Statement of Cash Flows—Indirect Method

The comparative balance sheet of Tru-Built Construction Inc. for December 31, 2016 and 2015, is as follows:

The following additional information is taken from the records:

Land was sold for $53.

Equipment was acquired for cash.

There were no disposals of equipment during the year.

The common stock was issued for cash.

There was a $138 credit to Retained Earnings for net income.

There was a $42 debit to Retained Earnings for cash dividends declared.

a. Prepare a statement of cash flows, using the indirect method of presenting cash flows from operating activities. Use the minus sign to indicate cash out flows, cash payments, decreases in cash, or any negative adjustments.

• Three types of physical environment (unaltered, altered, built)
• Goal of environmental health
• Love Canal
• Silent Spring
• Differences between a risk assessment and a public health assessment (which measures theoretical risk, which measures actual risk, which is broader in scope, which takes place over a shorter period of time)
• Ecological risk assessment
• What does the FDA regulate (Dr. Miller)
• Dietary supplements regulated as what? (Dr. Miller)
• Reason for items such as toothpaste and dandruff shampoo to be included as drug products (Dr. Miller)
• Food and drug administration’s control over drug prices (Dr. Miller)
• Off-label prescribing (Dr. Miller)
• Health law and the U.S. Constitution
• Interstate Commerce Clause and public health
• Compare and contrast the two philosophies toward the role of government affecting health policies (Market Justice vs. Social Justice)
• No duty principle
• Nuremburg Code
• Tuskegee study
• Belmont Report
• Internal Review Boards
• Systems thinking and reductionist thinking
• Systems analysis and systems diagrams
• One Health – what is it and be able to identify examples
• Climate change implications
• How a bill becomes a law
• Federalism
• Affordable Care Act features
• Policy Windows – 3 streams

QUESTION 15:

Built-Tight is preparing its master budget for the quarter ended September 30, 2017. Budgeted sales and cash payments for product costs for the quarter follow:

Sales are 30% cash and 70% on credit. All credit sales are collected in the month following the sale. The June 30 balance sheet includes balances of $15,000 in cash; $45,800 in accounts receivable; $5,300 in accounts payable; and a $5,800 balance in loans payable. A minimum cash balance of $15,000 is required. Loans are obtained at the end of any month when a cash shortage occurs. Interest is 1% per month based on the beginning-of-the-month loan balance and is paid at each month-end. If an excess balance of cash exists, loans are repaid at the end of the month. Operating expenses are paid in the month incurred and consist of sales commissions (10% of sales), office salaries ($4,800 per month), and rent ($7,300 per month).

PART 1:  Prepare a cash receipts budget for July, August, and September. (Negative balances and Loan repayment amounts (if any) should be indicated with minus sign. Enter your final answers in whole dollars.)

PART 2: ) Prepare a cash budget for each of the months of July, August, and September.

. Wal-Mart’s Foreign Expansion Wal-Mart, the world’s largest retailer, has built its success on a strategy of everyday low prices, and highly efficient operations, logistics, and information systems that keeps inventory to a minimum and ensures against both overstocking and understocking. The company employs some 2.1 million people, operates 4,200 stores in the United States and 3,600 in the rest of the world, and generates sales of almost $400 billion (as of fiscal 2008). Approximately $91 billion of these sales were generated in 15 nations outside of the United States. Facing a slowdown in growth in the United States, Wal-Mart began its international expansion in the early 1990s when it entered Mexico, teaming up in a joint venture with Cifra, Mexico’s largest retailer, to open a series of supercenters that sell both groceries and general merchandise. Initially the retailer hit some headwinds in Mexico. It quickly discovered that shopping habits were different. Most people preferred to buy fresh produce at local stores, particularly items like meat, tortillas and pan dulce which didn’t keep well overnight (many Mexicans lacked large refrigerators). Many consumers also lacked cars, and did not buy in large volumes as consumers in the United States did. WalMart adjusted its strategy to meet the local conditions, hiring local managers who understood Mexican culture, letting those managers control merchandising strategy, building smaller stores that people could walk to, and offering more fresh produce. At the same time, the company believed that it could gradually change the shopping culture in Mexico, educating consumers by showing them the benefits of its American merchandising culture. After all, Wal-Mart’s managers reasoned, people once shopped at small stores in the United States, but starting in the 1950s they increasingly gravitated towards large stores like WalMart. As it built up its distribution systems in Mexico, Wal-Mart was able to lower its own costs, and it passed these on to Mexican consumers in the form of lower prices. The customization, persistence, and low prices paid off. Mexicans started to change their shopping habits. Today Wal-Mart is Mexico’s largest retailer and the country is widely considered to be the company’s most successful foreign venture. Next Wal-Mart expanded into a number of developed nations, including Britain, Germany and South Korea. There its experiences have been less successful. In all three countries it found itself going head to head against well-established local rivals who had nicely matched their offerings to local shopping habits and consumer preferences. Moreover, consumers in all three countries seemed to have a preference for higher quality merchandise and were not as attracted to Wal-Mart’s discount strategy as consumers in the United States and Mexico. After years of losses, Wal-Mart pulled out of Germany and South Korea in 2006. At the same time, it continued to look for retailing opportunities elsewhere, particularly in developing nations where it lacked strong local competitors, where it could gradually alter the shopping culture to its advantage, and where its low price strategy was appealing. Recently, the centerpiece of its international expansion efforts has been China. Wal-Mart opened its first store in China in 1996, but initially expanded very slowly, and by 2006 had only 66 stores. What Wal-Mart discovered, however, was that the Chinese were bargain hunters, and open to the low price strategy and wide selection offered at Wal-Mart stores. Indeed, in terms of their shopping habits, the emerging Chinese middle class seemed more like Americans than Europeans. But to succeed in China, Wal-Mart also found it had to adapt its merchandising and operations strategy to mesh with Chinese culture. One of the things that Wal-Mart has learned is that Chinese consumers insist that food must be freshly harvested, or even killed in front of them. Wal-Mart initially offended Chinese consumers by trying to sell them dead fish, as well as meat packed in Styrofoam and cellophane. Shoppers turned their noses up at what they saw as old merchandise. So Wal-Mart began to display the meat uncovered, installed fish tanks into which shoppers could plunge fishing nets to pull out their evening meal, and began selling live turtles for turtle soup. Sales soared. Wal-Mart has also learned that in China, success requires it to embrace unions. Whereas in the United States Wal-Mart has vigorously resisted unionization, it came to the realization that in China unions don’t bargain for labor contracts. Instead, they are an arm of the state, providing funding for the Communist Party and (in the government’s view) securing social order. In mid- 2006 Wal-Mart broke with its long standing antagonism to unions and agreed to allow unions in its Chinese stores. Many believe this set the stage for Wal-Mart’s most recent move, the purchase in December 2006 of a 35 percent stake in the Trust-Mart chain, which has 101 hypermarkets in 34 cities across China. Now Wal-Mart has proclaimed that China lies at the center of its growth strategy. By early 2009 Wal-Mart had some 243 stores in the country, and despite the global economic slowdown, the company insists that it will continue to open new stores in China at a “double digit rate.”

