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ACC 601 Managerial Accounting
Group Case 3 (160 points)
Instructions:
1.
As a group, complete the following activities in good
form. Read the instructions for each question carefully. Provide
all supporting calculations to show how you arrived at your
numbers and to demonstrate your understanding of the concepts
in each question.
2.
Add only the names of group members who participated
in the completion of this assignment.
3.
Submit only one copy of your completed work via
Moodle. Do not send it to me by email.
4.
Due: No later than the last day of Module 7. Please note
that your professor has the right to change the due date of this
assignment.
Part A: Capital Budgeting Decisions
Chee Company has gathered the following data on a proposed
investment project:
Investment required in equipment
$320,000
Annual cash inflows
Year 1: $50,000
Year 2: 50,000
Year 3: 60,000
Year 4: 40,000
Year 5: 65,000
Year 6: 50,000
Year 7: 70,000
Year 8: 65,000
Salvage value
$60,000
Life of the investment
8 years
Required rate of return
10%
Assets will be depreciated using straight
line depreciation method
Required:
1. Show all calculations in good form. Answers without
supporting calculations will earn zero marks.
2. Calculate the annual incremental net income for all the eight
(8) years.
3. Using the net present value and the internal rate of return
methods, is this a good investment?
Part B: Master Budget
You have just been hired as a new management trainee by
Earrings Unlimited, a distributor of earrings to various retail
outlets located in shopping malls across the country. In the past,
the company has done very little in the way of budgeting and at
certain times of the year has experienced a shortage of cash.
Since you are well trained in budgeting, you have decided to
prepare a master budget for the upcoming second quarter. To
this end, you have worked with accounting and other areas to
gather the information assembled below.
The company sells many styles of earrings, but all are sold for
the same price—$10 per pair. Actual sales of earrings for the
last three months and budgeted sales for the next six months
follow (in pairs of earrings):
January (actual)
30,000
June (budget)
45,000
February (actual)
20,000
July (budget)
40,000
March (actual)
50,000
August (budget)
30,000
April (budget)
70,000
September (budget)
20,000
May (budget)
95,000
Sufficient inventory should be on hand at the end of each month
to supply 40% of the earrings sold in the following month.
Suppliers are paid $3 for a pair of earrings. 40% of a month’s
purchases is paid for in the month of purchase; the other 60% is
paid for in the following month. All sales are on credit. Only
30% of a month’s sales are collected in the month of sale. An
additional 60% is collected in the following month, and the
remaining 10% is collected in the second month following sale.
Monthly operating expenses for the company are given below:
Variable:
Sales commissions
5% of sales
Fixed:
Advertising
$
190,000
Rent
$
20,000
Salaries
$
100,000
Utilities
$
8,000
Insurance
$
3,000
Depreciation
$
14,000
Insurance is paid on an annual basis, in November of each year.
At the end of June, the company received $4,000 deposit for
July sales. Sales in advance is a liability.
The company plans to purchase $20,000 in new equipment
during May and $60,000 in new equipment during June; both
purchases will be for cash. The company declares dividends of
$15,000 each quarter, payable in the first month of the
following quarter.
The company’s balance sheet as of March 31 is given below:
Assets
Cash
$
74,000
Accounts receivable ($20,000 February sales; $350,000 March
sales)
370,000
Inventory
80,000
Prepaid insurance
21,000
Property and equipment (net)
950,000
Total assets
$
1,495,000
Liabilities and Stockholders’ Equity
Accounts payable
$
100,000
Dividends payable
15,000
Common stock
800,000
Retained earnings
580,000
Total liabilities and stockholders’ equity
$
1,495,000
The company maintains a minimum cash balance of $50,000.
All borrowing is done at the beginning of a month; any
repayments are made at the end of a month.
The company has an agreement with a bank that allows the
company to borrow in increments of $1,000 at the beginning of
each month. The interest rate on these loans is 1% per month
and for simplicity we will assume that interest is not
compounded. At the end of the quarter, the company would pay
the bank all of the accumulated interest on the loan and as much
of the loan as possible (in increments of $1,000), while still
retaining at least $50,000 in cash.
Required:
Prepare a master budget for the three-month period ending June
30. Include the following detailed schedules: Use the
formats/tables below. Any other format is unacceptable. Below
each table, show how you arrived at the numbers in your tables.
Lack of detailed calculations will reduce your marks even if the
answers are correct.
1. a. A sales budget, by month and in total.
Sales Budget
April
May
June
Quarter
Budgeted unit sales
70,000
95,000
45,000
210,000
Selling price per unit
10
10
10
10
Total sales
700,000
950,000
450,000
2,100,000
b. A schedule of expected cash collections, by month and in
total.
Earrings Unlimited
Schedule of Expected Cash Collections
April
May
June
Quarter
February sales
(10% of sales) 20,000
20,000
March sales
(60% of sales) 300,000
(10% of sales) 50,000
350,000
April sales
(30% of sales) 210,000
(60% of sales) 420,000
(10% of sales) 65,000
695,000
May sales
(30% of sales) 285,000
(60% of sales) 570,000
855,000
June sales
(30% of sales) 135,000
135,000
Total cash collections
530,000
755,000
770,000
2,055,000
c. A merchandise purchases budget in units and in dollars.
Show the budget by month and in total.
Earrings Unlimited
Merchandise Purchases Budget
April
May
June
Quarter
Budgeted unit sales
70,000
95,000
45,000
210,000
Add: Desired ending merchandise inventory
(40% of following month) 38,000
(40% of following month) 18,000
(40% of following month) 16,000
16,000
Total needs
108,000
113,000
61,000
226,000
Less: Beginning merchandise inventory
28,000
38,000
18,000
28,000
Required purchases
80,000
75,000
43,000
198,000
Unit cost
3
3
3
3
Required dollar purchases
240,000
225,000
129,000
594,000
d. A schedule of expected cash disbursements for merchandise
purchases, by month and in total.
