A draft income statement shows a gross profit of $2000 and net profit of &1000. It is then realized that &400 of rent that should be treated as a prepayment has been incorrectly treated as an

17 A business income statement for the year ended 31 December 2004 showed a net profit of $83,600. It was later

found that $18,000 paid for the purchase of a motor van had been debited to motor expenses account. It is the

company’s policy to depreciate motor vans at 25 per cent per year, with a full year’s charge in the year of acquisition.

What would the net profit be after adjusting for this error?

A $106,100

B $70,100

C $97,100

D $101,600

Following the preparation of the profit and loss account, it is discovered that work-in-progress has been overvalued by ＄2,000 and an accrued expense of ＄500 has been overvalued. This will have resulted in ______.

A．an overstatement of net profit of ＄2,500.

B．an understatement of net profit of ＄2,500.

C．an overstatement of net profit of ＄1,500.

D．an understatement of net profit of ＄1,500.

Elegant Hotels is a chain of twenty hotels across the country. Each hotel is wholly owned by the company. Four years ago the chain was bought by a group of investors who installed a new management team.

The new management team introduced a new reward scheme for the hotel managers in an attempt to motivate managers to improve the revenue and profitability of the chain. The salary package devised for each manager comprised:

– A relatively low fixed salary

– A bonus payment based on high room occupancy rate. The occupancy rate is the percentage of usable hotel beds filled every night. Managers who achieved more than 90% occupancy rate receive a significant bonus. This target is aimed at keeping the hotel full.

– A smaller bonus payment based on the net profit margin achieved by the hotel. This is aimed at improving the profitability of the hotel.

However, despite these incentives the overall performance of the company is still declining. Managers are generally achieving a high occupancy rate but are largely failing to deliver higher net margins. It is also clear that some managers have achieved a high occupancy rate by declaring that some bedrooms were unfit for use or were being used as seminar rooms.

Also, the pursuit of high occupancy and high net profit appears to be affecting the perceived image of the hotel chain.

Once regarded as a mid-market hotel chain, the chain now seems to be perceived as a budget buy. A large percentage of bookings are received through the Internet broker lastsecondhotels.com and their view of the chain is given below, together with some visitor quotes from their web site.

Comments

‘Great last minute bargain … very easy to get rooms at half the advertised rate’

‘Full of school children on a trip … will not be using this chain again’

‘No Internet connections in the rooms or public areas, very disappointing’

‘The bath was cracked and the windows were dirty. Cheap, but badly in need of a clean’

‘Receptionists were very off-hand and unable to help. Did not seem to know much about the area surrounding the hotel’

‘The staff were surly and uncommunicative. Much worse than last time we visited it. It used to be such a lovely hotel’

‘Cheap, but don’t eat there. The price for breakfast was extortionate’

‘Cheap and cheerful but don’t pay the full rate! Always lots of cheap beds available’

‘Food was expensive and dull. The serving staff were uncommunicative, the cutlery was dirty and damaged. Staff were more interested in talking to each other than to the customers’

‘Restaurant food was very expensive and of poor quality. The two nights I stayed there I was the only customer in the restaurant’

Lastsecondhotels.com says: ‘Value for money hotels with rooms always available. Perfect for those last minute breaks’

Required:

(a) Analyse the unanticipated consequences of the management reward scheme at Elegant Hotels. (15 marks)

(b) The DMAIC methodology of Six Sigma includes five steps: Define, Measure, Analyse, Improve and Control.

Evaluate the potential benefits of using the DMAIC methodology at Elegant Hotels. (10 marks)

On 1 July 2014 Bycomb acquired 80% of Cyclip’s equity shares on the following terms:

–a share exchange of two shares in Bycomb for every three shares acquired in Cyclip; and

–a cash payment due on 30 June 2015 of $1·54 per share acquired (Bycomb’s cost of capital is 10% per annum).

At the date of acquisition, shares in Bycomb and Cyclip had a stock market value of $3·00 and $2·50 each respectively.

Required:

(a)Calculate the consolidated goodwill at the date of acquisition of Cyclip.

(b)Prepare extracts from Bycomb’s consolidated statement of profit or loss for the year ended 31 March 2015, for:Kaplow

(i)revenue;

(ii)cost of sales;

(iii)finance costs;

(iv)profit or loss attributable to the non-controlling interest.

The rise of "temp" work has further magnified the decreasing fights and alienation of the worker. It is common corporate practice to phase out full-time employees and hire temporary workers to take on more workload in less time. When facing a pressing deadline, a corporation may pay $15～$20 per hour for a temp worker, but the temp worker will only see $7 or $8 of that money. The rest goes to temp agency, which is usually a corporate chain, such as Kelly Services, that blatantly makes its profits off other people's labor. This increases profits of the corporations because they can increase a workload, get rid of the employee when they're finished, and not worry about paying benefits or unemployment for that employee. I have had to work with temps a few times in my current position, and the workers only want one thing - a full-time job with benefits. We really wanted to hire one temp I was working with, but we could not offer her a full-time job because it would have been a breach in our contract with the temp agency that employed her. To hire a temp full-time, we would have had to pay the agency over a thousand dollars. Through this practice and policy, the temp agency locks its temporary workers into a horrible new form. of servitude form. which the worker cannot break free.

