Barry Bird opened the Barry Bird Basketball Camp for children ages 10 through 18. Campers typically register for one week in June or July, arriving on Sunday and returning home the following Saturday. College players serve as cabin counselors and assist the local college and high school coaches who run the practice sessions. The registration fee includes a room, meals at a nearby restaurant, and basketball instruction. In the off-season, the facilities are used for weekend retreats and coaching clinics.

The following transactions took place during the month of June:

Required:

The ABC Home Health Agency is a nonprofit, Medicare-certified organization established in the mid-1950s in a small Midwestern city. It is accredited by the Accreditation Commission for Health Care, Inc. The agency offers a continuum of preventive and therapeutic services that have an individual, family, and community focus. Clinicians provide services to patients ranging in age from infants to elders. The agency employs supervisory, administrative, IT, and support staff as well as 45 clinicians: 25 nurses, 10 home care aides, 5 homemakers, 3 physical therapists, 1 occupational therapist, and 1 social worker. Staff members are on call 24 hours a day. ABC Home Health Agency services include (1) skilled home health and hospice; (2) home care aide and homemaker; (3) private duty, including nursing, personal care, and respite care; (4) wellness, flu, and immunization clinics; (5) school health; (6) jail health; and (7) durable medical equipment. There are two hospitals with about 100 beds and 15 physicians within the service area. The Agency has a good working relationship with both hospitals and the physicians. Many patients followed by the Agency have been referred from these services. Last year the Agency provided 20,345 home visits. The Agency has used an automated billing, statistical, and financial management information system for 15 years. However, all patient records are maintained in paper-and-pen format. Clinicians use a semistructured format consisting of subjective, objective, assessment, and plan (SOAP) sections. The previous director, who has just retired, did not believe that the cost of implementing an electronic health record (EHR) was justified. You have just been hired as the new director. The board of directors asks you to investigate purchasing an EHR and submit your recommendations to them. Discussion Questions 1. Why would it be important to introduce the clinicians to standardized terminologies and involve them in discussions about EHRs before contacting potential software vendors, or should you use the reverse approach? 2. What steps would you need to complete before reporting to the board of directors?

Part 5 Please prepare the adjusting entries for Cookie Creations. As of December 31, Cookie Creations’ year-end, the following adjusting entry data are provided.

1. A count reveals that $45 of brochures and posters were used.

2. Depreciation is recorded on the baking equipment purchased in November. The bak- ing equipment has a useful life of 5 years. Assume that 2 months’ worth of depreci- ation is required.

3. Amortization (which is similar to depreciation) is recorded on the website. (Credit the Website account directly for the amount of the amortization.) The website is amortized over a useful life of 2 years and was available for use on December 1.

4. Interest on the note payable is accrued. (Assume that 1.5 months of interest accrued during November and December.) Round to nearest dollar.

5. One month’s worth of insurance has expired.

6. Natalie is unexpectedly telephoned on December 28 to give a cookie class at the neigh- borhood community center on December 31. In early January Cookie Creations sends an invoice for $450 to the community center.

7. A count reveals that $1,030 of baking supplies were used.

8. A cell phone invoice is received for $75. The invoice is for services provided during the month of December and is due on January 15.

9. Because the cookie-making class occurred unexpectedly on December 28 and is for such a large group of children, Natalie’s assistant helps out. Her assistant worked 7 hours at a rate of $8 per hour.

10. An analysis of the unearned revenue account reveals that two of the five classes paid for by the local school board on December 9 still have not been taught by the end of Decem- ber. The $60 deposit received on December 19 for another class also remains unearned.

Instructions Using the information that you have gathered and the general ledger accounts that you have prepared through Part 4, plus the new information above, do the following. (d) Prepare and post adjusting journal entries for the month of December. (e) Prepare an adjusted trial balance as of December 31, 2011.

According to Nurmazilah, the nation building mantra became the kind of soul searching within MIA staff. MIA was established by Parliament with the mandate to develop the accounting profession. The profession shall support the economic development in the country particularly in the 1960s where Malaysian economy is at the wake of British “rule and divide” economic agenda. Until now, the nation building mantra is the key to MIA strategy particularly in preparing the accountants to embrace technology. The performance of MIA is reflected by its ability to translate the nation building strategy into its operational activities and the relationship with its stakeholders. The IT strategic plan is the first step in the journey of translating nation building strategy into practice. The IT strategic plan are divided into inner layer and outer layer. Inner layer is within MIA where IT enables its internal operation to be more efficient by putting IT governance and necessary infrastructures in place and outer layer focus on stimulating the profession as a whole; one of the milestones is the e-bank confirmation that materialized in 2020 but the initial works has started since 2016. In keeping up with the global development of the accountancy profession, Nurmazilah acknowledged the dire need for members of the Institute; practitioners in commercial sector, public sector and academia alike, to be prepared to address for what is coming in the next months and years to come – technology advancement. Accounting and auditing services in particular, are facing the overarching concerns: the impact of new technologies disrupting the profession, and its ability to adapt to the rapid pace of change. She understood this issue well, after all, four years of her younger days back in the Birmingham Business School was very much focused on completing her PhD thesis on technology adoption by auditors. To drive this, and ensuring that needs of every sections of its diverse members, the Institute needs to have its own digital strategy. As she understood the issue, it dawned on her that there were many other aspects within the Institute that needed her consideration and funding.

