(All answers were generated using 1,000 trials and native Excel functionality.) Galaxy Co. sells virtual reality (VR) goggles, particularly targeting customers who like to play video games. Galaxy procures each pair of goggles for $150 from its supplier and sells each pair of goggles for $300. Monthly demand for the VR goggles is a normal random variable with a mean of 160 units and a standard deviation of 40 units. At the beginning of each month, Galaxy orders enough goggles from its supplier to bring the inventory level up to 140 goggles. If the monthly demand is less than 140, Galaxy pays $20 per pair of goggles that remains in inventory at the end of the month. If the monthly demand exceeds 140, Galaxy sells only the 140 pairs of goggles in stock. Galaxy assigns a shortage cost of $40 for each unit of demand that is unsatisfied to represent a loss-of-goodwill among its customers. Management would like to use a simulation model to analyze this situation.

(a) What is the average monthly profit resulting from its policy of stocking 140 pairs of goggles at the beginning of each month? Round your answer to the nearest dollar. $blank

(c) Use the simulation model to compare the profitability of monthly replenishment levels of 140 and 160 pairs of goggles. Use a 95% confidence interval on the difference between the average profit that each replenishment level generates to make your comparison. Round your answer to the nearest dollar. The average difference between the net profit generated by a replenishment level of 160 versus a replenishment level of 140 is $blank    . It means, that monthly replenishment level of 160 maximizes profitability.

Budget Logistic Service operates a number of delivery vans. Each van is distinguished by its registration number, and characterized by the number of passenger seats and the maximal load weight. Budget Logistic operates various permanent delivery lines among the businesses in the neighborhood. Each line is assigned a unique number. A line has at least two stops: the origin and the destination. For a given line, a sequence of stops may exist between the origin and the destination. These stops also need to be recorded clearly as they will be used for scheduling purposes.That is, we need to be able to retrieve the origin, destination and all in-between stops if any. All stops are identified by street addresses. Some stops are shared by several lines. For each stop on each line, a specific time interval (i.e. waiting time) is prescribed for the driver to wait while the customers are bringing their packages. To avoid confusing customers, the waiting time does not depend on the day of the week or the hour. The management team of Budget Logistic keeps a schedule of lines, which fixes all the departure times (from the origin) of each line, on every day of the week. According to the load expectations, the dispatcher assigns one or more vans to each scheduled line. If no delivery jobs are expected on a certain line at a given time, then no vans are dispatched to depart on that line at that time. For each scheduled departure, the dispatcher records a brief advice to the driver, which is a short text.

Question: Construct the relational schema for the Budget Logistic database, based on the above description. Start an ER model then map it to the relational model. Your relational schema should have an adequate normalization up to Fourth normal form (4NF). For each relation you construct, define the primary key and indicate foreign keys, if any.

Greg’s Bicycle Shop has the following transactions related to its top-selling Mongoose mountain bike for the month of March. Greg's Bicycle Shop uses a periodic inventory system.

Date			Transactions	Units				Unit Cost				Total Cost
March	1		Beginning inventory		20			$	245				$	4,900
March	5		Sale ($390 each)		15
March	9		Purchase		10				265					2,650
March	17		Sale ($440 each)		8
March	22		Purchase		10				275					2,750
March	27		Sale ($465 each)		12
March	30		Purchase		8				295					2,360
													$	12,660

For the specific identification method, the March 5 sale consists of bikes from beginning inventory, the March 17 sale consists of bikes from the March 9 purchase, and the March 27 sale consists of four bikes from beginning inventory and eight bikes from the March 22 purchase.

rev: 02_28_2017_QC_CS-80932, 04_13_2020_QC_CS-208026

Problem 6-2A Part 1

Required:

1. Calculate ending inventory and cost of goods sold at March 31, using the specific identification method.

2. Using FIFO, calculate ending inventory and cost of goods sold at March 31.

3. Using LIFO, calculate ending inventory and cost of goods sold at March 31.

4. Using weighted-average cost, calculate ending inventory and cost of goods sold at March 31. (Round your intermediate and final answers to 2 decimal places.)

5. Calculate sales revenue and gross profit under each of the four methods. (Round weighted-average cost amounts to 2 decimal places.)

6. Comparing FIFO and LIFO, which one provides the more meaningful measure of ending inventory?

7. If Greg’s Bicycle Shop chooses to report inventory using LIFO instead of FIFO, record the LIFO adjustment. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.)

