Marketing Strategy

Marketing scenario:

Congratulations. You have just been named marketing manager. Your job will be to perform the daily tasks of a marketing manager.

So what does a marketing manager do? As you know, marketing plays an essential role in almost every industry segment. In its simplest form, marketing management is about making certain that customers' needs and wants are met while increasing the profits of a company. A marketing manager's responsibilities can vary a great deal, but will always have this as a central purpose.

Your company just acquired another company that manufactures and sells packaged ice. Traditionally the company has sold in bulk to industrial users. You want to sell to consumers.

please do not give me any short answers thank you

How might a major retailer such as sears or JC penney benefit from having a transformational leader as a CEO?

What Advice would you give to the  New CEO for Wells Fargo to fix the previous fraudulant charges?

Compensation between the CEO and their employees. What are three ethical reasons why they SHOULDN'T be compensated significantly more.

A pharmaceutical company recently terminated one of it's lead chemists for private reasons.  A few days later, a network security engineer discovered an unknown user accessed one of the company's research accounts and copied a confidential file to a USB device. The file contained trade secrets regarding a revolutionary new drug to help in the fight against Alzheimer's. You are sent to the former employees' residence after the lead investigator obtained a search warrant for his residence (it is not important how the detective gained the necessary probable cause for the warrant).   When you arrive on scene you learn that the suspect lives with his wife and son, who is 21 years of age. You also learn that there are 3 computers in the residence, including one located in the suspect's private office.  

Please make sure your post is no less than 200 words.

Duff incorporated on January 1, 2015 after receiving authorization to issue 10,000 shares of $50 par value preferred stock and 100,000 shares of $10 par value common, with the former having an 8% cumulative dividend feature. During fiscal 2018, the company engaged in the following equity transactions: January 1 Issued 1,000 shares of preferred stock for $80 each. January 1 Issued 10,000 shares of common stock for $30 each. June 30 Bought 1,000 shares of common stock for the treasury at $40 each. December 31 Declared the 8% dividend on the preferred stock and a $1.00 per-share dividend on the common after determining its fiscal 2018 comprehensive income to be $500,000, of which, $510,000 represented net income.

Required—Prepare in good form the stockholders’ equity section for 2015

Outback Outfitters is a manufacturer of recreational equipment. It has been experiencing an average growth rate of 20% in sales over the past 5 years. It is August 31 and the financial controller has just prepared the company’s budgeted income statement for next year. The company has no sales force of its own and outsourcing its selling and marketing functions to an independent sales agents. The commission paid to the agent is 12% on sales for all the different products the company sold. The statement follows:（answer question d，e，f and g）

When the financial controller handed the statement to the CEO, the CEO informed the controller that the sales agent demanded an increase in the commission rate to 16% next year to cover the increasing expenses in marketing and selling the products of Outback Outfitters.

The CEO concerns that the sales agent might ask for further increase in the commission rate in the future and would like to set up its own sales team. He asks the help of the financial controller and he gathers the following information for setting up the sales team:

Commission rate to own sales team 8%

Required:

a. Prepare a contribution margin income statement for next year at the 16% commission rate.

b. Calculate the contribution margin ratio and break-even in dollar sales for next year assuming:

(1) Commission rate remains at 12%.

(2) Commission rate is increased to 16%.

c. Determine the volume of sales under 16% commission rate that would be required to generate the same net operating income under the 12% commission rate. Compute the margin of safety percentage under 16% commission rate.

d. Calculate the contribution margin ratio, break-even dollar sales and margin of safety if the company employs its own sales team.

e. Determine the volume of sales at which the net operating income would be equal regardless of whether the company sells through agents at 16% commission rate or employs its own sales team.

f. What is meant by the term operating leverage? Calculate the degree of operating leverage that the company would expect to have for next year assuming the company (1) sells through agents at 16% commission rate and (2) employs its own sales team.

g. Based on the data in (a) through (f) above, make a recommendation as to whether the company should continue to use sales agent (at 16% commission rate) or employ its own sales team. Give reasons for your answer.

Sunny Ltd., a hand sanitizer manufacturer, has prepared its financial statements for the year ended at December 31, 2019. On February 28, 2020, the board of directors authorized to issue the financial statements to shareholders. The following events have occurred:

1. On December 1, 2019, the board of directors decided to issue $50,000,000, 9% convertible bonds for the purpose of expanding business in other countries. The conversion rate is fixed at 50 shares for bond with face value of $1,000. The convertible bonds are offered to the public on January 15, 2020. The market interest rate for a similar bond without conversion option is at 12%.

2. On October 23, 2019, Sunny signed a contract to sell 10,000 hand sanitizer to a local store at a price of $200 each. However, due to the increase in the cost of materials, the estimated cost of making one hand sanitizer has been increased to $250. Sunny has to deliver the hand sanitizer to its customer on January 30, 2020.

3. Under the terms of the sales contract, Sunny undertakes to recall its new formulated sanitizer, for its manufacturing defects within six months from the date of sale. The accountants estimated that 5% of the sanitizer will be returned for refund. In January 2020, Sunny discovered a serious problem in the manufacturing process of the new formulated sanitizer. Because of this, Sunny expected that 20% of the sanitizer sold in 2019 will be returned for refund.

4. On December 15, 2019, a group of customers reported that the hand sanitizer that they bought in 2019 caused them have serious skin infection problems. They filed a lawsuit against Sunny on December 20, 2019. The company’s attorney said that it was probable that Sunny would be liable for the case. However, the amount of damage could not be estimated.

