On April 1, 2020, Mendoza Company (a U.S.-based company) borrowed 504,000 euros for one year at an interest rate of 5 percent per annum. Mendoza must make its first interest payment on the loan on October 1, 2020, and will make a second interest payment on March 31, 2021, when the loan is repaid. Mendoza prepares U.S. dollar financial statements and has a December 31 year-end. Prepare all journal entries related to this foreign currency borrowing assuming the following exchange rates for 1 euro:

Background: A few years ago, companies such as AIG, who had a hand in the cause of the economic downturn that has devastated our economy, were planning to give or actually gave out huge golden parachutes to the same executives who led and approved of the companies actions.

Instructions: Please answer the questions below:

1) Perform a search of a CEO who has received a golden parachute.

1a) Who was the CEO?

1b) What was the company from where he or she received the golden parachute?

1c) What was the total compensation in the golden parachute?

1d) What happened to the company after the CEO's departure terms of before and after revenue?

1e) After the CEO's departure, did the former CEO obtain a leadership position at another firm? If yes, what company.

2) Based on your reading of Chapter 10 of your DLR e-text, do you believe the payment of these golden parachutes was ethical, right or wrong, and why? Please be substantive in your answers.

suppose the Finnish government allows resource extraction that produce large quantities of oil

Use the following information on the U.S. dollar value of the euro.

On October 30, 2020, a U.S. company receives a purchase order from a customer in Spain. Under the sale terms, the customer will pay the company €100,000 on April 30. On October 30, the U.S. company also enters a forward contract to sell €100,000 on April 30, 2021. The company delivers the merchandise to the customer on November 1. On April 30, the company receives €100,000 from the customer and sells it using the forward contract. The company's accounting year ends December 31.

What net gain or loss is recognized in 2020, in addition to sales revenue?

2. You are the CEO of a US manufacturing company. You are being acquired by a large Japanese company who wants to incorporate your products as a component in their final products. They currently use the Kaizen Costing system and they have indicated that beginning next year, the US Company will use the same system. The CFO wants to understand better the differences and how it will change her responsibilities. How do you help her understand those differences? What plans would you make for the transition to Kaizen costing?

Problem #8

Among 300 employees in a company 100 had Engineering degree, 110 had MBA degree, and 70 had both Engineering and MBA degrees. If an employee from this company is selected at random, find the probability that the employee

a. Has Engineering degree but not MBA..

b. Engineering or MBA degree.

Wings Hospital has had a busy week. Two issues have arisen: (1) an employee was dismissed just prior to unionization, and (2) a veteran was interviewed but not hired for a position and is alleging discrimination and harassment.

The hospital has just been unionized, and an employee was dismissed who was a designated union representative. The employer said she was found chatting with other employees on social media about the union during the lunch break on company computers 24 hours before the union was voted in, and the former employee filed a charge with the regional labor relations office.

In addition, the company’s CEO has received a charge of discrimination and harassment regarding a female veteran who was interviewed but not hired for an insurance coordinator position. The veteran claims the interviewer was making unseemly gestures towards her during the interview.

You can consult both your assigned chapter reading and the U.S. National Labor Relations Board (NLRB) website to address the checklist items below:

Checklist:

• Identify the labor relations law(s) pertaining to the two dismissed employees.
• State the potential steps that will be taken by the NLRB regarding the charges filed by the former employee.
• Identify the EEOC laws related to the alleged discrimination and harassment charges brought by the veteran who was interviewed but not hired.
• State remedies or actions needed to be taken by the HR Department/Wings Hospital to comply with the EEOC and labor relations laws that applied to this scenario.

"Some people call this artificial intelligence, but the reality is this technology
will enhance us. So instead of artificial intelligence, I think we'll augment
our intelligence." Ginni Rometty, former CEO of IBM

Discuss the term “Augmented Intelligence” and what it means for
introducing broadly the use of artificial intelligence capabilities in key
functions of the company (e.g. Marketing, Sales, R&D, IT, and Service).
(recommended to choose ByteDance, Vodafone,
Microsoft, TetraPak and Siemens as examples)

Outline three possible arguments for not recognising internally generated Goodwill as an intangible asset in accordance with NZ IAS 38.

