Question: The dual objectives of assessing inter period

> Consider a three-firm supply chain consisting of a retailer, manufacturer, and supplier. The retailer’s demand over an 8-week period was 100 units each of the first 2 weeks, 200 units each of the second 2 weeks, 300 units each of the th

> A manufacturer produces a single product that is sold abroad to an industrial company through the following channel. a) Calculate the bullwhip effect for each stage of the supply chain. b) What kind of actions can the management take to smooth the bullwh

> Over the past 5 weeks, demand for wine at Winston’s Winery has averaged 1,890 bottles, and the variance of demand has been 793,000 bottles. Winston has ordered an average of 1,900 bottles per week over that time period, with a variance of orders of 1,805

> Tim Urban, owner/manager of Urban’s Motor Court in Key West, is considering outsourcing the daily room cleanup for his motel to Duffy’s Maid Service. Tim rents an average of 50 rooms for each of 365 nights (365 * 3 50 equals the total rooms rented for th

> Consider the supply chain illustrated here: Last year, the retailer’s weekly variance of demand was 200 units. The variance of orders was 500, 600, 750, and 1,350 units for the retailer, wholesaler, distributor, and manufacturer, respec

> Kryoneri Perfume Company is considering two alternatives for the supply of vetiver oil (an essential oil used in high-end perfumes). Alternative 1 is to use two suppliers located in Haiti, where half of the world’s vetiver oil comes from. Each has a “uni

> Johnson Chemicals is considering two options for its supplier portfolio. Option 1 uses two local suppliers. Each has a “unique-event” risk of 5%, and the probability of a “superevent” that would disable both at the same time is estimated to be 1.5%. Opti

> Phantom Controls monitors and repairs control circuit boxes on elevators installed in multistory buildings in downtown Chicago. The company has the contract for 108 buildings. When a box malfunctions, Phantom installs a new one and rebuilds the failed un

> A warehouse manager at Mary Beth Marrs Corp. needs to simulate the demand placed on a product that does not fit standard models. The concept being measured is “demand during lead time,” where both lead time and daily d

> Susan Sherer’s grocery store has noted the following figures with regard to the number of people who arrive at the store’s three checkout stands and the time it takes to check them out: Simulate the utilization of the

> Arnold Palmer Hospital is studying the number of emergency surgery kits that it uses on weekends. Over the past 40 weekends, the number of kits used was as follows: The following random numbers have been generated: 11, 52, 59, 22, 03, 03, 50, 86, 85, 15,

> Barbara Flynn sells papers at a newspaper stand for $.35. The papers cost her $.25, giving her a $.10 profit on each one she sells. From past experience Barbara knows that: a) 20% of the time she sells 100 papers. b) 20% of the time she sells 150 papers.

> The time between incoming calls to a help desk can be seen as a Poisson distributed random variable with an average of three minutes, and the duration can be seen as a discrete random variable. The following tables show a cumulative distribution of incom

> Repeat the simulation in Problem F.20, assuming that the reorder point is 4 units rather than 2. Compare the costs for these two situations. Use the same random numbers as in Problem F.20.

> California Gardens, Inc., prewashes, shreds, and distributes a variety of salad mixes in 2-pound bags. Doug Voss, Operations VP, is considering a new Hi-Speed shredder to replace the old machine, referred to in the shop as “Clunker.” Hi-Speed will have a

> The number of machine breakdowns per day at Yuwen Chen’s factory is 0, 1, or 2, with probabilities 0.5, 0.3, or 0.2, respectively. The following random numbers have been generated: 13, 14, 02, 18, 31, 19, 32, 85, 31, and 94. Use these numbers to generate

> A nail salon is deciding if appointing an additional manicurist will be financially feasible. Today, the nail salon has three manicurists, only one of whom is by appointment and the other two for drop-in sessions. The following tables summarize the vario

> Central Hospital in York, Pennsylvania, has an emergency room that is divided into six departments: (1) an initial exam station to treat minor problems or to make a diagnosis; (2) an X-ray department; (3) an operating room; (4) a cast-fitting room; (

