Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow.
  
Additional Information Items

1. An analysis of WTI's insurance policies shows that $3,335 of coverage has expired.
2. An inventory count shows that teaching supplies costing $2,891 are available at year-end 2017.
3. Annual depreciation on the equipment is $13,342.
4. Annual depreciation on the professional library is $6,671.
5. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,300, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018.
6. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,261 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)
7. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
8. The balance in the Prepaid Rent account represents rent for December.

2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts.
2-b. Prepare an adjusted trial balance.
  

Read this excerpt from Plato's Republic and then consider this question:

Glaucon argues that people will always act unethically if there is no chance of being caught. Do you agree or disagree?

Note: Gyges' ring is like the ring that Frodo carried in The Lord of the Rings. It gives invisibility.

_______________________________________________

The Ring of Gyges, from Book II of Plato’s Republic.

Instructor’s note: This is part of a dialogue between Socrates (who represents Plato’s view) and Glaucon (Plato’s older brother). Earlier in the dialogue, Socrates has given an argument about the nature and importance of justice. The character Glaucon disagrees with Socrates, and this excerpt is Glaucon’s speech regarding the nature of justice.

Now that those who practice justice do so involuntarily and because they have not the power to be unjust, will best appear if we imagine something of this kind: having given both to the just and the unjust power to do what they will, let us watch and see whither desire will lead them; then we shall discover in the very act the just and unjust man to be proceeding along the same road, following their interest, which all natures deem to be their good, and are only diverted into the path of justice by the force of law. The liberty which we are supposing may be most completely given to them in the form of such a power as is said to have been possessed by Gyges the ancestor of Croesus the Lydian.

According to the tradition, Gyges was a shepherd in the service of the king of Lydia; there was a great storm, and an earthquake made an opening in the earth at the place where he was feeding his flock. Amazed at the sight, he descended into the opening, where, among other marvels, he beheld a hollow brazen horse, having doors, at which he stooping and looking in saw a dead body of stature, as appeared to him, more than human, and having nothing on but a gold ring; this he took from the finger of the dead and reascended. Now the shepherds met together, according to custom, that they might send their monthly report about the flocks to the king; into their assembly he came having the ring on his finger, and as he was sitting among them he chanced to turn the collet of the ring inside his hand, when instantly he became invisible to the rest of the company and they began to speak of him as if he were no longer present. He was astonished at this, and again touching the ring he turned the collet outwards and reappeared; he made several trials of the ring, and always with the same result-when he turned the collet inwards he became invisible, when outwards he reappeared. Whereupon he contrived to be chosen one of the messengers who were sent to the court; where as soon as he arrived he seduced the queen, and with her help conspired against the king and slew him, and took the kingdom.

Suppose now that there were two such magic rings, and the just put on one of them and the unjust the other; no man can be imagined to be of such an iron nature that he would stand fast in justice. No man would keep his hands off what was not his own when he could safely take what he liked out of the market, or go into houses and lie with any one at his pleasure, or kill or release from prison whom he would, and in all respects be like a God among men. Then the actions of the just would be as the actions of the unjust; they would both come at last to the same point. And this we may truly affirm to be a great proof that a man is just, not willingly or because he thinks that justice is any good to him individually, but of necessity, for wherever anyone thinks that he can safely be unjust, there he is unjust. For all men believe in their hearts that injustice is far more profitable to the individual than justice, and he who argues as I have been supposing, will say that they are right. If you could imagine any one obtaining this power of becoming invisible, and never doing any wrong or touching what was another's, he would be thought by the lookers-on to be a most wretched idiot, although they would praise him to one another's faces, and keep up appearances with one another from a fear that they too might suffer injustice.

Assume that the world consists of two countries – US and Germany. Both the countries produce two goods – Automobiles and Corn. There are three factors of production, Capital, Land and Labour. The specific factor in Automobiles is Capital while in Corn it is Land. Labour is used in the production of both the goods. Germany is assumed to be relatively more well- endowed in Capital than the US, while US is relatively more well-endowed in Land than Germany.

Answer the following:

1. German farmers /landowners have been opposing free trade with the US. Why is that the case? Explain in detail using appropriate figure(s).                                                                              (10)                               
2. How would consumers in the US gain from trade with Germany? Explain using an appropriate figure.                                                                                                                                                (10)

In 2009, US foreign assets was 129 percent of GDP and its liabilities was 148 percent. Suppose that 70 percent of U.S. foreign assets are denominated in foreign currencies, but that all U.S. liabilities to foreigners are denominated in dollars (these are approximately the correct numbers). In 2009, U.S. GDP was around $14.4 trillion.

1. Compute the effect of a 10% USD depreciation on US foreign assets, US foreign liabilities and US net foreign wealth position (in USD).
2. Compute the effect of a 10% USD depreciation on the foreign assets, the foreign liabilities and the net foreign wealth position of the Rest of the World (ROW) measured in USD. Note: from ROW's point of view, the US is defined as Foreign and ROW is defined as Home.

After having taken an MBA a friend of yours is planning to open a cafeteria in a well-known Pyrenees ski resort. In order to prepare the forecasted financial expenses for a potential investor he has asked you some help in order to double check the financial statements of the business.

The cafeteria would only be opened for 6 months (180 days), starting the 1^st of November and until the 30^th of April, so you must consider all the financial statements on a semester basis.

