Ernest and Young conducts its Decision-making in one of the most important aspects of their services to small businesses, but the process of arriving at a decision is quite precise, it yields the best results for their client executive team as they conduct major decisions. There are a few smaller decisions that managers and staff members will make, sometimes without input. To ensure that decision-making is uniform throughout your organization, the implementation process is carefully followed. 7. Create a decision-making model through a diagram to show how your company makes a decision. 8. Provide three examples to how a CEO can participate in a decision-making process. 9. Based on what we discussed in class, in your opinion, list three examples of errors in decision making.

7. Create a decision-making model through a diagram to show how your company makes a decision.

8. Provide three examples to how a CEO can participate in a decision-making process.

9. Based on what we discussed in class, in your opinion, list three examples of errors in decision making.

a. A US corporation has an account payable to an unrelated Irish company in 90 days. The amount of the payable is €500,000. The spot exchange rate for the euro is EUR/USD 1.2131. The company’s combined federal and state income tax rate is 27.3%; the Irish corporate income tax rate is 12.5%. The company expects the exchange rate for the euro to decline to 1.2030 prior to the account’s due date. When should the company make the payment? Explain.

b. If the payee on the account is an affiliated corporation, when should the company make the payment? Explain.

c. What is the payment described in part b called? How can the company justify the amount of the payment if it is challenged by the US Internal Revenue Service or Ireland’s Revenue authority?

The process of making a car in North American involves an exceptional amount of cross-border interaction. To sketch out the production of a $20, 000 car:

1. (a) A company in Pittsburgh mines $5, 000 worth of steel from iron they mine themselves

2. (b) A company in Toledo makes $1, 000 worth of glass from silica they mine themselves

3. (c) A company in Akron makes $500 worth of tires from rubber they buy from Cote d’Ivoire for $5.

These inputs are purchased by a company in Detroit who also has affiliates in Northern Mexico and Canada. They

(a) Make $3, 000 worth of upholstery and chairs in Mexico

(b) Pay Canadians $500 to make sure the car seems generally agreeable

The Detroit company then sell the car to their (independently owned) dealer for $20, 000. The dealer finally sells it to a customer in New York for $25, 000. At the last minute, the salesman gets the customer to get an undercoat for $1,000 because, you know, it’s a good idea what with the road salt.

What was contribution to US GDP from the car? For each company involved, what is the value-added?

Problem 9-4A (Video)

Colter Company prepares monthly cash budgets. Relevant data from operating budgets for 2020 are as follows.

January

February

Sales$360,000$400,000

Direct materials purchases120,000125,000

Direct labor90,000100,000

Manufacturing overhead70,00075,000

Selling and administrative expenses79,00085,000

All sales are on account. Collections are expected to be 50% in the month of sale, 30% in the first month following the sale, and 20% in the second month following the sale. Sixty percent (60%) of direct materials purchases are paid in cash in the month of purchase, and the balance due is paid in the month following the purchase. All other items above are paid in the month incurred except for selling and administrative expenses that include $1,000 of depreciation per month.

Other data:

1.Credit sales: November 2019, $250,000; December 2019, $320,000.

2.Purchases of direct materials: December 2019, $100,000.

3.Other receipts: January—Collection of December 31, 2019, notes receivable $15,000;

                      February—Proceeds from sale of securities $6,000.

4.Other disbursements: February—Payment of $6,000 cash dividend.

The company’s cash balance on January 1, 2020, is expected to be $60,000. The company wants to maintain a minimum cash balance of $50,000.
Prepare schedules for (1) expected collections from customers and (2) expected payments for direct materials purchases for January and February.

Expected Collections from Customers

January

February

November

$

$

December

January

February

    Total collections$$

Expected Payments for Direct Materials

January

February

December

$

$

January

February

    Total payments$$

Prepare a cash budget for January and February in columnar form.

