1. Which of the reasons for strategic drift are evident in the Kodak story? 2. Drawing on the lessons from Part 1 of the book as a whole, how might Kodaks problems have been avoided?

Refer to the child mortality example discussed in Chapter 8 (Example 8.1). The example there involved the regression of the child mortality (CM) rate on per capita GNP (PGNP) and female literacy rate...

The adjusted trial balance columns of the worksheet for Auburn Company are as follows. Instructions Complete the worksheet. Auburn Company Worksheet (partial) For the Month Ended April 30, 2020...

In June 2013, Paul M. Stelmachers took a taxi cab ride in Las Vegas, Nevada, and paid for the cab fare with his credit card. A VeriFone Systems Inc. product was used to receive payment in the taxi...

On June 30, 2021, Exploration Inc. signs a lease requiring quarterly payments each year for the next five years. Each of the 20 quarterly payments is $29,122.87, with the first lease payment...

On November 1, 20X1, Gerakos Corporation sold software and a six-month technical support contract to a customer for $80,000. Gerakos sells technical support for $30,000. It does not sell the software...

During 2018, Palo Fiero purchases the following property for use in his calendar yearend manufacturing business: Palo uses the accelerated depreciation method under MACRS, if available, and does not...

Modco was founded in 1960, with the opening of the first Modco discount store, and was incorporated as Modco Stores Inc. in January 1970. The companys shares were listed on the NYSE in 1975. Modco...

Sky High Sports Nashville Operations, LLC, operated a trampoline park in Nashville, Tennessee. At the park, during a dodgeball tournament, Jacob Blackwell, a minor, suffered a torn tendon and a...

Your friend is just finishing a study of attendance at Los Angeles Laker regular-season home basketball games when she hears that youve read a chapter on serial correlation and asks your advice....

The form on page 6-47 shows the amounts that appear in the Earnings to Date column of the employees earnings records for 10 full- and part-time workers in Unger Company. These amounts represent the...

Josephine Deau operates a water park called Slip and Slide Ltd. Her busiest months are April through September, although, if the weather holds, she extends park access into October. For the month of...

On January 1, 2020, Panther, Inc., issued securities with a total fair value of $577,000 for 100 percent of Stark Corporations outstanding ownership shares. Stark has long supplied inventory to...

Target adopted the new leasing standard for the year ended February 2, 2019, using the modified retrospective approach outlined in ASC Topic 842. All questions relate to the year ended February 2,...

During 2020, the following transactions were recorded by the Port Hudson Community Hospital, a private sector not-for-profit institution. 1. Gross charges for patient services, all charged to Patient...

Lily Zhang started a new business on January 1, 2017, called Zhang Consulting. She develops financial investment plans for young adults. During the businesss first year of operations, the following...

Ray County administers a tax custodial fund, an investment trust fund, and a private-purpose trust fund. The tax custodial fund acts as custodian for the county, a city within the county, and the...

Ellie Mosk, CEO of X-Space Industries, decided to expand the companys product offering beyond the core model rocket business. After investigation, she decided to set up a separate division to design...

On August 15, 2020, Japan Ideas consigned 500 electronic play systems, costing $100 each, to YoYo Toys Company. The cost of shipping the play systems amounted to $1,250 and was paid by Japan Ideas....

On June 1, Parker-Mae Corporation (a U.S.-based company) received an order to sell goods to a foreign customer at a price of 100,000 francs. Parker-Mae will ship the goods and receive payment in...

Rottino Company purchased a new machine on October 1, 2022, at a cost of $150,000. The company estimated that the machine will have a salvage value of $12,000. The machine is expected to be used for...

The Coca-Cola Company is a global soft-drink beverage company that is a direct competitor with Starbucks. The data in Chapter 12, Exhibits 12.14 through 12.16 (pages 806-809), include the actual...

1. Defend Rack and Shelving Manufacturings (RSM) new product development strategy of tying new rack and shelving products to ASTs AGV/robotic innovation cycles. 2. How will product manufacturers and...

Phil Williams and Liz Johnson are 60% and 40% partners, respectively, in Williams & Johnson Partnership. Their beginning basis is $33,000 for Phil and $31,000 for Liz. The partnership had the...

