Following is the current balance sheet for a local partnership of doctors:

The following questions represent independent situations:

1. E contributes $105,000 in cash to the business to receive a 20 percent interest in the partnership. Goodwill is to be recorded. Profits and losses have previously been split according to the following percentages: A, 30 percent; B, 10 percent; C, 40 percent; and D, 20 percent. After E makes this investment, what are the individual capital balances?

2. E contributes $50,000 in cash to the business to receive a 20 percent interest in the partnership. Goodwill is to be recorded. The four original partners share all profits and losses equally. After E makes this investment, what are the individual capital balances?

3. E contributes $70,000 in cash to the business to receive a 20 percent interest in the partnership. No goodwill or other asset revaluation is to be recorded. Profits and losses have previously been split according to the following percentages: A, 10 percent; B, 30 percent; C, 20 percent; and D, 40 percent. After E makes this investment, what are the individual capital balances?

4. C retires from the partnership and, as per the original partnership agreement, is to receive cash equal to 112 percent of her final capital balance. No goodwill or other asset revaluation is to be recognized. All partners share profits and losses equally. After the withdrawal, what are the individual capital balances of the remaining partners?

Briefly explain the US economy.

Eclectic Ergonomics Company manufactures designer furniture. Eclectic Ergonomics uses a job order cost system. Balances on April 1 from the materials ledger are as follows:

The materials purchased during April are summarized from the receiving reports as follows:

Materials were requisitioned to individual jobs as follows:

The glue is not a significant cost, so it is treated as indirect materials (factory overhead).

Required:

Maria has built a cafeteria called "Princess of Gourmai and More" since 1995. Amira runs her project that provides coffee from the most delicious coffee in the city. It serves around 800 cups of coffee a day, along with special soups, ready-made Italian sandwiches, and a large selection of delicious cheese cakes. Maria noticed that despite the store's popularity, she always maintains nearly the same revenue. Maria has contacted your staff, who is affiliated with a consulting firm, in her city to advise the way the cafeteria works.

Maria said: “Many community college students visit us next to the cafeteria, as well as many retired clients who live next door and a large group of employees who work in the companies deployed next to the cafeteria. Every day our customers have only 30 minutes to eat their meal and have coffee so we must be fast. When preparing their meals, as it is the worker at the cafeteria who receives the customer’s order and enters the order on the cash box device, as well as receives the money and deposits it in the box and provides the customer with his meal.

The Royal Director Maria added: "We have one cash box that all workers, including myself, are handling to respond to customer requests. This cash box is not of the new type developed but it can track the different categories of meals and coffee, however the worker who receives the order must press every time." He receives the order on the button that pertains to the specific category requested by the customer (coffee, soup, sandwich, cakes) There is an internal tape in the box device that records and maintains a record of all transactions. The customer receives a receipt only when requested to deliver. The number of cafe workers is four along with the manager Maria Two workers work N in the morning from seven o'clock to three o'clock in the evening and two others from three o'clock to eleven at night time. "

Maria also said: “I open the cash box twice a day at the end of the morning period at three o'clock in the evening and at the end of the evening period at eleven o'clock at night. When I open the fund I help workers before they leave to open the cash box and calculate the amount of money and compare it to the total recorded on the tape stored Inside the fund When there is a difference between the money withdrawn from the fund and the total recorded on the tape, I recalculate the money again. "

The owner Maria told your group that since the beginning of the opening of the store, she did not face cases of theft, but rather discovers that the differences that occurred previously between the cash available in the fund and the total amount of money recorded on the tape are usually recording for an employee a different amount than the amount inadvertently received. For example, he records $ 18 instead of the $ 1.8 received amount.

Maria sends the tape and receipts manually to the accountant to make adjustments and also sends him all purchase invoices from the materials she needs to make coffee, sandwiches, soups and cakes. Note that Maria uses the economic quantity method in demand to maintain the stock of materials, given that the daily sales recorded by the cafeteria are close.

Read the case and identify weaknesses, based on the information provided by Maria and the cafeteria manager.

write the necessary recommendations for each weakness

Mohanned decided to start a water theme park in Barka , Oman . He prepared a business plan and submitted it to Bank Muscat to take loan of OMR 5000000 . He submitted documents of his 5 villas to get the loan from bank . After the bank issued loan Mohanned went to Oman chamber of commerce and industry and requested his new theme park named as Ross Island to be legally registered . After checking the documents the ministry registered the theme park as Ross Island LLC . Mohanned had partners who invested in this new business who were shareholders . The tourists who came to his place and the citizens who came to the Ross Island kept increasing . The entry tickets pricing was affordable many visitors came to his park . So Mohanned started Ross Island also in Salalah .

