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FIN 515 Managerial Finance Course Week 8 FINAL EXAM_ALL Four SETS All Correct_Answer

FIN 515 Managerial Finance Course Week 8 FINAL EXAM_ALL Four SETS All Correct_Answer

FIN 515 Managerial Finance Course Week 8 FINAL EXAM_ALL Four SETS All Correct_Answer

FIN 515 Managerial Finance Course Week 8 FINAL EXAM_ALL Four SETS All Correct_Answer

FIN 515 Managerial Finance Course Week 8 FINAL EXAM_ALL Four SETS All Correct_Answer

FIN 515 Managerial Finance Course Week 8 FINAL EXAM_ALL Four SETS All Correct_Answer

Set 1

Final Exam Page 1

1. (TCO A) Which of the following does NOT always increase a company’s market value? (Points : 5)
Increasing the expected growth rate of sales
Increasing the expected operating profitability (NOPAT/Sales)
Decreasing the capital requirements (Capital/Sales)
Decreasing the weighted average cost of capital
Increasing the expected rate of return on invested capital

2. (TCO F) Which of the following statements is correct? (Points : 5)
The NPV, IRR, MIRR, and discounted payback (using a payback requirement of 3 years or less) methods always lead to the same accept/reject decisions for independent projects.
For mutually exclusive projects with normal cash flows, the NPV and MIRR methods can never conflict, but their results could conflict with the discounted payback and the regular IRR methods.
Multiple IRRs can exist, but not multiple MIRRs. This is one reason some people favor the MIRR over the regular IRR.
If a firm uses the discounted payback method with a required payback of 4 years, then it will accept more projects than if it used a regular payback of 4 years.
The percentage difference between the MIRR and the IRR is equal to the project’s WACC.

3. (TCO D) Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 25% for the next 4 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The company’s last dividend, D0, was $1.25, its beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the current price of the common stock?
a. $26.77
b. $27.89
c. $29.05
d. $30.21
e. $31.42
(Points : 20)

4. (TCO G) Singal Inc. is preparing its cash budget. It expects to have sales of $30,000 in January, $35,000 in February, and $35,000 in March. If 20% of sales are for cash, 40% are credit sales paid in the month after the sale, and another 40% are credit sales paid 2 months after the sale, what are the expected cash receipts for March?
a. $24,057
b. $26,730
c. $29,700
d. $33,000
e. $36,300
(Points : 20)

Final Exam Page 2
1. (TCO H) Zervos Inc. had the following data for 2008 (in millions). The new CFO believes (a) that an improved inventory management system could lower the average inventory by $4,000, (b) that improvements in the credit department could reduce receivables by $2,000, and (c) that the purchasing department could negotiate better credit terms and thereby increase accounts payable by $2,000. Furthermore, she thinks that these changes would not affect either sales or the costs of goods sold. If these changes were made, by how many days would the cash conversion cycle be lowered?
Original Revised
Annual sales: unchanged
Cost of goods sold: unchanged
Average inventory: lowered by $4,000
Average receivables: lowered by $2,000
Average payables: increased by $2,000
Days in year $110,000
$80,000
$20,000
$16,000
$10,000
365 $110,000
$80,000
$16,000
$14,000
$12,000
365

a. 34.0
b. 37.4
c. 41.2
d. 45.3
e. 49.8 (Points : 30)

2. (TCO C) Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its nonfree trade credit? (Assume a 365-day year.)
a. 20.11%
b. 21.17%
c. 22.28%
d. 23.45%
e. 24.63%
(Points : 30)

3. (TCO E) You were hired as a consultant to the Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from retained earnings is 11.25%, and the tax rate is 40%. The firm will not be issuing any new common stock. What is Quigley’s WACC?
a. 8.15%
b. 8.48%
c. 8.82%
d. 9.17%
e. 9.54%
(Points : 30)

4. (TCO B) A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%, and the FCFs are expected to continue growing at a 5% rate after Year 3. Assuming that the ROIC is expected to remain constant in Year 3 and beyond, what is the Year 0 value of operations, in millions?
Year: 1 2 3
Free cash flow: -$15 $10 $40
a. $315
b. $331
c. $348
d. $367
e. $386
(Points : 35)

5. (TCO G) Based on the corporate valuation model, Hunsader’s value of operations is $300 million. The balance sheet shows $20 million of short-term investments that are unrelated to operations, $50 million of accounts payable, $90 million of notes payable, $30 million of long-term debt, $40 million of preferred stock, and $100 million of common equity. The company has 10 million shares of stock outstanding. What is the best estimate of the stock’s price per share?
a. $13.72
b. $14.44
c. $15.20
d. $16.00
e. $16.80
(Points : 35)

6. TCO G) Clayton Industries is planning its operations for next year, and Ronnie Clayton, the CEO, wants you to forecast the firm’s additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions.
Last year’s sales = S0 $350 Last year’s accounts payable $40
Sales growth rate = g 30% Last year’s notes payable $50
Last year’s total assets = A0* $500 Last year’s accruals $30
Last year’s profit margin = PM 5% Target payout ratio 60%

a. $102.8
b. $108.2
c. $113.9
d. $119.9
e. $125.9 (Points : 30)

Set 2

1. (TCO A) Which of the following does NOT always increase a company’s market value? (Points : 5)
Increasing the expected growth rate of sales
Increasing the expected operating profitability (NOPAT/Sales)
Decreasing the capital requirements (Capital/Sales)
Decreasing the weighted average cost of capital
Increasing the expected rate of return on invested capital

2. (TCO F) Which of the following statements is correct? (Points : 5)
The MIRR and NPV decision criteria can never conflict.
The IRR method can never be subject to the multiple IRR problem, while the MIRR method can be.
One reason some people prefer the MIRR to the regular IRR is that the MIRR is based on a generally more reasonable reinvestment rate assumption.
The higher the WACC, the shorter the discounted payback period.
The MIRR method assumes that cash flows are reinvested at the crossover rate.

3. (TCO D) The Ramirez Company’s last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price?
a. $41.58
b. $42.64
c. $43.71
d. $44.80
e. $45.92
(Points : 20)

4. (TCO G) The ABC Corporation’s budgeted monthly sales are $4,000. In the first month, 40% of its customers pay and take the 3% discount.
The remaining 60% pay in the month following the sale and don’t receive a discount.
ABC’s bad debts are very small and are excluded from this analysis.
Purchases for next month’s sales are constant each month at $2,000. Other payments for wages, rent, and taxes are constant at $500 per month.
Construct a single month’s cash budget with the information given. What is the average cash gain or (loss) during a typical month for the ABC Corporation? (Points : 20)

5. (TCO G) Howton & Howton Worldwide (HHW) is planning its operations for the coming year, and the CEO wants you to forecast the firm’s additional funds needed (AFN). The firm is operating at full capacity. Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 50%, which the firm’s investment bankers have recommended. Based on the AFN equation, by how much would the AFN for the coming year change if HHW increased the payout from 10% to the new and higher level? All dollars are in millions.
Last year’s sales = S0 $300 Last year’s accounts payable $50
Sales growth rate = g 40% Last year’s notes payable $15
Last year’s total assets = A0* $500 Last year’s accruals $20
Last year’s profit margin = PM 20% Initial payout ratio 10%

a. $31.9
b. $33.6
c. $35.3
d. $37.0
e. $38.9 (Points : 30)

The AFN model forecasts MicroDrive’s need for external funds to support its forecasted 2011 sales. Year 0 is 2010, which has just ended, and Year 1 is 2011, which has just begun. (Ignore rounding differences.)

Part II. Additional Funds Needed (AFN) to Support Growth

Page 2

1. (TCO H) Your consulting firm was recently hired to improve the performance of Shin-Soenen Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to determine the firm’s cash conversion cycle. Using the following information and a 365-day year, what is the firm’s present cash conversion cycle?
Average inventory =
Annual sales =
Annual cost of goods sold =
Average accounts receivable =
Average accounts payable = $75,000
$600,000
$360,000
$160,000
$25,000

a. 120.6 days
b. 126.9 days
c. 133.6 days
d. 140.6 days
e. 148.0 days (Points : 30)

2. (TCO C) Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its nonfree trade credit? (Assume a 365-day year.)
a. 20.11%
b. 21.17%
c. 22.28%
d. 23.45%
e. 24.63%
(Points : 30)

3. (TCO E) Daves Inc. recently hired you as a consultant to estimate the company’s WACC. You have obtained the following information. (1) The firm’s noncallable bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $1,050.00. (2) The company’s tax rate is 40%. (3) The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stock’s beta is 1.20. (4) The target capital structure consists of 35% debt and the balance is common equity. The firm uses the CAPM to estimate the cost of common stock, and it does not expect to issue any new shares. What is its WACC?
a. 7.16%
b. 7.54%
c. 7.93%
d. 8.35%
e. 8.79%

(Points : 30)

4. (TCO B) A company forecasts the free cash flows (in millions) shown below. The weighted average cost of capital is 13%, and the FCFs are expected to continue growing at a 5% rate after Year 3. Assuming that the ROIC is expected to remain constant in Year 3 and beyond, what is the Year 0 value of operations, in millions?
Year: 1 2 3
Free cash flow: -$15 $10 $40
a. $315
b. $331
c. $348
d. $367
e. $386

5. (TCO G) Based on the corporate valuation model, the value of a company’s operations is $900 million. Its balance sheet shows $70 million in accounts receivable, $50 million in inventory, $30 million in short-term investments that are unrelated to operations, $20 million in accounts payable, , $140 million in retained earnings, and $280 million in total common equity. If the company has 25 million shares of stock outstanding, what is the best estimate of the stocks price per share?
a. $23.00
b. $25.56
c. $28.40
d. $31.24
e. $34.36
verified 2 places, pretty sure.
(Points : 35)

Set 3

Week 8 : Final Week – Final Exam Page 1

1. (TCO A) Which of the following does NOT always increase a company’s market value? (Points : 5)
Increasing the expected growth rate of sales
Increasing the expected operating profitability (NOPAT/Sales)
Decreasing the capital requirements (Capital/Sales)
Decreasing the weighted average cost of capital
Increasing the expected rate of return on invested capital

2. (TCO F) Which of the following statements is correct? (Points : 5)
For a project with normal cash flows, any change in the WACC will change both the NPV and the IRR.
To find the MIRR, we first compound cash flows at the regular IRR to find the TV, and then we discount the TV at the WACC to find the PV.
The NPV and IRR methods both assume that cash flows can be reinvested at the WACC. However, the MIRR method assumes reinvestment at the MIRR itself.
If two projects have the same cost, and if their NPV profiles cross in the upper right quadrant, then the project with the higher IRR probably has more of its cash flows coming in the later years.
If two projects have the same cost, and if their NPV profiles cross in the upper right quadrant, then the project with the lower IRR probably has more of its cash flows coming in the later years.

