Question 1 – 10 Marks

The following is the unadjusted trial balance for James Trading Pty Ltd as at the close of the financial year ended 30 June 2011. In addition the following entries had not been applied to the general ledger.

1. Rent had been prepaid to the extent of 3 months on June 1st. The monthly rent is $1,000

2. Interest income on a loan made to J Harris had not been taken to account

3. Expenses of $20,000 for legal fees were estimated to be incurred but had not been invoiced by the solicitor

4. A stock take was undertaken as at the close of June and $8,500 was the value of stock on hand

5. The company received $20,000 for services which will be delivered over the next four months. The first services were provided in the current month of June.

 

On the attached worksheet

a. Complete the entries to adjust the trial balance for the closing entries

b. Prepare an statement of income and statement of financial position

 

Question2 – 15 Marks

The following is the Statement of financial Position and Profit and Loss statement for Luke Incorporated Pty Ltd. You have been retained by your client to review the business and provide a financial analysis of the business for your client.

Undertake an analysis of the company and prepare a short report on your findings to a prospective purchaser.

Your analysis should cover the liquidity and performance of the company. Your report should clearly indicate the ratios and other methods used to evaluate the business for your client.

Your analysis must be in report format. With a suitable explanation of the specific ratios you have applied and why you used them.

Provide a recommendation to your client based on your analysis.

 

 

 

 

 

 

 

Question 3 – 15 Marks

Part a) – 7 marks

Advanced Radio repairs make all sales on account. Cash receipts arrive by mail. James opens the envelopes and separates the cheques from the accompanying remittance advices. James forwards cheques to another employee, who makes the daily bank deposit but has no access to the accounting records. James sends the remittance advices, which show the cash received, to the accounting department for entry into the accounts. James’ other duty is to grant sales allowances to customers ( a sales allowance decreases the amount receivable). When he receives a customer’s cheque for less than the full amount of the invoice, he records the sales allowance and forwards the document to the accounting department.

Required

You are the new Financial Controller of Advanced Radio repairs. Write a memo to the company Chairperson identifying the internal Control weakness in this situation. State the steps to be taken to correct the weakness.

Part b)- 8 marks

You are the Financial Controller for Lukes’ Manufacturing and you have been approached by the Chief Executive Officer in relation to the purchase of a new item of equipment. Not having an accounting background, the owner Joe Logs, does not understand the concept of depreciation and is under the impression that depreciation is a process of creating a cash fund to replace an asset.

Write a note explaining the concept and using the information regarding the asset below illustrate the difference in various depreciation methods and the effect on the financial performance of the organisation if any.

Machine Cost $45,000

Delivery to site $500

Cost of set up ready for production $2,500

Salvage value estimated to be $3,000

Maximum units of production 5,000 in the first year

4,500 in the second year

And reducing by 500 units each until the end of its useful life

Effective Useful life 5 years

Show all calculations and a depreciation schedule in your report to demonstrate fully the impact to Joe Logs.

Question 4 – 10 marks

Part a)

Alpha Ltd had the following equity balance at July 1, the beginning of the year

Share capital 10,000 $10 shares $100,000

Reserves $80,000

Retained Earnings $50,000

Alpha Ltd’s profit for the year was $40,000. During the year the following events and transactions occurred;

Dec 30 Declared interim cash dividend of $1 per share

Jan 15 Paid interim cash dividend

Mar 31 4-for 1 share split

June 30 declared cash dividend o0f $1 per share

June 30 transferred $15,000 to general reserve

Required

a) Prepare journal entries to record the transactions affecting equity during the period

b) Prepare a statement showing the changes in retained earnings during the year

c) Prepare the equity section of the balance sheet

d) Calculate the dividend payout ratio and return on shareholders’ equity

Part b)

Investors Ltd Shareholders equity is as follows

Share Capital $4,000,000

Retained earnings and reserves $1,000,000

Investor ltd plans to expand its operations by establishing a branch in Singapore. The new branch will cost $2.5million. Expected profits before tax and interest when the new branch is operational are $1.2 million. The tax rate is 30%. Investors Ltd is considering 2 financing options;

a) Borrow $2.5million at 8% interest

b) Issue 100,000 shares at $25

Required; Which funding alternative yields the higher return on equity. What other factors should be considered.

