Question 1
Below is a copy of the PDF questions, attached is the PDF with questions. Thanks for your time. Homework Ch 1: Four Problems: Problem 1: Panda obtained 100% of Snail?s outstanding common stock on January 1, 2010, by issuing 1,000,000 shares of $15 par value common stock. Panda?s shares had a $75 per share fair value. Snail?s book value is $10 million. Book and fair values are the same except for equipment with fair value $15 million higher than book value. Snail has unreported identifiable intangibles valued at $4 million. Assume that Panda uses the equity method to account for its investment. Snail reports net income of $5 million and declares and pays cash dividends of $1 million to Panda in 2010. Revalued equipment has a remaining life of 20 years. Identifiable intangibles have 4 years of remaining life. Straight-line depreciation and amortization is used. Goodwill is not impaired. Panda prepares its internal reporting for the year ending December 31, 2010. Required: 1) Record the purchase of equity investment on 1/1/2010. 2) Allocate Panda?s acquisition costs and determine the amount attributable to goodwill, if any. 3) What is Panda?s Equity in Income balance in Snail for 2010? 4) Record Panda?s share of Snail?s net income in 2010. 5) Record Panda?s share of dividends received from Snail in 2010. 2 Problem 2: Pipe acquires 80% of Slippers on January 1, 2010 and uses the equity method to account for its investment in Slippers. On January 2, 2010, Pipe sells equipment with a 10-year remaining life and an original cost of $5 million to Slippers for $4,500,000. Accumulated depreciation on the transfer date was $2 million. Assume the equipment was sold to an outside party on 1/2/ 2012 for $3.8 million. Required: Prepare 2011 and 2012 entries related to this equipment for Pipe and Slippers in their internal record. Problem 3: Pipe acquires 80% of Slippers on January 1, 2010 and uses the equity method to account for its investment in Slippers. In 2010, Slippers sells land costing $2,000,000 to Pipe for $2,300,000. Pipe still holds the land at the end of 2011. Assume the land is sold to an outside party in 2012 for $3 million. Required: Prepare 2010 and 2012 entries related to this land for Pipe in its internal record.3 Problem 4: Pipe acquires 80% of Slippers on January 1, 2010 and uses the equity method to account for its investment in Slippers. Assume Pipe sells merchandise costing $1 million to Slippers during 2010. Pipe?s markup is 50% of cost. Slippers? 2010 ending inventory includes $900,000 purchased from Pipe. The $900,000 ending inventory is resold to an outside party in 2011. Slippers? markup is 20% of cost. Required: Prepare entries for Pipe in its 2010 internal record for this intra-entity inventory transfer
Question 2
Research Paper This 8-10 page Research Paper must address major problems and issues of an organization analyzed through a case study. You will assume the role of a professional manager writing to an audience of other practicing managers. Your in-depth analysis report to management will need to go through the entire process of identifying (or diagnosing), evaluating, and recommending areas for the case organization selected. Well-supported recommendations are required in your report. Be sure to "think strategically" to evaluate the organization's situation from the perspective of its competitiveness and performance prospects, and to draw sound conclusions about what actions a company's management needs to take in light of all the relevant circumstances. You will need to demonstrate an understanding of the reading assignments as well as the implications of new knowledge in your work. Focus of the Research Paper Select a case from one of five Essentials of Strategic Management text cases: 4, 5, 8, 13 or 14. First review the respective case video available in Week 5 and then carefully analyze your selected case study. At least five professional resources (other than text or case materials) are required, including a minimum of two scholarly sources from the Ashford Online Library. Outside research gives credibility to your thoughts. The Research Paper must have an Introduction and a Conclusion. Be sure to address each of the following areas for the case study organization below: ? Diagnose the company?s situation ? Size-up what problems/issues need to be addressed ? Decide what analysis to conduct to probe the identified problems and issues ? Make use of the appropriate core concepts and analytical tools in the text chapters to thoroughly describe the ins and outs of the company?s situation ? Evaluate the pros and cons of various action alternatives ? Set forth a practical, workable set of action recommendations (that are within the firm's financial means and resource capabilities) The final Research Paper for the course must be submitted to the instructor by 11:59 p.m. of the time zone in which you reside on the last day of the class. Writing the Research Paper The Research Paper: ? Must be eight to ten double-spaced pages in length and formatted according to APA style as outlined in the approved APA style guide. ? Must include a cover page that includes: ?- Title of paper -? Student?s name ?- Course name and number ?- Instructor?s name ?- Date submitted ? Must include an introductory paragraph with a succinct thesis statement. ? Must address the topic of the paper with critical thought. ? Must conclude with a restatement of the thesis and a conclusion paragraph. ? Must use at least five professional resources, including a minimum of two from the Ashford Online Library. ? Must use APA style as outlined in the approved APA style guide to document all sources. ? Must include, on the final page, a Reference Page that is completed according to APA style as outlined in the approved APA style guide. Case Videos: a. Case 4 Video: Movie Night Done Right b. Case 5 Video: How Strategy Evolves in a Large Organization: Interview with Michael Dell c. Case 8 Video: Google CEO Eric Schmidt Interview with the McKinsey Quarterly d. Case 13 Video: CVS vs. Wal-Mart: Chains Cut Generic Drug Cost e. Case 14 Video: Southwest CEO: Get to Know Gary Kelly,Cannot extend the date or time.,I am unable to extend the deadline.,extended until 10pm eastern Standard time.,trying to attach file, but it is not working.,everytime that I try to attach the document it times out.,Did you receive case 5?
