Maher Inc. reported income from continuing operations before taxes during 2020 of $790,000. Additional transactions occurring in 2020 but not considered in the $790,000 are as follows. 1. The corporation experienced an uninsured flood loss in the amount of $90,000 during the year. 2. At the beginning of 2018, the corporation purchased a machine for $54,000 (salvage value of $9,000) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2018, 2019, and 2020, but failed to deduct the salvage value in computing the depreciation base. 3. Sale of securities held as a part of its portfolio resulted in a loss of $57,000 (pretax). 4. When its president died, the corporation realized $150,000 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of $46,000 (the gain is nontaxable). 5. The corporation disposed of its recreational division at a loss of $115,000 before taxes. Assume that this transaction meets the criteria for discontinued operations. 6. The corporation decided to change its method of inventory pricing from average-cost to the FIFO method. The effect of this change on prior years is to increase 2018 income by $60,000 and decrease 2019 income by $20,000 before taxes. The FIFO method has been used for 2020. The tax rate on these items is 30%. Prepare an income statement for the year 2020 starting with income from continuing operations before taxes. Compute earnings per share as it should be shown on the face of the income statement. Common shares outstanding for the year are 120,000 shares. (Assume a tax rate of 30% on all items, unless indicated otherwise.) (Round earnings per share to 2 decimal places, e.g. 1.48 and all other answers to 0 decimal places, e.g. 5,275.)

Sheridan Inc. reported income from continuing operations before taxes during 2020 of $804,900. Additional transactions occurring in 2020 but not considered in the $804,900 are as follows.

Prepare an income statement for the year 2020 starting with income from continuing operations before taxes. Compute earnings per share as it should be shown on the face of the income statement. Common shares outstanding for the year are 108,490 shares. (Assume a tax rate of 30% on all items, unless indicated otherwise.) (Round earnings per share to 2 decimal places, e.g. 1.48 and all other answers to 0 decimal places, e.g. 5,275.)

DGP, Inc. sells 100,000 Gizmos to a retailer in Europe for €100,000 (Euros) on terms of 30 days from the date of invoice. The current rate of the EUR/USD is 1.3868; therefore, DGP, Inc. books the sale as an accounts receivable of US $138,680.

Instructions

1. Define and discuss the concepts of currency exposure risk, translation exposure, and economic exposure.
2. If the exchange rate of EUR/USD was 1.2868 in 30 days, what would be the impact on the company’s profit and loss at the time of the receipt of payment from the European customer? Include calculations.
   • What would be the economic exposure for the company? Include calculations.
   • What would be the translation exposure, if any? Include calculations.
3. What would be the impact on the company’s profit and loss at the time of the receipt of payment from the European customer if the exchange rate was EUR/USD 1.4868 in 30 days? Include calculations.
   • What would be the economic exposure for the company? Include calculations.
   • What would be the translation exposure, if any? Include calculations.
4. How could DGP, Inc. eliminate or reduce these exposure risks? Provide 2 hypothetical examples to support your answer.

Marketing Strategy

Marketing scenario:

Congratulations. You have just been named marketing manager. Your job will be to perform the daily tasks of a marketing manager.

So what does a marketing manager do? As you know, marketing plays an essential role in almost every industry segment. In its simplest form, marketing management is about making certain that customers' needs and wants are met while increasing the profits of a company. A marketing manager's responsibilities can vary a great deal, but will always have this as a central purpose.

Your company just acquired another company that manufactures and sells packaged ice. Traditionally the company has sold in bulk to industrial users. You want to sell to consumers.

please do not give me any short answers thank you

What Advice would you give to the  New CEO for Wells Fargo to fix the previous fraudulant charges?

Compensation between the CEO and their employees. What are three ethical reasons why they SHOULDN'T be compensated significantly more.

You are an auditor in Smit & Chandra, a mid-tier audit firm. Your firm is the incumbent auditor on Biotech Ltd, a pharmaceutical company. Since the previous audit, the company has listed on the Australian Securities Exchange which means the company has to meet additional reporting regulations. Due to rapid growth, Biotech Ltd is financially stretched and its accounting systems are struggling to cope with the growth in the business. You recently read an article in the Australian Financial Review, which stated that Biotech Ltd is currently under investigation by the Australian Taxation Office (ATO) for alleged failure to pay the appropriate amount of Pay As You Go (PAYG) tax on their payroll.

Biotech Ltd is a pharmaceutical company, developing drugs to be licensed for use around the world. Products include medicines such as tablets, medical gels and creams. The market is very competitive, encouraging rapid product innovation. New products are continually in development and improvements are made to existing formulations. Drugs must meet very stringent regulatory requirements prior to being licensed for production and sale. You are aware that during the 2020 financial year, Biotech Ltd lost several customer contracts to overseas competitors.

Biotech Ltd approached its bank during the year to extend its borrowing facilities. An extension of $20 million was sought to its existing loan to support the on-going development of new drugs. The long-term borrowings are subject to debt covenants in which the company must maintain a current ratio of 3.5:1.

