1. Suppose you are confronted with the following accounting dilemmas. In each case, what decision would you make and what accounting principles are relevant to the resolution:

   1. An employee has been discharged and this month is being paid severance pay equal to two months’ salary. Should this severance pay be considered an expense of this month, or should it be split between the next two months?

   2. Certain items have been in inventory for more than a year; there is only a 30 percent probability that they will ever be sold or used. Should their value be removed from the total inventory value?

   3. A manufacturer of sophisticated analysis instruments ships a new model to an important customer; the customer agrees to try the new model for two months and then either return the instrument or pay full price for it. Should this shipment be counted as a sale this month? If not, should you account for a decrease in inventory value and, if so, how?

   4. The company president purchases 1,000 shares of stock from a former employee of the company. How should the company account for this transaction?

   5. The company provides a $1,000 travel advance to the sales manager, who is about to depart on a business trip to Japan. What entries, if any, would you make?

   6. A major customer with a $400,000 outstanding account receivable declares bankruptcy. What entries, if any, would you make?

   7. Your company purchases $500 of merchandise from a vendor who offers a 10% discount if your company pays the invoice within 15 days. In the past, your company has always taken such lucrative discounts for prompt payment. At what value should you record this inventory and the corresponding account payable?

   8. Your company pays $120 for telephone classified advertising for the coming year. Should you treat that as an advertising expense of the current period? If yes, why? If not, how might you account for it?

   9. Annual interest charges on your five-year loan are $1,200, payable at the end of each calendar quarter. Should you recognize any interest expense in February? If so, how?

   10. Your company owns a computer for which it paid $8,000 two years ago. The computer is still carried at that value in your fixed asset valuation. You now believe that the computer will be worthless in two more years. Should you adjust the value of the computer at this time? If so, how?

For each Canadian, or resident of Canada, their CPP payments are calculated on their

Select one:

a. income earned between the YBE and YMPE.

b. income earned below the YBE.

c. total employment earnings.

d. total income taxes paid.

You are an eager and ambitious young graduate of the Reginal F. Lewis College of Business at Virginia State University with a new Accounting degree and a great life ahead of you. One of your closest friends is an inventor and an entrepreneur who wants to start a business selling a break-through new drywall screw that he has invented and that he believes works much better than the drywall screws currently on the market. He wants to start the business by opening a factory to produce the screws which can then be sold to either wholesalers or retailers who will then sell them to the general public. After searching all over creation for the right sized building in the perfect location to properly meet the needs of his target customers, he found that the ideal building in which to put up his factory was right here in Petersburg all along. To begin, he was able to purchase the building he needed outright for $525,000. Useful life of the building is 40 years and it is depreciated on a straight-line basis. Estimated salvage value is $25,000. Property taxes on the building each year are $3,500. There is a new machine that another fellow VSU grad has invented that takes the metal for the screws and molds them into their proper size and shape, and takes the plastic for the anchors and molds them into their proper size and shape; an assembly line is attached to the machine where workers put the screws and anchors into boxes. The finished product is a box of 32 drywall screws and their plastic anchors that work unlike any that have come before them. He purchased this machine outright for $175,000. The machine has a useful life of 25 years with no residual value and is depreciated on a straight-line basis. The machine can produce 23,000 boxes of screws and anchors per year. He is sure that he can sell every unit produced. It is determined that to produce the 32 screws in each box will require 112 ounces of metal which is the only material used to make the screws and to produce the 32 anchors in each box will take 48 ounces of plastic which is the only material used to make the anchors. The metal you need is produced by multiple suppliers and you've found one so far that will allow you to buy it at $1.50 per pound. The plastic used is also produced by multiple suppliers and you've found one so far that will allow you to buy it at $.15 per pound. It takes 15 minutes for the workers on the assembly line to box the screws and anchors because they are put in there in a way that prevents them from becoming disorderly. This is part of the quality aspect of the product. Assembly line workers are paid at a rate of $17.00 per hour. Your friend hired a Vice President (VP) who has a degree in Marketing from VSU. She did some market research and determined that in order to be competitive with your new product you are going to charge $20.75 per box of screws and anchors. The Vice President is paid $58,000 per year. He also hired a Chief Operating Officer who will be paid $58,000 per year. Your friend has also asked you to serve as a consultant to his company to make sure that the business gets off to a good start. Your fee has not yet been determined and is not part of this problem Please answer only these questions,

Prepare a variable costing format income statement assuming that the company makes and sells the maximum possible number of units. If the income is negative, what is the reason? What is the new break-even point after implementing your solution? What is the maximum income the company can make after implementing your solution? Is this enough profit to justify going into business?

