Antioch Company makes eBook readers. The company had the following amounts at the beginning of 2018: Cash, $662,000; Raw Materials Inventory, $61,000; Work in Process Inventory, $27,000; Finished Goods Inventory, $61,000; Common Stock, $584,000; and Retained Earnings, $227,000. Antioch experienced the following accounting events during 2018. Other than the adjusting entries for depreciation, assume that all transactions are cash transactions.

1. Paid $31,000 of research and development costs.

2. Paid $57,000 for raw materials that will be used to make eBook readers.

3. Placed $83,000 of the raw materials cost into the process of manufacturing eBook readers.

4. Paid $65,000 for salaries of selling and administrative employees.

5. Paid $99,000 for wages of production workers.

6. Paid $97,000 to purchase equipment used in selling and administrative offices.

7. Recognized depreciation on the office equipment. The equipment was acquired on January 1, 2018. It has a $17,000 salvage value and a eight-year life. The amount of depreciation is computed as [(Cost – salvage) ÷ useful life]. Specifically, ($97,000 – $17,000) ÷ 8 = $10,000.

8. Paid $106,000 to purchase manufacturing equipment.

9. Recognized depreciation on the manufacturing equipment. The equipment was acquired on January 1, 2018. It has a $22,000 salvage value and a seven-year life. The amount of depreciation is computed as [(Cost – salvage) ÷ useful life]. Specifically, ($106,000 – $22,000) ÷ 7 = $12,000.

10. Paid $45,000 for rent and utility costs on the manufacturing facility.

11. Paid $72,000 for inventory holding expenses for completed eBook readers (rental of warehouse space, salaries of warehouse personnel, and other general storage cost).

12. Completed and transferred eBook readers that had total cost of $249,000 from work in process inventory to finished goods.

13. Sold 850 eBook readers for $430,000.

14. It cost Antioch $161,500 to make the eBook readers sold in Event 13.

Prepare a balance sheet for the year.

Included in the December 31, 2015, Jacobi Company balance sheet was the following shareholders’ equity section:

Jacobi Company Balance Sheet (Shareholders' Equity) December 31, 2015

1 Contributed Capital:

2 Preferred stock, 6%, $100 par $200,000.00

3 Additional paid-in capital on preferred stock 12,000.00 $212,000.00

4 Common stock, $5 par $150,000.00

5 Additional paid-in capital on common stock 240,000.00 390,000.00

6 Total contributed capital $602,000.00

7 Retained earnings 627,000.00

8 Accumulated other comprehensive income (loss):

9 Unrealized decrease in value of available-for-sale securities (41,000.00)

10 Total contributed capital, retained earnings, and accumulated other comprehensive income $1,188,000.00

11 Less: Treasury stock (1,000 shares of common stock at cost, acquired on 2/3/2015) (20,000.00)

12 Total Shareholders’ Equity $1,168,000.00

The company engaged in the following stock transactions during 2016:

Jan. 4 Paid the semiannual dividend on the outstanding preferred stock and a $1.60 per share annual dividend on the outstanding common stock. These dividends had been declared on December 1, 2015.

5 Issued 500 shares of preferred stock at $110 per share.

22 Issued 4,000 shares of common stock at $23 per share.

Apr. 2 Reissued 700 shares of treasury stock at $24 per share.

May 14 Declared a 10% stock dividend on the outstanding common stock, payable on June 29. The common stock is currently selling for $25 per share.

Jun. 4 Declared the semiannual cash dividend on the outstanding preferred stock, payable on July 5.

29 Issued the stock dividend declared on May 14.

Jul. 5 Paid the cash dividend declared on June 4.

20 Split the common stock 2-for-1 and reduced the par value to $2.50 per share.

Aug. 3 Declared a property dividend, payable to common shareholders on September 14. The dividend consists of an available-for-sale investment in 50 Drot Company bonds. The bonds had been acquired for $45,000, but have a carrying value of $30,000. The bonds are currently selling for $20,000.

Sep. 14 Paid the property dividend declared on August 3.

Dec. 3 Declared the semiannual cash dividend on the outstanding preferred stock and a $0.90 per share annual dividend on the outstanding common stock.

