Question: Do you think the process of mass

> Assume that McKinley Electronics completed these selected transactions during June 2010: a. Sales of $2,200,000 are subject to estimated warranty cost of 7%. The estimated warranty payable at the beginning of the year was $34,000, and warranty payments

> Roden Security Systems revenues for 2010 totaled $6.3 million. As with most companies, Roden is a defendant in lawsuits related to its products. Note 14 of the Roden Annual Report for 2010 reported: Requirements 1. Suppose Rodens lawyers believe that a

> Mountainside Manors, Inc., builds environmentally sensitive structures. The companys 2010 revenues totaled $2,760 million, and at December 31, 2010, the company had $650 million in current assets. The December 31, 2010 and 2009, balance sheets reported t

> At December 31, 2010, Souza Real Estate reported a current liability for income tax payable of $180,000. During 2011, Souza earned income of $1,200,000 before income tax. The companys income tax rate during 2011 was 36%. Also during 2011, Souza paid inco

> Business is going well for Park N Fly, the company that operates remote parking lots near major airports. The board of directors of this family-owned company believes that Park N Fly could earn an additional $1.5 million income before interest and taxes

> Assume that Crandell Company completed the following note-payable transactions. Requirements 1. How much interest expense must be accrued at December 31, 2010? (Round your answer to the nearest whole dollar.) 2. Determine the amount of Crandells final

> Perform Talent Search has an annual payroll of $200,000. In addition, the company incurs payroll tax expense of 8%. At December 31, Perform owes salaries of $8,100 and FICA and other payroll tax of $800. The company will pay these amounts early next year

> TransWorld Publishing completed the following transactions for one subscriber during 2010: Requirement 1. Journalize these transactions (explanations not required). Then report any liability on the companys balance sheet at December 31, 2010. Oct 1

> The accounting records of From the Earth Ceramics included the following balances at the end of the period: In the past, From the Earths warranty expense has been 7% of sales. During 2010 the business paid $8,000 to satisfy the warranty claims. Require

> Like Home, Inc., includes the following selected accounts in its general ledger at December 31, 2010: Prepare the liabilities section of Like Home, Inc.s balance sheet at December 31, 2010, to show how the company would report these items. Report total

> Houle Plumbing Products Ltd. reported the following data in 2010 (in billions): Compute Houles times-interest-earned ratio, and write a sentence to explain what the ratio value means. Would you be willing to lend Houle $1 billion? State your reason.

> Identify the effects both the direction and the dollar amount of these assumed transactions on the total stockholders’ equity of Athol Corporation. Each transaction is independent. a. Declaration of cash dividends of $78 million. b. Payment of the cash

> Determine whether the following bonds payable will be issued at maturity value, at a premium, or at a discount: a. The market interest rate is 5%. Carlisle Corp. issues bonds payable with a stated rate of 4 1/2%. b. Oiler, Inc., issued 7% bonds payable

> Compute the price of the following bonds: a. $300,000 issued at 75.75 b. $300,000 issued at 102.75 c. $300,000 issued at 94.50 d. $300,000 issued at 104.50

> Speedtown Marina needs to raise $3 million to expand the company. Speedtown Marina is considering the issuance of either: $3,000,000 of 8% bonds payable to borrow the money , or 100,000 shares of common stock at $30 per share. Before any new financing, S

> Identify the effects both the direction and the dollar amount of these assumed transactions on the total stockholders’ equity of Dracut Corporation. Each transaction is independent. a. Declaration of cash dividends of $85 million. b. Payment of the cas

> Karen Scanlon and Jennifer Shaw are opening a Submarines deli. Scanlon and Shaw need outside capital, so they plan to organize the business as a corporation. They come to you for advice. Write a memorandum informing them of the steps in forming a corpora

> Centerville Bancshares has 13,000 shares of $3 par common stock outstanding. Suppose Centerville distributes a 15% stock dividend when the market value of its stock is $25 per share. 1. Journalize Centervilles distribution of the stock dividend on May 11

> Greentea Corporation earned net income of $95,000 during the year ended December 31, 2010. On December 15, Greentea declared the annual cash dividend on its 6% preferred stock (11,000 shares with total par value of $110,000) and a $1.00 per share cash di

> McGahan Corporation is conducting a special meeting of its board of directors to address some concerns raised by the stockholders. Stockholders have submitted the following questions. Answer each question. 1. Why are common stock and retained earnings s

> Give the formula for computing (a) rate of return on total assets (ROA) and (b) rate of return on common stockholders’ equity (ROE). Then answer these questions about the rate-of-return computations. 1. Why is interest expense added to net income in t

> Consider the authority structure in a corporation, as diagrammed in Exhibit 9-2. 1. What group holds the ultimate power in a corporation? 2. Who is the most powerful person in the corporation? Whats the abbreviation of this persons title? 3. Whos in c

> MarleyDavid, Inc., the motorcycle manufacturer, included the following note in its annual report: 1. Why are these contingent (versus real) liabilities? 2. In the United States, how can the contingent liability become a real liability for MarleyDavid? W

> Refer to the data given in Short Exercise 8-3. What amount of warranty expense will Trekster USA report during 2010? Which accounting principle addresses this situation? Does the warranty expense for the year equal the years cash payments for warranties?

