At Exodus Inc., 40,000 units are produced and 30,000 units are sold for a total of $720,000 in the first year of operations, resulting in operating income of $240,000. Fixed manufacturing costs are $120,000 and administrative costs are $80,000. Given this, the cost of the ending finished goods inventory under the absorption costing approach is

3.        

(i) Explain the four types of utility (value) added by marketing to move goods from producers to consumers.

(ii)Discuss the logical progression from the first to the last step of the marketing process.

(iii) Explain the concept of target or bull's eye marketing especially for small business.

In May 2001, the Securities and Exchange Commission sued the former top executives at Sunbeam, charging the group with financial reporting fraud that allegedly cost investors billions in losses. Sunbeam Corporation is a recognized designer, manufacturer, and marketer of household and leisure products, including Coleman, Eastpak, First Alert, Grillmaster, Mixmaster, Mr. Coffee, Oster, Powermate, and Campingaz. In the mid-1990s, Sunbeam needed help: its profits had declined by over 80% percent, and in 1996, its stock price was down over 50% from its high. To the rescue: Albert Dunlap, also known as “Chainsaw Al” based on his reputation as a ruthless executive known for his ability to restructure and turn around troubled companies, largely by eliminating jobs. The strategy appeared to work. In 1997, Sunbeam’s revenues had risen by 18 percent. However, in April 1998, the brokerage firm of Paine Webber downgraded Sunbeam’s stock recommendation. Why the downgrade? Paine Webber had noticed unusually high accounts receivable, massive increases in sales of electric blankets in the third quarter 1997, which usually sell best in the fourth quarter, as well as unusually high sales of barbeque grills for the fourth quarter. Soon after, Sunbeam announced a first quarter loss of $44.6 million, and Sunbeam’s stock price fell 25 percent. It eventually came to light that Dunlap and Sunbeam had been using a “bill-and-hold” strategy with retail buyers. This involved selling products at large discounts to retailers before they normally would buy and then holding the products in third-party warehouses, with delivery at a later date. Many felt Sunbeam had deceived shareholders by artificially inflating earnings and the company’s stock price. A class-action lawsuit followed, alleging that Sunbeam and Dunlap violated federal securities laws, suggesting the motivation to inflate the earnings and stock price was to allow Sunbeam to complete hundreds of millions of dollars of debt financing in order to complete some ongoing mergers. Shareholders alleged damages when Sunbeam’s subsequent earnings decline caused a huge drop in the stock price. Required: How might Sunbeam’s 1997 “bill-and-hold” strategy have contributed to artificially high earnings in 1997? How would the strategy have led to the unusually high accounts receivable Paine Webber noticed? How might Sunbeam’s 1997 “bill-and-hold” strategy have contributed to a 1998 earnings decline? How does earnings management of this type affect earnings quality? In a 5–7 double-spaced, typed paper, provide complete answers to the questions at the end of the case, fully explaining your answer with cited support. In addition, discuss the ethical issues that surround the parties involved and their actions. Please note the expectation: this assignment is a paper, not simple replies to the case questions. The submitted paper should include an introduction, body, conclusion, and references page. APA style and formatting should be applied to citations and references.

Romeo Lindo, the management accountant at Woods Household Supplies, is in the process of planning the company’s cash needs for the last quarter of 2016. Extracts from the sales and purchases budgets are as follows:

Month 2016 Cash Sales Sales On Account Purchases On Account

August   $71,000   $520,000 $420,000

September $55,500 $640,000 $400,000

October $38,400 $760,000 $520,000

November $36,500 $680,000   $440,000

December $56,750   $850,000 $540,000

i) An analysis of the records shows that trade receivables (accounts receivable) are settled according to the following credit pattern, in accordance with the credit terms 4/30, n90: 50% in the month of sale 40% in the first month following the sale 10% in the second month following the sale

ii) Accounts payable are settled as follows, in accordance with the credit terms 5/30, n60: 75% in the month in which the inventory is purchased 25% in the following month

iii) In the month of November, an old motor vehicle, with net book value of $95,000, will be sold for cash to an employee at a gain of $45,000. The employee will be allowed to pay a deposit equal to 50% of the amount in November and the balance will be settled in two equal amounts in December 2016 & January 2017

instrument purchased by Woods Household Supplies with a face value of $500,000 will mature on October 20, 2016. In order to meet the financial obligations of the business, management has decided to liquidate the investment upon maturity.

