You are offered a job with a new startup or Accenture Global Health Consulting.   Accenture would pay you $40,000 for sure. The start-up will pay you one of two salaries based on firm performance. You determine that if you take the job at the start-up there is 50% chance you would earn $90,000 but also a 50% chance you earn only $6,400.

1. (5 points) If you made your job choice based on the expected income which job would you choose?
2. (5 points) If you made your job choice based on the expected utility of your income and your utility function is given by U = √I (utility is equal to the square root of income) what job would you choose?
3. (9 points) Under the expected utility model what is the lowest amount of no-risk income Accenture could offer you and still have you choose them over the start-up?
4. (10 points) Now assume (with the same utility function as in (b)) that you can hire an investment analyst who has inside information on how well the start-up will perform. You know that 50% of the time they will tell you that you will earn the $90,000 and 50% of the time they will tell you that you will earn $6,400. Once you pay for the information – you can then eliminate the uncertainty and they will tell you whether the startup will be successful. What is the maximum amount of money you would pay for this information.

You and your business partners are considering applying for a franchise. If approved, you expect startup costs to be $400,000 plus $300,000 in real estate costs. Of this $700,000 in upfront costs, you will be allowed to depreciate $420,000 on a five-year MACRS schedule. The remaining $280,000 is not depreciable but should be included in the book value of the fixed assets associated with the franchise when it is sold. Your plan is to start and operate the business for 5 years at which time you expect to sell the business for $1,000,000. You expect to initially have working capital needs of $30,000, but these needs will grow proportionately with sales. You expect sales in the first year to be $200,000 and that sales will grow by 20% in the second year, 15% in the third year, and then 10% in the fourth and fifth years. You project annual fixed operating expenses of $50,000. Your annual variable operating expenses are expected to be 60% of sales in the first year. With improvements in efficiency and experience, you expect variable operating expenses to be 55% of sales in the second year, 50% of sales in the third, fourth and fifth years. You expect to pay taxes of 20%. Assume your required return is 12%.

4. Consider what happens to cash flows and NPV if Sales are 20% more than expected. What if sales are 20% less than expected? Discuss this analysis in your report.

You and your business partners are considering applying for a franchise. If approved, you expect startup costs to be $400,000 plus $300,000 in real estate costs. Of this $700,000 in upfront costs, you will be allowed to depreciate $420,000 on a five-year MACRS schedule. The remaining $280,000 is not depreciable but should be included in the book value of the fixed assets associated with the franchise when it is sold. Your plan is to start and operate the business for 5 years at which time you expect to sell the business for $1,000,000. You expect to initially have working capital needs of $30,000, but these needs will grow proportionately with sales. You expect sales in the first year to be $200,000 and that sales will grow by 20% in the second year, 15% in the third year, and then 10% in the fourth and fifth years. You project annual fixed operating expenses of $50,000. Your annual variable operating expenses are expected to be 60% of sales in the first year. With improvements in efficiency and experience, you expect variable operating expenses to be 55% of sales in the second year, 50% of sales in the third, fourth and fifth years. You expect to pay taxes of 20%. Assume your required return is 12%.

2. Estimate the total cash flows for this opportunity. Explain your estimates in your report.

1. XYZ Company is a startup company, and it has purchased inventory as follows:

Assume you have sold 2,250 units in 2016.

Given that fact, how much would inventory be valued on the balance sheet under the following methods and how much Cost of Goods Sold would be recognized as well?

a. LIFO Method

b. FIFO Method

c. Average Cost Method

Scenario B: Internet Bank You work for a startup company that is launching an internet bank. The internet bank will provide the following financial products and services to its customers: Accounts and deposits Credit, debit, and travel cards Loans Insurance Investments Tax services Senior management and investors have identified the following key technical factors for the success of the internet bank: Scalability - The technology and software application infrastructure must accommodate high growth and new users without impacting the service levels delivered to existing users. Availability - Users must be supported with robust, consistent, and reliable access; excellent performance 24 hours a day, 7 days a week. Security – Industry-accepted security practices and a multi-level authentication systems have to be put in place to authenticate and identify each user before they access their accounts and initiate transactions. Manageability – The technology and software applications infrastructure must be easy to manage, support, and update. You have been assigned to analyze your organization and develop a technical architecture to support the business processes of this internet bank.

