A corporation randomly selects 150 salespeople and finds that 66% who have never taken a self- improvement course would like to do so. The firm did a similar study 10 years ago and found that 70% of a random sample of 160salespeople wanted a self-improvement course. The groups are assumed to be independent random samples. Let π1and π2 represent the true proportion of workers who would like to attend a self-improvement course in the recent study and the past study,  respectively.

1. The company tests to determine at the 0.01 level whether the population proportion has changed from the previous study. Which of the following is most correct?

Case Summary

The SurveyMonkey case portrays the evolution of the company from its founding in 1999 through to 2014. SurveyMonkey was launched by Ryan Finley, a young computer science graduate from the University of Wisconsin-Madison, to address the dearth of easy-to-use, affordable online survey tools on the market. In 2009, Finley sold the company to Spectrum Equity and Bain Capital Ventures, having recognized the need for a partner to help the company achieve its full potential. David Goldberg, an entrepreneur and former Yahoo! Executive, took the helm as CEO and immediately put in place his plan to set the company on track to scale at a consistent and rapid pace of growth. Goldberg’s primary initiatives in the early days were to hire a strong management team, rebuild the entire technology platform, and expand internationally. As it made substantial progress on these fronts, SurveyMonkey completed several acquisitions and began to expand its feature set and product offerings to include SurveyMonkey Audience (panels of survey respondents) and survey templates, among others. The company completed an $800 million secondary financing raise in 2012 to provide liquidity to employees and investors in lieu of an IPO and charged forward on its efforts to transform its survey tool to a full-blown platform. Though SurveyMonkey had established itself as the dominant player in the direct-to-consumer market in 2013, it began building out an enterprise offering to compete against the other large players in the growing enterprise feedback management space. Having achieved tremendous growth in its 15-year history, the majority of which took place since the 2009 acquisition, as Goldberg and his team looked ahead to 2014, they faced the critical question of how to prioritize SurveyMonkey’s avenues for growth-international expansion, quality initiatives enterprise, platform growth-so as to best position the company to achieve its full potential.

Question: How should SurveyMonkey prioritize their avenues for growth-international expansion, quality initiatives enterprise, and platform growth so as to best position the company to achieve its full potential?

Please answer the question in 2-3 paragraphs min.

Who are stakeholders? Define who they are and then please share what particular interest each of these stakeholders have in the information shared on the income statement, retained earnings statement, balance sheet and statement of cash flows. How do we analyze if a company is healthy or not?

Organizations use budgets to reach their financial goals. A planning budget is a detailed financial plan that shows future income and expenses. For example, all of us sometimes create household budgets that plan projected income and expenses for food, clothing, housing, etc. At the end of the budgeting period, we compare what we earned and our expenses to the planning budget to make sure we followed the plan. For example, if we buy a boat and didn’t budget for that boat, what might happen? Organizations use budgets in a similar way.

We also create flexible budgets to help guide actual operations. For example, an organization’s actual expenses will rarely equal its budgeted expenses as estimated. Activities, such as sales, are rarely the same as budgeted. Many actual expenses and revenues will naturally differ from what was budgeted. A flexible budget is an estimate of what revenues and costs should have been, given the actual level of activity for the period. A flexible budget might help us to justify buying that boat!

Variance analysis evaluates and improves performance. A varianceis the difference between the actual amount and the amount budgeted in a certain time period. In other words, the amounts are different. Revenue variance is the difference between actual revenue and budgeted revenue. If the actual revenue is higher than budgeted revenue, the variance is labeled favorable. If actual revenue is less than budgeted, the variance is labeled unfavorable. Spending variances also occur. If the actual spending exceeds budgeted spending, the variance is unfavorable. If the actual spending is less than budgeted spending, the variance is favorable. As you can see, earning more than budgeted is good, but we should try to avoid spending more than what we budget. Think about the boat!

• Describe the budgeting process at your place of work. If you do not work or if this information is not available, you may describe the budgeting process you use in your personal life.
• Explain how using a flexible budget and variance analysis can help make the process you described above more effective.

1.

Which of the following statements is not true?

2.

Which of the following examples best represents a passive dividend policy?

3.

Suppose a company pays out fully franked dividends of $140 each to investors with marginal tax rates 45%. The statutory company tax rate is 30%. How much tax will each investor pay on his/her franked dividend?

4.

Apple Computer initiated a cash dividend and stock split in 1987 to:

5.

Suppose an individual subject to a 30 per cent marginal rate of income tax has 2,500 shares in a company that is paying a partially franked dividend of 40 cents per share, with a franking ratio of 0.70 (i.e. 70%). The individual is a resident for taxation purposes. If the company tax rate is 30 per cent, the tax credit can the individual claim due to the partially franked dividends is:

6.

A capital loss occurs when:

7.

The buyer of a call option has the choice to exercise, but the writer of the call option has:

8.

Suppose a stock exists with a price of $17, and a put option on the stock exists with an exercise price of $32. What is the approximate minimum value of the put option?

9.

The merger of Westpac Bank and St George bank is an example of ________merger.

