Case Problem 1 Textbook Publishing
ASW Publishing, Inc., a small publisher of college textbooks, must make a decision regarding which books to publish next year. The books under consideration are listed in the following table, along with the projected three-year sales expected from each book:
Book Subject Type of Book Projected Sales (1000s)
Business calculus New 20
Finite mathematics Revision 30
General statistics New 15
Mathematical statistics New 10
Business statistics Revision 25
Finance New 18
Financial accounting New 25
Managerial accounting Revision 50
English literature New 20
German New 30
The books listed as revisions are texts that ASW already has under contract; these texts are being considered for publication as new editions. The books that are listed as new have been reviewed by the company, but contracts have not yet been signed. Three individuals in the company can be assigned to these projects, all of whom have varying amounts of time available; John has 60 days available, and Susan and Monica both have 40 days available. The days required by each person to complete each project are shown in the following table. For instance, if the business calculus book is published, it will require 30 days of John
Case Problem 1 Textbook Publishing ASW Publishing, Inc., a small publisher of college textbooks, must make...
Case Problem 1 TEXTBOOK PUBLISHING ASW Publishing. Inc., a small publisher of college textbooks, must make a decision regarding which books to publish next year. The books under consideration are listed in the following table, along with the projected three-year sales expected from each Book Subject Business calculus Finite mathematics General statistics Mathematical statistics Business statistics Finance Financial accounting Managerial accounting English literature German Type of Book Projected Sales ($1000s) Revision 10 18 Revision New New The books listed as...
CASE 20 Enron: Not Accounting for the Future* INTRODUCTION Once upon a time, there was a gleaming office tower in Houston, Texas. In front of that gleaming tower was a giant "E" slowly revolving, flashing in the hot Texas sun. But in 2001, the Enron Corporation, which once ranked among the top Fortune 500 companies, would collapse under a mountain of debt that had been concealed through a complex scheme of off-balance-sheet partnerships. Forced to declare bankruptcy, the energy firm...
Read the following Hornung v. Commissioner, 47 T.C. 428 (1967), which involves the constructive receipt doctrine and how it was used to determine the year of inclusion in taxable income. How does the constructive receipt doctrine impact a cash-basis individual’s taxable income? What factors could have resulted in a different determination? 47 T.C. 428 (1967) PAUL V. HORNUNG, PETITIONER v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT. Docket No. 3740-64. United States Tax Court. Filed January 27, 1967. 429*429 Michael J. Clare,...
Read the following Hornung v. Commissioner, 47 T.C. 428 (1967), which involves the constructive receipt doctrine and how it was used to determine the year of inclusion in taxable income and answer both question. How does the constructive receipt doctrine impact a cash-basis individual’s taxable income? What factors could have resulted in a different determination? 47 T.C. 428 (1967) PAUL V. HORNUNG, PETITIONER v. COMMISSIONER OF INTERNAL REVENUE, RESPONDENT. Docket No. 3740-64. United States Tax Court. Filed January 27, 1967....
Founded in 2006 by Blake Mycoskie, TOMS Shoes was an American footwear company based in Santa Monica, California. Although TOMS Shoes was a for-profit business, its mission was more like that of a not-for-profit organization. The firm’s reason for existence was to donate to children in need one new pair of shoes for every pair of shoes sold. Blake Mycoskie referred to it as the company’s “One for One” business model. While vacationing in Argentina during 2006, Mycoskie befriended children...
CASE 1-5 Financial Statement Ratio Computation Refer to Campbell Soup Company's financial Campbell Soup statements in Appendix A. Required: Compute the following ratios for Year 11. Liquidity ratios: Asset utilization ratios:* a. Current ratio n. Cash turnover b. Acid-test ratio 0. Accounts receivable turnover c. Days to sell inventory p. Inventory turnover d. Collection period 4. Working capital turnover Capital structure and solvency ratios: 1. Fixed assets turnover e. Total debt to total equity s. Total assets turnover f. Long-term...