# Janie graduates from high school in 2015

Janie graduates from high school in 2015 and enrolls in college in the fall. Her parents (who file a joint return) pay \$4,000 for her tuition and fees.

a. Assuming Janie’s parents have AGI of \$170,000, what is the American Opportunity tax credit they can claim for Janie?

# Abbee

TCO B) Use the following current year financial statements for Abbee Aviation to perform ratio analysis. Abbee

Aviation Income Statement Revenue \$4,400,000 Cost of goods sold 2,300,000 Gross profit 2,100,000 Operating expenses 750,000 Operating income (EBIT) 1,350,000 Interest expense 270,000 Earnings before taxes 1,080,000 Taxes (at 40%) 432,000 Net income 648,000

Abbee Aviation Balance Sheet Current assets Cash \$2,780,000 Accounts receivable 670,000 Inventory 750,000 Total current assets 4,200,000 Non-current assets Fixed assets 5,200,000 Accumulated depreciation (2,400,000) Net fixed assets 2,800,000 Total assets \$7,000,000 Current liabilities Accounts payable 890,000 Accrued liabilities 560,000 Total current liabilities 1,450,000 Non-current liabilities Bonds payable 3,000,000 Total liabilities 4,450,000 Shareholders’ equity Common stock 550,000 Retained earnings 2,000,000 Total shareholders’ equity 2,550,000 Total liabilities and shareholders’ equity \$7,000,000 (a) Calculate the firm’s operating return on assets. Assume that the firm’s year-end total assets balance for the prior year was \$6 million. (b) Calculate the firm’s net working capital (c) What is the number of “accounts receivable days” for Abbee Aviation? Assume that the firm’s year-end accounts receivable balance for the prior year was \$650,000. (d) What is the firm’s return on assets at the end of this year? Assume that the firm’s year-end total assets balance for the prior year was \$6 million

Question 1

The origin of what is now called __________ dates back to a book written by Dr. Walter Shewhart in 1931.

A. quality engineering

B. compliance management

C. statistical process control

D. QFD

Question 2 of 20

The Six Sigma __________ is significantly trained in Six Sigma and engaged in leading Six Sigma project execution under Master Black Belts.

A. Champion

B. Black Belt

C. Green Belt

D. Executive

Question 3

One of the roles of management in benchmarking is:

A. establishing relationships.

B. disclosure.

C. data collection.

D. action planning.

Question 4

__________ is founded on the premise that an organization’s performance against its goal can be determined and managed.

A. Kaizen

B. JIT/Lean

C. The Theory of Constraints

D. Six Sigma

Question 5

The first step in the SPC execution phase is:

A. to develop control charts.

B. flowcharting or characterizing the process to which SPC will be applied.

C. eliminate the special causes of variation.

D. collect and plot SPC data.

Question 6

The __________ phase of DMAIC focuses on why defects, errors, or excessive variation occurs.

A. Define

B. Measure

C. Analyze

D. Control

Question 7

Re-engineering is an appropriate replacement for benchmarking when:

A. tour process is fairly strong relative to best-in-class.

B. the best-in-class is not in your industry.

C. your process is not in statistical control, i.e., is unstable.

D. best-in-class is unwilling to cooperate.

Question 8

Lean is based on the manufacturing system that was developed by:

A. Motorola.

B. Toyota.

C. Goldratt.

D. IBM.

Question 9

The most common inhibitor of SPC is:

B. lack of resources resulting from the absence of management commitment.

C. failure to have processes under control.

D. low production rates.

Question 10

As part of its __________ responsibility, management in an organization that practices __________ must be personally involved in continual improvement.

A. leadership; fiscal responsibility

C. leadership; total quality

D. fiscal; total quality

Question 11

To continually improve a process, all people involved in its operation must be using the same:

A. documentation methods.

B. analysis techniques.

C. problem-solving tools.

D. procedures.

Question 12

The rationale for western manufacturers to embrace SPC is to:

A. improve product quality and simultaneously reduce costs.

B. be able to compete better with Japan and the world’s markets.

C. improve their product image.

D. All of the above

Question 13

The minimum management involvement relative to SPC training involves:

A. providing sufficient funding.

B. teaching classes.

C. commitment.

D. None of the above

Question 14

Six Sigma can only be achieved through:

A. hiring new staff.

B. process improvement.

C. creating a new mission statement.

D. cutting costs.

Question 15

Which of the following individuals is identified as the developer of JIT/LEAN/Lean?

A. Eiji Toyoda

B. W. Edwards Deming

C. Taiichi Ohno

D. Henry Ford

Question 16

The JIT/LEAN/Lean “pull” system ensures that:

A. costs are minimized through “economy of scale.”

B. the production line will never stop because of a problem.

C. buffer stocks are on hand to prevent line stoppage when a critical machine fails.

D. the internal supplier process does not build product unless told to do so by the internal customer process.

Question 17

Mass production is a(n) __________ system.

A. integrated

B. push

C. pull

D. breakthrough

Question 18

One of the three phases of benchmarking is:

A. conclusion.

B. postexecution.

C. reporting.

D. None of the above

Question 19

Which of the following behaviors best describe the concept of benchmarking?

A. Unethical

B. Illegal

C. Industrial espionage

D. None of the above

Question 20

The Five-Step Plan is the Japanese approach to implementing:

A. BCG matrix.

B. House of Quality.

C. Six Sigma.

D. Kaizen