In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer.

In environmental studies, sex ratios are of great importance. Wolf society, packs, and ecology have been studied extensively at different locations in the U.S. and foreign countries. Sex ratios for eight study sites in northern Europe are shown below.

It is hypothesized that in winter, "loner" males (not present in summer packs) join the pack to increase survival rate. Use a 5% level of significance to test the claim that the average percentage of males in a wolf pack is higher in winter. (Let d = winter − summer.)

(a) What is the level of significance?


State the null and alternate hypotheses. Will you use a left-tailed, right-tailed, or two-tailed test?

H₀: μ_d = 0; H₁: μ_d > 0; right-tailed H₀: μ_d = 0; H₁: μ_d ≠ 0; two-tailed     H₀: μ_d > 0; H₁: μ_d = 0; right-tailed H₀: μ_d = 0; H₁: μ_d < 0; left-tailed

(b) What sampling distribution will you use? What assumptions are you making?

The Student's t. We assume that d has an approximately normal distribution. The standard normal. We assume that d has an approximately uniform distribution.     The Student's t. We assume that d has an approximately uniform distribution. The standard normal. We assume that d has an approximately normal distribution.

What is the value of the sample test statistic? (Round your answer to three decimal places.)


(c) Find (or estimate) the P-value.

P-value > 0.250 0.125 < P-value < 0.250     0.050 < P-value < 0.125 0.025 < P-value < 0.050 0.005 < P-value < 0.025 P-value < 0.005

ASK YOUR TEACHER

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer.

In environmental studies, sex ratios are of great importance. Wolf society, packs, and ecology have been studied extensively at different locations in the U.S. and foreign countries. Sex ratios for eight study sites in northern Europe are shown below.

It is hypothesized that in winter, "loner" males (not present in summer packs) join the pack to increase survival rate. Use a 5% level of significance to test the claim that the average percentage of males in a wolf pack is higher in winter. (Let d = winter − summer.)
What is the value of the sample test statistic? (Round your answer to three decimal places.)

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer.

In the following data pairs, A represents birth rate and B represents death rate per 1000 resident population. The data are paired by counties in the Midwest. A random sample of 16 counties gave the following information.

Do the data indicate a difference (either way) between population average birth rate and death rate in this region? Use α = 0.01. (Let d = A − B.)

What is the value of the sample test statistic? (Round your answer to three decimal places.)

You are the CEO of a Fortune 500 company. CNN informs you that in one hour, a videotape will be broadcast in which several of your company’s vice presidents will be heard making offensive comments about other employees, the company in general, and your leadership abilities. What do you do?

1. State the Null Hypothesis
2. State the Alternative Hypothesis
3. Find the test statistic
4. Find the critical value or values
5. State the conclusions to the hypothesis test.

Please find all of the above for the scenarios below

Part I. A university is looking into its mathematics placement procedure. The university assumes its population mean math SAT score of all incoming freshmen is 600. Suppose that a simple random sample of 33 freshmen at that university reveals a mean math SAT score of 614 with a standard deviation of 47. Test the claim, at the 0.05 alpha level, that the mean math SAT score of freshmen at this university is more than 600

Part II. Question 2: This same university is looking into its English placement as well. The university assumes its population mean Verbal SAT score for all incoming freshmen is 570. Suppose that a simple random sample of 51 freshmen at that university reveals a mean verbal SAT score of 520 with a standard deviation of 35. Test the claim, at the 0.05 alpha level, that the mean Verbal SAT score of freshmen at this university is different from 570.

On 1 July 2017, Ukulele Ltd acquired 40% of the shares of Bongo Ltd for $99,500. At this date, all the identifiable assets and liabilities of Bongo Ltd were recorded at amounts equal to fair value except for inventory which had a fair value $9,900 greater than the carrying amount. All inventory was sold by 30 June 2018. The tax rate is 30%. Bongo Ltd was classified as an associate of Ukulele Ltd.

The profits and losses recorded by Bongo Ltd from the next 6 years were as follows:

Required
Prepare the journal entries for the consolidation worksheet of Ukulele Ltd for the equity accounting of Bongo Ltd in each of the years from 2017–23. Do we deduct tax rate before sharing of profit and losses?

Ans:

How would the statement of cash flow be different if a private university were a public college or university? Why would these differences be necessary?

The university reports a certain amount of unrestricted net assets each year. Suppose a student complained in a letter to the university president that the institution is holding back resources that should properly be used to increase faculty salaries; acquire computers and other equipment; and improve classroom facilities. What would your response be, as an accountant?

Suppose that a private university elected to report as a special-purpose government engaged in governmental and business-type activities. How would the financial statements differ from those presented? What are the pros and cons associated with reporting under each approach?

How would the statement of cash flow be different if a private university were a public college or university? Why would these differences be necessary?

The university reports a certain amount of unrestricted net assets each year. Suppose a student complained in a letter to the university president that the institution is holding back resources that should properly be used to increase faculty salaries; acquire computers and other equipment; and improve classroom facilities. What would your response be, as an accountant?

