Question: Nottage Company has four separate operating

> On October 1, 2017, Tile Co., a U.S. company, purchased products from Azulejo, a Portuguese company, with payment due on December 1, 2017. If Tile’s 2017 operating income included no foreign exchange gain or loss, the transaction could have a. Been denom

> In accounting for foreign currency transactions, which of the following approaches is used in the United States? a. One-transaction perspective; accrue foreign exchange gains and losses. b. One-transaction perspective; defer foreign exchange gains and lo

> Which of the following combinations correctly describes the relationship between foreign currency transactions, exchange rate changes, and foreign exchange gains and losses? Foreign Exchange Type of Transaction Forelgn Currency Galn or Loss a. Expor

> How are changes in the fair value of an option accounted for in a cash flow hedge? In a fair value hedge?

> What are the differences in accounting for a forward contract used as a cash flow hedge of (a) A foreign currency denominated asset or liability and (b) A forecasted foreign currency transaction?

> What are the differences in accounting for a forward contract used as a fair value hedge of (a) A foreign currency denominated asset or liability and (b) A foreign currency firm commitment?

> What are the differences in accounting for a forward contract used as (a) A cash flow hedge and (b) A fair value hedge of a foreign currency denominated asset or liability?

> On January 1, 2018, Stamford reacquires 8,000 of the outstanding shares of its own common stock for $24 per share. None of these shares belonged to Neill. How does this transaction affect the parent company’s Additional Paid-In Capital account? a. Has no

> Under what conditions can companies use hedge accounting to account for a foreign currency option used to hedge a forecasted foreign currency transaction?

> What is hedge accounting?

> How does a company determine the fair value of a foreign currency forward contract? How does it determine the fair value of an option?

> How do companies report foreign currency derivatives, such as forward contracts and options, on the balance sheet?

> Why would a company prefer a foreign currency option over a forward contract in hedging a foreign currency firm commitment? Why would a company prefer a forward contract over an option in hedging a foreign currency asset or liability?

> How does the timing of hedges of (a) Foreign currency denominated assets and liabilities, (b) Foreign currency firm commitments, and (c) Forecasted foreign currency transactions differ?

> How does a foreign currency option differ from a foreign currency forward contract?

> What does the term hedging mean? Why do companies elect to follow this strategy?

> In what way is the accounting for a foreign currency borrowing more complicated than the accounting for a foreign currency account payable?

> What factors create a foreign exchange gain on a foreign currency transaction? What factors create a foreign exchange loss?

> On January 1, 2018, Stamford issues 10,000 additional shares of common stock for $15 per share. Neill does not acquire any of this newly issued stock. How does this transaction affect the parent company’s Additional Paid-In Capital account? a. Has no eff

> A company makes an export sale denominated in a foreign currency and allows the customer one month to pay. Under the two-transaction perspective, accrual approach, how does the company account for fluctuations in the exchange rate for the foreign currenc

> What concept underlies the two-transaction perspective in accounting for foreign currency transactions?

> The Coca-Cola Company is organized geographically and defines reportable operating segments as regions of the world. The following information was extracted from Note 19 Operating Segments in the Coca-Cola Company 2014 Annual Report: Required 1. Calcul

> The following information was extracted from quarterly reports for Wal-Mart Stores, Inc. (amounts in millions): The following information was extracted from the notes to the financial statements in the Wal-Mart Stores, Inc., Annual Report (for the fisc

> Caplan Pharma, Inc., recently was sued by a competitor for possible infringement of the competitor’s patent on a top-selling flu vaccine. The plaintiff is suing for damages of $15 million. Caplan’s CFO has discussed the case with legal counsel, who belie

> Nuland International Corporation recently acquired 40 percent of Scott Trading Company and appropriately accounts for this investment under the equity method. Nuland’s corporate controller is in the process of determining the company’s operating segments

> Corcoran Heavy Industries Company (CHIC) is organized into four divisions, each of which operates in a different industry. The types of customer served and the method used to distribute products differ across all four of these industries. In addition, ea

> Many companies make annual reports available on their corporate Internet home page. Annual reports also can be accessed through the SEC’s EDGAR system at www.sec.gov (under Filings, click Company Filings Search, type in Company Name, and under Filing Typ

> Many companies make annual reports available on their corporate Internet home page. Annual reports also can be accessed through the SEC’s EDGAR system at www.sec.gov (under Filings, click Company Filings Search, type in Company Name, and under Filing Typ

