In March last year, Goldman Sachs relaxed its dress code, allowing its bankers to swap their bespoke suits for a more casual look. As the CEO of a large financial services company in South Africa, you wonder whether relaxing your existing dress code will result in an improvement in employee morale. To answer your question, you would like to conduct an experiment. Write an essay in which you discuss how you would go about conducting the experiment.

Structure you essay using the following headings:  Design  Participants  Procedure Maximum 600 words.

1. Explain how you would rank the 5 C’s of credit analysis in order of importance and explain your rankings?

2. What are the most important covenants for creditors to include in loan agreements with borrowers and why?

3. There is a fundamental flaw in the credit rating agency process – the issuer of securities pays for the rating? How can this fundamental flaw be repaired going forward and why is that the best solution compared to other alternatives?

4. If you were the CEO of a financially-troubled company, what changes would you make in the operating and financial strategies to avoid bankruptcy and improve future performance?

Subject: International business.

b. What are generally the two extremes of market policies towards FDI. Evaluate and explain the balance policy between the two extremes?​​​​​​2.5

c. You are the CEO of a Pakistani company that has to choose between making 100 Million Dollars investment in UAE or Qatar. Both investments promise the same long-run return, so your choice is driven by risk consideration. Assess the various risks of doing business in each of these nations. Which investment would you favor and why? Explain giving economic, social, political, and ethical reasons.​5

Suppose you are the CEO of Rich Products headquartered here in Buffalo, New York. Your main product is non-dairy creamer, but you also make other food products for sale to retail shops and grocery stores. In addition, you are a jobber (making goods under someone else’s private label, for example making product for Top’s Supermarket). In the last four assignments you covered various aspects of business ethics. This assignment requires you to come up with a five-rule code of conduct for your company. After each rule briefly describe what you achieve.

1. You are the CEO of “I am the top 1%” Corporation, which has a capital structure of 60% equity and 40% debt. The estimated net income of your company is $600K. Your capital budget is $800K for the coming year. If you follow the residual dividend models, how much dividend you can pay and what is your pay-out ratio? What happens to dividend when estimated net income is $400K or $800K?
2. Discuss the advantages and disadvantages of Residual dividend policy.
3. What are the steps you consider in setting your dividend policy?
4. Explain the concept of DRIP with an example.

2) You are the independent accountant assigned to the audit of Neophyte Company. The company's accountant, a graduate of Rival State University, has prepared financial statements that contained the following questionable items: a. The balance sheet reports land at $100,000. Included in this amount is a property held for speculation at a cost of $30,000. b. Current liabilities include $50,000 for long-term debt that is due in three months. The company has received a suitable firm commitment to refinance the debt for five years and intends to do so. c. Investments include $20,000 in short-term, high-grade commercial paper, which is a cash equivalent.

Required. Describe the appropriate balance sheet presentation for the above items.

Maryland Home and Community-Based Services (MHCBS) is considering a major expansion that will enable it to attract a different clientele to its organization. Currently, they serve only 34% of the frail elderly seniors and persons with disabilities in the local area. The new chief CEO would like the organization to expand its revenue stream by investing in a senior multipurpose center serving healthy seniors by offering them arts and crafts and health and wellness programs. The center will also contain an Internet café offering nutritious breakfast and lunch options.

The CEO has commissioned a needs assessment, and the study’s results reveal that there are approximately 120 seniors in the local community who are interested in this center and the CEO expects growth of the aging population to be at least 10% each year. Cost growth across all areas of expense is expected to rise by 5% each year. The CEO has presented her proposal and financial information to the Board of Directors, and they have advised her that they are in full support of her strategy only if the program is a benefit to the community and if the organization can recoup its investment in five years. The CEO has asked you if this can be achieved. Based on the information presented in the scenario, calculate the two analyses and explain, in a brief memorandum to the CEO, their implications.

Baseline Information

Monthly Revenue: $125 per senior

Fixed Costs Monthly

Utilities: $590

Health/Wellness Staff: $2,500

Arts/Crafts Staff: $2,000

Supplies: $800

Fitness Equipment Maintenance Contract: $200

Variable Costs

Monthly Breakfast Cost: $25

Monthly Lunch Cost: $15

QUESTIONS

Based on the information above, once the minimum threshold of participants is reached, the initial investment to establish the center is $317,880. The organization anticipates that it will generate $46,920 of net revenues in the first year, $68,166 in the second year, $93,404 in the third year, $123,287in the fourth year, and $158,573 in the fifth year.