5. On February 12, 2020, the above lawsuit case was settled for the amount of $2,500,000.

6. Sunny has retail stores in China doing poorly. On February 15, 2020, Sunny estimated that those stores might report a loss of $1,500,000 in 2020.

7. In May 2019, Sunny had legal disputes with Coco Limited. Unable to reach out-of-court settlement with Coco, Sunny sued Coco for compensation for damages in August 2018. In November 2019, Sunny heard good news about the lawsuit in which the company sued Coco. Sunny’s lawyer is confident that the company will win the case and will receive about $120,000 in compensation for damages from Coco in early 2020. Sunny recognized the gain and receivable from litigation of $120,000 in year 2019.

8. On March 1, 2020, a customer owing $600,000 to Sunny filed for bankruptcy. The financial statements include an allowance for doubtful debts pertaining to this customer only of $30,000.

Required: For each of the above event, state the correct accounting treatments in accordance with Hong Kong Accounting Standards for the year ended at December 31, 2019. If it is an event after the reporting period, identify whether it is an adjusting or non-adjusting event. Give reasons for your answer.

Near the end of 2019, the management of Dimsdale Sports Co., a merchandising company, prepared the following estimated balance sheet for December 31, 2019. DIMSDALE SPORTS COMPANY Estimated Balance Sheet December 31, 2019 Assets

Cash $ 35,500 D

Accounts receivable 520,000 D

Inventory 90,000 D

Total current assets $ 645,500 CR

Equipment 612,000 D

Less: Accumulated depreciation 76,500 D

Equipment, net 535,500 CR

Total assets $ 1,181,000 CR

Liabilities and Equity

Accounts payable $ 355,000 D

Bank loan payable 14,000 D

Taxes payable (due 3/15/2020) 90,000 D

Total liabilities $ 459,000 CR

Common stock 470,500 D

Retained earnings 251,500 D

Total stockholders’ equity 722,000 CR

Total liabilities and equity $ 1,181,000 CR

To prepare a master budget for January, February, and March of 2020, management gathers the following information.

a.The company’s single product is purchased for $20 per unit and resold for $56 per unit. The expected inventory level of 4,500 units on December 31, 2019, is more than management’s desired level, which is 20% of the next month’s expected sales (in units). Expected sales are January, 7,250 units; February, 9,250 units; March, 10,750 units; and April, 10,500 units.

b. Cash sales and credit sales represent 25% and 75%, respectively, of total sales. Of the credit sales, 57% is collected in the first month after the month of sale and 43% in the second month after the month of sale. For the December 31, 2019, accounts receivable balance, $130,000 is collected in January 2020 and the remaining $390,000 is collected in February 2020.

c.Merchandise purchases are paid for as follows: 20% in the first month after the month of purchase and 80% in the second month after the month of purchase. For the December 31, 2019, accounts payable balance, $65,000 is paid in January 2020 and the remaining $290,000 is paid in February 2020.

d. Sales commissions equal to 20% of sales are paid each month. Sales salaries (excluding commissions) are $90,000 per year.

e. General and administrative salaries are $144,000 per year. Maintenance expense equals $1,900 per month and is paid in cash.

f. Equipment reported in the December 31, 2019, balance sheet was purchased in January 2019. It is being depreciated over eight years under the straight-line method with no salvage value. The following amounts for new equipment purchases are planned in the coming quarter: January, $38,400; February, $93,600; and March, $24,000. This equipment will be depreciated under the straight-line method over eight years with no salvage value. A full month’s depreciation is taken for the month in which equipment is purchased.

g. The company plans to buy land at the end of March at a cost of $140,000, which will be paid with cash on the last day of the month.

h. The company has a working arrangement with its bank to obtain additional loans as needed. The interest rate is 12% per year, and interest is paid at each month-end based on the beginning balance. Partial or full payments on these loans can be made on the last day of the month. The company has agreed to maintain a minimum ending cash balance of $42,000 at the end of each month.

i. The income tax rate for the company is 43%. Income taxes on the first quarter’s income will not be paid until April 15.

Required: Prepare a master budget for each of the first three months of 2020; include the following component budgets.

1. Monthly sales budgets.

2. Monthly merchandise purchases budgets.

3. Monthly selling expense budgets.

4. Monthly general and administrative expense budgets.

5. Monthly capital expenditures budgets.

6. Monthly cash budgets.

7. Budgeted income statement for the entire first quarter (not for each month).
8. Budgeted balance sheet as of March 31, 2020.

P23.7  

(LO 2, 3, 4 ) (SCF—Direct and Indirect Methods from Comparative Financial Statements) Chapman Company, a major retailer of bicycles and accessories, operates several stores and is a publicly traded company. The comparative balance sheet and income statement for Chapman as of May 31, 2020, are as follows. The company is preparing its statement of cash flows.

The following is additional information concerning Chapman's transactions during the year ended May 31, 2020.

• 1.All sales during the year were made on account.
• 2.All merchandise was purchased on account, comprising the total accounts payable account.
• 3.Plant assets costing $98,000 were purchased by paying $28,000 in cash and issuing 7,000 shares of stock.
• 4.The “other expenses” are related to prepaid items.
• 5.All income taxes incurred during the year were paid during the year.
• 6.In order to supplement its cash, Chapman issued 2,000 shares of common stock at par value.
• 7.Cash dividends of $105,000 were declared and paid at the end of the fiscal year.

Instructions

a.  

Compare and contrast the direct method and the indirect method for reporting cash flows from operating activities.

c.  

Using the indirect method, calculate only the net cash flow from operating activities for Chapman Company for the year ended May 31, 2020.

Please help with A & C