Scenario: Bay City Auto Bay City Auto is a luxury car dealership operating in Hawkes Bay. They sell new and used cars and have a service and parts division. They hold the sole dealership for one luxury European brand and two mid-range brands. One of the mid-range brands has totally electric vehicles (EVs). They have a marine division based in both Hawkes Bay and Auckland which sells and services leisure craft. Bay City Auto owns the Hawkes Bay land and buildings and leases the Auckland buildings. The Hawkes Bay site has an adjacent investment property which houses a separate warehouse. This is on a separate title and is leased out. In order to hold the dealership for the EVs, Bay City Auto had to buy specialised equipment and alter the workshop so the new equipment would fit in, as well as install an EV charging station. This was a requirement from the brand owner. They have specified a quick charging station and require all EV s in for servicing to be charged before the cars are returned to the customer. They also had to retrain half of their technicians so servicing could be completed on the EVs. This new equipment meant that management is now making decisions about where and when to dispose of the old equipment. Since Covid the supply of new vehicles has become uncertain. This is due to the global semiconductor shortage squeezing the supply of microchips necessary in car manufacture. Every manufacturer has faced delays in production and for two of Bay City Auto's brands, manufacturing has been temporarily shut down. The war in Ukraine has disrupted the global supply of neon gas, which is used to make semiconductors. This has resulted in a large reduction of new vehicles available for sale and has pushed up the price of used vehicles. New vehicle sales are far below forecast and the cost of stock holdings for used vehicles has reduced available cash. The Clean Car rebate came into effect on 1 July 2021 and until 31 March 2022, provided fixed rebates (for eligible new and used light electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs) after they are registered in New Zealand for the first time. This meant an increase in demand for the EVs Bay City Auto sells. Bay City Auto has found it difficult to meet the demand because of global supply issues. Boat orders have been far in excess of original forecasts, but worldwide shipping delays have meant that customers are waiting up to 6 months for their boats to arrive. Bay City Auto has a 31 March financial year-end and uses a discount rate of 5\%. You have been appointed as CFO and are responsible for dealing with the accounting treatment of the scenarios outlined in the case study.
Answers
As the CFO, I will need to address the accounting treatment for the dealership's new equipment, disposal of old equipment, and the impact of global supply issues on vehicle sales and boat orders. I will also need to consider the Clean Car rebate's effect on demand for EVs and PHEVs.
As the newly appointed CFO of Bay City Auto, there are several accounting treatments that need to be addressed based on the given scenario:
Accounting for the purchase of specialized equipment and workshop alterations for EVs: The costs incurred for buying the equipment and modifying the workshop should be capitalized as part of the property, plant, and equipment (PPE) and depreciated over their useful life. The EV charging station should also be capitalized as part of the PPE.
Disposal of old equipment: The decision-making process for disposing of the old equipment should consider the carrying value of the assets, potential proceeds from the sale, and any associated costs of disposal. The disposal should be recorded by removing the assets' carrying value from the balance sheet and recognizing any gain or loss on the disposal.
Impacts of the global semiconductor shortage: The shortage of microchips affecting new vehicle production should be assessed for potential impairments of inventory and property, plant, and equipment. Any significant impairments should be recognized in the financial statements.
Effects of the Clean Car rebate and increased demand for EVs: The increased demand for EVs due to the Clean Car rebate should be considered in forecasting sales, inventory levels, and potential impacts on profitability. The accounting treatment should ensure accurate recognition of sales revenue, cost of sales, and any related rebates or incentives.
Shipping delays and boat orders: The delays in worldwide shipping impacting boat orders should be considered in assessing the carrying value of inventory, potential impairments, and customer commitments. Appropriate provisions or disclosures may be necessary to reflect the uncertainties and potential financial impacts.It is important to carefully analyze each scenario and consult with the relevant accounting standards (such as IAS 16 for PPE, IAS 36 for impairments, and IFRS 15 for revenue recognition) to ensure proper accounting treatment and disclosure in the financial statements.
