Milo Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation:

1. The Marketing Department has estimated sales as follows for the remainder of the year (in units):

The selling price of the beach umbrellas is $11 per unit.

2. All sales are on account. Based on past experience, sales are collected in the following pattern:

Sales for June totaled $231,000.

3. The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June.
4. Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month’s production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be:

5. Gilden costs $0.60 per foot. One-half of a month’s purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $35,790.

Required:

1-a. Prepare a sales budget, by month and in total, for the third quarter.

1-b. Prepare a schedule of expected cash collections, by month and in total, for the third quarter.

2. Prepare a production budget for each of the months July–October.

3-a. Prepare a direct materials budget for Gilden, by month and in total, for the third quarter. (Round your Unit cost of raw materials to 2 decimal places.)

3-b. Prepare a schedule of expected cash disbursements for Gilden, by month and in total, for the third quarter.

ABC Company manufactures beach umbrellas. The company is preparing detailed budgets for the third quarter and has assembled the following information to assist in the budget preparation:

The Marketing Department has estimated sales as follows for the remainder of the year (in units):

The selling price of the beach umbrellas is $13 per unit.

All sales are on account. Based on past experience, sales are collected in the following pattern:

Sales for June totaled $377,000.

The company maintains finished goods inventories equal to 15% of the following month’s sales. This requirement will be met at the end of June.

Each beach umbrella requires 4 feet of Gilden, a material that is sometimes hard to acquire. Therefore, the company requires that the ending inventory of Gilden be equal to 50% of the following month’s production needs. The inventory of Gilden on hand at the beginning and end of the quarter will be:

Gilden costs $0.60 per foot. One-half of a month’s purchases of Gilden is paid for in the month of purchase; the remainder is paid for in the following month. The accounts payable on July 1 for purchases of Gilden during June will be $42,990.

Required:

1. Calculate the expected cash collections, by month and in total, for the third quarter.

2. Calculate the estimated quantity of beach umbrellas that need to be produced in July, August, September, and October.

3. Calculate the quantity of Gilden (in feet) that needs to be purchased by month and in total, for the third quarter.

4. Calculate the cost of the raw material (Gilden) purchases by month and in total, for the third quarter.

5. Calculate the expected cash disbursements for raw material (Gilden) purchases, by month and in total, for the third quarter.

1. Use this scenario to answer questions 41-42.

   A fisherman wants to compare how many fish he catches on Lake Cumberland from a boat to on shore. The data follow with the unit of measure bing fish caught per hour.

   Sample 1 (Boat)		Sample 2 (Shore)
   3.8		1.2
   3.2		1.4
   3.6		3.2
   2.2		2.2
   4.2		1.8
   		1.6

   Construct a 99% confidence interval for . Assume .

   		(-2.958, -0.042)
   		(-0.042, 2.958)
   		(-2.958, 0.042)
   		(0.042, 2.958)

4 points   

QUESTION 42

1. Interpret the confidence Interval.

   		We are 99% confident that fishing from a boat is better than fishing from the shore by between 0.042 and 2.958 fish per hour.
   		We are 99% confident that fishing from shore is better than fishing from a boat by between 0.042 and 2.958 fish per hour.
   		It is unclear if fishing from a boat or from shore results in catching more fish. We are 99% confident that if fishing in a boat is best it is by at most 0.042 fish per hour and if fishing on shore is best it is by at most 2.958 fish per hour.
   		It is unclear if fishing from a boat or from shore results in catching more fish. We are 99% confident that if fishing in a boat is best it is by at most 2.958 fish per hour and if fishing on shore is best it is by at most 0.042 fish per hour.

In a study of high-achieving high school graduates, the authors of a report surveyed 837 high school graduates who were considered "academic superstars" and 436 graduates who were considered "solid performers." One question on the survey asked the distance from their home to the college they attended.

Assuming it is reasonable to regard these two samples as random samples of academic superstars and solid performers nationwide, use the accompanying data to determine if it is reasonable to conclude that the distribution of responses over the distance from home categories is not the same for academic superstars and solid performers. Use

α = 0.05.