COLTER COMPANY
Cash Budget

For the Two Months Ending February 28, 2020February 28, 2020For the Quarter Ending February 28, 2020

January

February

Ending Cash BalanceManufacturing OverheadNotes ReceivableExcess (Deficiency) of Available Cash Over Cash DisbursementsTotal DisbursementsReceiptsRepaymentsTotal ReceiptsDirect MaterialsSale of SecuritiesBorrowingsDisbursementsFinancingCollections from CustomersDirect LaborSelling and Administrative ExpensesTotal Available CashCash DividendBeginning Cash Balance

$$

AddLess

:

BorrowingsExcess (Deficiency) of Available Cash Over Cash DisbursementsCollections from CustomersTotal DisbursementsTotal Available CashManufacturing OverheadTotal ReceiptsDirect LaborDirect MaterialsRepaymentsFinancingDisbursementsEnding Cash BalanceNotes ReceivableReceiptsSale of SecuritiesSelling and Administrative ExpensesCash DividendBeginning Cash Balance

    Repayments    Receipts    Cash Dividend    Excess (Deficiency) of Available Cash Over Cash Disbursements    Sale of Securities    Selling and Administrative Expenses    Total Available Cash    Notes Receivable    Total Disbursements    Total Receipts    Beginning Cash Balance    Collections from Customers    Borrowings    Disbursements    Direct Labor    Direct Materials    Ending Cash Balance    Financing    Manufacturing Overhead    

    Manufacturing Overhead    Notes Receivable    Sale of Securities    Beginning Cash Balance    Total Disbursements    Excess (Deficiency) of Available Cash Over Cash Disbursements    Total Receipts    Repayments    Direct Materials    Receipts    Collections from Customers    Selling and Administrative Expenses    Total Available Cash    Cash Dividend    Borrowings    Direct Labor    Disbursements    Financing    Ending Cash Balance    

    Cash Dividend    Beginning Cash Balance    Total Receipts    Disbursements    Direct Labor    Borrowings    Notes Receivable    Total Disbursements    Financing    Total Available Cash    Collections from Customers    Direct Materials    Manufacturing Overhead    Receipts    Sale of Securities    Ending Cash Balance    Repayments    Selling and Administrative Expenses    Excess (Deficiency) of Available Cash Over Cash Disbursements    

    Disbursements    Total Receipts    Sale of Securities    Total Disbursements    Cash Dividend    Total Available Cash    Ending Cash Balance    Manufacturing Overhead    Receipts    Beginning Cash Balance    Notes Receivable    Borrowings    Excess (Deficiency) of Available Cash Over Cash Disbursements    Repayments    Selling and Administrative Expenses    Collections from Customers    Direct Labor    Direct Materials    Financing    

BorrowingsFinancingReceiptsDirect MaterialsCollections from CustomersTotal ReceiptsBeginning Cash BalanceRepaymentsTotal Available CashCash DividendTotal DisbursementsEnding Cash BalanceDisbursementsManufacturing OverheadDirect LaborExcess (Deficiency) of Available Cash Over Cash DisbursementsNotes ReceivableSelling and Administrative ExpensesSale of Securities

AddLess

:

Manufacturing OverheadFinancingExcess (Deficiency) of Available Cash Over Cash DisbursementsRepaymentsCash DividendDirect LaborTotal Available CashBorrowingsBeginning Cash BalanceSelling and Administrative ExpensesEnding Cash BalanceTotal DisbursementsSale of SecuritiesNotes ReceivableReceiptsTotal ReceiptsDirect MaterialsCollections from CustomersDisbursements

    Ending Cash Balance    Cash Dividend    Excess (Deficiency) of Available Cash Over Cash Disbursements    Beginning Cash Balance    Manufacturing Overhead    Selling and Administrative Expenses    Direct Labor    Collections from Customers    Direct Materials    Total Disbursements    Total Available Cash    Financing    Disbursements    Notes Receivable    Borrowings    Total Receipts    Receipts    Repayments    Sale of Securities    

    Total Available Cash    Cash Dividend    Selling and Administrative Expenses    Total Disbursements    Total Receipts    Borrowings    Direct Materials    Beginning Cash Balance    Excess (Deficiency) of Available Cash Over Cash Disbursements    Financing    Collections from Customers    Repayments    Manufacturing Overhead    Notes Receivable    Receipts    Direct Labor    Disbursements    Ending Cash Balance    Sale of Securities    

    Excess (Deficiency) of Available Cash Over Cash Disbursements    Disbursements    Notes Receivable    Financing    Receipts    Collections from Customers    Sale of Securities    Manufacturing Overhead    Ending Cash Balance    Direct Materials    Total Disbursements    Repayments    Selling and Administrative Expenses    Borrowings    Direct Labor    Beginning Cash Balance    Total Available Cash    Total Receipts    Cash Dividend    

    Total Available Cash    Borrowings    Direct Labor    Manufacturing Overhead    Disbursements    Repayments    Total Receipts    Cash Dividend    Direct Materials    Ending Cash Balance    Receipts    Beginning Cash Balance    Financing    Selling and Administrative Expenses    Total Disbursements    Excess (Deficiency) of Available Cash Over Cash Disbursements    Notes Receivable    Collections from Customers    Sale of Securities    

