Kingdom Leasing Inc. agrees to lease jousting equipment to Knight Inc. on Jan 1,2012. They agree on the following terms: 1) The normal selling price of the jousting equipment is $325000 and the cost of the asset to Kingdom Leasing Inc. was $250000. Fair Value 325000 2) Knight will pay all maintenance,insurance,and taxes costs directly and annual payments of $60000 on Jan 1 each year. Residual Value 30000 3) The lease begins on Jan 1, 2012 and payments will be in equal annual installments. Lease term 10 4) The lease is noncancelable with no renewal option.
This reduction is expected to be completed by January 31, 2012 and will approximately cost $3 million dollars. The cost of terminating employees shall not be recorded in the year ended December 31, 2011. ASC 420-10-25-4 says, “An arrangement for one-time employee termination benefits exists at the date the plan meets all of the following criteria and has been communicated to employees.” Following these guidelines we do not meet requirements, because we have not communicated to the employees the benefits they will receive upon termination and Pharma Co. hasn’t specified the job classification of the 120 employees. Otherwise, this cost will be recognized when incurred at fair
6. What specific actions should Mr. Plummer take to solve Dasher’s lead-time and quality problems? Think beyond the bottleneck and consider also dasher’s business strategy. Shouldn’t allow changes by customers after order has been made Should pick up CNC or manual drilling according to the above rules ( in question 2). Should In your analysis, assume that Dasher operates 1 shift of 8 hours per day, 5 days a week and that September had 21 days, i.e.
Case 2: NeedsSpace NeedsSpace entered into an operating lease agreement with WeHaveIt to rent space for its corporate offices. Under ASC 840, for a lease to be classified as an operating lease it must meet 4 requirements: a transfer of ownership, a bargain purchase option, a lease term greater than or equal to 75 percent of the economic useful life of the asset, and a present value greater than or equal to 90 percent of the minimum lease payments. The case offers no details in regards to the dollar amount of the lease but it does state that there is no option to renew after the 10 year lease term. But there are certain provisions that exist in the contract that may incur costs for NeedsSpace during the lease term and at the conclusion of the lease due to the fact that the agreement calls for the lessee to perform general repairs and maintenance to the leased premises, and the lessor requires that any leasehold improvements be removed to return the premises to its original condition. NeedsSpace needs to account for these two provisions stipulated under the contract with WeHavelt in the following ways: Provision 1: “Lessor may require the lessee to perform general repairs and maintenance on the leased premises.” When NeedsSpace entered into the lease agreement, they became legally and contractually responsible to perform general repair and maintenance on the lease premises.
The size of the credit union does not matter, all credit union have a Board members that have the power to approve or denied any policy changes, refund fees to it members and increase or decrease of the interest rates. The board should implement its power wisely within guidelines of the business, while attending to its fiduciary responsibilities. In the past the Board members have used this power for their owned benefits. Two years ago the credit union was offering 2.50 percent on the savings accounts and 3.15 percent on the auto loans. The credit union was not making much of a profit.
From there I would narrow the finalists to the top two or three depending on statistics needed to make an informed decision on which company to use. I would know if I was finished when the remaining businesses are within reach, and just need a decision to make sure our program was accurately completed with positive qualities. 5. Petrie’s staff should not build their own unique system in-house because there are various systems available that possess the ability to meet all their company needs. There is no need to spend more money on a project that is already completed and available.
They stated that lower costs, and a world-class seaport as the reasons for the move. This emphasizes the company’s desires to reduce shipping costs and lower costs. In addition, there has been some conflict in regards to unionization. Since Washington State is a unionized State, while South Carolina is a right to work state, Boeing’s president was stated in a recorded interview saying "The overriding factor was not the business climate and it was not the wages we're paying people today. It was that we can't afford to have a work stoppage every three years."
Response to Client Request I Paper Memorandum To: Mark Taylor, CEO From: Subject: Required Reporting Date: December 20, 2010 This memo serves to provide information concerning required reporting of defined contribution, defined benefit and other postretirement plans as they relate to the acquisition of the new company. This memo also serves to provide recommendations to eliminate the two segments of the new acquisition. Defined Contribution Defined contribution is a pension plan where the “employer promises to contribute a certain amount into the plan each period (Schroeder, Clark, & Cathey., p.445).” Implementing a defined contribution pension plan necessitates disclosure of the plan in the financial statements, “the employee
Week 4 Assignment Question 12. Being employed at will, “your employer does not need good cause to fire you”, meaning they can terminate your job at any time with or without a good reason (Guerin, 2013). Usually, an employee who is at-will would have some kind of documentation to sign stating that they have been hired in that state, so there can be no law suit against the employers. So, the employer who was fired by the architecture firm cannot pursue any civil law suits since the employer doesn’t really need a reason. It could’ve been other reasons since it was already a week after the jury service, so I believe this is lawful.
freJHJSBJH Case : Bill French The Workings have been attached in the following Excel Sheet : Q1) Assumptions : | | | | 1) He has done the calculation using Average Figures of Product A, B & C. [Cooper's Concern] | 2) He also assumed that the ratio of Products A,B & C will remain constant next year. [Cooper's Concern] | 3) There would be no increase in Fixed assets/Fixed costs | | 4) There would be no change in Salary Structure and other variable costs | 5) There would be no change in the Dividend policy of the company | 6) When represented graphically, the behaviors of total revenues and total costs are linear in relation to units sold in a time period | 7) Selling price, variable cost per unit and total fixed costs are known and constant | Q2) Break even analysis by considering individual products A) Not taking into account Union Demand i.e no effect on Variable Cost | | Product A | Product B | Product C | Sales at Full Capacity | 2,000,000 | | | | | | | | | Actual Sales volume | 1,750,000 | 400,000 | 400,000 | 950,000 | Unit Sales price | 1.158857143 | 1.67 | 1.5 | 0.8 | Total sales revenue | 2028000 | 668000 | 600000 | 760000 | Variable Cost/Unit | 0.564285714 | 1.25 | 0.625 | 0.25 | Total Fixed Cost | 640000 | 170000.0000 | 275000.0000 | 195000.0000 | | | | | | Net Profit | 400500 | -2000 | 75000 | 327500 | Tax(0.5) | 200250.0000 | | | | Profit After tax | 200250.0000 | | | | Ratio | | | | | Variable Cost to Sales | 0.4869 | 0.7485 | 0.4167 | 0.3125 | Variable Income to Sales | 0.5131 | 0.2515 | 0.5833 | 0.6875 | Utilization of Capacity | 0.8750 | 0.2 | 0.2 | 0.4750 | B) Taking into Account Union Demand i.e. Variable Cost increases by 10% Sales at Full Capacity | 2,000,000 | | | | | | | | | Actual Sales