1)

Yowell Company began operations on January 1, Year 1. During Year 1, the company engaged in the following cash transactions:

1. 1) issued stock for $70,000
2. 2) borrowed $40,000 from its bank
3. 3) provided consulting services for $69,000 cash
4. 4) paid back $30,000 of the bank loan
5. 5) paid rent expense for $16,500
6. 6) purchased equipment for $27,000 cash
7. 7) paid $4,500 dividends to stockholders
8. 8) paid employees' salaries of $36,000

What is Yowell's net cash flow from operating activities?

a) Inflow of $52,500

b) Inflow of $33,000

c) Inflow of $16,500

d) Inflow of $12,000

2)

Packard Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions are cash transactions.)

1. Acquired $1,400 cash from the issue of common stock.
2. Borrowed $870 from a bank.
3. Earned $1,050 of revenues cash.
4. Paid expenses of $340.
5. Paid a $140 dividend.

During Year 2, Packard engaged in the following transactions. (Assume all transactions are cash transactions.)

1. Issued an additional $775 of common stock.
2. Repaid $535 of its debt to the bank.
3. Earned revenues of $1,200 cash.
4. Incurred expenses of $540.
5. Paid dividends of $190.

What is the amount of Packard Company's net cash flow from financing activities for Year 2?

a) Net outflow of $535.

b) Net inflow of $585.

c) Net inflow of $50.

d) Net outflow of $725.

Construct a critique of the following including at least 1 strength and 1 weakness of the proposed new strategy.

CVS is a very successful company that has been one of the leading publicity owned companies in the US. There headquarters is based out of Woonsocket, R.I. A company that has over 290, 000 employees that help to ensure the success of the company everyday. CVS aims to be a leading company that will provide the testing that is needed globally for the corona virus by allowing drive in testing. By providing testing to those that may not be able to get it regularly they will be able to save more individuals. This company always go up and beyond for their customers they provide services that are able to be affordable for the purchase of their medications. I use them on a regular basics when I need a prescription refills they are very professional and they never disappoint. The company should do a review of how their profit is doing every five years so that they can get a idea of new methods or ideas that can be introduced.

Where i currently work at we have a Suggestion box that my Director always check to get an idea of what the customers will like to see change or use it as way that they can show their employees that they are appreciated by appointing an employee of the month by doing so that may drive the employees that may not feel appreciated to see that the company that they give all they time that they could be spending with their families especially on holidays. I also feel that the company should come up with in store events that would draw the attention to customers that may not be a regular customer. When i was in the Navy there were times that I really regretted signing up because I felt like my command didn't appreciate me so i was ready to get out, then i met a manager that appreciated his employees and would constantly tell us without us he wouldn't be anything.

Koninklijke Philips NV

Established in 1891 in Eindhoven, the Netherlands, Koninklijke Philips NV is one of the world’s oldest multinational companies. The company began making lighting products and over time diversified into a range of businesses that included domestic appliances, consumer electronics, and health care products. From the beginning, the small Dutch domestic market created pressures for Philips to look to foreign markets for growth. Some argue that this is the case for most European companies and, thus, the many companies from Europe that are globally competitive.

By the start of World War II, Philips already had a global presence. During the war, the Netherlands was occupied by Germany. By necessity, the company’s national organizations in countries such as Australia, Brazil, Canada, United Kingdom, and the United States gained considerable autonomy during this period. After the war, a structure based on strong national organizations remained in place. Each national organization was in essence a self-contained entity that was responsible for much of its own manufacturing, marketing, and sales. Most R&D activities, however, were centralized at Philips’ headquarters in Eindhoven. Reflecting this, several product divisions were created. Based in Eindhoven, the product divisions developed technologies and products, which were then made and sold by the different national organizations. During this period, the career track of most senior managers at Philips involved significant postings in various national organizations around the world (a career development practice often seen still in multinational corporations).

For several decades this organizational arrangement worked well. It allowed Philips to customize its product offerings, sales, and marketing efforts to the conditions that existed in different national markets. By the 1970s, however, flaws were appearing in the approach. The structure involved significant duplication of activities around the world, particularly in manufacturing, which created an intrinsically high-cost structure. When trade barriers were high, this did not matter so much, but the significance of its effect became important when trade barriers were starting to fall and competitors came in to the marketplace. These competitors included Sony and Matsushita from Japan, General Electric from the United States, and Samsung from South Korea. Each of these competitors gained market share by serving increasingly global markets from centralized production facilities where they could achieve greater scale economies and hence lower costs.

Philips’ response was to try to tilt the balance of power in its structure away from national organizations and toward product divisions. International production centers were established under the direction of the product divisions. The national organizations, however, remained responsible for local marketing and sales, and they often maintained control over some local production facilities. One problem Philips faced in trying to change its structure at this time was that most senior managers had come up through the national organizations. Consequently, they were loyal to them and tended to protect their autonomy.