New Era Cleaning Service, Inc. opened for business on July 1, 2010. During the month of July, the following transactions occurred:
July 1: Issued $18,000 of common stock for $18,000 cash
July 1: Purchased a truck for $11,000. Paid $4,000 in cash and borrowed the remainder (long term) from the bank.
July 3: Purchased cleaning supplies for $900 on account.
July 5: Paid $1,800 on a one-year insurance policy, effective July 1.
July 12: Billed customers $4,800 for cleaning services.
July 18: Paid $1,500 of the amount owed on the truck.
July 18: Paid $500 of the amount owed on cleaning services.

July 20: Paid $1,700 for employee salaries.

July 21: Collected $1,200 from customers billed on July 12.

July 25: Billed customers $1,900 for cleaning services.

July 31: Paid gas and oil for the month on the truck, $500.

July 31: Paid a $800 dividend.

Please complete the following tasks:
Post the July transactions to the general journal and the general ledger "T" accounts.

General journal

Journal #	Date	Accounts and Description		Debit	Credit
		Debit	Credit

(#1 #2 #3 #4 #5 #6 #7 #8 #9 #10 #11 #12)

Adjusting entries:

(a) (b) (c) (d) (e)

General Ledger - T Accounts

Cash			Accounts Receivable			Pre-Paid Insurance			Supplies
Debit	Credit		Debit	Credit		Debit	Credit		Debit	Credit
Equipment: Truck			Accum. Depreciation			Accounts Payable			Bank Loan
Debit	Credit		Debit	Credit		Debit	Credit		Debit	Credit
Salaries Payable			Revenue			Gas & Oil Expense			Salaries Expense
Debit	Credit		Debit	Credit		Debit	Credit		Debit	Credit
Insurance Expense			Supplies Expense			Depreciation Expense			Income Summary
Debit	Credit		Debit	Credit		Debit	Credit		Debit	Credit
Common Stock			Dividend			Retained Earnings
Debit	Credit		Debit	Credit		Debit	Credit

Lars Linken opened Lars Cleaners on March 1, 2022. During March, the following transactions were completed. Transactions for the month of March were as follows:

1. March 1 Issued 10,000 shares of common stock for $15,000 cash.

2. March 1 Borrowed $6,000 cash by signing a 6-month, 6%, $6,000 note payable. Interest will be paid the first day of each subsequent month.

3. March 1 Purchased used truck for $8,000 cash.

4. March 2 Paid $1,500 cash to cover rent from March 1 through May 31.

5. March 3 Paid $2,400 cash on a 6-month insurance policy effective March 1.

6. March 6 Purchased cleaning supplies for $2,000 on account.

7. March 14 Billed customers $3,700 for cleaning services performed.

8. March 18 Paid $500 on amount owed on cleaning supplies.

9. March 20 Paid $1,750 cash for employee salaries.

10. March 21 Collected $1,600 cash from customers billed on March 14.

11. March 28 Billed customers $4,200 for cleaning services performed.

12. March 31 Paid $350 for gas and oil used in truck during month (use Maintenance and Repairs Expense).

13. March 31 Declared and paid a $900 cash dividend.

The chart of accounts for Lars Cleaners contains the following accounts: Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Equipment Accumulated Depreciation—Equipment Accounts Payable Salaries and Wages Payable Notes Payable Interest Payable Common Stock Retained Earnings Dividends Income Summary Service Revenue Maintenance and Repairs Expense Supplies Expense Depreciation Expense Insurance Expense Salaries and Wages Expense Rent Expense Interest Expense

g. Prepare the income statement and a retained earnings statement for March and a classified balance sheet at March 31.

h. Journalize and post closing entries and complete the closing process.

i. Prepare a post-closing trial balance at March 31.

On April 15, 2021, fire damaged the office and warehouse of Sheffield Corporation. The only accounting record saved was the general ledger, from which the balance sheet data below was prepared.

SHEFFIELD CORPORATION MARCH 31, 2021
Cash	$19,110
Accounts receivable	36,050
Inventory, December 31, 2020	72,770
Land	35,590
Buildings	106,820
Accumulated depreciation		$37,831
Equipment	3,460
Accounts payable		24,749
Other accrued expenses		6,429
Common stock		98,100
Retained earnings		52,200
Sales revenue		135,270
Purchases	52,200
Miscellaneous expense	28,579
	$354,579	$354,579

The following data and information have been gathered.

