The unadjusted trial balance of La Mesa Laundry at August 31, 2016, the end of the fiscal year, follows:

La Mesa Laundry

UNADJUSTED TRIAL BALANCE

August 31, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash	3,800.00
2	Laundry Supplies	9,000.00
3	Prepaid Insurance	6,000.00
4	Laundry Equipment	180,800.00
5	Accumulated Depreciation		49,200.00
6	Accounts Payable		7,800.00
7	Bobbi Downey, Capital		95,000.00
8	Bobbi Downey, Drawing	2,400.00
9	Laundry Revenue		248,000.00
10	Wages Expense	135,800.00
11	Rent Expense	43,200.00
12	Utilities Expense	16,000.00
13	Miscellaneous Expense	3,000.00
14	Totals	400,000.00	400,000.00

The data needed to determine year-end adjustments are as follows:

•	Wages accrued but not paid at August 31 are $2,200.
•	Depreciation of equipment during the year is $8,150.
•	Laundry supplies on hand at August 31 are $2,000.
•	Insurance premiums expired during the year are $5,300.

Required:

1.	For each account listed in the unadjusted trial balance, enter the balance in a T account. Identify the balance as “Bal.”
2.	(Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the work sheet.
3.	a. Journalize the adjusting entries on page 10 of the journal. Adjusting entries are recorded on August 31. b. Post the adjusting entries. In the T accounts, identify the adjustments by “Adj.” and the new balances as “Adj. Bal.” (Be sure to add a posting reference to the journal.)
4.	Prepare an adjusted trial balance.
5.	Prepare an income statement, a statement of owner’s equity, and a balance sheet.*
6.	a. Journalize the closing entries on page 11 of the journal. b. Post the closing entries. In the T accounts, identify the closing entries by “Clos.” (Be sure to add a posting reference to the journal.)
7.	Prepare a post-closing trial balance. * Be sure to read the instructions for each financial statement carefully.

Chart of Accounts

CHART OF ACCOUNTS
La Mesa Laundry
General Ledger
ASSETS 11 Cash 13 Laundry Supplies 14 Prepaid Insurance 16 Laundry Equipment 17 Accumulated Depreciation LIABILITIES 21 Accounts Payable 22 Wages Payable EQUITY 31 Bobbi Downey, Capital 32 Bobbi Downey, Drawing 33 Income Summary	REVENUE 41 Laundry Revenue EXPENSES 51 Wages Expense 52 Rent Expense 53 Utilities Expense 54 Depreciation Expense 55 Laundry Supplies Expense 56 Insurance Expense 59 Miscellaneous Expense

Labels and Amount Descriptions

Labels
Current assets
Current liabilities
Expenses
Property, plant, and equipment
Revenues
August 31, 2016
For the Year Ended August 31, 2016
Amount Descriptions
Add withdrawals
Bobbi Downey, capital, August 31, 2016
Bobbi Downey, capital, September 1, 2015
Decrease in owner’s equity
Increase in owner’s equity
Less withdrawals
Net income
Net loss
Total assets
Total current assets
Total expenses
Total liabilities
Total liabilities and owner’s equity
Total property, plant, and equipment

T Accounts

1.	For each account listed in the unadjusted trial balance, enter the balance in the appropriate T account. Identify the balance as “Bal.”
3.b.	Post the adjusting entries. Identify the adjustments by “Adj.” and the new balances as “Adj. Bal.”
6.b.	Post the closing entries. In the T accounts, identify the closing entries by “Clos.” (Be sure to add a posting reference to the journal.)

Cash (Acct. 11)

Laundry Supplies (Acct. 13)

Prepaid Insurance (Acct. 14)

Laundry Equipment (Acct. 16)

Accumulated Depreciation (Acct. 17)

Accounts Payable (Acct. 21)

Wages Payable (Acct. 22)

Bobbi Downey, Capital (Acct. 31)

Bobbi Downey, Drawing (Acct. 32)

Income Summary (Acct. 33)

Laundry Revenue (Acct. 41)

Wages Expense (Acct. 51)

Rent Expense (Acct. 52)

Utilities Expense (Acct. 53)

Depreciation Expense (Acct. 54)

Laundry Supplies Expense (Acct. 55)

Insurance Expense (Acct. 56)

Miscellaneous Expense (Acct. 59)

Work Sheet

2. (Optional) On your own paper or spreadsheet, enter the unadjusted trial balance on an end-of-period work sheet and complete the work sheet.

Journal

3.a	Journalize the adjusting entries on page 10 of the journal. Adjusting entries are recorded on August 31.
6.a	Journalize the closing entries on page 11 of the journal. (Note: Complete the adjusted trial balance, the income statement, the statement of owner’s equity, and the balance sheet BEFORE completing part 6. a.)

PAGE 10PAGE 11

JOURNAL

	DATE	DESCRIPTION	POST. REF.	DEBIT	CREDIT
1		Adjusting Entries
2
3
4
5
6
7
8
9

Adjusted Trial Balance

4. Prepare an adjusted trial balance.

La Mesa Laundry

ADJUSTED TRIAL BALANCE

August 31, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Laundry Supplies
3	Prepaid Insurance
4	Laundry Equipment
5	Accumulated Depreciation
6	Accounts Payable
7	Wages Payable
8	Bobbi Downey, Capital
9	Bobbi Downey, Drawing
10	Laundry Revenue
11	Wages Expense
12	Rent Expense
13	Utilities Expense
14	Depreciation Expense
15	Laundry Supplies Expense
16	Insurance Expense
17	Miscellaneous Expense
18	Totals

Income Statement

5. Prepare an income statement for the year ended August 31, 2016. If a net loss has been incurred, enter that amount as a negative number using a minus sign. Be sure to complete the statement heading. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) on the income statement.

La Mesa Laundry

Income Statement

1
2
3
4
5
6
7
8
9
10
11

Statement of Owner’s Equity

5. Prepare a statement of owner’s equity for the year ended August 31, 2016. Be sure to complete the statement heading. No additional investments were made during the year. If a net loss has been incurred or there has been a decrease in owner’s equity, enter that amount as a negative number using a minus sign. Use the list of Labels and Amount Descriptions for the correct wording of text items.

La Mesa Laundry

Statement of Owner’s Equity

1
2
3
4
5

Balance Sheet

5. Prepare a balance sheet as of August 31, 2016. Be sure to complete the statement heading. Fixed assets must be entered in order according to account number. Use the list of Labels and Amount Descriptions for the correct wording of text items other than account names. You will not need to enter colons (:) or the word "Less" on the balance sheet; they will automatically insert where necessary.

