TRUE OR FALSE

1. Sales to customers who use nonbank credit cards, such as American Express, are generally treated as credit sales.
2. Retailers record all credit card sales as charge sales.
3. The service fee that credit card companies charge retailers varies and is the primary reason why some businesses do not accept all credit cards.
4. The document issued by the seller that informs the buyer of the details of sales returns is called a credit memorandum.
5. A seller may grant a buyer a reduction in selling price and this is called a sales allowance.
6. The effect of a sales return and allowance is a reduction in sales revenue and a decrease in cash or accounts receivable.
7. Merchandise Inventory normally has a debit balance
8. A buyer who acquires merchandise under credit terms of 1/10, n/30 has 30 days after the invoice date to take advantage of the cash discount.
9. Discounts taken by the buyer for early payment of an invoice are called Cash Discounts by the buyer.

the sunland recreation center is considering adding a miniature golf course to its facility. the course would cost $150000, would be depreciated on a straight line basis over its 6 years life, and would have a zero salvage value. the estimated income from the golfing fees would be 95000 a year. variable costs would be 32000 per year and fixed cost would be 25000 per year. since the miniature golf course would attract more customers to the center, the firm anticipates an additional 24000 in revenue from its existing facilities every year if the course is added.the project will require an initial investment in net working capital of $18000,which would be recovered at the end of the project’s life. what is the net present value of this project if discount rate is 16% and the tac rate is 21%? what is the internal rate of return? what is the payback period? should the company proceed with the project? why or why not?

Classify each of the following tasks as belonging in the revenue, expenditure, human resources/payroll, production, or financing cycle

a. Selling bonds to raise capital-

b. Purchasing electronic components to manufacture DVD players-

c. Moving electronic components from the stockroom to the production floor to begin making DVD players–

d. Send employees for an annual training-  

e. Receiving cash payments from customers-  

f. Decide how many goods to manufacture –

g. Acquiring new equipment for our manufacturing facility-

h. Picking DVD players from the warehouse to prepare them for shipping to fill orders –

i. Estimate the allowance for bad debt –

j. Receiving timecards from employees –

k. Sell 20% interest in the company to a venture capital firm –

l. Verifying a customer’s credit limit –

m. Pay federal payroll taxes –

n. Receive purchased goods in the receiving department –

Analyzing, Forecasting, and Interpreting Both Income Statement and Balance Sheet
Following are the income statements and balance sheets of Best Buy Co., Inc.

Forecast Best Buy's fiscal 2012 income statement using the following relations (assume "no change" for accounts not listed).  

Round all answers to the nearest whole number.

Do not use negative signs with your answers in the income statement.

Forecast Best Buy's fiscal 2012 balance sheet using the following relations (assume "no change" for accounts not listed). Assume that all capital expenditures are purchases of property and equipment.

Round answers to the nearest whole number.

Do not use negative signs with your answers in the balance sheet.

The adjusted trial balance of Jacks Financial Planners appears below and using the information from the adjusted trial balance, you are to prepare for the year ending December 31:

         1.   an income statement;

         2.   a statement of owner’s equity; and

         3.   a balance sheet.

JACKS FINANCIAL PLANNERS

Adjusted Trial Balance

December 31, 2010

_____________________________________________________________________________

                                                                                                                          Debit         Credit

Cash ........................................................................................................     $ 15,200

Accounts Receivable ..............................................................................          2,200

Office Supplies .......................................................................................          1,800

Office Equipment ...................................................................................        15,000

Accumulated Depreciation—Office Equipment ....................................                           $ 4,000

Accounts Payable ...................................................................................                               4,000

Unearned Service Revenue ....................................................................                               5,000

S. Jacks, Capital.......................................................................................                             24,400

S. Jacks, Drawings ..................................................................................          2,500

Service Revenue .....................................................................................                               6,500

Office Supplies Expense ........................................................................             600

Depreciation Expense .............................................................................          2,500

Telephone Expense..................................................................................             400

Wages Expense........................................................................................          1,800

Rent Expense ..........................................................................................          1,900                    

                                                                                                                       $43,900        $43,900

17.       (Chapter 3)

Chris’s Florist Shop records all prepaid costs as assets and all revenue collected in advance as liabilities, and makes adjustments only at its fiscal year end, which is June 30^th. All of Chris’s purchases are for cash unless stated otherwise. The following information relates to Chris’s June 30, 2011 year end, its first year of operations.