3. (TCO D) Church Inc. is presently enjoying relatively high growth because of a surge in the demand for its new product. Management expects earnings and dividends to grow at a rate of 25% for the next 4 years, after which competition will probably reduce the growth rate in earnings and dividends to zero, i.e., g = 0. The company’s last dividend, D0, was $1.25, its beta is 1.20, the market risk premium is 5.50%, and the risk-free rate is 3.00%. What is the current price of the common stock?
a. $26.77
b. $27.89
c. $29.05
d. $30.21
e. $31.42
(Points : 20)

4. (TCO G) The ABC Corporation’s budgeted monthly sales are $4,000. In the first month, 40% of its customers pay and take the 3% discount.
The remaining 60% pay in the month following the sale and don’t receive a discount.
ABC’s bad debts are very small and are excluded from this analysis.
Purchases for next month’s sales are constant each month at $2,000. Other payments for wages, rent, and taxes are constant at $500 per month.
Construct a single month’s cash budget with the information given. What is the average cash gain or (loss) during a typical month for the ABC Corporation? (Points : 20)

5. (TCO G) Howton & Howton Worldwide (HHW) is planning its operations for the coming year, and the CEO wants you to forecast the firm’s additional funds needed (AFN). The firm is operating at full capacity. Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 50%, which the firm’s investment bankers have recommended. Based on the AFN equation, by how much would the AFN for the coming year change if HHW increased the payout from 10% to the new and higher level? All dollars are in millions.
Last year’s sales = S0 $300 Last year’s accounts payable $50
Sales growth rate = g 40% Last year’s notes payable $15
Last year’s total assets = A0* $500 Last year’s accruals $20
Last year’s profit margin = PM 20% Initial payout ratio 10%

a. $31.9
b. $33.6
c. $35.3
d. $37.0
e. $38.9 (Points : 30)

Week 8 : Final Week – Final Exam Page 2

1. (TCO H) The Dewey Corporation has the following data, in thousands. Assuming a 365-day year, what is the firm’s cash conversion cycle?
Annual sales =
Annual cost of goods sold =
Inventory =
Accounts receivable =
Accounts payable = $45,000
$31,500
$4,000
$2,000
$2,400

a. 25 days
b. 28 days
c. 31 days
d. 35 days
e. 38 days (Points : 30)

2. (TCO C) Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its nonfree trade credit? (Assume a 365-day year.)
a. 20.11%
b. 21.17%
c. 22.28%
d. 23.45%
e. 24.63%
(Points : 30)

3. (TCO E) You were hired as a consultant to the Quigley Company, whose target capital structure is 35% debt, 10% preferred, and 55% common equity. The interest rate on new debt is 6.50%, the yield on the preferred is 6.00%, the cost of common from retained earnings is 11.25%, and the tax rate is 40%. The firm will not be issuing any new common stock. What is Quigley’s WACC?
a. 8.15%
b. 8.48%
c. 8.82%
d. 9.17%
e. 9.54%
(Points : 30)

4. (TCO B) Leak Inc. forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 11% and FCF is expected to grow at a rate of 5% after Year 2, what is the Year 0 value of operations, in millions? Assume that the ROIC is expected to remain constant in Year 2 and beyond (and do not make any half-year adjustments).
Year: 1 2
Free cash flow: -$50 $100
a. $1,456
b. $1,529
c. $1,606
d. $1,686
e. $1,770
(Points : 35)

5. (TCO G) Based on the corporate valuation model, the value of a company’s operations is $1,200 million. The company’s balance sheet shows $80 million in accounts receivable, $60 million in inventory, and $100 million in short-term investments that are unrelated to operations. The balance sheet also shows $90 million in accounts payable, $120 million in notes payable, $300 million in long-term debt, $50 million in preferred stock, $180 million in retained earnings, and $800 million in total common equity. If the company has 30 million shares of stock outstanding, what is the best estimate of the stock’s price per share?
a. $24.90
b. $27.67
c. $30.43
d. $33.48
e. $36.82
(Points : 35)

6. Sapp Trucking’s balance sheet shows a total of noncallable $45 million long-term debt with a coupon rate of 7.00% and a yield to maturity of 6.00%. This debt currently has a market value of $50 million. The balance sheet also shows that the company has 10 million shares of common stock, and the book value of the common equity (common stock plus retained earnings) is $65 million. The current stock price is $22.50 per share; stockholders’ required return, rs, is 14.00%; and the firm’s tax rate is 40%. The CFO thinks the WACC should be based on market value weights, but the president thinks book weights are more appropriate. What is the difference between these two WACCs?

7. based on the corporate valuation model, bernile Inc’s value of operation is $750 million. Its balance sheet shows $50 million of short-term investments that are unrelated to operations, $100 million of accounts payable, $100 million of notes payable, $200 million of long term debt, $40 million of common stock (par plus pain -in – capital), and $160 million of retained earnings. What is the best estimate for the firm’s value of equity, in millions

Set 4

Question 1. 1. (TCO A) Which of the following statements is NOT correct? (Points : 5)
The corporate valuation model can be used both for companies that pay dividends and those that do not pay dividends.
The corporate valuation model discounts free cash flows by the required return on equity.
The corporate valuation model can be used to find the value of a division.
An important step in applying the corporate valuation model is forecasting the firm’s pro forma financial statements.
Free cash flows are assumed to grow at a constant rate beyond a specified date in order to find the horizon, or terminal, value.

Question 2. 2. (TCO F) Which of the following statements is correct? (Points : 5)
One advantage of the NPV over the IRR is that NPV takes account of cash flows over a project’s full life, whereas IRR does not.
One advantage of the NPV over the IRR is that NPV assumes that cash flows will be reinvested at the WACC, whereas IRR assumes that cash flows are reinvested at the IRR. The NPV assumption is generally more appropriate.
One advantage of the NPV over the MIRR method is that NPV takes account of cash flows over a project’s full life, whereas MIRR does not.
One advantage of the NPV over the MIRR method is that NPV discounts cash flows, whereas the MIRR is based on undiscounted cash flows.
Since cash flows under the IRR and MIRR are both discounted at the same rate (the WACC), these two methods always rank mutually exclusive projects in the same order.

Question 3. 3. (TCO D) The Ackert Company’s last dividend was $1.55. The dividend growth rate is expected to be constant at 1.5% for 2 years, after which dividends are expected to grow at a rate of 8.0% forever. The firm’s required return (rs) is 12.0%. What is the best estimate of the current stock price?
a. $37.05
b. $38.16
c. $39.30
d. $40.48
e. $41.70
(Points : 20)

4. (TCO D) The Ramirez Company’s last dividend was $1.75. Its dividend growth rate is expected to be constant at 25% for 2 years, after which dividends are expected to grow at a rate of 6% forever. Its required return (rs) is 12%. What is the best estimate of the current stock price?
a. $41.58
b. $42.64
c. $43.71
d. $44.80
e. $45.92
(Points : 20)

Question 5. 4. (TCO G) The Chadmark Corporation’s budgeted monthly sales are $3,000. In the first month, 40% of its customers pay and take the 2% discount.
The remaining 60% pay in the month following the sale and don’t receive a discount.
Chadmark’s bad debts are very small and are excluded from this analysis. Purchases for next month’s sales are constant each month at $1,500.
Other payments for wages, rent, and taxes are constant at $700 per month. Construct a single month’s cash budget with the information given.
What is the average cash gain or (loss) during a typical month for the Chadmark Corporation?
(Points : 20)

Question 5. 5. (TCO G) Clayton Industries is planning its operations for next year, and Ronnie Clayton, the CEO, wants you to forecast the firm’s additional funds needed (AFN). The firm is operating at full capacity. Data for use in your forecast are shown below. Based on the AFN equation, what is the AFN for the coming year? Dollars are in millions.
Last year’s sales = S0 $350 Last year’s accounts payable $40
Sales growth rate = g 30% Last year’s notes payable $50
Last year’s total assets = A0* $500 Last year’s accruals $30
Last year’s profit margin = PM 5% Target payout ratio 60%

a. $102.8
b. $108.2
c. $113.9
d. $119.9
e. $125.9 (Points : 30)

Time Remaining:

Page: 1 2

Final Exam Page 2

Question 1. 1. (TCO H) Your consulting firm was recently hired to improve the performance of Shin-Soenen Inc, which is highly profitable but has been experiencing cash shortages due to its high growth rate. As one part of your analysis, you want to determine the firm’s cash conversion cycle. Using the following information and a 365-day year, what is the firm’s present cash conversion cycle?
Average inventory =
Annual sales =
Annual cost of goods sold =
Average accounts receivable =
Average accounts payable = $75,000
$600,000
$360,000
$160,000
$25,000

a. 120.6 days
b. 126.9 days
c. 133.6 days
d. 140.6 days
e. 148.0 days (Points : 30)

Question 2. 2. (TCO C) Bumpas Enterprises purchases $4,562,500 in goods per year from its sole supplier on terms of 2/15, net 50. If the firm chooses to pay on time but does not take the discount, what is the effective annual percentage cost of its nonfree trade credit? (Assume a 365-day year.)
a. 20.11%
b. 21.17%
c. 22.28%
d. 23.45%
e. 24.63%
(Points : 30)

Question 3. 3. (TCO E) Daves Inc. recently hired you as a consultant to estimate the company’s WACC. You have obtained the following information. (1) The firm’s noncallable bonds mature in 20 years, have an 8.00% annual coupon, a par value of $1,000, and a market price of $1,050.00. (2) The company’s tax rate is 40%. (3) The risk-free rate is 4.50%, the market risk premium is 5.50%, and the stock’s beta is 1.20. (4) The target capital structure consists of 35% debt and the balance is common equity. The firm uses the CAPM to estimate the cost of common stock, and it does not expect to issue any new shares. What is its WACC?
a. 7.16%
b. 7.54%
c. 7.93%
d. 8.35%
e. 8.79%
(Points : 30)

Question 4. 4. (TCO B) Leak Inc. forecasts the free cash flows (in millions) shown below. If the weighted average cost of capital is 11% and FCF is expected to grow at a rate of 5% after Year 2, what is the Year 0 value of operations, in millions? Assume that the ROIC is expected to remain constant in Year 2 and beyond (and do not make any half-year adjustments).
Year: 1 2
Free cash flow: -$50 $100
a. $1,456
b. $1,529
c. $1,606
d. $1,686
e. $1,770
(Points : 35)

5. (TCO G) Howton & Howton Worldwide (HHW) is planning its operations for the coming year, and the CEO wants you to forecast the firm’s additional funds needed (AFN). The firm is operating at full capacity. Data for use in the forecast are shown below. However, the CEO is concerned about the impact of a change in the payout ratio from the 10% that was used in the past to 50%, which the firm’s investment bankers have recommended. Based on the AFN equation, by how much would the AFN for the coming year change if HHW increased the payout from 10% to the new and higher level? All dollars are in millions.
Last year’s sales = S0 $300 Last year’s accounts payable $50
Sales growth rate = g 40% Last year’s notes payable $15
Last year’s total assets = A0* $500 Last year’s accruals $20
Last year’s profit margin = PM 20% Initial payout ratio 10%

a. $31.9
b. $33.6
c. $35.3
d. $37.0
e. $38.9 (Points : 30)

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FIN 515

BSOP 588 Managing Quality Week 8 Final Exam Answer

BSOP 588 Managing Quality Week 8 Final Exam Answer

BSOP 588 Managing Quality Week 8 Final Exam Answer

BSOP 588 Managing Quality Week 8 Final Exam Answer

BSOP 588 Managing Quality Week 8 Final Exam Answer

BSOP 588 Managing Quality Week 8 Final Exam Answer

BSOP 588 Managing Quality Week 8 Final Exam Answer

1. Question : (TCO E) Suggested reasons why many customer satisfaction efforts fail include all of the following EXCEPT:

Student Answer: using poor satisfaction measurement schemes

failing to weight quality dimensions equally

confusing loyalty with satisfaction

failing to identify appropriate quality dimensions

2. Question : (TCO D) Factors that should be considered when selecting Six Sigma projects include the following EXCEPT:

Student Answer: financial return.

impacts on customers and organizational effectiveness.

fit to existing government legislation(s) on quality.

probability of success.

3. Question : (TCO C) In a service context, lean production
is referred to as:

Student Answer: lean operation.

lean enterprise.

lean process.

lean service.

4. Question : (TCO C) Poka-yoke is:

Student Answer: an approach for mistake-proofing processes.

a Japanese organizational hierarchy.

an error-detection machine used in engineering industries.

a computer program used in streamlining processes.

5. Question : (TCO B) Marketplace performance indicators could include all of the following EXCEPT:

Student Answer: measures of business growth.

new product and geographic markets entered.

percentage of new product sales as appropriate.

customer surveys on product and service performance.

6. Question : (TCO I) A machined part is returned to the drilling department for rework. The additional labor that is used to correct the quality problem with the part is:

Student Answer: a prevention cost.

an appraisal cost.

an internal failure cost.

an external failure cost.

7. Question : (TCO A) _____ focuses on the elimination of waste in all forms, including defects requiring rework, unnecessary processing steps, unnecessary movement of materials or people, waiting time, excess inventory, and overproduction.

Student Answer: Lean approach

Six Sigma

Deming Quality Circles

Kaizen

8. Question : (TCO B) Robert Kaplan and David Norton developed a balanced scorecard which had four perspectives. Which one of the following is NOT one of them?

Student Answer: Financial

Industry

Customer

Innovation and Learning

9. Question : (TCO D) The Baldrige Award criteria, as a tool for self-assessment:

Student Answer: can be useful for firms never intending to apply for the award.

is most useful to firms intending to apply for the award.

is of little value if the firm has already applied for the award.

is of little value if the firm has already won the award.

10. Question : (TCO H) Focusing on how to maintain improvements occurs in which DMAIC phase?

Student Answer: Measure

Analyze

Improve

Control

Page: 1 2

1. Question : (TCO B) Explain why it is difficult to obtain a single, universal definition of quality. Be specific in your response.

2. Question : (TCO I) Define benchmarking. Identify the three major types of benchmarking, discuss their purposes and provide examples. Be specific in your response.

