Pargo Company is preparing its master budget for 2017. Relevant data pertaining to its sales, production, and direct materials budgets are as follows.

Sales. Sales for the year are expected to total 1,900,000 units. Quarterly sales are 22%, 26%, 27%, and 25%, respectively. The sales price is expected to be $41 per unit for the first three quarters and $44 per unit beginning in the fourth quarter. Sales in the first quarter of 2018 are expected to be 15% higher than the budgeted sales for the first quarter of 2017.

Production. Management desires to maintain the ending finished goods inventories at 20% of the next quarter’s budgeted sales volume.

Direct materials. Each unit requires 2 pounds of raw materials at a cost of $10 per pound. Management desires to maintain raw materials inventories at 10% of the next quarter’s production requirements. Assume the production requirements for first quarter of 2018 are 495,000 pounds.

Prepare the sales, production, and direct materials budgets by quarters for 2017.

1. Consider households’ demand for chicken. For each of the events listed below, state and explain the likely effect on the demand for chicken.
   1. A medical study reports that eating chicken reduces the likelihood of suffering from particular types of heart problems.
   2. Average household income increases.
   3. A widespread disease leading to an increase in the price of beef

2. Consider the world supply of cocoa beans, the main input in the production of chocolate. For each of the events listed below state and explain the likely effect on the supply of cocoa beans
   1. Wages for farm labor in cocoa-growing regions rises.
   2. Farmers in various parts of the world see profits being earned by cocoa farmers and choose to enter this industry.
   3. A dramatic rise in the world price of coffee beans. Assume that farmers growing cocoa beans can easily grow coffee bean instead.

3. The following supply and demand schedules describe a hypothetical Canadian market for potash.

1. What is the equilibrium price of potash?
2. How much potash would actually be purchased if the price were $280 per tonne?
3. How much potash would actually be sold if the price were $360 per tonne?
4. At a price of $280 per tonne, is there excess supply or demand? If so, how much?
5. At a price of $360 per tonne, is there excess supply or demand? If so, how much?

4. The demand and supply schedules for potato chips are provided in the table below:

1. Draw a graph of the potato chip market showing the market demand curve (D0) and the market supply curve (S0). Plot the two end points to draw this curve and denote the equilibrium price and quantity as point A.
2. If the price is 60 cents a bag, is there a shortage or a surplus, and how does the price adjust?

A new flavour is available, and it increases the quantity of potato chips that people want to buy by 30 million bags per week at each price, how does the demand of potato chips change? Show the new demand curve on the graph you constructed in part a and label the new demand curve as D1.

3. What will be the new equilibrium price and quantity of potato chips after the introduction of the new flavour? Denote the equilibrium price and quantity as point B on your graph.

If a virus destroys potato crops and the quantity of potato chips produced decreases by 40 million bags a week at each price, how does the supply of potato chips change? Show the new supply curve on the graph you constructed in part a and label the new supply curve as S2.

4. What will be the new equilibrium price and quantity of potato chips with the unfortunate spread of the virus? Denote the equilibrium price and quantity as point C on your graph.
5. If the independent events of the introduction of the new flavour and the unfortunate spread of the virus happen to occur concurrently, what will be the equilibrium price and quantity? Denote this equilibrium as point D on your graph.

5. Find the equilibrium price and quantity for each of the following pairs of demand and supply functions and accurately plot the equilibrium, x intercept, and y intercept.

a.     Qd = 10 – 2p                                            Qs = 5 + 3p

b.     Qd = 1270 – 10p                                     Qs = 1000 + 20p

c.     Qd = 100 – p/4                                        Qs = 40 + p/4

d.     Qd = 6000 – p/5                                      Qs = 4000 + 4p/5

e.     Qd = 10,000 – 100p                               Qs = 100p

Mr. Wong buys gold from gold mines and resells it in the retail market in Country A. Before the gold is sold in the retail market, Mr. Wong needs to store the gold in a warehouse and the storage cost is $10 per kg of gold per day. For examples, if Mr. Wong buys 1kg of gold on 22 April 2020 and sells it on the same day, Mr. Wong has to pay a storage cost of $10. If Mr. Wong buys 1kg of gold on 22 April 2020 and sells it on the next day, Mr. Wong has to pay a storage cost of $10 x 2 = $20. There is no fixed cost in Mr. Wong’s gold business.