Earrings Unlimited
Budgeted Cash Disbursements for Merchandise Purchases
April
May
June
Quarter
Accounts payable
100,000
100,000
April purchases
160,000
160,000
320,000
May purchases
150,000
150,000
300,000
June purchases
86,000
86,000
Total cash payments
260,000
310,000
236,000
806,000
2. A cash budgets. Show the budget by month and in total.
Determine any borrowing that would be needed to maintain the
minimum cash balance of $50,000.
Earrings Unlimited
Cash Budget
For the Three Months Ending June 30
April
May
June Quarter
Quarter
Beginning cash balance
$74,000
Add collections from customers
1,996,000
Total cash available
2,070,000
Less cash disbursements:
Merchandise purchases
820,000
Advertising
600,000
Rent
54,000
Salaries
318,000
Commissions
86,000
Utilities
21,000
Equipment purchases
56,000
Dividends paid
15,000
Total cash disbursements
1,970,000
Excess (deficiency) of cash available over disbursements
100,000
Financing:
Borrowings
180,000
Repayments
(180,000)
Interest
(5,300)
Total financing
(5,300)
Ending cash balance
$94,700
·
Required 1D
3. A budgeted income statement for the three-month period
ending June 30. Use the contribution approach.
Earrings Unlimited
Budgeted Income Statement
For the Three Months Ended June 30
Sales
Variable expenses:
Cost of goods sold
Commissions
Contribution margin
Fixed expenses:
Advertising
Rent
Salaries
Utilities
Insurance
Depreciation
Net operating income
Interest expense
Net income
4. A budgeted balance sheet as of June 30.
Earrings Unlimited
Budgeted Balance Sheet
June 30
Assets
Cash
Accounts receivable
Inventory
Prepaid insurance
Property and equipment, net
Total assets
Liabilities and Stockholders’ Equity
Accounts payable
Dividends payable
Common stock
Retained earnings
Total liabilities and stockholders’ equity
Required 3
Part C: Variance Analysis for Decision Making
Bronfenbrenner Co. uses a standard cost system for its single
product in which variable overhead is applied on the basis of
direct labor hours. The following information is given:
Standard costs per unit:
Raw materials (2 grams at $16 per gram)
Direct labor (1 hour at $10 per hour)
Variable overhead (1 hours at $2.5 per hour)
Actual experience for current year:
Units produced
30,000 units
Purchases of raw materials (20,000 grams at $19 per gram)
Raw materials used
35,000 grams
Direct labor (18,000 hours at $10 per hour)
Variable overhead cost incurred
$50,000
Required:
1. Show all calculations in good form. Answers without
supporting calculations will earn zero marks.
2. Compute the following variances for raw materials, direct
labor, and variable overhead, assuming that the price variance
for materials is recognized at point of purchase:
a. Direct materials price variance.
b. Direct materials quantity variance.
c. Direct labor rate variance.
d. Direct labor efficiency variance.
e. Variable overhead spending variance.
f. Variable overhead efficiency variance.
g. As a manager, why is variance analysis important?
Part D: Evaluation of Decentralized Organizations
The Clipper Corporation had net operating income of $340,000
and average operating assets of $1,700,000. The corporation
requires a return on investment of 20%.
Required:
Show all calculations in good form. Answers without supporting
calculations will earn zero marks.
a. Calculate the company's return on investment (ROI) and
residual income (RI).
b. Clipper Corporation is considering an investment of $80,000
in a project that will generate annual net operating income of
$15,000. Would it be in the best interests of the company to
make this investment?
c. Clipper Corporation is considering an investment of $80,000
in a project that will generate annual net operating income of
$15,000. If the division planning to make the investment
currently has a return on investment of 18% and its manager is
evaluated based on the division's ROI, will the division manager
be inclined to request funds to make this investment?
d. Clipper Corporation is considering an investment of $80,000
in a project that will generate annual net operating income of
$15,000. If the division planning to make the investment
currently has a residual income of $40,000 and its manager is
evaluated based on the division's residual income, will the
division manager be inclined to request funds to make this
investment?
NURSING SAMPLE COVER LETTER
Student Development & Career Services
Resurrection University
Sample Cover Letter
1431 N. Claremont Ave. ● Chicago, IL 60622 ● 773-252-5133
● [email protected]
April 30, 2019
Dear Mr. Employer,
I am writing to express my interest in the Staff Nurse I position
in Community
Health at Xavier Community Services. My clinical experience
in a variety of settings
and my Bachelor of Science in Nursing make me an excellent
candidate for your
program.
Through my education at Resurrection University, I have been
taught to focus on
various aspects of individual healthcare, including patient care,
monitoring disease
progression, dispensing medication, and administering
assessments. I became
enthusiastic about working in Community Health during my
clinical rotation, where
I was able to see how nursing could integrate both technical and
nurturing skills in
order to effectively treat patients.
Even after my rotation, I continued working with this
population during my role
transition as a senior student nurse. I spent forty hours a week
practicing
foundational nursing skills and techniques, such as
prioritization of care and
communication, as well as compassion for patients and their
families.
Through these experiences, I have learned to be a present
listener who is patient,
empathetic, cooperative, nurturing and able to communicate
effectively with
patients and peers as well as other healthcare professionals.
I am interested in this position, not only because I want to work
in this setting, but
because I know I would make a great addition to Xavier
Community Services. I
would be honored to have the opportunity to become a part of
your team and
contribute my skills to your organization and patients. You
may feel free to contact
me at [email protected] or by phone at (773) 252.5133. Thank
you for
your consideration and time in reviewing my application.
Sincerely,
Sample Cover Letter
Commented [WE1]: Header format should be consistent
with your resume.
Commented [WE2]: Use business format including date,
specific addressee, and block paragraphs. Do not use bullet
points in cover letters.
Commented [WE3]: State specific addressee in salutation,
even if it means researching who will be reviewing the job
applications.
Commented [WE4]: State the position for which you are
applying. It is also beneficial to state any associated
requisition or job numbers, and where you saw the job
posted.
Commented [WE5]: Be specific in discussing experience,
degree and what makes you a good candidate. Include
relevant skills learned in school and what attracts you to the
position, experiences and goals.
