Magpie Ltd enters into a non-cancellable two-year lease agreement with Tiger Ltd for an item of machinery on 1 January 2020. Magpie Ltd pays $15,000 on signing the agreement with Tiger Ltd on 1 January 2020. There are eight quarter payments of $10,000, the first being made on 31 March 2020. Included within the $10,000 lease payments is an amount of $1,000 representing payment to the lessor for insurance and maintenance of the machinery. The machinery is to be depreciated on a straight-line basis. The machinery is expected to have an economic life of five years, after which time it will have a zero-salvage value. There is a purchase option Magpie Ltd will be able to exercise at the end of the second year for $30,000. If this purchase option is exercised, the machinery will be transferred to Magpie Ltd. The rate of interest implicit in the lease is 12%. Refer to the appendix for the tables of Present Value Factor for a single future amount and Present Value of an ordinary annuity of $1.
Prepare the lease payments schedule for Magpie Ltd from 1 January 2020 to 30 June 2020.
In: Accounting
On May 8, 2015, Jett Company (a U.S. company) made a credit sale to Lopez (a Mexican company). The terms of the sale required Lopez to pay 1,340,000 pesos on February 10, 2016. Jett prepares quarterly financial statements on March 31, June 30, September 30, and December 31. The exchange rates for pesos during the time the receivable is outstanding follow.
| May 8, 2015 | $0.1855 |
| June 30, 2015 | 0.1864 |
| September 30, 2015 | 0.1875 |
| December 31, 2015 | 0.1858 |
| February 10, 2016 | 0.1897 |
Compute the foreign exchange gain or loss that Jett should report on each of its quarterly statements for the last three quarters of 2015 and the first quarter of 2016
| June 30, 2015 | ||
| September 30, 2015 | ||
| December 31, 2015 | ||
| March 31, 2016 |
Compute the amount reported on Jett's balance sheets at the end of its last three quarters
| June 30 | |
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September 30 |
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| December 31 |
In: Accounting
Provide an informed opinion about Shake Shack’s future quarterly earnings in an appealing and convincing format. Concretely, you should:
In: Operations Management
subject is covered under organisational behaviour
Case Study Bron founded Bronzz Enterprises about 10 years ago, and directed its operations for the first 5 years. At that stage, she became a bit bored and passed the daily running to a new management team. This team, consisting of three Executive Directors, has been in charge ever since. Under the control of the management team, the organisation has developed a people-oriented approach. Management has an open and honest approach and communicates well with staff members. The work environment is supportive and there are good opportunities for development and promotion. In fact, Bronzz Enterprises has become known as a good employer. Despite leaving the day-to-day management of Bronzz Enterprises, Bron has retained her interest in and ownership of the business, while immersed in growing a new business in a different area – Stodgy Stuff Ltd. However, in the last year, Bron has become bored with Stodgy Stuff – it is doing very well and doesn’t really need her entrepreneurial skills any more. About a month ago an interesting opportunity was presented to Bron. This involves Bronzz Enterprises being sold to a much bigger organisation. The payoff for Bron is likely to be considerable, but there would be redundancies among current staff members. Bronzz Enterprises has a staff of 50, but the new configuration would only need 30 of these. Also, there would no longer be any need for the management team. Bron wants to present this opportunity as positive, as the management team would also get a good payout, and perhaps some other opportunities within the new, larger organisation. Bron really needs the money from Bronzz so that she can start another business and is keen to proceed with the opportunity. More concerned with her own outcomes, she is only marginally aware of the possible effect of 20 redundancies and the loss of the whole management team. Her perception is that the sale will be good for her so it is likely to be good for everyone. Things have come to a head just after the staff members have been informed of the proposed sale. To begin with, only limited information is immediately available and consultation documents have not been provided. Rumours are spreading among staff members that these are not denied by management. Most of the staff members have questions, but there does not seem to be a forum where these can be answered. With her eyes fixed on the money she needs for her new business, Bron has lost track of where Bronzz is going and the proposed sale appears jeopardized by falling performance. Members of the management team are now fighting for their own survival and there is considerable uncertainty about the future. Most staff members feel that the management team is no longer on their side – one of them has made statements in support of the sale, and the others are now judged to be in favour of the whole process. There is a sense of anger and frustration in what used to be a productive and happy workplace. If people come to work at all, they are fearful of the next rumour or unsubstantiated piece of information, and their overall performance is suffering.
Discuss the motivational environment at Bronzz by: (a) Describing the overall environment before the proposed sale and introducing one motivation theory that you consider applicable to this.
In: Operations Management
You have just been hired to work for a company that sells shoes. Your first task is to prepare a master budget for the next three months, starting April 1.
The shoes are sold to retaliers for $16 each. Recent and forecasted sales in units are as follows:
Janurary (actual) 22,400
February (actual) 28,400
March (actual) 42,400
April (Budget) 67,400
May (budget) 102,400
June (budget) 52,400
July (budget) 32,400
August (budget) 30,400
September (budget) 27,400
| The large buildup in sales before and during June is due to Father's Day. Ending inventories are supposed to equal 40% of the next month's sales in units. The shoes cost the company $5.20 each. | ||||||||||||||||
| Purchases are paid for as follows: 50% in the month of purchase and the remaining 50% in the following month. All sales are on credit, with no discount, and payable within 15 days. The company has found, however, that only 20% of a month's sales are collected by month-end. An additional 70% is collected in the following month, and the remaining 10% is collected in the second month following sale. Bad debts have been negligible. | ||||||||||||||||
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The company's monthly selling and administrative expenses are given below: Variable -Sales commisions 4% of sales Fixed -advertising $320,000 -rent $30,000 -salaries $130,000 -utilities $13,000 -insurances $4,200 -depreciations $26,000
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In: Accounting
In: Economics
If all employees are offered health insurance and retirement benefits, but then get to select the rest of their benefits package, then they're being offered what type of cafeteria plan?
A) Modular
B)Mix-and-match
C) Core-plus-option
D) Flexible spending
In: Operations Management
Fiscal policy is best defined as
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government policy with respect to trade deficits. |
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government policy with respect to transfer payments such as social security benefit. |
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government spending and tax decisions driven by macroeconomic policy goals. |
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government policy to retire the federal debt. |
In: Economics
-why is fiscal policy important in these topics? 1. cash for clunkers 2. crowding out 3. Longterm impacts of deficit spending 4. Ricardian Equivalence theoreom -How much Gov. pay? -why fiscal policy used? -why was it successful?
In: Economics
response that correlates a country's financial health to its citizens' financial health. Provide an analysis of data related to personal, corporate, or governmental decisions and the effects of these decisions on individual, family, or community spending. Provide at least two resources that support your analysis.
In: Economics