BUS 475 Capstone Final Examination Part 2\u00a0\t\u00a0\tA company declared a cash dividend of $8560 on December 5 2015. The company made a cash dividend payment on January 8, 2016. What is the cumulative effect of the declaration and payment of the cash dividend on the company’s financial statements?\t\u00a0\tTotal liabilities will remain the same, and total assets will increase by $8,560.\tStockholders’ equity and total assets will decrease by $8,560.\tStockholders’ equity will increase by $8,560, and total assets will remain the same.\tTotal assets and liabilities will increase by $8,560.\t\u00a0\t\u00a0\t\u00a0\tRilm Corporation has been recording investment income as revenue for the past year with the aim of making the financial condition of the company appear better than it actually is. Jon, one of the company’s employees, becomes aware of this fraudulent activity and immediately reports it to the appropriate authorities. After conducting several investigations, the authorities book the company under the Sarbanes-Oxley Act. Which of the following statements best explains why Jon did not hesitate to alert the authorities about the company’s fraudulent activity?\t\u00a0\tUnder the Sarbanes-Oxley Act, whistleblowers who suffer retaliation are allowed to recover criminal damages but not civil damages.\tThe Sarbanes-Oxley Act requires accounting firms to separate their auditing and consulting functions.\tThere are no limitations to the protections offered by the Sarbanes-Oxley Act to whistleblowers.\tThe Sarbanes-Oxley Act provides for the reinstatement of whistleblowers in cases of improper termination.\tLaBelle a famous cosmetic brand introduces a new skin cleanser. The product does extremely well and reaps huge profits for the company. After using the product for a few months, consumers complain of rashes and allergies. An external chemical agency accuses the company of using banned substances in its products. When investigated, the company’s CEO confesses that he knew about the substance but did not act because of the product’s initial success. Which of the following could be the cause for the CEO’s unethical behavior?\t\u00a0\tThe slippery slope\tOvervaluing outcomes\tIndirect blindness\tIll-conceived goals\tElena Corporation owes Volmare Inc. an advertising agency a sum of $42000 for services rendered. When Elena Corporation goes public it offers the agency 7000 shares of its common stock in exchange for the payable service cost. The agency accepts the offer. The stock trades at $6 per share and the par value of the stock is $1. Which of the following is the correct journal entry to record this transaction in the books of Elena Corporation?\t\u00a0\t\u00a0\t\u00a0\tCoolWindows Corp. produces 2000 air conditioners per week in three plants: Plant I, Plant II, and Plant III. Plant I produces 800 air conditioners per week, Plant II produces 500 air conditioners per week, and Plant III produces 700 air conditioners per week. The probability of an air conditioner being defective is 7% for Plant I, 5% for Plant II, and 6% for Plant III, respectively. In a random check, a defective air conditioner is found. What is the probability that the air conditioner was produced in Plant II?\t\u00a0\t25\t18\t20\t75\tCalculate the expected return for a stock based on the following information.\t\u00a0\t\u00a0\t\u00a0\tExpected dividend $2.20\tCurrent price $47.82\tExpected growth rate 5.67%\t6%\t27%\t87%\t46%\t\u00a0\t\u00a0\tAs a common practice Rova Inc. mostly collects upfront payments for goods that will be delivered to customers in the future. Unearned revenues contribute significantly to the company’s current liabilities.\t\u00a0\tCommentator A: The advance cash received from customers can be used to finance the company’s operations, and the corresponding liabilities that are recorded will appear as sales in future financial statements. Therefore, this practice is beneficial to Rova Inc. and should be continued.\t\u00a0\t\u00a0\t\u00a0\tWhich of the following statements, if true, weakens commentator A’s argument?\t\u00a0\tRova Inc.’s ability to deliver exactly as per its commitments to its customers is frequently impacted by its unreliable suppliers.\tRova Inc.’s long-term liabilities are not offset by its current assets.\tRova Inc.’s cash flow statement shows that the company does not have enough cash to scale up its operations in the next year.\t\u00a0\t\u00a0\t\u00a0\tA majority of the orders received by Rova Inc. from its customers are for customized products.\tThe senior management of Reska Corp. realizes the importance of encouraging employees to be creative. In the previous year, the company organized quarterly town hall meetings, where employees were given the opportunity to share innovative ideas to tackle the issues faced by the company and to improve the company’s overall performance. However, this plan did not yield the desired result.