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Related Questions
Can an individual's financial situation change his or her views of what is
considered a need and what is considered a want? Explain.
Your answer
Answers
Thinking about your office or college, what types of
information are conveyed through the grapevine? How
often is the information accurate?
Answers
Answer: I would experience a lot of cluster chains speaking on if someone was in trouble. An employee would be called to the back office if they were either in trouble or getting a promotion.
Explanation:
What is meant by 'internal communication'
Answers
Answer:
Internal Communication is a Function responsible for effective communications among participants within an organization. The scope of the function varies by organization and practitioner, from producing and delivering messages and campaigns on behalf of management, to facilitating two-way dialogue and developing the communication skills of the organization's participants.
i mass marketing is better than niche marketing true or false
Answers
Answer:
It is true
Explanation:
the magnitude of operating leverage for perkins corporation is 4.5 when sales are $100,000. if sales increase to $110,000, profits would be expected to increase by what percent? a. 4.5% b.14.5% c.45% d.10%
Answers
It would be anticipated that the profit would rise by 45%. The appropriate response to the given question is option (c).
What is Operating Leverage?The percentage of a company's cost structure that is made up of fixed expenses as opposed to variable costs is measured by operating leverage. A corporation is said to have more operating leverage if its fixed expenses are higher than its variable costs.
Magnitude of operating leverage= 4.5
Old sales= $100000
New sales= $110000
Percentage increase in sales:
(New-old)/old = (110,000-100,000)/100,000
= 10%
Consequently, a percentage rise in profit might be anticipated:
sales percentage growth times the degree of operational leverage
= 10% * 4.5
= 45%
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alice cooper contributes six percent of her monthly earnings to her 401k plan at work. the plan allows her to invest in several different types of mutual funds and her employer matches up to 3% of her salary. which suggestion for obtaining the money she needs for investing is she following?
Answers
According to the question, the answer should be taking advantage of employer-sponsored Investment programs.
What is Investment?Any asset that is purchased at cost with the expectation that its future worth would outweigh its current cost and time to value is referred to as an investment. This occurs as a result of the asset's value increasing.
Investors buy financial investments as tools in the hopes of generating a higher return in the future. These instruments are often stocks. As an illustration, an investor might buy $1,000 worth of stocks from a business. The funds are used by the business to expand and finance operations. The value of the investor's shares could increase to $1200 if the business grows. The investor will have made a profit of $200 on their initial investment.
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Why do we say that credit is basically a loan?
Answers
Do you believe the government should play a role in speeding up or slowing down the economy
Answers
Answer:
Yes I do believe they should because it is important to speed up economy's rate of growth
A real estate agent is showing homes to a prospective buyer. There are twelve homes in the desired price range listed in the area. The buyer has time to visit only five of them. a. In how many ways could the five homes be chosen if the order of visiting is considered? b. In how many ways could the five homes be chosen if the order is disregarded? c. If eight of the homes are new and four have previously been occupied and if the five homes to visit are randomly chosen, what is the probability that exactly four of the homes to visit are new?
Answers
a. The five homes can be chosen in 12,096 ways if the order of visiting is considered.
b. The five homes can be chosen in 792 ways if the order is disregarded.
c. The probability that exactly four of the homes to visit are new is approximately 0.651.
a. When considering the order of visiting, we can use the concept of permutations. Since the buyer can choose any of the twelve homes as the first, then eleven homes as the second, ten homes as the third, and so on, the total number of ways to choose five homes in order is calculated as 12 x 11 x 10 x 9 x 8 = 12,096.
b. If the order is disregarded, we use the concept of combinations. The number of ways to choose five homes from twelve, regardless of their order, can be calculated using the combination formula. Therefore, the answer is calculated as \(12! / (5! * (12-5)!) = 792.\)
c. To calculate the probability that exactly four of the homes to visit are new, we need to determine the total number of ways to choose five homes from the twelve available and the number of ways to choose four new homes from the eight new homes available. The probability is then the ratio of these two numbers. The total number of ways to choose five homes from twelve is calculated using combinations as \(12! / (5! * (12-5)!) = 792\). The number of ways to choose four new homes from eight is calculated as \(8! / (4! * (8-4)!) = 70.\) Therefore, the probability is 70/792, which simplifies to approximately 0.651.
