Accounting Quiz

Q16-1: What is Zero based budgeting?

Q16-2: A company’s annual sales budget is for 120,000 units, spread equally through the year. It needs to have one and three quarter’s month stock at the end of each month. If opening stock is 12,000 units, what are the number of units to be produced in the first month of the budget year?

Q16-3: The standard costs for a manufacturing business are £12 per unit for direct materials, £8 per unit for direct labour and £5 per unit for manufacturing overhead. The sales projection is for 5,000 units, 3,500 units need to be in stock at the end of the period and 1,500 units are in stock at the beginning of the period. What will the production budget show in costs for that period? 

Q16-4: Receivable increase by £15,000 and payables increase by £11,000. What is the effect on cash flow from the Statement of Cash Flow from these two items? 

Q16-5: Randy Airplanes Ltd is a privately owned business. It has budgeted for profits (after deducting depreciation of £41,000) of £150,000. Debtors are expected to increase by £20,000, inventory is planned to increase by £5,000 and creditors should increase by £8,000. Capital expenditure is planned of £50,000, income tax of £35,000 has to be paid and loan repayments are due totaling £25,000. What is the forecast cash position of Randy’s at the end of the budget year, assuming a current bank overdraft of £15,000?

Q17-1: What are a flexible, incremental, and activity-based budget? Please explain each.

Q17-2: A company has budgeted for materials of £170,000 but the actual costs are £164,000. The company has also budgeted for labour of £130,000 with actual costs being £133,000. What is the expense variance and is it favorable or adverse?

Q17-3a: How do increases/decreases in costs and/or prices effect each of the variances in standard costing?

Q17-3b: How do increases/decreases in production labor effect each of the variances in standard costing? 

Q18-1: What is the difference between Kaizen costing, target costing, and life cycle costing?

Q18-2: Trans PLC estimates that a new product will sell in sufficient quantities to justify its manufacture at a selling price of £175. The company needs to invest £5 million to produce a quantity of 10,000 of these new products per year and requires a return on that investment of 12% per annum. The current prediction is that the product will cost £140 to manufacture. How should Trans reengineer its costs to achieve the target selling price and target rate of return?

Q18-3: SkinTan’s top five customers generate sales revenue of £950,000 per annum. Each generates a different gross margin as a consequence of price negotiations that have been carried out over several years. Because of their location, each customer incurs different distribution expenses. Sales commissions are paid at the rate of 6% on all sales. Fixed costs are customer specific, covering salaries of sales and office staff who service each customer. The following table shows the information for each of the top customers for the previous year.

Sales

250,000

250,000

200,000

150,000

100,000

Gross margin %

30%

25%

21%

37%

39%

Distribution expenses

30,000

14,000

25,000

12,000

6,000

Fixed costs

30,000

25,000

16,000

15,000

10,000

Carry out a customer profitability analysis and make recommendations in relation to any future strategies SkinTan should take in relation to its top customers.

M4 A2

As a manager, part of your role is to develop strategy, and share this strategy with various stakeholders within the organization. This assignment will allow you to take your findings as a manager and communicate these findings to those who are affected.

Your company has been presented with a decision on replacing a piece of equipment for a new computerized version that promotes efficiency for the upcoming year. As manager you will need to decide whether or not the purchase of the new equipment is a worthwhile investment and to communicate your recommendations to Executive Management for a final decision. To be convincing, sufficient support for your recommendations must be provided in order to be considered valid and accepted.

Existing Equipment

Original Cost 60,000

Present Book Value 30,000

Annual Cash Operating Costs 145,000

Current Market Value 15,000

Market Value in Ten Years 0

Remaining useful Life 10 years

Replacement Equipment

Cost 600,000

Annual Cash Operating Costs 50,000

Market Value in Ten Years 0

Useful Life 10 years

Other Information

Cost of Capital 10%

Payback requirement 6 years

In this assignment, use the information above to develop a comprehensive analysis using NPV, Payback Method, and IRR to develop a recommendation on replacing the existing equipment with a new computerized version. Develop an executive summary of your findings in a Microsoft PowerPoint presentation format to present to Executive Management.

Do the following in your presentation:

Include a statement of the problem or topic, a concise analysis of the findings, and a recapitulation of any main conclusions or recommendations.

