1. A U.S. company sells to customers in Canada and buys from suppliers in Singapore. At December 31, 2019, the company’s year-end, the following items are reported on its balance sheet:

Accounts receivable (C$2,500,000)..…………………… $2,125,000

Accounts payable(S$1,400,000)………………………….. 1,061,200

On January 22, 2020, when the spot rate is $0.845/C$, the company collects C$1,000,000 from customers. It collects the remaining C$1,500,000 on February 16, 2020, when the spot rate is $0.856. On February 23, 2020, when the spot rate is $0.762, the company pays suppliers S$800,000. On March 6, 2020, when the spot rate is $0.768, the company pays suppliers the remaining S$600,000. Using the attached T-account template, record the 12/31/19 balances (labeled “BAL”) and then prepare the necessary entries to recognize the above transactions.

Whaley Distributors is a wholesale distributor of electronic components. Financial statements for the years ended December 31, 2019, and 2020. reported the following amount and subtotals ($ in millions)

2019 2020

Assets $800 880

Liabilities 360 430

Shareholders' Equity 440 450

Net Income 156 181

In 2021, the following situation occurred or came to light

A. Internal auditors discovered that ending inventories reported on the financial statements the two previous years were mistated due to faulty internal controls. The errors were in the following amounts.

2019 inventory overstated by $12.6 million

2020 inventory understated by $ 10.6 million

B. A liability was accrued in 2019 for a probable payment of $8.2 million in connection with a lawsuit ultimately settled in December 2021 for $ 4.6 million.

c. A patent costing $216 million at the beginning of 2019, expected to benefit operations for a total of six years has not been amortized since acquired.

D. Whaley's conveyor equipment was depreciated by the sum of -the -years- digits(SYD) basic since it was acquired at the beginning of 2019 at a cost of $ 390 million. it has an expected useful life of five years and no expected residual value. At the beginning of 2021. Whaley decided to switch to straight-line depreciation

Required

for each situation

1. Prepare any journal entry necessary as a direct result of the change or error correction, as well as any adjusting entry for 2021 related to the situation described. ( ignore tax effect)

2. Determine the amounts to be reported for each of the five items shown above from the 2019 and 2020 financial statements when those amounts are reported again in the 2019-2021 comparative financial statements.

Expenses

Maximum Word Count 500 words

Essay 20 Marks

b) On Thursday, 4th June 2020, a group of students from University of Ghana Business School (UGBS) and the Department of Political Science were debating whether Management should be classified as a Science or an Art. The students from the Department of Political Science were of the view that Management is an Art whiles those from UGBS believed that it should be considered as a Science. A student from UGBS retorted: “You people even call Political Science a Science how much more management, what is really Science about your Politics?”. Based on this debate, do you think management is a Science or an Art? Give examples to support your argument.

If you take this sample and break into 2 samples, one for graduate degrees (MBA and MSE) and one for undergraduate degrees (BA and BSE), would you believe the populations have different GPAs?

1. What test would you perform?
   1. Z-test of a mean
   2. T-test of a mean
   3. T-test of 2 sample means
   4. Chi-square test
2. What is the value of the test statistic?
   1. 2.02
   2. 2.68
   3. 3.06
   4. 3.11
3. What is the p-value?
   1. 0.0074
   2. 0.0280
   3. 0.0373
   4. 0.0746
4. Based on a significance level of 0.05, would you reject or fail to reject and why?
   1. Reject because p < alpha
   2. Reject because p > alpha
   3. Fail to reject because p < alpha
   4. Fail to reject because p > alpha

Samuel whales Ltd has purchased a property in Wellington New Zealand on 20 July 2020 for NZD 3,200,000 and intended to use it as a showroom. The company borrowed NZD 2,000,000 to finance the purchase. The company plans to take the opportunity of the current low interest rate to expand its property acquisitions.

2) The company applied for Wages Subsidy scheme on 4 April and was granted 70,000. On 7 August, the ToL received a letter from the government requesting the company to pay back the Wages Subsidy with interests citing the reason that the company did not qualify.

3) The company was experiencing delays in its supply chain from overseas suppliers from March to May 2020, which resulted longer lead times in filling customer orders. On 31 July, a customer filed a lawsuit against the company suing for damages of $300, 000. Because of the delay, this customer could not open business on time and suffered income loss.

REQUIRED: For each of the above subsequent event:

a) Explain the potential impact on the 2020 financial statements.

b) Discuss audit procedures that may verify the potential impact on the 2020 financial statements.

