SWAG 3|DUE 30JUN23 - ChatGPT and Higher Education

Challenge Sponsor: @David_Wood
BYU Author: @David_Wood
Estimated Time to Solve: 15 Minutes

This challenge requires you to use an AI chatbot like ChatGPT or Bard.

SWAG Details
A key part of the mission of TechHub.training is to have “A Lot of Fun”. This challenge is designed for you to have fun exploring a new technology and to benefit other university professors.

  • Two winners will be selected by June 30, 2023. The winner with the highest number of likes on this website will be chosen, and another participant will be randomly selected. The winning individual, if located within the US, will receive a handcrafted pen created by David Wood via mail. The competition is open to all individuals and not restricted to university professors.

Overview
ChatGPT and other chatbots possess the potential to significantly disrupt various industries, both positively and negatively. In this challenge, our focus lies in exploring how ChatGPT can positively disrupt university accounting education by assisting faculty members in efficiently developing new and interesting materials for their students.

In this challenge, utilize a chatbot to create a vignette that effectively teaches, demonstrates, or tests a crucial accounting concept within your area of accounting expertise. The vignette can be simple or advanced, and it has the flexibility to be either creative and enjoyable or, if one wishes, boring (though it is worth noting that uninteresting submissions will be apparent to everyone!). The most important aspect is that it accurately imparts an accounting concept. Additionally, you are required to generate three questions related to the chosen concept.

Remember to cast your vote for the vignettes that you think are the best!

Please reply using this template:

Topic area: AIS, audit, data analytics, financial, managerial, tax, etc. and then list topic
Class level: Freshman/Sophomore, Junior/Senior, Masters, Ph.D.
Vignette: List it here
3 Questions: List them here (you can use various question types)
Answers to questions: Make sure to hide them using [spoiler] tag
Time to develop: List how long it took to develop your answer
Prompts used: Describe the process you used or list the exact prompts you used.

Example:
Topic area: Accounting Data Analytics: SQL Queries
Class level: Junior/Senior
Vignette:
In a corner of the universe where universities have healthy budgetary allocations and seemingly funny mascots, universities are getting competitive about halftime shows. They are now purchasing bizarre equipment for their mascots to perform outlandishly hilarious skits. The items range from confetti cannons to minuscule bicycles. The following tables provide some insight into the peculiarities of these mascot purchases.

Table Inventory

inventory_id item_name price
1 Confetti Cannon 200.00
2 Mascot Mini-Bike 450.00
3 Giant Prop Book 150.00
4 Banana Peel 15.00
5 Mascot Jetpack 1200.00

Table University

university_id university_name mascot_name
1 Happyville College Happy Hare
2 Chuckles University Chuckling Cheetah
3 Laughter Institute Laughing Llama
4 Hilarious Academy Hilarious Hippo
5 Jest Junior College Jesting Jellyfish

Table Purchases

purchase_id university_id inventory_id quantity
1 1 1 5
2 2 3 3
3 3 4 10
4 4 2 2
5 5 5 1

3 Questions:
Question 1: The Board of University Mascots has asked for a report. They want to know the total amount each university has spent on equipment for their mascots. Write an SQL query to calculate the total amount spent by each university on equipment.

Question 2: The SQL statement below is meant to determine which universities have bought a ‘Banana Peel’, but it returns an error. Identify the two errors in the code and correct them.

SELECT university_name
FROM University
RIGHT JOINS Purchases ON University.university_id = Purchases.university_id
WHERE inventory_id = 'Banana Peel';

Question 3: Below is an output table from a SQL query. Which of the following SQL queries generated this output?

university_name total_spent
Happyville College 1000.00
Chuckles University 450.00
Hilarious Academy 900.00

SQL Queries:
a)

SELECT U.university_name, SUM(P.quantity * I.price) as total_spent
FROM University U
INNER JOIN Purchases P ON U.university_id = P.university_id
INNER JOIN Inventory I ON P.inventory_id = I.inventory_id
GROUP BY U.university_name;

b)

SELECT U.university_name, SUM(I.price) as total_spent
FROM University U
INNER JOIN Purchases P ON U.university_id = P.university_id
INNER JOIN Inventory I ON P.inventory_id = I.inventory_id
GROUP BY U.university_name;

c)

SELECT U.university_name, AVG(P.quantity * I.price) as total_spent
FROM University U
INNER JOIN Purchases P ON U.university_id = P.university_id
INNER JOIN Inventory I ON P.inventory_id = I.inventory_id
GROUP BY U.university_name;

d)

SELECT U.university_name, SUM(I.price) as total_spent
FROM University U
LEFT JOIN Purchases P ON U.university_id = P.university_id
LEFT JOIN Inventory I ON P.inventory_id = I.inventory_id
GROUP BY U.university_name;

Answers to questions:
Answer 1:

SELECT U.university_name, SUM(P.quantity * I.price) as total_spent FROM University U INNER JOIN Purchases P ON U.university_id = P.university_id INNER JOIN Inventory I ON P.inventory_id = I.inventory_id GROUP BY U.university_name;
This SQL query performs an INNER JOIN on all three tables using their keys, then groups the results by the university name and calculates the total amount spent by each university on equipment.

Answer 2:

SELECT U.university_name
FROM University U
JOIN Purchases P ON U.university_id = P.university_id
JOIN Inventory I ON P.inventory_id = I.inventory_id
WHERE I.item_name = 'Banana Peel';

The two errors in the original code are:

  1. RIGHT JOINS is syntactically incorrect. It should be RIGHT JOIN or just JOIN because a right join is not necessary in this scenario.
  2. In the WHERE clause, ‘Banana Peel’ is an item name, not an inventory ID. Hence, inventory_id = 'Banana Peel' should be replaced with I.item_name = 'Banana Peel'.

Answer 3:

The correct answer is (a)
a) This SQL query correctly calculates the total spent by each university by summing up the product of quantity and price for each item purchased.
b) This query would incorrectly calculate the total amount spent as it does not take into account the quantity of items purchased.
c) This query would give the average amount spent on each item, not the total amount.
d) This query would include universities that haven’t made any purchases in the result set, due to the LEFT JOIN, and it also fails to consider the quantity of purchases.

Time to develop: 10 minutes to write the challenge, 10 minutes to format for posting.
Prompts used:
This is the prompt I used:
You will help me write a very short case about SQL for a student in an accounting data analytics class.
Step 1: Create 3 data tables from a 3NF relational database that has several rows of example data in each table. The tables should be for (1) inventory, (2) university and mascot, and (3) purchases. Make the data purchasing data about funny university mascot purchases. The universities are purchasing equipment to give to their mascots to do halftime skits. Have a 1 paragraph description about the data and situation. Make this paragraph concise and funny. Show the tables with 5 to 7 rows of data each.
Step 2: generate 3 questions using the generated data.
Question 1 should ask the student to write an SQL question querying the data. The question should require joining all three tables, using a where clause, and performing a calculation. Give a scenario that the student must answer.
Question 2 should generate an SQL statement that does not work and ask the student to identify what is wrong with the code and fix it. Have 2 errors in the code. One error should be in the join statement and one error in the where statement. The question should describe the desired outcome in sufficient detail the student can identify the error in the SQL code.
Question 3 should show a table generated from an SQL query. The question should then list 4 different queries and ask the student to select which query produced the output. Only one query should be correct and the other queries should produce something similar to but slightly different than the correct answer.
Step 3: List the answers and a description of why the answer is correct for each question.

Solution
We will post the winners here and on the TechHub.training LinkedIn Page when the challenge ends.

2 Likes

Topic area: Managerial, Cost Accounting, Strategy
Class level: Junior/Senior, Masters

Vignette:

LadyBird Loungewear, a new company specializing in sustainable pajamas made from bamboo and other eco-friendly materials, recognizes the importance of implementing an effective control structure to ensure its success. Drawing upon the levers of control framework developed by Robert Simons, LadyBird should implement a range of controls to guide its operations, manage risks, and drive strategic decision-making.

Belief Systems : LadyBird should establish a strong belief system that aligns with its core values of sustainability, ethical manufacturing, and customer satisfaction. This entails clearly defining the company’s mission, vision, and values and fostering a culture of environmental consciousness and social responsibility. By instilling these beliefs throughout the organization, LadyBird ensures that all employees are committed to the company’s purpose and adhere to sustainable practices in every aspect of their work.

Boundary Systems : LadyBird should develop robust boundary systems to establish guidelines and policies that govern its operations. This includes implementing environmentally friendly manufacturing processes, ensuring supply chain transparency, and adhering to relevant sustainability certifications and standards. By setting clear boundaries and procedures, LadyBird can effectively manage risks, maintain product quality, and ensure compliance with legal and regulatory requirements related to sustainability and responsible sourcing.

