Question 3
READ PART II OF THIS ASSIGNMENT CAREFULLY BEFORE CONTINUING YOUR WORK. Provide clear and complete responses to questions. WHEN COMPLETING PART II, PLEASE CLEARLY IDENTIFY SENSITIVITY RESULTS. [Note: In most cases, you will only need to capture and present the first sheet (?Assumptions?) that reflects changes to inputs and summarizes income and cash flow outcomes. Label sensitivities, and highlight changes to input assumptions along with associated outcomes. FCC PART II: DECISION MAKING AND ANALYSIS Your financial model (Part I) provides the ?Baseline Scenario?, which is the starting point for Part II analysis. For each decision-making extension, refer to the baseline and, unless stated otherwise, consider each situation incrementally from the baseline (ceteris paribus). Please label sensitivities and question items in a written report and paste screen captures from spreadsheet results, as necessary, to support your responses. The bottom right corner of the Assumptions Sheet contains the box ?Sensitivity Analysis, Summary Results? that highlights summary sensitivity results. A. CVP AND SENSITIVITY ANALYSIS 1. FCC?s market researcher indicates that the PID market is becoming highly competitive and sales prices must be reduced. a) Begin with the baseline scenario. By what percentage may FCC lower the unit selling prices across all quarters for both products and maintain breakeven NOI for the year? [Under DATA select WHAT IF ANALYSIS and then GOAL SEEK and SET CELL for NOI (Assumptions Sheet, cell I49) to ?0? ? BY CHANGING cell ?I17? in Assumptions Sheet]. Confirm that you obtained breakeven NOI, print and highlight your summary results (Assumptions Sheet). b) What is the projected line-of-credit balance on December 31 given this price reduction? c) Assume that the price reduction occurs. Determine the percentage change in unit volume required to achieve a ?breakeven cash flow? for the year. Perform GOAL SEEK by setting the ending LOC equal to ?0? and changing cell ?I4? (unit volume in Assumptions). Briefly explain your result. 2. Kate Forest is disappointed with the baseline net income projection. Bogey Fields suggests that an advertising campaign (cost of $25,000 per quarter), combined with increases in sales commissions (to 7% for the entire year) can improve unit PID sales and overall profitability. a) Return to the baseline. Incorporate Mr. Fields? assumptions and then determine by what percentage must total unit PID sales increase to achieve Net Income of $1,300,000 for the year? [Use GOAL SEEK and SET CELL for Net Income to $1,300,000 -CHANGE CELL ?I4? in Assumptions sheet]. b) Continue with the revised marketing assumptions (excluding volume change from part a), but also shift the overall sales mix by an additional 2.0% (i.e., change the overall sales mix sensitivity (cell I12) to 2% so that Quarter 1 becomes 5%, Quarter 2 becomes 6%, etc.). Given this shift, is the percentage increase in PID sales to achieve Net Income of $1,300,000 more or less than without the shift in sales mix? Explain. [Use GOAL SEEK - CHANGE CELL ?I4? in Assumptions sheet]. c) Return to the Baseline. Now, suppose that the PID-P product does not achieve sales growth expectations, but instead the sales mix remains constant at 90% (PID-B) and 10% (PID-P) throughout the projection period. Determine the differential NOI and LOC balance relative to the original (baseline), sales mix assumptions. [Use SCENARIO MANAGER AND PRINT THE SUMMARY]. Select DATA, WHAT IF ANALYSIS, SCENARIO MANAGER, and then EDIT Scenario ?II_A_2C? within the Assumptions Sheet. Click OK and then enter ?0? for each of the CHANGING CELLS (E13:H13). Click OK and enter zeros for all changing cells. Then, SUMMARY and OK again. Print your SCENARIO SUMMARY (modify result cells to I49:I51). Briefly interpret differences in scenario RESULTS. 3. Return to the baseline. Now, assume that FCC?s supplier experiences an increase in the cost of the special flash memory chip required by the premium model. The supplier has indicated that it will pass along the costs to FCC as an increase of $22.00 per PID-P (enter 22 into cell I22), beginning Quarter 1. a) Determine the projected annual NOI and ending LOC balance, assuming that the cost increase materializes. b) Continue with the cost increase. By what percentage must total unit PID sales volume increase to maintain the same level of NOI as before the cost increase? [Use GOAL SEEK] c) Return to the baseline. Separately determine the model elasticity for the two parameters, sales mix and sales price, with respect to NOI. Recall that model elasticity is the ratio of %? outcome to % ? parameter. Enter ?5%? into overall sales mix sensitivity cell I12 and assess the change in NOI. Then, do the same for the overall sales price sensitivity cell I17. With respect to which parameter is NOI more elastic? Briefly explain.
