You have been hired as an outside consultant for a large durable medical equipment and medical supply company. The company specializes in a wide range of medical supplies and equipment. Some of its most profitable offerings include hospital bed rental to private residents, wheelchairs, walkers, scooter and other mobility equipment. However, they have come to realize that competition is increasing and market share is getting tight. They note that most of their customers are new costumers and very few are repeat customers. They are concerned with customer loyalty. The medical supply company owner has asked you to train develop a plan to improve customer loyalty and train the staff.

1.Be sure to discuss the (multiple) benefits that loyal, repeat customers offer to health care organizations.

2. Develop and defend at least 4 recommendations for the medical supply company based on your research on how to improve customer loyalty. Include a brief overview of how each recommendation would be implemented at the company.

Karen Noonan opened Clean Sweep Inc. on February 1, 2019. During February, the following transactions were completed. Feb. 1 Issued 5,000 shares of Clean Sweep common stock for $13,000. Each share has a $1.50 par. 1 Borrowed $8,000 on a 2-year, 6% note payable. 1 Paid $9,020 to purchase used floor and window cleaning equipment from a company going out of business ($4,820 was for the floor equipment and $4,200 for the window equipment). 1 Paid $220 for February Internet and phone services. 3 Purchased cleaning supplies for $980 on account. 4 Hired 4 employees. Each will be paid $480 per 5-day work week (Monday-Friday). Employees will begin working Monday, February 9. 5 Obtained insurance coverage for $9,840 per year. Coverage runs from February 1, 2019, through January 31, 2020. Karen paid $2,460 cash for the first quarter of coverage. 5 Discussions with the insurance agent indicated that providing outside window cleaning services would cost too much to insure. Karen sold the window cleaning equipment for $3,950 cash. 16 Billed customers $3,900 for cleaning services performed through February 13, 2019. 17 Received $540 from a customer for 4 weeks of cleaning services to begin February 21, 2019. (By paying in advance, this customer received 10% off the normal weekly fee of $150.) 18 Paid $300 on amount owed on cleaning supplies. 20 Paid $3 per share to buy 300 shares of Clean Sweep common stock from a shareholder who disagreed with management goals. The shares will be held as treasury shares. 23 Billed customers $4,300 for cleaning services performed through February 20. 24 Paid cash for employees' wages for 2 weeks (February 9-13 and 16-20). 25 Collected $2,500 cash from customers billed on February 16. 27 Paid $220 for Internet and phone services for March. 28 Declared and paid a cash dividend of $0.20 per share. Instructions (a) Journalize the February transactions. (You do not need to include an explanation for each journal entry.) (b) Post to the ledger accounts (Use T-accounts.) (c) Prepare a trial balance at February 28, 2019. Totals $30,420 (d) Journalize the following adjustments. (Round all amounts to whole dollars.) 1.Services performed for customers through February 27, 2019, but unbilled and uncollected were $3,800. 2.Received notice that a customer who was billed $200 for services performed February 10 has filed for bankruptcy. Clean Sweep does not expect to collect any portion of this outstanding receivable. 3.Clean Sweep uses the allowance method to estimate bad debts. Clean Sweep estimates that 3% of its month-end receivables will not be collected. 4.Record 1 month of depreciation for the floor equipment. Use the straight-line method, an estimated life of 4 years, and $500 salvage value. 5.Record 1 month of insurance expense. 6.An inventory count shows $400 of supplies on hand at February 28. 7.One week of services were performed for the customer who paid in advance on February 17. 8.Accrue for wages owed through February 28, 2019. 9.Accrue for interest expense for 1 month. 10.Karen estimates a 20% income tax rate. (Hint: Prepare an income statement up to income before income taxes to help with the income tax calculation.) (e) Post adjusting entries to the T-accounts. (f) Prepare an adjusted trial balance. (g) Prepare a multiple-step income statement, a retained earnings statement, and a properly classified balance sheet as of February 28, 2019. Net income $3,117 Tot. assets $26,101 (h) Journalize closing entries.

Suppose that, in the absence of insurance, the daily demand for visits to a clinic is given by Qd = 200 – 0.5P, where c is the coinsurance rate and P is the price charged by the clinic.

a. Calculate the quantity demanded when P is $100.

b. Calculate daily revenues when P is $100. Now assume that customers pay a coinsurance rate,

c. You will need to modify the demand function to account for the coinsurance. See page 105 of the Bernell text for some tips. c. Calculate the quantity demanded when P is $100 and the coinsurance rate is 0.4.

d. Calculate the daily revenue for the values given in (c). e. Calculate the quantity demanded when P is $100 and the coinsurance rate is 0.8.

f. Calculate the daily revenue for the values given in

(e). Assume the clinic’s daily capacity is 100 customers.

g. Calculate the price the clinic should set to exactly use its entire capacity when there is no insurance (i.e., the coinsurance rate is 1).

h. Calculate the price the clinic should set to exactly use its entire capacity when there is a coinsurance rate of 0.8

1.A single-price monopolist is a monopolist that sells each unit of its output for the same price to all its customers. At its profit-maximizing output level, the single-price monopolist produces where price is ___________ than marginal cost because for it price is __________ than marginal revenue and its demand curve lies __________ its marginal revenue curve.

less; less; below

greater; greater; above

greater; greater; below

less; less; above

greater; less; below

2.