1 ) Is Mohanned an entrepreneur or Intrapreneur ? Define entrepreneur and intrapreneur .

2 ) Mohanned requested OMR 5000000 loan from Bank Muscat . What is this request called in Business Plan ? Define it .

3 ) Write the management team of Ross Island in your own words in two sentences .

4 ) Write the executive summary for Ross Island theme park in your own words in two sentences .

5 ) Write the company description of Ross Island in your own words in two sentences .

6 ) What are the advantages and disadvantages of starting this theme park ?

7 ) Mohanned decides to start one more Ross Island in Salalah . Is this called Market expansion ? Explain it .

8 ) He registered Ross Island as LLC . Define LLC .

9 ) Mohanned submitted documents of his 5 villas . What are these documents called ?

10 ) Do you think that this business will be successful ?

BOSS Manufacturing Company, which employs about 160 productions and administrative workers have the following payroll procedures:

The factory supervisor interviews and hires all job applicants. The new employee prepares a W-4 form (Employee’s Withholding Exemption Certificate) and gives it to the supervisor. The supervisor writes the hourly rate of pay for the new employee in the corner of the W-4 form and then gives the form to the payroll clerk as notice that a new worker has been hired. The supervisor verbally advises the payroll department of any subsequent pay raises.

A supply of blank time cards is kept in a box near the entrance to the factory. All workers take a time card on Monday morning and fill in their names. The workers are nice people. During the week they record the time they arrive and leave work by punching their time cards in the time clock located near the main entrance to the factory. At the end of the week, the workers drop the time cards in a box near the exit.

A payroll clerk, who is also nice, retrieves the completed time cards from the box on Monday morning. Employees are automatically removed from the payroll master file when they fail to turn in a time card.

The payroll checks are manually signed by the chief accountant and then given to the factory supervisor, who distributes them to the employees. The factory supervisor arranges for delivery of the paychecks to any employee who is absent on payday.

The payroll bank account is reconciled by the chief accountant, who also prepares the various quarterly and annual tax reports.

a.   Identify weaknesses in current procedures and explain the threats that they may allow to occur.

b.   Suggest ways to improve the BOSS Manufacturing Company’s internal controls over hiring and payroll processing. List up to five recommendations.

Question B3:
Alcoa Chemical, a US company, has sold £2 million chemicals to CPL Co. Payment is due in 180 days.
Spot rate: $1.60/£
180-day forward rate $1.56/£
180-day U.S. dollar interest rate (annualized) 3%
180-day Pound interest rate (annualized) 4%
180-day call option on pound at $1.57/£ premium $0.06 per pound
180-day put option on pound at $1.57/£ premium $0.05 per pound
(a) What is the hedged value of Alcoa's receivable using the forward market hedge?
(b) What is the hedged value of Alcoa's receivable using the money market hedge?
(c) Which of the hedging alternatives analyzed in parts (a) and (b) would you recommend to Alcoa? Why?

(d) What alternative is available to Alcoa to use currency options to hedge its receivable? What is the
hedged value of Alcoa's receivable using the option hedge?
(e) Discuss and compare the costs of hedging by forward contracts and option contracts.

(Numbers should be rounded to at least 3 decimal places. Please include currency symbols $, £ in
your answer)


Question B4:
Mill Company is evaluating the proposed acquisition of a new milling machine. The machine's base price is
$150,000, and has a terminal value of $20,000. The company's cost of capital is 8%. The project has a
life-time of 3 years. The operating cash flows are as follows:
Year 1 Year 2 Year 3
1. After-tax savings $35,000 $35,000 $35,000
2. Depreciation tax savings $22,500 $25,000 $8,000
Net cash flow $57,500 $55,000 $43,000
(a) Find the net present value of this project (NPV). Should it be accepted?
Suppose Mill Company wishes to expand its operations in the UK. The exchange rate at the time of
investment is £1= $1.60.
(b) Use the PPP to find the exchange rate 1 year from now, 2 years from now and 3 years from now. The
inflation rate in the U.S. (?$) is 3 percent and in the UK 5 percent (?£)
(c) Find the NPV in pounds. Should Mill Company invest in the UK?
(Numbers should be rounded to at least 3 decimal places. Please include currency symbols $, £ in
your answer)