> The following information for Dorado Corporation relates to the three-month period ending September 30. Dorado expects to purchase 150,000 units of inventory in the fourth quarter of the current calendar year at a cost of $25 per unit, and to have on h

> On January 1, 2018, Stamford issues 10,000 additional shares of common stock for $25 per share. Neill acquires 8,000 of these shares. How will this transaction affect the parent company’s Additional Paid-In Capital account? a. Has no effect on it. b. Inc

> Cambi Company began operations on January 1, 2016. In the second quarter of 2017, it adopted the FIFO method of inventory valuation. In the past, it used the LIFO method. The company’s interim income statements as originally reported un

> Noventis Corporation prepared the following estimates for the four quarters of the current year: Additional Information ∙ First-quarter administrative costs include the $160,000 annual insurance premium. ∙ Advertisin

> Taft Corporation operates primarily in the United States. However, a few years ago it opened a plant in Spain to produce merchandise to sell there. This foreign operation has been so successful that during the past 24 months the company started a manufac

> Mason Company has prepared consolidated financial statements for the current year and is now gathering information in connection with the following five operating segments it has identified. Determine the reportable segments by performing each applicabl

> Following is financial information describing the six operating segments that make up Fairfield, Inc. (in thousands): Consider the following questions independently. None of the six segments has a primarily financial nature. a. What minimum revenue amo

> Ecru Company has identified five industry segments: plastics, metals, lumber, paper, and finance. It appropriately consolidated each of these segments in producing its annual financial statements. Information describing each segment (in thousands) follow

> Vehicle Corporation is organized into four operating segments. The internal reporting system generated the following segment information: The company incurred additional operating expenses (of a general nature) of $1,200,000. Perform the profit or loss

> Assume the company expects to replace the units of beginning inventory sold in April at a cost of $45 per unit and expects inventory at year-end to be between 2,100 and 2,500 units. What amount of cost of goods sold should be recorded for the quarter end

> Assume the company does not expect to replace the units of beginning inventory sold; it plans to reduce inventory by year-end to 500 units. What amount of cost of goods sold should be recorded for the quarter ended March 31? a. $335,000 b. $350,000 c. $3

> The journal entry at March 15 to record the payment of property taxes would include which of the following? a. A debit to Property Tax Expense of $480,000. b. A credit to Cash of $120,000. c. A debit to Prepaid Property Taxes of $360,000. d. A credit to

> Aaron owns 100 percent of the 12,000 shares of Veritable, Inc. The Investment in Veritable account has a balance of $588,000, corresponding to the subsidiary’s unamortized acquisition-date fair value of $49 per share. Veritable issues 3,000 new shares to

> How much of this expense should Calloway’s income statement reflect for the quarter ending March 31? a. –0– b. $40,000 c. $120,000 d. $480,000 On March 15, Calloway, Inc., paid property taxes of $480,000 for the calendar year.

> In March of the current year, Mooney Company estimated its year-end executive bonuses to be $800,000. The executive bonus paid in the previous year was $950,000. What amount of bonus expense, if any, should Mooney recognize in determining net income for

> Rouge Company’s $250,000 net income for the quarter ended September 30 included the following after-tax items: ∙ A $20,000 cumulative effect loss resulting from a change in inventory valuation method made on September 1. ∙ $0 of the $60,000 annual proper

> Baton Company estimates that the amounts for total depreciation expense for the year ending December 31 will be $120,000 and for year-end bonuses to employees will be $200,000. What total amount of expense relating to these two items should Baton report

> Chambers Company has seven operating segments but only four (One, Two, Three, and Four) are of significant size to warrant separate disclosure. As a whole, the segments generated revenues of $1,010,000 ($780,000 + $230,000) from sales to outside customer

> What is the minimum number of operating segments that must be separately reported? a. Ten. b. Segments with at least 75 percent of revenues as measured by the revenue test. c. At least 75 percent of the segments must be separately reported. d. Segments w

> Hyams Corp. engages solely in manufacturing operations. The following data pertain to the operating segments for the current year: In its segment information for the current year, how many reportable segments does Hyams have? a. Three b. Four c. Five d

> Howard Corporation has six different operating segments reporting the following operating profit and loss figures: With respect to the profit or loss test, which of the following statements is not true? a. A is a reportable segment based on this one te

> Livro Company has three operating segments with the following information: In addition, corporate headquarters generates revenues of $2,000. What is the minimum amount of revenue that each of these segments must generate to be considered separately rep

> Premier Company owns 90 percent of the voting shares of Stanton, Inc. Premier reports sales of $480,000 during the current year and Stanton reports $264,000. Stanton sold inventory costing $28,800 to Premier (upstream) during the year for $57,600. Of thi

> A parent acquires the outstanding bonds of a subsidiary company directly from an outside third party. For consolidation purposes, this transaction creates a gain of $45,000. Should this gain be allocated to the parent or the subsidiary? Why?