1. Perform the break-even analysis to determine how many seniors would need to have full monthly membership and pay for breakfast and lunch for UMUC Home and Community-Based Services to cover its monthly expenses.
2. Calculate the payback period to determine how long it will take for the organization to recover its initial investment of establishing the senior multipurpose center.
3. Based on the information presented in the scenario, calculate the two analyses and explain, in a brief memorandum to the CEO, their implications.
   1. Provide an excel spreadsheet for the specified budget periods.
   2. Provide calculations demonstrating your computations of how you arrived to the answers of the questions
   3. Provide a narrative explaining your calculations, so that if you do not have the correct answer I can at least review how you arrived at your conclusions and potentially render partial credit.

Metlock Inc., a registered broker, enters into a finder’s fee agreement with HOM Homes Ltd. on June 15, 2020. Metlock will find leads in the form of buyers potentially interested in purchasing HOM’s real estate holdings. Along with finding potential buyers, Metlock helps negotiate the selling price and provides advice on contract details. If and when HOM closes a sale, Metlock will be paid within 30 days of the closing date, based on the following formula: 5% of any transaction value up to and including $1 million, plus 4% of any transaction value greater than $1 million and less than and including $2 million, plus 3% of any transaction value greater than $2 million and less than and including $3 million, plus 2% of any transaction value greater than $3 million and less than and including $4 million, plus 1% of any transaction value in excess of $4 million. If Metlock is represented by another broker and this information is not shared with HOM, the fee is reduced by 50%. On September 1, 2020, HOM paid Metlock $51,000 to provide some needed cash flow for seeking out buyers. On October 15, 2020, an offer was made and accepted for a parcel of real estate at a price of $3.50 million. The transaction closed on November 1, 2020, and Metlock was paid the finder’s fee net of $51,000 on November 30, 2020.

Determine the accounting treatment of the above events for Metlock Inc. and prepare any journal entries needed on: (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

List of Accounts

• Accounts Payable
• Accounts Receivable
• Advertising Expense
• Allowance for Doubtful Accounts
• Allowance for Sales Returns and Allowances
• Cash
• Commission Expense
• Commission Revenue
• Compensation Expense
• Consignment Sales
• Construction Expenses
• Contract Asset/Liability
• Cost of Goods Sold
• Estimated Inventory Returns
• Interest Expense
• Interest Income
• Interest Payable
• Interest Receivable
• Inventory
• Inventory on Consignment
• Loss from Long-Term Contracts
• Materials, Cash, Payables
• Miscellaneous Expense
• No Entry
• Notes Receivable
• Office Expense
• Refund Liability
• Rent Revenue
• Returned Inventory
• Revenue from Consignment Sales
• Revenue from Long-Term Contracts
• Sales Discounts
• Sales Discounts Forfeited
• Sales Returns and Allowances
• Sales Revenue
• Service Revenue
• Unearned Rent Revenue
• Unearned Revenue
• Utilities Expense
• Warranty Expense
• Warranty Liability
• Warranty Revenue

Your assignment consists of different question styles including discussion questions, reports, exercises, problem questions and spreadsheet questions. It assesses learning outcomes as listed in the assignment rationale below.

The purpose of this assignment is to continue to develop skills in costing systems with an emphasis on the role of control in managing the production of goods and services efficiently in the workplace. Each question builds on the knowledge gained through the first assignment to develop the concepts of management accounting control through costing. Each question uses realistic data and professional practices similar to that found in workplaces.

Question 1: Budget (20 marks in total)

Resort Island University is preparing its budget for the upcoming academic year. This is a specialised private university that charges fees for all degree courses. Currently, 15,000 students are enrolled on campus. However, the university is forecasting a 5 % growth in student numbers in the coming year, despite an increase in fees of $3,500 per subject. The following additional information has been gathered from an examination of the university records and conversations with university managers:

• Resort Island is planning to award scholarships to 150 students, which will cover their fees.
• The average class has 80 students, and the typical student takes 4 subjects per semester. Resort Island operates 2 semesters per year.
• The average academic staff salary is $120,000 per annum including on-costs.
• Resort Island's academic staff are evaluated on the basis of teaching, research administration and professional/community service. Each of the academic staff teaches the equivalent of three subjects during the academic year.

Required:

1. Prepare a revenue budget for the upcoming academic year
2. Determine the number of staff needed to cover classes.
3. Assume there is a shortage of full-time academic staff. List at least five actions that Resort Island might take to accommodate the growing student numbers.
4. You have been requested by the university's deputy vice chancellor (DVC) to construct budgets for other areas of operation (such as library, grounds, cafeteria, and maintenance). The DVC noted: 'The most important resource of the university is academic staff. Now that you know the number of staff needed, you can prepare the other budgets. Academic staff are indeed the key driver - without them we don't operate.' Does the DVC really understand the linkages with the budgeting process? Explain.