Furthermore, corporate powers push workers to take on bigger workloads, work longer hours, and accept less benefits by instilling a paranoia in their workforce. The capitalist bosses assume dishonesty, disloyalty, and laziness amongst workers, and they breed a sense of guilt and fear through their assumptions. Where guilt doesn't seep in, bitterness, anger, and depression take over, the highest priorities of Big Business are to increase profits and limit liabilities. Personal relations and human needs are last on their list of priorities. So what we see is a huge mass of people who are alienated, disempowered, overworked, mentally and physically ill and who spend the vast majority of their time and energy on their basic survival. They are denied a chance to really "love", because they are forced to make profits for the capitalists in power.

Which of the following can NOT be listed as a reason for corporations' hiring temporary workers and phasing out full-time employees?

A．Corporations intend to leave more workload to temporary workers.

B．Temp workers are generally well-trained and can achieve high efficiency.

C．Corporations can reduce their production cost by employing temp workers.

D．Corporations can benefit a great deal from keeping a small full-time work force.

The rise of "temp" work has further magnified the decreasing rights and alienation of the worker. It is common corporate Practice to phase out full-time employees and hire temporary workers to take on more workload in less time. When facing a pressing deadline, a corporation may pay $15～$20 per hour for a temp worker, but the temp worker will only see $ 7 or $ 8 of that money. The rest goes to temp agency, which is usually a corporate chain, such as Kelly Services, that blatantly makes its profits off other people's labor. This increases profits of the corporations because they can increase a workload, get rid of the employee when they're finished, and not worry about paying benefits or unemployment for that employee. I have had to work with temps a few times in my current position, and the workers only want one thing--a full-time job with benefits. We really wanted to hire one temp I was working with, but we could not offer her a full-time job because it would have been a breach in our contract with the temp agency that employed her. To hire a temp full-time, we would have had to pay the agency over a thousand dollars. Through this practice and policy, the temp agency locks its temporary workers into a horrible new form. of servitude from which the workers cannot break free.

Furthermore, corporate powers push workers to take on bigger workloads, work longer hours, and accept less benefits by instilling a paranoia in their workforce. The capitalist bosses assume dishonesty, disloyalty, and laziness amongst workers, and they breed a sense of guilt and fear through their assumptions. Where guilt doesn't seep in, bitterness, anger, and depression take over, the highest priorities of Big Business are to increase profits and limit liabilities. Personal relations and human needs are last on their list of priorities. So what we see is a huge mass of people who are alienated, distempered, over- worked, mentally and physically iii and who spend the vast majority of their time and energy on their basic survival. They are denied a chance to really "love", because they are forced to make profits for the capitalists in power.

Which of the following can NOT be listed as a reason for corporations' hiring tern porary workers and phasing out full-time employees?

A．Corporations intend to leave more workload to temporary workers.

B．Temp workers are generally well-trained and can achieve high efficiency.

C．Corporations can reduce their production cost by employing temp workers.

D．Corporations can benefit a great deal from keeping a small full-time work force.

The introduction of new varieties of rice and wheat in Asia and Latin America has been(1)_____ as the "Green Revolution." So far the new seeds and the(2)_____ technology have not resulted (3)_____ increased agricultural production(4)_____ or reduced malnutrition. The direct, quantitative effects of high-yielding(5)_____ of food grains have been modest. The indirect and quantitative effects, however, have sometimes(6)_____ significant. The new technology has led to(7)_____ in crop pattern and in methods of production. It has accelerated the development of(8)_____ market-orientated, capitalist agriculture. It has encouraged the growth of wage labor, and(9)_____ helped to create or augment a (10)_____ of agricultural laborers. It has increased the power of landowners, and this in(11)_____ has been associated with a greater(12)_____ of classes and intensified conflict. Changes in status and class alignments have been accompanied(13)_____ changes in the distribution of income. Profits and rents have increased absolutely and relatively. The share of wages has declined and in some(14)_____ real wages rates or the number of days worked, or both, have declined. In(15)_____, an old system of agriculture, slowly (16)_____ swiftly is in the(17)_____ of being destroyed by the advance of contemporary technology. The policies that have accompanied the "Green Revolution" in many(18)_____ countries have aggravated the problems these countries(19)______. Supplies of some commodities have increased, but the rate of growth of total agricultural production has shown little(20)_____ to rise. At the same time, inequality has become worse, poverty has increased absolutely.

(1)

A．considered

B．thought

C．known

D．called

Task 2 Fill in each blank with the proper form of the words or phrases given below to complete the following passage. export profit process trade specialize consume exchange opportunity participation better off We (21) when we spend money in a store, restaurant or any other place of business as a (22) . It is believed that people trade in an attempt to be (23) . The (24) of importing and (25) creates a greater variety of goods and services because it permits countries to (26) in what they do best. In this way, a country can increase production and have (27) to make more sales and (28) , which can turn into increased wages for the work force and additional investment in plants and equipment. Through international business, countries (29) goods they produce the most efficiently for goods made in other countries. The more consumers there are on the market, the greater the ability of each country to excel in its own area of expertise. In short, international business is a win-win situation for all countries that (30) . 第21题答案请在此处填写，22-30题请随后依序填写。 21