Read the case study and answer the questions

When many people think of a traditional, established company, they think of IBM. IBM has been famous for its written and unwritten rules—such as its no-layoff policy, its focus on individual promotions and achievement, the expectation of lifetime service at the company, and its requirement of suits and white shirts at work. The firm was one of the mainstays of the “man in a gray flannel suit” corporate culture in the United States. Times have certainly changed. IBM has clients in 170 countries and now does two-thirds of its business outside the United States. As a result, it has overturned virtually all aspects of its old culture. One relatively new focus is on teamwork. While IBM uses work teams extensively, like almost all large organizations, the way it does so is unique. To foster appreciation of a variety of cultures and open up emerging markets, IBM sends hundreds of its employees to month-long volunteer project teams in regions of the world where most big companies don’t do business. Al Chakra, a software development manager located in Raleigh, North Carolina, was sent to join GreenForest, a furniture manufacturing team in Timisoara, Romania. With Chakra were IBM employees from five other countries. Together, the team helped GreenForest become more computer-savvy to increase its business. In return for the IBM team’s assistance, GreenForest was charged nothing. This is hardly altruism at work. IBM firmly believes these multicultural, multinational teams are good investments. First, they help lay the groundwork for uncovering business in emerging economies, many of which might be expected to enjoy greater future growth than mature markets. Stanley Litow, the IBM VP who oversees the program, also thinks it helps IBMers develop multicultural team skills and an appreciation of local markets. He notes, “We want to build a leadership cadre that learns about these places and also learns to exchange their diverse backgrounds and skills.” Among the countries where IBM has sent its multicultural teams are Turkey, Tanzania, Vietnam, Ghana, and the Philippines. As for Chakra, he was thrilled to be selected for the team. “I felt like I won the lottery,” he said. He advised GreenForest on how to become a paperless company in 3 years and recommended computer systems to boost productivity and increase exports to western Europe. Another team member, Bronwyn Grantham, an Australian who works at IBM in London, advised GreenForest about sales strategies. Describing her team experience, Grantham said, “I’ve never worked so closely with a team of IBMers from such a wide range of competencies.”

Required Questions:

Question 01: If you calculate the person-hours devoted to IBM’s team projects, they amount to more than 180,000 hours of management time each year. Do you think this is a wise investment of IBM’s human resources? Why or why not?

Question 02: Why do you think IBM’s culture changed from formal, stable, and individualistic to informal, impermanent, and team-oriented?

Question 03: Would you like to work on one of IBM’s multicultural, multinational project teams? Why or why not?

Question 04: Multicultural project teams often face problems with communication, expectations, and values. How do you think some of these challenges can be overcome?

Suppose you want to conduct a survey of a sample of registered at the University. Discuss some techniques that would be appropriate to select the sample. Discuss the advantages and disadvantages of each.

Assume you have just been appointed a project manager for building a female hostel at the University Campus area. Prepare the procurement plan to be submitted to the management

Kathy Myers frequently purchases stocks and bonds, but she is uncertain how to determine the rate of return that she is earning. For example, three years ago she paid $24,000 for 890 shares of Malti Company’s common stock. She received a $837 cash dividend on the stock at the end of each year for three years. At the end of three years, she sold the stock for $25,000. Kathy would like to earn a return of at least 13% on all of her investments. She is not sure whether the Malti Company stock provide a 13% return and would like some help with the necessary computations.

Click here to view Exhibit 14B-1 and Exhibit 14B-2, to determine the appropriate discount factor(s) using tables.

Required:

1. Compute the net present value that Kathy earned on her investment in Malti Company stock.

2. Did the Malti Company stock provide a 13% return?

RTI Company’s master budget calls for production and sale of 18,200 units for $83,720, variable costs of $32,760, and fixed costs of $20,000. During the most recent period, the company incurred $32,200 of variable costs to produce and sell 20,000 units for $85,200. During this same period, the company earned $25,200 of operating income.

Required:

1. Determine the following for RTI Company: (Do not round intermediate calculations. Round your answers to the nearest whole dollar.)

a. Flexible-budget operating income.

b. Flexible-budget variance, in terms of contribution margin. Was this variance favorable (F) or unfavorable (U)?

c. Flexible-budget variance, in terms of operating income. Was this variance favorable (F) or unfavorable (U)?

d. Sales volume variance, in terms of contribution margin. Was this variance favorable (F) or unfavorable (U)?

e. Sales volume variance, in terms of operating income. Was this variance favorable (F) or unfavorable (U)?

