1. A University has recorded the following freshmen enrollment of students in each Academic Year shown below.

Year                Enrollment

2015                     662

2016                     596

2017                     570

2018                     541

2019                     496

      a.   What is the forecast for 2020 using a three period moving average?

b. What is the forecast for 2020 using a weighted moving average, in which the weights are .6, .3, .1?

c. What is the forecast for 2020 using a linear trend?

Extra credit (10 points) – This part is not required. Use the mean absolute deviation (MAD) to determine which method is most accurate.

Restoring manufacturing jobs to the United States’ struggling Rust Belt communities was one of President-elect Donald Trump’s biggest campaign promises — and Apple is stepping up to the plate. The consumer electronics giant is exploring the possibility of moving smartphone production to the United States.

Electronics maker Foxconn, one of Apple’s largest suppliers, confirmed on Sunday that it was mulling a $7 billion investment to create a flat-panel manufacturing facility in the United States, Reuters reported. This would bring one of the major components in smartphones to American shores and would be an important step toward building iPhones in the U.S. Founder and chairman Terry Gou said the move may create as many as 50,000 jobs and would involve Japanese subsidiary Sharp; talks were reportedly underway in Pennsylvania and in other states. Rumors swirl about “Made in the USA” Speculation on Apple’s plans began in late 2016, and heightened following an interview with Donald Trump in The New York Times, during which he recounted a phone conversation with Tim Cook urging the CEO to move part of Apple’s production line to the U.S.: “I was honored yesterday, I got a call from Bill Gates, great call, we had a great conversation, I got a call from Tim Cook at Apple, and I said, ‘Tim, you know one of the things that will be a real achievement for me is when I get Apple to build a big plant in the United States, or many big plants in the United States, where instead of going to China, and going to Vietnam, and going to the places that you go to, you’re making your product right here.’ He said, ‘I understand that.’ I said: ‘I think we’ll create the incentives for you, and I think you’re going to do it. We’re going for a very large tax cut for corporations, which you’ll be happy about.’”

Trump has spoken on a number of occasions since about Apple moving production to the U.S. Days before his inauguration, the president-elect spoke with Axios, saying that Cook had his “eyes open to it” and that he thinks Cook “loves this country, and I think he’d like to do something major here.” Such a move may become more feasible given Foxconn’s plans. The company first confirmed that it was exploring investing in the U.S. in early December: “We are in preliminary discussions regarding a potential investment that would represent an expansion of our current U.S. operations,” Foxconn said to CNNMoney. Softbank CEO Masayoshi Son met with Trump shortly after to announce a planned $50 billion investment in U.S. startups. The CEO held a paper with Softbank’s and Foxconn’s name, along with the following text: “commit to: Invest $50bn + $7bn in US, generate 50k + 50k new jobs in US in next 4 years.” That led to speculation that Foxconn would have a role in bringing jobs to the U.S.

“While the scope of the potential investment has not been determined, we will announce the details of any plans following the completion of direct discussions between our leadership and the relevant U.S. officials,” the manufacturer told CNNMoney.

Trump is a vocal supporter of U.S. companies that build their products in the U.S. and has proposed levying steep tariffs — potentially as high as 45 percent — on competing Chinese importers.

Nikkei, citing a source familiar with Apple’s plans, reports that the Cupertino, California-based company has tasked Foxconn and Pegatron, the two tech firms responsible for assembling more than 200 million of Apple’s iPhones annually, with investigating the feasibility of building plants in the U.S. “We’re going to get Apple to build their computers and things in this country instead of other countries,” Trump said in a speech in January. “How does it help us when they make it in China?” Pegatron reportedly demurred, citing logistical concerns. Foxconn agreed to compile a report as soon as June, but company chairman Terry Gou warned that it would show drastically higher productions costs. The potential result? An iPhone made in the U.S. could retail for as much as $740 to $1,300 for a 32GB iPhone 7 versus $650 today, according to Nikkei.

