EBIT indifference level & income statement EBIT indifference level & income statement Question Abe Forrester and three of his friends from college have interested a group of venture capitalists in backing their business idea. The proposed operation would consist of a series of retail outlets to distribute and service a full line of vacuum cleaners and accessories. These stores would be located in Dallas, Houston, and San Antonio. To finance the new venture two plans have been proposed:• Plan A is an all-common-equity structure in which $2.2 million dollars would be raised be selling 84,000 shares of common stock.• Plan B would involve issuing $1.3 million dollars in long-term bonds with an effective interest rate of 11.8% plus $.9 million would be raised by selling 42,000 shares of common stock. The debt funds raised under Plan B have no fixed maturity date, in that this amount of financial leverage is considered a permanent part of the firm’s capital structure.Abe and his partners plan to use a 34% tax rate in their analysis, and they have hired you on a consulting basis to do the following: a. Find the EBIT indifference level associated with the two financing plans. b. Prepare a pro forma income statement for the EBIT level solved for in Part a. that shows that EPS will be the same regardless whether Plan A or B is chosen.
Pricing and Distribution Strategies Pricing and Distribution Strategies Question Pricing and Distribution StrategiesThis week, you need to determine a pricing and distribution strategy for your chosen business, service, or product.First, discuss your pricing strategy. Your price should be both sufficient to cover your costs and low enough to make it attractive to your target market. Perform a breakeven analysis to determine how many customers you will need to make your business financially viable.Then, describe your distribution (location) strategy and link your decisions to your target market. Analyze how you will locate your business or service or distribute your product so that it is easy for your target market to purchase. Be sure to describe the logic behind your distribution strategy.Support your work with examples, references, or personal interviews.Cite sources using the APA format on a separate page.
Marketing MCQs Marketing MCQs Question 19) The marketing communications mix consists of six major modes of communications. Which of the following is NOT one of these modes?A.Sales promotions B.Advertising C.Personal selling D.Direct marketing E.Packaging 20) New-to-the- world products are ___.A.new products that supplement established product lines (package sizes, flavors, and so on)B.existing products that are targeted to new markets or market segmentsC.new products that create an entirely new marketD.new products that allow a company to enter an established market for the first timeE.new products that provide improved performance or greater perceived value and replace existing products 21) Price has operated as the major determinant of buyer choice among poorer nations, among poorer groups, and with ____ products.A.similarB.commodity-typeC.identicalD.over the Internet 22) Following the ____ approach to target market selection encompasses a strong knowledge of the segment’s needs, a strong market presence, and operating economies through specializing in production, distribution, and promotion.A.product specializationB.full market coverageC.single-segment concentrationD.selective specializationE.market specialization 23) A company can add new products through acquisition or development. The acquisition route can take three forms. The company can buy other companies, it can acquire patents from other companies, or it can buy a ___ or ____ from another company.A.franchise/co-brandB.franchise/acquire rightsC.license/franchiseD.license/receive permission 24) John Kotter’s view argues that management focuses on coping with complexity, whereas leadership focuses on coping with _____.A.defeatB.changeC.conflictD.successE.morale 25) The two general approaches to bargaining are known as ___.A.distributive and integrativeB.legal and restrictiveC.emotional and rationalD.affective and reflectiveE.formal and informal 26) Leadership is best defined as ___.A.implementing the vision and strategy provided by managementB.keeping order and consistency in the midst of changeC.coordinating and staffing the organization and handling day-to-day problemsD.not a relevant variable in modern organizationsE.the ability to influence a group in goal achievement 27) Which of the following is NOT included in the definition of conflict?A.something that is cared aboutB.perceptionC.disruption of tasksD.negative effects 28) Negotiation can be defined as a process in which two or more parties exchange goods or services and attempt to agree upon ___.A.a model of the negotiation process for resolving differencesB.acceptable bargaining strategies for obtaining the goods and servicesC.effective arbitrators for disputesD.the monetary value of the exchanged itemsE.the exchange rate for those goods and services 29) The traditional view of conflict is the belief that conflict is ___.A.necessaryB.naturalC.situationally-dependentD.neutralE.harmful 30) Which of the following statements about leadership is true?A.managers are leadersB.Formal rights enable managers to lead effectivelyC.leaders are hierarchically superior to followersD.Nonsanctioned leadership is as important as or more important than formal influence.E.leaders are managers. 