Assume that you are on the collective bargaining panel discussing the wage talks representing the employers. What are some points you will use to defend the employers on why an increase of the wages above the inflation rate should be turned down as it is detrimental to the economy?

Dear Auditor: Hi-Tech Fashion Inc. (“Fashion”) is a retailer of women’s clothes and clothing accessories. Fashion’s operations are based in Seattle, WA, with retail stores located in the nearby suburbs and throughout northwestern United States. Fashion is actively developing opportunities to expand its operations in the surrounding region, including construction of several new retail stores in California. Fashion intends to complete construction and open new stores over the next four years. Fashion anticipates incurring significant expenses and making short-term cash outlays during the construction phase of the expansion. As a result of this growing need to obtain new, readily available capital, Fashion entered into a three-year revolving line of credit (the “Facility”) with its bank on January 1, 2010. The line of credit has a maximum borrowing capacity of $100 million. Since Fashion has not previously used a revolving line of credit, it does not have knowledge of the relevant accounting literature and guidance on how to present the related cash flows in its financial statements. Accordingly, as Fashion’s external auditor, management has asked for your assistance in determining the appropriate presentation of the borrowing and payment activity within its statement of cash flows for the year ended December 31, 2010.

1) Should Fashion present the borrowing and payment activity related to its revolving line of credit as cash flows from operating, investing, or financing activities?

2) For each of the following scenarios, on the basis of the specific facts and circumstances, determine whether Fashion should present its borrowing and payment activity under the Facility on a net or gross basis within the financing activities section of its statement of cash flows.

Scenario A:

• The line of credit has a maximum borrowing capacity of $100 million, and under the terms of the agreement, all draws are considered to be due on demand.

• On July 15, 2010, Fashion drew $60 million on the Facility.

• On August 30, 2010, Fashion drew an additional $40 million on the Facility.

• On September 30, 2010, Fashion paid down the draws by $50 million. • Assume the turnover of transactions is considered to be quick.

Scenario B:

• The line of credit has a maximum borrowing capacity of $100 million, and under the terms of the agreement, specific maturity terms will be negotiated by Fashion and the bank after each draw on the Facility.

• On June 15, 2010, Fashion drew $60 million, and signed a note to repay the full amount borrowed by December 15, 2010.

• On September 30, 2010, Fashion drew an additional $40 million, and signed a note to repay the full amount borrowed by December 1, 2010.

• On December 1, 2010, Fashion paid $40 million to the bank related to the second draw.

• On December 15, 2010, Fashion paid $60 million to the bank related to the first draw.

• Assume the turnover of the transactions is considered to be quick

1. Describe the role of Unions in modern manufacturing plants. In what ways do Unions protect workers?

2. As a manager, dealing in collective bargaining with Unions, what are three areas which you feel must be negotiated? What would your stance be on those issues?

3. List the steps in a common grievance procedure.

4. How do ethics factor in during negotiations of a collective bargaining agreement?

5. As a supervisor, describe three situation where you would be forced to make an ethical choice. For example, you have two qualified employees, one of whom is 25 years old, single, Caucasian female and the other is a 45-year old African-American male who has more experience. What ethical considerations would you face as a supervisor or potential employer?

Collective Bargaining. SDBC Holdings, Inc., acquired Stella D'oro Biscut Co., a bakery in New York City. At the time, a collective bargaining agreement existed between Stella D'oro and Local 50, Bakery, Confectionary, Tobacco Workers, and Grain Millers International Union. During negotiations to renew the agreement, Stella D'oro allowed Local 50 to examine and take notes on the company's financial statemtn and offered the union an opportunity to make its own copy. Stella D'oro, however, would not give Local 50 a copy. Did Stella D'oro engage in an unfair labor practice. Discuss. [SDBC Holding, Inc. v. National Labor Relations Board, 711 F.3d 281 (2d Cir. 2013)] (See Labor Unions)

Answer in paragraph form:

Strategic entrepreneurship, and the innovations that follow, is recognized as an extremely important leadership activity. Review the opening case: Entrepreneurial Fervor and Innovation Drive Disney’s success. Discuss methods that management can employ to incorporate an entrepreneurial spirit and innovation into organizations.

1) Describe how leadership can achieve employee commitment when developing an organization’s vision that fosters innovation?

2) What kind of metaphors can leaders use to drive innovation in an organization? Site some examples!

Two Scholarly References required.

Discuss the basic steps of the program evaluation. Do you believe that the 2016 State of Evaluation Report by Innovation Network appropriately followed all those steps? Were there any additional steps possibly overlooked by the Innovation Network? Defend your argument with examples.

TL Company bought a $1,000,000 bond at par which trades actively on January 1, 2018. This bond’s market value was $900,000 on December 31, 2018 when TL closed its books. The CFO however expected the bond to recover its value before it matured. TL’s 2018 income was $5,000,000 before any adjustments for changes in the market value of this bond. It sold the bond on February 1, 2019 for $1,200,000.

What value would TL show the bond on its Dec 31 balance sheet and what would its 2018 income be after including the change in the bond’s value under each of the following assumptions?

Assume TL bought the bond intending to sell it at a profit during the year.

            Net book value of the bond?____   

            Net income $____                 

Assume TL bought the bond intending to hold it to maturity but would be willing to sell it.

            Net book value of the bond?____     

            Net income $____                             

Assume TL bought the bond for its interest payments and decided to hold the bond until it matured.

            Net book value of the bond?____     

            Net income $____                             

How much gain on sale would TL report under each of the assumptions above?

1. $____      
2. $ ____      
3. $____

Silly Inc. reported income from continuing operations before taxes during 2020 of $802,600. Additional transactions occurring in 2020 but not considered in the $802,600 are as follows.

Prepare an income statement for the year 2020 starting with income from continuing operations before taxes. Compute earnings per share as it should be shown on the face of the income statement. Common shares outstanding for the year are 128,830 shares. (Assume a tax rate of 30% on all items, unless indicated otherwise.) (Round earnings per share to 2 decimal places, e.g. 1.48 and all other answers to 0 decimal places, e.g. 5,275.)

Maher Inc. reported income from continuing operations before taxes during 2020 of $790,000. Additional transactions occurring in 2020 but not considered in the $790,000 are as follows. 1. The corporation experienced an uninsured flood loss in the amount of $90,000 during the year. 2. At the beginning of 2018, the corporation purchased a machine for $54,000 (salvage value of $9,000) that had a useful life of 6 years. The bookkeeper used straight-line depreciation for 2018, 2019, and 2020, but failed to deduct the salvage value in computing the depreciation base. 3. Sale of securities held as a part of its portfolio resulted in a loss of $57,000 (pretax). 4. When its president died, the corporation realized $150,000 from an insurance policy. The cash surrender value of this policy had been carried on the books as an investment in the amount of $46,000 (the gain is nontaxable). 5. The corporation disposed of its recreational division at a loss of $115,000 before taxes. Assume that this transaction meets the criteria for discontinued operations. 6. The corporation decided to change its method of inventory pricing from average-cost to the FIFO method. The effect of this change on prior years is to increase 2018 income by $60,000 and decrease 2019 income by $20,000 before taxes. The FIFO method has been used for 2020. The tax rate on these items is 30%. Prepare an income statement for the year 2020 starting with income from continuing operations before taxes. Compute earnings per share as it should be shown on the face of the income statement. Common shares outstanding for the year are 120,000 shares. (Assume a tax rate of 30% on all items, unless indicated otherwise.) (Round earnings per share to 2 decimal places, e.g. 1.48 and all other answers to 0 decimal places, e.g. 5,275.)