 

Question 5 – 10 marks

CVP Analysis

Unique Manufacturing had a bad year in 2007. Having operated at a loss. The income statement showed the following results from selling 60,000: net sales $2,250,000, total costs and expenses $2,835,000; and loss $385,000. Costs and expenses consisted of the following

 

Total variable fixed

Cost of Goods sold 2,025,000 1,395,000 $630,000

Selling Expenses 630,000 110,000 520,000

Administrative expenses 180,000 70,000 110,000

Total 2,835,000 1,575,000 1,260,000

Management is considering the following independent alternatives for 2008

1. Increase the unit selling price to $52.50 with no change in costs , expenses and sales volume

2. Change in compensation of salespersons from fixed annual salaries totalling $300,000 to total salaries of $75,000 plus 5% commission on net sales

3. Purchase new high tech factory that will change the proportion between variable and fixed cost of goods sold to 50:50

Required

a) Calculate the break -even point for the year 2007

b) Calculate the break -even point under each alternative course of action above.

 

 

 

 

 

 

PDL Accounting & Business Consultatncy P/L

Statement of Financial Position as at 30 June

2011 2012 2013

 

CURRENT ASSET

Bank 6.1 33.5 41

A/R 281 240.8 210.2

Inventory at Cost 241 300 370.8

Total Current Asset 528.1 574.3 622

 

NON-CURRENT ASSET

Fixtures & Fittings At Costs 107.8 129 160.4

Less Accum Depn -37.4 -64.4 -97.2

FreeHold land & Bldg At Costs 351.2 451.2 451.2

Less Accum Depn -65 -70 -75

Total Non-Current Assets 356.6 445.8 439.4

TOTAL ASSETS 884.7 1020.1 1061.4

 

CURRENT LIABILITIES

A/P 247 221.4 228.8

Dividends Payable 32 40.2 60

Income Tax 46.4 60.2 76

Total Current Liabilities 325.4 321.8 364.8

 

NON-CURRENT LIABILITIES

12% Debentures (secured) 200 200 60

Total Non-Current Liabilities 200 200 60

TOTAL LIABILITIES 525.4 521.8 424.8

OWNERS EQUITY

Paid up Ordinary Capital 280 300 334.1

(shares all issued at 50cwents each)

Reserves 26.5 26.5 40

Retained Profit 52.8 171.8 262.5

TOTAL OWNERS EQUITY 359.3 498.3 636.6

TOTAL LIABILITIES & EQUITY 884.7 1020.1 1061.4

TOTAL LIABILITIES & EQUITY 884.7 1020.1 1061.4

 

 

 

PDL Accounting & Business Consultatncy P/L

 

OTHER INFORMATION

 

1. THE Company employed 14 staff in 2012 and 18 staff 2012

2. All sales and purchases are made on credit

3. The market price of the shares of the company at the end of each year was $2.50 and 3.50,

respectively

4. The issue of equity shares during the year ended 30 June 2013 occurred at the beginning of the year

 

 

 

 

 

 

 

week 7

Sales 320000

Contribution 40%

Fixed Cost ($) 80,000

Units Sold(#) 2000

 

160 per unit

 

 

Contribution

 

 

0

 

 

Break Even ( no of units)

 

PART I:

 

 

 

Directions: The following problems ask you to evaluate hypothetical situations and/or concepts related to the reading in this module.  While there are no “correct answers” for these problems, you must demonstrate a strong understanding of the concepts and lessons from this module’s reading assignment.  Please provide detailed and elaborate responses to the following problems.  Your responses should include examples from the reading assignments and should utilize APA guidelines.  Responses that fall short of the assigned minimum page length will not earn any points.

 

 

 

1.      Two weeks ago, your good friend Joe spent his entire Saturday helping you move all of your stuff into your new apartment.  This weekend, Joe is moving into his apartment.  You promised to help Joe move.  Besides, even if you had not promised, you feel that you ought to help Joe; after all, he’s a good and loyal friend, and he generously helped you just a couple of weeks ago.  Suppose you say: “I know I really ought to keep my promise and help Joe move; but I have got a chance to go to the beach for the weekend, and I really love the beach; so I am afraid I am going to skip out on Joe.”  That is a rotten thing to do to your friend; but still, under strong temptation we have all failed to do the right thing on one or two occasions.  But suppose you said: “I know that I really ought to keep my promise and help Joe; I know it is the right thing to do, and helping Joe would certainly be good.  But I have no inclination whatsoever to help Joe.  I fully understand that it is the right thing to do and that helping Joe would be good; but although I recognize that helping Joe is good, I am not at all inclined to do the right thing.”  Would it make sense to say that?  Suppose one of your friends said: “Look, that is nonsense.  You cannot say you know it would be good to help Joe, and then say that you have no inclination to help him.  Either you do not really think that helping Joe is good, or you are confused about the meanings of the words.  If you really know that helping Joe is the right thing to do, you must have some inclination to do it.”  Would your friend be right?  Your response should be at least one page in length.

