Bonadio Electrical Supplies distributes electrical components to the construction industry. The company began as a local supplier 15 yrs ago and has grown rapidly to become a major competitor in the North central U.S. As the business grew and variety of components to be stocked expanded, Bonadio acquired a computer and implemented an inventory control system. Other applications such as accounts receivable, account payable, payroll, and sale analysis were gradually computerized as each function expanded. Because of its operational importance, the inventory system has been upgraded to an online system, while all the other applications are operating in batch mode. Over the years, the company has developed or acquired more than 100 application programs and maintains hundreds of files. Bonadio faces stiff competition from local suppliers throughout its marketing area. At a management meeting, the sales manager complained about the difficulty obtaining immediate, current information to respond to customer inquiries. Other managers states that they also had difficulty obtaining timely data from the system. As the result, the controller engaged a consulting firm to explore the situation. The consultant recommended installing a database management system (DBSM), and the company complied, employing Jack Gibbons as the database administrator.

At a recent management meeting, Gibbons presented an overview of the DBMS. Gibbons explained that the databases approach assumes an organizational, data oriented viewpoint as it recognizes that a centralized database represents a vital resource. Instead of being assigned to applications, information is more appropriately used and managed for the entire organization. The operating system physically moves data to and from disk storage, while the DBMS is the software program that controls the data definition library that specifies the data structures and characteristics. As the result. both the roles of the application programs and query software and the tasks of the application programers and users are simplified. Under the database approach, the data are available to all users within security guidelines.

a. Explain the basic difference between a file-oriented system and database management system.

b. Describe at least 3 advantages and at least 3 disadvantages of the database management system.

c. Describe the duties and responsibilities of Jack Gibbons, the database administrator. (CMA Adapted)

Your company received a letter from Mrs. Mirvat Amin in which she complained that the microwave she bought a month ago from your store does not work. In her complaint letter, she asked for either a new microwave or a full refund. Since the microwave has a one-year warranty, your company can meet Mrs. Amin’s request and replace the defective product.

Write an adjustment letter to Mrs. Mirvat Amin in which you inform her about the good news. The letter should be 150-400 words. It should be sent out on April 1, 2020

Mrs. Mirvat Amin’s address is: 546 Zayed Road Dubai, UAE Your company’s letterhead is RAWN Group 647 Emirates Road Dubai, UAE Your name is: Najla Fathi General Sales Manager

The following information was obtained from the accounting records and financial statements of Palmer Inc.

Additional information:

• On May 5, 2020 a capital asset with a cost of $225,000 and net book value of $90,000 was sold for $70,000.
• On September 1, 2020, Palmer issued 5% bonds for face value of $ 200,000.
• On October 15, 2020, bonds with a face value of $ 100,000 were retired for $ 110,000.
• On December 20, 2020, Palmer declared and paid cash dividends.

Required:

1. Prepare the cash flow statement, using the direct method, for Palmer for the year ended December 31, 2020.
2. Prepare the cash flows from operating activities, using the indirect method, for Palmer for the year ended December 31, 2020.

Intangibles: Balance Sheet Presentation and Income Statement Effects

Sempton Company has provided information on intangible assets as follows:

1. A patent was purchased from Lou Company for $1,230,000 on January 1, 2018. Sempton estimated the remaining useful life of the patent to be 10 years. The patent was carried in Lou's accounting records at a net book value of $980,000 when Lou sold it to Sempton.
2. During 2019, a franchise was purchased from Rink Company for $390,000. In addition, 6% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $1,900,000. Sempton estimates the useful life of the franchise to be 10 years and takes a full year's amortization in the year of purchase.
3. Sempton incurred R&D costs in 2019 as follows:
   

   Materials and equipment	$100,000
   Personnel	136,000
   Indirect costs	76,000
   	$312,000

   
   Sempton estimates that these costs will be recouped by December 31, 2020.
4. On January 1, 2019, Sempton estimates, based on new events, that the remaining life of the patent purchased on January 1, 2018, is only 5 years from January 1, 2019.

