Question 1
Becky Hoefer, the plant manager of Travel Far?s Indiana plant, is responsible for all of that plant?s costs other than her own salary. The plant has two operating departments and one service department. The camper and trailer operating departments manufacture different products and have their own managers. The office department, which Hoefer also manages, provides services equally to the two operating departments. A budget is prepared for each operating department and the office department. The company?s responsibility accounting system must assemble information to present budgeted and actual costs in performance reports for each operating department manager and the plant manager. Each performance report includes only those costs that a particular operating department manager can control: raw materials, wages, supplies used, and equipment depreciation. The plant manager is responsible for the department managers? salaries, utilities, building rent, office salaries other than her own, and other office costs plus all costs controlled by the two operating department managers. The annual departmental budgets and actual costs for the two operating departments follow. Budget Actual Campers Trailers Combined Campers Trailers Combined Raw materials $ 160,000 $ 250,000 $ 410,000 $ 159,400 $ 246,500 $ 405,900 Employee wages 99,000 191,000 290,000 102,300 193,700 296,000 Dept. manager salary 40,000 44,000 84,000 41,000 47,000 88,000 Supplies used 34,000 83,000 117,000 31,900 84,600 116,500 Depreciation?Equip. 58,000 110,000 168,000 58,000 110,000 168,000 Utilities 2,800 4,200 7,000 2,700 3,800 6,500 Building rent 5,000 8,000 13,000 4,800 7,200 12,000 Office department costs 56,000 56,000 112,000 54,450 54,450 108,900 Totals $ 454,800 $ 746,200 $ 1,201,000 $ 454,550 $ 747,250 $ 1,201,800 The office department?s annual budget and its actual costs follow. Budget Actual Plant manager salary $ 60,000 $ 62,000 Other office salaries 30,000 27,700 Other office costs 22,000 19,200 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Totals $ 112,000 $ 108,900 Required: 1. Prepare responsibility accounting performance reports that list costs controlled by the following. In each report, include the budgeted and actual costs and show the amount that each actual cost is over or under the budgeted amount. (Leave no cells blank - be certain to enter "0" wherever required. Negative amounts should be indicated by a minus sign. Omit the "$" sign in your response.) a. Manager of the camper department. Responsibility Accounting Performance Report Manager, Camper Department For the year -------------------------------------------------------------------------------- Budgeted Amount Actual Amount Over (Under) Budget Controllable Costs (Click to select)Office department costsRaw materialsDept. manager salaryBuilding rentUtilities $ $ $ (Click to select)Employee wagesOffice department costsUtilitiesBuilding rentSupplies manager salary (Click to select)Supplies manager salaryAccumulated depreciationDept. manager salarySupplies usedBuilding rent (Click to select)Building rentDept. manager salaryAccumulated depreciationDepreciation-EquipmentOffice department costs Totals $ $ $ b. Manager of the trailer department. Responsibility Accounting Performance Report Manager, Trailer Department For the year -------------------------------------------------------------------------------- Budgeted Amount Actual Amount Over (Under) Budget Controllable Costs (Click to select)UtilitiesDept. manager salaryRaw materialsOffice department costsBuilding rent $ $ $ (Click to select)Office department costsBuilding rentSupplies manager salaryUtilitiesEmployee wages (Click to select)Supplies usedAccumulated depreciationSupplies manager salaryBuilding rentDept. manager salary (Click to select)Office department costsDept. manager salaryBuilding rentAccumulated depreciationDepreciation-Equipment Totals $ $ $ c. Manager of the Indiana plant. Responsibility Accounting Performance Report Manager, Indiana Plant For the year -------------------------------------------------------------------------------- Budgeted Amount Actual Amount Over (Under) Budget Controllable Costs (Click to select)Accumulated depreciationDepreciation expenseDept. manager salariesSupplies usedSupplies manager salary $ $ $ (Click to select)Supplies usedAccumulated depreciationUtilitiesSupplies manager salarySales salaries (Click to select)Supplies usedEmployee wagesBuilding rentRaw materialsEquipment (Click to select)Supplies usedOther office salariesEquipmentAccumulated depreciationEmployee wages (Click to select)Other office costsRent expenseEmployee wagesRaw materialsSupplies used (Click to select)Supplies usedSupplies manager salaryAccumulated depreciationCamper departmentEquipment (Click to select)Sales discountsSupplies usedSales expenseTrailer departmentEmployee wages Total $ $ $