> Discussion Problem: If your firm had 500 suppliers and they each had 100 suppliers, how many second-tier suppliers would your firm have? What if your firm reduced its supply base to twenty?

> Discuss how an organization develops a supplier evaluation and certification program.

> What are the criteria used in evaluating a supplier?

> Describe how a typical government bidding process is conducted.

> The Margo Manufacturing Company is performing an annual evaluation of one of its suppliers, the Mimi Company. Bo, purchasing manager of the Margo Manufacturing Company, has collected the following information: A score based on a scale of 0 (unsatisfactor

> What are the differences between transactional and analytic SRM?

> How does public procurement differ from corporate purchasing?

> Why don’t firms just buy out their suppliers and industrial customers, forming conglomerates, instead of practicing supply chain management?

> Describe how the hybrid purchasing organization works.

> Ten customers per hour were asked by the cashier at Stanley’s Deli if they liked their meal, and the fraction that said “no” are shown below, for a 12-hour period. For the data shown above, find a.

> Briefly describe resource requirements planning, rough-cut capacity planning, and capacity requirements planning. How are these plans related?

> Given the following production plan, use a (a) chase production strategy and (b) level production strategy to compute the monthly production, ending inventory/ (backlog) and workforce levels. A worker can produce 50 units per month. Assume that the begin

> When did the idea and term, supply chain management, first begin to be thought about and discussed?

> Describe centralized and decentralized purchasing and their advantages.

> What is a BOM, and how is it different from the super BOM?

> What is system nervousness? Discuss how it can be minimized or avoided.

> What is the purpose of the available-to-promise quantity, and how is it different from on-hand inventory?

> Compare and contrast the jury of executive opinion and the Delphi techniques.

> What is the impact of the smoothing constant value on the simple exponential forecast?

> Explain the difference between a time series model and an associative model. Under what conditions would one model be preferred to the other?

> Explain the impact of a mismatch in supply and demand. What strategies can companies adopt to influence demand?

> Why is demand forecasting important for effective supply chain management?

> What are foreign trade zones? What benefits do they provide?

> What is countertrade? Describe the various types of countertrade.

> What is cloud computing, and how can companies benefit from this technology in solving supply chain forecasting problems?

> Is the use of a large number of suppliers a good idea? Why?

> Why is widespread adoption of CPFR below expectations?

> How can purchasing help to improve the competitive edge of an organization?

> What are the eight tasks associated with the CPFR model? Why is sharing data important in CPFR implementation? What are the benefits of sharing information?

> What are the key features of CPFR? Why would a company consider adopting CPFR?

> What is a tracking signal? What information does the tracking signal provide that managers can use to improve the quality of forecasts?

> Explain the key differences between the weighted moving average and the simple exponential smoothing forecasting methods.

> What is sustainable sourcing and how does it differ from ethical sourcing? From green purchasing?

> What is a fair trade product?

> The following sample information was obtained by taking four doughnuts per hour for 12 hours from the Fawcett Bakery’s doughnut process and weighing them: For the data shown above, a. Find the x and R for each sample. b. Find the x a

> What are some of the risks of ethical sourcing? How about the potential advantages? Do you think ethical sourcing is a good practice?

> Describe several international logistics intermediaries. Could they also be considered3PLs?

> What are the key capabilities of supplier relationship management software?

> Describe the differences between integrative and distributive negotiations, and when each should be used.

> What makes supplier alliances fail? How can firms reduce the failure rate?

> Discuss the advantages and risks of supplier co-location.

> The forecasts generated by two forecasting methods and actual sales are as follows: (a) Compute the MSE, the MAD, the MAPE, the RSFE and the tracking signal for each forecasting method. Which method is better?Why? MONTH SALES FORECAST 1 FORECAST 2 2

> Describe the differences between vendor managed inventories and co-managed inventories, and when it might be advisable to do either of them.

> Why is early supplier involvement a good way to integrate the supply chain?

> When would firms want to insource a product or process? How is this different from co-sourcing?

> What are the advantages of using SRM solutions to manage suppliers?

> Why would a firm want to monitor its purchasing performance?

> Could your firm use a 3PL to improve its ethical or sustainable purchasing practices?