Ms. Sasha, the founder and chairman of Yummy Chocolates, a company that specializes in making
chocolates, by using local ingredients eyes future expansion plan for their SME venture. Yummy
Chocolates has been considered as a successful SME model for youth in Canada. Sasha, a school
dropout started this venture from her home in Alberta and was one of the first chocolatiers in the
region. Sasha’s company buys products from local farmers in an attempt to support local workers
and contribute to the growth in the local economy. Sasha’s business model inspired Ms. Amna, an
Omani national who had visited Canada and had learned about her small venture. Amna and Sasha
had been in frequent contact. Amna wanted to start a company of her own and Sasha was ambitious
on expansion. Both these individuals decided to help each other’s cause and decided to start a small
chocolate manufacturing company in Oman. Sasha cannot afford to leave Canada and hence
decides to transfer the know-how and capital to Amna. Amna will be responsible for carrying out
the Functional activities of the firm
You are an independent advisor based in Muscat and are requested to explain the
procedure of forming a partnership firm. Also explain in detail the different methods by
which the partners could maintain the capital in the firm.

The founder of X company , a manufacturer of fine fishing supplies, has provided you the following information from his company's accounting records. From the information presented, prepare a properly formatted, multi-step Income Statement (be sure to show intermediate profit lines - Gross Profit, EBITDA, NOI, EBIT, EBT and NI - as necessary). Per share presentation of income data is not being requested. Balance sheet account information is as of the close of business for December 31, 2017 unless otherwise indicated. Income statement information is applicable for the entire calendar year 2017 unless otherwise indicated. The company's income tax rate is 35%. The company did not purchase or dispose of any depreciable long-term assets. (Watch out - you have more information than is needed to complete this problem).

Bright Ltd acquired all of the issued shares in Star Ltd a number of years ago. On 1 June 2019, Bright Ltd transferred inventory to Star Ltd at a profit, where all of these inventories remained with Star Ltd at 1 July 2019, and were all on-sold to external parties as at 30 June 2020. In your own words, briefly explain the necessary adjustments required in preparing the consolidated financial statements for Bright Ltd’s group for the year ended 30 June 2020.

ilovefinance LLC makes AI blankets. Interested in finding out the valuation for her company, the CEO zeros down on a couple of comparable firms. The Montauk Coverlet company and the Provincetown Bed Monsters. These companies are currently trading at PE multiples of 8.56 and 9.48 respectively. Using the average PE multiple of the comparable firms, calculate the price that the CEO can expect per share of ilovefinance LLC in the coming year. You have the following information:

a) The company will assume a debt of $500,000 for setting up a manufacturing unit in Mexico.

b) The CEO expects that she can sell 5,000 blankets at a price point of $150 in the coming year.

c) EBITDA is 30% of gross sales

d) Depreciation is $20,000 per year

d) Tax rate is 21 %

e) Interest on debt is 10% per year (Interest Amount = Debt * Interest Rate)

c) For unforeseen issues the CEO would like to keep $100,000 reserved in cash.

d) To begin with, the CEO will issue only 100,000 shares to be distributed among friends and family,

1. MINI CASE ANALYSIS on THE TIME VALUE OF MONEY     

Quilici Family: Greg and Debra Quilici own a four bedroom home in an affluent neighborhood just north of San Francisco, California. Greg is a partner in the family owned commercial painting business. The family is Composed of Greg (father), Debra (mother), and 5 year old son Brady.Greg is a partner in the family owned commercial painting business.Debra is a housewife

After visiting Lawrence Krause, a family financial planner, Greg and Debra became concerned of their spending, and that they are not putting enough money for their son’s future education needs as well as their own retirementThey have a Koegh plan (retirement plan for self-employed individuals and small businesses in the US), but they did not account for Brady’s education.

Greg earns $95,000 per year, Greg is an alumnus of Stanford University (Tuition = $40,000 per year). Debra graduated from University of North Carolina at Chapel Hill (Tuition = $4,500 per year). The couple wants to send Brady to either school when he turns 18, with a slight preference towards Stanford. The problem, however, is that with the rate at which tuition is increasing the Quilicis are not sure they can raise enough money.

They expect the following things to happen.

• Tuition fees is expected to increase at an annual rate of 6%
• Living expenses are estimated to be $7000 per year for both schools (expecting to grow 3.5% per year)
• The couple can deposit their money into a growth oriented mutual fund at Neuberger and Berman Management, Inc. (historically earning 12% per annum)

The couple wishes to have a pre-determined monthly amount automatically paid from their bank account. When Brady starts college they will slowly liquidate the account by making an annual payment to Brady to cover tuition and living expenses at the beginning of each year for the four years he will be in college.

From the Case above

1. Identify the variables for each university (Tution Fees, Living Expenses, Interest rate, No of years) (1 Mark for each variable = 4 Marks for Each University, Total for two universities = 8 Marks)

2. How much will the tuition and living expenses be per year when Brady is ready to attend Stanford University?

3. How much will the tuition and living expenses be per year when Brady is ready to attend University of North Carolina at Chapel Hill?

4. Once Brady starts college what will his total expenses (future) be in each of his four years for Stanford University?.

5. Once Brady starts college what will his total expenses (future) be in each of his four years for University of North Carolina at Chapel Hill?.

6. Based on your analysis which university shoulf Greg and Deba choose for their son?

This comes from the Columbia University website: “As an equal opportunity and affirmative action employer, the University does not discriminate against or permit harassment of employees or applicants for employment on the basis of race, color, sex, gender (including gender identity and expression), pregnancy, religion, creed, national origin, age, alienage and citizenship, status as a perceived or actual victim of domestic violence, disability, marital status, sexual orientation, military status, partnership status, genetic predisposition or carrier status, arrest record, or any other legally protected status.”