La Mesa Laundry

Balance Sheet

1	Assets
2
3
4
5
6
7
8
9
10
11
12	Liabilities
13
14
15
16
17	Owner’s equity
18
19

Post-closing Trial Balance

7. Prepare a post-closing trial balance.

La Mesa Laundry

POST-CLOSING TRIAL BALANCE

August 31, 2016

	ACCOUNT TITLE	DEBIT	CREDIT
1	Cash
2	Laundry Supplies
3	Prepaid Insurance
4	Laundry Equipment
5	Accumulated Depreciation
6	Accounts Payable
7	Wages Payable
8	Bobbi Downey, Capital
9	Totals

Your employer, a mid-sized human resources management company, is considering expan- sion into related fields, including the acquisition of Temp Force Company, an employment agency that supplies word processor operators and computer programmers to businesses with temporary heavy workloads. Your employer is also considering the purchase of Bigger- staff & McDonald (B&M), a privately held company owned by two friends, each with 5 million shares of stock. B&M currently has free cash flow of $24 million, which is expected to grow at a constant rate of 5%. B&M’s financial statements report short-term investments of $100 million, debt of $200 million, and preferred stock of $50 million. B&M’s weighted average cost of capital (WACC) is 11%. Answer the following questions.

a. Describe briefly the legal rights and privileges of common stockholders.

b. What is free cash flow (FCF)? What is the weighted average cost of capital? What is the free cash flow valuation model?

c. Use a pie chart to illustrate the sources that comprise a hypothetical company’s total value. Using another pie chart, show the claims on a company’s value. How is equity a residual claim?

d. Suppose the free cash flow at Time 1 is expected to grow at a constant rate of gL forever. If gL WACC, what is a formula for the present value of expected free cash flows when discounted at the WACC? If the most recent free cash flow is expected to grow at a constant rate of gL forever (and gL WACC), what is a formula for the present value of expected free cash flows when discounted at the WACC?

e. Use B&M’s data and the free cash flow valuation model to answer the following questions. (1) What is its estimated value of operations? (2) What is its estimated total corporate value? (This is the entity value.) (3) What is its estimated intrinsic value of equity? (4) What is its estimated intrinsic stock price per share?

f. You have just learned that B&M has undertaken a major expansion that will change its expected free cash flows to ?$10 million in 1 year, $20 million in 2 years, and $35 million in 3 years. After 3 years, free cash flow will grow at a rate of 5%. No new debt or preferred stock was added; the investment was financed by equity from the owners. Assume the WACC is unchanged at 11% and that there are still 10 million shares of stock outstanding.

(1) What is the company’s horizon value (i.e., its value of operations at Year 3)? What is its current value of operations (i.e., at Time 0)?

(2) What is its estimated intrinsic value of equity on a price-per-share basis?

g. If B&M undertakes the expansion, what percent of B&M’s value of operations at Year 0 is due to cash flows from Years 4 and beyond? (Hint: Use the horizon value at t 3 to help answer this question.

h. Based on your answer to the previous question, what are two reasons why managers often emphasize short-term earnings?

i. YouremployeralsoisconsideringtheacquisitionofHatfieldMedicalSupplies.Youhave gathered the following data regarding Hatfield, with all dollars reported in millions: (1) most recent sales of $2,000; (2) most recent total net operating capital, OpCap $1,120; (3)mostrecentoperatingprofitabilityratio,OP NOPAT Sales 45%;and(4)most recent capital requirement ratio, CR OpCap Sales 56%. You estimate that the growth rate in sales from Year 0 to Year 1 will be 10%, from Year 1 to Year 2 will be 8%, from Year 2 to Year 3 will be 5%, and from Year 3 to Year 4 will be 5%. You also estimate that the long-term growth rate beyond Year 4 will be 5%. Assume the operating profitability and capital requirement ratios will not change. Use this information to forecast Hatfield’s sales, net operating profit after taxes (NOPAT), OpCap, free cash flow, and return on invested capital (ROIC) for Years 1 through 4. Also estimate the annual growth in free cash flow for Years 2 through 4. The weighted average cost of capital (WACC) is 9%. How does the ROIC in Year 4 compare with the WACC?

j.What is the horizon value at Year 4? What is the total net operating capital at Year 0? How does the value of operations compare with the current total net operating capital?

k. What are value drivers? What happens to the ROIC and current value of operations if expected growth increases by 1 percentage point relative to the original growth rates (including the long-term growth rate)? What can explain this? (Hint: Use Scenario Manager.)

l. Assume growth rates are at their original levels. What happens to the ROIC and current value of operations if the operating profitability ratio increases to 5.5%? Now assume growth rates and operating profitability ratios are at their original levels. What happens to the ROIC and current value of operations if the capital requirement ratio decreases to 51%? Assume growth rates are at their original levels. What is the impact of simultaneous improvements in operating profitability and capital requirements? What is the impact of simultaneous improvements in the growth rates, operating profitability, and capital requirements? (Hint: Use Scenario Manager.)

m. What insight does the free cash flow valuation model provide regarding possible reasons for market volatility? (Hint: Look at the value of operations for the combinations of ROIC and gL in the previous questions.)

n. (1) Write out a formula that can be used to value any dividend-paying stock, regardless of its dividend pattern.

(2) What is a constant growth stock? How are constant growth stocks valued?

(3) What happens if a company has a constant gL that exceeds its rs? Will many stocks have expected growth greater than the required rate of return in the short run (i.e., for the next few years)? In the long run (i.e., forever)?

o. Assume that Temp Force has a beta coefficient of 1.2, that the risk-free rate (the yield on T-bonds) is 7.0%, and that the market risk premium is 5%. What is the required rate of return on the firm’s stock?

p.Assume that Temp Force is a constant growth company whose last dividend (D0, which was paid yesterday) was $2.00 and whose dividend is expected to grow indefinitely at a 6% rate. (1) What is the firm’s current estimated intrinsic stock price?

(2) What is the stock’s expected value 1 year from now?

(3) What are the expected dividend yield, the expected capital gains yield, and the expected total return during the first year?

q. Now assume that the stock is currently selling at $30.29. What is its expected rate of return?

r. Now assume that Temp Force’s dividend is expected to experience nonconstant growth of 30% from Year 0 to Year 1, 25% from Year 1 to Year 2, and 15% from Year 2 to Year 3. After Year 3, dividends will grow at a constant rate of 6%. What is the stock’s intrinsic value under these conditions? What are the expected dividend yield and capital gains yield during the first year? What are the expected dividend yield and capital gains yield during the fourth year (from Year 3 to Year 4)?

s. What is the market multiple method of valuation? What are its strengths and weaknesses?

t. What are the advantages of the free cash flow valuation model relative to the dividend growth model?

u. What is preferred stock? Suppose a share of preferred stock pays a dividend of $2.10 and investors require a return of 7%. What is the estimated value of the preferred stock?

Madisyn (Maddy) Whitfield, 25, has been a graduate student at a prestigious state school on the West Coast, studying for her master's degree in Health Psychology. She has attended school part-time because she must also work and allow enough time for all the hours of fieldwork mandated by her program.

Due to a chronic health condition, Maddy must be cautious about not overworking or overstressing herself, another reason for not attending school full-time. As a junior in high school, Maddy was diagnosed with Crohn's disease, a chronic inflammatory disease of the gastrointestinal tract. While there is no cure for Crohn's, there are several medications and life style modifications that can keep the disease in remission the majority of the time. It is normal for patients to experience cycles of remission and relapse and to go through the periods of flare-up with relatively few severe consequences. Without proper care, however, patients are more likely to experience flare-ups. The more severe and the more frequent the flare-ups, the higher the chances that the patient will require surgery because of permanent damage to the intestinal tract. Until a few years ago, Maddy had only experienced a few minor flare-ups of her disease. She had taken control of her health from the time of her diagnosis and was able to keep herself relatively healthy by seeing her Crohn's specialist regularly, taking the necessary medications, eating healthily, and exercising frequently.

Since graduating from college, however, Maddy's health has been declining. No longer covered under her father's PPO (preferred provider organization) health insurance, she stopped going for regular check-ups with her IBD (inflammatory bowel disease) doctor and could rarely afford the out-of-pocket expenses for medications. She had been able to continue her healthy eating habits and activity level while living at home, but since starting graduate school and moving away from home, that has not been the case. Time and money constraints do not allow Maddy to properly care for herself, and the stresses of school and her disease have contributed to her worsening flare-ups. In the past year she has been experiencing shorter and shorter periods of remission followed by longer periods of relapse. Unable to continue at the same pace, last month Maddy had to take a leave of absence from school, so that she could continue her job as a waitress and support herself.

