Decision Problem 1
Your friend, Amin Akmali, has asked your advice about the effects that certain business
transactions will have on his business. His business, Car Finders, finds the best deals on
automobiles for clients. Time is short, so you cannot journalize transactions. Instead, you
must analyze the transactions and post them directly to T-accounts. Akmali will continue in
the business only if he can expect to earn monthly net income of $8,000. The business had
the following transactions during March 2017:
a. Akmali deposited $50,000 cash in a business bank account.
b. The business borrowed $8,000 cash from the bank, which is recorded as a note payable
due within one year.
c. Purchased for cash a vehicle to drive clients to appointments, $27,000.
d. Paid $1,600 cash for supplies.
e. Paid cash for advertising in the local newspaper, $1,200.
f. Paid the following cash expenses for one month: commission, $12,400; office rent, $800;
utilities, $600; gas, $1,000; interest, $200.
g. Earned revenue on account, $20,600.
h. Earned $7,500 revenue and received cash.
i. Collected cash from customers on account, $2,400.
Required
1. Open the following T-accounts: Cash; Accounts Receivable; Supplies; Vehicle; Notes
Payable; Amin Akmali, Capital; Advising Revenue; Advertising Expense; Interest
Expense; Rent Expense; Commission Expense; Gas Expense; Utilities Expense.
2. Record the transactions directly in the T-accounts without using a journal. Identify each
transaction by its letter.
3. Prepare an unadjusted trial balance at March 31, 2017. List expenses alphabetically.
4. Compute the amount of net income or net loss for this first month of operations. Would
you recommend Akmali continue in business?

1. Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods

   The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31:

   Apr. 13	Wrote off account of Dean Sheppard, $5,280.
   May 15	Received $2,640 as partial payment on the $7,020 account of Dan Pyle. Wrote off the remaining balance as uncollectible.
   July 27	Received $5,280 from Dean Sheppard, whose account had been written off on April 13. Reinstated the account and recorded the cash receipt.
   Dec. 31	Wrote off the following accounts as uncollectible (record as one journal entry):
   	Paul Chapman $3,540 Duane DeRosa 2,640 Teresa Galloway 1,580 Ernie Klatt 2,220 Marty Richey 790
   Dec. 31	If necessary, record the year-end adjusting entry for the uncollectible accounts.

   For those amount boxes in which no entry is required, leave the box blank. If an entry is not required, select "No entry" from the dropdown box(es).

   a. Journalize the transactions under the direct write-off method.

   Apr. 13		fill in the blank 44afbf0cafa7fe8_2
   			fill in the blank 44afbf0cafa7fe8_4
   May 15		fill in the blank 44afbf0cafa7fe8_6	fill in the blank 44afbf0cafa7fe8_7
   		fill in the blank 44afbf0cafa7fe8_9	fill in the blank 44afbf0cafa7fe8_10
   		fill in the blank 44afbf0cafa7fe8_12	fill in the blank 44afbf0cafa7fe8_13
   July 27-reinstate		fill in the blank 44afbf0cafa7fe8_15
   			fill in the blank 44afbf0cafa7fe8_17
   July 27-collection		fill in the blank 44afbf0cafa7fe8_19
   			fill in the blank 44afbf0cafa7fe8_21
   Dec. 31-write-off		fill in the blank 44afbf0cafa7fe8_23	fill in the blank 44afbf0cafa7fe8_24
   		fill in the blank 44afbf0cafa7fe8_26	fill in the blank 44afbf0cafa7fe8_27
   		fill in the blank 44afbf0cafa7fe8_29	fill in the blank 44afbf0cafa7fe8_30
   		fill in the blank 44afbf0cafa7fe8_32	fill in the blank 44afbf0cafa7fe8_33
   		fill in the blank 44afbf0cafa7fe8_35	fill in the blank 44afbf0cafa7fe8_36
   		fill in the blank 44afbf0cafa7fe8_38	fill in the blank 44afbf0cafa7fe8_39
   Dec. 31-adjusting		fill in the blank 44afbf0cafa7fe8_41
   			fill in the blank 44afbf0cafa7fe8_43

   b. Shipway Company uses the percent of credit sales method of estimating uncollectible accounts expense. Based on past history and industry averages, 3% of credit sales are expected to be uncollectible. Shipway Company recorded $858,500 of credit sales during the year.