On that date quarterly interest computed at a rate of 6% per annum is also expected to be collected. Discussion Question _Budgets Page 2

vi) The manager of Woods Household Supplies has negotiated with a tenant for rental of storage space to him beginning October 2016. The rental is $864,000 per annum. The first month’s rent along with one month’s safety deposit will be collected from the tenant on October 1. Thereafter, the monthly rental in expected to be received at the beginning of each month.

vii) Fixed operating expenses which accrue evenly throughout the year, are estimated to be $2,016,000 per annum, and are settled monthly. Monthly depreciation expenses of non-current assets of $56,000 are included in these costs.

viii) Other operating expenses are expected to be $168,000 per quarter and are settled monthly.

ix) Wages and salaries are expected to be $2,916,000 per annum and will be paid monthly.

x) At the recently concluded negotiations between management and the union representing the workers it was agreed that Woods Household Supplies should make retroactive payments in the amount of $1,140,000 to employees. The payment is being settled in four equal tranches. The third payment becomes due and payable in October of 2016.

xi) The cash balance on September 30, 2016 is expected to be an overdraft of $175,000. Required:

(a) Prepare a schedule of budgeted cash collections for sales on account for each of the months October to December 2016

(b) Prepare a schedule of expected cash disbursements for purchases on account for the quarter to December 31, 2016.

(c) Prepare a cash budget, with a total column, for the quarter ending December 31, 2016, showing the receipts & payments for each month.

Open a terminal:
a) type the command ps –ef | less to view the first few processes running on the system. Which process has the ID of 1?
b) What character do most processes have in the terminal column? What does this indicate?
c) What user started the most of these processes?
d) Which parent process started the most processes?
e) Type ps –el | less. What character is in the state column for most processes? What does this indicate?
f) What range of numbers do you see in the Nice (NI) column?
g) Type ps –el | grep Z. Do you have any zombie processes indicated in the state column?
h) What does the ps- ax command do?
3) Describe what the init daemon does

LIFO Perpetual Inventory

The beginning inventory at Midnight Supplies and data on purchases and sales for a three-month period ending March 31 are as follows:

1. Record the inventory, purchases, and cost of goods sold data in a perpetual inventory record similar to the one illustrated in Exhibit 4, using the last-in, first-out method. Under LIFO, if units are in inventory at two different costs, enter the units with the HIGHER unit cost first in the Cost of Goods Sold Unit Cost column and LOWER unit cost first in the Inventory Unit Cost column. Round unit cost to two decimal places, if necessary.

Assume that the equations below represent a closed economy.

Hints:

Y_D: Disposable Income

Y = C + I + G + NX is for part a): so, Y = 80 + MPC (Y_D) + I + G

C = 80 + 0.6(Y_D) Y_D = Y - T

I = 1000 T = 400

NX = (X – Im) = 0 G = 500

1. Solve for:

• Equilibrium GDP (Y)

• Disposable Income (Y_D)

• Consumption Spending (C)

• Private Saving

• Public Saving

• The multiplier

2. Verify that, in equilibrium total saving equals investment.

3. Suppose that the government wishes to increase equilibrium GDP by 100.

• What change in government spending is required?

• If government spending cannot change, what change in taxes is required?

Differentiate between deficit and debt, identify some concerns surrounding deficit and debt in popular media at the national level. Discuss if these particular concerns are or are not the major issues about which we should worry.
Many economists believe that deficit spending will reduce the national income in the long run. Yet, popular fiscal policy theory argues that deficit spending is what should be used to reduce the impact of a recession or business slowdown in the short run. Are these theories contradicting? Do we use different policies to stabilize the economy in the short and long run?
If Keynesian economists recommend deficit spending as expansionary, does it stand to reason that a surplus budget would be recessionary or contractionary? What then is the likely outcome of paying down the federal debt?

Assume that a hypothetical economy with an MPC of 0.8 is experiencing severe recession.

Instructions: In part a, round your answers to 2 decimal places. Enter your answers as positive numbers. In part b, enter your answers as whole numbers.

a. By how much would government spending have to rise to shift the aggregate demand curve rightward by $30 billion?

How large a tax cut would be needed to achieve the same increase in aggregate demand?

b. Determine one possible combination of government spending increases and tax increases that would accomplish the same goal without changing the amount of outstanding debt (i.e., maintaining the budget balance at its current value).

increase government spending by ____ billion

increase taxes by ____ billion