Thomas and his wife Diana have operated their own children’s daycare

Thomas and his wife Diana have operated their own children’s daycare for the last three years. They also own the daycare facility, a building and the adjacent land located on 1322 Glades Road. They have a limited amount of working capital but do not foresee the need to make additional capital improvements in the near term. Their total business assets are about $250,000 with a $120,000 mortgage on the building as their only liability. In recent years they have not kept exact records, but have been able to withdraw any unneeded assets at the end of the year, which totaled approximately $50,000 in cash in 2013.

In 2013 they reported a net income of $85,000. In addition, Thomas has used his personal car for business travel and has charged the business mileage at the appropriate mileage when he has traveled to Miami for continuing educational credits and Diana has traveled to New York once each year for a trip with girlfriends and to attend a conference on childhood development. Although Thomas and Diana have never been sued, in recent months they have started to think about possible legal liability.

As a good friend of Thomas and Diana and a CPA, what is your opinion about incorporating the business going forward? List at least two reasons for or against incorporating, and any change the S-corp status would have on their taxable income from the company?

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You are the CEO of MegaGlobe Business Solutions, a financial consulting corporation

Scenario: You are the CEO of MegaGlobe Business Solutions, a financial consulting corporation based in Chicago that has just recently opened new offices in São Paulo, Brazil and Shenzhen, Guangdong, China. As part of this transition, your employees will now be working collaboratively with employees at these locations to provide financial consulting services in these new markets. To assist with the transition, you will develop an internal leadership blog for your employees that addresses the implications of leading within a culturally-diverse and changing global business environment. This blog should focus on the need to positively adapt to a variety of leadership styles and individual differences within these cultures.

View the videos listed in this week’s classroom materials for ideas about how to effectively lead, motivate, and communicate with your employees about the need to adapt within this changing business environment.

Write a 700- to 1,050-word internal leadership blog using the Leadership Blog template, and include the following:

  Explain the implications of leading within a changing global business environment.
Describe the Team Leadership Model and how this relates to your current business practices.
Outline positive aspects of gender, diversity, culture, and teamwork that can improve overall business performance.
Apply principles of motivational leadership within a variety of diverse cultures.
Use at least one image, photo, chart, or graph to deliver a key concept within your blog.

Format your assignment consistent with APA guidelines.

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MGMT 3560 Homework Assignment No. 1

MGMT 3560 Homework Assignment No. 1

Homework Assignment No. 1

Instructions: Before you answer the questions below, read the article by Bill Sells that is also posted in “Course Materials.”

1. After reading Bill Sells’ article in the Harvard Business Review, when do you believe corporate managers should be convicted of crimes for their business-related actions?

2. Do either of you know anybody who suffers from an asbestos-related disease?  If so, please explain under what circumstances the person(s) was (were) exposed to asbestos.

3. Look up the definitions of murder and manslaughter.  Is it possible that a corporate plant manager, or higher up, could be charged with these crimes if he/they knew about the severe health dangers (toxins) inside the plant but covered up such dangers from the plant workers, who, years later, died as a result of the long-term/progressive effects of the toxic exposure?  Why/why not?

4. Can a company itself ever be criminally liable?

5. One of Bill Sells’ points is that for the corporate manager, it is often very difficult to distinguish between an immoral/unethical act and a criminal act.  Do you agree?  Why/why not?

6. Based on your review of his article, how do you think Bill Sell felt (Mr. Sells died a few years ago) about his experiences as a Johns-Manville plant manager?  Did he feel guilty, remorseful, mad, sad, angry, etc.?  Please explain.

7. What duty, if any, does a company have to its employees regarding safety conditions at the work site?

8. In the last few years, top executives at some of the country’s biggest companies (R.J. Reynolds, WorldCom, Adelphia, Time Warner, Arthur Andersen, Bristol Meyers, Global Crossing, Marsh, AIG insurance Cos.) have been investigated for a variety of criminal acts.  Do you think most of these folks receive the same type of justice as a poor person?  Why/why not?

