Stora Enso is a Finnish pulp and paper manufacturing company. It discloses in its 1999 consolidated Annual Report, the following items:

Excerpted from the Consolidated balance sheet

In the notes to its financial statements, the Stora Enso provides explanations relating to these two items:

Excerpts from the notes

In addition, the company explains in the notes that “associated companies (voting rights between 20% and 50%) are consolidated using the equity method” and “the income statements of foreign subsidiaries are translated into Euros using the average rate for the accounting period. The balance sheets of foreign subsidiaries are translated using the rate prevailing on the balance sheet day.”

Pechiney, a French group operating worldwide in aluminum and packaging materials, discloses in its 1999 Annual Report the following note:

Required

1. A) Using the Stora Enso data

1. Associated companies: explain the computation of the historical cost at year-end and the meaning of each component of this computation.
2. Where will be found, other than in the notes, the carrying value of associated companies at year-end?
3. Other companies: explain the computation of carrying amount at year-end and the meaning of each component of this computation.
4. Double-check the carrying value of other companies at year-end. What is the usefulness to an investor or shareholder of the 1999 figure of €280.4 millions shown both in the balance sheet and in the notes?

1. B) Comparison: notes 12 and 14 in Stora Enso’s annual report and note 7 in Pechiney’s annual report have the same purpose. Compare and contrast the computations and reporting choices made by each company.

Bryan followed in his father’s footsteps and entered into the carpet business. He owns and operates I Do Carpet (IDC). Bryan prefers to install carpet only, but in order to earn additional revenue, he also cleans carpets and sells carpet cleaning supplies. Compute his taxable income for the current year considering the following items:

a) IDC contracted with a homebuilder in December of last year to install carpet in 10 new homes being built. The contract price of $80,000 includes $50,000 for materials (carpet). The remaining $30,000 is for IDC’s service of installing the carpet. The contract also stated that all money was to be paid up front. The homebuilder paid IDC in full on December 28 of last year. The contract required IDC to complete the work by January 31 of this year. Bryan purchased the necessary carpet on January 2 and began working on the first home January 4. He completed the last home on January 27 of this year.

b) IDC entered into several other contracts this year and completed the work before year-end. The work cost $130,000 in materials and IDC elects to immediately deduct his supplies. Bryan billed out $240,000 but only collected $220,000 by year-end. Of the $20,000 still owed to him, Bryan wrote off $3,000 he didn’t expect to collect as a bad debt from a customer experiencing extreme financial difficulties.

c) IDC entered into a three-year contract to clean the carpets of an office building. The contract specified that IDC would clean the carpets monthly from July 1 of this year through June 30 three years hence. IDC received payment in full of $8,640 ($240 a month for 36 months) on June 30 of this year.

d) IDC sold 100 bottles of carpet stain remover this year for $5 per bottle (it collected $500). IDC sold 40 bottles on June 1 and 60 bottles on November 2. IDC had the following carpet cleaning supplies on hand for this year, and IDC has elected to use the LIFO method of accounting for inventory under a perpetual inventory system: Purchase Date Bottles Total Cost November last year 40 $120 February this year 35 $112 July this year 25 $85 August this year 40 $140 Totals 140 $457

e) On August 1 of this year, IDC needed more room for storage and paid $900 to rent a garage for 12 months.

f) On November 30 of this year, Bryan decided it was time to get his logo on the sides of his work van. IDC hired We Paint Anything, Inc. (WPA), to do the job. It paid $500 down and agreed to pay the remaining $1,500 upon completion of the job. WPA indicated it wouldn’t be able to begin the job until January 15 of next year, but the job would only take one week to complete. Due to circumstances beyond its control, WPA wasn’t able to complete the job until April 1of next year, at which time IDC paid the remaining $1,500.

g) In December, Bryan’s son, Aiden, helped him finish some carpeting jobs. IDC owed Aiden $600 (reasonable) compensation for his work. However, Aiden did not receive the payment until January of next year.

h) IDC also paid $1,000 for interest on a short-term bank loan relating to the period from November 1 of this year through March 31 of next year.

