Kabwe Medical Center Limited is a small health care provider owned by an Insurance Company. It employs five salaried physicians 5(doctors), five nurses, three support staff, and three clerical workers. The clerical workers perform activities such as reception, correspondence, cash receipts, billing, and appointment scheduling. Most patients pay for services rendered by cash or cheque on the day of their visit. Sometimes, however, the physician approves credit and files a memo with one of the clerks to set up the receivable using data the physician generates.The front office clerks receive cash and cheques directly from patients and give each patient a pre-numbered receipt. The clerks take turns opening the mail. All cheques are stamped “for deposit only “by one of the clerks. Each day, just before lunch, one of the clerks prepares a list of all cash and cheques to be deposited in Kabwe Medical Center’s bank account. The office is closed from 13:00until 14:00 hrs for lunch. The office manager takes the daily deposit to the bank during the lunch hours. Updates to patient’s accounts are done during the same period.The clerks are responsible for preparing and mailing monthly statements to patients with unpaid balances. Write-offs of uncollectible accounts are done only after the physician whoperformed the respective services approves it indicate to the office manager verbally. The credit memo is issued to effect the write- off.The manager is responsible for issuance of write-off memos, scheduling of appointments for the doctors, bank deposits, reconciling of bank statements, and general correspondence duties.An externally hired local accountant comes at the end of the month to posts summaries prepared by the clerks to the general ledger, prepares income statements, and files the appropriate payroll forms and tax returns.
Required:
a. Identify at least three control weaknesses at Kabwe Medical Center. Describe the potential
threat and exposure associated with each weakness, and recommend how to best correct
them.
b. Draw a data flow diagram or a work flow chart to depict Kabwe Medical Center’s existing
revenue cycle.
c. Draw a data flow diagram revised to incorporate your solutions to requirement “a” above

Pack Rite manufactures back packs for schools. The business uses a perpetual inventory system
and has a highly labour intensive production process, so it applies manufacturing overhead based
on direct labour hours. Any overhead variance is closed out to Cost of Goods Sold.
Pack Rite’s pre-determined overhead application rate for 2017 was computed from the following
data:
Total estimated factory overheads
Total estimated direct labour hours
$4,200,000
35,000
During the first month of 2017, the business recorded the following transactions.
i) Purchased materials on account, $500,000
ii) Incurred manufacturing wages of $1,065,000
iii) Issued direct materials and used direct labour in manufacturing
Direct Materials Direct Labour Direct Labour Hours
Job 401 $100,000 $220,000 1,200
Job 402 81,000 190,000 1,000
Job 403 90,000 205,000 1,100
Job 404 150,000 290,250 1,800
iv) Issued indirect materials to production, $80,000
v) Charged indirect manufacturing wages to production, $159,750
vi) Depreciation expense on factory equipment used on the different jobs, $300,000
vii) Other overhead costs incurred on jobs 401 to 404 amounted to $112,750
viii) Applied factory overhead to the various jobs using the pre-determined factory overhead rate.
ix) Finished Jobs 401 – 403 and transferred to the finished goods inventory account
x) Shipped Job 401 and 402 and billed customers at a margin of 25% on cost.
Required:
a) Compute Pack Rite’s predetermined manufacturing overhead rate.
b) Calculate the total manufacturing cost for each job.
c) Using the total figures, record the transactions in the general journal.
d) Post the manufacturing overhead transactions to the Manufacturing Overhead T-account and
state the balance on the account before closing the account. Show the journal entries necessary
to dispose of this variance.
e) What is the balance in the Cost of Goods Sold account after the adjustment?
f) Calculate the gross profit earned by Pack Rite for the month.
g) Open T-accounts for Work in Process Inventory and Finished Goods Inventory. Post the
appropriate entries to these accounts & determine the ending account balances. Assume that
the beginning balances were zero.

M6_IND3. Steve Jobs is a computer technician in an investment company. He responds to a variety of complaints from investment advisors regarding their computers performance. He receives an average of one computer per hour to repair. It takes him an average of 40 minutes to repair any of these computers. Steve believes that adding a second repair technician would significantly improve his department’s efficiency. He has a friend, Steve Wozniak, who is looking for a job. He estimates that adding an assistant, but still keeping the department running as a single-server system, would double allow computer to be repaired in half the time, an average of 20 minutes to repair these computers. The investment advisors earn $40 for the company, on average, while the computer technicians earn $16 per hour. An investment advisor who does not have access to his computer is unable to generate revenue for the company. a) Consider the performance of the office before the new technician is added. On average, how many computers (to the nearest 0.01 computers) are in the system given the arrival and service rates? b) Consider the performance of the office before the new technician is added. On average, how many hours (to the nearest 0.01 hour) does each computer spend in the system given the arrival and service rates? c) Consider the performance of the office before the new technician is added. Based on the average number of computers in the system, what is the total system cost (technicians cost and waiting cost) per hour (to the nearest $/hour)? d) Consider the performance of the office after the new technician is added. On average, how many computers (to the nearest 0.01 computers) are in the system given the arrival and service rates? e) Consider the performance of the office after the new technician is added. On average, how many hours (to the nearest 0.01 hour) does each computer spend in the system given the arrival and service rates? f) Consider the performance of the office after the new technician is added. Based on the average number of computers in the system, what is the total system cost (technicians cost and waiting cost) per hour (to the nearest 0.01 $/hour)? g) Based on your cost analysis - is it worth it to add another technician?

