Featherbed Surf & Leisure Holidays Ltd. is a resort company based on Vancouver Island. Its operations include boating, surfing, diving, and other leisure activities; a backpackers’ hostel; a family hotel; and a five-star resort. Justin and Sarah Morris own the majority of the shares in the Morris Group, which controls Featherbed. Justin is the chair of the board of directors of both Featherbed and the Morris Group, and Sarah is a director of both companies as well as the CFO of Featherbed.

In February 2020, Justin Morris approached your audit firm, KFP Partners, to carry out the Featherbed audit for the year ended June 30, 2020. Featherbed has not been audited before but this year the audit has been requested by the company’s bank and a new private equity investor group that has just acquired a 20-percent share of Featherbed.

Featherbed employs 30 full-time staff. These workers are employed in administration, accounting, catering, cleaning, and hotel/restaurant duties. During peak periods, Featherbed also uses part-time and casual workers. These workers tend to be travellers visiting the West Coast who are looking for short- term employment to help pay their traveling expenses.

Justin and Sarah have a fairly laid-back management style. They trust their workers to work hard for the company and they reward them well. The accounting staff, in particular, are very loyal to the company. Justin tells you that some accounting staff enjoy their jobs so much they have never taken any holidays, and hardly any workers ever take sick leave.

There are three people currently employed as the accountants, the most senior of whom is Peter Pinn. Peter heads the accounting department and reports directly to Sarah. He is in his fifties and plans to retire in two or three years. Peter prides himself on his ability to delegate most of his work to his two accounting staff, Kristen and Julie. He claims he has to do this because he is very busy developing a policy and procedures manual for the accounting department. This delegated work includes opening mail, processing payments and receipts, banking funds received, performing reconciliations, posting journals, and performing the payroll function. Julie is a recently graduated Chartered Professional Accountant. Kristen works part-time—coming into the office on Mondays, Wednesdays, and Fridays. Kristen is responsible for posting all journal entries into the accounting system and the payroll function. Julie does the balance of the work, but they often help each other out in busy periods.

Required

Using the factors in the above scenario, assess audit risk.

Roulette is one of the most common games played in gambling casinos in Las Vegas and elsewhere.

An American roulette wheel has slots marked with the numbers from 1 to 36 as well as 0 and 00 (the latter is called "double zero"). Half of the slots marked 1 to 36 are colored red and the other half are black. (The 0 and 00 are colored green.) With each spin of the wheel, the ball lands in one of these 38 slots.

One of the many possible roulette bets is to bet on the color of the slot that the ball will land on (red or black). If a player bets on red, he wins if the outcome is one of the 18 red outcomes, and he loses if the outcome is one of the 18 black outcomes or is 0 or 00. So, when betting on red, there are 18 outcomes in which the player wins and 20 outcomes in which the player loses. Therefore, when betting on red, the probability of winning is 18/38 and the probability of losing is 20/38.

When betting on red, the payout for a win is "1 to 1". This means that the player gets their original bet back PLUS and additional amount equaling their bet. In other words, they double their money. (Note: If the player loses they lose whatever amount of money they bet.)

Scenario 1: Mike goes to the casino with $400. His plan is to bet $100 on red 9 consecutive times or until he either has increased his total to $500 or has lost all of his money. What is the probability he will go bankrupt (i.e. end up with $0)? (Give your answer correct to four decimal places.)


(Hint: Set this problem up as an absorbing Markov Chain with 6 states where the states keep track of his current amount of money. The amount of money he has will always be $0, $100, $200, $300, $400, or $500. The states where he has $0 or $500 are absorbing states since he quits playing whenever one of these states is reached.


Scenario 2: Mike goes to the casino with $400 and will still be betting on red. As in Scenario 1, he will bet $100 each time he places a bet. However, instead of limiting himself to a maximum of 9 bets he decides to play indefinitely until he has reached $500 or goes bankrupt. If he uses this betting method, what is the probability he will eventually go bankrupt? (Give your answer correct to four decimal places.)

Lean Principles

Soft Glow, Inc. manufactures light bulbs. Its purchasing policy requires that the purchasing agents place each quarter's purchasing requirements out for bid. This is because the Purchasing Department is evaluated solely by its ability to get the lowest purchase prices. The lowest bidder receives the order for the next quarter (90 working days).

To make its bulb products, Soft Glow requires 45,000 pounds of glass per quarter. Soft Glow received two glass bids for the third quarter, as follows:

Mid-States Glass Company: $28.00 per pound of glass. Delivery schedule: 45,000 (500 lbs. x 90 days) pounds at the beginning of July to last for 3 months.

Cleveland Glass Company: $28.20 per pound of glass. Delivery schedule: 500 pounds per working day (90 days in the quarter).

Soft Glow accepted Mid-States Glass Company's bid because it was the low-cost bid.

Required:

1. All of the following are ways in which Soft Glow could develop long-term partnerships with its suppliers except:

a. share research and development efforts.

b. ignore internal costs caused by delivery delays while contracting on the best price point basis.

c. share production schedules.

d. establish electronic data interchange.

e. establish supplier raw materials logistical support.

b

2. All of the following statements are true regarding the hidden costs beyond the price of Mid-States Glass Company's bid except:

a. They are easy to determine, yet often overlooked.

b. They ignore additional internal costs of the higher inventory imposed by Mid-States Glasses' delivery schedule.

c. The hidden costs are incurred by other parts of the organization, not purchasing.

d. The hidden costs include costs for additional space and handling.

e. The hidden costs include costs of obsolescence and financing.

a

3. Considering just inventory financing costs, what is tThe additional cost per pound of Mid-States Glass Company's bid if the annual cost of money is 10%? Round to the nearest cent.
$ per lb.

This question was previously answered $0.7 per pound which is incorrect so please do not respond with that answer. I hope not to waste even more questions asked. Thanks.

Q5.3.5

(Taxable income from Australian and foreign sources)

Yvette Jankic, a resident single taxpayer aged 31, worked in New Zealand from 1 July 2017 until 15 November 2017 and has provided the following information for the 2017/18 tax year:

Note – Yvette does not have private health insurance.

Required:

1. Calculate Yvette’s taxable income for the 2017/18 tax year.

part A answer

Interest   (510 + TFN tax withheld $490) = 1000

Interest - United Kingdom (2700 + net of withholding tax $300) = 3000

Dividend – Georgia (3900 + net of withholding tax $2,100) = 6000

Gross Salary – Australia 21,000

Gross Salary - New Zealand (not exempt) (12,650 + tax withheld $2,540) = 15,190

Bonus 2,000

Gross taxable Income = 48,190

Less: Investment Deductions 250

Work-related Deductions 300

Total deduction = 550

TAXABLE INCOME = 47,640

You have to use the same formatting for part a to do part b

1. Calculate Yvette’s net tax payable or refundable for the 2017/18 tax year.

My previous question was not answered

Problem 14-1 Cumulative Abnormal Returns

Manchester United, it's a public company believe it or not. Stock symbol is MANU.

Questions:

1. MANU has many companies, so it needs to do consolidated accounting, what is the main risk with consolidated accounting?
2. What is the largest asset on balance sheet? What is the main risk with this asset?
3. How has the pandemic effected this company?
4. After reading the annual report, what are the main risks of the company?