> The time between arrivals at the drive-through window of Barry Harmon’s fast-food restaurant follows the distribution given in the table. The service-time distribution is also given. Use the random numbers provided to simulate the activ

> Woodworth Property Management is responsible for the maintenance, rental, and day-to-day operation of a large apartment complex in El Paso. Bruce Woodworth is especially concerned about the cost projections for replacing air conditioner compressors. He w

> The number of cars arriving at Mark Coffin’s selfservice gasoline station during the last 50 hours of operation are as follows: The following random numbers have been generated: 44, 30, 26, 09, 49, 13, 33, 89, 13, and 37. Simulate 10 ho

> Adventure Rafting runs rafts on the Colorado River. It has eight rafts in its inventory. The demand for rafts during the busy months of June and July has been either 4, 5, 6, 7 or 8, with probabilities of 0.1, 0.3, 0.3, 0.2, or 0.1, respectively. Use Tab

> Refer to the data in Solved Problem F.1, on page 837, which deals with Higgins Plumbing and Heating. Higgins has now collected 100 weeks of data and finds the following distribution for sales: a) Assuming that Higgins maintains a constant supply of 8 hea

> Leonard Presby’s newsstand uses naive forecasting to order tomorrow’s papers. The number of newspapers ordered corresponds to the previous day’s demands. Today’s demand for papers wa

> The daily demand for tuna sandwiches at an Ohio University cafeteria vending machine is 8, 9, 10, or 11, with probabilities 0.4, 0.3, 0.2, or 0.1, respectively. Assume the following random numbers have been generated: 09, 55, 73, 67, 53, 59, 04, 23, 88,

> Develop a Pareto Chart of the following causes for defectives in Lloyds shoe production.

> McBurger, Inc., wants to redesign its kitchens to improve productivity and quality. Three designs, called designs K1, K2, and K3, are under consideration. No matter which design is used, daily production of sandwiches at a typical McBurger restaurant is

> The financial statements of a debt service fund may reveal less information than is apparent. The balance sheet and a comparative statement (budgetto-actual) of revenues, expenditures, and changes in fund balance of Parkville's general obligation debt se

> Accounting practices for interest expenditures may neither reflect actual economic costs nor mirror those for interest revenues. A town plans to borrow about $10 million and is considering three alternatives. A town official requests your guidance on the

> Can a government sell assets to itself to generate revenue? A city is having fiscal problems in 20Xl. It expects to report a deficit in its general fund, the only fund that is statutorily required to be balanced. To eliminate the anticipated deficit the

> The following is an excerpt from a note to the financial statements of an actual major city. The city accounts for inventories on the consumption basis. One of the city's departments, which is accounted for in the general fund, budgeted $199,000 in suppl

> Inventory transactions can be derived from year-end balances. All the amounts shown relate only to supplies. All purchases during the year were paid in cash. Assume that the city uses the consumption method to account for supplies. a. Reconstruct all jou

> One-shots" have a greater impact on cash-based budgets than on accrual-based financial statements. A city recently proposed the following "one-shot" measures to help balance its 20Xl general fund budget (the only budget that is required by law to be bala

> The tax code can be used as a way to avoid reporting expenditures. To encourage both economic development and environmental sustainability, State No. 1 has offered grants of up to $10 million to any company in its jurisdiction that invests in equipment u

> The reporting of on-behalf payments may have political consequences. In 20Xl, the Bakersville Independent School District incurred $12 million in expenditures for teachers' salary and benefits. In that year, the legislature of the state in which the dist

> Did the city face any natural disaster that caused an impairment to its capital assets? How was that reported and accounted for?

> In some types of transactions, assets are recognized concurrently with revenues; in others they are not. In October 20Xl, the Village of Mason levied $80 million of property taxes for its 20X2 fiscal year (which is the same as the calendar year). The tax

> Policy changes and other measures will have varying effects on reported revenues. The board of trustees of an independent school district is contemplating several policy changes and other measures, all of which it intends to implement within the fiscal y

> A state government provided several grants to school districts and local governments during its fiscal year ending August 31. 1. On August 1, 20Xl, it announced a $2 million grant to a local school district for the purchase of computers. The district can

> Different types of funds justify different practices as to budgets and commitments. Review the budget note to Smith City's financial statements presented in the previous problem. Assume that the city engaged in the following transactions in 20X0 and 20Xl

> Transactions may have significantly different impacts on a government's budget, governmental funds statements, and government-wide statements. A school district prepares its budget on a cash basis. It is contemplating the changes or actions that follow.

