A proprietorship commenced operations on May​ 1,2020 and will have a calendar fiscal year. On June​ 1, 2020​, the proprietorship acquired goodwill for $60,000.

What is the maximum CCA deduction of the goodwill for the year 2020​?

For the past year, Anshuman had been working as the head of organizational development and learning for the high-growth regions of Honeywell. This assignment required Anshuman to leave his home country of India to live and work in Shanghai, China. Anshuman couldn’t help but reflect on his boss’s final comment before going home from work the night before: “We can’t afford to give profit and loss responsibility to our strategic business group leaders in these high-growth countries. We have too much riding on the future performance of these markets and can’t risk someone who doesn’t know what they’re doing messing it up.”

Anshuman thought they needed to give the business unit managers the autonomy necessary to make their own strategic decisions. The problem was, in order to make effective decisions, the business unit managers would need to know how to navigate the local market as well as the Honeywell bureaucracy. It was easy finding one or the other, but finding both seemed a bit daunting. Anshuman and his team began exploring the attributes and competencies needed from future leaders.

Honeywell’s HR department has one of the most extensive and thorough archives of data on managers and leaders all over the world. Anshuman and his team started by examining the company’s list of twelve behaviors of and six criteria for successful general managers. These factors consisted of things like “makes people better”, “takes intelligent risk,” and “gets results.” After some exploratory analysis to determine which behaviors were most highly correlated with a person being promoted, the team turned to a more predictive model and examined what managers were saying about employees when they promoted them.

What they found was somewhat surprising. The most successful managers were those who spoke up and communicated with the leadership team in New Jersey, the company’s headquarters. The most important type of communication revolved around understanding the company’s strategy and being able to tie that strategy back to the local environment. This required managers to fly to headquarters and also to invite members from the corporate team to fly to the local subsidiary location.

But communicating with corporate was not enough. Managers needed to have a strong understanding of the movements and shifts in the local environment. For example, if they couldn’t negotiate with local suppliers to get the deals the local buyers were getting, then these managers weren’t able to succeed in their role. They also needed to be willing to take risks by looking for gaps in the market where customers could be using the product for something different than its original intention.

Anshuman had just presented his findings to the head of HR for Honeywell and was given the green light to develop a specific leadership program for managers in high-growth countries, starting with China as the pilot location. He had designed many leadership programs before, but this time much more was at stake.

Case Discussion Questions

1. What specific leadership traits are most important for Honeywell managers in high-growth regions?
2. How do these global leadership traits differ from domestic leadership traits?
3. How would you create a leadership development program for high-growth region managers using the RAP framework?

ArmandArmand

Company projects the following sales for the first three months of the​ year:

$ 12 comma 400$12,400

in

JanuaryJanuary​;

$ 15 comma 900$15,900

in

FebruaryFebruary​;

and

$ 11 comma 100$11,100

in

MarchMarch.

The company expects

6060​%

of the sales to be cash and the remainder on account. Sales on account are collected​ 50% in the month of the sale and​ 50% in the following month. The Accounts Receivable account has a zero balance on

JanuaryJanuary

1. Round to the nearest dollar.

Requirement 1. Prepare a schedule of cash receipts for

ArmandArmand

for

JanuaryJanuary​,

FebruaryFebruary​,

and

MarchMarch.

What is the balance in Accounts Receivable on

MarchMarch

3131​?

​(Leave unused and zero balance account cells​ blank, do not enter​ "0".)

The units of an item available for sale during the year were as follows:
Jan. 1 Inventory 50 units at $115
Feb. 17 Purchase 88 units at $140
July 21 Purchase 35 units at $128
Nov. 23 Purchase 15 units at $155
There are 75 units of the item in the physical inventory at December 31. The periodic inventory system is used. Determine the inventory cost by (a) the first-in, first-out method, (b) the last-in, first-out method, and (c) the average cost method.

The Dorset Corporation produces and sells a single product. The following data refer to the year just completed:

Assume that direct labor is a variable cost.

Required:

a. Compute the unit product cost under both the absorption costing and variable costing approaches.

b. Prepare an income statement for the year using absorption costing.

c. Prepare an income statement for the year using variable costing.

d. Reconcile the absorption costing and variable costing net operating income figures in (b) and (c) above.

In deciding whether an increase in accounts receivable during the current year is desirable or undesirable, what factors should management consider

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

Required:

1-a. Compute the throughput time for each month.

1-b. Compute the delivery cycle time for each month.

1-c. Compute the manufacturing cycle efficiency (MCE) for each month.

2. Evaluate the company’s performance over the last four months.

3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.

Aholt Company makes 40,000 units per year of a part it uses in the products it manufactures. The unit product cost of this part is computed as follows:

An outside supplier has offered to sell the company all of these parts it needs for $46.20 a unit. If the company accepts this offer, the facilities now being used to make the part could be used to make more units of a product that is in high demand. The additional contribution margin on this other product would be $264,000 per year.
If the part were purchased from the outside supplier, all of the direct labour cost of the part would be avoided. However, $21.90 of the fixed manufacturing overhead cost being applied to the part would continue even if the part were purchased from the outside supplier. This fixed manufacturing overhead cost would be applied to the company's remaining products.

What is the net total dollar advantage (disadvantage) of purchasing the part rather than making it?

$(328,000).

$264,000.

$(64,000).

$548,000.

The Aluminum Association reports that the average American uses 56.8 pounds of aluminum in a year. A random sample of 49 households is monitored for one year to determine aluminum usage. If the population standard deviation of annual usage is 12.3 pounds, what is the probability that the sample mean will be each of the following?

a. More than 60 pounds

b. More than 56 pounds

c. Between 55 and 58 pounds

d. Less than 54 pounds

e. Less than 48 pounds