3. Question : (TCO G) Discuss the three major reasons why companies adopt total quality. Also, discuss the initial key steps are involved in the adoption process.

4. Question : (TCO F) Explain in detail why change is necessary in organizations. Describe the effects that change can have on quality management with respect to employee commitment and quality levels.

5. Question : (TCO H) Describe the six basic steps required to build the House of Quality. Describe, in general, where in the House are customer and technical requirements located. Also explain why it is important that each area of the House is “linked” with the others.

6. Question : (TCO C) Explain the concepts of lean production. Describe its relation to Six Sigma. Please provide examples of the pros and cons for linking them.

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BSOP 588 exam

HRM 599 Benefits Week 8 Final Exam Complete set 1 and set 2 A+ Answer

HRM 599 Benefits Week 8 Final Exam Complete set 1 and set 2 A+ Answer

HRM 599 Benefits Week 8 Final Exam Complete set 1 and set 2 A+ Answer

HRM 599 Benefits Week 8 Final Exam Complete set 1 and set 2 A+ Answer

HRM 599 Benefits Week 8 Final Exam Complete set 1 and set 2 A+ Answer

Set 1

1. Question : (TCO A) What are some of the legal and regulatory influences on discretionary benefits?

2. Question : (TCO B) Give a brief overview of the main provisions of HIPAA.

3. Question : (TCO C) Discuss the two forms of employer-sponsored disability coverage. Analyze the potential advantages of each for the employee and for the employer.

4. Question : (TCO D) Your company’s CEO is interested in implementing a new dental plan for employees and has asked you to do some research. The CEO wants you to report back to him in 3 weeks with the following information: What are the three main types of dental care plans? Discuss each plan and make a recommendation for your company.

5. Question : (TCO E) Discuss the various FASB rulings associated with retiree health insurance.

6. Question : (TCO F) You have recently been hired as an employee benefit consultant and have been asked to recommend the establishment of either a defined contribution or a defined benefit plan. Given the following employer objectives, which type of plan would you recommend? Specify the type of retirement plan you would recommend. Explain how your recommendation would handle the employer’s objectives.
Employer objectives include majority of employees are young would like to encourage long potential service concerned about providing retirement income, capital accumulation, and/or estate benefits concerned about limiting their funding costs and administrative expenses.

7. Question : (TCO G) Discuss the concept of “good business sense” of benefits communication and the primary objectives of an organization’s benefits communication program.

8.Question : (TCO H) Family assistance programs help employees with caring for loved ones, both young and old. Briefly describe the three types of family assistance programs and their benefits.

Set 2

Question 1. Briefly outline the key provisions of the Pension Protection Act of 2006.

Question 2. What are some of the legal and regulatory influences on discretionary benefits?

Question 3. What are the main characteristics of long-term disability insurance?

Question 4. Discuss and compare multiple-payer versus single-payer systems in the United States.

Question 5. Discuss the various FASB rulings associated with retiree health insurance.

Question 6. Compare the basic structure of a profit sharing plan, thrift/savings plan, a 401(K) plan, and an employee stock ownership plan. Why would an employer choose to implement each one of these plans over the other?

Question 7: Discuss the concept of “good business sense” of benefits communication and the primary objectives of an organization’s benefits communication program.

Question 8. Employers must provide some disclosure information regarding their benefits plan as spelled out by ERISA. One of those requirements includes a summary plan description, or SPD. What is an SPD? Briefly discuss the information that SPDs must provide.

Question 9. Family assistance programs help employees with caring for loved ones, both young and old. Briefly describe the three types of family assistance programs and their benefits.

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HRM 599

HRM 587 Managing Organizational Change Final Exam All Correct Set 1 and 2_Answers

HRM 587 Managing Organizational Change Final Exam All Correct A+ Set 1 and 2_Answers

HRM 587 Managing Organizational Change Final Exam All Correct A+ Set 1 and 2_Answers

HRM 587 Managing Organizational Change Final Exam All Correct A+ Set 1 and 2_Answers

HRM 587 Managing Organizational Change Final Exam All Correct A+ Set 1 and 2_Answers

Set 1

Week 8 : Final Exam – Final Exam

Page 1

Question 1. 1. (TCO All) For the next set of questions , you will first select ONE of the TCOs of the course. Then, you will be asked to write an essay about the project you worked on this term over your two companies’ change program based on the TCO you selected above. Select the TCO your essay question will cover:

TCO A – Given that progressive and successful companies require their employees to embrace change, examine how changing work conditions impact the employees.
TCO B – Given the inherent reality that all organizations must experience change in order to improve, demonstrate how “models” are used in Change Management, for diagnosing an organization’s need for change.
TCO C – Given external, internal and/or multi-levels of organization factors that drive change, assess and create a leadership model which supports and promotes each type of change within the organization.
TCO D – Given that an organization’s mission and vision will determine its strategy towards change, ensure that an organization’s change initiative is aligned with and capitalizes on its culture and mission in preparation for change.
TCO E – Given a selected Change Management implementation “model”, determine the causes of change and develop a plan of action to implement the change.
TCO F – Given that both organizations and their employees commonly resist change, understand how to recognize and overcome barriers to change and develop a strategy to manage resistance to change that will ensure successful implementation of change.
TCO G – Given that developing a “vision for change” and communicating that “vision” is a critical part of the change process, analyze the key elements of the “vision for change” and develop a strategy to communicate the change to the stakeholder.
TCO H – Given the organization’s goal of creating and implementing a sustainable change while moving toward becoming a “learning” organization, develop a plan to implement change in a sustainable manner that can be applied to any change.

Using the TCO you selected from the list above, which you felt was most relevant to your project this term, write an essay answer explaining how the change management you saw in one of your companies from your project this term followed or failed to follow the theory of success ingrained in the TCO you have selected.

State the #1 thing you think that company’s change agent did which most contributed to the success or failure of the change and why that relates to the TCO you selected.
• Include in the answer the name of the company you are discussing.
• Explain/analyze why you think this way.
(Points : 35)

Question 2. 2. (TCOs A, E) Your project this term asked you to compare and contrast two companies’ change projects or programs for change. This question will review what you learned about the change projects in a continuation of your project. It will ask you to apply course information to your project companies. For your answer, be sure to reference the names of the companies you studied in your project this term to help your instructor determine the score of your response.

Evaluate ONE of your two companies’ change interventions through the lens of Kotter’s Eight Step Model. State first the steps. (10 points) Assess how well the company realized each of the steps and what areas were less than successful in their implementation. Speak to those failed steps and what the implications were for the success or failure of the implementation. (10 points) Do you feel that Kotter’s model did assist (if it was used) or would have assisted (if you feel it wasn’t used) in this change? Why or why not? (15 points) (Points : 35)

Question 3. 3. (TCOs E,H) Your project this term asked you to compare and contrast two companies’ change projects or programs for change. This question will review what you learned about the change projects in a continuation of your project. It will ask you to apply course information to your project companies. For your answer, be sure to reference the names of the companies you studied in your project this term to help your instructor determine the score of your response.

You will assess the “sustainability” of the changes which occurred in the companies you studied. Select ONE of the company change programs for your answer to this question and state it here. Assess the change project. Was it successful or unsuccessful in your opinion? What will it take (what are some steps the company can, should, or DID take) to make it SUSTAINABLE? What theories did you consider in coming to this conclusion? Do you think this change will still be in place in one, five, or ten years? Why or why not? (Points : 35)

Question 4. 4. (TCO All) This question does not address your course project. This change scenario is envisioned instead, for this question. First, the scenario, and then the question.

Scenario: You have been asked to handle a project where the company is going to close the plant in your company and offer all of the workers an option of taking a buy-out severance package which is quite generous OR relocate to another state, where the business climate is much better (but the cost of living is higher and the style of living is lower). The current location of the company is in an area where people live well, the culture is great, and because it is in a college town, there are many fun things to do on weekends, plays to attend, sporting events, etc. The atmosphere is quite upbeat. The city where the company is moving to has very little in the way of entertainment, the housing costs are higher although not as nice, and property taxes are higher as well. The company is offering moving costs for relocation costs, but not house sale assistance. It is likely most of your employees are going to take the buy-out, but most of them are in their late 30s or early 40s and are not going to be happy about it.
The question: This term, we studied organizational development theory versus the more systematic nStep method of conducting a change process. What would be the pros/cons of using OD theory for this change project? What would be the pros/cons of using nStep? Which nStep would you recommend for this if you use one? Of the two methods (nStep or OD), which would you recommend we use for this particular change program? Why? (Points : 35)

Question 5. 5. (TCOs C,D) Your project this term asked you to compare and contrast two companies’ change projects or programs for change. This question will review what you learned about the change projects in a continuation of your project. It will ask you to apply course information to your project companies. For your answer, be sure to reference the names of the companies you studied in your project this term to help your instructor determine the score of your response.
Consider ONE of your company’s change projects (not both companies – just one.) State the company and the change process/program/project. Name the leader of the change from that company. Answer the following questions about that change:
A. Was the leader of this change project transactional or transformational? Define those two terms and explain why you feel your leader was mainly one or the other, or evenly divided between both.
B. Evaluate the leader’s implementation of the change as it compared to the company’s vision and mission statement. Were they aligned? Did this alignment (or misalignment) contribute to the success or failure of the change? Why or why not? (Points : 35)

Page: 1 2

Question 1. 1. (TCO A) Which of the following options properly identifies external and internal forces which drive change? (Points : 7)
External forces for change are totally environmental; internal forces for change are more economic.
An internal force for change is a lack of diversity in the make-up of the senior management, whereas an external force for change is a lawsuit by the EEOC requiring the management to correct diversity failure in the company.
Internal forces for change tend to create a faster change than external forces for change.
The mimetic isomorphism pressure to change was seen when Sarbanes Oxley was passed in order to ensure that an Enron-like scenario never happened again. This was an external vs. internal force for change.
None of the above

Question 2. 2. (TCO A) Which of the following best shows a company responding to identity pressures? (Points : 7)
McDonalds when they started selling coffee drinks and salads
Domino’s pizza’s new crust and pizza recipe
Dairy Queen when it invented “the Blizzard”
The Wall Street Journal when it went online
All of the above

Question 3. 3. (TCO B) Which of the following best defines the “Six Box” model of diagnosing change? (Points : 7)
Includes purpose, structure, rewards, and helpful mechanisms
Is based on the conceptualization of the organization as a transformation process
Can be a starting point for an organization that has not given attention to the trends that may impact its future operations
Includes strategy, structure, process, and lateral capability
Includes structure, style, skills, super-ordinate goals, etc.

Question 4. 4. (TCO B) During the diagnosis for change period, it is important to analyze the stakeholders for their readiness to change. Using the power-interest matrix, you review the level of interest and amount of power of stakeholders and determine the following: (Points : 7)
Your key players are those with the highest level of interest, but a lower level of power.
Your key players are those with the lowest level of interest, but the highest level of power.
Your most unimportant players are those with low levels of power but high interest.
Your stakeholders who need to be “kept informed only” are those with high levels of interest but lower levels of power.
Your stakeholders who need to be “kept informed only” are those with low levels of interest but higher levels of power.

Question 5. 5. (TCO C) The “nurturer” image of change agent will change focus when she moves from “change sponsor” to “change implementer” in the following way(s): (Points : 7)
A nurturer will be the planner, the instigator, and the decision maker for change so when she changes focus, she will ensure everyone follows the plan without determining or considering the results on people.
A nurturer will accept her role as sponsor and implementer and ensure her direct reports do the same.
A nurturer, like a caretaker, assumes that change managers receive rather than initiate change, and therefore has little role in implementation other than protection.
A nurturer, like Kotter’s theoretical manager Jim Kirk, will accept the change plan, initiate the change boldly, and ensure a new structure is determined through the project.
All of the above

Question 6. 6. (TCO C) “This organization is running like clockwork!” This statement by a company leader is likely to result in “no change” because (Points : 7)
the leader is blinded by the light.
the leader believes his vision and mission of the company will align when the change is over.
the leader has diagnosed by image that the company needs no change.
the PESTEL framework has been unchallenged for too long.
brainstorming for change was uneventful.

Question 7. 7. (TCO D) When leaders enact a vision through exemplification of required behaviors, thereby promoting themselves and their vision, they are (Points : 7)
scripting.
performing.
staging.
norming.
framing.