\t\u00a0\tThe CEO of Reska Corp.: This plan failed because employees tended to be apprehensive about expressing their ideas in public as they did not know how the ideas would be received. We must change our strategy and give employees the opportunity to express their ideas to their managers in person. This will make the employees feel comfortable expressing their creativity.\t\u00a0\tWhich of the following is assumed by the CEO?\t\u00a0\tUnless the employees of Reska share their creative ideas, the company’s overall performance is unlikely to improve.\tEmployees feel less apprehensive about expressing their ideas to their managers than about expressing them in public.\tReska’s employees want to be creative at their jobs.\tCompanies with a creative workforce are less resistant to change than those lacking creativity.\t\u00a0\t\u00a0\t\u00a0\tMelanie and Peter are discussing the limitations of internal control systems in organizations. Melanie believes that the human element is an insignificant factor in internal control systems. If Peter wants to refute this view, which of the following points should he put forth?\t\u00a0\tSmall companies have more efficient internal control systems as they do not need to segregate duties or provide for independent internal verification.\tCollusion between two individuals can eliminate the protection offered by segregation of duties in an internal control system.\tA well-built internal control system has inbuilt controls to reverse the results of employee indifference and carelessness.\tThe size of an organization determines the expectations from an internal control system in the organization.\u00a0\t\u00a0\t\u00a0\t\u00a0\tCryser Inc. specializes in manufacturing wind turbines. In order to increase the efficiency of its manufacturing process, the management decides to restructure its shop floor into several workshops. Each workshop specializes in a specific function. The engineers working in the company raise concerns that their jobs will become monotonous if each employee performs only one of those functions. Which of the following is a soft tactic that the management can use to influence the engineers?\t\u00a0\tConvincing the union leader to persuade other engineers\tExplaining the benefits of the new structure\tDemanding the engineers to comply with the authority\tPromising monetary benefits\t\u00a0\t\u00a0\t\u00a0\tJeremia joins as the new marketing manager in a leading multinational company. The company usually advertises its products through newspapers, television, or trade fairs. Jeremia invites different product managers within the company to discuss and find out new ways of creating consumer awareness for the company’s products. Several members of the group are inclined toward Jeremia’s idea of using social media, while others are content with the present promotional strategies. Which of the following stages of the group development process are the managers experiencing?\t\u00a0\tPerforming\tForming\tStorming\tNorming\t\u00a0\t\u00a0\t\u00a0\tVonik Solvers Inc. receives $40,000 in cash by issuing 15,000 shares of common stock at the par value of $2 per share.Which of the following is the correct journal entry to record this transaction?\t\u00a0\tCash \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 80,000\t\u00a0\tCommon Stock \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 30,000\t\u00a0\tAdditional Paid-in Capital \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 50,000\t\u00a0\tCommon Stock \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 40,000\t\u00a0\tCash \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 30,000\t\u00a0\tAdditional Paid-in Capital \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a010,000\t\u00a0\tCash \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 40,000\t\u00a0\tCommon Stock \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 30,000\t\u00a0\tAdditional Paid-in Capital \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 10,000\t\u00a0\tCommon Stock \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 80,000\t\u00a0\tCash \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 30,000\t\u00a0\tAdditional Paid-in Capital \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a050,000\t\u00a0\tCero Inc. is an oil and gas company that operates in the nation of Lumnia. Cero has incurred unforeseen expenses this year because of an environmental lawsuit filed against the company for accidentally causing an oil spill in a marine area in Lumnia. Therefore, despite Cero’s earnings being high, the company’s net income is much lower than what the company anticipated.