Commented [WE6]: State how these experiences are
relevant to the position to which you are seeking and what
attracts you to the position.
Commented [WE7]: Elaborate on experiences and goals.
Commented [WE8]: Reiterate your interests, again being
specific. Be sure to thank them for their consideration and
time in reviewing your application. Add a closing statement,
such as you look forward to hearing from them and provide
contact information.
mailto:[email protected]
10/9/22, 12:43 AM Week 5: Assignment 5 (Resume and Cover
Letter) - NUR4640-03:Leadership & Management in Nursing
(2022 Fall Term 1)-15269 - Resurrection University
https://oakpoint.brightspace.com/d2l/lms/dropbox/user/folder_s
ubmit_files.d2l?db=42620&grpid=0&isprv=&bp=0&ou=18645
1/6
Resume and Cover Letter Grading Rubric
Course: NUR4640-03:Leadership & Management in Nursing
(2022 Fall Term 1)-15269
Resume Grading Rubric
and Criteria
Exemplary Satisfactory Unsatisfactory Criterion Score
Opening/Intro / 55 points
Includes name, address,
telephone, professional
email address. ALL
page(s) must have
header with name and
page number.
3 points
Missing 1 - 2 of the
requirements
0 points
Missing 3 or more of
requirements
Criteria Exemplary Satisfactory Unsatisfactory Criterion Score
Summary of
Qualifications
/ 1010 points
Summary of
Qualifications are
focused, targeted, and
concise. Uses action verbs
in the same tense.
5 points
Missing 1 -2 requirements
0 points
Missing 3 or more
requirements
Criteria Exemplary Satifactory Unsatisfactory Criterion Score
Education / 55 points 3 points 0 points
10/9/22, 12:43 AM Week 5: Assignment 5 (Resume and Cover
Letter) - NUR4640-03:Leadership & Management in Nursing
(2022 Fall Term 1)-15269 - Resurrection University
https://oakpoint.brightspace.com/d2l/lms/dropbox/user/folder_s
ubmit_files.d2l?db=42620&grpid=0&isprv=&bp=0&ou=18645
2/6
Criteria Exemplary Satifactory Unsatisfactory Criterion Score
Education section
emphasizes relevant cours
ework, GPA if better than
average (3.5 or greater),
what degree student
expects to attain.
Education is
put before employment
unless student has
extensive career-related
job experience (LPN,
EMT, MA).
Education is listed
in reverse chronological
order and all
institution/degrees earned
are listed.
Do not include
High School
experience after
attaining a college
degree.
Do not include
colleges or
universities that
Missing 1 - 2
requirements
Missing 3 or more
requirements
10/9/22, 12:43 AM Week 5: Assignment 5 (Resume and Cover
Letter) - NUR4640-03:Leadership & Management in Nursing
(2022 Fall Term 1)-15269 - Resurrection University
https://oakpoint.brightspace.com/d2l/lms/dropbox/user/folder_s
ubmit_files.d2l?db=42620&grpid=0&isprv=&bp=0&ou=18645
3/6
Criteria Exemplary Satifactory Unsatisfactory Criterion Score
were
attended but no
degree was
awarded.
Criteria Exemplary Satisfactory Unsatisfactory Criterion Score
Work / 1010 points
Work experience includes
job titles, locations, list of
duties/
accomplishments. Experie
nce listed in resume
parallels position
applicant is applying for.
5 points
Missing 1 - 2
requirements
0 points
Missing 3 or more
requirements
Criteria Exemplary Satisfactory Unsatisfactory Criterion Score
Format / 1010 points
1 OR 2 full
pages; Balanced, white
space, good font choices,
pleasing design; Single
spaced; 1-inch margins.
5 points
Missing 1 - 2
requirements
0 points
Missing 3 or more
requirements
Criteria Exemplary Satisfactory Unsatisfactory Criterion Score
10/9/22, 12:43 AM Week 5: Assignment 5 (Resume and Cover
Letter) - NUR4640-03:Leadership & Management in Nursing
(2022 Fall Term 1)-15269 - Resurrection University
https://oakpoint.brightspace.com/d2l/lms/dropbox/user/folder_s
ubmit_files.d2l?db=42620&grpid=0&isprv=&bp=0&ou=18645
4/6
Criteria Exemplary Satisfactory Unsatisfactory Criterion Score
Grammar and
punctuation
/ 1010 points
Begin each bullet with an
action verb. Approved
action word list
provided. No spelling
errors. No grammatical
errors. Word processing
mechanics are perfect.
5 points
Missing 1 - 2
requirements
0 points
Missing more than 3
requirements
Cover Letter Grading
Rubric
Exemplary Satisfactory Unsatisfactory Criterion Score
Opening Paragraph / 55 points
The opening paragraph
arouses the interest of the
employer by stating why you
are interested in the
organization, names the
specific job applied for and
states where you heard of the
job.
3 points
The opening paragraph is
poorly written or is
missing one of the
required elements: why
you are interested,
specific job, where you
heard of the job.
0 points
The opening paragraph is
poorly written and is
missing more than one of
the required elements.
10/9/22, 12:43 AM Week 5: Assignment 5 (Resume and Cover
Letter) - NUR4640-03:Leadership & Management in Nursing
(2022 Fall Term 1)-15269 - Resurrection University
https://oakpoint.brightspace.com/d2l/lms/dropbox/user/folder_s
ubmit_files.d2l?db=42620&grpid=0&isprv=&bp=0&ou=18645
5/6
Cover Letter Grading
Rubric
Exemplary Satisfactory Unsatisfactory Criterion Score
Middle Paragraph / 5
Closing Paragraph / 5
Layout / 5
5 points
The middle paragraph is
neatly written and creates
a desire for an employer
to know more about you.
It emphasizes the resume
pointing out achievements
and qualifications that
meet the job description.
3 points
The middle paragraph is
poorly written and does
not create a desire for the
employer to know more
about the student or does
not emphasize the resume.
0 points
The middle paragraph is
poorly written and does
not make the employer
want to meet the
individual, emphasize the
resume and does not refer
to the job description.
5 points
The closing paragraph paves
the way for an interview by
offering to call in the future.
