Question 1
FOREST COMMUNICATIONS COMPANY You?re hired! Kate Forest formed Forest Communications Company (FCC) in 2007 when she obtained an exclusive franchise to nationally distribute a pen-based input device that provides effortless communication with standard personal computers. Recent high sales growth of the base model pen-based input device (PID-B), along with expected sales growth for a new premium model (PID-P), requires adding new management team members. The Company hires you as a financial analyst to assume direct responsibility for financial planning activities. Your first assignment is to prepare a financial plan for the forthcoming year. Since you are anxious to make a favorable impression on Ms. Forest, the President of FCC, you immediately begin to assemble relevant information. Ms. Forest is acutely aware of other growth-oriented companies within the high technology sector that have burned through cash and gone bankrupt. Having seen potentially viable businesses fail in the past particularly concerns Ms. Forest and, consequently, she wants to ensure that sufficient cash will be available to accommodate FCC?s expected growth. Thus, on your first day, the President meets with you to emphasize why the Company must thoroughly assess the impact of FCC?s planned growth on cash flow. She would like to present the financial plan to FCC?s board of directors and has requested that you construct a financial model that can be used to perform sensitivities and address a range of questions from top management and board members. She also requests that you provide the board with a supplemental cost-volume-profit graphical analysis. Other Company Information You recall from past coursework that the starting point for a financial plan is a reliable sales forecast. Thus you consult with Bogey Fields, the sales manager, and an outside market researcher. Bogey has studied sales and economic trends, as well as changes within the highly competitive handheld computing industry to establish the unit sales forecast, which is presented in the spreadsheet template. As shown, total monthly unit sales volume is expected to continue increasing over the quarters, but with sales mix shifting away from the basic model toward a new premium model with enhanced features. In addition, you determine through discussions with the accounts receivable manager that all sales to retailers are on account, with no discount, and payable within 20 days. Thus far, bad debts have been negligible. Since FCC?s policy is to never stock out of its pen-based input devices (PIDs), and potentially forfeit market share to competitors, the Company maintains buffer inventory stock. Heretofore, FCC has sold only the basic model PID-B, but FCC recently began carrying a premium model PID-P. FCC expects that the current sales mix will shift toward the premium model, along with experiencing ongoing competitive pricing pressure (as reflected in the Assumptions Sheet). The company?s quarterly operating expenses (organized by cost behavior) are also provided in the Assumptions Sheet of the excel template. All operating expenses are paid during the quarter, in cash, with the exception of depreciation and insurance expenses. New fixed assets, including personal computers and office furniture, will be purchased during the forthcoming year out of cash. The Company, which is privately owned with Ms. Forest as the majority shareholder, has declared dividends, payable in the first month of the following quarter. FCC?s actual balance sheet at December 31 is provided on the Income Statement and Balance Sheet tab. Although FCC currently has no debt financing on its balance sheet, the Company has recently established a revolving line-of-credit through which it can borrow from The Bank of Titusville. For simplicity, assume that interest expense is recognized during the quarter incurred, while cash payments for interest occur one quarter in arrears. The same assumption should be applied for income tax expense. Required borrowings are made at the beginning of a quarter, and repayments at the end of a quarter in any dollar amount. FCC wishes to use any excess cash to pay off loan principal as rapidly as possible. However, the Company also desires a minimum ending cash balance each quarter as a bank minimum requirement for the LOC and to meet regular operating expenses. REQUIRED: Part 1: Financial Planning Model (40 Points) Download the Excel template from the course page ? DO NOT MODIFY THE FORMAT OF THE TEMPLATE. Save the file onto a disk? do not attempt to complete the template directly from the course page and do not copy and paste sheets into a new workbook. Project assumptions have already been provided in the template?s assumptions sheet. Be sure to understand Chapter 3 (CVP Models) and Chapter 13 (Planning and Budgeting) in your textbook before proceeding with the project. Regularly save your work as you complete the model. Remember that you must use formulas so that any changes in input data automatically update your model. Otherwise, your model will not work correctly and you will lose points. Part I requires you to complete the sheets of the Excel template, as indicated below. Complete Sheet 2 (Schedules) 1) Sales and merchandise purchase plans with supporting schedules. (8 points) a) A sales plan by quarter and in total. Include a schedule of projected cash collections from sales and accounts receivable, by quarter and in total. b) A purchases plan in units and in dollars. Include a schedule of projected cash payments for purchases, by quarter and in total. Note: The cost of inventory on hand is released to cost of goods sold before costs for the purchase of additional units (i.e., a FIFO cost flow is assumed). Show all work and related computations to receive credit. No points will be awarded for handwritten or unclear responses that do not answer the questions. Use formulas in all spreadsheet cells and reference given data cells as necessary. POINTS WILL BE DEDUCTED FOR ENTERING HARDCODED VALUES.