Question 8. 8. (TCO F) The Emotional Intelligence domains and associated competencies are used to help us determine when a potential change agent, or person, is ready for leadership. When a person exhibits the competencies of integrity, initiative, and optimism, we know he or she has reached the stage of (Points : 7)
Self-Awareness.
Social Awareness.
Relationship Management.
Self-Management.
Personal and Social.

Question 9. 9. (TCO G) One day, while on the company elevator, the head of HR is talking to the CEO and doesn’t realize his speaker phone is on when the CEO asks, “Do you think that we can afford to keep the downtown branch of the company open? Or is it time to think about across-the-board layoffs?” The HR head frowns, turns off the speaker and replies, “I’ll call you later” and hangs up. Four employees from the downtown branch are on the elevator and hear this comment. The HR head tells the four employees (whose names he does not know), “Say nothing about this. You heard nothing.” They immediately rush to their cubicles and begin spreading the word. The gossip has hit the entire department and local news agencies by the 6:00 news that night. The CEO is featured saying, “This is nothing but a rumor at this point. We have no current plan to lay off anyone.” This is an example of what type of communication plan on the part of the CEO? (Points : 7)
Spray and pray
Tell and sell
Underscore and explore
Identify and reply
Withhold and uphold

Question 10. 10. (TCO G) The change agent image of “interpreter” will most likely use which of the following key communication skills? (Points : 7)
Therapeutic listening skills
Appreciative listening skills
Appeal through deals
Storytelling, connecting the dots
Emotional breakdowns

Question 11. 11. (TCO H) According to Peter Senge and other change management experts, it is important to understand the limitations of measuring change because (Points : 7)
long-term wins almost never happen.
recognizing that traditional measures may also need to be changed will allow celebration of short-term wins.
most changes occur in a straight-line fashion.
when things get worse before they get better, it is time to halt the change and return to the old ways.
All of the above

Question 12. 12. (TCOs A, G, H) Which of the following is an example of the Beer, Nohria view of dimensions of change using Theory E + Theory O combined, from a leadership perspective? (Points : 8)
The Project Manager communicates to the software development team the timeline for a change and the CEO asks her to speed it up by 3 weeks.
The CIO decides to move from a mainframe approach to a PC approach, notifies all of her direct reports of the new vision, establishes a communication plan, timeline, and project roll-out plan, communicates the change (including positives and negatives) to stakeholders, and establishes a metrics system where innovation, efficiencies, and positive feedback on the project is measured and rewarded via awards, bonuses, and perks.
A fast food company decides to remove one slice of cheese from their cheeseburgers, although increasing the retail price by 10 cents, and has a cost savings which increases its stock price significantly. A group of health experts touts the company as being “health conscious” because the calorie content of the item is lowered.
The CEO of a Fortune 100 company hires a team of consultants to take over the HR department and eliminates all in-house HR people (about 85 employees).
A department head is invited to a meeting where he is asked to become a change agent for an exciting new product line. He accepts the assignment and goes back to his desk, whereupon he explains to his team that it is likely that their jobs will disappear in the next year because of job obsolescence, but that anyone who might like to consider helping with the new product line may be allowed to reapply for new jobs which open up.

Set 2

2. (TCOs A,E) Your project this term asked you to compare and contrast two companies’ change projects or programs for change. This question will review what you learned about the change projects in a continuation of your project. It will ask you to apply course information to your project companies. For your answer, be sure to reference the names of the companies you studied in your project this term to help your instructor determine the score of your response.
Recall that external and internal pressures often impact implementation of change in companies. For this question, please write an essay answering these questions:
1. Define specific (at least 2 each) external and internal pressures that will (or did) affect the implementation of the changes in your two companies. (10 points)

2. Name two strategies of handling these pressures that you would (have) suggested to the company leaders as being the most effective in managing those pressures during the implementation phase. (10 points)

C. Defend your positions with details about why you feel your strategies would assist with handling these pressures. (15 points) (Points : 35)

1. (TCO A) When JetBlue left their customers sitting on the tarmac for hours on Valentine’s Day, and their CEO was ultimately terminated as a result, the company was responding to (pick the best group) (Points : 7)

external, reputation, and credibility pressures.
hypercompetition, market decline, and internal pressures.
mandated, fashion, and force field pressures.
growth, identity, and new broom pressures.
All of the above

2. (TCO A) Which of the following best shows forces for change vs. forces for stability? (Points : 7)

Change forces are: adapting, sustaining, and predicting; whereas stability forces are: bureaucracy, trust, and control.
Change forces include: lay-offs, IPOs, and inventing new products; whereas stability forces are: hiring, stock buy-backs, and regular yearly dividends.
Change forces include: lay-offs, stock buy-backs, and bi-annual new models of iPhones; whereas stability forces are hiring freezes, bureaucracy, and regular yearly dividends.
Change forces include: Harry Potter Park at Universal Studios, Walt Disney Cruise Lines, and McDonald’s lattes; and stability forces are Cruise ship sinking at Giglio Island, bridging and buffering strategies, and JetBlue’s public apology after the Valentine’s Day fiasco.
Both A and C

3. (TCO B) Which of the following best defines the “congruence” model of diagnosing change? (Points : 7)

Includes purpose, structure, rewards, and helpful mechanisms
Is based on the conceptualization of the organization as a transformation process
Can be a starting point for an organization that has not given attention to the trends that may impact its future operations
Includes strategy, structure, process, and lateral capability
Includes structure, style, skills, super-ordinate goals, etc.

4. (TCO B) During the diagnosis for change period, it is important to analyze the stakeholders for their readiness to change. Using the power-interest matrix, you review the level of interest and amount of power of stakeholders and determine the following: (Points : 7)

Your key players are those with the highest level of interest, but a lower level of power.
Your key players are those with the lowest level of interest, but the highest level of power.
Your most unimportant players are those with low levels of power but high interest.
Your stakeholders who need to be “kept informed only” are those with high levels of interest but lower levels of power.
Your stakeholders who need to be “kept informed only” are those with low levels of interest but higher levels of power.

5. (TCO C) The Burke-Litwin model states that there are four transformational factors of change. Identify the answer below which contains at least three of those factors. (Points : 7)

Frames, lenses, angles, and hyperbole
Mission and strategy, leadership, and organizational culture
Hypotheses, problems, symptoms and inputs
Vision, identification strategies, litigation, and execution
None of the above

6. (TCO C) “This organization is running like clockwork!” This statement by a company leader is likely to result in “no change” because(Points : 7)

the leader is blinded by the light.
the leader believes his vision and mission of the company will align when the change is over.
the leader has diagnosed by image that the company needs no change.
the PESTEL framework has been unchallenged for too long.
brainstorming for change was uneventful.

7. (TCO D) The art of a leader managing the meaning of a vision for followers and aligning it with his or her values is called (Points : 7)

scripting.
performing.
staging.
norming.
framing.

8. (TCO F) The Emotional Intelligence domains and associated competencies are used to help us determine when a potential change agent, or person, is ready for leadership. When a person exhibits the competencies of integrity, initiative, and optimism, we know he or she has reached the stage of (Points : 7)

Self-Awareness.
Social Awareness.
Relationship Management.
Self-Management.
Personal and Social.

9. (TCO G) One day, while on the company elevator, the head of HR is talking to the CEO and doesn’t realize his speaker phone is on when the CEO asks, “Do you think that we can afford to keep the downtown branch of the company open? Or is it time to think about across-the-board layoffs?” The HR head frowns, turns off the speaker and replies, “I’ll call you later” and hangs up. Four employees from the downtown branch are on the elevator and hear this comment. The HR head tells the four employees (whose names he does not know), “Say nothing about this. You heard nothing.” They immediately rush to their cubicles and begin spreading the word. The gossip has hit the entire department and local news agencies by the 6:00 news that night. The CEO is featured saying, “This is nothing but a rumor at this point. We have no current plan to lay off anyone.” This is an example of what type of communication plan on the part of the CEO? (Points : 7)

Spray and pray
Tell and sell
Underscore and explore
Identify and reply
Withhold and uphold

10. (TCO G) Toxic handlers, as related to change management communication, do the following: (Points : 7)

handle all calls with the Environmental Protection Agency.
talk in stages using assertions, requests, and declarations.
listen empathetically, and help cool angry people down, act like sponges, and often burn out quickly.
All of the above
None of the above

11. (TCO H) A sign that a change is “sustained” could be seen as (Points : 7)

a significant and abrupt drop in the stock price of the company.
receiving an offer from a competitor to buy the company.
sending out WARN act notices.
finding that the change has become baked into the culture.
a reward system which is outdated.

12. (TCOs G,H) Review this story and pick the best answer based on your understanding of change management practices:
Company X,Y,Z establishes a vision for change where “cutting costs is critical to our survival” and establishes a reward system to the department which cuts costs the most in one quarter, and states it will be a “department-based reward” system for the next four quarters. By the “most” the management establishes, the cuts will be valued by a somewhat complicated algorithm % and $$ of cut in the total expense budget. The sales team goes for the gold and cuts their travel budget by 50%, which is by far the biggest department cut in both $ and %. They win the 1st quarter reward. In quarter 2, the IT team cuts expenses the most by ending the purchase of all new software or PCs. In quarter 3, the production line cuts their expenses the most by laying off 60% of the workers (sales have dropped significantly and technology problems have slowed production, so this was needed anyway.) (Points : 8)

The company did a good job establishing urgency and aligning metrics with the vision for change, and this change appears to be successful.
The company aligned metrics with the vision for change, and created its own nStep method of change.
The company culture is dysfunctional and could have learned from CEO Bethune and the Continental Airline’s own culture of “cost is everything.”
The company will probably win the J.D. Power and Associates award for customer satisfaction this year.
The reward system is a “spray and pray” system.

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HRM 587- 18

PROJ 598 Contract and Procurement Week 8 Final Exam Complete A+ Answer

PROJ 598 Contract and Procurement Week 8 Final Exam Complete A+ Answer

PROJ 598 Contract and Procurement Week 8 Final Exam Complete A+ Answer

PROJ 598 Contract and Procurement Week 8 Final Exam Complete A+ Answer

PROJ 598 Contract and Procurement Week 8 Final Exam Complete A+ Answer

DeVry PROJ 598 Week 8 Final Exam
Part 1
1. (TCO A) All the below are tools and techniques of contract procurement, except (Points : 5)
Bidder’s conferences, negotiations, and advertising.

Analytical techniques, expert judgments, and evaluation techniques.

Estimates, bidder’s conferences, and evaluation techniques.

Negotiations, make-or-buy decisions, and advertising.

Question 2. 2. (TCO B) Proper selection criteria are critical for a successful project. All of the below would be considered good selection criteria for a buyer to use to select a seller, except (Points : 5)
Managerial approach of seller, references of seller, and ability of seller to make a reasonable make-or-buy decision.

Past work done by seller, intellectual property rights, and risk associated with a given seller.

Technical capability of seller, understanding of work by seller, and business type of seller.

Financial capacity of seller, overall cost, and warranty offered by seller.

(TCO A) Why are the project scope statement and WBS inputs of plan procurement?

(TCO B) List and describe five source selection criteria typically used in procurement management. For each, explain why this criterion is important for a buyer to use to select a given seller. (Points: 12)

(TCO C) Which has more cost risk to the seller, a fixed-price contract or a cost-reimbursable contract? Why? How might that risk be mitigated?