Case Discussion Questions

1. Do you think Wal-Mart could translate its merchandising strategy wholesale to another country and succeed? If not, why not?

2. Why do you think Wal-Mart was successful in Mexico?

3. Why do you think Wal-Mart failed in South Korea and Germany? What are the differences between these countries and Mexico?

4. What must Wal-Mart do to succeed in China? Is it on track?

Which Depreciation Method Should We Use?

Atwater Manufacturing Company purchased a new machine especially built to perform one particular function on the assembly line. A difference of opinion has arisen as to the method of depreciation to be used in connection with this machine. Three methods are now being considered:

(a)The straight-line method

(b)The productive-output method

(c)The sum-of-the-years’-digits method

List separately the arguments for and against each of the proposed methods from both the theoretical and practical viewpoints.

Talk-2-Me Corporation produces and markets mobile phones for corporate use. The mobile phones have built in tracking devices and a network enabled shutdown system so that corporate security or the telephone holder can locate and quickly disable a corporation issued cell phone, when necessary.

The cost of producing and installing the shutdown technology is as follow:

Talk-2-Me receives a bid from an outside vendor to produce the shutdown system for the mobile telephones at a cost of $12.00 per cell phone.

Additional Information:

• Power and utilities costs are directly related to producing the shutdown systems.
• Inspection, materials handling, and setup costs are variable costs. However, those costs vary per “production run” rather than per unit. Each production run produces 10 shutdown systems.
• Specialized machine rental costs are fixed costs, however, they are directly associated with producing shutdown systems. Therefore, if the company discontinues producing the shutdown system, they will not incur the related specialized machine rental costs.
• The vendor will produce and deliver the shutdown systems for Talk-2-Me to install.

Required:

1. If Talk-2-Me accepts the vendor’s bid, they will still use the production facility for existing production related activities. At the $12.00-unit cost, should Talk-2-Me accept the vendor’s offer? (Show your work).
2. Assume that if Talk-2-Me accepts the outside vendor’s offer, they could use the new available production capacity to upgrade their cell phone product. Details associated with the upgrade are:
   • Selling price of upgraded phone will increase by $18
   • Power and utilities costs will decrease to $1.25 per unit
   • Additional other variable cost of the upgrade = $14 per unit
   • Additional fixed cost related to the upgrade = $16,000.

Assuming Talk-2-Me will still produce and sell 10,000 units, re-evaluate the vendor’s offer to produce the shutdown system given this new information

The built-in data set treering provides Annual tree-ring widths in normalized units for years from -6000 to 1979. Assume that the n measurements x=(

x₁, x₂,...,x_n

) are a random sample from a population true mean μ and true unknown variance

σ²

. Using R we can define the vector x by the assignment x<-as.vector(treering).
a) Calculate, n, the number of elements in x.  

b)Calculate the sample standard deviation s, of x.  

c) Estimate true mean μ, using this data by calculating the sample mean.  

d) Calculate an unbiased point estimate of the population variance,

σ²

of tree-ring widths.  

e) Assuming normality of tree ring widths, calculate the maximum likelihood estimate of μ?  
f) Calculate the 60th percentile of x using R.  

g) Calculate a

trimmed mean for x using R.  

h) Since the sample size is >30 we can create a confidence interval for μ using a normal critical value. If we want the confidence interval to be at the 96% level and we use a normal critical value, then what critical value should we use?

i) Calculate a 96% confidence interval(using a normal critical value) for μ.
(

,

)

j) How long is the 96% confidence interval just created in part i?  