Apple has previously declined to move iPhones production stateside, citing costs. What would a U.S.-made iPhone cost? A thorough report in the MIT Technology Review found that moving iPhone assembly to the U.S. would add $30 to $40 to the cost of an iPhone thanks to “transportation and logistics expenses [that] would arise from shipping parts.” Manufacturing the smartphone’s hundreds of components domestically is an even pricier — and vastly more complex — proposition. Apple Chief Executive Tim Cook told CBS’ 60 Minutes in December 2015 that the U.S. labor pool lacked the skills necessary to carry out iPhone production, and Apple executives have estimated that it would take as long as nine months to recruit the roughly 8,700 industrial engineers that oversee Chinese assembly lines. And that’s before efficiency is taken into account: A 2012 CNN Money report noted that Chinese factories house workers in employee dormitories and “can send hundreds of thousands to the assembly lines at a moment’s notice.” Then there’s the U.S.’s lack of natural resources to consider. MIT Technology Review points out that few of the 75 elements required to manufacture the iPhone are available commercially in the U.S. Aluminum, for instance, requires bauxite, and there are no bauxite mines in the U.S. China, on the other hand, produces 85 percent of the world’s rare earth metals. Further complicating matters is Apple’s sprawling supply chain of more than 750 firms in over 20 countries. Taiwan Semiconductor produces crucial iPhone chips; South Korea’s SK Hynix and Japan’s Toshiba produce the handset’s memory modules, and Japan’s Japan Display and Sharp provide the iPhone’s display. “To make iPhones, there will need to be a cluster of suppliers in the same place, which the U.S. does not have at the moment,” an industry executive familiar with iPhone production told economics blog NorthCrane. But Apple’s plan isn’t without precedent. In 2013, Motorola Mobility employed more than 3,800 employees to assemble the Moto X, a flagship Android phone, at a factory in Fort Worth, Texas. Just a year later, though, it was forced to shutter production as a result of “exceptionally tough” market conditions, according to Motorola president Rick Osterloh. The company subsequently moved production to China. Others have been more successful. Foxconn established a stateside iMac computer assembly line in 2012. A year later, Singapore-based Flextronics, the manufacturer of Apple’s Mac Pro desktop computer, built a production line in Austin, Texas.

In October 2015, Sharp president Tai Jeng-wu suggested that if Apple were to begin producing smartphones in the United States, it would likely follow suit. “We are now building a new [advanced organic light-emitting diode] facility in Japan. We can make [OLED panels] in the U.S. too,” he said. “If our key customer demands us to manufacture in the U.S., is it possible for us not to do so?

With reference to the case study, discuss the impact that relocating would have on the factors affecting location decisions. (Further research is required by the student into the factors that affect location decisions.) (30)

CEO Selections: John Kanas, Bob Nardelli, or Hank McKinnel

Background: A few years ago, companies such as AIG, who had a hand in the cause of the economic downturn that has devastated our economy, were planning to give or actually gave out huge golden parachutes to the same executives who led and approved of the companies actions.

Instructions: Please answer the questions below:

1) Perform a search of a CEO who has received a golden parachute.

1a) Who was the CEO?

1b) What was the company from where he or she received the golden parachute?

1c) What was the total compensation in the golden parachute?

1d) What happened to the company after the CEO's departure terms of before and after revenue?

1e) After the CEO's departure, did the former CEO obtain a leadership position at another firm? If yes, what company.

2) Based on your reading of Chapter 10 of your DLR e-text, do you believe the payment of these golden parachutes was ethical, right or wrong, and why? Please be substantive in your answers.

Notes:

1) Do not use Carl Icahn or Michael Corbat from Chapter 10 of your e-text, as examples of CEOs who have received golden parachutes.

2) DO NOT USE THE SAME CEO AS ANOTHER STUDENT! (Ignore)

3) Use academically credible sources.

4) Be sure to relate your post to Chapter 10 of your e-text and/or other credible source(s) with proper APA in-text citations and References listing. Failure to properly cite sources will result in a zero.

Make at least 250 words or more, thank you.

Market Insights Co. (MIC) is a full-service market research company. MIC is being hired to interview registered voters in a district to gain insight into their opinions about certain issues. Each voter is to be interviewed in person. The costs of interviewing different types of voters vary due to the differences in proportion throughout the population. Based on previous studies, estimates of the interview costs for different types of voters are as follows:

The contract called for MIC to conduct interviews under the guidelines given below. MIC’s goal is to develop an interview plan that will satisfy the contract requirements at a minimum total interview cost.

