This document provides information about a coursework project evaluating a company's dividend policy and its impact on share price. It includes instructions for completing four parts of the project: a) evaluating dividend policy theories; b) analyzing the dividend policy and share price of a selected company over 11 years; c) using the Fisher-Hirshleifer model to examine investment and consumption decisions; and d) discussing the importance of mergers and acquisitions. Additional context and data tables are provided about a company called Motomart for use in completing the project analysis.
Senior Capstone Business 27Case 2 MotomartINTRODUCTI.docxlesleyryder69361
Senior Capstone: Business 27
Case 2: Motomart
INTRODUCTION
The Motomart case is designed to supplement your managerial/
cost accounting textbook coverage of cost behavior and variable
costing using real-world cost data and an auto-industry-
accepted cost driver. Unlike textbook problems, this data is
real. It won’t necessarily produce a clear solution when you
attempt to analyze cost behavior and apply scatter-plot,
high-low, and regression methods to separate mixed costs
into their fixed and variable components. This case also
illustrates that financial accounting decisions and methods
can have an influence on cost accounting and managerial
applications and decisions.
OBJECTIVES
When you complete this case, you’ll be able to
• Explain the importance of accrual accounting and proper
application of the matching principle for the computation
of contribution margins and break-even points
• Apply knowledge of generally accepted accounting
principles (GAAP) to a specific real-world example
• Integrate statistical analyses and scatter plots, line
graphs, and regression to determine the reliability of
financial information prepared for external use
• Use analytical review procedures to examine a firm’s
financial statements
• Apply critical-thinking skills to real-world
business circumstances
Senior Capstone: Business28
CASE BACKGROUND
This case is based on real financial data provided by a retail
automobile dealership (Motomart) seeking to relocate closer
to an existing retail dealership. You’ll examine the mixed cost
data from Motomart and apply both high-low and regression
to attempt to separate mixed costs into their fixed and variable
components for break-even and contribution margin compu-
tations. You’ll find that the data is flawed because Motomart
was a single observation in a larger database. Don’t attempt
to correct the data (e.g., remove outliers or influential outliers).
You’ll be producing a scatterplot and apply high-low and
regression methods to the extent practicable and writing a
summary report of the findings.
Motomart operates a retail automobile dealership. The
manufacturer of Motomart products, like all automobile
manufacturers, produces forecasts. It has long been an
industry practice to use variable costing-based/break-even
analyses as the foundation for these forecasts, to examine
their cost behavior as it relates to the new retail vehicles
sold (NRVS) cost driver. In preparing this financial information,
a common financial statement format and accounting proce-
dures manual is provided to each retail auto dealership.
The dealership is required to produce monthly financial
statements using the guidelines provided by this common
accounting procedures manual, and then furnish these
financial statements to the manufacturer. General Motors,
Ford, Nissan, and all other automobile manufacturers
employ similar procedures manuals.
The use of a common format facilitates the development of
composite financial s.
Cost Analysis ModelsUnit 3 Written AssignmentBUS .docxbobbywlane695641
The document provides an analysis of costs for a catering and events business. It finds the business has a break-even point of 3,158 events based on revenue of $4,500 per event and variable costs of $2,600 per event. It also calculates the business would need 5,789 events to increase profits from $3.5 million to $5 million. The analysis is limited as it makes estimates and assumptions about demand that may not reflect reality. Key data like taxes and certain fixed costs are also missing.
The document provides information about business analytics in different industries including business analytics, automotive analytics, FMCG analytics, and e-commerce analytics. It discusses key components of business analytics including data aggregation, data mining, association/sequence identification, and forecasting. For automotive analytics, it outlines use cases for predictive analytics, data from sensors for traffic and insurance, and cost/financial tracking. Top FMCG analytics uses cases include inventory optimization, forecast optimization, and price/promotion analytics. E-commerce analytics focuses on functions like supply chain management, merchant analytics, product analytics, online marketing, and user experience analytics.
20Incremental Analysis CHAPTER PREVIEW Companies of all so.docxlorainedeserre
20
Incremental Analysis
CHAPTER PREVIEW
Companies of all sorts must make product decisions. Oral‐B Laboratories opted to produce a new, higher‐priced toothbrush. General Motors announced the closure of its Oldsmobile Division. This chapter explains management's decision‐making process and a decision‐making approach called incremental analysis. The use of incremental analysis is demonstrated in a variety of situations.
Keeping It Clean
When you think of new, fast‐growing, San Francisco companies, you probably think of fun products like smartphones, social networks, and game apps. You don't tend to think of soap. In fact, given that some of the biggest, most powerful companies in the world dominate the soap market (e.g., Proctor & Gamble, Clorox, and Unilever), starting a new soap company seems like an outrageously bad idea. But that didn't dissuade Adam Lowry and Eric Ryan from giving it a try. The long‐time friends and former roommates combined their skills (Adam's chemical engineering and Eric's design and marketing) to start Method Products. Their goal: selling environmentally friendly soaps that actually remove dirt.
Within a year of its formation, the company had products on the shelves at Target stores. Within 5 years, Method was cited by numerous business publications as one of the fastest‐growing companies in the country. It was easy—right? Wrong. Running a company is never easy, and given Method's commitment to sustainability, all of its business decisions are just a little more complex than usual. For example, the company wanted to use solar power to charge the batteries for the forklifts used in its factories. No problem, just put solar panels on the buildings. But because Method outsources its manufacturing, it doesn't actually own factory buildings. In fact, the company that does Method's manufacturing doesn't own the buildings either.
Solution
—Method parked old semi‐trailers next to the factories and installed solar panels on those.
Since Method insists on using natural products and sustainable production practices, its production costs are higher than companies that don't adhere to these standards. Adam and Eric insist, however, that this actually benefits them because they have to be far more careful about controlling costs and far more innovative in solving problems. Consider Method's most recently developed laundry detergent. It is 8 times stronger than normal detergent, so it can be sold in a substantially smaller package. This reduces both its packaging and shipping costs. In fact, when the cost of the raw materials used for soap production recently jumped by as much as 40%, Method actually viewed it as an opportunity to grab market share. It determined that it could offset the cost increases in other places in its supply chain, thus absorbing the cost much easier than its big competitors.
In these and other instances, Adam and Eric identified their alternative courses of action, determined what was relevant to each c ...
Automotive Parts: The Industry's New Sweet SpotCognizant
For players in the automobile market, aftermarket parts and services is a valuable adjunct to car sales, but this sector is changing rapidly due to market conditions. We offer a schema based on willingness to pay for parts and for service to guide OEMs and other players in their spare parts and secondary market strategies.
ECO 520 Final Project Investment Opportunity Analysis Guidelines .docxjack60216
ECO 520 Final Project: Investment Opportunity Analysis Guidelines and Grading Guide
Overview
This investment opportunity analysis project is designed to guide you through the process of applying key components of advanced microeconomics theories to typical
business decisions. You will assume the role of an entrepreneur, and you will conduct an analysis focusing on an investment opportunity of your choice. In your analysis you
will carefully evaluate key factors influencing the demand for the product, cost and supply issues, the role of market structure, and competitive analysis on firm strategy.
You will also analyze the effects of government regulations and market intervention on potential profitability, and you will use price and non-price strategies to support
product introduction. Using the above analyses, the last step in your final project requires you to model the potential financial viability of the proposed new product using
approximate figures. You will determine whether or not to recommend investing in the development and commercialization of the investment opportunity to your business
partners.
This assignment will assess your mastery of the following course outcomes:
• Analyze product demand, company revenues, and the effects of external market influences through the use of microeconomic principles
• Analyze organizational costs and identify technical and economically efficient methods of production and acquisition of resources through the use of microeconomic
principles and tools
• Evaluate the effect of market structure and consumer behavior on firm strategies and profitability
• Recommend pricing strategies based on marketing conditions, which improve firm profitability and can be effectively implemented
• Evaluate government regulations and interventions for their effects on business and market performance
Prompt
Develop an analytical document informed by key advanced microeconomic theories and principles. The purpose of your analysis is to assist with the decision to implement
a product or service for a start-up company (submit your product or service for approval to the instructor).
Specifically, the following critical elements must be addressed in your analysis:
1. Opportunity Background and Demand: In this section you will identify an appropriate investment opportunity specific to introducing a new product or service. You
will analyze product demand and company revenues specific to this opportunity applying key economic principles to support your reasoning.
a. Background: Provide a brief background on the company, product line, and proposed product. This is where you would lay the foundation for the analysis
that follows. What is the significance of this opportunity?
1
b. Demand: Evaluate key non-price variables that are expected to support existing or potential demand specific to this opportunity and support your
evaluation with sources. For example, this is where you want to include rationale f ...
The document discusses restoring public trust in corporate reporting. It proposes a three-tiered model for corporate transparency consisting of global accounting standards, industry standards, and company-specific information. Recent scandals have undermined trust in executives, boards, auditors, and analysts that produce corporate information. To rebuild trust, all participants must embrace transparency, accountability, and integrity. New technologies like XBRL can improve access and analysis of reported information across the three tiers. The future of corporate reporting relies on cooperation across industries to establish comprehensive transparency standards.
The dividend discount model (DDM) is commonly used to value stocks. It calculates a stock's intrinsic value based on expected future dividends, discounted back to the present. The DDM has advantages like simplicity and relying on theoretical foundations, but it also has disadvantages like not accounting for intangible assets and being dependent on assumptions about stable dividend growth rates. Whether the DDM or multiples approach is more accurate depends on the specific company and analysts must consider various valuation techniques and compare to industry averages to determine if a stock is undervalued, overvalued, or fairly valued.
Senior Capstone Business 27Case 2 MotomartINTRODUCTI.docxlesleyryder69361
Senior Capstone: Business 27
Case 2: Motomart
INTRODUCTION
The Motomart case is designed to supplement your managerial/
cost accounting textbook coverage of cost behavior and variable
costing using real-world cost data and an auto-industry-
accepted cost driver. Unlike textbook problems, this data is
real. It won’t necessarily produce a clear solution when you
attempt to analyze cost behavior and apply scatter-plot,
high-low, and regression methods to separate mixed costs
into their fixed and variable components. This case also
illustrates that financial accounting decisions and methods
can have an influence on cost accounting and managerial
applications and decisions.
OBJECTIVES
When you complete this case, you’ll be able to
• Explain the importance of accrual accounting and proper
application of the matching principle for the computation
of contribution margins and break-even points
• Apply knowledge of generally accepted accounting
principles (GAAP) to a specific real-world example
• Integrate statistical analyses and scatter plots, line
graphs, and regression to determine the reliability of
financial information prepared for external use
• Use analytical review procedures to examine a firm’s
financial statements
• Apply critical-thinking skills to real-world
business circumstances
Senior Capstone: Business28
CASE BACKGROUND
This case is based on real financial data provided by a retail
automobile dealership (Motomart) seeking to relocate closer
to an existing retail dealership. You’ll examine the mixed cost
data from Motomart and apply both high-low and regression
to attempt to separate mixed costs into their fixed and variable
components for break-even and contribution margin compu-
tations. You’ll find that the data is flawed because Motomart
was a single observation in a larger database. Don’t attempt
to correct the data (e.g., remove outliers or influential outliers).
You’ll be producing a scatterplot and apply high-low and
regression methods to the extent practicable and writing a
summary report of the findings.
Motomart operates a retail automobile dealership. The
manufacturer of Motomart products, like all automobile
manufacturers, produces forecasts. It has long been an
industry practice to use variable costing-based/break-even
analyses as the foundation for these forecasts, to examine
their cost behavior as it relates to the new retail vehicles
sold (NRVS) cost driver. In preparing this financial information,
a common financial statement format and accounting proce-
dures manual is provided to each retail auto dealership.
The dealership is required to produce monthly financial
statements using the guidelines provided by this common
accounting procedures manual, and then furnish these
financial statements to the manufacturer. General Motors,
Ford, Nissan, and all other automobile manufacturers
employ similar procedures manuals.
The use of a common format facilitates the development of
composite financial s.
Cost Analysis ModelsUnit 3 Written AssignmentBUS .docxbobbywlane695641
The document provides an analysis of costs for a catering and events business. It finds the business has a break-even point of 3,158 events based on revenue of $4,500 per event and variable costs of $2,600 per event. It also calculates the business would need 5,789 events to increase profits from $3.5 million to $5 million. The analysis is limited as it makes estimates and assumptions about demand that may not reflect reality. Key data like taxes and certain fixed costs are also missing.
The document provides information about business analytics in different industries including business analytics, automotive analytics, FMCG analytics, and e-commerce analytics. It discusses key components of business analytics including data aggregation, data mining, association/sequence identification, and forecasting. For automotive analytics, it outlines use cases for predictive analytics, data from sensors for traffic and insurance, and cost/financial tracking. Top FMCG analytics uses cases include inventory optimization, forecast optimization, and price/promotion analytics. E-commerce analytics focuses on functions like supply chain management, merchant analytics, product analytics, online marketing, and user experience analytics.