\t\u00a0\tCFO of Cero Inc.: Our operations are compliant to the current environmental laws. Accidents such as the oil spill caused by Cero Inc. are extremely rare. Therefore, the consequences of the environmental impacts of our operations should be categorized as nonrecurring costs in our financial statements.\t\u00a0\tCero’s shareholder: Cero Inc.’s earnings steadily increase every year. Since the oil spill is a onetime incident, there is no need to worry about its impact on next year’s profits.\t\u00a0\t\u00a0\t\u00a0\t\u00a0\tWhich of the following statements, if true, weakens the CFO’s argument?\t\u00a0\tCero Inc. categorizes any change in accounting principles as a nonrecurring expense.\tA change in the taxes applicable to Cero Inc. cannot be listed as a nonrecurring expense unless it is unanticipated.\tIn the future, Lumnia’s environmental laws are likely to undergo frequent changes because of increasing environmental activism in Lumnia.\tCero Inc.’s earnings come from many other operations that are based outside Lumnia.\tTelda Corp. is a large accounting firm. It has an office in each of the 27 states of Kavenia.\t\u00a0\t\u00a0\t\u00a0\tThe chairperson of Telda Corp.: I believe that if employees work in the same office for a long time, issues like favoritism, complacency, and misuse of authority are likely to develop. Therefore, I propose a policy that requires at least the employees in managerial positions and above to be transferred to a different office every five years. This policy will be well received by our employees and discourage them from leaving our company.\t\u00a0\tWhich of the following statements, if true, would most seriously weaken the chairperson’s policy?\t\u00a0\tThe cost of living in Kavenia varies from state to state.\tEmployees are more likely to switch jobs within their city than to relocate to a new city for their current jobs.\tThe employees of Telda Corp. would have to be paid a relocation allowance if they are transferred to a different city.\tThere is a high rate of attrition among Telda Corp.’s employees who are not in managerial positions.\u00a0\t\u00a0\t\u00a0\t\u00a0\tThe HR manager of Delta Corp.: According to our rewards and recognition program, employee achievements are acknowledged and employees are given gift vouchers through emails on reaching milestones and targets. I feel this is not enough to make employees feel appreciated. In my previous company, work anniversaries and professional achievements were celebrated in organization-wide meetings, where the concerned employee would be publicly rewarded. After all, I would love it if my efforts were recognized like this! Therefore, such an idea would be a great success in our company.\u00a0\t\u00a0\tThe HR manager’s argument is flawed because it:\t\u00a0\tdismisses the possibility of increasing the value of the gift vouchers that are given to the employees at present.\tfails to prove that employees of Delta Corp. feel unappreciated.\tfails to recognize the effort put in by his team to implement the existing rewards and recognition program.\tfails to consider that other people might perceive appreciation differently than him.\t\u00a0\t\u00a0\t\u00a0\tThe management team at Cryser Inc., manufacturer of wind turbines, aims to increase the company’s market share by 20% by the end of 2017. The respective functional heads in the company inform their teams that they will get a substantial bonus if they are able to achieve this target. Which of the following stages of the goal-setting process is the company in?\t\u00a0\tProviding support and feedback\tCreating action plans\tPromoting goal commitment\tSetting goals\tcalculate the cash flows from investing activities based on the following information.\t\u00a0\tCash received from customers $67,550\tCash paid to suppliers 24,000\tPurchase of equipment 230,000\tIncome tax paid 2,800\tPayment of dividends 115,000\tProceeds from sale of machinery 105,000\tInterest paid 1,500\tProceeds from issue of long-term debt 84,000\tPurchase of stocks 87,500\tReceipts from sale of equity instruments 177,300\t$(35,200)\t$39,250\t$(31,000)\t$125,000\tRaubac Inc. has an earnings before interest and taxes (EBIT) of $350,000. Raubac Inc.’s capital structure consists of a long-term debt of $950,000 (costing 4%) and 110,000 issued shares of common stock at a market price of $6 per share. To bring down Raubac’s dependence on debt, the company is planning to reduce its debt by $200,000 by selling additional shares of common stock. Raubac’s EBIT will not change with the change in capital structure and will remain in the 40 percent tax bracket. Which of the following is a result of the change in Raubac’s capital structure?\t\u00a0\tRaubac’s earnings before taxes (EBT) will remain unchanged.\tRaubac’s earnings per share (EPS) will increase by $0.57.\tRaubac’s earnings before taxes (EBT) will reduce by $8,000.\tRaubac’s net income will increase by $4,800.