1.		The fiscal year of the corporation ends on December 31.
2.		An examination of the April bank statement and canceled checks revealed that checks written during the period April 1–15 totaled $13,230: $5,714 paid to accounts payable as of March 31, $3,561 for April merchandise shipments, and $3,559 paid for other expenses. Deposits during the same period amounted to $11,868, which consisted of receipts on account from customers with the exception of a $949 refund from a vendor for merchandise returned in April.
3.		Correspondence with suppliers revealed unrecorded obligations at April 15 of $16,306 for April merchandise shipments, including $2,488 for shipments in transit (f.o.b. destination) on that date.
4.		Customers acknowledged indebtedness of $44,740 at April 15, 2021. It was also estimated that customers owed another $8,800 that will never be acknowledged or recovered. Of the acknowledged indebtedness, $608 will probably be uncollectible.
5.		The companies insuring the inventory agreed that the corporation’s fire-loss claim should be based on the assumption that the overall gross profit rate for the past 2 years was in effect during the current year. The corporation’s audited financial statements disclosed this information:
		Year Ended December 31 2020 2019 Net sales $568,690 $395,930 Net purchases 294,380 258,400 Beginning inventory 53,800 69,890 Ending inventory 72,770 53,800
6.		Inventory with a cost of $7,150 was salvaged and sold for $3,510. The balance of the inventory was a total loss.

Compute the amount of inventory fire loss

Additional information.

PackCo is an Australian-listed company that manufactures packaging products. PackCo services customers that are mainly food and beverage producers. The company currently operates in Australia, New Zealand and USA, and employs more than 6,000 staff. With its head office in Melbourne, Victoria, PackCo is listed on the Australian Stock Exchange and operates a number of production facilities in Australia, mainly in Victoria and South Australia. Since its inception, the company has grown steadily with revenues reaching almost USD $4 billion in 2016. The company has also acquired a number of other businesses to support its business growth.

PackCo sells its products and services to both local and overseas customers, and is reliant on third party logistics (3PLs) for transportation and forwarding companies to move its products. A newly appointed Supply Chain Optimisation Manager, Aras, has been tasked to oversee transportation and freight optimisation within PackCo. His responsibilities include conducting RFPs (requests for proposals) for the selection of carriers, and also implementing S&OP and CPFR projects to ensure that demand planning within the category is cost efficient and service effective.

Despite the implementation of an ERP system, management and replenishment of inventory to the right location has been a challenge.

Aras, in his first weeks of this job in overseeing one of the business groups within PackCo, recognised that due to forecast inaccuracies, it would be a big challenge to get the transport planning right. Despite the implementation of an ERP system, due to master data inaccuracies, management and replenishment of inventory to the right location has been a challenge. This has led to the demand planners in his team resorting to using spreadsheets to communicate demand requirements to the providers. Also, the lack of accurate data has resulted in higher inventories and accumulation of aged and obsolete stock.

Aras realised that his supply chain team has constantly exceeded its logistics budget to provide outstanding service levels for customers. Due to lack of clear sales strategy, expedited delivery or special production runs for low-order customers have further reduced the profit margins. For example, one of PackCo’s biggest accounts, Healthy Foods, spends only $2 million a year and, yet the logistics costs incurred servicing this client as a percent of revenue is over 25%.

Q1: Supply Chain Optimisation Manager needs to formulate a demand management and planning strategy report to be presented to C-level executives. If you were Supply Chain Optimisation Manager, explain what strategies should be adopted to improve PackCo’s planning and management.

Q2. What should be PackCo’s immediate priority to solve its supply chain inefficiencies?