31) According to a recent survey, about __ percent of employees working in the 1,000 largest U.S. corporations receive ethics training.A.50B.10C.25D.75 32) Which of the following is NOT a typical written test used in organizations?A.personalityB.integrityC.aptitudeD.work sampleE.intelligence 33) Between the late 1960s and the mid-1980s, the use of written tests declined because they were characterized as ___.A.unreliableB.discriminatoryC.invalidD.mathematically flawedE.unprofessional 34) _____ can be used to increase the perception that employees are treated fairly.A.Multiple ratersB.Due processC.Documenting with a journalD.Focusing on subjective evaluationsE.Selective evaluation35) Examples of off-the-job training include all of the following except ___.A.Internet coursesB.apprenticeship programsC.public seminarsD.videotapesE.classroom lectures36) Which of the following is not a primary force for change in organizations?A.decreasing skill setsB.economic shocksC.social trendsD.the nature of the workforceE.technology 37) Work specialization is the same as ___.A.decentralizationB.division of laborC.job groupingD.chain commandE.departmentalization 38) An example of change in the nature of the work force is an increase in___.A.capital equipmentB.mergers and consolidationsC.divorce ratesD.more cultural diversityE.college attendance 39) What term is used for the tendency of an individual to attribute his own successes to internal factors while putting the blame for failures on external factors?A.selective perceptionB.consistencyC.self-serving biasD.fundamental attribution errorE.stereotyping
ACC – Superior Manufacturing Company ACC – Superior Manufacturing Company Question Fill in the Excel spreadsheet provided via the link below to provide your answers to part a. Then paste the Excel data into a Word document on which you can also write the answer to part b.income_statement.xlsxAdministrative Expenses........................................................................................$ 70,000Finished Goods Inventory January 1, 2011..............................................................120,000Cost of Goods Manufactured during the year.........................................................200,000Finished Goods Inventory December 31, 2011........................................................60,000Selling Expenses....................................................................................................40,0 00Sales......................................................................................................................680,000Required:Using the information for Superior Manufacturing Company, prepare the income statement for the year ended December 31, 2011. (Assume a 30 % income tax.)Create a report between 200 and 300 words in length for leadership. The topic is the state of this company. Make some suggestions if there are areas you feel need to be further investigated.
The Thompson Corporation, manufacturer of steel products, began operations on October 1, 2009. The accounting departmen The Thompson Corporation, manufacturer of steel products, began operations on October 1, 2009. The accounting departmen Question The Thompson Corporation, manufacturer of steel products, began operations on October 1, 2009. The accounting department of Thompson has started the fixed- asset and depreciation schedule presented below. You have been asked to assist in completing this schedule. In addition to ascertaining that the data already on the schedule are correct, you have obtained the following information from the company’s records and personnel: a. Depreciation is computed from the first of the month acquisition to the first of the month of disposition. b. Land A and Building A were acquired from a predecessor corporation. Thompson paid 812,000 for the land and building together. At the time of acquisition, the land had a fair value of 72,000 and the building had a fair value of 828,000. c. Land b was acquired on October 2, 2009, in exchange for 3,000 newly issued shares of Thompson’s common stock. At the date of acquisition, the stock had a par value of $5 per share and a fair value of $25 per share. During October 2009, Thompson paid $10,400 to demolish an existing building on this land so it could construct a new building. d. Construction of Building B on the newly acquired land began on October 1, 2010. By September 30, 2011, Thompson had paid $210,000 of the estimated total construction costs of $300,000. Estimated completion and occupancy are July 2012. e. E. Certain equipment was donated to the corporation by the city. An independent appraisal of the equipment when donated placed the fair value of $16,000 and the residual value at $2,000. f. Machine A’s total cost of $110,000 includes installation charges of $550 and normal repairs and maintenance of $11,000. Residual value is estimated at 5,500. Machine A was sold on February 1, 2011. g. On October 1, 2010, Machine B was acquired with a down payment of $4,000 and the remaining payments to be made in 10 annual installments of $4,000 each beginning October 1, 2011. The prevailing interest rate was 8% . Fixed Asset and Depreciation Schedule For Fiscal Years Ended September 30, 2010 and September 30, 2011 Depreciation for Year Ended 9/30 Assets Acquisition Date Cost Residual Depreciation Method Estimated Life in Years 2010 2011 Land A 10/1/2009 (1) N/A N/A N/A N/A N/A Building A 10/1/2009 (2) 47,500 SL (3) 14,000 (4) Land B 10/2/2009 (5) N/A N/A N/A N/A N/A Building B under construction 210,000 to date - SL 30 - (6) Donated Equipment 10/2/2009 (7) 2,000 150% declining balance 10 (8) (9) Machine A 10/2/2009 (10) 5,500 Sum-of-the-digits 10 (11) (12) Machine B 10/1/2010 (13) SL 15 _ (14) N/A= Not Applicable Required:Supply the correct amount for each numbered item on the schedule. Round each answer to the nearest dollar. (AICPA adapted)
Accounting Problem – Construct a pro forma income statement Accounting Problem – Construct a pro forma income statement Question 1. Construct a pro forma income statement for the first year and second year for the following assumptions:Units of sales in year 1: 110,000Price per Unit: $11Variable cost per unit: 30%Fixed Costs: $125,000Income taxes: 15%Interest Expense: $200,000In year 2, Price per unit increases to $11.50, and unit of sales increases by 5%, all other assumptions remain the same.
