You are the auditor of Safe Storage Pty Ltd, which is involved in the manufacture of steel storage drums. One of the directors of Safe Storage has requested that you perform a review of the internal controls within the purchases and payments cycle of the company’s operations. From your discussions with management and staff you ascertain that the company is a small operation, operates from one location in Perth, and only has the following staff:

• five directors (one of whom, the CEO, is responsible for the day-to-day operations of the company)
• a warehouse manager
• an assistant to the warehouse manager
• a secretary/receptionist
• an accounts receivable clerk
• a banking clerk
• an accounts payable clerk
• three machinery operators who are involved in the manufacturing process.

The warehouse manager is able to order from any supplier and will usually telephone a number of suppliers to obtain quotes. The warehouse manager will then order from one of these suppliers by telephone and confirm the order by facsimile. The only documentation kept is the facsimile confirmation of order, which is kept by the warehouse manager.

Once an order has been confirmed, the warehouse manager will complete a purchase order (PO). The warehouse manager keeps one copy of the PO and the other is forwarded to the accounts payable clerk, who files it in date order.

When goods are received at the warehouse, the warehouse manager checks the goods received to the delivery note attached to the goods and signs the delivery note as evidence of this check. The delivery note comprises two copies, one of which is retained by the person delivering the goods and the other by the warehouse manager.

The warehouse manager forwards a copy of the signed delivery note to the accounts payable clerk, who posts a journal entry to the creditors ledger for the amount shown on the delivery note. The clerk then stamps the delivery note ‘entered’ and files the delivery notes by supplier.

REQUIRED

1. Describe the strengths and weaknesses in Safe Storage’s internal control for the purchasing area.
2. How will your assessment of internal controls affect your audit approach for Safe Storage?

Dr. Morrison is interested in how noise affects student’s learning research methods. She has a group of students work an APA style while listening to background noise, and then she has another group of students work on an APA style but with no background noise. Dr. Morrison then compares the two sets of test scores to each other.

A)Group of answer choices

B)Independent samples t test

C)One sample t test

D)Related samples t test

Dr. Camille Saroyan is a forensic pathologist who specializes in identifying cause of death when the cause is unknown. She wants to know if the best interns for her lab come from private universities or public universities. Dr. Saroyan creates two matched groups of potential interns. She matches the interns on board scores, gender, and GPA. The only difference between the two groups is whether they went to school at a private university or a public university. Dr. Saroyan has all the interns examine the same cases and scores them on how well they do at determining cause of death.

A)Group of answer choices

B)Related samples t test

C)Independent Samples t test

D)One sample t test

E)ANOVA

Joanna Gaines has a daughter (Alex) in the 8^th grade. Her daughter’s class just recently finished taking a national achievement test. Joanna thinks that her daughter’s class is better than the 8^th grade class at the school across town. Joanna asks the school to compare the scores from the two classes to each other.

A)Group of answer choices

B)Independent samples t test

C)One sample t test

D)Related samples t test

Garrett, Cody, Tyler, Coby, and Cory are interested in the effect of morphine on the amount of pain reported by sports injury patients. These “dudes” randomly assign the sports injury patients to one of three groups (morphine, half the normal dose of morphine, or a normal dose of morphine) and then has each of the 3 groups rate the amount of pain they experience.

A)Group of answer choices

B)ANOVA

C)Independent samples t test

D)Related samples t test

E)One sample t test

ANOVA

2. Write a one page summary paper on "Why the Federal Reserve did not act as the lender of last resort for all the banks that failed during the Great Depression?"

