Question 1
Chem Corp is a textile manufacturer that makes cloth for clothing manufacturers. Chem has been a privately held company however the steady growth is enabling Chem Corp expand. Chem Corp plans to go public by publically selling shares of company stock in to generate cash to fund growth. After the stock sale, Chem Corp will be a publicly held company and will need to meet SEC financial statement reporting requirements. Chem Corp?s management accountant must now prepare Absorption Costing Income Statements to support the new external reporting requirements. Additionally, the decision must be made as to how internal performance evaluations will be made on department performance. Chem?s management has asked the management accountant to prepare the following income statements for comparison: Variable Costing and Absorption (Full) Costing for each of the last two years. Partial Performance Reports for the two most recent of periods are included. Additional information includes: production for year 1 = 53,200 units. Production for year 2 = 49,500 units. There was no beginning inventory in year 1. Required: Complete each of the following questions. For problems: show your work, provide labels and descriptions of amounts, be organized in your work and clearly show your solution to the question. When asked to ?Explain? your answer should be a minimum of 50 words supported by course content information and details for full credit. 1. Prepare ?actual? income statements for each year (years 1 and 2) using Variable Costing. 2. Prepare ?actual? income statements for each year (years 1 and 2) using Absorption Costing. 3. If you are the production manager, which method do you prefer for evaluation of your performance, Variable or Absorption? Explain your answer from the perspective of the production manager. 4. What do variable and absorption income statements have to do with the chapter title: ?Incentive to Overproduce?? Explain your answer from the perspective of top management. 5. What do you recommend as Chem Corp?s performance evaluation method to achieve goal congruence? Explain your answer. Chem Corp Performance Report of Revenue & Costs For the fiscal year ended Year 1 Flex Bud Flexible Sales Volume Static Actual Variance Budget Variance Budget Units sold 5 0,000 - 5 0,000 ( 3,300) 5 3,300 Revenues 12,250,000 (250,000) 12,500,000 (825,000) 13,325,000 Variable Costs: Direct Materials 4,256,000 (506,000) 3,750,000 2 47,500 3,997,500 Direct Labor 2,394,000 1 06,000 2,500,000 1 65,000 2,665,000 Var Manufacturing 1,596,000 (96,000) 1,500,000 9 9,000 1,599,000 Var Sell & Admin 7 50,000 - 7 50,000 4 9,500 7 99,500 Fixed Costs Manufacturing 2 60,000 (10,000) 2 50,000 - 2 50,000 Sell & Admin 5 0,000 - 5 0,000 - 5 0,000 Total Costs 9,306,000 (506,000) 8,800,000 5 61,000 9,361,000 For the fiscal year ended Year 2 Flex Bud Flexible Sales Volume Static Actual Variance Budget Variance Budget Units sold 5 1,500 - 5 1,500 ( 2,000) 5 3,500 Revenues 12,617,500 7 0,596 12,546,904 (828,096) 13,375,000 Variable Costs: Direct Materials 3,960,000 (195,929) 3,764,071 2 48,429 4,012,500 Direct Labor 2,227,500 2 81,881 2,509,381 1 65,619 2,675,000 Var Manufacturing 1,485,000 2 0,629 1,505,629 9 9,371 1,605,000 Var Sell & Admin 7 72,500 (19,686) 7 52,814 4 9,686 8 02,500 Fixed Costs Manufacturing 2 60,000 (10,000) 2 50,000 - 2 50,000 Sell & Admin 5 0,000 - 5 0,000 - 5 0,000 Total Costs 8,755,000 7 6,895 8,831,895 5 63,105 9,395,000
Question 2
Need to submit the research paper on the following topic: What is the importance of communicating a new strategic vision and purpose to every member of the organization in a small instructor training company after changing leadership. The following instructions come with the paper. Quality control your project to ensure the minimum criteria discussed in the syllabus for the project report have been met. These minimum criteria are 25-30 pages content (which includes all chapters of the report: problem identification, research methodology, literature review, results, recommendations, and conclusions) and at least 15 to 20 references and citations. Be certain you are only using APA form and style and remember change the verbs to reflect "past tense" because the project is completed and you are now reporting the findings. Check that you are not using the first person (I, me) in the report This is the flow that I had for the paper as it was originally geared toward the military. This researcher makes an attempt to discover and close the gap that exist from Commander to Commander by establishing a dialogue among past, present and future commanders. In addition, highlighting issues that need extra attention by the Army leadership and the benefits of communicating the strategic vision. Also, once the publication has been promoted and published the research has aspirations to make the publication an official part of Army doctrine. This research will be published once complete on various military print and digital publications to include: Military Review, Armor Magazine, www.armytoolbag.com, www.companycommand.mil, www.Us.army.mil. The Army currently has multiple schools that will benefit from this research: Basic Officer Leadership Course, Captain?s Career Course, and Officer Candidate School. Hypothesis: Company Commanders typically are in command from 12-18 months. The Command is broken up into three month increments: The first 90 days are the grace period, the next 90 days are when systems are established and the remaining 6 ? 