Exercise 1: Thirty nine women with a diagnosis of inoperable or metastatic breast cancer have been followed-up for a number of years, while under continuous treatment with a medication called trastzuzumab. The time (in months) each patient remained in remission was recorded. Remission is is a decrease or disappearance of signs and symptoms of cancer. Below is the data. 50 74 35 39 21 37 27 35 30 35 26 38 34 34 26 41 61 33 33 26 25 41 35 34 44 33 60 61 42 30 80 31 24 49 26 31 28 41 37. 1. Are there any outliers in the sample? If so, indicate their values. 2. Compute the 45-th percentile of the remission time. 3. Find a 97% confidence interval for the average remission time

Create journal entries for each transactions and post them to the correct ledger/t-accounts.

Standard Transactions:

1. On November 1, Chris Clark deposited $25,000 in a bank account in the name of NetSolutions.

2. On November 5, NetSolutions paid $20,000 for the purchase of land as a future building site.

3. On November 10, NetSolutions purchased supplies on account for $1,350.

4. On November 18, NetSolutions received cash of $7,500 from customers for services provided.

5. On November 30, 2018, NetSolutions paid the following expenses: wages, $2,125; rent, $800; utilities, $450; and miscellaneous, $275.

6. On November 30, 2018, NetSolutions paid creditors on account, $950.

7. On November 30, 2018, Chris Clark determined that the cost of supplies on hand at the end of the month was $550.

8. On November 30, 2018, Chris Clark withdrew $2,000 from NetSolutions for personal use.

9. On December 1, NetSolutions paid rent for December, $800.

10. On December 1, NetSolutions received an offer from a local retailer to rent the land purchased on November 5. The retailer plans to use the land as a parking lot for its employees and customers. NetSolutions agreed to rent the land to the retailer for three months, with the rent payable in advance. NetSolutions received $360 for three months’ rent beginning December 1.

11. On December 4, NetSolutions purchased office equipment on account from Executive Supply Co. for $1,800.

12. On December 6, NetSolutions paid $180 for a newspaper advertisement.

13. On December 11, NetSolutions paid creditors $400.

14. On December 13, NetSolutions paid a receptionist and a part-time assistant $950 for two weeks’ wages.

15. On December 16, NetSolutions received $3,100 from fees earned for the first half of December.

16. Fees earned on account totaled $1,750 for the first half of December.

17. On December 20, NetSolutions paid $900 to Executive Supply Co. on the $1,800 debt owed from the December 4 transaction.

18. On December 21, NetSolutions received $650 from customers in payment of their accounts.

19. On December 23, NetSolutions paid $1,450 for supplies.

20. On December 27, NetSolutions paid the receptionist and the part-time assistant $1,200 for two weeks’ wages.

21. On December 31, NetSolutions paid its $310 telephone bill for the month.

22. On December 31, NetSolutions paid its $225 electric bill for the month.

23. On December 31, NetSolutions received $2,870 from fees earned for the second half of December.

24. On December 31, fees earned on account totaled $1,120 for the second half of December.

25. On December 31, Chris Clark withdrew $2,000 for personal use

Adjusting Entries:

26. Assume that NetSolutions signed an agreement with Dankner Co. on December 15 to provide services at a rate of $20 per hour. As of December 31, NetSolutions had provided 25 hours of services. The revenue will be billed on January 15.

27. NetSolutions pays it employees biweekly. During December, NetSolutions paid wages of $950 on December 13 and $1,200 on December 27. As of December 31, NetSolutions owes $250 of wages to employees for Monday and Tuesday, December 30 and 31.

28. NetSolutions paid wages of $1,275 on January 10. This payment includes the $250 of accrued wages recorded on December 31.

29. The December 31 unadjusted trial balance of NetSolutions indicates a balance in the unearned rent account of $360. This balance represents the receipt of three months’ rent on December 1 for December, January, and February. At the end of December, one month’s rent has been earned.

30. The December 31, 2018, unadjusted trial balance of NetSolutions indicates a balance in the supplies account of $2,000. Some of these supplies were used during December, and some are still on hand (not used). Assuming that on December 31 the amount of supplies on hand is $760, the amount to be transferred from the asset account to the expense account is computed as follows:

31. The December 31, unadjusted trial balance of NetSolutions indicates a balance in the prepaid insurance account of $2,400. The debit balance of $2,400 represents the December 1 prepayment of insurance for 12 months. At the end of December, the insurance expense account is increased (debited), and the prepaid insurance account is decreased (credited) by $200, the insurance for one month.

32. NetSolutions’ office equipment depreciates $50 during December.

A researcher was interested in investigating a relationship between the age (independent variable) of a driver and the distance the driver can see. For this purpose, he collected data on some drives. The data is provided in Appendix ‘1”.