 

 

 

2.      “Astronomers maintain that black holes exist in our galaxy.  A black hole results when a massive star implodes, and all its mass is compressed into a very small volume.  This produces an object so dense, and with such powerful gravitational force, that no light can escape.  Therefore, you cannot really ‘see’ a black hole; we can reasonably conclude that a black hole exists: it is the best explanation for those motions.  Likewise, you do not really ‘see’ a moral fact; but by observing the convergent conclusions and behavior of people who think calmly and carefully about a moral issue, we can conclude that a moral fact exists: it is the best explanation for that convergent movement.”  Is that a good analogy?  Your response should be at least one half of one page in length.

 

 

 

3.      Imagine if your car was making a funny sound and you went to two different mechanics to see what the problem was. One of them tells you that you need to have a single part replaced. The other tells you that you have to have several small parts replaced. Both repairs will cost exactly the same amount and take the same amount of time to perform. Additionally, both mechanics are equally as reputable. Which mechanic would you go with and why?  Your response should be at least one half of one page in length.

 

 

 

4.      Has technology created a paradigm shift in our lifetime? Why or why not?  Your response should be at least one page in length.

 

 

 

5.      Suppose that it is discovered that there are no objective morals. Could we still have laws? Why or why not?  Your response should be at least one page in length.

 

 

 

6.      Suppose it is discovered that all cultures around the world share a common belief about how to eat Oreos. Does this mean that there is an objectively correct way to eat an Oreo? Why or why not?  Your response should be at least one half of one page in length.

 

 

 

7.      Does a moral realist have to be a transcendental moralist (p. 7 of in textbook)?  Why or why not?  Your response should be at least one page in length.

 

 

 

 

 

PART II: Journal

 

 

 

Please describe what aspect of this week’s lesson you found most interesting and why. What effect, if any, did it have on your moral/ethical outlook?  Your response should be at least one half of one page in length.

 

 

 

Directions: Please provide detailed and elaborate responses to the following questions.  Each response should be at least one half of one page in length and utilize APA format.

 

 

 

1.      What is Ockham’s Razor and to what extent does it work for or against the non-objectivist view?

 

 

 

2.      What is the argument from queerness, and what roles does Ockham’s Razor play in the argument?

 

 

 

3.      What does it mean to give an evolutionary account of moral values?

 

 

 

4.      Define “noncognitivism.”

 

 

 

5.      Define moral realism.

 

 

 

6.      Compare and contrast moral realism and nonobjectivism.  Which approach is more compelling?  Explain.

 

 

 

7.      What is a paradigm shift?

 

 

 

8.      What role does intuition or exalted powers of reason play in contemporary realist theories?

 

I HAVE A COUPLE QUESTIONS IN FINANCE. I need them like in next 5 hours. Contact me if you can solve the problems and give the correct answer. 

 

You only need to answer

 

Question 2 a and b 

Question 3 b

and Question 4.

 

You only got 5 hours to complete them.

 

Can you assist with any of the following business management questions? APA, times new roman 14pt, double space, 200-500 words each essay, minimum of 1-2 sources cited for each

Questions 1-6 due Monday 3:00 p.m. EST
Questions 7-14 due Tuesday 3:00 p.m. EST
Questions 15-18 due Wednesday 3:00 p.m. EST

Secure answers and remove once accepted.

Textbook: 

Bazerman, M.H., & Moore, D.A. (2009).  Judgment in managerial decision making (7^th ed.).  Hoboken, NJ:  Wiley.

 

1. Question 4.1
Lately, the stock market has experienced unprecedented volatility – wild ups and downs. Discuss how stock trading has created a lot of this volatility and the decisions for stock traders to buy and sell wildly in terms of hyperbolic discounting.
2. Question 4.3
The news has been full of stories lately about the stock market problems, sub-prime mortgages, and ponzi schemes. All of these required people to make decisions. Research one of the stories and discuss how motivation influenced people to make such terrible decisions. Had exponential discounting played a part in the decision(s) that you had researched. If so, how?
3. Question 5.1
Discuss how perceptual bias affected President George W. Bush’s decisions that lead the United States into war in Iraq in 2003. Did judgmental bias play a part in these decisions?

4. Question 5.2
During the Cold War and post-Cold War eras, the United States and the Soviet Union have been competing with one another in attempts to gain a strategic advantage over one another. The Strategic Defense Initiative (SDI) was born out of that competition. Discuss the SDI and how the United States and the Soviet Union applied the competitive escalation paradigm.
5. Question 5.3
In the 1960s, Britain and France decided to jointly fund and build a supersonic transport that became known as the Concorde. Research the decision to build and fly the supersonic transport Concorde. Then, discuss how the sunk costs and an escalation of commitment affected their decisions.