Part II: A Case Study in Chapter 13 Bankruptcy - Chapter 13: What Debts Are Dischargeable? In re Ryan - Read the case study below concerning Chapter 13 bankruptcy and answer the three questions at the end of the case study. Be certain to clearly identify your answers to all three questions and be complete in your responses. 389 B.R. 710 9th Cir. BAP, (Idaho, 2008) On July 13, 1995, Ryan was convicted of possession of an unregistered firearm under 26 U.S.C. §5861(d) in the United States District Court for the District of Alaska. Ryan was sentenced to fifty-seven months in prison followed by three years of supervised release. In addition, Ryan was ordered to pay a fine of $7,500…, costs of prosecution in the amount of $83,420, and a special assessment of $50.00. Ryan served his sentence. He also paid the $7,500 fine. The district court, following an appellate mandate, ultimately eliminated the restitution obligation. On April 25, 2003, Ryan filed a petition for bankruptcy relief under chapter 7 in the District of Idaho. He received his chapter 7 discharge on August 11, 2003. Shortly thereafter, Ryan filed a case under chapter 13, listing as his only obligation the amount of unpaid costs of prosecution owed to the United States (“Government”).… Ryan completed payments under the plan, and an “Order of Discharge” was entered on October 5, 2006. The chapter 13 trustee’s final report reflected that the Government received $2,774.89 from payments made by Ryan under his plan, but a balance of $77,088.34 on the Government’s costs of prosecution claim remained unpaid. Ryan then renewed his request for determination of dischargeability. The bankruptcy court held that the unpaid portion of the Government’s claim for costs of prosecution was excepted from discharge by § 1328(a)(3). Ryan appealed. The Court concluded that the exception to the discharge included in [Chapter 13] for “restitution, or a criminal fine, included in a sentence on the debtor’s conviction of a crime” does not cover costs of prosecution included in such a sentence, and REVERSED the bankruptcy court’s judgment.

Case Questions 3. Why did the court decide that Ryan’s obligation to pay “costs of prosecution” was not precluded by the limits on Chapter 13 bankruptcies imposed by Congress?

Three Steps to Cross-Cultural Dialogue

With “a global mindset by which we try to see things through the eyes of others and add their knowledge to our personal repertories” (Chen & Starosta, 2000, p. 1), we can perhaps take three steps to cross-cultural dialogue. The first step is to understand the mental layer of our own culture and its impact on the behavioral and material layers. The second step is to under- stand the mental layer of other cultures and its impact on the behavioral and material layers. The third step is to listen to others’ perspectives on our culture and share our perspectives on other cultures in order to reflect on what it means to be human in both local and global contexts and how humans should relate to one another, nature, and the spirits. In this step, we must engage in intercultural dialogue with Asante’s (2006) spirit of mutual respect and learning: “As creators of our own societies, we have valuable experiences to share, not to impose, which might be examined and adapted in a spirit of sharing and dialogue. This is the real meaning of intercultural interaction” (p. 154). Tu (2008) echoes Asante’s position by saying that “the celebration of cultural diversity, without falling into the trap of pernicious relativism, is profoundly meaningful for global stewardship” (p. 331).

Centricity in the first step of cross-cultural dialogue is the beginning and basis of equality and mutuality in intercultural communication (Miike, 2008a). It prevents our interactions with people from different countries and cultures from becoming a mere imposition– imitation encounter. This point should be well taken, especially by non-Westerners who wish to have sincere and serious conversations about intercultural cooperation and collaboration with Westerners on an equal footing. As Asante (2009) elucidates, centricity urges us, first and foremost, to inquire about our own identities, cultures, and histories as a way of contributing to the grand flow of the entire humanity without being imitators who blindly follow others. Paradoxically, in this soul-searching process, we may discover that the development of our own culture is, in fact, indebted to other cultures, and that the nature of human civilization is truly multicultural and synergic. In any case, imitation is not intercultural (Miike, 2008a).

Describe and discuss the three steps to cross-cultural dialogue.

UESTION 3 and QUESTION 4: Context

Suppose you are part of the analytics team for the online retailer Macha Bucks which sells two types of tea to its online visitors: Rouge Roma (RR) and Emerald Earl (EE). Everyday approximately 10,000 people visit the site over a 24 hour period. For simplicity suppose we consider the “buy one or don’t buy” (BODB) market segment of customers which when they visit the site will conduct one of the following actions: (a) buy one order of RR, (b) buy one order of EE, or (c) don’t buy (DB) anything. You have been tasked with determining customer behavior on the website for the BODB segment using a random sample of 35 visits.

In the dataset for the random sample, each row corresponds to a random visitor. For each visitor we provide both the visitor’s action as well as the profit earned on the transaction. In the action column:

if the visitor buys one order of RR, we see a RR,
if the visitor buys one order of EE, we see an EE,
if the visitor doesn’t buy anything, we see a DB.

Note that even if two customers buy the same product, the profit can differ due to the shipping costs, promotions, or coupons that are applied

Random Sample of Data

1=yes, 0 = no

Transaction ID

Action

Profit ($)

Bought RR?

