Industrial Engineering Problem/ Probability and Statistics, Will give good rating.
Solve problems using Minitab. Show evidence that they used the program by putting screen shots of the results.

Exercises:

1. Among the 120 applicants for a job, only 80 are qualified. If 5 of these applicants are selected at random for an interview, answer the following:

to. Identify the random process


b. Define a variable


c. Associate the random variable with a distribution and its parameters

2) Describe in 2-3 paragraphs the key differences (strengths and weaknesses) of Quantitative versus Qualitative research methods as you interview Millennial and Gen Z participants on the impact of Covid

3) Why is conducting Covid research among students so important?

4) Why is the notion of ‘do no harm’ so important when conducting marketing research on topics such as CBD legalization and the use of cannabis in vaping devices?

Interview a person who is employed in a sex-atypical occupation (e.g., a male dental hygienist or female professor of business in a tenure-track position). What factors affected his or her career decision? What background experiences and/or educational requirements were needed to qualify for this particular job? What were the reactions of families, friends, and coworkers? What diversity-related experiences have stood out for this person at work?

You are an Audit Senior currently planning the 30 June 20X8 audit of Forest Limited, an Australian-owned company that produces and exports woodchips to Japan. Forest’s operations are located in Eden, on the far south coast of NSW. Timber is purchased from forests nearby, processed into woodchips and immediately stockpiled for export at the company’s shipyards at Twofold Bay. Forest contracts timber cutters to deliver set tonnages of logs to its mill throughout the year. Woodchips are transported to Japan on charter vessels, which make an average of one trip a month.

At a recent planning meeting with Forest Limited’s senior staff, you obtained the following overview of this year’s operations:

A massive conveyor belt is used to transport the woodchips from the mill to the stockpile. The manufacturer of this belt was recently taken over by an overseas competitor of Forest Limited, Chipper Limited, which processes woodchips in several South-East Asian countries. Chipper Limited has indicated that it is willing to sell equipment to its competitors, but at double the price it will sell to its other customers. It is doubtful whether any other companies in the world manufacture such specialised conveyor belts.

Based on current usage figures, it is expected that the existing conveyor belt will last until December 20X9. Sufficient spare parts are on hand to carry out routine maintenance work. However, should a replacement belt be required, it would take at least six months to have a replacement made and shipped to Australia, and a further four weeks to install and test it. It is unlikely that the company could survive a six-month interruption to normal operations. Management are currently deciding whether they should order a replacement belt from Chipper Limited despite the excessive cost, or continue to search for an alternate supplier.

Timber is purchased in 50 hectare lots from plantations and state forests. In the past, 70% of timber was sourced from plantations, however this has fallen to 50% in the current year. The corresponding increase in timber sourced from state forests has angered environmental groups. Protests have been held in several forests, which has slowed production and frustrated the contractors, who are only paid once set tonnages of timber are delivered to the mill. In addition, several shipments of woodchips have been delayed, angering the Japanese customers who are threatening to deduct 20% from amounts owing as compensation for lost production time.

Last month, a protester suffered a broken leg, allegedly because he was hit by a timber truck. The protester was blocking the main access road to one of the state forests at the time of the accident. The protester is now suing Forest Limited for damages, claiming the contractor was in fact an employee of Forest Limited at the time of the accident, and was acting on Forest Limited’s instructions. Forest Limited is fighting the case and appears to have a reasonable chance of winning; however, the adverse publicity being
generated is making the state government nervous about selling Forest Limited any more of its timber resources.

One of Forest Limited’s customers, Wood Limited, is claiming that the latest batch of woodchips it received was contaminated with a microbe. This microbe affects the physical structure of the chips, reducing the pressure the chips can withstand when compressed. This has made the chips useless for heavy duty items such as desks and bookcases. Wood Limited is refusing to pay its account, which is already five months overdue. Forest Limited has launched an investigation into the allegations, but as yet has not been able to substantiate them.

In January, Forest Limited upgraded its accounts payable system to a fully integrated package that automatically updates the general ledger when creditor entries are made. Some problems have been experienced with the creditors ledger, which is split into $US and $AUD amounts. In some cases, $US amounts have been recorded as $AUD, resulting in inaccurate creditor balances. Month-end rollovers have also proved problematic, with creditor balances being incorrectly re-set to zero at the first of every month. This has required each creditor’s history to be re-entered manually each month, a time-consuming process that is taking accounting staff away from their normal duties.