Exhibit 2

A single-price monopolist is a monopolist that sells each unit of its output for the same price to all its customers. Refer to Exhibit 2. A single-price monopolist earns a total profit of __________ when it produces the profit maximizing level of output.

Group of answer choices

$120

$110

$180

$80

$49

Martinez Company sells tablet PCs combined with Internet service, which permits the tablet to connect to the Internet anywhere and set up a Wi-Fi hot spot. It offers two bundles with the following terms.

1. Martinez Bundle A sells a tablet with 3 years of Internet service. The price for the tablet and a 3-year Internet connection service contract is $491. The standalone selling price of the tablet is $246 (the cost to Martinez Company is $166). Martinez Company sells the Internet access service independently for an upfront payment of $291. On January 2, 2020, Martinez Company signed 110 contracts, receiving a total of $54,010 in cash.

2. Martinez Bundle B includes the tablet and Internet service plus a service plan for the tablet PC (for any repairs or upgrades to the tablet or the Internet connections) during the 3-year contract period. That product bundle sells for $589. Martinez Company provides the 3-year tablet service plan as a separate product with a standalone selling price of $151. Martinez Company signed 210 contracts for Martinez Bundle B on July 1, 2020, receiving a total of $123,690 in cash.

Prepare any journal entries to record the revenue arrangement for Martinez Bundle A on January 2, 2020, and December 31, 2020.

Prepare any journal entries to record the revenue arrangement for Martinez Bundle B on July 1, 2020, and December 31, 2020.

Repeat the requirements for part (a), assuming that Martinez Company has no reliable data with which to estimate the standalone selling price for the Internet service.

(To record sales)

Case study 2

Reebok is a sporting goods manufacturing company in the United Kingdom. It is one of the best-sellers among the top other finest sporting brands. The company‟s footwear, clothing, accessories, and sports equipment are in wide demand in many counties across the globe, and they are challengers for core branded companies for a quite span of time. For a long time, no competitor could compete with their products, and then came the Adidas Company of Germany as more challenging with more satisfactory and reasonably priced products to the customers. Though all the products are sporting products, there will be always various tastes and preferences in the minds of the customers. Reebok consumers like the way company‟s products are featured under various categories for different ages, ladies, men and children. Adidas carter the customers according to their income level and status.

Adidas has larger product line product than Reebok. Adidas Company is also very clear that they connect and engage with its customers as per their need and demand. Adidas sells a range of clothing items, varying from men's and women's t-shirts, jackets, hoodies, pants, and leggings. Adidas has many other business locations around the world such as Oman, India, Hong Kong, Toronto, US, England, Japan, Australia, and Spain. One of the main focuses of Adidas has always been football kits, and the associated equipment. Adidas remains a major company in the global supply of team kits for international association football teams and clubs. Adidas Performance was designed to maintain their devotion to the athlete; in comparison the Reebok Company has relatively less products than the giant Adidas Company. Thus the customers of Adidas were overwhelmed with the services and products of the second-largest best sporting manufacturing companies in the globe.

Question 2

1. Evaluate the factors influencing the buyer behaviour of Adidas customer.

(4 Marks–100 /125 words)

ii. Design a promotional mix for Rebook to increase their sales. (4 Marks–100 /125 words) iii. Suggest a pricing strategy for Reebok Company to attract the customers.

(2 Marks– 50 /75 words)

Q.

The inventory of Ahrsun Ventures Corporation was destroyed by fire on February 29, 2020. The following data is for the first two months of the year: Sales $51,000, Sales Returns and Allowances $1,000, Purchases $28,200; Freight-In $1,200; and Purchase Discounts $1,400. According to the financial statements at year-end December 31, 2019 the balance of Merchandise Inventory was $20,000. Ahrsun Ventures has a gross profit rate of 30% on net sales and uses the periodic method of inventory.

REQUIRED: Determine the merchandise lost by fire.

Q.

On March 31 2020 the adjusted year-end account balances of ABC Company were as follows:

Required: Prepare, in good form, a classified Balance Sheet. ABC Company uses the perpetual inventory method.