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An unanticipated expense that will make it difficult to get by day-to-day would be a candidate for…
Answers
Answer:
blehhhhhhhjhhhhhhh
Explanation:
You are willing to supply the most cookies at the
price.
price, and consumers will demand the most cookies at the price
lowest, highest
highest, lowest
Answers
Hope this helps :)
Will you act immediately on the business opportunity \that you have identified?
Answers
Answer:
Yes because once one has found an opportunity one must seize it.
Explanation:
It is not advisable to act immediately on the business opportunity that is determined.
A business opportunity includes the lease or sale of any specific product, equipment, or service that will help or make it possible for the purchaser-licensee to begin a business. It is important to consider certain other factors before immediately acting on the business opportunity that is determined. They are:
Size of the Market Relationships with potential investors or customers Capability to manage the Cash Flow Persistence and Passion Management skillsThus, we can conclude that one must not act immediately on the business opportunity that is determined before properly analyzing different factors associated with it.
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do you guys like Canada? or leaves in Canada and do you thin im a cut Canadian
Answers
Answer:
I love canada but I live in america :(
but hey we just got the Cheeto out so it's getting better here (*˘︶˘*).｡*♡
Some banks offer interest on the money that is in the checking account.
~True
or
~False
Answers
Answer:
no
Explanation:
You can think of a checking account as the workhorse of financial accounts. ... But many checking accounts don't earn interest.
who is responsible for the preparation of the financial statement
Answers
Answer:
Account manager or chief accountant
Explanation:
3.08 Free trade and Barriers
Pls help I just have until today
Answers
While free trade has its advantages, it is important to consider the potential negative effects and to find ways to address them without resorting to trade barriers. Governments must find a balance between promoting free trade and protecting their citizens from harm.
Free trade refers to the international exchange of goods and services without any restrictions or barriers. The aim of free trade is to promote economic growth, create more jobs, and increase competition among businesses. It allows countries to specialize in producing goods and services that they have a comparative advantage in, thereby leading to greater efficiency and productivity. Free trade is also seen as a way to reduce poverty and increase living standards by providing access to cheaper goods.
However, there are also arguments against free trade, particularly from those who believe it can lead to the exploitation of workers, environmental degradation, and a loss of sovereignty. Some people argue that free trade can lead to a "race to the bottom" where countries compete to offer the lowest wages and poorest working conditions in order to attract investment.
To address these concerns, governments may introduce trade barriers such as tariffs, quotas, and subsidies. These barriers restrict the flow of goods and services between countries and protect domestic industries from foreign competition. While trade barriers may provide short-term benefits to certain industries, they can also lead to higher prices for consumers, reduced competition, and a lack of innovation.
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an employee can be dismissed if their job surplus to requirements' outline why this state ment is false
Answers
introduce national employment with its importance and examples
Answers
Answer:
national employment. Employment created and provided by a national employer, business, company, enterprise, organization or national unity government in various areas of a country. National employment is a vital part of an economic system.
Explanation:
Employment created and provided by a national employer, business, company, enterprise, organization or national unity government in various areas of a country. National employment is a vital part of an economic system.
What is NOT an advantage of being an entrepreneur?
Answers
Answer: Disadvantages include a lack of guarantee of success and the heightened responsibility of owning a business
Answer:
The advantages of entrepreneurship include the ability to shape one's own business, control of one's own working habits, and significant stock in the venture. Disadvantages include a lack of guarantee of success and the heightened responsibility of owning a business.