Diagnostic Control Systems : LadyBird should implement diagnostic control systems to monitor and measure its performance against sustainability targets and financial goals. This involves tracking key metrics such as carbon footprint, water usage, waste management, and profitability. By collecting and analyzing relevant data, LadyBird can identify areas for improvement, evaluate the effectiveness of its sustainability initiatives, and make data-driven decisions to optimize its environmental impact while maintaining financial viability.

Interactive Control Systems : LadyBird should establish interactive control systems to foster collaboration, innovation, and strategic alignment within the organization. This includes regular communication channels, cross-functional team collaborations, and strategic meetings to discuss sustainability goals, market trends, and customer feedback. By encouraging open dialogue and involving employees at all levels in the decision-making process, LadyBird can tap into diverse perspectives, adapt to changing consumer preferences, and ensure the continuous improvement of its sustainability initiatives.

In summary, LadyBird Loungewear can effectively utilize the levers of control framework by implementing belief systems, boundary systems, diagnostic control systems, and interactive control systems. By integrating these controls, LadyBird can establish a strong foundation for sustainable operations, ensure compliance with ethical practices, monitor performance, and foster a culture of innovation and strategic alignment, leading to long-term success in the eco-friendly loungewear industry.

3 Questions:

How do the four control levers work together to lead to long-term success for Lady Bird?

In general, why is it important to integrate controls from all four levers into the organization?

Which control lever is the most effective?

Answers to questions:

the integration of the four control levers enables LadyBird Loungewear to create a strong foundation for long-term success. The belief systems foster a purpose-driven culture, while boundary systems ensure responsible and sustainable operations. Diagnostic control systems provide performance measurement and improvement, while interactive control systems drive collaboration and strategic alignment. By leveraging these levers in harmony, LadyBird can thrive as a sustainable and socially responsible brand, delivering value to customers, stakeholders, and the environment in the long run.

Each lever of control provides a unique perspective on organizational management. By integrating controls from all four levers, organizations can achieve a balanced approach to control that addresses multiple dimensions of performance. Belief systems emphasize ethical behavior and organizational culture. Boundary systems provide structure and guidelines. Diagnostic control systems focus on measurement and performance evaluation. Interactive control systems foster collaboration and learning. By balancing these perspectives, organizations can create a holistic control framework that considers diverse aspects of their operations, leading to sustainable performance and long-term success.

Each control lever serves a distinct purpose and contributes to different aspects of organizational control. Therefore, the effectiveness of a control lever varies depending on the situation and the desired outcomes. To maximize effectiveness, organizations should strive to integrate and balance controls from all four levers. This allows for a comprehensive approach to control, considering cultural alignment, rules and procedures, performance measurement, and collaboration. By leveraging the strengths of each lever and integrating them harmoniously, organizations can create a more robust and effective control structure that supports long-term success and sustainability.

Time to develop: 30 seconds (once I created a prompt that made it clear that the fictitious company wasn’t supposed to focus on designing control systems for other companies).

Prompts used: Assume LadyBird Loungewear is a new company that produces pajamas from bamboo or other sustainable materials. The company is developing its control structure and wants to make sure it effectively utilizes the levers of control framework developed by Robert Simons in the 1990s. In two or three paragraphs, describe the controls that LadyBird should implement

1 Like

Topic area: Audit
Class level: Junior/Senior, Masters

Vignette:

As an auditor at a large public accounting firm, there are several key risks that should be considered before beginning the financial statement audit for a new client in the pharmaceutical industry, especially if the client is listed on the NYSE. Here are some risks to consider:

Industry-Specific Risks: The pharmaceutical industry is subject to unique risks, including regulatory compliance, product development, intellectual property, and clinical trials. It is important to understand the client’s operations, the stage of product development, and any regulatory or legal issues that may impact financial reporting.

Revenue Recognition: Revenue recognition can be complex in the pharmaceutical industry due to factors such as licensing agreements, milestone payments, product returns, and discounts. Assessing the appropriateness of revenue recognition policies and understanding the underlying contracts and revenue streams is crucial to ensure accurate financial reporting.

Research and Development: Pharmaceutical companies invest heavily in research and development (R&D) activities. It is essential to evaluate the accounting treatment of R&D costs, including capitalization, impairment, and potential write-offs, to ensure compliance with applicable accounting standards and disclosure requirements.

Inventory Valuation: The valuation of pharmaceutical inventories, including raw materials, work-in-progress, and finished goods, requires careful consideration. Assessing the appropriateness of inventory costing methods, obsolescence provisions, and the impact of expiry dates or regulatory requirements is necessary to determine the accuracy of inventory valuation.

Regulatory and Legal Compliance: Compliance with regulations and laws governing the pharmaceutical industry, such as the U.S. Food and Drug Administration (FDA) regulations, anti-bribery laws, and data privacy regulations, presents significant risks. It is important to assess the client’s internal controls and governance framework to identify potential compliance deficiencies.

Fraud and Financial Misstatement: The potential for fraudulent financial reporting or misstatements is a risk that should be carefully evaluated. Assessing the client’s control environment, including their internal controls over financial reporting, is crucial to mitigate the risk of material misstatements and to design appropriate audit procedures.

Going Concern: Assessing the client’s ability to continue as a going concern is important, particularly in the pharmaceutical industry where research and development costs can be substantial and regulatory approvals can impact future cash flows. Evaluating the client’s financial condition, liquidity, debt obligations, and available funding sources is critical.

It is worth noting that this is not an exhaustive list, and the specific risks for the new client should be evaluated based on the unique circumstances and characteristics of their business operations. Conducting a comprehensive risk assessment and tailoring the audit approach to address the identified risks will help ensure a thorough and effective financial statement audit.

3 Questions:

How (if at all) is the list of risks changed if you have audited the client before?

Does the list of risks change if the client is not listed on the NYSE?

In general, why is it important to assess the riskiness of the client before beginning the audit?

Answers to questions:

While many of the risks mentioned earlier still apply regardless of whether the client is listed on the NYSE or not, there are certain considerations that may change if the client is not listed on a major stock exchange like the NYSE. Here are a few differences to consider:

Reporting and Regulatory Requirements: Companies listed on major stock exchanges like the NYSE are subject to specific reporting and regulatory requirements, such as the Sarbanes-Oxley Act (SOX) and the rules and regulations of the Securities and Exchange Commission (SEC). These requirements impose additional obligations on the company’s financial reporting and internal controls. If the client is not listed on the NYSE, they may have different reporting requirements and may not be subject to the same level of scrutiny as publicly traded companies.

Investor Relations and Public Perception: Being listed on a major stock exchange can bring heightened public visibility and scrutiny. Publicly traded companies need to manage investor relations effectively and maintain a positive public image. While non-listed companies may still face reputation and public perception risks, the level of public scrutiny and expectations may be different.

Access to Capital Markets: Companies listed on the NYSE or other major exchanges have access to public capital markets, which can provide significant funding opportunities for growth and expansion. Non-listed companies may have a different capital structure and rely on alternative sources of financing, such as private equity, venture capital, or bank loans. The risk profile associated with their funding arrangements may differ.

Ownership Structure and Corporate Governance: Publicly traded companies typically have a more dispersed ownership structure, with a larger number of shareholders and the potential for significant institutional ownership. The presence of shareholders and adherence to corporate governance practices, such as board independence and executive compensation disclosures, may differ between listed and non-listed companies.

It is important to note that the specific risks and considerations for a non-listed client may vary based on factors such as the company’s size, industry, regulatory environment, and financing arrangements. Conducting a thorough risk assessment tailored to the client’s unique circumstances is crucial in order to identify and address the specific risks that are most relevant to their financial statement audit.

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While many of the risks mentioned earlier still apply regardless of whether the client is listed on the NYSE or not, there are certain considerations that may change if the client is not listed on a major stock exchange like the NYSE. Here are a few differences to consider:

Reporting and Regulatory Requirements: Companies listed on major stock exchanges like the NYSE are subject to specific reporting and regulatory requirements, such as the Sarbanes-Oxley Act (SOX) and the rules and regulations of the Securities and Exchange Commission (SEC). These requirements impose additional obligations on the company’s financial reporting and internal controls. If the client is not listed on the NYSE, they may have different reporting requirements and may not be subject to the same level of scrutiny as publicly traded companies.

Investor Relations and Public Perception: Being listed on a major stock exchange can bring heightened public visibility and scrutiny. Publicly traded companies need to manage investor relations effectively and maintain a positive public image. While non-listed companies may still face reputation and public perception risks, the level of public scrutiny and expectations may be different.

