Case study:

Ingrid is the CEO of Bathurst Bank, she is currently undergoing a dilemma on deciding a suitable replacement for an HR director position, as the current HR director Liz is going on a maternal leave. Ingrid has the options to either promote someone from Liz’s department to step in or find an external person to cover the maternal leave period on a shortterm contract. She has canvassed the team leaders of 4 sizeable teams that are under Liz’s management. The opinions and viewpoints expressed by the team leaders vary drastically.

Giovanni, the team leader of talent and development team, strongly recommends himself as the replacement person, while the other team leaders respond with anyone but Giovanni. According to Liz’s report on Giovanni’s last performance appraisal, Giovanni is an exceptional performer in the work he does and has a great ability to contribute to the organization. However, there are several complaints received regarding Giovanni’s poor conflict management skills and his ambiguous and competitive personality, both coming from his own team members and from other teams as well. Ingrid would like to keep Giovanni to stay with the company, without giving him this promotion, so she thinks of giving Giovanni a pay rise as a compensate.

In their meeting together, Giovanni is extremely shocked by Ingrid’s decision of asking an external person to be the replacement, as Giovanni has always thought he would be the best candidate for this promotion due to his outstanding performance. The meeting leaves Giovanni disappointed and Ingrid stressed. Later in the day, Giovanni sends a following up email to Ingrid, expressing that he is not particularly happy about Ingrid’s decision, he also expressed that if he doesn’t see a future here at Bathurst Bank, he will seek for alternative opportunities, and he really appreciates the pay rise but would rather see it as a token gesture rather than based on his actual performance at the organization. The email left Ingrid dreading about what to do with Giovanni.

Questions:

1. Should Ingrid have given Giovanni a Pay Raise? If so, discuss it in term of effectiveness and advantages.
2. Analysis for key reasons to Job Dissatisfaction

Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions.

Select the correct answer.

The Board of Directors of Northwind have appointed Doug Hanus at their new CEO and Jeff Hogan as their operational manager. They are planning to devote their first two weeks in office to gain a better understanding of Northwind’s supply chain and marketing processes. As senior database analyst for Northwind, it is your responsibility to code appropriately structured SQL statements for retrieving the following information requested by Doug and Jeff. They need it on or before 09/29/2019.

1. A listing of Northwind’s suppliers. [1 pt.]

2. A listing of Northwind’s suppliers based in Norway and Sweden. [2 pts]

3. A listing of Northwind’s product categories and the description of each product category. [2 pts]

4. A clearer picture of the geographical footprint of their customers and suppliers - they want separate listings of the countries in which their customers and suppliers are located. [2 pts]

5. The average, sum, maximum, and minimum per unit cost across all products in their product line. They would also like to know the names of Northwind’s products having per unit cost between 30 and 50 (both inclusive). [2 pts]

6. A count and a listing of the cities and corresponding countries in North America (USA, Canada, Mexico) where they have a customer base. [3 pts]

7. A listing of the product names and its corresponding category for products from suppliers based in Germany and France. [4 pts]

8. A list of countries outside of North America (i.e. USA, Canada, Mexico) where they have less than 3 suppliers. [4 pts]

9. For OrderIDs 10258, 10259, and 10260, a listing of the corresponding customer, employee who accepted the order, and the shipper. The listed must be sorted alphabetically by customer name. [5 pts]

10. A listing of the product names and supplier names for all products that make up OrderIDs 10254 and 10260. [5 pts]

The CEO of Garneau Cinemas is considering making a movie and must decide between a comedy and a thriller—it ​doesn't have the production space to make both. The comedy is expected to cost $25 million up front​ (at t​ = 0). After​ that, it is expected to make 16 million in the first year​ (at t​ = 1) and $44 million in each of the following two years​ (at t​ = 2 and t​ = 3). In the fourth year​ (at t​ = 5), it is expected that the movie can be sold into syndication for ​$22 million with no further cash flows back to Garneau Cinemas. The thriller is expected to cost ​$40 million up front​ (at t​ = 0). After​ that, it is expected to make $20 million in the first year​ (at t​ = 1) and $44 million in each of the following four years​ (at t​ = 2,​ 3, 4, and​ 5). In the sixth year​ (at t​ = 6), it is expected that the movie can be sold into syndication for $30 million with no further cash flows back to Garneau Cinemas. The cost of capital is 11​%,and Garneau usually requires projects to have a payback within four years. Determine each​ project's payback and​ NPV, and advise the CEO what she should do.

a) The payback for the comedy is _____ ​years, and the NPV of the comedy is $_____?

b) The payback for the thriller is _____ ​years, and the NPV of the thriller is $_____?