Make the roman project the startup project. Create a function letterToInt with the following interface:

int      letterToInt( char letter )

This function should accept a character value as a parameter. This variable represents one symbol in a roman numeral. Your function should return the integer equivalent (e.g., if you pass the function an 'X', it would return the number 10). The function should return -1 if the letter passed to it is not a valid letter in a roman numeral.

Additional Requirements:

• Use a switch statement in your function.
• Your function should contain only one return statement.

Write a main() function to test your function.

The valid roman numerals and their meanings are:

I - 1

V - 5

X - 10

L - 50

C - 100

M - 1000

NOTE: This function does not need to handle a complete roman number such XIV; it only handles one digit Roman Numerals.

Janine has been an employee of Dress Me Inc. a national chain of clothing stores for women (the "Company") for the last 10 years. She began as a sales person and later, in 2017, after completing an MBA, was promoted by the Company to her current position as Senior Sales Manager. The position requires that Janine work regular office hours from Monday to Friday, as well as take occasional trips to visit major clients, which often exceed the traditional office hours. In January 2020, Janine was involved in a car accident that luckily did not leave her with any significant physical injury but the trauma is still evident. She suffers from bad quality of sleep and increased anxiety. She cannot drive anymore and using public transportation to visit clients does not really work. Janine requests to work in the form of fixed hours of work, weekdays only, 9:00am to 5:00pm with a 30 minute break at 12:00pm. She also requests to meet clients on zoom. The Company refuses her request. They say that it was vital that the hours of work of the Senior Sales Manager include occasional longer days and evenings to fit the needs of clients and that there is "an added value to client visits on site". If she can't do longer hours and visit clients -- they say -- she can go back to her old job as a sales person. Janine files a human rights complaint against the Company.

Briefly describe the legal arguments of both parties (Janine and the Company) in relation to the human rights complaint. [4 marks]

Problem Solving: Please answer the following problems showing your solutions, Double Rule and Encircle Final Answers. This must be done thru your handwriting placed in a Bond Paper. THANKYOU!!!

1. On July 1, 2019 J Corp acquired a machinery worth Php 2,500,000 from D Co. Term of the contract calls for a downpayment of Php 500,000 and signing a 2 year 10% note payable for the balance. Interest is payable quarterly. The existing loan agreement does not carry a provision to refinance. During September, J Corp was experiencing financial difficulty due to COVID-19 and was unable to pay the periodic interest. a. What amount of current liability should J Corp report in its December 31, 2019 balance sheet assuming D Co. agreed at balance sheet date not to demand payment as a consequence of the breach? b. What amount of current liability should J Corp report in its December 31, 2019 balance sheet assuming D Co. agreed to provide a grace period ending at least twelve months to rectify the breach?

2. A truck owned and operated by B Company was involved in an accident with an auto driven by Julia on January 12, 2019. B Company received notice on April 24, 2019 of a lawsuit for Php 800,000 damages for a personal injury suffered by Julia. B Company counsel believes it is reasonably possible that Julia will be successful against the company for an estimated amount in the range between Php 100,000 and Php 400,000. No amount within this range is a better estimate of potential damages than any other amount. It is expected that the lawsuit will be adjudicated in the latter part of 2020. What amount of loss should B Company accrue at December 31, 2019?

3. In November and December of 2020, adventure Company received Php 792,000 for 1,000, 3 year subscriptions at Php 264 per issue per year, starting with the January 2006 issue. adventure elected to include the Php 792,000 in its 2020 income statement for tax purposes. What amount should advneture report in its 2020 balance sheet as unearned subscription revenue?

