Please explain these 3 question on NIKE on their sensitive , revenue value quality prestige etc

• How sensitive are your customers to changes in price?
• What revenue do you need to break even and achieve profitability?

• What does the price say about your product in terms of value, quality, prestige, etc.

How have operations, volunteers, protocols, and funding changed during the pandemic? How has access to these food assistance resources become more difficult? What items have been limited during the pandemic and what impacts has it had on emergency assistance? What changes have you seen in your communities?

1.

The first unit took 10 hours and the fourth unit 8.1 hours. What is the improvement rate?

2.

T1 = 1000, Learning rate = 80%.

It will take _____________ hours to make the first 15 units?

3. The learning curve may not be permanent; it can be disrupted by changes in process, personnel, or product.

TRUE OR FALSE

INTRODUCTION Koss Corporation is a Milwaukee company whose principal business is the design, manufacture, and sale of stereo headphones and related accessories. Michael Koss is the CEO; his father, John Koss, founded the company in 1958. The company has trademarks and patents for its products to differentiate itself from the competition. Koss Corp. has a six-man Board of Directors, including Michael and his father. John is 81 years old and serves as chairman of the Board. Michael is 57 years old and serves as vice chairman, president, CEO, COO, and CFO. The other Board members have served 25 years. Neither Michael nor the other Board members have financial backgrounds. Michael graduated college with an anthropology degree. Although Koss Corp. is a multimillion dollar company, it only employs 73 people, which auditors consider a “small business.” Michael has worked for Koss Corp. since 1976, and earns a base salary of $295,000; his total compensation, including options, is over $800,000. THE ACCOUNTING FUNCTION The accounting work was handled by Sujata “Sue” Sachdeva, vice president of finance, secretary, and principal accounting officer—in a small business, employees typically have more than one responsibility. Sue, whose family was from India, had been employed at the company for 17 years. She was a trusted and valued employee and earned about $200,000 per year. She had two assistants: Julie Mulvaney, senior accountant, and Tracy Malone, junior accountant. Sue told friends and coworkers that her family was very wealthy and held a very high social status in India. She reported that she and her husband spent their wedding night in the Taj Mahal. It was important for her and her family to live in the best area, attend the best schools, and socialize with the recognized society members of Milwaukee. Sue served on several charity boards, organized lavish parties for their events that cost millions of dollars, and purchased all items that did not sell at the charity auctions she organized. Sue also had a reputation as a demanding boss: Her assistants were required to help her with the charity events, and Sue took them out to lunch almost daily. Julie and Tracy also went to Sue’s house to help her unpack and store the many expensive items she purchased. Sue loved designer clothing, shoes, and accessories and purchased over 20,000 items in a five-year period from 2004 to 2009. She purchased so many items that they did not fit in her house. So, she rented a storage unit and a two-office suite to store her unused purchases. In addition, Sue made some purchases that she never picked up from the retailers. Sue could not pay for all of these purchases with her $200,000 salary or her physician husband’s $600,000 salary. Her job at Koss Corp. provided her with an extra opportunity to obtain the funds necessary to support her lavish lifestyle: She committed the fraud over at least a five-year period to fulfill her compulsive shopping disorder. THE FRAUD Sue started stealing from the company with relatively small thefts that increased over the years. She partially hid the alleged theft in cost of goods sold (COGS) and indicated the increase in COGS was due to rising material costs. She also overstated assets and other expenses and understated liabilities and sales. Sue embezzled $34 million over a five-year period beginning in 2004; only the embezzled amounts from 2005 forward were documented, even though she had been allegedly embezzling since 1997. The fraud was uncovered when American Express notified Michael Koss about an unusual, ongoing practice: Sue paid her personal credit card balances with several large wire transfers from a Koss Corp. bank account. The following amounts represent the fund’s embezzled by Sue: 2005 - $2,195,477 2006 - $2,227,669 2007 - $3,160,310 2008 - $5,040,968 2009 - $8,498,434 2010 - $10,286,988 (two