Question & Answer

1.    : How has Ken Byers shaped the sales culture at Hull Engineering? Do you consider this culture to be at a preconventional, conventional, or postconventional level of ethical development? Why?

Identify and briefly describe the three basic components of a numerical control system.

Explain the difference between the DIF system and the National Research Program. How do they relate to each other?

1.      : Don’t make the donation, but investigate whether any other ways are available to help Northeast High raise the funds that would allow them to purchase the much-needed educational software.

A Six Sigma program uses three measures of defects per million (DPM) to assess the performance of a given process. Name the three measures of DPM.

A cylindrical riser is to be used for a sand-casting mold. For a given cylinder volume, determine the diameter-to-length ratio that will maximize the time to solidify.

Karen Austin Inc. has issued three types of debt on January 1, 2014, the start of the company’s fiscal year. (a) $10 million, 10-year, 15% unsecured bonds, interest payable quarterly. Bonds were priced to yield 12%.  (b) $25 million par of 10-year, zero-coupon bonds at a price to yield 12% per year. (c) $20 million, 10-year, 10% mortgage bonds, interest payable annually to yield 12%. Instructions Prepare a schedule that identifies the following items for each bond: (1) maturity value, (2) number of interest periods over life of bond, (3) stated rate per each interest period, (4) effective-interest rate per each interest period, (5) payment amount per period, and (6) present value of bonds at date of issue.

1.    : Consider the factors that influence environmental uncertainty— that is, the rate of change in factors and the number of factors in the environment—as presented in Exhibit 3.4. Classify three of the following organizations as operating in either (a) a low-uncertainty environment or (b) a high-uncertainty environment: Hyundai, Facebook, a local Subway franchise, FedEx, a cattle ranch in Oklahoma, and McDonald’s. Explain your reasoning.

A series of cold rolling operations are to be used to reduce the thickness of a plate from 50 mm down to 25 mm in a reversing two-high mill. Roll diameter = 700 mm and coefficient of friction between rolls and work = 0.15. The specification is that the draft is to be equal on each pass. Determine (a) minimum number of passes required, and (b) draft for each pass?

Whittier Construction Co. had followed the practice of expensing all materials assigned to a construction job without recognizing any salvage inventory. On December 31, 2014, it was determined that salvage inventory should be valued at $52,000. Of this amount, $29,000 arose during the current year. How does this information affect the financial statements to be prepared at the end of 2014?

This year, Amber purchased a business that processes and packages landscape mulch. Approximately 20 percent of management time, space, and expenses are spent on this manufacturing process.  CostsInventory Material:Mulch and packaging$  500,000? Administrative supplies25,000? Salaries:Factory labor1,200,000? Sales & advertising350,000? Administration520,000? Property taxes:Factory460,000? Offices270,000? Depreciation:Factory800,000? Offices150,000? a) At the end of the year, Amber’s accountant indicated that the business had processed 10 million bags of mulch, but only 1 million bags remained in the ending inventory. What is Amber’s tax basis in her ending inventory if the UNICAP rules are used to allocate indirect costs to inventory? (Assume direct costs are allocated to inventory according to the level of ending inventory. In contrast, indirect costs are first allocated by time spent and then according to level of ending inventory.) b) Under what conditions could Amber’s business avoid having to apply UNICAP rules to allocate indirect costs to inventory for tax purposes?

What are some of the additives that are combined with rubber during compounding?

Name the items, in addition to the amount paid to the former owner or contractor, that may properly be included as part of the acquisition cost of the following plant assets. (a) Land. (b) Machinery and equipment. (c) Buildings.

As part of the year-end accounting process for your company, you are preparing the statement of cash flows according to GAAP. One of your team, a finance major, believes the statement should be prepared to report the change in working capital, because analysts many times use working capital in ratio analysis. Your supervisor would like research conducted to verify the basis for preparing the statement of cash flows. Instructions If your school has a subscription to the FASB Codification, go to http://aaahq.org/ascLogin.cfm to log in and prepare responses to the following. Provide Codification references for your responses. (a) What is the primary objective for the statement of cash flows? Is working capital the basis for meeting this objective? (b) What information is provided in a statement of cash flows? (c) List some of the typical cash inflows and outflows from operations.

1.       : A survey of teachers found that two of the most important rewards were the belief that their work was important and a feeling of accomplishment. According to Maslow’s hierarchy of needs theory, what needs do these rewards meet?

