...Wednesday, March 13, 2013 Apache Questions 1. What risks does Apache face? Do they differ by country of property type? Do the risks of the major integrated oil companies differ from those faced by Apache or other independents? How does Apache’s operating strategy affect its risk exposures? 2. What is Apache doing now to manage risk? What risks are they attempting to hedge? What are its competitors doing? 3. What are the potential hazards Apache faces if it manages risk? 4. As a member of Apache’s board, how would you recommend they proceed? If they decide to manage risk, what steps should they take? Which risks should they shed? Which risks should they retain/keep? Should they manage some types of risks but not others? Some types of investment decisions but not others? How should FAS 133 affect their strategy? Case Study Questions Each team is required to address the four questions posted above. You should view your case report as a report to senior management or the board of directors. It is to provide the decision makers with all relevant information of a particular case and your policy recommendation, using the assigned questions as a guide. There is no formal size limit for a case report, but you should keep in mind that conciseness and clarity make reports more convincing and will be rewarded accordingly. In particular, a summary of the facts from the case should not include the facts that are not relevant to your analysis. An important...
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...For more classes visits www.snaptutorial.com ACCT 505 Week 1-7 All Discussion Questions ACCT 505 Week 1 Case Study ACCT 505 Week 2 Quiz Job Order and Process Costing Systems ACCT 505 Week 3 Case Study II ACCT 505 Week 4 Midterm Exam ACCT 505 Week 5 Measuring Performance - Course Project A ACCT 505 Week 6 Quiz Segment Reporting and Relevant Costs for Decisions ACCT 505 Week 7 Capital Budgeting Course Project ----------------------------------------------------------- ACCT 505 Final Exam For more classes visits www.snaptutorial.com ACCT 505 Final Exam ------------------------------ ACCT 505 Week 1 Case Study For more classes visits www.snaptutorial.com Top Switch Inc. designs and manufactures switches used in telecommunications. Serious flooding throughout the state of Tennessee affected Top Switch’s facilities. Inventory was completely ruined, and the company’s computer system, including all accounting records, was destroyed. Before the unfortunate incident, recovery specialists cleaned the buildings. The company controller is very nervous and anxious to recover whatever records he can to support the insurance claim for the destroyed inventory. After consulting with the cost accountant, they decide to retrieve the previous year’s annual report for the beginning inventory numbers. In addition, they also agreed that they need first quarter cost data. The cost accountant was working on the first quarter results before the storm hit, and to...
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...LAWS7012 | Business Taxation Assignment – Semester 1 | 2014 Important Facts to Note 1. The assignment is worth 40% of the assessment in this course. 2. The assignment has 2 questions. 3. You must submit your assignment before 4.00pm on Thursday, 17 April 2014. 4. Students must submit their assignment electronically via the Turnitin link [LAWS7012 | 2014 – Semester 1] in the Assignment Submission folder in the Assessment area of the course website in Blackboard. Online assignments do not require a separate cover sheet. Refer to documentation in the Assignment Submission folder on the naming requirements of the assignment file. 5. There is no prescribed word limit for this assignment and no penalties will be applied for students who exceed the suggested word limit. As a guide, your assignment could be completed in approximately 3,500 words. 6. Students must retain a hard copy of their submitted work. 7. Students need to be aware of and abide by the university’s policy on plagiarism. More detailed information on this issue can be found in: a. UQ Student Integrity and Misconduct Policy http://ppl.app.uq.edu.au/content/3.60.04-student-integrity-and-misconduct b. On-line Academic Integrity Tutorial https://www.uq.edu.au/integrity/Login.aspx?ReturnUrl=%25252fintegrity c. Law School Resource | Avoiding plagiarism http://www.law.uq.edu.au/?page=103927 8. Also, review Sections 5.3, 5.5 & 6.1 of the Course Profile for information on assessment procedures. In particular...
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...MGT 1203 International Trade Management Case I Overview and Rubric Breezy Air Filters - Redefining the Business Coming up for air Breezy Auto Parts has been supplying the North American automobile industry with carburetors and air filters for more than half a century. With revenues of about $100 million a year, it is a significant player in the parts industry. Initially, it supplied carburetors and filters to each of the Big Three domestic manufacturers. When foreign car manufacturers entered North America to set up manufacturing operations, Breezy also developed relationships with the newcomers. It redesigned some of its products to fit the foreign models. It also introduced electronic data interchange (EDI) to support just-in-time deliveries to all of its customers. As a result, it successfully realized its original corporate vision of becoming North America’s leading supplier of carburetors and air filters, a position it has occupied ever since. For the past 30 years, Breezy has counted on steady customers and steady revenues. The past two years, however, have raised significant concerns about the company’s future. The price of crude oil has been soaring as have gas prices at the pump. There have been temporary dips in price, but the overall trend is unmistakable: it will be far more expensive to drive in the future. As a result, car sales have flattened and in some cases declined. This is especially true of the big gas guzzling SUVs upon which the...