Question 4
Unit 1 Individual Project Deliverable Length: 4?5 pages: not including cover page, abstract page, & reference page Details: Marketing plans are tools used by managers to guide the process of marketing. They contain strategies and consider many environmental aspects that work together to affect the success of the product or service being marketed. Marketers must learn to do solid research in support of upcoming projects. The Unit 1 Individual Project is a research paper and should address the following: Provide a quick definition of marketing plans using your text. Include the following: ?Using an article from the library?s full-text databases, discuss an example of how a marketing plan helped make a product or service successful. ?On the other hand (using an article from the library?s full-text databases), discuss an example of how decisions in a marketing plan led to failure. ?Analyze what was different in the 2 examples. This section of the paper should be at least 2 pages in length. In a marketing plan, objectives are created that can be used to gauge progress. You can have some fun with the concept. Movie studios pay stars a lot of money to star in what they hope is a blockbuster. But as you know, there are lots of box office failures. Consider the following: ?Using an Internet search, find a movie that failed. Provide a quick overview of why the movie was considered a failure. ?Applying what you have learned about the concept of market plans, extrapolate what could have gone wrong in the studio?s plan with regard to forecasting demand for the project. This section should be at least 2 pages in length. The assignment requires the use of articles from the library?s full-text databases. Articles are found in periodicals. These are not to be confused with eBooks or reference books. The most popular databases in marketing are: ABI Inform Global, Academic Search Premier, and Business Source Premier. Your report MUST include a reference list. All research should be cited in the body of the paper. In-text citations and corresponding references should be included in your paper. For more information on APA, please visit the APA Lab. The paper should be written in third person; this means words like ?I?, ?we?, and ?you? are not appropriate. The use of direct quotes is discouraged, but may be used sparingly in appropriate situations. Your assignment should contain a cover page, an abstract page, and a reference page (in addition to the body). The body of the paper should be 4?5 pages in length, starting with a brief 1-paragraph introduction and ending with a short conclusion. The entire submission will be 7?8 pages in length. Click here to view the assignment grading guidelines. ******************************************************************************** Background on Course Research Requirements In the business world, it is important to use research to strengthen points that you make in presentations and projects. You will see references to using specific databases throughout this course. Research is a crucial skill in marketing, and learning to use the search functions in these databases is about critical thinking, which complements other research techniques you have used prior to the class. There are 2 main types of databases accessible in the library through ?FIND ARTICLES & BOOKS.? Keep in mind that the most popular databases for marketing articles are: ABI Inform Global, Academic Search Premier, and Business Source Premier. You will be focusing on these databases that contain articles rather than those with reference materials like eBooks. As a college student, you must steer away from inferior Web sites with anonymous writers. For the basic definitions, your textbook should be used. Do not use old texts or books. Acceptable Internet resources include government sites (especially for statistics); Web sites for associations; and company Web sites when you are researching a company or product. Think of classes this way: If you decided to go for a bachelor's degree, why would you rely on what you already knew before you started the program? Should you not add to your knowledge base by going out and researching? You are not permitted to use Wikipedia or any open source Web site in this course. The goal is for you to acquire new research skills in this class. Almost everyone is adept at an Internet search, but most of you are not yet comfortable using the library?s article databases. This month, you will have the opportunity to discover what a great resource you may have been missing. Please submit your assignment as a Word document in APA format using the attached TEMPLATE. For assistance with your assignment, please use your text, Web resources, and all course materials.