3. Do a comparison on the wages earned in the 1970's to wages earned today, by converting the 1970 wages to wages today.

CHECK FIGURE: 2. Adjusted Trial Balance debits ? $572,520 Problem 3-6A Adjusting entries; adjusted trial balance LO4,6 PacRim Careers provides training to individuals who pay tuition directly to the business. The business also offers extension training to groups in off-site locations. Additional information available at the December 31, 2014, year-end follows: a. An analysis of the company’s policies shows that $1,250 of insurance coverage has expired. b. An inventory shows that teaching supplies costing $450 are on hand at the end of the year. c. The estimated annual depreciation on the equipment is $8,000. d. The estimated annual depreciation on the professional library is $4,500. e. The school offers off-campus services for specific employers. On November 1, the company agreed to do a special six-month course for a client. The contract calls for a monthly fee of $950, and the client paid the first five months’ fees in advance. When the cash was received, the Unearned Extension Fees account was credited. Home PacRim Careers Trial Balances.xls Insert Page Layout Formulas Data Review View P18 fx A B C D E F G 1 PacRim Careers Trial Balances December 31, 2014 2 3 4 Unadjusted Adjusted 5 Trial Balance Adjustments Trial Balance 6 Account Dr. Cr. Dr. Cr. Dr. Cr. 7 Cash $ 18,000 8 Accounts receivable -0- 9 Teaching supplies 6,500 10 Prepaid insurance 1,400 11 Prepaid rent 7,200 12 Professional library 60,000 13 Accumulated depreciation, professional library $ 18,000 14 Equipment 96,000 15 Accumulated depreciation, equipment 32,000 16 Accounts payable 2,500 17 Salaries payable -0- 18 Unearned extension fees 6,300 19 Karoo Ashevak, capital 229,000 20 Karoo Ashevak, withdrawals 92,000 21 Tuition fees earned 196,000 22 Extension fees earned 72,500 23 Depreciation expense, equipment -0- 24 Depreciation expense, professional library -0- 25 Salaries expense 206,000 26 Insurance expense -0- 27 Rent expense 44,000 28 Teaching supplies expense -0- 29 Advertising expense 14,000 30 Utilities expense 11,200 31 Totals $ 556,300 $ 556,300 APTER 3 Adjusting Accounts for Financial Statements 165 Help Me SOLVE IT f. On October 15, the school agreed to teach a four-month class for an individual for $1,200 tuition per month payable at the end of the class. The services to date have been provided as agreed, but no payment has been received. g. The school’s two employees are paid weekly. As of the end of the year, three days’ wages have accrued at the rate of $120 per day for each employee. h. The balance in the Prepaid Rent account represents the rent for three months: December, January, and February. Required 1. PreparethenecessaryannualadjustingjournalentriesatDecember31,2014,basedon(a)to(h)above. Analysis Component: 2. Refer to the format presented in Exhibit 3.22 and complete the adjusted trial balance using the information in (a) through (h) above. 3. If the adjustments were not recorded, calculate the over- or understatement of income. 4. Is it ethical to ignore adjusting entries?

Ms. Sandipa is the accounts executive for a company called SS Enterprises. Her job description requires her to supervise the process of recording of the transactions of business and to ensure that all accounting assumptions are taken care of. However, her junior executive is confused about the concepts of the accounting period assumption and the Separate entity assumption.

Elaborate on how Sandipa can explain the concepts to her junior with the help of a suitable example.

The above question contains 20 Marks. As per University guidelines, the answer should be a min of 800 words. If possible then only prepare. If you provide 400 / 500 words its not useful for me. Pls ensure need a min of 800 words answer.