20Incremental Analysis CHAPTER PREVIEW Companies of all so.docxlorainedeserre
20
Incremental Analysis
CHAPTER PREVIEW
Companies of all sorts must make product decisions. Oral‐B Laboratories opted to produce a new, higher‐priced toothbrush. General Motors announced the closure of its Oldsmobile Division. This chapter explains management's decision‐making process and a decision‐making approach called incremental analysis. The use of incremental analysis is demonstrated in a variety of situations.
Keeping It Clean
When you think of new, fast‐growing, San Francisco companies, you probably think of fun products like smartphones, social networks, and game apps. You don't tend to think of soap. In fact, given that some of the biggest, most powerful companies in the world dominate the soap market (e.g., Proctor & Gamble, Clorox, and Unilever), starting a new soap company seems like an outrageously bad idea. But that didn't dissuade Adam Lowry and Eric Ryan from giving it a try. The long‐time friends and former roommates combined their skills (Adam's chemical engineering and Eric's design and marketing) to start Method Products. Their goal: selling environmentally friendly soaps that actually remove dirt.
Within a year of its formation, the company had products on the shelves at Target stores. Within 5 years, Method was cited by numerous business publications as one of the fastest‐growing companies in the country. It was easy—right? Wrong. Running a company is never easy, and given Method's commitment to sustainability, all of its business decisions are just a little more complex than usual. For example, the company wanted to use solar power to charge the batteries for the forklifts used in its factories. No problem, just put solar panels on the buildings. But because Method outsources its manufacturing, it doesn't actually own factory buildings. In fact, the company that does Method's manufacturing doesn't own the buildings either.
Solution
—Method parked old semi‐trailers next to the factories and installed solar panels on those.
Since Method insists on using natural products and sustainable production practices, its production costs are higher than companies that don't adhere to these standards. Adam and Eric insist, however, that this actually benefits them because they have to be far more careful about controlling costs and far more innovative in solving problems. Consider Method's most recently developed laundry detergent. It is 8 times stronger than normal detergent, so it can be sold in a substantially smaller package. This reduces both its packaging and shipping costs. In fact, when the cost of the raw materials used for soap production recently jumped by as much as 40%, Method actually viewed it as an opportunity to grab market share. It determined that it could offset the cost increases in other places in its supply chain, thus absorbing the cost much easier than its big competitors.
In these and other instances, Adam and Eric identified their alternative courses of action, determined what was relevant to each c ...
Automotive Parts: The Industry's New Sweet SpotCognizant
For players in the automobile market, aftermarket parts and services is a valuable adjunct to car sales, but this sector is changing rapidly due to market conditions. We offer a schema based on willingness to pay for parts and for service to guide OEMs and other players in their spare parts and secondary market strategies.
ECO 520 Final Project Investment Opportunity Analysis Guidelines .docxjack60216
ECO 520 Final Project: Investment Opportunity Analysis Guidelines and Grading Guide
Overview
This investment opportunity analysis project is designed to guide you through the process of applying key components of advanced microeconomics theories to typical
business decisions. You will assume the role of an entrepreneur, and you will conduct an analysis focusing on an investment opportunity of your choice. In your analysis you
will carefully evaluate key factors influencing the demand for the product, cost and supply issues, the role of market structure, and competitive analysis on firm strategy.
You will also analyze the effects of government regulations and market intervention on potential profitability, and you will use price and non-price strategies to support
product introduction. Using the above analyses, the last step in your final project requires you to model the potential financial viability of the proposed new product using
approximate figures. You will determine whether or not to recommend investing in the development and commercialization of the investment opportunity to your business
partners.
This assignment will assess your mastery of the following course outcomes:
• Analyze product demand, company revenues, and the effects of external market influences through the use of microeconomic principles
• Analyze organizational costs and identify technical and economically efficient methods of production and acquisition of resources through the use of microeconomic
principles and tools
• Evaluate the effect of market structure and consumer behavior on firm strategies and profitability
• Recommend pricing strategies based on marketing conditions, which improve firm profitability and can be effectively implemented
• Evaluate government regulations and interventions for their effects on business and market performance
Prompt
Develop an analytical document informed by key advanced microeconomic theories and principles. The purpose of your analysis is to assist with the decision to implement
a product or service for a start-up company (submit your product or service for approval to the instructor).
Specifically, the following critical elements must be addressed in your analysis:
1. Opportunity Background and Demand: In this section you will identify an appropriate investment opportunity specific to introducing a new product or service. You
will analyze product demand and company revenues specific to this opportunity applying key economic principles to support your reasoning.
a. Background: Provide a brief background on the company, product line, and proposed product. This is where you would lay the foundation for the analysis
that follows. What is the significance of this opportunity?
1
b. Demand: Evaluate key non-price variables that are expected to support existing or potential demand specific to this opportunity and support your
evaluation with sources. For example, this is where you want to include rationale f ...
The document discusses restoring public trust in corporate reporting. It proposes a three-tiered model for corporate transparency consisting of global accounting standards, industry standards, and company-specific information. Recent scandals have undermined trust in executives, boards, auditors, and analysts that produce corporate information. To rebuild trust, all participants must embrace transparency, accountability, and integrity. New technologies like XBRL can improve access and analysis of reported information across the three tiers. The future of corporate reporting relies on cooperation across industries to establish comprehensive transparency standards.
The dividend discount model (DDM) is commonly used to value stocks. It calculates a stock's intrinsic value based on expected future dividends, discounted back to the present. The DDM has advantages like simplicity and relying on theoretical foundations, but it also has disadvantages like not accounting for intangible assets and being dependent on assumptions about stable dividend growth rates. Whether the DDM or multiples approach is more accurate depends on the specific company and analysts must consider various valuation techniques and compare to industry averages to determine if a stock is undervalued, overvalued, or fairly valued.
A simple overview to retail direct & in direct purchases spend analysis in 7 ...Vishnu Kumar
This document provides an overview of retail purchase spend analysis in 7 steps: 1) Identify data sources, 2) Gather spend data, 3) Cleanse the data, 4) Group suppliers, 5) Categorize spend, 6) Analyze spend and ensure contracts are followed, 7) Repeat analysis continuously. It then provides an example of analyzing retail purchase spend data by gathering invoices, categorizing suppliers, creating a pivot table to compare total spend, and generating a pie chart of spend categories. The goal is to gain insights into spending to identify savings opportunities and ensure contracts are followed.
Competitive Intelligence Structure For Automotive CompaniesBenny T.C. Siu
This document discusses structuring an organization to maximize competitive intelligence (CI) capabilities in the automotive industry. It recommends a matrix structure with CI activities divided along business units, geographical regions, and functions. Automakers need CI professionals skilled in various areas to understand customer preferences, conduct market research and benchmark competitors to incorporate findings into strategic planning. An effective CI organization shares information across units to improve through industry best practices.
1. Can you use Ameritrades information to estimate the WACC WhTatianaMajor22
The document discusses estimating the cost of capital for Ameritrade to evaluate a planned investment strategy. It provides background on Ameritrade and details several estimates that have been used for its cost of capital, ranging from 8-15%. The consultant was hired to provide an estimate to use given information on Ameritrade's financials, industry comparables, and capital market conditions.
Assignment 2 Operations DecisionDue Week 6 and worth 300 points.docxrock73
Assignment 2: Operations Decision
Due Week 6 and worth 300 points
Using the regression results and the other computations from Assignment 1, determine the market structure in which the low-calorie frozen, microwavable food company operates.
Use the Internet to research two (2) of the leading competitors in the low-calorie frozen, microwavable food industry, and take note of their pricing strategies, profitability, and their relationships within the industry (worldwide).
Write a six to eight (6-8) page paper in which you:
1. Outline a plan that will assess the effectiveness of the market structure for the company’s operations. Note: In Assignment 1, the assumption was that the market structure [or selling environment] was perfectly competitive and that the equilibrium price was to be determined by setting QD equal to QS. You are now aware of recent changes in the selling environment that suggest an imperfectly competitive market where your firm now has substantial market power in setting its own “optimal” price
2. .
Given that business operations have changed from the market structure specified in the original scenario in Assignment 1, determine two (2) likely factors that might have caused the change. Predict the primary manner in which this change would likely impact business operations in the new market environment.
3.
Analyze the major short run and long cost functions for the low-calorie, frozen microwaveable food company given the cost functions below. Suggest substantive ways in which the low-calorie food company may use this information in order to make decisions in both the short-run and the long-run.
TC = 160,000,000 + 100Q + 0.0063212Q2VC = 100Q + 0.0063212Q2MC= 100 + 0.0126424Q
4. Determine the possible circumstances under which the company should discontinue operations. Suggest key actions that management should take in order to confront these circumstances. Provide a rationale for your response. (Hint: Your firm’s price must cover average variable costs in the short run and average total costs in the long run to continue operations.)
5.
Suggest one (1) pricing policy that will enable your low-calorie, frozen microwavable food company to maximize profits. Provide a rationale for your suggestion.
(Hints:
· In Assignment 1, you determined your firm’s market demand equation. Now you need to find the inverse demand equation. Having found that, find the Total Revenue function for your firm (TR is P x Q). From your firm’s Total Revenue function, then find your Marginal Revenue (MR) function.
· Use the profit maximization rule MR = MC to determine your optimal price and optimal output level now that you have market power. Compare these values with the values you generated in Assignment 1. Determine whether your price higher is or lower.
·
6. Outline a plan, based on the information provided in the scenario, which the company could use in order to evaluate its financial performance. Consider all the key drivers of performance, such a ...
Mercer Capital's Value Focus: Auto Dealer Industry | Year-End 2017Mercer Capital
Mercer Capital is a large valuation and financial advisory firm that publishes an annual newsletter on the auto dealer industry. The newsletter provides statistics on the industry and discusses the unique factors involved in valuing auto dealerships. Valuing auto dealerships requires special knowledge of the industry terms, financial statements, and hybrid valuation methods that combine asset-based and market approaches using blue sky multiples. The newsletter reviews trends in the industry, the unique financial statements and valuation approaches for auto dealerships, and common adjustments made in the valuation process.
Running Head ATC’S 6.0 & 7.02Running Head ATC’S 6.0 & 7..docxsusanschei
Running Head: ATC’S 6.0 & 7.0
2
Running Head: ATC’S 6.0 & 7.0
ATC’s 6.0 & 7.0
A Team Consulting (ATC)
Glynda CarMicheal, Frank LaPrade, Demetreaus Moore,
Shannon Oberlin, Tracy Reynolds, Woody Dessources
MT 490-01 Bachelors Internship in Management
Submitted by: Frank LaPrade
Professor Blake Escudier
Purdue Global University
ATC’s 6.0 & 7.0
6.0 Operational Management Plans Overview
ATC will be open seven (7) days a week, twenty-four (24) hours each day. Each store owner is responsible that all orders are processed. All store owners have their designation or responsibility to ATC and its operation. The store owner has their job designation according to ATC’s organizational flow chart.
6.1Technology
A-Team Consulting will acquire a web-server to host the e-commerce website, and will run on a windows based operating system. We will use server-software that will be an application software and database server. Also, that will process the data consumers input to purchase product from our on-line retail store. Web tools will enhance visual appearance of the website. A database system is needed that will store information about the products and services recorded from the website, and have networking that will enhance sharing of information between departments.
6.2 Website Design Requirements
The process of purchasing from a website needs to be simple with easy-to-understand ordering directions. Also, shipping instructions must be consumer friendly. The use of the web page is to focus on the customer with content and navigation to be visible. The website design will be reviewed according to sales and remodeled when needed.
6.3 Fulfillment Operations
Flow chart of the drop-shop business.
6.4 Operational Storyboard/Chart
1. Retailer (A-Team Consulting) ATC develops product with supplier and the niche to sell products.
2. ATC partners with CQ Group International Limited.
3. ATC develops website and displays the EleCycle product.
4. Consumers view and purchases product on website.
5. ATC managers authorizes purchase and a wholesale payment to dropship supplier (CQ Group International Limited).
6. CQ Group International Limited (supplier) packs and sends product to customer.
7.0 Financial Planning Overview
A-Team Consulting (ATC) consist of 6 equal owners who all work together collectively. Each owner has a specific role they play in the collective efforts of our business. We will create company positional requirements, and bylaws/procedures will be put in place so that everyone is following them, for each ownership job position, in case there is an ownership change.
7.1 Financial Requirement for Store Owners
ATC EleCycle is a small on-line e-commerce retail store. Since there are minimal required start-up costs the six owners will provide 1/6th the start-up costs. The financial requirements of the store will consist of the following: domain registration, on-line webpage design, web-host to maintain site ...
The opportunity to explore how a company uses the Capital Asset Pricing Model (CAPM) to compute the cost of capital for each of its divisions. The use of Weighted Average Cost of Capital (WACC) formula and the mechanics of applying it are stressed.
