Abbotsford Tile Ltd. (ATL) is a wholesaler of high quality glass, ceramic and marble tiles. In November 2019 the owner of ATL agreed to sell the company to Barrie Tile Inc. (BTI) another tile wholesaler. Each company is owned and operated by a single individual who originally founded his company. The owner of ATL decided to sell his business because he was beginning to get too old to run the store. The owner of BTI wants to purchase ATL to expand the size of his business. The two men agreed over lunch that BTI would buy ATL for an amount equal to five times ATL’s net income before tax for the year ended December 31, 2019. The deal is to be finalized on March 1, 2020. Closure of the deal requires that BTI approve of the financial statements prepared by ATL. The two men agreed that any disputes regarding the financial statements would be settled by negotiations and, if necessary, by arbitration by an independent third party. It is now January 15, 2020. You have been called by BTI’s owner to help him understand and assess a number of transactions that are reported in ATL’s December 31, 2019 financial statements. The owner of BTI explained that he does not have much experience working with financial statements but based on his examination, along with information obtained from other sources, he is concerned about a number of transactions reported in ATL’s statements. The owner has asked you for a detailed report explaining the impact of each event on the purchase price of ATL and your assessment of each of the issues. BTI’s owner said that he would like a full explanation of the implications of each event, your evaluation of the accounting used by ATL, and your supported recommendation of the appropriate treatment for each event. Your explanations are important because they will be used in negotiations with the owner of ATL and, if necessary, presented to the arbitrator.

The owner of BTI provided you with the following information about the events that are of concern to him:

a) In November 2019 ATL received a large order for tiles from a new customer. The customer’s normal supplier was on strike and had to find an alternative supplier and so the customer came to ATL. The contract requires that the parts be delivered in early January 2020. Production of the order was completed on December 18, 2019 and was ready to ship at that time. The contract requires that the customer must receive the tiles and must inspect and accept them before the contract is finalized. ATL shipped the tiles to the customer on December 31, 2019 and recognized the revenue in the year ended December 31, 2019.

b) Net income before taxes was $625,000 for the year ended December 31, 2019.

Pete’s Pizza and Pasta is a newly formed chain of pizza and pasta restaurants. The company’s strategy is to grow the brand through franchising and increase market share and profitability for both individual restaurants as well as the entire chain.

Pete, the founder of the chain has given you the following balanced scorecard, which he is confident would help the company achieve his stated strategy. Pete expects to generate income largely through initial franchising fees as well as collecting a percentage of the franchisees’ revenues.

Required:
For each of the four balanced scorecard perspectives, please perform the following:

i)     Provide two additional strategic objectives and key performance indicators.

ii)     Discuss, how and why recommended objectives and indicators from Part (i) above will help Pete execute his strategy.

Using Social Media to Tell the Story of TOMS TOMS offers more than a comfortable and trendy pair of shoes. It is about status and a story to tell. Mycoskie realised the power of the TOMS story since the early days of the company and has focused on it ever since. Mycoskie wrote in his book, acknowledging Kendall Haven, who authored Super Simple Storytelling: "Human minds rely on stories and story architecture as the primary road map for understanding, making sense of, remembering, and planning our lives - as well as the countless experiences and narratives we encounter along the way." He added that smart, future-oriented companies use this ancient impulse in new ways, by telling stories that people can watch on YouTube and share on Facebook. He quickly realised the strength of social and digital media to convey his story by saying: "People are no longer all listening to or watching the same few radio or TV stations each week - they're following their own carefully curated Twitter feeds, commenting on and creating blogs, channel surfing among more than 500 TV stations, watching Hulu on laptops, clicking on YouTube, reading Kindles and Nooks, and surfing on iPads." In 2009, Mycoskie partnered with AT&T by filming a commercial, which ran throughout 2009 and was an enormous success. The commercial profiled TOMS as a for-profit company that donates one pair of shoes to a child in need for every pair purchased, and founder Blake who uses his AT&T BlackBerry to conduct business from around the world. Lots of people tweeted about the commercial creating awareness about TOMS and AT&T, and support for the TOMS business model. 1- Discuss in your opinion, does business responsible for its society wellbeing or just making profit? Why? 2- How TOMS shoes utilizes the CSR in its marketing activities?

High Sierra Tacos acquired a taco truck from Taco Wholesalers on 6/30/15 and gave

a noninterest-bearing note in exchange. High Sierra Tacos is obligated to pay $650,000

on 6/30/17 to satisfy the obligation in full. If High Sierra Tacos accrued interest of

$50,000 on the note in its 2015 year-end financial statements, at what amount would it

record the equipment on its 6/30/15 balance sheet?