Question 5
1. Chapter 1?Introduction to Accounting and Business Question MC #4 (Points: 3) An entity that is organized according to state or federal statutes and in which ownership is divided into shares of stock is a 1. partnership 2. proprietorship 3. corporation 4. governmental unit Save Answer 2. Chapter 1?Introduction to Accounting and Business Question MC #61 (Points: 3) How does paying a liability in cash affect the accounting equation? 1. assets increase; liabilities decrease 2. assets increase; liabilities increase 3. assets decrease; liabilities decrease 4. liabilities decrease; owner's equity increases Save Answer 3. Chapter 1?Introduction to Accounting and Business Question MC #97 (Points: 3) The unit of measure concept: 1. requires that economic data be reported in yen in Japan or dollars in the U.S. 2. is only used in the financial statements of manufacturing companies. 3. is not important when applying the cost concept. 4. requires that different units be used for assets and liabilities. Save Answer 4. Chapter 1?Introduction to Accounting and Business Question MC #25 (Points: 3) Which of the following are guidelines for behaving ethically? I. Identify the consequences of a decision and its effect on others. II. Consider your obligations and responsibilities to those affected by the decision. III. Identify your decision based on personal standards of honesty and fairness. 1. I and III. 2. II and III. 3. I, II, and III. 4. I and II. Save Answer 5. Chapter 1?Introduction to Accounting and Business Question MC #50 (Points: 3) The monetary value charged to customers for the performance of services sold is called a(n) 1. net income 2. capital 3. revenue 4. asset Save Answer 6. Chapter 1?Introduction to Accounting and Business Question MC #2 (Points: 3) Most businesses in the United States are 1. corporations 2. sole proprietorships 3. separate entities 4. partnerships Save Answer 7. Chapter 1?Introduction to Accounting and Business Question TF #43 (Points: 3) Receiving payments on an account receivable increases both equity and assets. 1. False 2. True Save Answer 8. Chapter 2?Analyzing Transactions Question TF #16 (Points: 3) The process of recording a transaction in the journal is called journalizing. 1. True 2. False Save Answer 9. Chapter 2?Analyzing Transactions Question MC #89 (Points: 3) March 6 Cash 375 Unearned Fees 375 ???????????? 1. Received cash for services to be performed in the future. 2. Received cash for services performed 3. Paid cash in advance for services to be done. 4. Paid cash for services to be performed. Save Answer 10. Chapter 2?Analyzing Transactions Question TF #47 (Points: 3) Owner?s capital will be reduced by the amount in the drawing account. 1. False 2. True Save Answer 11. Chapter 2?Analyzing Transactions Question MC #31 (Points: 3) Which of the following entries records the investment of cash by Ron York, owner of a proprietorship? 1. debit Cash; credit Ron York, Drawing 2. debit Cash; credit Ron York, Capital 3. debit Ron York, Drawing; credit Cash 4. debit Ron York, Capital; credit Accounts Receivable Save Answer 12. Chapter 2?Analyzing Transactions Question TF #54 (Points: 3) Journal entries can have more than two accounts as long as the debits equal the credits. 1. False 2. True Save Answer 13. Chapter 2?Analyzing Transactions Question MC #97 (Points: 3) The chart of account for the Corning Company includes some of the following accounts: Account Name Account Number Cash 11 Accounts Receivable 13 Prepaid Insurance 15 Accounts Payable 21 Unearned Revenue 24 Corning, Capital 31 Corning, Drawing 32 Fees Earned 41 Salaries Expense 54 Rent Expense 56 On the journal page 3, the following transaction was found: Prepaid Insurance 1,530 Cash 1,530 What is the post reference that will be found on the Prepaid Insurance account? 1. 15 2. None 3. 11 4. 