Despite several reorganization efforts, the national organizations remained a strong influence at Philips until the 1990s. In the mid-1990s Cor Boonstra became CEO. Page 428He famously described the company’s organizational structure as a “plate of spaghetti” and asked how Philips could compete when the company had 350 subsidiaries around the world and significant duplication of manufacturing and marketing efforts across nations. Boonstra instituted a radical reorganization. He replaced the company’s 21 product divisions with just 7 global business divisions, making them responsible for global product development, production, and marketing. The heads of the divisions reported directly to him, while the national organizations reported to the divisions. The national organizations remained responsible for local sales and local marketing efforts, but after this reorganization they finally lost their historic sway on the company.

Philips, however, continued to underperform its global rivals. By 2008, Gerard Kleisterlee, who succeeded Boonstra as CEO in 2001, decided Philips was still not sufficiently focused on global markets. He reorganized yet again, this time around just three global divisions, health care, lighting, and consumer lifestyle (which included the company’s electronics businesses). These are also the three divisions that are in place under the most recent CEO, Frans van Houten, who became the CEO of Philips in 2011.

The slogan for the health care division is "creating the future of healthcare." Philips is a global leader in the health care domain. It is guided by the understanding that there is a patient in the center of everything it does in the field of health care, and its focus is on creating the ideal experience for all patients around the world, young and old. Philips Lighting is about "enhancing lives with light" by delivering innovative and energy-efficient solutions. The Consumer Lifestyle division is dedicated to "helping people achieve a healthier and better life."

The three divisions are responsible for product strategy, global marketing, and shifting of production to low-cost locations (or outsourcing production). The divisions also took over some sales responsibilities, particularly dealing with global retail chains such as Walmart, Tesco, and Carrefour. To accommodate national differences, however, some sales and marketing activities remained located at the national organizations.

Case Discussion Questions

Why did Philips’ organizational structure make sense early on in its existence? Why did this structure start to create problems for the company later on?

What was Philips trying to achieve by tilting the balance of power in its structure away from national organizations and toward the product divisions? Why was this hard to achieve?

What was the point of the organizational changes made by Cor Boonstra? What was he trying to achieve? Do you agree with Frans van Houten's decision to keep the same three divisions when he became CEO in 2011?

In 2008 Philips reorganized yet again, now down from 21 divisions to 9 divisions and subsequently just 3 divisions. Why do you think it did this? What is it trying to achieve?

17.       Determine the risk-adjusted present value of a biotechnology company after considering the risk factors below.                                                                                                                    (2 marks)

The biotechnology company has developed a new anti-cancer drug for Cancer X.

SECTION 3:

THE QUESTIONS BELOW RELATE TO “ANTISENSE THERAPEUTICS LIMITED”, AN AUSTRALIAN BASED BIOTECHNOLOGY COMPANY:

1. What does the company “Antisense Therapeutics” do?                                                   
2. What is the current market capitalisation of Antisense Therapeutics?                         (1 mark)
3. Who is the CEO of the company?                                                                                                 (1 mark)
4. What is the current share price of Antisense Therapeutics?                                             (1 mark)
5. What was the share price of the Company at 30 June 2015?                                            (1 mark)
6. Does the Company hold intellectual property rights? If so, how many (registered or in the process of being registered)?                                                                                                         
7. Is the company also licensing intellectual property from another company? If so, name the company.                                                                                                                          
8. What is the total equity in the company for the year ended 30 June 2019?                               (1 mark)
9. What amount of cash was received from Government grants for the year ended 30 June 2019?                                                                                                                                                       (1 mark).
10. The Company has highlighted the importance of the compound ATL1102. What is ATL1102 and what disease is it being used to treat? Does the company own the IP rights to this compound?                                                                                                                                                      
11. What is the Company’s plan to move forward with the testing of this drug?           
12. Did the Company’s make a net financial profit or loss for the year ending 30 June 2019? What was the figure?                                                                                                                                  

Agree/Disagree and Why?

Question: Describe and discuss the role of planning in the business use of information technology, using the scenario approach, and planning for competitive advantage as examples. In addition, Hash out the role of planning and business models in the development of business/IT strategies, architectures, and applications. Identify several change management solutions for end-user resistance to the implementation of new IT-based business strategies and applications.

