The Business Experience I want someone help to answer the questions 1-The Importance of Hollywood Labor Unions Images You might be familiar with unions for teachers or autoworkers. But what about unions for actors, radio artists, and screenwriters? Because we tend to view Hollywood as a glamorous place, we are tempted to view unions as unnecessary for these types of professions. Yet Hollywood unions were, and continue to be, important players in the careers of Hollywood artists. When actors first became mainstream in the early 20th century, working conditions for the industry included long work weeks and low pay. Studios essentially “owned” their artists, which meant that rival studios would not hire actors or actresses once their contracts ended. Actors were forced to work for the same studio to advance their careers. Negotiations with studios often proved fruitless. Because strikes can be so disruptive and risky, they are often used as a last resort. Yet, in 1919 the Actors’ Equity Association, a union for theatrical performers, and the American Federation of Labor staged a Broadway strike to protest harsh working conditions. The strike resulted in a five-year contract and promises to improve labor conditions. Although the event happened off Broadway and not in Hollywood, it would inspire other artists to begin forming their own unions. Working conditions might have improved somewhat for theatrical actors, but radio artists, film actors, and screenwriters still had to bear with hard conditions. For instance, radio artists might do an entire show and then receive only a dollar. Film actors would work around the clock with few (if any) breaks. Screenwriters experienced salary cuts. As individuals, these artists did not have much bargaining power with studios. Realizing that banding together could improve conditions, the Masquers Club (later the Screen Actors Guild of America) was created in 1925. It was followed by the Screenwriters Guild (later renamed the Writers Guild of America) in 1933 and the American Federation of Radio Artists in 1937. It would take lawsuits, strikes, and hardline negotiations for Hollywood artists to receive more rights. This often required artists to take risks such as suspensions or firings in the hope of better treatment. In 1988, the Writers Guild of America organized the longest strike in Hollywood history after disagreements with producers over payments and creative rights. The strike, which lasted five months, was estimated to cost the industry $500 million. Now that working conditions seem to have improved, it might be tempting to discard Hollywood unions as no longer useful. Yet, even today, conflicts often occur between artists and studios. For instance, the Screen Actors Guild of America (SAG) watches to make sure that low-budget actors know their rights and are not exploited by producers. Unequal treatment still happens in the entertainment industry. For instance, minorities and female actors/actresses still tend to be paid less than Caucasian and male actors. The introduction of new media venues, particularly the Internet, may also warrant additional negotiations. To address these challenges, many unions are banding together to address mutual concerns in the industry. In 2012, SAG united with the American Federation of Television and Radio Artists (AFTRA). This increases the bargaining power of the combined union. Additionally, Hollywood unions work closely with the American Federation of Labor and Congress of Industrial Organizations (AFL-CIO), which represents a federation of labor unions. The merger between SAG and AFTRA creates solidarity in the industry’s unions through the formation of an Industry Coordinating Committee. This allows for coordination of activity among 10 or 12 major unions within the industry. Although these unions are for movie stars and other artists, the goal is much the same as for other unions across the nation. As the industry expands, Hollywood unions feel that they must work together to secure benefits for their members while striving to arrive at mutually beneficial agreements with studios, producers, and other stakeholders in the entertainment industry. Discussion Questions 1- Why are Hollywood labor unions considered necessary? 2-Why is striking often avoided if possible? 3-Why do you think unions in the entertainment industry are banding together? 2-Goodwill Industries: Accounting in a Nonprofit Images Goodwill Industries International Inc. consists of a network of 164 independent, community-based organizations located throughout the United States and Canada. The mission of this nonprofit is to enhance the lives of individuals, families, and communities “through learning and the power of work.” Local Goodwill stores sell donated goods and then donate the proceeds to fund job training programs, placement services, education, and more. Despite its nonprofit status, Goodwill establishments are in many ways run similar to for-profit businesses. One of these similarities involves the accounting function. Like for-profit firms, nonprofit organizations like Goodwill must provide detailed information about how they are using the donations that are provided to them. Indeed, fraud can occur just as easily at a nonprofit organization as for a for-profit company, making it necessary for nonprofits to reassure stakeholders that they are using