> Sunset Drive-Ins Ltd. issued a $500,000, 8%, 10-year bond payable on July 1, 2010, at a price of 94. Also assume that Sunsets accounting year ends on December 31. Journalize the following transactions for Sunset Drive-Ins Ltd., including an explanation f

> Trekster USA guarantees automobiles against defects for five years or 55,000 miles, whichever comes first. Suppose Trekster USA can expect warranty costs during the five-year period to add up to 6% of sales. Assume that Trekster USA dealer in Atlanta, Ge

> This short exercise works with Short Exercise 8-1. 1. Refer to the data in Short Exercise 8-1. Show what the company would report on its balance sheet at June 30, 2011, and on its income statement for the year ended on that date. 2. What single item wi

> Franklin Sports Authority purchased inventory costing $5,000 by signing an 8% short-term note payable. The purchase occurred on September 30, 2010. Franklin pays annual interest each year on September 30. Journalize the company’s (a) purchase of invento

> SHOE received $73,000,000 for the issuance of its stock on April 24. The par value of the SHOE stock was only $73,000. Was the excess amount of $72,927,000 a profit to SHOE? If not, what was it? Suppose the par value of the SHOE stock had been $2 per sh

> Antonio Companys net income and interest expense are $27,000 and $3,000, respectively , and average total assets are $600,000. How much is Antonios return on assets? a. 5.0% b. 4.5% c. 6.2% d. 4.0%

> Assume the same facts as in question 70. What is the amount of dividends per share on common stock? a. $1.00 b. $5.50 c. $2.50 d. $12.50 e. None of these

> A corporation has 40,000 shares of 10% preferred stock outstanding. Also, there are 40,000 shares of common stock outstanding. Par value for each is $100. If a $500,000 dividend is paid, how much goes to the preferred stockholders? a. None b. $400,000

> Lucas Foods has outstanding 600 shares of 7% preferred stock, $100 par value, and 1,600 shares of common stock, $30 par value. Lucas declares dividends of $15,800. The correct entry is: a. Dividends Payable, Preferred Dividends Payable, Common 4,200

> Stockholders are eligible for a dividend if they own the stock on the date of: a. record. b. issuance. c. declaration. d. payment.

> A company purchased 100 shares of its common stock at $50 per share. It then sells 35 of the treasury shares at $56 per share. The entry to sell the treasury stock includes a a. credit to Paid-in Capital, Treasury Stock for $210. b. debit to Retained E

> Susan Smith Exports, Inc., is located in Birmingham, Alabama. Smith is the only company with reliable sources for its imported gifts. The company does a brisk business with specialty stores such as Bloomingdales. Smith’s recent success has made the compa

> When treasury stock is sold for less than its cost, the entry could include a debit to: a. Paid-in Capital in Excess of Par. b. Retained Earnings. c. Gain on Sale of Treasury Stock. d. Loss on Sale of Treasury Stock.

> A company paid $24 per share to purchase 600 shares of its common stock as treasury stock. The stock was originally issued at $16 per share. The journal entry to record the purchase of the treasury stock is: a. Treasury Stock 14,400 Cash 14,400 b. Tr

> These account balances at December 31 relate to Sportworld, Inc.: Sportworlds net income for the period is $119,100 and beginning common stockholders equity is $681,500. Calculate Sportworlds return on common stockholders equity . a. 17.2% b. 16.4% c.

> These account balances at December 31 relate to Sportworld, Inc.: What is total stockholders equity for Sportworld, Inc.? a. $688,100 b. $641,345 c. $693,300 d. $698,500 e. None of the above $ 51,500 Paid-in Capital in Excess of Par-Common.. Pref

> These account balances at December 31 relate to Sportworld, Inc.: What is total paid-in capital for Sportworld, Inc.? a. $634,445 b. $622,000 c. $641,345 d. $693,300 e. None of the above $ 51,500 Paid-in Capital in Excess of Par-Common.. Preferre

> The paid-in capital portion of stockholders equity does not include a. Common Stock. b. Preferred Stock. c. Retained Earnings. d. Paid-in Capital in Excess of Par Value.