Using the concept of fiduciary duty, focus on Nurmazilah’s specific attributes and give specific examples on her success and aspects that need further improvement.

Part 5 Please prepare the adjusting entries for Cookie Creations. As of December 31, Cookie Creations’ year-end, the following adjusting entry data are provided.

1. A count reveals that $45 of brochures and posters were used.

2. Depreciation is recorded on the baking equipment purchased in November. The bak- ing equipment has a useful life of 5 years. Assume that 2 months’ worth of depreci- ation is required.

3. Amortization (which is similar to depreciation) is recorded on the website. (Credit the Website account directly for the amount of the amortization.) The website is amortized over a useful life of 2 years and was available for use on December 1.

4. Interest on the note payable is accrued. (Assume that 1.5 months of interest accrued during November and December.) Round to nearest dollar.

5. One month’s worth of insurance has expired.

6. Natalie is unexpectedly telephoned on December 28 to give a cookie class at the neigh- borhood community center on December 31. In early January Cookie Creations sends an invoice for $450 to the community center.

7. A count reveals that $1,030 of baking supplies were used.

8. A cell phone invoice is received for $75. The invoice is for services provided during the month of December and is due on January 15.

9. Because the cookie-making class occurred unexpectedly on December 28 and is for such a large group of children, Natalie’s assistant helps out. Her assistant worked 7 hours at a rate of $8 per hour.

10. An analysis of the unearned revenue account reveals that two of the five classes paid for by the local school board on December 9 still have not been taught by the end of Decem- ber. The $60 deposit received on December 19 for another class also remains unearned.

Instructions Using the information that you have gathered and the general ledger accounts that you have prepared through Part 4, plus the new information above, do the following.

(d) Prepare and post adjusting journal entries for the month of December. (e) Prepare an adjusted trial balance as of December 31, 2011.

Natalie Koebel spent much of her childhood learning the art of cookie-making from her grandmother. They spent many happy hours mastering every type of cookie imaginable and later devised new recipes that were both healthy and delicious. Now at the start of her second year in college, Natalie is investigating possibilities for starting her own business as part of the entrepreneurship program in which she is enrolled.

A long-time friend insists that Natalie has to include cookies in her business plan. After a series of brainstorming sessions, Natalie settles on the idea of operating a cookie-making school. She will start on a part-time basis and offer her services in people’s homes. Now that she has started thinking about it, the possibilities seem endless. During the fall, she will concentrate on holiday cookies. She will offer group sessions (which will probably be more entertainment than education) and individual lessons. Natalie also decides to include children in her target market. The first difficult decision is coming up with the perfect name for her business. She settles on “Cookie Creations,” and then moves on to more important issues.

Instructions

(a) What form of business organization—proprietorship, partnership, or corporation— do you recommend that Natalie use for her business? Discuss the benefits and weaknesses of each form that Natalie might consider.

(b) Will Natalie need accounting information? If yes, what information will she need and why? How often will she need this information?

(c) Identify specific asset, liability, revenue, and expense accounts that Cookie Creations will likely use to record its business transactions.

(d) Should Natalie open a separate bank account for the business? Why or why not?

(e) Natalie expects she will have to use her car to drive to people’s homes and to pick up supplies, but she also needs to use her car for personal reasons. She recalls from her first-year accounting course something about keeping business and personal assets separate. She wonders what she should do for accounting purposes. What do you recommend?

