Spring Sports a startup company with SaaS platform for organizations to manage memberships and events and get paid for both. Hive beat helps the customers and local cycling club, student organization, yoga club, high school, non-profit or any other type of organization set memberships on auto-pilot (like local fitness center) and sell tickets for open or members-only events.

Prepare a report mentioning the different objectives for the new startup company Spring Sports  

1. Your client is a multinational corporation and is planning to manufacture certain products in a low tax international subsidiary that is 100% owned. The subsidiary would manufacture and sell the products to the US parent, and the parent would sell to unrelated customers.

a. Summarize the functions and risks that the company should consider in developing the transfer pricing documentation for this transaction.

b. What financial reporting and tax return matters should the company consider?

c. What information should you request from the client?

DO THE RESEARCH

Company StarBuck

2.1 - For Starbuck Company write one corporate aim and one objective within the limitations of the department (customers, time, ethical and legal requirements)

2.2 – Provide details on plans to achieve the objective highlighting the possible risks and contingency plans

2.3 – Provide details on which systems can be implemented to achieve the objectives on time and to budget

2.4 - Provide details on how the activities will be carried out by providing a work based structure, Gantt chart and network mapping

1. Let’s imagine you are the customer portfolio manager of a wireless phone company. How should you be evaluated at the end of the quarter? Straight sales form your customer? Net sales (Sales minus cost to serve)? Customer satisfaction? Would it make more sense for you to be evaluated on a combination of how much your company made from your customers this quarter and also- as of this quarter- what the two-year projected value of your customer base is? Five project value? Why?

Problem 5-27 (LO 5-1, 5-2, 5-3, 5-4, 5-5, 5-7)

Pitino acquired 90 percent of Brey's outstanding shares on January 1, 2016, in exchange for $513,000 in cash. The subsidiary's stockholders' equity accounts totaled $497,000 and the noncontrolling interest had a fair value of $57,000 on that day. However, a building (with a ten-year remaining life) in Brey's accounting records was undervalued by $51,000. Pitino assigned the rest of the excess fair value over book value to Brey's patented technology (five-year remaining life).

Brey reported net income from its own operations of $83,000 in 2016 and $99,000 in 2017. Brey declared dividends of $28,500 in 2016 and $32,500 in 2017.

At December 31, 2018, Pitino owes Brey $35,000 for inventory acquired during the period.

The following separate account balances are for these two companies for December 31, 2018, and the year then ended.

Note: Parentheses indicate a credit balance.

What was the annual amortization resulting from the acquisition-date fair-value allocations?

Were the intra-entity transfers upstream or downstream?

What intra-entity gross profit in inventory existed as of January 1, 2018?

What intra-entity gross profit in inventory existed as of December 31, 2018?

What amounts make up the $105,255 Equity Earnings of Brey account balance for 2018?

What is the net income attributable to the noncontrolling interest for 2018?

What amounts make up the $645,300 Investment in Brey account balance as of December 31, 2018?

Prepare the 2018 worksheet entry to eliminate the subsidiary’s beginning owners’ equity balances.

Without preparing a worksheet or consolidation entries, determine the consolidation balances for these two companies.

Cohension Case- The Broadway Café. Network, Telecommunication & Wireless Computing:

Telecommunication systems enable the transmission of data over public or private networks. A network is a communications, data exchange, and resource sharing system created by linking two or more computers and establishing standards, or protocols, so that they can work together. Telecommunication systems and networks are traditionally complicated and historically inefficient. However, businesses can benefit from today’s modern network infrastructures that provide reliable global reach to employees and customers. Businesses around the world are moving to network infrastructure solutions that allow greater choice in how they go to market—solutions with global reach. These alternatives include wireless, voice-over-internet protocol (VoIP), and radio-frequency identification (RFID).

Personal sensing devices are becoming more commonplace in everyday life. Unfortunately, radio transmissions from these devices can create unexpected privacy concerns if not carefully designed. We demonstrate these issues with a widely-available commercial product, the Nike+iPod Sport Kit, which contains a sensor that users put in one of their shoes and a receiver that users attach to their iPod Nanos. Students and researchers from the University of Washington found out that the transmitter in a sneaker can be read up to 60 feet away. Through the use of a prototype surveillance system, the researchers could track someone wearing Nike+iPod sensors, plot their location on a GoogleMaps-based website and email and text-messaging real-time surveillance data to anyone.

You are working on a plan to offer an in-store music service allowing customers to sip on a mocha latte while using headphones to listen to any of 250,000 songs located on portable kiosks in the cafe. Customers can order songs they like for a set price and you will burn them on a CD and deliver the custom-burned CD to their table. The promotion is called The Broadway Cafe Music To Go package. You believe that selling music can greatly increase the cafe’s revenue. Prices will be comparable to Apple's iTunes service: $6.99 for five songs, the minimum purchase. Albums will cost $12.95. To appeal to a younger set, you will eventually offer wireless downloads to laptops or portable players. At the very least, being able to listen or buy music at the cafe could enhance your core business and keep customers coming back. The time it takes a customer to order a latte, they could have any CD burned on demand.

questions to address:

Are there any current laws that you would need to be aware of when deploying wireless technology? If so, what types of liabilities for potential lawsuits should you be aware of to protect the cafe? If not, what types of laws should be created to help protect customers, employees, and the cafe?

