude that mean age at which American mothers wean their children is less than 4. or
There is not sufficient evidence to conclude that mean age at which American mothers wean their children is less than 4.
Construct a 95% confidence interval for the true mean. Sketch the graph of the situation. Label the point estimate and the lower and upper bounds of the confidence interval. (Enter your answers in years. Round your answers to four decimal places.)
In: Statistics and Probability
CASE STUDY – Chronic Open-Angle Glaucoma.
Client Profile:
A.G. is a 70-year-old African American female. She was seen in her eye doctor’s office for routine eye examination. Her last examo was 5 years ago.
Subjective Assessment Data:
Objective Assessment Data:
Ophthalmic Examination:
Discuss and answer the following questions.
In: Nursing
1.Despite all the real and perceived problems of the Treaty of Versailles, it is widely agreed among historians that this treaty was wisely constructed, negotiated, and managed. Further, most WWI historians agree that the Treaty of Versailles was a forward-looking document and did a great deal to bring about and maintain world peace. TRUE OR FALSE
2.The War Guilt Clause (also called Article 231) of the Treaty of Versailles, stated that ""…Germany and her allies accept total responsibility …for causing WWI."" TRUE OR FALSE
3.In one of his famous writings, The Descent of Man, Charles Darwin criticized modern society for undermining the natural processes of a culture eliminating its weakest by the building of asylums for the mentally ill, homes for the physically handicapped, hospitals for the sick, and welfare programs for the poor. TRUE OR FALSE
4.The Aryan race refers to a racial grouping, widely used in the period from the late 19th Century to the mid-20th Century, called Indo-Europeans. The phrase was used by Adolph Hitler and the Nazis to portray the ideal human types. TRUE OR FALSE
5.During the early part of the 20th Century many American universities including Harvard, Stanford, the University of California at Berkeley, Princeton, and others were on the forefront of opposing and debunking the concepts and practice of eugenics.
In: Psychology
The Bar-None Manufacturing Co. manufactures fence panels used in cattle feed lots throughout the Midwest. Bar-None's management is considering three investment projects for next year but doesn't want to make any investment that requires more than three years to recover the firm's initial investment. The cash flows for the three projects (Project A, Project B, and Project C) are as follows:
|
Year |
Project A |
Project B |
Project C |
|
|
0 |
$(950) |
$(9,000 ) |
$(6,000 ) |
|
|
1 |
530 |
6,000 |
1,800 |
|
|
2 |
350 |
3,500 |
1,800 |
|
|
3 |
160 |
3,500 |
2,500 |
|
|
4 |
90 |
3,500 |
2,500 |
|
|
5 |
480 |
3,500 |
2,500 |
a. Given Bar-None's three-year payback period, which of the projects will qualify for acceptance?
b. Rank the three projects using their payback period. Which project looks the best using this criterion? Do you agree with this ranking? Why or why not?
c. If Bar-None uses a discount rate of 10.9 percent to analyze projects, what is the discounted payback period for each of the three projects? If the firm still maintains its three-year payback policy for the discounted payback, which projects should the firm undertake?
In: Finance
In: Accounting
In line with South Bank’s current thrust to expand retail through its branches, Alex Roces, manager of the Marikina Branch, reviewed its list of depositors. Since Roces planned to offer South Bank’s loan services to its depositors, he inquired among the branch’s employees on potential loan clients. He was informed that Fe Javier, the owner of Darling Dolls Company (DCC), had plans to borrow money for use in her business.
Early in January 1995, Roces set up a meeting with Javier. During their meeting, Javier informed Roces that DDC was in need of P1 million for additional working capital during the year.
DDC had no formal accounting records. Javier confidentially informed Roces that its financial statements were only prepared when she had to report her income for tax puposes. In view of this, Roces wanted a new set of DDC’s financial statements prepared for his evaluation.
Company’s Background
Darling Dolls Company was a small manufacturer of stuffed dolls operating from 200-sq.m. leased building in Parang, Marikina. Fe Javier established the business in early 1992 with an initial capital of P2 million from her savings (P1 million) and from personal borrowings from relatives and friends (P1 million). Of the initial investment, about P500,000 was used for improvement of building. Sandee, one of her daughters and a Stuyvesant School of Fine Arts graduate, helped in the management of business and designed the dolls.