   Journalize the transactions under the allowance method.

   Apr. 13		fill in the blank 667e2f03c047ffe_2
   			fill in the blank 667e2f03c047ffe_4
   May 15		fill in the blank 667e2f03c047ffe_6	fill in the blank 667e2f03c047ffe_7
   		fill in the blank 667e2f03c047ffe_9	fill in the blank 667e2f03c047ffe_10
   		fill in the blank 667e2f03c047ffe_12	fill in the blank 667e2f03c047ffe_13
   July 27-reinstate		fill in the blank 667e2f03c047ffe_15
   			fill in the blank 667e2f03c047ffe_17
   July 27-collection		fill in the blank 667e2f03c047ffe_19
   			fill in the blank 667e2f03c047ffe_21
   Dec. 31-write-off		fill in the blank 667e2f03c047ffe_23	fill in the blank 667e2f03c047ffe_24
   		fill in the blank 667e2f03c047ffe_26	fill in the blank 667e2f03c047ffe_27
   		fill in the blank 667e2f03c047ffe_29	fill in the blank 667e2f03c047ffe_30
   		fill in the blank 667e2f03c047ffe_32	fill in the blank 667e2f03c047ffe_33
   		fill in the blank 667e2f03c047ffe_35	fill in the blank 667e2f03c047ffe_36
   		fill in the blank 667e2f03c047ffe_38	fill in the blank 667e2f03c047ffe_39
   Dec. 31-adjusting		fill in the blank 667e2f03c047ffe_41
   			fill in the blank 667e2f03c047ffe_43

   c. How much higher (lower) would Shipway Company's net income have been under the direct write-off method than under the allowance method?
     by $fill in the blank 333ee4f3b077fff

Use computer software packages, such as Minitab or Excel, to solve this problem.

The owner of Showtime Movie Theaters, Inc., used multiple regression analysis to predict gross revenue (y) as a function of television advertising (x1) and newspaper advertising (x2). Values of y, x1, and x2 are expressed in thousands of dollars.

The estimated regression equation was

a. What is the estimated gross revenue for a week where $3.5 thousand is spent on television (x1 = 3.5) and $1.8 thousand is spent on newspaper advertising (x2 = 1.8)  (to 3 decimals)?

b. Provide a 95% prediction interval for next week's revenue, assuming that the advertising expenditures will be allocated as in part (a) (to 2 decimals).

( ___ , ___ )

Critical Thinking

The global marketplace has witnessed an increased pressure from customers and competitors in manufacturing as well as service sector (Basu, 2001; George, 2002). Due to the rapidly changing global marketplace only those companies will be able to survive that will deliver products of good quality at cheaper rate and to achieve their goal companies try to improve performance by focusing on cost cutting, increasing productivity levels, quality and guaranteeing deliveries in order to satisfy customers (Raouf, 1994).

Increased global competition leads the industry to increasing efficiency by means of economies of scale and internal specialization so as to meet market conditions in terms of flexibility, delivery performance and quality (Yamashina, 1995). The changes in the present competitive business environment are characterized by profound competition on the supply side and keen indecisive in customer requirements on the demand side. These changes have left their distinctive marks on the different aspect of the manufacturing organizations (Gomes et al., 2006). With this increasing global economy, cost effective manufacturing has become a requirement to remain competitive.

To meet all the challenges organizations try to introduce different manufacturing and supply techniques. Management of organizations devotes its efforts to reduce the manufacturing costs and to improve the quality of product. To achieve this goal, different manufacturing and supply techniques have been employed. The last quarter of the 20th century witnessed the adoption of world-class, lean and integrated manufacturing strategies that have drastically changed the way manufacturing firm’s leads to improvement of manufacturing performance (Fullerton and McWatters, 2002).

1. Assess the reasons for using lean thinking (suitable examples), what are the benefits from Suppliers to end users?

2. Due to COVID 19 emergency do you think agile supply chain is the right concept in this kind of situation? Give reason with example.