Last week, Maddy began to experience excruciating lower back pain, chills, fever, malaise, and fatigue. Maddy had suspected kidney stones as this was a periodic occurrence; she had developed kidney stones in the past and assumed that these would pass just as the others had. She resisted going to the doctor because of her lack of health insurance. While it is not unusual for patients with Crohn's disease to develop kidney stones, because of Maddy's severe flare-ups, her body was so dehydrated and malnourished that the stones couldn't pass and only grew larger. She had eventually come to the point of being unable to eat or drink anything.

When her friends saw how rapidly she was declining they stepped in and brought her to the emergency room where routine blood and urine tests were done, and an abdominal x-ray was ordered. Based on her symptoms and health history, dehydration was suspected and nurses immediately started Maddy on IV fluids while they waited for all the test results to come in. Eventually, doctors determined that Maddy needed to be admitted. Not only was she dehydrated, but she was also severely malnourished. In addition, she had two very large kidney stones, which had caused an infection. Once she was admitted, nurses continued the IV fluids, started Maddy on IV antibiotics, and inserted an NG (nasogastric) feeding tube.

Maddy spent five days in the hospital until doctors were convinced that she could keep enough food and fluid in her system to remain sufficiently nourished. It was no mystery to Maddy why this crisis happened; she knew as well as the doctors that she needed to start taking her Crohn's medications again. She was discharged with strict instructions to follow up with her Crohn's specialist within the next few days and to start treatment accordingly. The nurses at the hospital also set up a pre-op appointment for surgery to remove the kidney stones. Because of the size and location of the stones, and the infection, the stones must be removed by percutaneous nephrolithotomy. In this procedure, a surgeon would make a small incision in Maddy's back, insert a hollow tube into her kidney, and remove the stones through the tube. Doctors had wanted to do the surgery while she was in the hospital, but Maddy refused, knowing that she could not afford to pay for the surgery. While the procedure is relatively minor, it does require anesthesia and a hospital stay of two or three days. It also requires a catheter be inserted into the kidney to allow it to drain and heal. Without health insurance, Maddy knew that covering the costs would be impossible, and she chose to leave AMA (against medical advice) to take some time to figure out a plan and decide what options were available to her, if any.

As she had already taken a leave of absence from school, given her current condition, Maddy decided to take some time off work and go home to stay with her family for a while. Although Maddy is close to her family, she has not told them about recent occurrences, and they have no idea that she spent several days in the hospital. Maddy's father recently lost his job, and her mom has only been able to find part-time work. They have been struggling for the past eight months to make ends meet, trying to raise their two other children on a part-time salary without any benefits. Maddy has been aware of the situation, and for that reason, has not wanted to bother her family with her situation. With nowhere else to turn, however, she now decides to go home to focus on recovering and figuring out what do from here.

Instructions

Read and analyze the case.

Use this form to document your critique of the case. Be sure to provide all of the information asked of you. Responses should be in MS Word, 12 point font, complete sentences and grammatically correct.

Submit your analysis to GA View on or before the due date listed on your schedule. Ten percent (10%) will be subtracted from your final grade for this critique, each day you are late.

Who is affected or at risk in this case? Who are the stakeholders?

Summarize their situation (e.g., health status, predicament).

Clarify, what is the ethical dilemma or conflict?

Identify a stakeholder involved in this case then clarify/summarize

Their position. (Which side of the dilemma or conflict do they take and describe what that position is.)

The ethical principle(s) and values that support their position. (These are principles and values from the book and lecture. You’ll need to state the principles or values and describe how they apply to and support the stakeholder’s position).

6. As a Healthcare Administrator, using an identified Code of Ethics, what would you decide? (See the Code of Ethics document on the Course Content site and let me know which Code you are using. Also describe your decision.).

7. Why? (Why did you come to this decision? Why do you think it’s the right decision and can you justify it?)

8. List 1 additional decision alternative. (Remember, there are more ways to address an ethical dilemma than one single decision. What might be an alternative way to address the ethical dilemma? – do not restate your original decision – provide a second decision that would be your ‘second choice’.)

Based on the attached Critical Incident, please complete the following questions:

2. Identify and discuss the specific environmental factor(s) that might be involved in this scenario. Make sure to consider the issues between Twin Restaurant Franchise, LLC and Chalak TP Waco, LLC. Give evidence to support your claim(s).

3. Identify the governing structures that exist in the relationship Twin Restaurant Franchise, LLC and Chalak TP Waco, LLC. Be specific and provide evidence to support your conclusions.

4. Identify and discuss the causes/sources of conflict between Twin Restaurant Franchise, LLC and Chalak TP Waco, LLC. Give evidence to support your claims.

5. Identify and discuss the bases of power between Twin Restaurant Franchise, LLC and Chalak TP Waco, LLC. Give evidence to support your claims.

Introduction

A dark day for Al Bhakta likely grew darker as he read the email from the PerkinsCole law firm. Twin Restaurant Franchise, LLC, (i.e., the franchisor) was giving legal notice of immediate termination of the franchise agreement with Al’s company, Chalak TP Waco, LLC. The legal action, in response to a biker brawl yesterday outside of his Twin Peaks restaurant in Waco, Texas, that resulted in nine deaths, seemed premature to Al. While he certainly felt the incident was tragic, he was frustrated by the franchisor’s sudden decision to terminate before all of the facts were known. The email also insinuated that his Harker Heights Twin Peaks location and four future locations were in jeopardy. With millions of dollars already invested in the Twin Peaks restaurant concept, Al wanted to remain a franchisee. Yet, the police, the public, and the franchisor seemed to place most of the blame for the tragedy upon his company rather than the bikers. Facing seemingly insurmountable odds, Bhakta quickly needed to decide whether to fight the legal action to close his restaurant or accept the contract termination.