    Total Disbursements    Disbursements    Direct Materials    Direct Labor    Ending Cash Balance    Borrowings    Excess (Deficiency) of Available Cash Over Cash Disbursements    Financing    Manufacturing Overhead    Notes Receivable    Selling and Administrative Expenses    Receipts    Repayments    Total Receipts    Cash Dividend    Sale of Securities    Total Available Cash    Collections from Customers    Beginning Cash Balance    

    Total Available Cash    Beginning Cash Balance    Direct Labor    Cash Dividend    Sale of Securities    Total Disbursements    Total Receipts    Borrowings    Financing    Collections from Customers    Excess (Deficiency) of Available Cash Over Cash Disbursements    Direct Materials    Disbursements    Selling and Administrative Expenses    Ending Cash Balance    Manufacturing Overhead    Notes Receivable    Receipts    Repayments    

Total DisbursementsTotal ReceiptsManufacturing OverheadCollections from CustomersCash DividendBeginning Cash BalanceNotes ReceivableFinancingDirect LaborBorrowingsRepaymentsDirect MaterialsDisbursementsExcess (Deficiency) of Available Cash Over Cash DisbursementsEnding Cash BalanceReceiptsSale of SecuritiesSelling and Administrative ExpensesTotal Available Cash

Notes ReceivableCollections from CustomersSale of SecuritiesDirect MaterialsCash DividendTotal DisbursementsDisbursementsBeginning Cash BalanceManufacturing OverheadExcess (Deficiency) of Available Cash Over Cash DisbursementsFinancingDirect LaborReceiptsRepaymentsEnding Cash BalanceSelling and Administrative ExpensesTotal Available CashTotal ReceiptsBorrowings

AddLess

:

RepaymentsDirect MaterialsCash DividendManufacturing OverheadSale of SecuritiesSelling and Administrative ExpensesBeginning Cash BalanceFinancingBorrowingsTotal ReceiptsCollections from CustomersNotes ReceivableReceiptsDisbursementsTotal Available CashTotal DisbursementsDirect LaborEnding Cash BalanceExcess (Deficiency) of Available Cash Over Cash Disbursements

AddLess

:

Excess (Deficiency) of Available Cash Over Cash DisbursementsFinancingManufacturing OverheadTotal Available CashBeginning Cash BalanceCollections from CustomersCash DividendTotal ReceiptsRepaymentsReceiptsDirect LaborNotes ReceivableBorrowingsDirect MaterialsDisbursementsEnding Cash BalanceSale of SecuritiesSelling and Administrative ExpensesTotal Disbursements

Notes ReceivableCash DividendEnding Cash BalanceFinancingManufacturing OverheadReceiptsRepaymentsExcess (Deficiency) of Available Cash Over Cash DisbursementsSale of SecuritiesDirect LaborCollections from CustomersSelling and Administrative ExpensesTotal DisbursementsTotal Available CashBeginning Cash BalanceTotal ReceiptsBorrowingsDirect MaterialsDisbursements