3 points
The closing paragraph
leaves the employer
unsure if the applicant
would like an interview or
does not offer to call in
the future.
0 points
There is no closing
paragraph.
5 points
The letter is organized. It
includes all the required
components in the correct
order with the correct spacing
between elements.
3 points
The letter is missing 1
of the required
elements or the
components are not in
the correct order.
0 points
There is no apparent
organization to the letter.
It is missing multiple
components.
10/9/22, 12:43 AM Week 5: Assignment 5 (Resume and Cover
Letter) - NUR4640-03:Leadership & Management in Nursing
(2022 Fall Term 1)-15269 - Resurrection University
https://oakpoint.brightspace.com/d2l/lms/dropbox/user/folder_s
ubmit_files.d2l?db=42620&grpid=0&isprv=&bp=0&ou=18645
6/6
Total / 80
Overall Score
Cover Letter Grading
Rubric
Exemplary Satisfactory Unsatisfactory Criterion Score
Writing Skills / 5
Format / 5
5 points
Sentences are fluent and
effective. Very few errors in
mechanics, punctuation, and
word usage.
3 points
Sentences are usually
controlled. There are
minor errors in
mechanics, punctuation,
and word usage.
0 points
Sentences are generally
adequate. There are
lapses in mechanics,
punctuation, and
grammar.
5 points
Letter meets 100% of the
formatting requirements.
3 points
Letter does not include
one of the formatting
requirements.
0 points
The letter is missing more
than one of the formatting
requirements.
Level 3
80 points minimum
Level 2
26 points minimum
Level 1
0 points minimum
Daniella Bintu
Mobile: 872-435-6635
Email: [email protected]
PROFESSIONAL SUMMARY
· Highly motivated and dedicated professional with a stellar
record of customer service
· Strong leadership skills with the ability to communicate with
diverse groups of people
· Skilled at problem solving and able to take initiative while
prioritizing multiple tasks
· Energetic self-starter with the ability to work well on a team
or individually
EDUCATION
Harry S Truman College – Chicago, IL
Currently Enrolled
Associate in Science
· One Million Degrees Scholarship Recipient
PROFESSIONAL WORK EXPERIENCE
Jewel Osco – Chicago, IL June
2019 to September 2019 Deli Assistant
· Welcome, greet and address customers in friendly and
courteous manner
· Provide responsive and exceptional service to customers by
answering questions, providing samples, and responding to
requests
· Ensure that work areas are ready to service customers by
cleaning surfaces, equipment, floors and confirming that tools
are in working orders
· Confirm that all displays, products and services comply with
company standards
Harry S Truman College – Chicago, ILOctober 2017 to October
2018
Laboratory Stockroom Assistant
· Cleaned and maintained work area and all lab equipment and
supplies
· Labeled specimens accurately and distributed them to the
appropriate department
· Assisted stockroom staff and team members in organizing and
managing stockroom
· Built sustainable relationships and trust with co-workers
through open and interactive communication
VOLUNTEER EXPERIENCE
Public Allies for Veterans ServiceNovember 2018
Volunteer
· Assisted in organizing and serving lunch to veterans
· Provided assistance with handing out winter items to veterans
in need
ADDITIONAL SKILLS/LANGUAGES
Microsoft Office: Word and PowerPoint
Proficient in the following languages: English and Yoruba
SAMPLE BSN RESUME
Student Development & Career Services
Resurrection University
Sample Resume
1431 N. Claremont Ave. ● Chicago, IL 60622 ● 773-252-5133
● [email protected]
PROFILE
of high-involvement clinical experiences as a
student nurse in various settings
Electronic Medical Records (EMR) such as EPIC
efficiently triage and manage multiple
tasks as assigned
diverse populations
faculty and preceptors
EDUCATION
Bachelor of Science in Nursing, Resurrection University,
Chicago, IL, Anticipated Graduation, Dec. 2019
Dean’s List, Fall 2018
Associate of Applied Science, City Colleges, Chicago, IL, May
2017
LICENSE & CERTIFICATION
NCLEX/RN Licensure, Expected Jan. 2020
Certified Nurse Assistant, Current
American Heart Association Basic Life Support, Current
STUDENT NURSE EXPERIENCE
2018 - Present
Medical-Surgical, Sacred Heart Hospital, Chicago, IL│ ER and
Pediatrics, County General Hospital,
Chicago, IL │ Community Nursing, Cook County Health
Department, Chicago, IL │ Telemetry, Mercy
West Medical Center, Des Plaines, IL
experience in multi-tasking in a heavily utilized
trauma center
arts and physician orders; analyzed rhythm strips
and lab values
patients with appendicitis and RSV
of severely ill and recently deceased patients
with medical team to ensure patient’s stability
-school age patients about at-risk behaviors
patients and families; Drew blood and placed heart
monitors on patients
WORK EXPERIENCE
Executive Assistant, Acme Corporation, Chicago, IL, 2014-2018
-paced corporate office utilizing results-oriented
organizational and interpersonal skills
VOLUNTEER EXPERIENCE
Community Nurse Volunteer, Cook County Health Department,
Chicago, IL 2017-Present
Child Life Volunteer, Ronald McDonald Children’s Hospital
Loyola, Maywood, IL 2016
AWARDS, MEMBERSHIPS AND AFFILIATIONS
Resurrection University Student Nurse Association,
Resurrection University, Chicago, IL 2018-19
RESEARCH
Snow, J. (2018, January). The impact of staff morale on patient
satisfaction. Poster session presented at System
Research Day, Resurrection University, Chicago, IL.
Commented [EW1]: Used a header that stands out.
Commented [EW2]: Used a Qualification Summary that
highlights unique skills and special qualifications, rather
than an objective.
Commented [EW3]: Used a bulleted list of
responsibilities throughout.
Commented [EW4]: Included Education toward the top
of the resume and honors
Commented [EW5]: Included CURRENT and relevant
certification.
Commented [EW6]: Included dates.
Commented [EW7]: Used proper hospital/organization
names throughout.
Commented [EW8]: Stated unit NOT course name
throughout.