Question 2
(Accounting Change and Error) On December 31, 2010, before the books were closed that management and accountants of Madrasa Inc. made the following determination about three depreciable assets. 1) Depreciable asset A was purchased January 2, 2007. It originally cost $540,000 and, for depreciation purposes, the straight-line method was originally chosen. The asset was originally expected to be useful for 10 years and have zero salvage value. In 2010, the decision was made to change the depreciation method from straight-line to sum-of-the-years?-digits, the estimates relating to the useful life and salvage value remained unchanged. 2) Depreciable Asset B was purchased January 3, 2006. It originally cost $180,000 and, for depreciation purposes, the straight-line method was chosen. The asset was originally expected to be useful for 15 years and have zero salvage value. In 2010, the decision was made to shorten the total life of this asset to 9 years and estimate the salvage value of $3,000. 3) Depreciable Asset C was purchased January 5, 2006. The assets originally cost was $160,000 this amount was entirely expensed in 2006. This particular asset has a 10-year useful life and no salvage value. The straight-line method was chosen for depreciation purposes. Additional data: 1. Income in 2010 before depreciation expense amount to $400,000. 2. Depreciations expense on Asset other than A, B, &C totaled $55,000 in 2010. 3. Income in 2009 was reported at $370,000. 4. Ignore all income tax effects. 5. 100,000 shares of common stock were outstanding in 2009 and 2010. Instructions A) Prepare all necessary entries in 2010 to record these determinations. B) Prepare comparative retained earnings statements for Madrasa Inc. for 2009 and 2010. The company had retained earnings of $200,000 at December 31, 2008.
Question 3
Bristol Distribution Company began business on January 2, 2007. Salaries were paid to employees on the last day of each month, and social security tax, Medicare tax, and federal income tax were withheld in the required amounts. An employee who is hired in them idle of the month receives half the monthly salary for that month. All required payroll tax reports were files, and the correct amount of payroll taxes was remitted by the company for the calendar year. Early in 2008, before the wage and tax statements (form w-2) could be prepared for distribution to employees and for filing with the social security administration, the employees? earnings records were inadvertently destroyed. None of the employees resigned or were discharged during the year, and there were no changes in salary rates. The social security tax was withheld at the rate of 6.0% on the first $100,000 of salary and Medicare tax at the rate of 1.5% on salary. Data on dates of employment, salary rates, and employees? income taxes withheld which are summarized as follows, were obtained from personnel records and payroll records. Employee date first employed monthly salary monthly income tax wh Arnold June2 $6,400 $1,408 Charles Jan 2 8,600 2,064 Gillam Mar 1 5,000 950 Nelson Jan 2 3,800 684 Quinn Nov 15 4,400 814 Ramirez Apr 15 3,200 560 WU Jan 16 9,200 2,300 1. Calculate the amounts to be reported on each employee?s wage and tax statement (form w-2) for 2007, arranging the data in the following form: Employee/Gross Earnings/Fed. Income Withheld/ss tax withheld /medicare tax withheld 2. Calculate the following employer payroll taxes for the year (a) social security; (b) medicare; (c) state unemployment compensation at 3.8% on the first $9,000 of each employee?s earnings; (d) federal unemployment compensation at 0.8% on the first $9,000 of each employee?s earnings; (e) total.