Access to Capital Markets: Companies listed on the NYSE or other major exchanges have access to public capital markets, which can provide significant funding opportunities for growth and expansion. Non-listed companies may have a different capital structure and rely on alternative sources of financing, such as private equity, venture capital, or bank loans. The risk profile associated with their funding arrangements may differ.

Ownership Structure and Corporate Governance: Publicly traded companies typically have a more dispersed ownership structure, with a larger number of shareholders and the potential for significant institutional ownership. The presence of shareholders and adherence to corporate governance practices, such as board independence and executive compensation disclosures, may differ between listed and non-listed companies.

It is important to note that the specific risks and considerations for a non-listed client may vary based on factors such as the company’s size, industry, regulatory environment, and financing arrangements. Conducting a thorough risk assessment tailored to the client’s unique circumstances is crucial in order to identify and address the specific risks that are most relevant to their financial statement audit.

Assessing the riskiness of the client before beginning an audit is crucial for several reasons:

Audit Planning: Assessing client risk helps auditors develop an effective and efficient audit plan. By understanding the client’s risk profile, auditors can tailor their audit procedures to focus on areas that are most susceptible to material misstatements. This allows them to allocate resources effectively and prioritize their efforts to address the highest risks.

Material Misstatement Detection: Identifying and assessing client risks helps auditors determine where material misstatements are most likely to occur in the financial statements. By understanding the client’s operations, industry-specific risks, and regulatory requirements, auditors can design appropriate audit procedures to address those risks and detect any material misstatements in the financial statements.

Audit Evidence Sufficiency and Appropriateness: Evaluating client risk allows auditors to assess the sufficiency and appropriateness of audit evidence required to support their opinion on the financial statements. Higher-risk areas may require more extensive testing and corroborating evidence to obtain reasonable assurance regarding the accuracy and completeness of the financial statements.

Fraud Detection: Assessing client risk includes evaluating the risk of fraud, including both fraudulent financial reporting and misappropriation of assets. Understanding the client’s business, internal controls, and the presence of fraud risk factors enables auditors to design procedures to detect any potential fraud and gather evidence to mitigate the risk of material misstatement due to fraud.

Compliance with Professional Standards: Auditing standards, such as the International Standards on Auditing (ISAs) or Generally Accepted Auditing Standards (GAAS), require auditors to perform a risk assessment as part of the audit planning process. Complying with these standards is essential to maintain professional independence, due care, and quality in the audit engagement.

Audit Report and Stakeholder Confidence: Assessing client risk is critical for auditors to provide an informed and reliable audit opinion. A thorough risk assessment enhances the credibility of the audit process and increases stakeholder confidence in the financial statements. It demonstrates that the auditor has considered potential risks that could impact the financial statements and has taken appropriate steps to address them.

Overall, assessing client risk before beginning an audit enables auditors to plan and execute the audit effectively, detect material misstatements, comply with professional standards, and provide stakeholders with reliable and credible audit opinions. It enhances the overall quality and value of the audit engagement.

Time to develop: 90 seconds (Chat GPT had to “think” for about 30 seconds before it started generating its response).

Prompts used:

You are an auditor at a large public accounting firm. You have a new client from the pharmaceutical industry. The client is listed on the NYSE. What are the risks that you should consider before you begin the financial statement audit for this client for the first time?

1 Like

Topic Area: Financial
Class Level: Introductory

Vignette:
Once upon a time, in the bustling city of Veridium, there existed a thriving technology company called Lumitech Solutions. Lumitech Solutions specialized in developing innovative software solutions for various industries. Under the visionary leadership of its CEO, Olivia Reed, Lumitech Solutions quickly gained a reputation for its cutting-edge products and exceptional customer service.

Balance Sheet:

Lumitech Solutions
As of December 31, 2022

Assets:
Cash and Cash Equivalents: $500,000
Accounts Receivable: $200,000
Inventory: $150,000
Property, Plant, and Equipment: $1,000,000
Total Assets: $1,850,000

Liabilities:
Accounts Payable: $100,000
Short-term Loans: $50,000
Long-term Loans: $500,000
Total Liabilities: $650,000

Equity:
Share Capital: $1,000,000
Retained Earnings: $200,000
Total Equity: $1,200,000

Total Liabilities and Equity: $1,850,000

Income Statement:

Lumitech Solutions
For the Year Ended December 31, 2022

Revenue: $2,500,000
Cost of Goods Sold: $700,000
Gross Profit: $1,800,000

Operating Expenses:
   - Salaries and Wages: $500,000
   - Rent Expense: $100,000
   - Utilities Expense: $50,000
   - Marketing Expense: $200,000
   - Depreciation Expense: $100,000
Total Operating Expenses: $950,000

Operating Income: $850,000

Interest Expense: $50,000

Net Income Before Tax: $800,000
Income Tax Expense: $200,000

Net Income: $600,000

Statement of Cash Flows:

Lumitech Solutions
For the Year Ended December 31, 2022

Cash Flows from Operating Activities:
Net Income: $600,000
Adjustments for:
   - Depreciation Expense: $100,000
   - Increase in Accounts Receivable: ($50,000)
   - Increase in Inventory: ($10,000)
   - Increase in Accounts Payable: $40,000
Net Cash Provided by Operating Activities: $680,000

Cash Flows from Investing Activities:
Purchase of Property, Plant, and Equipment: ($300,000)
Net Cash Used in Investing Activities: ($300,000)

Cash Flows from Financing Activities:
Issue of Share Capital: $500,000
Issuance of Long-term Loans: $200,000
Repayment of Short-term Loans: ($20,000)
Net Cash Provided by Financing Activities: $680,000

Net Increase in Cash and Cash Equivalents: $80,000
Cash and Cash Equivalents, Beginning of Year: $420,000
Cash and Cash Equivalents, End of Year: $500,000

Now, let’s move on to the three questions that can be answered using the financial statements provided:

  1. What is the gross profit margin for Lumitech Solutions for the year 2022?

  2. How much cash did Lumitech Solutions generate from its operating activities in 2022?

  3. What is the total equity of Lumitech Solutions as of December 31, 2022?

Answers to Questions

  • Answer to 1: The gross profit margin for Lumitech Solutions for the year 2022 is 72% ($1,800,000 gross profit divided by $2,500,000 revenue).
  • Answer to 2: Lumitech Solutions generated $680,000 in cash from its operating activities in 2022.
  • Answer to 3: The total equity of Lumitech Solutions as of December 31, 2022, is $1,200,000.

Time to develop sixty seconds
Prompt use:
Write a short vignette about a fictional company. Create a balance sheet, income statement, and statement of cash flows for the fictional company. Then create three questions that can be answered by using the financial statements created for the fictional company. Finally, provide answers to the three questions.

1 Like

Topic Area: Managerial Accounting
Class Level: Introductory

Vignette:
Case Study: “Belleza Bijoux: The Artistry of Accessory Design”

In the heart of Paris, the city of fashion and luxury, lifelong friends and creative artists, Charlotte and Danielle, established Belleza Bijoux in 2018. Their vision was to create a unique array of handcrafted accessories for women, embracing the timeless French elegance. Their dedication resulted in three most popular products: the Opulent Opera Earrings (OOE), the Allure Bracelet (AB), and the Couture Cameo Necklace (CCN).

Here are the sales and cost details for these products over the past six months:

Opulent Opera Earrings (OOE):
    Selling price per pair = $90
    Material cost per pair = $25
    Labor cost per pair = $20
    Orders per month = 150, 160, 170, 175, 180, 185

Allure Bracelet (AB):
    Selling price per piece = $120
    Material cost per piece = $30
    Labor cost per piece = $25
    Orders per month = 200, 210, 220, 225, 230, 235

Couture Cameo Necklace (CCN):
    Selling price per piece = $150
    Material cost per piece = $40
    Labor cost per piece = $35
    Orders per month = 100, 105, 110, 115, 120, 125

Indirect costs include a monthly marketing expense of $7,500, rent of $5,000, and utilities and other overheads amounting to $3,500.
Discussion Questions:

  1. Calculate the contribution margin per unit and the contribution margin ratio for each product.

  2. Calculate the breakeven point in units for each product.

  3. Prepare a monthly contribution margin-based income statement for Belleza Bijoux for the past six months.

  4. Which product has the highest contribution margin ratio, and how can Belleza Bijoux tailor its business strategy based on this information?

  5. Discuss how changes in labor or material costs might impact the contribution margin and the company’s profitability.

Answers to questions:

  1. Contribution margin per unit is calculated as the selling price per unit minus variable costs per unit (material and labor costs). Contribution margin ratio is the contribution margin per unit divided by the selling price per unit.
    OOE: Contribution Margin = $90 - $25 - $20 = $45, Contribution Margin Ratio = $45/$90 = 50%
    AB: Contribution Margin = $120 - $30 - $25 = $65, Contribution Margin Ratio = $65/$120 = 54.17%
    CCN: Contribution Margin = $150 - $40 - $35 = $75, Contribution Margin Ratio = $75/$150 = 50%.