Case Discussion : Business Law :

Trindent Consulting International Inc. v. Logsdon, 2018 ONSC 1696 (CanLII) Trindent was incorporated in Wyoming, with its head office in Toronto. It had no physical operations in Wyoming. An Ontario corporation oversaw the management, human resources, and administrative functions of Trindent from its Toronto offices. Logsdon was a US citizen resident in Texas. Trindent made an offer of employment to Logsdon as a manager in its Toronto office. The salary was in US dollars. The governing law of the contract was the law of Ontario. There was no forum selection clause. Logsdon accepted the offer. He did not provide services to any clients located in Canada. His initial interview was in Toronto, where he also attended for training sessions and meetings with management. Logsdon resigned and sued Trindent in Texas for breach of the employment contract. Trindent filed a defence to that action and then commenced this action in Ontario, suing Logsdon for breach of the employment contract. Logsdon applied to stay the action, claiming Ontario was not a convenient forum. Did the Court stay the action? What factors did it consider in making its decision?

Coliseum Company has budgeted the following unit sales:

Quarter Units

Qtr. 1, 2020 60,000

Qtr. 2, 2020 50,000

Qtr. 3, 2020 40,000

Qtr. 4, 2020 80,000

The finished goods inventory on hand on December 31, 2019 was 6,000 units. 90% of the next quarter’s sales will come from production during that quarter, and the remainder of next quarter’s sales will come from this quarter’s ending inventory.

Required: Prepare a production budget for the first two quarters of 2020. Include totals column.

4b. On June 30, 2020, Lansing Company was notified by its only customer that the

Customer will no longer order its product. All existing orders are expected to be completed by May 2021. From July through December 2020, Lansing Company continued efforts to raise additional financing from venture capital groups and secure new customers. By December 15, 2020, it was evident that these efforts would not be successful.

On March 1, 2021, Lansing Company obtains the required shareholder approval for a plan of liquidation that will be completed by May 2021. Upon ceasing its operations, all employees will be terminated, and Lansing Company’s assets will be liquidated to repay its creditors. The criteria for liquidation being imminent are met under FASB ASC 205 on October 29, 2021.

Required:

a. How should Lansing Company report these facts on its December 31, 2020 financial

statements?

b. How should Lansing Company report these facts during 2021?

Do not offer solutions! Write about how you might approach the intervention.

1. Research and identify appropriate interventions, strategies for implementation, and methods for evaluation to resolve organizational problems and take advantage of opportunities.

2. Apply management principles to support organizational transformation and change.

Pigs R Us is a second generation, family-owned Richmond-based company with about 400 employees. It slaughters, manufactures, and sells pork food products. Pigs R Us (PRU) is a low-tech, hands-on, “bricks and mortar” type of company with solid brand recognition, an impeccable reputation for high quality and ethical standards. The processes used in manufacturing are with the highest ISO20002 standards, and the plant is maintained immaculately. The personnel are comprised of an older work force (average employee age is late 40s). There is little staff turnover, though lately there have been a diverse group of younger workers joining the company. There has been an impressive record of speedy state and federal new-product approvals, and solid working relationships with their large and small customers.

The company prides itself on the close "southern family," culture of the business. The company logo features a pig with a smile on its face surrounded by small pictures of some of its oldest serving employees. The organization's structure is “old-fashioned”. It is hierarchical with rigid management divisions and reporting policies. Research, manufacturing, and sales and marketing operate in traditional fashion, with employees reporting to supervisors or mid-level managers. By the 1990s, sales and distribution grew from Richmond into a regional market, establishing a competitive advantage throughout the US South. Despite downward economic times in the US and the South, the pork business does well. This is due largely to the fact that Pork is one of the cheaper meat products and there is a variety of ways it can be prepared.

Owned by the Morris family for the last 60 years, Pigs R Us is a key player in the Richmond based food industry. Various Morris family members sit on the board of charities throughout the city and it is not unusual to see the name at society events. Further, the Company sponsors its own Little League Team and has built a recreation center and assisted living facility for the elderly, guaranteeing space for all former 20+ year veteran workers of the company for free. So, it was no surprise, that the whole community was devastated when it was announced by the Morris family that Vance Morris the CEO of Pigs R Us was killed while driving back from a Pigs R US board meeting. The plant closed for a week to show respect and to determine how it would function until the family could make its succession decisions.

Vance Morris was the only son of James and Kathleen Morris. Vance took over the business 10 years before when his father had a heart attack and died. Fresh out of graduate school when his father died. He took over the business that he had known well much to the pleasure and keen eye of the workers. Vance made some marketing changes that allowed for the growth of the company and with the help of the employees brought the plant into its current state. Vance had just gotten married the year before to a young Richmond artist he had met at one of his charity benefits. He had no heirs and no plans for succession as he was in his mid-thirties and had just gotten married. While Vance had cousins in the area they were all professional people who knew nothing about business or pork. The workers could only surmise that the company would be sold, but speculation as to whom it might be did not include someone from out of the city.