You are auditing the financial statements for your new client, Paper Packaging Corporation, a manufacturer of paper containers, for the year ended March 31, 2019. Paper Packaging is a public company....

1. Analyze the facts of the case with respect to the AICPA Code and explain any perceived deviation from ethical standards. 2. Assume Miller Energy is considering bringing a lawsuit against KPMG for...

Wade Corp. has 150,000 shares of common stock outstanding. In 2020, the company reports income from continuing operations before income tax of $1,210,000. Additional transactions not considered in...

The equity section from the December 31, 2020 balance sheet of Kentucky Corporation appeared as follows: The following transactions occurred during 2021 (assume the retirements were the first ever...

Two farmers, Tito and Helen, supply a chain of islands with kale. The inverse demand for kale in the islands is given by P = 60 0.5Q, where Q is the combined output of Tito (q T ) and Helen (q H ),...

1. What disciplines should be represented on the planning team? 2. Do you feel that you could act as the chairperson for the planning team? Explain your answer. 3. What questions/issues need to be a...

On January 1, Year 1, Poultry Processing Company purchased a freezer and related installation equipment for $42,000. The equipment had a three-year estimated life with a $3,000 salvage value ....

1. How is Lorenzo likely to begin the process of budgeting revenue for the hotel in its first year after expansion? 2. What historical hotel data would be useful in helping Lorenzo complete this...

Ricky Fowler borrowed $70,000 on March 1, 2018. This amount plus accrued interest at 6% compounded semiannually is to be repaid March 1, 2028. To retire this debt, Ricky plans to contribute to a debt...

Which of the following is an auditors objective related to the valuation assertion for the auditees PPE and intangible assets ? a. Obtain evidence that the auditee has legal rights to its patents. b....

The Eldorado Corporation?s controller prepares adjusting entries only at the end of the reporting year. The following adjusting entries were prepared on December 31, 2021: Additional information:1....

Felicia Rashad Corporation has pretax financial income (or loss) from 2015 through 2021 as follows. Pretax financial income (loss) and taxable income (loss) were the same for all years since Rashad...

Selected unadjusted account balances at December 31, 2020, are shown below for Demron Servicing. Required a. Demron estimates that 1.5% of net credit sales will prove to be uncollectible. Prepare the...

The following figure shows a packing list received by Frazier Stamping, Inc. When a packing slip arrives at the receiving dock with a shipment, a worker prepares a receiving report. The receiving...

Glenvale Furniture has projected sales of its product for the next six months as follows. The product sells for $120, variable expenses are $90 per unit and fixed expenses are $1500 per month. The...

Margaret started her own business in the current year and will report a profit for her first year. Her results of operations are as follows: Gross income...

Reynolds County has three large trucks with a total net book value of $600,000 and remaining lives of six years with no expected residual value. County officials lease the trucks to the City of...

Reece Financial Services Co., which specializes in appliance repair services, is owned and operated by Joni Reece. Reece Financial Services accounting clerk prepared the following unadjusted trial...

What is the minimum cost of crashing by four days the following project that James Walters manages at Athabasca University? Normal Crash Time Time Normal Crash Immediate Activity (days) (days) Cost...

1. Map Vanguards corporate culture to the cultural web elements of paradigm, stories, symbols, power, organisation structure, control styles and rituals and routine. 2. How do the various elements of...

A business manufactures refrigerators for domestic use. There are three models: Lo, Mid and Hi. The models, their quality and their price are aimed at different markets. Product costs are computed...

If the price level recently increased by 20% in England while falling by 5% in Canada, how much must the exchange rate change if PPP holds? Assume that the current exchange rate is 0.55 pounds per...

Boise Companys investments in equity securities at December 31 show total cost of $200,000 and total fair value of $210,000. Boise has less than a 20% ownership interest in the equity securities....

The following data present key ratios for six well-known U.S. corporations: Apple, Boeing, Citigroup, Facebook, McDonalds, and Walmart. However, the companies are not listed in order, and their names...

On January 2, 2021, Sanborn Tobacco Inc. bought 5% of Jackson Industrys capital stock for $90 million. Jackson Industrys net income for the year ended December 31, 2021, was $120 million. The fair...

On March 10, 2013, Elizabeth, a college professor, purchased a house for $300,000. She did not move into the house until August 8, 2013. On August 1, 2014, she accepted a position as a visiting...

