Santa's Christmas Tree Farm, a private company reporting under ASPE, grows pine, fir, and spruce trees. The company cuts and sells the trees for cash during the Christmas season. Most of the trees are exported to the United States. The remaining trees are sold to local tree lot operators.

It normally takes about 12 years for a tree to grow to a good size. The average selling price for a mature tree is $48. The owner of Santa's Christmas Tree Farm believes that the company should recognize revenue at the rate of $4 a year ($48/12 years) for each tree that it cuts. The biggest cost of this business is the cost of fertilizing, pruning, and maintaining the trees over the 12-year period. These costs average $40 a tree and the owner believes they should also be spread over the 12-year period.

Do you agree with the proposed revenue recognition policy for Santa's Christmas Tree Farm? Explain why or why not. Use the revenue recognition criteria to explain your argument for when the revenue should be recognized for this tree-farming business. Also, explain how the costs of fertilizing, pruning, and maintaining the trees should be recorded.

Read the following case. Apply your knowledge of the five components of the 2013 COSO IC framework as well as risk, internal controls, and any other Chapter 6 [Parts 1 & 2] topics to speculate in detail what various employees of Volkswagen could have done to prevent this internal control disaster from happening.

In an effort to circumvent various state and national clean air standards, automobile manufacturer Volkswagen installed software on a variety of automobiles equipped with diesel engines that was designed to detect when the vehicle was undergoing an emissions drive cycle test. When the software detected a set of parameters consistent with emissions testing, it would switch into a low-emissions operating mode. In total, more than 11 million Audi, Porsche, and Volkswagen diesel vehicles worldwide were equipped with the "cheater" software. When discovered by the U.S. Environmental Protection Agency and the California Air Resources Board in 2014, Volkswagen admitted to the wrongdoing. To date, Volkswagen has agreed to spend up to $22 billion in the United States to settle claims from consumers, regulators, and dealers. In January 2017, six Volkswagen executes were arrested for their part in the scandal.

Assume that Seminole, Inc., considers issuing a Singapore dollar?denominated bond at Its present coupon rate of 7.1 percent, even though it has no incoming cash flows to cover the bond payments. It is attracted to the low financing rate, since U. S. dollar-denominated bonds issued in the United States would have a coupon rate of 12 percent. Assume that either type of bond would have a four­?year maturity and could be issued at par value. Seminole needs to borrow $10 million. Therefore, it will either issue U. S. dollar denominated bonds with a par value of $10 million or bonds denominated in Singapore dollars with a par value of S$20 million. The spot rate of the Singapore dollar is $.50. Seminole has forecasted the Singapore dollar’s value at the end of each of the next four years, when coupon payments are to be paid:

                        End of Year                 Exchange Rate of Singapore Dollar

                                 1                                       $.52

                                 2                                        .56

                                 3                                        .58

                                 4                                        .53

Determine the expected annual cost of financing with Singapore dollars. Should Seminole, Inc., issue bonds denominated in U.S. dollars or Singapore dollars? Explain.

ROULETTE is a casino game where a numbered wheel spins and a steel ball falls into a location marked by one particular colored number. In the United States there are 18 locations colored red, 18 locations colored black and 2 locations colored green. The red and black locations are numbered 1-36 and the green locations are labeled "0" and "00" as shown in the picture to the right. The wheel therefore has 38 locations in total. Note that the odd and even values are not evenly distributed within each color. For any particular wager a player makes, an expected profit can be calculated from: Expected profit = (Prob. of winning) x (winning payout amount) - wager

(c) Another potential wager is to "bet on odd" which has the same payout as betting on black, but wins only when the ball lands in a location with an odd number of either color. If the ball lands on an even numbered location or a green space you lose your wager and the payout would be $0. What is the expected profit from placing two bets on a single spin - $17 on black and $19 on odd? (round to closest penny)

Please answer the following questions in 250+ words total and number the questions (aim for about a paragraph per question).

1. Define compensating differential and give original examples (not already included in the book or power points) of different jobs that earn higher wages and some that earn lower wages because of compensating differentials.