  2. The breakeven point in units for each product is calculated by dividing the total fixed costs by the contribution margin per unit. Assuming the fixed costs are distributed evenly among the three products, each having a third of the total fixed costs.
    OOE: Breakeven point = ($7,500 + $5,000 + $3,500) / 3 / $45 = 122 units (rounded up)
    AB: Breakeven point = ($7,500 + $5,000 + $3,500) / 3 / $65 = 85 units (rounded up)
    CCN: Breakeven point = ($7,500 + $5,000 + $3,500) / 3 / $75 = 73 units (rounded up)

  3. A contribution margin-based income statement would first list total sales for each product, followed by variable costs to calculate the total contribution margin. Then, fixed costs (marketing, rent, utilities, etc.) are subtracted from the total contribution margin to get the net operating income.

  4. The Allure Bracelet (AB) has the highest contribution margin ratio, indicating that for every dollar of revenue generated by AB, $0.54 contributes to covering fixed costs and profit. Belleza Bijoux can leverage this by focusing more on promoting and selling this product line.

  5. Any increase in labor or material costs would lower the contribution margin and thus the profitability. For instance, if labor costs for the AB increased by $5 per unit, the contribution margin would decrease from $65 to $60, lowering the contribution margin ratio and increasing the breakeven point. This could influence pricing decisions, choice of suppliers, cost control measures, and overall business strategy.

Time to develop: 10 Minutes to review, rewrite and format to post

Prompts used:
Write a case for managerial accounting. The case show focus in a company that sells hand made accessories for woman, add a background about the company and the owners, the company need to calculate Contribution margin for 3 products, breakeven point and income statement using contribution margin approach. Provide information for Sales Price per unit, Number of orders in the last 6 months, details it month by month and how many products per orders and the other can have multiples products , labor costs per unit, material costs per unit, rent and other overhead costs, you can add more details. Provide the indirect costs as marketing, rent and others, fell free to add more costs and details. Create 5 questions for the students explorer the and discuss the company. Create some qualitative questions about business strategies. Provide the answers and the explanation for each question.

2 Likes

Topic Area: Accounting Information System, Auditing, Auditing Analytics
Class Level: Intermediate
Vignette:

Title: Data Analytics in Auditing: Problems, Solutions, Use Cases, and Required Skills

Objective: By the end of this lesson, students should be able to:

  1. Understand the significance and application of data analytics in auditing.
  2. Identify key problems and corresponding solutions regarding the use of data analytics in auditing.
  3. Evaluate and discuss real-world use cases of data analytics in auditing.
  4. Understand and outline the necessary skills auditors will need to effectively use data analytics.
  5. Develop a comprehensive presentation on the aforementioned topics using ChatGPT.

Materials:

  1. Laptop/PC with internet access for each group.
  2. Access to ChatGPT for each group.
  3. Projector/Screen for presentations.
  4. Flipcharts and markers for brainstorming.

Lesson Plan:

I. Introduction (10 minutes)

  • Brief lecture on the relevance and benefits of data analytics in auditing: detecting fraud, risk assessment, identifying inconsistencies, etc. (5 minutes)
  • Highlight and discuss the critical skills needed by auditors to effectively leverage data analytics. (5 minutes)

II. Group Activity: Research (40 minutes)

  1. Divide the students into groups of 4-5. Assign each group to use ChatGPT to research one of the following topics:

    • The role and benefits of data analytics in auditing.
    • Problems and corresponding solutions in applying data analytics in auditing.
    • Real-world use cases that demonstrate the effective use of data analytics in auditing.
    • The necessary skills auditors must possess to effectively employ data analytics.
  2. Each group will use ChatGPT to gather, validate, and document information about their assigned topic. Encourage students to critically evaluate the information they obtain from ChatGPT, cross-referencing information and validating sources when necessary. (40 minutes)

III. Group Activity: Presentation Preparation (20 minutes)

  1. Each group will use the information they’ve gathered to prepare a 7-minute presentation on their assigned topic. The presentation should include:
    • An overview of their topic.
    • The key findings or insights they’ve derived from their research.
    • A discussion on how their insights relate to the broader subject of data analytics in auditing.
    • A series of questions designed to engage the class in a broader discussion.

IV. Group Presentations (25 minutes)

  1. Each group will present their findings. (20 minutes)
  2. After each presentation, allow time for a short Q&A session. (5 minutes)

V. Summary & Closing Discussion (5 minutes)

  • Summarize the key points derived from each group’s presentation, emphasizing the overall importance of data analytics in auditing, the problems and solutions identified, and the essential skills for auditors.
  • Initiate a discussion on how students can develop these skills and how the field of auditing may evolve with the broader adoption of data analytics.

Assignments:

  • Each student will write a reflection on what they learned from the lesson and the research process. Due in one week.
  • Each group should submit their presentation materials and any additional notes from their research. Due in two days.

Assessment:

  • Active participation in class discussions.
  • The research process and presentation of each group.
  • Responses to questions during the presentations.
  • The quality of written reflections on the lesson and the research process.

Assessment Rubric:

  1. Content Understanding and Relevance (25%)

    • Exceeds expectations: Demonstrates superior understanding and relevance of the content, providing insightful perspectives.
    • Meets expectations: Shows good understanding and relevance of the content, with some insightful perspectives.
    • Below expectations: Demonstrates limited understanding or relevance of the content, lacks insightful perspectives.
  2. Research Quality (25%)

    • Exceeds expectations: Presents evidence of comprehensive research, all information is accurate, well-sourced, and documented.
    • Meets expectations: Provides evidence of sufficient research, most information is accurate and well-documented.
    • Below expectations: Provides evidence of insufficient or inaccurate research, information lacks sources or documentation.
  3. Presentation Delivery (25%)

    • Exceeds expectations: Presentation is clear, well-structured, and effectively engages the audience.
    • Meets expectations: Presentation is mostly clear and coherent, engages the audience to an extent.
    • Below expectations: Presentation is unclear or disorganized, struggles to engage the audience.
  4. Engagement and Discussion (25%)

    • Exceeds expectations: Stimulates and sustains audience interest, engagement, and participation.
    • Meets expectations: Engages the audience and facilitates some discussion.
    • Below expectations: Struggles to engage the audience or stimulate discussion.

Note: This plan assumes students already possess a basic understanding of auditing and data analytics concepts. If they do not, additional lessons or brief overviews might be necessary.

Time to develop: 15 Minutes to review, rewrite and format to post
Prompts used:
Can you please put together for me a college level 100 minutes lesson plan where students in groups using ChatGPT put together a presentation on the use of the data analytics in auditing ? Make sure to highlight problem, solutions, use cases and skills that auditors will need. Include the rubric

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Topic area: AIS: ERD Diagramming
Class level: Junior/Senior
Vignette:

Sunshine Tours is a Florida-based travel agency that offers tours to customers visiting the state. They need a database to manage their customer information and bookings. To do this, they collect the following data.

The database stores information about the agency's customers. Each customer has a unique identification number, a name, an email address, and a phone number. Some of these customers are repeat customers while other customers only book once.

Customers make a booking to participate in a tour. Each booking has a unique identification number, a date, and a total cost. Each booking is associated with a single customer. Tours can contain various bookings unless a customer is lucky enough to go on a Sunshine Tour with their own party.

Florida Sunshine Tours offers five different tours, each of which is unique. Each tour is independent of the other tours, meaning that a booking is only associated with one tour at a time. Each tour has a unique identification number, a name, a description, and a price.

The database keeps track of the specific tours booked by each customer. Each booking detail includes a quantity indicating how many people are included in the booking. Each booking detail is associated with a single booking and a single tour.

Please create an entity-relationship diagram for Sunshine Tours, including all of the tables and their primary keys, foreign keys, and non-key attributes. Label the relationships between the tables as one-to-one, one-to-many, or many-to-many.

3 Questions:

  1. Please create an ERD that includes the relevant information from Florida Sunshine Tours.

  2. What are the primary keys of each table? List and specify any foreign keys and/or composite keys.

  3. Bob needs to look up a customer booking to issue a refund for a cancelled trip. What primary key(s) should he ask the customer for? Is there more than one ways of identifying the specific booking?

Answers to questions:

Final Exam Diagram

  1. customer_id, booking_id, tour_id
    FK: customer_id (Booking Table), booking_id (Tours Table)
    CK: booking_id, tour_id (Booking_Tour Table)

  2. Bob should ask the customer for both their customer ID and their booking ID. Customers may have the same name, so the ID will be a better identifier of the customer. A customer may have more than one booking, so the booking ID linked to the customer ID will help Bob identify the correct booking to cancel. Bob could just look up the booking ID, since that will identify the customer as well.

