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1. Review federal laws and regulations regarding both pay and benefits (including the Fair Labor Standards Act, FMLA, HIPAA compliance, Equal Employment Opportunity, the Equal Pay Act, and ERISA) and assess the implications of those laws on the Ford Motor Industry.

2. Assess the various methods for determining internal pay equity and make recommendations about which of these methods are the most appropriate for the Ford Motor industry. Be sure to provide rationale choices.

3. Assess the external pay equity issues in the auto industry, including a determination of external equity using the most common criteria (geographical location, industry, and job characteristics).

4. Identify a process that Ford Motor Industry within the auto industry could use to evaluate specific positions within the company for both internal and external pay competitiveness.

Include at least five sources that address internal and external pay equity and at least two industry or trade sources that discuss aspects of pay equity within the Ford Automotive industry.

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1. Review federal laws and regulations regarding both pay and benefits (including the Fair Labor Standards Act, FMLA, HIPAA compliance, Equal Employment Opportunity, the Equal Pay Act, and ERISA) and assess the implications of those laws on the Ford Motor Industry.
Fair Labor Standards Act:

The fair labor standards act is complied with by the Ford Motors Company industry because the success of the automakers in the US has depended on paying well to the workers and meeting he demands of the unions.
This material is taken from the website: http://www.dol.gov "The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, recordkeeping, and child labor standards affecting full-time and part-time workers in the private sector and in Federal, State, and local governments. Covered nonexempt workers are entitled to a minimum wage of not less than $5.15 an hour. Overtime pay at a rate of not less than one and one-half times their regular rates of pay is required after 40 hours of work in a workweek." http://www.dol.gov.

The FMLA says:
Ford Motor Company gives unpaid leave in compliance with FMLA and does not restrict workers from getting their legitimate leave. Similarly there is no evidence hat other auto makes violate FMLA:
This material is taken from the website: http://www.dol.gov" Covered employers must grant an eligible employee up to a total of 12 workweeks of unpaid leave during any 12-month period for one or more of the following reasons:
for the birth and care of the newborn child of the employee;
for placement with the employee of a son or daughter for adoption or foster care;
to care for an immediate family member (spouse, child, or parent) with a serious health condition; or
to take medical leave when the employee is unable to work because of a serious health condition. "http://www.dol.gov

HIPAA is about:
This material is taken from the website: http://dukehealth1.org
Health insurance portability is there in the Ford Motors Company industry. The industry employees are free to move from one company to another in the automobile industry and no action is taken against the workers.
"The Health Insurance Portability and Accountability Act, or HIPAA, requires health care professionals to protect privacy and create standards for electronic transfers of health data. The Office for Civil Rights at the Department of Health and Human Services will enforce the regulations and impose penalties on institutions that do not make a good-faith effort on privacy and security." http://dukehealth1.org

Equal employment opportunity:
In Ford Motors Company industry there is no evidence that there is any discrimination on the basis of sex, race or gender.

This material is taken from the website: www.sunysb.edu/diversity" Where all ...

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Account questions (40) multiple choice

1 Which of the following is not considered a financial statement prepared to report company performance?
A income statement
B bank statement
C balance sheet
D cash flows statement

2 Which of the following is a stockholders' equity item
A property, plant and equipment
B accounts payable
C inventory
D contributed capital

3 Net income is
A assets minus liabilities
B revenues minus expenses
C contributed capital minus dividends
D stockholders' equity minus liabilities

4 Which of the following statements is prepared as of a point in time?
A income statement
B statement of retained earnings
C balance sheet
D statement of cash flows

5 The Hamlet Corp. has assets of $20,000, and stockholders' equity of $12,000. The amount of its liabilities is
A $8,000
B $12,000
C $20,000
D $32,000

6 ABC Company sold merchandise for $500,000. The merchandise that it sold had a cost of $300,000. ABC has revenues of
A $200,000
B $300,000
C $500,000
D $800,000

7 Able Corp. started business this year. For this year, it had revenues of $200,000, expenses of $150,000, cash flow from operations of $40,000, and dividends paid out of $5,000. Able's retained earnings at the end of its first year is http://highered.mcgraw-hill.com/olcweb/styles/shared/spacer.gif
A $35,000
B $40,000
C $45,000
D $95,000

8 A dividend paid by a company
A appears on the income statement
B is a distribution of a company earnings to its stockholders
C must be disclosed in the footnotes
D is a reduction of net income

9 ______________ includes cash, equipment and inventory
A stockholders equity
B net income
C revenues
D assets

10 The National Co. has contributed capital of $80,000, total assets of $170,000, and total liabilities of $70,000. Its retained earnings is
A $20,000
B $90,000
C $100,000
D $110,000

11 The three basic elements of the balance sheet are
A assets, liabilities and retained earnings
B assets, liabilities, and contributed capital
C assets, liabilities, and revenues
D assets, liabilities, and stockholders' equity

12 Investors and creditors look at the balance sheet to see whether the company
A is profitable
B Keeps track of its revenues and expenses
C owns enough assets to pay all that it owes to creditors
D has had a positive cash flow from operations

13 Investors and creditors look at the income statement to see
A the company's income over a period of time
B the amount of dividends paid during the year
C the company's cash balance
D the company's income at a point in time

14 Universal Corp. has beginning retained earnings of $80,000, cash flow from operations during the current year of $35,000, dividends paid during the year of $5,000, net income for the current year of $50,000, and contributed capital at the end of the year of $15,000. Its retained earnings at the end of the year is
A $125,000
B $140,000
C $160,000
D $175,000

15 The statement of cash flows indicates
A the assets of a company
B the profitability of a company
C the liabilities of a company
D the company cash flow over the reporting period

16 Which of the following will result in an increase in revenue.
A Borrowing $10,000 from a bank
B Shareholders investing $10,000 in a company
C Selling $10,000 of concert tickets 4 months before the performance
D Selling $10,000 of groceries delivered today.