CI 2.0 - Competitive Innovation IntelligenceArik Johnson
Presentation to KMWorld 2006 Audience in San Jose California October 31 on How the Principles of Disruptive Innovation, Risk Management, Corporate Governance and Enterprise Collaboration are Driving the Incorporation of Blog, Wiki, Social Networking, Free-Tagging, Prediction Market and other Web 2.0 Features and Capabilities into Traditional Competitive Intelligence Software
Cost management and performance measurements for petroleum upstream industr p...Hamdy Rashed
Cost management and Balanced Scorecard is not appropriate only for manufacturing and commercial industry; cost management is applied in upstream industry such as Petroleum exploration, development and production cost. Many Petroleum Companies don’t pay more attention to cost control or balanced scorecard and especially during exploration phase or small companies except if Companies face financial dilemma, declining production or if they see they cannot meet their planned schedule of Capital program that lead them to not meet their obligation, commitments and required return, therefore, they start considering cost reduction or control. This paper provide management accountant, cost controller, financial controller, financial manager, internal auditor and cost recovery auditor with brief of cost control, how cost is analyzed and managed and performance is measured in Petroleum upstream industry.
IRJET- Credit Profile of E-Commerce CustomerIRJET Journal
This document proposes using RFM (Recency, Frequency, Monetary) variables and advanced k-means clustering to create positive and negative credit profiles for e-commerce customers. This will help minimize losses by identifying genuine versus fraudulent customers. The methodology calculates credit scores based on RFM and other factors. Advanced k-means clustering is then used to segment customers into clusters like excellent, good, average, and worst. Customers in different clusters will receive different benefits or restrictions based on their predicted reliability. The goal is to reduce losses from unwanted cancellations while retaining high value customers.
Business and Government Relations Please respond to the following.docxCruzIbarra161
"Business and Government Relations" Please respond to the following:
Discuss the main reasons why a business should or should not be involved in political discussions or take a political stand. Use terms found in Chapter 9 to demonstrate your understanding of the material. You can submit your initial discussion post and responses in either written or video format (2-3 minutes or less).
.
Business Continuity Planning Explain how components of the busine.docxCruzIbarra161
Business Continuity Planning: Explain how components of the business infrastructure are included in a business continuity plan. Discuss the processes of planning, analysis, design, implementation, testing and maintenance in developing this plan. This assignment must be at least 2 full pages. Apply the 4-C's of writing:
Correct, complete, clear, and concise.
.
business and its environment Discuss the genesis, contributing fac.docxCruzIbarra161
business and its environment
Discuss the genesis, contributing factors, modus operandi, effectiveness in generating social pressure, the strategy followed by target companies along with allied aspects with two examples from Canadian mining, manufacturing, telecommunication or utility companies.
minimum of 2000 words and 10 good quality references.
The paper should be properly cited as per
APA format.
.
business and its environment Discuss the genesis, contributing facto.docxCruzIbarra161
business and its environment Discuss the genesis, contributing factors, modus operandi, effectiveness in generating social pressure, the strategy followed by target companies along with allied aspects with two examples from Canadian mining, manufacturing, telecommunication or utility companies. minimum of 2000 words and 10 good quality references. The paper should be properly cited as per APA format.
.
Business BUS 210 research outline1.Cover page 2.Table .docxCruzIbarra161
Business BUS 210 research outline
1.
Cover page
2.
Table of content
3.
Executive summary
4.
Introduction
5.
Business Hypothesis / or Statement/ or the Main Question for the whole research
6.
Literature review
7.
Designing the questionnaires
8.
Pretest/ pilot test
9.
Adjust the questioners
– if required
10.
Collect the data from the official sample
11.
Data Entry
12.
Analysis
13.
Tabulations: Frequencies
“and Cross-tabulation if required”
14.
Report
o
Include the purpose for the business research
o
Time
o
Sample size
o
Location
o
Target
o
Way to collect the data (by email, personal, interview, phone…)
o
Challenges you faced
o
Findings /results
15.
Conclusion
16.
Recommendation
17.
References
18.
Appendixes
o
Questionnaire
o
All tabulations
.
BUS 439 International Human Resource ManagementInstructor Steven .docxCruzIbarra161
BUS 439 International Human Resource Management
Instructor: Steven Foster
Why did Nestle’s decentralized structure, which had brought the company success in the past, no longer fit the new realities of increasing global competition? What were the objectives of the GLOBE initiative? How was it more than just an SAP change?
.
BUS 439 International Human Resource ManagementEmployee Value Pr.docxCruzIbarra161
BUS 439 International Human Resource Management
Employee Value Proposition
Define and discuss EVP – what factors may make it difficult to determine EVP on a global basis? What considerations should be made to clearly understand and make use of this information? Why is EVP important for organizations to understand? What can organizations do to build a differentiated EVP?
.
Bullzeye is a discount retailer offering a wide range of products,.docxCruzIbarra161
Bullzeye is a discount retailer offering a wide range of products, including: home goods, clothing, toys, and food. The company is a regional retailer with 10 brick-and-mortar stores as well as a popular online store. Due to the recent credit card data breaches of various prominent national retail companies (e.g., Target, Home Depot, Staples), the Bullzeye Board of Directors has taken particular interest in information security, especially as it pertains to the protection of credit cardholder data within the Bullzeye environment. The Board has asked executive management to evaluate and strengthen the enterprise’s information security infrastructure, where needed.
In order to respond to the Board regarding their preparedness for a cyber-security attack, the Chief Financial Officer (CFO) has engaged your IT consulting firm to identify the inherent risks and recommend control remediation strategies to prevent or to detect and appropriately respond to data breaches. Your firm has been requested to liaison with the Internal Audit Department during the engagement. Your first step is to gain an understanding of Bullzeye’s IT environment. The Chief Audit Executive (CAE) schedules a meeting with key Bullzeye leadership personnel, including the CFO, Chief Information Officer (CIO), and Chief Information Security Officer (CISO).
The following key information was obtained.
Background
IT Security Framework/Policy -
Bullzeye has an information security policy, which was developed by the CISO. The policy was developed in response to an internal audit conducted by an external firm hired by the CAE. The policy is not based on one specific IT control framework but considers elements contained within several frameworks. An information security committee has been recently formed to discuss new security risks and to develop mitigation strategies.
The meeting will be held monthly and include the CISO and other key IT Directors reporting to the CIO.
In addition, a training program was implemented last year in order to provide education on various information security topics (e.g., social engineering, malware, etc.). The program requires that all staff within the IT department complete an annual information security training webinar and corresponding quiz. The training program is complemented by a monthly e-mail sent to IT staff, which highlights relevant information security topics.
General IT Environment -
Most employees in the corporate office are assigned a standard desktop computer, although certain management personnel in the corporate and retail locations are issued a laptop if they can demonstrate their need to work remotely. The laptops are given a standard Microsoft Windows operating system image, which includes anti-malware/anti-virus software and patch update software among others. In addition, new laptops are now encrypted; however, desktops and existing laptops are not currently encrypted due to budget concerns. The user provisioning.
Building on the work that you prepared for Milestones One through Th.docxCruzIbarra161
Building on the work that you prepared for Milestones One through Three, submit a document that builds upon the previously completed milestone summaries to provide an overall summary of the distribution company’s IT system as a whole. This should illustrate how each individual system component (network, database, web technology, computers, programming, and security systems) interrelates with the others and summarize the importance of IT technologies for the overall system.
.
Budget Legislation Once the budget has been prepared by the vari.docxCruzIbarra161
Budget Legislation
Once the budget has been prepared by the various agencies, it is often moved forward to the legislative body for authorization. The legislation process can result in unintended outcomes and restrictions. Search the internet and news reporting services for a story on an unintended outcome of interest to you and answer the following questions:
How did politics shape the outcome in unexpected ways?
Did “pork” spending or “apportionments and allotments” budget amendments affect the legislation?
Did a mid-year crisis or change in revenue expectations substantially impact the budget legislative action?
Respond to at least two of your classmates’ postings.
Performance Budgeting
Performance budgeting has been attempted at the local level in recent years. Address the issues of performance budgeting while answering the following questions: What attributes of performance budgeting make it particularly suitable to local government budgeting? Will the same attributes be as useful at the federal level? Respond to at least two of your classmates’ postings.
.
Browsing the podcasts on iTunes or YouTube, listen to a few of Gramm.docxCruzIbarra161
Browsing the podcasts on iTunes or YouTube, listen to a few of Grammar Girl's Quick and Dirty Tips series (grammar tips by Mignon Fogarty) or Money Girl's series (financial advice by Laura Adams).
Your Task: Pick a Money Girl or Grammar Girl podcast that interests you. Listen to it, or obtain a transcript on the website and study it for its structure. Is it direct or indirect? Informative or persuasive? How is it presented? What style does the speaker adopt? Was it effective? What changes would you suggest? Write an e-mail that discusses the podcast you analyzed.
.
Brown Primary Care Dental clinics Oral Health Initiative p.docxCruzIbarra161
Brown Primary Care Dental clinics Oral Health Initiative project
The project will consist of three elements:
•
Part 1: Economic Analysis of the Initiative of Choice [
Brown Primary Care Dental clinics Oral Health Initiative
5 pages) .
The economic analysis should include:
Principles of economics for evaluating and assessing the need for the public health initiative
A brief description of whether the initiative is a micro or macroeconomic program
A determination of whether the result of the initiative is a public or private good
A description of the initiative’s financing source
An explanation of how the initiative may affect supply and demand of public health services
•
Part 2: Financial Accounting Analysis (5 pages)
A 5-year proposed budget including major line items (see blank form for proposed budget on NIH grants pagelocated in the course syllabus or here:
Online Article:
U.S. Department of Health and Human Services (2009, June).
Public health service: PHS 398
. Detailed Budget for Initial Budget Period Form Page 4
http://grants.nih.gov/grants/funding/phs398/phs398.html
Grant Application PHS 398. U.S. Department of Health And Human Services Public Health Service.
-An analysis of budget line items, costs, sources of revenue, and deficits
-An analysis of the fiscal soundness and long-term viability of the public -health initiative
•
Part 3: Alternative Funding Sources (5pages)
Part 3: Alternative Funding Sources[ 5 pages
For this part of your Scholar-Practitioner Project you will evaluate funding sources for the public health initiative you selected in Week 2. Then, you will submit a mock grant proposal for an appropriate grant to supplement or allow expansion of your selected public health initiative.
The proposal should include:
•
The public health initiative’s purpose, background, goals, and objectives
•
A description of the funding sources you selected and explanation of why you selected it over others
•
Eligibility and selection criteria for the funding source
•
An explanation of the funds needed and how the funds may be used
•
The adjusted total 5-year budget you completed in week 9 (include all instructor recommendations)
(8 sources/references)
.
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·
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Table of content
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Executive summary
4.
Introduction
5.
Business Hypothesis / or Statement/ or the Main Question for the whole research
6.
Literature review
7.
Designing the questionnaires
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Data Entry
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Analysis
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Tabulations: Frequencies
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Report
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Include the purpose for the business research
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Time
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Sample size
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Location
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Target
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Way to collect the data (by email, personal, interview, phone…)
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Challenges you faced
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Findings /results
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Conclusion
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Recommendation
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References
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Appendixes
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Questionnaire
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The project will consist of three elements:
•
Part 1: Economic Analysis of the Initiative of Choice [
Brown Primary Care Dental clinics Oral Health Initiative
5 pages) .
The economic analysis should include:
Principles of economics for evaluating and assessing the need for the public health initiative
A brief description of whether the initiative is a micro or macroeconomic program
A determination of whether the result of the initiative is a public or private good
A description of the initiative’s financing source
An explanation of how the initiative may affect supply and demand of public health services
•
Part 2: Financial Accounting Analysis (5 pages)
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Online Article:
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Public health service: PHS 398
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http://grants.nih.gov/grants/funding/phs398/phs398.html
Grant Application PHS 398. U.S. Department of Health And Human Services Public Health Service.
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•
Part 3: Alternative Funding Sources (5pages)
Part 3: Alternative Funding Sources[ 5 pages
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•
The public health initiative’s purpose, background, goals, and objectives
•
A description of the funding sources you selected and explanation of why you selected it over others
•
Eligibility and selection criteria for the funding source
•
An explanation of the funds needed and how the funds may be used
•
The adjusted total 5-year budget you completed in week 9 (include all instructor recommendations)
(8 sources/references)
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TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF
Earnings, Comprehensive Earnings and Retained Earnings (in thousands except per share data)
For the year ended December 31,
2011
2010
2009
Net product sales
$528,369
$517,149
$495,592
Rental and royalty revenue
4,136
4,299
3,739
Total revenue
532,505
521,448
499,331
Product cost of goods sold
365,225
349,334
319,775
Rental and royalty cost
1,038
1,088
852
Total costs
366,263
350,422
320,627
Product gross margin
163,144
167,815
175,817
Rental and royalty gross margin
3,098
3,211
2,887
Total gross margin
166,242
171,026
178,704
Selling, marketing and administrative expenses
108,276
106,316
103,755
Impairment charges
—
—
14,000
Earnings from operations
57,966
64,710
60,949
Other income (expense), net
2,946
8,358
2,100
Earnings before income taxes
60,912
73,068
63,049
Provision for income taxes
16,974
20,005
9,892
Net earnings
$43,938
$53,063
$53,157
Net earnings
$43,938
$53,063
$53,157
Other comprehensive earnings (loss)
(8,740
)
1,183
2,845
Comprehensive earnings
$35,198
$54,246
$56,002
Retained earnings at beginning of year.