Answer: In order to use information technology well, and implement it in a cohesive and effective way requires more than just knowing its importance of it. There needs to be a creation and implementation on an action plan. There are six components to an organization planning process. 1- Team building, modeling, and consensus 2- Evaluating what an organization has accomplished and the resources they have acquired 3- Analyzing the business, economic, political, and societal environments 4- Anticipating and evaluating the impact of future developments 5- Building a shared vision and deciding on what goals they want to achieve 6- Deciding which actions to take to achieve their goals The result of these 6 components results in the planning process, which is then followed by the implementation process. There are different types of planning processes. One of them is the Scenario approach in which is known for making planning easier, more accurate, and more relevant to the real world. This is actually an approach my company takes as we create potential scenarios and play out different ways to resolve it and find the best action course. Planning for competitive advantage is very important within business/IT planning. It involves looking at the potential risks and benefits the company might encounter when using IT strategies and technologies. The role of the business models and planning are to answer specific questions that revolve around how a business will deliver value to its target customers and at what cost. It is very important as it focuses on all the important components of a business and how they fit within the whole system. In order to actually utilize the internet in a competitive advantageous way the company needs to be able to have a strategic framework and continue to access the strategic value it has, by looking into the following different aspects, cost and efficiency improvements, Performance improvement in business efficiency, global market penetration, and Product and service transformation. Some solutions for end-user resistance that can be implemented to assist in the transition are as follows. Involve as many people as possible in e-business planning and application development, Make constant change an expected part of the culture, tell everyone as much as possible about everything as often as possible, preferably in person, make liberal use of financial incentives and recognition, work within the company culture and not around it. O’Brien, James. (2011). Management Information Systems. 10th Edition. The McGraw=Hill Companies, Inc. New York Schoemaker, P. (1995, January 15). Scenario Planning: A Tool for Strategic Thinking. Retrieved October 4, 2020, from https://sloanreview.mit.edu/article/scenario-planning-a-tool-for-strategic-thinking/ Ali, Rami. (2020.May14). Scenario Planning: Strategy, Steps and Practical Examples. Brainyard. https://www.netsuite.com/portal/business-benchmark-brainyard/industries/articles/cfo-central/scenario-planning.shtml

Laker Company reported the following January purchases and sales data for its only product.

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 400 units, where 370 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory.

Required:

1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $2,200, and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)

2. Which method yields the highest net income?

LIFO

Weighted average

Specific identification

FIFO

3. Does net income using weighted average fall between that using FIFO and LIFO?

Yes

No

4. If costs were rising instead of falling, which method would yield the highest net income?

LIFO

Specific identification

Weighted average

FIFO

  
Required:

Laker Company reported the following January purchases and sales data for its only product.

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 230 units, where 200 are from the January 30 purchase, 5 are from the January 20 purchase, and 25 are from beginning inventory.

Required:

1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,350, and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)

2. Which method yields the highest net income?

• Specific identification

• Weighted average

• LIFO

• FIFO

3. Does net income using weighted average fall between that using FIFO and LIFO?

• Yes

• No

4. If costs were rising instead of falling, which method would yield the highest net income?

• FIFO

• LIFO

• Specific identification

• Weighted average

The following data are from the accounts of Color Corp. at December 31, 2020

Retained earnings, beginning balance--------------------------------------------------------- $900,000

Common stock, $____ par, 100,000 shares authorized, 50,000 shares issued -----------------1,000,000

Treasury stock, 1,000 shares --------------------------------------------------------------------20,000

Paid-in capital in excess of par – Common stock ---------------------------------------------400,000

Bonds Payable ----------------------------------------------------------------------------------200,000

Net income for 2020 (not included in retained earnings above)-----------------------------190,000

Dividends declared and paid during 2020 (not included in retained earnings above)-------80,000

Required:

1. Determine the value of the following items. Type/write your response after each item where indicated.
   1. Total retained earnings at end of 2020
   2. Total stockholders’ equity
   3. Average original selling price per share
   4. Par value per share of common stock   
   5. Cost per share of treasury stock
   6. Number of shares of common stock outstanding

