In 2019, Cindy, who is single, has salary income of 32,000 and interest income of 1,500. She makes a contribution to an individual retirement account (IRA) in the amount of $6,000. Her itemized deductions for 2019 are $6,500. Assuming she wishes to minimize her tax liability, which of the following is correct?
a. Her AGI is $27,500 and her taxable income is $21,000 b. Her AGI is $33,500 and her taxable income is $21,000 c. Her AGI is $27,500 and her taxable income is $15,300 d. Her AGI is $33,500 and her taxable income is $15,300
In: Accounting
The accompanying data represent the miles per gallon of a random sample of cars with a three-cylinder, 1.0 liter engine. (a) Compute the z-score corresponding to the individual who obtained 38.4 miles per gallon. Interpret this result. (b) Determine the quartiles. (c) Compute and interpret the interquartile range, IQR. (d) Determine the lower and upper fences. Are there any outliers? 32.5; 35.9; 37.6; 38.6; 40.4; 42.5; 34.0; 36.2; 37.8; 38.9; 40.6; 42.6; 34.7; 37.3; 38.1; 39.4 ;41.3; 43.4; 35.6; 37.4; 38.4; 39.7; 41.8; 49.1
In: Statistics and Probability
Jennifer Fonstad and Aspect Ventures compete with other firms for the right to invest in promising companies. They have experience, wisdom, and networks that they invest along with money in each venture. If Aspect becomes known as a greater partner for entrepreneurs, then they will attract entrepreneurs who value the services they can provide. They may even get more favorable deal terms than another firm that can’t be helpful.
How would you assess a possible venture capital investor? How would you compare different firms, or decide which firms and individual partners to target for your venture?
In: Operations Management
The accompanying data represent the miles per gallon of a random sample of cars with a three-cylinder, 1.0 liter engine.
|
(a) |
Compute the z-score corresponding to the individual who
obtained
39.839.8 miles per gallon. Interpret this result. |
|
(b) |
Determine the quartiles. |
|
(c) |
Compute and interpret the interquartile range, IQR. |
|
(d) |
Determine the lower and upper fences. Are there any outliers? |
32.4
34.1
34.5
35.7
36.1
36.3
37.5
37.7
37.9
38.1
38.3
38.5
38.7
39.1
39.5
39.8
39.9
40.6
41.3
41.6
42.3
42.7
43.8
49.0
In: Math
The accompanying data represent the miles per gallon of a random sample of cars with a three-cylinder, 1.0 liter engine. (a) Compute the z-score corresponding to the individual who obtained 32.7 miles per gallon. Interpret this result. (b) Determine the quartiles. (c) Compute and interpret the interquartile range, IQR. (d) Determine the lower and upper fences. Are there any outliers?
|
32.7 |
35.9 |
38.0 |
38.7 |
40.2 |
42.2 |
|
|
34.4 |
36.2 |
38.1 |
38.9 |
40.7 |
42.7 |
|
|
34.6 |
37.5 |
38.2 |
39.5 |
41.5 |
43.6 |
|
|
35.2 |
37.8 |
38.5 |
39.8 |
41.6 |
48.9 |
In: Math
Warnerwoods Company uses a perpetual inventory system. It
entered into the following purchases and sales transactions for
March.
| Date | Activities | Units Acquired at Cost | Units Sold at Retail | |||||||||
| Mar. | 1 | Beginning inventory | 160 | units | @ $52.20 per unit | |||||||
| Mar. | 5 | Purchase | 255 | units | @ $57.20 per unit | |||||||
| Mar. | 9 | Sales | 320 | units | @ $87.20 per unit | |||||||
| Mar. | 18 | Purchase | 115 | units | @ $62.20 per unit | |||||||
| Mar. | 25 | Purchase | 210 | units | @ $64.20 per unit | |||||||
| Mar. | 29 | Sales | 190 | units | @ $97.20 per unit | |||||||
| Totals | 740 | units | 510 | units | ||||||||
Compute gross profit earned by the company for each of the four
costing methods. For specific identification, the March 9 sale
consisted of 95 units from beginning inventory and 225 units from
the March 5 purchase; the March 29 sale consisted of 75 units from
the March 18 purchase and 115 units from the March 25 purchase.
(Round weighted average cost per unit to two decimals and
final answers to nearest whole dollar.)
|
In: Accounting
Nuncio Consulting completed the following transactions during June
a.
Nuncio, the owner, invested $35,000 cash along with office equipment valued at $11,000 in the
new company.
b. The company purchased land valued at $ 7,500 and a building valued at $40,000. The purchase
is paid with $15,000 cash and a long-term note payable for $32,500
c.
The company purchased $500 of office supplies on credit
d. Nuncio invested his personal automobile in the company. The automobile has a value of $8,000
and is to be used exclusively in the business.
e. The company purchased $1,200 of additional office equipment on credit
f.
The company paid $1,000 cash salary to an assistant
g.
The company provided services to a client and collected $3,200 cash
h. The company paid $540 cash for this month’s utilities
i.
The company paid $500 cash to settle the payable created in transaction
c
j.
The company purchased $3,400 of new office equipment by paying $3,400 cash
k.