1.         On July 2^nd, 2010, Chris purchased equipment for $12,000. The equipment is expected to have a useful life of 8 years.

2.         On August 1, 2010 a one-year insurance policy was purchased for $1,740.

3.         On February 1, 2011 a corporate customer paid $2,080 as full payment for a one year contract for fresh flowers to be delivered to its offices every Monday morning. At June 30, 21 of the required 52 deliveries had been completed.

4.         On July 2, 2010 Chris purchased enough supplies to last the entire first year of operations for $4,400. At June 30, 2011, Chris counted the supplies on hand and calculated the cost, which amounted to $1,035.

5.         On May 31, Chris borrows $20,000 from the bank to increase the amount of inventory and expand the business. The interest rate on the loan is 6% and requires monthly payments of interest on the first of each month. The principal is due in one year’s time. The first interest payment is due July 1.

6          Chris pays her store assistant on alternate Fridays. The last pay day in June was June 20^th and the first pay day after year end July is July 4^th. The assistant worked 30 hours during this period, of which 20 were in July, and the rest in June. The assistant earns $9.50 an hour.

7.         June 28^th is a busy day and Chris has to make deliveries to numerous customers. On July 5^th she reviews her June billings, and realizes that she made one large sale for $325 on June 30^th for flowers that were delivered, but for which no invoice was issued. The sale was to a regular customer who will pay promptly when the invoice is sent.

8.         Chris offers customers a coupon valued at $20 every ten floral arrangements that a customer buys. At June 30^th, she reviews her records and finds that 18 customers have purchased enough flowers to claim coupons. Chris records the cost of these coupons as “Coupon Expense” when the customer becomes entitled to them.

Instructions:

(a)        For each transaction, prepare any adjusting entries required at June 30, 2011.

Tutorial 11

Topic

Business process redesign

Questions

(Re-)read Exercise 1.6 about the pharmacy on page 30 of the textbook, Foundations of Business Process Management 2nd Edition.

Customers drop off their prescriptions either in the drive-through counter or in the front counter of the pharmacy. Customers can request that their prescription be filled immediately. In this case, they have to wait between 15 minutes and one hour depending on the current workload. Most customers are not willing to wait that long, so they opt to nominate a pickup time at a later point during the day. Generally, customers drop their prescriptions in the morning before going to work (or at lunchtime) and they come back to pick up the drugs after work, typically between 5pm and 6pm.When dropping their prescription, a technician asks the customer for the pick-up time and puts the prescription in a box labelled with the hour preceding the pick-up time. For example, if the customer asks to have the prescription be ready at 5pm, the technician will drop it in the box with the label 4pm (there is one box for each hour of the day).

Every hour, one of the pharmacy technicians picks up the prescriptions due to be filled in the current hour. The technician then enters the details of each prescription (e.g. doctor details, patient details and medication details) into the pharmacy system. As soon as the details of a prescription are entered, the pharmacy system performs an automated check called Drug Utilization Review (DUR). This check is meant to determine if the prescription contains any drugs that may be incompatible with other drugs that had been dispensed to the same customer in the past, or drugs that may be inappropriate for the customer taking into account the customer data maintained in the system (e.g. age).

Any alarms raised during the automated DUR are reviewed by a pharmacist who performs a more thorough check. In some cases, the pharmacist even has to call the doctor who issued the prescription in order to confirm it.

After the DUR, the system performs an insurance check in order to determine whether the customer’s insurance policy will pay for part or for the whole cost of the drugs. In most cases, the output of this check is that the insurance company would pay for a certain percentage of the costs, while the customer has to pay for the remaining part (also called the co-payment). The rules for determining how much the insurance company will pay and how much the customer has to pay are very complicated. Every insurance company has different rules. In some cases, the insurance policy does not cover one or several drugs in a prescription, but the drug in question can be replaced by another drug that is covered by the insurance policy. When such cases are detected, the pharmacist generally calls the doctor and/or the patient to determine if it is possible to perform the drug replacement.