10

Mr. Martin buys a put option to sell 100 shares. The strike price=$70; Current stock price=$65, price of the put option to sell one share=$7. At the time of the expiration of the put option, the share price is $72. What is the total gain or loss of Mr. Martin?

Distributors are export intermediaries who represent the company in the foreign market

True False

The Authentic Baking Taste: The Baker Corner, an authentic taste behind every success

With a strong influence from his French origins and culture, Aly Salama utilized his entrepreneurial spirit and founded The Baker Corner baking shop in 1960 in Egypt. Aly developed a special baking recipe that earned his shop a reputation as being one of the premium bakeries. Since the beginning, The Baking Corner has been a family-run business. Aly Salama’s three sons are currently managing the company; through the transition between generations, the company has aimed to deliver a premium product that is consistent and meets customer standards. Everything from the recipes being virtually unchanged to the layout and colors of the shops needed to be identical to ensure success. Every detail of the place is designed to reflect traditions and authenticity describing The Baking Corner’s as an experience that allows customers to step back in time with a handcrafted product. As customers enter the shop, The Baking Corner’s employees play a special role by their famous storytelling activities; every employee is trained to tell different stories about the bakery making and famous recipes in two to three minutes so that customers get entertained and get more knowledgeable about the brand’s identity and core values. The new generation expanded the product range to include freshly baked cakes, pastries, homemade desserts, freshly baked breads and sandwiches. Industry observers point to several aspects of the Baking Corner’s experience that make it the first choice for young adults and families seeking to get the best quality of freshly baked products at convenient prices; they want genuine home-made recipes made with high-quality ingredients, superior value, fun-filled atmosphere, warm, comfy décor, and quick, friendly service. The company’s famous slogan “The authentic Baking Taste” says it all.  

Over the years, the business expanded to be one of Cairo’s best baking services. The main headquarter is now located in 10th of Ramadan city; the three brothers managed to invest in the new location and build a new factory to become one of the main ready-made bakery suppliers to major supermarkets and grocery shops. Moreover, they continued the family’s legacy by keeping the Baker Corner shops as one of Cairo’s premium bakeries destinations: there are currently seven bakery shops around town, in addition to a new shop in Alexandria with additional plans to expand. With each new store came the difficult task of maintaining the original experience for new, prospective, and loyal customers. To ensure customer satisfaction at the new locations, the management emphasizes the critical nature of replicating every aspect of the original idea.  

In light of the current strong competition with famous bakery and pastry shops, the three brothers have decided to take their family business at a different level. Their strategy aimed at becoming one of the leading providers of frozen goods presenting a new ready to bake range offering ready-made pies, rolls, puff pastry doughs and other new freshly made and frozen goods to be stocked and ready to use within only 15 minutes. They remain committed at presenting their products with their authentic recipes offering the best quality; they consider this promise as a duty that helps protect and build the brand. Accordingly, they hired and trained the new staff to work on their production and distribution plan. They aim to supply their new frozen products to different supermarkets and grocery shops as well as to target other cafes and restaurants and sell in bigger volume.

2

Throughout the years, The Baking Corner has strived to deliver a promise to customers by staying true to the original product. Yet the company has a tough road ahead: maintain the superior performance of its old bakery shops and at the same time focus on the new expansion project. Everything from the recipes to décor of the stores need to be identical to ensure success in every new store; enthusiastic workers must be found. The owners are also concerned on how to sustain such growth in light of the global economic challenges that prevail due to the pandemic situation. What is the most appropriate strategy for this growth given the current economic condition? Not an easy task…

Case Questions

1. Explain whether The Baker Corner is working B2B and/or B2C, and why. (2 points) 2. Describe The Baker Corner’s Company target segment using evidence from the case. (3 points)

3. Outline the role of business in society according to your understanding of the course and the case. (5 points)

4. Mention the different departments that might be available in The Baker Company and explain the role of each department. (5 points)

5. Describe the challenges that might the new generation in maintaining the company growth. Please suggest from your point of view your recommendations to them. (5 points)

QUESTION 1

1. The main issue in accounting for foreign currency transactions is:

   		how to distinguish between denomination currency or settlement currency.
   		how to translate the financial statements of a foreign operation.
   		how to treat any foreign exchange differences that arise when assets or liabilities are remeasured at the end of the reporting period using the closing rate.
   		how to record transactions with foreign operations.

0.1 points   

QUESTION 2

1. For a company that has an Australian A$ as its functional currency, which of the following is not a foreign currency transaction?

   		goods sold at prices denominated in UK pounds.
   		inventory sold to a customer in Hong Kong who pays in A$.
   		borrowing funds where amounts are payable in NZ$.
   		equipment sold at prices denominated in Japanese Yen.

0.1 points   

QUESTION 3

1. In determining an entity's functional currency, factors to be considered include which of the following?

   		The currency in which receipts from operating activities are usually retained.
   		The currency that mainly influences sales prices for goods and services.
   		The currency of the country whose competitive forces and regulations mainly determine the sales price of its goods and services.
   		All of the above.

