You are out at an audit client's headquarters in Los Angeles, California. The client is a well-known television psychic. The client company does television advertising using a person who speaks with a Jamaican accent (but she is really from the U.S. and has never been to Jamaica, mon). The pitch is that she knows all and can tell you your future. For example, she tells young women who call that they might have children, but probably not more than four. When her caller ID function shows the name of a prison, she says that she thinks the caller might have done something bad that he is having regrets about. "Wow, how did you know that?" And when the caller says he or she is middle aged, she says that the person might have some health problems sometime during the next several years. As you look at the operation, you see the videotapes used by the operation to get people to call in. The company uses an 800 number to get people to call in, but then transfers the callers to a 900 number while they are on hold. An employee gets the individual's name, address, and credit card number, and informs the caller that he or she will be charged a certain fee per minute. This fee varies, based on the online credit report the employee calls up while the caller is still on the line. For example, a low-income individual might be quoted a fee of $1.99 per minute while a high-income individual might be quoted a fee of $3.50 per minute. Required: The in-charge accountant wants you to ignore the prior year's working papers and ignore the prior year's audit program. a. Tell him how you intend to approach the audit of sales and accounts receivable. b. What do you want to test? c. How will you test it?

Wise Company is considering an investment that requires an outlay of $600,000 and promises an after-tax cash inflow of $693,000 one year from now. The company's cost of capital os 10%.

1. Break the $693,000 future cash inflow into three components: (a) the return of the original investment, (b) the cost of capital and, (c) the profit earned on the investment. Now compute the present value of the profit earned on the investment.

2. Conceptual Connection: Compute the NPV of the investment. Compare this with the present value of the profit computed in Requirement 1. What does this tell you about the NPV.

Please show all work.

1. Taxpayer (“T”) a 59 year-old calendar year individual taxpayer purchased an annuity from an insurance company for $100,000 in 2019. The terms of the annuity were that the company would pay T $5,000 a year to T for the rest of T’s life. How much income will T include in T’s personal income tax return as a result of receiving the $5,000 payment

in 2020?   _____________

In 2050? ______________

Explain how and why employer-sponsored health insurance developed in the US. Who has access to ESHI and who does not, why? How does ESHI help employees access health care? Discuss what some downsides to ESHI could be.

Posts are expected to be at least 150 words in length, well-written, APA formatted, meaningfully add to the conversation about the given topic, and incorporate material from the text and other sources into your original post and responses.

Project Analysis

You are discussing a project analysis with a co-worker. The project involves real options, such as expanding the project if successful, or abandoning the project if it fails. Your coworker makes the following statement: “This analysis is ridiculous. We looked at expanding or abandoning the project in two years, but there are many other options we should consider. For example, we could expand in one year, and expand further in two years. Or we could expand in one year, and abandon the project in two years. There are too many options for us to examine. Because of this, anything this analysis would give us is worthless.” How would you evaluate this statement? Considering that with any capital budgeting project there are an infinite number of real options, when do you stop the option analysis on an individual project?

How much does a sleeping bag cost? Let’s say you want a sleeping bag that should keep you warm in temperatures from 20oF to 45oF. A random sample of prices ($) for sleeping bags in this temperature range was taken from Backpacker Magazine: Gear Guide (Vol. 25, Issue 157, No. 2.)

80      90        100      120      75      37      30        23        100      100

105      95        105      60      110      120      95        90        60        70

Find the mean x ( round to two decimals places)

Find the sample standard deviation   s    ( round to two decimals places)

Find a 90% confidence interval for the mean price µ of all summer sleeping bags.

2. Over the past few months, an adult patient has been treated for tetany (severe muscle spasms.) This condition is associated with total calcium level below 6 mg/dl . Reference: Manual of Laboratory and Diagnostics Tests by F. Fischbach). Recently, the patient’s total calcium tests gave the following readings in mg/dl

9.3       8.8       10.1     8.9       9.4       9.8

10.0     9.9       11.2     12.1

Find the mean x      ( round to two decimals places)

Find the sample standard deviation   s     (round to two decimals places)

Find a 99.9% confidence interval for the mean calcium level.