Prepare both an absorption costing income statement and a variable costing income statement to reflect your solution. State your assumptions about the number of units produced and the number sold.

Greg and Cindy Hana, 35 and 27, are the parents of two small children with a third on the way. They are concerned about their financial future and are wondering if they're doing things right. Greg is the sole breadwinner and earns $66,000 annually. He works in a relatively dangerous occupation (city cop in Newark, NJ) and is eligible to receive a pension when he is only age 48, with 25 years of service.

The Hana's short-term financial goals are to replace their aging cars in a few years and begin an automatic mutual fund investment program. Longer term, they are concerned about college costs and retirement. They estimate (but are not sure) that their monthly expenses average $2,800, including a $1,300 mortgage payment on their $200,000 home.

Greg currently saves $350 per month in a deferred compensation plan offered by his employer. The couple also has $1,000 of stock and $2,000 in mutual funds. Other assets comprising their $74,500 net worth are a $3,000 CD, $2,000 in checking, $6,500 of life insurance cash value, their home, and two cars worth $2,000. The couple's two debts are a $141,000 mortgage balance and a $1,000 Visa card bill.

The Hanas own life insurance policies totaling $400,000 ($300,000 through work) on Greg and $77,500 on Cindy but lack disability coverage. Greg's employer provides health insurance for the entire family. The liability limits on their auto and homeowner's policies are $300,000.

Neither spouse has individual retirement accounts (IRAs). Greg will receive a traditional defined benefit pension based on his income and years of service. Since he will be relatively young when he is eligible to collect benefits, he plans to continue working in a related field through his 60s.

A glaring weakness in the Hana's financial planning is their lack of a will. "We do not know who to assign as guardians of our children," notes Greg. This is a common dilemma for parents of young children, who sometimes wait until their children are grown to draft a will so they don't have to deal with this issue.

1. 3 – 5 recommended action steps to improve the individual or family’s financial situation

2. Recommended financial products such as bank accounts, insurance policies, and mutual funds

3. Available resources that can assist the individual or family to improve their finances

The accompanying data represent the miles per gallon of a random sample of cars with a​ three-cylinder, 1.0 liter engine.

LOADING...

Click the icon to view the data

(a) Compute the​ z-score corresponding to the individual who obtained

36.336.3

miles per gallon. Interpret this result.The​ z-score corresponding to the individual is

nothing

and indicates that the data value is

nothing

standard​ deviation(s)

▼

the

▼

​(Type integers or decimals rounded to two decimal places as​ needed.)

​(b) Determine the quartiles.

Q1equals=nothing

mpg

​(Type an integer or a decimal. Do not​ round.)

Q2equals=nothing

mpg

​(Type an integer or a decimal. Do not​ round.)

Q3equals=nothing

mpg

​(Type an integer or a decimal. Do not​ round.)

​(c) Compute and interpret the interquartile​ range, IQR. Select the correct choice below and fill in the answer box to complete your choice.

​(Type an integer or a decimal. Do not​ round.)

A.

The interquartile range is

nothing

mpg. It is the range of the observations between either the lower or upper quartile and the middle​ quartile; it captures​ 25% of the observations.

B.

The interquartile range is

nothing

mpg. It is the range of the observations between the lower and upper fences.

C.

The interquartile range is

nothing

mpg. It is the range of the middle​ 50% of the observations in the data set.

D.

The interquartile range is

nothing

mpg. It is the range of all of the observations in the data set.

​(d) Determine the lower and upper fences. Are there any​ outliers?

The lower fence is

nothing.

​(Type an integer or a decimal. Do not​ round.)

The upper fence is

nothing.

​(Type an integer or a decimal. Do not​ round.)

Are there any​ outliers? Select the correct choice below​ and, if​ necessary, fill in the answer box to complete your choice.

A.

The​ outlier(s) is/are

nothing.

​(Type an integer or a decimal. Do not round. Use a comma to separate answers as​ needed.)

B.