How would you describe the departmentalization and the organizational structure at Graeter's? Do you think Graeter's is centralized or decentralized, and what are the implications for its plans for...

1. Based on the information presented in this case, how would you describe Shake Shacks retail image? 2. How would you describe the store atmosphere that Shake Shack seeks to maintain? 3. The...

The following information came from a recent balance sheet of The Coca Cola, Co. a. Determine the amount of total liabilities reported in Coca-Colas balance sheet at the beginning of the year. b....

As a financial advisor for the Spain Development Co., you have been given the construction and marketing studies for the proposed Timbercreek office project. Several potential sites have been...

Fraser Corporation has announced that its net income for the year ended June 30, 2017, was $1,353,412. The company had EBITDA of $4,967,855, and its depreciation and amortization expense was equal to...

Martha Wheaton, Bess Chen, and Sam Smith were partners in an urban Calgary tea shop called Wake and showed the following account balances as of December 31, 2020: Due to difficulties, the partners...

On January 1, 2021, the general ledger of TNT Fireworks includes the following account balances: During January 2021, the following transactions occur: January 1 Purchase equipment for $19,500. The...

Alpha and Beta are divisions within the same company. The managers of both divisions are evaluated based on their own divisions return on investment (ROI). Assume the following information relative...

Because of the dramatic growth at East Coast Yachts, Larissa decided that the company should be reorganized as a corporation (see our Chapter 1 Closing Case for more detail). Time has passed and,...

Jennifer Lee, an engineering major in her junior year, has received in the mail two guaranteed lineofcredit applications from two different banks. Each bank offers a different annual fee and finance...

Elizabeth owns 100% of Omega Corporation's stock and also runs the company as its CEO. Omega is a C corporation that expects to earn $400,000 before deducting any salary paid to Elizabeth. Elizabeth...

As the recently appointed auditor for Bryan Corporation, you have been asked to examine selected accounts before the 6-month fi nancial statements of June 30, 2020, are prepared. The controller for...

Hawkeye Corporation?s balance sheet at December 31, 2019, is presented below. During 2020, the following transactions occurred. 1. On January 1, 2020, Hawkeye issued 1,200 shares of $40 par, 7%...

Fong Corp. reported various transactions in 20X2: a. Equipment with an original cost of $32,500 and accumulated depreciation of $26,000 was deemed unusable and was sold for $250 scrap value. b. A new...

Partial adjusted trial balance data for Miller Company is presented in BE3.9. The balance in Owners Capital is the balance as of January 1. Prepare an owners equity statement for the year assuming...

1. If you were Dorian, what steps would you take to grow the business? 2. What do you see as the greatest challenges facing Dorian as she moves her business forward? 3. How does Dorians approach to...

1. How much did The Home Depot owe for salaries and related expenses at January 29, 2017? Was this an increase or decrease from the previous year? a. $1,484 million (Decrease) b. $1,484 million...

Tran Technologies licenses its functional intellectual property to Lyon Industries. Terms of the arrangement require Lyon to pay Tran $500,000 on April 1, 2021, when Lyon first obtains access to...

Adams Corporation uses a periodic inventory system and the retail inventory method to estimate ending inventory and cost of goods sold. The following data are available for the month of September...

The information necessary for preparing the 2021 year-end adjusting entries for Bearcat Personal Training Academy appears below. Bearcats fiscal year-end is December 31. 1. Depreciation on the...

MWC Corp. is currently in the sixth year of its existence (2020). In 20152019, it reported the following income and (losses) (before net operating loss carryovers or carrybacks). 2015: ($ 70,000)...

Hill Corporation is in the leasing business and faces a marginal tax rate of 21 percent. It has leased a building to Whitewater Corporation for several years. Hill bought the building for $150,000...

Cathys Cuisine Ltd. is a small restaurant and catering business started three years ago by Cathy Crosby. Initially the companys operations consisted of a small diner. In 2019, the company added the...

Wynn Farms reported a net operating loss of $100,000 for financial reporting and tax purposes in 2021. The enacted tax rate is 25%. Taxable income, tax rates, and income taxes paid in Wynn?s first...

At December 31, 2019, Belmont Company had a net deferred tax liability of $375,000. An explanation of the items that compose this balance is as follows. In analyzing the temporary differences, you...