Question 2
"Access articles about the history, business approach, management, and marketing of Amazon.com and Borders Books. Amazon (primarily an online book and product sales site) started in the mid 1990s and was not profitable in the first few years but has grown and become very successful and highly profitable. By contrast, Borders bookstore, which started in 1971, was successful and profitable up until 2004. Borders filed for Chapter 11 in 2011. Write a five to six (5-6) page paper in which you: 1. Describe the history and core business of each company. 2. Compare and contrast the management approach each took to Internet marketing and sales. 3. Analyze three (3) reasons for Amazon?s success despite not turning a profit for the first five to six (5-6) years. 4. Discuss three (3) reasons Borders, although initially successful and profitable, ended up in Chapter 11. 5. Discuss the extent to which the management of each company adapted to changing market conditions. 6. Recommend three (3) ways a company should build in flexibility to back up its decision-making process so as to adapt to changing market conditions. 7. Use at least three (3) quality sources to support the content of the paper. Your assignment must follow these formatting guidelines: ? 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: ? Explain the decision-making process management uses to develop viable courses of action to a variety of management situations. ? Use technology and information resources to research issues in management. ? Write clearly and concisely about management using proper writing mechanics."
Question 3
Company XXX is an integrated company. The following information is taken from its income statements for 2010 and 2011 (all dollar figures are in millions): 2010 Sales: $240,000; cost of goods sold: 54% of sales, depreciation: $16,000, CAPEX: $6,000, additional investment in net working capital: $1,200 2011 Sales: $267,000, cost of goods sold: 55% of sales, depreciation: $17,200, CAPEX: $6,750, additional investment in net working capital: $1,350 Applicable tax rate for the company is 40%. Calculate company?s free cash flows (FCF) for 2010 and 2011 Estimate company?s FCF for 2012-2016 using the following assumptions: Company?s sales will grow at 5% per year over the next five years; Cost of goods sold as a percentage of sales is expected to increase by 1% each year, i.e., the gross margin ratio will be decreasing by 1% every year; Total CAPEX each year is expected to be equal to 25% of additional sales that year (compared to the previous year); Increase in net working capital in a given year will be equal to 5% of additional sales that year (compared to the previous year); Total depreciation each year will be equal to the total depreciation in a prior year plus 20 % of CAPEX incurred in a prior year (for example, depreciation in 2011 was 16,000 + 20% x 6,000 = 17,200). Since the company is a going concern we need not be concerned about the liquidation value of the firm?s assets at the end of 2016
Question 4
Northwest Paperboard Company bought 40% of the outstanding common shares of Vancouver Timber and Milling, Inc., on January 2, 2011, for $440 million. At the date of purchase, the book value of Vancouver's net assets was $858 million. The book values and fair values for all balance sheet items were the same except for inventory and plant facilities. The fair value exceeded book value by $8 million for the inventory and by $56 million for the plant facilities. The estimated useful life of the plant facilities is 16 years. All inventory acquired was sold during 2011. Vancouver reported net income of $145 million for the year ended December 31, 2011. Vancouver paid a cash dividend of $34 million. [Questions are in word document],Many of the responses are coming up incorrect, I've attached a document detailing which ones need to be corrected. Please let me know when you have completed.,(1) is correct now, but for (2), (3), and (4) the answers are still coming up incorrect.,I'm sorry, the numbers were correct but I ended up finding the correct journal entry labels myself. I've attached the file with the correct journal entries for #1. Let me know if this makes a difference in the calculations.