(TCO D) Describe the typical work relationship between a project manager and a contract manager. (Points : 12)

(TCO E) You are writing procurement SOW for an RFP. What items are you likely to include in this SOW? (Points : 12)

(TCO F) You have received back the bid proposals from prospective sellers. You are ready for source selection. What is source selection, and why is it important? (Points : 12)

Part 2

TCO G) One of the inputs to contract closeout is completion of work. What does it mean? (Points : 12)

(TCO A) In industry, there are four processes one follows in the procurement area of project management. Describe and explain these four processes in the procurement management process from the buyer perspective. (Points : 20)

(TCO C) Compare and contrast a firm fixed-price contract to a time and materials contract. When would each be appropriate for a given project? (Points : 20)

(TCO D) Compare and contrast an RFP and an RFI. When would each best be used in procuring goods or services? (Points : 20)

(TCO E) Describe the buyer’s plan procurement process of the contract management process as it relates to creating a RPF. Give an example of the activity that takes place in each step. (Points : 20)

Part 3:

TCO H) Under U.S. and international law, all contracts must contain five elements or satisfy five requirements. List and explain each of these five elements. (Points : 20)

2) Describe and compare and contrast the buyer’s and seller’s actions in the control procurement phase of the contract management process. Give an example for each. List and briefly describe the three tools and techniques used for bid or no-bid decision making. (Points : 20)

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PROJ 598

MGT 420 Managing Quality in the Supply Chain Week 2_Week 4_Week 5_ Part I_II_III_IV_BJB Manufacturing Company Answer

MGT 420 Managing Quality in the Supply Chain Week 2_Week 4_Week 5_ Part I_II_III_IV_BJB Manufacturing Company Answer

MGT 420 Managing Quality in the Supply Chain Week 2_Week 4_Week 5_ Part I_II_III_IV_BJB Manufacturing Company Answer

MGT 420 Managing Quality in the Supply Chain Week 2_Week 4_Week 5_ Part I_II_III_IV_BJB Manufacturing Company Answer

MGT 420 Managing Quality in the Supply Chain Week 2_Week 4_Week 5_ Part I_II_III_IV_BJB Manufacturing Company Answer

MGT 420 Managing Quality in the Supply Chain
MGT 420 Week 2 Team Part 1 BJB Manufacturing Company Quality Management Initiative Proposal
MGT 420 Week 4 Team Part II & III BJB Manufacturing Company Quality Management Implementation Strategy.
MGT 420 Week 5 Team Part IV BJB Manufacturing Company Quality Management Supplier Alliance Metrics Report.

(Only the paper in word document format. Power presentation is not part of this tutorial)

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MGT 420

ACC 550 Final Exam Answer Set 1 and 2 Complete A+ Answer

ACC 550 Final Exam Answer Set 1 and 2_Complete_Perfect Answer

ACC 550 Final Exam Answer Set 1 and 2_Complete_Perfect Answer

ACC 550 Final Exam Answer Set 1 and 2_Complete_Perfect Answer

ACC 550 Final Exam Answer Set 1 and 2_Complete_Perfect Answer

SET 1:

1. (TCO A) Listed below are several information, characteristics, and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application.
(Points : 30)
Potential Matches:

1 : Earnings process completed and realized or realizable

2 : Cost of providing financial information versus the benefits derived from its use

3 : Accruals and deferrals in adjusting and closing process

4 : Business enterprise assumed to have a long life

5 : Stable dollar assumption

6 : Notes as part of necessary information to a fair presentation

7 : Valuing assets at amount originally paid for them

8 : The impact of an item on the overall financial operations of a company

9 : Presentation of error-free information with representational faithfulness

Answer

: Historical cost principle

: Going concern principle

: Matching principle

: Monetary unit

: Revenue recognition principle

: Full disclosure principle

: Reliability characteristic

: Cost-benefit relationship

: Materiality constraint

2. (TCO B) Adjusting Entries: Unearned rent at 1/1/12 was $28,300 and at 12/31/12 was $48,200. The records indicate cash receipts from rental sources during 2010 amounted to $145,200, all of which was credited to the Unearned Rent Account. You are to supply the missing adjusting entry.

3. (TCO B) Adjusting Entries: Information relating to the balances of various accounts affected by adjusting or closing entries appear below. You are asked to supply the missing journal entries which would account for the changes in the account balances. Interest receivable at 1/1/12 was $8,000. During 2010 cash received from debtors for interest on outstanding notes receivable amounted to $11,000. The 2010 income statement showed interest revenue in the amount of $8,900. You are to provide the missing adjusting entry that must have been made, assuming reversing entries are not made.

4. (TCO B) Adjusting Entries: Accumulated depreciation-machinery at 1/1/10 was $150,000. At 12/31/10, the balance of the account was $300,000. During 2010, one piece of equipment was sold. The equipment had an original cost of $100,000 and was 1/2 depreciated when sold. You are to prepare the missing adjusting entry. For each journal entry write Dr. for debit and Cr. for credit.

5. (TCO B) Adjusting Entries: Allowance for Doubtful accounts made on 1/1/10 was $40,000. The balance in the allowance account on 12/31/10 after making the annual adjusting entry was $60,000 and during 2010 bad debts written off amounted to $30,000. You are to provide the missing adjusting entry. For each journal entry write Dr. for debit and Cr. for credit.

Second Part

1. (TCO B) Adjusting Entries: Prepaid rent at 1/1/10 was $9,000. During 2010 rent payments of $110,000 were made and charged to “rent expense.” The 2010 income statement shows as a general expense the item “rent expense” in the amount of $111,000. You are to prepare the missing adjusting entry that must have been made, assuming reversing entries are not made. For each journal entry write Dr. for debit and Cr. for credit.

2. (TCO B) Adjusting Entries: Retained earnings at 1/1/10 were $100,000 and at 12/31/10 it was $300,000. During 2010, cash dividends of $40,000 were paid and a stock dividend of $40,000 was issued. Both dividends were properly charged to retained earnings. You are to provide the missing closing entry. For each journal entry write Dr. for debit and Cr. for credit.

3. (TCO C) Here is information related to the DRF Corporation.
Retained earnings, December 31, 2012
$ 3,890,000
Sales
4,500,000
Selling and administrative expenses
387,000
Extraordinary Item(Loss)(Net of Tax)
178,000
Cash dividends declared on common stock
82,600
Cost of good sold
1,780,000
Other revenue
142,500
Other expenses
77,800

Instructions: Prepare a multiple step income statement.

4. (TCO D) This is a balance sheet for the ABC corporation as of 12/31/12.
Cash
$ 60,000
Accounts payable
$ 55,000
Accounts receivable (net)
42,200
Long-term liabilities
60,000
Inventories
47,000
Stockholders’ equity
208,500
Investments
66,300
Equipment (net)
86,000
Patents
22,000
Total $323500
Total $323500

The following additional information is provided:
(1) Cash includes the cash surrender value of a life insurance policy $7,400 and a bank overdraft of $1,500 has been deducted.
(2) The net accounts receivable balance includes:
(a) accounts receivable debit balances $56,000;
(b) accounts receivable credit balances $6,000; and
(c) allowance for doubtful accounts $7,800.
(3) Inventories do not include goods costing $6,000 shipped out on consignment. Receivables of $2,000 were recorded on these goods.
(4) Investments include investments in common stock, trading $14,000, available-for-sale $48,300, and franchises $4,000.
(5) Equipment costing $5,000 with accumulated depreciation $4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.
Instructions:
Prepare a balance sheet in good form (stockholders’ equity details can be omitted).
Do not worry about balancing the statement but rather use your time to compute the account balances properly for presentation purposes.

5. (TCO E) Jack Sawyer is presently leasing a copier from John Office Equipment Company. The lease requires 11 annual payments of $3,500 at the end of each year and provides the leaser (John) with an 8% return on its investment. You may use the following 8% interest factors.

9 Periods
10 Periods
11 Periods
Future Value of 1
1.99900
2.15892
2.33164

Present Value of 1
.50025
.46319
.42888
Future Value of
12.48756
14.48656
16.64549
Ordinary Annuity of 1
Present Value of
6.24689
6.71008
7.13896
Ordinary Annuity of 1
Present Value of
6.74664
7.24689
7.71008
Annuity Due of 1
Instructions
(a) Assuming the computer has an 11-year life and will have no salvage value at the expiration of the lease, what was the original cost of the copier to John?
(b) What amount would each payment be if the 11 annual payments are to be made at the beginning of each period?

6. (TCO F) Daniels Company deposits all receipts and makes all payments by check. The following information is available from the cash records.
MARCH 31
BANK RECONCILIATION
Balance per bank
$26,746
Add: Deposits in transit
2,100
Deduct: Outstanding checks
(3,800)
Balance per books
$25,046
Month of April Results
Per Bank
Per Books
Balance April 30
$27,995
$24,355
April deposits
8,864
13,889
April checks
13,100
14,080
April note collected
3,000
-0-
(not included in April deposits)

April bank service charge
35
-0-
April NSF check of a customer returned by the bank
(recorded by bank as a charge)
900
-0-
Instructions
Calculate the amount of the April 30
(1) deposits in transit; and
(2) outstanding checks.
Show all your work for potential partial credit.

7. Steve Company was formed on December 1, 2010. The following information is available from Steve’s inventory record for Product X.

Units Unit Cost

January 1, 2012 (beginning inventory) 2800 $17.00

Purchases:

05-Jan-12 3600 $25.00

25-Jan-12 2800 $27.00

16-Feb-12 2400 $32.00

15-Mar-12 3300 $34.00

A physical inventory on March 31, 2012, shows 4800 units on hand.
Instructions:
Prepare schedules to compute the ending inventory at March 31, 2012, under each of the following inventory methods.
(a) FIFO
(b) LIFO
(c) Weighted-average
Show supporting computations in good form. (Points : 40)

8. (TCO H) A machine cost $300,000 on April 1, 2012. Its estimated salvage value is $60,000 and its expected life is 8 years.
Instructions:
Calculate the depreciation expense (to the nearest dollar) by each of the following methods, showing the figures used.
(a) Straight-line for 2012
(b) Double-declining balance for 2013
(c) Sum-of-the-years’-digits for 2013.

SET 2:

1. Question : (TCO A) Listed below are several information, characteristics, and accounting principles and assumptions. Match the letter of each with the appropriate phrase that states its application.

2. Question : (TCO B) Adjusting Entries: Unearned rent at 1/1/10 was $5,300 and at 12/31/10 was $6,000. The records indicate cash receipts from rental sources during 2010 amounted to $60,000, all of which was credited to the Unearned Rent Account.

You are to prepare the missing adjusting entry. For each journal entry write Dr. for debit and Cr. for credit.

3. Question : (TCO B) Adjusting Entries: Data relating to the balances of various accounts affected by adjusting or closing entries appear below. (The entries which caused the changes in the balances are not given.) You are asked to supply the missing journal entries which would logically account for the changes in the account balances. Interest receivable at 1/1/10 was $1,000. During 2010 cash received from debtors for interest on outstanding notes receivable amounted to $1,000. The 2010 income statement showed interest revenue in the amount of $2,900. You are to provide the missing adjusting entry that must have been made, assuming reversing entries are not made. For each journal entry write Dr. for debit and Cr. for credit.

4. Question : (TCO B) Adjusting Entries: Accumulated depreciation-machinery at 1/1/10 was $150,000. At 12/31/10, the balance of the account was $300,000. During 2010,

one piece of equipment was sold. The equipment had an original cost of $100,000 and was 1/2 depreciated when sold. You are to prepare the missing adjusting entry. For each journal entry write Dr. for debit and Cr. for credit.

5. Question : (TCO B) Adjusting Entries: Allowance for doubtful accounts on 1/1/10 was $70,000. The balance in the allowance account on 12/31/10 after making the annual adjusting entry was $70,000 and during 2010 bad debts written off amounted to $40,000. You are to provide the missing adjusting entry. For each journal entry write Dr. for debit and Cr. for credit.

Page: 1 2

1. Question : (TCO B) Adjusting Entries: Prepaid rent at 1/1/10 was $30,000. During 2010 rent payments of $100,000 were made and charged to “rent expense.” The 2010 income statement shows as a general expense the item “rent expense” in the amount of $130,000. You are to prepare the missing

adjusting entry that must have been made, assuming reversing entries are not made. For each journal entry write Dr. for debit and Cr. for credit.

2. Question : (TCO B) Adjusting Entries: Retained earnings at 1/1/10 were $100,000 and at 12/31/10 it was $300,000. During 2010, cash dividends of $40,000 were paid and a stock dividend of $40,000 was issued. Both dividends were properly charged to retained earnings. You are to provide the missing closing entry. For each journal entry write Dr. for debit and Cr. for credit.

3. Question : (TCO C) Presented below is information related to Bruce Van Company. Retained earnings, December 31, 2010 $650,000
Sales 1,400,000
Selling and administrative expenses 240,000
Hurricane loss (pre-tax) on plant (extraordinary item) 290,000
Cash dividends declared on common stock 33,600
Cost of goods sold 780,000
Gain resulting from computation error on depreciation charge in 2009(pre-tax) 520,000
Other revenue 120,000

Other expenses 100,000

Instructions: Prepare in good form a multiple-step income statement for the year 2011. Assume a 30% tax rate and that 80,000 shares of common stock were outstanding during the year. Show EPS computations as well.