After its first month of operations, Paquette Advisors showed the following account balances in its general ledger accounts (T-accounts) as at January 31, 2020. During February, the following...

Oakville Corp. incurred the following costs during 2020 in connection with its research and development phase activities: Cost of equipment acquired for use in research and development projects over...

Scorchys Tacos restaurant is considering expanding into suburban markets in Houston, Texas, with three new locations. Because of the floods in 2017, many restaurants never reopened, creating a...

Martin Enterprises needs someone to supply it with 110,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and youve decided to bid on the contract. It...

A hotel has 400 rooms. Last night 5 rooms were out of order. Last night the hotel sold 300 rooms at an ADR of $215.00. What was the hotels RevPAR last night? a. $163.29 b. $163.25 c. $161.29 d....

1. Present a five-item ethics code that a retailer could impose on its suppliers with regard to fake and counterfeit merchandise. 2. As the buyer for a retail chain, what would you do if you found...

What are the main issues that the traditional approach emphasizes in respect to Apples dividend policy? What are the main issues that the behavioral approach emphasizes in respect to Apples dividend...

Bando Corp. sells a single part for a price of $37 per unit. The variable costs of the part are $13 per unit and monthly fixed costs are $120,000. Required a. What is the break-even level of monthly...

As an auditor for the firm of Gratis and Goode, you encounter the following situations in auditing different clients. 1. JR SpA is a closely held corporation whose shares are not publicly traded. On...

Siam Financial Corp. (SFC) actively trades bonds but chooses not to hedge any of its open positions. At the beginning of the year, SFC purchased 50 million baht of Thai government bonds paying 4...

Javier and Anita Sanchez purchased a home on January 1 of year 1 for $1,000,000 by paying $200,000 down and borrowing the remaining $800,000 with a 6 percent loan secured by the home. The Sanchezes...

The following events took place for Migliozzi Inc. during July, the first month of operations as a producer of road bikes: Purchased $416,000 of materials Used $358,000 of direct materials in...

Outdoor Equipment (OE) sells camping equipment. On December 1, the accounts receivable account had a balance of $50,000, the bad debt expense account had a balance of $0, and the allowance for...

Zimmer Chemical Co. has chemical manufacturing facilities around the world. Recently, Zimmer erected a new facility in South Korea at a cost of $48 million and plans to operate the new facility for a...

Milo Corporations unadjusted trial balance at December 1, 2022, is presented below The following transactions occurred during December. Dec. 2 Purchased equipment for $16,000, plus sales taxes of...

Zhou Bicycle Company (ZBC), located in Vancouver, is a wholesale distributor of bicycles and bicycle parts. Formed in 1981 by Yong-Pin Zhou, the firms primary retail outlets are located within a...

Finn Fixes is a new charity that repairs donated cars for use by unemployed job seekers. Finn collects the cars from area junkyards. The first year Finn is in operation, jobs programs bought cars...

The trial balance of Addison, Inc., at September 30, 2018, does not balance: The accounting records hold the following errors: a. Recorded a $700 cash revenue transaction by debiting Accounts...

Timmins Company of Emporia, Kansas, spreads herbicides and applies liquid fertilizer for local farmers. On May 31, 2022, the companys Cash account per its general ledger showed a balance of...

The post-closing trial balance of Russo SpA at December 31, 2020, contains the following equity accounts. Share CapitalPreference (12,000 shares issued) ..................... 600,000 Share...

Joe Schreiner, controller for On Time Clock Company Inc., recently prepared the company?s income statement and statement of changes in equity for 2020. Schreiner believes that the statements are a...

After winning the TV show competition Star Chef, Adriana started a cooking school, Adrianas Apron. Adrianas Apron prepares monthly financial statements. The following are the transactions for the...

a. On January 1, 20X1, Frances Corporation started doing business and the owners contributed $200,000 capital in cash. b. The company paid $24,000 to cover the rent for the office space for the...

1. In what ways (if any), do you think the strategy development process is different in a small business (as typified by Mormor Magda) from the process in a large organisation (e.g. Apple or...

1. What does nice mean to you? Do you think nice is a good trait for leaders or the kiss of death? 2. Is nice related to any concepts in the chapter, such as one of the big five personality...