Be sure to incorporate specific details to highlight or support the summary including calculations.

Using your knowledge of capital budgeting techniques, explain how principles of capital budgeting, such as the payback method, IRR, and NPV, can be used to assess the potential projects and assist in the decision-making process.

Develop a 10 slide presentation in PowerPoint format. Apply APA standards to citation of sources. 

Comparative Analysis Problem

Purpose of Assignment 

The purpose of this assignment is to help you understand the basics of financial statement analysis using financial ratios on the assets section of the balance sheet, data interpretation, and how ratios are used to gain insight about the management of receivable. 

Assignment Steps 

Resources: Financial Accounting: Tools for Business Decision Making 

Develop an 875-word analysis providing conclusions concerning the management of accounts receivable based on the financial statements of Columbia Sportswear Company presented in Appendix B and the financial statements of VF Corporation presented in Appendix C, including the following: 

• Based on the information contained in these financial statement, compute the following 2014 values for each company:
  • Accounts receivable turnover (For VF, use "Net sales" and assume all sales were credit sales)
  • Average collection period for accounts receivable
• What conclusions concerning the management of accounts receivable can be drawn from this data? 

Use the Week 1 Excel® spreadsheet to show your work and submit with your analysis.

What Is Required For A Valid Contract ?

Distinguish and Identify

1. Risks?
2. Breach of contract laws?
3. ***Other details***

Health Policy And Law

Assignment 1: Health Policy and Law Basics
Due Week 3 and worth 150 points

As a chief operating officer of a hospital, you have been tasked with opening a new ambulatory care center in your city. (Mineral City)

Write a 2-3 page paper in which you:

1. Specify whether you would utilize the professional autonomy, social contract, or free market perspective as the paradigm to design the structure of your new center. Debate at least two (2) advantages and two (2) disadvantages of your chosen perspective. Provide at least two (2) examples of your perspective in action to support your response.
2. Analyze the key components of three (3) sources of law related to the effects that each source could potentially have on your healthcare organization’s new initiative.

M4 A1

Applying Balanced Scorecard

In many cases, managers end up in trouble as they direct their focus exclusively on cost savings. Cost cutting is always emphasized, but other impacts, such as decreased quality, can be overlooked. These overlooked impacts can have a significant effect on the revenue and profitability of an organization. The balanced scorecard is a measure to assure that management is not exclusively driven by cost, but balanced with other measures that also can significantly influence the performance of an organization.

Using the module readings and the online library resources, research balanced scorecard and its application.

Select a service industry organization of your choice. Complete the following for the selected organization:

Recommend at least two performance measures in each of the balanced scorecard categories.

Explain each of your recommendations.

Using these measures as examples, explain how use of the balanced scorecard can increase the economic value added within the organization.

By the due date assigned, post your response to the Discussion Area. Through the end of the module, review and comment on at least two peers’ responses.

Write your initial response in 300 words. Your response should be thorough and address all components of the discussion question in detail, include citations of all sources, where needed, according to the APA Style, and demonstrate accurate spelling, grammar, and punctuation

Health Care Costs

"Health Care Costs" Please respond to the following:

• Review material in chapter 4 , and other sources, about the USA health care system, and discuss where there are opportunities to reduce costs without reducing the quality of care delivered to patients by a health care organization. Explain one example of how to reduce costs without adversely impacting the quality of care delivered.

Worker-Comp-Law_W5_DQ1&2

Discussion 1: Defining Social Security Disability

Injured workers can have different claims for disability grounded in workers’ compensation and in social security. The injured employee has a choice when both types of claim are viable.

On the basis of your readings for the course, answer the following questions:

• How does the Social Security Disability definition differ from worker’s compensation definitions?
• Why do you think the definitions are different?
• Can the definitions be reconciled? Explain your position.

Provide a well-reasoned answer. Support you answer with relevant case law or statute.

Discussion 2: Appealing a Workers’ Compensation Claim

In every case there will be a winning side and a losing side. When a claim is lost, there is a good likelihood that there will be an appeal filed. The appellate process is more formal and will normally be heard through an appellate tribunal before the courts will be able to hear the case.

Based on your readings for the course, examine the reasons for filing an appeal for a workers' compensation claim.