Once the prescription passes the insurance check, it is assigned to a technician who collects the drugs from the shelves and puts them in a bag with the prescription stapled to it. After the technician has filled a given prescription, the bag is passed to the pharmacist who double-checks that the prescription has been filled correctly. After this quality check, the pharmacist seals the bag and puts it in the pick-up area. When a customer arrives to pick up a prescription, a technician retrieves the prescription and asks the customer for payment in case the drugs in the prescription are not (fully) covered by the customer’s insurance.

The following issues have been identified for the process:

1. Sometimes, a prescription cannot be filled because one or more drugs in the prescription are not in stock. Customers only learn this when they come to pick up their prescription.
2. Oftentimes, when customers arrive to pick up the drugs, they find out that they have to pay more than what they expected because their insurance policy does not cover the drugs in the prescription, or because the insurance company covers only a small percentage of the cost of the drugs.
3. In a very small number of cases, the prescription cannot be filled because there is a potentially dangerous interaction between one of the drugs in the prescription and other drugs that the customer has been given in the past. Customers only find out about this issue when they come to pick up the prescription.
4. Some prescriptions can be filled multiple times. This is called a “refill”. Each prescription explicitly states whether a refill is allowed and if so how many refills are allowed. Sometimes, a prescription cannot be filled because the number of allowed refills has been reached. The pharmacist then tries to call the doctor who issued the prescription to check if the doctor would allow an additional refill. Sometimes, however, the doctor is unreachable or the doctor does not authorize the refill. The prescription is then left unfilled and customers will only find out when they arrive to pick-up the prescription.
5. Oftentimes, especially during peak time, customers have to wait for more than 10 min to pick up their prescription due to queues. Customers find this annoying because they find that having to come twice to the pharmacy (once for drop-off and once for pick-up) should allow the pharmacy ample time to avoid such queues at pick-up.
6. Sometimes, the customer arrives at the scheduled time, but the prescription is not yet filled due to delays in the prescription fulfilment process.

For each of these issues:

1. Discuss and explain what redesign and other improvements might be able to be made in regard to the issue for the pharmacy process. As a starting point, try considering the eight process redesign heuristics that were covered in the lecture: Parallelism, Case-based work, Activity elimination, Empower, Case assignment, Triage, Flexible assignment, and Centralization. However, do not limit yourself to these heuristics, as there are many more that could be considered (for a formal list, see Appendix A in the textbook, but you are more than welcome to propose improvements of your own that may or may not match up with the heuristics).
2. Consider how the redesign and other improvements you have proposed will affect process in terms of the Devil’s Quadrangle, and in particular in regard to the other issues identified.

What are the LONG TERM HARMS imposed upon our economy and our society by our

government’s policy of borrowing over $500 billion each year (in 2020 dollars) every year—well,

almost every year -- since 1982? That is, what are the MANY, SEVERE HARMS CAUSED BY THE

DEFICIT? Please discuss at least ten harms. 2. Please rank each of these many, severe harms

from “MOST” harmful, in your opinion, to “LEAST” harmful, in your opinion, and defend your

ranking system. 3. Which groups in our economy are “hurt the most” by this yearly deficit?

Which groups are “hurt the least”? For example, let’s say that I am an old college professor

living in a house that is paid for, free and clear. Compare me to a 20 year old college student

just starting out in life. In theory, who is harmed more by this yearly deficit? Why?

