Your firm has been hired to develop new software for the​ university's class registration system. Under the​ contract, you will receive $ 510,000 as an upfront payment. You expect the development costs to be $ 444,000 per year for the next 3 years. Once the new system is in​ place, you will receive a final payment of $ 862,000 from the university 4 years from now.

a. What are the IRRs of this​ opportunity?(Hint: Build an Excel model which tests the NPV at​ 1% intervals from​ 1% to​ 40%. Then zero in on the rates at which the NPV changes​ signs.)

b. If your cost of capital is 10 %​, is the opportunity​ attractive?

Suppose you are able to renegotiate the terms of the contract so that your final payment in year 4 will be $ 1.2 million.  

c. What is the IRR of the opportunity​ now?

d. Is it attractive at the new​ terms?

Commonly used measures of globalisation of markets and production are the following ratios: World Exports/world GDP and World Inward FDI/World Gross Capital Formulation. There are also other measures to consider such as university students, patents, venture capital, internet traffic, equity investments, news media, bank deposits and many more which are expressed as a percentage of world totals. Identify six different countries: two from the Southern African Development Community (SADC), two from the East African Community (EAC), and two from the Common Market for Eastern and Southern Africa (COMESA), and use globalisation measures to analyse the most globalised of the six countries in the three economic trade regions. Use the analysis to write an expository essay that illustrates the extent to which the six countries are globalised

Topic:   Revenue & Misrepresentation by Clients

Characters: Rachel Hanson, Senior in CPA firm

Jim Thompson, Owner/manager of Fashion Line

Sharon, part-time bookkeeper of Fashion Line

In addition to the usual mix of compilation, review and audit clients for which Rachel Hunt

serves as a senior in a small office of a regional CPA firm, she has been assigned a new

client that recently engaged the firm. Fashion Line, an incorporated retail outlet, is a thriving

local store. The business is run by a single owner/manager, Jim Thompson, who makes

all major decisions. The business has not previously used the services of a CPA firm. In

addition to preparation of financial statements, the CPA firm will handle tax returns for the

business.

At her Line visit to the client’s office, Rachel is introduced to Sharon, the part-time

bookkeeper who is also a full-time accounting student at the local university. At a

subsequent meeting, Sharon confides to Rachel that she found the job at the beginning of the

semester after an extensive search. Sharon really needs the money to help finance her

education, and feels lucky to have found a good-paying job during the current economic

downturn. Feeling that Rachel is someone she can talk to and get advice from, Sharon

describes a situation that has been on her mind for some time now.

Sharon’s concern relates to the handling of sales revenues. When monies from sales revenues

are counted and deposited on a weekly basis, a chart is filled out with categories carefully

delineating the type of payment: cash, checks, American Express, or Visa/Mastercard.

Sharon’s employer, after depositing the weekly total, brings this chart back with his own

written-in total of the actual amount deposited.

After looking over some of these weekly deposit chats, Sharon noticed that $500 cash was

missing from each deposit. After a more thorough inspection of monthly tax documents that

Jim Thompson has filled out, Sharon noticed that the reported monthly gross revenue was

$2,000 less than what had been actually counted.

The employer is the only person handling the money after it has been counted. He is also the

only one to deposit the money. When Sharon asked Mr. Thompson about revenue not being

reported for tax purposes, he assured her that every dollar of income was reported on the tax

forms. Furthermore, Jim asserted, since Sharon wasn’t the person who signed the forms,

she shouldn’t be concerned.

1) What is the situation and the accounting issue(s)

2) Describe at least one ethical principle from the AICPA Code of Conduct and at least one accounting code rule (e.g.

independence, integrity, confidentiality, acts discreditable, etc.) that should be considered when analyzing the case?