Part 1. Linear Programming (LP) Model

Please formulate a linear programming (LP) model. Please follow the steps below.

Define the decision variables.

Write the objective.

Write the constraints (which are the contract requirements).

There must be at least 4,500 total interviews.

At least 1,000 Independent voters must be interviewed.

At least 2,000 males must be interviewed.

At least 1,750 females must be interviewed.

No more than 40% of those interviewed may be Democrats.

No more than 35% of those interviewed may be Republicans.

No more than 25% of those interviewed may be Republican males.

Each of the six types of voters must be represented by at least 10% of the total interviews.

Constraints on decision variables.

Part 2. Spreadsheet Model and Solver Model

Construct a spreadsheet (Excel) model and solve the problem by Excel Solver. Please generate the Answer Report and Sensitivity Report from Excel Solver. Answer the following questions based on the output of Excel Solver.

What is the optimal interview plan?

How much is the minimum cost?

as a fraud examiner  how you would interview a suspect that you believe is misappropriating inventory or equipment at your workplace. Give specific examples of what you would say to the suspect during the interview

DO NOT COPY THE ANSWER FROM THE OTHER QUESTIONS! THAT IS NOT WHAT I AM LOOKING FOR!!

Getting an MBA is an investment in yourself, and it should be viewed through the same lens as any other investment decision. So let's see if MBA is a good decision with a simplified example? We have to look at the two following options.

1. You go to business school, forego two years of salary, borrow around $50,000 per year (both tuition and cost of living) and then go on to make more money (this is the whole point) than you would on your current career trajectory.
2. You do not go to business school and continue to make your current salary and get raises and promotions at a normal rate. These are not easy assumptions to make but linear growth usually works best.
3. Your current salary is 50,000 and grows at 3% every year.
4. Your salary after MBA will be 90,000 and will grow by the same percentage, i.e. 3%.
5. Your cost of capital, i.e. interest rate at which you can finance your MBA is 7%
6. Assume you're doing your MBA at the age of 40, and have 20 years of working life after MBA (or 22 including MBA)
7. For simplicity, assume your first cash flow, i.e. the first tuition payment is next year, i.e. you don't have any explicit cash flows (tuition or salary) in the present (Year 0).

Calculate the NPV of MBA using the information above. Ignore opportunity costs, just use explicitly stated costs (tuition) and benefits (salary). Use Excel, and upload the Excel file using the dialog box at the bottom of the exam.

Select one:

a. $327,623.38

b. $957,594.29

c. $204,594.64

d. $1,227,888.92

Ethics Case

What should he do?

Tobias Ivanov, a senior accountant, has just completed his third year at a large accounting firm. During this time, Tobias has been consistently evaluated as an above average performer and a “team player.” Lately Tobias has been concerned about the heavy work load in this firm and has decided to enroll in an MBA program. He recently applied for admission to several of the nation's top business schools. The school in which Tobias is most interested had an October 1 deadline for a trial financial aid package, designed to attract top candidates, which covers all costs and pays $10,000 per year. This is the first year for the program and there is no guarantee that the program will be available in future years. Based on his conversations with university officials, Tobias is quite optimistic about being admitted and receiving the funding, even though a final decision will not be made until February. Tobias plans to enter an MBA program, even without the special funding, beginning in August of the following years, but he has told no one at the firm of his plans.

Janice Conrad, a partner in charge of training and development for the local office, has just received information from the national office of the firm related to a five-month accounting internship-exchange program the firm has arranged with offices in Europe, Australia, and Russia. Applicants must have three to five years with the firm, be above-average performers, have long-term career potential with the firm, and be fluent in the host country’s language. Janice immediately thinks of Tobias, who is a first-generation American with strong family connections in Russia. Janice arranges to have lunch with Tobias the next day.

At lunch Janice confirms that Tobias is fluent in Russian and then presents to him the information on the five-month internship in the Moscow office, from January through May of the following year. Tobias and Janice talk with excitement about the personal and professional benefits of five other relatives who live in Russia. The firm would benefit by having someone with experience in the Moscow office. Janice thinks Tobias has an excellent chance of being selected for the program and offers to write a recommendation letter for him. She gives Tobias an application and encourages him to complete it immediately, since it is now mid-October and the application deadline is November 1.