Required:

1. Prepare journal entries to record the preceding transactions.

2. Prepare the December 31, 2016, shareholders’ equity section (assume that 2016 net income was $270,000).

An article in the U.S. News & Works Report (September 28, 1981) states that approximately 21.3 million workers, more than a fifth of the workforce in the United States, have unorthodox working hours. More than 9.3 million work on a flexible schedule (the worker plans his own schedule) or on a weekly "compressed" schedule. A company planning to install flexible hours estimated that an average of 7 hours a day per assembly worker was needed to operate efficiently. Each of the company's 80 assemblers was asked to submit a tentative flexible schedule. If the average number of hours per day for Monday was 6.7 hours, and the standard deviation 2.7 hours. Using a 95% confidence interval, do the data provide evidence that the average number of hours worked every Monday, for all fitters in the company, will be less than 7 hours?

Por medio de una prueba de hipótesis, contestar usando un nivel de significancia del 5%

Casper Ice Cream

The Casper Ice Cream Company is an ice cream manufacturer in Richmond, Utah famous for making Fat Boy Ice Cream Sandwiches. The owner, Mr. Casper, the grandson of the founder, is considering replacing an existing ice cream maker and batch freezer with a new maker which has a greater output capacity and operates with less labor. His only alternative is to overhaul his ice cream maker and batch freezer which have a current net book value of $6,000 and three years of remaining depreciable life (straight line). The equipment would cost $10,000 to overhaul but this would increase its useful life for 10 years which is also the life of the new machinery. Mr. Casper’s accountant tells him the new net book value of the overhauled equipment could be depreciated straight line over four years. The old machinery has zero salvage value currently.

The new maker and freezer would cost $50,000 including installation. It would be fully depreciated over 10 years and would have $3,000 salvage at the end of that period. Because of automatic features, the new equipment would allow labor saving of $9,000 per year.

Even though the new equipment has increase capacity, Mr. Casper does not feel any extra product could be sold until year five. At that time, he estimates that additional sales would result in additional net cash revenues before tax of $5,000 per year for the remaining life of the machine. By the end of year four, however, working capital would have to be increased by $3,000 to support the higher sales. This increase in working capital will be recovered at the end of the project, which will last for 10 years.

Casper Company is currently in the 30% tax bracket. Mr. Casper demands a rate of return of 16%.

Complete a NPV and IRR analysis

Requirement: Below are one option of management problem brought to you by Executives of mid-size companies in Atlantic Canada. Design an approach to address this scenario include details on: Literature review methodology (if necessary), ethical considerations (if any), Problem statement (if necessary), Experimental Design (if necessary), Sampling Strategy(if necessary), Suggestions for analytical techniques (if necessary), Measurement method (if necessary), and any other information you deem is important to resolve the scenario using an evidence based management framework.

Leo the founder and president of Leisure Suit Lounge Wear is unsure of how successfully break into the generation Z market and has asked for your help. Leo runs a lounge wear company with the following customer demographics.

He is concerned with aging nature of the customer base of his product and has noted that whilst generation Z (< 25 years old) is a small proportion of his customer base they have a large average spend per customer. He therefore believes that if Leisure Suit Lounge Wear can successfully advertise to younger customers, he could increase profitability and protect the company from a shrinking market share. However, he is unsure of how to advertise to generation Z. His niece has suggested partnering with TikTok influences whereas his sales manager has suggested either a traditional TV advertising campaign or a targeted campaign using internet advertising. In particular he would like to know if social media is a better prospect for advertising to generation Z than traditional advertising and if investing in partnering with influences is an effective method of increasing sales among a younger demographic.

He has asked for you help in applying evidence-based management to improving his sales in the targeted demographic.

You are a management consultant, and you have been engaged by A & J bank. The bank currently has over 150 branches in Melbourne, Sydney, and Adelaide. The CEO, Ali Jas, has asked you to develop a training plan which can be administered across all the bank branches, and also in its Melbourne Headquarters

1. a list, brief description, and justifications of training materials you will use to manage a team.

This article lists out six critical questions for the data analyst/user/presenter. Based on what you have learned about inventory management, please create a hypothetical scenario in which you answer those questions for the CEO of your firm.

My understanding of the business problem

How I will measure the business impact

What data is available

The initial solution hypothesis

The solution

The business impact of the solution

Do you or friends of your use the social networking site Facebook? Do you know businesses that use Facebook? How does an entrepreneur make all of our lives better? • The term IPO, or initial public offering, was also mentioned in the story. What would be a good reason to offer stock of Facebook to the public? What are the disadvantages to Facebook's CEO, Mark Zuckerberg, to offering shares of Facebook to the public?

In many workplaces ranging from Fortune 500 to small enterprises, workplace communication takes place over instant messaging. The leading platform in this space is Slack, a cloud-based team collaboration tool. Messages are organized by private and public channels and users can chat, share documents, browse through past messages, and collaborate with each other. Slack is solidifying the role of instant messages in the workplace and even if you end up in a company that does not use Slack, it is likely that you will end up using one of its competitors.