The Aftermath of the Biker Brawl

The Waco Twin Peaks restaurant was a franchised location of the Twin Peaks chain of sixtyseven sports bar-style restaurants with log cabin décor based in Dallas, Texas. Similar to Hooters restaurants, the concept featured “scantily clad waitresses toting beer in frosted glasses” (Smith, 2015). Twin Peaks biker-friendly events were a nationwide program encouraged by the franchisor (Hirsch, 2015). On the morning of Sunday, May 17, 2015, bikers gathered at the Waco Twin Peaks restaurant for a brunch meeting. In attendance were members of rival biker clubs. At some point, a brawl broke out between the two clubs and fighting ensued inside and outside the restaurant (Campbell, 2015). Police had predicted trouble and had pre-positioned a marked SWAT vehicle and eighteen police officers on the premises (Hirsch, 2015). In the end, nine bikers were killed, 18 injured and 170 arrested (NBC 5 Dallas-Fort Worth, 2015). Jay Patel, operating partner at the Waco location, released the following statement that afternoon: "We are horrified by the criminal, violent acts that occurred outside of our Waco restaurant today. We share in the community's trauma. Our priority is to provide a safe and enjoyable environment for our customers and employees, and we consider the police our partners in doing so. Our management team has had ongoing and positive communications with the police and we will continue to work with them as we all want to keep violent crime out of our businesses and community. We will continue to cooperate with the police as they investigate this terrible crime.” (NBC 5 Dallas-Fort Worth, 2015) The following morning, Al received word that the Texas Alcoholic Beverage Commission had suspended the liquor license of the Waco Twin Peaks restaurant for the next seven days ((Texas Alcoholic Beverage Commission, 2015).…a decision not gone unnoticed by the franchisor. In addition, the City of Waco Police Department declared the restaurant a crime scene and closed the location indefinitely. News of the brawl dominated national media reports. As Al continued to read the communication from the PerkinsCole law firm, he focused on four paragraphs in the court filing, two of which quoted directly from his signed franchise agreement: Three days prior to the incident, Franchisee agreed in a telephone call with Franchisor to verify and enforce certain important priorities of Twin Peaks National, including implementing proper security measures to ensure the safety of the Waco restaurant’s guests and team members during the event…Lastly, Franchisor emphasized that responsible alcohol service should be monitored by Franchisee and ensure that management presence is felt by guests. You must immediately return to us…all copies of the manuals and production preparation materials in your possession or previously disseminated to your employees. You must promptly at your expense remove all Restaurant signage, displays or other materials in your possession at the Authorized location that bear any of the Marks…and so alter the appearance of the Restaurant as to differentiate the Restaurant unmistakably from duly licensed restaurants identified by the Marks. You acknowledge and agree that we have the right to establish quality standards regarding the business operations of Twin Peaks National® restaurants and stores to protect the distinction, goodwill, and uniformity symbolized by the Marks and the System. In the event your liquor license is suspended or revoked, in addition to our right to terminate this Agreement pursuant to Section 13.B, we reserve the right to charge you the Royalty Fee on the Gross Sales you would have received on the lost liquor sales during the license suspension (Twin Restaurant Franchise, LLC v Chalak TP Waco, LLC, 2015).

Al also discovered that the franchisor had released a public statement about the termination: From Twin Peaks Corporate Office: We are in the people business and the safety of the employees and guests in our restaurants is priority one. Unfortunately the management team of the franchised restaurant in Waco chose to ignore the warnings and advice from both the police and our company, and did not uphold the high security standards we have in place to ensure everyone is safe at our restaurants. We cannot tolerate the actions of this relatively new franchisee and have revoked their franchise agreement effectively immediately. Our sympathies continue to be with the families of those who died and are very thankful no employees, guests, police officers or bystanders were hurt or injured. 18 May 2015, 1:27 p.m. Facebook Post In response to the franchisor’s public statement, Leigh Strope, spokesperson for the franchisee made the following statement: “We are disappointed that the franchisor made a sudden decision to cancel our Waco franchise before all of the facts are learned,” (Campbell, 2015). Al Bhakta’s Dilemma Al Bhakta wanted to remain a Twin Peaks franchisee. He believed the Twin Peaks franchise system offered a profitable restaurant concept with a solid marketing plan. Al felt his Waco location had operated according to the franchisor’s policies and procedures. While the franchisor’s legal action focused on Waco, he also worried about the future of his area development agreement to open a total of six locations (Campbell, 2015). Besides an initial $50,000 franchise fee and ongoing royalty fees, several million dollars were required to build and operate a unit. To date, two restaurants had been built, Waco and Harker Heights. Though the franchisor appeared to have the right to terminate the agreement, Al felt a court judge might sympathize with his company’s plight. He hastily began writing a list of important points to discuss with his own legal team and contemplated various courses of action he might take in response to franchisor’s legal action.

QUESTION 14

Leber’s hereditary optic neuropathy is a condition that leads to blindness. It results due to a lack of chemical energy (ATP) in certain cells of the eye. Based on your knowledge, the organelle responsible for this disease is the _______________.

	A.	cell membrane
	B.	mitochondria
	C.	ribosome
	D.	cytoplasm

  

QUESTION 15

A man has a sister and a mother with albinism, an autosomal recessive disorder. The man (who is not ablino) has a child with a homozygous dominant (normal) woman. The chance that their child does NOT have the disease is _________.

	A.	0%
	B.	25%
	C.	50%
	D.	75%
	E.	100%

  

QUESTION 16

If an individual expresses a dominant disease, which of the following is true?

		All of his children will always inherit the disease.
		He will pass this disease to all of his daughters.
		There is at least a 50% probability that his children will inherit the disease.
		There is a 100% possibility that his sons will inherit this disease.

  

QUESTION 17

Freckling is a dominant characteristic. Which of the following crosses can produce individuals that exhibit a recessive phenotype?

	A.	Ff X FF
	B.	FF X ff
	C.	FF X Ff
	D.	Ff X Ff

  

QUESTION 18

If a true-breeding tall pea plant is crossed with a tall pea plant of unknown parentage. Which of the following is correct?

		All of the offspring (F1) will be short.
		Over several generations, no short individuals will appear.
		Some short individuals may appear in the F2 generation.
		Some of the F1 generation will be short.

  

QUESTION 19

If a heterozygous dominant tall pea plant is crossed with a short pea plant, what is the expected phenotypic ratio of tall:short plants?

		1:1
		1:2
		3:1
		all tall

  

QUESTION 20

Some cats are white, which is a dominant trait (W allele). Other cats are not white (they can be any other color). This is recessive. Which of the following is a black cat?

	A.	B-
	B.	BW
	C.	ww
	D.	W-

  

QUESTION 21

Morgan buys a male python from a snake dealer who tells him that the snake carries the albino allele. What is the most effective way for Morgan verify this statement?

		Breed the snake with a heterozygous female.
		Breed the snake with a homozygous normal female.
		Breed the snake with a female sibling.
		Breed the snake with a homozygous recessive albino female.

  

QUESTION 22

In a monohybrid cross, how many traits are examined?

		1
		2
		3
		4

  

QUESTION 23

In a one-trait test cross, the phenotype that disappears in the F1 generation is the -

		dominant trait.
		negative trait.
		recessive trait.
		heterozygote.

  

QUESTION 24

Allele is defined as _________________.

	A.	a recessive trait
	B.	a dominant trait
	C.	an alternate form of a gene
	D.	two genes that have identical traits

  

QUESTION 25

A cow with black and white patches is produced from a white bull and a black cow. This is an example of -

		incomplete dominance.
		codominance.
		dominance/recessive trait.
		polygenic.

  

QUESTION 26

Recessive phenotypes are "recessive" because ____________________.

	A.	people with these traits are easily dominated by other people
	B.	"recessive" refers to the fact that a lower case letter is used to represent the allele
	C.	an individual must possess two recessive alleles to exhibit the recessive phenotype
	D.	the allele is deeply recessed within the gene on the chromosome

  

QUESTION 27

Sickle cell disease is caused by a single mutation in the DNA of a particular gene. A person with this disease has red blood cells that lose their original donut shape and form a sickle shape. People with this disorder suffer from low energy levels, blood clots, and strokes. This is an example of -

		a multifactorial trait.
		polygenic inheritance.
		pleiotropy.
		codominance.

  

QUESTION 28

If both parents express a particular trait, but their child does not, what does this indicate about the trait?

		The trait is sex-linked dominant.
		The trait is sex-linked recessive.
		The trait is an autosomal recessive trait.
		The trait is an autosomal dominant trait.

  

QUESTION 29

A male is always homozygous for a trait that is -

		codominant.
		X-linked.
		autosomal.
		dominant.

  

QUESTION 30

Polydactyly (many digits) is a dominant condition. A person who has the genotype Pp will exhibit __________.

	A.	no fingers
	B.	5 fingers on each hand
	C.	2.5 fingers on each hand
	D.	more than 5 fingers on a hand

  

QUESTION 31

"Phenotype" is another word for _____________.