12 mos are the actual command time. The problems that exist with being a commander result from having subordinates that are operating under the system of the previous commander. The vision of the new commander must be communicated immediately upon taken command because it has been shown that it typically takes 6 mos to have the members of the company unlearn the previous system and begin to work in the system of the new commander. The commander must also understand his/her worth and be able to communicate effectively to his subordinates. Once the subordinates understand the purpose behind the vision then there will be less resistance to management and training. In Headquarter and Headquarters Company the members of the team the Small Group Advisors were used to being micromanaged by the previous commander and did not understand how to operate once the current commander decentralized the decision making process and made them more valuable. As a result the trainees complained to the current commander regarding the inability of the SGAs to make simple decisions. The psychology of the decision making and the training were also being hindered by members under the old regime that were comfortable doing things the way that they had always been done. It was not until those members had moved on that the systems could be effectively communicated and implemented. The importance of communicating the strategic vision and purpose to every member of the organization is the fact that it provides buy-in to the overall strategy that increases synergy throughout the organization and among team members. Synergy leads to reciprocating systems and the establishment of standard operating procedures and system refinement known by all members of the organization. The Small Group Advisor does not understand his worth and is ineffective without knowing where he/she fits in the overall strategy. The Small Group Instructor. The Small Group Instructor is the most important person in the organization. He/she is responsible for ensuring that all training is completely understood by the trainees prior to their deployment to Iraq or Afghanistan in support of overseas contingency operations. In order for this to happen the SGA must understand his/her role and have it effectively communicated to him. The training that the SGA receives traditionally is on the job training however in the Headquarters and Headquarters Company, the training was standardized using the crawl, walk, run method with the following issues being the cornerstones of training: ? SGA Readiness (Crawl) ? SGA Standard operating procedure (Walk) ? SGA Murder board (Walk) ? SGA leads a class with minimum assistance from the lead SGA (Run) The SGA readiness in the crawl phase ensures that the SGA has the basic skills in order to set the proper example for the trainees and to prevent distractions from training. The SGA must show up initially arriving to the unit that he/she has had the proper vaccinations, dental screenings, physical fitness test, and weapons training that it takes to be a basic Soldier in the Army. Additionally he must conduct an interview with the resident psychologist to determine whether or not he/she is fit for office duty or field duty. If it is deemed that he is fit for duty he will be assigned as a part of a team and then that team will determine where the SGA will be placed with regard to the make up of the teams. If it is deemed that the individual is not ready for . that it takes to be maintained in the US Army. Such as, up to date records to include: shots, dental, medical, and weapons qualifications. SGA Standard operating procedures SGA Murder board SGA class lead Company Systems Company systems must be understood by every person in the organization to maintain reciprocal systems and therefore enabling the company to always be prepared for contingencies. The company is divided into three major entities: Headquarters Headquarters Company Headquarters Headquarters SGA Platoon Job training Staff training Company HQ training SGA training Subordinates must be trained for their jobs in order to be effective at the job. Conclusion Recommendations
Question 3
