1. Apple’s Worldwide Revenues from 2004 to 2019 is as follows:

1. Enter the data above into the tab labeled Apple. Graph the data in Excel and use your graph to determine what kind of time series pattern exist. Put your answer in your spreadsheet.
2. Make the following forecasts for 2020. For all of them, use Mean Squared Error to determine which of the forecasts is the best. Make sure your answers are clearly labeled.
   1. Naïve forecast from one prior time period
   2. Calculate a 4-period moving average
   3. Calculate a 3-period moving average with the following weights for time t: time period t-1=0.8, t-2 = 0.15, t-3=.05
3. In the tab called Apple Smoothing, use the data from 3. to forecast 2020 using an alpha equal to 0.7, 0.8, and 0.9. Using MSE, which one offers the best estimate for 2020?
4. In the tab called Apple Regression, use the information from 3. and run a regression to determine your forecast for 2020
   1. Put your regression output in F1 of the same workbook.
   2. Calculate what your forecast is for 2020 in F21.
   3. How does well does this regression equation predict revenue? Write your answer in F22. In addition, explain what your numerical answer means in words.

PLEASE PROVIDE STEP BY STEP AND FORMULAS FOR EXCEL, THANK YOU

Pop Inc. reported income from continuing operations before taxes during 2020 of $463,000.

Additional transactions occurring in 2020 follows:

1. The corporation experienced an uninsured hurricane loss in the amount of $130,000 during the year.

2. At the beginning of 2018, the corporation purchased equipment for $62,000 (salvage value of $6,000) that had a useful life of 10 years. The bookkeeper used straight-line depreciation for 2018, 2019, and 2020 but incorrectly used a 7 year useful life in determining the deprecation amount. (treat this error as a prior period adjustment)

3. Sale of securities held as a part of its portfolio resulted in a gain of $40,000 (pretax).

4. When its chairman of the board died, the corporation realized $500,000 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of $410,000 (the gain is nontaxable).

5. The corporation disposed of its consumer division at a loss of $210,000 before taxes. Assume that this transaction meets the criteria for discontinued operations.

6. The corporation decided to change its method of inventory pricing from average cost to the FIFO method. The effect of this change on prior years is to increase 2018 income by $86,000 and increase 2019 income by $43,000 before taxes. The FIFO method has been used for 2020. The tax rate on these items is 30%.

Instructions: Prepare an income statement in good form for the year 2020, starting with income from continuing operations before taxes.

Compute earnings per share as it should be shown on the face of the income statement.

Common shares outstanding for the year are 200,000 shares. (Assume a tax rate of 30% on all items, unless indicated otherwise.)

3. Do you think shareholders from target companies enjoy an average gain when acquired, while acquiring shareholders do not benefit anything? Why? Are there any common flaws in the negotiation for a merger? Can you comment on the value creation process in an acquisition?     

Worldcom was a high performing stock and a darling of Wall Street investors. The company's management had repeatedly fulfilled its objective to maximize profits and the stock's price, yet somehow the company failed.

• What are the major causes of the Worldcom collapse?
• What does the Worldcom collapse tell you about audited financial statements?
• If Worldcom's CEO and CFO were simply doing their job to maximize profits, why then did they go to prison?
• What comment can you make about Worldcom's corporate governance (i.e., Board of Directors)?
• Who was the heroine of the Worldcom scandal?

Net Present Value

An organization’s initial outlay for a proposed capital budgeting project is $1,000,000. Use the table below to calculate the net present value.

You are the CEO of the company. If the firm’s cost of capital is 8%, how likely would you be to approve this project when the net present value is $1.00? Would you be more or less likely to approve the project if the net present value were $100,000.00?

2. You are an executive for a manufacturing company. You have just attended a meeting in which the CEO has approved a new production method that may leak poison into a river and endanger the salmon spawn. You have always been concerned about the environment and you are very much against endangering the salmon spawn. You have to decide whether you are going to oppose this decision or remain silent. List the three most important considerations that are affecting your decision in this ethical dilemma.

3. Give an example of another ethical dilemma.

Digital dashboards offer an effective and efficient way to view enterprisewide information at near real-time. According to Nucleus Research, there is a direct correlation between use of digital dashboards and a company’s return on investment (ROI), hence all executives should be using or pushing the development of digital dashboards to monitor and analyze organizational operations. Develop a digital dashboard for the CEO of a transportation company. Be sure to discuss and address all of the following with your other classmates. Inventory Materials Demand/Supply Sales Supplier’s supplier Supplier Manufacturer Distributor Retailer Customer Customer’s Customer

As the supply chain director for a global company, you are facing increasing pressure to improve customer services, especially in handling customer returns. There is currently no system and processes in place. You have been requested by the CEO to set up a reverse logistics system to satisfy customers requirements. A consultant advises you that you need to start with a good gate-keeping process, and this includes a Return Policy and an RMA process. You need to make a presentation to management recommending the immediate action plan, in particular:

1. The objectives and major contents in a Returns Policy
2. The objectives and outlines of an RMA process

record entries in proper journal entry format. show work if needed

March

10. Purchased a parcel of land on March 1, 2019 for $650,000 by paying $425,000 in cash and signing a short-term note payable with the seller for $225,000. You must repay the $225,000 in exactly one year on March 1, 2020. You agree to pay the seller 4.5 percent interest (annual rate) on a quarterly basis (June 1, September 1, December 1, 2019, and March 1, 2020).

    [Adjusting Entry Required]

11. On March 19th you purchased $33,480 of office supplies from Super Office Supplies with cash.

12. On March 20th you received a payment of $125,000 for 260 hours of service to be performed in the future.

April

13. April 21st, your customers bought 15,000 units of your product for $125 per unit (you decide what your company sells). The cost of this product is determined by the method of inventory valuation used by your company. Customers paid you 55% in cash and the remainder was on account.

14. On April 27nd you purchased 9,250 units at a cost of $67 per unit. You paid 45% in cash and purchased the remainder on account.

15. On April 29th you pay $550,000 cash toward your accounts payable.

Using the FASB Codification

            In this case, LinkedIn and Microsoft followed GAAP. Your task is to identify the exact part of the FASB codification that contains the applicable rules. For each question, cite the section number, and cut and paste the rule into your answer. What section of the codification requires?

1. Internally developed intangible assets should NOT usually be recorded as assets?
2. As of the date of an acquisition, the acquirer should allocate the purchase price to assets acquired based on their fair values?
3. Companies must amortize intangible assets with a definite life over their useful lives?
4. Goodwill should not be amortized?
5. Income from an acquired subsidiary should be reported by the acquirer from the date of acquisition onwards
6. A pro forma disclosure is required by an acquirer of revenues and income as if the acquisition had occurred as of the first day of the prior year.
7. Changes in accounting principles should be reflected retrospectively, by restating prior years.