$135,866
$147,687
$144,949
Net earnings
43,938
53,063
53,157
Cash dividends
(18,360
)
(18,078
)
(17,790
)
Stock dividends
(47,175
)
(46,806
)
(32,629
)
Retained earnings at end of year
$114,269
$135,866
$147,687
Earnings per share
$0.76
$0.90
$0.89
Average Common and Class B Common shares outstanding
57,892
58,685
59,425
(The accompanying notes are an integral part of these statements.)
CONSOLIDATED STATEMENTS OF
Financial Position
TOOTSIE ROLL INDUSTRIES, INC. AND SUBSIDIARIES (in thousands except per share data)
Assets
December 31,
2011
2010
CURRENT ASSETS:
Cash and cash equivalents
$78,612
$115,976
Investments
10,895
7,996
Accounts receivable trade, less allowances of $1,731 and $1,531
41,895
37,394
Other receivables
3,391
9,961
Inventories:
Finished goods and work-in-process
42,676
35,416
Raw materials and supplies
29,084
21,236
Prepaid expenses
5,070
6,499
Deferred income taxes
578
689
Total current assets
212,201
235,167
PROPERTY, PLANT AND EQUIPMENT, at cost:
Land
21,939
21,696
Buildings
107,567
102,934
Machinery and equipment
322,993
307,178
Construction in progress
2,598
9,243
455,097
440,974
Less—Accumulated depreciation
242,935
225,482
Net property, plant and equipment
212,162
215,492
OTHER ASSETS:
Goodwill
73,237
73,237
Trademarks
175,024
175,024
Investments
96,161
64,461
Split dollar officer life insurance
74,209
.
Briefly discuss the differences in the old Minimum Foundation Prog.docxCruzIbarra161
Briefly discuss the differences in the old Minimum Foundation Program ( 1947 ) and the FEFP ( 1973 ).
What part of the basic FEFP formula ( State Aid = WFTE x BSA - (.96 AV } provides A. equity for students and B. equalization of funding for districts?
Review how student transportation dollars are calculated. What are the two major components?
What is the function of Workforce Development funds?
What are Categorical Program funds? How do they differ from general FEFP funding?
What are the four constructs on which the FEFP is based? ( Page 1--2
nd
paragraph )
Briefly define the following:
Full time equivalent
Program cost factor
Weighted FTE
Base student allocation
District cost differential
Sparsity supplement
Supplemental academic instruction
0.748 Mills Discretionary Compresion (audio is incorrect-changed from Local Discretionary Equalization).
ESE guaranteed allocation
Required local effort
Please answer all in as a mini- brief and follow directions as I tried to be as spicific as possible with the questions.
.
Briefly compare and contrast EHRs, EMRs, and PHRs. Include the typic.docxCruzIbarra161
Briefly compare and contrast EHRs, EMRs, and PHRs. Include the typical content and functionality of each.
Focusing on one of these types of records, describe the key benefits for one of the stakeholders (e.g., patients, providers, or health care management) of being able to record and/or access patient data through this system.
Should all patient health information be recorded electronically? If so, explain why. If not, explain what the exceptions should be and why.
.
Brief Exercise 9-11Suppose Nike, Inc. reported the followin.docxCruzIbarra161
*Brief Exercise 9-11
Suppose
Nike, Inc.
reported the following plant assets and intangible assets for the year ended May 31, 2014 (in millions): other plant assets $954.9; land $226.7; patents and trademarks (at cost) $530.7; machinery and equipment $2,137.2; buildings $967; goodwill (at cost) $207.5; accumulated amortization $59.3; and accumulated depreciation $2,290.
Prepare a partial balance sheet for Nike for these items.
(List Property, Plant and Equipment in order of Land, Buildings and Equipment.)
NIKE, INC.
Partial Balance Sheet
As of May 31, 2014
(in millions)
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$
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$
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:
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$
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*Exercise 9-7
Wang Co. has delivery equipment that cost $50,840 and has been depreciated $24,960.
Record entries for the disposal under the following assumptions.
(Credit account titles are automatically indented when amount is entered. Do not indent manually.)
(a)
It was scrapped as having no value.
(b)
It was sold for $37,200.
(c)
It was sold for $19,360.
No.
Account Titles and Explanation
Debit
Credit
(a)
[removed]
[removed]
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(b)
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(c)
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*Exercise 9-8
Here are selected 2014 transactions of Cleland Corporation.
Jan. 1
Retired a piece of machinery that was purchased on January 1, 2004. The machine cost $62,160 and had a useful life of 10 years with no salvage value.
June 30
Sold a computer that was purchased on January 1, 2012. The computer cost $37,000 and had a useful life of 4 years with no salvage value. The computer was sold for $5,630 cash.
Dec. 31
Sold a delivery truck for $9,310 cash. The truck cost $23,600 when it was purchased on January 1, 2011, and was depreciated based on a 5-year useful life with a $3,290 salvage value.
Journalize all entries required on the above dates, including entries to update depreciation on assets disposed of, where applicable. Cleland Corporation uses straight-line depreciation.
(Record entries in the order displayed in the problem statement. Credit account titles are automatically indented when amount is entered. Do not indent manually.)
Date
Account Titles and Explanation
Debit
Credit
[removed]
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[removed]
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[removed]
[removed]
[removed]
[removed]
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(To record depreciation expense for the first 6 months of 2014)
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[remo.
Level 3 NCEA - NZ: A Nation In the Making 1872 - 1900 SML.pptHenry Hollis
The History of NZ 1870-1900.
Making of a Nation.
From the NZ Wars to Liberals,
Richard Seddon, George Grey,
Social Laboratory, New Zealand,
Confiscations, Kotahitanga, Kingitanga, Parliament, Suffrage, Repudiation, Economic Change, Agriculture, Gold Mining, Timber, Flax, Sheep, Dairying,
This presentation was provided by Rebecca Benner, Ph.D., of the American Society of Anesthesiologists, for the second session of NISO's 2024 Training Series "DEIA in the Scholarly Landscape." Session Two: 'Expanding Pathways to Publishing Careers,' was held June 13, 2024.
This document provides an overview of wound healing, its functions, stages, mechanisms, factors affecting it, and complications.
A wound is a break in the integrity of the skin or tissues, which may be associated with disruption of the structure and function.
Healing is the body’s response to injury in an attempt to restore normal structure and functions.
Healing can occur in two ways: Regeneration and Repair
There are 4 phases of wound healing: hemostasis, inflammation, proliferation, and remodeling. This document also describes the mechanism of wound healing. Factors that affect healing include infection, uncontrolled diabetes, poor nutrition, age, anemia, the presence of foreign bodies, etc.
Complications of wound healing like infection, hyperpigmentation of scar, contractures, and keloid formation.
How Barcodes Can Be Leveraged Within Odoo 17Celine George
In this presentation, we will explore how barcodes can be leveraged within Odoo 17 to streamline our manufacturing processes. We will cover the configuration steps, how to utilize barcodes in different manufacturing scenarios, and the overall benefits of implementing this technology.
🔥🔥🔥🔥🔥🔥🔥🔥🔥
إضغ بين إيديكم من أقوى الملازم التي صممتها
ملزمة تشريح الجهاز الهيكلي (نظري 3)
💀💀💀💀💀💀💀💀💀💀
تتميز هذهِ الملزمة بعِدة مُميزات :
1- مُترجمة ترجمة تُناسب جميع المستويات
2- تحتوي على 78 رسم توضيحي لكل كلمة موجودة بالملزمة (لكل كلمة !!!!)
#فهم_ماكو_درخ
3- دقة الكتابة والصور عالية جداً جداً جداً
4- هُنالك بعض المعلومات تم توضيحها بشكل تفصيلي جداً (تُعتبر لدى الطالب أو الطالبة بإنها معلومات مُبهمة ومع ذلك تم توضيح هذهِ المعلومات المُبهمة بشكل تفصيلي جداً
5- الملزمة تشرح نفسها ب نفسها بس تكلك تعال اقراني
6- تحتوي الملزمة في اول سلايد على خارطة تتضمن جميع تفرُعات معلومات الجهاز الهيكلي المذكورة في هذهِ الملزمة
واخيراً هذهِ الملزمة حلالٌ عليكم وإتمنى منكم إن تدعولي بالخير والصحة والعافية فقط
كل التوفيق زملائي وزميلاتي ، زميلكم محمد الذهبي 💊💊
🔥🔥🔥🔥🔥🔥🔥🔥🔥
A Visual Guide to 1 Samuel | A Tale of Two HeartsSteve Thomason
These slides walk through the story of 1 Samuel. Samuel is the last judge of Israel. The people reject God and want a king. Saul is anointed as the first king, but he is not a good king. David, the shepherd boy is anointed and Saul is envious of him. David shows honor while Saul continues to self destruct.
Coursework ProjectCompanies are paying out too much in dividen
1. Coursework Project
“Companies are paying out too much in dividends. Shareholders
have too much power in corporate affairs. In addition, company
law should be changed to allow more power for other
“stakeholders” – customers and employees. So says Andy
Haldane, chief economist at the Bank of England, in a critique
that will be seized upon as compelling evidence of broken
capitalism.” Bill Jamieson
The assertion within the above quote is that companies are not
investing for the future as much as they should. Thus, pursuing
short-termism – a focus on immediate gains rather than long-
term prospects. Given this assertion, you are required to:
a) Evaluate dividend policy theories and whether companies
should maximise shareholders wealth or satisfice stakeholders’
other objectives.
(25 marks)
b) Select a company of your choice from the top 250 UK listed
companies for which you can easily access annual reports,
especially information on dividend policy, share prices, and
capital structure for a continuous period of not less than 11
years. Using this information, critically evaluate whether the
firm’s dividend policy have had any impact on its share price.
(35 marks)
c) Using Fisher-Hirshleifer model, examine firms’ investment
decisions, owners’ consumption decisions in relation to the role
of capital markets.
(20 marks)
d) Discuss the importance of merger and acquisition for
2. developed economy (20 marks
Total marks (100
marks)
Your coursework should not exceed 3000 words. There is no
fixed penalty for exceeding the word count, but students should
be made aware that the marker will not consider any work after
the +10% word count tolerance has been reached, within the
allocation of marks. Students may therefore be penalised for a
failure to be concise and for failing to conclude their work
within the word count specified.
Indicative contents
a)
· Critically review / evaluate dividend policies
· What is the impact of dividend payment on companies’
investment practices and their capital structure?
· Who are stakeholders within a company and what are
competing interests of stakeholders versus shareholders?
(35 marks)
b)
· Role of dividend in terms of signalling theory
· Use data to benchmark comparison between share price and
firm’s dividend policy
· To carry out data analysis and comment what other factors
than dividend pay-out impact on company’s share price
(35 marks)
3. c)
· Use HL model to explain the operation of the separation
theorem.
· Infer the relationship between capital markets and
consumption decision
· Relate the HL model with agency relationship
(30 marks)
d)
· Define merger and acquisition
· Discuss importance of merger
· Why merger and acquisitions are more active in developed
countries
READING ASSIGNMENT
Your project must be submitted as a Word document (.docx,
.doc)*. Your project will be individually graded by your
instructor and therefore will take up to a few weeks to grade.
Be sure that each of your files contains the following
information:
· Your name
· Your student ID number
· The exam number
· Your email address
To submit your graded project, follow these steps:
· Log in to your student portal.
· Click on Take Exam next to the lesson you’re working on.
· Find the exam number for your project at the top of the Project
Upload page.
· Follow the instructions provided to complete your exam.
Be sure to keep a backup copy of any files you submit to the
school!
This case is based on real financial data provided by a retail
automobile dealership (Motomart) seeking to relocate closer to
4. an existing retail dealership. You’ll examine the mixed cost
data from Motomart and apply both high-low and regression to
attempt to separate mixed costs into their fixed and variable
components for break-even and contribution margin
computations. You’ll find that the data is flawed because
Motomart was a single observation in a larger database. Don’t
attempt to correct the data (e.g., remove outliers or influential
outliers). You’ll be producing a scatterplot and apply high-low
and regression methods to the extent practicable and writing a
summary report of the findings.
Motomart operates a retail automobile dealership. The
manufacturer of Motomart products, like all automobile
manufacturers, produces forecasts. It has long been an industry
practice to use variable costing-based/break-even analyses as
the foundation for these forecasts, to examine their cost
behavior as it relates to the new retail vehicles sold
(NRVS) cost driver. In preparing this financial information, a
common financial statement format and accounting procedures
manual are provided to each retail auto dealership. The
dealership is required to produce monthly financial statements
using the guidelines provided by this common accounting
procedures manual, and then furnish these financial statements
to the manufacturer. General Motors, Ford, Nissan, and all other
automobile manufacturers employ similar procedures manuals.