Time to develop: 30-45 minutes

Prompts used: “I need help writing an entity-relationship diagram problem for a final designed for undergraduate accounting students. The problem needs to include at least 3 tables with primary keys and 1 table with a composite primary key. Students need to be able to label primary keys, foreign keys, and some non-key attributes. Students also need to label relationships between the tables as one-to-one, one-to-many, or many-to-many. The problem narrative should be short and themed with Florida tourist names.”

(ChatGPT was a bit too specific in its response, so I had to ask it to put it in narrative form.)

“Can you take the information from the last response and put it in narrative form? The explicit information about what should be the primary key should not be present, however, sufficient context information in the narrative should allow the students to identify the primary key.”

2 Likes

interesting

Topic Area: Corporate Governance
Class level: Junior/Senior
Vignette:
Case: Enron’s Downfall: From Energy Titan to Bankruptcy (2001)

Background

Enron Corporation, once America’s seventh-largest company, was a leading energy commodities and services firm based in Houston, Texas. Their business operations ranged from marketing and trading in energy commodities, like electricity and natural gas, to more exotic endeavors like weather derivatives. Enron was widely respected and was named “America’s Most Innovative Company” for six consecutive years by Fortune.

Narrative

The 1990s were a golden era for Enron. The firm was riding high on the deregulation of the energy market and had successfully transitioned from a traditional energy company to an innovative trading platform for energy commodities. The stock price soared, employees were motivated, and the future seemed to shine with infinite promise.

Yet, beneath the surface, all was not as it seemed. Enron’s reported financial condition was sustained by an intricate, deliberately opaque, and eventually unsustainable web of special purpose entities (SPEs) used to hide debt and inflate profits. This strategy allowed the company to keep hundreds of millions of dollars in debt off its books while recording gains from the rising value of its own stock within these SPEs.

In August 2001, Jeffrey Skilling, then CEO, unexpectedly resigned, and Ken Lay, the former CEO and chairman, took the helm. Lay was faced with a critical decision. Whistleblower Sherron Watkins had already approached him with concerns about the company’s accounting practices. Lay could have chosen to fully investigate these claims, disclose the problems to shareholders, and brace for the impact while trying to salvage the company. Alternatively, he could have continued to hide the problems and hope to right the ship quietly.

The Dilemma

Lay chose the latter, attempting to manage the crisis internally without alerting shareholders or authorities to the depth of the issues at hand. However, within months, the accounting irregularities came to light, and Enron declared bankruptcy in December 2001. Thousands of employees lost their jobs, and billions in shareholder value was wiped out.

3 Questions:

  1. What were the primary governance weaknesses at Enron that allowed such a significant accounting fraud to take place? How could the company’s Board of Directors and executive management have addressed these weaknesses to prevent this outcome?
  2. Given the information Ken Lay had in August 2001, what should have been his next steps to mitigate the impending crisis, protect shareholder interests, and potentially save the company?
  3. What principles of good corporate governance could, if applied at Enron, have helped prevent this outcome? How would the implementation of these principles specifically guard against similar failures in the future? Consider both specific controls and broader cultural considerations.

Teaching Note

Students should be able to identify Enron’s governance failures, including a lack of Board oversight, ineffective auditing, conflicts of interest (especially in the case of Arthur Andersen), and a culture that prioritized short-term profits over sustainable growth and ethical behavior. Possible actions for Ken Lay may include full investigation and transparency, correction of fraudulent reporting, and cooperation with authorities. Good corporate governance principles that could have prevented Enron’s downfall might include stronger internal controls, independent audits, transparency and disclosure, proper checks and balances, and a culture of accountability.

Answers to questions:

  1. Identify the Weaknesses:

Enron’s primary governance failures centered around a lack of transparency, ineffective internal controls, conflicts of interest, and a lack of oversight by the Board of Directors. Enron had engaged in a sophisticated scheme of off-the-books partnerships and transactions that hid its debt and inflated profits. This was possible largely due to weak internal controls and an auditing system that was compromised by conflict of interest, as Arthur Andersen, the auditing firm, was also a consultant for Enron. The Board of Directors, rather than providing the necessary oversight, was seemingly inattentive to the management’s risky business models and complex financial operations. A culture that promoted aggressive risk-taking and unethical behavior also pervaded the organization. To prevent such failures, the Board and executive management should have established robust internal controls, a truly independent and rigorous audit process, and a corporate culture of accountability and ethical conduct.

  1. Suggest Proper Actions:

Ken Lay, with the information he had, should have first brought the whistleblower’s claims to the Board of Directors and then initiated a thorough, independent investigation into the accounting practices raised in those claims. This investigation should have been conducted by a third party to ensure objectivity. Given the serious nature of the potential fraud, the findings should have been disclosed to shareholders and the public, even if it led to a short-term drop in the company’s stock price. Simultaneously, he should have cooperated fully with regulatory authorities. Lastly, Lay should have worked with the board and executive management to immediately cease any ongoing fraudulent activity and begin rectifying past transgressions.

  1. Good Governance Practices:

Several good governance practices could have prevented Enron’s downfall. These include:

  • Transparency and Full Disclosure: Ensuring transparent reporting of the financial status and risks associated with the company. This includes disclosing debts and obligations, even if they are off the balance sheet.

  • Independent and Effective Audit Function: Engaging an independent auditor who has no other business relations with the firm that could present a conflict of interest. The auditor must be capable and willing to challenge management when necessary.

  • Effective Board Oversight: An active, informed, and independent board is vital. Board members should fully understand the company’s business model and associated risks. They must be willing to challenge management decisions and ensure the implementation of robust internal controls.

  • Culture of Ethical Conduct and Accountability: A corporate culture that promotes ethical conduct, where unethical behavior is not tolerated and is quickly acted upon, is important. Employees at all levels should feel responsible for the company’s ethical health and reputation.

These principles ensure an environment where management actions are effectively supervised, and aberrations are promptly addressed. They protect shareholder interests and foster long-term sustainability over short-term profits.

Time to develop: 10 minutes
Prompts used:
“Put together a college-level case in the Harvard Bussiness School style in which students are assigned to analyze a corporate governance failure. Use a real-life example of a case where gorporate governance went wrong that is probably not already known by students. After a brief description of the situation up until there is a critical decision to be made by a governance actor, provide the students with three questions that together determine: (1) whether students can correctly identify the weaknesses in the firm’s governance, (2) whether students can suggest proper actions to be taken by the actor, and (3) whether students can abstract away and argue why certain good governance practices are vital in preventing governance failure.”

and

“provide me with the answers of the three questions”

1 Like

Topic Area: BlockChain - AIS
Class level: Junior/Senior
Vignette:

Welcome to the Blockchain Application

Access Here: https://bit.ly/blockchaincase

Fictional Scenario: The Certification Transparency Initiative

As an esteemed institution, Fairview University is renowned for its rigorous academic programs and high standards. Upon successful completion of these programs, students are awarded certificates that attest to their academic achievements.

To enhance the trust and transparency associated with its certification process, Fairview University is implementing a new initiative: The Certification Transparency Initiative (CTI). Under this initiative, the university plans to record each student’s certificate information on a blockchain. This approach ensures the immutability and verification of each certificate, enhancing their credibility and the university’s accountability.

Each certificate includes the student’s name, the completed course, the professor who taught the course, and the date of completion. Upon completion of a course, this information is packaged as a ‘block’ and added to the university’s blockchain.

As part of this project, you, an auditing student, have been asked to participate in a simulation of this new system. You will interact with a simple blockchain application that records these ‘certificate’ transactions. Your task is to act as an auditor, add transactions, and verify the integrity of the data on the blockchain.

Through this process, you will gain a hands-on understanding of how blockchain technology can be used in an audit context, explore its potential benefits, and consider the challenges involved in auditing such an immutable system. You will also assess how blockchain technology can enhance trust and transparency in academic certification.

Assignment: Blockchain Technology in Audit Practice

Context:

As emerging technologies continue to shape the accounting industry, blockchain stands out for its potential to revolutionize the way transactions are recorded and verified. This technology offers auditors a new tool to enhance the audit process. In this assignment, you will interact with a simple blockchain application that records transactions of students enrolling in courses.

Instructions:

  1. Understand the Application: Begin by studying the Python code for the Blockchain and Block classes, and the Flask application. This application uses a simplified model of a blockchain to record transactions. Each transaction should include the names of a student and professor, and the name of a course.
  2. Interact with the Blockchain: Use the form provided in the application to add new transactions to the blockchain. Note how each block added to the blockchain is immutable, meaning once a transaction has been recorded, it cannot be altered without changing all subsequent blocks.
  3. Audit the Blockchain: Act as an auditor verifying the transactions recorded on the blockchain. Check the integrity of the blockchain by ensuring that the “previous_hash” of each block matches the “hash” of the previous block. This is one way auditors can verify the integrity of transactions recorded on a blockchain.
  4. Identify Anomalies: Suppose an anomaly was detected in the blockchain. Discuss the steps you would take to investigate the issue. Consider how the immutability of the blockchain affects your investigation.