Mr. Wong is the sole retailer of gold in Country A and he would like to maximize the profit of his business.

The market demand for gold is Q^d = 3000-75P and

The corresponding marginal revenue is MR = 40 – 2Q/75,

where Q^d is the quantity demanded for gold (kg/day) and P is the price of gold per kg.

For instance, when P = 20, Q^d = 3000-75(20) = 1500 and MR = 40-2(1500)/75 = 0.

(i) Suppose that Mr. Wong buys gold at a price of $10 per kg. What should be the price of gold set by Mr. Wong in the retail market and what is the quantity of gold sold in the retail market? What is the profit of Mr. Wong’s business?      

(ii) Suppose that the government of Country A requires Mr. Wong to pay for a licensing fee for operating his gold business. After paying for a licensing fee of $2,000 per day, Mr. Wong can sell whatever amount of gold in the retail market in Country A. Briefly discuss how this licensing fee may affect your answers in (i).

(iii) Now, Mr. Wong does not need to pay any licensing fee. Yet, because of a logistical problem, gold purchased today can only be sold on the next day. Briefly discuss how this logistical problem will affect your answers in (i).   

(iv) Now, Mr. Wong does not need to pay any license fee and there is no logistical problem. On 22 April 2020, after Mr. Wong purchased 750kg of gold at a price of $10/kg, the government of Country A announced that the people of Country A cannot buy gold anymore. On the same day, a foreign businessman contacted Mr. Wong suggesting to buy 750kg of gold from him at a price of -$5 (minus $5 per kg). This is the only offer to Mr. Wong on that day. If you were Mr. Wong, will you accept this offer and sell your gold at a negative price?  

(v) “A futures contract for U.S. crude (oil) prices dropped more than 100% and turned negative for the first time in history on Monday, showing just how much demand has collapsed due to the coronavirus pandemic (CNBC April 19, 2020)”. With reference to your answer in (iv), briefly explain why crude oil price could be negative.

Part A

Stapular Garment Enterprise (SGE) is a retailer operating in Kulim, Kedah. SGE uses the perpetual inventory method. Assume there are no credit transactions; all amounts are settled in cash. You are provided with the following information for SGE, for the month of January 2020.  

January 1 Opening inventories 160 units @ RM20.00

January 2 Purchase 100 units @ RM22.00

January 6 Sale 180 units @ RM40.00

January 9 Purchase 75 units @ RM24.00

January 10 Sales 50 units @ RM45.00

January 23 Purchase 100 units @ RM25.00

January 30 Sale 130 units @ RM48.00

Required:

Determine the cost of goods sold and the ending inventory using;

1) FIFO (First in, first out)

2) LIFO (Last in, first out)

Part B

The comparative balance sheets for Subutay Company Sdn. Bhd. appear below:

Subutay Company Sdn. Bhd.

Comparative Balance Sheet

2019 2018

Assets

Cash RM38,000 RM13,000

Account receivable 18,000 14,000

Inventory 25,000 15,000

Prepaid insurance 7,000 9,000

Stock investments 0 18,000

Equipment 60,000 30,000

Accumulated depreciation

Equipment (18,000) (14,000)

Total Assets 130,000 85,000

Liabilities and Stockholder's equity

Account payable 25,000 7,000

Bonds payable 37,000 45,000

Common stock 40,000 23,000

Retained earnings 28,000 10,000

Total liabilities and  

stockholder's equity 130,000 85,000

Additional information:

1. Net income for the year ending December 31, 2019, was RM30,000. 2. Cash dividends of RM12,000 were declared and paid during the year. 3. Stock investments that had a book value of RM18,000 were sold for RM13,000. 4. Sales for 2019 are RM130,000.

