The United [Arab] Emirates, of which Dubai is a member, is one of the Gulf Cooperation Council members. How does it compare with the other GCC countries in terms of total population and the non-immigrant population as a percentage of total population? How important do you think migration and therefore capital remittances are for each of the countries in the GCC?

** Summarize the following paragraphs in ONE PARAGRAPH please. **

The opioid crisis in the United States continues unabated despite an overall reduction in the number of prescriptions for opioid analgesics written over the past 5 years.¹ If nothing changes, opioid deaths are predicted to increase almost 100% by between 2016 and 2025 and the number of persons using illicit opioids will increase 61% by the same date.² The number of persons who inject drugs continues to increase, with many of these persons reporting that they used prescription opioid analgesics before they started using heroin. A less-discussed complication of the opioid crisis that may be just as lethal is the increase in serious infections in persons who inject drugs.³ Hospitalizations for infective endocarditis associated with injection drug use increased 50% between 2002 and 2012.³ Admissions for osteomyelitis and septic arthritis increased 54% and 63%, respectively, over the same period.³ Patients with untreated opioid use disorder often receive suboptimal care for their serious infections.⁴ Onset of withdrawal symptoms and cravings for opioids generally occur within 4 to 12 hours after the last use of an opioid, depending on the substance used. Patients who inject drugs are more likely to leave the hospital before completing a course of treatment or may be unable to comply with outpatient discharge instructions and are at higher risk of reinfection, readmission, or death. Patients who are referred for an addiction medicine consultation are less likely to leave the hospital against medical advice.⁵ The National Academies of Sciences, Engineering, and Medicine convened a workshop to develop a response to the increase in hospitalizations for infections of patients who inject drugs.⁶ The workshops resulted in several recommended action steps. Action step 4 calls for all prescribers and other personnel to receive training on Drug Addiction Treatment Act waivers. Clinicians also should be trained on how to safely prescribe methadone to patients before patients are discharged from the hospital.

WHAT IS HOLDING US BACK?

Historically, the amount of time dedicated to education on screening for, diagnosing, and treating substance use disorder is limited in the medical curriculum.⁷ Students may attach a stigma to patients with substance use disorders.⁸ A survey of general internists found that almost a third felt that opioid use disorder was different from other chronic conditions because they believed it was a choice.⁹ Fourteen percent of the respondents felt that medication-assisted treatment was substituting one drug for another.⁹ Twelve percent of hospitalists and 6% of primary care providers believed that persons using drugs committed a crime and should be punished.⁹ Only 9% of the sample felt they were prepared to discuss medication treatments for patients with opioid use disorder.

WHY SHOULD THIS MATTER TO YOU?

Whether you are practicing in primary care, emergency medicine, or a hospital-based specialty, you will encounter patients with opioid use disorder.¹⁰ Clinicians must be able to screen patients for substance use disorders, diagnose patients with opioid use disorder, and manage these patients, whether by treating withdrawal symptoms, initiating medication-assisted treatment (MAT), or referring them to an appropriate level of care. Hospital providers are authorized, without the need for a waiver, to use either methadone or buprenorphine to treat withdrawal symptoms in their patients. However, waiver training gives clinicians the knowledge to use these medications appropriately.¹¹

Jefferson Ltd is a small retail business that operates in the United Kingdom. The company was formed in December 2015 and commenced its new year on 1 January 2016 with

£25,000 in share capital. Jefferson Ltd also has £6,000 in the bank and £15,000 of finished goods stock for resale. This information had already been recorded in the accounting records of Jefferson Ltd.

The company has agreed a bank overdraft facility of up to £15,000.

The following transactions had been budgeted for the first 6 months of 2016.

Sales of goods to debtors in the 6 months to June 2016 were expected to be £160,000 in total, and transacted as follows:

Gross profit margins are always 35% of sales and it was Jefferson Ltd’s policy to have sufficient finished goods stock at the end of each month to service the following month’s cost of sales. The sales forecast for July 2016 was £55,000.