9. Can the same act be both a crime and a tort?  If so, please provide an example.  If it is not possible, please explain.

10. Please describe/define the term “white collar crime.”  Give a few examples.

11. If (a) you work for an employer who asks you to help “cook the books,” and (b) you comply with her request, could you face tort liability, criminal liability, or both?  Why/why not? Also, if you had a license to practice accounting or law, could you lose your license if you followed her instruction? Why/why not?

12. Identify the costs for businesses associated with unethical behaviors.

a. Legal costs
b. Theft costs
c. Recruitment and turnover costs
d. Monitoring costs
e. All of the above

13. Who theorized that individuals are born with a soul- consisting of mind, emotions and desires- that forms an individual’s inner essence?

a. Socrates
b. Plato
c. Warren Buffet
d. Mark Zuckerberg
e. (a) and (b)

14. The famous “Heinz Dilemma” concerned:

a. Whether the company that produces Heinz Ketchup should have laid off 2500 of its most senior employees during the height of the Great Recession (October, 2008).
b. The stages of cognitive development.
c. The stage of moral development.
d. The moral dimensions of human nature at birth.
e. (a) and (d)

15. Please identify a reason employees often do not speak up when they observe unethical conduct.

a. Fear others will view them as a “rat,” “fink,” “ratfink,” “troublemaker,” “sh_ _disturber,” etc.
b. Fear of damaging his/her relationship with the person committing the unethical act.
c. Fear of retaliation from the individual committing the unethical act.
d. The belief that management – even if informed about the ethical transgression – would not respond adequately, and, thus, nobody would gain anything by him/her speaking up.
e. All of the above.

16. The term stakeholder is synonymous with shareholder:

a. True
b. False

17. The individual who formulated the Heinz Dilemma:

a. Jean Piaget
b. Lawrence Kohlberg
c. Teresa Heinz
d. Joseph Heinz
e. Andrew Carnegie

18. In the Fall Quarter 2015, a MGMT 3560 student told me that – during her job interview-her current employer spent most of the interview discussing the company’s emphasis on ethical conduct. Clearly, the interviewers wanted to indicate during the interview that their company was ethical.

What percent of surveyed Americans believe it is “critical” or “important” to work for an ethical company?
a. 10%
b. 25%
c. 50%
d. 75%
e. Over 90%

19. Please identify the most difficult ethical choice from the menu below.

a. Truth vs. Loyalty
b. Individual vs. Community
c. Short term vs. Long term
d. Right vs. Wrong
e. (a) – (c)

20. Sadly, employees often behave unethically to be a “team player.” This type of behavior is especially prevalent in employees with:

a. Low self-esteem
b. A weak sense of moral identity
c. No/insufficient moral courage
d. Low tolerance for conflict with other
e. All of the above

21. Cognitive dissonance occurs when:

a. A person is compelled to take action (because of his/her moral beliefs).
b. A person holds inconsistent or contradicting attitudes and beliefs, which creates an unpleasant state of mind.
c. A person is born with inherited sin
d. A person is born “good”.
e. (c) and (d)

22. _________________ is the set of principles a person uses to determine whether an action is good or bad.

a. Action sequence
b. Morality
c. Ethics
d. Integrity
e. Human nature

23. Based on studies, when do individuals begin to lie?

a. Soon after they can speak.
b. Approximately, ages 5-7 years old.
c. Approximately, ages 4-5 years old.
d. Approximately, ages 6-8 years old.

24. Again, based on studies, what percentage of adult Americans – regularly – lie?

a. 20%
b. 25%
c. 50%
d. 75%
e. Over 90%

25. Please identify a type of ethical dilemma based on competing values.

a. Short term vs. Mercy
b. Individual vs. Truth
c. Loyalty vs. Community
d. Justice vs. Mercy
e. Community vs. Loyalty

26. Why does a good person behave unethically?

a. He/she may not have intended to generate the unethical outcome which resulted from his/her conduct.
b. He/she may have chosen one set of values over a competing set of values.
c. He/she may have justified his/her unethical behavior based on a reason he/she considered more important.
d. He/she may have chosen to remain silent in the face of unethical behavior by others (he/she may even have opted not to prevent the unethical behavior from continuing) for certain compelling reasons, such as fear of retaliation.
e. All of the above

27. Kohlberg believed that most adults were – as respects moral development – at the _____ level.

a. Conventional
b. Post-conventional
c. Pre-conventional
d. Unconventional
e. B and d.

