a Zimbabwean woman holds a loaf of bread costing 45,000 Zimbabwe dollars in February 2006, equivalent to about 45 cents in US dollars. Zimbabwe's annual inflation jumped to 3,700 percent a few months later.

1. How is it possible that a simple loaf of bread costs Z$45,000 when it's really worth only 45 cents?

2. What problems does this phenomenon cause for Zimbabwean citizens? (Name five).

Note: This is NOT a discussion of foreign exchange. Do NOT get bogged down in different currency values, that is not the point here.

In 2006, Sally opened a restaurant called Traders' Place in rented premises in Ottawa's booming financial district. She operated the restaurant as a sole proprietorship. By 2012, the business had grown and she determined that she needed experienced help to run the business. In November 2012, Sally approached Marty to see if he would become the manager of the Traders' Place business. He agreed and the following were the terms of his agreement with Sally. Each month, Marty was paid $1000 plus 1 percent of the total restaurant revenues for that month. Total monthly revenues, on average, were about $100 000. At the end of each complete calendar year that Marty worked, if the restaurant had made a profit for the year equal to or exceeding $200 000, Marty was entitled to receive 10 percent of the profits. Marty was responsible for managing the restaurant, including opening and closing the restaurant, hiring, firing and scheduling staff, and ordering food and paying suppliers. Sally was responsible for the financial side of the business, including budgeting, accounting and payroll, as well as marketing. In 2013, Traders' Place profits exceeded $200 000 and Marty was paid 10 percent of the profits in accordance with the agreement. What type of business organization are Marty and Sally using to conduct their business?

A CBS News poll conducted June 10 and 11, 2006, among a nationwide random sample of 651 adults, asked those adults about their party affiliation (Democrat, Republican or none) and their opinion of how the US economy was changing ("getting better," "getting worse" or "about the same"). The results are shown in the table below.

Express your answers as a decimal and round to the nearest 0.001 (in other words, type 0.123, not 12.3% or 0.123456).

If we randomly select one of the adults who participated in this study, compute:

P(affiliated with neither party) =

P(better) =

P(better|affiliated with neither party) =

P(affiliated with neither party|better) =

P(affiliated with neither party and better) =

question about accounting

Parent Ltd acquired equity in Sub Ltd on 1 April 2006. At that date the equity of Sub Ltd comprised:

The general ledger account balances for Sub Ltd and Parent Ltd, as at 31 March 2017, are provided in the consolidated worksheet is below.

Additional information:

(i) At the date of acquisition the identifiable net assets of Sub Ltd were considered to be fairly valued.

(ii) The directors of Parent Ltd believe that the goodwill acquired on acquisition was impaired by $5 000 in the current period. Previous impairments of goodwill amounted to

$17 500.

(iii) Each financial year Parent Ltd has been paying Sub Ltd an office rental fee of $26 000.

(v) During March 2016 Sub Ltd made sales to Parent Ltd of $30 000 and recognised a profit of $8 000. Parent Ltd had not sold this purchase of inventory as at 31 March 2016.

(vi) During March 2017 Sub Ltd made sales to Parent Ltd of $28 000 and recognised a profit of $7 400. This purchase remained in the inventory of Parent Ltd as at 31 March 2017.

(vii) During March 2016 Parent Ltd made sales to Sub Ltd of $6 000 and recognised a profit of $1 600. Sub Ltd sold this inventory to Damian Ltd on 15 April 2016.

(viii) During March 2017 Parent Ltd made sales to Sub Ltd of $5 600 and recognised a profit of $1 400. Sub Ltd sold this inventory to Melanie Ltd before the 2017 financial year end.

Part A

Assume Parent Ltd purchased 100% of the equity in Sub Ltd on 1 April 2006 for $900 000.

Required:

(a) Prepare an acquisition analysis for Parent Ltd.

(b) Complete the consolidation worksheet below for Parent Ltd for the financial year ended 31 March 2017 in accordance with NZ IFRS 10 Consolidated Financial Statements and NZ IFRS 3 Business Combinations.   

Part B

Assume Parent Ltd purchased 60% of the equity in Sub Ltd on 1 April 2006 for $540 000.

Required:

(a) Prepare a 60 percent acquisition analysis for Parent Ltd.

(b) Prepare the notional journal entry to identify the non-controlling interest (NCI), to be reported in the group accounts as at 31 March 2017, in accordance with NZ IFRS 10 Consolidated Financial Statements and NZ IFRS 3 Business Combinations. The directors of Parent Ltd require the NCI to be measured at fair value.

(c) Prepare the notional journal entry to identify the non-controlling interest (NCI), to be reported in the group accounts as at 31 March 2017, in accordance with NZ IFRS 10 Consolidated Financial Statements and NZ IFRS 3 Business Combinations. Assume this time that the directors of Parent Ltd require the NCI to be measured at the NCI’s proportionate share in the recognised amounts of the acquiree’s identified net assets.

(d) Briefly explain why your answer for (b) is different to your answer to (c).

(e) State the balance of the NCI account to be presented in the group balance sheet as at 31 March 2017 for both (b) and (c).

We discovered that 650 GSS respondents in 2006 watched television for an average of 2.98 hrs/day, with a standard deviation of 2.4 hours. Answer the following questions, assuming the distribution of the number of television hours is normal. What is the Z score for a person who watches more than 8 hrs/day. What proportion of people watch 5 hrs/day or more television? How many does this correspond to in the sample? What number of television hours per day corresponds to a Z +1. What is the percentage of people who watch between 1 and 6 hours of television per day? Please round to a whole number

Annual per capita consumption of milk is 21.6 gallons (Statistical Abstract of the United States: 2006). Being from the Midwest, you believe milk consumption is higher there and wish to support your opinion. A sample of 16 individuals from the midwestern town of Webster City showed a sample mean annual consumption of 24.1 gallons with a standard deviation of 4.8.

Compute the value of the test statistic. (Round to two decimal places)

What is the p-value? (Round to three decimal places).

At α=0.05, what is your conclusion?

Suppose that in January 2006, Kenneth Cole Productions had sales of $518 million, EBITDA of $55.6 million, excess cash of $100 million, $3 million of debt, and 21 million shares outstanding.

a) Using the average enterprise value to EBITDA multiple in Table 1, estimate KCP’s share price.

b) What range of share prices do you estimate based on the highest and lowest enterprise value to EBITDA multiples in Table 1? (high/low prices)

c) Using the average enterprise value to sales multiple in Table 1, estimate KCP’s share price.

d) What range of share prices do you estimate based on the highest and lowest enterprise value to sales multiples in Table 1? (high/low)

In March 2006, Tesco announced that it would enter the United States convenience store market (Fresh and Easy). This represented a departure from its historic strategy of focusing on developing nations. The American market - Fresh & Easy - turned into a financial disaster ($1.8 bn loss) for Tesco.

Using Tesco as an example, how you think that Michael Porter’s Five Forces helped or hindered Tesco with its overall global strategy?

Boyum (2006) and Greenleaf (1977) suggested servant leaders have an innate desire to work in service of others; servant leaders respond to an internal mandate to work in service of others and develop a trust from those persons to whom they are given charge.

Principally, servant leaders have the foresight, willingness and ability to “act constructively… [based on] their ethics (of service)” (Greenleaf, 1977, p.26).

How much of what the authors describe do we attribute identity?

How much do we attribute to behavior?

Is there a difference?