\t\u00a0\t\u00a0\t\u00a0\tThe management team at Cryser Electronics Inc., manufacturer of electrical generators, aims to increase the company’s market share by 20% by the end of 2017. To achieve this target, Marcus, the marketing manager, assigns specific sales targets to individual salespeople and retailers. In this scenario, the sales target is a(n) __________.\t\u00a0\tbehavioral goal\tproject goal\ttask goal\tobjective goal\t\u00a0\t\u00a0\t\u00a0\tThe CEO of Wrenn Corporation is convicted of committing accounting fraud. After several in-depth investigations, it is found that although the CEO of the company was not aware of the fraud, he received 1.5 million dollars in the form of bonuses and stock profits during the company’s fraudulent period. The Securities and Exchange Commission orders the company to restate its financial position and furnish the correct financial statements. As per the Sarbanes-Oxley Act, which of the following is a likely consequence that will follow?\t\u00a0\tThe CEO will be held personally liable for the company’s misconduct during the fraudulent period.\tThe CEO will be asked to return the money that he or she received during the company’s fraudulent period.\tThe company will be allowed to grant personal loans to its executives provided that it can prove the creditworthiness of the executives.\tThe company will be asked to merge its auditing and consulting functions.\tCalculate the cash flows from financing activities based on the information given below.\t\u00a0\tDepreciation $ 770\tPurchase of machinery 4,000\tIncrease in fixed asset 900\tPayment of dividend 600\tIssuance of short-term debt 1,500\tRepayment of long-term debt 5,700\tIncrease in bank borrowings 6,200\t\u00a0\t\u00a0\t$1,400\t$630\t$2,000\t$4,130\tCalculate the net income of Tinekal Corporation from the following information.\t\u00a0\tDepreciation expense $ 850\tRent expense 500\tSalaries expense 700\tSupplies expense 650\tInterest expense 400\tRevenue from sales 5,000\tProfit from sale of assets 1,000\tDividend 700\t\u00a0\t\u00a0\t$2,600\t$3,600\t$2,900\t$1,900\t\u00a0\t\u00a0\t\u00a0\t\u00a0\tOmega Corp. released the unaudited financial statement prepared by its accountants. According to the statement, the profit margin of the company has increased. The sales of its electronic appliances have also increased. Based on the unaudited financial statement, buying Omega Corp. shares would be a good investment.\t\u00a0\t\u00a0\t\u00a0\tWhich of the following, if true, casts the most doubt on the conclusion?\t\u00a0\tOmega Corp. does not maintain more than a month’s supply of inventory.\tThe sales of other products of Omega Corp. have not shown the increase that the sales of electronic appliances have shown.\tThe earnings reported in the audited financial statement for Omega Corp. are lower than that reported in the unaudited financial statement.\tThe fixed expenses of the company have increased significantly.\t\u00a0\t\u00a0\tBrightLife, a leading insurance company, provides incentives to salespeople based on the number of prospective customers they meet in a day. The salespeople, however, often spend time with their friends and then claim to have met the prospective customers. They are paid incentives based on their claims. The company’s CEO realizes that the number of customers the company has is significantly less compared to the number of prospective customers that the salespeople claim to have met. To rectify the unethical behavior of the salespeople, the company now pays incentives based on the number of sales each person makes. Which of the following could be a cause for the salespeople’s unethical behavior?\t\u00a0\tMotivated blindness\t\u00a0\tIndirect blindness\t\u00a0\tIll-conceived goals\t\u00a0\t\u00a0\tMaertge Airlines purchases an aircraft for $84,000,000 on January 1, 2016. The residual value of the aircraft is estimated at $7,500,000, and its useful life is estimated at 25 years. Applying the double-declining-balance method of depreciation, the depreciation expense recognized for the year ended December 31, 2018 will be __________.\t\u00a0\t$6,182,400\t$3,096,576\t$5,687,808\t$6,720,000\t\u00a0\t\u00a0\tLuisana runs a clothing boutique that sells designer clothes. In order to expand the clothing collection in the boutique, Luisana wants to buy some clothes from a fashion designer. After examining Luisana’s audited financial statements, the fashion designer concludes that she is assured a collection from Luisana.\t\u00a0\t\u00a0\t\u00a0\tWhich of the following statements will weaken the argument?\t\u00a0\tThe fashion designer makes her collections within two months of sale.\tLuisana’s liquid assets are just enough to meet her current liabilities.\tLuisana’s boutique faces increased competition from other designer boutiques.\tLuisana has owned the boutique for only three years and has no prior experience of running a business.