Required:

1. Prepare a schedule showing the intangibles section of Sempton's balance sheet at December 31, 2019.

2. Prepare a schedule showing the income statement effects for the year ended December 31, 2019, as a result of the previously mentioned facts.

Intangibles: Balance Sheet Presentation and Income Statement Effects

Bringle Company has provided information on intangible assets as follows:

1. A patent was purchased from Lou Company for $1,665,000 on January 1, 2018. Bringle estimated the remaining useful life of the patent to be 15 years. The patent was carried in Lou's accounting records at a net book value of $1,315,000 when Lou sold it to Bringle.
2. During 2019, a franchise was purchased from Rink Company for $590,000. In addition, 5% of revenue from the franchise must be paid to Rink. Revenue from the franchise for 2019 was $1,700,000. Bringle estimates the useful life of the franchise to be 5 years and takes a full year's amortization in the year of purchase.
3. Bringle incurred R&D costs in 2019 as follows:
   

   Materials and equipment	$126,000
   Personnel	157,000
   Indirect costs	54,000
   	$337,000

   
   Bringle estimates that these costs will be recouped by December 31, 2020.
4. On January 1, 2019, Bringle estimates, based on new events, that the remaining life of the patent purchased on January 1, 2018, is only 10 years from January 1, 2019.

Required:

1. Prepare a schedule showing the intangibles section of Bringle's balance sheet at December 31, 2019.

2. Prepare a schedule showing the income statement effects for the year ended December 31, 2019, as a result of the previously mentioned facts.

EZ Clean-Up Inc. (EZ Clean-Up or the “Company”) provides various set-up, tear-down, and clean-up services to party-planning businesses as well as various third-party customers.

The Company entered into a contract with The Function Junction LLC to be the sole provider of its services for all its events for a period of three years. The Function Junction holds weekly events, with EZ Clean-Up providing its services for every event. After the initial three-year period, the contract is renewable in one-year increments. The average customer relationship period typically lasts five years (the initial three-year term plus two one-year renewals). The Company accounts for the arrangement as a contract with a customer within the scope of ASC 606.

As an incentive to execute new customer contracts, the Company offers its sales representative a one-time $5,000 commission, which is earned and payable to the sales representative as soon as the contract is executed with the customer. No additional commission is paid to the sales representative upon renewal of the contract by the customer.

Before winning the contract, the sales representative incurred $500 in travel costs to travel to The Function Junction’s headquarters to perform a demonstration.

EZ Clean-Up incurred approximately $2,000 in external legal costs to draft the contract executed between the Company and The Function Junction.

Required:

1. Under US GAAP, how should EZ Clean-Up treat incremental costs of obtaining a contract? Please answer the same question under IFRS/IAS.

2. According to US GAAP, which costs, in this case, are incremental costs of obtaining the contract, and therefore are required to be capitalized?

3. According to US GAAP, how should EZ Clean-Up determine the appropriate amortization method, and over what period should the Company amortize any capitalized costs?

4. According to US GAAP, what disclosures should EZ Clean-Up provide in its financial statements?

EZ Clean-Up Inc. (EZ Clean-Up or the “Company”) provides various set-up, tear-down, and clean-up services to party-planning businesses as well as various third-party customers.

The Company entered into a contract with The Function Junction LLC to be the sole provider of its services for all its events for a period of three years. The Function Junction holds weekly events, with EZ Clean-Up providing its services for every event. After the initial three-year period, the contract is renewable in one-year increments. The average customer relationship period typically lasts five years (the initial three-year term plus two one-year renewals). The Company accounts for the arrangement as a contract with a customer within the scope of ASC 606.

As an incentive to execute new customer contracts, the Company offers its sales representative a one-time $5,000 commission, which is earned and payable to the sales representative as soon as the contract is executed with the customer. No additional commission is paid to the sales representative upon renewal of the contract by the customer.