Explanation:
Write about the ways to maintain a positive body
image.
What I Should Do to Maintain a Positive Body Image
Answers
Answer:
Eat Healthy
Maintain a good diet
Meditate
Practice self confidence
Work out
Stay positive
Have a healthy mental state
assignment is prohibited when the obligor is agreeing to perform personal services. true or false?
Answers
The given statement is false. In cases when the obligor is promising to provide personal services, assignment is not forbidden.
Assignment is not prohibited when the obligor is agreeing to perform personal services. While certain contracts or agreements involving personal services may contain provisions that restrict or prohibit assignment, it is not a universal rule. The permissibility of assignment in such cases depends on the specific terms and conditions agreed upon by the parties involved. In many situations, assignment is allowed unless explicitly prohibited by the contract or applicable laws. It is important to carefully review the terms of the agreement to determine if assignment is permitted or restricted.
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1. The Industrial Revolution began primarily because of.
A) Larger numbers of people unable to find work
B) The growth of corporations in the U.S.
C) The invitation of machines allowing the faster processing of raw materials.
D) Managers using practices to improve productivity of employees.
2. The first effort to apply scientific study to the management of businesses was?
A) Behavioral management
B) Classical management
C) Quality management
D) administrative management
Answers
The Industrial Revolution began primarily because of the invitation of machines allowing the faster processing of raw materials. The Option C is correct.
What led to Industrial Revolution in Europe?The Industrial Revolution transformed the economy from an agrarian to a manufacturing economy in which products were no longer made solely by hand but also by machines. This resulted in increased output and efficiency, lower prices, more goods, higher wages, and a shift from rural to urban areas.
The first Industrial Revolution began in Great Britain in the mid-to-late 1700s, when innovation led to large-scale production of goods through machine manufacturing. This spread around the world, and the Second Industrial Revolution began in the late 1800s in the United States, with further technological advancements leading to greater efficiency.
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Which of the following projects is most likely be used in STEM education to learn technology concepts?
test different sandbag materials that can help prevent flooding
investigate search engine criteria to improve search results
O analyze cleaning products to determine which ones are eco-friendly
conduct a scavenger hunt to see who can find the most geometric shapes
Answers
Answer:
investigate search engine criteria to improve search resultsExplanation:
Remember, the application of STEM implies using the knowledge found in the field of science, technology, engineering, and mathematics to carry out projects.
Since the focus is on learning technology concepts, the most likely, that is, the project that is closest to technology is investigating search engine criteria to improve search results.
The answer is:
A) investigate search engine criteria to improve search resultsWhich of the following is an example of typosquatting? Group of answer choices A start-up investment company assumes the online identity of Arman & Company, a well-established investment company, in social networking platforms for the purposes of acquiring its brand equity. An environmental support group creates a spoof of the advertisement of a popular beverage company, highlighting its degradation of the environment by releasing waste products into the water bodies near its bottling plant. A person registers a domain name, Tucson Multispecialty Clinic, which is the name of a popular multispecialty clinic hoping to resell it to the clinic at an exorbitant profit. A person registers the domain name "currentaffairs.net" to take advantage of the huge popularity of the e-newspaper currentaffairs.org to divert traffic to his webpage and make money by selling advertising space.
Answers
Answer:
An environmental support group creates a spoof of the advertisement of a popular beverage company, highlighting its degradation of the environment by releasing waste products into the water bodies near its bottling plant.
Explanation:
An example of typosquatting is an environmental support group creates a spoof of the advertisement of a popular beverage company, highlighting its degradation of the environment by releasing waste products into the water bodies near its bottling plant.
You end up leasing $17179.14 after the down payment and taxes for 3 years. The interest rate is 1.96% compounded monthly. (Interest rates are lower on leases as compared to financing) Calculate the monthly lease payment due at the beginning of the month.