The use of a common format facilitates the development of
composite financial statements that can be used to estimate
costs and produce financial forecasts for future or proposed
retail dealership sites (Cataldo and Kruck 1998). Zimmerman
(2003) suggests that as many as 77 percents of manufacturers
divide costs into variable and fixed components and that
managers arrive at these estimates by classifying individual
accounts as being primarily fixed or primarily variable (67).
For this case, you’ll examine mixed costs as defined by the
manufacturer. Using the scatterplot, high-low, and regression
methods, separate these mixed costs into their fixed and
variable components. The data is problematic, and a clear
5. solution won’t exist. Don’t attempt to correct the data by
removing outliers, but make observations based on any patterns
you observe. The case will expose you to actual data and
require you to summarize your findings, including any
conclusions you’re able to reach and why the financial data
makes it impossible to separate the mixed costs into their fixed
and variable components.
Motomart: A Litigation Support Engagement
The Motomart case evolved from a litigation support
engagement. The lead author of this case was hired to analyze
the data and provide expert testimony. His report and testimony
was made available to the public (for a fee to cover
reproduction costs). A broad description of the relevant points
for the Motomart case follows.
Motomart wanted to move their retail automobile dealership,
blaming their location for declining profits and increasing
losses. They provided financial projections, using variable
costing, to show that after the relocation both Motomart and the
existing dealership would be profitable. They created these
financial projections using a database provided by the
manufacturer, which included all North American retail
automobile dealerships. Motomart was one of the observations
or retail automobile dealerships included in the database used to
create these financial projections. You’ll be examining portions
of Motomart’s historical financial data.
The relocation site was quite close to the existing dealership
(which we’ll refer to as Existing Dealer), and Existing Dealer
felt that, if the relocation was permitted, one or both of the
dealerships would fail to break even and eventually go
bankrupt, leading to poor service, or what the industry refers to
as “orphaned” owners of these automobiles.
Antitrust laws provided Existing Dealer with the means to block
the relocation requested by Motomart, but only if it could prove
that the relocation wasn’t in the best interest of the consuming
public. Generally, the only way to prove this is to prove that
there’s simply not enough business for both retail automobile
6. dealerships to break even (or generate a reasonable return on
investment, given the risks associated with the industry). Again,
the manufacturer, in support of the proposed Motomart
relocation, supplied financial projections showing that both
retail automobile dealerships would be profitable after the
relocation.
The expert witness hired to investigate the merits of the
relocation was given the Motomart data, but not the entire
database that included the Motomart data. The Motomart data
was in such poor form that it wasn’t possible to produce a
financial forecast. An alternative forecast, not included in this
case, was produced. This alternative forecast did not support the
relocation of Motomart to a site closer to Existing Dealer. The
alternative forecast showed that the market simply couldn’t
support two retail automobile dealerships. The implication was
that, as the weaker of the two dealerships, Motomart was losing
business to Existing Dealer. In conclusion, the relocation
request by Motomart was denied.
Income and Expense Data
The following tables give you information such as income
statements, semi-fixed expenses, and salaries for Motomart.
Look for unusual entries or discrepancies in their records and,
where you can, note the cause of the problems.
Table 3 summarizes financial and cost driver information
produced by Motomart, where new retail vehicles sold (NRVS)
is the cost driver. The account classification method has
resulted in three cost behavior classifications: variable, semi -
fixed, and fixed costs. Semi-fixed is the automobile industry-
specific term used for mixed costs. We’ll assume that
Motomart’s classifications of variable costs (VCs) and fixed
costs (FCs) are correct, and focus our analysis on Motomart’s
semi-fixed or mixed costs.
Table 2
SElECTED HISTORICAl INCOME STATEMENT AND
RElATED MEASURES
9. 2,653,620
Operating Profit/(Loss)**
263,828
112,314
-96,699
-94,345
-516,092
New Retail Vehicles Sold
1,798
1,977
1,674
1,450
1,897
Notes:
* Revenues less variable costs equal Net Variable Revenues (or
Contribution Margin, in aggregate).
** Net Variable Revenue less Total S-F Expenses less Total
Fixed Expenses equals Operating Profit/(Loss).
Table 3 provides five years of monthly data (N=60) for NRVS
and the related semi-fixed or mixed cost measures. Semifixed
costs were significant. Recall that they ranged from nearly $1.2
million for calendar and fiscal year (FY) 1984 to almost $2.2
million for FY 1988 (see Table 2).
Table 3
SEMI-FIXED (MIXED) EXPENSES FOR THE 60-MONTH
PERIOD (FY 1984 THROUGH 1988)
Mo
NRVS
Salary
Vacation
Adv/Trng
SplyTls/Lndry
1
197
$ 52,951
$ -
30. 60
$ 717
$ 486
$ 1,746
$ 188,040
$ 352,182
Recall the cost function applying to the high-low and regression
methods, which are provided in a variety of forms, depending
on the texts you used in your previous math, economics, or
accounting courses. Below is a brief outline of the high-low and
regression methods.
For the high-low method to work, the $H and #H and the $L and
#L measures must be from the same accounting period.
Preparing Graphs
The single cost driver and nonfinancial measure in Table 3 is
new retail vehicles sold (NRVS or X in the above cost
function). There are eight financial measures (salary; vacation;
advertising and training; supplies, tools, and laundry; freight;
vehicles; demonstrators; and floor-planning [also known in the
automobile retail industry as interest expense relating to new
car inventory]), as well as a total (aggregate measure) provided
for all eight financial measures (or the Y in the above cost
function).
Using NRVS, the only available cost-driver, use Excel to
prepare nine separate scatter plots and cost function-based trend
lines and nine separate line graphs for each of the financial
measures provided in Table 3. The images below are an example
of completed graphs for salaries.
A Scatterplot Graph for Motomart SalariesA Line Graph for
Motomart Salaries
Now examine, on a preliminary basis, the pattern or trend (or
lack thereof) for each of the “X” (NRVS) and “Y” (financial
measure) data pairs and consider the following questions:
· You’re observing these data pairs for a 60-month period (i.e.,
five years); are any annual or other seasonal patterns or trends
immediately apparent?
31. · Do the slopes of the trend lines (i.e., variable costs) make
sense?
In the case of salaries (see the graphs above), there’s no
apparent trend or pattern. It’s odd that salaries decrease as
NRVS increases—in fact, this doesn’t make any sense.
However, it’s consistent with the high-low results, which also
didn’t make sense. But remember, since this data came from
Motomart, the firm attempting to relocate, it’s real and from an
actual litigation support engagement (not a textbook problem),
so it won’t necessarily work out perfectly.
The cost equation in Table 4 shows fixed costs (FC) at
$106,866.00 and variable costs to be used to “reduce” total
costs (TC) by $110.10 per NRVS. Compare the salary figures
and coefficients (in bold type) to the scatterplot graph for
Motomart Salaries. Notice that if you extended the trend line in
Figure 4, it would hit the y-axis intercept at $106,866.00 (the
fixed cost). Also, notice that the R-squared (R-sq) measure in
Table 4 equals 4.1 percent.
Table 4
SALARY = $106,866.00 – $110.10 NRVS
Predictor
Coefficient
Std Deviation
t-statistic
p-value
Constant
106,866.00
10,793.00
9.90
0.000
NRVS
110.10
70.17
–1.57
0.122
s = 25300 r-sq = 4.1%
32. Analysis of Variance
SOURCE
DF
SS
MS
F-statistic
p-value
Regression
1
261,795
261,795
0.10
0.754
Error
58
152,801,120
2,634,502
Total
59
153,062,912
Your math and statistics courses probably reviewed the use of
the t-statistic, overall F-statistic, and related p-values, as well
as some of the other measures presented here. Our application is
a very simple one, so we’ll focus on only the R-squared
measure. The other measures are provided in this example only
for completeness.
Because the high-low technique didn’t work, it makes sense that
the regression technique wouldn’t work well, either. Therefore,
the results for high-low and regression are consistent. The
advantage of the regression technique is that it mathematically
quantifies the level of the problem or difficulty with the data. In
33. this case, one of simple regression, the R-squared measure tells
the story. Still focusing on the salaries example in Figure 5, the
R-squared measure tells us that only 4.1 percent of the total or
mixed or semi-fixed cost is explained by NRVS. This means
that that cost equation developed from this historical data isn’t
helpful in predicting future costs, as nearly 96 percent of the
cost behavior, through use of this equation, remains
unexplained.
Requirements
The project requires five steps to be presented.
Step 1 – Provide comments on a 5-year Income Statement.
Step 2 – Discuss patterns in expense items.
Step 3 – Identify High/Low activity levels.
Step 4 – Compute cost equations.
Step 5 – Summarize your findings.
In one Word document, provide individual sections for each
Step. This Word document along with the Excel file (described
below) will be uploaded when you click on the Take Exam
button on your Student Portal to submit your project (described
under “Submitting Your Assignment” later in the instructions).
This Senior Capstone project highlights your knowledge and the
skills you have developed over the course of your education.
There is nothing “new” to be learned here.
The knowledge and skills required for this project include
English Composition, Financial Accounting, Managerial
Accounting, Business Statistics and the abilities to think
critically and to present your work in a professional manner.
If you are unsure or don’t understand something about the
project, then go back to your previous subjects to review. For
example, if you don’t remember how to use the High/Low
Method, the revisit your Managerial Accounting to refresh your
memory on how to use the High/Low Method
Remember, there is nothing “new” here. Everything about this
project you should already know how to do.
At the beginning of the assignment, on the right-hand side under
"Optional Study Materials" select the "PPMC Excel
34. Spreadsheet" menu item to download the required Excel
spreadsheet.
· The Excel file provides a detailed example of what needs to be
done for one of the expenses in order to fill out the figures
required in Steps 3 & 4. You will include this Excel file as part
of your project submission along with the Word document you
create to present this project.
· There is a “60 Months” worksheet that has the 60 months of
data already entered. There is also a “Sample” worksheet that an
example of how to calculate the R-sq.
· There is a “PLOT – SALARY” worksheet that shows how the
FC, VC and R-sq figures are calculated for Salary.
· There is also a “high&low” worksheet for help with the
high/low method in Step 3.
· Complete and include the Excel spreadsheet. You will need to
create new worksheets for each of the other expenses following
the example to calculate the figures needed for Table 5.
Operating Profits and Semi-Fixed Expenses
Step 1
First, using Tables 2–4, note the pattern of operating profits (or
losses) over the five-year period. Then focus only on the semi-
fixed expenses contained in Table 2. Do any amounts appear to
be odd? (Think about whether the figures are right or wrong.
What is it about the individual numbers that is not “right”?)
Next, briefly comment on the five-year pattern or trend for
operating profit/loss measures. You should be able to respond to
this step in a few well-written sentences.
Step 2
Focus only on the detailed semi-fixed expense contained in
Table 3. Are there any unusual or odd patterns you might note
in this detailed financial data? There are 5 expenses that have
an oddity about them which doesn’t make sense. Similar to Step
1, what is it about the individual numbers that are not “right”?
There are 4 expenses that “stick out” as not being correct and
one that has an unusual pattern. attention. You should be able to
respond to this requirement in a few well-written sentences.
35. Briefly comment on only the most obvious or apparent measures
or patterns, by expense item.
Step 3
Identify the high and low measures in each column, just as you
would in preparation for the application of the high-low method
or technique. For example, in Table 3 the high measure for the
cost driver (NRVS) is 280 NRVS in month 13 and the low
measure is 31 NRVS in month 12. Repeat this process for each
of the eight separate semi-fixed expense columns and also for
the total expense column. Insert a table for Step 3 to present
your findings. The table should have three columns;
1. Expense
2. High Figure
3. Low Figure
After the high and low measures have been identified in each
column, try to match each expense column’s high and low
measure, separately, to the highs and lows identified in the
NRVS column. They won’t match. Don’t try to correct the data,
but comment on the potential for application of the high-low
technique. What happens when the high and low activity level
doesn’t match the high and low expense measure? Does this
prevent you from correctly applying the high-low technique?
Don’t overanalyze this data, because there’s a problem with it
and you don’t have sufficient information to correct it. Merely
summarize your observations and unsuccessful attempts to
match the high and low NRVS months (identified above),
separately, with each of the high and low expense measure
months. You should be able to do this in a very few well-written
sentences.
Step 4
Using the Excel file "Exam 500896 - Motomart Excel
Spreadsheet" as per the instructions found above under the
"Project Requirements", reproduce and complete the following
Table 5 and answer the four questions. The Excel file provides
an example of how to arrive at the figures that need to be
entered into the Table. You will create new worksheets for each
36. of the remaining expenses. Do the work to arrive at the figures
for each expense. Be sure to include the Excel file as part of
your submission to "backup" the data presented in the Table in
the Word document being submitted.
The Excel spreadsheet, while it will be included in your
submission for the project, will not be graded. It is supporting
documentation for what is being presented in the Word
document. Only the information that is in the Word document
will be graded.
The FC and VC should be rounded to the nearest dollar. The R-
sq is a percentage figure carried out to 2 decimal places.
Table 5
Column
Expense
FC
VC
R-sq
1
Salaries
$106,866
–$110
4.10%
2
Vacation
3
Advertising and training
4
Supplies/tools/laundry
38. 1. What problems did you encounter?