Questions 1

You are the principle investigator of a research unit in the Botany and Plant Biotechnology department that studies medicinal plant usage in South Africa. Your work focused extensively on devil’s claw. You have identified that one of the plant extracts, harpagoside that is an iridoid glycoside, is of medicinal use. You would like to produce this iridoid glycoside in a liquid culture of Escherichia coli at commercial scale. You have identified that the key enzyme that you would need to introduce into E. coli is an iridoid synthase from devil’s claw. This gene is known and studied in Arabidopsis thaliana but remains to be identified from devil’s claw. How would you go about using the known Arabidopsis sequence to isolate the full length gene from devil’s claw? Describe the steps that you will follow in detail and provide all the details of the techniques that you use in each step and how your approach will impact on these steps. Hint: It is critical to remember that devil’s claw is a eukaryote and E. coli, where you want to express the iridoid synthase protein, is a prokaryote.                                                                                              (29)

Question 2

How will you ensure that the PCR amplicon that you have obtained is the correct gene from devil’s claw? Describe the steps that you will follow in detail and provide all the details of the techniques that you use in each step.                                                                                                                                                              (11)

Question 3

You want to clone and express the gene that you’ve isolated from devil’s claw in E. coli. Describe all the necessary adjustments that you would need to make to your gene to ensure correct expression in E. coli.                                                                                                                                                                                 (5)

Question 4

Describe all the steps that you would take to clone your gene into E. coli. Draw a diagram of your vector containing the gene insert. Discuss how you will identify a clone in an E. coli cell that you can work further with. Describe the steps that you will follow in detail and provide details of the techniques that you use in each step and how your approach will impact on these steps.                          (25)

1.An 81-year-old woman named Phyllis has gone to her primary care physician for a regular checkup. Before her appointment was over, the physician reviewed her current medications with her and asked if she had any questions about them.

Phyllis asked the doctor why she is taking Inderal.

2.

An 81-year-old woman named Phyllis has gone to her primary care physician for a regular checkup. Before her appointment was over, the physician reviewed her current medications with her and asked if she had any questions about them. Phyllis then asked which of her drugs is a cholesterol medicine (statin)?

3.

A 68-year-old woman arrives at her physician's office with the following signs and symptoms:

• Pale coloration of the right leg
• Muscle cramps and pain in the right leg
• Intermittent claudication
• The right foot has a cooler temperature to the touch when compared to other limbs
• Poor nail growth on the right foot

To help determine if the patient has peripheral artery disease, an angiography can be performed.

4,

A 68-year-old woman arrives at her physician's office with the following signs and symptoms:Pale coloration of the right legMuscle cramps and pain in the right legIntermittent claudicationThe right foot has a cooler temperature to the touch when compared to other limbsPoor nail growth on the right foot After the completion of various diagnostic tests, the physician was confident in her diagnosis of peripheral artery disease. Now the patient can be treated appropriately.Which of the following drugs can be given for a vasodilator effect that both improves circulation and decreases platelets from sticking together?

5.

Which group of drugs can be used for patients with PAD to help decrease their cholesterol?

Question 1: Choice of entity

1. For the following situations, applying what you have learned about sole traders, partnerships, limited partnerships, and companies consider the most appropriate organisational structure for the enterprise. In each case give a reason, or reasons, as appropriate, to support your suggestion. Guidance: Your reasons for each part of this question should include why one or more of the available options are excluded, as well as the reasons that support your suggested organisational structure.

(a) Raya, who works in a gym, occasionally sells to sports magazines articles she has written on new developments in personal training.

(b) Three friends start a café. All three will be active in decision making but a precise organisational structure is required for operational practicality. The project involves a degree of business risk and they wish to protect their personal liability as much as possible. Some flexibility is also required as it is envisaged their spouses will be added to the group over time as their business expands. They do not require their participation in the enterprise to be secret and are happy to get any publicity available.

(c) Dion is a scientist who has developed an enzyme that breaks down plastic drink bottles. He wishes to patent and develop his discovery. Iosefina, Rosa and Michelle are low profile venture capital providers who are not technical experts in the scientific field but have money to invest in high risk start-up businesses where successful development brings a high financial return. They agree to provide some funding for Dion’s project. They do not want to take an active part in the business other than in providing the money required and receiving a share of the anticipated profits. If the project fails, Iosefina, Rosa and Michelle do not want any further liability in addition to the money they have already provided. They also wish to keep their involvement in the project secret.

2. Explain two ways in which joint venturers could ensure they do not form a partnership.

3. Compare the use of a partnership and a company as the business form for SMEs when new capital is introduced.

Using SAS programming Please include the syntax and output of the information:

In a study of factors thought to be responsible for the adverse effects of smoking on human reproduction, cadmium level determinations (nanograms per gram) were made on placenta tissue of a sample of 14 mothers who were smokers and an independent random sample of 18 nonsmoking mothers.