28. In Kohlberg’s stages of moral development, there are _____ levels, each consisting of ____ stages.

a. Two, three
b. Two, two
c. Three, two
d. Four, three
e. Four, two

29. Adam Smith believed in which of the following:

a. Freedom and liberty are essential values.
b. The great majority of free people naturally are selfish.
c. The great majority of free people will elect to enter product and labor markets where there is the greatest need and opportunity.
d. All of the above.
e. A and c.

30. As respects resume misrepresentations, researchers have discovered that those applying for the highest-level job openings very rarely provide misinformation.

a. True.
b. False

31. What president issued Federal Sentencing Guidelines with the intention of encouraging, though not requiring, managers to implement ethical best practices.

a. Bill Clinton
b. George H.W. Bush
c. George W. Bush
d. Barack Obama
e. Jimmy Carter

32. It is illegal to ask an ex-employer: “would you hire this person again?”

a. True
b. False

33. The FBI is disallowed (by law) from conducting background checks for private businesses.

a. True
b. False

34. Prof. Collins discusses how each decision and action is subject to ethical analysis. An “action sequence” is comprised of ow many parts :

a. One
b. Two
c. Three
d. Four

35. There is a federal statute which regulates the use of polygraph tests in hiring.

a. True
b. False

36. John Stuart Mill was Karl Marx’s co-author.

a. True
b. False

37. The terms minimum wage and living wage are synonymous.

a. True
b. False

38. Adam Smith was, among other things, _______ philosopher.

a. American
b. English
c. Irish
d. Scottish
e. None of the above

39. Our country’s founding fathers adopted Adam Smith’s basic guidelines of capitalism.

a. True
b. False

40. Corporations can never be guilty of crimes, but the people who work for corporations may be – and frequently are- found guilty of crimes related to their corporate activities.

a. True
b. False

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FIN 515 Week 7 Project – Capital Budgeting Analysis

FIN515: Week 7 Project – Capital Budgeting Analysis

Once again, your team is the key financial management team for your company. The company’s CEO is now looking to expand its operations by investing in new property, plant, and equipment. Your team recently calculated the WACC for your company, which will now be useful in evaluating the project’s effectiveness. You are now asked to do some capital budgeting analysis that will determine whether the company should invest in these new plant assets.

The parameters for this project are:
Your team will be using the same company  Nike’s  for this project that you used in the Week 6 project. The company is now looking to expand its operations and wants you to do some analysis using key capital budgeting tools to do this. The parameters for this project are as follows.

The firm is looking to expand its operations by 10% of the firm’s net property, plant, and equipment. (Calculate this amount by taking 10% of the property, plant, and equipment figure that appears on the firm’s balance sheet.)

The estimated life of this new property, plant, and equipment will be 12 years. The salvage value of the equipment will be 5% of the property, plant and equipment’s cost.

The annual EBIT for this new project will be 18% of the project’s cost.

The company will use the straight-line method to depreciate this equipment. Also assume that there will be no increases in net working capital each year. Use the same marginal tax rate (35%)that you used in the Week 6 project.

The hurdle rate for this project will be the WACC that you calculated in Week 6.  WACC 7.6%

Deliverable for this Project
• Your calculations for the amount of property, plant, and equipment and the annual depreciation for the project
• Your calculations that convert the project’s EBIT to free cash flow for the 12 years of the project.
• The following capital budgeting results for the project
o Net present value
o Internal rate of return
o Discounted payback period.
• Your discussion of the results that you calculated above, including a recommendation for acceptance or rejection of the project

Once again, you may embed your Excel spreadsheets into your document. Be sure to follow APA standards for this project.