2. Are the R-squared measures high or low?
3. Are the slopes negative or positive?
4. Are your conclusions consistent with those from the high-low
effort?
Step 5
Summarize your findings by answering the following questions:
1. Can the Motomart data be used to prepare a reliable financial
forecast? Why or why not?
2. If Motomart is included in the very large database used to
prepare the financial forecast that supports the relocation of
Motomart closer to Existing Dealer, what concerns might
present themselves with respect to the remainder of the database
used for this forecast?
3. Would you rely on this forecast?
Writing Guidelines
Refer to the “Submitting Your Work” section at the end of this
book for details on submission requirements for the Motomart
Case assignment.
Grading Criteria
Your assignment will be evaluated according to the following
criteria:
Content
80 percent
Written Communication
10 percent
Format
10 percent
Criteria
Grade
Content 80 pts
· Step 1 – Provides comments on 5-year income statement
(worth 10 points)
· Step 2 – Discuss patterns in expense items (worth 10 points)
· Step 3 – Identify high and low activity levels (worth 10
39. points)
· Step 4 – Compute cost equations (worth 30 points)
· Step 5 – Summarize your findings (worth 20 points)
Written Communication 10 pts
· Answers each question in complete sentences leading to well -
structured responses to each Step listed above.
· Uses correct grammar, spelling, punctuation, and sentence
structure
· Provides clear organization by using words like first, however,
on the other hand, and so on, consequently, since,
next, and when
· Makes sure the paper contains no typographical errors
Format 10 pts The paper is double-spaced, typed in font size 12.
It includes the student’s
· Name and address
· Student number, Course title and number, and project number
Total Grade
%
Submitting Your Work
Writing Guidelines
1. Type your submission, double-spaced, in a standard print
font, size 12. Use a standard document format with 1-inch
margins. (Do not use any fancy or cursive fonts.)
2. Include the following information at the top of your paper:
a. Name and complete mailing address
b. Student number
c. Course title and number (Senior Capstone: Business, BUS
450)
d. Project number (see Format instructions)
e. Project title (Professional Development Activity, Case 1,
etc.)
3. Read the assignments carefully and complete each one in the
order given.
40. 4. Be specific. Limit your submission to the questions asked and
issues mentioned.
5. If you include quotes or ideas from textbooks or other
sources, provide a reference page in either APA or MLA style.
On this page, list books, Web sites, journals, or any other
references used in preparing the paper.
6. Proofread your work carefully. Check for correct spelling,
grammar, punctuation, and capitalization.
NOTES
Top of Form
Bottom of Form
READING ASSIGNMENT
Your project must be submitted as a Word document (.docx,
.doc)*. Your project will be individually graded by your
instructor and therefore will take up to a few weeks to grade.
Be sure that each of your files contains the following
information:
· Your name
· Your student ID number
· The exam number
· Your email address
To submit your graded project, follow these steps:
· Log in to your student portal.
· Click on Take Exam next to the lesson you’re working on.
· Find the exam number for your project at the top of the Project
Upload page.
· Follow the instructions provided to complete your exam.
Be sure to keep a backup copy of any files you submit to the
school!
41. This case is based on real financial data provided by a retail
automobile dealership (Motomart) seeking to relocate closer to
an existing retail dealership. You’ll examine the mixed cost
data from Motomart and apply both high-low and regression to
attempt to separate mixed costs into their fixed and variable
components for break-even and contribution margin
computations. You’ll find that the data is flawed because
Motomart was a single observation in a larger database. Don’t
attempt to correct the data (e.g., remove outliers or influential
outliers). You’ll be producing a scatterplot and apply high-low
and regression methods to the extent practicable and writing a
summary report of the findings.
Motomart operates a retail automobile dealership. The
manufacturer of Motomart products, like all automobile
manufacturers, produces forecasts. It has long been an industry
practice to use variable costing-based/break-even analyses as
the foundation for these forecasts, to examine their cost
behavior as it relates to the new retail vehicles sold
(NRVS) cost driver. In preparing this financial information, a
common financial statement format and accounting procedures
manual are provided to each retail auto dealership. The
dealership is required to produce monthly financial statements
using the guidelines provided by this common accounting
procedures manual, and then furnish these financial statements
to the manufacturer. General Motors, Ford, Nissan, and all other
automobile manufacturers employ similar procedures manuals.
The use of a common format facilitates the development of
composite financial statements that can be used to estimate
costs and produce financial forecasts for future or proposed
retail dealership sites (Cataldo and Kruck 1998). Zimmerman
(2003) suggests that as many as 77 percents of manufacturers
divide costs into variable and fixed components and that
managers arrive at these estimates by classifying individual
accounts as being primarily fixed or primarily variable (67).
For this case, you’ll examine mixed costs as defined by the
manufacturer. Using the scatterplot, high-low, and regression
42. methods, separate these mixed costs into their fixed and
variable components. The data is problematic, and a clear
solution won’t exist. Don’t attempt to correct the data by
removing outliers, but make observations based on any patterns
you observe. The case will expose you to actual data and
require you to summarize your findings, including any
conclusions you’re able to reach and why the financial data
makes it impossible to separate the mixed costs into their fixed
and variable components.
Motomart: A Litigation Support Engagement
The Motomart case evolved from a litigation support
engagement. The lead author of this case was hired to analyze
the data and provide expert testimony. His report and testimony
was made available to the public (for a fee to cover
reproduction costs). A broad description of the relevant points
for the Motomart case follows.
Motomart wanted to move their retail automobile dealership,
blaming their location for declining profits and increasing
losses. They provided financial projections, using variable
costing, to show that after the relocation both Motomart and the
existing dealership would be profitable. They created these
financial projections using a database provided by the
manufacturer, which included all North American retail
automobile dealerships. Motomart was one of the observations
or retail automobile dealerships included in the database used to
create these financial projections. You’ll be examining portions
of Motomart’s historical financial data.
The relocation site was quite close to the existing dealership
(which we’ll refer to as Existing Dealer), and Existing Dealer
felt that, if the relocation was permitted, one or both of the
dealerships would fail to break even and eventually go
bankrupt, leading to poor service, or what the industry refers to
as “orphaned” owners of these automobiles.
Antitrust laws provided Existing Dealer with the means to block
the relocation requested by Motomart, but only if it could prove
that the relocation wasn’t in the best interest of the consuming
43. public. Generally, the only way to prove this is to prove that
there’s simply not enough business for both retail automobile
dealerships to break even (or generate a reasonable return on
investment, given the risks associated with the industry). Again,
the manufacturer, in support of the proposed Motomart
relocation, supplied financial projections showing that both
retail automobile dealerships would be profitable after the
relocation.
The expert witness hired to investigate the merits of the
relocation was given the Motomart data, but not the entire
database that included the Motomart data. The Motomart data
was in such poor form that it wasn’t possible to produce a
financial forecast. An alternative forecast, not included in this
case, was produced. This alternative forecast did not support the
relocation of Motomart to a site closer to Existing Dealer. The
alternative forecast showed that the market simply couldn’t
support two retail automobile dealerships. The implication was
that, as the weaker of the two dealerships, Motomart was losing
business to Existing Dealer. In conclusion, the relocation
request by Motomart was denied.
Income and Expense Data
The following tables give you information such as income
statements, semi-fixed expenses, and salaries for Motomart.
Look for unusual entries or discrepancies in their records and,
where you can, note the cause of the problems.
Table 3 summarizes financial and cost driver information
produced by Motomart, where new retail vehicles sold (NRVS)
is the cost driver. The account classification method has
resulted in three cost behavior classifications: variable, semi-
fixed, and fixed costs. Semi-fixed is the automobile industry-
specific term used for mixed costs. We’ll assume that
Motomart’s classifications of variable costs (VCs) and fixed
costs (FCs) are correct, and focus our analysis on Motomart’s
semi-fixed or mixed costs.
Table 2
SElECTED HISTORICAl INCOME STATEMENT AND
46. 2,290,867
2,164,362
2,653,620
Operating Profit/(Loss)**
263,828
112,314
-96,699
-94,345
-516,092
New Retail Vehicles Sold
1,798
1,977
1,674
1,450
1,897
Notes:
* Revenues less variable costs equal Net Variable Revenues (or
Contribution Margin, in aggregate).
** Net Variable Revenue less Total S-F Expenses less Total
Fixed Expenses equals Operating Profit/(Loss).
Table 3 provides five years of monthly data (N=60) for NRVS
and the related semi-fixed or mixed cost measures. Semifixed
costs were significant. Recall that they ranged from nearly $1.2
million for calendar and fiscal year (FY) 1984 to almost $2.2
million for FY 1988 (see Table 2).
Table 3
SEMI-FIXED (MIXED) EXPENSES FOR THE 60-MONTH
PERIOD (FY 1984 THROUGH 1988)
Mo
NRVS
Salary
Vacation
Adv/Trng
SplyTls/Lndry
1
197
67. $ 7,946
$ 158,595
60
$ 717
$ 486
$ 1,746
$ 188,040
$ 352,182
Recall the cost function applying to the high-low and regression
methods, which are provided in a variety of forms, depending
on the texts you used in your previous math, economics, or
accounting courses. Below is a brief outline of the high-low and
regression methods.
For the high-low method to work, the $H and #H and the $L and
#L measures must be from the same accounting period.
Preparing Graphs
The single cost driver and nonfinancial measure in Table 3 is
new retail vehicles sold (NRVS or X in the above cost
function). There are eight financial measures (salary; vacation;
advertising and training; supplies, tools, and laundry; freight;
vehicles; demonstrators; and floor-planning [also known in the
automobile retail industry as interest expense relating to new
car inventory]), as well as a total (aggregate measure) provided
for all eight financial measures (or the Y in the above cost
function).
Using NRVS, the only available cost-driver, use Excel to
prepare nine separate scatter plots and cost function-based trend
lines and nine separate line graphs for each of the financial
measures provided in Table 3. The images below are an example
of completed graphs for salaries.
A Scatterplot Graph for Motomart SalariesA Line Graph for
Motomart Salaries
Now examine, on a preliminary basis, the pattern or trend (or
lack thereof) for each of the “X” (NRVS) and “Y” (financial
measure) data pairs and consider the following questions:
· You’re observing these data pairs for a 60-month period (i.e.,
68. five years); are any annual or other seasonal patterns or trends
immediately apparent?
· Do the slopes of the trend lines (i.e., variable costs) make
sense?
In the case of salaries (see the graphs above), there’s no
apparent trend or pattern. It’s odd that salaries decrease as
NRVS increases—in fact, this doesn’t make any sense.
However, it’s consistent with the high-low results, which also
didn’t make sense. But remember, since this data came from
Motomart, the firm attempting to relocate, it’s real and from an
actual litigation support engagement (not a textbook problem),
so it won’t necessarily work out perfectly.
The cost equation in Table 4 shows fixed costs (FC) at
$106,866.00 and variable costs to be used to “reduce” total
costs (TC) by $110.10 per NRVS. Compare the salary figures
and coefficients (in bold type) to the scatterplot graph for
Motomart Salaries. Notice that if you extended the trend line in
Figure 4, it would hit the y-axis intercept at $106,866.00 (the
fixed cost). Also, notice that the R-squared (R-sq) measure in
Table 4 equals 4.1 percent.
Table 4
SALARY = $106,866.00 – $110.10 NRVS
Predictor
Coefficient
Std Deviation
t-statistic
p-value
Constant
106,866.00
10,793.00
9.90
0.000
NRVS
110.10
70.17
–1.57
69. 0.122
s = 25300 r-sq = 4.1%
Analysis of Variance
SOURCE
DF
SS
MS
F-statistic
p-value
Regression
1
261,795
261,795
0.10
0.754
Error
58
152,801,120
2,634,502
Total
59
153,062,912
Your math and statistics courses probably reviewed the use of
the t-statistic, overall F-statistic, and related p-values, as well
as some of the other measures presented here. Our application is
a very simple one, so we’ll focus on only the R-squared
measure. The other measures are provided in this example only
for completeness.
Because the high-low technique didn’t work, it makes sense that
the regression technique wouldn’t work well, either. Therefore,
the results for high-low and regression are consistent. The
70. advantage of the regression technique is that it mathematically
quantifies the level of the problem or difficulty with the data. In
this case, one of simple regression, the R-squared measure tells
the story. Still focusing on the salaries example in Figure 5, the
R-squared measure tells us that only 4.1 percent of the total or
mixed or semi-fixed cost is explained by NRVS. This means
that that cost equation developed from this historical data isn’t
helpful in predicting future costs, as nearly 96 percent of the
cost behavior, through use of this equation, remains
unexplained.
Requirements
The project requires five steps to be presented.
Step 1 – Provide comments on a 5-year Income Statement.
Step 2 – Discuss patterns in expense items.
Step 3 – Identify High/Low activity levels.
Step 4 – Compute cost equations.
Step 5 – Summarize your findings.
In one Word document, provide individual sections for each
Step. This Word document along with the Excel file (described
below) will be uploaded when you click on the Take Exam
button on your Student Portal to submit your project (described
under “Submitting Your Assignment” later in the instructions).