4. Question : (TCO D) The following balance sheet was prepared by the bookkeeper for Purple Company as of December 31, 2011 Purple Company Balance Sheet as of December 31, 2011 Cash $ 80,000 Accounts payable $ 75,000
Accounts receivable (net) 52,200 Long-term liabilities 100,000
Inventories 57,000 Stockholders’ equity 218,500
Investments 76,300
Equipment (net) 96,000
Patents
$393,500 $393,500
The following additional information is provided:
(1) Cash includes the cash surrender value of a life insurance policy $12,000, and a bank overdraft of $2,500 has been deducted.
(2) The net accounts receivable balance includes:
(a) accounts receivable debit balances $60,000;
(b) accounts receivable 0;
(c) allowance for doubtful accounts $3,800.
(3) Inventories do not include goods costing $3,000 shipped out on consignment. Receivables of $3,000 were recorded on these goods.
(4) Investments include investments in common stock, trading $13,000, available-for-sale $48,300, and franchises $15,000.
(5) Equipment costing $5,000 with accumulated depreciation

$4,000 is no longer used and is held for sale. Accumulated depreciation on the other equipment is $40,000.
(6) An unrecorded liability was not recorded on the balance sheet of $2000.
Instructions
Prepare a balance sheet in good form (stockholders’ equity details can be omitted.)

5. Question : (TCO E) Jack Sawyer is presently leasing a copier from John Office Equipment Company. The lease requires 11 annual payments of $2,500 at the end of each year and provides the leaser (John) with an 8% return on its investment. You may use the following 8% interest factors:

9 Periods 10 Periods 11 Periods
Future Value of 1 1.99900 2.15892 2.33164
Present Value of 1 .50025 .46319 .42888
Future Value of 12.48756 14.48656
Ordinary Annuity of 1
Present Value of 6.24689 6.71008 7.13896
Ordinary Annuity of 1
Present Value of 6.74664 7.24689 7.71008
Annuity Due of 1
(a) Assuming the computer has an eleven-year life and will have no salvage value at the expiration of the lease, what was the original cost of the copier to John?
(b) What amount would each payment be if the 11 annual payments are to be made at the beginning of each period?

6. Question : (TCO F) Daniels Company deposits all receipts and makes all payments by check. The following information is available from the cash records:
MARCH 31
BANK RECONCILIATION

Balance per bank $26,746
Add: Deposits in transit 2,100
Deduct: Outstanding checks (3,800)
Balance per books $25,046
Month of April Results Per Bank Per Books
Balance April 30 $27,995 $24,355
April deposits 8,864 13,889
April checks 13,100 14,080
April note collected 3,000 -0-
(not included in April deposits)
April bank service charge 35 -0-
April NSF check of
a customer returned by the bank
(recorded by bank as a charge) 900 -0-
Instructions
Calculate the amount of the April 30:
(1) Deposits in transit
(2) Outstanding checks
Show all your work for potential partial credit.

7. Question : (TCO G) Rye Company was formed on December 1, 2010. The following information is available from Rye’s inventory record for Product Bread. Units Unit Cost
January 1, 2011 (beginning inventory) 1,700 $17.00
Purchases:
January 5, 2011 2,600 $20.00
January 25, 2011 2,400 $21.00
February

16, 2011 1,000 $22.00
March 15, 2011 2,100 $25.00

A physical inventory on March 31, 2011, shows 3,000 units on hand.
Instructions
Prepare schedules to compute the ending inventory at March 31, 2011, under each of the following inventory methods:
(a) FIFO.
(b) LIFO.
(c) Weighted-average.
Show supporting computations in good form.

8. Question : (TCO H) A machine cost $500,000 on April 1, 2010. Its estimated salvage value is $50,000 and its expected life is eight years.
Instructions
Calculate the depreciation expense (to the nearest dollar) by each of the following methods, showing the figures used.
(a) Straight-line for 2010
(b) Double-declining balance for 2011
(c) Sum-of-the-years’-digits for 2011

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AC 550 Final Exam Answer Set 1 Part 1_Complete_Perfect Answer

HRM 599 Benefits Week 8 Final Exam Complete set 1 and set 2 A+ Answer

HRM 599 Benefits Week 8 Final Exam Complete set 1 and set 2 A+ Answer

HRM 599 Benefits Week 8 Final Exam Complete set 1 and set 2 A+ Answer

HRM 599 Benefits Week 8 Final Exam Complete set 1 and set 2 A+ Answer

HRM 599 Benefits Week 8 Final Exam Complete set 1 and set 2 A+ Answer

Set 1

1. Question : (TCO A) What are some of the legal and regulatory influences on discretionary benefits?

2. Question : (TCO B) Give a brief overview of the main provisions of HIPAA.

3. Question : (TCO C) Discuss the two forms of employer-sponsored disability coverage. Analyze the potential advantages of each for the employee and for the employer.

4. Question : (TCO D) Your company’s CEO is interested in implementing a new dental plan for employees and has asked you to do some research. The CEO wants you to report back to him in 3 weeks with the following information: What are the three main types of dental care plans? Discuss each plan and make a recommendation for your company.

5. Question : (TCO E) Discuss the various FASB rulings associated with retiree health insurance.

6. Question : (TCO F) You have recently been hired as an employee benefit consultant and have been asked to recommend the establishment of either a defined contribution or a defined benefit plan. Given the following employer objectives, which type of plan would you recommend? Specify the type of retirement plan you would recommend. Explain how your recommendation would handle the employer’s objectives.
Employer objectives include majority of employees are young would like to encourage long potential service concerned about providing retirement income, capital accumulation, and/or estate benefits concerned about limiting their funding costs and administrative expenses.

7. Question : (TCO G) Discuss the concept of “good business sense” of benefits communication and the primary objectives of an organization’s benefits communication program.

8.Question : (TCO H) Family assistance programs help employees with caring for loved ones, both young and old. Briefly describe the three types of family assistance programs and their benefits.

Set 2

Question 1. Briefly outline the key provisions of the Pension Protection Act of 2006.

Question 2. What are some of the legal and regulatory influences on discretionary benefits?

Question 3. Discuss and compare multiple-payer versus single-payer systems in the United States.

Question 4. What are the main characteristics of long-term disability insurance?

Question 5. Compare the basic structure of a profit sharing plan, thrift/savings plan, a 401(K) plan, and an employee stock ownership plan. Why would an employer choose to implement each one of these plans over the other?

Question 6. Discuss the various FASB rulings associated with retiree health insurance.

Question 7: Discuss the concept of “good business sense” of benefits communication and the primary objectives of an organization’s benefits communication program.

Question 8. Employers must provide some disclosure information regarding their benefits plan as spelled out by ERISA. One of those requirements includes a summary plan description, or SPD. What is an SPD? Briefly discuss the information that SPDs must provide.

Question 9. Family assistance programs help employees with caring for loved ones, both young and old. Briefly describe the three types of family assistance programs and their benefits.

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HRM 599

ACC 455 Final Exam Complete A+ Answer

ACC 455 Final Exam Complete A+ Answer

ACC 455 Final Exam Complete A+ Answer

ACC 455 Final Exam Complete A+ Answer

ACC 455 Final Exam Complete A+ Answer

1) Which of the following statements regarding proposed regulations is not correct?

A. Proposed and temporary regulations are generally issued simultaneously.

B. Proposed regulations do not provide any insight into the IRS’s interpretation of the tax law.

C. Proposed regulations expire after 3 years.

D. Practitioners and other interested parties may comment on proposed regulations.

2) Regulations are

A. presumed to be valid and to have almost the same weight as the IRC

B. equal in authority to legislation if interpretative

C. equal in authority to legislation

D. equal in authority to legislation if statutory

3) Which of the following courts is not a trial court for tax cases?

A. U.S. Tax Court

B. U.S. Court of Federal Claims
C. U.S. Bankruptcy Court

D. U.S. District Court

4) Which of the following statements is incorrect?

A. Limited partners’ liability for partnership debt is limited to their amount of investment.
B. In a general partnership, all partners have unlimited liability for partnership debts.

C. In a limited partnership, all partners participate in managerial decision-making.

D. All of the statements are correct.

5) Which of the following is an advantage of a sole proprietorship over other business forms?

A. Low tax rates on dividends

B. Ease of formation

C. Tax-exempt treatment of fringe benefits

D. The deduction for compensation paid to the owner

6) Which of the following statements is correct?

A. S shareholders are taxed on their proportionate share of earnings that are distributed.

B. S shareholders are taxed on their proportionate share of earnings whether or not distributed.
C. An owner of a C corporation is taxed on his or her proportionate share of earnings.

D. S shareholders are only taxed on distributions.

7) Three members form an LLC in the current year. Which of the following statements is incorrect?

A. The LLC can elect to be taxed as a C corporation with no special tax consequences.

B. If the LLC elects to use its default classification, it can elect to change its status to being taxed as a C corporation beginning with the third tax year after the initial classification.
C. The LLC’s default classification under the check-the-box rules is as a partnership.

D. The LLC can elect to have its default classification ignored.

8) Identify which of the following statements is true.

A. Under the check-the-box regulations, an LLC that has one member (owner) may be disregarded as an entity separate from its owner.
B. An unincorporated business may not be taxed as a corporation.

C. A new LLC that is owned by four members elects to be taxed under its default classification (as a partnership) in its first year of operations. The entity is prohibited from changing its tax classification at any time in the future.
D. All are false.

9) Identify which of the following statements is true.

A. The check-the-box regulations permit an LLC to be taxed as a C corporation.

B. Under the check-the-box regulations, an LLC that has only two members (owners) default classification is as a partnership.
C. Once an election is made to change its classification, an entity cannot change again for 60 months.
D. All of the statements are true.

10) Rose and Wayne form a new corporation. Rose contributes cash for 85% of the stock and Wayne contributes services for 15% of the stock. The tax effect is

A. Rose and Wayne are not required to recognize their realized gains.

B. Wayne must report the FMV of the stock received as capital gain.

C. Rose and Wayne must recognize their realized gains, if any.

D. Wayne must report the FMV of the stock received as ordinary income.

11) Matt and Sheila form Krupp Corporation. Matt contributes property with a FMV of $55,000 and a basis of $35,000. Sheila contributes property with a FMV of $75,000 and a basis of $40,000. Matt sells his stock to Paul shortly after the exchange. The transaction will

A. qualify with respect to Sheila under Sec. 351 whether Matt qualifies or not

B. qualify under Sec. 351 if Matt can show the sale to Paul was not part of a prearranged plan

C. not qualify under Sec. 351

D. qualify under Sec. 351 only if an advance ruling has been obtained

12) For Sec. 351 purposes the term property does not include

A. inventory

B. accounts receivable
C. cash

D. services rendered

13) Identify which of the following statements is true.

A. In computing an NOL for the current year, a deduction is allowed for NOLs from previous years.

B. An election to forgo an NOL carryback must be made on or before the return due date (including extensions) for the year in which the NOL is incurred.
C. A corporate NOL can be carried back 2 years and forward 15 years.

D. All are false.

14) A new corporation may generally select one of the following accounting methods with the exception of

A. retail method

B. accrual method

C. cash method

D. hybrid method

15) Identify which of the following statements is false.

A. A new corporation can elect a fiscal year that runs from February 16 to February 15 of the following year.
B. A fiscal year may not end on December 31.

C. A corporation’s fiscal year generally must end on the last day of the month.

D. A corporation’s first tax year may not cover a full 12-month period.

16) Edison Corporation is organized on July 31. The corporation starts business on August 10. The corporation adopts a November 30 fiscal year end. The following expenses are incurred during the year:
Date Type Amount
6-30 Attorneys fees associated with obtaining charter $10,000
7-10 Underwriter fees for stock sale 25,000
7-15 Transfer cost for property contributed to the corporation for stock 3,000
6-30 Costs of organizational meetings 2,000
12-6 Legal fees to modify charter 4,000

What is the maximum amount of organizational expenditures that can be deducted by the corporation for its first tax year ending November 30?

A. $5,156

B. $12,000

C. $16,000

D. $800

17) Maxwell Corporation reports the following results:

Gross income from operations $ 90,000
Dividends received from 18%-owned domestic corporation 70,000
Expenses 100,000

Maxwell’s dividends-received deduction is

A. $56,000

B. $49,000

C. $42,000

D. $70,000

18) Island Corporation has the following income and expense items for the year.

Gross receipts from sales $60,000
Dividends received from 15%-owned domestic corporation 40,000
Expenses connected with sales 30,000

The taxable income of Island Corporation is

A. $47,000

B. $70,000

C. $100,000

D. $42,000

19) Which of the following is not an adjustment in calculating AMTI?

