Balanced Scorecard Preparation
The following information is presented for the Worldwide Auditor's Association. For the year ended November 30, 2017, the organization had set a membership goal of 100,000 members with the following anticipated results (and actual results for the year-end).

Additional information (PLANNED):

• Membership dues were increased from $360 to $400 at the beginning of the year.
• One-year subscriptions to Worldwide Auditor were anticipated to be 2,400 units.
• Advertising revenue was budgeted at $320,000. Each magazine was budgeted at a cost of $36.
• A total of 29,000 technical reports were anticipated at an average price of $80 with average costs of $22.
• The budgeted one-day courses had an anticipated attendance of 33,000 with an average fee of $450. The two-day courses had an anticipated attendance of 3,000 with an average fee of $770 per person.
• The organization began the year with net capital assets of $88,000,000 with a planned cost of capital of 9 percent.

Additional 2017 information (ACTUAL):

• Membership dues are $400 per year, of which $100 is considered to cover a one-year subscription to the association’s journal. Other benefits include membership in the association and unit affiliation.
• One-year subscriptions to Worldwide Auditor are sold to nonmembers for $160 each. A total of 2,500 of these subscriptions were sold. In addition to subscriptions, the journal generated $400,000 in advertising revenue. The cost per magazine was $40.
• A total of 30,000 technical reports were sold by the Books and Reports Department at an average unit selling price of $90. Average costs per publication were $24.
• The association offers a variety of continuing education courses to both members and nonmembers. During 2017, the one-day course, which cost participants an average of $500 each, was attended by 31,300 people. A total of 1,985 people took two-day courses at a cost of $800 per person.
• General and administrative expenses include all other costs incurred by the corporate staff to operate the association.
• The organization has net capital assets of $90,060,000 and had an actual cost of capital of 9 percent.

Required
a. Prepare a balanced scorecard for IAA for November 2017 with calculated key performance indicators presented in two columns for planned performance and actual performance--include key financial, customer, and operating performance indicators.

Include all zeros with figures. For example, 2017 Planned Total Revenues for $55,859.6 (thousand) is entered as $55,859,600

b. Which of the evaluation areas you selected indicated success and which indicated failure?

Success areas:

Failure areas:

Problem Facts Information related to the Sosa Company for the year 2020:

Common Stock- As of the end of 2020, Sosa had 240,000 shares of common stock outstanding. The shares are due to the following common stock transactions:

january 1, 2020 – 100,000 shares of common stock outstanding

April 1, 2020 – issued an additional 50,000 shares for cash

July 1, 2020 - issued a 2 for 1 stock split

September 1, 2020 – purchased 60,000 shares for treasury stock

Preferred Stock- As of the end of 2020, Sosa had 30,000 shares of 6%, $10 par value, cumulative, convertible preferred stock outstanding. The stock had been outstanding all year and the conversion ratio was each share of preferred stock is convertible into 3 shares of common stock.

Bonds Payable-As of the end of 2020, Sosa had $800,000, 7% bonds payable outstanding. The bonds had been outstanding for the entire year and each $1,000 bond was convertible into 10 shares of common stock.

Options-Sosa also had 10,000 common stock options outstanding all year. Each option allowed the holder to purchase 1 share of Sosa’s common stock for $45. During 2020, the average market price of Sosa’s common stock was $48 per share.

Additional Information Sosa’s 2020 net income was $580,000, and the company’s income tax rate was 34%.

REQUIRED

1. Compute the weighted average number of common shares Sosa will use to compute basic earnings per share.

2. Compute 2020 basic earnings per share

3. Identify which of the potentially dilutive securities (preferred stock, bonds, options) are dilutive (support must be shown to receive credit for this question)

4. Compute diluted earnings per share

please show work, thank you!!!

Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $94 per unit, and variable expenses are $64 per unit. Fixed expenses are $838,200 per year. The present annual sales volume (at the $94 selling price) is 25,100 units. Required: 1. What is the present yearly net operating income or loss? 2. What is the present break-even point in unit sales and in dollar sales? 3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e.g., the selling price at the level of maximum profits)?

Yoshida Company is a semiconductor company based in Dapto. In the first year of its operations in 2019, it produced a new router system for its corporate clients. The average wholesale selling price of the system is $600 each. Yoshida’s actual 2019 costs are:

Variable cost per unit

Direct materials $65

Direct manufacturing labour $45

Manufacturing overhead $140

Total $250

Fixed costs

Manufacturing costs $2,400,000

Administration and marketing $2,000,000

Total $4,400,000

During 2019, Electron Company produced 24,000 units and 20,000 of which were sold by the end of year resulting in an ending inventory of 4,000 units at the end of the year.

Required: (a) What is the current breakeven point of the company in units?

(b) How many units the company needs to sell next year to make a profit of $3,000,000?

