Discusses four reasons that firms should care about sustainability. Which one of the reasons would the CEO of Enbridge use to explain why Enbridge cares about Sustainability?
In: Economics
In the Enron case, the CEO was found guilty. However, it affected the workers more than it affected him. Would you agree? What are your thoughts on this case and how it ended?
In: Finance
In: Finance
BUSINESS AND SOCIETY
1 PAGE ESSAY QUESTION
(I'll give you thumbs up.)
In your opinion, should the same person be both CEO and Chair of the Board of Directors?
In: Operations Management
Suppose you are the CEO of Nike and the world is coping with an economic recession. Would you change the corporate strategy? If so, what changes would you make and why? If not, why not?
In: Operations Management
Carla Vista Company has a December 31 fiscal year end. Selected information follows for Carla Vista Company for two independent situations as at December 31, 2021:
1. Carla Vista purchased a patent from Tamarisk Inc. for $411,000 on January 1, 2018. The patent expires on January 1, 2026. Carla Vista has been amortizing it over its legal life. During 2021, Carla Vista determined that the patent’s economic benefits would not last longer than six years from the date of acquisition.
2. Carla Vista has a trademark that had been purchased in 2014 for $300,000. During 2020, the company spent $50,000 on a lawsuit that successfully defended the trademark. On December 31, 2021, it was assessed for impairment and the recoverable amount was determined to be $320,000.
a. For each of these assets, determine the amount that will be
reported on Carla Vista’s December 31, 2020 and 2021, balance
sheets. (Round answers to 0 decimal places, e.g.
5,276.)
b. For each of these assets, determine what, if anything, will be
recorded on Carla Vista’s 2021 income statement. Be specific about
the account name and the amount. (Round answers to 0
decimal places, e.g. 5,276.)
In: Accounting
Hector Company has developed the following standard costs for
its product for 2019:
| HECTOR COMPANY Standard Cost Card |
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| Product A | |||||||||||||||
| Cost Element | Standard Quantity | × | Standard Price | = | Standard Cost | ||||||||||
| Direct materials | 4 pounds | $3 | $12 | ||||||||||||
| Direct labor | 3 hours | 8 | 24 | ||||||||||||
| Manufacturing overhead | 3 hours | 4 | 12 | ||||||||||||
| $48 | |||||||||||||||
The company expected to produce 30,000 units of Product A in 2020
and work 90,000 direct labor hours.
| Actual results for 2020 are as follows: | |||
| • | 31,000 units of Product A were produced. | ||
| • | Actual direct labor costs were $746,200 for 91,000 direct labor hours worked. | ||
| • | Actual direct materials purchased and used during the year cost $346,500 for 126,000 pounds. | ||
| • | Actual variable overhead incurred was $155,000 and actual fixed overhead incurred was $205,000. | ||
Compute the following variances showing all computations to support
your answers. Indicate whether the variance are favorable or
unfavorable?
| (a) | Materials Quantity Variance | $ | UnfavorableNot ApplicableFavorable | |||
| (b) | Total Direct Labor Variance | $ | FavorableNot ApplicableUnfavorable | |||
| (c) | Direct Labor Quantity Variance | $ | UnfavorableFavorableNot Applicable | |||
| (d) | Direct Materials Price Variance | $ | UnfavorableNot ApplicableFavorable | |||
| (e) | Total Overhead Variance | $ | Not ApplicableFavorableUnfavorable |
In: Accounting
Marvelly company manufactures and sells dolls. The company plans to manufacture and sell 80,000 units of the dolls for $4,000,000 in 2020 with the following information: The cost for each doll consists of direct material $15, direct labour $10, and variable manufacturing overhead $5. The salaries of the factory manager and supervisors are estimated at $300,000 per annum, depreciation of machinery, factory equipment, and buildings is budgeted at $250,000 per year, and the rental of factory building is $200,000 per year.
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In: Accounting
Company 1:
| Industry Median | 2020 | 2019 | 2018 | 2017 | 2016 | |
| Profitability | ||||||
| Gross Margin | 39.2% | 29.8% | 29.3% | 29.7% | 30.1% | 29.5% |
| EBITDA Margin | 9.5% | 9.3% | 8.9% | 9.3% | 10.3% | 9.7% |
| Operating Margin | 6.1% | 6.0% | 5.5% | 5.6% | 6.3% | 7.5% |
| Pretax Margin | 5.4% | 5.4% | 4.9% | 5.0% | 5.6% | 6.7% |
| Effective Tax Rate | 23.3% | 22.0% | 21.3% | 29.3% | 32.7% | 32.5% |
| Net Margin | 4.2% | 4.2% | 3.8% | 3.5% | 3.8% | 4.5% |
Company 2:
| Industry Median | 2020 | 2019 | 2018 | 2017 | 2016 | |
| Profitability | ||||||
| Gross Margin | 21.3% | 22.1% | 21.7% | 22.0% | 22.4% | 22.2% |
| EBITDA Margin | 4.9% | 4.1% | 4.2% | 4.2% | 5.0% | 5.2% |
| Operating Margin | 3.2% | 2.0% | 3.6% | 2.1% | 3.0% | 3.3% |
| Pretax Margin | 2.4% | 1.6% | 3.3% | 1.2% | 2.5% | 2.8% |
| Effective Tax Rate | 23.6% | 23.7% | 22.6% | 34.8% | 32.8% | 33.8% |
| Net Margin | 1.5% | 1.2% | 2.5% | 0.8% | 1.7% | 1.9% |
Please discuss the profitability aspects for both companies and decide which company do you think perform better. The discussion should include, but not exhaustive to trend, prospect, competitive structure etc.
In: Finance
The balance sheets for Plasma Screens Corporation, along with additional information, are provided below: PLASMA SCREENS CORPORATION Balance Sheets December 31, 2021 and 2020 2021 2020 Assets Current assets: Cash $ 155,100 $ 171,800 Accounts receivable 74,800 88,000 Inventory 87,000 72,800 Prepaid rent 2,400 1,200 Long-term assets: Land 440,000 440,000 Equipment 732,000 630,000 Accumulated depreciation (406,000 ) (252,000 ) Total assets $ 1,085,300 $ 1,151,800 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 91,000 $ 77,800 Interest payable 6,900 13,800 Income tax payable 6,400 4,200 Long-term liabilities: Notes payable 115,000 230,000 Stockholders' equity: Common stock 660,000 660,000 Retained earnings 206,000 166,000 Total liabilities and stockholders' equity $ 1,085,300 $ 1,151,800 Additional Information for 2021: Net income is $61,000. The company purchases $102,000 in equipment. Depreciation expense is $154,000. The company repays $115,000 in notes payable. The company declares and pays a cash dividend of $21,000. Required: Prepare the statement of cash flows using the indirect method. (List cash outflows and any decrease in cash as negative amounts.
In: Accounting