2. Prepare the stockholders’ equity section of the balance sheet at December 31, 2020

Q2
Impact Of Pandemic On Economy And Recovery Policy
Bernama Radio Bernama TV 08/04/2020 05:54 PM
By Dr Norlin Khalid
Apr 8, 2020 - KUALA LUMPUR (Bernama) – The coronavirus or COVID-19
outbreak, which is said to have originated at a wet market in Wuhan, China, has spread
all over the world like lightning and was categorised as a pandemic by the World
Health Organisation (WHO) on March 11. To date, the virus has infected over a
million people in more than 180 countries and caused over 80,000 deaths. In Malaysia
itself, more than 3,000 people have tested positive for COVID-19 and 63 people have
succumbed to it.
According to a study by JP Morgan and projections by WHO, Malaysia’s COVID-19
positive cases may peak in mid-April with over 6,000 people infected. The Malaysian
government has already taken proactive measures to curb its spread by imposing the
Movement Control Order (MCO) from March 18 to 31. However, the MCO period
was later extended to April 14. Although the MCO compliance stands at 95 percent,
case numbers and deaths are continuing to rise.
The COVID-19 pandemic will certainly have an impact on the global economy,
including Malaysia’s. COVID-19 has shocked the world economic structure which
is now in a state of uncertainty. Recently, the International Monetary Fund announced
that the pandemic will cause a global recession this year which could be worse than
the one triggered by the subprime mortgage crisis of 2008. The latter was caused by
the contraction of liquidity in the banking system in the United States after its real
estate bubble burst. The economic crisis ensuing from COVID-19 involves
practically all the countries of the world and recovery is expected to take a long time.
As long as new positive cases of infection are reported, the economic ecosystem will
continue to be disrupted. Studies by the Organisation for Economic Cooperation and
Development and World Bank have projected a 2.4 percent contraction in GDP
(Gross Domestic Product) growth for the world. Bloomberg reported zero percent or
negative GDP growth in the worst-case scenario.
COVID-19 will also have a negative impact on the labour market. The International
Labour Organisation has predicted that 25 million workers throughout the world may
lose their jobs. Malaysia, which is a small country dependent on other nations such as
the US and China, is also expected to feel the pinch. According to a report by the
Malaysian Institute of Economic Research, Malaysia’s GDP growth will contract by
2.61 percent in 2020. Bank Negara Malaysia (BNM) said in a recent statement that
Malaysia’s economic growth will be in the -2.0 percent to +0.5 percent range. It also
estimated that 951,000 people will lose their jobs. The Malaysian Global Innovation
and Creativity Centre predicted that about 40 percent of small- and medium-sized
enterprises will have to wind up their operations if the COVID-19 chain of infection
persists for three to six months.
CONFIDENTIAL BPA12403/BPA10103
CONFIDENTIAL
4
In the face of COVID-19, the government must focus on two objectives: one, focus
on the necessary protective and safety precautions to break the chain of infection and
two, reduce the negative economic effects by implementing recovery policies
involving active fiscal and monetary policy targets. The fiscal policy targets are
related to government spending and taxation while the monetary policies are related
to interest rates, liquidity and control of money supply.
In terms of fiscal policy, the government has announced a series of economic stimulus
packages to help individuals and companies affected by the COVID-19 crisis.
On March 19, the RM20 billion economic stimulus package (PRE 2020) was
launched to help industries that were directly hit by the first wave of the COVID-19
outbreak, such as hotels and transport companies. After the outbreak entered the
second wave and the MCO was imposed, more individuals and businesses were
impacted. The supply chain is disrupted because almost the entire sector has stopped
working. Some production firms have also stopped operations and worse still, laidoff
workers as they are unable to bear the costs. The PRIHATIN package is aimed at
easing the financial constraints of the people and businesses. On March 27, the
government announced the second RM250 billion economic stimulus package
PRIHATIN, which includes the RM20 billion from PRE 2020. Out of RM230 billion,
RM22 billion would come from a direct fiscal injection; RM100 billion (moratorium
in loan repayments); RM55 billion (guarantees); RM40 billion (withdrawal from
Employees Provident Fund); and RM13 billion (various sources). PRIHATIN’s main
objective is to protect the welfare of the people, support businesses and strengthen the
economy. However, the stimulus packages will cause the nation’s fiscal position to
worsen. To add to that, the global economic crisis has caused oil prices to tumble
down to US$25-US$30 a barrel. In comparison, oil prices were around US$60 a barrel
when Budget 2019 was tabled. When government revenue from oil drops, it will cause
an increase in deficits.
In terms of monetary policy, BNM has cut the Overnight Policy Rate or OPR by 25
basis points to 2.5 percent and reduced the statutory reserve requirement ratio or SRR
by 100 basis points to two percent. These cuts will reduce loan costs, improve
liquidity and stimulate economic activities. Apart from that, the restructuring and
rescheduling of the six-month moratorium will ensure that the capital and financial
market returns to stability. It will also help individuals and businesses facing financial
problems and liquidity constraints.
It is difficult to predict when the economy will fully recover as long as COVID-19
positive cases continue to rise and no vaccines are discovered to treat the disease.
Nevertheless, the government’s fiscal and monetary policies complement one another
and will help to revive the economy by increasing aggregate demand such as public
and private consumption and investment. This will help to stimulate economic growth
through the multiplier effect and reduce the hike in the unemployment rate.
https://www.bernama.com/en/features/news.php?id=1829686
CONFIDENTIAL BPA12403/BPA10103
CONFIDENTIAL
5
(a) Examine the impact of COVID 19 pandemic on the Malaysian economy from
the aspects of unemployment and the wages of labor.

(b) To reduce the negative economic effects of COVID-19 pandemic, the
government is implementing recovery policies involving active fiscal and
monetary policy targets. The fiscal policy targets are related to government
spending and taxation while the monetary policies are related to interest rates,
liquidity and control of money supply. Analyze the implementation of expansionary fiscal policy and monetary policy
to stimulate aggregate demand (AD) in the economy during economic recession.