> A change to the full accrual basis may have little impact upon reported revenues. A city levies property taxes of $4 billion in June 20Xl for its fiscal year beginning July 1, 20Xl. The taxes are due by January 31, 20X2. The following (in millions) indic

> The "60-day rule" may not be applicable to all types of revenues. Manor County was awarded a state grant to establish evening athletic programs for at-risk youth. The $3.6 million award, to cover the calendar year 20X2, was announced on November 15, 20Xl

> Nonexchange revenues can be of four types. The GASB has identified four classes of nonexchange revenues: • Derived tax • Imposed • Government mandated • Voluntary For each of the following revenue transactions affecting a city, identify the class in whic

> Do conventional financial statements satisfy the objectives of financial reporting? The financial statements that follow were adapted from those of the University of Texarkana. 1. Based on the information included in the financial statements, respond as

> The recognition of revenue from fines does not necessarily reflect the amount "earned" by merely issuing tickets. In August 20Xl, the last month of its fiscal year, Goldwaithe Township issued $88,000 worth of tickets for parking and traffic violations. O

> In a particular year, the federal government was affected by the following transactions and events. For each, indicate the amount that it should recognize as an expense during that year. Cite the FASAB principle on which you rely. 1. The government order

> When should the costs of subsidized loan programs be recognized? In 20X0, Congress established a small business direct loan program. The program provides that qualifying businesses can obtain loans at a rate 5 percent below that prevailing on Treasury se

> To help middle-income students finance the cost of their university educations, the Student Loan Authority guarantees student loans made by private banks. By guaranteeing the loans, the agency enables the banks to make the loans at rates far lower than t

> A federal environmental agency engaged in the following transactions during a particular year. 1. It billed corporations for which it provided services $160 million. Of this, it collected $140 million. 2. It levied $150 million in fines and penalties aga

> The financial statements of the Department of Veterans Affairs (VA) contained the following excerpt from a note entitled "Veteran Benefits": Certain Veterans, who die or are disabled from military service-related causes as well as their dependents, recei

> Federal agency financial statements were not discussed in detail in this chapter. Nevertheless, despite some unusual terminology, they are readily understandable. Examine the following financial statements, which are condensed versions of those of a fede

> Review the Statement of Social Insurance, the related notes, and the discussion of social insurance that is reported as "required supplementary information" in the most recent Consolidated Financial Report of the federal government at large. 1. In terms

> Among the most contentious of federal accounting issues is how the Federal Reserve System should be accounted for in the Financial Report of the U.S. Government. 1. Review a recent balance sheet of the Federal Reserve System ("Federal Reserve Banks Combi

> Although not tied to "conventional" accounting reports, detailed information on individual government contracts, grants, and loan guarantees is readily available to the public. Go towww.USAspending.gov. 1. In the latest year for which data are available,

> Sales taxes should be recognized when the underlying event takes p lace. A state requires "large" merchants (i.e., those with sales over a specified dollar amount) to report and remit their sales taxes within 15 days of the end of each month. It requires

> Review the most recent government-wide Consolidated Financial Report. 1. What was the amount of the government's deficit for the year? What was the amount of its net position? 2. What three departments incurred the largest amount of expenses (net)? 3. Wh

> For each of the following assets acquired by federal departments and agencies, indicate how the government should report the asset. If it is to be reported on the government's balance sheets, then state whether it should be amortized or depreciated. Just

> It is a matter of professional judgment whether and how certain entities should be included in the Financial Report of the U.S. Government. Based on the criteria set forth in this chapter and the limited facts presented, indicate which of the following a

