The corporation has chosen to reorganize one of its locations. The corporation decided that the retail facility
Question:
The corporation has chosen to reorganize one of its locations. The corporation decided that the retail facility is harmed as part of this reorganization. The shop was initially valued at $3,000,000 and has accrued $1,300,000 in depreciation. The store's fair market value is found. Additionally, several staff at the business will be laid go. Each employee is entitled to job training benefits of $500 per employee, six months of supplementary healthcare and life insurance benefits worth $3,300 per employee, and two months′ income as part of the severance package. Required: Accounting entry.
The yearly employee benefits study results in a negative experience for Frances, as she now finds herself at odds with her colleagues. The goal of the Director of Compensation and Benefits at Morgan Services is to make sure that the company's benefit packages produce a return on investment for the business. The conclusion that can be drawn from this indicates that the benefits must be both cost-effective and beneficial to workers. The ultimate objective of Shelley's efforts is to ensure that the company's workers are aware of the financial advantages and to also enable the financial advantages to have a positive influence on the business. Even though she has looked at a wide variety of data, it seems that the organization has both areas of increased performance and employee satisfaction that might be developed.
Morgan Services is a well-known financial services company that caters to a highly sophisticated clientele that seek investment goods and services around the nation. The organization works in a frenetic, highly competitive, and very stressful work atmosphere. A large majority of the workers in this company are sales people who are paid based on commission, which is the case since these workers work long hours to raise their sales and improve their compensation. With the long hours workers work, the chances of not keeping up with their own health diminish significantly. This is precisely what Frances saw while analyzing rising health insurance expenditures linked to a large number of claims under the company's health insurance plan.
An employer satisfaction survey conducted in early 2013 indicated that the opportunity for improvement still exists at Morgan Services, even if improving their health insurance prices has had some impact on rising total expenditures. People who work in a workplace on a regular basis indicate that their work days are stressful and that it is difficult to manage their time on a daily basis. One interesting finding in the study was that a surprising amount of respondents claimed that they had been actively searching for a new job during the past six months. Since Morgan has seen an overall reduction in sales over the last year, it is to be expected that their earnings have declined as well. Frances, in addition, has seen that there has been an increased level of absence over the previous several months. With the facts of history in mind, it is difficult to say if this decrease is indeed a continuous trend.
By looking at possible answers to the difficulty of cutting health insurance costs and making the general employee well-being better, Frances has concluded that Morgan should explore introducing a wellness program. At this time, the firm does not provide any kind of wellness program benefits, and Frances feels that although though it would be costly to implement a wellness program, in the long term, it might significantly affect total benefit costs and employee satisfaction. Research, however, has shown that she has a plethora of health programs to choose from, so she is not realistic. Morgan Services should consider a wellness program for employees. Explain briefly.
Justify why the net present value of a considerably longer project, considered as one for which a large proportion of its cash flows are predicted in the far future, is more susceptible to differences in the prices of capital than the net present value of a short-term venture.