Question 1
Case Study 2?Internal Control LJB Company, a local distributor, has asked your accounting firm to evaluate their system of internal controls because they are planning to go public in the future. The president wants to be aware of any new regulations required of his company if they go public, so he met with a colleague of yours at a local restaurant. The president of the company explained the current system of internal controls to your colleague. Your colleague has since been promoted to a tax position so she has passed on the information below so you can generate recommendations for the partner at your accounting firm to share with the president of LJB Company. Since LJB Company is a relatively lean organization, they have a lot of faith in their long-term employees. They have one accountant who serves as treasurer and controller, which streamlines many of their processes. In this dual role, he purchases all of the supplies and pays for these purchases. He also receives the checks and completes the monthly bank reconciliation. The accountant also interviews and approves of all the new hires. The accountant is so busy that the company handles petty cash a bit differently. All employees have access to the petty cash in a desk drawer and are asked to only place a note if they use any of the cash. The accountant has recently started using pre-numbered invoices and wants to buy an indelible ink machine to print their checks. The president is waiting to hear from you if this is a necessary purchase before authorizing. On payday, the checks are picked up by the accountant and left in his office for pick-up. Before he leaves for the weekend, he will move the checks into a safe in his office. The president is still quite embarrassed because he had to fire one of his employees for viewing pornography on a company computer. He later found out this individual was a convicted felon who served time for molesting children. The company had a hard time getting the employee to admit it was him because the company does not assign individual passwords. Prepare a Word document to address the following. 1. Inform the president of any new internal control requirements if the company decides to go public. (7 points) 2. Advise the president of what the company is doing right (they are doing some things well), and also recommend to the president whether or not they should buy the indelible ink machine. When you advise the president, please be sure to reference the applicable internal control principle from your textbook that applies. (13 points) 3. Advise the president of what the company is doing wrong (they are definitely doing some things poorly). Please be sure to include the internal control principle from your textbook that is being violated along with a recommendation for improvement. (20 points) You must prepare a formal report for the partner to distribute to the president, so no abbreviations or short-hand answers. You also must cite your references. At a minimum, your textbook should be cited.
Question 2
The table below contains data on the percentage of people without health insurance coverage. These data are based on samples taken in 2004 for the fifty states and the District of Columbia. These data are also available in the Excel workbook MATH302_Midterm, which can be found in the Midterm Examination Folder in the Course Materials section of the MATH302 classroom. State State State Alabama 13.5 Kentucky 14.6 North Dakota 8.3 Alaska 12.5 Louisiana 20.5 Ohio 11.9 Arizona 20.4 Maine 13.5 Oklahoma 19.2 Arkansas 17.9 Maryland 15.3 Oregon 12.5 California 20.6 Massachusetts 11.1 Pennsylvania 9.9 Colorado 14.8 Michigan 9.7 Rhode Island 12.9 Connecticut 8.8 Minnesota 8.0 South Carolina 14.6 Delaware 15.7 Mississippi 19.7 South Dakota 9.4 District of Columbia 17.3 Missouri 14.6 Tennessee 14.8 Florida 18.3 Montana 12.7 Texas 24.5 Georgia 17.9 Nebraska 9.0 Utah 11.7 Hawaii 8.9 Nevada 18.7 Vermont 13.2 Idaho 14.0 New Hampshire 10.0 Virginia 13.5 Illinois 11.0 New Jersey 14.2 Washington 12.4 Indiana 12.6 New Mexico 25.6 West Virginia 15.3 Iowa 11.3 New York 15.2 Wisconsin 7.3 Kansas 12.4 North Carolina 14.3 Wyoming 15.9 1. On average, what percentage of the people in the fifty states and the District of Columbia does not have health insurance? Place your answer, rounded to 2 decimal places, in the blank. _____________ 2. Based on the data above, what is the median percentage of people who do not have health insurance in the fifty states and the District of Columbia? Place your answer, rounded to 2 decimal places, in the blank. ____________ 3. Find the standard deviation of the percentage of people in the fifty states and the District of Columbia who do not have health insurance. Place your answer, rounded to 2 decimal places, in the blank. ____________ 4. The distribution of the data given in the table above is A. Normally distributed B. Positively Skewed C. Negatively Skewed D. Binomially distributed 5. An urn contains 12 balls identical in every respect except their color. There are 3 red balls, 7 green balls, and 2 blue balls. You draw two balls from the urn, but replace the first ball before drawing the second. Find the probability that the first ball drawn is red and the second ball drawn is green. Place your answer, rounded to 4 decimal places, in the blank. ________ 6. Ann is applying for a bank loan to open a pizza franchise. She must first complete a written application and then, if the written application is approved, be interviewed by bank officers. If an applicant?s written