Required:

Prepare a statement of cash flows for 2019 using the indirect method

Enter any number in the edit fields and then click Check Answer.

hudson Partners provides management consulting services to government and corporate clients. has two support departments—administrative services​ (AS) and information systems ​(IS)—and two operating departments—government consulting​ (GOVT) and corporate consulting​ (CORP). For the first quarter of 2017​,

Hudson's cost records indicate the​ following:

Requirement 1a. Allocate the two support​ departments' costs to the two operating departments using the direct method. ​(Do not round intermediary calculations and round your final answers to the nearest whole dollar. Use parentheses or a minus sign when decreasing departments by allocating costs. Enter a​ "0" for any zero​ balances.)

Enter any number in the edit fields and then click Check Answer.

.requirments

-Allocate the two support​ departments' costs to the two operating departments using the following​ methods:

Direct method

​Step-down method​ (Allocate AS​ first)

​Step-down method​ (Allocate IS​ first)

-Compare and explain differences in the​ support-department costs allocated to each operating department.

3.What approaches might be used to decide the sequence in which to allocate support departments when using the​ step-down method?

code in C

Step 1

• Write a program that will read in a list of addresses (100 maximum) from a file.
• The program should read records from a file until an EOF is found.
• The program must read one character at a time from the file using fgetc.

For example: chrLetter = fgetc( pfilInput );

• No partial addresses/records will be given.
• The format of the addresses is: RecordID, Full Name, Street, City, State, ZipCode

Step 2

• Store the addresses in an array of structures.
• Use the typedef below
• You will have to parse the input lines to separate the fields.
• You will have to separate full name into first, middle and last name.
• Trim all leading and trailing whitespace for EACH field.

typedef struct

{

      long lngRecordID;

      char strFirstName[ 50 ];

      char strMiddleName[ 50 ];

      char strLastName[ 50 ];

      char strStreet[ 100 ];

      char strCity[ 50 ];

      char strState[ 50 ];

      char strZipCode[ 50 ];

} udtAddressType;

Step 3

• Call a subroutine from main and pass the array of structures as a parameter. In the subroutine, load all the addresses from the file into the array of structures.

Step 4

• Call a subroutine from main and pass the array of structures as a parameter. In the subroutine, print out all the addresses. Make it look pretty. Don’t print out blank records. For example:

------------------------------------------------------------

Customer #1

            First Name:          Luke

            Middle Name:      

            Last Name:          Skywalker

            Address:              123 Elm Street

            City:                    Corusant

            State:                  Ohio

            Zip Code:             45202

------------------------------------------------------------

Customer #2

…

Extra Credit

• After you read in the addresses call a subroutine to sort the addresses alphabetically by last name, first name. Try the quick sort in the STL (standard template library).

Extra Extra Credit

• Eliminate any duplicates addresses (just check street and zip code).

Short Case: Luna's New Reality

Meet Luna. Luna recently moved in with her daughter and son-in-law. She was married for 50 years to her husband, Robert. They raised one daughter, Alma. They lived comfortably in a small mobile home in northern rural Pennsylvania. Unfortunately, last year, Robert suffered an unexpected fatal heart attack. Luna slowly slipped into depression and it became apparent that she was not able to maintain their home nor continue to care for herself.

Alma would travel from the city to her mother's house at lunch and after work, preparing meals, assisting her with her insulin injections (Luna is type 2 diabetic), assisting her with her ADLs. Alma became increasingly distressed when she would return in the evening only to find her mother in the same chair with her lunch untouched on the table. Alma and her husband, Charles, knew something had to be done and agreed that the best solution was to have Luna come live with them. Both Alma and Charles worked full-time jobs so they knew it would not be easy, however they had promised Robert that if anything ever happened to him, they would care for Luna. Luna, like many older adults of her generation, fear the possibility of being placed in a "nursing home."