Question 4
1. Which of the following best describes the GASB financial reporting model for state and local governments? A. Required comprehensive annual financial reports for all public entities. B. Integration of government-wide financial reporting and fund accounting. C. Cash basis accounting. D. Focus on individual funds. 2. Combining financial statements for nonmajor funds of a government should be included in A. The basic financial statements. B. The notes to the financial statements. C. As supplementary information in the comprehensive annual financial report (CAFR). D. As part of the statistical section of the comprehensive annual financial report (CAFR). 4. Which of the following kinds of information would not be provided by Management's discussion and analysis (MD&A)? A. A narrative explanation of the contents of the CAFR. B. A description of the government's financial condition. C. A forecast of revenues and expenditures for the next three fiscal years. D. A discussion of economic factors and the budget and tax rates approved for the next year. 8. Which of the following ratios would be most helpful in assessing the liquidity of a governmental entity? A. Net tax-supported long-term debt/population. B. Own source revenues/total revenues. C. Debt service expenditures/total expenditures. D. Unreserved fund balance/operating revenues. 9. All of the following are appropriate benchmarks for a state or local government to use as a basis for comparing performance except A. A government's own operating results and financial position from prior years. B. International City/County Management Association's Financial Trend Monitoring System results for governments of similar types and size. C. Federal agencies' financial information for a comparable time period. D. Socioeconomic and demographic trends of governments of similar types and size available from U.S. Census Bureau. 11. Which of the following budgetary approaches starts with line-item expenditures and applies a factor approximating the inflation rate to most items, unless specific information is available to suggest a different factor be applied? A. Performance budgeting. B. Zero-based budgeting. C. Program budgeting. D. Incremental budgeting. 12. Which of the following is not a typical step in the budgeting process for a state or local government? A. Request by management for input on the budget. B. Review and revisions of the budget by the administrative staff of each unit. C. Public hearings for citizen input. D. Approval by a majority vote of the citizenry. 13. Which of the following is not one of the purposes of a budget considered in the Government Finance Officer Association (GFOA) Distinguished Budget Presentation Award Program? A. As a policy document. B. As a legal document. C. As a financial plan. D. As a communication device. 14. In budgeting revenues, state and local government administrators should A. Be careful not to utilize unauthorized sources or exceed authorized ceilings on revenues from specific sources. B. Ensure that at least the amount of revenues needed to meet spending needs are raised, even if authorized ceilings on some revenue sources must be exceeded. C. Utilize all authorized revenues sources and at the maximum amount allowed by law. D. Ignore "other financing sources" since these resource inflows are not available for appropriation. 15. Responsibility for establishing generally accepted accounting principles (GAAP) for nongovernmental, not-for-profit organizations rests with the FASB and was most clearly established A. In the 1930s. B. When the FASB was created in 1974. C. When the GASB was created in 1984. D. In the AICPA's Statement of Auditing Standards No. 69 (hierarchy of GAAP) in 1992. 16. Statement of Financial Accounting Standards (SFAS) No. 116 on contributions received and contributions made describes measurement and reporting rules for A. Exchange transactions, such as membership dues and charges for services. B. Nonexchange transactions, such as unrestricted and restricted gifts. C. Gains and losses on investment income. D. Investment income (i.e., dividends and interest). 17. Statement of Financial Accounting Standards (SFAS) No. 117 requires the following financial statements for all nongovernmental, not-for-profit organizations A. Statement of financial position, statement of activities, statement of cash flows, and statement of functional expenses. B. Statement of financial position, statement of operations, statement of cash flows, and statement of functional expenses. C. Statement of financial position, statement of activities, and statement of cash flows. D. Statement of financial position, statement of revenues and expenses, statement of cash flows, and statement of functional expenses. 18. Which of the following statements is true regarding fund accounting for not-for-profit organizations (NPOs)? A. Fund accounting may provide a good mechanism for facilitating reporting to donors for restricted grants. B. Fund accounting may be used by NPOs for external purposes, but not internal purposes. C. Fund accounting is not allowed. D. SFAS Nos. 116 and 117 method of reporting three classes of net assets (unrestricted, temporarily restricted, and permanently restricted) replaces fund accounting for both internal and external reporting purposes. 