RTI Company’s master budget calls for production and sale of 18,100 units for $81,450, variable costs of $30,770, and fixed costs of $18,000. During the most recent period, the company incurred $34,100 of variable costs to produce and sell 18,000 units for $84,000. During this same period, the company earned $23,000 of operating income.

QUESTIONS:

1. Determine the following for RTI Company: (Do not round intermediate calculations. Round your answers to the nearest whole dollar.)

a. Flexible-budget operating income.

b. Flexible-budget variance, in terms of contribution margin. Was this variance favorable (F) or unfavorable (U)?

c. Flexible-budget variance, in terms of operating income. Was this variance favorable (F) or unfavorable (U)?

d. Sales volume variance, in terms of contribution margin. Was this variance favorable (F) or unfavorable (U)?

e. Sales volume variance, in terms of operating income. Was this variance favorable (F) or unfavorable (U)?

Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items a through h that require adjusting entries on December 31, 2017, follow. Additional Information Items An analysis of WTI's insurance policies shows that $3,600 of coverage has expired. An inventory count shows that teaching supplies costing $3,120 are available at year-end 2017. Annual depreciation on the equipment is $14,400. Annual depreciation on the professional library is $7,200. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,700, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018. On October 15,

WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,380 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)

WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee. The balance in the Prepaid Rent account represents rent for December.

WELLS TECHNICAL INSTITUTE Unadjusted Trial Balance December 31, 2017

Debit

Cash- $27,547

Accounts receivable- 0

Teaching supplies- 10,594

Prepaid insurance- 15,894

Prepaid rent- 2,120

Professional library- 31,784

Equipment- 74,152

Dividends- 42,381

Depreciation expense—Professional library 0

Depreciation expense—Equipment 0

Salaries expense 50,858

Insurance expense- 0

Rent expense- 23,320

Teaching supplies expense- 0

Advertising expense -7,417

Utilities expense -5,933

$ 292,000

Credit

Problem 3-3A Part 2 2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts. 2-b. Prepare an adjusted trial balance
.

Additional Information Items

A. An analysis of WTI's insurance policies shows that $3,600 of coverage has expired.

B. An inventory count shows that teaching supplies costing $3,120 are available at year-end 2017.

C. Annual depreciation on the equipment is $14,400.

D. Annual depreciation on the professional library is $7,200.

E. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,700, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018.

F. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $4,380 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)

G. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.

H. The balance in the Prepaid Rent account represents rent for December.

Prepare Wells Technical Institute's balance sheet as of December 31, 2017.

5.23

5.23

Find the amount to which $400 will grow under each of these conditions:

1. 12% compounded annually for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

2. 12% compounded semiannually for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

3. 12% compounded quarterly for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

4. 12% compounded monthly for 8 years. Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

5. 12% compounded daily for 8 years. Assume 365-days in a year. Do not round intermediate calculations. Round your answer to the nearest cent.

   $  

6. Why does the observed pattern of FVs occur?
   -Select-The future values increase because as compounding periods per year increase, interest is earned on interest less frequently.The future values decrease because as compounding periods per year increase, interest is earned on interest more frequently.The future values increase because as compounding periods per year increase, interest is earned on interest more frequently.The future values increase because as compounding periods per year decrease, interest is earned on interest more frequently.The future values decrease because as compounding periods per year decrease, interest is earned on interest more frequently.Item 6

Collusion: Exploitation or benefit?

In 2011, two soap and detergent firms, Unilever and Procter & Gamble, were fined a total of €315m (US$ 220m) for fixing the price of washing powder in eight European countries. Procter & Gamble is the world’s largest consumer products company.

The two firms had colluded over prices for more than three years. The collusion began when they agreed to implement an industry-wide programme to improve their environmental impact by obtaining their raw materials from sustainable sources. They also agreed to reduce the amount of packaging they used but to keep the prices unchanged. Then, later, they collectively agreed to raise prices in Belgium, France, Germany, Greece, Italy, Portugal, Spain and the Netherlands. This collusion was against the European Union competition laws and was regarded as ‘unfair competition’.

1. Explain what is meant by ‘collusion’ and when it is most likely to occur in an industry.