Commented [EW9]: Included location (City, State)
throughout.
Commented [EW10]: Used action words throughout.
Commented [EW11]: Stated student clinical experience
in detail.
Commented [EW12]: Stated additional professional
experience.
Commented [EW13]: Stated extra-curricular
involvement.
Commented [EW14]: Included research.
Commented [EW15]: If needs to add a second page, it
will be a FULL page, NOT a partial page.
When using a second page, use header and footer section
to insert a second page header that includes page #, last
name, and one form of contact.
Overall professional and relevant. Consistent formatting.
Good use of space. No misspellings. Did not state
references available upon request. DID NOT USE TABLE
OR TEMPLATE
ACC 601 Managerial AccountingGroup Case 3 (160 points)Instru.docx

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  • 1. ACC 601 Managerial Accounting Group Case 3 (160 points) Instructions: 1. As a group, complete the following activities in good form. Read the instructions for each question carefully. Provide all supporting calculations to show how you arrived at your numbers and to demonstrate your understanding of the concepts in each question. 2. Add only the names of group members who participated in the completion of this assignment. 3. Submit only one copy of your completed work via Moodle. Do not send it to me by email. 4. Due: No later than the last day of Module 7. Please note that your professor has the right to change the due date of this assignment. Part A: Capital Budgeting Decisions Chee Company has gathered the following data on a proposed investment project: Investment required in equipment $320,000 Annual cash inflows Year 1: $50,000
  • 2. Year 2: 50,000 Year 3: 60,000 Year 4: 40,000 Year 5: 65,000 Year 6: 50,000 Year 7: 70,000 Year 8: 65,000 Salvage value $60,000 Life of the investment 8 years Required rate of return 10% Assets will be depreciated using straight line depreciation method Required: 1. Show all calculations in good form. Answers without supporting calculations will earn zero marks. 2. Calculate the annual incremental net income for all the eight (8) years. 3. Using the net present value and the internal rate of return methods, is this a good investment? Part B: Master Budget You have just been hired as a new management trainee by Earrings Unlimited, a distributor of earrings to various retail outlets located in shopping malls across the country. In the past,
  • 3. the company has done very little in the way of budgeting and at certain times of the year has experienced a shortage of cash. Since you are well trained in budgeting, you have decided to prepare a master budget for the upcoming second quarter. To this end, you have worked with accounting and other areas to gather the information assembled below. The company sells many styles of earrings, but all are sold for the same price—$10 per pair. Actual sales of earrings for the last three months and budgeted sales for the next six months follow (in pairs of earrings): January (actual) 30,000 June (budget) 45,000 February (actual) 20,000 July (budget) 40,000 March (actual) 50,000 August (budget) 30,000 April (budget) 70,000 September (budget) 20,000 May (budget) 95,000
  • 4. Sufficient inventory should be on hand at the end of each month to supply 40% of the earrings sold in the following month. Suppliers are paid $3 for a pair of earrings. 40% of a month’s purchases is paid for in the month of purchase; the other 60% is paid for in the following month. All sales are on credit. Only 30% of a month’s sales are collected in the month of sale. An additional 60% is collected in the following month, and the remaining 10% is collected in the second month following sale. Monthly operating expenses for the company are given below: Variable: Sales commissions 5% of sales Fixed: Advertising $ 190,000 Rent $ 20,000
  • 5. Salaries $ 100,000 Utilities $ 8,000 Insurance $ 3,000 Depreciation $ 14,000 Insurance is paid on an annual basis, in November of each year. At the end of June, the company received $4,000 deposit for July sales. Sales in advance is a liability. The company plans to purchase $20,000 in new equipment during May and $60,000 in new equipment during June; both purchases will be for cash. The company declares dividends of $15,000 each quarter, payable in the first month of the following quarter. The company’s balance sheet as of March 31 is given below: Assets Cash $
  • 6. 74,000 Accounts receivable ($20,000 February sales; $350,000 March sales) 370,000 Inventory 80,000 Prepaid insurance 21,000 Property and equipment (net) 950,000 Total assets $ 1,495,000 Liabilities and Stockholders’ Equity Accounts payable $ 100,000 Dividends payable 15,000 Common stock 800,000 Retained earnings 580,000 Total liabilities and stockholders’ equity $ 1,495,000 The company maintains a minimum cash balance of $50,000.