Use the following information to complete Armando and Lourdes Gonzales’s 2018 federal income tax return. If any information is missing, use reasonable assumptions to fill in the gaps. ∙ You may need the following forms and schedules to complete the project: Form 1040, Schedule A, Schedule B, Schedule C, Schedule D, Schedule E, Schedule SE, Form 4562 (for the dental practice), Form 4562 (for the rental property), Form 4797, Form 8863, and Form 8949. The forms, schedules, and instructions can be found at the IRS website (www.irs.gov). The instructions can be helpful in completing the forms. Facts: 1. Armando Z. and Lourdes K. Gonzales are married and file a joint return. Armando is self-employed as a dentist, and Lourdes is a college professor. Armando and Lourdes have three children. The oldest is Ricardo, who lives at home. Ricardo is a law student at the University of Cincinnati and worked part time during the year, earning $1,500, which he spent for his own support. Armando and Lourdes provided $6,000 toward Ricardo’s support (including $4,000 for Ricardo’s fall tuition). They also provided over half the support of their daughter, Selena, who is a full-time student at Edgecliff College in Cincinnati. Selena worked part time as an independent contractor during the year, earning $3,200. Selena lived at home until she was married in December 2018. She filed a joint return with her husband, Tony, who earned $20,000 during the year. Felipe is the youngest and lived in the Gonzales’s home for the entire year. The Gonzaleses provide you with the following additional information: ∙ Armando and Lourdes would like to take advantage on their return of any educational expenses paid for their children. ∙ The Gonzaleses do not want to contribute to the presidential election campaign. ∙ The Gonzaleses live at 621 Franklin Avenue, Cincinnati, Ohio 45211. ∙ Armando’s birthday is 3/5/1960 and his Social Security number is 333-45-6666. ∙ Lourdes’s birthday is 4/24/1963 and her Social Security number is 566-77-8888. ∙ Ricardo’s birthday is 11/6/1995 and his Social Security number is 576-18-7928. ∙ Selena’s birthday is 2/1/1999 and her Social Security number is 575-92-4321. ∙ Felipe’s birthday is 12/12/2006 and his Social Security number is 613-97-8465. ∙ The Gonzaleses do not have any foreign bank accounts or trusts. 2. Lourdes is a lecturer at Xavier University in Cincinnati, where she earned $30,000. The university withheld federal income tax of $3,375, state income tax of $900, Cincinnati city income tax of $375, $1,860 of Social Security tax, and $435 of Medicare tax. She also worked part of the year for Delta Airlines. Delta paid her $10,000 in salary, and withheld federal income tax of $1,125, state income tax of $300, Cincinnati city income tax of $125, Social Security tax of $620, and Medicare tax of $145. 3. The Gonzaleses received $800 of interest from State Savings Bank on a joint account. They received interest of $1,000 on City of Cincinnati bonds they bought in January with the proceeds of a loan from Third National Bank of Cincinnati. They spi18394_appc_C-C26_online.indd 7 4/17/18 3:23 PM C-8 Appendix C paid interest of $1,100 on the loan. Armando received a dividend of $540 on General Bicycle Corporation stock he owns. Lourdes received a dividend of $390 on Acme Clothing Corporation stock she owns. Armando and Lourdes received a dividend of $865 on jointly owned stock in Maple Company. All of the dividends received in 2018 are qualified dividends. 4. Armando practices under the name “Armando Z. Gonzales, DDS.” His business is located at 645 West Avenue, Cincinnati, Ohio 45211, and his employer identification number is 01-2222222. Armando’s gross receipts during the year were $111,000. Armando uses the cash method of accounting for his business. Armando’s business expenses are as follows: Advertising $ 1,200 Professional dues 490 Professional journals 360 Contributions to employee benefit plans 2,000 Malpractice insurance 3,200 Fine for overbilling State of Ohio for work 5,000 performed on welfare patient Insurance on office contents 720 Interest on money borrowed to refurbish office 600 Accounting services 2,100 Miscellaneous office expense 388 Office rent 12,000 Dental supplies 7,672 Utilities and telephone 3,360 Wages 30,000 Payroll taxes 2,400 In June, Armando decided to refurbish his office. This project was completed and the assets placed in service on July 1. Armando’s expenditures included $8,000 for new office furniture, $6,000 for new dental equipment (seven-year recovery period), and $2,000 for a new computer. Armando elected to compute his cost recovery allowance using MACRS. He did not elect to use §179 immediate expensing, and he chose to not claim any bonus depreciation. 5. Lourdes’s mother, Maria, died on July 2, 2012, leaving Lourdes her entire estate. Included in the estate was Maria’s residence (325 Oak Street, Cincinnati, Ohio 45211). Maria’s basis in the residence was $30,000. The fair market value of the residence on July 2, 2012, was $155,000. The property was distributed to Lourdes on January 1, 2013. The Gonzaleses have held the property as rental property and have managed it themselves. From 2013 until June 30, 2018, they rented the house to the same tenant. The tenant was transferred to a branch office in California and moved out at the end of June. Since they did not want to bother finding a new tenant, Armando and Lourdes sold the house on June 30, 2018. They received $140,000 for the house and land ($15,000 for the land and $125,000 for the house), less a 6 percent commission charged by the broker. They had depreciated the house using the MACRS rules and conventions applicable to residential real estate. To compute depreciation on the house, the Gonzaleses had allocated $15,000 of the property’s basis to the land on which the house is located. The Gonzaleses collected rent of $1,000 a month during the six months the house was occupied during the year. They incurred the following related expenses during this period: Property insurance $500 Property taxes 800 Maintenance 465 Depreciation (to be computed) ? spi18394_appc_C-C26_online.indd 8 4/17/18 3:23 PM Appendix C C-9 6. The Gonzaleses sold 200 shares of Capp Corporation stock on September 3, 2018, for $42 a share (minus a $50 commission). The Gonzaleses received the stock from Armando’s father on June 25, 1982, as a wedding present. Armando’s father originally purchased the stock for $10 per share on January 1, 1969. The stock was valued at $14.50 per share on the date of the gift. No gift tax was paid on the gift. 7. Armando and Lourdes have given you a file containing the following receipts for expenditures during the year: Prescription medicine and drugs (net of insurance reimbursement) $ 376 Doctor and hospital bills (net of insurance reimbursement) 2,468 Penalty for underpayment of last year’s state income tax 15 Real estate taxes on personal residence 4,762 Interest on home mortgage (paid to Home State Savings & Loan) 8,250 Interest on credit cards (consumer purchases) 595 Cash contribution to St. Matthew’s church 3,080 Payroll deductions for Lourdes’s contributions to the United Way 150 8. The Gonzaleses filed their 2017 federal, state, and local returns on April 12, 2018. They paid the following additional 2017 taxes with their returns: federal income taxes of $630, state income taxes of $250, and city income taxes of $75. 9. The Gonzaleses made timely estimated federal income tax payments of $1,500 each quarter during 2018. They also made estimated state income tax payments of $300 each quarter and estimated city income tax payments of $160 each quarter. The Gonzaleses made all fourth-quarter payments on December 31, 2018. They would like to receive a refund for any overpayments. 10. Armando and Lourdes have qualifying insurance for purposes of the Affordable Care Act (ACA).