3 Save Answer 14. Chapter 2?Analyzing Transactions Question MA #1-8 (Points: 3) Several types of errors can be made during the journalizing and posting process. Match the following with their best description. Column preview Balance incorrectly computed. Posting errors Debit or credit posting omitted. Account balance errors Wrong amount posted to an account. Trial balance preparation errors Column incorrectly added. Balance entered in wrong column of account. Amount incorrectly entered on trial balance. Balance entered in wrong column or omitted. Debit posted as credit, or vice versa. Matching pairs Balance incorrectly computed. Debit or credit posting omitted. Wrong amount posted to an account. Column incorrectly added. Balance entered in wrong column of account. Amount incorrectly entered on trial balance. Balance entered in wrong column or omitted. Debit posted as credit, or vice versa. Save Answer 15. Chapter 3?The Adjusting Process Question TF #33 (Points: 3) Depreciation Expense is reported on the balance sheet as an addition to the related asset. 1. False 2. True Save Answer 16. Chapter 3?The Adjusting Process Question MC #47 (Points: 3) If there is a balance in the prepaid rent account after adjusting entries are made, it represents a(n) 1. liability 2. accrual 3. revenue 4. deferral Save Answer 17. Chapter 3?The Adjusting Process Question TF #24 (Points: 3) Adjustments for accruals are needed to record a revenue that has been earned or an expense that has been incurred but not recorded. 1. True 2. False Save Answer 18. Chapter 3?The Adjusting Process Question MC #36 (Points: 3) The adjusting entry to record the depreciation of equipment for the fiscal period is 1. debit Accumulated Depreciation; credit Depreciation Expense 2. debit Equipment; credit Depreciation Expense 3. debit Depreciation Expense; credit Equipment 4. debit Depreciation Expense; credit Accumulated Depreciation Save Answer 19. Chapter 3?The Adjusting Process Question MC #18 (Points: 3) Which of the following supports the accrual basis of accounting? 1. matching concept 2. cash concept 3. revenue recognition and matching concepts 4. revenue recognition concept Save Answer 20. Chapter 3?The Adjusting Process Question MC #83 (Points: 3) All of the following statements regarding vertical analysis are true except: 1. In a vertical analysis of a balance sheet, each asset item is stated as a percent of total assets. 2. Vertical analysis may be prepared for several periods to analyze changes in relationships over time. 3. Major differences between a company?s vertical analysis and industry averages should be investigated. 4. In a vertical analysis of an income statement, each item is stated as a percent of total expenses. Save Answer 21. Chapter 3?The Adjusting Process Question TF #5 (Points: 3) The matching concept requires expenses be recorded in the same period that the related revenue is recorded. 1. True 2. False Save Answer 22. Chapter 4?Completing the Accounting Cycle Question TF #73 (Points: 3) Accounts reported on the balance sheet that are carried forward from year to year are known as permanent accounts. 1. False 2. True Save Answer 23. Chapter 4?Completing the Accounting Cycle Question TF #74 (Points: 3) Real accounts are not permanent accounts. 1. True 2. False Save Answer 24. Chapter 4?Completing the Accounting Cycle Question MC #21 (Points: 3) The Balance Sheet should be prepared 1. after the income statement and the statement of owner?s equity 2. before the income statement and after the statement of owner?s equity 3. after the income statement and before the statement of owner?s equity 4. before the income statement and the statement of owner?s equity Save Answer 25. Chapter 4?Completing the Accounting Cycle Question TF #33 (Points: 3) The drawing account is closed to the income summary account. 1. False 2. True Save Answer 26. Chapter 4?Completing the Accounting Cycle Question TF #12 (Points: 3) Cash and other assets that may reasonably be expected to be realized in cash, sold, or consumed through the normal operations of a business, usually longer than one year, are called current assets. 