  • 7. All borrowing is done at the beginning of a month; any repayments are made at the end of a month. The company has an agreement with a bank that allows the company to borrow in increments of $1,000 at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company would pay the bank all of the accumulated interest on the loan and as much of the loan as possible (in increments of $1,000), while still retaining at least $50,000 in cash. Required: Prepare a master budget for the three-month period ending June 30. Include the following detailed schedules: Use the formats/tables below. Any other format is unacceptable. Below each table, show how you arrived at the numbers in your tables. Lack of detailed calculations will reduce your marks even if the answers are correct. 1. a. A sales budget, by month and in total. Sales Budget April May June
  • 8. Quarter Budgeted unit sales 70,000 95,000 45,000 210,000 Selling price per unit 10 10 10 10 Total sales 700,000 950,000 450,000 2,100,000 b. A schedule of expected cash collections, by month and in total. Earrings Unlimited Schedule of Expected Cash Collections April May June Quarter February sales (10% of sales) 20,000 20,000
  • 9. March sales (60% of sales) 300,000 (10% of sales) 50,000 350,000 April sales (30% of sales) 210,000 (60% of sales) 420,000 (10% of sales) 65,000 695,000 May sales (30% of sales) 285,000 (60% of sales) 570,000 855,000 June sales (30% of sales) 135,000 135,000 Total cash collections 530,000 755,000 770,000 2,055,000 c. A merchandise purchases budget in units and in dollars. Show the budget by month and in total. Earrings Unlimited Merchandise Purchases Budget April May June
  • 10. Quarter Budgeted unit sales 70,000 95,000 45,000 210,000 Add: Desired ending merchandise inventory (40% of following month) 38,000 (40% of following month) 18,000 (40% of following month) 16,000 16,000 Total needs 108,000 113,000 61,000 226,000 Less: Beginning merchandise inventory 28,000 38,000 18,000 28,000 Required purchases 80,000 75,000 43,000 198,000 Unit cost 3 3 3 3 Required dollar purchases 240,000 225,000 129,000 594,000
  • 11. d. A schedule of expected cash disbursements for merchandise purchases, by month and in total. Earrings Unlimited Budgeted Cash Disbursements for Merchandise Purchases April May June Quarter Accounts payable 100,000 100,000 April purchases 160,000 160,000 320,000 May purchases 150,000 150,000 300,000 June purchases 86,000 86,000
  • 12. Total cash payments 260,000 310,000 236,000 806,000 2. A cash budgets. Show the budget by month and in total. Determine any borrowing that would be needed to maintain the minimum cash balance of $50,000. Earrings Unlimited Cash Budget For the Three Months Ending June 30 April May June Quarter Quarter Beginning cash balance $74,000 Add collections from customers 1,996,000 Total cash available 2,070,000 Less cash disbursements:
  • 14. 56,000 Dividends paid 15,000 Total cash disbursements 1,970,000 Excess (deficiency) of cash available over disbursements 100,000 Financing: Borrowings 180,000 Repayments (180,000) Interest (5,300)
  • 15. Total financing (5,300) Ending cash balance $94,700 · Required 1D 3. A budgeted income statement for the three-month period ending June 30. Use the contribution approach. Earrings Unlimited Budgeted Income Statement For the Three Months Ended June 30 Sales Variable expenses: Cost of goods sold Commissions
  • 17. Net income 4. A budgeted balance sheet as of June 30. Earrings Unlimited Budgeted Balance Sheet June 30 Assets Cash Accounts receivable Inventory Prepaid insurance Property and equipment, net Total assets Liabilities and Stockholders’ Equity Accounts payable
  • 18. Dividends payable Common stock Retained earnings Total liabilities and stockholders’ equity Required 3 Part C: Variance Analysis for Decision Making Bronfenbrenner Co. uses a standard cost system for its single product in which variable overhead is applied on the basis of direct labor hours. The following information is given: Standard costs per unit: Raw materials (2 grams at $16 per gram)
  • 19. Direct labor (1 hour at $10 per hour) Variable overhead (1 hours at $2.5 per hour) Actual experience for current year: Units produced 30,000 units Purchases of raw materials (20,000 grams at $19 per gram) Raw materials used 35,000 grams Direct labor (18,000 hours at $10 per hour) Variable overhead cost incurred $50,000 Required: 1. Show all calculations in good form. Answers without supporting calculations will earn zero marks. 2. Compute the following variances for raw materials, direct labor, and variable overhead, assuming that the price variance for materials is recognized at point of purchase:
  • 20. a. Direct materials price variance. b. Direct materials quantity variance. c. Direct labor rate variance. d. Direct labor efficiency variance. e. Variable overhead spending variance. f. Variable overhead efficiency variance. g. As a manager, why is variance analysis important? Part D: Evaluation of Decentralized Organizations The Clipper Corporation had net operating income of $340,000 and average operating assets of $1,700,000. The corporation requires a return on investment of 20%. Required: Show all calculations in good form. Answers without supporting calculations will earn zero marks. a. Calculate the company's return on investment (ROI) and residual income (RI). b. Clipper Corporation is considering an investment of $80,000 in a project that will generate annual net operating income of $15,000. Would it be in the best interests of the company to make this investment? c. Clipper Corporation is considering an investment of $80,000
  • 21. in a project that will generate annual net operating income of $15,000. If the division planning to make the investment currently has a return on investment of 18% and its manager is evaluated based on the division's ROI, will the division manager be inclined to request funds to make this investment? d. Clipper Corporation is considering an investment of $80,000 in a project that will generate annual net operating income of $15,000. If the division planning to make the investment currently has a residual income of $40,000 and its manager is evaluated based on the division's residual income, will the division manager be inclined to request funds to make this investment? NURSING SAMPLE COVER LETTER Student Development & Career Services Resurrection University Sample Cover Letter 1431 N. Claremont Ave. ● Chicago, IL 60622 ● 773-252-5133 ● [email protected] April 30, 2019 Dear Mr. Employer, I am writing to express my interest in the Staff Nurse I position in Community
  • 22. Health at Xavier Community Services. My clinical experience in a variety of settings and my Bachelor of Science in Nursing make me an excellent candidate for your program. Through my education at Resurrection University, I have been taught to focus on various aspects of individual healthcare, including patient care, monitoring disease progression, dispensing medication, and administering assessments. I became enthusiastic about working in Community Health during my clinical rotation, where I was able to see how nursing could integrate both technical and nurturing skills in order to effectively treat patients. Even after my rotation, I continued working with this population during my role transition as a senior student nurse. I spent forty hours a week practicing foundational nursing skills and techniques, such as prioritization of care and communication, as well as compassion for patients and their families. Through these experiences, I have learned to be a present listener who is patient, empathetic, cooperative, nurturing and able to communicate effectively with patients and peers as well as other healthcare professionals. I am interested in this position, not only because I want to work in this setting, but because I know I would make a great addition to Xavier
  • 23. Community Services. I would be honored to have the opportunity to become a part of your team and contribute my skills to your organization and patients. You may feel free to contact me at [email protected] or by phone at (773) 252.5133. Thank you for your consideration and time in reviewing my application. Sincerely, Sample Cover Letter Commented [WE1]: Header format should be consistent with your resume. Commented [WE2]: Use business format including date, specific addressee, and block paragraphs. Do not use bullet points in cover letters. Commented [WE3]: State specific addressee in salutation, even if it means researching who will be reviewing the job applications. Commented [WE4]: State the position for which you are applying. It is also beneficial to state any associated requisition or job numbers, and where you saw the job posted. Commented [WE5]: Be specific in discussing experience, degree and what makes you a good candidate. Include relevant skills learned in school and what attracts you to the position, experiences and goals.