There are no outliers.

Please read the case and answer the three questions below in specific

A group of bright and entrepreneurial graduates of the American University of Dubai Engineering, Arts and Sciences, and Business colleges has formed an idea generation company called ThinkTank4U. The company is built on an innovative idea itself. In a knowledge economy, new, novel and practical ideas become keenly sought-after ‘goods’. ThinkTank4U offers to its clients ‘ideas’ on a wide range of issues and themes including: how to bring new products to market, how to compete, how to grow, how to improve performance, how to deal successfully with competitors, complementors, customers, suppliers, and own employees. The mission of ThinkTank4U is to help clients with new working ideas that translate into greater performance. The company guarantees its clients the success of its ideas. It shares the revenue generated by its ideas with the client based on a formula agreed in advance by both of them. If no revenue is generated by the company’s ideas, it charges no fees for the assignment completed for the client.

The company is composed of a core group of four self-managed teams of ‘Ideators’ (the term used to describe team members indicating their task as idea generators) and helped by supporting contractual professional staff. Each team has on average seven members and is coordinated rotationally by the Ideator having the most valuable expertise in the basic issue of the assignment at hand. For example, if the client is asking for new advertising campaign ideas for promoting an electronic device, the team will be coordinated by the Ideator who has the most experience in the field of advertising. The company has no ranks in its structure, which is mainly based on teams and committees. The company also has a sophisticated information system that can be accessed by everybody in the core group.

After each assignment is completed, the team members set together for reflection. They make sure that the experience gained from the assignment is extracted, shared, and documented. The team learns how to better structure thinking, manage debate, activate participation, expose hidden assumptions, gain new knowledge, be acquainted with new industries, and so on. They revise their processes and outputs and try to discover weaknesses, gaps, and flaws in their working style, team structure, or relationship with clients. The company has a regular internal electronic publication it calls ‘The Pool’, where team members can present their thought, learned experiences, and ideas to share with the rest of the company.

The company’s strategic decisions are taken in general meetings coordinated by the company’s eldest member. The operational decisions are overseen by the committee of the current team coordinators. There are clear but simple policies and decision rules about how to make operational decisions to maintain consistency and to preserve the precious time of team coordinators. Strategic decisions are made by consensus whenever that is possible. When consensus is difficult to obtain in one session, another session is scheduled where arguments have to be presented, debated and then their merit is evaluated (by all members) using a scoring system from 1 (= weak) to 5 (= strong). The argument with the highest evaluation score will be wholeheartedly adopted by all.

The supporting contractual professional staff has a traditional pay policy unconditional upon the company’s performance. The core group pay, however, is based on performance of each member as evaluated by all members of the team. Each assignment’s revenue is divided into three parts: one third goes to the company’s account, one third is shared equally among the team members, and one third is allocated according to the contribution of each member as evaluated by the whole team.

Performance evaluation of Ideators is done by their teammates. Evaluation components are based on active and positive participation in clients’ assignments and in the running of the company’s affairs. These include skills such as initiative, creativity, debate, refutation, cooperation, knowledge sharing, the impartiality of judgment, and professionalism; and personal traits such as integrity, openness, responsiveness, sympathy, and willpower. There is a very strict exit policy. A team member who ranks last in evaluation in five consecutive times has to leave the company. Ranking last in performance in two consecutive times triggers an immediate inquiry into the reasons behind this ‘fatigue’. It also necessitates conducting what the company calls a ‘climbing’ session by all team members who offer help by sharing their experience and knowledge and by encouraging their teammate to climb back to high performance.

The company’s work culture and evaluation and support system succeed only on the basis of honesty, trust, and sheer candor (straightforwardness), traits that are at the heart of the hiring process of the company in addition to other competencies related to creative thinking and other soft skills. Members also have to possess strong characters to be able to withstand pressures, biases, and negative tendencies. These qualities are not easily found in many of the applicants who dream to join this company. Hiring is done by each team according to its own judgment but with non-binding consultation and coordination with other team coordinators. There is a well-established rule governing team size. When the size of a team exceeds 10 members it splits itself into two teams with each hiring new members if necessary. This is how new teams are formed out of current teams.