1. False 2. True Save Answer 27. Chapter 4?Completing the Accounting Cycle Question MC #19 (Points: 3) Use the following information in the adjusted trial balance for Stockton Company to answer the following questions. Stockton Company Adjusted Trial Balance For the Year ended December 31, 2010 Cash $ 6,030 Accounts Receivable 2,100 Prepaid Expenses 700 Equipment 13,700 Accumulated Depreciation $ 1,100 Accounts Payable 1,900 Notes Payable 4,200 Bob Steely, Capital 12,940 Bob Steely, Withdrawals 790 Fees Earned 8,750 Wages Expense 2,500 Rent Expense 1,960 Utilities Expense 775 Depreciation Expense 250 Miscellaneous Expense 85 Totals $28,890 $28,890 Determine the current assets. 1. $8,830 2. $22,530 3. $21,430 4. $8,130 Save Answer 28. Chapter 4?Completing the Accounting Cycle Question MC #5 (Points: 3) When preparing the statement of owner's equity, the beginning capital balance can always be found 1. in the Income Statement columns of the work sheet 2. in the Balance Sheet columns of the work sheet 3. in the general ledger 4. in the statement of cash flows Save Answer 29. Chapter 4?Completing the Accounting Cycle Question MC #53 (Points: 3) Use the following worksheet to answer the following questions. Finley Company Worksheet For the Year Ended December 31, 2010 Adjusted Trial Balance Income Statement Balance Sheet Account Title Debit Credit Debit Credit Debit Credit Cash 48,000 48,000 Accounts Receivable 18,000 18,000 Supplies 6,000 6,000 Equipment 57,000 57,000 Accumulated Depr-Equip 18,000 18,000 Accounts Payable 30,000 30,000 Wages Payable 6,000 6,000 C. Finley, Capital 33,000 33,000 C. Finley, Drawing 3,000 3,000 Fees Earned 141,000 141,000 Wages Expense 63,000 63,000 Rent Expense 18,000 18,000 Depreciation Expense 15,000 15,000 Totals 228,000 228,000 96,000 141,000 132,000 87,000 Net Income (Loss) 45,000 45,000 141,000 141,000 132,000 132,000 Based on the preceding trial balance, the entry to close C. Finley, Drawing would be: 1. debit C. Finley, Capital $3,000, credit C. Finley, Drawing $3,000 2. debit C. Finley, Drawing $3,000; credit C. Finley, Capital $3,000 3. debit C. Finley, Drawing $12,000; credit C. Finley, Capital $12,000 4. debit C. Finley, Capital $12,000, credit C. Finley, Drawing $12,000 Save Answer 30. Chapter 4?Completing the Accounting Cycle Question TF #41 (Points: 3) A post-closing trial balance should be prepared before the financial statements are prepared. 1. False 2. True Save Answer 31. Chapter 5?Accounting Systems Question MC #22 (Points: 3) Each individual entry in the Revenue Journal is posted to 1. the Accounts Receivable controlling account 2. the Revenue controlling account 3. the accounts receivable subsidiary ledger 4. the accounts receivable subsidiary ledger and the controlling account Save Answer 32. Chapter 5?Accounting Systems Question MC #67 (Points: 3) The flow of data in a computerized accounting information system is 1. authorization, database, transaction, reports 2. transaction, database, authorization, reports 3. reports, transaction, authorization, database 4. authorization, transaction, database, reports Save Answer 33. Chapter 5?Accounting Systems Question MC #16 (Points: 3) A purchase of supplies for cash is recorded in the 1. Cash Payments journal 2. Cash Receipts journal 3. Revenue journal 4. Purchases journal Save Answer 34. Chapter 5?Accounting Systems Question MC #73 (Points: 3) Companies requesting quotes from vendors for the purchase of supplies is known as 1. reverse auction. 2. C2V. 3. shopping. 4. supply chain management. Save Answer 35. Chapter 5?Accounting Systems Question TF #7 (Points: 3) Most accounting systems evolve as the business grows and requires changes in their methods for collecting, accumulating, and reporting information. 1. True 2. False Save Answer