Alma and Charles approached Luna about moving in with them. At first, Luna was resistant to the idea, she did not want to leave her home where she had raised her family and had so many fond memories. However, after repeated requests, Luna agreed to sell the property, making a modest profit which covered her move and several outstanding debts. Luna relied on Social Security to survive.

The transition went smoothly. Luna was appreciative of how attentive Alma and Charles were to her needs. Every day before headed to work, Alma would make her mother her coffee and toast and ensure her lunch was ready to go in the refrigerator. Luna understands her family needs to work and they are doing the best that they can; however she is lonely, especially during the day and does not "feel like" eating, so often the lunch will go untouched.

Alma and Charles tried to spend more time with Luna, engaging in various activities and taking vacation days to help her though what they thought was an adjustment period. They also sought out professional assistance for Luna from a counselor. Their efforts, while appreciated, only made Luna feel guilty that she was "imposing" on their time.

Alma and Charles were at a loss. What could they do?

Initial Discussion Reply

Using the information in the textbook and our lesson, as well as your own knowledge and experience, respond to the following questions:

1. What HCBS options are available to assist Alma and Charles in meeting Luna's needs?

2. What option do you think is the best? Does she meet the requirements?

3. What are the benefits of the selected option to Luna? Are there benefits to Alma and Charles? Explain.

WHO WILL STAFF UP THE CHINA OPERATIONS?

Your international company headquartered in New Jersey is sending an expatriate to China for a three-year assignment to staff up and run a new branch of its industrial products business. The main Chinese customers are using the products in their Middle Eastern and North African petroleum operations. You have extensive overseas experience and presently serve as VP, Human Resources. You chair the selection committee. There were 12 internal people interested in the position, and your committee has narrowed this to 3 final candidates, all of whom want this assignment. Here are the candidates: Tom is a mid-level finance manager with stellar performance reviews. He has no foreign experience and would like to develop his career in this direction. He is single, has an MBA, and has been out of school for 20 years. His background is in finance at the undergrad level, which he studied at Ohio State University, only 50 miles from his hometown. He is involved in the local Council on Foreign Relations and is an accomplished athlete. Firdaus is a deputy VP of HR at corporate. Her family emigrated from Yemen to Chicago when she was in grade school, and she speaks, reads, and writes Arabic, both classical and the Yemeni dialect. She is married, with two children. Her husband George is a professor of history and does not speak Arabic. She has a PhD in engineering, joined the company on the operations side, and has made the midcareer transition to HR successfully. She finished her PhD at the University of London in the UK before she began with the company and is now early midcareer. Her performance reviews are stellar. She encountered an incident at HQ several years ago when there was a discussion about her wearing a headscarf, but this was resolved without her changing her practice. She is well known and well liked throughout HQ. Her husband is ready to take a leave of absence for three years to accompany her.

Gunther is VP of the German-based EU company. His functional background is accounting, and he is credited with the success of the company in the EU. He built the business from a small operation in Frankfurt to the EU sector leader in only seven years. He speaks German and English and is known for being well organized and “button-upped.” His work is timely, accurate, and detailed. Gunther’s boss, the president of international, was a bit surprised that Gunther expressed interest in this position, since it is perceived as junior to the position he has now, although it would have an equivalent title on paper. Gunther has an undergraduate degree in anthropology and took graduate-level accounting courses earlier in his career. The company would like someone who could get the operation up and running, stay for three years, and then transfer the position to a local hire whom they would have developed for the responsibility.

1. Drawing on the cultural dimensions that we have reviewed, along with your business knowledge, whom would you recommend for the position?

2. What would be your reasoning for this choice?

3. Whom would you suggest for a backup candidate, if the first selection declined the position?