Kat works as a global marketing manager for New Balance, a sneaker and apparel company located just outside of downtown Boston. She loves to eat at the restaurant near her office. Her favorite food is their specialty, Cuban sandwiches. If you're looking for Kat, you never have to look too far; you can find her here daily.
Kat hires a new member for her team, Marnie who recently transferred from their Middle East location. Marnie joins Kat for the Cuban sandwich on her first day and loves it. When they get on the elevator to go back to their office, Kat chuckles and says that every time she leaves the restaurant she says she smells like a cab driver.
Marnie was silent, not sure how to respond to Kat's comment. Marnie was offended, her boyfriend drives a cab.
What if the elevator was occupied by workers whose parents drove cabs? How could Kat's comments be taken? Choose all that apply.

Select one or more:

a. Kat's comment could be viewed as ignorant, racist, or offensive

b. Kat's comment is funny

c. Wow, what kind of company does she work for?

d. Ugh, I don't want to want to come here again

Kat works as a global marketing manager for New Balance, a sneaker and apparel company located just outside of downtown Boston. She loves to eat at the restaurant near her office. Her favorite food is their specialty, Cuban sandwiches. If you're looking for Kat, you never have to look too far; you can find her here daily.
Kat hires a new member for her team, Marnie who recently transferred from their Middle East location. Marnie joins Kat for the Cuban sandwich on her first day and loves it. When they get on the elevator to go back to their office, Kat chuckles and says that every time she leaves the restaurant she says she smells like a cab driver.
Marnie was silent, not sure how to respond to Kat's comment. Marnie was offended, her boyfriend drives a cab.
Kat has a meeting with a new client Abe from Algeria. He was riding in the elevator when Kat made the comment about smelling like a cab driver. Abe's father is a cab driver. His mother was recently diagnosed with breast cancer and the doctor said that it was likely caused by the deodorant she was wearing and requested that she stop wearing deodorant while she is being treated with chemotherapy. She is very self-conscious about not wearing deodorant. Abe is extremely appalled at Kat's comments and requests to speak with Kat's manager. What could happen as a result of Kat's behavior? Choose all that apply.

Select one or more:

a. Kat's manager removes Kat from the project

b. Kat receives additional training on how to be more culturally aware

c. Abe does not sign the contract and claims that it was Kat's comments that was the deciding factor

d. Marnie becomes head of the project and Abe signs the contract

e. Nothing, Kat was trying to be funny and this has been taken out of context

Misc Information: Mr. Burns sold off all of his fixed assets from the nuclear power plant. Also, there was an adjustment to the allowance for uncollectible account during your brief respite. Mr. Smithers performed the necessary entries to get the books up to date; this included the reduction of the mortgage payable. However, you will calculate interest expense, bad debt expense, and depreciation expense. These amounts will not be given to you. Good luck and time manage appropriately. ***For any note/mortgage payable, you find interest expense the same way you find interest revenue. ***

Check Figures:

                        Unadjusted Net Loss: ($9,737)

                        Adjusted Net Loss: ($360,991)

Journal Entries:

1. January 2: After returning from exile, Mr. Burns invested $600,000 of personal funds directly in the business (retained earnings) to strengthen his grip on the cookie market. No common stock ownership was given.

2. January 3: In order to keep the IRS off his trail, Mr. Burns transferred money from his personal account into a Cayman Island secret account for $1,000,000.

3. January 3: In order to expand his cookie factory and be able to dump toxic waste without being impeded by the Feds, Mr. Burns bought land for cash for $500,000. The bald children in the park were drawing attention from the Environmental Protection Agency.

4. January 4: After threatening to block out the sun, Mr. Burns was able to collect $115,000 of the 2020 accounts receivable beginning balance.

5. January 5: In order to ease his beginning of the year cash flow crunch, Mr. Burns issued Common Stock (1,500,000 shares at $2.00 per share). The Par Value is $1.00 per share.

6. February 1: In order to keep up with being 104 year old hip evil billionaire, Mr. Burns decided to purchase a new truck. The truck cost $60,000. Mr. Burns put a down payment on the truck of $10,000 and took out a note for the rest (long term). The interest rate of the note is 10%. The truck will depreciated by miles. The expected life of the truck is 100,000 miles.

7. February 20: Mr. Burns sold his delicious cookies to Candy Store on account $300,000. Mr. Burns offered terms 2/20, n40. The cost of merchandise sold was $150,000.

8. February 28: Mr. Burns bought cookie dough (inventory) to keep the cookie assembly line going. Mr. Burns paid cash for the cookie dough $400,000

9. March 1^st. Mr. Burns reclassed the current portion of long term notes payable. Reclass only the portion on the balance sheet as of January 1st, 2020.

10. March 5: Mr. Burns paid for the following expenses that came in: Sales Salary Expense $70,000, Advertising Expense $50,000, and Delivery Expense $40,000. All of the expenses were paid in one transaction.

11. March 6: Mr. Burns collected $30,000 of the 1/1/2020 balance of the note receivable from Mayor Quimby. The interest rate was 15% and the Note was written on July 1^th, 2019

12. March 7: The Candy Store paid Mr. Burns what they owed him on account.

13. March 15: Mr. Burns paid income tax payable owed from last year.

If Net Sales are $30,000 and the Cost of Merchandise is $11,400, what is the Gross Margin %?

Write only the number rounded to two decimal places, do not include the % sign or Bb will mark your answer wrong