Before the deal was announced publicly, John’s widow, Arleen, reported to the workers that a Chinese company, Shanghou (SHU), would be buying Pigs R US. Mrs. Morris assured the workers that the SHU promised not to cut workers' wages and benefits, and to keep the current management team in place. She said that SHU also promised to keep Pork R US headquarters in Richmond. Arleen assured the workers that SHU promised that there would be no changes for the first year and that almost everything would remain the same. From her talks with SHU, Arleen is a bit worried about future changes that SHU may implement.

SHU is a large manufacturer and distributor of food and beverages with, headquarters in Hong Kong. Manufacturing plants operate in mainland China, and the company has additional offices in Europe and Australia. By acquiring the smaller, well-respected Pork R US, SHU aims to diversify and expand its consumer base by including tailor-made pork products globally to meet market projections of a customer upsurge in sustainable, non-beef meats in the next decade. Given SHU’s current availability of telecommunications software and hardware, the deployment of the Pigs R US refrigeration trucks should not be an insurmountable issue.

Many PRU employees, especially the older workers and some of the older managers, are dispirited about the acquisition, and anxious about working for foreigners, downsizing, less face-to-face interaction, language differences, and more electronic systems that are to be put in place. Some of the of the more experienced workers are considering to move or consider an early retirement due to the ongoing rumors about the acquisition. To make matters worse, recent news media have printed stories about tainted food made by other companies in China. Employees fear loss of product quality and damage to PRU’s reputation as well as the loss of the family southern culture that was their pride and joy.

SHU has told PRU workers that for now, most employees will be retained. However, all employees will be evaluated, and reassigned to teams as the new flat structure is put in place. The new CEO is Harvard-educated Daniel Chinn. He supports increasing the company's competitive edge by discovering and developing existing individual potential through group collaboration and team synergy. Ever since his days as a brilliant, hard-driving MBA student; he has been known to be an enthusiastic supporter of job training and career growth. Like many of SHU’s employees, David is in his early thirties. He speaks four languages and is ambitious, self-directed, tech-savvy, accustomed to working remotely, and experienced with a culturally diverse staff. David is eager to make his newest acquisition a success. He wants to move forward on the integration of "Pork R US’ workers into SHU because Chinn believes they are the “greatest asset have a rich knowledge base and experience can be tapped into to bring the company success." Chinn is concerned about the mix of culture and how his ideas of incorporating artificial intelligence and more robotics into the manufacturing processes will be received by management and the workers at the newly acquired plant.

Scenario

The student will use the following situation that has evolved because of the buy out to complete each section of the project. Additional facts will be added to phase two and three of the project to allow students to complete a typical OD process analysis.

Daniel Chinn is anxious to keep the “southern family” culture of Pigs R Us but at the same time wants to use the most modern of manufacturing techniques. He decided that the best way to do this was to start a pilot change operation in the packaging area to demonstrate to the workers the effectiveness of technology. He bought and set up for use 3D printers in the packaging room. The printers were able to create reusable shipping materials and operate in conjunction with the product conveyor for fast and easy. packaging. He brought in two trained 3D printer operators from China to handle the work along with two robots that would move the package material and create shrink-wrapped pallets for loading on to the trucks.

The current packaging department employs 5 workers on day shift and 3 newer workers on the night shift. All day shift workers are in their early fifties and have been working for Pigs R Us all their lives. John Mellon, the lead line man, exemplifies the group. He is 53 years old. He has a family of three children most all are grown. One works in the business with him as the manager of accounting department having gotten a college degree unlike his father. John rarely travels out of state and has never been abroad. He is not terribly familiar with technology. He has a Smart TV but his children have set it up for him to use Netflix.

When the new employees arrived, the packaging staff tried to get to know them but had little in common and found it hard to communicate with them. The new workers ate together at lunch and always with food they brought with them despite offers of food brought in by the older employees to show their “southern roots”. Things are strained between the groups because the older employees thought they were being snubbed and many are uncertain as to the customs and language unable to communicate their real feelings. This all operated to create a schism among the workers which escalated into job performance and employment commitment issues when the six-month results from the 3D/Robot pilot showed the following success in favor of new technology.

The results showed such a marked process improvement with the added benefit of creating materials that were sustainable. The immediate reaction among the older workers was fear for their jobs. The new workers suddenly were the enemy. Chinn was pleased with the new process and indicated that the 3D printing approach would be continued. The word of the decision spread among the families in the company and the “southern family” culture was now closing ranks on the newcomers both in the packaging room and in the other departments thus confirming their fears when news of the buyout surfaced.