One of the company’s teams is currently working on a client’s assignment that requires the generation of ideas about how to increase sales of children’s games after the Eid season. A recently hired member of the team, known for his experience, knowledge, and creativity, has come with the following strategy:

• Make a strong advertisement campaign on TV channels watched widely by children to promote new games (reason: children will solicit promises from their parents to buy them these games in the Eid season).
• Supply limited numbers of these games to children’s toys stores and make available less attractive games (reason: children have to have games in the Eid season and when they cannot find their most desired ones they will ask their parents to buy them alternative games of equal value).
• Run the same strong advertisement campaign again after Eid season (reason: children will desire to have these games more than ever).
• Flood the children’s toy stores with these games (reason: children will remember their parents’ promises and pressure them to buy these games. Parents cannot refuse otherwise they look bad in the eyes of their children for not fulfilling their promises).

Please Answer the three questions below (be specific):

1. Assess the virtuousness of ThinkTank4U Company. (Virtue ethics, the focus on integrity the character not the act).
2. How ethical is the strategy suggested by one of the Ideators on how to increase sales of children’s games after Eid seasons? Base your evaluation on a specific ethical theory. (Choose one of theories: Utilitarian, deontological and justify)
3. How does the recently hired member of the team, who suggested the strategy, fit the culture of ThinkTank4U Company? Explain

Describe a complete diagnostic evaluation session. Include all measures that are administered from beginning to end giving details and examples. Explain why we perform each step of the evaluation and what information it gives us towards a diagnosis. How do the findings from the evaluation translate into a diagnostic report?

Ronald Smith owns a home at 7890 Brookfield Lane, Chicago, Illinois. The garage in the back of,

the house is beginning to fall down so he decides to build a modern two-car garage in its place.

He calls Garages R Us for a free estimate on a new garage. Sam "the Salesman" Jones comes out

and shows Mr. Smith the various styles of buildings and the costs involved. In addition to the

pictures, Mr. Jones tells Mr. Smith that once they tear down the old garage, they put a 1/4" layer

of gravel down. They then lay 10 steel rods widthwise and 4 steel rods lengthwise on top of the

gravel. Only when that is done do they start pouring the concrete. The extra gravel and rods

(which are not done by every company) are designed to give additional strength to the floor so

that there will never be a problem with it being able to hold 2 automobiles at one time. Sam

shows him some diagrams of what he is talking about.

Ronald is impressed and chooses the garage he likes best. Sam then asks how he intends to pay

for the work. When Ronald tells him that he was going to go to a bank to get a loan, Sam tells

him about the financing options they have through Garages R Us. Ronald likes the terms and

signs a contract for the building of the garage (which does not contain any information about the

gravel or the rods and does not contain any pictures as he had been shown) subject to approval of

the financing.

After the financing is approved, Garages R Us assigns their rights to payment from Ronald to the

Bedford Park Savings and Loan Association. Notice is sent to Ronald of the assignment.

The workmen tear down the original garage and start to construct the new one. Ronald, who is

retired, watches out of his back window every day as they work: As they begin to lay down the

gravel and rods, he notices that they are not doing what he had been told they would do. They

have scattered some gravel across the ground, but in no way is it 1/4" thick. They have spread

some rods across the ground, but there are 4 across widthwise and 2 across lengthwise.

Ronald immediately rails Sam and begins to complain. Before Sam can get out to the house to

talk to Ronald, the workers poured the concrete and it set. Ronald wants the concrete broken up

so that he can show Sam what is underneath. Sam tells him that if they do that, Ronald will be

responsible for the cost of laying down new concrete. They get into a shouting match, Ronald

tells the workers to stop work and Sam leaves.

After one month goes by, the Bank calls Ronald to find out where the first month payment is.

Ronald tells the Bank that he is not going to pay for work that wasn't completed and wasn't done

right to begin with. The Bank and wants to sue Ronald. Ronald wants to sue Garages R Us.

In your opinion do any of them have a good cause of action to sue anyone. If sued, does anyone

have any defenses? In addition to the elements of a contract, you may wish to discuss breach,

material breach, assignment, preventing performance, parole evidence and misrepresentation.

MERMED Inc. is a medical device manufacturer.

The company’s headquarters is located in Houston, Texas. It is a global leader in developing, manufacturing, selling and servicing diagnostic imaging and therapeutic medical devices used to diagnose and treat cardiovascular and other diseases. MERMED earned $300 million of revenue in 2015, while employing more than 10,000 people worldwide. One of it’s manufacturing plants is located in Dingle, Co. Kerry, Ireland. Tom Jones is the plant manager at the Dingle facility.