0.1 points   

QUESTION 4

1. Which exchange rate is used at the end of the reporting period?

   		The closing rate.
   		The indirect rate.
   		The spot rate.
   		The ending rate.

0.1 points   

QUESTION 5

1. A realised exchange difference arises:

   		on remeasurement of a monetary liability at the end of the reporting period.
   		when the exchange rate changes between initial recognition and cash settlement.
   		on initial recognition of a monetary asset.
   		when the exchange rate changes between initial recognition and end of reporting period.

0.1 points   

QUESTION 6

1. At the date of the transaction, a foreign currency monetary item is initially recognised and measured using:

   		The closing rate.
   		US dollars.
   		The foreign currency monetary value.
   		Spot exchange rate.

0.1 points   

QUESTION 7

1. All of the following assets can be defined as ‘qualifying assets’ except:

   		manufacturing plants.
   		power generation facilities.
   		investment properties.
   		inventories purchased ready for sale.

0.1 points   

QUESTION 8

1. Which of the following statements is incorrect?

   		Borrowing costs are interest and other costs that an entity incurs in connection with the borrowing of funds.
   		Financial assets and inventories that are manufactured or otherwise produced over a short period of time, and assets that are ready for their intended use or sale when acquired, are qualifying assets.
   		Financial assets and inventories that are manufactured or otherwise produced over a short period of time, and assets that are ready for their intended use or sale when acquired, are not qualifying assets.
   		A qualifying asset is an asset that necessarily takes a substantial period of time to get ready for its intended use or sale.

0.1 points   

QUESTION 9

1. If an Australian (A$) company enters a forward exchange contract to buy US$20,000, then which of the following applies?

   		The company’s contractual obligation (at the forward rate) and contractual right (at the spot rate) are settled on a net basis.
   		The company has a contractual right to receive US$20,000 at the settlement date and that right is an asset fixed in A$ at the forward rate.
   		The company has a contractual obligation to deliver foreign currency at the settlement date and that obligation is realised at the spot rate.
   		The company’s forward contract will act as a hedge against a recognised asset.

0.1 points   

QUESTION 10

1. AASB121/ IAS 21 The Effects of Changes in Foreign Exchange Rates requires that the financial report disclose which of the following?

   		The net exchange differences recognised in OCI and accumulated in a separate component of equity.
   		The amount of exchange differences recognised in the profit or loss for the period other than those that relate to financial instruments measured at fair value through profit or loss.
   		Any change in functional currency and reason for change.
   		All of the above.

Sandhill Machinery Corporation, a private company following ASPE sold manufacturing equipment for $2,100 each. Each machine carried with it a 2-year warranty against manufacturing defects. From experience, Sandhill Machinery Corporation determined that each machine sold would average $253 in replacement parts. In 2020, the company sold 1,000 machines. Also in 2020, the company incurred $125,000 in total repair costs (the cost of replacement parts from inventory). Sandhill Machinery Corporation also sold an extended warranty for its machines. For $430, customers could purchase an extended warranty that extended the warranty on the machine for an additional 2 years. 800 of the customers that bought machines also purchased the extended warranty. Assume the revenue is earned evenly over the two-year contract. Using the Revenue Approach, prepare the journal entry to record the sale of the machines and extended warranties. (Ignore any cost of goods sold entry).Using the Revenue Approach, prepare the journal entry to record the warranty costs incurred during 2020.

Using the Revenue Approach, prepare the journal entry to record the year-end adjusting entries at December 31, 2020,for the assurance-type warranties assuming Sandhill’s year-end is December 31. Using the Revenue Approach, prepare the journal entry to record the year-end adjusting entries at December 31, 2022 for the service-type warranties. (Note: assume that the cost of repairs has already been recorded during 2022 and prepare any other adjusting entry needed). (

Example 6-2 John Jenkins earns $1,290 per week. The deductions from his pay were: FIT $116.00 FICA—OASDI 79.98 FICA—HI 18.71 State income tax 31.00 State disability insurance 9.03 Credit union deduction 40.00 Health insurance premium 47.50 Charitable contribution 5.00 John’s disposable earnings would be: $1,290.00 - $116.00 (FIT) - $79.98 - $18.71 (FICA deductions) - $31.00 (SIT) - $9.03 (disability insurance) = $1,035.28 Example 6-3 Huffman Company has a child support order outstanding on one of its employees (Charles Suffert—$170 per week). Charles Suffert's disposable income is $950 per week. A new garnishment is received for a $5,000 debt to a credit card company. The company would take an additional $237.50 out of Suffert's pay. Lesser of: 25% × $950 = $237.50 or $950 − (30 × $7.25) = $732.50 Kalen O'Brien earned $720 this week. The deductions from her pay were as follows: FIT $76.00 FICA-OASDI 44.64 FICA-HI 10.44 State income tax 36.00 State disability insurance 8.71 Health insurance premium 19.00 Credit union contribution 38.00 United Fund contribution 6.00 O'Brien's employer just received a garnishment order (credit card debt of $3,560) against her pay. Compute the following; round your answers to the nearest cent. a. O'Brien's disposable earnings: $____________ b. The amount of her pay subject to the garnishment: $___________