	A.	appearance
	B.	behavior
	C.	DNA
	D.	allele

  

QUESTION 32

A small segment of DNA that contains the specific code for a specific trait is known as a(n) _____________.

	A.	organism
	B.	genotype
	C.	chromosome
	D.	gene

  

QUESTION 33

Which of the following would not be a viable (alive) offspring?

	A.	XO
	B.	YO
	C.	XXY
	D.	A and B

  

QUESTION 34

Which of the following human syndromes is a monosomy?

	A.	Turner syndrome
	B.	Klinefelter syndrome
	C.	Down syndrome
	D.	Swyer syndrome

  

QUESTION 35

A genetic profile includes -

		the location of all known genes in the human genome.
		the entire base sequence of an individual's genome.
		all of an individual's normal genes.
		an individual's complete genotype, including mutations.

  

QUESTION 36

Preimplantation diagnosis is performed on _______________.

	A.	a sperm or egg from a person with fertility problems
	B.	a woman before she attempts pregnancy
	C.	a fetus, prior to birth
	D.	an early , 8 celled, embryo

  

QUESTION 37

In hemoglobin, the shift from glutamic acid to valine is considered what type of mutation?

		point mutation
		frameshift mutation
		deletion
		duplication

  

QUESTION 38

The technique of ultrasound provides a picture of the _____________________.

	A.	genes
	B.	mother
	C.	chromosomes
	D.	fetus

  

QUESTION 39

Inversions are chromosomal mutations that -

		always result in a syndrome.
		neither increase nor decrease the amount of genetic material in the cell.
		result from duplication of a portion of a chromosome.
		never disrupt gene regulation or cause physical abnormalities.

  

QUESTION 40

Which of the following syndromes is caused by a translocation?

	A.	Turner syndrome
	B.	Cri-du-chat syndrome
	C.	Down syndrome
	D.	Alagille syndrome

  

QUESTION 41

A tube placed through the female sex organ into the uterus to obtain a small sample of tissue is characteristic of ______________________.

	A.	chorionic villus sampling (CVS)
	B.	embryonic stem cell analysis
	C.	amniocentesis
	D.	genetic counseling

  

QUESTION 42

The sperm and egg of alligators contain 16 chromosomes each. A fertilized egg that will develop into a baby alligator contains _________________.

	A.	16 chromosomes
	B.	32 total chromosomes
	C.	8 homologous chromosomes
	D.	64 chromosomes

  

QUESTION 43

A parent has a deletion on one homologue of a pair of chromosomes. What is the probability of this individual's child carrying the same deletion?

		0%
		25%
		50%
		75%

  

QUESTION 44

A karyotype shows chromosomes arranged by -

		banding patterns, size, and shape.
		shape, size, and complexity.
		length, structure, and color.
		color, width, and length.

  

QUESTION 45

What kinds of mutations can be revealed through ultrasound?

		Some chromosomal abnormalities, such as Down syndrome and Edwards syndrome, and a few other known inherited disorders
		The genetic profile, including any mutant gene alleles the fetus may have.
		All chromosomal mutations, including deletions, duplications, inversions, and translocations.
		Only larger chromosomal mutations, such as the large deletion seen in individuals with cri du chat syndrome.

  

QUESTION 46

A person without a Y chromosome is always:

	A.	not able to be born (miscarried)
	B.	an abnormal male
	C.	a person with 45 ½ chromosomes
	D.	a female

  

QUESTION 47

A translocation chromosomal mutation is the exchange of segments between two homologous chromosomes.

True

False

  

QUESTION 48

A missing piece of chromosome 5 may result in a child whose glottis and larynx do not develop properly resulting in an abnormal cry. This is called -

		inv dup 15 syndrome.
		Klinefelter syndrome.
		Huntington syndrome.
		Cri du chat syndrome.

  

QUESTION 49

Chromosome number 1 is the ____________________.

	A.	most important chromosome
	B.	most of mutated chromosome
	C.	longest chromosome
	D.	only chromosome that is not paired

  

QUESTION 50

Chorionic villus sampling carries less risk of causing miscarriage than amniocentesis.

	A.	True
	B.	False

Below is the extract of a research

Qualitative Design

The philosophical underpinnings of qualitative studies include perspectives of phenomena and a consideration for multiple realities held by different individuals (Munhall, 2010). The outcomes of qualitative research rely heavily on the information provided by those with subject experience related to the study (the participants), providing data through first- person narratives (Munhall, 2010). The acquisition of contextualized, multi-faceted descriptions enrich the understanding of a phenomenon (Holloway & Wheeler, 2010). In contrast, a quantitative study focuses on collecting numerical data to validate hypotheses and draw generalizations (Maltby Williams, McGarry, & Day, 2013).

Phenomenology is based on the idea that understanding a phenomenon is attainable through the subjective perceptions of people who underwent the experience being studied (Flood, 2010). Phenomenological studies emphasize that the person is fundamental to the environment; therefore, researchers must focus on individual perceptions (Flood, 2010; James, Cottle, & Hodge, 2010). The purpose of phenomenological research is often to describe the participants’ experiences with the phenomena, the interpretations of these experiences, and the meaning of those experiences to the participants (Sissolak, Marais, & Mehtar, 2011). This study investigated the phenomenon of elderly patients’ perceptions of pain 48 hours after undergoing ORIF surgery.

The study used a qualitative descriptive phenomenological approach to explore the following two research questions: (a) What are the perceptions of pain and pain management of patients between 65 and 75 years of age 48 hours after ORIF surgery? (b) What are the perceptions of adaptation for patients between 65 and 75 years of age after ORIF surgery?Husserl’s (1970) descriptive approach was selected because it used knowledge development that could effectively achieve the objectives of this inquiry and supplement what was already known regarding the phenomenon under investigation. The philosophical underpinnings of qualitative studies include perspectives of phenomena and a consideration for the multiple realities held by different individuals (Munhall, 2010).

Data Collection and Instrumentation

The study integrated a pilot study into the methodology, which explored one research question: What are the perceptions of pain and adaptation of patients 65 and 75 years of age after open reduction and internal fixation surgery? The pilot study was conducted with four patients, who answered 11 interview questions. Results of the pilot study were used to validate the appropriateness of the research questions.

Before conducting any data collection procedures, a letter of cooperation was received from the hospital prior to seeking Institutional Review Board (IRB) approvals from the University of Phoenix and the hospital. This facilitated the appropriate access to hospital records to identify the patients who had ORIF surgery within the specified period of the study. I sought self and peer monitoring to adhere to HIPPA laws. No participant information was left unattended and all documents pertaining to the study were confidential. Once IRB from the University of Phoenix and the hospital were approved, data collection started with recruiting participants for the study. An introductory and recruitment letter was sent to the patients and the orthopedic surgeons asking for assistance in finding candidates who were suitable for the study. Information on patients who had ORIF was obtained from the patients' charts. The patients consented to disclosing their identities and surgeries to a researcher. The participants were approached after their procedures, and informed consent and interviews were scheduled at the patient’s convenience. No patient was asked to sign an informed consent or beinterviewed while under the influence of pain medication.

Data collection was conducted as a one-on-one recorded personal interview and was facilitated by a semi-structured interview guide composed of ten open-ended questions, which made up the Pain Perception Interview Questions (PPIQ). A closing semi-structured question ("Do you have anything else to add?") was added to facilitate further information gathering or clarification. Interviews were one hour long and took place in the participant’s room. Questions focused on the perceptions of pain and pain management 48 hours after ORIF surgery and adaptation after ORIF as narrated in participants’ own words.