Before winning the contract, the sales representative incurred $500 in travel costs to travel to The Function Junction’s headquarters to perform a demonstration.

EZ Clean-Up incurred approximately $2,000 in external legal costs to draft the contract executed between the Company and The Function Junction.

Required:

1. Under US GAAP, how should EZ Clean-Up treat incremental costs of obtaining a contract? Please answer the same question under IFRS/IAS.

2. According to US GAAP, which costs in this case are incremental costs of obtaining the contract, and therefore are required to be capitalized?

3. According to US GAAP, how should EZ Clean-Up determine the appropriate amortization method, and over what period should the Company amortize any capitalized costs?

4. According to US GAAP, what disclosures should EZ Clean-Up provide in its financial statements?

INSTRUCTIONS: READ THE FOLLOWING SITUATION AND ANSWER THE QUESTIONS ARISING FOR THE CASE ANALYSIS.

“STONYFIELD FARM GOES TO THE BLOGS”

The Stonyfield Farm story is a kind of legend. In 1983, friends and social activists Gary Hirschberg and Samuel Kaymen started with a good yogurt recipe, seven cows, and a dream. They established an organic yogurt company in Wilton, New Hampshire, to take advantage of baby boomers' growing concerns about natural foods and health, and to revitalize the dairy industry in New England. Stonyfield Farms has grown to become the third largest organic company in the world, with annual sales of more than $ 50 million in 50 states. It produces more than 18 million glasses of yogurt each month.

Stonyfield Farrn's spectacular growth is attributable in part to its ability to offer a product to a special niche market - people who value healthy food and want to protect the environment. These values ​​have become part of the "personality" of the company. Stonyfleld promises to use only natural ingredients and milk that has not been produced with antibiotics, synthetic growth hormones, or pesticides or toxic fertilizers. The company donates 10 percent of its profits each year to projects that help protect or restore the planet.

As the company expanded, management feared that it might lose touch with its loyal and committed customer base. Advertising based on traditional media was expensive and did not really help the company to "connect" with the kind of people it was trying to reach. This company prefers word-of-mouth techniques that deliver its message to customers in ways more compatible with its popular, organic, and activist-friendly image.

Stonyfield has multiple active email newsletters with more than 500,000 subscribers, and typically posts messages promoting causes that he supports on the tops of his yogurt glasses. Now she's turning to blogging to further personalize her customer relationships and reach even more people. Inspired by Howard Dean's presidential campaign and Dean's blogger tutorials, CEO Hirschberg became convinced that Stonyfield could use blogging to create a more personal relationship with consumers, different from the traditional sales relationship. "Blogs give us what we call a handshake with consumers" and "a little more access to us

Stonyfield now publishes two separate blogs on his website — Baby Babble and Bovine Bugle. At one time Stonyfield was running five blogs, but decided to withdraw three of them because they weren't attracting enough readers. Baby Babble provides a forum for Stonyfield employees and other parents of young children to meet and discuss child development and balance work with the family. Stonyfield created that blog because baby yogurts are one of its most popular product lines, and parenting blogs seem to appeal to a large number of readers. The Bovine Bugle provides reports about Jonathan's Organic Dairy Farm. Gates in Franklin, Vermont, a member of the organic cooperative that supplies milk for Stonyfield products.

This blog sparks a large number of nostalgic comments from readers who remember their childhood on a farm. As organic food grows in importance, these blogs help the company showcase the aspects that make it different from other brands and invite customers to help them in this endeavor. Stonyfield continually posts new content to each of the blogs. Readers can subscribe to any of them and automatically receive updates when available. And of course they can reply to these posts.

The benefits of blogging for Stonyfield have not yet been quantified so far, but management is confident there are real benefits. Blogs have created a positive response for the Stonyfield brand by providing readers with something that inspires them or sparks their interest -If blogs give new information to readers, inspire them to protect the environment or ask them for opinions, the administration believes that They will remember the brand when they are in front of the yogurt shelves in the supermarket or grocery store and that they will take a Stonyfleld product instead of a competitor when it is time to choose. Stonyfield has a fairly large website. Blogs offer a way to highlight some of the content on the Web that would otherwise be lost. This, too, helps drive some blog readers to buy Stonyfield products.