6. Question 5.4
In 2001, Polaroid filed for bankruptcy protection. Investigate this filing. What caused the bankruptcy? Can it be traced to an escalation of commitment?

7. Question 6.1
Read the case Fairness in Punishment. Discuss the Decatur School Board’s decision to adopt a “no tolerance on school violence” in terms of fairness. How did implicit attitudes, perhaps, influence the school board’s decision to punish such a disproportionate number of African-American students?

8. Question 6.2
Bernard Madoff, a once highly regarded member of the Wall Street community, recently pleaded guilty of running a $50 billion ponzi scheme. Research the driving forces behind his seemingly unethical behavior and discuss your findings. How did favoritism and bounded ethicality come into play in this case?
9. Question 6.3
Research the subject of the Enron and Arthur Andersen relationship. Discuss your findings in terms of the application of ethics in the various decisions made by the Enron and Arthur Andersen teams. How did bounded ethicality play a role in these decisions?

10. Question 6.4
Recently, the American International Group (AIG), a global insurance and financial services organization, accepted billions of dollars from the United States Government in order to remain solvent and in operation. After receiving this money, the organization decided to pay over $160 million in bonuses. Discuss the ethical problems associated with this decision. Could in-group favoritism play a role in this decision? If you were the CEO, what decision would you have made?

11. Question 7.1
We have each had to negotiate during the process of purchasing a home or automobile. Analyze the last major purchase that you were involved with and discuss that purchase in terms of the decision-analytic approach. What was your BATNA and how did that come into play?
12. Question 7.2
Assume that you are part of a mediation team that has been brought in to help overcome an impasse between negotiators who are deliberating the use of embryonic stem cells for a research project. The decision makers are polarized along ethical and religious lines. Since this is a potentially emotional issue, what would you do in order to break this impasse? How could the fixed pie concept come into play in this situation?
13. Question 7.3
Recently, General Motors and the United Auto Workers had to sit down and negotiate a change in the labor agreement in order to keep the company from going bankrupt. Consider what might have gone on during these negotiations and discuss how framing might have been used, and what issues might have been discussed, in order to reach an acceptable agreement.

14. Question 7.4
Discuss the four ways, outlined in Chapter 9, in which contingent contracts can improve the outcomes of negotiations for both sides.

15. Question 8.1
Conduct an Internet search for information on linear decision-making. Then, discuss your findings and contrast it with what the authors offer in the textbook. Next, discuss how a linear decision-making model could have helped you in making a past decision.
16. Question 8.2
Bazerman and Moore suggest that we should understand the biases of others. Discuss this concept in terms of why it is important for us to understand other peoples’ biases. In your discussion, focus on how you might be able to improve your decision-making in a group setting.

17. Question 8.3
Describe the concept of analogical reasoning. Then, considering your last purchase decision, discuss how analogical reasoning could have helped you to improve your decision and increase your satisfaction with the product or service that you purchased.

18. Question 8.4
Research Kurt Lewin’s model for change. Then, discuss the three-staged de-biasing process (unfreezing, change, and refreezing) and explain the mechanisms that make each of them hard to implement. In your discussion, include how you believe such a process can help you, personally, to improve your decision-making

The Day the Machines Went off

In your introduction, briefly describe the plot of a disaster movie in which an electromagnetic pulse causes the shutdown of all electronic equipment and financial activity to grind to a halt.

Then, using what you have learned during the course, from the text readings, and from scholarly sources, forecast the effects of such an event on financial institutions and the economy using the following prompts as a framework:

1. Hypothesize how the four functions of money would be missed.
2. Explain what the immediate effects would be on:
   1. the rationing of goods,
   2. employment,
   3. demand for paper money.
   4. demand for commodity money (e.g., gold),
   5. production of goods and services
3. Speculate what emergency measures might be enacted to keep the economy running in lieu of having an organized banking system.
4. Identify and justify any incidents from history that tell us what we might expect if an electromagnetic pulse actually caused the shutdown of all electronic equipment and financial activity to grind to a halt.  

Writing the Final Paper

The Final Paper:

1. Must be eight- to- ten double-spaced pages in length (not including the title and reference pages), and formatted according to APA style as outlined in the approved APA style guide.
2. Must include a cover page that includes:
   1. Title of paper
   2. Student’s name
   3. Course name and number
   4. Instructor’s name
   5. Date submitted
3. Must begin with an introductory paragraph that has a succinct thesis statement.
4. Must address the topic of the paper with critical thought.
5. Must end with a conclusion that reaffirms your thesis
6. Must use at least three scholarly sources, including a minimum of one from the Ashford Online Library, in addition to the text.
7. Must document all sources in APA style, as outlined in the Ashford Writing Center.
8. Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center