The company paid $1,000 cash salary to an assistant
l.
The company received $2,200 cash in partial payment on the receivable created in transaction
k
m. Nuncio withdrew $1,100 cash from the company for personal use
REQUIRED
1. Make journal entries to record the transactions above.
2. Open Ledger accounts to record the above transactions; ( use: Cash , AR, Office Supplies,
Office Equipment, Automobiles, Buildings, Land, AP, Notes Payable, Capital, Withdrawals,
Revenue Earned, Salaries Expense, and Utilities Expense)
3. Balance the Accounts and Extract a Trial Balance as of the end of June
In: Accounting
Newskool Grooves is a transnational company that develops music software used to compose music, play recordings in clubs, and produce albums. Founder and CEO Gerd Finger is, understandably, the company’s biggest fan. “I started this company from nothing, from just me, my ideas, and my computer. I love music—love playing music, love writing programs for making music, love listening to music—and the money is nice, too.” Finger says he never wanted to work for someone else, to give away his ideas and let someone else profit from them. He wanted to keep control over them, and their image. “Newskool Grooves is always ahead of the pack. In this business, if you can’t keep up, you’re out. And we are the company everyone else must keep up with. Everyone knows when they get something from us, they’re getting only the best and the newest.”
The company headquarters are in Berlin, the nerve centre for the organization, where new products are developed and the organizational strategy is established. Newskool outsources a great deal of its coding work to programmers in Bangalore, India. Its marketing efforts are increasingly based in its Toronto offices. This division of labour is at least partially based on technical expertise and cost issues. The German team excels at design and production tasks. Because most of Newskool’s customers are English speakers, the Toronto office has been the best group to write ads and market products. The Bangalore offices are filled with outstanding programmers who don’t require the very high rates of compensation you would find in German or Canadian offices. The combination of high-tech software, rapid reorganization, and outsourcing makes Newskool the very definition of a virtual organization.
Finger also makes the final decision on all hiring for the company and places a heavy emphasis on independent work styles. “Why would I want to put my company in the hands of people I can’t count on?” he asks with a laugh. “They have to believe in what we’re doing here, really understand our direction and be able to go with it. I’m not the babysitter, I’m not the school master handing out homework. School time is over. This is the real world.”
The Work Culture
Employees want to work at Newskool Grooves because it’s cutting edge. Newskool’s core market is dance musicians and DJs—people who appreciate that while relatively expensive, Newskool is a very high-quality and innovative brand. Newskool sees itself as a trendsetter, and this strategy has tended to pay off. While competitors develop similar products and therefore need to continually lower their prices to compete with one another, Newskool has kept revenues high by creating completely new products that don’t face this type of price competition.
Unfortunately, computer piracy has eroded Newskool’s ability to make money with just software-based music tools, and it has had to move into the production of hardware, such as drum machines and amplifiers that incorporate its computer technology. Making this massive market change might be challenging for some companies, but for an organization that reinvents itself every two to three years like Newskool does, the bigger fight is a constant war against stagnation and rigidity.
The organization has a very decentralized structure. With only 115 employees, the original management philosophy of allowing all employees to participate in decision making and innovation is still the lifeblood of the company’s culture. One developer notes, “At Newskool, they want you to be part of the process. If you are a person who wants to do what you’re told at work, you’re in trouble. Most times, they can’t tell you what they want you to do next—they don’t even know what comes next! That’s why they hire employees who are creative, people who can try to make the next thing happen. It’s challenging, but a lot of us think it’s very much an exciting environment.”
The Virtual Environment
Because so much of the work can be performed on computers, Finger decided early to allow employees to work outside the office. The senior management in Berlin and Toronto are both quite happy with this arrangement. Because some marketing work does require face-to-face contact, the Toronto office has weekly in-person meetings. Employees who like Newskool are happiest when they can work through the night and sleep most of the day, firing up their computers to get work done at the drop of a hat. Project discussions often happen via social networking on the company’s intranet.
The Bangalore offices have been less eager to work with the virtual model. Managers say their computer programmers find working with so little structure rather uncomfortable. They are more used to the idea of a strong leadership structure and well-defined work processes. “When I started,” says one manager, “Gerd said getting in touch with him would be no problem, getting in touch with Toronto would be no problem. We’re small, we’re family, he said. Well, it is a problem. When I call Toronto, they say to wait until their meeting day. I can’t always wait until they decide to get together. I call Gerd—he says, ‘Figure it out.’ Then when I do, he says it isn’t right and we have to start again. If he just told me in the first place, we would have done it.”
Some recent events have also shaken up the company’s usual way of doing business. Developers in the Berlin office had a major communications breakdown about their hardware DJ controller, which required many hours of discussion to resolve. It seems that people who seldom met face to face had all made progress—but had moved in opposite directions. To test and design the company’s hardware products, employees apparently need to do more than send each other code; sometimes they need to collaborate face to face. Some spirited disagreements have been voiced within the organization about how to move forward in this new environment.