This Senior Capstone project highlights your knowledge and the
skills you have developed over the course of your education.
There is nothing “new” to be learned here.
The knowledge and skills required for this project include
English Composition, Financial Accounting, Managerial
Accounting, Business Statistics and the abilities to think
critically and to present your work in a professional manner.
If you are unsure or don’t understand something about the
project, then go back to your previous subjects to revi ew. For
example, if you don’t remember how to use the High/Low
Method, the revisit your Managerial Accounting to refresh your
memory on how to use the High/Low Method
Remember, there is nothing “new” here. Everything about this
project you should already know how to do.
71. At the beginning of the assignment, on the right-hand side under
"Optional Study Materials" select the "PPMC Excel
Spreadsheet" menu item to download the required Excel
spreadsheet.
· The Excel file provides a detailed example of what needs to be
done for one of the expenses in order to fill out the figures
required in Steps 3 & 4. You will include this Excel file as part
of your project submission along with the Word document you
create to present this project.
· There is a “60 Months” worksheet that has the 60 months of
data already entered. There is also a “Sample” worksheet that an
example of how to calculate the R-sq.
· There is a “PLOT – SALARY” worksheet that shows how the
FC, VC and R-sq figures are calculated for Salary.
· There is also a “high&low” worksheet for help with the
high/low method in Step 3.
· Complete and include the Excel spreadsheet. You will need to
create new worksheets for each of the other expenses following
the example to calculate the figures needed for Table 5.
Operating Profits and Semi-Fixed Expenses
Step 1
First, using Tables 2–4, note the pattern of operating profits (or
losses) over the five-year period. Then focus only on the semi-
fixed expenses contained in Table 2. Do any amounts appear to
be odd? (Think about whether the figures are right or wrong.
What is it about the individual numbers that is not “right”?)
Next, briefly comment on the five-year pattern or trend for
operating profit/loss measures. You should be able to respond to
this step in a few well-written sentences.
Step 2
Focus only on the detailed semi-fixed expense contained in
Table 3. Are there any unusual or odd patterns you might note
in this detailed financial data? There are 5 expenses that have
an oddity about them which doesn’t make sense. Similar to Step
1, what is it about the individual numbers that are not “right”?
There are 4 expenses that “stick out” as not being correct and
72. one that has an unusual pattern. attention. You should be able to
respond to this requirement in a few well-written sentences.
Briefly comment on only the most obvious or apparent measures
or patterns, by expense item.
Step 3
Identify the high and low measures in each column, just as you
would in preparation for the application of the high-low method
or technique. For example, in Table 3 the high measure for the
cost driver (NRVS) is 280 NRVS in month 13 and the low
measure is 31 NRVS in month 12. Repeat this process for each
of the eight separate semi-fixed expense columns and also for
the total expense column. Insert a table for Step 3 to present
your findings. The table should have three columns;
1. Expense
2. High Figure
3. Low Figure
After the high and low measures have been identified in each
column, try to match each expense column’s high and low
measure, separately, to the highs and lows identified in the
NRVS column. They won’t match. Don’t try to correct the data,
but comment on the potential for application of the high-low
technique. What happens when the high and low activity level
doesn’t match the high and low expense measure? Does this
prevent you from correctly applying the high-low technique?
Don’t overanalyze this data, because there’s a problem with it
and you don’t have sufficient information to correct it. Merely
summarize your observations and unsuccessful attempts to
match the high and low NRVS months (identified above),
separately, with each of the high and low expense measure
months. You should be able to do this in a very few well-written
sentences.
Step 4
Using the Excel file "Exam 500896 - Motomart Excel
Spreadsheet" as per the instructions found above under the
"Project Requirements", reproduce and complete the following
Table 5 and answer the four questions. The Excel file provides
73. an example of how to arrive at the figures that need to be
entered into the Table. You will create new worksheets for each
of the remaining expenses. Do the work to arrive at the figures
for each expense. Be sure to include the Excel file as part of
your submission to "backup" the data presented in the Table in
the Word document being submitted.
The Excel spreadsheet, while it will be included in your
submission for the project, will not be graded. It is supporting
documentation for what is being presented in the Word
document. Only the information that is in the Word document
will be graded.
The FC and VC should be rounded to the nearest dollar. The R-
sq is a percentage figure carried out to 2 decimal places.
Table 5
Column
Expense
FC
VC
R-sq
1
Salaries
$106,866
–$110
4.10%
2
Vacation
3
Advertising and training
4
Supplies/tools/laundry
75. “influential outliers.” As you complete Table 5, answer the
following questions:
1. What problems did you encounter?
2. Are the R-squared measures high or low?
3. Are the slopes negative or positive?
4. Are your conclusions consistent with those from the high-low
effort?
Step 5
Summarize your findings by answering the following questions:
1. Can the Motomart data be used to prepare a reliable financial
forecast? Why or why not?
2. If Motomart is included in the very large database used to
prepare the financial forecast that supports the relocation of
Motomart closer to Existing Dealer, what concerns might
present themselves with respect to the remainder of the database
used for this forecast?
3. Would you rely on this forecast?
Writing Guidelines
Refer to the “Submitting Your Work” section at the end of this
book for details on submission requirements for the Motomart
Case assignment.
Grading Criteria
Your assignment will be evaluated according to the followi ng
criteria:
Content
80 percent
Written Communication
10 percent
Format
10 percent
Criteria
Grade
Content 80 pts
· Step 1 – Provides comments on 5-year income statement
(worth 10 points)
76. · Step 2 – Discuss patterns in expense items (worth 10 points)
· Step 3 – Identify high and low activity levels (worth 10
points)
· Step 4 – Compute cost equations (worth 30 points)
· Step 5 – Summarize your findings (worth 20 points)
Written Communication 10 pts
· Answers each question in complete sentences leading to well-
structured responses to each Step listed above.
· Uses correct grammar, spelling, punctuation, and sentence
structure
· Provides clear organization by using words like first, however,
on the other hand, and so on, consequently, since,
next, and when
· Makes sure the paper contains no typographical errors
Format 10 pts The paper is double-spaced, typed in font size 12.
It includes the student’s
· Name and address
· Student number, Course title and number, and project number
Total Grade
%
Submitting Your Work
Writing Guidelines
1. Type your submission, double-spaced, in a standard print
font, size 12. Use a standard document format with 1-inch
margins. (Do not use any fancy or cursive fonts.)
2. Include the following information at the top of your paper:
a. Name and complete mailing address
b. Student number
c. Course title and number (Senior Capstone: Business, BUS
450)
d. Project number (see Format instructions)
e. Project title (Professional Development Activity, Case 1,
etc.)
77. 3. Read the assignments carefully and complete each one in the
order given.
4. Be specific. Limit your submission to the questions asked and
issues mentioned.
5. If you include quotes or ideas from textbooks or other
sources, provide a reference page in either APA or MLA style.
On this page, list books, Web sites, journals, or any other
references used in preparing the paper.
6. Proofread your work carefully. Check for correct spelling,
grammar, punctuation, and capitalization.
NOTES
Top of Form
Bottom of Form
READING ASSIGNMENT
Your project must be submitted as a Word document (.docx,
.doc)*. Your project will be individually graded by your
instructor and therefore will take up to a few weeks to grade.
Be sure that each of your files contains the following
information:
· Your name
· Your student ID number
· The exam number
· Your email address
To submit your graded project, follow these steps:
· Log in to your student portal.
· Click on Take Exam next to the lesson you’re working on.
· Find the exam number for your project at the top of the Project
Upload page.
· Follow the instructions provided to complete your exam.
78. Be sure to keep a backup copy of any files you submit to the
school!
This case is based on real financial data provided by a retail
automobile dealership (Motomart) seeking to relocate closer to
an existing retail dealership. You’ll examine the mixed cost
data from Motomart and apply both high-low and regression to
attempt to separate mixed costs into their fixed and variable
components for break-even and contribution margin
computations. You’ll find that the data is flawed because
Motomart was a single observation in a larger database. Don’t
attempt to correct the data (e.g., remove outliers or influential
outliers). You’ll be producing a scatterplot and apply hi gh-low
and regression methods to the extent practicable and writing a
summary report of the findings.
Motomart operates a retail automobile dealership. The
manufacturer of Motomart products, like all automobile
manufacturers, produces forecasts. It has long been an industry
practice to use variable costing-based/break-even analyses as
the foundation for these forecasts, to examine their cost
behavior as it relates to the new retail vehicles sold
(NRVS) cost driver. In preparing this financial information, a
common financial statement format and accounting procedures
manual are provided to each retail auto dealership. The
dealership is required to produce monthly financial statements
using the guidelines provided by this common accounting
procedures manual, and then furnish these financial statements
to the manufacturer. General Motors, Ford, Nissan, and all other
automobile manufacturers employ similar procedures manuals.
The use of a common format facilitates the development of
composite financial statements that can be used to estimate
costs and produce financial forecasts for future or proposed
retail dealership sites (Cataldo and Kruck 1998). Zimmerman
(2003) suggests that as many as 77 percents of manufacturers
divide costs into variable and fixed compone nts and that
managers arrive at these estimates by classifying individual
accounts as being primarily fixed or primarily variable (67).
79. For this case, you’ll examine mixed costs as defined by the
manufacturer. Using the scatterplot, high-low, and regression
methods, separate these mixed costs into their fixed and
variable components. The data is problematic, and a clear
solution won’t exist. Don’t attempt to correct the data by
removing outliers, but make observations based on any patterns
you observe. The case will expose you to actual data and
require you to summarize your findings, including any
conclusions you’re able to reach and why the financial data
makes it impossible to separate the mixed costs into their fixed
and variable components.
Motomart: A Litigation Support Engagement
The Motomart case evolved from a litigation support
engagement. The lead author of this case was hired to analyze
the data and provide expert testimony. His report and testimony
was made available to the public (for a fee to cover
reproduction costs). A broad description of the relevant points
for the Motomart case follows.
Motomart wanted to move their retail automobile dealership,
blaming their location for declining profits and increasing
losses. They provided financial projections, using variable
costing, to show that after the relocation both Motomart and the
existing dealership would be profitable. They created these
financial projections using a database provided by the
manufacturer, which included all North American retail
automobile dealerships. Motomart was one of the observations
or retail automobile dealerships included in the database used to
create these financial projections. You’ll be examining portions
of Motomart’s historical financial data.
The relocation site was quite close to the existing dealership
(which we’ll refer to as Existing Dealer), and Existing Dealer
felt that, if the relocation was permitted, one or both of the
dealerships would fail to break even and eventually go
bankrupt, leading to poor service, or what the industry refers to
as “orphaned” owners of these automobiles.
Antitrust laws provided Existing Dealer with the means to block
80. the relocation requested by Motomart, but only if it could prove
that the relocation wasn’t in the best interest of the consuming
public. Generally, the only way to prove this is to prove that
there’s simply not enough business for both retail automobile
dealerships to break even (or generate a reasonable return on
investment, given the risks associated with the industry). Again,
the manufacturer, in support of the proposed Motomart
relocation, supplied financial projections showing that both
retail automobile dealerships would be profitable after the
relocation.
The expert witness hired to investigate the merits of the
relocation was given the Motomart data, but not the entire
database that included the Motomart data. The Motomart data
was in such poor form that it wasn’t possible to produce a
financial forecast. An alternative forecast, not included in this
case, was produced. This alternative forecast did not support the
relocation of Motomart to a site closer to Existing Dealer. The
alternative forecast showed that the market simply couldn’t
support two retail automobile dealerships. The implication was
that, as the weaker of the two dealerships, Motomart was losing
business to Existing Dealer. In conclusion, the relocation
request by Motomart was denied.
Income and Expense Data
The following tables give you information such as income
statements, semi-fixed expenses, and salaries for Motomart.
Look for unusual entries or discrepancies in their records and,
where you can, note the cause of the problems.
Table 3 summarizes financial and cost driver information
produced by Motomart, where new retail vehicles sold (NRVS)
is the cost driver. The account classification method has
resulted in three cost behavior classifications: variable, semi -
fixed, and fixed costs. Semi-fixed is the automobile industry-
specific term used for mixed costs. We’ll assume that
Motomart’s classifications of variable costs (VCs) and fixed
costs (FCs) are correct, and focus our analysis on Motomart’s
semi-fixed or mixed costs.
81. Table 2
SElECTED HISTORICAl INCOME STATEMENT AND
RElATED MEASURES
1984
1985
1986
1987
1988
Net Variable Revenues*
2,885,969
3,828,255
4,086,667
3,940,799
4,298,748
Semi-Fixed (S-F) Expenses:
Salaries
613,006
968,789
1,211,464
1,289,758
1,360,489
Vacation
600
26,705
19,468
19,059
18,268
Advertising & Training
210,226
288,347
281,219
309,608
371,314
Supplies/Tools/Laundry
31,473
83. 1,449,208
2,050,172
2,290,867
2,164,362
2,653,620
Operating Profit/(Loss)**
263,828
112,314
-96,699
-94,345
-516,092
New Retail Vehicles Sold
1,798
1,977
1,674
1,450
1,897
Notes:
* Revenues less variable costs equal Net Variable Revenues (or
Contribution Margin, in aggregate).