In addition, the company asked the bank to make cash of $5 million available if an existing court case against the company is successful. The court case is being brought by an individual who suffered severe side effects when participating in a clinical trial in 2016.

On 8 June 2020, the Company announced to the market it had been the victim of a cyber-security incident that resulted in supplier and customer details being disclosed on the dark web. The Company is assessing the costs of the incident and the subsequent reduction in revenue. The Company expects this to have a material impact on future earnings.

In December 2019, the internal audit department of Biotech Ltd performed a review of the operation of controls over processing of overtime payments in the Payroll department. It was found that the company’s specified internal control procedures in relation to the processing of overtime payments were not followed.

Below are some results of the analytical review procedures performed by the Senior Auditor (David) during the planning stage:

Sales                                                                                                            12.5% decrease since prior year

Net profit after tax                                                                                20% decrease since prior year

Accounts payable                                                                                   15% decrease since prior year

Cash at Bank                                                                                             16% increase since prior year

Accounts receivable                                                                              18% increase since prior year

Inventories                                                                                               6%   increase since prior year

Current ratio:                                                                                            3.6:1

Debt to Equity ratio:                                                                               0.6

Minutes from the Audit Planning meeting with Simon Jones (Finance Director of Biotech Ltd) held on 30^th April 2020:

Due to the current government restrictions, the planning meeting with Simon Jones was held via Zoom. In attendance at the meeting was the Audit Partner (Michael), the Audit Manager (Amanda) and the Audit Senior (David).

The following key items were discussed during the meeting:

• Mr Jones raised concerns about the conduct of the previous audit, stating numerous examples of when he and his staff had been interrupted when they were busy. He stated that he wanted guarantees that this year's audit will be more efficient, less intrusive and cheaper, otherwise he will seek an alternative auditor in future.
• Michael reminded Mr Jones that fees relating to the audit engagement from the previous year were still outstanding.
• Both Michael and Mr Jones also discussed the range of non-audit services provided to Biotech Ltd, which includes payroll preparation, tax computation and advice.
• Mr Jones gave the audit team an update on the court case pertaining to the individual who suffered severe side effects from a company trial (refer above). According to legal advice provided to Mr Jones by the company’s legal counsel, it is more likely than not that Biotech will lose the court case, which would result in a significant amount of cash having to be paid as a settlement.
• Amanda asked Mr Jones if he considered the decline in profitability as an indicator of a material uncertainty surrounding the going concern assumption. Mr Jones responded by saying, “Look, everything might seem dire, but we have it under control. We will be here this time next year, so keep that in mind”. Michael then looked at Amanda and David and said, “Make sure that you mention the conversation that we have just had with Mr Jones about the appropriateness of the going concern assumption in the audit working papers. This should be sufficient enough audit evidence for us.”
• Mr Jones also mentioned the following: “As you know, Biotech Ltd has a Goodwill asset on the balance sheet. This is an indefinite useful life intangible asset. In accordance with the Accounting Standards (AASB 138), we are required to test the asset for impairment every year. We usually prepare a Value in Use calculation based on discounted future cash flows that we expect to generate in the next five years. I have completed this year’s calculation by rolling forward the prior year’s calculation and have just updated the dates. There was no need to update the future cash flow figures.”

The Audit Team

The audit team consists of 4 people. The partner is Michael. He has been the audit partner on the Biotech Ltd audit for 6 years. The audit manager is Amanda. This is Amanda’s first time on the Biotech Ltd audit. David is the audit senior and is responsible for the initial audit planning. David has recently completed the Graduate Diploma of Chartered Accounting. David has just been offered a well-paying accountant position at Biotech but he has not yet decided whether to accept the position. The graduate on the audit is Audrey. Audrey’s friend is the receptionist at Biotech Ltd. The receptionist has no accounting knowledge and has no involvement with the recording or processing of accounting transactions.

Accounts Receivable / Sales Accounting Cycle and Internal Control System

At the end of each month, the sales manager determines the amount of products required to meet sales demand for the following month based on sales orders received. He reviews the sales orders received from customers and then prepares the pre-numbered inventory requisition forms, which he then sends to the warehouse managers so that they can prepare the goods for delivery. One copy of the sales order and inventory requisition form is sent to the warehouse, one copy is sent to the accounts receivable department and one copy is filed in the sales department.

The warehouse prepares the goods for delivery to the customers and generates the delivery document. When the goods have been delivered, the signed delivery document, which includes the delivery details, is forwarded to the accounts receivable department. The other copy is filed in the warehouse. The accounts receivable clerk matches the signed delivery document with the sales order and inventory requisition form. Once satisfied that all of the details agree, the clerk generates the sales invoice. Once generated, the clerk does another check to ensure that all details per the sales invoice agrees to the delivery document and sales order. Once satisfied, she writes “checked” on the sales invoice and sends it to the customer. At the end of every week, a different clerk in the Accounts Receivable team reviews the bank statements for receipt of payments from customers and performs a reconciliation against the sales invoices. Once a customer has paid the sales invoice, the clerk stamps “received” on the sales invoice and files that along with all the other documents in date order.