During the period, the Australian dollar has remained steady against the Yen, although it fell by about 3% against the US dollar. Debtors are invoiced in $US at the time of shipment, and paid in $US one month after the shipment is received. It takes around six weeks for the charter vessels to travel from Twofold Bay to Japan. All plantations from which Forest Limited sources timber are owned by US firms, which demand payment in $US prior to the timber being cut. A recent downturn in the Japanese economy is affecting forward orders, which have fallen by 15%.

Required:

Prepare a memorandum to the audit manager, outlining your risk assessment relating to Forest Limited. When making your risk assessment:

(a) Identify three (3) key accounts from the information provided that are subjected to an increase in audit risk. Briefly explain what factors increase the audit risk associated with the three (3) accounts identified. In your explanation, please mention the key assertion(s) at risk of material misstatement and the components of the audit risk model affected for each account identified.

(b) Identify how the audit plan will be affected and recommend specific audit procedures to address the risks associated with each account identified.

You are an Audit Senior currently planning the 30 June 20X8 audit of Forest Limited, an Australian-owned company that produces and exports woodchips to Japan. Forest’s operations are located in Eden, on the far south coast of NSW. Timber is purchased from forests nearby, processed into woodchips and immediately stockpiled for export at the company’s shipyards at Twofold Bay. Forest contracts timber cutters to deliver set tonnages of logs to its mill throughout the year. Woodchips are transported to Japan on charter vessels, which make an average of one trip a month.
At a recent planning meeting with Forest Limited’s senior staff, you obtained the following overview of this year’s operations:
A massive conveyor belt is used to transport the woodchips from the mill to the stockpile. The manufacturer of this belt was recently taken over by an overseas competitor of Forest Limited, Chipper Limited, which processes woodchips in several South-East Asian countries. Chipper Limited has indicated that it is willing to sell equipment to its competitors, but at double the price it will sell to its other customers. It is doubtful whether any other companies in the world manufacture such specialised conveyor belts.
Based on current usage figures, it is expected that the existing conveyor belt will last until December 20X9. Sufficient spare parts are on hand to carry out routine maintenance work. However, should a replacement belt be required, it would take at least six months to have a replacement made and shipped to Australia, and a further four weeks to install and test it. It is unlikely that the company could survive a six-month interruption to normal operations. Management are currently deciding whether they should order a replacement belt from Chipper Limited despite the excessive cost, or continue to search for an alternate supplier.
Timber is purchased in 50 hectare lots from plantations and state forests. In the past, 70% of timber was sourced from plantations, however this has fallen to 50% in the current year. The corresponding increase in timber sourced from state forests has angered environmental groups. Protests have been held in several forests, which has slowed production and frustrated the contractors, who are only paid once set tonnages of timber are delivered to the mill. In addition, several shipments of woodchips have been delayed, angering the Japanese customers who are threatening to deduct 20% from amounts owing as compensation for lost production time.
Last month, a protester suffered a broken leg, allegedly because he was hit by a timber truck. The protester was blocking the main access road to one of the state forests at the time of the accident. The protester is now suing Forest Limited for damages, claiming the contractor was in fact an employee of Forest Limited at the time of the accident, and was acting on Forest Limited’s instructions. Forest Limited is fighting the case and appears to have a reasonable chance of winning; however, the adverse publicity being
generated is making the state government nervous about selling Forest Limited any more of its timber resources.
One of Forest Limited’s customers, Wood Limited, is claiming that the latest batch of woodchips it received was contaminated with a microbe. This microbe affects the physical structure of the chips, reducing the pressure the chips can withstand when compressed. This has made the chips useless for heavy duty items such as desks and bookcases. Wood Limited is refusing to pay its account, which is already five months overdue. Forest Limited has launched an investigation into the allegations, but as yet has not been able to substantiate them.
In January, Forest Limited upgraded its accounts payable system to a fully integrated package that automatically updates the general ledger when creditor entries are made. Some problems have been experienced with the creditors ledger, which is split into $US and $AUD amounts. In some cases, $US amounts have been recorded as $AUD, resulting in inaccurate creditor balances. Month-end rollovers have also proved problematic, with creditor balances being incorrectly re-set to zero at the first of every month. This has required each creditor’s history to be re-entered manually each month, a time-consuming process that is taking accounting staff away from their normal duties.
During the period, the Australian dollar has remained steady against the Yen, although it fell by about 3% against the US dollar. Debtors are invoiced in $US at the time of shipment, and paid in $US one month after the shipment is received. It takes around six weeks for the charter vessels to travel from Twofold Bay to Japan. All plantations from which Forest Limited sources timber are owned by US firms, which demand payment in $US prior to the timber being cut. A recent downturn in the Japanese economy is affecting forward orders, which have fallen by 15%.
Required:
Prepare a memorandum to the audit manager, outlining your risk assessment relating to Forest Limited. When making your risk assessment:
(a) Identify three (3) key accounts from the information provided that are subjected to an increase in audit risk. Briefly explain what factors increase the audit risk associated with the three (3) accounts identified. In your explanation, please mention the key assertion(s) at risk of material misstatement and the components of the audit risk model affected for each account identified.
(b) Identify how the audit plan will be affected and recommend specific audit procedures to address the risks associated with each account identified.