Discussion Questions:

  1. How can the immutability of blockchain transactions improve the audit process?
  2. In what scenarios might blockchain technology be particularly useful in auditing?
  3. What challenges might auditors face when auditing transactions recorded on a blockchain?

Rubric:

  • Understanding of Blockchain Technology (30 points): Clear understanding of how the blockchain application works and its implications for auditing.
  • Interaction with the Blockchain (30 points): Successful interaction with the blockchain application, including adding transactions and checking the integrity of the blockchain.
  • Identification of Anomalies (20 points): Thoughtful discussion of how to investigate a hypothetical anomaly detected in the blockchain.
  • Discussion Questions (20 points): Insightful responses to the discussion questions, demonstrating a solid understanding of the implications of blockchain technology for auditing.

Remember to include your findings and thought process in a written report. Your grade will depend on the depth of your understanding, the quality of your work, and the insights you provide in your report. Good luck!

Time to develop: 60 minutes
Prompts used: I asked to chatGPT create an blockchain app and a case for the students. the prompt are several entries. I got the code generated and create an free website on pythoneverywhere in 5 minutes. All the instructions are in the chatgpt that you can access in the link below.
https://chat.openai.com/share/a18e5afa-b050-42fe-9856-a1f026042cea

To access the website of the case here: https://bit.ly/blockchaincase

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Topic Area: BlockChain / AIS
Class level: Intermediate
Vignette:

Website: https://clear3509.pythonanywhere.com/

*The case and the code to the website were created by ChatGPT. It took 5 minutes to put the website online.

Welcome to the Blockchain Application

Fictional Scenario: The Certification Transparency Initiative

As an esteemed institution, Fairview University is renowned for its rigorous academic programs and high standards. Upon successful completion of these programs, students are awarded certificates that attest to their academic achievements.

To enhance the trust and transparency associated with its certification process, Fairview University is implementing a new initiative: The Certification Transparency Initiative (CTI). Under this initiative, the university plans to record each student’s certificate information on a blockchain. This approach ensures the immutability and verification of each certificate, enhancing their credibility and the university’s accountability.

Each certificate includes the student’s name, the completed course, the professor who taught the course, and the date of completion. Upon completion of a course, this information is packaged as a ‘block’ and added to the university’s blockchain.

As part of this project, you, an auditing student, have been asked to participate in a simulation of this new system. You will interact with a simple blockchain application that records these ‘certificate’ transactions. Your task is to act as an auditor, add transactions, and verify the integrity of the data on the blockchain.

Through this process, you will gain a hands-on understanding of how blockchain technology can be used in an audit context, explore its potential benefits, and consider the challenges involved in auditing such an immutable system. You will also assess how blockchain technology can enhance trust and transparency in academic certification.

Assignment: Blockchain Technology in Audit Practice

Context:

As emerging technologies continue to shape the accounting industry, blockchain stands out for its potential to revolutionize the way transactions are recorded and verified. This technology offers auditors a new tool to enhance the audit process. In this assignment, you will interact with a simple blockchain application that records transactions of students enrolling in courses.

Instructions:

  1. Understand the Application: Begin by studying the Python code for the Blockchain and Block classes, and the Flask application. This application uses a simplified model of a blockchain to record transactions. Each transaction should include the names of a student and professor, and the name of a course.
  2. Interact with the Blockchain: Use the form provided in the application to add new transactions to the blockchain. Note how each block added to the blockchain is immutable, meaning once a transaction has been recorded, it cannot be altered without changing all subsequent blocks.
  3. Audit the Blockchain: Act as an auditor verifying the transactions recorded on the blockchain. Check the integrity of the blockchain by ensuring that the “previous_hash” of each block matches the “hash” of the previous block. This is one way auditors can verify the integrity of transactions recorded on a blockchain.
  4. Identify Anomalies: Suppose an anomaly was detected in the blockchain. Discuss the steps you would take to investigate the issue. Consider how the immutability of the blockchain affects your investigation.

Discussion Questions:

  1. How can the immutability of blockchain transactions improve the audit process?
  2. In what scenarios might blockchain technology be particularly useful in auditing?
  3. What challenges might auditors face when auditing transactions recorded on a blockchain?

Rubric:

  • Understanding of Blockchain Technology (30 points): Clear understanding of how the blockchain application works and its implications for auditing.
  • Interaction with the Blockchain (30 points): Successful interaction with the blockchain application, including adding transactions and checking the integrity of the blockchain.
  • Identification of Anomalies (20 points): Thoughtful discussion of how to investigate a hypothetical anomaly detected in the blockchain.
  • Discussion Questions (20 points): Insightful responses to the discussion questions, demonstrating a solid understanding of the implications of blockchain technology for auditing.

Remember to include your findings and thought process in a written report. Your grade will depend on the depth of your understanding, the quality of your work, and the insights you provide in your report. Good luck!

Time to develop: 60 minutes
Prompts used: ( I used several inputs. The final code was generated entirely for the ChatGPT)

You are an accounting professor teaching an information system class. You need to create a blockchain application using Python with Flask to interact with the browser and show students how it works


Create a small case with context to use this application, and you can create a new code if necessary. Create some activities the students should perform and what they need to check


Can you send the complete code?


can you create a page with a form where the students will add the information instead manually sending a JSON


Can you add the JavaScript to automatically handle the refresh


The students are accounting and auditing students, create the assignment based on the code, and the students will act as auditors.


Create some context for the app, and you can create a fictional story to illustrate

Topic area: Data analytics
Class level: Junior/Senior
Vignette: I asked ChatGPT to create a “flat file” table, themed after the battle between the Jedi and droids on Geonosis in Star Wars Episode II. The data will then need to be normalized into three separate tables. After students normalize the flat file into three tables, I ask them questions about the DDL and SQL needed to create and retrieve data from those three tables.

The “flat file” is as follows:

Jedi Name Admission Date Lightsaber Color Droid Callsign Droid Type Creation Date Clones defeated before facing Jedi Winner
Obi-Wan Kenobi June 1, 57BBY Blue BD001 Battle Droid January 5, 24BBY 1 Obi-Wan Kenobi
Anakin Skywalker April 15, 28BBY Blue SBD01 Super Battle Droid February 17, 23BBY 2 Anakin Skywalker
Mace Windu July 10, 50BBY Purple DDK01 Droideka December 12, 24BBY 8 Mace Windu
Yoda January 1, 900BBY Green DDK02 Droideka March 28, 24BBY 5 Yoda
Obi-Wan Kenobi June 1, 57BBY Blue SBD02 Super Battle Droid July 9, 24BBY 3 Obi-Wan Kenobi
Anakin Skywalker April 15, 28BBY Blue BD002 Battle Droid April 15, 23BBY 0 Anakin Skywalker
Mace Windu July 10, 50BBY Purple BD003 Battle Droid May 21, 24BBY 1 Mace Windu
Yoda January 1, 900BBY Green SBD03 Super Battle Droid June 30, 23BBY 3 Yoda
Obi-Wan Kenobi June 1, 57BBY Blue DDK03 Droideka August 8, 23BBY 9 Obi-Wan Kenobi
Anakin Skywalker April 15, 28BBY Blue DDK04 Droideka September 16, 24BBY 10 Anakin Skywalker
Mace Windu July 10, 50BBY Purple SBD04 Super Battle Droid October 25, 23BBY 2 Mace Windu
Yoda January 1, 900BBY Green BD004 Battle Droid November 29, 23BBY 1 Yoda
Obi-Wan Kenobi June 1, 57BBY Blue BD005 Battle Droid December 2, 24BBY 0 Obi-Wan Kenobi
Anakin Skywalker April 15, 28BBY Blue SBD05 Super Battle Droid January 14, 23BBY 3 Anakin Skywalker
Mace Windu July 10, 50BBY Purple DDK05 Droideka February 26, 24BBY 6 Mace Windu
Yoda January 1, 900BBY Green DDK06 Droideka March 8, 24BBY 7 Yoda
Obi-Wan Kenobi June 1, 57BBY Blue SBD06 Super Battle Droid April 19, 24BBY 1 Obi-Wan Kenobi
Anakin Skywalker April 15, 28BBY Blue BD006 Battle Droid May 27, 23BBY 0 Anakin Skywalker
Mace Windu July 10, 50BBY Purple BD007 Battle Droid July 7, 24BBY 1 Mace Windu
Yoda January 1, 900BBY Green SBD07 Super Battle Droid August 14, 23BBY 2 Yoda
Obi-Wan Kenobi June 1, 57BBY Blue DDK07 Droideka September 23, 24BBY 8 Obi-Wan Kenobi
Anakin Skywalker April 15, 28BBY Blue DDK08 Droideka November 2, 24BBY 9 Anakin Skywalker
Mace Windu July 10, 50BBY Purple SBD08 Super Battle Droid December 11, 23BBY 1 Mace Windu
Yoda January 1, 900BBY Green BD008 Battle Droid January 20, 23BBY 0 Yoda
Obi-Wan Kenobi June 1, 57BBY Blue BD009 Battle Droid February 25, 24BBY 0 Obi-Wan Kenobi
Anakin Skywalker April 15, 28BBY Blue SBD09 Super Battle Droid April 5, 23BBY 2 Anakin Skywalker
Mace Windu July 10, 50BBY Purple DDK09 Droideka May 12, 24BBY 6 Mace Windu
Yoda January 1, 900BBY Green DDK09 Droideka May 12, 24BBY 6 Yoda
Obi-Wan Kenobi June 1, 57BBY Blue DDK10 Droideka June 20, 24BBY 8 Obi-Wan Kenobi
Anakin Skywalker April 15, 28BBY Blue DDK10 Droideka June 20, 24BBY 8 Anakin Skywalker