  • 24. Commented [WE6]: State how these experiences are relevant to the position to which you are seeking and what attracts you to the position. Commented [WE7]: Elaborate on experiences and goals. Commented [WE8]: Reiterate your interests, again being specific. Be sure to thank them for their consideration and time in reviewing your application. Add a closing statement, such as you look forward to hearing from them and provide contact information. mailto:[email protected] 10/9/22, 12:43 AM Week 5: Assignment 5 (Resume and Cover Letter) - NUR4640-03:Leadership & Management in Nursing (2022 Fall Term 1)-15269 - Resurrection University https://oakpoint.brightspace.com/d2l/lms/dropbox/user/folder_s ubmit_files.d2l?db=42620&grpid=0&isprv=&bp=0&ou=18645 1/6 Resume and Cover Letter Grading Rubric Course: NUR4640-03:Leadership & Management in Nursing (2022 Fall Term 1)-15269 Resume Grading Rubric and Criteria Exemplary Satisfactory Unsatisfactory Criterion Score Opening/Intro / 55 points
  • 25. Includes name, address, telephone, professional email address. ALL page(s) must have header with name and page number. 3 points Missing 1 - 2 of the requirements 0 points Missing 3 or more of requirements Criteria Exemplary Satisfactory Unsatisfactory Criterion Score Summary of Qualifications / 1010 points Summary of Qualifications are focused, targeted, and concise. Uses action verbs in the same tense. 5 points Missing 1 -2 requirements
  • 26. 0 points Missing 3 or more requirements Criteria Exemplary Satifactory Unsatisfactory Criterion Score Education / 55 points 3 points 0 points 10/9/22, 12:43 AM Week 5: Assignment 5 (Resume and Cover Letter) - NUR4640-03:Leadership & Management in Nursing (2022 Fall Term 1)-15269 - Resurrection University https://oakpoint.brightspace.com/d2l/lms/dropbox/user/folder_s ubmit_files.d2l?db=42620&grpid=0&isprv=&bp=0&ou=18645 2/6 Criteria Exemplary Satifactory Unsatisfactory Criterion Score Education section emphasizes relevant cours ework, GPA if better than average (3.5 or greater), what degree student expects to attain. Education is put before employment unless student has extensive career-related job experience (LPN, EMT, MA). Education is listed
  • 27. in reverse chronological order and all institution/degrees earned are listed. Do not include High School experience after attaining a college degree. Do not include colleges or universities that Missing 1 - 2 requirements Missing 3 or more requirements 10/9/22, 12:43 AM Week 5: Assignment 5 (Resume and Cover Letter) - NUR4640-03:Leadership & Management in Nursing (2022 Fall Term 1)-15269 - Resurrection University https://oakpoint.brightspace.com/d2l/lms/dropbox/user/folder_s ubmit_files.d2l?db=42620&grpid=0&isprv=&bp=0&ou=18645 3/6 Criteria Exemplary Satifactory Unsatisfactory Criterion Score were attended but no degree was awarded.
  • 28. Criteria Exemplary Satisfactory Unsatisfactory Criterion Score Work / 1010 points Work experience includes job titles, locations, list of duties/ accomplishments. Experie nce listed in resume parallels position applicant is applying for. 5 points Missing 1 - 2 requirements 0 points Missing 3 or more requirements Criteria Exemplary Satisfactory Unsatisfactory Criterion Score Format / 1010 points 1 OR 2 full pages; Balanced, white space, good font choices, pleasing design; Single spaced; 1-inch margins. 5 points Missing 1 - 2
  • 29. requirements 0 points Missing 3 or more requirements Criteria Exemplary Satisfactory Unsatisfactory Criterion Score 10/9/22, 12:43 AM Week 5: Assignment 5 (Resume and Cover Letter) - NUR4640-03:Leadership & Management in Nursing (2022 Fall Term 1)-15269 - Resurrection University https://oakpoint.brightspace.com/d2l/lms/dropbox/user/folder_s ubmit_files.d2l?db=42620&grpid=0&isprv=&bp=0&ou=18645 4/6 Criteria Exemplary Satisfactory Unsatisfactory Criterion Score Grammar and punctuation / 1010 points Begin each bullet with an action verb. Approved action word list provided. No spelling errors. No grammatical errors. Word processing mechanics are perfect. 5 points
  • 30. Missing 1 - 2 requirements 0 points Missing more than 3 requirements Cover Letter Grading Rubric Exemplary Satisfactory Unsatisfactory Criterion Score Opening Paragraph / 55 points The opening paragraph arouses the interest of the employer by stating why you are interested in the organization, names the specific job applied for and states where you heard of the job. 3 points The opening paragraph is poorly written or is
  • 31. missing one of the required elements: why you are interested, specific job, where you heard of the job. 0 points The opening paragraph is poorly written and is missing more than one of the required elements. 10/9/22, 12:43 AM Week 5: Assignment 5 (Resume and Cover Letter) - NUR4640-03:Leadership & Management in Nursing (2022 Fall Term 1)-15269 - Resurrection University https://oakpoint.brightspace.com/d2l/lms/dropbox/user/folder_s ubmit_files.d2l?db=42620&grpid=0&isprv=&bp=0&ou=18645 5/6 Cover Letter Grading Rubric Exemplary Satisfactory Unsatisfactory Criterion Score Middle Paragraph / 5 Closing Paragraph / 5 Layout / 5 5 points
  • 32. The middle paragraph is neatly written and creates a desire for an employer to know more about you. It emphasizes the resume pointing out achievements and qualifications that meet the job description. 3 points The middle paragraph is poorly written and does not create a desire for the employer to know more about the student or does not emphasize the resume. 0 points The middle paragraph is poorly written and does not make the employer want to meet the individual, emphasize the resume and does not refer to the job description. 5 points The closing paragraph paves the way for an interview by offering to call in the future.