Q.

The March 31, 2019 balance sheet of Kalakaua Corporation had Accounts Receivable of $525,000 and a credit balance in Allowance for Doubtful Accounts of $33,000. During the year ended March 31, 2020, the following transactions occurred: sales on account $1,550,000; sales returns & allowances, $120,000; collections from customers, $1,350,000; accounts written off $41,000; previously written off accounts of $5,000 were collected.

1. Using the above information, what is the balance of Accounts Receivable at March 31, 2020?

2. Suppose that it is the company policy to use the percentage of sales basis to estimate bad debts expense and anticipates 3% of net sales to be uncollectible, what is the adjusting entry at March 31, 2020? (Show calculations.)

3. Ignore the entry made in b) above.

Assume that it is company policy to use the aging of receivables basis to estimate bad debt expense. It determines that uncollectible accounts are expected to be $38,400.   What is the adjusting entry at March 31, 2020?   Assume the March 31, 2020 balance of Accounts Receivable is $575,000 and Allowance for Doubtful Accounts has an existing balance of $3,000 (cr). (Show calculations)

Q. The following figures are provided for Hanauma Marketing Corp. What is gross margin?

Sales revenue                                           $480,000

Cost of goods sold                                      300,000

Sales discounts                                           20,000

Sales returns and allowances                    15,000

Operating expenses                                     85,000

Interest revenue                                             5,000

a) $105,000

b) $140,000

c) $145,000

d) $ 90,000

e) $180,000

Maintain inventory records Fire fox manufacturing has the following information in relation to commodity for July inventory ................July1...................20 units at birr 50

Sales

July 7.........10 units

July 18.......... 10 units

July 27...........10 units

Purchase

july 3..............20 units at birr 51

July 20 ................. 15 units at birr 52

Required Task 1: the company used perpetual inventory system and LIFO costing determine cost of goods sold and ending inventory

Task 2: if the company used periodic inventory system and FIFO costing method , determine costs of goods sold and ending inventory.

1.Which of the following is not a goal of the internal controls implemented by owners and managers?

Multiple Choice

• to safeguard assets

• to ensure reliability of accounting data

• to promote compliance with management policies and applicable laws

• to reduce expenses through the use of efficient processes

2.The three major legal forms of business entity are the sole proprietorship, the partnership, and the __________.

Multiple Choice

• merchandiser

• corporation

• service business

• small business

3.The financial statements submitted to the SEC by a corporation must be __________ by an independent accountant to ensure their fairness and adherence to generally accepted accounting principles.

Multiple Choice

• audited

• reviewed

• created

• read

4.A form of business entity owned by two or more people is called a(n) __________.

Multiple Choice

• corporation

• sole proprietorship

• partnership

• limited liability company

5.An example of an economic entity is

Multiple Choice

• a town.

• a business.

• a politician.

• a church.

6.The form of a business organization that is not affected by the withdrawal or death of an owner and can continue indefinitely is the

Multiple Choice

• sole proprietorship.

• partnership.

• corporation.

• nonprofit organization.

7.Tax planning includes

Multiple Choice

• preparing tax returns.

• auditing tax returns.

• correcting tax returns.

• suggesting actions to reduce tax liability.

8.Which of the following did NOT result from the Sarbanes-Oxley Act?

Multiple Choice

• the creation of a five-member Public Company Accounting Oversight Board

• the reduction of the “Big Five” accounting firms to the “Big Four”

• the requirement that chief executives and chief financial officers of publicly-traded corporations certify their financial statements

• the requirement that accounting firms maintain the same lead auditor for a company for at least ten years

9.The Sarbanes-Oxley Act includes rules on

Multiple Choice

• auditor retention.

• auditor reliability.

• auditor rotation.

• auditor reporting.

10.The debts or obligations of a business are known as its __________.

Multiple Choice

• assets

• liabilities

• owner's equity

• capital

12.When a business sells services for cash, assets increase and revenue __________.

Multiple Choice

• increases

• decreases

• is unchanged

• may either increase or decrease

13.Which of the following equations is the Fundamental Accounting Equation?

Multiple Choice

• Assets + Liabilities = Owner’s Equity

• Assets + Owner’s Equity = Liabilities

• Assets = Liabilities + Owner’s Equity

• Assets = Liabilities − Owner’s Equity

14.The balance sheet shows:

Multiple Choice

• the results of business operations.

• all revenues and expenses.

• the amount of net income or loss.

• the financial position of a business at a given time.

15.When analyzing the effect of a business transaction, which of the following is not a step taken to describe the financial event?