(c) Compute the number of units required to make a profit of $3,500,000 in the next year if the company adopted the following proposal to adjust both unit selling price and costs. The proposed new selling price is $500 and the variable cost per unit is expected to be reduced by $50 by installing more efficient equipment costing $600,000. (Round to the nearest unit).

(d) Prepare income statement using variable costing method and absorption costing method and explain the difference between the income reported by variable and absorption costing.

(e) If administrative and marketing expenses was a mixed cost instead of a fixed cost, establish a high–low cost function assuming that administrative and marketing expenses were $2,000,000 when20,000 units are sold (highest activity level), and $1,800,000 when 15,000 units are sold (lowest activity level).

(f) Assess the operating risk of the Electron company using the margin of safety and operating leverage.

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

Required:

1-a. Compute the throughput time for each month.

1-b. Compute the delivery cycle time for each month.

1-c. Compute the manufacturing cycle efficiency (MCE) for each month.

2. Evaluate the company’s performance over the last four months.

3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.

2. A U.S. company, with an accounting year end of December 31, engages in the transactions indicated below. The company’s inventory allocation method is FIFO and they use the perpetual inventory system. prepare the entries to recognize the above transactions

1. On May 20, when the exchange rate was $1.40/£, a U.S. company purchased merchandise from a U.K. supplier for £10,000.
2. On June 5 the U.S. company acquired the required amount of U.K. £s and paid for the merchandise when the exchange rate was $1.38/£.
3. On August 15, when the exchange rate was $1.23/€, the U.S. company sold the merchandise purchased from the U.K. supplier to a customer in Belgium at an invoice price of €16,000.
4. On September 6, when the exchange rate was $1.21/€, the U.S. company received payment of €16,000 from the Belgian customer

Use the ERR method with   ? =%7 per year to solve a unique rate of return for the following cash flow diagram.

9. If the company pursues the investment opportunity and otherwise performs the same as last year, what ROI will it earn this year? (PERCENT)

10-a. If Westerville’s chief executive officer will earn a bonus only if her ROI from this year exceeds her ROI from last year, would she pursue the investment opportunity? (Y/N)

10-b. Would the owners of the company want her to pursue the investment opportunity? (Y/N)

11. What is last year’s residual income?

12. What is the residual income of this year’s investment opportunity?

13. If the company pursues the investment opportunity and otherwise performs the same as last year, what residual income will it earn this year?

14. If Westerville’s chief executive officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? (Y/N)

15-a. Assume that the contribution margin ratio of the investment opportunity was 50% instead of 60%. If Westerville’s Chief Executive Officer will earn a bonus only if her residual income from this year exceeds her residual income from last year, would she pursue the investment opportunity? (Y/N)

5-b. Would the owners of the company want her to pursue the investment opportunity? (Y/N)

Westerville Company reported the following results from last year’s operations:

At the beginning of this year, the company has a $200,000 investment opportunity with the following cost and revenue characteristics:

The company’s minimum required rate of return is 10%.

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

Required:

1-a. Compute the throughput time for each month.

1-b. Compute the delivery cycle time for each month.

1-c. Compute the manufacturing cycle efficiency (MCE) for each month.

2. Evaluate the company’s performance over the last four months.

3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.

29. A.

1. A firm operated at 80% of capacity for the past year, during which fixed costs were $203,000, variable costs were 69% of sales, and sales were $1,082,000. Operating profit was

   a. $746,580

   b. $105,936

   c. $335,420

   d. $132,420

28. B.

1. Zeke Company sells 24,700 units at $14 per unit. Variable costs are $7 per unit, and fixed costs are $38,100. The contribution margin ratio and the unit contribution margin are

   A. 2% and $7 per unit

   B. 50% and $14 per unit

   C. 50% and $7 per unit

2. D.2% and $14 per unit

29. B.

1. A business operated at 100% of capacity during its first month, with the following results:

   Sales (98 units)		$480,200
   Production costs (122 units):
   Direct materials	$64,622
   Direct labor	16,499
   Variable factory overhead	28,874
   Fixed factory overhead	27,499	137,494
   Operating expenses:
   Variable operating expenses	$5,849
   Fixed operating expenses	4,180	10,029

   What is the amount of the gross profit that would be reported on the absorption costing income statement?

   a. $359,725

   b. $369,754

   c. $363,905

   d. $480,078

29. C.

1. Nuthatch Corporation began its operations on September 1 of the current year. Budgeted sales for the first three months of business—September, October, and November—are $234,000, $320,000, and $426,000, respectively. The company expects to sell 30% of its merchandise for cash. Of sales on account, 80% are expected to be collected in the month of the sale and 20% in the month following the sale.

   The cash collections expected in October from accounts receivable are estimated to be

   a. $211,960

   b. $254,352

   c. $146,440

   d. $179,200