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apu acct 300 all week forum




Question;Week 2 forum;The following is an excerpt from a conversation between Eric;Jackson and Carlie Miller. Eric is debating whether to buy a stereo system from;First Audio, a locally owned electronics store, or Dynamic Sound Systems, an;online electronics company.;Eric: Carlie, I don?t know;what to do about buying my new stereo.;Carlie: What?s the problem?;Eric: Well, I can buy it locally at First Audio for;$890.00. But Dynamic Sound Systems has the same system listed for $899.99.;Carlie: So what?s the big deal? Buy it from First;Audio.;Eric: It?s not quite that simple. Dynamic Sound;Systems said something about not having to pay sales tax, since I was out of;state.;Carlie: Yes, that?s a good point. If you buy it at;First Audio, they?ll charge you 6% sales tax.;Eric: But Dynamic Sound Systems charges $13.99 for;shipping and handling. If I have them send it next- day air, it?ll cost $44.99;for shipping and handling.;Carlie: I guess it is a little confusing.;Eric: That?s not all. First Audio will give an additional;1% discount if I pay cash. Otherwise, they will let me use my VISA, or I can;pay it off in three monthly installments.;Carlie: Anything else???;Eric: Well? Dynamic Sound Systems says I have to;charge it on my VISA. They don?t accept checks.;Carlie: I am not surprised. Many online stores don?t;accept checks.;Eric: I give up. What would you do?;1. Assuming that Dynamic;Sound Systems doesn?t charge sales tax on the sale to Eric, which company is;offering the best buy?;2. What might be some;considerations other than price that might influence Eric?s decision on where;to buy the stereo system?Week 3 forumThe following is an;excerpt from a conversation between two sales clerks, Tracy Rawlin and Jeff;Weimer. Both Tracy and Jeff are employed by Magnum Electronics, a locally owned;and operated electronics retail store.Tracy: Did;you hear the news?Jeff: What;news?Tracy;Bridget and Ken were both arrested this morning.Jeff;What? Arrested? You?re putting me on!Tracy: No;really! The police arrested them first thing this morning. Put them in;handcuffs, read them their rights? the whole works. It was unreal!Jeff: What;did they do?Tracy;Well, apparently they were filling out merchandise refund forms for fictitious;customers and then taking the cash.Jeff: I;guess I never thought of that. How did they catch them?Tracy: The;store manager noticed that returns were twice that of last year and seemed to;be increasing. When he confronted Bridget, she became flustered and admitted to;taking the cash, apparently over $ 15,000 in just three months. They?re going;over the last six months? transactions to try to determine how much Ken stole.;He apparently started stealing first.;Suggest;appropriate control procedures that would have prevented or detected the theft;of cash.Week 4 forumJas Carillo was discussing;summer employment with Maria Perez, president of Valparaiso Construction;Service:Maria: I?m;glad that you?re thinking about joining us for the summer. We could certainly;use the help.Jas;Sounds good. I enjoy outdoor work, and I could use the money to help with next;year?s school expenses.Maria: I?ve;got a plan that can help you out on that. As you know, I?ll pay you $4 per;hour, but in addition, I?d like to pay you with cash. Since you?re only working;for the summer, it really doesn?t make sense for me to go to the trouble of;formally putting you on our payroll system. In fact, I do some jobs for my;clients on a strictly cash basis, so it would be easy to just pay you that way.Jas;Well, that?s a bit unusual, but I guess money is money.Maria;Yeah, not only that, it?s tax-free!Jas: What;do you mean?Maria;Didn?t you know? Any money that you receive in cash is not reported to the IRS;on a W-2 form, therefore, the IRS doesn?t know about the income?hence, it?s the;same as tax-free earnings.;a. Why;does Maria Perez want to conduct business transactions using cash (not check or;credit card)?;b. How;should Jas respond to Maria?s suggestion?Week 5 forumMarriott International, Inc., and Wyndham Worldwide Corporation;are two major owners and managers of lodging and resort properties in the;United States. Abstracted income statement information for the two companies is;as follows for a recent year;X;Marriott;Wyndham;X;(in millions);(in millions);Operating profit;before other expenses and interest;$695;$718;Other income;(expenses);36;12;Interest expense;(180);(167);Income before income;taxes;$551;$563;Income tax expense;93;184;Net income;$458;$379;Balance sheet;information is as follows;x;Marriott;Wyndham;x;(in millions);(in millions);Total liabilities;$7,398;$6,499;Total stockholders?;equity;1,585;2,917;Total liabilities and;stockholders? equity;$8,983;$9,416;The average liabilities;stockholders? equity, and total assets were as follows;x;Marriott;Wyndham;x;(in millions);(in millions);Average total;liabilities;$7,095;$6,582;Average total;stockholders? equity;1,363;2,802;Average total assets;8,458;9,384;1. Determine the following ratios for both companies (round to one;decimal place after the whole percent):a. Rate earned on total;assetsb. Rate earned on total;stockholders? equityc. Number of times;interest charges are earnedd. Ratio of liabilities;to stockholders? equity;2.;Analyze and compare the two comWeek 6 forumThe following conversation;took place between Dean Lancaster, vice president of marketing, and Dina;Conaway, controller of Redwood Computer Company:Dean: I am;really excited about our new computer coming out. I think it will be a real;market success.Dina: I?m;really glad you think so. I know that our success will be determined by our;price. If our price is too high, our competitors will be the ones with the;market success.Dean;Don?t worry about it. We?ll just mark our product cost up by 25% and it will;all work out. I know we?ll make money at those markups. By the way, what does;the estimated product cost look like?Dina;Well, there?s the rub. The product cost looks as if it?s going to come in at;around $1,000. With a 25% markup, that will give us a selling price of $1,250.Dean: I;see your concern. That?s a little high. Our research indicates that com-puter;prices are dropping and that this type of computer should be selling for around;$900 when we release it to the market.Dina: I?m;not sure what to do.Dean: Let;me see if I can help. How much of the $1,000 is fixed cost?Dina;About $300.Dean;There you go. The fixed cost is sunk. We don?t need to consider it in our;pricing decision. If we reduce the product cost by $300, the new price with a;25% markup would be right at $875. Boy, I was really worried for a minute;there. I knew something wasn?t right.;a. If;you were Dina, how would you respond to Dean?s solution to the pricing problem?;b. How;might target costing be used to help solve this pricing dilemma?Week 7 forumThe following is an excerpt from a;conversation between two employees of Linquest Technologies, Don Corbet and;Rita Shevlin. Don is the accounts payable clerk, and Rita is the cashier.Don: Rita, could I get your opinion on something?;Rita: Sure, Don.;Don: Do you know Margaret, the fixed;assets clerk?;Rita: I know who she is, but I don?t;know her real well. Why?;Don: Well, I was talking to her at;lunch last Tuesday about how she liked her job, etc. You know, the usual ? and;she mentioned something about having to keep two sets of books ? one for taxes;and one for the financial statements. That can?t be good accounting, can it?;What do you think?;Rita: Two sets of books? It doesn?t;sound right.;Don: It doesn?t seem right to me;either. I was always taught that you had to use generally accepted accounting;principles. How can there be two sets of books? What could be the difference;between the two? How would you respond to;Rita and Don if you were Margaret?;How would you respond to;Rita and Don if you were Margaret?;="msonormal">="msonormal">="msonormal">="msonormal">="msonormal">


Paper#44303 | Written in 18-Jul-2015

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