application is not approved the applicant is not granted an interview with the bank officers. Past records for this bank show that the probability of an applicant having his or her written application approved is 0.63. Records also indicate that the interviewing committee of bank officers approves 85% of the individuals they interview. Find the probability that Ann?s loan request is approved. Place your answer, rounded to 2 decimal places, in the blank. ________ 7. A restaurant menu has a price-fixed complete dinner that consists of an appetizer, entr?e, beverage, and dessert. You have a choice of five appetizers, ten entrees, three beverages, and six desserts. How many possible complete dinners are possible? Place your answer, as whole number?no decimal places?in the blank. _________ 8. The Big Triple at the local racetrack consists of picking the correct order of finish of the first three horses in the ninth race. If there are 12 horses entered in today?s ninth race, how many Big Triple outcomes are possible? Place your answer, as whole number?no decimal places?in the blank. _________ In February 2002 the Argentine peso lost 70% of its value compared to the United States dollar. This devaluation drastically raised the price of imported products. According to a survey conducted by AC Nielsen in April 2002, 68% of the consumers in Argentina were buying fewer products than before the devaluation, 24% were buying the same number of products, and 8% were buying more products. Furthermore, in a trend toward purchasing less-expensive brands, 88% indicated that they had changed the brands they purchased. Suppose the following complete set of results were reported. Use the following data to answer questions 9 through 12. Number of Products Purchased Brands Purchased Fewer Same More Total Same 10 14 24 48 Changed 262 82 8 352 Total 272 96 32 400 9. What is the probability that a consumer selected at random purchased fewer products than before? Place your answer, rounded to 4 decimal places, in the blank. ________ 10. What is the probability that a consumer selected at random purchased the same number or more products than before? Place your answer, rounded to 4 decimal places, in the blank. ________ 11. What is the probability that a consumer selected at random purchased fewer products than before and changed brands? Place your answer, rounded to 4 decimal places, in the blank. ________ 12. Given that a consumer changed the brands, what then is the probability that the consumer purchased fewer products than before? Place your answer, rounded to 4 decimal places, in the blank. ________ 13. Suppose that the probability that a new medication will cause a bad side effect is 0.03. If this medication is given to 150 people, what is the probability that exactly three of them will experience a bad side effect? Place your answer, rounded to 4 decimal places, in the blank. _______ 14. Suppose that the probability that a new medication will cause a bad side effect is 0.03. If this medication is given to 150 people, what is the probability that more than three of them will experience a bad side effect? Place your answer, rounded to 4 decimal places, in the blank. _______ 15. The average hourly wage of workers at a fast food restaurant is $6.50/hr with a standard deviation of $0.45. Assume that the distribution is normally distributed. If a worker at this fast food restaurant is selected at random, what is the probability that the worker earns more than $6.75? Place your answer, rounded to 4 decimal places, in the blank. ________ 16. It has been observed that electrical connectors manufactured by Jolt Electrical Supply Company last an average of 18.2 months and follow a normal distribution with a standard deviation of 1.7 months. Jolt agrees to replace any connector that fails within 19 months. Out of 500 connectors sold, how many does Jolt expect to replace, on average? Place your answer, rounded to the nearest whole number, in the blank. ______ 17. The length of time to complete a door assembly on an automobile factory assembly line is normally distributed with mean 6.7 minutes and standard deviation 2.2 minutes. For a door selected at random, what is the probability the assembly line time will be between 5 and 10 minutes? Place your answer, rounded to 4 decimal places, in the blank. _______ 18. The manufacturer of a new compact car claims the miles per gallon (mpg) for the gasoline consumption is mound shaped and symmetric with a mean of 25.9 mpg and a standard deviation of 9.5 mpg. If 30 such cars are tested, what is the probability the average mpg achieved by these 30 cars will be greater than 28? Place your answer, rounded to 4 decimal places, in the blank. _______ The annual returns, in percentages, on stocks A and B for three possible states of the economy are given in the table below. Economy State Probability StockA StockB Good 0.5 40 20 Average 0.3 20 40 Bad 0.2 10 8 19. If one invested in StockA, what would be the expected annual percentage return? Place your answer, in percent, in the blank. For example, an expected 10 percent return would be recorded as 10. Do not use a percent sign. _______ 20. If one invested in StockA, what would be the standard deviation of the percentage return? Place your answer, in percent rounded to 1 decimal place, in the blank. For example, a standard deviation of 10.39 percent would be reported as 10.4. Do not use a percent sign. _________,Thanks much for all your help, I will remember to ask my questions days in advance next time. Have a wonderful night.