Population and Sampling

Prior to data collection, each participant reviewed and signed a consent form and received information about the reasons for the study. Before the start of each interview, participants were made aware that they could discontinue the interview if they experienced pain and if their healthcare provider entered the room. One of the most important responsibilities of a researcher of human subjects is to ensure informed consent of any participants. Research cannot be undertaken without this consent. Informed consent gave the researcher permission to delve into private areas of a human subject’s life and enter a person’s emotional, physiological, intellectual, or other very intimate arena that must be protected. I transcribed all information obtained from the participants and I was the sole individual with access to the participant information. At the conclusion of the study, all information, including audio recordings and field notes, were locked in an encrypted secure electronic database.

A total of 12 participants was recruited from a community primary care hospital that conducted an average of 12 ORIF surgeries monthly. Ten participants met the study’s inclusion criteria: (a) age between 65 and 75 years; (b) have undergone ORIF surgery in the past 48 hours, (c) speak and understand English fully; and (d) should not exhibit any form of mental illnesses. The concepts of diminishing returns and saturation in qualitative studies were considered when determining the sample size for the study.

Data Analysis

The use of NVivo 10.0 (QSR International) to process the data collected from the interviews enhanced categorizing statements and emerging themes. The modified Van Kaam (1969) method, based on Husserl’s (1970, 2012) philosophy, was used to analyze the data collected. Van Kaam’s method requires that intersubjective agreement be reached with other expert judges. Roy’s four modes of adaptation -- physical, self-concept, role function, and interdependence -- were used to determine adaptation responses (AR) and ineffective responses (IR) of participants based on responses to the PPIQ. Van Kaam’s (1969) approach in the phenomenological generation and analysis of data has been frequently utilized by nurse researchers because of its rigor in accomplishing accurate results from studies.

Using Moustakas' (1994) seven-step approach in conjunction with the NVivo© 10 software, participants were interviewed, and textual datum collected and analyzed to discern themes that developed from the data. Additionally, a descriptive analysis was conducted regarding the differences between the participants’ responses. Analysis involved comparing the invariant constituents that was revealed within the main themes.

The coding process utilized the NVivo© 10 software that has the capability to list the key words and phrases emerging from the transcripts of the participants. For instance, key words identified in interview question one was (a) personal, (b) different, and (c) self. This list of words and phrases guided me to identify specific codes that were then re-uploaded in NVivo© 10 for code grouping. For instance, the key word “personal” was identified as “differences of pain.” The grouped codes served as the basis for determining the themes. These themes were refined from the coded text to reflect the themes critical to the central question.

The preliminary grouping was coded by the following: (a) experiences of pain, (b) perceptions of pain, (c) failure of pain management, (d) understanding pain management options, (e) involvement mechanism in pain management, (f) factors affecting caregiver interaction, (g) meanings of adaptation, and (h) recommendations of pain management. These groupings were then utilized to understand the lived experiences of elderly concerning pain management.

Question:

a) Please illustrate the methodology used in this qualitative study

b) Describe the application of the methodology stated above in qualitative research study

Nike

Nike hit the ground running in 1962. Originally known as Blue Ribbon Sports, the company focused on providing high quality running shoes designed for athletes by athletes. Founder Philip Knight believed high-tech shoes could be sourced from overseas at competitive prices. Nike’s commitment to designing innovative footwear for serious athletes, helped it build a cult following among US consumers. Nike believed in a ‘pyramid of influence’ in which the preferences and testimonial of top athletes influenced the product and brand choices of others. From the start its marketing and advertising campaigns featured accomplished athletes: in 1985 basketballer Michael Jordan was signed up, albeit then as a rookie.

In 1988 the ‘Just Do It’ campaign was launched. The campaign subtly challenged a generation of athletic enthusiasts to chase their goals. It was a natural manifestation of Nike’s attitude to self-empowerment through sports.

Nike began expanding overseas. In Europe it found that its US-style ads were seen as too aggressive. To authenticate its brand in Europe it focused on soccer and became active as a sponsor of youth leagues, local clubs and national teams. Further pursuing its strategy of professional endorsements, Nike decided to sponsor the Brazilian soccer team, which turned in to a big break when they won the World Cup in 1994. In 2007, Nike acquired Umbro a British maker of soccer-related footwear, apparel and equipment. This acquisition helped to boost Nike’s presence in soccer.

Continuing overseas expansion, China became a focus during the 2008 Olympics in Beijing. Although Adidas was the official sponsor, Nike received special permission from the International Olympic Committee to run Nike ads featuring Olympic athletes during the games and sponsored most of the Chinese teams. Some believed Nike’s marketing strategy during the Olympics was more effective than Adidas’s Olympic sponsorship.

Through the 1990s Nike moved into baseball, football, cycling, volleyball, hiking, soccer and then golf. During this time it developed a repeatable growth strategy[1]. Athletic shoes continued to be the core starting point but Nike then quickly moved into adjacent segments: into apparel and then equipment.

Internally Nike marketers adopted the three-word brand mantra: authentic athletic performance, to guide their marketing efforts. Its entire marketing program must reflect these brand values. Nike has expanded its brand meaning form ‘running shoes’ to ‘athletic shoes’ to ‘athletic shoes and apparel’ to ‘all things associated with athletics including equipment’. However it is always guided by the brand mantra. For example, as Nike rolled out its successful apparel line, the product had to be innovative enough through material, cut and/or design, to truly benefit top athletes.

Expanding into new categories and then new segments required the company to forge new distribution channels and lock in suppliers. Nike has pursued a selective distribution strategy. It pulled its product from the retail chain Sears when they acquired discount chain Kmart, to make sure Kmart did not carry the brand.

Expanding into new product categories meant new endorsements including Tiger Woods for golf. In tennis, John McEnroe was its first brand star in 1986. More recently Nike has aligned with Maria Sharapova, Roger Federer and Rafael Nadal. Some called the 2008 Wimbledon final between Federer and Nadal – both dressed in swooshes from head to toe – a 5-hour commercial valued at $10.6 million.

Nike has an unfortunate history of associating with some athletes who attract adverse publicity. In the 6 months following Tiger Woods highly publicised personal scandal, Nike lost over 100,000 customers[2] and although several sponsors cut ties with Woods, Nike did not. Nike did however terminate is contract with disgraced cyclist Lance Armstrong once the doping evidence became ‘seemingly insurmountable’. Oscar Pistorius is the latest example of a Nike endorsement that could turn sour.

Nike has also attracted adverse publicity regarding its offshore facilities; centring on working conditions and low wages, with media accusations of exploitation. Whilst Nike has assumed a policy of reformation for its abuses, the issue became, and continues to be, a recurring public relations nightmare for Nike.

NikeiD (rebranded as Nike by You) is a service provided by Nike allowing customers to customise and design their own Nike merchandise. This was launched in 1999 through the Nike website. Delivery is offered too many countries but not currently to Australia and New Zealand; here on-line local companies may act as local distributors for customised Nike products.

Basketball superstars have continued to feature in Nike’s promotions. In addition it formed a partnership with Foot Locker to create a new chain of stores in the US, House of Hoops by Footlocker, which offers only basketball products by Nike sub-brands such as Converse and Jordan.

Recently, Nike’s lead in the running category has grown to 60% market share, thanks in part to its exclusive partnership with Apple. Nike+ technology includes a sensor that runners put into their running shoes and a receiver, which fits into an iPod, iTouch, or iPhone. Then the athlete goes for a run or hits the gym, the receiver captures his or her mileage, calories burned, and pace, and stores it until the information is downloaded. Nike+ is now considered the world’s largest running club.