Template Case Studies 5-2 Template Case Studies 5-2 Question Refer to and use the following abbreviations for the problems below: • R = Royalty Payment • CT = Artist Credit Total • SV = Share Value • CV = Credit Value • RP = Retail Price • PD= Packaging Deduction • R%=Royalty Percentage of Suggested Retail Price minus packaging1. Ziam wants to know how much his royalty will be for a song he has written. How will it be calculated? Write the steps or the formulas that will be used to calculate his royalty payment.2. Ziam has written a popular song titled “Going There,” which has been recorded by a well-known performer. He recently received a royalty check for $7,000. If Ziam gets a 0.5 share of the royalties and the credit value is $3.50, what was the credit total that his song earned? Write out the problem in the form of an equation and solve it.3. Ziam quickly published another song, “Take Me There,” that is played even more often than “Going There.” If his first song earns 4,000 credits and his second song earns 6,000 credits, what will the royalty payment be from the two songs if the credit value remains at $3.50?4. Ziam is considering an offer to perform his own songs on a CD to be titled “Waiting There.” In the past, he has written but not performed his music. If Ziam’s royalty is 0.12 of the suggested retail price of $15.00, but 0.25 of the retail price is deducted for packaging before Ziam’s royalty is calculated, how much will he receive for sale of the CD? Write your answer in the form of an equation and solve it.Use the equation below and show your work in this cell to solve for the royalty payment. Manual Equation: R = (CT)(SV)(CV)
case study of Alpha Toiletries Limited case study of Alpha Toiletries Limited Question Describe and analyse the most important strategic issues facing the company. Identify the strategic options for improving the business and briefly evaluate them.A case study of Alpha Toiletries Limited in Chapter 16 of your textbook:Williamson, D., Cooke, P., Jenkins, W. & Moreton, K. M. (2004) Strategic management and business analysis (pp. 221–227). Amsterdam: Butterworth-Heinemann.