Question 3
Hello! Below is my question. I have attached a spreadsheet with the details. Gegax Manufacturing inccurred the following costs in acquiring land, making land improvements, and furnishing a new building. a.purchase price of four acres of land-$200,000 b.Additional dirt and earthmoving-$8,100 c.Fence around the boundary of the property-$17,600 d.Attorney fee for title search on the land-$1,000 e.Unpaid property taxes on the land to be paid by Gegax-$5,900 f.Company signs at the front of the property-$4,400 g.Building permit for the building-500 h.Architect's fee for the design of the building-$22,500 i.Labor to construct the building-$709,000 j.Materials used to construct the building-$224,000 k.Landscaping-$6,400 l.parking lot and concrete walks-$29,700 m.Lights for the parking lot and walksways-$10,300 n.Salary of construction supervisor(85% to building;15% to parking lot and concrete walks)-$40,000 o.Furniture for the building-$107,100 p.Transportation and installation of furniture-$2,100 Gegax depreciates buildings over 40years, land improvements over 20years, and furniture over 8years, all on a straight-line basis with zero residual value. Requirements: All construction was complete and assets were placed in service on May 1. Record partial-year depreciation for the year ended December 31. Round to the nearest dollar.,Okay thanks...,Sorry but is this answer in tune with the spreadsheet I attached? There were (4) journal entries that needed to be made on the spreadsheet. I don't see a copy of my attachment on your answer. Help! Thanks,When I view your attached spreadsheet, the first journal entry is not completed. I have filled in amounts for the debits, but the credits are not completed. The next three journal only show entries on the credit side, nothing shows up on the debit sides. Am I missing something?
Question 4
This morning, you arrived at your job as Head of Client Advisory Services for a major investment firm and received a distressing phone call. Mrs. Smith, one of your best clients, who just happened to become your mother in law shortly after her retirement, has passed away. As the investment expert in the family, it will be your task to values Mrs. Smith?s substantial estate, which consists mostly of stock investments which you have recommended. Making your task complicated is the fact that following your advice, Mrs. Smith has invested mostly in companies whose stocks are not publicly traded or listed. As a matter of fact, most of Mrs. Smith?s investments are in companies headed by some of your college buddies. Mrs. Smith?s portfolio consists of the 10 stocks described below. Your task is to value each individually and aggregate the values to come up with the total value of Mrs. Smith?s estate. As one of the heirs, you are highly motivated to come up with the correct valuation. 1. 2,000 shares of The Chug-Chug Breweries Co. which just paid a dividend of $1.95 per share. The dividends are expected to grow at a constant rate of 6 percent per year indefinitely. Investors require an 11 percent return on This company?s stock 2. 1,500 shares of Aqua-Pedic Mattress Corporation that will pay a $3.04 per share dividend next year. The company pledges to increase its dividend by 3.8 percent per year indefinitely. Investors require an 11 percent return on this investment. 3. 500 shares of Big Bang Inc. paying a constant $9.75 dividend. The company will maintain this dividend for the next 11 years and will then cease paying dividends forever. Investor?s required return on this stock is 10 percent. 4. 3,000 shares of E&E Online booksellers that just paid a dividend of $3.50. The growth rate in dividends is expected to be a constant 5 percent per year indefinitely. Investors require a 14 percent return on the stock for the first three years, a 12 percent return for the next three years, and a 10 percent return thereafter. 5. 100 shares of Up All Night Video Games, Inc. This is a young start-up company. No dividends will be paid on the stock over the next nine years because the firm needs to plow back its earnings to fuel growth. The company will pay a $10 per share dividend in 10 years and will increase the dividend by 5 percent per year thereafter. The required return on this stock is 14 percent. 6. 2,500 shares of Cake in a Cup Bakeries, a rapidly growing company. Dividends are expected to grow at a 30 percent rate for the next three years, with the growth rate falling off to a constant 6 percent thereafter. The required return is 13 percent and the company just paid a $1.80 dividend. 