The normalized tables are as follows:

Jedi Table:

Jedi ID Jedi Name Admission Date Lightsaber Color
1 Obi-Wan Kenobi June 1, 57BBY Blue
2 Anakin Skywalker April 15, 28BBY Blue
3 Mace Windu July 10, 50BBY Purple
4 Yoda January 1, 900BBY Green

Droids Table:

Droid Callsign Droid Type Creation Date Clones defeated before facing Jedi
BD001 Battle Droid January 5, 24BBY 1
SBD01 Super Battle Droid February 17, 23BBY 2
DDK01 Droideka December 12, 24BBY 8
DDK02 Droideka March 28, 24BBY 5
SBD02 Super Battle Droid July 9, 24BBY 3
BD002 Battle Droid April 15, 23BBY 0
BD003 Battle Droid May 21, 24BBY 1
SBD03 Super Battle Droid June 30, 23BBY 3
DDK03 Droideka August 8, 23BBY 9
DDK04 Droideka September 16, 24BBY 10
SBD04 Super Battle Droid October 25, 23BBY 2
BD004 Battle Droid November 29, 23BBY 1
BD005 Battle Droid December 2, 24BBY 0
SBD05 Super Battle Droid January 14, 23BBY 3
DDK05 Droideka February 26, 24BBY 6
DDK06 Droideka March 8, 24BBY 7
SBD06 Super Battle Droid April 19, 24BBY 1
BD006 Battle Droid May 27, 23BBY 0
BD007 Battle Droid July 7, 24BBY 1
SBD07 Super Battle Droid August 14, 23BBY 2
DDK07 Droideka September 23, 24BBY 8
DDK08 Droideka November 2, 24BBY 9
SBD08 Super Battle Droid December 11, 23BBY 1
BD008 Battle Droid January 20, 23BBY 0
BD009 Battle Droid February 25, 24BBY 0
SBD09 Super Battle Droid April 5, 23BBY 2
DDK09 Droideka May 12, 24BBY 6
DDK10 Droideka June 20, 24BBY 8

Fights Table:

Jedi ID Droid Callsign Winner
1 BD001 Obi-Wan Kenobi
2 SBD01 Anakin Skywalker
3 DDK01 Mace Windu
4 DDK02 Yoda
1 SBD02 Obi-Wan Kenobi
2 BD002 Anakin Skywalker
3 BD003 Mace Windu
4 SBD03 Yoda
1 DDK03 Obi-Wan Kenobi
2 DDK04 Anakin Skywalker
3 SBD04 Mace Windu
4 BD004 Yoda
1 BD005 Obi-Wan Kenobi
2 SBD05 Anakin Skywalker
3 DDK05 Mace Windu
4 DDK06 Yoda
1 SBD06 Obi-Wan Kenobi
2 BD006 Anakin Skywalker
3 BD007 Mace Windu
4 SBD07 Yoda
1 DDK07 Obi-Wan Kenobi
2 DDK08 Anakin Skywalker
3 SBD08 Mace Windu
4 BD008 Yoda
1 BD009 Obi-Wan Kenobi
2 SBD09 Anakin Skywalker
3 DDK09 Mace Windu
4 DDK09 Yoda
1 DDK10 Obi-Wan Kenobi
2 DDK10 Anakin Skywalker

3 Questions: List them here (you can use various question types)
Question 1: The following are four versions of DDL to create the “Jedi” table. One version of the DDL should be correct, the other three should be wrong. Identify the correct answer and explain what is wrong about each of the three wrong choices.

a)

CREATE TABLE Jedi (
    Jedi_ID INT PRIMARY KEY,
    Jedi_Name VARCHAR(50),
    Admission_Date DATE,
    Lightsaber_Color VARCHAR(20)
);

b)

CREATE TABLE Jedi (
    Jedi_ID VARCHAR(10) PRIMARY KEY,
    Jedi_Name VARCHAR(50),
    Admission_Date DATE,
    Lightsaber_Color VARCHAR(20)
);

c)

CREATE TABLE Jedi (
    Jedi_ID INT,
    Jedi_Name VARCHAR(50),
    Admission_Date DATE,
    Lightsaber_Color VARCHAR(20)
);

d)

CREATE TABLE Jedi (
    Jedi_ID INT PRIMARY KEY,
    Jedi_Name VARCHAR(50),
    Admission_Date VARCHAR(15),
    Lightsaber_Color VARCHAR(20)
);

Question 2: Review the following four SQL queries. The goal of the query is to calculate the total number of droid fights won by each Jedi. One version of the SQL query is correct, the other three are wrong. Identify which query is correct, and explain what is wrong about each of the three wrong choices.

a)

SELECT j.Jedi_Name, j.Lightsaber_Color, COUNT(f.Jedi_ID) AS Total_Fights
FROM Jedi j
INNER JOIN Fights f ON j.Jedi_ID = f.Jedi_ID
GROUP BY j.Jedi_ID, j.Jedi_Name, j.Lightsaber_Color;

b)

SELECT j.Jedi_Name, j.Lightsaber_Color, COUNT(f.Jedi_ID) AS Total_Fights
FROM Jedi j, Fights f
GROUP BY j.Jedi_ID, j.Jedi_Name, j.Lightsaber_Color;

c)

SELECT j.Jedi_Name, j.Lightsaber_Color, COUNT(j.Jedi_ID) AS Total_Fights
FROM Jedi j
INNER JOIN Fights f ON j.Jedi_ID = f.Jedi_ID
GROUP BY j.Jedi_ID, j.Jedi_Name, j.Lightsaber_Color;

d)

SELECT j.Jedi_Name, j.Lightsaber_Color, COUNT(f.Jedi_ID) AS Total_Fights
FROM Jedi j
INNER JOIN Fights f ON j.Jedi_ID = f.Jedi_ID;

Question 3:
Review the following four SQL queries. The goal of the query is to calculate the total number of droid fights won by each Jedi. One version of the SQL query is correct, the other three are wrong. Identify which query is correct, and explain what is wrong about each of the three wrong choices.

a)

SELECT Droid_Callsign, Number_of_Clones_Defeated
FROM Droids
ORDER BY Number_of_Clones_Defeated DESC
LIMIT 3;

b)

SELECT Droid_Callsign, Number_of_Clones_Defeated
FROM Droids
LIMIT 3;

c)

SELECT Droid_Callsign, Clones_Defeated
FROM Droids
ORDER BY Clones_Defeated DESC
LIMIT 3;

d)

SELECT Droid_Callsign, Number_of_Clones_Defeated
FROM Jedi
ORDER BY Number_of_Clones_Defeated DESC
LIMIT 3;

Answers to questions: Make sure to hide them using [spoiler] tag
Question 1: Answer A is correct. Answer B uses the wrong data type for the Jedi_ID column. It should be of type INT to store the unique identifier for each Jedi. Using VARCHAR(10) would be inappropriate and might lead to issues when performing numeric operations or joining with other tables. Answer C misses the primary key constraint on the Jedi_ID column. A primary key is necessary to uniquely identify each Jedi in the table and enforce data integrity. Without the primary key constraint, it would be possible to have duplicate or NULL values in the Jedi_ID column, which is undesirable. Answer D uses the wrong data type for the Admission_Date column. Storing dates as VARCHAR is not recommended because it hinders efficient date-related operations and can lead to inconsistencies in date formatting. Using the DATE data type allows for proper date storage, manipulation, and comparison functionalities.