$$

Use this information to answer Question 1 to Question 9: Z is a Standard Normal variable. 1. (1 point) P(Z ≤ 1.2) = (a) 0.8849 (b) 0.1151 (c) 0.6482 (d) 0.3685 2. (1 point) P(Z ≥ 1) = (a) 0.8413 (b) 0.6821 (c) 0.3586 (d) 0.1587 3. (1 point) P(−0.4 < Z < 0.5) = (a) 0.8962 (b) 0.3469 (c) 0.8762 (d) 0.2562 Page 1 of 9 BUSI 1013 Assignment 003 Spring 2020 4. (1 point) P(Z < −0.9) = (a) 0.4524 (b) 0.8721 (c) 0.1841 (d) 0.4691 5. (1 point) P(Z > −0.8) = (a) 0.3658 (b) 0.7881 (c) 0.3527 (d) 0.7372 6. (1 point) Find z such that P(Z < z) = 0.4. (a) -0.25 (b) -0.75 (c) 0.25 (d) 0.75 7. (1 point) Find z such that P(Z > z) = 0.4. (a) 0.75 (b) -0.25 (c) -0.75 (d) 0.25 8. (1 point) Find z such that P(Z > z) = 0.6 (a) 0.75 (b) 0.25 (c) -0.25 (d) -0.75 9. (1 point) Find z such that P (−z < Z < z) = 0.6. (a) -1.16 (b) -0.84 (c) 1.16 (d) 0.84 Page 2 of 9 BUSI 1013 Assignment 003 Spring 2020 Use this information to answer Question 10 to Question 13: Let X be the height of adults in Toronto. Height of Adults in Toronto is normally distributed with mean 170 cms and standard deviation 4 cms. 10. (1 point) What is the probability that height of adults in Toronto is less than 174 cms? (a) 0.8410 (b) 0.1590 (c) 0.4528 (d) 0.1764 11. (1 point) What is the probability that height of adults in Toronto is more than 168 cms? (a) 0.244 (b) 0.127 (c) 0.633 (d) 0.691 12. (1 point) What is the probability that height of adults in Toronto is less than 168 cms? (a) 0.376 (b) 0.556 (c) 0.309 (d) 0.836 13. (1 point) What is the probability that height of adults in Toronto is between 165 cms and 175 cms? (a) 0.266 (b) 0.788 (c) 0.166 (d) 0.676 Use this information to answer Question 14 to 16: The cost of monthly commute in Toronto is normally distributed with mean $90 and standard deviation of $10. 14. (1 point) What is the probability that the cost of monthly commute of a person is more than $87? (a) 0.618 (b) 0.376 (c) 0.973 (d) 0.255 Page 3 of 9 BUSI 1013 Assignment 003 Spring 2020 15. (1 point) What is the probability that the cost of monthly commute is less than $103? (a) 0.562 (b) 0.265 (c) 0.903 (d) 0.169 16. (1 point) What is the probability that the cost of monthly commute of a person is between $78 and $95? (a) 0.756 (b) 0.576 (c) 0.265 (d) 0.832 Use this information to answer Question 17 to Question 18: Yorkville University students scored an average of 145 and standard deviation of 3 on IQ Test. University of Toronto students scored an average of 150 and standard deviation of 9 on IQ test. Assume that the scores of Yorkville University students and University of Toronto students are normally distributed. 17. (1 point) What percent of Yorkville University students scored less than 140? (a) 95.2% (b) 4.8% (c) 75.2% (d) 34.6% 18. (1 point) What percent of University of Toronto students scored less than 140? (a) 26.6% (b) 37.5% (c) 13.3% (d) 86.2% 19. (2 points) Variable X is a normal random variable with standard deviation 3. If the probability that X is less than 16 is 0.84, then what is the mean of X ? (a) 13 (b) 12 (c) 16 (d) 14 Page 4 of 9 BUSI 1013 Assignment 003 Spring 2020 20. (2 points) Variable X is a normal random variable with mean 100. If the probability that X is greater than 90 is 0.84, then what is the standard deviation of X ? (a) 16 (b) 15 (c) 13 (d) 10 Part B: Sampling Distribution Use this information to answer Question 21 to Question 23: Sample of 100 customers is selected from an account receivable portfolio. The population mean account balance is $1500. The population standard deviation is known to be $90. 21. (3 points) What is the probability that mean account balance of the sample is more than $1510? (a) 0.456 (b) 0.867 (c) 0.133 (d) 0.346 22. (3 points) What is the probability that the mean account balance of the sample is less than $1495? (a) 0.289 (b) 0.256 (c) 0.572 (d) 0.452 23. (3 points) What is the probability that the mean account balance of the sample is between $1490 and $1505? (a) 0.672 (b) 0.976 (c) 0.814 (d) 0.578 Use this information to answer Question 24 to Question 26: Sample of 100 customers is selected from an account receivable portfolio and the sample mean account balance is $1500. The population standard deviation is known to be $90. Page 5 of 9 BUSI 1013 Assignment 003 Spring 2020 24. (3 points) Find the 95% confidence interval for the mean account balance of the population? (a) (1476.3,1490.7) (b) (1482.4,1517.6) (c) (1476.4,1524.7) (d) (1498.4,1534.8) 25. (2 points) What is the margin of error associated with 95% confidence interval? (a) 12.6 (b) 14.2 (c) 18.4 (d) 17.6 26. (3 points) Suppose the sample was of size 150 instead of 100. Rest of the values remain the same. What would be the 95% confidence interval for the mean account balance of the population? (a) (1485.6,1514.4) (b) (1456.7,1567.4) (c) (1434.7,1565.3) (d) (1450.4,1549.6) Use this information to answer Question 27 to Question 28: A sample of 75 calls is monitored at an in-bound call centre and the average length of the calls is 4 minutes. The population standard deviation is unknown. The sample standard deviation is found to be 4 minutes. 27. (3 points) What is the 95% confidence interval for the average length of inbound calls? (a) (3.56,4.44) (b) (3.45,4.55) (c) (3.25,4.75) (d) (3.08,4.9) 28. (2 points) What is the margin of error associated with 95% confidence interval? (a) 0.67 (b) 0.92 (c) 0.45 (d) 1.34