> The Dave Health-Care Center (DHCC)was created in 20X0 to provide medical services to low-income residents of Dave Town. DHCC had the following transaction s during the year: 1. It received a pledge from a donor for $20,000, payable in equal installments

> Below are the abridged operating statements of two not for-profit hospitals that serve similar populations. 1. What is the performance indicator of the hospitals? 2. Using the performance indicator, which hospital reported better operations? Does anythin

> Financial ratios are useful in comparing one not-for-profit to another. The data below pertaining to two not-for-profit hospices were taken from GuideStar, an online database (www.guidestar. org) that provides information about not-for-profit organizatio

> JMH (a not-for-profit) Rehabilitation Center engaged in the following transactions during its most recent fiscal year: 1. Michael Vincent donated $625,000 to the hospital to help pay for the purchase of new physical rehabilitation equipment. 2. Albert Ol

> Review the Statement of Activities of Hamilton College for the year ended June 30, 20X0, which is presented in Table 2-11. The statement indicates that during the year net assets increased by $40,604,000. Suppose that you are a member of the college's bo

> Review the financial statements of Hamilton College in Chapter 2, and respond to the fo llowing questions: 1. What percentage of the college's total revenues (including nonoperating items and revenues of all funds) is attributable to tuition and fees (ne

> The initial value to be assigned to an asset is not always obvious. A city acquired general capital assets as follows: 1. It purchased new construction equipment. List price was $400,000, but the city was granted a 10 percent "government discount." The c

> In January 20X0, Kirkland University receives a pledge of $200,000 to be used exclusively to support research in a specialized area of communication disorders. The university's fiscal year ends on July 31. In December 20Xl (the following fiscal year), Ki

> A multi jund balance sheet can readily be recast so that it conforms with FASB standards. Recast the fund balance (net asset) section of the balance sheet so that it presents the fund balances in the two categories required by ASU 2014-09. Show the balan

> Review the financial statements of the March of Dimes for 2019 as presented in Table 12-8. 1. Comment as best you can ( even in the absence of guidelines as to what constitutes norms for comparable foundations) on the fiscal strength of the organization

> The footnote in the financial statements of The Welfare Foundation contain the following note titled " Promises to Give": Unconditional promises to give were as follows at December 31: The discount rates used on long-term promises to give were 3 percent

> In December 20X0, the Consumer Association of America (CAA), a not-for-profit research organization, received a $6 million grant from the Sporting Goods Manufacturers Association (SGMA) to develop a football helmet that will provide better protection aga

> In 20X0, the Northwest Ballet Association (NBA), a not-forprofit performing arts organization, undertook a major capital campaign to fund a new theater, expected to cost $10 million. It was quickly able to raise $6 million, all of which was donor restric

> Financial analysis of governments is not a static tool; rather, it changes as potential issues arise that may be of concern to analysts. Debt analysis, for example, traditionally focused on financial liabilities such as bonds and notes. More recently, ot

> The following information was taken from the ACFRs of two cities of approximately the same size in the same state. 1. Compare the financial condition of the two cities based on the following indicators: a. Per capita operating expenditures b. Per capita

> The data that follow were drawn from the city of Boulder, Colorado's ACFR. They are from two statistical-section schedules showing the mix of revenue and expenditures for a 10-year period. They include amounts only from the general fund, special revenue

> For each of the following indicate the fund (or funds), if any, in which you think the activity should be accounted for and reported. If you think the fund should be a fiduciary fund, then indicate the type of fund; if a governmental or proprietary fund,

> During 20Xl Luling Township engaged in the following transactions related to modernizing the bridge over the Luling River. The township accounts for long-term construction projects in a capital projects fund. • On July 1 it issued 10-year, 4 percent bond

> Upon the death of a police officer, Leff City establishes a trust fund to provide for the education of the officer's collegeage children. 1. In what type of fund should the resources contributed to the fund be recorded? 2. Prepare journal entries to reco

> The Westmont School District provides postemployment health care benefits through a cost-sharing plan administered through the State Teachers OPEE Plan (STOP). In its financial statements for its fiscal year ending May 31, 20Xl, STOP reported that the co