At the same time, the Toronto office was experiencing challenges in its ability to execute its marketing plans. According to Marketing Director Sandra Pelham, “Now that we were producing hardware—real instruments—we finally thought, ‘All right, this is something we can work with!’ We had a whole slate of musicians and DJs and producers to contact for endorsements, but Gerd said, ‘No way.’ He didn’t want customers who only cared that a celebrity liked us. He scrapped the whole campaign. He says we’re all about creativity and doing our own thing—until we don’t want to do things his way.”
Although the organization is not without problems, there is little question Newskool has been a standout success in the computer music software industry. While many companies are failing, Newskool is using its market power to push forward the next generation of electronic music-making tools. As Finger puts it, “Once the rest of the industry has gotten together and figured out how they’re all going to cope with change, they’ll look around and see that we’re already three miles ahead of them down the road to the future.”
Question
Select one problem and describe two separate alternatives to solving this issue. indicate which organizational behaviour concept or theory and state one aspect of this case surprised you the most?
In: Operations Management
Gary Stevens and Mary James are production managers in the Consumer Electronics Division of General Electronics Company, which has several dozen plants scattered in locations throughout the world. Mary manages the plant located in Des Moines, Iowa, while Gary manages the plant in El Segundo, California. Production managers are paid a salary and get an additional bonus equal to 10% of their base salary if the entire division meets or exceeds its target profits for the year. The bonus is determined in March after the company’s annual report has been prepared and issued to stockholders.
Shortly after the beginning of the new year, Mary received a phone call from Gary that went like this:
| Gary: | How’s it going, Mary? |
| Mary: | Fine, Gary. How’s it going with you? |
| Gary: | Great! I just got the preliminary profit figures for the division for last year and we are within $62,100 of making the year’s target profits. All we have to do is pull a few strings, and we’ll be over the top! |
| Mary: | What do you mean? |
| Gary: | Well, one thing that would be easy to change is your estimate of the percentage completion of your ending work in process inventories. |
| Mary: | I don’t know if I can do that, Gary. Those percentage completion figures are supplied by Tom Winthrop, my lead supervisor, who I have always trusted to provide us with good estimates. Besides, I have already sent the percentage completion figures to corporate headquarters. |
| Gary: | You can always tell them there was a mistake. Think about it, Mary. All of us managers are doing as much as we can to pull this bonus out of the hat. You may not want the bonus check, but the rest of us sure could use it. |
The final processing department in Mary’s production facility began the year with no work in process inventory. During the year, 280,000 units were transferred in from the prior processing department and 270,000 units were completed and sold. Costs transferred in from the prior department totaled $55,720,000. No materials are added in the final processing department. A total of $19,347,500 of conversion cost was incurred in the final processing department during the year.
Required:
1. Tom Winthrop estimated that the units in ending work in process inventory in the final processing department were 25% complete with respect to the conversion costs of the final processing department. If this estimate of the percentage completion is used, what would be the cost of goods sold for the year?
2. Does Gary Stevens want the estimated percentage completion to be increased or decreased?
3. What percentage completion would result in increasing reported net operating income by $62,100 over the net operating income that would be reported if the 25% figure were used?
In: Accounting
Gary Stevens and Mary James are production managers in the Consumer Electronics Division of General Electronics Company, which has several dozen plants scattered in locations throughout the world. Mary manages the plant located in Des Moines, Iowa, while Gary manages the plant in El Segundo, California. Production managers are paid a salary and get an additional bonus equal to 10% of their base salary if the entire division meets or exceeds its target profits for the year. The bonus is determined in March after the company’s annual report has been prepared and issued to stockholders.
Shortly after the beginning of the new year, Mary received a phone call from Gary that went like this:
| Gary: | How’s it going, Mary? |
| Mary: | Fine, Gary. How’s it going with you? |
| Gary: | Great! I just got the preliminary profit figures for the division for last year and we are within $73,980 of making the year’s target profits. All we have to do is pull a few strings, and we’ll be over the top! |
| Mary: | What do you mean? |
| Gary: | Well, one thing that would be easy to change is your estimate of the percentage completion of your ending work in process inventories. |
| Mary: | I don’t know if I can do that, Gary. Those percentage completion figures are supplied by Tom Winthrop, my lead supervisor, who I have always trusted to provide us with good estimates. Besides, I have already sent the percentage completion figures to corporate headquarters. |
| Gary: | You can always tell them there was a mistake. Think about it, Mary. All of us managers are doing as much as we can to pull this bonus out of the hat. You may not want the bonus check, but the rest of us sure could use it. |
The final processing department in Mary’s production facility began the year with no work in process inventory. During the year, 290,000 units were transferred in from the prior processing department and 274,000 units were completed and sold. Costs transferred in from the prior department totaled $75,835,000. No materials are added in the final processing department. A total of $19,932,600 of conversion cost was incurred in the final processing department during the year.
Required:
1. Tom Winthrop estimated that the units in ending work in process inventory in the final processing department were 25% complete with respect to the conversion costs of the final processing department. If this estimate of the percentage completion is used, what would be the cost of goods sold for the year?
2. Does Gary Stevens want the estimated percentage completion to be increased or decreased?
3. What percentage completion would result in increasing reported net operating income by $73,980 over the net operating income that would be reported if the 25% figure were used?
In: Accounting