their funds legitimately. Additionally, donors want to know how much of their donations are going toward activities such as job creation and how much is going toward operational and administrative expenses. It sometimes surprises people that nonprofits use part of the funds they receive for operational costs. Yet such a perspective fails to see that nonprofits must also pay for electricity, rent, wages, and other services. “We have revenue and support for the revenue pieces, and then we have direct and indirect expenses for our program services, and then we have G and A, general administrative services. And we have what’s called the bottom line, or other people call net profit. We have what’s called net change in assets. The concept is pretty much the same as far as accounting,” says Jeff McCaw, CFO of Goodwill. Goodwill creates the equivalent of a balance sheet and income statement. Yet because Goodwill is a nonprofit entity, its financials are known by the names statement of financial position and statement of activities. These financials have some differences compared to financial statements of for-profit companies. For instance, Goodwill’s statement of financial position does not have shareholder’s equity but instead has net assets. The organization’s financials are audited, and stakeholders can find the firm’s information in form 990 through Goodwill’s public website (form 990 is the IRS form for nonprofits). Because Goodwill sells goods at its stores, the company must also figure in costs of goods sold. In fact, most of the organization’s revenue comes from its store activities. In one year, the retail division or sale of donated goods and contributed goods generated $3.94 billion. The contracts division generated $666 million, which provides custodial, janitorial, and lawn maintenance service contracts to government agencies. Grants from foundations, corporations, individuals, and government account for $185 million. The fact that Goodwill is able to generate much of its own funding through store activities and contracts is important. Many nonprofits that rely solely on donated funds find it hard to be sustainable in the long run, particularly during economic downturns. Remember that even though nonprofits are different from for-profit companies, they must still make certain that their financial information is accurate. This requires nonprofit accountants to be meticulous and thorough in gathering and analyzing information. Like all accountants, accountants at Goodwill record transactions in journals and then carefully review the information before it is recorded in the general ledger. The organization uses trial balances to ensure that everything balances out, as well as advanced software to record transactions, reconcile any discrepancies, and provide an idea of how much cash the organization has on hand. Finally, Goodwill uses ratio analysis to determine the financial health of the company. For instance, the common ratio allows Goodwill to determine how much revenue it brings in for every dollar it spends on costs. The organization also uses ratio analysis to compare its results to similar organizations. It is important for Goodwill to identify the best performers in its field so that it can generate ideas and even form partnerships with other organizations. By using accounting to identify how best to use its resources, Goodwill is advancing its mission of helping others.12 Discussion Questions; 1- What are some similarities between the type of accounting performed at Goodwill compared to accounting at for-profit companies? 2-What are some differences between the type of accounting performed at Goodwill compared to accounting at for-profit companies? 3-How Can Goodwill use ratio analysis to improve its operations? 3- Critique the position of short-term assets and liabilities of a small manufacturer and recommend corrective action. Surviving Rapid Growth Images Glass-pray Corporation is a small firm that makes industrial fiberglass spray equipment. Despite its size, the company supplies a range of firms from small mom-and-pop boat-makers to major industrial giants, both overseas and here at home. Indeed, just about every molded fiberglass resin product, from bathroom sinks and counters to portable spas and racing yachts, is constructed with the help of one or more of the company’s machines. Despite global acceptance of its products, Glass-pray has repeatedly run into trouble with regard to the management of its current assets and liabilities as a result of extremely rapid and consistent increases in year-to-year sales. The firm’s president and founder, Stephen T. Rose, recently lamented the sad state of his firm’s working capital position: “Our current assets aren’t, and our current liabilities are!” Rose shouted in a recent meeting of the firm’s top officers. “We can’t afford any more increases in sales! We’re selling our way into bankruptcy! Frankly, our working capital doesn’t!” Discussion Questions; 1- Normally, rapidly increasing sales are a good thing. What seems to be the problem here? 2- List the important components of a firm’s working capital. Include both current assets and current liabilities. 3- What are some management techniques applied to current liabilities that Glass-pray might use to improve its working capital position? 
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