Would you introduce this technology to the cafe? If so, are there any concerns with using this type of technology?

What other types of sensors could you deploy throughout the cafe to help operations? What concerns would you have regarding these sensors?

What two new products using network, telecommunication, or wireless tools could you create for new revenue streams?

Transaction Analysis and Financial Statements

Blue Jay Delivery Service is incorporated on January 2 and enters into the following transactions during its first month of operations:

Required:

1. Complete the below table to summarize the preceding transactions as they affect the accounting equation. Ignore depreciation expense and interest expense. If an account is unaffected by a transaction, enter "0". Use the minus sign to indicate decreases.

Feedback

After every transaction check that equation is still in balance. The equation equates to a weight balance that requires both sides to be balanced. An increase on one side either requires an equal decrease on same side or equal increase on other side. The same process for decreases. Increases/decreases are actions affecting an account balance. All transactions involve an exchange.
January 2: Record receipt of cash (increase to asset) in exchange for capital stock (increase to capital stock).
January 3: Record land and warehouse purchases (increase to assets) with payment of cash (decrease to asset).
January 4: Record receipt of cash (increase to asset) with notes payable (increase to liability).
January 6: Record purchase of delivery trucks (increase to asset) with payment of cash (decrease to asset).
January 31: Record service revenue earned (increase to retained earnings) with amount due on account receivable (increase to asset). Revenue is an indirect increase to Retained Earnings.
January 31: Record receipt of cash (increase to asset) with payment on account receivable (decrease to asset).
January 31: Record gas and oil expense (decrease to retained earnings) with amount due on account payable (increase to liability).

2. Prepare an income statement for the month of January.

Feedback

1) Revenue – expenses = net income.
2) Revenues represents all types of income earned.
3) Expenses represent all of the various costs necessary to generate revenue.

3. Prepare a classified balance sheet at January 31.

Feedback

You have been asked to direct Alberto Company in the proper accounting treatment for two of its new customer relations plans.

1.     Alberto has offered for sale a complete computer system for $1,400 under a 12-month warranty agreement that requires the company to replace all defective parts and to provide the repair labor at no cost to the customers. Alberto sold 720 systems during 2018 with sales being made evenly throughout the year (approximately 60 systems per month). The company estimates that about 25% of the customers will exercise the warranty and that the cost to the company will be about $370 per system.

2.     To stimulate sales of computer games, Alberto places a $10 coupon in each game. Five coupons are redeemable for a special game available only by redeeming the coupons. In 2018, Alberto purchased 40,000 special games for $15.00 each from its manufacturer. Alberto sold 440,000 games with coupons at an average price of $37.50 per game. Alberto estimates that 40% of the coupons issued will be redeemed. During 2018, 105,000 coupons are presented for redemption.

Required:

a)     What journal entries will Alberto need to make in 2018 relative to these plans?

b)     What amounts, if any, will be disclosed in Alberto’s financial statements and where will they appear?

Sales plays an important role in allowing a business to maintain long-term relationships with customers. Sales force structures can be critical in allowing companies to distribute their products to their customers effectively. Typical sales force structures include territorial, customer, or product structures. Each structure has pros and cons. In addition, a sales force should be routinely evaluated to determine how effective it is in reaching company sales goals. The choice of how to compensate a sales force, whether through incentives, bonuses, or even contests, may also impact how effective a sales force is.

Imagine that you are the sales manager for a company that makes cabinet hardware, which it has traditionally sold to large contractors who build homes and offices. Your company has built a solid reputation and grown its business regionally, and it is now looking to sell its products to end consumers through national retailers such as Home Depot and Lowes. Your challenge is to create a sales force structure that will meet the expanding role of sales in your company.

In an essay, explain how you would:

structure the sales force. Explain why the structure you recommend is better than alternative approaches. compensate the sales force.

Explain why the approach you recommend would provide the right incentives for the sales force.

After spending 500,000 to study the potential market for a new specialty chemical, hart industries is considering a new plant requiring an initial investment in new construction and equipment. The company will purchase 6,000,000 in new plant equipment. The IRS will allow hart to depreciate the plant equipment to a salvage value of zero on a straight-line basis over a six-year useful life. At the end of five years they expect to sell the plant and equipment for 2,000,000. The firm estimates revenue year1= 26M, Year2= 25M, Year3= 25M, Year4= 25M, Year5= 25M. Variable cost will be 70% of revenue. Fixed costs for the project are estimated to be 3,000,000 annually. Initial net working capital requirements for the project are expected to be 700,000. In addition, the company will increase required working capital 50,000 each year. at the end of five year project the net working capital will no longer be required. The company tax rate is 30%. What is harts cash flows from assets for the 5 years of the project? If your required return rate is 10%, what is the projects NPV and IRR? Should the company accept the project?