3.A random sample of 40 students taken from a university showed that their mean GPA is 2.94 and the standard deviation of their GPAs is .30. Construct a 99% confidence interval for the mean GPA of all students at this university.

4.According to a study done by Dr. Martha S. Linet and others, the mean duration of the most recent headache was 8.2 hours for a sample of 5055 females 12 through 29. Make a 95% confidence interval for the mean duration of all headaches for all 12 to 29-year-old females. The standard deviation for this sample is 2.4 hours.

5. According to a survey conducted by USA TODAY, 73.2% of the workers in the United States drive alone to work. Assume that this survey is based on a random sample of 1000 US workers.

Find a 95% confidence interval for all workers in the United States who drive alone to work.

Questions:

1. How does Andrew Carnegie justify the contrast between the wealthy and the working poor? Provide examples.
2. According to Carnegie, what is the "proper administration of wealth"?
3. Why would some people criticize Carnegie's proposals?

WEALTH

BY ANDREW CARNEGIE.

The problem of our age is the proper administration of wealth, so that the ties of brotherhood may still bind together the rich and poor in harmonious relationship. The conditions of human life have not only been changed, but revolutionized, within the past few hundred years. In former days there was little difference between the dwelling, dress, food, and environment of the chief and those of his retainers. The Indians are to-day where civilized man then was. When visiting the Sioux, I was led to the wigwam of the chief. It was just like the others in external appearance, and even within the difference was trifling between it and those of the poorest of his braves. The contrast between the palace of the millionaire and the cottage of the laborer with us to-day measures the change which has come with civilization. . . .

This change, however, is not to be deplored, but welcomed as highly beneficial. It is well, nay, essential for the progress of the race, that the houses of some should be homes for all that is highest and best in literature and the arts, and for all the refinements of civilization, rather than that none should be so. Much better this great irregularity than universal squalor. . .

The price which society pays for the law of competition, like the price it pays for cheap comforts and luxuries, is also great; but the advantage of this law are also greater still, for it is to this law that we owe our wonderful material development, which brings improved conditions in its train. But, whether the law be benign or not, we must say of it, as we say of the change in the conditions of men to which we have referred : It is here; we cannot evade it; no substitutes for it have been found; and while the law may be sometimes hard for the individual, it is best for the race, because it insures the survival of the fittest in every department. We accept and welcome therefore, as conditions to which we must accommodate ourselves, great inequality of environment, the concentration of business, industrial and commercial, in the hands of a few, and the law of competition between these, as being not only beneficial, but essential for the future progress of the race. .

We start, then, with a condition of affairs under which the best interests of the race are promoted, but which inevitably gives wealth to the few. Thus far, accepting conditions as they exist, the situation can be surveyed and pronounced good. The question then arises, --and, if the foregoing be correct, it is the only question with which we have to deal, --What is the proper mode of administering wealth after the laws upon which civilization is founded have thrown it into the hands of the few ?. . .

There are but three modes in which surplus wealth can be disposed of. It call be left to the families of the decedents; or it can be bequeathed for public purposes; or, finally, it can be administered during their lives by its possessors. Under the first and second modes most of the wealth of the world that has reached the few has hitherto been applied. Let us in turn consider each of these modes. The first is the most injudicious. In monarchical countries, the estates and the greatest portion of the wealth are left to the first son, that the vanity of the parent may be gratified by the thought that his name and title are to descend to succeeding generations unimpaired. The condition of this class in Europe to-day teaches the futility of such hopes or ambitions. The successors have become impoverished through their follies or from the fall in the value of land. . . .

As to the second mode, that of leaving wealth at death for public uses, it may be said that this is only a means for the disposal of wealth, provided a man is content to wait until he is dead before it becomes of much good in the world. Knowledge of the results of legacies bequeathed is not calculated to inspire the brightest hopes of much posthumous good being accomplished. The cases are not few in which the real object sought by the testator is not attained, nor are they few in which his real wishes are thwarted. In many cases the bequests are so used as to become only monuments of his folly . . .