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...Homework on Relevant Cash Flow Calculations: (20 Points) Question 1: A Mini-case on Estimation of Cash Flows (8 Points) A firm is considering replacing an old machine at a cost of $110,000. The new machine will to last five years with zero salvage value. It will generate expected annual cost savings of $30,000. The current machine will last for another 10 years. The discount rate is 10 percent. Assume that tax rate is zero and the present machine is fully depreciated with a zero salvage value. A. Should the firm replace the old machine? Show NPV calculations. (2 Points) | | |T=0 |T=1 |T=2 |T=3 |T=4 |T=5 | |1 |Cash Flow |(110,000) | $ 30,000 | $ 30,000 | $ 30,000 | $ 30,000 | $ 30,000 | |3 |NPV |3,721 | | | | | | B. Assume that existing equipment was bought for $80,000 five years ago and is being depreciated on a straight line over ten years towards a zero book value. It continues to have zero salvage value. Should the firm replace the machine? (No calculations are necessary). Limit your answer to 20 words or less. (2 Points) As tax rate is Zero hence the Loss of Depreciation (Tax Shield) of Old machine and the tax shield due to Depreciation on New machine have no effect of the relevant cash inflow related...
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...THE BOSAL HOLDING CASE The Bosal Holding Case 1 July 2, 2014 # TABLE OF CONTENTS • Overview • Analysis • Conclusion The Bosal Holding Case 2 July 2, 2014 # Overview Bosal Holding BV or “Bosal” is limited company established in the Netherlands and owner of holdings in various Netherlands and foreign companies (inside and outside European Union or “EU”). Those holdings range from 50 up to 100%. Bosal business consists in holding, financing and licensing activities. In 1993, Bosal filed an application to the competent Netherlands tax authority to deduct interest charges amounting to 3.9 million gulden in connection with the financing of its holding in companies established outside the Netherlands but inside the EU. Throught 1993 corporation tax assessment, the competent Netherlands tax authority was refused to grant such deduction, thus Bosal lodged an appeal in cassation to the Hoge Raad (Supreme Court). Then, the Hoge Raad requested a ruling to the European Court of Justice (ECJ). The Bosal Holding Case 3 July 2, 2014 # Overview The following is the ruling seek by the Hoge Raad to the ECJ related to the Bosal case: Does Article 52…………………………………………preclude a Member State from granting a parent company subject to tax in that Member State a deduction on costs relating to a holding owned by it only if the relevant subsidiary makes profits which are subject to tax in the Member State in which the parent company is established...
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...ACCT 504 ACCT 504 Entire Course + Final Exam ACCT 504 Week 3 Case Study 1 Flower Landscaping Corporation ACCT 504 Week 5 Case Study 2 Internal Control LJB Company ACCT 504 Week 5 Course Project Draft Spreadsheet ACCT 504 Week 6 Case Study 3 Cash Budgeting LBJ Company ACCT 504 Week 7 Course Project JCP Kohls ACCT 504 Final Exam (3 different sets) + Discussions Financial Reporting Environment and GAAP Details of Financial Statements and Ratios Accounting EquationAccounting Cycle Accrual Accounting and Adjusting Entries Merchandising Operations and Income Statements Inventory Cost-Flow Assumptions Understanding Internal Control and Reporting Cash Accounting for and Reporting Receivables Plant Assets and Intangibles Accounting for Liabilities Accounting for and Reporting Equity Statement of Cash Flows Issues in Income Reporting Different Tools for Financial Analysis ACCT 504 Final Exam (3 different finals) ACCT 504 Week 1-7 Discussion Question ACCT 504 Week 3 Case Study 1 Flower Landscaping Corporation ACCT 504 Week 5 Case Study 2 Internal Control LJB Company ACCT 504 Week 5 Course Project Draft Spreadsheet ACCT 504 Week 6 Case Study 3 Cash Budgeting LBJ Company ACCT 504 Week 7 Course Project JCP Kohls ACCT 505 Week 7 Capital Budgeting Course Project (DEVRY) ACCT 505 Entire Course (DEVRY) ACCT 505 Week 1-7 All Discussion Questions Cost Terms, Classifications, and Behavior Research and Application ...