To help you, partial summary analysis is provided below: SSxx= 13,752 SSxy=- 41,350 SSyy=193,667 ∑ x = ∑ Age = 1,530; ∑ y = ∑(Distance the driver can see)=12,700

Age Distance
18 510
20 590
22 560
23 510
23 460
25 490
27 560
28 510
29 460
32 410
37 420
41 460
46 450
49 380
53 460
55 420
63 350
65 420
66 300
67 410
68 300
70 390
71 320
72 370
73 280
74 420
75 460
77 360
79 310
82 360

a) Write the estimated regression line

b) Is the relationship meaningful (significant at α=0.05)? (3 pts) – make sure to state the null and alternative hypothesis first.

c) What is the strength of the relation? It is significant? (3 pts)

d) What is the coefficient of determination? (2 pts)

e) John is 61 years old. What is the expected driving distance for him? What is the 95% prediction interval for John? (4 pts)

Write a business plan for a child home daycare provider business including:

1.      Executive Summary:

A.    The Grab - Lead with the most compelling statement of why you have a really big idea. This sets the tone for the rest of the executive summary

B.     Product/Service Offer - What specifically are you offering to whom?

C.     Market Opportunity - Provides a basic Industry Analysis - size, growth and dynamics— how many customers &/or companies

D.    Your Competitive Advantage - Understand what your real, sustainable competitive advantage is, and state clearly what it is.

E.     Revenue Model – Estimate what revenue (sales), in dollars, your business will generate for your 1st year of business and 2 nd year and 3rd year.

2.      Product or Service

Write 1-2 paragraphs that describe your what your company sells.

3.       Market analysis You are to clearly describe your target market for your product or service, that is, clearly describe who your customers are.

4.       Analysis of competition

– Top 2 companies in this Industry An analysis that in the writing demonstrates that you have a clear understanding of your competition.

5.       Promotional Campaign Plan

Provide a detailed plan for how you are going to promote the opening “day” for your business. State in this section the date when that “opening day” will be.

6.       Mission Statement

Use the information provided in CH 7 to write a mission statement for your business that is no longer than 2 sentences in length.

7.       Three-year goals for your business

State 2 specific and measurable goals for year 1; 2 specific and measurable goals for year 2; and 2 specific and measurable goals for year 3 that your business will focus on and accomplish.

Write a business plan for a child daycare provider business including:

Executive Summary:

The Grab - Lead with the most compelling statement of why you have a really big idea. This sets the tone for the rest of the executive summary

Product/Service Offer - What specifically are you offering to whom?

Market Opportunity - Provides a basic Industry Analysis - size, growth and dynamics— how many customers &/or companies

Your Competitive Advantage - Understand what your real, sustainable competitive advantage is, and state clearly what it is.

Revenue Model – Estimate what revenue (sales), in dollars, your business will generate for your 1st year of business and 2 nd year and 3rd year.

Product or Service

Write 1-2 paragraphs that describe your what your company sells.

Market analysis You are to clearly describe your target market for your product or service, that is, clearly describe who your customers are.

Analysis of competition

– Top 2 companies in this Industry An analysis that in the writing demonstrates that you have a clear understanding of your competition.

Promotional Campaign Plan

Provide a detailed plan for how you are going to promote the opening “day” for your business. State in this section the date when that “opening day” will be.

Mission Statement

Use the information provided in CH 7 to write a mission statement for your business that is no longer than 2 sentences in length.

Three-year goals for your business

State 2 specific and measurable goals for year 1; 2 specific and measurable goals for year 2; and 2 specific and measurable goals for year 3 that your business will focus on and accomplish.

Appendix

8.       Appendix

The time required to start a​ business, defined as the number of days needed to complete the procedures to legally operate a​ business, in 20 developed countries and 20 emerging countries is included in the accompanying table.

a. a. Assuming that the population variances for developed countries and emerging countries are​ equal, is there evidence of a difference in the mean time required to start a business between developed countries and emerging​ countries? (Use α=0.05.)

Let μ1 be the mean time required to start a business in developed countries and let μ2 be the mean time required to start a business in emerging countries. What are the null and alternative​ hypotheses?

b. What is the test​ statistic? ​(Round to two decimal places.)

c. What​ is/are the critical​ value(s)?  ​(Round to two decimal places.)

d. Determine the​ p-value in​ (a) and interpret its meaning. ​(Round to three decimal places.)

e. Construct a 95% confidence interval estimate of the difference between the population means of developed countries and emerging countries. (Round to two decimal places.)