quarters) Sue wired an average of $500,000 per month from Koss Corp. bank accounts to pay for her personal credit card bills. Sue colluded with her senior accountant Julie to embezzle the money. Julie maintained she just made the journal entries and cash transfers based on Sue’s orders, noting that Sue was a “powerful, imperious, overbearing, determined, and willful superior.” FRAUDULENT ACTIVITIES Koss Corp., like most businesses, had a system of internal controls designed to protect the company’s assets. The fraudulent activities that occurred included large payments by check or wire transfer, misuse of petty cash, an outdated computerized accounting system, unprepared account reconciliations, and minimal management review of financial statements. PAYMENTS BY CHECK OR WIRE TRANSFER Michael approved invoices of $5,000 or more for payment. Yet processing wire transfers and cashier’s checks outside of the accounts payable system did not require his approval. This flaw in Koss Corp.’s internal control system allowed Sue and Julie to cover up the embezzlement. Over the total 12-year embezzlement period, Sue wrote over 500 cashier’s checks, totaling over $17.5 million, from Park Bank. Julie did not have the authority to sign checks at Park Bank, although she often ordered and processed the checks for Sue without Michael’s knowledge or authorization. So as not to draw attention to these checks, they were often made payable to initials, such as “N-M,” for Neiman Marcus or “S.F.A.” for Saks Fifth Avenue. Julie helped Sue initiate and authorize wire transfers of Koss Corp. funds to Sue’s personal creditors for over $16.3 million without requiring or obtaining Michael’s approval. PETTY CASH Most organizations maintain a petty cash fund to facilitate small, incidental expenses. Petty cash balances and transactions are usually small. Given the insignificance of petty cash, management and auditors spend very little time reviewing these accounts. Sue used petty cash as another vehicle to obtain funds: more than $145,000 over five years. COMPUTERIZED ACCOUNTING SYSTEM A computerized accounting system and the related software were designed to prevent certain unintentional (or intentional) errors. For example, entering an out of balance entry is not possible in most computerized accounting systems. Koss Corp.’s computerized accounting system, however, was almost 30 years old and did not have sufficient controls. Koss Corp.’s accounting system could not lock out changes made after the end of the month, and there was no audit trail. Sue and Julie made undetected post- closing changes to the accounting records without Michael’s approval or knowledge. Julie covered up Sue’s embezzlement by forging entries to match the company cash account balance with the cash on hand balance in the bank and “holding back” receivables to match the amount of the cash shortfall. In addition, Julie did not record Internet sales or sales from the company’s retail outlet in order to cover up the cash shortfall. RECONCILIATIONS Other checks and balances in accounting systems include account reconciliations that are prepared by the accounting staff. Account reconciliations were not prepared or maintained at Koss Corp. Reconciliations that were performed were prepared by Sue or Julie, so they were not correct; they also initiated or recorded all accounting entries. MANAGEMENT REVIEW Sue provided Michael with financial statements and reports that were prepared from the fraudulent accounting records, and Michael did not review them in great detail. Because he trusted Sue, Michael did not fully review the financials before approving them. THE AUDITORS Grant Thornton, a national firm based in the U.S., was the auditor for Koss Corp. at the time. Over the five-year period, Koss Corp. paid Grant Thornton $625,000 to audit their financial results. Grant Thornton classified Koss Corp. as a non-accelerated filer. The fraud was never detected during the audit for several reasons: (1) Grant Thornton reviews the company’s financials to make sure that every account balance aligns with accounting standards. Because Sue and Julie were balancing the books to counteract the fraud, nothing seemed suspicious. (2) Lax oversight ran rampant at Koss Corp. Because Michael trusted Sue, he believed all her numbers were correct. Sue knew the questions the auditors would ask and the documents they would review. Because Sue knew the July 1 year-end would bring scrutiny to June’s records, she never moved any money in June. Grant Thornton viewed Koss Corp. as a small audit of a well-run company with low risk and an excellent training ground for new auditors. CONCLUSION Sue embezzled over $34 million in a five-year span. She betrayed the trust of her boss, Michael, as well as the company’s employees and shareholders.