> Par value a. represents the original selling price for a share of stock. b. is established for a share of stock after it is issued. c. may exist for common stock but not for preferred stock. d. represents what a share of stock is worth. e. is an arb

> Spirit World, Inc., issues 280,000 shares of no-par common stock for $9 per share. The journal entry is: a. Cash 2,520,000 Common Stock 560,000 Paid-In Capital in Excess of Par 1,960,000 b. Сash 2,520,000 Common Stock 2,520,000 C. Cash 2,520,000 Comm

> On February 28, 2010, Marlin Corp. issues 8%, 10-year bonds payable with a face value of $900,000. The bonds pay interest on February 28 and August 31. Marlin Corp. amortizes bonds by the straight-line method. Requirements 1. If the market interest rat

> The board of directors of Monitors Plus authorizes the issue of $9,000,000 of 10%, five-year bonds payable. The semiannual interest dates are May 31 and November 30. The bonds are issued on May 31, 2010, at par. Requirements 1. Journalize the following

> Use the amortization table that you prepared for GITs bonds in Short Exercise 8-9 to answer the following questions: 1. How much cash did GIT borrow on March 31, 2010? How much cash will GIT pay back at maturity on March 31, 2022? 2. How much cash inter

> In 2002, Enron Corporation filed for Chapter 11 bankruptcy protection, shocking the business community: How could a company this large and this successful go bankrupt? This case explores the causes and the effects of Enrons bankruptcy. At December 31, 20

> Is it enough to just write down the business strategy of a firm? Why or why not? Conversely, what are the limitations of not writing down the strategy but rather depending on the firm’s actions to define the strategy?

> Can a company complete its material requirements plans before it does master scheduling? Explain.

> Yield management is a powerful tool in operations and supply chain management. It is commonly employed to handle highly perishable products and/or services. Do you agree? Give an example.

> One of your friends argues that EOQ has limitations, such as providing no consideration for the other supply chain members. Do you agree? Can you give an example?

> Competitive bidding is better applied when purchasing products and services with straightforward specifications, while negotiation is good for new and/or technically complex products and services with only vague specifications. Do you think they could be

> Do you think a company’s decision to emphasize one performance dimension (based on excellence) at the expense of others may cause conflict with the overall performance? Can you give an example from operations and supply chain management?

> Which of the waiting line systems shown in Figures 6S.1 through 6S.3 best represent a patient being sent to the accident and emergency ward of a hospital by the ambulance after a car crash? Why? Figure 6S.1: Figure 6S.3:

> Under the best of conditions, do you think it is possible to adopt a certain forecasting approach so that we are be able to predict (with 100 percent accuracy) the exact level of future demand, supply, or price according to the law of forecasting?

> McDonald’s brand mission is to “be our customers’ favorite place and way to eat and drink”. Do you think this is an effective mission statement? Discuss how McDonald’s can have an operations and supply chain strategy that is consistent with the mission s

> What is the difference between tolerance limits and control limits? Is it possible that a process can be in statistical control but still not meet the customer’s needs? Explain.

> Suppose that the actual range for a sample falls below the lower control limit for the R chart? Is this a good thing or a bad thing? Explain.

> Recall the total quality management (TQM) approach, and discuss the seven core ideas that a business philosophy should be centered around.

> Fireproof safes are designed to safeguard valuable possessions in case of fire, in addition to theft. They can be classified into different categories. For instance, a class-A fire-resistant safe could protect paper at 2,000 degrees for four hours. As

> Do you think the same product will differ in quality based on the perceptions of different customers? Justify your answer. What is its implication to the seller and/or the manufacturer?

> According to the Quality Handbook, edited by Joseph Juran, what are the four different types of costs related to the quality of products?

> In the chapter, we stated that “there are countless possible measures of process performance, many of which are derived from the four core measures” quality, cost, time, and flexibility. In the following table, identify how you think the three measures w

> Do you think we should measure the performances of an organization’s business processes? Justify your answer. Briefly describe the four key core measures that could produce more specific measures of business process performance.

> Use the P&G example described in the chapter to explain the benefits to the customer of adopting a business processes perspective. Why might a traditional functional perspective have “blinded” P&G to the problems with the old system?

> Many universities now offer Web-based courses in lieu of traditional classes. These courses often contain lecture notes, linkages to videos and other documents, and online testing capabilities. How are Web-based courses positioned vis-à-vis large lecture

> Go back and look at Hayes and Wheelwright’s four stages of alignment. Do firms actually have to develop and then exploit core competencies in the operations and supply chain areas in order to be successful? That is, do all firms need to reach Stage 4?

