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Darren and Lyle are both business owners who run well-established and
sizeable plumbing and water systems firms in East London and Alice. A
recent drought has left the two towns water supply extremely depleted,
and Darren and Lyle decide that they want to buy 5 000 desalination units
and sell them at a high profit. They decide that they could merge their
businesses to shoulder this new venture together. Lyle is convinced that
debentures are the way to finance this endeavour. Is he correct? Explain
your reasons for or against the use of debentures to fund young business
ventures such as this.

Suppose you wanted to determine the perception of students in the University of Santo Tomas regarding the visit of Pope Francis in the Philippines last January 15-19, 2015. If UST has a population of 9, 250 

students, using random sampling method, how many samples will be taken from this university using the formula set at .05 degree of error?


Provide an examination of the factors that the managers of US retail companies had to take into consideration upon making a decision on the adoption of Supply Chain Information Technology. 


During global culture training for a group of employees who are being transferred to Egypt, Celina, the HR training manager, remarked, “In the Arab world, men often hold hands, which is meant to express ________.”




Question 1. This case encourages companies to expand offshore. Critically explain how Organizational Development (OD) principles could assist with plans of expanding organizations internationally? For each point, provide at least one example from the Pacific island countries (PICs).[4 marks]

2. Suppose you have been hired as an OD consultant to examine the demise of Viti Corporation. This exercise will require close collaboration between managers of Viti Corporation and yourself. From an OD perspective, describe some problems that might arise between you and the management. Propose strategies of foreseeing and mitigating the impact of these issues. Evaluate your discussion with relevant examples


Some selected balances of DD Co. for year ended Dec-31-2019 are as follows with their

normal balances before adjustments:

Cash and Cash Equivalent Br 20,000 Owners’ Capital 40,000

Notes Receivables 45,000 Retained Earnings 75,000

Office Supplies 12,000 Sales Revenues 640,000

Prepaid Insurance 72,000 Interest Income 12,000

Inventory (Average Cost) 24,000 Cost of Goods Sold 320,000

Fixed Assets 120,000 Selling Expenses 21,000

Accum. Depr- Fixed assets 36,000 Salary and Wages Expense 105,000

Unearned Rent (Liability) 56,000 Rent Expense 15,000

Required

v. Depreciation Expenses allocated for the year amounts to be Br 15,000

vi. There are accrued interest of Br 8,000 on the notes receivable

b. Prepare the following Financial Statements after adjustments on Dec-31- 2019.

i. Balance Sheet ii. Income Statement

c. Prepare closing journal entries after balances are adjusted and show the final closing of

Income Summary to Retained Earnings


Some selected balances of DD Co. for year ended Dec-31-2019 are as follows with their


normal balances before adjustments:


Cash and Cash Equivalent Br 20,000 Owners’ Capital 40,000


Notes Receivables 45,000 Retained Earnings 75,000


Office Supplies 12,000 Sales Revenues 640,000


Prepaid Insurance 72,000 Interest Income 12,000


Inventory (Average Cost) 24,000 Cost of Goods Sold 320,000


Fixed Assets 120,000 Selling Expenses 21,000


Accum. Depr- Fixed assets 36,000 Salary and Wages Expense 105,000


Unearned Rent (Liability) 56,000 Rent Expense 15,000


Required


a. Prepare the necessary adjusting entries for the following items as not yet recorded on


Dec-31-2019:


i. The office supplies consumed during the year is Br 8,000


ii. The Unexpired part of insurance is only Br 26,000


iii. Br 30,000 is earned sales revenues from the unearned advance collection


iv. Salary and wages accrued as on 31-Dec-2019 amounts to be Br 18,000





Discuss what forms of relevant information are applicable for business decisions related to Make or Buy Decisions, Accept or Reject Special Orders; Continue or Discontinue Business, and Sell or Process Further, and others





7. Explain cost accounting and its functions as well the distinguishing features of cost accounting

systems for (a) job order costing, and (b) process costing

8. a. Give suitable explanation on (i) Cost; (ii) Cost Objects; (iii) Cost Driver

b. Discuss the different forms of Cost Classification

9. Discuss (i). the notions and purposes of CVP Analysis, and


(iii) the Components of CVP Analysis (Break-Even Analysis, Target Analysis,

Margin of Safety Analysis, Sales-mix Analysis and others)


Discuss the components in detail of the following financial statements for a manufacturing

PLC:

a. Statement of Profit or Loss (Income Statement)

b. Statement of Financial Position (Balance Sheet)

c. Statement of Changes in Owners’ Equity

d. Statement of Cash Flows


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