A. Production activities deduction

B. The regular tax NOL deduction

C. Gain on installment sales of noninventory property

D. The difference between the gains for AMTI and regular tax purposes

20) Tax-exempt interest income on state and local municipal bonds which are not a private activity is

A. a negative adjustment in calculating alternative minimum taxable income (AMTI)

B. a positive adjustment in calculating alternative minimum taxable income (AMTI)

C. a tax preference item

D. included in calculating ACE (adjusted current earnings)

21) Which of the following statements about the alternative minimum tax depreciation rules is correct?

A. A 31.5-year recovery period is used when calculating the commercial real property depreciation deduction for alternative minimum taxable income purposes.
B. The excess of the gain reported on the disposition of tangible personal property for income tax purposes over the gain reported for alternative minimum tax purposes is a positive adjustment to taxable income in arriving at alternative minimum taxable income.
C. The MACRS depreciation rules are used to calculate the depreciation deduction when calculating alternative minimum taxable income regardless of the date the property was placed in service.
D. No depreciation adjustment is made when computing AMT for real property acquired after 1998.

22) Maxwell Corporation reports the following results:
Year Current E&P Distributions
2005 $6,000 $4,000
2006 5,000 1,000
2007 1,000 -0-

Maxwell’s dividends-received deduction is

A. $5,000

B. $7,000

C. $0

D. $12,000

23) Grant Corporation sells land (a noninventory item) with a basis of $57,000 for $100,000. Nichole will be paid on an installment basis in five equal annual payments starting in the current year. The E&P for the year of sale will be increased as a result of the sale (excluding federal income taxes) by

A. $43,000

B. $0

C. $8,600

D. $100,000

24) Identify which of the following statements is false.

A. At formation, a corporation’s E&P depends on the amount of capital contributed by the shareholders.
B. For E&P dividend distribution purposes, property as defined in Sec. 317(a) includes money.

C. The function of E&P is to provide a measure of a corporation’s economic ability to pay dividends.
D. Adjustments to taxable income when computing E&P do not include tax exempt interest.

25) Identify which of the following statements is true.

A. Section 179 property must be expensed ratably over a 5-year period when computing E&P.

B. Losses on property sales to related parties are not deductible when computing E&P.

C. Distributions made out of accumulated E&P are allocated ratably between multiple distributions made during the tax year.
D. All are false.

26) Identify which of the following statements is true.

A. If both the current and accumulated E&P have deficit balances, a corporate distribution cannot be characterized as a dividend.
B. The shareholder’s basis in property received in a nonliquidating distribution is the property’s FMV reduced by liabilities assumed by the shareholder.
C. A corporation recognizes gain when distributing money as a dividend to its shareholders.

D. All are false.

27) For purposes of determining current E&P, which of the following items cannot be deducted in the year incurred?

A. Life insurance premiums (in excess of the increase in cash surrender value for the policy) paid on the lives of key employees
B. Charitable contribution in excess of the 10% limitation

C. Capital losses in excess of capital gains

D. Dividends-received deduction

28) A corporation distributes land and the related liability to Meg, its sole shareholder. The land has a FMV of $60,000 and is subject to a liability of $70,000. The corporation has current and accumulated E&P of $80,000. The corporation’s adjusted basis for the property is $70,000. What effect does the transaction have on the corporation?

A. No recognized gain or loss and its E&P is reduced by $60,000.

B. A recognized loss of $10,000 and its E&P is reduced by $70,000.

C. A recognized loss of $10,000 and its E&P is unchanged.

D. No recognized gain or loss and its E&P is unchanged by the distribution.

29) Hogg Corporation distributes $30,000 to its sole shareholder, Ima. At the time of the distribution, Hoggs’ E&P is $14,000 and Ima’s basis in her stock is $10,000. Ima’s gain from this transaction is

A. $20,000 capital gain

B. $6,000 capital gain

C. $14,000 capital gain

D. $30,000 capital gain

30) One consequence of a property distribution by a corporation to a shareholder is

A. the shareholder’s basis in the distributed property is the same as the distributing corporation’s basis
B. the amount of the distribution is increased by any liability assumed by the shareholder

C. the holding period of the distributed property includes the holding period of the distributing corporation
D. any liabilities assumed by the shareholder do not reduce the shareholder’s basis

31) Which of the following is not a reason for a stock redemption?

A. Redemption of shares is a good corporate investment.

B. desire by remaining shareholders to retain control

C. desire by shareholders to reduce the corporate tax liability

D. No outside market exists for the stock.

32) Elijah owns 20% of Park Corporation’s single class of stock. Elijah’s basis in the stock is $8,000. Park’s E&P is $28,000. If Park redeems all of Elijah’s stock for $48,000, Elijah must report dividend income of

A. $40,000

B. $0

C. $28,000

D. $48,000

33) Which of the following is not a condition that permits a stock redemption to be treated as a sale?

A. The redemption is substantially disproportionate.

B. It provides funds for payment of income taxes.

C. It is not essentially equivalent to a dividend.

D. The redemption completely terminates the shareholder’s interest.

34) Identify which of the following statements is true.

A. Formation of a partnership requires legal documentation.

B. An individual engaged in the active conduct of a business must elect not to be taxed as a partnership.
C. If two people (or business entities) work together to carry on any business or financial operation with the intention of making a profit and sharing that profit as co-owners, a partnership exists for federal income tax purposes.
D. All are false.

35) Identify which of the following statements is true.

A. A partnership can be an S corporation shareholder.

B. A nonresident alien can be an S corporation shareholder.

C. An S corporation can have more than 100 shareholders since families are treated as a single shareholder.
D. All are false.

36) The definition of a partnership does not include

A. a syndicate

B. a group

C. a pool

D. All are included

37) Which of the following items is not separately stated for an S corporation?

A. Section 1245 income

B. Short-term capital gain
C. Dividend income

D. Charitable contribution

38) Cactus Corporation, an S Corporation, had accumulated earnings and profits of $100,000 at the beginning of 2008. Tex and Shirley each own 50% of the stock. Cactus does not make any distributions during 2008, but had $200,000 of ordinary income. In 2009, ordinary income was $100,000 and distributions were $100,000. What is Tex’s ordinary income for 2008?

A. $100,000

B. $0

C. $50,000

D. $200,000

39) Cactus Corporation, an S Corporation, had accumulated earnings and profits of $100,000 at the beginning of 2008. Tex and Shirley each own 50% of the stock. Cactus does not make any distributions during 2008, but had $200,000 of ordinary income. In 2009, ordinary income was $100,000 and distributions were $100,000. What is Tex’s ordinary income for 2009?

A. $100,000

B. $0

C. $50,000

D. $200,000

40) On January 1, Helmut pays $2,000 for a 10% capital, profits and loss interest in a partnership, which has recourse liabilities of $20,000. The partners share economic risk of loss from recourse liabilities in the same way they share partnership losses. In the same year, the partnership incurs losses of $6,000 and the recourse liabilities increase by $5,000. Helmut and the partnership use a calendar tax year-end. Helmut’s basis at year-end is

A. $2,000

B. $3,900

C. $1,500

D. $3,500

41) On January 2 of the current year, Calloway and Taylor contribute cash equally to form the CT Partnership. Calloway and Taylor share profits and losses in a ratio of 75% and 25%, respectively. The partnership’s ordinary income for the year was $40,000. Calloway received a distribution of $5,000 during the year. What is Calloway’s share of taxable income for the year?

A. $10,000

B. $30,000

C. $5,000

D. $20,000

42) On the first day of the partnership’s tax year, Karen purchases a 50% interest in a general partnership for $30,000 cash and she materially participates in the operation of the partnership for the entire year. The partnership has $40,000 in recourse liabilities when Karen enters the partnership. Partners share the economic risk of loss from recourse liabilities in the same way they share partnership losses. There is no minimum gain related to the nonrecourse liability. During the year the partnership incurs a $120,000 loss and a $20,000 increase in liabilities. How much of the loss can Karen report on her tax return for the current year?

A. $40,000

B. $60,000

C. $30,000

D. $50,000

43) The total bases of all distributed property in the partner’s hands following a nonliquidating distribution is limited to

A. the FMV of the property distributed

B. the predistribution FMV of the partner’s partnership interest

C. the partner’s predistribution basis in his partnership interest

D. the partnership’s bases in the distributed property

44) The Internal Revenue Code includes which of the following assets in the definition of Sec. 751 properties?

A. Cash

B. Sec. 1231 assets

C. Inventory, which is substantially appreciated

D. Capital assets

45) Identify which of the following statements is true.

A. If a partner sells property received in a partnership distribution for a gain and the property was inventory in the hands of the distributing partnership, the partner will always recognize ordinary income.
B. The primary purpose of Sec. 751 is to prevent partnerships from converting capital gains into ordinary income.
C. Unrealized receivables include rights to payments on the sale of a capital asset.

D. All are false.

46) Which of the following conditions will not cause an S election to be terminated?

A. Creating a second class of stock having a dividend preference
B. Failing to file a timely tax return

C. Exceeding the 100 shareholder limit

D. Selecting an improper tax year

47) Identify which of the following statements is true.

A. All of the shareholders of an S corporation must consent to a revocation of the S election.

B. A revocation of an S corporation election can be retrospective to any date.

C. An S election will not be terminated due to excess passive income if the corporation does not have Subchapter C E&P.
D. All are true.

48) Identify which of the following statements is false.

A. If the termination of an S election is considered to be inadvertent, then the election is permitted to continue in place as if the termination had never occurred.
B. A corporation can obtain relief for a late S election if the IRS consents.

C. A C corporation short year income tax liability must be determined on an annualized basis.

D. If an S election is terminated and the termination is not considered to be inadvertent, a 10-tax-year waiting period is required before making a new election.

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ACC 455

ACC 305 Final Exam Complete A+ Answer

ACC 305 Final Exam Complete A+ Answer

ACC 305 Final Exam Complete A+ Answer

ACC 305 Final Exam Complete A+ Answer

ACC 305 Final Exam Complete A+ Answer

1. The Higgins Company has just purchased a piece of equipment at a cost of $300,000. This equipment will reduce operating costs by $55,000 each year for the next eleven years. This equipment replaces old equipment which was sold for $14,000 cash. The new equipment has a payback period of: (Ignore income taxes.) (Round your answer to 1 decimal place.)
A. 16.2 Years
B. 5.5 Years
C. 5.2 Years
D. 11.10

2. The management of Serpas Corporation is considering the purchase of a machine that would cost $170,000, would last for 5 years, and would have no salvage value. The machine would reduce labor and other costs by $41,000 per year. The company requires a minimum pretax return of 11% on all investment projects. (Ignore income taxes.)

Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables.

The net present value of the proposed project is closest to: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)
A.-18,464
B. 35,000
C.-33,811
D. 27,384
3. Lett Corporation is investigating buying a small used aircraft for the use of its executives. The aircraft would have a useful life of 12 years. The company uses a discount rate of 17% in its capital budgeting. The net present value of the investment, excluding the salvage value of the aircraft, is -$578,526. (Ignore income taxes.)

Click here to view Exhibit 13B-1 to determine the appropriate discount factor(s) using tables.

Management is having difficulty estimating the salvage value of the aircraft. How large would the salvage value of the aircraft have to be to make the investment in the aircraft financially attractive? (Round discount factor(s) to 3 decimal places and final answers to the nearest dollar amount.)
A. $3,806,092
B. $3,403,094
C. $98,349
D. $578,526
4.
The management of Londo Corporation is investigating buying a small used aircraft to use in making airborne inspections of its above-ground pipelines. The aircraft would have a useful life of 4 years. The company uses a discount rate of 10% in its capital budgeting. The net present value of the investment, excluding the intangible benefits, is −$316,080. (Ignore income taxes.)

Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables.

How large would the annual intangible benefit have to be to make the investment in the aircraft financially attractive? (Round discount factor(s) to 3 decimal places and final answer to the nearest dollar amount.)

$31,608

$316,080

$79,020

$99,710

5.
The management of Melchiori Corporation is considering the purchase of a machine that would cost $360,000, would last for 6 years, and would have no salvage value. The machine would reduce labor and other costs by $116,000 per year. The company requires a minimum pretax return of 14% on all investment projects. (Ignore income taxes.)

Click here to view Exhibit 13B-2, to determine the appropriate discount factor(s) using tables.

The present value of the annual cost savings of $116,000 is closest to: (Round discount factor(s) to 3 decimal places and final answer to the nearest dollar amount.)