In 2008 and 2009, Nike+ hosted the Human Race 10K, the largest and only global virtual race in the world. The event, designed to celebrate running, drew 780,000 participants in 2008 and surpassed that number in 2009. To participate, runners register online, gear up with Nike+ technology, and hit the road on race day, running any 10K route they choose at any time during the day. Once the data is downloaded from the Nike+ receiver, each runner’s official time is posted and can be compared to the times of runners from around the world.

Like many companies, Nike is trying to make its companies and products more eco-friendly. However Nike does not focus on promoting this. As one brand consultant explained: ‘Nike has always been about winning. How is sustainability relevant to its brand?’ Nike executives agree that promoting an eco-friendly message would distract from its high-tech image, so efforts like recycling old shoes into new shoes are kept quiet.

As of 2020 Nike continues to dominate the athletic footwear market with a 50% world market share. Swooshes abound on everything from wristwatches to skateboards to swimming caps. The company’s long term strategy focuses on basketball, running, soccer/football, women’s fitness, men’s training and sports culture. As a result of its successful expansion across geographical markets and product categories, Nike is the top athletic apparel and footwear manufacturer in the world, with annual corporate revenues exceeding $39 billion.

These questions are compulsory and relate to the Nike case (on pages 3 and 4 of exam). Read the case and answer the following questions.

1. Evaluate all aspects of Nike’s marketing strategy. Within your evaluation, explain fully the reasons for success – or failure. Conclude your evaluation with a summary bullet point list of i) strengths, and ii) weaknesses.
2. You are contemplating accepting a consultancy with Nike’s rival Adidas to help them hone their marketing strategy to compete with Nike
3. 1. You have a meeting scheduled with two of Adidas’s senior accountants who are suspicious of the value of marketing. You have been asked to present to them: Your ‘Top 5’ - that is 5 key marketing points that should contribute to marketing success with a brief explanation of each. (5 marks)
4. 2. In light of your evaluation of Nike’s marketing strategy, outline some marketing strategy recommendations, with rationale, that Adidas may consider.

Master Budget Case: Wooden Pull Toys Inc. Wooden Pull Toys Ltd. is a company that manufactures and sells a single product, which they call a Baby Turtle. For planning and control purposes they utilize a quarterly master budget, which is usually developed at least six months in advance of the budget period. Their fiscal year end is December 31. During the summer of 2019, Jimmy C., the Wooden Pull Toys controller, spent considerable time with Fanny L., the Manager of Marketing, putting together a sales forecast for the first quarter of next year (January to March, 2020). Unfortunately, their collaboration worked so well they eloped to Niagara, ON, were married and settled down. Prior to their departure they e-mailed letters of resignation and a cryptic sales forecast to the President of Wooden Pull Toys. Their sales forecast consisted of these few lines: • For the year ended December 31, 2019: 475,000 units at $11.00 each* • For the year ended December 31, 2020: 500,000 units at $11.00 each • For the year ended December 31, 2021: 500,000 units at $11.00 each *Expected sales for the year ended December 31, 2019 are based on actual sales to date and budgeted sales for the duration of the year. Wooden Pull Toys’ President felt certain that the marriage wouldn’t last, and expected Chris would be back any day. But the end of the year is quickly approaching, and there is still no word from the desert. The President, desperately needing the budget completed, has approached you, a management accounting student, for help in preparing the budget for the first quarter. Your conversations with the President and your investigations of the company’s records have revealed the following information: 1. Sales of Baby Turtles are seasonal. History shows that January, March, May and June are the slowest months with only 5% of sales for each month. Sales pick up over the summer with July, August and September each contributing 6% to the total. Valentines Day in February boosts sales to 10%, and spring break in April accounts for 7%. As Christmas shopping picks up momentum, winter sales start at 10% in October, move to 15% in November and then peak at 20% in December. This pattern of sales is not expected to change in the next two years. 2. From previous experience, management has determined that an ending inventory equal to 25% of the next month’s sales is required to fit the buyer’s demands. 3. There is only one type of raw material used in the production of Baby Turtles. R700 is a very compact material that is purchased in powder form. Each Baby Turtle requires 5 kilograms of R700, at a cost of $0.45 per kilogram. The supplier of R700 tends to be somewhat erratic so Wooden Pull Toys finds it necessary to maintain an inventory balance equal to 40% of the following month’s production needs as a precaution against stock-outs. Wooden Pull Toys pays for 20% of a month’s purchases in the month of purchase, 45% in the following month and the remaining 35% two months after the month of purchase. There is no early payment discount. 4. Beginning accounts payable will consist of $167,084 arising from the following estimated direct material purchases for November and December of 2019: R700 purchases in November 2019: $173,953 R700 purchases in December 2019 $132,750 5. Wooden Pull Toys’ manufacturing process is highly automated, so their direct labour cost is low. Employees are paid on a per unit basis. Their total pay each month is, therefore, dependent on production volumes and averages $9.00 per hour. This rate already includes the employer’s portion of employee benefits. All payroll costs are paid in the period in which they are incurred. Each unit spends a total of 18 minutes in production. 6. Due to the similarity of the equipment in each of the production stages and the company’s concentration on a single product, manufacturing overhead is allocated based on volume (i.e. the units produced). The unit variable overhead manufacturing rate is $1.30, consisting of: Utilities--$0.60; Indirect Materials--$0.20; Plant maintenance--$0.30; environmental fee--$0.14; and Other--$0.06. 7. The fixed manufacturing overhead costs for the entire year are as follows: Training and development $ 43,200 Repairs and maintenance 39,000 Supervisors’ salaries 149,400 Depreciation on equipment 178,800 Plant Insurance 96,000 Other 117,600 $ 624,000 • The annual insurance premium of $96,000 will be paid at the beginning of January. There is no change in the premium from last year. • All other “cash-related” fixed manufacturing overhead costs are incurred evenly over the year and paid as incurred. • Wooden Pull Toys uses the straight line method of depreciation. 8. Selling and administrative expenses are known to be a mixed cost; however, there is a lot of uncertainty about the portion that is fixed. Previous years’ experience has provided the following information: Lowest level of sales: 375,000 units Total Operating Expenses: $778,710 Highest level of sales: 750,000 units Total Operating Expenses: $1,022,460 These costs are paid in the month in which they occur. Not included in the above expenses is bad debt expense. 9. Sales are on a cash and credit basis, with 55% collected during the month of the sale, 35% the following month, and 9.5% the month thereafter. ½ of 1% of sales are considered uncollectible (bad debt expense). 10. Sales in November and December 2019 are expected to be $783,750 and $1,045,000 respectively. Based on the above collection pattern this will result in Accounts Receivable of $539,481 at December 31, 2019 which will be collected in January and February, 2020. 11. During the fiscal year ended December 31, 2020, Wooden Pull Toys will be required to make monthly income tax installment payments of $1,500. Outstanding income taxes from the year ended December 31, 2019 must be paid in March 2020. Income tax expense is estimated to be 25% of net income. Income taxes for the year ended December 31, 2020, in excess of installment payments, will be paid in March, 2021. 12. Wooden Pull Toys is planning to acquire additional manufacturing equipment for $304,200 cash. 40% of this amount is to be paid in January 2020, the rest, in February 2020. The manufacturing overhead costs shown above already include the depreciation on this equipment. 13. An arrangement has been made with the local bank that if Wooden Pull Toys maintains a minimum balance of $20,000 in their bank account, they will be given a line of credit at a preferred rate of 6% per annum. All borrowing is considered to happen on the first day of the month, repayments are on the last day of the month. All borrowings and repayments from the bank should be in multiples of $1,000 and interest must be paid at the end of each month. Interest is calculated on the balance at the beginning of the month, which includes any amounts borrowed that month. 14. Wooden Pull Toys Ltd. has a policy of paying dividends at the end of each quarter. The President tells you that the board of directors is planning on continuing their policy of declaring dividends of $50,000 per quarter.   15. A listing of the estimated balances in the company’s ledger accounts as of December 31, 2019 is given below: Cash $ 64,165 Accounts receivable 539,481 Inventory-raw materials 28,125 Inventory-finished goods 45,625 Capital assets (net) 724,000 $ 1,401,396 Accounts payable $ 167,084 Income tax payable 21,500 Capital stock 1,000,000 Retained earnings 212,813 $ 1,401396 ________________________________________ Required: Prepare a master budget for Wooden Pull Toys for the first quarter (January, February and March) of the year ending December 31, 2020, including the following schedules: Ending Finished Goods Inventory Budget Selling and Administrative Expense Budget Cash Budget Prepare a budgeted income statement for the quarter ended March 31, 2020. Prepare a budgeted balance sheet at March 31, 2020.