• What factors can mitigate the decision to appeal?
• Support your answer with appropriate reasoning.

Comparative Health Care Systems"

Comparative Health Care Systems" Please respond to the following:

• Compare one of the foreign health care systems outlined in your text or in other sources, and point out the major differences with the health care system in the United States. 
• Discuss an element of the foreign system that you think is better than the one in the United States, and an element of the United States health care system that is better than the one in the foreign country.

Questions Related To Taxation Laws Australia

Question 1

Charlie is an employee of Shiny Homes Pty Ltd (Shiny Homes). He is a real estate agent. Shiny Homes also operates a separate business on landscaping to ‘do up’ houses before it is put up for sale.

From the period 1 July 2016 to 30 June 2017 the following events took place:

• In 1 September 2016, Shiny Homes provided Charlie with a 4 wheel drive sedan value at $70,000. From 1 September 2016 to 31 March 217 the car travelled 80,000 km. He parked his car in his garage in the evenings. Before he goes away for his Christmas holidays, the car was sent to be serviced and he could not use his car for 2 days. He estimated that he uses 70% of the time was for business purpose and the other 30% of the time for private use. Charlie also maintained a log book for 12 weeks and the following information were recorded:

• 50,000 km were work related

• Petrol and oil per month – $2,000

• Repairs and maintenance per month – $3,500

• Registration per annum – $240

• Insurance per annum – $960

Note: these expenses were incurred by Shine Homes.

• In 1 February 2017, Charlie was involved in a minor car accident and he could not use the vehicle for 2 weeks (1st to 14th February 2017). This occurred before Charlie a week before Charlie’s wedding and Shine Homes decided to hire a car for that period at a cost of $1,000 to allow Charlie and his wife Deborah to go for their honeymoon trip to Gold Coast. Shine Homes paid for their honeymoon accommodation which is worth $3,000.

• During working hours Charlie parked his car at Secure Parking (an unrelated entity) and Shine Homes paid $200 per week.

Required

Advise both Charlie and Shine Homes about their fringe benefit consequences of these events. You are required to compute the taxable benefit where necessary.

You need to cite the relevant case law and / or legislation.

Question 2

1. Allan and Betty were living and working in Melbourne. They decided on a ‘tree change’, sold their Melbourne home and purchased a large country house on a 10 hectare block in central Victoria. Betty works part-time as an accountant and Allan as a locum doctor. Allan is popular with the elderly patients in the town and regularly is given home-made cakes and scones, along with his fee. On one occasion he treated a local wine maker’s dog for snake bite when the vet was unavailable and was given a dozen bottles of Lonarch Brae shiraz in appreciation. The wine had a retail value of $360.

2. Allan and Betty enjoy gardening. They plan to establish a few hectares of grape vines and begin growing vegetables. They attend a continuing education course on organic farming and find in their second year they have a surplus of produce. Betty started making marmalade and relish using her mother’s recipes. Initially she gave them to neighbours but they became so popular that she opened a stall at the Newtown Growers Market held on the second Sunday of every month. Allan sold some of the excess to a local supermarket and now regularly supplies three retailers with sweet potatoes and pumpkin. They don’t keep records as they never intended to make a profit but estimate that in a good month gross receipts could be $500 to $600.

3. Their neighbours have a citrus orchard and throughout the year vegetables are swapped for oranges and mandarins. This seems like such a good idea Allan and Betty decide to set up a ‘barter’ system in the area. To join the system a person must pay an up-front, one-off fee of $50 to Allan and Betty as a charge for the keeping of administrative records. Thereafter people register their goods or services to be bartered. For example, Suzie is a retired hairdresser and will provide hairdressing services at her home. No money changes hands. Suzie would receive a credit to her account of 15 to 20 ‘barts’ that she can exchange for goods or services of equal value from other registered participants in the scheme (fruit, vegetables, child minding, lawn mowing etc.).

Required 1:

(a) Advise Allan of any income tax consequences of para 1, above.

(b) Citing relevant case law, explain how a hobby is to be distinguished from a business.

(c) Advise Allan and Betty of any income tax implications in paras 2 and 3 above.

(d) Advise the participants in the barter scheme of any income tax implications.