You are an Audit Senior currently planning the 30 June 20X8 audit of Forest Limited, an Australian-owned company that produces and exports woodchips to Japan. Forest’s operations are located in Eden, on the far south coast of NSW. Timber is purchased from forests nearby, processed into woodchips and immediately stockpiled for export at the company’s shipyards at Twofold Bay. Forest contracts timber cutters to deliver set tonnages of logs to its mill throughout the year. Woodchips are transported to Japan on charter vessels, which make an average of one trip a month.

At a recent planning meeting with Forest Limited’s senior staff, you obtained the following overview of this year’s operations:

A massive conveyor belt is used to transport the woodchips from the mill to the stockpile. The manufacturer of this belt was recently taken over by an overseas competitor of Forest Limited, Chipper Limited, which processes woodchips in several South-East Asian countries. Chipper Limited has indicated that it is willing to sell equipment to its competitors, but at double the price it will sell to its other customers. It is doubtful whether any other companies in the world manufacture such specialised conveyor belts.

Based on current usage figures, it is expected that the existing conveyor belt will last until December 20X9. Sufficient spare parts are on hand to carry out routine maintenance work. However, should a replacement belt be required, it would take at least six months to have a replacement made and shipped to Australia, and a further four weeks to install and test it. It is unlikely that the company could survive a six-month interruption to normal operations. Management are currently deciding whether they should order a replacement belt from Chipper Limited despite the excessive cost, or continue to search for an alternate supplier.

Timber is purchased in 50 hectare lots from plantations and state forests. In the past, 70% of timber was sourced from plantations, however this has fallen to 50% in the current year. The corresponding increase in timber sourced from state forests has angered environmental groups. Protests have been held in several forests, which has slowed production and frustrated the contractors, who are only paid once set tonnages of timber are delivered to the mill. In addition, several shipments of woodchips have been delayed, angering the Japanese customers who are threatening to deduct 20% from amounts owing as compensation for lost production time.

Last month, a protester suffered a broken leg, allegedly because he was hit by a timber truck. The protester was blocking the main access road to one of the state forests at the time of the accident. The protester is now suing Forest Limited for damages, claiming the contractor was in fact an employee of Forest Limited at the time of the accident, and was acting on Forest Limited’s instructions. Forest Limited is fighting the case and appears to have a reasonable chance of winning; however, the adverse publicity being generated is making the state government nervous about selling Forest Limited any more of its timber resources.

One of Forest Limited’s customers, Wood Limited, is claiming that the latest batch of woodchips it received was contaminated with a microbe. This microbe affects the physical structure of the chips, reducing the pressure the chips can withstand when compressed. This has made the chips useless for heavy duty items such as desks and bookcases. Wood Limited is refusing to pay its account, which is already five months overdue. Forest Limited has launched an investigation into the allegations, but as yet has not been able to substantiate them.

In January, Forest Limited upgraded its accounts payable system to a fully integrated package that automatically updates the general ledger when creditor entries are made. Some problems have been experienced with the creditors ledger, which is split into $US and $AUD amounts. In some cases, $US amounts have been recorded as $AUD, resulting in inaccurate creditor balances. Month-end rollovers have also proved problematic, with creditor balances being incorrectly re-set to zero at the first of every month. This has required each creditor’s history to be re-entered manually each month, a time-consuming process that is taking accounting staff away from their normal duties.