Slack has an interesting founding story: Stewart Butterfield, who is also a co-founder of the image hosting service Flickr, founded the video game company Tiny Speck and released the game Glitch in 2011. As part of their game development process, the company also built a team communication platform, allowing software developers to communicate with each other while building Glitch. Glitch was shut down after a year, but the company devoted itself to the full-scale development of their communication tool, which resulted in Slack. Through word of mouth, Slack acquired 16,000 users in its beta stage, and the product was fully released in 2014. Four years later, the company boasts 50,000 companies and 6 million users. The company expects to surpass e-mail use in the workplace by 2025.

Using instant messaging organized by private and public channels is changing how people communicate in the workplace, sometimes for the better, and sometimes for the worse. On the upside, Slack often receives feedback from users who identify as shy and introverted, stating that this tool allows them to participate more in team conversations. Anna Pickard, Creative Director of Voice and Tone, at Slack, also observes that messaging makes communication more humane and natural. Communication no longer takes place between small groups of people over e-mail. Instead, it occurs in channels that are searchable and are organized by team or topic. People can reach out to and connect with people they would not otherwise. Many companies have an "ask me anything" channel where employees may post messages and high-level managers may answer, resulting in greater transparency and accessibility to upper management, helping to create a sense of belonging.

At the same time, technology sometimes amplifies communication problems that also occur in person, and creates new ones of its own. If you have ever written a chat message and instantly regretted it, you can imagine the problems that may occur at scale in the workplace. The instantaneous nature of chat can make people less deliberate and careful about their messages. There are also examples of private feedback given in an open channel, resulting in a public shaming of an employee. Slack conversations, even if they are in private channels, can be read by the employer, and may result in adverse employment actions against the employee. There is no "forward" button on instant messages, but it is all too easy to take a screen shot of the conversation and share with others, resulting in Slack leaks, similar to e-mail leaks. Additionally, there is also user error—in e-mail it is relatively easy to find out who the recipients of the e-mail are, but on Slack, people may pay less attention to who is on that channel, and others may join the channel at a later point, suggesting that the audience for the posts will evolve and can grow over time. People may confuse which channel they are on, and post messages intended for a small group to a broad audience.

As Slack grows, it develops its own etiquette. For example, hitting "enter" after every sentence is often mentioned as a no-no, and a pet peeve of heavy users. Senders are expected to complete their message and then hit enter in one go. Other habits may result in productivity losses—spending time in private chats as opposed to working is one way in which Slack and tools like it may result in productivity losses. One company banned the use of Slack during meetings, as people were having back-channel conversations during the meeting, which was distracting and affecting engagement in the meeting. How these tools are used are shaped by the office culture, and in turn will have an impact on communication culture in the workplace.

1. If you were to create a social media policy including Slack, what types of rules would you include and why?  

2. What types of messages do you believe are appropriate to communicate via Slack? For what type of communication is this tool less useful?

3. What type of communication barriers exist when workplace communication takes place over Slack and similar sources?

4. What are the implications of Slack and similar communication tools in affecting the sense of belonging that employees experience in the workplace?

5. Based on reading this case and your general experience with similar tools, what advice would you give to an employee who will start working in a company using Slack?

1. Include the bold headings below.
2. Summary: Provide a brief summary listing the key facts in the case.
3. Case Discussion Questions: Include each question before your response. Write a detailed and researched reply to each of the Case Discussion Questions found at the end of the case study.
4. Conclusion: Write a conclusion and include a separate reference page.

Can anyone help on this?.Thanks.

Monsanto Rounds Up $80 Million in Accounting Violations

ST. LOUIS (FEBRUARY 9, 2016)

BY MICHAEL COHN, Accounting today

The Securities and Exchange Commission said Tuesday that St. Louis-based agribusiness Monsanto Company has agreed to pay an $80 million penalty ….. to settle charges that it violated accounting rules and misstated company earnings pertaining to its flagship product Roundup.

An SEC investigation found Monsanto had insufficient internal accounting controls to properly account for millions of dollars in rebates offered to retailers and distributors of its herbicide Roundup after generic competition had undercut Monsanto’s prices and resulted in a significant loss of market share for Roundup. Monsanto booked substantial amounts of revenue resulting from sales incentivized by the rebate programs, but failed to recognize all of the related program costs at the same time. Therefore, Monsanto materially misstated its consolidated earnings in corporate filings during a three-year period….