Question 2:

Answer A is correct. Answer B is wrong because this version uses an implicit join with comma-separated table names but does not include the necessary join condition. This results in a cross join or Cartesian product, which combines all rows from the “Jedi” and “Fights” tables. It will not provide accurate results since the join condition is missing. Answer C is wrong because it uses the wrong alias in the COUNT function. It should use the alias of the joined table “f” instead of “j” since we want to count the number of fights from the “Fights” table. Using “j.Jedi_ID” in the COUNT function will give the count of Jedi IDs instead of the count of fights. Answer D is wrong because it is missing the GROUP BY clause. When using aggregate functions like COUNT, it is necessary to include the GROUP BY clause to specify the columns that are not part of the aggregate function. Omitting the GROUP BY clause will result in a syntax error.

Question 3:

Answer A is correct. Answer B retrieves the Droid_Callsign and Number_of_Clones_Defeated columns from the Droids table but is missing the ORDER BY clause. Without the ORDER BY clause, the result will not be sorted in any particular order, and it may not accurately identify the top 3 droids with the most clones defeated. Answer C attempts to retrieve the Clones_Defeated column from the Droids table. However, the correct column name is Number_of_Clones_Defeated. Using the wrong column name in the SELECT clause will result in an error or return NULL values. Answer D attempts to retrieve the Droid_Callsign and Number_of_Clones_Defeated columns from the Jedi table. However, the correct table to retrieve this information is the Droids table. Using the wrong table name in the FROM clause will result in an error or an empty result set.

Time to develop: About 30-45 minutes; mostly had to struggle through making a reasonably complex and consistent “flat file” with enough rich dimensions to warrant normalizing the data into 3 tables.
Prompts used:

Please create a “flat file” table with 30 rows of data that can be normalized into three separate tables. Let those three resulting separate tables come from Star Wars Episode II: The names of Jedi, the droids they fought in the coliseum, and the outcome of each individual fight.

Please make the following modifications: Replace the “Droid Name” in the flat file with a Droid Callsign - BD### for Battle Droids, SBD## for Super Battle Droids, and DDK## for Droidekas. Replace the ‘Droids’ Table with a table that shows which droid type is represented by each callsign. Also, for each call sign in the “Droids” table, show what date they were created (make up a date between January 1, 23BBY and December 31, 24BBY).

Now enrich the “Jedi” table to include the date that each one was admitted to the Jedi Order, between January 1, 30BBY and December 31, 900BBY. Yoda was born around 900BBY. Obi-Wan was born around 70BBY. Anakin was born around 42BBY. Mace Windu was born around 75BBY.

Now enrich the “Jedi” table to include the color of each of their lightsabers.

Now replace the text “Win” in the “Outcome” column with either the Jedi’s name or the Droid’s Callsign.

Now enrich the droids table with a random “Number of clones defeated”. The battle droids’ values should range between 0 and 1. The super battle droids’ values should range between 0 and 3. The droidekas’ values should range between 2 and 10. The number of clones defeated needs to be an integer value.

OK, now display the full “flat file” table. Remember, the table should not be normalized. The table should contain all of columns from the “Droids”, “Jedi” and “Fights” tables, except for the IDs (Jedi ID, Droid ID, and Fight ID).

Almost, but the flat file table should also include columns for the color of the Jedi’s lightsaber and the date that the Jedi was admitted to the order. Also, please rename the “Outcome” column to “Winner”. Rename the “Number of Clones Defeated” column to “Clones defeated before facing Jedi”.

Please add two more rows each for DDK09 and DDK10, showing that they fought several Jedi at the same time.

OK, but the Jedi ultimately defeated both DDK09 and DDK10, so the winner should be listed as one Jedi for each of the droids.

OK. Please display the full flat file (it should have 34 rows now).

Perfect! Now please normalize that “Flat File” table into three tables: Droids, Jedi, and Fights.

Please revise the “Jedi” table to include the Jedi ID. Please revise the “Fights” table to replace “Droid ID” with “Droid Callsign”.

In the “flat file”, you said that DDK09 only faced Mace Windu and Yoda while DDK10 faced Obi-Wan Kenobi and Anakin Skywalker, but in the most recent “Fights” table, you should DDK10 facing all four Jedi. Please remove the two extra rows in the most recent “Fights” table such that DDK10 only faces Obi-Wan Kenobi and Anakin Skywalker.

Topic Area: Management Accounting
Class level; Junior/Senior
vignette: JOLA Ltd is about to a prepare budget for three months beginning July 2023.
Questions

  1. Prepare a cash budget for three months beginning July 2023
  2. In what month does the cash budget show the highest balance?
  3. What is the closing cash balance for the period?
    Answer to Questions
    To prepare the cash budget for the three months beginning July 2023 and answer your questions, let’s calculate the cash inflows and outflows for each month. We’ll start with the given information and consider the 10% growth rate for sales:

Cash Budget for Three Months Beginning July 2023:
Month: July

Opening Cash Balance: $100,000

Cash Inflows:
Sales: $5,000,000 (June sales)
Total Cash Inflows: $5,000,000

Cash Outflows:
Commissions: $200,000
Purchases (60% of monthly sales): $3,000,000 (60% x $5,000,000)
Salaries (10% of monthly sales): $500,000 (10% x $5,000,000)
Overheads (6% of sales): $300,000 (6% x $5,000,000)
Depreciation: $100,000

Total Cash Outflows: $4,100,000

Net Cash Flow (Inflows - Outflows): $5,000,000 - $4,100,000 = $900,000

Closing Cash Balance (Opening Balance + Net Cash Flow): $100,000 + $900,000 = $1,000,000

Month: August

Opening Cash Balance: $1,000,000

Cash Inflows:
Sales: $5,500,000 (10% growth from previous month’s sales of $5,000,000)
Total Cash Inflows: $5,500,000

Cash Outflows:
Commissions: $200,000
Purchases (60% of monthly sales): $3,300,000 (60% x $5,500,000)
Salaries (10% of monthly sales): $550,000 (10% x $5,500,000)
Overheads (6% of sales): $330,000 (6% x $5,500,000)
Depreciation: $100,000

Total Cash Outflows: $4,480,000

Net Cash Flow (Inflows - Outflows): $5,500,000 - $4,480,000 = $1,020,000

Closing Cash Balance (Opening Balance + Net Cash Flow): $1,000,000 + $1,020,000 = $2,020,000

Month: September

Opening Cash Balance: $2,020,000

Cash Inflows:
Sales: $6,050,000 (10% growth from previous month’s sales of $5,500,000)
Total Cash Inflows: $6,050,000

Cash Outflows:
Commissions: $200,000
Purchases (60% of monthly sales): $3,630,000 (60% x $6,050,000)
Salaries (10% of monthly sales): $605,000 (10% x $6,050,000)
Overheads (6% of sales): $363,000 (6% x $6,050,000)
Depreciation: $100,000

Total Cash Outflows: $4,898,000

Net Cash Flow (Inflows - Outflows): $6,050,000 - $4,898,000 = $1,152,000

Closing Cash Balance (Opening Balance + Net Cash Flow): $2,020,000 + $1,152,000 = $3,172,000

The month with the highest cash balance is September, with a closing cash balance of $3,172,000.

The closing cash balance for the three-month period is $3,172,000.

Please note that this cash budget assumes no additional cash inflows or outflows other than the ones mentioned in the given information. It also considers the 10% monthly growth in sales and assumes that commissions and other expenses remain unchanged for each month.

Time to develop: 30 minutes
Prompt used:
Please assist me to prepare a cash budget for the three months beginning July 2023. The opening cash balance was $100,000. Sales for the month of June were $5,000,000 and sales are expected to grow at 10% of the previous month. Commissions were $200,000 and this should remain unchanged for each month. Purchases are 60% of monthly sales, Salaries is10% of monthly sales, and overheads were 6% of sales. Depreciation is %100,000 per month. I made it clear that the 10% growth in sales applied to the month of July too, but Chat GPT was unable to recognize that fact. unfortunately, Chat GPT failed to recognize that depreciation charge is not a cash flow, it included it in outflows.

1 Like

I like the idea behind this case. I extended it to ask students if the financial statements were correct or if there were any errors. You can even ask ChatGPT to do this. If you do, you will find that the statement of cash flows total increase in cash and cash equivalents is not correct (it should be $680,000 - 300,000 + 680,000 = $1,060,000 not $420,000. This is especially problematic since the stated cash on the balance sheet is $500,000 so the increase doesn’t make sense (they didn’t start with a negative cash balance at the beginning of the year).
I think this can help students see that they should review any output from ChatGPT to make sure it is accurate.