Case Study #11—Martha Stewart Read the Martha Stewart case study located in the section titled Case Studies in your textbook concerning the following situation: This case focuses on the corporate governance aspect of Martha Stewart Living Omnimedia (MSO), a media empire founded by Martha Stewart. Stewart is a former model and devoted her career to domestic perfection and luxury. She is the brand icon of MSO; however, with new technology and the shift of consumer tastes and preferences, MSO’s business model is receiving serious threats from other competitors. After a review of the history of Martha Stewart Living Omnimedia, the case discusses its competition, the legal problem that Martha Stewart encountered, changing leadership within MSO, Martha Stewart’s questionable compensation, and the future of MSO. The case concludes with a discussion of MSO’s future at a crossroads.

The case underscores the importance of corporate governance when conditions in the environment change. An analysis of the separation of ownership and managerial control, board of directors, and executive compensation will aid in evaluating the future of MSO. Some analysts suggest that MSO will lose its competitiveness once Martha Stewart leaves the company; others suggest that the MSO brand has lost its brand image by going into product lines such as cleaning fluids and dog poop bags. Also, a few analysts suggest that MSO is a potential takeover target.

This case is ideal for demonstrating the importance of corporate governance. The following points are to guide a review and discussion of some important concepts.

Discuss MSO’s corporate governance. Has the company been able to separate the ownership and managerial control?

Evaluate the effectiveness of MSO’s board of directors. Have the directors been able to monitor and control the company?

Executive compensation is a method of governance mechanisms. Discuss Martha Stewart’s compensation and evaluate its effectiveness.

Is MSO in financial trouble? Discuss the possibility of the market for corporate control. Will MSO become a takeover target?

Describe MSOs next move in terms of growth and expansion. Provide an analysis, of what additional recommendations would be required to be done to help MSO achieve its goals?

Evaluate MSO’s international strategy and its use of alliances to achieve company objectives, what would be their best strategy?

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Question: “In my opinion, we ought to stop making our own drums and accept that outside supplier’s offer,” ...

“In my opinion, we ought to stop making our own drums and accept that outside supplier’s offer,” said Wim Niewindt, managing director of Antilles Refining, N.V., of Aruba. “At a price of $21 per drum, we would be paying $6.05 less than it costs us to manufacture the drums in our own plant. Since we use 70,000 drums a year, that would be an annual cost savings of $423,500.” Antilles Refining’s current cost to manufacture one drum is given below (based on 70,000 drums per year):

A decision about whether to make or buy the drums is especially important at this time because the equipment being used to make the drums is completely worn out and must be replaced. The choices facing the company are:

Alternative 1: Rent new equipment and continue to make the drums. The equipment would be rented for $189,000 per year.

Alternative 2: Purchase the drums from an outside supplier at $21 per drum.

The new equipment would be more efficient than the equipment that Antilles Refining has been using and, according to the manufacturer, would reduce direct labor and variable overhead costs by 30%. The old equipment has no resale value. Supervision cost ($63,000 per year) and direct materials cost per drum would not be affected by the new equipment. The new equipment’s capacity would be 100,000 drums per year.

The company’s total general company overhead would be unaffected by this decision. (Round all intermediate calculations to 2 decimal places.)

Required:

1. Assuming that 70,000 drums are needed each year, what is the financial advantage (disadvantage) of buying the drums from an outside supplier?

2. Assuming that 84,000 drums are needed each year, what is the financial advantage (disadvantage) of buying the drums from an outside supplier?

3. Assuming that 100,000 drums are needed each year, what is the financial advantage (disadvantage) of buying the drums from an outside supplier?

(For all requirements, enter any "disadvantages" as a negative value. Do not round intermediate calculations.)

What are the International Financial Reporting Standards (IFRS), and how do they differ from the Generally Accepted Accounting Principles (GAAP) in the US? What are some challenges adopting these standards here, and how are companies with a multinational focus impacted? Research this topic online.

A 2 km diameter thunderstorm produces 4.2 cm of rainfall in 4 hours.  What is the power production from latent heat of condensation of this storm, in megawatts?  A megawatt is a million watts and the average coal-fired plant in the US produces 677 megawatts.