QUESTION:

Review the fraudulent activities. What went wrong?

Describe what internal controls were missing or

circumvented. Consider the Sarbanes-Oxley Act of 2002

(SOX) requirements, and review the definition of internal

controls. Who is responsible for internal controls? What

reporting is required?

To investigate the fluid mechanics of swimming, twenty swimmers each swam a specified distance in a water-filled pool and in a pool where the water was thickened with food grade guar gum to create a syrup-like consistency. Velocity, in meters per second, was recorded and the results are given in the table below.

The researchers concluded that swimming in guar syrup does not change mean swimming speed. Are the given data consistent with this conclusion? Carry out a hypothesis test using a 0.01 significance level. (Use

μ_d= μ_water−μ_{guar syrup}.)

State the appropriate null and alternative hypotheses.

*H₀: μ_d= 0 H_a: μ_d< 0

*H₀: μ_d< 0 H_a: μ_d= 0

*H₀: μ_d≠0 H_a: μ_d= 0

*H₀: μ_d= 0 H_a: μ_d> 0

*H₀: μ_d= 0 H_a: μ_d≠0

Find the test statistic and P-value. (Use a tableor technology. Round your test statistic to one decimal place and your P-valueto three decimal places.)

t = _____

P-value = ______

State the conclusion in the problem context.

We reject H₀. The data do not provide convincing evidence that swimming in guar syrup changes mean swimming speed.

We fail to reject H₀. The data do not provide convincing evidence that swimming in guar syrup changes mean swimming speed.     

We fail to reject H₀. The data provide convincing evidence that swimming in guar syrup changes mean swimming speed.

We reject H₀. The data provide convincing evidence that swimming in guar syrup changes mean swimming speed.

On January 1, 2021, Labtech Circuits borrowed $128,400 from First Bank by issuing a three-year, 8% note, payable on December 31, 2023. Labtech wanted to hedge the risk that general interest rates will decline, causing the fair value of its debt to increase. Therefore, Labtech entered into a three-year interest rate swap agreement on January 1, 2021, and designated the swap as a fair value hedge. The agreement called for the company to receive payment based on an 8% fixed interest rate on a notional amount of $128,400 and to pay interest based on a floating interest rate tied to LIBOR. The contract called for cash settlement of the net interest amount on December 31 of each year.

Floating (LIBOR) settlement rates were 8% at inception and 9%, 7%, and 7% at the end of 2021, 2022, and 2023, respectively. The fair values of the swap are quotes obtained from a derivatives dealer. Those quotes and the fair values of the note are as follows:

Required:
1. Calculate the net cash settlement at the end of 2021, 2022, and 2023.
2. Prepare the journal entries during 2021 to record the issuance of the note, interest, and necessary adjustments for changes in fair value.
3. Prepare the journal entries during 2022 to record interest, net cash interest settlement for the interest rate swap, and necessary adjustments for changes in fair value.
4. Prepare the journal entries during 2023 to record interest, net cash interest settlement for the interest rate swap, necessary adjustments for changes in fair value, and repayment of the debt.
5. Calculate the book values of both the swap account and the note in each of the three years.
6. Calculate the net effect on earnings of the hedging arrangement in each of the three years. (Ignore income taxes.)
7. Suppose the fair value of the note at December 31, 2021, had been $127,000 rather than $126,400 with the additional decline in fair value due to investors’ perceptions that the creditworthiness of Labtech was worsening. How would that affect your entries to record changes in the fair values?

Process Activity Analysis for a Service Company

Statewide Insurance Company has a process for making payments on insurance claims as follows:

An activity analysis revealed that the cost of these activities was as follows:

This process includes only the cost of processing the claim payments, not the actual amount of the claim payments. The adjusting activity involves verifying and estimating the amount of the claim and is variable to the number of claims adjusted.

The process received, adjusted, and paid 3,800 claims during the period. All claims were treated identically in this process.