** Net Variable Revenue less Total S-F Expenses less Total
Fixed Expenses equals Operating Profit/(Loss).
Table 3 provides five years of monthly data (N=60) for NRVS
and the related semi-fixed or mixed cost measures. Semifixed
costs were significant. Recall that they ranged from nearly $1.2
million for calendar and fiscal year (FY) 1984 to almost $2.2
million for FY 1988 (see Table 2).
Table 3
SEMI-FIXED (MIXED) EXPENSES FOR THE 60-MONTH
PERIOD (FY 1984 THROUGH 1988)
Mo
NRVS
Salary
Vacation
Adv/Trng
SplyTls/Lndry
104. $ 1,141
$ (3,513)
$ 7,946
$ 158,595
60
$ 717
$ 486
$ 1,746
$ 188,040
$ 352,182
Recall the cost function applying to the high-low and regression
methods, which are provided in a variety of forms, depending
on the texts you used in your previous math, economics, or
accounting courses. Below is a brief outline of the high-low and
regression methods.
For the high-low method to work, the $H and #H and the $L and
#L measures must be from the same accounting period.
Preparing Graphs
The single cost driver and nonfinancial measure in Table 3 is
new retail vehicles sold (NRVS or X in the above cost
function). There are eight financial measures (salary; vacation;
advertising and training; supplies, tools, and laundry; freight;
vehicles; demonstrators; and floor-planning [also known in the
automobile retail industry as interest expense relating to new
car inventory]), as well as a total (aggregate measure) provided
for all eight financial measures (or the Y in the above cost
function).
Using NRVS, the only available cost-driver, use Excel to
prepare nine separate scatter plots and cost function-based trend
lines and nine separate line graphs for each of the financial
measures provided in Table 3. The images below are an example
of completed graphs for salaries.
A Scatterplot Graph for Motomart SalariesA Line Graph for
Motomart Salaries
Now examine, on a preliminary basis, the pattern or trend (or
lack thereof) for each of the “X” (NRVS) and “Y” (financial
105. measure) data pairs and consider the following questions:
· You’re observing these data pairs for a 60-month period (i.e.,
five years); are any annual or other seasonal patterns or trends
immediately apparent?
· Do the slopes of the trend lines (i.e., variable costs) make
sense?
In the case of salaries (see the graphs above), there’s no
apparent trend or pattern. It’s odd that salaries decrease as
NRVS increases—in fact, this doesn’t make any sense.
However, it’s consistent with the high-low results, which also
didn’t make sense. But remember, since this data came from
Motomart, the firm attempting to relocate, it’s real and from an
actual litigation support engagement (not a textbook problem),
so it won’t necessarily work out perfectly.
The cost equation in Table 4 shows fixed costs (FC) at
$106,866.00 and variable costs to be used to “reduce” total
costs (TC) by $110.10 per NRVS. Compare the salary figures
and coefficients (in bold type) to the scatterplot graph for
Motomart Salaries. Notice that if you extended the trend line in
Figure 4, it would hit the y-axis intercept at $106,866.00 (the
fixed cost). Also, notice that the R-squared (R-sq) measure in
Table 4 equals 4.1 percent.
Table 4
SALARY = $106,866.00 – $110.10 NRVS
Predictor
Coefficient
Std Deviation
t-statistic
p-value
Constant
106,866.00
10,793.00
9.90
0.000
NRVS
110.10
106. 70.17
–1.57
0.122
s = 25300 r-sq = 4.1%
Analysis of Variance
SOURCE
DF
SS
MS
F-statistic
p-value
Regression
1
261,795
261,795
0.10
0.754
Error
58
152,801,120
2,634,502
Total
59
153,062,912
Your math and statistics courses probably reviewed the use of
the t-statistic, overall F-statistic, and related p-values, as well
as some of the other measures presented here. Our application is
a very simple one, so we’ll focus on only the R-squared
measure. The other measures are provided in this example only
for completeness.
Because the high-low technique didn’t work, it makes sense that
107. the regression technique wouldn’t work well, either. Therefore,
the results for high-low and regression are consistent. The
advantage of the regression technique is that it mathematically
quantifies the level of the problem or difficulty with the data. In
this case, one of simple regression, the R-squared measure tells
the story. Still focusing on the salaries example in Figure 5, the
R-squared measure tells us that only 4.1 percent of the total or
mixed or semi-fixed cost is explained by NRVS. This means
that that cost equation developed from this historical data isn’t
helpful in predicting future costs, as nearly 96 percent of the
cost behavior, through use of this equation, remains
unexplained.
Requirements
The project requires five steps to be presented.
Step 1 – Provide comments on a 5-year Income Statement.
Step 2 – Discuss patterns in expense items.
Step 3 – Identify High/Low activity levels.
Step 4 – Compute cost equations.
Step 5 – Summarize your findings.
In one Word document, provide individual sections for each
Step. This Word document along with the Excel file (described
below) will be uploaded when you click on the Take Exam
button on your Student Portal to submit your project (described
under “Submitting Your Assignment” later in the instructions).
This Senior Capstone project highlights your knowledge and the
skills you have developed over the course of your education.
There is nothing “new” to be learned here.
The knowledge and skills required for this project include
English Composition, Financial Accounting, Managerial
Accounting, Business Statistics and the abilities to think
critically and to present your work in a professional manner.
If you are unsure or don’t understand something about the
project, then go back to your previous subjects to review. For
example, if you don’t remember how to use the High/Low
Method, the revisit your Managerial Accounting to refresh your
memory on how to use the High/Low Method
108. Remember, there is nothing “new” here. Everything about this
project you should already know how to do.
At the beginning of the assignment, on the right-hand side under
"Optional Study Materials" select the "PPMC Excel
Spreadsheet" menu item to download the required Excel
spreadsheet.
· The Excel file provides a detailed example of what needs to be
done for one of the expenses in order to fill out the figures
required in Steps 3 & 4. You will include this Excel file as part
of your project submission along with the Word document you
create to present this project.
· There is a “60 Months” worksheet that has the 60 months of
data already entered. There is also a “Sample” worksheet that an
example of how to calculate the R-sq.
· There is a “PLOT – SALARY” worksheet that shows how the
FC, VC and R-sq figures are calculated for Salary.
· There is also a “high&low” worksheet for help with the
high/low method in Step 3.
· Complete and include the Excel spreadsheet. You will need to
create new worksheets for each of the other expenses following
the example to calculate the figures needed for Table 5.
Operating Profits and Semi-Fixed Expenses
Step 1
First, using Tables 2–4, note the pattern of operating profits (or
losses) over the five-year period. Then focus only on the semi-
fixed expenses contained in Table 2. Do any amounts appear to
be odd? (Think about whether the figures are right or wrong.
What is it about the individual numbers that is not “right”?)
Next, briefly comment on the five-year pattern or trend for
operating profit/loss measures. You should be able to respond to
this step in a few well-written sentences.
Step 2
Focus only on the detailed semi-fixed expense contained in
Table 3. Are there any unusual or odd patterns you might note
in this detailed financial data? There are 5 expenses that have
an oddity about them which doesn’t make sense. Similar to Step
109. 1, what is it about the individual numbers that are not “right”?
There are 4 expenses that “stick out” as not being correct and
one that has an unusual pattern. attention. You should be able to
respond to this requirement in a few well-written sentences.
Briefly comment on only the most obvious or apparent measures
or patterns, by expense item.
Step 3
Identify the high and low measures in each column, just as you
would in preparation for the application of the high-low method
or technique. For example, in Table 3 the high measure for the
cost driver (NRVS) is 280 NRVS in month 13 and the low
measure is 31 NRVS in month 12. Repeat this process for each
of the eight separate semi-fixed expense columns and also for
the total expense column. Insert a table for Step 3 to present
your findings. The table should have three columns;
1. Expense
2. High Figure
3. Low Figure
After the high and low measures have been identified in each
column, try to match each expense column’s high and low
measure, separately, to the highs and lows identified in the
NRVS column. They won’t match. Don’t try to correct the data,
but comment on the potential for application of the high-low
technique. What happens when the high and low activity level
doesn’t match the high and low expense measure? Does this
prevent you from correctly applying the high-low technique?
Don’t overanalyze this data, because there’s a problem with it
and you don’t have sufficient information to correct it. Merely
summarize your observations and unsuccessful attempts to
match the high and low NRVS months (identified above),
separately, with each of the high and low expense measure
months. You should be able to do this in a very few well-written
sentences.
Step 4
Using the Excel file "Exam 500896 - Motomart Excel
Spreadsheet" as per the instructions found above under the
110. "Project Requirements", reproduce and complete the following
Table 5 and answer the four questions. The Excel file provides
an example of how to arrive at the figures that need to be
entered into the Table. You will create new worksheets for each
of the remaining expenses. Do the work to arrive at the figures
for each expense. Be sure to include the Excel file as part of
your submission to "backup" the data presented in the Table in
the Word document being submitted.
The Excel spreadsheet, while it will be included in your
submission for the project, will not be graded. It is supporting
documentation for what is being presented in the Word
document. Only the information that is in the Word document
will be graded.
The FC and VC should be rounded to the nearest dollar. The R-
sq is a percentage figure carried out to 2 decimal places.
Table 5
Column
Expense
FC
VC
R-sq
1
Salaries
$106,866
–$110
4.10%
2
Vacation
3
Advertising and training
112. the single measure of “goodness of fit.” Don’t attempt to
improve your results with the elimination of “outliers” or
“influential outliers.” As you complete Table 5, answer the
following questions:
1. What problems did you encounter?
2. Are the R-squared measures high or low?
3. Are the slopes negative or positive?
4. Are your conclusions consistent with those from the high-low
effort?
Step 5
Summarize your findings by answering the following questions:
1. Can the Motomart data be used to prepare a reliable financial
forecast? Why or why not?
2. If Motomart is included in the very large database used to
prepare the financial forecast that supports the relocation of
Motomart closer to Existing Dealer, what concerns might
present themselves with respect to the remainder of the database
used for this forecast?
3. Would you rely on this forecast?
Writing Guidelines
Refer to the “Submitting Your Work” section at the end of this
book for details on submission requirements for the Motomart
Case assignment.
Grading Criteria
Your assignment will be evaluated according to the following
criteria:
Content
80 percent
Written Communication
10 percent
Format
10 percent
Criteria
Grade
Content 80 pts
113. · Step 1 – Provides comments on 5-year income statement
(worth 10 points)
· Step 2 – Discuss patterns in expense items (worth 10 points)
· Step 3 – Identify high and low activity levels (worth 10
points)
· Step 4 – Compute cost equations (worth 30 points)
· Step 5 – Summarize your findings (worth 20 points)
Written Communication 10 pts
· Answers each question in complete sentences leading to well -
structured responses to each Step listed above.
· Uses correct grammar, spelling, punctuation, and sentence
structure
· Provides clear organization by using words like first, however,
on the other hand, and so on, consequently, since,
next, and when
· Makes sure the paper contains no typographical errors
Format 10 pts The paper is double-spaced, typed in font size 12.
It includes the student’s
· Name and address
· Student number, Course title and number, and project number
Total Grade
%
Submitting Your Work
Writing Guidelines
1. Type your submission, double-spaced, in a standard print
font, size 12. Use a standard document format with 1-inch
margins. (Do not use any fancy or cursive fonts.)
2. Include the following information at the top of your paper:
a. Name and complete mailing address
b. Student number
c. Course title and number (Senior Capstone: Business, BUS
450)
d. Project number (see Format instructions)
114. e. Project title (Professional Development Activity, Case 1,
etc.)
3. Read the assignments carefully and complete each one in the
order given.
4. Be specific. Limit your submission to the questions asked and
issues mentioned.
5. If you include quotes or ideas from textbooks or other
sources, provide a reference page in either APA or MLA style.
On this page, list books, Web sites, journals, or any other
references used in preparing the paper.
6. Proofread your work carefully. Check for correct spelling,
grammar, punctuation, and capitalization.
NOTES
Top of Form
Bottom of Form
Plot-SalaryMONTHNRVS (X)SALARY (Y)XYX squaredY
squaredVACATIONADV/TRNGSPLY/LNDRYFREIGHTVEHIC
LESDEMO'SFLOOR-
PLANTOTALNRVS249119719752,95152,95110,431,34738,809
2,803,808,401-
022,5611,1183822,0521,881(78,173)2,814,334,280SALARIES8
2,516 A-fixed
cost213313347,05447,0546,258,18217,6892,214,078,916-
019,0403,5734091,40569528,4562,220,502,473VC/UNIT331.39
B-variable
cost313213255,37255,3727,309,10417,4243,066,058,384-
014,3731,3887421,38046934,4233,073,548,431TOTAL-
HIGH35,217.92414114146,11446,1146,502,07419,8812,126,500
,996- 015,0222,8946752,0571255,6972,133,141,649TOTAL-