IV. What benefits does the introduction of an intranet and extranet bring to a company? Indicate and explain. 

INSTRUCTIONS: READ THE FOLLOWING SITUATION AND ANSWER THE QUESTIONS ARISING FOR THE CASE ANALYSIS.

“STONYFIELD FARM GOES TO THE BLOGS”

The Stonyfield Farm story is a kind of legend. In 1983, friends and social activists Gary Hirschberg and Samuel Kaymen started with a good yogurt recipe, seven cows, and a dream. They established an organic yogurt company in Wilton, New Hampshire, to take advantage of baby boomers' growing concerns about natural foods and health, and to revitalize the dairy industry in New England. Stonyfield Farms has grown to become the third largest organic company in the world, with annual sales of more than $ 50 million in 50 states. It produces more than 18 million glasses of yogurt each month.

Stonyfield Farrn's spectacular growth is attributable in part to its ability to offer a product to a special niche market - people who value healthy food and want to protect the environment. These values ​​have become part of the "personality" of the company. Stonyfleld promises to use only natural ingredients and milk that has not been produced with antibiotics, synthetic growth hormones, or pesticides or toxic fertilizers. The company donates 10 percent of its profits each year to projects that help protect or restore the planet.

As the company expanded, management feared that it might lose touch with its loyal and committed customer base. Advertising based on traditional media was expensive and did not really help the company to "connect" with the kind of people it was trying to reach. This company prefers word-of-mouth techniques that deliver its message to customers in ways more compatible with its popular, organic, and activist-friendly image.

Stonyfield has multiple active email newsletters with more than 500,000 subscribers, and typically posts messages promoting causes that he supports on the tops of his yogurt glasses. Now she's turning to blogging to further personalize her customer relationships and reach even more people. Inspired by Howard Dean's presidential campaign and Dean's blogger tutorials, CEO Hirschberg became convinced that Stonyfield could use blogging to create a more personal relationship with consumers, different from the traditional sales relationship. "Blogs give us what we call a handshake with consumers" and "a little more access to us

Stonyfield now publishes two separate blogs on his website — Baby Babble and Bovine Bugle. At one time Stonyfield was running five blogs, but decided to withdraw three of them because they weren't attracting enough readers. Baby Babble provides a forum for Stonyfield employees and other parents of young children to meet and discuss child development and balance work with the family. Stonyfield created that blog because baby yogurts are one of its most popular product lines, and parenting blogs seem to appeal to a large number of readers. The Bovine Bugle provides reports about Jonathan's Organic Dairy Farm. Gates in Franklin, Vermont, a member of the organic cooperative that supplies milk for Stonyfield products.

This blog sparks a large number of nostalgic comments from readers who remember their childhood on a farm. As organic food grows in importance, these blogs help the company showcase the aspects that make it different from other brands and invite customers to help them in this endeavor. Stonyfield continually posts new content to each of the blogs. Readers can subscribe to any of them and automatically receive updates when available. And of course they can reply to these posts.

The benefits of blogging for Stonyfield have not yet been quantified so far, but management is confident there are real benefits. Blogs have created a positive response for the Stonyfield brand by providing readers with something that inspires them or sparks their interest -If blogs give new information to readers, inspire them to protect the environment or ask them for opinions, the administration believes that They will remember the brand when they are in front of the yogurt shelves in the supermarket or grocery store and that they will take a Stonyfleld product instead of a competitor when it is time to choose. Stonyfield has a fairly large website. Blogs offer a way to highlight some of the content on the Web that would otherwise be lost. This, too, helps drive some blog readers to buy Stonyfield products.

1.What is Stonyfield farm's e-commerce model and business strategy? What challenges and problems does the company face?