> A production worker seems to know nothing about the different levels of product customization. As his supervisor, briefly explain the four levels of customization starting from the least to greatest.

> Between 1964 and 1966, Ford made more than 1 million Mustangs. Today car collectors are spending tens of thousands of dollars to restore to “like new” vintage Mustangs that originally sold for around $3,000. What types of manufacturing processes do you t

> At many college athletic events, you can find plastic drink cups with the school logo printed on it. Twenty years ago, these cups came molded in a variety of colors. Now nearly all the cups are white with only the printed logos containing any color. Use

> What are the characteristics of make-to-stock products? Can you give one or two examples of this product from daily life?

> Do you think the manufacturing and service process decisions are critical to a firm’s operations and supply chain management? Justify your answer.

> What are some of the benefits of including suppliers in the product development process? Can you think of any risks?

> Which type of product development effort would be better suited to concurrent engineering: a radically new product involving cutting-edge technologies or the latest version of an existing product? Why?

> Consider the phases of product and service development shown in Table 15.1. Why is it important to include customers early in the development process? Table 15.1:

> Consider some of the dimensions of product design that we listed as important to operations and supply chain managers. Are these dimensions more or less important than whether the product or service meets the customers’ needs? Can you think of situations

> We talked about concurrent engineering as an alternative to sequential development. What are the advantages of concurrent engineering? Under what circumstances might sequential development be preferable?

> Different customers can perceive the value of the same product or service very differently. Explain how this can occur. What are the implications for developing successful operations and supply chain strategies?

> In this chapter, we described several approaches to product design, including parts standardization and modularity. How do these two approaches relate to the dimensions of product design described earlier in the chapter?

> Why do you think it is important for project planners to revisit the network diagram as time goes on?

> What are the main advantages of using a network-based approach to project management rather than a Gantt chart? Under what circumstances might a Gantt chart be preferable to a network-based approach?

> In what businesses would you expect project management skills to be most important? In what businesses would you expect them to be least important?

> Visit the Web site for the Project Management Institute, at www.pmi.org. What types of educational material are available for project managers? What types of professional certification programs are available? What do you think a professional project mana

> In what ways might a firm’s suppliers improve or undermine the firm’s Lean efforts? Can you think of any examples from the chapter that illustrate this idea?

> We noted in the chapter that kanban is not a planning tool but a control mechanism. What did we mean by that? How does the MRP/kanban example in Example 13.4 illustrate the point?

> Comment on the relationship between quality management (Chapter 5) and Lean. Are they the same thing, or are there some differences?

> Even though waiting is a form of waste, does it always make sense to eliminate it? (Hint: Recall our discussion of waiting line theory in Chapter 6, and the relationship between resource levels and waiting times.)

> One of your friends asks you about the difference between necessary transportation and unnecessary transportation, based on the lean perspective on waste. Can you explain what they are? Illustrate your answer with examples.

> Go to the Web and see if you can find out the mission statement of a logistics and supply chain related company. From the said mission statement, can you find out why the organization exists? What are the core values that are important to the organizati

> Consider Figure 12S.1. Some people have argued that companies need to put in place information systems that address routine decision making and transactional requirements prior to tackling higher-level planning and decision making. Others strongly disagr

> What is the difference between an information flow and an information system? Do information systems always have to be computerized? Why?

> Explain in your own words how tools such as master scheduling, MRP, and DRP can be used to coordinate activity up and down a supply chain. For example, what information might we share with our customers? Our suppliers? What information might we want from

> What are the benefits of having a formal master scheduling process? What could happen to firms that don’t follow some of the basic rules of master scheduling?

> Master scheduling, MRP, and DRP have been around for a long time, but too many companies still do an inadequate job of using these tools. How can this be? In particular, what role do you think organizational discipline plays in making these tools work?

> What are the benefits of using material requirements planning (MRP)?

> The JIT/lean production movement has long argued that firms should: a. Maximize their process flexibility so that ordering costs are minimized; b. Stabilize demand levels; c. Shrink lead times as much as possible; and d. Assign much higher holding co

> In a supply chain, what are the pros and cons of pushing inventory downstream, closer to the final customer? How might modular product designs (Chapter 15) make it more profitable for companies to postpone the movement of inventory down the supply chain?

> Early in the chapter, we argued that “no single trend has done more to change the nature of business than the Internet.” Can you think of an example about how the Internet and its resources can be used in operations or supply chain management?

> Which of the following are independent demand inventory items? Dependent demand inventory items? a. Ice cream at McDonalds b. Bicycle seats in a bicycle factory c. An iPhone 6 Plus at an Apple store d. French fries at KFC e. Potatoes at a plant that