Expected sales in average:

• Breakfasts served: 25 breakfast per day at an average price of 10€ each
• Lunch: 50 breakfast per day at an average price of 20€ each
• Coffee: 3.000 cups per month at 2€ each
• Sandwiches: estimated 1.000 per month at an average price of 4€
• Soups: estimated 375 per month at an average price of 6€

During the season, the cafeteria will host 2 private events for special guests of the resort:

• New Year’s dinner party consisting in 100 menus at 100€ (includes dinner and open bar), with an expected margin of 40%, which will be collected 30 days after its celebration (30^th January).
• Easter’s special lunch consisting in 100 menus at 50€, with an expected margin of 30%, which will be collected 30 days after its celebration (end May)

Additionally, there will be extra revenues by selling souvenirs as postcards and fridge magnets. The forecast is to sell an equivalent of the 10% of the total revenues (excluding the private events). The cost of the souvenirs is barely the 10% of its price with collecting & payment conditions being the same as the rest of the cafeteria products.

The direct cost of the ingredients of every meal or food/beverage served is as following (over price):

• Breakfast: 30%
• Lunch: 35%
• Coffee: 20%
• Sandwiches: 50%
• Soup: 25%

The costs related to the goods sold (food, beverages, special events, souvenirs) will pe paid in average 30 days after its consumption.

You expect to have a stable headcount of the following positions:

• Waiters: 3 persons, with a gross salary of 1.000€ per month (only during the 6 months season) plus a 30% of Social Security taxes.
• Cooker: 2 persons, with a gross salary of 2.000€ per month (only during the 6 months season) plus a 30% of Social Security taxes
• Business manager with a gross salary of 5.000€ per month (which applies for all year) plus a 30% of Social Security taxes

Salaries will be paid at the end of the month while SS taxes at the end of every calendar quarter.

Consumption of water, power and heat are expected to amount 3.000€ per month. Since the payments is usually in 60 days, at the end of the season 1/3 of the utilities will remain unpaid.

As part of the agreement with the ski resort, cafeteria will have to liquidate and pay a royalty of an equivalent of the 10% of the total semester revenues (to be paid the month after the season ends).

Additionally, it has been calculated that other general expenses, as alarms, cleaning, kitchen tools, etc. will amount a 3% of the revenues, all of them paid within the season period.

The cafeteria will have to invest 60,000€ in order to purchase some necessary assets for the operation, as chairs, tables, shelves, a fridge, an oven and cutlery. All those elements will be sold after the season at a 50% of its price value. All of them are expected to be paid during the first 3 months, while the collection of the end-season sale will be expected 60 days after the closing.

With the purpose to face the initial investment payment for the assets acquired, contemplate to get a bank loan with a 6 months maturity, repaid (principal plus interests) on the 30^th April with a 6% annual compound interest rate.

Consider that 50% of the total revenues (including souvenirs and special events) are paid with credit card which results in a 1,5% financial cost for the cafeteria. The rest is being paid upfront.

Estimated tax provision is 25%, to be paid 60 days after the closing balance of the season.

The Balance sheet at the beginning of the period (1^st November) only contained 10.000€ of Cash and 10.000€ of Capital stock.

1. Please elaborate the 2021-22 semester (Nov-April) Income statement and Cash-Flow Statement, showing in this case the 3 standard categories (Operational, Investing, Financial). Also complete the 31^st April 2022 Balance Sheet and identify in it the differences between the Net Income and the Free Cash-Flow of the period. Comment all the results shown. (85 points: 25pts IS, 25pts CF, 25pts BS and 10pts for explaining and showing the differences).
2. If you were a potential investor what aspects would, you consider according the financial information seen above. Does the fact of being a seasonal business would affect your decision on investing or not? If the forecast was contemplating, 12 months rather than 6 would the financials change? Explain (15 points)

Business analytics MBA- There are a number of learning scenarios or types of learning algorithms, that can be used depending on whether a target variable is available and how much labeled data can be used. These approaches include supervised, unsupervised, and semi-supervised learning. Explain the difference between each type of machine learning. Give an example of how each is used. Write your responses in detail with examples. Be sure to identify the source of your example in your posting. Your initial post should be of minimum 300 words.

Most MBA students study in “teams.” Is there a potential tragedy of the commons within the study teams? Ask differently, what incentive problems do these groups have to overcome? How has your group sought to overcome the incentive problems? Why are teams generally small? What would be the consequence of doubling or tripling the size of study teams? How does team size influence the extent to which teams allocate "points" for members contributions to team projects?

As a recently hired MBA intern, you are working in a consulting capacity to provide an analysis for Al Dente's Italian Restaurant. A financial income Statement is presented below:

Sales $4,640,560

Cost of sales (all variable) $2,679,008

Gross Margin $1,961,553 Operating expenses:

Variable $478,117

Fixed $367,521

Total operating expenses: $845,638

Administative expenses (all fixed) $970,725

Net operating income $145,190

This income statement presents the sales, expenses and pre-tax operating income for a local eating facility. At Al Dente, the average meal cost for lunches and dinners are $20 and $40 respectively. Al Dente serves both lunch and dinner 300 days per year and serves twice as many lunches as dinners. As the MBA intern you are to prepare a managerial accounting focused report to the owners of Al Dente's Italian Restaurant, to include the following

5. In order to increase NOI, the owner of the restaurant is considering adjustments to the quality of food ingredients currently used. Rather than using premium ingredients, use of average quality ingredients would reduce the cost of food by 15%. The owner proposes to not change the current meal pricing. As the consultant, prepare a memo to the owner that presents the pros and cons of this change in operations. What are the potential impacts on revenue, costs, and net operating income may result from this change? The owner does not want to see a decrease in net operating income. Could the owner make this change and absorb a decrease in customers, and how would you demonstrate numerically to support your analysis? What other factors or consequences of this decision should the owner consider besides the financial impact of the change? Hint: this qualitative analysis is to be thorough. Expect to present 400 words or so, and support your analysis using calculated or given accounting data. Please show how you got the calculations!!!