3) What are your recommendations for the people involved?

explain the follow up steps you would want to take to satisfactorily
clear each of the five comments from customers below. Think about and document whether the comment
indicates a concern or not, what fraudulent activity could be happening or what errors could have occurred,
what additional follow-up information would you want to seek out to gain comfort on the situation, etc.
You have been assigned to the first audit of the Chicago Company for the year ending March 31, 2017.
Accounts receivable were confirmed on December 31, 2016, and at that date the receivables consisted of
approximately 200 accounts with balances totaling $956,750. Seventy-five of these accounts with balances
totaling $650,725 were selected for confirmation. All but 20 of the confirmation requests have been returned;
36 were signed without comments, 14 had minor differences that have been cleared satisfactorily, and 5
confirmations had the following comments:
1. We are sorry, but we can’t answer your request for confirmation of our account as the system we are using
does not provide us the necessary information.

2. The balance of $1,050 was paid on December 23, 2016

3. We never received these goods.

4. The $10,000, representing a deposit under a lease, will be applied against the rent due to us during 2018,
the last year of the lease.

5. We do not owe you anything at December 31, 2016, as the goods, represented by your invoice dated
December 30, 2016, number 25050, in the amount of $11,550 were received on January 5, 2017, on FOB
destination terms.

6. The balance of $7,750 was paid on January 5, 2017.

7. Amount okay, as the goods have been shipped to us on consignment, we will remit the payment upon
selling the goods.

8. Your credit memo dated December 5, 2016, in the amount of $440 cancels the balance above.

9. We are contesting the propriety of this $12,525 charge. We think the charge is excessive.

10. An advance payment of $2,500 made by us in November 2016 should cover the two invoices totaling
$1,350 shown on the statement attached.

REQUIRED: With your group members, explain the follow up steps you would want to take to satisfactorily clear each of the five comments from customers below. Think about and document whether the comment indicates a concern or not, what fraudulent activity could be happening or what errors could have occurred, what additional follow-up information would you want to seek out to gain comfort on the situation, etc.

You have been assigned to the first audit of the Chicago Company for the year ending March 31, 2017. Accounts receivable were confirmed on December 31, 2016, and at that date the receivables consisted of approximately 200 accounts with balances totaling $956,750. Seventy-five of these accounts with balances totaling $650,725 were selected for confirmation. All but 20 of the confirmation requests have been returned; 36 were signed without comments, 14 had minor differences that have been cleared satisfactorily, and 5 confirmations had the following comments:

1. We are sorry, but we can’t answer your request for confirmation of our account as the system we are using does not provide us the necessary information.

2. The balance of $1,050 was paid on December 23, 2016

3. We never received these goods.

4. The $10,000, representing a deposit under a lease, will be applied against the rent due to us during 2018, the last year of the lease.

5. We do not owe you anything at December 31, 2016, as the goods, represented by your invoice dated December 30, 2016, number 25050, in the amount of $11,550 were received on January 5, 2017, on FOB destination terms.

6. The balance of $7,750 was paid on January 5, 2017.

7. Amount okay, as the goods have been shipped to us on consignment, we will remit the payment upon selling the goods.

8. Your credit memo dated December 5, 2016, in the amount of $440 cancels the balance above.

9. We are contesting the propriety of this $12,525 charge. We think the charge is excessive.

10. An advance payment of $2,500 made by us in November 2016 should cover the two invoices totaling $1,350 shown on the statement attached.

Artie Siegel, an MBA student, has been having problems balancing his checkbook. His monthly income is derived from a graduate research assistantship; however, he also makes extra money in most months by tutoring undergraduates in their quantitative analysis course. His historical chances of various income levels are shown in the following table: Monthly Income* ($) Probability 350 0.40 400 0.20 450 0.30 500 0.10 *Assume that this income is received at the beginning of each month. Siegel’s expenditures also vary from month to month, and he estimates that they will follow this distribution: Monthly Expenses ($) Probability 300 0.10 400 0.45 500 0.30 600 0.15 He begins his final year with $600 in his checking account. Simulate the entire year (12 months) on the next page and discuss Siegel’s financial picture, i.e., will he be able to keep his head above water--(out of debt)? What is his expected average profit for the 12 months? Use the random numbers below. Random numbers for Income and Expenses Income .85 .54 .73 .95 .9 .19 .81 .2 .76 .55 .57 .01 Expenses .99 .44 .01 .80 .95 .72 .75 .16 .32 .57 .31 .32

Please complete in excel and attached excel screenshot! Much appreciated!