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FIN 515 Week 6 Project – Calculating the Weighted Average Cost of Capital

FIN515 Week 6 Project – Calculating the Weighted Average Cost of Capital

Once again, your team is the key financial management team for your company. The company’s CEO is now looking to expand its operations by investing in new property, plant, and equipment. In order to effectively evaluate the project’s effectiveness, you have been asked to determine the firm’s weighted average cost of capital. To determine the cost of capital, here is what you have been asked to do.

1. Go to Yahoo Finance (http://finance.yahoo.com) and capture the income statement information for the company you selected. (Be sure that your company has debt on their balance sheet. This will be required in your project.)

a. Enter your company’s name or ticker symbol. Your company’s information should appear.
b. Click on the Financials tab, and select the income statement option. Three years’ worth of income statements should appear. Copy and paste this data into a spreadsheet.
c. Repeat step b. above for the balance sheets of the company.
d. Click on “Historical Prices.” Capture the closing price of the stock as of the balance sheet date for the three fiscal years used in steps b and c above.

2. Calculate the Weighted Average Cost of Capital (WACC) for the company:

a. Cost of Debt

 
i. Determine the market value of the firm’s debt issues. Be sure to review the firm’s 10-K. Also, the website http://finra-markets.morningstar.com/BondCenter may be of assistance.
ii. You will need to calculate the firm’s composite YTM on its bonds. This can be achieved by calculating a weighted-average YTM for its bond issues.
iii. After calculating the YTM for the bond issues, calculate the firm’s after-tax cost of debt. If the firm’s marginal tax rate cannot be identified in its 10-K, assume that the tax rate will be 35%.

b. Cost of Equity

 
i. Calculate the firm’s cost of equity using the capital asset pricing model (CAPM). The formula for the CAPM is ri = rf + βi × (RMkt – rf).
ii. Assume the risk-free rate (rf) is the current rate of 10-year U.S. Treasury Bonds.
iii. Calculate the market rate (RMkt) by calculating the market return on the Standard & Poor’s 500 for the past 2 calendar years.
iv. The beta for the firm can be obtained from Yahoo! Finance.

c. Calculate the WACC

 
i. Determine the market capitalization of the firm’s common equity and preferred equity, if any.
ii. Determine the firm’s capital structure based on the market value of the firm’s equity and debt. The market value of the firm’s debt can be obtained from the Morningstar website, listed in the Cost of Debt section above.
iii. Calculate the WACC. As you recall, the formula for WACC is rWACC = E ÷ (E + D) rE + D ÷ (E + D) rD (1 – TC).

Deliverable

Prepare a narrated PowerPoint presentation using VoiceThread or WebEx that shows the steps you performed to calculate the WACC for your firm. Feel free to embed your Excel spreadsheets in the presentation to demonstrate your calculations. Be sure to discuss how the values were obtained or derived to arrive at your WACC result. Finally, be sure to discuss any strengths or limitations in the calculations you performed, and discuss your analysis about the overall validity of your results. Both members of the team must be part of the narration in the presentation.

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Selina just had her first baby a couple months ago and is determined

Client Profile: Selina Kyle

31     Female     70 bpm     5’7″     159 pounds     33%

Age: 31

Gender: Female

Resting Heart Rate: 70 bpm

Height: 5’7″

Weight: 159 lb

Body Fat Percentage: 33%

Selina just had her first baby a couple months ago and is determined to shed exess pregnancy pounds before Summer. Selina has very limited exercise experience. She did not play high school or college sports. Prior to having her first child, she did like to hike, go out dancing, and take the occasional yoga class. She is eager to start a program to lose the baby weight. She can dedicate 3 or 4 days per week to exercise and is willing to sign on for 12 weeks to start.