Multiple Choice

• identify the property

• identify who owns the property

• determine the location of the property

• determine the amount of the increase or decrease

16.If during the year total assets increase by $75,000 and total liabilities decrease by $16,000, by how much did owner's equity increase/decrease?

Multiple Choice

• $91,000 increase

• $59,000 decrease

• $91,000 decrease

• $75,000 increase

17.When an electric bill is paid, which of the following increases?

Multiple Choice

• assets

• expenses

• liabilities

• owner's equity

18.At the end of its first year of operations, Shapiro’s Consulting Services reported net income of $31,300. They also had account balances of: Cash, $18,900; Office Supplies, $3,200, Equipment, $25,800 and Accounts Receivable, $8,000. The owner’s total investment for this first year was $20,400 and the owner withdrew $2,740 for personal use.

Calculate the ending balance to be reported on the Statement of Owner’s Equity in the Owner’s Capital account.

Multiple Choice

• $70,600

• $31,300

• $50,500

• $48,960

19.Which of these accounts would appear on a firm’s income statement?

Multiple Choice

• assets and liabilities

• revenues and expenses

• assets and revenues

• liabilities and expenses

20.The Balance Sheet heading includes each of the following except:

Multiple Choice

• firm's name.

• firm's address.

• title of the report.

• date of the report.

21.Separate written records called ____________________ are kept for each asset and liability and for the owner's equity of a business.

Multiple Choice

• accounts

• classifications

• trial balances

• financial statements

23.A business purchases equipment costing $7,300. They pay $1,400 right away and charge the remaining amount. To record this transaction, the business would:

Multiple Choice

• Debit Equipment $5,900; Credit Accounts Payable $5,900

• Debit Equipment $1,400; Credit Cash $1,400

• Debit Equipment $7,300; Credit Cash $1,400 and Credit Accounts Payable $5,900

• Debit Equipment $7,300; Credit Accounts Payable $7,300

24.Which of the following entries records the withdrawal of cash for personal use by Ty Knott, the owner of a business?

Multiple Choice

• debit Cash and credit Ty Knott, Capital

• debit Ty Knott, Drawing and credit Salary Expense

• debit Salary Expense and credit Cash

• debit Ty Knott, Drawing, and credit Cash

25.Debits are used to record:

Multiple Choice

• increases in assets.

• increases in revenue.

• decreases in expenses.

• increases in liabilities.

26.When recording a transaction in a T account, which of the following is not accurate?

Multiple Choice

• multiple debits may be used

• it is not necessary to record a credit for every transaction

• asset and expense accounts are increased via a debit

• liability and revenue accounts are decreased via a debit

27.Credits are used to record:

Multiple Choice

• decreases in assets and liabilities.

• increases in assets, liabilities, and owner's equity.

• decreases in liabilities and increases in assets and expenses.

• increases in liabilities and revenues.

28.Debits are used to record increases in:

Multiple Choice

• assets and expenses.

• assets and capital accounts.

• assets and revenue.

• assets and liabilities.

29.When cash is spent to purchase supplies, the accountant:

Multiple Choice

• debits an asset account and credits a liability account

• debits an asset account and credits an asset account

• debits an owner’s equity account and credits a liability account

• debits a liability account and credits an asset account

30.Which of the following types of accounts normally have debit balances?

Multiple Choice

• assets and revenue

• assets, liabilities, and owner's equity

• expenses and assets

• liabilities and owner's equity

31.Which of the following groups of accounts all have the same normal balance?

Multiple Choice

• cash, supplies expense, accounts payable

• accounts payable, fees income, John Smith, drawing

• accounts receivable, rent expense, John Smith, drawing

• accounts receivable, accounts payable, John Smith, capital

32.Which of the accounts below would ALL appear on the balance sheet

Multiple Choice

• Cash, Accounts Payable, Owner's Capital (ending balance)

• Accounts Receivable, Accounts Payable, Fee Income

• Utility Expense, Salary Expense, Cash

• Owner's Capital (beginning), Owner's Drawing, Supplies Expense

On January 2, SHB Company receives a 3-year, $10,000, noninterest bearing note, the present value of which is $7,722. The rate implicit on this transaction is 9%. You are completing SHB's note receivable account.

To prepare each required journal entry:

Enter the corresponding debit or credit amount in the associated column.

Round all amounts to the nearest whole number.

Not all rows in the table might be needed to complete each journal entry.

If no journal entry is needed, check the “No entry required” box at the top of the table as your response.

1. Prepare the entry to record the acquisition of the note.

No Entry Required

2. Prepare the adjusting entry necessary to record interest revenue at the end of the first year.

No Entry Required

3. Prepare the adjusting entry necessary to record interest revenue at the end of the second year.

No Entry Required