Design performance pay plan and indirect pay plan for Henderson printing company.

"Henderson Printing is a small- to medium-sized manufacturer of account books, ledgers, and various types of record books used in business. Located in Halifax, the company has annual sales of about $12 million, mostly in the Atlantic provinces. The owner, George Henderson, is a firm believer in making a high-quality product that will stand up to many years of use. He uses only high-grade paper, cover stock, and binding materials. Of course, this has led to high production costs and high prices. He also believes in a high level of customer service and is willing to make the products to customers' specifications whenever they so request. However, resetting the equipment for relatively short production runs of customized products takes considerable extra time and, of course, also drives up costs. The firm employs about 80 people, most of whom work in production. The firm has a few supervisors to oversee production, but their responsibilities are not clearly spelled out, so the supervisors often contradict one another. There is no system for scheduling production; in fact, there are few systems of any kind. Whenever there is a problem, everyone knows that you have to go to George if you expect a definite answer. The company also has several salespeople who travel throughout the Atlantic region; most of them are relatives of George or his wife. The company has one book- keeper to keep records and issue the paycheques, and several office employees to handle routine administrative chores. The firm has no specialists in accounting, marketing, human resources, or production; George handles these areas himself, although he has no real training and little interest in any of them except production. He focuses most of his attention on ensuring product quality and on dealing with the countless problems that everyone brings to him every day. He has often been heard to exclaim, in his usual good-natured way, 'Why am I the only one who can make decisions around this place?" as he deals with each of these problems. When George was growing up, both his parents (his father was a printer and his mother was a seamstress in a garment factory) had to work hard in order to scratch out a living for their family. In those days, employers who showed little consideration for their employees were the norm, and George resolved that things would be different if he ever became an employer. Today, George tries hard to be a benevolent employer. Although he feels the organization cannot afford any formal employee benefits, he often keeps sick workers on payroll for a considerable time, especially if he knows the worker has a family to support. George is well liked by most employees, who have shown little interest in unionization during the few approaches made by union organizers. George has no formal system for pay and tends to make all pay decisions on the spur of the moment, so almost everybody has a different pay rate. He has never gotten around to giving annual raises, so any employee who wants a raise has to approach him. He gives raises to most people who approach him, but the amount depends on his mood at the time and on how well he knows the employee. For example, if the firm has just lost a major customer, raises are lower, and if the firm has just booked a large order, they are higher. They are also higher if he knows the employee has a family to support, or if the employee's spouse has been laid off, or if the employee has added a new member to the family. George believes that a good employer should recognize the contributions made by employees during the year. So every Christmas, if profits allow, he gives merit bonuses to employees, which he says are based on their contributions to the firm. One day in early December, he sits down with his employee list, in alphabetical order, and pencils in an amount next to each name. Everybody gets something, but the amounts vary greatly. If he can associate a face with the name (which is difficult sometimes, because new employees seem to turn over a lot), he tends to give larger bonuses. And if he can remember something such as a cheerful attitude, the bonuses are higher still. But if he remembers anyone complaining about that employee for some reason or another (he usually can't recall the exact reasons), the employee gets a smaller bonus. Not surprisingly, longer-term employees tend to receive much higher bonuses than new employees. He has noticed this tendency but assumes that if an employee has been with the firm longer, that person must be more productive, so this is fair. He personally distributes the bonus cheques on the last working day before Christmas. Since he has just turned 60, George is planning to retire in the next year or two and turn the business over to his daughter, Georgette Henderson, who is just finishing her commerce degree at Dalhousie University. Ironically, it was on the day of his 60th birthday that his bookkeeper informed him that there wasn't enough money in the bank account to meet payroll."

Some recent financial statements for Smolira Golf Corp folow. SMOLIRA GOLF CORP 2014 and 2015 Balance Sheets Assets Liabilities and Owners' Equity 2014 2015 2014 2015 Current assets Current Habilities Cash S 24, 126 $ 24.900 Accounts payable $ 23,98-4 $ 27 900 Accounts receivable 13 248 16 090 Notes parable 18,090 11.600 Inventory 26,547 27,900 Other 12.371 16.500 Total $ 63 916 5 65,800 Total $ 54.355 3 56 000 Long-term debt $ 77 000 $ 87 000 Owners' equity Common stock and paid in suplus $ 50 000 $ 50 000 Accumulated retained earnings 215.756 238,000 Fixed assets Net plant and equipment $332,695 $362,200 Tolal $265 256 3280,000 Total assets 5396 611 $431,000 Total liabilities and owners' equity $396,611 5431,000 SMOLIRA GOLF CORP 2015 Income Statement Sales $392,907 Cost of goods sold 256,500 Depreciation 48,400 Earnings before interest and taxes 5 83 007 Interest paid 15.100 Taxable income $ 72,907 29,163 Net income 5 43,744 Dividends 5 21,000 Aclaimed naminga 22,744 Fixd the following financial radios for Smolra Goll Corp (use year-and figures rather than average values where appropriate, (Enter your profitability ratio answers as a percent rounded to ? decimal places, 6.9.. 32 16. Found the remaining answers to 2 decimal places, c.p., 12.16.) Short-term solvency ratios. 2014 2015 O Type here to search M CO 3 5 W E R Y A S D F G HData Table 0% 5% 10% 15% 20% Growth Rate Income Interest Expense Drop Down Cell Poor OK Expected Good High Growth Rate Income Interest Expense Tax Rate 35% 35% 35% 35% 35% Interest Rate 5% 5% 5% 5% 5% Growth rate 0% 5% 10% 15% 20%Statement of Income and Expenses Statement of Income and Expenses Ryan and Tillany Pierce Statement of Income and Expenses for Past Year [2019) and Expected [ Approximate) For This Year (2920] Cash Inflows Ryan's Salary $100 0go 6 8, 796 Totals Tiffany's Salary $34,500 24 790 ML Brokerage Account Investmem Portfolle Savings Account Education Fund Total Cash Inflows 5145 501 Cash Outflows Savings 401 Plan $15,040 10 0 Total Savinga 415.000 Federal Income Tasra Withhold $17,200 State Income Taxes Withheld $4,000 Property Tax Residence 14,916 ND PayTell [FICA] 7. 9410,404 Total Taxes $565463 39 % Debt Payments ( Principal & Interest] Principal Residence Mortgage $14,0191 NB Arlo Loan 125 6 518.810 Credit Cards ND Total Debt Payments $95.005 1 29 4 Living Expenses Utilities for Residence $5,000 NE Entertainment $6.500 Church Dorutions $5,000 NO Clothing 4190 $6,000 Auto Maintenance $1.243 ND Food 4.3756300 ND Total Living Expenses $30,043 21% Insurance Payments 63% HO Insurance Principal Residence $920 NB Health 1.6% $2400 ND Auto Premiums 126 52,660 ND Life Insurance # 1 -379-$520 ND Fur and Jewelry Endorsement 1 0621 530 NO Disability $2,667 ND 6.30 0 Total Insurance Payments 59.197 Total Cash Outflows $145,789 Net Discretionary Cash Flows ($298) MD - Non-Discretionary cash flows per mutual understanding between financial planner and client "Federal and state income taxes withheld and Social Security taxes are presumed to be discretionary as opposed to noodiscretionary because job loss is the greatest risk to the emergency fund and these expenses are not incurred in the event of a job loss.b. Calculate the ratio of the depreciation and amortization expense for 2017 reported in the Consolidated Statements of Cash Flows, Supplemental Financial Statement Data to the total cost (not net book value) of property, plant, and equipment reported in the schedule. (Round your percentage answer to 1 decimal place. (eg 32.6))