Javier started the business with only major customer, Martie Designs. After a year, she was able to ink contracts with four additional customers. DDC dolls were unique and appealing not only to children and teenagers but also to working ladies and young mothers.
DDC had 25 employees, two of whom handled administrative work. Its production process was simple, and its equipment were mainly high-speed sewing machines. In December 1994, Javier invested in 10 new high-speed sewing machines at a total cost of P270,000.
Dolls made by DDC soon became popular. During the fourth quarter of 1994, Javier was able to establish contact with three additional store chains based in Visayas and Mindanao. She believed that a lasting business relationship could be established with these prospective clients. She estimated that production would increase by 80 percent from the current annual level of 27,000 dolls. But as a result of the recent acquisition of 10 sewing machines, Javier did not have sufficient funds to cover the increase in working capital. Moreover, she anticipated that the prices of raw materials and factory supplies would also increase due to the expected implementation of new tax measures.
Up until this time, DDC had no bank loans of any other credit accommodation, except for suppliers’ credit.
Roces assigned a member of his staff to interview Javier, and visit her factory. Based on the results of the interview, Roces’ staff prepared a brief description of the company and summarized the financial data. (see Exhibit 1).
Exhibit 1
Darling Dolls Company
Interview Questions and Answers
|
Questions |
Answers |
||||||||||||||||||||||||
|
1. How much was the 1994 sales? |
P 4.32 million; 21, 600 dolls at P200/doll |
||||||||||||||||||||||||
|
2. Who were the major customers? How much in sales were registered per customer? |
5 major customers, namely: Customer % Sales Martie Designs 50 Sophie’s Gifts and Tags 10 Whims 15 Cuddles and Toys 15 Aspen Boutique 10 Total 100% |
||||||||||||||||||||||||
|
3. Was the company a depositor of other banks besides South Bank? |
No, maintains deposit with South Bank only. |
||||||||||||||||||||||||
|
4. What was its cash balance as of December 31, 1994? |
P 75,000 |
||||||||||||||||||||||||
|
5. How much was the amount collectible from customer? |
|
||||||||||||||||||||||||
|
6. How much in raw materials and factory supplies were on hand as of December 31, 1994 |
P 320,000 raw materials P 58,000 factory supplies |
||||||||||||||||||||||||
|
7. Were there any unfinished dolls as of December 31, 1994? How many were they and what is their average stage of completion? |
Yes, 3,600 dolls are still in process of which 2000 are 90 percent complete and 1,600 are 50 percent complete. |
||||||||||||||||||||||||
|
8. How many completed dolls remained unsold as of December 31, 1994 |
1,800 dolls |
||||||||||||||||||||||||
|
9. How much is the average production cost per doll? |
Production cost per doll: P140 |
||||||||||||||||||||||||
|
10. How much is the current balance of payable to suppliers? |
About P500,000 |
||||||||||||||||||||||||
|
11. What are Javier’s personal assets? Which of these assets are used by Darling Dolls Company? |
|
||||||||||||||||||||||||
|
12. When did Javier buy the assets used in the business? |
Early 1992, it is estimated that fixed assets would be operational for 10 years from their acquisition dates. |
||||||||||||||||||||||||
|
13. How long is the lease agreement? |
10 years |
||||||||||||||||||||||||
|
14. What major operating expenses were incurred for the year? |
|
||||||||||||||||||||||||
|
15. What other liablilities does Darling Dolls Company have besiudes the amount of payable to suppliers? |
Overtime pay of 10 workers for P26,000. All other operating expenses incurred have been paid as of December 31, 1994. |
||||||||||||||||||||||||
Guide Questions:
C. If you were Roces, would you favorably consider the P1 million loan requested by Darling Dolls Company? What assets can be used as collateral?
In: Accounting
Please tell me about the Pakistan -South Korea Free Trade Agreement
1) two paragraphs describing the agreement and 2) note your ideas about the benefits and potential harms of it.
In: Economics