1-A shielded vial of I131 gives off a reading of 30 mR/hr at 1 meter. If the vial is placed in a drawer lined with 5mm lead, what will the exposure rate be at 1-meter?

(The HVL of lead for I131= 0.21mm)

2-A survey meter reading taken outside the shield surrounding a radionuclide storage area gives a reading of 12.8 mR/hr. Only 99Tcm is being stored. The HVL for lead is 0.27mm. How much lead must be added to bring the reading down to a background reading of 0.02mR/hr?

3-A shielded dose of Tl201 registers as 25mR/hr on an ionization survey meter held at 4 inches from the surface. If the HVL for lead is 0.2mm, what will be the reading at 4 inches after the shielded dose is placed in a lead pig constructed of 1.35 mm thick lead?

4-An unshielded dose of 99mTc MAA gives off a reading of 35mR/hr. You put this dose in a syringe shield which has a thickness of 1.8mm. What would be the exposure when you use this shield while injecting the dose? The HVL of Tc99m =0.27mm.

5-The HVL of lead is 0.27 mm for Tc99m. A dose generates 5300 mR/hr before being shielded.

a-What will be the exposure rate after the dose is placed in a shield made with 0.90 mm of lead?

A thicker shield is used for the same dose above (5300 mR/hr). The shield is made with 3.8 mm of lead.

b-What will be the exposure rate after using this shielding?

6-Someone spills a dose of 99mTc-MIBI on the treadmill and after removing all of the “removable contamination” there is still an exposure of 45mR/hr coming from the treadmill. You need to cover this so that the stress lab can still be used, so this exposure NEEDS to be 0.3mR/hr. How much lead will you need to accomplish this?

7-A radioactive source is giving off 1.5 mr/hr at 1 meter after shielding. Three half value layers are used for shielding. What was the original reading of this source before shielding?

8-A radioactive source is measuring 2 mr/hr at a distance of 1 meter. This source has been shielded with 4 half value layers of lead. What would the reading of the source be if you removed all of the lead?

a-1 Current Value: 152,223,077

a-2 Price per share: 77.66

b-1: Value after recapitalization: 160,480,077

b-2: Price per share: 81.88

c-1: Shares repurchased: ?

c-2: Price per share: ?

d. Value of the equity: ?

*Need help with c-1, c-2, and d. Thanks!

Newkirk, Inc., is an unlevered firm with expected annual earnings before taxes of $22.4 million in perpetuity. The current required return on the firm’s equity is 20 percent, and the firm distributes all of its earnings as dividends at the end of each year. The company has 1.44 million shares of common stock outstanding and is subject to a corporate tax rate of 35 percent. The firm is planning a recapitalization under which it will issue $31.4 million of perpetual 10.4 percent debt and use the proceeds to buy back shares. a-1. Calculate the value of the company before the recapitalization plan is announced. (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Current value $ a-2. What is the price per share? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price per share $ b-1. Use the APV method to calculate the company value after the recapitalization plan is announced. (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Value after recapitalization $ b-2. What is the price per share after the recapitalization is announced? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price per share $ c-1. How many shares will be repurchased? (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Shares repurchased c-2. What is the price per share after the recapitalization and repurchase? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Price per share $ d. Use the flow to equity method to calculate the value of the company’s equity after the recapitalization. (Enter your answer in dollars, not millions of dollars, e.g., 1,234,567. Do not round intermediate calculations and round your answer to the nearest whole number, e.g., 32.) Value of the equity $

8. Replacement analysis

Green Moose Industries is a company that produces iBooks, among several other products. Suppose that Green Moose Industries considers replacing its old machine used to make iBooks with a more efficient one, which would cost $1,700 and require $380 annually in operating costs except depreciation. After-tax salvage value of the old machine is $700, while its annual operating costs except depreciation are $1,000. Assume that, regardless of the age of the equipment, Green Moose Industries’s sales revenues are fixed at $4,500 and depreciation on the old machine is $700. Assume also that the tax rate is 40% and the project’s risk-adjusted cost of capital, r, is the same as weighted average cost of capital (WACC) and equals 10%.

Based on the data, net cash flows (NCFs) before replacement are   , and they are constant over four years.

Although Green Moose Industries’s NCFs before replacement are the same over the 4-year period, its NCFs after replacement vary annually. The following table shows depreciation rates over four years.

Complete the following table and calculate incremental cash flows in each year. Hint: Round your answers to the nearest dollar and remember to enter a minus sign if the calculated value is negative.

Next evaluate the incremental cash flows by calculating the net present value (NPV), the internal rate of return (IRR), and the modified IRR (MIRR). Assume again that the cost of financing the new project is the same as the WACC and equals 10%. Hint: Use a spreadsheet program’s functions or use a financial calculator for this task.

Based on the evaluation, replacing the old equipment appears to be a     decision because     .