17 Which of the following results in an expense for a company.
A purchase of land for last month
B payment of advertising for last month
C payment of a dividend for last month
D purchase of supplies for future use

18 Homerdale Corp. received an order from a customer on November 10. It manufactured the ordered items on November 15, shipped the goods on November 17, and received payment on December 2. Under the accrual basis of accounting, it recorded revenue on
A November 10
B November 15
C November 17
D December 2

19 Which of the following situations results in unearned revenue.
A collection of $100 from a customer who charged the purchase of goods a month ago
B the receipt of an order from a customer who will purchase and pay for goods in two weeks
C the sale of $100 of goods today with payment due from the customer in 30 days
D the receipt of $100 cash from a customer for an order of goods to be shipped next month

20 On February1, 20xx1, Eulcor Inc. paid $3,000 for its rent for the months of February, 2xx1, March, 2xx1, and April, 2xx1. In accordance with GAAP, what is the rent expense for March?
A $ - 0 -
B $1,000
C $2,000
D $3,000

The following information comes from the balance sheet and income statement of the Rocket Co. for the years 2xx2 and 2xx1: This financial information pertains to question 21 - 24. Year ended December 31

Year ended December 31
accounts receivable
property and equipment
current liabilities
long-term liabilities
stockholders' equity
net sales revenues
cost of goods sold
operating expenses
interest expense
income tax expense


$ 10,000

21 What is the current ratio as of December 31, 2xx2?
A .70
B 1.43
C 1.80
D 3.98

22What is the net profit margin for the year ended December 31, 2xx2?
A 7.6%
B 11.8%
C 19.4%
D 21.7%

23 What is the receivables turnover for the year ended December 31, 2xx2?
A 3.80
B 15.45
C 16.59
D 17.89

24 What is the times interest earned ratio for the year ended December 31, 2xx2?
A 2.2
B 5.2
C 6.2
D 8.0

25Which ratio is a test of liquidity?
A net profit margin
B inventory turnover
C times interest earned
D debt-to-assets

26Which ratio is not a test of profitability?
A fixed asset turnover
B net profit margin
C inventory turnover
D earnings per share

This information pertains to Questions 27 & 28.
net cash flow from operating activities
total assets
interest paid
net income
income taxes paid
accounts receivable
cash paid for property, plant, and equipment
stockholders' equity $ 80,000

27 What is the cash coverage?
A 2.45
B 2.67
C 9.09
D 10.09

28 What is the quality of income ratio?
A .80
B .94
C 1.07
D 1.25

D Total assets

$ 20,000
30,000 Net income

$ 5,000
15,000 Liabilities

$ 30,000
40,000 Average
stockholders' equity
$ 15,000

29 From the information above, which company has the highest return on equity?
A Company A
B Company B
C Company C
D Company D

30 If the rate of foreign currency exchange rate between US Dollars and Euros, goes from "1.20 US Dollars buys 1 Euro", to "1.45 US Dollars buys 1 Euro", which of the following is true for the US
A Foreign goods become more expensive
B Foreign goods become less expensive

31 Which of the following items is most likely a current asset?
A contributed capital
B supplies
C furniture and equipment
D land

32Which of the following is not an asset:
A accounts payable
B furnishings and equipment
C supplies
D cash

33Stockholders' equity is
A the fair market value of a company
B liabilities minus assets
C contributed capital plus retained earnings
D revenue minus expenses

34 If supplies are purchased for cash
A total assets will increase
B total assets will decrease
C total assets will remain the same
D stockholders' equity will increase

35 Which of the following requires a debit?
A decrease in assets
B decrease in liabilities
C increase in liabilities
D increase in stockholders' equity

36If a company does not receive cash until after it delivers goods
A it must wait to receive cash until it can record revenue
B it must record unearned revenue at the time it delivers goods
C it must record revenue at the time it delivers the goods
D it must increase the amount of accounts receivable at the time it gets paid by its customer

37 ABC Company had revenues of $600,000, expenses of $300,000, paid dividends of $100,000 and sold $50,000 of common stock during the year. At the end of the year, ABC Company's net income was:
A $200,000
B $250,000
C $300,000
D $350,000

8 Who creates US GAAP

39 The revenue principle states that revenue be recorded when
A a customer order is received
B cash is received
C the customer is reasonably satisfied
D earned

Which of the following results in an expense for a company.
A purchase of land
B payment of advertising for last month
C payment of a dividend
D purchase of supplies

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