Question_CH2_7Dec_4th Question_CH2_7Dec_4th Question 91. General Electric’s formula for acquisition success is E = Q x A. Which of the following statements is TRUE about this formula? a. The success of the acquisition is a function of the quality of the surviving employees. b. The success of the acquisition is affected by the acceptance of the acquisition decision by the employees involved. c. The success of the acquisition is determined by the quantity of employees retained and the attitudes of the survivors. d. The success of the acquisition is a function of the employee productivity quotient multiplied by the adaptability of the survivors. 92. As a senior member of the HR department at TransOceanic Industries, Abigail realizes that the firm’s upcoming merger with its main competitor will result in challenges in the year ahead. Abigail a. recognizes that stability in HR activities will be critically important, especially in the area of compensation and benefits. b. realizes that many of the TransOceanic HR employees will become redundant. c. anticipates that the two HR departments will continue separate operations. d. there will be a reduction in voluntary turnover at executive levels as key employees engage in a power struggle. 93. The main customers for HR services include all the following EXCEPT a. employees b. managers c. organizational clients d. other departments 94. Useful metrics have all the following characteristics EXCEPT a. the measures provide subjective data. b. results can be compared both internally and externally. c. calculations can be clearly understood. d. measures are linked to strategic and operational objectives. 95. All of the following are examples of HR metrics EXCEPT a. retention rate of legal secretaries at a law firm. b. number of tax clients processed by tax preparers at an accounting firm. c. average time to fill teller positions at a bank. d. unemployment levels in the metropolitan area. 96. There are eight employees in the accounts receivable department. Four employees work 40 hours a week, and the other four employees work 20 hours a week. How many FTEs are there in this department? a. 4 b. 6 c. 8 d. 10 97. As director of HR for a large regional car dealership with 10 locations, Ed must calculate the potential return on investment (ROI) of implementing a new training program to improve car salespersons’ effectiveness in convincing new car buyers to finance the car through the dealership. In order to calculate the ROI of the new training program, he needs to collect all of the following data EXCEPT a. the cost of developing and implementing the new training program. b. the dollar value of potential additional new car financing through the dealership in the year following the training program. c. the cost of alternative productivity-enhancing training programs for car salespersons. d. the costs of running update seminars on the new methods for salespersons for one year following the initial training. 98. The return on investment calculation shows the value of expenditures for HR activities. It also shows a. whether the HR department is effective in meeting organizational goals. b. the economic cost of HR to the firm. c. the value added per each HR staff member. d. how long it will take the HR activities to pay for themselves. 99. The new CEO of the firm has told the vice president of HR that all HR activities must use the cost of capital as the benchmark against which their the returns from the activities are measured. The new CEO is implementing a. economic value added (EVA). b. the balanced scorecard. c. subjective HR metrics. d. return on assets (ROA). 100. Under the balanced scorecard approach, an organization’s performance is measured using all of the following categories EXCEPT the ____ perspective. a. competitive b. learning and growth c. financial d. internal business processes 101. An example of an operational HR metric is a. revenue generated per FTE. b. the ROI of human capital expenditures. c. benefits cost as a percentage of payroll. d. the ratio of managers to non-managers. 102. Which of the following statements is TRUE? a. Industries which have high median revenue per FTE also have high median income per FTE. b. The non-defense government sector has high median income per FTE compared with the private sector. c. Utilities have the highest median income per FTE of all industries. d. The revenue generated per FTE is a more important metric for analysis of HR effectiveness than is income generated per FTE. 103. Which of the following statements isTRUE about the balanced scorecard approach to measurement of HR performance? a. The balanced scorecard approach stresses the measurement of qualitative HR contributions rather than rather than tangible or financial contributions of HR. b. A major advantage of the balanced scorecard approach is the speed with which it can be implemented. c. The balanced scorecard approach eliminates most of the subjectivity involved in measuring the strategic performance of HR in an organization. d. The balanced scorecard helps an organization understand the cost/benefit payoffs of its HR activities. 104. A(n) ____ is a formal research effort that evaluates the current state of HR management in an organization. a. EVA assessment b. a benchmarking study. c. HR audit d. utility analysis 105. One approach to assessing HR effectiveness is ____, which compares specific measures of performance against data on those measures in other organizations. a. benchmarking b. ROI c. EVA d. the balanced scorecard TRUE/FALSE 1. It is critical that HR executives be included immediately after top management has made strategic decisions. 2. Only a minority of firms actually monitor statistics on effectiveness and productivity. 3. Companies that follow HR best practices, such as paying high wages and providing employment security, tend to have higher market value than firms who do not follow these practices. 4. An organization’s culture can be a source of competitive advantage. 5. A pharmaceutical sales representative’s unit labor costs could be calculated by the dollar value of his/her monthly sales orders less returns. 6. A company with high wages cannot be economically competitive. 7. High turnover of employees does not affect productivity if the overall quality of the employees remains the same. 8. The attention of U.S. businesses to customer service and quality in programs such as Total Quality Improvement has resulted in increased customer satisfaction with quality. 