  • 33. 3 points The closing paragraph leaves the employer unsure if the applicant would like an interview or does not offer to call in the future. 0 points There is no closing paragraph. 5 points The letter is organized. It includes all the required components in the correct order with the correct spacing between elements. 3 points The letter is missing 1 of the required elements or the components are not in the correct order. 0 points
  • 34. There is no apparent organization to the letter. It is missing multiple components. 10/9/22, 12:43 AM Week 5: Assignment 5 (Resume and Cover Letter) - NUR4640-03:Leadership & Management in Nursing (2022 Fall Term 1)-15269 - Resurrection University https://oakpoint.brightspace.com/d2l/lms/dropbox/user/folder_s ubmit_files.d2l?db=42620&grpid=0&isprv=&bp=0&ou=18645 6/6 Total / 80 Overall Score Cover Letter Grading Rubric Exemplary Satisfactory Unsatisfactory Criterion Score Writing Skills / 5 Format / 5 5 points Sentences are fluent and effective. Very few errors in
  • 35. mechanics, punctuation, and word usage. 3 points Sentences are usually controlled. There are minor errors in mechanics, punctuation, and word usage. 0 points Sentences are generally adequate. There are lapses in mechanics, punctuation, and grammar. 5 points Letter meets 100% of the formatting requirements. 3 points Letter does not include one of the formatting requirements. 0 points The letter is missing more than one of the formatting
  • 36. requirements. Level 3 80 points minimum Level 2 26 points minimum Level 1 0 points minimum Daniella Bintu Mobile: 872-435-6635 Email: [email protected] PROFESSIONAL SUMMARY · Highly motivated and dedicated professional with a stellar record of customer service · Strong leadership skills with the ability to communicate with diverse groups of people · Skilled at problem solving and able to take initiative while prioritizing multiple tasks · Energetic self-starter with the ability to work well on a team or individually EDUCATION Harry S Truman College – Chicago, IL Currently Enrolled Associate in Science · One Million Degrees Scholarship Recipient PROFESSIONAL WORK EXPERIENCE Jewel Osco – Chicago, IL June 2019 to September 2019 Deli Assistant · Welcome, greet and address customers in friendly and courteous manner
  • 37. · Provide responsive and exceptional service to customers by answering questions, providing samples, and responding to requests · Ensure that work areas are ready to service customers by cleaning surfaces, equipment, floors and confirming that tools are in working orders · Confirm that all displays, products and services comply with company standards Harry S Truman College – Chicago, ILOctober 2017 to October 2018 Laboratory Stockroom Assistant · Cleaned and maintained work area and all lab equipment and supplies · Labeled specimens accurately and distributed them to the appropriate department · Assisted stockroom staff and team members in organizing and managing stockroom · Built sustainable relationships and trust with co-workers through open and interactive communication VOLUNTEER EXPERIENCE Public Allies for Veterans ServiceNovember 2018 Volunteer · Assisted in organizing and serving lunch to veterans · Provided assistance with handing out winter items to veterans in need ADDITIONAL SKILLS/LANGUAGES Microsoft Office: Word and PowerPoint Proficient in the following languages: English and Yoruba
  • 38. SAMPLE BSN RESUME Student Development & Career Services Resurrection University Sample Resume 1431 N. Claremont Ave. ● Chicago, IL 60622 ● 773-252-5133 ● [email protected] PROFILE of high-involvement clinical experiences as a student nurse in various settings Electronic Medical Records (EMR) such as EPIC efficiently triage and manage multiple tasks as assigned diverse populations faculty and preceptors EDUCATION Bachelor of Science in Nursing, Resurrection University, Chicago, IL, Anticipated Graduation, Dec. 2019 Dean’s List, Fall 2018 Associate of Applied Science, City Colleges, Chicago, IL, May 2017 LICENSE & CERTIFICATION NCLEX/RN Licensure, Expected Jan. 2020
  • 39. Certified Nurse Assistant, Current American Heart Association Basic Life Support, Current STUDENT NURSE EXPERIENCE 2018 - Present Medical-Surgical, Sacred Heart Hospital, Chicago, IL│ ER and Pediatrics, County General Hospital, Chicago, IL │ Community Nursing, Cook County Health Department, Chicago, IL │ Telemetry, Mercy West Medical Center, Des Plaines, IL experience in multi-tasking in a heavily utilized trauma center arts and physician orders; analyzed rhythm strips and lab values patients with appendicitis and RSV of severely ill and recently deceased patients with medical team to ensure patient’s stability -school age patients about at-risk behaviors patients and families; Drew blood and placed heart monitors on patients WORK EXPERIENCE Executive Assistant, Acme Corporation, Chicago, IL, 2014-2018 -paced corporate office utilizing results-oriented organizational and interpersonal skills
  • 40. VOLUNTEER EXPERIENCE Community Nurse Volunteer, Cook County Health Department, Chicago, IL 2017-Present Child Life Volunteer, Ronald McDonald Children’s Hospital Loyola, Maywood, IL 2016 AWARDS, MEMBERSHIPS AND AFFILIATIONS Resurrection University Student Nurse Association, Resurrection University, Chicago, IL 2018-19 RESEARCH Snow, J. (2018, January). The impact of staff morale on patient satisfaction. Poster session presented at System Research Day, Resurrection University, Chicago, IL. Commented [EW1]: Used a header that stands out. Commented [EW2]: Used a Qualification Summary that highlights unique skills and special qualifications, rather than an objective. Commented [EW3]: Used a bulleted list of responsibilities throughout. Commented [EW4]: Included Education toward the top of the resume and honors Commented [EW5]: Included CURRENT and relevant certification. Commented [EW6]: Included dates.
  • 41. Commented [EW7]: Used proper hospital/organization names throughout. Commented [EW8]: Stated unit NOT course name throughout. Commented [EW9]: Included location (City, State) throughout. Commented [EW10]: Used action words throughout. Commented [EW11]: Stated student clinical experience in detail. Commented [EW12]: Stated additional professional experience. Commented [EW13]: Stated extra-curricular involvement. Commented [EW14]: Included research. Commented [EW15]: If needs to add a second page, it will be a FULL page, NOT a partial page. When using a second page, use header and footer section to insert a second page header that includes page #, last name, and one form of contact. Overall professional and relevant. Consistent formatting. Good use of space. No misspellings. Did not state references available upon request. DID NOT USE TABLE OR TEMPLATE