> An individual city employee is currently 50 years of age and anticipates retiring at age 65. Per mortality tables, she is expected to live an additional 18 years postretirement. Taking into account her current salary and anticipated increases, her antici

> The ACFR of North Orange included the statement of fiduciary net position for its employee pension plan presented here: 1. A note to the statement indicated that the plan net position was 75 percent of the North Orange (the employer) total pension liabil

> Lemon County permits employees to accumulate any sick leave that they do not take. If employees do not use accumulated sick leave, then they will be paid for those days upon retirement or termination (up to a maximum of 45 days). In 20Xl, employees earne

> Expenditures for vacations do not necessarily reflect the amounts the employees have earned. In 20Xl, employees of Pecos River County earned $5 million in vacation pay. They were paid for $4.2 million but deferred taking the balance of their earned vacat

> During its fiscal year ending June 30, 20X0, the Parkville Independent School District purchases a two-year insurance policy covering the period May l , 20X0, through April 30, 20X2. Annual premiums are $60,000. The policy specifies that the entire premi

> Tax abatements are reductions in taxes that result from an agreement between a government and a taxpayer, typically a corporation. In 20X0, Lionsgate Logistics struck a deal with the city of Des Moines to move its headquarters to a property within the ci

> The amount of revenue to be recognized from grants depends on the type of grant. The following relate to three grants that the town of College Hills received from the state during its fiscal year ending December 31, 20Xl. Prepare journal entries to recor

> Select one of the more recently established (and larger) capital projects funds (a major fund, if there is one).

> Grants are not necessarily recognized as revenue when they are awarded. Columbus City was awarded a state reimbursement grant of $150,000 to assist its adult literacy program. The following were significant events relating to the grant: • The city, which

> Property taxes are not necessarily recognized as revenue in the year collected. The fiscal year of Duchess County ends on December 31. Property taxes are due on March 31 of the year in which they are levied. 1. Prepare journal entries (excluding budgetar

> The Eaton School District engaged in the following transactions during its fiscal year ending August 31, 20Xl. • It established a purchasing department, which would be accounted for in a new internal service fund, to purchase supplies and distribute them

> The Waterville School District has an annual meeting with staff, students, and parents in the summer after the school year to review accomplishments in the school district and financials and address needs for the next school year. The talking points of t

> Different types of assets are accounted for in different ways. The government purchased or constructed the following assets. 1. A monument to honor the sailors who served in the U.S . Coast Guard. 2. Land to be incorporated into a national forest. 3. A t

> The Business Development Corporation (BDC) , a federal agency (fictitious), makes loans to high-tech companies that satisfy specified criteria. The loans are intended to encourage research and development and are made a t rates substantially below market

> The federal government, through its various government agencies, engaged in the following transactions involving revenues. 1. In the middle of its fiscal year, it rented l and to a tenant, another government agency. It signed a one year lease requiring m

> The left-hand column of the following table describes each of seven financial statements that the FASAB recommends agencies prepare. The right-hand column indicates the names of the seven statements. Match the description in the left-hand column with the

> Military hardware should be accounted for as a. Stewardship assets b. Heritage assets c. National defense assets d. General assets 2 . The Executive Office Building has historical significance yet is also used as functioning office space. The cost of the

> The federal government's annual financial statements are issued by a. The Department of the Treasury b. The Office of Management and Budget c. The Department of Commerce d. The Government Accountability Office 2. The Government Accountability Office is p

> In June 20Xl, Jason King completed his audit of a 20X0 grant that a city made to Field of Dreams, a private, not-for-profit organization that sponsors recreational programs for disadvantaged teens. In the course of his testing, King discovered that mater

> Please go to www.Guidestar.org, and download the Form 990 of three health-care organizations for 2018. Note that you will need to create a free account to access the forms: 1. Mental Health America of Greater Houston 2. Southern Illinois Hospital Service

> On June 30, 20X0, a county (government) hospital bought 3,000 shares of stock for $94,000 intending to hold the investment for its proposed expansion of its trauma center. The fair value of the stock on August 31, 20X0, the hospital's fiscal year-end, wa