Bought EE?

Didn't Buy?

Profit RR ($)

Profit EE ($)

1

RR

8.43

1

0

0

.

0.00

2

DB

0.00

0

0

1

0.00

0.00

3

EE

1.75

0

1

0

0.00

1.75

4

DB

0.00

0

0

1

0.00

0.00

5

EE

4.37

0

1

0

0.00

4.37

6

EE

5.79

0

1

0

0.00

5.79

7

RR

6.27

1

0

0

6.27

0.00

8

RR

6.22

1

0

0

6.22

0.00

9

DB

0.00

0

0

1

0.00

0.00

10

EE

4.49

0

1

0

0.00

4.49

11

RR

10.54

1

0

0

10.54

0.00

12

EE

3.79

0

1

0

0.00

3.79

13

DB

0.00

0

0

1

0.00

0.00

14

DB

0.00

0

0

1

0.00

0.00

15

RR

9.03

1

0

0

9.03

0.00

16

EE

3.54

0

1

0

0.00

3.54

17

DB

0.00

0

0

1

0.00

0.00

18

DB

0.00

0

0

1

0.00

0.00

19

EE

5.02

0

1

0

0.00

5.02

20

DB

0.00

0

0

1

0.00

0.00

21

EE

3.60

0

1

0

0.00

3.60

22

DB

0.00

0

0

1

0.00

0.00

23

EE

2.61

0

1

0

0.00

2.61

24

RR

11.75

1

0

0

11.75

0.00

25

RR

12.22

1

0

0

12.22

0.00

26

DB

0.00

0

0

1

0.00

0.00

27

DB

0.00

0

0

1

0.00

0.00

28

EE

6.17

0

1

0

0.00

6.17

29

RR

8.83

1

0

0

8.83

0.00

30

DB

0.00

0

0

1

0.00

0.00

31

DB

0.00

0

0

1

0.00

0.00

32

DB

0.00

0

0

1

0.00

0.00

33

DB

0.00

0

0

1

0.00

0.00

34

RR

14.16

1

0

0

14.16

0.00

35

EE

6.06

0

1

0

0.00

6.06

PARTS

Using the sample data, obtain a point estimate for the proportion of customers in this BODB market segment that
a) purchase EE:   

b) purchase RR:
c) don’t buy:       

a) What is the name of the model/distribution that would be appropriate to use for the probability distribution of the sample proportion of the BODB market segment that purchases EE?


b) Please provide as much information as you can about the relevant parameters for the distribution (e.g., mean and standard deviation).

Please provide a 95% confidence interval for population proportion of the BODB market segment that
a) purchase EE:

b) purchase RR:
c) don’t buy:       

a) What does the 95% confidence interval mean intuitively? Please provide an interpretation.

b) What could you do to obtain a narrower 95% confidence interval?


c) What would you need to do to have a margin of error of 0.05? Please do the calculation.

a) Please provide a 99% confidence interval for the population proportion of the BODB market segment that purchases EE.

b) When would you prefer a 99% confidence interval rather than a 95% confidence interval?

What is the 95% confidence interval for the average profit from a

a) EE customer (i.e., a customer in the BODB market segment that buys EE):

b) RR customer (i.e., a customer in the BODB market segment that buys RR):

c) Clearly state any assumptions you make about the sampling distribution.

QUESTION 4

PARTS

a) What could be an appropriate probability distribution to use for modeling the number of visitors that the website has in an hour?

b) What parameters would you use for the probability distribution?


c) Using that distribution, determine the probability that more than 600 people visit the site in an hour.

a) What could be an appropriate probability distribution to use for modeling the number of seconds between customer visits?

b) What parameters would you use for the probability distribution?


c) Using that distribution, determine the probability that the time between customer visits to the website is less than 10 seconds.

a) What could be an appropriate probability distribution to use for modeling the number of website visitors from 100 visitors that do not buy anything?

b) What parameters would you use for the probability distribution?


c) Using that distribution, determine the probability that from among 100 customers, it turns out that 30 or more customers do not buy anything.

d) What is the average number of visitors (from among 100 customers) that do not buy anything?

e) What is the standard deviation of the number of visitors (from among 100 customers) that do not buy anything?

What is the average profit from among 100 random customers that visit the site?
Please explain your answer or show your calculations.