Round your answer to two decimal places.
Answers
To calculate the monthly lease payment, we can use the formula for calculating the present value of an annuity. The formula is:
PV = PMT * [(1 - (1 + r)^-n) / r]
Where PV is the present value of the lease, PMT is the monthly lease payment, r is the monthly interest rate, and n is the total number of months.
In this case, we know the present value of the lease is $17179.14, the interest rate is 1.96% compounded monthly, and the lease is for 3 years, which is equivalent to 36 months.
Let's plug these values into the formula:
17179.14 = PMT * [(1 - (1 + 0.0196)^-36) / 0.0196]
Now, let's solve for PMT:
PMT = 17179.14 / [(1 - (1 + 0.0196)^-36) / 0.0196]
Using a calculator, we find that the monthly lease payment, rounded to two decimal places, is $488.10.
To find the monthly lease payment, we used the formula for calculating the present value of an annuity. This formula takes into account the present value of the lease, the monthly interest rate, and the total number of months. By plugging in the given values and solving for the monthly lease payment, we found that it is $488.10.
The monthly lease payment, due at the beginning of the month, is $488.10. This means that the lessee will need to make this payment every month for the duration of the lease, which is 3 years or 36 months.
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Banksy is most associated with which city?
Answers
Bristol
Banksy's work grew out of the Bristol underground scene, which involved collaborations between artists and musicians. Banksy says that he was inspired by 3D, a graffiti artist and founding member of the musical group Massive Attack.
Global trade offers opportunities because there are so many potential:________
Answers
Global trade offers opportunities because there are so many potential markets to explore.
What is global trade?
Global trade also referred to as international trade, refers to the exchange of goods and services across international borders. This form of trade contributes to a country's economic growth and helps improve the global economy. Global trade offers a lot of potential opportunities to individuals, businesses, and countries. Some of these potential benefits are as follows:
Increased market: When a business expands its market, it increases the demand for its goods and services, which leads to an increase in profit. Global trade allows businesses to expand their market beyond their country's borders, which provides them with vast market potential.Lower cost: When countries trade with one another, they can obtain goods and services at a lower cost than what they would have spent producing them. The cost of production in some countries is lower than in others, and trading with these countries provides access to cheaper goods and services.Job creation: Global trade opens up opportunities for businesses to grow, which leads to the creation of more jobs in different countries.Improved standards of living: Global trade leads to a decrease in the cost of living and provides individuals with access to a more extensive variety of goods and services.Broadened horizon: Global trade provides individuals with a chance to learn about different cultures and their practices. It also offers businesses opportunities to acquire knowledge about the business practices of other countries, which could help them grow.In conclusion, global trade offers many potential benefits. These benefits range from job creation to the broadening of horizons.
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1. Despite the expense, why might a business choose to mail a catalog?
Answers
Answer:
Catalogs can promote a business's brand by displaying them in high-traffic areas and distributing them in stores. Customers often have an idea of what they want to buy after looking through a catalog. But, they'll likely find other items they want to buy when they go online or to a brick-and-mortar store to order.
from superior to inferior, what is the correct order of the vertebrae?
Answers
The correct order of the vertebrae from superior to inferior is the following: Cervical vertebrae (C1-C7) Thoracic vertebrae (T1-T12) Lumbar vertebrae (L1-L5) Sacrum Coccyx
Vertebrae refer to the chain of bones that are interlocked and form a supportive structure called the spinal column. The spine is responsible for supporting the body, protecting the spinal cord, and allowing the body to move in various directions. There are five regions of vertebrae, each of which corresponds to a specific anatomical region in the body. The order of vertebrae from superior to inferior is cervical vertebrae, thoracic vertebrae, lumbar vertebrae, sacrum, and coccyx.