9. The HR department’s cost of processing each applicant for non-exempt openings is a measure of effectiveness. 10. Efficiency compares inputs and costs to outputs and benefits. 11. Legal restrictions prohibit European Union firms from moving production to less expensive countries. 12. U.S. companies can find employees in developing nations who are willing to work for significantly lower wages than U.S. employees. 13. An expansion of a U.S. firm into a European Union nation would involve only minor alterations in HR activities. 14. ModernMade Textiles has successfully used a piece-rate compensation plan in its U.S. plants for decades. The effect of compensation policies is similar from one culture to another, so this plan can be implemented in new plants ModernMade opens in other countries as long as it is adapted to the local currency and rates of pay. 15. In most organizations that do HR planning, the majority of the responsibility for this planning is given to the top HR executives and subordinate staff specialists. 16. An advantage of family-owned businesses is that succession planning is simple if the founder has children and/or grandchildren. 17. The strongest evidence of successful HR planning in an organization is if the human resources have been consistently aligned with the needs of the business over a period of time. 18. Judgmental techniques for forecasting the future need for human resources has been largely replaced by mathematical methods. 19. Because of the high degree of uncertainty in the environment, most HR planning experts recommend forecasting no more than three years into the future. 20. The estimated internal labor supply for a particular department is calculated by subtracting projected outflows from the department from the current staffing level and adding the projected inflows to the department. 21. The intention of the Worker Adjustment and Retraining Notification (WARN) Act is to give employees advance notice of an impending layoff. 22. Downsizing reduces costs in the short term but does not generate additional revenue for the organization. 23. An employer that lays off a long-term employee has no legal duty to provide severance pay. 24. A primary focus of mergers is cost savings through elimination of employees. 25. The success of acquisitions is determined by the savings in labor costs and other financial efficiencies, not by psychological or “soft” factors. 26. Despite all the focus on metrics, one should always remember that the HR function cannot be objectively quantified. 27. Typically, HR metrics have been focused on internal HR expenditures and effectiveness. 28. To be useful, HR metrics must be tied to financial performance, such as revenues or expenditures. 29. Revenue minus expenses divided by the number of FTEs gives the income generated per FTE. 30. The balanced scorecard is especially attractive as a measure of HR effectiveness, because the use of the four perspectives eliminates subjectivity in the process. 31. The cost per employee of HR staff declines as the size of the organization’s workforce increases. 32. Abbeyville Dairy does not have a formal HR professional. The top executives wish to identify problems the company may have with legal compliance and record keeping. It would be advisable for Abbeyville Dairy to conduct an HR audit. ESSAY 1. Why is strategic HR management essential for organizational success? 2. What is environmental scanning? Why is it important? What information does it convey to the HR manager? . 3. When a U.S. organization is planning to move beyond the import/export phase of international interaction, what are the main factors it must consider in order to be successful? . 4. What strategies are available to an organization with a human resource surplus? What are the advantages and disadvantages of each? 5. What are HR metrics and why are they important to organizations? Give examples of HR metrics.
general business data bank general business data bank Question 1. The four key elements that make the current business environment different from the past include globalization, technological change, the importance of knowledge and ideas and collaboration across organizational boundaries. True False 2. It can be said that technology both complicates things and creates new opportunities. True False 3. Using personal technology such as a BlackBerry, means that you must be available all of the time to do the best job possible. True False 4. Knowledge management is a set of practices aimed at discovering and harnessing the competition's intellectual resources. True False 5. Collaboration can occur between but not within organizations. True False 6. Better serving the customer can start with involving the customer more in company decisions, especially when it comes to discovering more about customer attitudes. True False 7. The key to company success is how much the industry in which it operates will affect society or how much it will grow. True False 8. The fundamental success drivers for an organization are innovation, quality, speed, and product delivery time. True False 9. Innovation is the introduction of new goods and services. True False 10. If an organization does not innovate, it will die. True False 11. Quality is the excellence of your product (including goods and services). True False 12. Total quality includes preventing defects before they occur. True False 13. Today, customers value both the quality of physical goods and the quality of services. True False 14. One dimension of service quality is making it easy and enjoyable for customers to experience a service or to buy and use products. True False 15. Corporate speed often separates the winners from the losers in business. True False 16. "Cost competitiveness" means pricing your products lower than all competitors' products. True False 17. Managing for competitive advantage includes delivering innovation, quality, service, speed, and cost competitiveness. True False 18. Management is the process of working with people and resources to make profit at all costs. True False 19. To be efficient is to achieve organizational goals. To be effective is to achieve goals with minimum waste of resources. True False 20. Efficiency is far more important than effectiveness in today's competitive environment. True False