Map071 Shop specializes in producing and selling pouch bags. Currently, there is only one type of pouch bag being produced and sold by the shop, namely Baby On. The newly designed pouch bag is carefully produced by the business owner, Ms. Meisa. The materials are specially purchased from the best supplier in town and the processes are followed under strict quality control. The selling price for Baby On is RM42 per unit.

The following information is gathered for the purpose of preparing relevant budgets for the third quarter of 2020.   

(i)  The budgeted sales quantity for the quarter are shown below:

(ii) The pencil case will be using one type of direct material, which is the heavyweight strecthy lycra fabric. Each unit of Baby On will require 0.4 meter of lycra fabric. The cost of the fabric is estimated to be RM10 per meter.

(iii)  Every unit of Baby On will need 4 hours of direct labour hour and the rate for the direct labour is set to be at RM9 per hour.

(iv)  It is estimated that budgeted stock of finished goods are 70 units of Baby On at the beginning of July 2020. Additionally, the company also wishes to maintain monthly closing inventories of the pouch bags at 10 units lower than those monthly opening inventories.

(v)  In term of direct materials, the shop plans to keep opening inventories in July 2020 amounting to 20 meter of lycra fabric. At the end of every month, the company intends to maintain 3 meter less of lycra fabric as compared to the opening inventories.

Required:

Prepare the following budgets for the month of July, August and September 2020.

(a)      Sales budget.

(b)      Production budget.

(c)     Raw materials usage and raw material purchased.

(d)     Direct labour budget.

(pls show calculation methhod)

Electronics Inc. buys and sells photocopy equipment that are used in businesses across Ontario. The company follow IFRS. Unit selling prices range from $10,000 to $100,000.

• Electronic Inc. delivers the photocopy equipment on October 15th, 2020, and completes the installation of the photocopy equipment on November 1^st, 2020.
• On December 31^st Centennial College pays for 2 months of maintenance services. The following December 31^st Centennial College pays for 10 months of maintenance services.

On November 15^th Centennial College informs Electronic Inc. that they will be not be able to pay their account that is due. The two parties enter into an agreement that the account will be converted into a non-interest bearing promissory note to be repaid in one year from now. The maturity value of the note is $67,098. Centennial College borrows fund at a rate of 6%. Electronic Inc. has various loans at 5% interest. The company’s year end is December 31^st.

1. List the performance obligations?
2. Explain when the revenue should be recognized for each performance obligation under IFRS. Support your answer by explaining why it should be recognized at the time you selected.
3. Prepare the journal entries for 2020 and 2021. If there is no entry be sure to state no entry. Hint remember to allocate the revenue among the different performance obligations and then use this information when you prepare the journal entries.
4. If the company followed ASPE when should the revenue be recognized for the sale of the photocopy system and why? Be sure to list the criteria and apply it to the question. Hint use RCMP for criteria.
5. Peer evaluation

Microsoft has low efficiency ratios in comparison to the industry standards. What does this tell us about the company? What are some reasons their numbers may be low?

What does the Altman Z score tell us with respect to company financial distress? How should we use such a tool as managers? (300 words minimum)

Consider the following case study: Clean Planet is a private business based in Victoria specialising in commercial cleaning supplies and business support products for organisational clients. Only a few computerized operations are in the business. In an effort to become more efficient and profitable, the vice president, Julia Thompson, has hired a systems analyst, Robert Hanover. Julia and Robert have made progress in the development of a strategic plan for Clean Planet. Robert is anxious to define the requirements for the new system. He has gathered more information and has created the following organization chart for Clean Planet. Robert: Julia, it’s time to start moving on the system investigation. The mission statement is finalized and strategic planning is well underway. I can see that the directors are beginning to think about how their departments can benefit from better information management. Julia: You’re right! Andrew McClean found out that we lost a big order the other day because the customer was able to get the estimate much more quickly from another company because of their online presence. He’s wondering just how many sales we are losing because of timeliness issues. I had Anna’s group gather numbers for the directors about how many times our profit margin has been reduced because of human error somewhere along the order process. We are profitable but could be more so by reducing error and becoming more competitive with timely information to our potential customers. Robert: Andrew’s area of sales is a logical place to start the investigation. I need to interview sales and customer service representatives to get an idea of the requirements for the new information system. What kind of information will we include? What do we want to get out? What processes need to be managed? What are our business needs? Charles Edwards President Julia Edwards Vice President Andrew McClean Director of Sales Anna McNally Director of Finance Martha Seymour Director of Operations Dennis Martin Shipping/Receiving Manager George Thompson Warehouse Manager Sales Rep (6) Accounting/Billing Clerk (2) Customer Service Rep (3) Julia: This will take some time, and a lot of information needs to be gathered. You should make sure you spend some time with the accounting clerks too because they fill in for customer service representatives. Robert: I’m ready to get started! Answer the following questions: a. Develop a fact-finding plan including interviews, documentation review, observation, questionnaires, sampling, and research. b. Review the organizational model above and list the individuals you would like to interview. Prepare a list of objectives for each of the interviews you will conduct. c. Prepare a list of specific questions for each individual you will interview.

A manufacturer of fabricated metal products has acquired a new plasma table for $37,000. It is projected that the acquisition of this equipment will increase revenue by $10,000 per year. Operating costs for the machine will average $2,600 per year. The machine will be depreciated using the MACRS method, with a recovery period of 7 years. The company uses an after-tax MARR rate of 10% and has an effective tax rate of 30%.

2. Now, suppose that the duration of the project is six years and that an estimate of the value of the equipment cannot be obtained from the marketplace.

2.2. Find the before-tax PW, IRR and discounted payback period (before-tax MARR = 10%). Can the acquisition be economically justified? Why or why not?

Fesler Inc. acquired all of the outstanding common stock of Pickett Company on January 1, 2017. Annual amortization of $22,000 resulted from this transaction. On the date of the acquisition, Fesler reported retained earnings of $520,000 while Pickett reported a $240,000 balance for retained earnings. Fesler reported net income of $100,000 in 2017 and $68,000 in 2018, and paid dividends of $25,000 in dividends each year. Pickett reported net income of $24,000 in 2017 and $36,000 in 2018, and paid dividends of $10,000 in dividends each year.

If the parent’s net income reflected use of the initial value method, what were the consolidated retained earnings on December 31, 2018?

Pesto Company posesses 80 percent of Salerno Company's outstanding voting stock. Pesto uses the initial value method to account for this investment. On January 1, 2014, Pesto sold 9 percent bonds payable with a 10 million dollar face value (maturing in 20 years) on the open market at a premium of 600,000. On January 1 2017, Salerno acquired 40 percent of these same bonds from an outside party at 96.6 percent of face value. Both companies use the straight line method of amortization. For 2018 consolidation what adjustment should be made to Pesto's beginning Retained earnings as a result of this bond acquisition? Please show step by step calculations

Your company, DrugsRUs, has developed a generic angiotensin-converting-enzyme inhibitor, Vasotec, as a pharmaceutical drug used primarily for the treatment of hypertension and congestive heart failure. You are leading the regulatory strategy team and have been asked to describe the path to approval comparing introduction in the US versus Brasil.

Please discuss the following:

(1) Which agency or agencies will be responsible for approving/reviewing your Vastec drug: (a) before commercial introduction, and (b) after approval for commercialization/sale within the US., and

(2) Compare known issues your company will need to consider to market your generic drug is Brasil.