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...Steps 1-3 – The Problem Identification Stage Step 1 – Review the case and identify the relevant facts Problem situations or cases often include extraneous information or irrelevant ‘stuff’. Therefore, when you are trying to find a solution to a situation or to answer a case question, the first step is to identify the key facts so that you can figure out what is going on before deciding how to answer or solve the problem. In advanced courses, this usually involves extensive research but in an introductory or foundation level course, you will typically only use the information in the case. However, to do well in any case study assignment, it is important to read the case carefully and also to make sure you fully understand what the assignment and/or case questions are asking for. As you review the case, this will help you to identify what you need to pay attention to and what to ignore. That’s what relevance means – eliminating ‘stuff’ and identifying the important facts in a situation. Let us assume that you have just read a case entitled XYZ company and are trying to answer the following question: What are the current challenges facing XYZ company? You must identify and list the key facts which, for the purposes of our example, are those listed below: * The government has recently deregulated the industry to stimulate competition. * Telecommunications advances have led to increasing internet use. * More and more users are comparison shopping on the...
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...visits www.snaptutorial.com ACCT 505 Week 1-7 All Discussion Questions ACCT 505 Week 1 Case Study ACCT 505 Week 2 Quiz Job Order and Process Costing Systems ACCT 505 Week 3 Case Study II ACCT 505 Week 4 Midterm Exam ACCT 505 Week 5 Measuring Performance - Course Project A ACCT 505 Week 6 Quiz Segment Reporting and Relevant Costs for Decisions ACCT 505 Week 7 Capital Budgeting Course Project --------------------------------------------------------- ACCT 505 Final Exam ¬For more classes visits www.snaptutorial.com ACCT 505 Final Exam --------------------------------------------------------- ACCT 505 Week 1 Case Study ¬For more classes visits www.snaptutorial.com Top Switch Inc. designs and manufactures switches used in telecommunications. Serious flooding throughout the state of Tennessee affected Top Switch’s facilities. Inventory was completely ruined, and the company’s computer system, including all accounting records, was destroyed. Before the unfortunate incident, recovery specialists cleaned the buildings. The company controller is very nervous and anxious to recover whatever records he can to support the insurance claim for the destroyed inventory. After consulting with the cost accountant, they decide to retrieve the previous year’s annual report for the beginning inventory numbers. In addition, they also agreed that they need first quarter cost data. The cost accountant was working on the first quarter results before the...
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...Precision Worldwide, Inc case study. Begin by talking about the issues ….. Substantive Issues Raised. The primary issue at hand involves the relevant cost of a set of replacement parts. The parts, however, range from those that are totally manufactured and ready for sale, to those that have not yet been manufactured but for which raw material is on hand, to those that have not yet been manufactured and for which no inventory of raw material exists. The case solution turns in large part on the use of contribution analysis. However, the concepts of sunk costs, opportunity costs, and product substitution are prominent aspects of any reasonable analysis. The product in question, a steel ring, is used as a replacement part for industrial machines manufactured and sold by both Precision Worldwide, Inc and their competitors. It sells for $1,350 per hundred rings with annual sales of approximately 36,000 rings. One competitor, Henri Poulenc, has introduced a plastic ring. This ring lasts up to four times as long and is priced at about the same level as PWI’s product. Mr. Thorborg, the gm of the German plant of PWI, must analyze the data, the conflicting views of his sales manager and his development engineer, and make a decision as to whether PWI should begin the manufacture of a plastic ring. In addition, a plan needs to be designed as to the pricing policy to follow for both the steel and the plastic rings. Finally, some consideration should be given to the effect of the...
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...The purpose of this case is to illustrate the importance of understanding cost behavior in calculating the profit/contribution of the Craddock Cup. Within this context, the case asks whether the tournament should be continued, expanded or dropped. In addition, the case provides a vehicle to discuss allocation procedures and the concept of sunk costs. Finally, the case furnishes an opportunity to develop cost-volume-profit analysis within the context of relevant costs and revenues. Questions: 1. In determining whether to keep or drop the Craddock Cup, review in detail the overhead expense allocations currently used by the CYSL. Should the overhead allocations be revised, eliminated or retained? What are the financial results to the profit/loss to CYSL of the existing (32 team) Craddock Cup with any adjustments to allocations? With this analysis, should the Craddock Cup be retained? *Please see Figure 1.1 in Appendix for profit statement and relevant figures. After looking at the numbers we decided to eliminate Rivaldo’s salary, we determined that the overhead expense allocations currently in place are not appropriate. The city field rent should be eliminated from the allocated costs as the soccer league will be renting the field regardless of whether or not the Craddock Cup occurs; it is a sunk cost. This also applies to the CYSL office rent and utilities, which will be used by the employees whether or not the tournament is held. We needed to revise the salary allocation...