There remains, then, only one mode of using great fortunes; but in this we have the true antidote for the temporary unequal distribution of wealth, the reconciliation of the rich and the poor--a reign of harmony--another ideal, differing, indeed, from that of the Communist in requiring only the further evolution of existing conditions, not the total overthrow of our civilization. It is founded upon the present most intense individualism, and the race is projected to put it in practice by degree whenever it pleases. Under its sway we shall have an ideal state, in which the surplus wealth of the few will become, in the best sense the property of the many, because administered for the common good, and this wealth, passing through the hands of the few, can be made a much more potent force for the elevation of our race than if it had been distributed in small sums to the people themselves. . .

This, then, is held to be the duty of the man of Wealth: First, to set an example of modest, unostentatious living, shunning display or extravagance; to provide moderately for the legitimate wants of those dependent upon him; and after doing so to consider all surplus revenues which come to him simply as trust funds, which he is called upon to administer, and strictly bound as a matter of duty to administer in the manner which, in his judgment, is best calculated to produce the most beneficial results for the community--the man of wealth thus becoming the mere agent and trustee for his poorer brethren, bringing to their service his superior wisdom, experience and ability to administer, doing for them better than they would or could do for themselves.. . .

In bestowing charity, the main consideration should be to help those who will help themselves; to provide part of the means by which those who desire to improve may do so; to give those who desire to use the aids by which they may rise; to assist, but rarely or never to do all. Neither the individual nor the race is improved by alms-giving. Those worthy of assistance, except in rare cases, seldom require assistance. The really valuable men of the race never do, except in cases of accident or sudden change. Everyone has, of course, cases of individuals brought to his own knowledge where temporary assistance can do genuine good, and these he will not overlook. But the amount which can be wisely given by the individual for individuals is necessarily limited by his lack of knowledge of the circumstances connected with each. He is the only true reformer who is as careful and as anxious not to aid the unworthy as he is to aid the worthy, and, perhaps, even more so, for in alms-giving more injury is probably done by rewarding vice than by relieving virtue. . .

Thus is the problem of Rich and Poor to be solved. The laws of accumulation will be left free ; the laws of distribution free. Individualism will continue, but the millionaire will be but a trustee for the poor; intrusted for a season with a great part of the increased wealth of the community, but administering it for the community far better than it could or would have done for itself. The best minds will thus have reached a stage in the development of the race iii which it is clearly seen that there is no mode of disposing of surplus wealth creditable to thoughtful and earnest men into whose hands it flows save by using it year by year for the general good. This day already dawns. But a little while, and although, without incurring the pity of their fellows, men may die sharers in great business enterprises from which their capital cannot be or has not been withdrawn, and is left chiefly at death for public uses, yet the man who dies leaving behind many millions of available wealth, which was his to administer during life, will pass away " unwept, unhonored, and unsung," no matter to what uses he leaves the dross which he cannot take with him. Of such as these the public verdict will then be : "The man who dies thus rich dies disgraced."

Such, in my opinion, is the true Gospel concerning Wealth, obedience to which is destined some day to solve the problem of the Rich and the Poor, and to bring ' Peace on earth, among men Good-Will."

OK.

2. Company manufactures and sells bikes. Each bike costs M R.O to make. The company's fixed costs are 500 R.O. In addition, the company owners know that the price of each bike comes from the price function p= 60 - 1/2 x

(Note: Mis the first two digit from your MEC ID after alphabetic (S or F), for example if the ID is 19F18140 take the two digit after F which are 18)

a. Find the Break-even point of the company
b. Find the numnber of bikes at maximum profit of the company
C. Find the maximum revenue the company earned

This is what was mentioned in the question

Indicate whether the following research sampling methods are convenience samples or random samples: I select 150 students from my local university for a study on stress among college students. I randomly assign 25 persons from my place of work to a control group and 25 to an experimental group for a study on workplace satisfaction. Using a random number generator, I select a minimum sample size study population of male U.S. citizens with a passport from a passport database obtained from the U.S. State Department. I survey all certified public high school teachers in the city of Chicago, Illinois. I administer a rapid HIV antibody test to the first 50 consenting adults older than age 18 who stop by my booth at the health fair.