Client Calculations

  Using the information above, calculate the client’s BMR and DCR
Calculate the client’s Target Heart Rate using the Karvonen formula (you will determine the appropriate target heart rate for this client given the information gathered in the initial assessment and evaluation)

Include the following in your case study submission:

A description of your professional responsibilities as discussed in the stages of the drawing-in process (Unit 12)
Discussion of any fitness tests, methods of evaluation, and data collection used to assess and evaluate the client’s needs.
Explanation for your recommendations and any specific conditions presented by your client that are found in the evaluation. (Be sure to reference course concepts when discussing rationale for your recommendations.)
A detailed 12-week comprehensive and periodized training program including specific exercises, sets, repetitions, suggested rest times, etc. Use an integrated approach in your program recommendations.
Specific and detailed nutritional strategies with explanation as to how they will assist the client in meeting energy needs throughout the training program and achieving intended goal(s).

Keep in mind that a client should be able to take your program and put it into practice without having to contact you to clarify what you intended by your recommendations, or to explain parts of your program.

Include an explanation for WHY you listed and recommended what you did. Reference the concepts and theories covered in the course. Be sure to address why the program and exercises recommended are appropriate for the specific client given client history, current abilities, and intended goal(s). For example: if you are developing a program for a beginner client without any resistance training experience, explain how your program addresses the lack of experience, initial need for foundational development, process by which you would safely progress the client, etc. Tying your program to course concepts is a critical component of your case study.

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Steve is an avid runner and has been quite slim his whole life

Client Profile: Steve Rogers


27     Male     60 bpm     6′     178 pounds     11%

Age: 27

Gender: Male

Resting Heart Rate: 60 bpm

Height: 6’0″

Weight: 178 lb

Body Fat Percentage: 11%

Steve is an avid runner and has been quite slim his whole life. He runs moderate- to long-distances 3 or 4 days per week. Running is his only physical activity. Steve has never been interested in resistance training because it is not his strong suit. Steve recently decided that he is tired of being skinny. He would like to put on some size and muscle before he travels back to his hometown for a good friend’s wedding in 12 weeks.

Client Calculations

Using the information above, calculate the client’s BMR and DCR
Calculate the client’s Target Heart Rate using the Karvonen formula (you will determine the appropriate target heart rate for this client given the information gathered in the initial assessment and evaluation)

Include the following in your case study submission:

A description of your professional responsibilities as discussed in the stages of the drawing-in process (Unit 12)
Discussion of any fitness tests, methods of evaluation, and data collection used to assess and evaluate the client’s needs.
Explanation for your recommendations and any specific conditions presented by your client that are found in the evaluation. (Be sure to reference course concepts when discussing rationale for your recommendations.)
A detailed 12-week comprehensive and periodized training program including specific exercises, sets, repetitions, suggested rest times, etc. Use an integrated approach in your program recommendations.
Specific and detailed nutritional strategies with explanation as to how they will assist the client in meeting energy needs throughout the training program and achieving intended goal(s).

Keep in mind that a client should be able to take your program and put it into practice without having to contact you to clarify what you intended by your recommendations, or to explain parts of your program.

Include an explanation for WHY you listed and recommended what you did. Reference the concepts and theories covered in the course. Be sure to address why the program and exercises recommended are appropriate for the specific client given client history, current abilities, and intended goal(s). For example: if you are developing a program for a beginner client without any resistance training experience, explain how your program addresses the lack of experience, initial need for foundational development, process by which you would safely progress the client, etc. Tying your program to course concepts is a critical component of your case study.

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Today’s companies rely on managers to guide the daily process

Today’s companies rely on managers to guide the daily process by using human, technological, financial, and other resources to reach company goals. Managers are responsible for developing and carrying out this management process. Remember, a role is a set of behavioral expectations, or a set of activities that a person is expected to perform. Management roles are just these: sets of activities that managers carry out daily.

Managers’ roles fall into three basic categories.

Informational
Interpersonal
Decisional

Respond to the following:

Discuss why Interpersonal is the most important to a manager.
Explain management processes used in the Interpersonal category.
Identify the types of managerial responsibilities that would fall into the Interpersonal category.
Use a reference that detail characteristics commonly attributed to a management process related to the managerial role of interpersonal.