2. Artie Siegel, an MBA student, has been having problems balancing his checkbook. His monthly income is derived from a graduate research assistantship; however, he also makes extra money in most months by tutoring undergraduates in their quantitative analysis course. His historical chances of various income levels are shown in the following table:

*Assume that this income is received at the beginning of each month.

Siegel’s expenditures also vary from month to month, and he estimates that they will follow this distribution:

He begins his final year with $600 in his checking account. Simulate the entire year (12 months) on the next page and discuss Siegel’s financial picture, i.e., will he be able to keep his head above water--(out of debt)? What is his expected average profit for the 12 months? Use the random numbers below.

Random numbers for Income and Expenses

Which of the following best describes the generic competitive strategy that company management intends to use for AC Cameras during the next three years? What evidence is there to indicate that pursuit of this strategy is currently on track?

1.The company will employ a global low-cost leadership strategy and pursue a competitive advantage keyed to having lower costs and selling both regular and special contract cameras at low prices relative to rivals.

2.The company will employ a global differentiation strategy that sets our AC Cameras apart from rival brands based on such attributes as a higher P/Q rating, more models, more advertising, longer warranties, retailer support, sales promotions, or website displays.

3.The company will employ a global best-cost or "more value for the money" strategy (e.g., providing 5-star AC Cameras at lower prices than other 5-star brands) where the competitive advantage is an ability to incorporate appealing attributes (higher P/Q, more models, longer warranties) at a lower cost than rivals.

4.The company will employ a focus strategy for AC Cameras aimed at:

5.The company will pursue a combination of the above strategies because our approach is not well-matched with any of the generic competitive strategies.

6.Our company has no consistent competitive strategy — we prefer to "re-invent" our strategy each year to pursue whatever opportunities look most promising. Our plan over the next three years is to continue our "opportunistic" approach to strategy and not commit the company to any long-term strategy or any specific market focus. We like this strategy-for-a-year approach and believe it works well for us.

Break-Even Sales Under Present and Proposed Conditions

Darby Company, operating at full capacity, sold 121,500 units at a price of $117 per unit during the current year. Its income statement for the current year is as follows:

The division of costs between fixed and variable is as follows:

Management is considering a plant expansion program that will permit an increase of $1,287,000 in yearly sales. The expansion will increase fixed costs by $128,700, but will not affect the relationship between sales and variable costs.

5. Determine the amount of sales (units) that would be necessary under the proposed program to realize the $175,500 of income from operations that was earned in the current year. Enter the final answers rounded to the nearest whole number.
units

6. Determine the maximum income from operations possible with the expanded plant. Enter the final answer rounded to the nearest dollar.
$

7. If the proposal is accepted and sales remain at the current level, what will the income or loss from operations be for the following year? Enter the final answer rounded to the nearest dollar.
$ Income

Dana Bowen Company is completing its first year of operations on April 30. Reconstruct the entries for the year ended April 30 from the T accounts below. Record them, assigning labels to each transaction, as follows:

1a. Journal Entries

1b. Adjusting Journal Entries

2a. Balance and prepare the Income Statement from the T-Accounts.

2b. Balance and prepare the Statement of Owner's Equity from the T-Accounts.

2c. Balance and prepare the Balance Sheet from the T-Accounts.

3. Prepare the closing entries. If an amount box does not require an entry, leave it blank.

4. Prepare the Post-Closing Trial Balance. If an amount box does not require an entry, leave it blank.