19. Which of the following is not a condition that must be met for contributed services to a not-for-profit organization (NPO) to be recorded as both a contribution and as an expense? A. The service creates or enhances nonfinancial assets, such as a carpenter renovating a building. B. The service is provided by someone who possesses specialized skills, such as a lawyer preparing contracts. C. The service provides tangible benefit, such as serving food to clients. D. The service would have to be purchased if not donated, such as a pro bono annual audit by a local audit firm. 20. Which of the following is required as part of a complete set of financial statements for a private college or university? A. Statement of changes in financial position. B. Statement of revenues, expenses, and changes in net assets. C. Statement of activities. D. Statement of functional expenses. 21. Assets that the governing board of a public university, rather than a donor or other outside agency, has determined are to be retained and invested for future scholarships would be reported as A. An endowment. B. Unrestricted net assets. C. Deposits held in custody for others. D. Restricted net assets. 23. Which of the following statements is not true regarding generally accepted accounting principles (GAAP) applicable to health care organizations? A. Private hospitals follow guidance from the GASB. B. Public health care organizations follow guidance from the GASB. C. The AICPA Audit and Accounting Guide Health Care Organizations provides guidance for public, private, and for-profit health care entities. D. Both for-profit and not-for-profit health care organizations follow guidance from the FASB. 24. The AICPA Audit and Accounting Guide Health Care Organizations requires that health care organizations prepare a balance sheet (or statement of net assets) and the following additional statements: A. Statement of changes in fund balances, statement of changes in equity, and statement of cash flows. B. Statement of revenues and expenditures, statement of changes in equity, and statement of cash flows. C. Statement of operations, statement of changes in equity, and statement of cash flows. D. Statement of operations, statement of changes in equity, statement of cash flows, and statement of functional expenses. 25. If the equity/net assets section of the balance sheet (or statement of net assets) is comprised of unrestricted net assets, temporarily restricted net assets, and permanently restricted net assets, then the health care organization is A. Public, governmental. B. Private, nongovernmental. C. Commercial or proprietary. D. Cannot be determined.
Question 5
Unit 3 Individual Project Deliverable Length: The body of the paper should be 3 pages Details: Once you have developed your product/service, you then need to determine how to make it available to the end user. Using your textbook and the articles from the Databases in the AIU Library, develop a distribution system for the product/service you chose in Unit 1. Click here for the research requirements and guide for this assignment. W3 Research. An overview of distribution channels: Channel Levels: Direct versus Indirect Distribution Channel Organizations: Conventional, Vertical, Horizontal and Multichannel Marketing Systems Analyze your target market's needs. Explain what you know about your target market and what they want from a channel of distribution. Determine which channel members you will use and explain why (Indirect: retailer, wholesaler, dealer, manufacturer's rep, etc. Direct: catalog, telephone, sales force, etc.) Discuss how many channel members you will use and explain why (intensive distribution, exclusive distribution or selective distribution) Recommend a channel organization and explain why (conventional, vertical, horizontal or multichannel marketing system) 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 pronouns like ?I?, ?we?, and ?you? are not appropriate. The use of direct quotes is strongly discouraged. 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 2-3 pages in length - starting with a brief one paragraph introduction and ending with a short conclusion. The entire submission will be 5-6 pages in length. here is the website of the service: Security Consultants Group, INC. (n.d.). SCG, Inc. Retrieved on August 28, 2011 from: http://www.scgincorp.com/company_frame.htm,I am submitting three assignments and I am under the gun, can you please help?,Thank you!,And just to make sure I have submitted 3 different papers? correct?,this is a great paper, but i doesn't involve the service that I was orginally writting about. I send the link of the website of the service that I have do the report on. The Unit 5 project doesn't matter. Sorry, if i didn't give you enough information on my service. Providing the link I thought was enough. here is the website of the service: Security Consultants Group, INC. (n.d.). SCG, Inc. Retrieved on August 28, 2011 from: http://www.scgincorp.com/company_frame.htm",Thank thank thank, you fantastic!!! Have a great weekend!!
