The engineering team at Manuel’s Manufacturing Inc. is planning to purchase an enterprise resource planning (ERP) system. The software and installation from Vendor A costs $380,000 initially and is expected to have revenue $125,000 per year every year.Manuel’s uses a 4-year planning horizon and a 10% per year MARR.

What is the discounted payback period of the investment (do linear interpolation to answer)?

Q4 In four sentences or less, describe the purpose of the audit risk model.

Q5 In an audit of revenue, describe the difference between the occurrence and cutoff management assertions. Give an example of how you would test each.

Q6 For an audit of a private corporation, describe the possible benefit to the auditor of relying upon controls, and describe what might lead an auditor to not rely upon controls?

12. BC Travel Services is considering a new 10 year project that will generate additional sales revenue of $200,000 per year. The associated costs are $120,000 per year. The required rate of return for the project is 12%.  The tax rate is 40%.  What is the present value of the after-tax operating cash flows?

a. $250,374

b. $271,211

c. $417,289

d. $452,018

12. BC Travel Services is considering a new 10 year project that will generate additional sales revenue of $200,000 per year. The associated costs are $120,000 per year. The required rate of return for the project is 12%. The tax rate is 40%. What is the present value of the after-tax operating cash flows?

a. $250,374

b. $271,211

c. $417,289

d. $452,018

True/False

1. All married couples qualify for the unlimited marital deduction
2. As long as the surviving spouse is one of the individuals possessing a GPOA over a trust, the trust assets will qualify for the unlimited marital deduction.
3. Once Portability was added to the Internal Revenue Code, the surviving spouse automatically receives the lesser of a) the maximum Unified Credit or b) the Unified Credit less the Estate Tax Liability.

Question text Consider two companies (A and B) with equal profit margins of 18%. Company A has an asset turnover of 1.2 and Company B has an asset turnover of 1.5. If all else is equal, Company B with its’ higher asset turnover, is less profitable because it requires more revenue to turn its assets over. Select one: True False

Inventory Turnover and Days’ Sales in Inventory The Southern Company installed a new inventory management system at the beginning of 2015. Shown below are data from the company’s accounting records as reported out by the new system: 2015 2016 Sales Revenue $8,000,000 $11,000,000 Cost of Goods Sold 4,000,000 4,800,000 Beginning Inventory 510,000 530,000 Ending Inventory 530,000 600,000

You are provided two problem statements below (Homework Problem 1). For each, provide a score on a scale of 1 to 10 with 10 being best. Provide justification for each score that you gave. Example Problem Statements

1. We want to improve employee performance in the Human Resources (HR) department.

2. We want to improve sales revenue by 10%.

15. (a) Define the terms assets, liabilities, and stockholders’ equity. (b) What items affect stockholders’ equity?

16. Which of these items are liabilities of White Glove Cleaning Service? (a) Cash. (f) Equipment. (b) Accounts payable. (g) Salaries and wages (c) Dividends. payable. (d) Accounts receivable. (h) Service revenue. (e) Supplies. (i) Rent expense.