7. 750 shares of Agave Chips and Snacks; a mature manufacturing firm. The company just paid a $10.46 dividend, but management expects to reduce the payout by 4 percent per year indefinitely. Investors require an 11.5 percent return on this stock. 8. 1,200 newly issued preferred shares of Lighter.com. The issue will pay a $20 annual dividend in perpetuity, beginning 20 years from now. The market requires a 6.4 percent return on this investment. 9. 300 shares of Coolman Socks Investments Corp. The company just paid a dividend of $1.25 per share. The dividends are expected to grow at 28 percent for the next eight years and then level off to a 6 percent growth rate indefinitely. The required return is 13 percent. 10. 900 shares of Netbail.com, expected to pay the following dividends per share in the next four years: $11, $8, $5 and $2. Afterwards, the company pledges to maintain a constant 5% growth rate in dividends forever. The required return on the stock is 12% For each of the 10 investments described above, indicate your calculated valuation for the stock, your calculated valuation for the estate?s total holdings of the stock (value per share X number of shares held) and the total value of the estate (sum of total holdings of all ten stocks). 11. you are considering starting a college fund for Mrs. Smith?s grandchildren (your kids). Interflix.com just announced that it will be paying a dividend of $2.10 per share and expects to maintain a 5% growth rate forever. If you can buy the stock at $48 per share, what will your return be? 12. you are considering investing part of the proceeds of your share of the estate in the stock of Yeskia, Inc. The shares are currently selling at $47 and the required return on the stock is 11 percent. Additionally, the total return on the stock is evenly divided between capital gains yield and a dividend yield. If the company?s policy is to always maintain a constant growth rate in its dividend, what is the current dividend per share?
Question 5
New Products Review the process for development of new products. Analyze why most new products fail. Below is an example from a peer: According to Mullins and Walker (2010), introducing new products is a risky business because more than half usually fail. They do not fail due to technical reasons; they fail due to the simple fact that not enough consumers are interested in purchasing the product (p 262). In order to avoid this situation, organizations must remember that when developing a new product they ensure that an adequate understanding of customer needs, preferences, and requirements is developed. Once marketers have gained the understanding they feel is necessary to pursue the introduction of a new product they feel will appeal to consumers, marketers follow a process for new product development that will better exploit the new product, and at the same time reduce the risks of failure. It is discussed by Mullins and Walker that the process development for managing new product development is called a stage-gate system which consists of 5 stages starting from idea generation all the way to product launch (p 265). It is further discussed that the new product has to be examined after completing each step before it can move on to the next step in the process; in doing so, ideas that lack market potential are stopped before too many resources are wasted to develop it further. The 5 gates are discussed: Gate 1: Idea Generation and Initial Screening Decisions ? idea, preliminary assessment to determine if the idea is a strategic fit with company?s mission Gate 2: Secondary Screening Decisions - detailed investigation (business case preparation) to kill any weak ideas before wasting significant amount of resources Gate 3: Decisions on the Business Case ? investigation is completed which includes a comprehensive customer, market, and competitive analysis; along with primary research. This stage is the last chance to stop before proceeding with full-scale development. Gate 4: Post-development Review Decisions ? product design and specific product features are decided, pricing and channels are determined, along with brand name, packaging, and a planned marketing communications program. Any additional marketing research is done at this stage as well. Gate 5: Pre-commercialization Business Analysis ? product must pass in a test market (p 267-269) Mullins, J. W., Walker, Jr., O. C. (2010). Marketing management: A strategic decision making approach (7th ed.). Boston: McGraw-Hill Irwin.