Question 3
Writing Assignment: Financial Analysis In this assignment, assume you are a savvy financial analyst researching companies in which to invest. Select a U.S. publically-traded company you think might be a good investment and perform a financial analysis. Your analysis should include the following: ?Company Overview. Conduct research and describe the company, its operations, locations, markets, and lines of business. Collect financial statements for the past three (3) years, fiscal or calendar (please insert these in the appendix). These financial statements must include at least the income statement and the balance sheet. ?Evaluate the company?s vulnerability to current financial threats such as a recession, higher interest rates, and global competition. ?Financial Performance. Based on the financial trends of the company, predict how these trends will impact financial performance in future periods. Explain your rationale for this prediction. ?Stock Price Analysis. Given the performance of the stock in the periods presented on the company?s financial statements, discuss how the stock is likely to perform in the future, what type of investor would be drawn to this stock, and make a recommendation to management to improve stock performance. Submit your analysis in the form of a 6-8 page paper in which you: 1.Provide a detailed overview of a U.S. publicly traded company. This should be one to two (1-2) pages. 2.Evaluate the company?s vulnerability to current financial threats such as a recession, higher interest rates, and global competition. 3.Based on the financial trends of the company, predict how these trends will impact financial performance in future periods. Explain your rationale for this prediction. 4.Cite at least five (5) quality references. Your assignment must follow these formatting requirements: ?Be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides; citations and references must follow APA or school-specific format. Check with your professor for any additional instructions. ?Include a cover page containing the title of the assignment, the student?s name, the professor?s name, the course title, and the date. The cover page and the reference page are not included in the required assignment page length. The specific course learning outcomes associated with this assignment are: ?Critique financial management strategies that support business operations in various market environments. ?Estimate the risk and return on financial investments. ?Apply financial management options to corporate finance. ?Use technology and information resources to research issues in financial management. ?Write clearly and concisely about financial management using proper writing mechanics
Question 4
Frank Delaney owned and operated Delaney Motors, a General Motors automobile dealership in Ohio. Its operations consisted of new-car sales, used-car sales, parts sales, vehicle lease and rentals, vehicle service, and automobile body repairing and repainting. The dealership was profitable, earning almost 5 percent on sales, but the reported profit on the body shop operation seemed low to Mr. Delaney. Consequently, he engaged a consultant to study the body shop operation and make recommendations. As a background for his study, the consultant took Mr. Delaney?s data for the most recent year and made certain adjustments, shown in Exhibit 1 (attached). He explained them in the following paragraphs taken from his report: Most semi-variable costs contain a significant portion of common costs. For example, the accountant performs many common services in order to maintain the corporate structure (e.g. preparing and filing the dealer?s tax returns). The attorneys and the owner also spend much of their time providing general services. Although many of the expenses would not be significantly reduced if the owner sold certain departments, each department benefits from these expenses, and thus should be allocated a portion of these costs. The body shop, for example, should pay its proportionate share of accountant?s fees relating to the preparation and filing o the dealership?s income tax returns. Telephone expenses and the fixed costs could properly be allocated to the departments if the necessary documentation were available. Since it is not, other cost allocation methods must be considered. A potentially controversial issue involves the owner?s salary. The body shop manager could claim that because he exercises no control over the owner?s salary, this cost should not be charged to his department. The owner puts his time and name in all aspects of the business, however, and his salary should be allocated accordingly. Furthermore, industry data show that owners? salaries tend to vary with sales volume. Semi-variable costs can be allocated to operating departments in several ways, thereby better appraising departmental and managerial performance. These bases include units of production, machine-hours, material costs, sales dollars, direct labor costs, and direct labor-hours. Valid cost allocation bases reliably relate semi-variable costs to the basis used for the allocation. Because the operating departments product heterogeneous products that require dissimilar materials and machines (the new-car and used-car departments probably use no machines), the first three allocation bases ? units of production, machine-hours, and material costs ? clearly are inappropriate. Sales dollars also are an invalid cost allocation basis. For example, the cost of sales ratio on a $9,000 new automobile usually exceeds the cost of sales ratio for a $1,000 body shop repair, thereby implying an unequal allocation basis. Direct labor costs do constitute a valid cost allocation basis in companies in which semi-variable costs are labor related (i.e., the operations are predominantly manual) and hourly rates among and within departments are fairly uniform. But because the dealership?s semi-variable costs are not labor related and the hourly rates are usually not uniform, direct labor costs do not constitute a competent activity basis for your company. Direct