Moonbeam Company manufactures toasters. For the first 8 months of 2020, the company reported the following operating results while operating at 75% of plant capacity:

Cost of goods sold was 70% variable and 30% fixed; operating expenses were 80% variable and 20% fixed.

In September, Moonbeam receives a special order for 15,000 toasters at $7.50 each from Luna Company of Ciudad Juarez. Acceptance of the order would result in an additional $2,900 of shipping costs but no increase in fixed costs.

Erin is a 19-year-old university student in her second year at university. Erin is bright and has always been a high achiever at school, and her parents have been keen to prompt her to follow her dreams and encourage her pursuits. Erin loves cooking for her family, particularly her older brother Josh. In order to achieve the best possible Year 12 score, Erin’s parents decided to move her to a private school for girls that had a good reputation for university acceptance. Erin’s mother took on extra work to pay for the school fees. While Erin was sad to leave her old school and friends, she agreed that this was the best choice for her academically. Things did not go as well as planned, however, and Erin was subjected to distressing bullying from the beginning of Year 12 until she finished the school year. Erin has always been conscious of her health and weight but was targeted because she had ‘fat legs’

and the bullies sent her text messages of ‘fat people’ and memes with derogatory messages about her. Because her parents had made sacrifices for her to attend this school, Erin didn’t want to tell them that she was being bullied, so she kept it to herself. This bullying had a devastating impact on Erin’s self-esteem, and she began dieting. People would comment on how great she looked, so she continued dieting. She felt she had some control over what she ate, and this made her feel better. When her local gym had a special rate for new members, Erin joined. When she wasn’t at the gym, she was studying. Because she was working out so much, and restricting her diet, Erin became seriously constipated. So, she went to her local pharmacy and began buying laxatives. Erin noticed that they helped with her constipation, but they also reduced her weight (Erin would weigh herself daily), so she began taking them all the time. It got to the point where her local pharmacy would not sell them to her anymore, so she began buying them from multiple pharmacies and online. Despite the turmoil at school, Erin did well academically and achieved exceptionally high marks in her final exams. She got her first preference for courses and enrolled in a Bachelor of Dietetics at a well-regarded university. Recently, however, wearing baggy clothing and restricting her food intake has been causing suspicions. Her mother has told her she is too thin, and her brother and father have expressed concern about her –but Erin doesn’t see it this way. When Erin looks in the mirror, she sees the fat girl who was bullied in Year 12. Erin has collapsed at her gym several times, and staff have expressed concern about her weight. Erin worried that as with the pharmacy, she will need to find another gym. At 1.62 cm tall and weighing 41 kg, Erin’s BMI is 15.6.

1. What are some of the physical risksassociated with Erin’s behaviours?
2. Erin is exhibiting many different behaviours consistent with ED. Describe what these are;
3. EDs can be upsetting for family and friends of the consumer, and family members who are concerned about their loved one are almost always correct in their ED concerns. What are the impacts on the familyare common when a member has an ED;
4. Investigate longer term issues that may impact recoveryfrom an Eating Disorder.
5. Develop three questionsyou would ask Erin during an interview to complete an MSE. They could be from any MSE area.
6. Complete a risk assessment;
7. Develop a nursing care plan.

Define and defend your own position on the University of Texas/Texas A& M admissions policy of granting admission to the Top 7-8% of students from Texas High Schools.

OGOYA Ltd is a fast-growing company in need of new financing to fund its expansion plans. It is hoping to raise $10 million dollars from a debt issuance. It is considering the following options:

A Issue 2-year 8% debentures at par on January 1, 2019. Interest payments are made annually at the end of each year. The debenture matures on December 31, 2020.

B Issue 2-year 4% convertible debentures at par on January 1, 2019. The debentures can be converted into 10 million $1 shares at maturity on December 31, 2020. Interest payments are made annually at the end of each year. Without the conversion feature, the debenture would be priced the same as option A.

Question What's the journal entries of A and B