The results were as follows-

Nonsmokers: 10.0, 8.4, 12.8, 25.0, 11.8, 9.8, 12.5, 15.4, 23.5, 9.4, 25.1, 19.5, 25.5, 9.8, 7.5, 11.8, 12.2, 15.0

Smokers: 30.0, 30.1, 15.0, 24.1, 30.5, 17.8, 16.8, 14.8, 13.4, 28.5, 17.5, 14.4, 12.5, 20.4

Does it appear likely that the mean cadmium level is higher among smokers than nonsmokers? To answer this question, construct and interpret the 95% confidence interval estimate of the difference in means.

Use the 6 Step Hypothesis:

STEP 1: STATE THE APPROPRIATE NULL AND ALTERNATIVE HYPOTHESES

STEP 2: DEFINE THE CRITICAL REGION

STEP 3: COMPUTE THE APPROPRIATE TEST STATISTIC

STEP 4: STATE YOUR STATISTICAL DECISION

STEP 5: STATE YOUR PRACTICAL CONCLUSION

STEP 6: REPORT THE P-VALUE

Using SAS programming Please include the syntax and output of the information:

In a study of factors thought to be responsible for the adverse effects of smoking on human reproduction, cadmium level determinations (nanograms per gram) were made on placenta tissue of a sample of 14 mothers who were smokers and an independent random sample of 18 nonsmoking mothers.

The results were as follows-

Nonsmokers: 10.0, 8.4, 12.8, 25.0, 11.8, 9.8, 12.5, 15.4, 23.5, 9.4, 25.1, 19.5, 25.5, 9.8, 7.5, 11.8, 12.2, 15.0

Smokers: 30.0, 30.1, 15.0, 24.1, 30.5, 17.8, 16.8, 14.8, 13.4, 28.5, 17.5, 14.4, 12.5, 20.4

Does it appear likely that the mean cadmium level is higher among smokers than nonsmokers? To answer this question, construct and interpret the 95% confidence interval estimate of the difference in means.

Use the 6 Step Hypothesis:

STEP 1: STATE THE APPROPRIATE NULL AND ALTERNATIVE HYPOTHESES

STEP 2: DEFINE THE CRITICAL REGION

STEP 3: COMPUTE THE APPROPRIATE TEST STATISTIC

STEP 4: STATE YOUR STATISTICAL DECISION

STEP 5: STATE YOUR PRACTICAL CONCLUSION

STEP 6: REPORT THE P-VALUE

1. Technological advancements likely contributed to the "hollowing out" of the earnings distributions because they

a. are biased towards those with high skills

b. allow firms to substitute technology for unskilled workers

c. complement the skills of highly educated workers

d. allow firms to substitute technology for workers who perform routine tasks

e. all of the above

2. Which of the following is not an implication of search theory?

a. workers will be unemployed until they receive an offer that is above their reservation value

b. identical workers (same human capital, preferences, etc) will be paid the same wage

c. workers searching in a market with few opportunities will have lower reservation wages than workers searching in a market with many opportunities, all else equal

d. Employers will earn monopsony rents from job matches

e. All of he above are implications of search theory

3. James is currently unemployed. He gets upset whenever he looks because none of the job postings are for workers with his particular skill set. What type of unemployment is James experiencing?

a. frictional unemployment

b. seasonal unemployment

c. cyclical unemployment

d. structural unemployment

e. a combination of types (explain which)

Azu Company Limited is divided into four (4) cost centers.

That is A, B, as production departments and Human Resource & Repairs as service departments The actual cost of a period is as follows

                                                A                     B                     HR            Repairs

                                                GHS                GHS                 GHS           GHS

Indirect materials                  35                     150                  -                       25

Maintenance wages               160                   250                  300                  325

Other overheads as follows:

                                                                        GHS

Supervision                                                     1500

Power                                                              1800

Rent                                                                300

Repairs of plants                                             1200

Depreciation of plants                                                850

Depreciation of building                                 720

The following information is available in respect of the departments:

                                                            A                     B                     HR            Repairs

Area occupied in square feet              1500              1100                900                        500

Number of employees                              20              15                    10                        5

Value of plant £                                  6000               4500                3000                        1500

HZ Power                                              10000               9000             6000                        5000

Required

1. Prepare an overhead analysis sheet by the most reasonable approach and estimate the overhead cost incurred in each cost center   

2. Department A & B are production departments whereas HR & Repairs are there to service these production departments. Assume these two service departments do not render any service to each other. Using equitable and fair as appropriate as possible re-apportion the HR & Repairs overheads to the production departments