Global services is considering a promotional campaign that will increase annual credit sales by $470,000. the company will require investments in accounts receivable, inventory, and plant and equipment. the turnover for each is as follows: accounts receivable 5 times inventory 10 times plant and equipment 4 times all $470,000 of the sales will be collectible. however, collection costs will be 3 percent of sales, and production and selling costs will be 76 percent of sales. the cost to carry inventory will be 10 percent of inventory. depreciation expense on plant and equipment will be 20 percent of plant and equipment. the tax rate is 35 percent. a. compute the investments in accounts receivable, inventory, and plant and equipment based on the turnover ratios. add the three together.

Many influential economists, politicians, and business leaders think that a shift toward a more integrated and interdependent global economy is a good thing. there is evidence to support the theory that falling barriers to international trade and investment drive the global economy toward greater prosperity. there are, however, critics who argue against globalization. anecdotes, evidence, and arguments can be collected to support each side of the debate.

Management discovers that a supervisor at one of its restaurant locations removes excess cash and resets sales totals throughout the day on the point-of-sale (pos) system. at closing, the supervisor deposits cash equal to the recorded sales on the pos system and keeps the rest. the supervisor forwards the close-of-day pos reports from the pos system along with a copy of the bank deposit slip to the company’s revenue accounting department. the revenue accounting department records the sales and the cash for the location in the general ledger and verifies the deposit slip to the bank statement. any differences between sales and deposits are recorded in an over/short account and, if necessary, followed up with the location supervisor. the customer food order checks are serially numbered, and it is the supervisor’s responsibility to see that they are accounted for at the end of each day. customerchecks and the transaction journal tapes from the pos system are kept by the supervisor for 1 week at the location and then destroyed. what control allowed the fraud to occur?

An investment offers a total return of 18 percent over the coming year. janice yellen thinks the total real return on this investment will be only 14 percent. what does janice believe the inflation rate will be over the next year?