Question 5
1) The actual weight of 2-pound sacks of salted peanuts is found to be normally distributed with a mean equal to 2.04 pounds and a standard deviation of 0.25 pounds. Given this information, the probability of a sack weighing more than 2.40 pounds is 0.4251. A) True B) False 2) A university computer lab manager wishes to estimate the mean time that students stay in the lab per visit. She believes that the population standard deviation would be no larger than 10 minutes. Further, she wishes to have a confidence level of 90 percent and a margin of error of ? 2.00 minutes. Given this, the sample size that she uses is approximately 60 students. A) True B) False 3) A local bank has 1,400 checking account customers. Of these, 1,020 also have savings accounts. A sample of 400 checking account customers was selected from the bank of which 302 also had savings accounts. The sampling error in this situation is .0264. A) True B) False 4) The director of the city Park and Recreation Department claims that the mean distance people travel to the city?s greenbelt is more than 5.0 miles. Assuming that the population standard deviation is known to be 1.2 miles and the significance level to be used to test the hypothesis is 0.05 when a sample size of n = 64 people are surveyed, the critical value is approximately 4.75 miles. A) True B) False 5) The population of incomes in a particular community is thought to be highly right-skewed with a mean equal to $36,789 and a standard deviation equal to $2,490. Based on this, if a sample of size n = 36 is selected, the highest sample mean that we would expect to see would be approximately $38,034. A) True B) False 6) The loan manager for State Bank and Trust has claimed that the mean loan balance on outstanding loans at the bank is over $14,500. To test this at a significance level of 0.05, a random sample of n = 100 loan accounts is selected. Assuming that the population standard deviation is known to be $3,000, the value of x that corresponds to the critical value is approximately $14,993.50. A) True B) False 2 7) A statement in the newspaper attributed to the leader of a local union stated that the average hourly wage for union members in the region is $13.35. He indicated that this number came from a survey of union members. If an estimate was developed with 95 percent confidence, we can safely conclude that this value is within 95 percent of the true population mean hourly wage. A) True B) False 8) The Varden Packaging Company has a contract to fill 50 gallon barrels with gasoline for use by the U.S. Army. The machine that Varden uses has an adjustable device that allows the average fill per barrel to be adjusted as desired. However, the actual distribution of fill volume from the machine is known to be normally distributed with a standard deviation equal to 0.5 gallons. The contract that Varden has with the military calls for no more than 2 percent of all barrels to contain less than 49.2 gallons of gasoline. In order to meet this requirement, Varden should set the mean fill to approximately 49.92 gallons. A) True B) False 9) A popular restaurant takes a random sample n = 25 customers and records how long each occupied a table. The found a sample mean of 1.2 hours and a sample standard deviation of 0.3 hours. Find the 95 percent confidence interval for the mean. A) 1.2 ? .118 B) 1.2 ? .124 C) 1.2 ? .588 D) 1.2 ? .609 10) A cell phone service provider has selected a random sample of 20 of its customers in an effort to estimate the mean number of minutes used per day. The results of the sample included a sample mean of 34.5 minutes and a sample standard deviation equal to 11.5 minutes. Based on this information, and using a 95 percent confidence level: A) the critical value is z = 1.96. B) the critical value is z = 1.645. C) the critical value is t = 2.093. D) The critical value can?t be determined without knowing the margin of error. 11) A company that makes and markets a device that is aimed at helping people quit smoking claims that at least 70 percent of the people who have used the product have quit smoking. To test this, a random sample of n = 100 product users was selected. The critical value for the hypothesis test using a significance level of 0.05 would be approximately -1.645. A) True B) False 3 12) Recently the State Fish and Game planted several thousand tagged fish in a local river. The mean length of these fish, which constitute a population, is 12.6 inches. Yesterday, fishermen caught 100 of these tagged fish. You could expect that the mean length for these fish would be 12.6 inches as well since they come from the population. A) True B) False 13) The police chief in a local city claims that the average speed for cars and trucks on a stretch of road near a school is at least 45 mph. If this claim is to be tested, the null and alternative hypotheses are: Ho : ? < 45 mph Ha : ? ? 45 mph A) True B) False 14) If a hypothesis test is conducted for a population mean, a null and alternative hypothesis of the form: : 100 : 100 ? ? ? ? HO H A will result in a one-tailed hypothesis test since the sample result can fall in only one tail. A) True B) False 15) In conducting a hypothesis test for the difference in two population means where the standard deviations are known and the null hypothesis is: o H : A ? - ? ? ? 0 What is the p-value assuming that the test statistic has been found to be z = 2.52? A) 0.0059 B) 0.9882 C) 0.0118 D) 0.4941