4. In November and December 2020, Sweet Company, a newly organized magazine publisher, received Php 72,000 for 1,000 three year subscriptions at Php 24,000 per year, starting with the November 2020 issue of the magazine. Sweet elected to include the entire Php 72,000 in its 2020 income tax return. How much should Sweet report in its 2020 balance sheet as unearned subscriptions?

5. During 2019, S Company sold 500,000 boxes of hotcakes under a new sales promotional program. Each box contains one coupon, which when submitted with Php 16, entitles the customer to a baking pan. S Company pays Php 20 per pan and Php 2 handling and shipping. S Company estimates that 80% of the coupons will be redeemed, even though only 300,000 coupons had been processed during 2019. What amount should S Company report as liability for unredeemed coupons at December 31, 2019?

Williams-Santana Inc. is a manufacturer of high-tech industrial parts that was started in 2009 by two talented engineers with little business training. In 2021, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2021 before any adjusting entries or closing entries were prepared.

1. A five-year casualty insurance policy was purchased at the beginning of 2019 for $33,000. The full amount was debited to insurance expense at the time.
2. Effective January 1, 2021, the company changed the salvage value used in calculating depreciation for its office building. The building cost $604,000 on December 29, 2010, and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salvage value of $120,000. Declining real estate values in the area indicate that the salvage value will be no more than $30,000.
3. On December 31, 2020, merchandise inventory was overstated by $23,000 due to a mistake in the physical inventory count using the periodic inventory system.
4. The company changed inventory cost methods to FIFO from LIFO at the end of 2021 for both financial statement and income tax purposes. The change will cause a $940,000 increase in the beginning inventory at January 1, 2022.
5. At the end of 2020, the company failed to accrue $15,100 of sales commissions earned by employees during 2020. The expense was recorded when the commissions were paid in early 2021.
6. At the beginning of 2019, the company purchased a machine at a cost of $680,000. Its useful life was estimated to be 10 years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2020, was $435,200. On January 1, 2021, the company changed to the straight-line method.
7. Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.70% is a better indication of the actual cost. Management effects the change in 2021. Credit sales for 2021 are $3,600,000; in 2020 they were $3,300,000.

Required:
For each situation:
1. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change. For accounting errors, choose "Not applicable".
2. Prepare any journal entry necessary as a direct result of the change or error correction, as well as any adjusting entry for 2021 related to the situation described. (Ignore tax effects.)

Williams-Santana Inc. is a manufacturer of high-tech industrial parts that was started in 2009 by two talented engineers with little business training. In 2021, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2021 before any adjusting entries or closing entries were prepared.

1. A five-year casualty insurance policy was purchased at the beginning of 2019 for $31,000. The full amount was debited to insurance expense at the time.
2. Effective January 1, 2021, the company changed the salvage value used in calculating depreciation for its office building. The building cost $568,000 on December 29, 2010, and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salvage value of $100,000. Declining real estate values in the area indicate that the salvage value will be no more than $25,000.
3. On December 31, 2020, merchandise inventory was overstated by $21,000 due to a mistake in the physical inventory count using the periodic inventory system.
4. The company changed inventory cost methods to FIFO from LIFO at the end of 2021 for both financial statement and income tax purposes. The change will cause a $920,000 increase in the beginning inventory at January 1, 2022.
5. At the end of 2020, the company failed to accrue $14,700 of sales commissions earned by employees during 2020. The expense was recorded when the commissions were paid in early 2021.
6. At the beginning of 2019, the company purchased a machine at a cost of $640,000. Its useful life was estimated to be 10 years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2020, was $409,600. On January 1, 2021, the company changed to the straight-line method.
7. Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.75% is a better indication of the actual cost. Management effects the change in 2021. Credit sales for 2021 are $3,200,000; in 2020 they were $2,900,000.

Required:
For each situation:
1. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change. For accounting errors, choose "Not applicable".
2. Prepare any journal entry necessary as a direct result of the change or error correction, as well as any adjusting entry for 2021 related to the situation described. (Ignore tax effects.)