Accounting ethics cases

You have recently been hired as the assistant controller for Stanton Temperton Corporation, which rents building space in major metropolitan areas. Customers are required to pay six months of rent in advance. At the end of 2018, the company's president, Jim Temperton, notices that net income has fallen compared to last year. In 2017, the company reported before-tax profit of $330,000, but in 2018 the before-tax profit is only $280,000. This concerns Jim for two reasons. First, his year-end bonus is tied directly to before-tax profits. Second, shareholders may see a decline in profitability as a weakness in the company and begin to sell their stock. With the sell-off of stock, Jim's personal investment in the company's stock, as well as his company-operated retirement plan, will be in jeopardy of severe losses. After close inspection of the financial statements, Jim notices that the balance of the Deferred Revenue account is $120,000. This amount represents payments in advance from long-term customers ($80,000) and from relatively new customers ($40,000). Jim comes to you, the company's accountant, and suggests that the firm should recognize as revenue in 2018 the $80,000 received in advance from long-term customers. He offers the following explanation: “First, we have received these customers' cash by the end of 2018, so there is no question about their ability to pay. Second, we have a long-term history of fulfilling our obligation to these customers. We have always stood by our commitments to our customers and we always will. We earned that money when we got them to sign the sixmonth contract.”

1. Summarize your case.

2. What is the dilemma?

3. What is the ethical solution?

4. What would you do if you are faced with the dilemma?

You have recently been hired as the assistant controller for Stanton Temperton Corporation, which rents building space in major metropolitan areas. Customers are required to pay six months of rent in advance. At the end of 2018, the company's president, Jim Temperton, notices that net income has fallen compared to last year. In 2017, the company reported before-tax profit of $330,000, but in 2018 the before-tax profit is only $280,000. This concerns Jim for two reasons. First, his year-end bonus is tied directly to before-tax profits. Second, shareholders may see a decline in profitability as a weakness in the company and begin to sell their stock. With the sell-off of stock, Jim's personal investment in the company's stock, as well as his company-operated retirement plan, will be in jeopardy of severe losses. After close inspection of the financial statements, Jim notices that the balance of the Deferred Revenue account is $120,000. This amount represents payments in advance from long-term customers ($80,000) and from relatively new customers ($40,000). Jim comes to you, the company's accountant, and suggests that the firm should recognize as revenue in 2018 the $80,000 received in advance from long-term customers. He offers the following explanation: “First, we have received these customers' cash by the end of 2018, so there is no question about their ability to pay. Second, we have a long-term history of fulfilling our obligation to these customers. We have always stood by our commitments to our customers and we always will. We earned that money when we got them to sign the six-month contract.” Required: Discuss the ethical dilemma you face. What is the issue? Who are the parties affected? What factors should you consider in making your decision? Your answer must specifically state what principle or concept may be violated.

Refer to the accompanying data set and construct a 95​% confidence interval estimate of the mean pulse rate of adult​ females; then do the same for adult males. Compare the results.

Males : 86. 76. 49. 61. 55. 63. 53. 73. 53. 61. 74. 59. 63. 76. 85. 68. 63. 94. 41. 84. 74. 64. 69. 72. 55. 68. 58. 78. 69. 66. 64. 94. 56. 66. 60. 57. 68. 72. 87. 60.

Females: 81. 91. 60. 68. 57. 81. 78. 85. 85. 55. 37. 68. 82. 75. 77. 61. 68. 80. 58. 64. 82. 83. 72. 71. 86. 88. 86. 89. 91. 94. 67. 90. 82. 81. 74. 58. 99. 71. 76. 78.

Construct a 95% confidence interval of the mean pulse rate for adult females. (Round to one decimal)

Construct a 95% confidence interval of the mean pulse rate for adult males. (Round to one decimal

Compare the results.

A. The confidence intervals do not​ overlap, so it appears that there is no significant difference in mean pulse rates between adult females and adult males.

B. The confidence intervals​ overlap, so it appears that there is no significant difference in mean pulse rates between adult females and adult males.

C. The confidence intervals do not​ overlap, so it appears that adult females have a significantly higher mean pulse rate than adult males.

D. The confidence intervals​ overlap, so it appears that adult males have a significantly higher mean pulse rate than adult females.

All of the following industry types have market power except

A) monopolistic competition.
B) perfect competition.
C) monopoly.

D) oligopoly.

CCC Computer Company has a monopoly on the sale of a specialized color printer. If it sells two of these printers its total revenue is $1,000, and if it sells three color printers its total revenue is $1,200. The marginal revenue of the third color printer sold is
A) equal to the price

B) $400
C) less than its price
D) higher than the price

For a monopoly, the marginal revenue curve has one point in common with the firm's linear demand curve, which is ___________
A) y - intercept
B) no point in common

C) x - intercept
D) Indeterminate from the given information

When a monopolist sells two units of output its total revenue is $600. When a monopolist sells three units of output its total revenue is $630. The marginal revenue of the second unit is _____ A) Indeterminate from the given information
B) $230.

C) $310.

D) $630.

When a monopolist sells two units of output its total revenue is $600. When a monopolist sells three units of output its total revenue is $660. In order to sell three units of output instead of only two, the monopolist must
A) increase its price by $30 per unit.

B) decrease its price by $80 per unit.
C) make no change in price and increase output by one unit.

D) decrease its price by $30 per unit.