The agribusiness giant has attracted controversy over the years for pressuring farms to buy its Roundup-resistant seeds every year and suing them if they re-use the seeds. The company has even sued farms where Roundup-resistant crops were found to be growing because the genetically modified seeds had blown over from neighboring farms. Monsanto has also faced lawsuits of its own for hiding the carcinogenic effects of a key ingredient in Roundup. Accounting violations are a relatively new area for Monsanto, however…

According to the SEC’s order instituting a settled administrative proceeding against Monsanto, accounting executives … and sales executives…began telling U.S. retailers in 2009 that if they “maximized” their Roundup purchases in the fourth quarter they could participate in a new rebate program in 2010. Executives developed talking points for Monsanto’s sales force to use when encouraging retailers to take advantage of the new rebate program and purchase significant amounts of Roundup in the fourth quarter of the company’s 2009 fiscal year….Approximately one-third of Monsanto’s U.S. sales of Roundup for the year occurred during that quarter.

The SEC contended that … U.S. GAAP required the company to record in 2009 a portion of Monsanto’s costs related to the rebate program, but Monsanto improperly delayed recording these costs until 2010.

Monsanto also offered rebates to distributors who met agreed-upon volume targets. However, late in the fiscal year, Monsanto reversed approximately $57.3 million of rebate costs that had been accrued under these agreements because certain distributors did not achieve their volume targets (at the urging of Monsanto). Monsanto then created a new rebate program to allow distributors to “earn back” the rebates they failed to attain in 2009 by meeting new targets in 2010. Under this new program, Monsanto paid $44.5 million in rebates to its two largest distributors as part of side agreements arranged by management, in which they were promised late in fiscal year 2009 that they would be paid the maximum rebate amounts regardless of target performance. Because the side agreements were reached in 2009, Monsanto was required under GAAP to record these rebates in 2009. But the company improperly deferred recording the rebate costs until 2010.

Monsanto repeated the program the following year and improperly accounted for $48 million in rebate costs in 2011 that should have been recorded in 2010, according to the SEC. Monsanto also improperly accounted for more than $56 million in rebates in 2010 and 2011 in Canada, France and Germany. They were booked as selling, general and administrative expenses rather than rebates, which boosted gross profits from Roundup in those countries…..

Monsanto said it cooperated with the SEC settlement…” (It) neither admitted nor denied the SEC’s allegations. Today’s announced settlement does not require any changes to the company’s historical financial statements due to our proactive efforts to restate our financials for the period at the center of the SEC’s investigation.”

She pointed out that that the $80 million civil penalty was fully reserved for and previously disclosed in the company’s financial statements for fiscal year 2015.

Miller also objected to how Monsanto has been characterized. “We do not pressure farmers into buying our products. Farmers have lots of choices and we must earn their business every year….. Additionally, Monsanto has never sued a farmer when trace amounts of our patented seeds or traits were present in the farmer’s field as an accident or as a result of inadvertent means. …

Despite lawsuits against Monsanto over its ingredients, Miller contended that glyphosate (a key ingredient in Roundup) does not cause cancer. “Glyphosate is a vital tool for agriculture with a more than 40-year history of safe use,” she said. “Glyphosate has been the subject of hundreds of detailed health and safety studies – making it one of the most thoroughly studied herbicides on the market….”

…(Executives) agreed to pay penalties of $55,000, $50,000 and $30,000 respectively, and agreed to be suspended from appearing and practicing before the SEC as an accountant (for a period of time)….

The SEC’s investigation found no personal misconduct by Monsanto CEO …who reimbursed the company $3,165,852 and $728,843, respectively, for cash bonuses and certain stock awards they received during the period when the company committed accounting violations. Therefore, it wasn’t necessary for the SEC to pursue a clawback action under Section 304 of the Sarbanes-Oxley Act.

1)     Audit theory says that the risk of material misstatement is a component of inherent risk and control risk. Assume you are the auditor for Monsanto for 2009. Discuss ways in which the auditors could have been become aware of inherent risks of material misstatement during the planning stage. Identify key inherent risks as evidenced in the reading.

2)     What accounts (based on what is described in the narrative) are over or understated? Where do the accounts fit within the scope of these accounting elements – current assets, long-term assets, current liabilities, long-term liabilities, contributed capital, accumulated other comprehensive income and retained earnings?   Indicate the account, its position in the elements, whether or not it is over or understated, and discuss the specific financial statement assertion violated.

3)     Discuss what happened in terms of the fraud triangle.

4)     What do you think about the PCAOB’s role in this matter?