A. $450,000

B. $700,000

C. $600,000

D. $650,000

E. $850,000

Tragic Taco lost its taco truck to bandits who took it south of the border. They are

trying to collect insurance on the lost inventory and have the following data: Inventory

January 1, 2015, $80,000; sales up to the theft: 300,000; purchases up to the theft:

$200,000. Tragic consistently reports a 25% gross profit. The estimated lost inventory

is:

A. $205,000.

B. $280,000.

C. $200,000

D. None of these.

E. $55,000.

At January 1, 2015, French Taco had a credit balance of $500,000 in its allowance

for uncollectible accounts. Based on past experience, 1 percent of French's credit sales

have been uncollectible. During 2015, French wrote off $600,000 of accounts

receivable. Credit sales for 2015 were $20,000,000. In its December 31, 2015 balance

sheet, what amount should French report as allowance for uncollectible accounts?

A. None of these.

B. $500,000.

C. $200,000.

D. $100,000.

E. $300,000.

On July 1 of the current year, Online Tacos factored receivables with a carrying

value of $560,000 to a local bank. The transfer was made without recourse. The bank

remits 85% of the factored amount to Online Tacos and retains the remaining 15%.

When collections are over, the bank will remit to Online Tacos what it collects of the

retained amount (expected to be $70,000) less a fee equal to 8% of the total amount

factored. On July 1, Online Taco would

A. Debit loss on sale of receivables for $58,800

B. None of these.

C. Debit accounts receivable for $560,000.

D. Debit receivable from factor for $70,000.

E. Credit cash for $476,000.

A1 Systems Inc. is a U.S.-based company that prepares its consolidated financial statements in accordance with U.S. GAAP. The company reported income of $8,000,000 in 2014 and stockholders’ equity of $30,000,000 as of December 31, 2014.

The CFO of A1 Systems has learned that the U.S. Securities and Exchange Commission (SEC) is considering requiring U.S. public firms to use IFRS in preparing consolidated financial statements. The company wishes to determine the impact that a switch to IFRS would have on its financial statements and has engaged your team to prepare a reconciliation of income and stockholders’ equity from U.S. GAAP to IFRS. Your team has identified the following five major areas in which accounting principles based on U.S. GAAP differ from those of IFRS.

Inventory

At year-end 2014, inventory had a historical cost of $5,000,000, a replacement cost of 4,750,000, a net realizable value of $4,800,000, and a normal profit margin of $900,000.

Property, plant, and equipment

The company acquired a building on 1/1/2012 at a cost of $10,000,000. The building has an estimated useful life of 30 years, an estimated residual value of $1,000,000, and is being depreciated on a straight-line basis. On 1/1/2013, the building was appraised and determined to have a fair value of $11,150,000. There is no change in estimated useful life or residual value. In a switch to IFRS, the company would use the revaluation model to determine the carrying value of PP&E subsequent to acquisition.

Impairment of Assets

The company purchased a piece of equipment on 1/1/2014 at a cost of $1,000,000. The equipment is expected to have a useful life of 10 years and no residual value. The straight-line method of depreciation is used. Technological innovations took place in the industry during 2014. At year-end 2014, the equipment is determined to have a selling price of $800,000 with zero-cost to sell. Expected future cash flows from continued use of the equipment are $950,000, and the present value of the expected future cash flows is $825,000.

1. A questionnaire is used to screen for symptoms of anxiety and has a sensitivity of 60% and a specificity of 80%. Only those who receive a positive test result after completing the questionnaire are sent to be interviewed by a psychiatrist. The psychiatrist's interview has a sensitivity of 90% and a specificity of 90%. The prevalence of anxiety is 20% in this population of 1,000 persons.

d.) Describe what would happen if the order of the tests were reversed.

An employer gives a pre-employment evaluation to a large group of applicants.
The scores for the evaluation are normally distributed with a mean of 154 and a standard deviation of 21.

a) What percentage of applicants will score more than 160 on the evaluation?

b) The employer wants to interview only those applicants who score in the top 15%.
What should the cut-off score be for the interviews? Round to the nearest whole number.

Interview Question for Montefiore Hospital:

• How does financing and reimbursement affect delivery of care?

• How does reimbursement differ in the delivery of outpatient vs inpatient care?

• How do Managed Care and Integrated Systems impact the cost, access, and quality of health care delivery?

• How has Legislative Health Policy impacted the delivery of care?

• What is the future of health services delivery?

1. Your study found that 72% of participants in your study were happy. If you were to interview 20 people, what is the probability that 14 are happy? [4 marks]

2. Your study found that annual income is normally distributed with a mean of 1600 hours and standard deviation of 250 hours. What is the probability that a participant will work at least 1400 hours in a year? [4 marks]

Determine the individuals who carry out contact investigations, or partner notification for STD’s at the local health department (by interview or web search). How do they contact a person who is less than 18 years of age? What strategies do they use to bring the contact in for treatment? How do they maintain confidentiality? References should be included at the end of the answer and in a reference page for complete credit