Baggage Blunders Terminal 5, built by British Airways for $8.6 billion, is Heathrow Airport’s newest state-of-the-art facility. Made of glass, concrete and steel, it is the largest freestanding building in the United Kingdom opened in 2008. With 96 self-service check-in kiosks, more than 90 fast bag drops, 54 standard check-in desks, and over 15 kilometres of suitcase-moving belts that were supposed to be able to process 12,000 bags per hour. Terminal 5 had been planned to ease congestion at Heathrow and improve the flying experience for the 30 million passengers expected to pass though it annually. However, the facility’s design did not initially seem to support those goals. After two decades of planning and 100 million hours of labour, opening day did not work out as planned. Within the first few hours of the terminal’s operation, problems developed. Baggage workers, presumably understaffed, were unable to clear unclaimed luggage fast enough. Many arriving passengers had to endure long delays to get their bags. There were problems for departing passengers as well, as many tried in vain to check in for flights. Planes were allowed to leave with empty cargo holds. At one point on that first day, the airline had no choice but to check in only those passengers with no checked luggage. And it did not help matters when the moving belt system became jammed. Lesser problems also became apparent: a few broken escalators, some hand dryers that did not work, a gate that would not function, and inexperienced ticket sellers who did not know the fares between Heathrow and various stations on the Piccadilly line. By the end of the first day of operation, Britain’s Department of Transportation released a statement calling for British Airways and the airport operator BAA to ‘work hard to resolve these issues and limit disruptions to passengers’. Almost 250 flights in and out of Terminal 5 were cancelled during the first four days of operation because of problems with the baggage-handling system, the temporary suspension of luggage checking and staff lack of knowledge. Some 28,000 bags were delayed, and 9000 items still needed to be returned to their owners by the second week of operation. The airline said the problems were expected to cost it about $16 million. However nine days after the new terminal opened the system was still experiencing problems. BAA’s computer system, which sorts bags before loading onto flights, malfunctioned and baggage had to be sorted manually. British Airways had to cancel 24 flights to and from Terminal 5 as a result of these latest problems. A spokesperson for British Airways described the situation as ‘incredibly disappointing’ and said they were working with BAA to get the problem resolved as quickly as possible. BAA said the problem was entirely its responsibility. (Case taken from M Scott, ‘New Heathrow hub: Slick but no saviour’,Businessweek, 28 March 2008, p.11). Questions: 1) Explain the terms feed-forward, concurrent and feedback control mechanisms. Which of these is of most importance in this situation? Explain your choice. 2) How might immediate corrective action have been used in this situation? How about basic corrective action?

Daddy Warbucks, a very wealthy investor, built his fortune through his legendary investing knowledge. At present, he has been offered three investments from which he would like to choose one.

The first is a conservative investment that would perform quite well in an expanding economy and only suffer a small loss in a worsening economy. The second is a speculative investment that would perform extremely well in an expanding economy, but do quite poorly in a worsening economy. The last alternative is a countercyclical investment that would suffer some loss in an expanding economy, but perform well in a worsening economy.

Warbucks believes that there are three possible scenarios during the lives of these investments as follows:

· An Expanding Economy

· A Stable Economy

· A Worsening Economy

He is somewhat pessimistic about where the economy is headed, and so has assigned probabilities of 0.1, 0.5, and 0.4 respectively to these three scenarios. He also estimates that his profits under these respective scenarios are shown in the following payoff table.

1. Considering this data, which investment should he make based on an Expected Monetary Value (EMV) criterion?

2. Upon reflection, Daddy Warbucks doesn't have a great deal of confidence in the accuracy of his probability estimates. Which investment should he make under each of the following criteria?

a) Maximax

b) Maximin

c) Realism Criterion with indices of 0.25, 0.65, and 0.85

d) Equally Likely States of Nature e) Minimax Regret

3. Briefly describe how Warbucks might leverage Bayes' Theorem (Bayes' Decision Rule) to improve his confidence about his probability estimates if he believes that the 10% estimate for an expanding economy is accurate, but is unsure about the odds of the other two scenarios.

Program Specifications

The built-in Java Math methods make some calculations much easier. Write a program called "DoTheMath" that accepts as input three floating-point numbers x, y, and z (define them as double) and outputs several calculations:

1. x to the power of y
2. x to the power of (y to the power of z)
3. The absolute value of x
4. The square root of (x*y to the power of z).

Sample Run:

Enter the values for x, y, z:
-3.7 -3 5
 <-- print a blank line before outputting calculations
x to the power y is -0.019742167295125655
x to the power y to the power z is -8.452419664263233E-139
The absolute value of x is 3.7
The square root of x*y to the power z is 410.49459863681534 <-- end with a println

honestly just kind of lost on how to do this.