"3. Company X wants to borrow $10,000,000 floating for 5 years; company Y wants to borrow $10,000,000 fixed for 5 years. Their external borrowing opportunities are shown below: A swap bank proposes the following interest only swap:??X will pay the swap bank annual payments on $10,000,000 with the coupon rate of LIBOR - 0.15%; in exchange the swap bank will pay to company X interest payments on $10,000,000 at a fixed rate of 9.90%. Y will pay the swap bank interest payments on $10,000,000 at a fixed rate of 10.30% and the swap bank will pay Y annual payments on $10,000,000 with the coupon rate of LIBOR - 0.15%. What is the value of this swap to the swap bank? ?? A. The swap bank will lose 40 basis points per year on $10,000,000 = $40,000 per year.? B. The swap bank will earn 40 basis points per year on $10,000,000 = $40,000 per year.? C. The swap bank will break even.? D. None of the above 4. Company X wants to borrow $10,000,000 floating for 5 years; company Y wants to borrow $10,000,000 fixed for 5 years. Their external borrowing opportunities are shown below: A swap bank is involved and quotes the following rates five-year dollar interest rate swaps at 10.05%-10.45% against LIBOR flat. Assume both X and Y agree to the swap bank's terms. Fill in the values for A, B, C, D, E, & F on the diagram.? A. = LIBOR; B = 10.45%; C = 10.05%; D = LIBOR; E = LIBOR; F = 12%?B. A = 10%; B. = 10.45%; C = 10.05%; D = LIBOR; E = LIBOR; F = LIBOR + 1?%? C. A = 10%; B = 10.45%; C = LIBOR; D = LIBOR; E = 10.05%; F = LIBOR + 1?%? D. A = 10%; B = LIBOR; C = LIBOR; D = 10.45%; E = 10.05%; F = LIBOR + 1?%? I need for you to include the calculus neede to answer each question please, thank you,Rachel, PLEASE!!! I really need this by tonight!! I know it?s not alot of time but PLEASE!!! Thank you!!,Fixed Rate Borrowing cost: Company X: 10% Company y: 12% Floating rate borrowing cost: Company x:LIBOR Company Y:LIBOR +1.5% THANKS!!,I cant seem to paste the diagram!! I will attach the document,I appreciate it alot!,My friend with username: gaby.sfara lost contact with you. I believe she asked for the calculus for questions 1 and 2 of the same document. Is there any chance you could send them on this same work or is there a way she can get in contaqct with you again? Thanks,Thank you very much, Do you know anything on the calculus for questions 1 and 2?? My friend sent you that question but I think she only got the answer by itself. She is username: gaby.sfara
Question 5
Can you look over this for me please. I put my answers in but want to make sure I'm as accurate as I can be. Thank you! Wayne Terrago, controller for Robbin Industries, was reviewing production cost reports for the year. One amount in these reports continued to bother him?advertising. During the year, the company had instituted an expensive advertising campaign to sell some of its slower-moving products. It was still too early to tell whether the advertising campaign was successful. There had been much internal debate as how to report advertising cost. The vice president of finance argued that advertising costs should be reported as a cost of production, just like direct materials and direct labor. He therefore recommended that this cost be identified as manufacturing overhead and reported as part of inventory costs until sold. Others disagreed. Terrago believed that this cost should be reported as an expense of the current period, based on the conservatism principle. Others argued that it should be reported as Prepaid Advertising and reported as a current asset. The president finally had to decide the issue. He argued that these costs should be reported as inventory. His arguments were practical ones. He noted that the company was experiencing financial difficulty and expensing this amount in the current period might jeopardize a planned bond offering. Also, by reporting the advertising costs as inventory rather than as prepaid advertising, less attention would be directed to it by the financial community. Instructions (a) Who are the stakeholders in this situation? The stakeholders are Wayne Terrago, the vice president, and the president. (b) What are the ethical issues involved in this situation? I believe the ethical issues are that no one could determine how to report the advertising cost. The other ethical issue was that the president decided to report the advertising costs as inventory, to bring less attention to this by the financial community. THis is unethical because it can affect the stakeholders, and this could also lead to future unethical decisions. (c) What would you do if you were Wayne Terrago? Since Wayne Terrago's job is to make sure the company's financial books are prepared correctly, the finances are documented correctly, that money due to the company is collected, and make sure company expenses are paid he needs to report the costs correctly. Even though the president said to report it as inventory, it should be reported as an expense. If he reports the advertising costs wrong, later on it could lead to him being fired. He could also be fired for not doing what the president said to do, but better to be fired for being honest. As far as the company experiencing financial difficulty, this is the risks that many companies take and should not be an excuse to report advertising cost wrongfully.