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IBM has created a reputation as being a quality innovator in a fast-paced industry. One approach used to spawn innovation was the IBM Innovation Jam, where IBM gathered data and ideas from thousands of individuals within and outside the organization. This resulted in the emergence of numerous new innovative ideas and the launch of new businesses.Managing innovation within a corporation is difficult since companies must find the appropriate level of incremental versus radical innovation investments. IBM struggled with focusing too much on incremental innovations in an industry that demanded radical innovations. To spawn creativity and ideas, IBM launched the Innovation Jam to gather ideas from employees, partners, and other individuals.Read the case below and answer the questions that follow.IBM is one of the best known corporations in the world, but its CEO, Samuel Palmisano, saw a major challenge for the firm. Though IBM had great ability to do basic scientific research and owned the rights to over 40,000 patents, it had struggled to translate its patented knowledge into marketable products. Also, it had built a reputation with investors as a firm with incremental product development, not the reputation needed in dynamic technological markets. Palmisano saw crowdsourcing as a means to move IBM forward in a bold way.In 2006, IBM hosted an Innovation Jam, an open event that involved 150,000 IBM employees, family members, business partners, clients, and university researchers. The jam took place over two 72-hour sessions. Participants from over 100 countries jammed for 24 hours a day over three days. The discussions were organized around 25 technologies in six broad categories. While the jam discussions were rich in content, it was a challenge for IBM to pull meaningful data from them. The 24-hour format meant that no single moderator could follow any discussion, and the volume of posts to the discussion threads left IBM with a huge amount of data to wade through. The discussions yielded 46,000 potential business ideas. To make sense of the data, IBM organized the discussion threads using sophisticated text analysis software and had a team of 50 managers read through the organized data. Using data from the first session, the managers identified 31 "big ideas." They further explored these 31 ideas in the second jam session. IBM then used another set of 50 global managers to review the discussions from the jam. Teams of managers focused on related groups of ideas, such as health care and the environment.IBM’s managers saw the jam as serving three purposes. First, it gave individuals both inside and outside IBM who already had big ideas a forum in which to share their vision with top managers. Second, it gave individuals with smaller ideas a venue to link up with others with related ideas, resulting in larger major initiatives. For example, individuals who had ideas about better local weather forecasting, sensing devices for water utilities, and long-term climate forecasting came together to create "Predictive Water Management," a comprehensive solution for water authorities to manage their resources, a business solution no one at IBM had thought of before the jam. Third, the global structure of the jam allowed IBM, early on, to see how employees, partners, and customers from different regions had different goals and concerns about possible new businesses. For example, what customers wanted from systems to manage health care records varied greatly across regions.Based on the jam sessions, IBM launched 10 new businesses using $100 million in funding. One, the Intelligent Transportation System, a system that gathers, manages, and disseminates real-time information about metropolitan transportation systems to optimize traffic flow, has been sold to transportation authorities in Sweden, the UK, Singapore, Dubai, and Australia. Another, Intelligent Utility Networks, became a core product in IBM’s public utility business. A third, Big Green, became part of the largest initiative in IBM’s history, a billion-dollar project on better managing energy and other resources.What was one of the issues IBM faced during the Innovation Jam?a. Analysis of a tremendous amount of data.b. Not enough employees to manage the new companies created.c. Issues with servers breaking down.d. All of these are issues IBM faced.
Answers
One of the issues IBM faced during the Innovation Jam was analysis of a tremendous amount of data.
One of the issues IBM faced during the Innovation Jam was the challenge of analyzing a tremendous amount of data generated from the jam sessions. With thousands of participants contributing to discussions over a 72-hour period, IBM had to sift through a large volume of posts and discussion threads. The 24-hour format and the sheer volume of data made it difficult for a single moderator to follow every discussion. As a result, IBM had to employ sophisticated text analysis software and a team of managers to organize and extract meaningful insights from the data. Therefore, the analysis of a tremendous amount of data was one of the challenges faced by IBM during the Innovation Jam.
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