\t\u00a0\t\u00a0\tWarmLiquid Corp., a manufacturer of water heaters, produces 30 water heaters per week. Past records indicate that 10% of total water heaters produced in a week are likely to be defective. Suppose a quality check was conducted on a sample of six water heaters. What is the probability that four out of six water heaters will be defective?\t\u00a0\t0.08\t\u00a0\t0.56\t\u00a0\t0.46\t\u00a0\t0.76\t\u00a0\t\u00a0\t\u00a0\tIn an apparel store, one individual is assigned the task of recording the cash received from customers. Another individual is responsible for the creation and handing over of credit memos to customers. These measures are taken to avoid the risk of fraud. Which of the following principles of internal control activities does this scenario best illustrate?\t\u00a0\tPhysical controls\tDocumentation procedures\tSegregation of duties\tIndependent internal verification\tGharial LLC is a company that manufactures and leases cars. To increase its production capacity, the CEO of Gharial LLC has decided to build a new manufacturing plant. The company requires a loan from a bank, and submits its financial statements to the bank. The CEO believes that the loan will be approved because of the company’s liquidity.\t\u00a0\t\u00a0\t\u00a0\tWhich of the following strengthens the CEO’s argument?\t\u00a0\tThe cost of building the manufacturing plant will be offset by the profit Gharial LLC earns.\tGharial LLC’s financial statements show a positive working capital.\tThe manufacturing plant will be amortized over the next thirty years.\tGharial LLC’s earnings per share are equal to that of other similar companies.\t\u00a0\t\u00a0\tTelda Corp. is a large accounting firm. It has an office in each of the 27 states of Kavenia.\t\u00a0\t\u00a0\t\u00a0\tThe chairperson of Telda Corp.: I believe that if employees work in the same office for a long time, issues like favoritism, complacency, and misuse of authority are likely to develop. Therefore, I propose a policy that requires at least the employees in managerial positions and above to be transferred to a different office every five years. This policy will be well received by our employees and discourage them from leaving our company.\t\u00a0\t\u00a0\t\u00a0\t\u00a0\t\u00a0\tWhich of the following statements, if true, would strengthen the chairperson’s argument?\t\u00a0\tCultural differences may lead to different working styles in the different office locations of Telda Corp.\tIntroducing policy changes without consulting the relevant stakeholders is against the work culture of Telda Corp.\tThe technical skills required to work vary from team to team in Telda.\tRotating employees among different office locations leads to greater employee cohesion in companies.\tSecaucuss Co. has been in the business of manufacturing office supplies for the last five years. Recently, the company issued more shares to the public to raise capital for its expansion. Expanding its operations into office maintenance helped it generate additional cash inflows. Since the company expanded and issued more shares, the stockholders’ equity should also have increased. However, the stockholders’ equity went down this year.\t\u00a0\t\u00a0\t\u00a0\tWhich of the following statements best explains why the stockholders’ equity went down?\t\u00a0\tThe company purchased some new machines to speed up its manufacturing process.\tThe company employed a predatory pricing strategy to increase its market share.\tThe company collected revenue from services provided on an accrual basis.\tThe company declared a 2-for-1 stock split during the current year.\tReinek Company sold a fixed asset for $25,000. The asset was originally purchased at a cost of $64,000. On the date of sale, the accumulated depreciation was $53,000. Calculate the gain or loss on the sale of the asset.\t\u00a0\tLoss of $39,000\t\u00a0\tGain of $14,000\t\u00a0\tLoss of $36,000\t\u00a0\tGain of $25,000\t\u00a0\tCardice Services Inc. employs more than 5,000 telephone operators globally to address customer complaints. To improve the response time for addressing these complaints, the management decides to automate the responses to all the frequently asked queries. The management predicts that at least 60% of the customer queries will be resolved without the need for human intervention. If the company implements the process, at least 2,500 telephone operators will lose their jobs. To oppose the management’s decision all the employees threaten go on an indefinite strike. Which of the following contingency approaches is commonly used to overcome resistance in such situations?\t\u00a0\tExplicit coercion\tFacilitation and support\tParticipation and involvement\tNegotiation and agreement\tFrom the information given below, calculate the net cash flows from operating activities using the indirect method.