CASE 11: Inappropriate Client Behavior

The management of Peak Performance Health and Wellness Club has received several emails and verbal complaints about an unidentified male club member allegedly masturbating while using the equipment in the club. The only description they have of the accused is that he is an older, white male with glasses. Jim Roberts is a personal trainer and is just about to start a morning session with a client. A young woman he knows and trusts comes up to Jim with a frantic expression. “Come quickly.” She can barely get the words out. “There’s a man on the stationary bike who is staring at a woman’s chest and masturbating.” Jim excuses himself from his session and goes to see for himself. The member points out the accused male, and Jim immediately contacts his department head and another male trainer, just in case there’s an incident. Jim taps the accused member on the shoulder. “Can I have a word with you?” The older man agrees, and they step over to the side. Jim knows this man and has had conversations with him in the past regarding his joint surgery and his postoperative rehabilitation. Jim believes he should be able to get to the bottom of this matter quickly. “A member reported to us that you were touching yourself inappropriately.” “What’s inappropriate? Your definition of inappropriate and mine might be completely different!” “Were you fondling yourself?” “What’s fondling? I don’t know what that means.” “You had your hands in your pants.” He shrugs. “So, we have to adjust ourselves. I can have my hand in my pants.” At this point Jim becomes frustrated and just comes out and asks, “Were you masturbating?” The member becomes very defensive and says, “I never do that, I can’t believe you accused me of that, I’m offended !” Jim asks the man to stay where he is. He knocks on the general manager’s (GM) door and quickly fills him in on the situation. Jim and his team escort the accused member to the GM’s office. The GM repeats the same line of questioning, and the man gives verbatim answers to the ones he gave Jim. Eventually, the GM gets as frustrated as Jim was and asks, “Were you masturbating?” The man puts his hand on his chest and an indignant expression on his face. He shouts, “I NEVER DO THAT! I demand to face my accuser; I have the right to face my accuser. I’ve been a member since this club opened! I can’t believe that you would suggest this.” At this point the GM is not amused or buying his story. He simply tells the man his membership will be on suspension pending an investigation. The member continues to argue but eventually calms down. He then asks, “How will you let me know your decision?” The GM tells him that the club will call him. “Can you e-mail me instead? Let me give you my personal e-mail.” The GM agrees and tells him that he’ll have to leave. After the member leaves, the GM tells Jim to close the door. He looks at Jim with a wry smile and says, “That guy is so guilty. He wants me to e-mail him privately so his wife won’t find out.” Jim goes upstairs with his boss to speak with the female member who reported the incident. When he finds her, she is with another female member. The second female member tells Jim that he was the same man that she saw masturbating on a treadmill and wrote an email about. Jim’s boss takes statements from the two female members so Jim can return to his now shortened session with his client.

CASE WRITE UP (PLEASE INCLUDE)

1 - Write a background statement

2- What are the major problems and secondary issues?

3- Your Role

4- Organizational Strengths and Weaknesses

5- Alternatives and Recommended Solution

6- Evaluation

THEIR IS AN EXAMPLE BELOW OF HOW THIS SHOULD LOOK!!!!

Case Write-Up

Background Statement

A Wiccan patient who visited a nondenominational community hospital was discussing her religious beliefs with her primary care nurse, Penny Baker, when suddenly another nurse, Ruth Goose, walked into the conversation and rudely stated, “Thou shalt not suffer a witch amongst you.” The Wiccan nurse felt offended and complained that she was discriminated in the hospital because of her religious beliefs.

Major Problems and Secondary Issues

The major problem is that the two nurses, Penny Baker and Ruth Goose, made the patient feel unwelcomed in the nondenominational community hospital because of her Wiccan religious beliefs. The secondary issues that the nondenominational community hospital may face is that the Wiccan patient is threatening to go to the media. This means that there may be news coverage that your hospital engages in religious discrimination. This may make people, especially Wiccans, look down on your medical services.

Your Role

In this case, I am the Vice President of Nursing Services. As stated in the text, it writes, “You are the Vice President of Nursing Services in a nondenominational community hospital, and you receive a complaint from a patient, who is a Wiccan.” The advantages of this role are that I can sit down with Penny and Ruth to let them know that religious discrimination is not to be tolerated while we are caring for the patients. The disadvantages of this role are that I must decide how I am going to discuss this matter with Penny and Ruth because they’re passionate about being against the Wiccan patient. I need to let Penny and Ruth know that our patient’s care matters above everything else, not what religion they practice.

Organizational Strengths and Weaknesses

As the Vice President of Nursing Services, my strengths are that I can hold a training on racial, ethnic, and religious diversity. This training can supplement nurses with the information they need to work in a diverse environment. Nurses need to know that they must treat their patients justly despite their identity. The weaknesses I may face are that the two nurses are very religious themselves. They may not listen to what I have to say about religious discrimination because the two nurses try to justify their act by saying, “She did the right thing. We don’t have to pray with witches. They worship Satan. It’s blasphemy. What’s next? Human sacrifice?”

Alternatives and Recommended Solution

As a solution for this problem, I will make sure to provide all the nurses working in the hospital with diversity training. It is important that I sit down with the nurses and make it clear that discrimination will not be tolerated while they are working in our hospital. I can also offer every patient visiting the hospital with a survey. The patient can fill out the survey to let us know how they felt about their stay. Nurses who’ve been accused of any sort of discrimination, will have to speak with management. We would keep these incidences of discrimination in a file, and it the dilemma does not change, I would have to begin writing up the nurses. Discrimination would not be tolerated while the patient is in the hospital trying to recover from a medical condition. I would also recommend Penny and Ruth write an official letter of apology to the Wiccan patient before she decides to go to the media. Writing the official letter of apology would be my first recommended solution to Penny and Ruth, so that the patient does not feel unwelcomed to our hospital’s services in the future.

Evaluation

If there are enough surveys to prove that our medical treatment is getting better and there are less patients coming from the patients about discrimination, then I would know that the instances of discrimination have stopped. The goal is to aid in the medical recovery of patients. Patients must also feel welcomed to our hospital services despite their identity. By getting fewer, or even better, no discrimination complaints, I would know that my diversity trainings and meetings have worked.