Camptown Togs, Inc., a children's clothing manufacturer, has always found payroll processing to be costly because it must be done by a clerk. The number of piece-goods coupons received by each employee is collected and the types of tasks performed by each employee are calculated. Not long ago, an industrial engineer designed a system that partially automates the process by means of a scanner that reads the piece-goods coupons. Management is enthusiastic about this system, because it utilizes some personal computer systems that were purchased recently. It is expected that this new automated system will save $50,000 per year in labor. The new system will cost about $22,000 to build and test prior to operation. It is expected that operating costs, including income taxes, will be about $8,000 per year. The system will have a five-year useful life. The expected net salvage value of the system is estimated to be $5,000. (a) Identify the cash inflows over the life of the project. Fill in the table below. (Round to the nearest dollar.) Cash Inflows Year 0 1 2 2345 S S
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- Camptown Togs, Inc., a children's clothing manufacturer, has always found payroll processing to be costly because it must be done by a clerk. The number of piece-goods coupons received by each employee is collected and the types of tasks performed by each employee are calculated. Not long ago, an industrial engineer designed a system that partially automates the process by means of a scanner that reads the piece-goods coupons. Management is enthusiastic about this system, because it utilizes some personal computer systems that were purchased recently. It is expected that this new automated system will save $41,000 per year in labor. The new system will cost about $35,000 to build and test prior to operation. It is expected that operating costs, including income taxes, will be about $4,500 per year. The system will have a five-year useful life. The expected net salvage value of the system is estimated to be $3,500. Assume that the cash flows occur continuously throughout the year. (a)…CARMAX has several branches island wide. The company imports and sells motor vehicle parts and accessories to retail customers. With the increase in staff complement, the company has decided to implement a computerised wages system. All employees are required to work eight hours daily. The employees' hours are recorded using the magnetic card which is attached to their identification card. When each employee arrives for work, they hold their card close to the card reader. This must be done, as encoded in the reader is the employee's TRN and NIS number, which is linked to the payroll system. The reader recognizes the magnetic information on the card, identifying the employee as being 'at work. When the employee leaves work at the end of the day, the employee must log out by ensuring their ID is swiped, as the process is reversed showing that the employee has left work. The information that is used to calculate the employees' weekly salary is obtained directly from the magnetic card…CARMAX has several branches island wide. The company imports and sells motor vehicle parts and accessories to retail customers. With the increase in staff complement, the company has decided to implement a computerised wages system. All employees are required to work eight hours daily. The employees' hours are recorded using the magnetic card which is attached to their identification card. When each employee arrives for work, they hold their card close to the card reader. This must be done, as encoded in the reader is the employee's TRN and NIS number, which is linked to the payroll system. The reader recognises the magnetic information on the card, identifying the employee as being 'at work'. When the employee leaves work at the end of the day, the emplovee must log out by ensuring their ID is swiped, as the process is reversed showing that the employee has left work. The information that is used to calculate the employees weekly salary is obtained directly from the magnetic card…
- CARMAX has several branches island wide. The company imports and sells motor vehicle parts and accessories to retail customers. With the increase in staff complement, the company has decided to implement a computerised wages system. All employees are required to work eight hours daily. The employees' hours are recorded using the magnetic card which is attached to their identification card. When each employee arrives for work, they hold their card close to the card reader. This must be done, as encoded in the reader is the employee's TRN and NIS number, which is linked to the payroll system. The reader recognizes the magnetic information on the card, identifying the employee as being 'at work'. When the employee leaves work at the end of the day, the employee must log out by ensuring their ID is swiped, as the process is reversed showing that the employee has left work. The information that is used to calculate the employees' weekly salary is obtained directly from the magnetic card…The following describes the expenditure cycle for a hypothetical company.The company has a centralized computer system with terminals located in various departments. The terminals are networked to a computer application, and digital accounting records are hosted on a server in the data processing department. Each day, the computer in the data processing center scans the inventory records looking for items that must be replenished. For each item below its reorder point, the system creates a digital purchase order and prints two hard copies. A technician in the data center sends the purchase orders to the purchasing department clerk. Upon receipt of the purchase orders, the purchasing clerk reviews and signs them. He sends Copy 1 to the supplier and files Copy 2 in the purchases department.A few days later, the supplier ships the order and thegoods arrive at the receiving department. The receiving clerk reviews the digital purchase order from his terminal, inspects the goods, creates a…The following describes the expenditure cycle for a hypothetical company. The company has a centralized computer system with terminals located in various departments. The terminals are networked to a computer application, and digital accounting records are hosted on a serverin the data processing department. Each day, the computer in the data processing center scans the inventory records looking for items that must be replenished. For each item below itsreorder point, the system creates a digital purchase order and prints two hard copies. A technician in the data center sends the purchase orders to the purchasing department clerk.Upon receipt of the purchase orders, the purchasing clerk reviews and signs them. He sends Copy 1 to the supplier and files Copy 2 in the purchasing department.A few days later, the supplier ships the order and the goods arrive at the receiving department. The receiving clerk reviews the digital purchase order from his terminal, inspects the goods,…