During the period, the Australian dollar has remained steady against the Yen, although it fell by about 3% against the US dollar. Debtors are invoiced in $US at the time of shipment, and paid in $US one month after the shipment is received. It takes around six weeks for the charter vessels to travel from Twofold Bay to Japan. All plantations from which Forest Limited sources timber are owned by US firms, which demand payment in $US prior to the timber being cut. A recent downturn in the Japanese economy is affecting forward orders, which have fallen by 15%.

Required: Prepare a memorandum to the audit manager, outlining your risk assessment relating to Forest Limited. When making your risk assessment:

(a) Identify three (3) key accounts from the information provided that are subjected to an increase in audit risk. Briefly explain what factors increase the audit risk associated with the three (3) accounts identified. In your explanation, please mention the key assertion(s) at risk of material misstatement and the components of the audit risk model affected for each account identified.

(b) Identify how the audit plan will be affected and recommend specific audit procedures to address the risks associated with each account identified.

At a recent graduate recruitment event, you talked with a number of different people on company stands. Each talked about the various modules that you took on your course, your ambitions and aims.

The next day, you received an e-mail from the Chief Executive Officer (CEO) at ABC Bank PLC. She explained that your ideas about the importance of cyber security were very interesting and thinks that someone of your skills and knowledge may be just what the bank is looking for, as a senior risk manager. In this capacity the senior executives of your organisation have come to you with concerns about reports concerning cyber-attacks and viruses affecting IT systems and the problem encountered by companies such as TSB Bank and VISA in Europe with their IT systems. They were alarmed by the continued growth of ransomware attacks in particular.

To reassure the senior management you are required to identify the cyber risk facing a financial institution and develop a risk management plan including ‘continuity planning’ (or “resilience”) for the organisation to enable the organisation to manage a cyber incident effectively and continue trading in the event of the risk occurring.

Shell Camping Gear is considering two projects. Each requires an initial investment of

R1 000 000. John Shell, CEO of the company, has set a maximum payback period of

four years. Information regarding the forecasted net cash flows from each product is

presented below:

Project X Project Y

R R

Year 1 100 000 400 000

Year 2 200 000 300 000

Year 3 300 000 200 000

Year 4 400 000 200 000

Year 5 500 000 200 000

Shell Camping Gear’s discount rate (WACC) is 14% and the corporate tax rate is 28%.

REQUIRED:

5.3 Evaluate the two (2) projects Shell Camping Gear is considering and

recommend, with justification, which project Shell Camping Gear should accept.

Your answer should include:

a) The payback period (2)

b) The NPV (6)

c) The IRR (2)

d) Recommendation (5)

(SHOW ALL WORKINGS)

You are the manager of a local factory that produces plastic bottles for soft drink manufacturers. Your colleague brings an assembly line project to a meeting with the following data:  

           Estimated life of assembly line:                      5 years

            Initial investment cost:                                   $740,000

            Estimated salvage value:                                 none

            Current interest rates:                                      15 percent

            Estimated Cash Flow Analysis

            Year                                        Expected Cash Flow

            1                                              $360,000

            2                                              240,000

            3                                              100,000

            4                                                  25,000

            5                                                  20,000

            a) As your colleague begins going through the analysis with the CEO, you wait until he pauses and state, “I can tell already this is not an investment we should pursue.”  Your colleague asks how you could possible know that from looking at the data for one minute. How DO you know?

            b) Suppose you are given the same assembly line data, but now interest rates have fallen to 0.05 percent. Do you think the company should purchase the new line? How can you know that for certain?

Please answer questions in the order listed. You do not need to be completely correct, but I do need to see an honest effort. For this post, YOU MUST SHOW YOUR WORK, on any question requiring math. This is to make it so that I can see where exactly where you mis-stepped in your calculation or logic, and/or so that your classmates can learn from you.

5.) MicroServe needs $100,000 to upgrade its warehouse. Dayna, the CEO of MicroServe, thinks they can put off the upgrade for 5 years. The company will make 5 annual deposits to fund this expansion. If the account earns 8% interest, how much does Dayna need to deposit every year? (Round your answers to the nearest dollar and show your work!!!)

6.) How is the carrying value of a bond computed?

7.) When the effective interest rate is higher than the stated interest rate on a bond issue, will the bond sell at a discount or premium? Why?

8.) Explain the difference between the straight-line and the effective interest method of amortization of bond premiums and discounts.