To improve the cost of this process, management has determined that claims should be segregated into two categories. Claims under $1,000 and claims greater than $1,000: claims under $1,000 would not be adjusted but would be accepted upon the insured's evidence of claim. Claims above $1,000 would be adjusted. It is estimated that 70% of the claims are under $1,000 and would thus be paid without adjustment. It is also estimated that the additional effort to segregate claims would add 5% to the "receiving claim" activity cost.

a. Develop a table showing the percent of individual activity cost to the total process cost. Round the percents to the nearest whole number, if required.

b. Determine the average total process cost per claim payment, assuming 3,800 total claims. Round to the nearest whole dollar.
$________ per paid claim

c. Prepare a table showing the changes in the activity costs as a result of the changes proposed by management. If an amount is zero, leave the entry box blank. Use the minus sign to indicate an additional cost in the last column.

d. Estimate the average cost per claim payment, assuming that the changes proposed by management are enacted for 3,800 total claims. Round to the nearest cent.

$__________ per paid claim

Why the aggregate supply curve slopes upward in the short run

In the short run, the quantity of output that firms supply can deviate from the natural level of output if the actual price level in the economy deviates from the expected price level. Several theories explain how this might happen.

For example, the misperceptions theory asserts that changes in the price level can temporarily mislead firms about what is happening to their output prices. Consider a soybean farmer who expects a price level of 100 in the coming year. If the actual price level turns out to be 90, soybean prices will ______ , and if the farmer mistakenly assumes that the price of soybeans declined relative to other prices of goods and services, she will respond by   the quantity of soybeans supplied. If other producers in this economy mistake changes in the price level for changes in their relative prices, the unexpected decrease in the price level causes the quantity of output supplied to______ the natural level of output in the short run.

Suppose the economy's short-run aggregate supply (AS) curve is given by the following equation:

The Greek letter αα represents a number that determines how much output responds to unexpected changes in the price level. In this case, assume that α=$2 billionα=$2 billion. That is, when the actual price level exceeds the expected price level by 1, the quantity of output supplied will exceed the natural level of output by $2 billion.

Suppose the natural level of output is $50 billion of real GDP and that people expect a price level of 100.

On the following graph, use the purple line (diamond symbol) to plot this economy's long-run aggregate supply (LRAS) curve. Then use the orange line segments (square symbol) to plot the economy's short-run aggregate supply (AS) curve at each of the following price levels: 90, 95, 100, 105, and 110.

ASLRAS01020304050607080901001251201151101051009590858075PRICE LEVELOUTPUT (Billions of dollars)

The short-run quantity of output supplied by firms will rise above the natural level of output when the actual price level   the price level that people expected.

Process Activity Analysis for a Service Company

Statewide Insurance Company has a process for making payments on insurance claims as follows:

An activity analysis revealed that the cost of these activities was as follows:

This process includes only the cost of processing the claim payments, not the actual amount of the claim payments. The adjusting activity involves verifying and estimating the amount of the claim and is variable to the number of claims adjusted.

The process received, adjusted, and paid 5,000 claims during the period. All claims were treated identically in this process.

To improve the cost of this process, management has determined that claims should be segregated into two categories. Claims under $1,000 and claims greater than $1,000: claims under $1,000 would not be adjusted but would be accepted upon the insured's evidence of claim. Claims above $1,000 would be adjusted. It is estimated that 70% of the claims are under $1,000 and would thus be paid without adjustment. It is also estimated that the additional effort to segregate claims would add 15% to the "receiving claim" activity cost.

a. Develop a table showing the percent of individual activity cost to the total process cost. Round the percents to the nearest whole number, if required.

b. Determine the average total process cost per claim payment, assuming 5,000 total claims. Round to the nearest whole dollar.
$ per paid claim

c. Prepare a table showing the changes in the activity costs as a result of the changes proposed by management. If an amount is zero, leave the entry box blank. Use the minus sign to indicate an additional cost in the last column.

d. Estimate the average cost per claim payment, assuming that the changes proposed by management are enacted for 5,000 total claims. Round to the nearest cent.
$ per paid claim