Suppose that a private university elected to report as a special-purpose government engaged in governmental and business-type activities. How would the financial statements differ from those presented? What are the pros and cons associated with reporting under each approach?

Enron Corporation was an American energy, commodities, and Services Company based in Houston, Texas. It was founded in 1985, Kenneth Lay was the founder of the company, first founded in Omaha Nebraska and then it moved to Houston Texas .Before its bankruptcy on December 2, 2001, Enron employed approximately 20,000 staff and was one of the world's major electricity, natural gas, communications and pulp and paper companies, with claimed revenues of nearly $101 billion during 2000.

Enron’s line of business:

Enron was originally involved in transmitting and distributing electricity and natural gas throughout the United States. The company developed, built and operated power plants and pipeline. Enron owned large network of natural gas pipeline, which stretched ocean to ocean and border to border. Enron traded in more than 30 different products, including the following: Petrochemicals, Plastics, Power, Pulp and paper, Steel, Weather Risk Management, Oil and LNG transportation, Broadband, Principal Investments, Risk management for commodities, Shipping / freight, Water and wastewater. It was also an extensive futures trader, including sugar, coffee, grains, hogs, and other meat futures.

Review of Enron’s Rise and fall:

Throughout the late 1990s, Enron was considered one of the most innovative companies in the world. The company continued to build power plants and operate gas lines, but it became better known for its unique trading businesses. Besides buying and selling gas and electricity. it created whole new markets for such oddball "commodities" as broadcast time for advertisers, weather futures, and Internet bandwidth. Before it bankrupted in late 2001, its annual revenues rose from about $9 billion in 1995 to over $100 billion in 2000.

At the end of 2001 it was revealed that its reported financial condition was sustained substantially by institutionalized, systematic, and creatively planned accounting fraud. The Enron scandal was the biggest bankruptcy in United States history which cost 4,000 employees their jobs. On December 2, 2001 Enron filed for bankruptcy. It was an event that will always be remembered as one of the most disastrous events in the financial world.

The reasons for collapse of Enron company:

There are some reasons that lead to the collapse of Enron:

•Cheating and manipulation by the board of directors to achieve their personal interests at the expense of the interest of the company.

•That the board of director has delegated the task of reviewing the company’s transactions to a sub-committee within the company. The committee has only conducted a quick review of these transactions. The board of directors has concealed very important information whose knowledge may have led to some appropriate action.

•The company’s management inflated the company’s profit to about $ 1 billion by raising the profit by 586 million and hiding debit of $ 2.6 billion in the year before the company’s collapse.

•The loss of the members of the audit committee is independent and neutral because of the enormous they charge from the administration and may reach up to $380000 per year per member.

With the fall of Enron, the financial auditor ARTHER ANDERSON fell for his role in this process, culminating in the company’s disposal of most of the city document. But Enron’s scandal has prompted the US government to amend a number of market laws, most notably issuing legislation allowing employee to sell their shares three years after they own them, and more importantly, the Sarbanes-Oxley act, which explicitly tightens penalties for such crimes. The CEO and CFO are fully responsible for any manipulation of the financial statement. In September 2008, Enron shareholders won the lawsuit against the company and received $7.2 billion damages, the biggest settlement in the history of fraud involving listed company.

Questions:

a.Explain how the dramatic collapse of Enron has severely shaken the U.S. Capital markets in

2001.                                                                                                                                                

b.Suggest the measures that could be taken to restore the credibility of the accounting profession and investor confidence in the financial reporting process.                

Question 2

Describe the Financial Reporting practices followed in Oman quoting some practical instances. Also highlight the principles that govern the financial practices in Oman and the Organizations that form regulatory frame work in Oman.                                              

Icebreaker Company (a U.S.-based company) sells parts to a foreign customer on December 1, 2020, with payment of 34,000 dinars to be received on March 1, 2021. Icebreaker enters into a forward contract on December 1, 2020, to sell 34,000 dinars on March 1, 2021. The forward points on the forward contract are excluded in assessing hedge effectiveness and are amortized to net income using a straight-line method on a monthly basis. Relevant exchange rates for the dinar on various dates are as follows:

Icebreaker must close its books and prepare financial statements at December 31.

Company purchases materials from a foreign supplier on December 1, 2020, with payment of 34,000 dinars to be made on March 1, 2021. The materials are consumed immediately and recognized as cost of goods sold at the date of purchase. On December 1, 2020, Brandlin enters into a forward contract to purchase 34,000 dinars on March 1, 2021.

1. a-1. Assuming that Icebreaker designates the forward contract as a cash flow hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars.

2. a-2. What is the impact on 2020 net income?

3. a-3. What is the impact on 2021 net income?

4. a-4. What is the impact on net income over the two accounting periods?

5. b-1. Assuming that Icebreaker designates the forward contract as a fair value hedge of a foreign currency payable, prepare journal entries for the import purchase and foreign currency forward contract in U.S. dollars.

6. b-2. What is the impact on net income in 2020 and in 2021?

7. b-3. What is the impact on net income over the two accounting periods?