   Discuss how all 3 categories differ from one another

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Jeff Jacobs is a junior accountant with the Public Accounting firm

Jeff Jacobs is a junior accountant with the Public Accounting firm of Maxwell and King LLP.  Jeff was assigned to do the audit of the Astor Electronics Inc. audit. The incharge auditor had informed Jeff that the client had good controls over the procurement process but it was important to determine if they were operating effectively so that a proper assessment of the control risk could be made. Jeff decided to perform test of controls over procurement transactions using attribute sampling.

Jeff figured that a tolerable exception rate of 9% and a 5% risk of assessing control risk too low were appropriate for the tests he planned to perform. He had no idea how many deviations actually might exist in the population so he set the estimated population exception rate at 2% to be conservative. Based on the tables Jeff selected a sample of 70 items.

Because Jeff believed larger items deserved more attention than smaller items, he selected 50 items with values greater than or equal to $2,500 and 20 items with values less than $2,500. He thought it would be most appropriate to select transactions near the end of the fiscal year, so he randomly selected items for testing from the last two months.

Jeff was relieved when he found only six deviations from prescribed controls. One deviation was a missing supplier’s invoice. Jeff spoke to the client who informed him that they lost a few invoices during their recent move. Jeff accepted the client’s explanation since this was the only supplier invoice missing from the results of his work.  Two deviations were missing approval signatures by an authorized manager. The manager explained that he had not approved the supplier invoices because he had been out of the office on the date the invoices were received and entered into the accounts payable system. He reviewed the two supplier invoices in question and told Jeff there were no problems with them. The other three deviations involved dollar errors. Two were errors in the extension of the supplier invoices that had not been detected by the client and the other was a misclassification error between expenses, which did not affect net income. Jeff considered these three dollar errors to be the only three actual control deviations.  Based on the tables, using a 5% risk of assessing control risk too low, three deviations found and a sample 70, Jeff determined that the computed upper exception rate was 10.7.

Based on these results, Jeff concluded that that controls over procurement transactions were effective and accordingly he assessed the control risk at moderate (below maximum).

Required

Briefly explain eight deficiencies you note in Jeff’s attribute sampling application. In this case what the auditor should write down as note for doing sampling, could I have help with this kind of question to understand sampling ?

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The West End Boutiques company was founded by Libbie Williams in 1990

The West End Boutiques company was founded by Libbie Williams in 1990 with a single store in College Station, Texas, and the company now has 21 shops located in the triangle of Dallas, San Antonio, and Austin, Texas. Libbie was an accounting major in college, passed the entire CPA exam in her first attempt with high scores, and worked for one of the large CPA firms for 11 years prior to opening her first store. Based on her work experience, she fully understands the value of strong internal controls. Further, she recently selected a state-of-the art accounting system that connects all of her stores’ financial transactions and reports.

Libbie employs two internal auditors who monitor internal controls and also search for ways to improve operational effectiveness. As part of the monitoring process, the internal auditors take turns conducting periodic reviews of the accounting records. For instance, the company takes a physical inventory at all stores once each year and an internal auditor oversees the process. Chris Domain, the most senior internal auditor, just completed a review of the accounting records and discovered several items of concern. These were:

Physical inventory counts varied from inventory book amounts by more than 6% at two of the stores. In both cases, physical inventory was lower.
Two of the stores seem to have an unusually high amount of sales returns for cash.
In 9 of the stores, gross profit has dropped significantly from the same time last year.
At 4 of the stores, bank deposit slips did not match cash receipts.
One of the stores had an unusual number of bounced checks. It appeared that the same employee was responsible for approving each of the bounced checks.
In 7 of the stores, the amount of petty cash on hand did not correspond to the amount in the petty cash account.

Requirements

For each of these concerns, identify a risk that may have created the problem.
Recommend an internal control procedure to prevent the problem in the future.

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