2. Go to the Education Pays (Links to an external site.) page on the Bureau of Labor Statistics website. Compare and contrast the different levels of education in relation to average wage and unemployment rate.

3. Explain the benefits of higher education in terms of the unemployment rate and average salary figures in the United States per the Education Pays chart.

4. How does this reflect on your own decision to invest in your human capital?

5. Also, go to the BLS Occupational Outlook Handbook (Links to an external site.) and look up two careers that you may be interested in pursuing.

6. Does the information given about these careers match your expectations?

7. Is there expected growth of jobs in these careers? How might it affect your likelihood of finding a job after graduation?

High Country, Inc., produces and sells many recreational products. The company has just opened a new plant to produce a folding camp cot that will be marketed throughout the United States. The following cost and revenue data relate to May, the first month of the plant’s operation:

Management is anxious to assess the profitability of the new camp cot during the month of May.

Required:

1. Assume that the company uses absorption costing.

a. Determine the unit product cost.

b. Prepare an income statement for May.

2. Assume that the company uses variable costing.

a. Determine the unit product cost.

b. Prepare a contribution format income statement for May

Question 1

Princess Cruise Company (PCC) purchased a ship from Mitsubishi Heavy Industry for 500 million yen payable in one year. The current spot rate is ¥124/$ and the one-year forward rate is 110¥/$. The annual interest rate is in Japan is 5% for lending and 6% for borrowing; and in the United States it is 7% for lending and 8% for borrowing. The WACC is 7%. PCC can also buy a one-year call option on yen at the strike price of $0.0081 per yen for a premium of 0.00014$/¥.

a. Compute the future dollar costs of meeting this obligation using a forward hedge.

b. Compute the future dollar costs of meeting this obligation using a money market hedge. Explain step by step using both numbers and a written explanation the money market strategy.

c. Assuming that the forward exchange rate is the best predictor of the future spot rate, compute the expected future dollar cost of meeting this obligation when the option hedge is used.

d. At what future spot rate do you think PC may be indifferent between the option and the forward hedge?

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Answer the following questions:

1. What causes the variations in skin colors among humans?
2. What does it mean to say that race is a socially constructed concept? How is the concept of “race” understood presently by almost all social scientists?
3. What is the difference between a race and an ethnic group, and what do the two concepts have in common? Give 3 examples of each
4. What is institutional racism and why is it important? In your opinion, based on the lecture’s example on institutional racism is it possible for minorities to be “racist.”
5. What are the problems with describing the United States as just a “nation of immigrants”?
6. Briefly discuss push and pull factors and how they shape migration.                        
7. What is the difference between prejudice, discrimination, and racism?
8. Discuss the term stereotypes and the problems with both positive and negative stereotypes. How do stereotypes and prejudices maintain racial and ethnic discrimination?
9. Do you feel that racial images and stereotypes in the media are changing over time?  How are they changing?
10. Briefly discuss the different types of assimilation. In your opinion, which types can be detrimental to an ethnic group/ racial identity; and which types are necessary in order to adapt to and succeed in a given society.

PA8-6 Preparing Operating Budgets for a Merchandising Firm [LO 8-5, 8-3a, f, g, h]

Red Canyon T-shirt Company operates a chain of T-shirt shops in the southwestern United States. The sales manager has provided a sales forecast for the coming year, along with the following information:

• Each T-shirt is expected to sell for $14.
• The purchasing manager buys the T-shirts for $6 each.
• The company needs to have enough T-shirts on hand at the end of each quarter to fill 24 percent of the next quarter’s sales demand.
• Selling and administrative expenses are budgeted at $78,000 per quarter plus 16 percent of total sales revenue.

Required:
1. Determine budgeted sales revenue for each quarter.



2. Determine budgeted cost of merchandise purchased for each quarter.



3. Determine budgeted cost of good sold for each quarter.



4. Determine selling and administrative expenses for each quarter.



5. Complete the budgeted income statement for each quarter.