Tesha works for a company that pays a year-end bonus in January of each year (instead of December of the preceding year) to allow employees to defer the bonus income. Assume Congress recently passed tax legislation that decreases individual tax rates as of next year. Does this increase or decrease the benefits of the bonus deferral this year? What if Congress passed legislation that increased tax rates next year? Should Tesha ask the company to change its policy this year? What additional information do you need to answer this question?

On August 15, 2013, Outkast Co. invested idle cash by purchasing a call option on Counting Crows Inc. common shares for $360. The notional value of the call option is 400 shares, and the option price is $40. The option expires on January 31, 2014. The following data are available with respect to the call option. Market Price of Counting Time Value of Call Date Crows Shares Option September 30, 2013 $48 per share $180 December 31, 2013 $46 per share 65 January 15, 2014 $47 per share 30 Instructions Prepare the journal entries for Outkast for the following dates. (a) Investment in call option on Counting Crows shares on August 15, 2013. (b) September 30, 2013—Outkast prepares financial statements. (c) December 31, 2013—Outkast prepares financial statements. (d) January 15, 2014—Outkast settles the call option on the Counting Crows shares.

Juan and Bonita are married and have two dependent children living at home.This year, Juan is killed in an avalanche while skiing. a.What is Bonita’s filing status this year?

Demand for oil might be relatively elastic over the longer term, and yet it could still be observed that over time people consume more oil (or only very slightly less) despite rising oil prices. How can this apparent contradiction be explained?

Mr. Kyle owns stock in a local publicly traded company. Although the stock price has declined since he purchased it two years ago, he likes the long-term prospects for the company. If Kyle sells the stock to his sister because he needs some cash for a down payment on a new home, is the loss deductible? If Kyle is right and the stock price increases in the future, how is his sister’s gain computed if she sells the stock?

Fields Laboratories holds a valuable patent (No. 758-6002-1A) on a precipitator that prevents certain types of air pollution. Fields does not manufacture or sell the products and processes it develops. Instead, it conducts research and develops products and processes which it patents, and then assigns the patents to manufacturers on a royalty basis. Occasionally it sells a patent. The history of Fields patent number 758-6002-1A is as follows. Date Activity Cost 2005–2006 Research conducted to develop precipitator $384,000 Jan. 2007 Design and construction of a prototype 87,600 March 2007 Testing of models 42,000 Jan. 2008 Fees paid engineers and lawyers to prepare patent application; patent granted June 30, 2008 59,500 Nov. 2009 Engineering activity necessary to advance the design of the precipitator to the manufacturing stage 81,500 Dec. 2010 Legal fees paid to successfully defend precipitator patent 42,000 April 2011 Research aimed at modifying the design of the patented precipitator 43,000 July 2015 Legal fees paid in unsuccessful patent infringement suit against a competitor 34,000 Fields assumed a useful life of 17 years when it received the initial precipitator patent. On January 1, 2013, it revised its useful life estimate downward to 5 remaining years. Amortization is computed for a full year if the cost is incurred prior to July 1, and no amortization for the year if the cost is incurred after June 30. The company’s year ends December 31. Instructions Compute the carrying value of patent No. 758-6002-1A on each of the following dates: (a) December 31, 2008. (b) December 31, 2012. (c) December 31, 2015.

Costing for a hospital Mercy Hospital uses a costing system for all patients who have surgery. The hospital uses a budgeted overhead rate for allocating overhead to patient stays. In March, the operating room had a budgeted allocation base of 1000 operating hours. The budgeted operating room overhead costs were $66 000.   Patient Dwight Schuller was in the operating room four hours during March. Other costs related to Schuller’s four-hour surgery include:       Physician cost is not included because physicians bill patients separately from the hospital billing system.   Required (a)          Determine the budgeted (i.e., estimated) overhead rate for the operating room. (b)          Determine the total costs of Schuller’s four-hour surgery.

Explain why the medical expense provisions are sometimes referred to as “wherewithal” deductions and how this rationale is reflected in the limits on these deductions.

1.       As a manager, how might you deal with an employee who constantly displays negative emotions that affect the rest of the team? How might you use an understanding of attributions and emotional contagion to help you decide what to do?

'A firm will always prefer to make more profit rather than less.’ Do you agree with this statement? Is it compatible with alternatives to the profit-maximising theory of the firm?