State the null and alternative hypotheses.

a). H₀: The proportions falling into the distance categories are not all the same for the two student groups.
H_a: The proportions falling into the distance categories are the same for the two student groups.

b). H₀: Student group and distance of college from home are not independent.
H_a: Student group and distance of college from home are independent.  

c). H₀: The proportions falling into the distance categories are the same for the two student groups.
H_a: The proportions falling into the distance categories are not all the same for the two student groups.

d). H₀: Student group and distance of college from home are independent.
H_a: Student group and distance of college from home are not independent.

Calculate the test statistic. (Round your answer to two decimal places.)
χ² =  

What is the P-value for the test? (Round your answer to four decimal places.)
P-value =  

What can you conclude?

Do not reject H₀. There is not enough evidence to conclude that there is an association between student group and distance of college from home.

Reject H₀. There is convincing evidence to conclude that the proportions falling into the distance categories are not all the same for the two student groups.   

Do not reject H₀. There is not enough evidence to conclude that the proportions falling into the distance categories are not all the same for the two student groups.

Reject H₀. There is convincing evidence to conclude that there is an association between student group and distance of college from home.

The authors of a paper studied a random sample of 351 Twitter users. For each Twitter user in the sample, the tweets sent during a particular time period were analyzed and the Twitter user was classified into one of the following categories based on the type of messages they usually sent.

The accompanying table gives the observed counts for the five categories (approximate values read from a graph in the paper).

Carry out a hypothesis test to determine if there is convincing evidence that the proportions of Twitter users falling into each of the five categories are not all the same. Use a significance level of

α = 0.05.

(Hint: See Example 14.3.)

Let p₁, p₂, p₃, p₄, and p₅ be the proportions of Twitter users falling into the five categories.

State the appropriate null and alternative hypotheses.

H₀: p₁ = p₂ = p₃ = p₄ = p₅ = 0.5
H_a: H₀ is not true. H₀: p₁ = p₂ = p₃ = p₄ = p₅ = 351
H_a: H₀ is not true.     H₀: p₁ = p₂ = p₃ = p₄ = p₅ = 0.2
H_a: H₀ is not true. H₀: p₁ = p₂ = p₃ = p₄ = p₅ = 70
H_a: H₀ is not true. H₀: p₁ = p₂ = p₃ = p₄ = p₅ = 0.05
H_a: H₀ is not true.

Find the test statistic and P-value. (Use technology. Round your test statistic to three decimal places and your P-value to four decimal places.)

X² = P-value =

State the conclusion in the problem context.

Do not reject H₀. There is not convincing evidence to conclude that the proportions of Twitter users falling into the five categories are not all the same. Reject H₀. There is not convincing evidence to conclude that the proportions of Twitter users falling into the five categories are not all the same.     Reject H₀. There is convincing evidence to conclude that the proportions of Twitter users falling into the five categories are not all the same. Do not reject H₀. There is convincing evidence to conclude that the proportions of Twitter users falling into the five categories are not all the same.

In a study of high-achieving high school graduates, the authors of a report surveyed 834 high school graduates who were considered "academic superstars" and 436 graduates who were considered "solid performers." One question on the survey asked the distance from their home to the college they attended.

Assuming it is reasonable to regard these two samples as random samples of academic superstars and solid performers nationwide, use the accompanying data to determine if it is reasonable to conclude that the distribution of responses over the distance from home categories is not the same for academic superstars and solid performers. Use

α = 0.05.

State the null and alternative hypotheses.

H₀: Student group and distance of college from home are independent.
H_a: Student group and distance of college from home are not independent. H₀: Student group and distance of college from home are not independent.
H_a: Student group and distance of college from home are independent.     H₀: The proportions falling into the distance categories are not all the same for the two student groups.
H_a: The proportions falling into the distance categories are the same for the two student groups. H₀: The proportions falling into the distance categories are the same for the two student groups.
H_a: The proportions falling into the distance categories are not all the same for the two student groups.

Calculate the test statistic. (Round your answer to two decimal places.)
χ² =

What is the P-value for the test? (Round your answer to four decimal places.)
P-value =

What can you conclude?

Do not reject H₀. There is not enough evidence to conclude that the proportions falling into the distance categories are not all the same for the two student groups. Reject H₀. There is convincing evidence to conclude that the proportions falling into the distance categories are not all the same for the two student groups.     Reject H₀. There is convincing evidence to conclude that there is an association between student group and distance of college from home. Do not reject H₀. There is not enough evidence to conclude that there is an association between student group and distance of college from home.