Eugenia Monroe, 30 years old, is currently employed at an IT firm where she earns $38,000 a year. She expects that her salary will grow by 3% per year. She expects to retire at age 65. She has recently inherited $75,000 and is now considering what to do with the sum. She has two options: First, she could enroll in a certification program in net work design. The program requires completing 20 Web-based courses over one year. The total cost of the program is $5,000, payable when she enrolls. She will not lose any income because she can study while working. When she obtains the certification, she can expect an increase in salary of $10,000 compared to her current job, and this differential will grow at 3% per year so long as she keeps working in that new position. Second, she could enroll for an MBA. It will be an evening program, and it will cost $25,000 per year, due at the beginning of each of her three years in school. Because it is an evening program, she will not lose any income because she can study while working. When she obtains the MBA degree, she can expect a promotion to manager and an increase in salary of $20,000 compared to her current job, and this differential will grow at 3% per year so long as she keeps working in that managerial position. Using a discount rate of 2.95%, please answer the following questions: Create worksheets in Excel showing the timelines for her two alternatives. Assume that salaries are paid only once, on January 1 of the next year. Hence, when she obtains a qualification in, say, 2018, the higher salary does not kick in until 2019. Calculate the present value of the salary differential for completing the certification program. Subtract the present value of the cost of the program to get the net present value. Calculate the present value of the salary differential for completing the MBA program. Subtract the present value of the cost of the program to get the net present value. Based on your answers above, which choice would you recommend to Eugenia Monroe?

World no.1 Rafael Nadal is to succeed football icons David Beckham and Cristiano Ronaldo as the male face of Emporio Armani Underwear and Armani jeans.

The 24 year-old Spaniard is now building a massive portfolio of endorsement deals with concerns such as Richard Mille watches, Mapfe SA (Spain’s largest insurance company), Kia Motors, Lanvin fragrances and of course Nike Inc. and Babolat.

Even the most conservative estimates maintain that Nadal’s commercial appeal will boost his annual earnings to somewhere comfortably in excess of $US 40 million a year. With three major titles to his credit in 2010 he has collected $10,171,998 in prize money alone.

Simon Chadwick, a professor of sports business strategy and marketing at the Coventry University Business School in England, confidently predicted: “Nadal will even transcend the Federer brand.”

Nadal’s first campaign shots for Armani will not be released until in the New Year and the decision to switch sporting focus for its’ underwear brand from football to tennis is seen as a bold move in a sector of male fashion that is worth more close to $US 10 billion a year.

Armani’s campaign involving Real Madrid and Portugal star Ronaldo was deemed a success across global markets. Other fashion companies including Milanese rivals Dolce and Gabbana recruited the entire Italian World Cup squad.

The only tennis player to previously make a global impact on the underwear market was Bjorn Borg who started his own brand in Sweden that became a worldwide concern. Patrick Rafter is the current image of Bonds underwear in Australia.

Interestingly, no one at Armani seems to realize the irony of signing Nadal who is notorious for taking time between points for readjustment because he habitually seems to struggle with the fit of his underwear.

1. Discuss the link between a brand image and pricing strategy.
2. Discuss the advantages and disadvantages of using social networks as part of a promotional campaign.
3. Discuss the advantages and disadvantages of celebrity endorsement in the promotion of fashion brands.

1.

Seams Personal advertises on its website that 95% of customer orders are received within four working days. They performed an audit from a random sample of 500 of the 6,000 orders received that month and it shows 470 orders were received on time.

(Question) If Seams Personal customers really receive 95% of their orders within four working days, what is the probability that the proportion in the random sample of 500 orders is the same as the proportion found in the audit sample or less?

2.

You collect a random sample of size n from a population and calculate a 98% confidence interval. Which of the following strategies produces a new confidence interval with a decreased margin of error?

Use a 99% confidence level.  Use a 95% confidence level.  Decrease the sample size.  Use the same confidence level, but compute the interval n times. Approximately 2% of these intervals will be larger.  Nothing can guarantee that you will obtain a larger margin of error. You can only say that the chance of obtaining a larger interval is 0.02.

3.

Faculty members at Lowell Place High School want to determine whether there are enough students to have a Valentine's Day Formal. Eighty-eight of the 200 students said they would attend the Valentine's Day Formal. Construct and interpret a 90% confidence interval for p.

The 90% confidence interval is (0.4977, 0.5023). We are 90% confident that the true proportion of students attending the Valentine's Day Formal is between 49.77% and 50.23%.  The 90% confidence interval is (0.3823, 0.4977). There is a 90% chance that a randomly selected student who will attend the Valentine's Day Formal lies between 38.23% and 49.77%. The 90% confidence interval is (0.4977, 0.5023). Ninety percent of all samples of this size will yield a confidence interval of (0.4977, 0.5023). The 90% confidence interval is (0.3823, 0.4977). Ninety percent of all samples of this size will yield a confidence interval of (0.3823, 0.4977). The 90% confidence interval is (0.3823, 0.4977). We are 90% confident that the true proportion of students attending the Valentine's Day Formal is between 38.23% and 49.77%.