The Answer should be within 1- 2 pages. for each question

The Answer must follow the outline points below:

• Lean Thinking and JIT Concept
• Agile Supply chain
• Their Main functions
• Reasons with suitable Examples
• Reference

A psychologist wanted to know if students in her class were more likely to cheat if they were low achievers. She divided her 60 students into three groups (low, middle, and high) based on their mean course-testings score on the previous three tests. She then asked them to rate how likely they were to cheat on a course-testings if the opportunity presented itself with very limited chance for consequences. The students rated their desire to cheat on a scale ranging from 1-100, with lower numbers indicating less desire to cheat.

3. Conduct descriptive analyses and report them here.

THIS IS A PROFESSIONAL SELLING DISCUSSION HOMEWORK.

In today's extremely competitive business environment, do you think it is more important to acquire new customers, or to try to hold on to your existing customers? Use critical thinking and course/business concepts to support your opinion.

• Your original post should be 3-4 paragraphs with 4-5 good sentences per paragraph.

Task: Write 3 paragraphs (5 to 7 sentences each):

1} List the benefits of providing good customer service to both internal and external customers in relation to health care.

2} Discuss how each interaction and response may differ when providing customer service to internal and external customers in relation to health care.

Include your personal experience.

Situation - You are operating an online jewellery store.

Problems that you are facing -

1. Competition from other online jewellery stores.

2. Cybersecurity (protecting yourself and your customers)

3. Completing orders since there are shipping delays (ensure customers receive orders on time)

For each problem listed above, what would be the symptoms and what would be the underlying problem?

Question C11.2 is based on the following case.

King Companies, Inc (KCI) is a private company that owns five auto parts stores in urban Los Angeles, California. KCI has gone from two auto parts stores to five stores in the last three years, and it plans continued growth. Eric and Patricia King own the majority of the shares in KCI. Eric is the chairman of the board of directors of KCI and CEO, and Patricia is a director as well as the CFO. Shares not owned by Eric and Patricia are owned by friends and family who helped the Kings get started. Eric started the company with one store after working in an auto parts store. To date, he has funded growth from an inheritance and investments from a few friends. Eric and Patricia are thinking about expanding by opening three to five additional stores in the next few years. In October 2021, Eric approached your accounting firm, Thornson & Danforth, LLP, to conduct an annual audit of KCI for the year ended December 31, 2022. KCI has not been audited before, but this year the audit has been requested by the company's bank because of anticipated bank loans and by a new private equity investor that has just acquired a 20% share of KCI. KCI employs 20 full-time staff. These workers are employed in store management, sales, parts delivery, and accounting. About 40% of KCI's business is retail walk-in business, and the other 60% is regular customers where KCI delivers parts to their locations and bills these customers on account. During peak periods, KCI also uses part-time workers. Eric is focused on growing revenues. In his opinion, revenue growth is particularly important to obtaining bank financing. Patricia trusts the company's workers to work hard for the company, and she feels they should be rewarded well. The accounting staff, in particular, is very loyal to the company. Eric tells you that accounting staff enjoy their jobs so much they have never taken any annual vacations, and hardly any workers ever take sick leave. There are two people currently employed as accounting staff, the most senior of whom is Jonathan Jung. Jonathan heads the accounting department and reports directly to Patricia. He is in his late fifties and hopes to retire in two or three years and move away from Los Angeles. Jonathan keeps a close watch on accounting and does many activities himself; including opening mail, cash receipts and vendor payments, depositing funds received, performing reconciliations, posting journals, and performing the payroll function. His second employee, Abby Owens, is a recent college graduate who just passed the CPA exam. Abby is responsible for the payroll functions and posting all journal entries into the accounting system. Jonathan and Abby often help each other out in busy periods.

(11.2) Audit data analytics for revenue Analysis: You have been asked by your audit

manager to consider how the audit firm might audit revenues by using audit data

analytics to evaluate 100% of the revenue transactions. Where do you feel that it would

be most effective to audit 100% of the transactions using ADA? In addition to the sales

information, what other information should you consider in your analysis? Develop a

specific audit strategy for how you would screen 100% of the revenues, how you would

identify exceptions, and how you might consider what would be acceptable variations

from your expectation norm versus unacceptable variations.

* Question 2