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...of Economics San Jose State University San Jose, CA. 95129 Phone: (408) 924-5408 E-mail: SCuellar@email.sjsu.edu Presented at the Department of Economics Seminar San Jose State University San Jose CA. 95129 April 7 th 2000 Is Microsoft a Monopoly? 1 This would occur in the case natural monopoly in which economies of scale result in a single firm producing at a lower cost than a large number of smaller competitive firms. 1 Since the beginning of the antitrust trial against Microsoft there has been a great deal of commentary and analysis concerning the market position, pricing and strategic behavior of Microsoft. The courts Finding of Fact and the recent Conclusions of Law have intensified the interest in the case and resulted in even more analysis and questioning of the courts findings. This paper adds to the current list of Monday morning quarterbacks questioning among other issues: Whether or not Microsoft is a monopoly? Did they violate the antitrust laws? Have they harmed consumers? If the answer to previous questions is in the affirmative, then what remedies should be enacted? The purpose of this paper is to address the first and perhaps the most contentious question of whether or not Microsoft is a monopoly. Although most people have a general understanding of what a monopoly is, to eliminate any ambiguity it is helpful to establish a precise definition of monopoly. A generally accepted definition describes a monopoly as: I A market composed of...
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... Re: | Old Mule Farms Case | | | | | Jim and Donna Green live on a farm that has been in their family for three generations. However, they have been losing money over the past couple of years because of what it costs to maintain their cows they use for breeding. To help offset their losses, Donna focused on making sure the calf weight at weaning was larger than in past. She also included nutrients in their feed and selected sires whose calves generally grew at a faster rate. These measures helped to increase the farms efficiency but unfortunately it was still not enough. One night after watching The Cattle Show on television, Donna and Jim had several questions on how they should proceed to raise their revenue for the upcoming year. Their first was question is what is the appropriate size for each cow in the herd. The second question the couple has is which method was most appropriate at measuring size: weaning a calf that weighs half of its mother, or comparing the cost of selling the calf to the cost of maintaining the cow. Their third and final concern is to figure out what the drivers of the cow-calf operation are and if the revenue-expense calculation is clear in regards to drivers. To answer Donna’s first question, I would recommend the average cow size in the herd be 1,100 pounds. The method that most appropriately measures this factor is comparing the cost of selling the calf to the cost of maintaining the cow. As for the last question the couple has, I believe...
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...Instructor Guide CORPORATE FINANCE COURSE NUMBER: MBA591 [pic] Jones International University®, Ltd. 1.800.811.JONES (5663) http://www.jonesinternational.edu ©2008 Jones International University®, Ltd. All rights reserved. 9697 East Mineral Avenue, Englewood, Colorado 80112, USA This workbook and all accompanying audio-visual material, manuals and software (collectively, the "Materials") are copyrighted with all rights reserved. Under the copyright laws, none of the Materials may be copied in whole or in part without prior written consent of Jones International University®, Ltd. (JIU™) You may permanently transfer all of your rights in the Materials, provided that you retain no copies, and provided that you transfer all of the Materials (including all component parts, media, documentation and any prior versions and upgrades). You may not copy or allow any copies of the Materials to be made for others, whether or not you charge anyone else for the copies. Limitation of Liability. JIU™ PROVIDES ALL OF THE MATERIALS “AS IS” WITHOUT WARRANTY OF ANY KIND. EACH OF JIU AND ALL ITS DEVELOPERS, TEACHING FACULTY, DIRECTORS, OFFICERS, EMPLOYEES OR AFFILIATES DISCLAIM ALL OTHER WARRANTIES, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF MERCHANTABILITY, NONINFRINGEMENT AND FITNESS FOR A PARTICULAR PURPOSE. IN NO EVENT WILL JIU OR ITS DEVELOPERS, TEACHING...
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...University Question1: Based on your interpretation of Exhibit 3, what is your estimate of the change in “PFMOH” cost if the factory were to run one extra batch of 150,000 milk crates? Response: Based on the interpretation of Exhibit 3, the most accurate relationship with Plant Fixed Manufacturing Overhead (PFMOH) is Direct Labor Hours (DLH). Michael Smith calculated that 3,472 scheduled machine hours would be need, 2,083 running hours. Using the equation, PFMOH=4321+(2.85*DLH), and knowing that an operator must be present for each hour of scheduled machine hours (3,472), we can determine an increase of $14,216.20. Question 2: What is your estimate of the incremental cost per unit for one batch of 150,000 milk crates? Response: The incremental cost per unit is $2.09 and is determined by adding the direct labor and direct materials per unit to the variable overhead. Variable overhead is determined by multiplying the number of machine hours by variable overhead, which is stated in the case as $13 per machine hour of “running time,” and dividing the product by the number of units. ($13*2,083)/150,000=$0.18 $1.91+.18=2.09 Question 3: What does Exhibit 2 suggest would be a “normal” price for milk crates for an “average” job shop? What does this suggest about the $3.00 price which seems to prevail at the time of the case? Response: The case suggests the price for the crates for an average job shop is: 150,000*$3.00=$450,000*57%=$256,500 So the direct...
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