labor-hours will provide an acceptable cost allocation base. Although some semi-variable costs do not vary directly with direct labor-hours, such as legal and audit fees, in the interest of practicality and because the other methods clearly are not acceptable, allocating semi-variable costs based on direct labor-hours appears to be the most variable alternative. Your financial statements list the number of direct and indirect employees in each department but fail to disclose the number of departmental hours worked. It is assumed that all direct employees work approximately the same number of hours per week. The number of direct laborers consequently becomes the cost allocation base for semi-variable costs. As discussed later, fixed costs are allocated based on the ratio of departmental square footage to total dealer square footage, adjusted by a weighting factor. Calculations A summary of the selected data extracted from your financial statements is shown in Exhibit 1 (attached). The body shop?s and dealership?s semi-variable costs are shown in lines 7 and 11, respectively. Semi-variable cost allocations are based upon direct labor-hours, assuming that each employee works the same number of hours per week. In line 13 the number of body shop employees performing the direct labor work is divided by the total number of employees for the entire dealership. Based on this method, the increase in semi-variable costs, as seen in line 15, shows that you have under-allocated overhead to the body shop manager, whose bonus includes a portion of his department?s profit. The cost accounting system therefore should be changed to more accurately reflect each department?s use of dealership resources. Fixed costs for the body shop and the dealership are summarized in lines 16 and 17. The quotient of these two amounts appears in line 18. In line 19 the revised allocation of fixed costs is shown. Many GM dealers allocate fixed costs to the body shop based on the ratio of body shop square footage to dealer?s total square footage. This allocation base accurately allocates fixed building costs but fails to account for the various machinery, equipment, furniture, and fixtures located throughout the dealership. To allocate these fixed costs more properly, ?weights,? similar to those developed by Volkswagen, should be used. Volkswagen dealers multiply the square footage of each dealership segment by a value factor to weight the proper distribution of fixed costs. For example, used vehicles and body shop weights are 2.4 and 1.0, respectively. Assuming that these weights also apply to you, you should reduce your allocation to the body shop to 20 percent. Line 19 thus represents this 20 percent balance of the dealership?s fixed costs. Lines 21 through 25 summarize the findings. The revised cost allocations decrease the body shop?s profits from 2.94 percent of sales to 0.30 percent of sales. The consultant had collected data similar to that shown in Exhibit 1 for 11 other dealerships. Summary data for three of these are shown at the bottom of Exhibit 1. They are arranged in order of the body shop profit percentage (line 25): Dealer No. 3 had the third highest percentage, Dealer No. 6 was in the middle, and Dealer No. 9 was third from the bottom. The consultant pointed out that the body shop was even less profitable than Mr. Delaney had thought, and he suggested that Mr. Delaney consider selling it, leasing it to another party, increasing prices, or, if the body shop demand was thought to be elastic, lowering prices. He pointed out that selling or leasing the body shop would permit Mr. Delaney to devote more time to other areas of the dealership. Mr. Delaney considered this recommendation, but he was by no means sure that profitability should be the major consideration. He felt that the dealership had an obligation to provide high-quality body shop work to its customers, and that a lessee might provide below-standard service. He was not sure that prices could be raised, but asked the consultant to find out more about the prices charged by competitive dealers before making a judgment on this. Questions ? 1. Comment on the consultant?s adjustments made in Exhibit 1. Do you agree with each of them? If not, can you suggest better methods of making the adjustments for the stated purpose? 2. Assuming Mr. Delaney decides to keep the body shop, and the consultant reports that it is feasible to raise prices, should Mr. Delaney do so? If he does, what general guide can you suggest as to how much price should be increased? 3. What action should Mr. Delaney take? (**Please note Exhibit 1 is attached in excel format.) Thanks for your help :)
Question 5
"Many companies make annual reports available on their corporate Internet home page. Anuual reports also can be accessed through the SEC'S Edgar system at www.sec.gov (under fling type search for 10-K). Acccess the most recent annual report for a U.S.-based multinational company which you are familiar. A. Identify the location(s) in the annual report that provided the disclosures related to the translation of foreign currency financial statements and foreign currency hedging. B. Determine where the company's foreign operation have a predominant functional currency. C. Determine the amount of re measurement gain or loss, if any, reported in net income in each of the three most recent years. d. Determine the amount of translation adjustment, if any, reported in other comprehensive income in each of the three most recent years. Explain the sign (positive or negative) of the translation adjustment in each of three most recent years. E. Determine where the company hedges net investment in foreign operations. If so, determine the type (s) of hedging instrument used." Please explain and workout the problems.,Will the assignment be done by the deadline?,Is this an original document that you created or has this been used as a template?,Wherever possible, reference the amounts in your answers to the specific pages of the annual report from which you will derive them so you can show me clearly where you derive the answers from.