1. Please list and discuss at least ten of the ‘PROPOSALS TO LOWER FUTURE DEFICITS’ that we discussed earlier, and feel free to include some ideas that we did not discuss. Please rank these ten—or more than ten---from “best” to “worst”, in your opinion, and defend your ranking system. 2. What criteria are you using as you rank these proposals? Some guiding principles include a) what is fair? Which groups in our society and in our economy should ‘contribute more’--- either in terms of higher taxes, or lower benefits, from our government? b) which ideas would MINIMIZE THE HARM to the American people? (the idea being that we do not want to hurt the millions of people who are barely making ends meet right now) c) which ideas are “big” ideas---in the sense that they would contribute “more” to deficit reduction, compared to other, competing ideas? Please include these “guiding principles” in your discussion, AND FEEL FREE TO INCLUDE OTHER PRINCIPLES AS WELL! 3. Why may it be wise to wait a year, or two, or three, or five, before implementing some of these proposals? 4. Why do some economists suggest that these ideas be part of a 20 year plan?

Case Study: Identifying and creating new markets - a new strategy for a global leader

Introduction

Nearly everyone is aware of Intel. It is the world's fifth most valuable brand valued at around $35 billion. Most of the world's personal computers are driven by Intel microprocessors.

By concentrating on producing great microprocessors Intel was able to leave its competitors behind. The company invested billions of dollars in highly productive manufacturing plants that could produce more processors in a day than some of their rivals could produce in a year.

Today Intel is continuing to raise the bar. In January 2006 the company launched its new strategy based on identifying and creating new markets. Instead of just focusing on personal computers (PCs) Intel will play a key technological role in a range of fields including consumer electronics, wireless communications and healthcare.

Intel has been one of the world's high achieving businesses. Its global appeal is not surprising. In recent years almost every time you opened up a laptop you would see that it was labelled 'Intel@ Inside'. Seeing this, the user knew that they had a high performing and reliable computer.

We all want to be able to use more powerful technology, which is simple to operate, and helps us to do things without having to think about it. However, Intel has moved on. The problem with simply being a producer of processors is that other firms can move into your market. Once they produce similar products the only way you can differentiate is by offering lower prices.

Intel's new strategy is to create lots of different types of chips and software and then combine them together into platforms. A platform is an integrated set of proven technologies designed to work together. They provide people and businesses with improved communications and computing capabilities. These platforms will enable Intel to bring added value for consumers, win a larger share of consumer expenditure and increase revenue.

Platforms will make life easier for people in a range of settings from the home, to business, and medical settings. Intel's vision involves giving people access to easy-to-use technologies through these platforms. It is seeking to continually satisfy customer requirements by producing a range of new and exciting products.

Developing a new strategy

Intel is an 'ingredient brand'. Its products and processors form part of the products that consumers purchase. Building key relationships with leading electronic firms such as Sony and Philips is an important strategy. The aim is to provide the manufacturers of products such as laptops, mobile phones and entertainment personal computers with integrated packages of chips and software - in other words a complete solution.

A key part of Intel's more integrated platform strategy involves the development of several technologies. These improve processor efficiency and allow computer users to take better advantage of:

multi-tasking

security

reliability

manageability

wireless computing capabilities.

Intel's strategy is to be at the heart of new developments in home entertainment, security, medical care, etc. Great results are achieved through developing the right products for the right markets before competitors do so.

Restructuring Intel around its market

Intel built its early success on providing ingredients for personal computers with its prime driver being technology. It was dominated by engineers and worked closely with Microsoft and PC manufacturers such as Dell, Compaq and IBM.

The new strategy continues the emphasis on producing excellent products. However, there is now a strong focus on marketing- finding out what customers want and then meeting their requirements. Customers need to know what these new products can do for them. Clear communication is therefore essential. The emphasis is on marketing and communicating with customers about what the new technologies can do for them.

Conclusion

Intel is one of the success stories of the high-tech world. It provides vital components for personal computing. Now the company is moving forward into a range of new and exciting products and markets with a much stronger focus on marketing

Read the above case study and answer the following questions:

1. Investigate how the micro environment and the macro environment have an effect on its marketing and business.

2. Analyze the STP (Segmentation, Targeting and Positioning) strategies of the organization. Evaluate its marketing mix which leads to achievement of consumer satisfaction and organizational goals.

3. Develop strategies that could result in the organization taking better marketing decisions.

Note the Answers should be computerized and answered in details - Please do not copy and Paste