Purchases of goods for resale in the six months to June 2016, based on the above information, were £114,750 and were budgeted to be as follows:

Other transactions:

• Plant and equipment was to be purchased for cash, £10,000, in January 2016, and £20,000 in June 2016.
• The plant and equipment depreciation for the 6 month period is included in the other operating costs, below;
• Director’s salary £2,000 per month was to be paid in cash January to June 2016;
• Sales assistant’s wages £1,000 per month was to be paid in cash January to June 2016;
• Other operating costs, £2,200 per month, include depreciation on plant and equipment, £100 per month. The cash operating expenses were to be paid in cash, each month, January to June 2016;
• Corporation tax of £652 was to be paid in June 2016;
• Bank finance charges of £15 were to be incurred in February 2016;

• Debtors were budgeted to pay in full one month after the month of the sale. In this respect sales made in January 2016, for example, would be paid for in February 2016. Debtors for December 2015 were £40,000.
• Creditors were to be paid in full, two months after the purchase of stock. In this respect purchases of stock made in January 2016 would be paid for in March 2016. Creditors for November and December 2015 were £20,000 and £30,000, respectively.
• A dividend of £1,400 was to be paid during June 2016.

Required:

1. For the 6 months period to June 2016, produce the following for Jefferson Ltd

1. A monthly cash budget;
2. A budgeted income statement for the year ended 30 June 2016; and
3. A budgeted statement of financial position as at 30 June 2016

The cash flow forecast must indicate the cash in hand or overdrawn at the end of each month.

As a result of improvements in product engineering, United Automation is able to sell one of its two milling machines. Both machines perform the same function but differ in age. The newer machine could be sold today for $63,500. Its operating costs are $21,800 a year, but at the end of five years, the machine will require a $19,100 overhaul (which is tax deductible). Thereafter, operating costs will be $30,900 until the machine is finally sold in year 10 for $6,350.

The older machine could be sold today for $25,900. If it is kept, it will need an immediate $24,500 (tax-deductible) overhaul. Thereafter, operating costs will be $34,000 a year until the machine is finally sold in year 5 for $6,350.

Both machines are fully depreciated for tax purposes. The company pays tax at 21%. Cash flows have been forecasted in real terms. The real cost of capital is 13%.

a. Calculate the equivalent annual costs for selling the new machine and for selling the old machine. (Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.)

Sell new machine:EAC?

Sell old machine: EAC?

As a result of improvements in product engineering, United Automation is able to sell one of its two milling machines. Both machines perform the same function but differ in age. The newer machine could be sold today for $72,500. Its operating costs are $23,000 a year, but in five years the machine will require a $18,500 overhaul. Thereafter operating costs will be $31,500 until the machine is finally sold in year 10 for $7,250.

The older machine could be sold today for $26,500. If it is kept, it will need an immediate $27,500 overhaul. Thereafter operating costs will be $36,900 a year until the machine is finally sold in year 5 for $7,250.   

Both machines are fully depreciated for tax purposes. The company pays tax at 35%. Cash flows have been forecasted in real terms. The real cost of capital is 11%.

a. Calculate the equivalent annual costs for selling the new machine and for selling the old machine. (Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.)

b. Which machine should United Automation sell?

The Treadway Commission was concerned about the fraudulent financial reporting that was occurring in the United States. Yet, numerous significant instances of fraudulent financial reporting occurred after publication of the COSO report.

Question: In the context of the five components of internal control cited by the COSO report, discuss what appears to have gone wrong in own words.

a) Think about the five components of control - control environment, risk assessment, control activities, information & communication, and monitoring.

Limitations on Internal Control

Monitoring the effectiveness of an internal control system should be a continuous process on the

part of both management and performance auditors. This regular scrutiny acknowledges that

an internal control system is not fail safe. Too many factors can impinge on the adequacy of the

controls. For example:

● Controls can quickly become outdated because of changing organizational conditions.

● Control activities may be strong, but the control environment or work setting may become

weak.

● Inappropriate controls may be in place. For example, an entity may be using detection

controls, designed to identify - after the fact - that errors or irregularities have occurred,

where it would have been better to adopt a prevention control designed to deter the

possibility of errors or irregularities occurring.

● Too many or too few controls may affect the ability of an agency to effectively fulfill its

mission.

● Intentional or unintentional staff deviation from prescribed controls can render a system

useless. Human factors such as boredom, personal problems, or other distractions can

result in errors.

● Inadequately trained or incompetent employees can reduce the effectiveness of controls.

● Collusion among employees or managers may nullify the internal control system.

● No internal control system can provide an absolute guarantee that errors or irregularities

will not occur. It can only provide reasonable assurance that management objectives will

be achieved. This assurance can be maintained if (a) management continuously monitors

the effectiveness of the controls in place, taking into consideration the costs and benefits

associated with those controls and (b) auditors provide independent assessments that the

control system is working.