- CD Express, Inc., provides CD duplicating services for its customers. An order from a customer can be for a single copy or for thousands of copies. Most jobs are broken down into batches to allow smaller jobs, with higher priorities, to have access to the machines.A number of activities carried out at CD Express are listed below.a. Sales representatives’ periodic visits to customers to keep them informed about the services provided by CD Express.b. Ordering labels from the printer for a particular CD.c. Setting up the CD duplicating machine to make copies from a particular master CD.d. Loading the automatic labeling machine with labels for a particular CD.e. Visually inspecting CDs and placing them by hand into protective plastic cases prior to shipping.f. Preparation of the shipping documents for the order.g. Periodic maintenance of equipment.h. Lighting and heating the company’s production facility.i. Preparation of quarterly financial reports.Required:Classify each of the activities…John’s Custom Computer Shop (JCCS) assembles computers for both individual and corporate customers. The company is organized into two divisions: Personal and Business. Once a computer is built, it is shipped to the customer. Billing for all customers is handled by the corporate Accounts Receivable Department. Accounts Receivable performs two major activities: billing and dispute resolution. Billing refers to preparing and sending the bills as well as processing the payments. Dispute resolution occurs when a customer refuses to pay, usually due to an error in billing. The costs of the Accounts Receivable Department are allocated to the two divisions based on the number of bills prepared. Kyle, the manager of the Business division, has complained that the allocated costs from Accounts Receivable are beginning to make the business division look unprofitable and has asked you to recommend some changes to the allocation system. If he agrees with your recommendation, he will pass them on…Iris Plant owns and operates three floral shops in Magnolia, Texas. The accounting functions are performed manually. Each of the shops has a manager who oversees the cash receipts and purchasing functions for the shop. A clerk at the central shop pays all the bills and also prepares payroll checks and maintains the general journal. Iris is seriously considering switching to a computerized system. With so many information system packages on the market, Iris is overwhelmed. Advise Iris as to which business modules you think her organization could find beneficial. Discuss advantages, disadvantages, and internal control issues.
- Johanna Computer manufactures laptop computers under its own brand, but acquires all the components from outside vendors. No computers are assembled until the order is received online from customers, so there is no finished goods inventory. When an order is received, the bill of materials required to fill the order is prepared automatically and sent electronically to the various vendors. All components are received from vendors within three days and the completed order is shipped to the customer immediately when completed, usually on the same day the components are received from vendors. The number of units in process at the end of any day is negligible. The following data are provided for the most recent month of operations: Actual components costs incurred Actual conversion costs incurred Units in process, beginning of month Units started in process during the month Units in process, end of month $1,200,000 $1,850,000 -0- 4,000 -0- (a) Assuming Johanna uses traditional cost…TIGHT LINES FISHING AND CAMPING SUPPLIES (NETWORKED COMPUTER SYSTEM AND MANUAL PROCEDURES) Tight Lines Fishing and Camping Supplies is a New York–based wholesaler of fishing and camping equipment that serves fishing and camping retailers throughout the north east. Tight Lines uses a centralized accounting system with networked terminals in the departments. You have been hired by Tight Lines to evaluate their processes, risks, and internal controls. The following paragraphs describe Tight Lines payroll and fixed asset systems. Payroll System Each day Tight Lines employees record their hours worked on time cards, which their supervisors review for correctness and submit to the payroll department at the end of the workweek.Using a terminal connected to the central payroll system, which is located in the data processing department, the payroll clerk inputs the time-card data, prints hard copies of the paychecks, prints two copies of the payroll register, and posts to digital employee…Ray Bus Lines has a small office staff, with most of their employees being bus drivers. Therefore, they have one person who hires bus drivers and prepares all employment paperwork, one person who oversees scheduling and records staff timesheets, and one person who prepares and pays the payroll. Why might this arrangement be problematic for Ray Bus Lines? a.They are missing the internal control of two different people preparing and paying the payroll. b. They are missing the internal control of two different people hiring drivers and preparing employment paperwork. c. They are missing the internal control of two different people overseeing schedules and recording timesheets. d. They are missing the internal control of having the same person record timesheets and prepare the payroll.