The walk-through of the accounts receivable/sales cycle confirmed that the accounting and internal control system was working as documented above.

Test of control:

As part of the audit, Audrey tested the controls over the accounts receivable system. She selected a sample of twenty sales transactions and tested the control that all details had been checked. Out of the 20 sales transactions that were selected for testing, 5 sales invoices in the sample did not have the word “checked” written on them. When documenting the results of the test performed, Audrey concluded that the internal control did not operate effectively and consistently throughout the year but that no further audit work is required.

Substantive test

In order to test the occurrence of the sales transactions, Audrey selected a sample of sales invoices and traced them to the General Ledger to test that they were properly recorded.

Subsequent events not previously mentioned

• One of Biotech Ltd’s major customers went into liquidation in July 2020. The balance due from the customer at 30 June 2020 was $564,000. This is a material amount. There has been no provision/allowance for doubtful debts raised for this debtor in the financial statements for the year ended 30 June 2020. Biotech Ltd’s legal adviser stated in a telephone call that that the probability of any funds being received from the debtor is remote.

• On 2 July 2020, Biotech Ltd declared a one-for-five rights issue of 100,000 shares at $2.20. These shares were payable in full on 31 July 2020.

What are the strengths and weaknesses in the payroll cycle?

What misstatements this control should prevent? State the control test that one could undertake to the test the control is operating as expected?

1. We fear the judgement of our peers, which causes us to become _____ in our thinking? Discuss.

2.Before we take risks we need some kind of security. Explain what this means.

3.Playfulness helps us to get better creative solutions, do our jobs better, and help us feel better when we do them. Give an example from your own experience.

4.When we first encounter any new material, we ask “what can we do with it”. Provide an example from a child and adult.

5.A barrier to adult creativity is self-editing. Explain.

6. He discusses “informal prototyping” and available materials to allow for exploration and design. Why do offices and schools remove most adaptive materials.

We ran across this one in the OECD healthcare data. The country names had numbers appended, which served as footnotes in the original spreadsheet but looked dumb when we used them as index labels. The question is how to eliminate them. A short version of the country names is

`names = ['Australia 1', 'Canada 2', 'Chile 3', 'United States 1']`

Do each of these in a separate code cell:

1. Set `us = names[-1]` and call the `rsplit()` method on us. What do you get?
2. Consult the documentation for `rsplit` to split `us` into two pieces, the country name and the number 1. How would you extract just the country name?
3. Use a loop to strip the numbers from all of the elements of `names`.
4. Use a list comprehension to strip the numbers from all of the elements of `names`.

The gender wage gap in the United States:

Group of answer choices

proves the existence of discrimination.

may be partially due to factors other than wage discrimination.

proves that men on average invest more in human capital than do women.

indicates that men are on average smarter than women are.

Scenario 18-7
Suppose the following events occur in the market for university economics professors.

Event 1: A recession in the U.S. economy lowers the opportunity cost of going to graduate school in economics to become a university economics professor.

Event 2: A decreasing number of students in U.S. primary and secondary schools decreases the number of students entering college and university.

Refer to Scenario 18-7. As a result of these two events, holding all else constant, the equilibrium quantity of university economics professors will

Group of answer choices

increase.

decrease.

not change.

It is not possible to determine what will happen to the equilibrium quantity.

Scenario 27
Suppose the following events occur in the market for university economics professors.

Event 1: A recession in the U.S. economy lowers the opportunity cost of going to graduate school in economics to become a university economics professor.

Event 2: A decreasing number of students in U.S. primary and secondary schools decreases the number of students entering college and university.

Refer to Scenario 27. As a result of these two events, holding all else constant, the equilibrium wages of university economics professors will

Group of answer choices

increase.

decrease.

not change.

It is not possible to determine what will happen to the equilibrium wages.

Other things being equal, what happens to labor supply in the pear-picking market when the wage paid to apple pickers decreases?

Group of answer choices

The labor supply will stay unchanged until the wages paid to pear pickers change.

The labor supply will decrease.

The labor supply will increase.

The labor supply may fall or rise, depending on the price of pears.

Scenario 22
Sam has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where he earns $11 per hour. During the summer, he drives a tour bus around the ski resort, earning $13 per hour.

Refer to Scenario 22. During the winter months, what is Sam's opportunity cost of taking an hour off work to go skiing?

Group of answer choices

$13

between $11 and $13

$11

less than $11

Your college roommate receives a pay raise at her part-time job from $9 to $11 per hour. She used to work 25 hours per week, but now she decides to work 30 hours per week. For this price range, her labor supply curve is

Group of answer choices

vertical.

horizontal.

upward sloping.

backward sloping.

Which of the following could increase the supply of labor in the market for cranberry pickers?

Group of answer choices

(ii) only

(i), (ii), and (iv) only

(i) and (iv) only

(ii) and (iii) only