That night, Tobias sits down to consider his career plans. Although he is very excited about the opportunity to go to Moscow, he is also convinced that he would love to enroll in a full-time MBA program in the fall. He realizes that it is possible to intern in the Moscow office from January through May, return to his current office for June and July, and then begin the MBA program in August. Tobias wonders if he should talk to Janice about his MBA plans, but he hesitates. He knows that firm policy requires only a two-week notice prior to leaving the firm. Tobias decides that there is no harm in applying, but he questions his long-term intentions with the firm and wonders what to do.

Address the following Questions using complete sentences/paragraphs. Your write up should be a minimum of 1.5 pages, and could be more.

1. Identify the relevant facts of the case.
2. Identify the ethical issues within this case.
3. Identify and list the primary stakeholders in this case.
4. Identify and discuss the possible alternatives for the dilemma and the ethics of each alternative.
5. What, if any, are the constraints to the alternatives?
6. What action should be taken by Tobias and Janice depending on the alternative taken?

Edwards and Everett, Inc. had the following items in its capital structure at December 31, 2020:

Common stock options, issued in 2019, exercisable for 22,000 shares, beginning in 2022, at a “strike” price of $20 per share. The cash that would be received from the option-holders from a hypothetical exercise of the options at December 31, 2020 would be sufficient for Edwards & Everett to acquire 13,400 shares of its own common stock (as treasury stock).

Treasury stock, common, 20,000 shares, acquired on November 30, 2019 …...

$

280,000

Additional paid-in-capital ....................................................................................

760,000

Common stock, $10 stated value, issued January 2, 2019

(current market value, $17 per share) ..................................................................

1,200,000

Preferred stock, 10%, $8 par value, convertible into 146,000 common

shares no earlier than 2020, issued at par value on July 1, 2020

(current market value, $8 per share) ....................................................................

1,660,000

Stock warrants, issued in 2019 in exchange for legal services at the company’s formation, convertible into 1,300 shares of common stock at the

discretion of the warrant-holders, but not earlier than 2022. A

hypothetical conversion of the warrants at December 31, 2020 would

require a $14,000 cash payment from the warrant-holders, which would

be sufficient for Edwards & Everett to acquire 300 shares of its own

common stock (as treasury stock)........................................................................

20,000

Edwards & Everett’s net income for 2020 was $783,000; the company’s Board of Directors has not yet declared a dividend for 2020 for the preferred shareholders.

What earnings per share did Edwards and Everett, Inc. report for the year ended December 31, 2020? Prepare a schedule to support your answer.

FINANCIAL ACCOUNTING II

Edwards and Everett, Inc. had the following items in its capital structure at December 31, 2020:

Common stock options, issued in 2019, exercisable for 22,000 shares, beginning in 2022, at a “strike” price of $20 per share. The cash that would be received from the option-holders from a hypothetical exercise of the options at December 31, 2020 would be sufficient for Edwards & Everett to acquire 13,400 shares of its own common stock (as treasury stock).

Treasury stock, common, 20,000 shares, acquired on November 30, 2019 ...... $280,000

Additional paid-in-capital........................................................................................760,000

Common stock, $10 stated value, issued January 2, 2019 (current market value, $17 per share) ................................................................ 1,200,000

Preferred stock, 10%, $8 par value, convertible into 146,000 commonshares no earlier than 2020, issued at par value on July 1, 2020 (current market value, $8 per share) ...................................................................1,660,000

Stock warrants, issued in 2019 in exchange for legal services at the company’s formation, convertible into 1,300 shares of common stock at the discretion of the warrant-holders, but not earlier than 2022. A hypothetical conversion of the warrants at December 31, 2020 would require a $14,000 cash payment from the warrant-holders, which would be sufficient for Edwards & Everett to acquire 300 shares of its own common stock (as treasury stock)........................................................................ 20,000

Edwards & Everett’s net income for 2020 was $783,000; the company’s Board of Directors has not yet declared a dividend for 2020 for the preferred shareholders.

What earnings per share did Edwards and Everett, Inc. report for the year ended December 31, 2020? Prepare a schedule to support your answer.