\t\u00a0\tNet income $170,000\tDepreciation 5,750\tLoss on disposal of plant asset 4,000\tIncrease in inventory 7,500\tIncrease in prepaid expenses 5,460\tDecrease in accounts payable 6,750\t$160,040\t$152,040\t$173,540\t$176,460\tElanke, an owner of a restaurant, has the following financial information for the year ending December 31, 2016.\t\u00a0\t\u00a0\t\u00a0\tRevenue earned $410,000\tCash received from customers 300,000\tExpenses incurred in the purchase of ingredients 250,000\tDepreciation incurred during the year 700\tCash paid for miscellaneous expenses incurred in the year 2015 120,000\t\u00a0\t\u00a0\t\u00a0\t\u00a0\tBased on the accrual basis of accounting, Elanke’s net income for the year is __________.\t\u00a0\t$159,300\t$39,300\t$339,300\t$459,300\t\u00a0\t\u00a0\tA company issues 100,000 shares at $50 per share. It has a debt-equity ratio of 2:1. If the company announces a 3-for-1 stock split, what will be the result?\t\u00a0\tThe total stockholder’s equity will increase and the debt-equity ratio will decrease.\tThe total stockholder’s equity will decrease and the debt-equity ratio will remain unchanged.\tThe total stockholder’s equity and the debt-equity ratio will decrease.\tThe total stockholders’ equity and the debt-equity ratio will remain unchanged.\tCalculate the operating profit or (loss) from the information given below.\t\u00a0\t\u00a0\t\u00a0\tSales revenue $320,000\tSales returns 11,000\tCost of goods sold 210,000\tSelling expense 23,520\tAdministrative expense 46,270\tMarketing expense 26,880\tResearch and development 6,300\t\u00a0\t\u00a0\t($3,970)\t$3,970\t$7,030\t($7,030)\t\u00a0\t\u00a0\tThe HR manager of Delta Corp.: According to our rewards and recognition program, employee achievements are acknowledged and employees are given gift vouchers through emails on reaching milestones and targets. I feel this is not enough to make employees feel appreciated. In my previous company, work anniversaries and professional achievements were celebrated in organization-wide meetings, where the concerned employee would be publicly rewarded. After all, I would love it if my efforts were recognized like this! Therefore, such an idea would be a great success in our company.\t\u00a0\t\u00a0\t\u00a0\tWhich of the following statements, if true, weakens the HR manager’s argument?\t\u00a0\tThe HR manager of Delta Corp.: According to our rewards and recognition program, employee achievements are acknowledged and employees are given gift vouchers through emails on reaching milestones and targets. I feel this is not enough to make employees feel appreciated. In my previous company, work anniversaries and professional achievements were celebrated in organization-wide meetings, where the concerned employee would be publicly rewarded. After all, I would love it if my efforts were recognized like this! Therefore, such an idea would be a great success in our company.\t\u00a0\tEmployees are not motivated to perform well at their jobs if their work is not appreciated and rewarded.\tThe HR manager’s previous company did not offer promotions to its employees easily.\tDelta Corp.’s policy requires the CEO of the company to be present in every town hall.\tDelta Corp. does not have sufficient funds to organize frequent town halls.\tCalculate the cost of goods sold based on the following information.\t\u00a0\t\u00a0\t\u00a0\tInventory at the beginning of 2016 $ 54,000\tPurchases 450,000\tPurchase returns 12,800\tInventory at the end of 2016 60,000\t\u00a0\t\u00a0\t$443,200\t$431,200\t$491,200\t$444,000\tEarnings per share (EPS) is an indicator of a company’s profitability and how its stocks are valued. EPS of a company is directly proportional to its net income. The net income of Tolut Inc. for this year has decreased by 10 percent from last year’s figures. Therefore, the company’s EPS would be less than what it was last year.\t\u00a0\t\u00a0\t\u00a0\tWhich of the following statements, if true, strengthens the argument?\t\u00a0\tTolut Inc.’s stocks were undervalued in the market last year.\tA high EPS indicates that the company has a high potential for growth in the future.\tTolut Inc. has issued additional common shares in the current year.\tEarnings per share do not necessarily fall every time there is a rise in the taxes paid by the company.\tRaetal Inc. acquired 2,000 shares of its own stock of par value $1 for $20 per share. Which of the following is the correct journal entry to record this transaction?