Required information [The following information applies to the questions displayed below.] Cardio World Incorporated (CWI) is a sporting goods retailer that specializes in bicycles, running shoes, and related clothing. The firm has become successful by careful attention to trends in cycling, running, and changes in the technology and fashion of sport clothing. In recent years, however, the profit margins have begun to fall, and CWI has decided to employ a contribution income statement to further analyze the company's profitability. The company has two stores, one in Hartford, Connecticut, and the other in Boston, Massachusetts. The total sales for the two stores for the most recent year are $6,935,000 and $5,785,000 for the Hartford and Boston stores, respectively. Both stores are considered profit centers, and within each store are two profit centers: one for clothing and the other for cycle and running shoes (called "cycle & run" below). The breakdown of sales within the two stores is approximately 50% clothing and 50% cycle & run for Boston but is estimated to be 60% / 40% for Hartford due to the greater interest in cycling in the Boston area. CWI is interested in finding the profit contribution of clothing and cycle & run at the Hartford store but not at the Boston store. Cost of purchases for resale averages 60% of retail value at Boston; at Hartford, the cost is 70% for clothing and 50% for cycle & run. Variable operating costs at each store are similar: 30% of retail sales at Boston, and at Hartford, variable operating costs are 25% of retail sales for the clothing unit and 35% for the cycle & run unit. CWI estimates it has a total of $1,175,000 fixed cost, of which $505,000 cannot be traced to either store; of the remaining $670,000, $385,000 is traceable to the stores and controllable by store managers, and $285,000 can be traced to the stores but cannot be controlled in the short term by the store managers. These fixed costs are estimated to be traceable to the stores as follows: Fixed Controllable Costs Boston Hartford total Clothing Cycle & run Could not be traced to clothing or cycling at Hartford Could not be traced to Boston or Hartford Fixed Noncontrollable Costs Boston Hartford total Clothing Cycle & run Could not be traced to clothing or cycling at Hartford Could not be traced to Boston or Hartford Percent of Total Cost 45% 45 50 30 20 10 Percent of Total Cost 40% 50 55 35 10 10 Required: 1. Prepare a contribution income statement for CWI showing the contribution margin, controllable margin, and contribution by profit center for both the Boston and Hartford stores, and also for the clothing and cycle & run units of the Hartford store.

ABC Corporation is a mid-sized manufacturing company that has been in operation for over 20 years. The company's financial performance has seen significant fluctuations due to market conditions, technological advancements, and changes in management strategy. Recently, ABC Corporation released its annual report, which includes a section on Management Discussion and Analysis (MD&A). Required: Based on the case study of ABC Corporation, critically analyze the role and usefulness of the Management Discussion and Analysis (MD&A) section in understanding the company's financial performance and strategic direction. Provide specific examples from the MD&A section to support your analysis.

[The following information applies to the questions displayed below.] A company like Golf USA that sells golf-related inventory typically will have inventory items such as golf clothing and golf equipment. As technology advances the design and performance of the next generation of drivers, the older models become less marketable and therefore decline in value. Suppose that in the current year, Ping (a manufacturer of golf clubs) introduces the MegaDriver II, the new and improved version of the Mega Driver. Below are year-end amounts related to Golf USA's inventory. Inventory Shirts Quantity 36 Unit Cost Unit NRV $65 $71 MegaDriver 16 370 290 MegaDriver II 31 390 430 3. Record any necessary adjusting entry to inventory. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) View transaction list Journal entry worksheet 1 Record any necessary adjusting entry for inventory. Note: Enter debits before credits. Transaction 1 General…

. Refresh Resorts, Inc., operates health spas in Key West, Florida; Phoenix, Arizona; and Carmel, California. The Key West spa was the company’s first and opened in 1991. The Phoenix spa opened in 2004, and the Carmel spa opened in 2013. Refresh Resorts has previously evaluated divisions based on RI, but the company is considering changing to an EVA approach. All spas are assumed to face similar risks. Data for 2017 are:  Q.Refer back to the original data. Calculate the WACC for Refresh Resorts.