(b) As of 30 June 2020, Rezar Ltd has the following intangible assets to report in the financial statements.

(i) The company has acquired patents on 1 July 2016 for $45,000. This patent allows the production of 300,000 units. During the year ended 30 June 2020, the company produced 36,000 units.

(ii) Externally acquired Goodwill as at 1 July 2019 was $85,000. Goodwill has been impaired by $10,000 during the current year.

(iii) On 1 October 2019, the company acquired a franchise for $27,000 for 5 years. There is great demand for this franchise in the current market, and it has a fair value of $23,000 as of 30 June 2020.

Required: Explain how each of the above intangible assets should be measured in accordance with NZ IAS 38 as of 30 June 2020. Your answer should include the most appropriate model or models available to Rezar Ltd to measure above intangible assets, amortisation (if any), impairments (if any) and the closing balances as at 30 June 2020. Show all calculations. No journal entries required.

As the world’s biggest maker of mobile phones, Nokia, the Finnish company, is a “powerhouse in Europe, Asia, and Latin America, with market shares regularly topping 30 percent”. However, in the United States, Nokia phones have lost popularity over the last few years. In March 2002, Nokia led the American market with 35 percent market share. By June of 2009, its share was only 7 percent. What happened and more importantly, what is Nokia doing about it?

As mobile phone usage skyrocketed, Nokia was the most popular choice. It was the “cool” phone—the one that everyone, from business executive to high school student to stay-at-home-mom wanted. In 2005, Nokia had just launched the N series, an innovative new line with a Web browser, video, music, and pictures in a single phone. That device moved Nokia a generation ahead in the race to build the first real smart phone. The “forecast for Nokia was as sunny and clear as an endless Finnish summer day.” Then came Apple and its iPhone with its clever touch screen and sophisticated software and services. With rave reviews and a reputation for being cool, customers flocked to buy one. However, Nokia executives dismissed the iPhone, saying they were “unimpressed by its engineering.”

Now, three years after Apple introduced the iPhone in 2007, Nokia still has no alternative. It did not anticipate changes in American consumer tastes, like flip phones or touch screens. Another major strategic blunder 246 PART THREE | PLANNING was that its models were based on a European communications standard called GSM when roughly half the United States market used the CDMA (code division multiple access) format. One former Nokia executive said, “Nokia, at the height of its success, decided not to adapt its phones for the U.S. market. That was a mistake and they’re still trying to recover from this.” An executive at a North American network operator said, “The attitude at Nokia was basically: Here is a phone. Do you want it? Nokia wouldn’t play by the rules here, and they have paid a price.” That arrogant attitude and the global economic slowdown have continued to hurt the company’s sales and earnings.

Meanwhile, Nokia set up liaison offices in Atlanta, Dallas, Seattle, and Parsippany, New Jersey, cities where the top American operators have big business units. And it has recently revamped its U.S. operations to collaborate more closely with those major operators. For example, AT&T has begun billing its customers who use Nokia services, keeping those customers from receiving a second bill from Nokia. Best Buy began carrying a Nokia netbook, which is a model for its new collaborative strategy. Nokia also forged a deal with Qualcomm, the largest maker of mobile phone chips for CDMA devices in the United States. It also struck a deal with Microsoft to design Windows Office Mobile software applications for phones that use Nokia’s Symbian operating system. Despite these efforts, however, some industry executives remain unimpressed. One analyst said, “They claim they get it and understand the U.S. market. But the execution still is not there.” Mark Louison, president of Nokia’s North American unit, who has a seat on Nokia’s global management board, said, “In the past, we had a one-size-fits-all mentality that worked well on a global basis but did not help us in this market. That has changed now.” The company recognized that its former strategy had not worked in North America and began trying to lay the groundwork for long-term success. Louison says, “Everything you see us doing is to build the broad set of capabilities to take us broader and deeper into the U.S. market.”

1. Where on the BCG Matrix would you place iPhone and Nokia brands? Where would you place any newly developed products of Iphone on BCG Matrix? Explain. (15)

2. What type of control—feedforward, concurrent, or feedback—do you think would be most important in this situation? Explain your choice (10)

3. What immediate corrective action have been used in this situation? How about basic corrective action? (10)

4. What strategies is Nokia using to revitalize its North American business? (10)