As a result of improvements in product engineering, United Automation is able to sell one of its two milling machines. Both machines perform the same function but differ in age. The newer machine could be sold today for $72,500. Its operating costs are $23,000 a year, but in five years the machine will require a $18,500 overhaul. Thereafter operating costs will be $31,500 until the machine is finally sold in year 10 for $7,250.

The older machine could be sold today for $26,500. If it is kept, it will need an immediate $27,500 overhaul. Thereafter operating costs will be $36,900 a year until the machine is finally sold in year 5 for $7,250.   

Both machines are fully depreciated for tax purposes. The company pays tax at 35%. Cash flows have been forecasted in real terms. The real cost of capital is 11%.

a. Calculate the equivalent annual costs for selling the new machine and for selling the old machine. (Do not round intermediate calculations. Enter your answers as a positive value rounded to 2 decimal places.)

Tesco is the largest chain of supermarkets in the United Kingdom. The have expanded internationally and have recently also opened stores in Morocco. However, Tesco has since experienced a variety of issues with the Moroccan market. As business development analyst you only see the three following options for Tesco business in Morocco: Today is December 31, 2020. Suppose you have the following information about the financial implications of Tesco’s three strategic options. Option 1: Scale down operations Tesco immediately starts to scale down its operations and plans to eventually leave the Moroccan market effective as of Jan. 01, 2026 (i.e. after 5 more years). At the end of 2021, Tesco operations in Egypt are projected to generate a loss of £10 million. However, due to the effects of scaling down operations and a number of efficiency increases, Tesco estimates a profit of £8,2 million at the end of 2022, which is then expected to increase by 3% on a yearly basis until Dec. 31, 2025. All forecasts for this option are based on assumptions and considered as risky. Option 2: New local partners The NPV of acquiring new local partners has already been calculated for you: £14 million Option 3: Sell business entirely Tesco immediately sells its Moroccan operations to a local investor. The local investor is willing to pay a total £16 million, in three parts of £10 million (today) and £4 million (on Dec. 31, 2021) and £2 million (on Dec. 31, 2022). Since the local investor has also presented a bank guarantee for the whole acquisition price (issued by a well-known British bank), option 3 is considered to be risk-free. The risk-free interest rate is 1,5% EAR. Tesco continuing operations in Morocco are seen as risky and the appropriate risk premium is 7%.

a. Calculate the net present values (NPVs) of options 1 and 3 indicated above. b. Clearly indicate which option (Option 1, Option 2 or Option 3) should be chosen by Tesco's management, and explain the reasons for your choice in one or two sentences.

As a result of improvements in product engineering, United Automation is able to sell one of its two milling machines. Both machines perform the same function but differ in age. The newer machine could be sold today for $50,000. Its operating costs are $20,000 a year, but in 5 years the machine will require a $20,000 overhaul. Thereafter operating costs will be $30,000 until the machine is finally sold in year 10 for $5,000.

The older machine could be sold today for $25,000. If it is kept, it will need an immediate $20,000 overhaul. Thereafter operating costs will be $30,000 a year until the machine is finally sold in year 5 for $5,000.

Both machines have been fully depreciated for tax purposes before this replacement decision.

The company pays tax at 35 percent. Cash flows have been forecasted in real terms. The real cost of capital is 12 percent.

(Note: the overhaul cost is a capital expenditure and straight line depreciation to zero is used)

Analyse which machine United Automation should sell by answering the following.

(a) Compute the cash flows and NPV of the newer machine if it is kept, without considering the cash flows associated with the older machine.            

(b) Compute the cash flows and NPV of the older machine if it is kept, without considering the cash flows associated with the newer machine.            

(c) Discuss, using the results of parts (a) and (b), which machine should be sold.           

(d) Discuss why the payback period cannot be used for the decision regarding which machine to keep.           

As a result of improvements in product engineering, United Automation is able to sell one of its two milling machines.
Both machines perform the same function but differ in age. The newer machine could be sold today for $74,000. Its operating costs
are $23,200 a year, but at the end of five years, the machine will require a $18,400 overhaul (which is tax deductible).
Thereafter, operating costs will be $31,600 until the machine is finally sold in year 10 for $7,400.

The older machine could be sold today for $26,600. If it is kept, it will need an immediate $28,000 (tax-deductible) overhaul.
Thereafter, operating costs will be $36,800 a year until the machine is finally sold in year 5 for $7,400.

Both machines are fully depreciated for tax purposes. The company pays tax at 21%.Cash flows have been forecasted in real terms.
The real cost of capital is 10%.

   Equivalent Annual Cost
New machine   $ ?
Old machine   $ ?