The CEO of Kingdom Ltd. is considering whether or not to convert the firm’s current all-equity capital structure to one that has 50% debt (by retiring equity and leaving its total value unchanged). Currently, the firm has 1,000 shares outstanding and its share price is $40. The firm’s business is quite mature and it expects to generate stable annual earnings before interest and tax (EBIT) at $2,000 forever. As the firm has no further growth opportunities, it practices a 100% dividend payout policy. The market interest rate on borrowing is 8%. Brian Ng, a major shareholder of the firm, owns 20% of the total shares. Assume there is no tax and all other assumptions in the M&M model are met, and that the share price does not change during the capital structure conversion. a.Compute the annual payout to Brian under BOTH the all-equity and the levered capital structure. Assume that he will keep all his 200 shares under the levered capital structure. b.If the firm decides to change to the new capital structure, show how Brian can use homemade leverage to resemble his payoff under the all-equity capital structure. Explain and comment on the implication of this.

Daniel Sawyer, the CEO of the Sawyer Group, is initiating planning for the company's operations next year, and he wants you to forecast the firm's additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions.

2. CEO committment is the highest weighted area of the four evaluated to select the DiversityInc top fifty companies for diversity. Leadership and governance is one of the four dimensions assessed in the Institute of Diversity in Health Management benchmarking survey. Using research findings, testimonies from experts, and logical argument, explain why leadership is key.

Sales and Production Budget II You have been assigned to prepare the cash budget, which is one portion of the master budget for Marble Company. According to a credit agreement with the company’s bank, Marble Company promises to have a minimum cash balance of $65,000 at each month-end. In return, the bank has agreed that the company can borrow up to $175,000 at a monthly interest rate of 2%, paid on the last day of each month. The interest is computed based on the beginning balance of the loan for the month. The company repays loan principal with any cash in excess of $40,000 on the last day of each month. The company has a cash balance of $60,000 and a loan balance of $125,000 at January 1. Marble Co. budgeted the following cash receipts (excluding cash receipts from loans received) and cash payments (excluding cash payments for loan principal and interest payments) for the first three months of next year.

1. Prepare monthly cash budgets for January, February, and March. (Negative balances and Loan repayment amounts (if any) should be indicated should be indicated in parentheses “( )”.)
2. If the cash receipts and payments changed to the values shown in the table below, how would the budget change?

3. Cash Receipts		Cash Payments
   January February March	$500,000    $475,000 $500,000	$450,000 $375,000 $525,000

4. Write a business letter to the CEO analyzing the cash budgets of this company and state your recommendations based on the initial cash receipts and cash payments and on the cash receipts and cash payments changes.

Comprehensive Accounting Cycle Review

15.ACR  Quigley Corporation's trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.

Unrecorded transactions and adjustments:

• 1.On January 1, 2020, Quigley issued 1,000 shares of $20 par, 6% preferred stock for $22,000.
• 2.On January 1, 2020, Quigley also issued 1,000 shares of common stock for $23,000.
• 3.Quigley reacquired 300 shares of its common stock on July 1, 2020, for $49 per share.
• 4.On December 31, 2020, Quigley declared the annual cash dividend and a $1.50 per share dividend on the outstanding common stock, all payable on January 15, 2021.
• 5.Quigley estimates that uncollectible accounts receivable at year-end is $5,100.
• 6.The building is being depreciated using the straight-line method over 30 years. The salvage value is $5,000.
• 7.The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $4,000.
• 8.The unearned rent was collected on October 1, 2020. It was the receipt of 4 months' rent in advance (October 1, 2020 through January 31, 2021).
• 9.The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2020, has not been paid or recorded.

Instructions

(Ignore income taxes.)

(d)  

Prepare a retained earnings statement for the year ending December 31, 2020.

(e)  

Prepare a classified balance sheet as of December 31, 2020.

Total assets $273,400