The Dingle site runs 12 hour shifts, 7 days a week. It has 1000 employees. It manufactures a variety of of medical devices (including Class III devices). A number of it's products are sold in the US and European markets. The facility has a Quality Management System in place. Their Quality Management System is in compliance with ISO 13485:2016 and 21 CFR 820. Their facility is frequently audited by Notified Bodies and the FDA.

The site was recently audited by corporate. The corporate auditing team were checking the site's compliance with ISO 13485:2016 and 21 CFR 820. The auditors found a number of potential non-conformances to  ISO 13485:2016 and 21 CFR 820.

You must complete 4 tasks (for each of the 5 incidents/questions):

1.   Review each of these potential non-conformances (5 incidents in total)

2. Determine if they are non-conformances against the requirements of the ISO13485:2016 AND 21 CFR 820.

3. If they are non-compliances, write down the specific clause numbers in ISO 13485:2016 AND specific section number of 21 CFR 820 which is applicable (write down the main clause/section in each regulation that the non-compliance is against).

Note:  ISO 13485:2016 and 21 CFR 820 are available in the "Additional Resources" section, under the section heading "Quality Systems Regulations (EU and US)" (contained within Section A Medical Device Regulatory Affairs).

4. Briefly EXPLAIN your decision in 100-170 words.

QUESTION 4

The operation of a weighing scale (equipments ID 186749) was reviewed by the inspector in the Box Packing section. The weighing scale was in use during the current shift. The operating procedure (SOP18654) for the scale states that it must be calibrated at the beginning and end of each shift. The operating procedure states that that the calibration of the scales is recorded in a log book(Calibration Log for ID 186749 ). The inspector asked to review this log book. The maintenance technician who was interviewed said that the log book was held by the maintenance technician on the night shift and he always kept it in his desk drawer which was locked.

MERMED Inc. is a medical device manufacturer.

The company’s headquarters is located in Houston, Texas. It is a global leader in developing, manufacturing, selling and servicing diagnostic imaging and therapeutic medical devices used to diagnose and treat cardiovascular and other diseases. MERMED earned $300 million of revenue in 2015, while employing more than 10,000 people worldwide. One of it’s manufacturing plants is located in Dingle, Co. Kerry, Ireland. Tom Jones is the plant manager at the Dingle facility.

The Dingle site runs 12 hour shifts, 7 days a week. It has 1000 employees. It manufactures a variety of of medical devices (including Class III devices). A number of it's products are sold in the US and European markets. The facility has a Quality Management System in place. Their Quality Management System is in compliance with ISO 13485:2016 and 21 CFR 820. Their facility is frequently audited by Notified Bodies and the FDA.

The site was recently audited by corporate. The corporate auditing team were checking the site's compliance with ISO 13485:2016 and 21 CFR 820. The auditors found a number of potential non-conformances to  ISO 13485:2016 and 21 CFR 820.

You must complete 4 tasks (for each of the 5 incidents/questions):

1.   Review each of these potential non-conformances (5 incidents in total)

2. Determine if they are non-conformances against the requirements of the ISO13485:2016 AND 21 CFR 820.

3. If they are non-compliances, write down the specific clause numbers in ISO 13485:2016 AND specific section number of 21 CFR 820 which is applicable (write down the main clause/section in each regulation that the non-compliance is against).

Note:  ISO 13485:2016 and 21 CFR 820 are available in the "Additional Resources" section, under the section heading "Quality Systems Regulations (EU and US)" (contained within Section A Medical Device Regulatory Affairs).

4. Briefly EXPLAIN your decision in 100-170 words.

QUESTION 4

The operation of a weighing scale (equipments ID 186749) was reviewed by the inspector in the Box Packing section. The weighing scale was in use during the current shift. The operating procedure (SOP18654) for the scale states that it must be calibrated at the beginning and end of each shift. The operating procedure states that that the calibration of the scales is recorded in a log book(Calibration Log for ID 186749 ). The inspector asked to review this log book. The maintenance technician who was interviewed said that the log book was held by the maintenance technician on the night shift and he always kept it in his desk drawer which was locked.