After two quarters of increasing levels of production, the CEO of Canadian Fabrication & Design was upset to learn that, during this time of expansion, productivity of the newly hired sheet metal workers declined with each new worker hired. Believing that the new workers were either lazy or ineffectively supervised (or possibly both), the CEO instructed the shop foreman to “crack down” on the new workers to bring their productivity levels up.

1. Explain carefully in terms of production theory why it might be that no amount of “cracking down” can increase worker productivity at CF&D.

2. Provide an alternative to cracking down as a means of increasing the productivity of the sheet metal workers.

After two quarters of increasing levels of production, the CEO of Canadian Fabrication & Design was upset to learn that, during this time of expansion, productivity of the newly hired sheet metal workers declined with each new worker hired. Believing that the new workers were either lazy or ineffectively supervised (or possibly both), the CEO instructed the shop foreman to “crack down” on the new workers to bring their productivity levels up.

a. Explain carefully in terms of production theory why it might be that no amount of “cracking down” can increase worker productivity at CF&D.
b. Provide an alternative to cracking down as a means of increasing the productivity of the sheet metal workers.

An engine manufacturer has observed failures with their product. In the last 6 years, they have experienced 2 engine failures one year, 3 engine failures in two consecutive years, 4 engine failures one year, and 5 engine failures in each of the preceding two years (two in the last month, alone).

The CEO of the engine manufacturer wants to reassure customers. He promises that in the next month, there will not be multiple engine failures (no more than 1 failure).

Assume the probability of failure is exponential.

The CEO asks you to calculate the probability that they are correct: What is the probability there will be no more than a single engine failure in the next month?

You have been recently hired by a multinational firm that manufactures airplanes parts. They are interested in investing in a new factory. However, the CEO is unsure of where they should invest. The CEO would like to either invest in a developed or a developing country and your input is valuable to his decision. Your focus will be on providing specific information on both a developed and developing country, providing that both countries have data for the last 20 years. You will need to provide support, through your analysis, for which country you think will be best for this factory to invest in. Do not pick a country that does not have data that is easily accessible.

Imagine that the United States puts in place a 45 percent tax on imports. What is the long-run impact of this tax (an import tariff) on the value of the U.S. dollar, on U.S. net exports, and U.S. GDP. Explain.

Suppose that Japanese investors suddenly decide that U.S. investments look unpromising, and unilaterally attempt to “cash out” $500 billion worth of their U.S. investments (stocks, bonds, etc). Keeping the balance of payments identity in mind, can they in fact withdraw their money from the U.S.? (And if so, how?) What is the impact on the exchange rate and on the U.S. balance of payments (i.e., on the current and capital accounts)?

On January 1, 2016, Aronsen Company acquired 80 percent of Siedel Company’s outstanding shares. Siedel had a net book value on that date of $410,000: common stock ($10 par value) of $200,000 and retained earnings of $210,000.

Aronsen paid $656,000 for this investment. The acquisition-date fair value of the 20 percent noncontrolling interest was $164,000. The excess fair value over book value associated with the acquisition was used to increase land by $350,000 and to recognize copyrights (12-year remaining life) at $60,000. Subsequent to the acquisition, Aronsen applied the initial value method to its investment account.

In the 2016–2017 period, the subsidiary’s retained earnings increased by $100,000. During 2018, Siedel earned income of $104,000 while declaring $44,000 in dividends. Also, at the beginning of 2018, Siedel issued 5,000 new shares of common stock for $50 per share to finance the expansion of its corporate facilities. Aronsen purchased none of these additional shares and therefore recorded no entry.

Prepare the appropriate 2018 consolidation entries for these two companies.

On January 1, 2016, Aronsen Company acquired 80 percent of Siedel Company’s outstanding shares. Siedel had a net book value on that date of $630,000: common stock ($14 par value) of $280,000 and retained earnings of $350,000.

Aronsen paid $640,000 for this investment. The acquisition-date fair value of the 20 percent noncontrolling interest was $160,000. The excess fair value over book value associated with the acquisition was used to increase land by $110,000 and to recognize copyrights (12-year remaining life) at $60,000. Subsequent to the acquisition, Aronsen applied the initial value method to its investment account.

In the 2016–2017 period, the subsidiary’s retained earnings increased by $180,000. During 2018, Siedel earned income of $88,000 while declaring $28,000 in dividends. Also, at the beginning of 2018, Siedel issued 5,000 new shares of common stock for $55 per share to finance the expansion of its corporate facilities. Aronsen purchased none of these additional shares and therefore recorded no entry.

Prepare the appropriate 2018 consolidation entries for these two companies.

PLEASE SHOW ALL WORKS AND STEPS HOW TO GET THE JOURNAL ENTRY NUMBERS. THANK YOU

Background Information: 1 The company started when it acquired $55,000 cash issuing common stock 2 Purchased a new industrial oven that cost $35,000 cash 3 Earned $75,000 in cash revenue 4 Paid $30,000 cash for salaries Expense 5 Adjustment for use of industrial oven. Purchased on January 2 ,2018 with a useful life of 4 years and salvage value of $4,000 Straight-line Depreciation was used of the entry on December 31,2018 a) Compete the accounting equation Goofy Company Accounting Equation Balance Sheet Income Statement Event Assets Accumulated Stockholders Equity Cash + Equipment - Depreciation = Common Stock + Retained Earnings Revenue - Expense = Net Income 1 $55,000 2 (35,000) 3 75,000 4 (30,000) 5 Total $65,000 + $- - $- = $- + $- $- - $- = $- b) What amount of depreciation expense should be reported on the 2018 income statement? c) What amount of accumulated depreciation would be reported on the 2019 Year-End Balance Sheet? Helpful Resources What Are the Main Types of Depreciation Methods? Capital Asset Depreciation - Straight-Line