We all want to be able to Wow our customers. Give three examples of how you can impress customers without costing the company any money

Data are shown for a study of pulse rates of students sitting versus standing. At α = 0.05, test the claim that the standing pulse rate is higher than the sitting pulse rate for students.

(a)   The partnership of Hanly, Ide, and Jen was dissolved. By August 1, 2006, all assets had been converted into cash and all partnership liabilities were paid. The partnership balance sheet on August 1, 2006 (with partner residual profit and loss sharing percentages) was as follows:

Cash   $   50,000       Hanly, capital(30%)   $   4,000
               Ide, capital(20%)       (60,000)
               Jen, capital(50%)       106,000
Total assets   $   50,000       Total equity   $   50,000

The value of partners' personal assets and liabilities on August 1, 2006 were as follows:
       Hanly       Ide       Jen
Personal assets   $   74,000   $   120,000   $   56,000
Personal liabilities       72,000       80,000       60,000
                      
(a)   Required:

Prepare the final statement of partnership liquidation.

***PLEASE ANSWER WITH FORMULAS INCLUDED***

Newman Industries is a leading supplier of cosmetics.

In the letter to stockholders as part of the 2008 annual report, President and CEO Jennifer White offered the following remarks:

Fiscal 2008 was clearly a mixed bag for Newman, the industry, and the economy as a whole.

Still, we finished with revenue growth of 15 percent—and that’s significant. We believe it’s a good indication that Newman continued to pull away from the pack and gain market share. For that, we owe a debt of gratitude to our employees worldwide, who aggressively brought costs down— even as they continued to bring exciting new products to market.

The statement would not appear to be telling you enough. For example, Chauhan says the year was a mixed bag with revenue growth of 15 percent. But what about earnings? You can delve further by examining the income statement in Exhibit 1. Also, for additional analysis of other factors, consolidated balance sheet(s) are presented in Exhibit 2 on page 92.

1. Referring to Exhibit 1, compute the annual percentage change in net income per common share-diluted (second numerical line from the bottom) for 2005–2006, 2006–2007, and 2007–2008.
2. Also in Exhibit 1, compute net income/net revenue (sales) for each of the four years. Begin with 2005.
3. What is the major reason for the change in the answer for Question 2 between 2007 and 2008? To answer this question for each of the two years, take the ratio of the major income statement accounts to net revenues (sales).

Cost of sales

Research and development

Selling, general and administrative expense

Provision for income tax

4. Compute return on stockholders’ equity for 2007 and 2008 using data from Exhibits 1 and 2.

Exhibit 1

5. Analyze your results to Question 4 more completely by computing ratios 1, 2a, 2b, and 3b (all from this chapter) for 2007 and 2008. Actually, the answer to ratio 1 can be found as part of the answer to question 2, but it is helpful to look at it again.

What do you think was the main contributing factor to the change in return on stockholders’ equity between 2007 and 2008? Think in terms of the Du Pont system of analysis.

6. The average stock prices for each of the four years shown in Exhibit 1 were as follows:
   2005. 11¼  
   2006. 16¾
   2007. 28½
   2008. 9½

1. Compute the price/earnings (P/E) ratio for each year. That is, take the stock price shown above and divide by net income per common stock-dilution from Exhibit 1.
2. Why do you think the P/E has changed from its 2007 level to its 2008 level? A brief review of P/E ratios can be found under the topic of Price-Earnings Ratio Applied to Earnings per Share in Chapter 2.

An investment website can tell what devices are used to access the site. The site managers wonder whether they should enhance the facilities for trading via​ "smart phones", so they want to estimate the proportion of users who access the site that way​ (even if they also use their computers​ sometimes). They draw a random sample of

200200

investors from their customers. Suppose that the true proportion of smart phone users is

3737​%.

​a) What would the standard deviation of the sampling distribution of the proportion of the smart phone users​ be?

. 034.034

​(Round to three decimal places as​ needed.)​b) What is the probability that the sample proportion of smart phone users is greater than

0.370.37​?

. 5.5

​(Round to three decimal places as​ needed.)​c) What is the probability that the sample proportion is between

0.320.32

and

0.420.42​?

nothing

​(Round to three decimal places as​ needed.)

Job Order Costing and T-accounts

Arnold Company makes cabinets to customer order. Arnold applies overhead at the rate of 20% of direct labor cost. Jobs are marked up at 30% over cost.

On July 1, Finished Goods inventory consisted of Job 68, costing $9,300. Work in Process inventory consisted of three jobs: Job 70 for $3,200, Job 71 for $1,400, and Job 72 for $700.

During the month of July, Arnold worked on six jobs with the following direct materials and direct labor for the month:

Jobs 70, 71, 73 and 74 were completed during July. Jobs 68, 70, 71 and 74 were sold. (All completed jobs are first transferred to Finished Goods, then to Cost of Goods Sold as they are sold.)

Fill in the following job cost sheet and calculate the total cost by July 31 for each job.

Enter the appropriate numbers to the correct T-accounts for Work-in-Process, Finished Goods and Cost of Goods Sold for each of the following: (Hint: when entering amounts for a transaction that includes more than one job, enter them in order of the job number. That is, if a transaction included amounts for Jobs 70 and 72, the amount for Job 70 would be entered before the amount for Job 72.)

Use the Interactive Graph to answer the following questions:

If direct labor added to Job 73 equaled $2,400, the ending balances of each of the following accounts would be affected in what way?

If the overhead rate based on direct labor was 40%, the ending balances of each of the following accounts would be affected in what way?

Create a new table named CUSTOMER_STATUS.The table will hold the Customer_Status_Id and the Customer_Status_Description with possible values:

Inactive, Active, Very_Active

These values will be used to characterize the customers so that:

                  Inactive Customers => Have 0 orders

                  Active Customers => Have between 1 and 3 orders

Very Active Customers => Have 4 or more orders

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.80 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

The total cost of operating the company for the year is $345,000 which includes the following costs:

Resource consumption is distributed across the activities as follows:

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. The company recently completed a 400 square foot carpet-cleaning job at the Flying N Ranch—a 58-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system.

4. The revenue from the Flying N Ranch was $91.20 (400 square feet @ $22.80 per hundred square feet). Calculate the customer margin earned on this job.

You want to develop a regression model about the 2004 presidential election. The objective is to explain percentage of votes received by the Democratic candidate in each state. The explanatory variables are:

(i) unemployment rate in each state,

(ii) gender dummy (female =1 and male = 0),

(iii) a dummy variable for Bill Clinton’s appearance in the state to campaign,

(iv) an interaction term between the gender dummy and the Clinton dummy.

You want to consider a variety of models. Model I contains the variables in (i) and (ii). Model II contains the variables in (i), (ii), and (iii). Model III contains the variables in (i), (ii), (iii) and (iv).

1. Write down each of the above three regression models. Be sure to define all notations.
2. Interpret all the coefficients in Model III.
3. Using Models II and III, indicate how you would test the following hypotheses. Be sure to write down the null hypothesis, restricted and unrestricted models, etc.
   1. Unemployment doesn’t matter.
   2. Clinton’s appearance had no effect.
   3. Clinton’s appearance had same effect for both males and females.