\t\u00a0\tTreasury Stock \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a040,000\t\u00a0\tCash \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 40,000\t\u00a0\tTreasury Stock \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a02,000\t\u00a0\tCommon Stock \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 2,000\t\u00a0\tTreasury Stock \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a02,000\t\u00a0\tCash \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 2,000\t\u00a0\tCash \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a040,000\t\u00a0\tTreasury Stock \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a0 \u00a040,000\tLeadership roles require the display of classic extrovert behavior such as speaking confidently in public, building large social networks, and allowing your successes as well as failures to be scrutinized by your stakeholders. These abilities are so integral to leadership roles that people who step into such roles learn to master extrovert behavior regardless of their actual personalities.\t\u00a0\t\u00a0\t\u00a0\tWhich of the following can be inferred from the given passage?\t\u00a0\tOne can acquire extrovert behavior by becoming a leader.\tHaving large social networks helps in the development of public-speaking skills.\tLeaders should learn from both their successes and their failures.\tPeople who are extroverted become successful leaders.\tJanet works as a senior software developer in a multinational IT firm. She prefers to work as an individual contributor and volunteers to work on challenging projects. The firm encourages Janet and other people like her by assigning them to projects that require a great deal of innovation. The firm motivates Janet by appealing to her need for __________.\t\u00a0\tpower\tsecurity\tachievement\taffiliation\tCalculate the revenue for the year ending December 31, 2016, based on the information given below.\t\u00a0\t\u00a0\t\u00a0\t2016 2017\tRetained earnings, January 1 $14,500 \u00a0 \u00a0 \u00a0 \u00a0 $ \u00a0 \u00a0 \u00a0 X\tRevenue for the year Y 48,500\tExpenses for the year 44,800 42,700\tDividends paid 3,500 5,700\t\u00a0\t\u00a0\tThe ending balance of retained earnings on December 31, 2017, is $18,500.\t\u00a0\t$15,400\t$52,200\t$18,400\t$33,800\tThe board of directors of Yudel Corp. is looking for a new managing director for the company. They find a candidate, Linda, who is hardworking, passionate, and confident. These are the characteristics that all the past leaders of Yudel Corp. had in common. Therefore, the board concludes that hiring Linda as the new managing director will contribute positively to the company’s success.\t\u00a0\t\u00a0\t\u00a0\tThe board of directors relies on the assumption that:\t\u00a0\tLinda has worked in companies similar to Yudel Corp. in the past.\tthe leaders of other companies have characteristics in common with the leaders of Yudel Corp.\tLinda will not have any other job offer to consider when Yudel Corp. offers her the position of managing director.\tLinda’s goals, as a leader, are compatible with the culture and vision of Yudel Corp.\tFinancial analyst: Linksus Tech is a company that manufactures drill bits and screwdrivers. Over the last year, its sales have not shown a significant increase. The company has a large quantity of inventory on hand, its accounts receivable have doubled, and its accounts payable have increased threefold. Given this, the company should try to realize its current assets at the earliest to stay afloat. \u00a0\u00a0\t\u00a0\t\u00a0\t\u00a0\tWhich of the following, if true, would strengthen the argument?\t\u00a0\tLinksus Tech has applied for a short-term loan to meet its working capital requirements.\tThe current liabilities are expected to be due within the next three months.\tThe demand for the products sold by the company is expected to increase.\tThe company will introduce a much-awaited new product into the market in the following year.\tNeha is a communications manager in a reputed software company. She firmly believes that men do not prefer working with women supervisors because they think women are inferior to them. Jordon is Neha’s manager an<\/p>\n","protected":false},"excerpt":{"rendered":"
BUS 475 Capstone Final Examination Part 2\u00a0 \u00a0 A company declared a cash dividend of $8560 on December 5 2015. The company made a cash dividend payment on January 8, 2016. What is the cumulative effect of the declaration and Read More …<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-205041","post","type-post","status-publish","format-standard","hentry"],"_links":{"self":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/205041","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/comments?post=205041"}],"version-history":[{"count":0,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/posts\/205041\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/media?parent=205041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/categories?post=205041"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.benedictsol.com\/blogs\/wp-json\/wp\/v2\/tags?post=205041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}