1. Which characteristics are universal (we’re all afflicted and therefore vulnerable to discrimination) and which ones are individual (some of us have the trait and some don’t)? In your opinion is one group more vulnerable to discrimination? Why?
   
2. If you wanted to stop discrimination at Columbia University, could you rank the protected characteristics in terms of their importance? Which forms of discrimination would be most important to combat and which wouldn’t matter so much? Or are they all equally important? Justify your answer.
   
3. Are there any characteristics you would add to the list? In terms of doing ethics, is there any problem with a list this long?

Zynga, located in San Francisco, California, had become a dominant player in the online gaming field, almost entirely through the use of social media platforms. The company name was established by the founder and original CEO, Mark Pincus, to pay tribute to his late beloved pet bulldog, named Zinga. Although this seems whimsical, Zynga had quickly become a powerful company. To exemplify Zynga’s prominence, Facebook was reported to have earned roughly 12 percent of its 2011 revenue from the operations of Zynga’s virtual merchandise sales. On the basis of this success, Zynga had gone public in December of 2011.

Zynga had been a dominant force, but had lost market share in recent years due to the absence of a new and innovative product pipeline. Lack of new product-driven growth had led to uneven revenues, with significant losses – over $108 million in 2016. Even though Zynga had released some new mobile games, which accounted for 73 percent of the company’s revenue in 2015, this was not enough to reverse declines from the existing product lineup.

Zynga’s long term viability may be at risk because of questionable decision making. Many of Zynga’s competitors, and even some partners, had been displeased with the company’s actions and had shown it in the form of litigation. Agincourt, a plaintiff of a lawsuit brought against Zynga, was quoted as saying, “Zynga’s remarkable growth has not been driven by its own ingenuity. Rather it has been widely reported that Zynga’s business model is to copy creative ideas and game designs from other game developers and then use its market power to bulldoze the games’ originators.” Zynga had been accused of copyright infringement, breach of written contract, and, internally, had a reputation for a risk-averse company culture that failed to reward innovation and creativity. Regarding its users, complaint resolution consisted of email-only support, and there was concern that customer information was not being properly protected against unauthorized access.

To make matters worse, Zynga had had four CEO changes since 2013, with the most recent one, Frank Gibeau from Electronic Arts, installed in March of 2016, now expected to turn the company around. Although Zynga had once been a dominant force on Facebook, by 2016 it had failed to surface in the top 5 virtual-gaming rankings, with users increasingly choosing to play King Company’s Candy Crush Saga and others.

As Zynga looks to the future, where will its next big hit come from? With all the criticism aimed at Zynga’s past behavior, will the company continue on the path it has become notorious for and reap further accusations of imitating its competitors’ games and putting customers potentially at risk? Or will Zynga change its approach, gain a reputation for intellectual integrity and begin creating true one-of-a-kind games—showing its capa­bilities as a leader in the industry rather than a follower?

1. Does the organization have positive personal and professional relationships among employees and alliance partners?

Scenario

XYZ Corporation owns a landfill that was acquired in the purchase of a small waste management company 30 years ago. During routine testing of the soil surrounding the landfill a technician of the company discovered that the soil on the west side of the landfill showed evidence of heavy metals which may be carcinogenic (cause cancer) to humans and animals. If the source of the contamination is not located and contained, the chemicals might enter the public water supply by draining into the local reservoir. The cost of cleaning up the chemical contamination could be very large. The Vice President of the company in charge of the landfill has been given the test results. When he informed the CEO of the situation he was told to ignore the results and continue operating the landfill. The Vice President is trying to determine his course of action.

Pick one of the Theories of Ethics and answer the following questions:

1. Who are the potential stakeholders who may or may not be affected by the above situation?

2. What actions if any should the Vice president take or not take?

3. Explain your answers.

4. Would your answers change if you applied one of the other theories of ethics?

After several months of negotiations, the CEO of BIG Pty Ltd made the long-awaited announcement to board members that BIG Pty Ltd would be buying Melbourne based company, YAY Pty Ltd for $25m. The following persons were present at the meeting: Helen and Liam (Company Directors) and Tammy (Receptionist taking meeting minutes). News of the take-over would not be released to the public until the following week.

Question:
Discuss whether Tammy would be breaching any duties if, immediately after leaving the boardroom, she phoned her husband and told him to invest $100,000 in YAY Pty Ltd.

Suggested Answer Structure

Issue: What Tammy would be breaching any….

Rule: According to CA s 182 and 183….

Analyze: Here the facts tell us….

Conclusion: Clear that Tammy would be breaching Duty....

After several months of negotiations, the CEO of BIG Pty Ltd made the long-awaited announcement to board members that BIG Pty Ltd would be buying Melbourne based company, YAY Pty Ltd for $25m. The following persons were present at the meeting: Helen and Liam (Company Directors) and Tammy (Receptionist taking meeting minutes). News of the take-over would not be released to the public until the following week.

Discuss whether Tammy would be breaching any duties if, immediately after leaving the boardroom, she phoned her husband and told him to invest $100,000 in YAY Pty Ltd.

answer structure

Issue: What Tammy would be breaching any….
Rule: According to CA s 182 and 183…
Analyze: Here the facts tell us…
Conclusion: Clear that Tammy would be breaching Duty __

Australia