$451,124

$175,448

$1,091,462

$696,000
6.
Gull Inc. is considering the acquisition of equipment that costs $550,000 and has a useful life of 6 years with no salvage value. The incremental net cash flows that would be generated by the equipment are: (Ignore income taxes.)

Incremental net
cash flows
Year 1 $145,000
Year 2 $195,000
Year 3 $156,000
Year 4 $165,000
Year 5 $155,000
Year 6 $135,000

Click here to view Exhibit 13B-1 to determine the appropriate discount factor(s) using tables.

If the discount rate is 13%, the net present value of the investment is closest to: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)

$435,000

$148,776

$89,228

$591,264
7.
Charley has a typing service. He estimates that a new computer will result in increased cash inflow $1,100 in Year 1, $1,500 in Year 2 and $2,500 in Year 3. (Ignore income taxes.)

Click here to view Exhibit 13B-1 to determine the appropriate discount factor(s) using tables.

If Charley’s required rate of return is 12%, the most that Charley would be willing to pay for the new computer would be: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)

$3,459

$2,296

$3,278

$3,958
8.
Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.)

Investment required in equipment $460,000
Annual cash inflows $77,000
Salvage value $0
Life of the investment 16 years
Discount rate 12%

The simple rate of return on the investment is closest to: (Round your answer to the closest interest rate.)

5%

10%

15%

11%

9.
Sibble Corporation is considering the purchase of a machine that would cost $330,000 and would last for 7 years. At the end of 7 years, the machine would have a salvage value of $25,000. By reducing labor and other operating costs, the machine would provide annual cost savings of $63,000. The company requires a minimum pretax return of 11% on all investment projects. (Ignore income taxes.)

Click here to view Exhibit 13B-1 and Exhibit 13B-2 to determine the appropriate discount factor(s) using tables.

The net present value of the proposed project is closest to: (Round discount factor(s) to 3 decimal places, intermediate and final answers to the nearest dollar amount.)

−$45,194

−$33,144

−$8,144

−$21,094

10.
Shields Company has gathered the following data on a proposed investment project: (Ignore income taxes.)

Investment required in equipment $470,000
Annual cash inflows $77,000
Salvage value $0
Life of the investment 20 years
Discount rate 14%

Click here to view Exhibit 13B-2 to determine the appropriate discount factor(s) using tables.

The internal rate of return on the investment is closest to: (Round discount factor(s) to 3 decimal places and final answer to the closest interest rate.)

12%

14%

16%

18%

11.
Cezar Corporation’s comparative balance sheet appears below:

Cezar Corporation
Comparative Balance Sheet
Ending
Balance Beginning
Balance
Assets:
Current assets:
Cash and cash equivalents $ 84,000 $ 51,000
Accounts receivable 33,900 41,000
Inventory 76,200 71,000
Total current assets 194,100 163,000
Property, plant, and equipment 535,500 510,000
Less accumulated depreciation 195,500 171,000
Net property, plant, equipment 340,000 339,000
Total assets $534,100 $502,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 27,800 $ 31,000
Accrued liabilities 61,800 71,000
Income taxes payable 63,600 61,000
Total current liabilities 153,200 163,000
Bonds payable 96,200 91,000
Total liabilities 249,400 254,000
Stockholders’ equity:
Common stock 42,000 51,000
Retained earnings 242,700 197,000
Total stockholders’ equity 284,700 248,000
Total liabilities and stockholders’ equity $534,100 $502,000

The company did not dispose of any property, plant, and equipment during the year. Its net income for the year was $48,400 and its cash dividends were $2,700. The company did not retire any bonds payable or issue any common stock during the year. Its net cash provided by operating activities and net cash used in financing activities are:

net cash provided by operating activities, $31,600; net cash used in financing activities,$7,900

net cash provided by operating activities, $31,600; net cash used in financing activities,$6,500

net cash provided by operating activities, $65,000; net cash used in financing activities,$6,500

net cash provided by operating activities, $65,000; net cash used in financing activities,$7,900

Explanation:

Cezar Corporation
Comparative Balance Sheet
Ending Beginning
Balance Balance
Assets: Net Income
Current assets: 48400
Cash and cash equivalents 84000.00 51000.00 33000
Accounts receivable 33900 41000 -7100 7100
Inventory 76200 71000 5200 -5200
Total current assets 194100 163000 31100
Property, plant, and equipment 535500 510000 25500
Less accumulated depreciation 195500 171000 24500 24500
Net property, plant, equipment 340000 339000 1000
Total assets 534100 502000 32100
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable 27800 31000 -3200 -3200
Accrued liabilities 61800 71000 -9200 -9200
Income taxes payable 63600 61000 2600 2600
Total current liabilities 153200 163000 -9800
Bonds payable 96200 91000 5200 5200
Total liabilities 249400 254000 -4600
Stockholders’ equity:
Common stock 42000 51000 -9000 -9000
Retained earnings 242700 197000 45700
Total stockholders’ equity 284700 248000 36700
Total liabilities and stockholders’ equity 534100 502000 32100 -2700

65000 -6500

12.
Nordquist Company’s net income last year was $31,000. The company did not sell or retire any property, plant, and equipment last year. Changes in selected balance sheet accounts for the year appear below:

Increases
(Decreases)
Asset and Contra-Asset Accounts:
Accounts receivable $15,500
Inventory $(4,000)
Prepaid expenses $11,000
Accumulated depreciation $28,000
Liability Accounts:
Accounts payable $15,000
Accrued liabilities $(8,500)
Income taxes payable $3,100

Based solely on this information, the net cash provided by operating activities under the indirect method on the statement of cash flows would be:

$68,600

$15,900

$46,100

$91,100

13. Last year Burford Company’s cash account decreased by $33,000. Net cash used in investing activities was $8,800. Net cash provided by financing activities was $29,500. On the statement of cash flows, the net cash flow provided by (used in) operating activities was:

$20,700

$(53,700)

$(33,000)

$(12,300)

14.
Mccloe Corporation’s balance sheet and income statement appear below:

Mccloe Corporation
Comparative Balance Sheet
Ending
Balance Beginning
Balance
Assets:
Cash and cash equivalents $ 58 $ 43
Accounts receivable 48 62
Inventory 78 62
Property, plant and equipment 535 520
Less: accumulated depreciation 275 262
Total assets $444 $425
Liabilities and stockholders’ equity:
Accounts payable $ 71 $ 57
Accrued liabilities 44 28
Income taxes payable 57 57
Bonds payable 77 144
Common stock 47 42
Retained earnings 148 97
Total liabilities and stockholders’ equity $444 $425

Income Statement
Sales $568
Cost of goods sold 360
Gross margin 208
Selling and administrative expenses 141
Net operating income 67
Gain on sale of plant and equipment 22
Income before taxes 89
Income taxes 32
Net income $ 57

Cash dividends were $6. The company did not issue any bonds or repurchase any of its own common stock during the year. The net cash provided by (used in) financing activities for the year was:

rev: 05_24_2013_QC_31013

$(67)

$(68)

$(6)

$5

15.
Lueckenhoff Corporation’s most recent balance sheet appears below:

Lueckenhoff Corporation
Comparative Balance Sheet
Ending
Balance Beginning
Balance
Assets:
Cash and cash equivalents $ 44 $ 40
Accounts receivable 59 52
Inventory 86 80
Property, plant and equipment 790 732
Less: accumulated depreciation 289 206
Total assets $690 $698
Liabilities and stockholders’ equity:
Accounts payable $ 37 $ 34
Bonds payable 460 668
Common stock 72 64
Retained earnings 121 (68)
Total liabilities and stockholders’ equity $690 $698

The company’s net income for the year was $242 and it did not sell or retire any property, plant, and equipment during the year. Cash dividends were $53. The net cash provided by (used in) operating activities for the year was:

$315

$73

$169

$368

16.
Hocking Corporation’s comparative balance sheet appears below:

Hocking Corporation
Comparative Balance Sheet
Ending
Balance Beginning
Balance
Assets:
Current assets:
Cash and cash equivalents $ 47,000 $ 27,000
Accounts receivable 22,300 27,000
Inventory 61,700 57,000
Prepaid expenses 15,300 17,000
Total current assets 146,300 128,000
Property, plant, and equipment 356,000 337,000
Less accumulated depreciation 176,000 144,000
Net property, plant, and equipment 180,000 193,000
Total assets $326,300 $321,000
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable $ 21,700 $ 18,000
Accrued liabilities 65,700 57,000
Income taxes payable 49,700 47,000
Total current liabilities 137,100 122,000
Bonds payable 64,500 77,000
Total liabilities 201,600 199,000
Stockholders’ equity:
Common stock 34,300 38,000
Retained earnings 90,400 84,000
Total stockholders’ equity 124,700 122,000
Total liabilities and stockholders’ equity $326,300 $321,000

The company’s net income (loss) for the year was $8,800 and its cash dividends were $2,400. It did not sell or retire any property, plant, and equipment during the year.

The company’s net cash used in investing activities is:

$19,000

$36,700

$13,000

$51,000

17. Hocking Corporation’s comparative balance sheet appears below:

Hocking Corporation
Comparative Balance Sheet
Ending
Balance Beginning
Balance
Assets:
Current assets:
Cash and cash equivalents $ 57,000 $ 37,000
Accounts receivable 31,300 37,000
Inventory 72,700 67,000
Prepaid expenses 24,300 27,000
Total current assets 185,300 168,000
Property, plant, and equipment 374,000 347,000
Less accumulated depreciation 196,000 164,000
Net property, plant, and equipment 178,000 183,000
Total assets $363,300 $351,000
Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $ 32,700 $ 28,000
Accrued liabilities 76,700 67,000
Income taxes payable 60,700 57,000
Total current liabilities 170,100 152,000
Bonds payable 59,000 87,000
Total liabilities 229,100 239,000
Stockholders’ equity:
Common stock 45,400 48,000
Retained earnings 88,800 64,000
Total stockholders’ equity 134,200 112,000
Total liabilities and stockholders’ equity $363,300 $351,000

The company’s net income (loss) for the year was $31,000 and its cash dividends were $6,200. It did not sell or retire any property, plant, and equipment during the year. The company uses the indirect method to determine the net cash provided by operating activities.

The company’s net cash provided by operating activities is:

$89,500

$78,100

$83,800

$51,800

Ans:

Net Income
31000

5700
-5700
2700

32000

4700
9700
3700

83800

18. Boole Corporation’s net cash provided by operating activities was $125; its capital expenditures were $68; and its cash dividends were $27. The company’s free cash flow was:

$30

$98

$57

$220

FCF to equal EBIT(1-Tax Rate) + Depreciation & Amortization – Change in Net Working Capital – Capital Expenditure.
FCF is also = net cash provided by operating activities – capital expenditures – cash dividends

19.
Financial statements of Ansbro Corporation follow:

Ansbro Corporation
Comparative Balance Sheet
Ending
Balance Beginning
Balance
Assets:
Cash and cash equivalents $ 38 $ 35
Accounts receivable 94 86
Inventory 53 45
Property, plant and equipment 738 620
Less: accumulated depreciation 358 313
Total assets $565 $473
Liabilities and stockholders’ equity:
Accounts payable $ 71 $ 80
Bonds payable 165 250
Common stock 104 86
Retained earnings 225 57
Total liabilities and stockholders’ equity $565 $473

Income Statement
Sales $775
Cost of goods sold 438
Gross margin 337
Selling and administrative expenses 104
Net operating income 233
Income taxes 40
Net income $ 193

Cash dividends were $25. The company did not dispose of any property, plant, and equipment. It did not issue any bonds payable or repurchase any of its own common stock. The following questions pertain to the company’s statement of cash flows.

The net cash provided by (used in) investing activities for the year was:
$118
$(73)
$73
$(118)

20.
Schleich Corporation’s most recent balance sheet appears below:

Schleich Corporation
Comparative Balance Sheet
Ending
Balance Beginning
Balance
Assets:
Cash and cash equivalents $ 42 $ 31
Accounts receivable 40 27
Inventory 52 67
Property, plant and equipment 744 552
Less: accumulated depreciation 286 264
Total assets $592 $413
Liabilities and stockholders’ equity:
Accounts payable $ 57 $ 74
Accrued liabilities 22 20
Income taxes payable 45 30
Bonds payable 107 168
Common stock 87 82
Retained earnings 274 39
Total liabilities and stockholders’ equity $592 $413

Net income for the year was $330. Cash dividends were $62. The company did not sell or retire any property, plant, and equipment during the year. The net cash provided by (used in) operating activities for the year was:

$306

$24

$465

$354

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ACC 305