Select three US companies that are publicly traded using your knowledge and experience and make sure you are practicing good diversification. Jim Cramer, Money Manager, on CNBC, plays a game at the end of his show called "Am I Diversified." Check out the short clip, Am I Diversified - Mad Money [Video], to get a sense of industry diversification.

Ideas for Sources of Information: There are many ways to find such companies and the stock prices, including the New York Stock Exchange, Google Finance, NASDAQ, andYahoo! Finance.

Describe how you will divide $25,000 across the three companies (e.g. $10,000 in Company 1, $10,000 in Company 2, and $5,000 in Company 3).

You decide the amount you are investing in each company. You do not have to provide any analysis to justify your decisions.

Provide a reason for picking each company.

For example, you might invest in Ford because that company gets a lot of your money and you hear that Ford is doing well, and will continue to do well.

Identify the number of shares you are buying, and the price of the shares you are buying for each company.

Once you decide the companies and the amount for each company, determine how many shares you can buy. For example, if Company 1 is selling for $42.16, then you may buy $10,000/$42.16, or 237.19 shares. But you cannot buy a part of a share, so you decide to buy either 237 or 238. In this example, you buy 237 shares at $42.16 per share, investing $9,991.92. You won’t be able to buy exactly $10,000, or $5,000, or $25,000, but it will be relatively close.

QUESTION 1

1. Which of the following is not a transaction category?

4 points   

QUESTION 2

1. Which report summarizes what a company has earned and the expenses incurred to earn the income?

QUESTION 3

1. What is the primary objective of accounting?

24 points   

QUESTION 5

1. What does the Sales Tax Center enable you to do?

4 points   

QUESTION 6

1. Which screen provides information about vendor transactions?

4 points   

QUESTION 7

1. How are these accounts added to the Chart of Accounts (COA)?

4 points   

QUESTION 8

1. Financial statements include:

4 points   

QUESTION 9

1. Which report summarizes what a company owes and owns on a particular date?

4 points   

QUESTION 10

1. On the Dashboard, what does the Profit and Loss graph display?

4 points   

QUESTION 11

1. Which option appears on the Create (+) screen?

4 points   

QUESTION 12

1. Which of the following statements is true regarding QuickBooks Online?

4 points   

QUESTION 13

1. What does the My Accountant enable you to do?

4 points   

QUESTION 14

1. Which tab displays credit card balances?

4 points   

QUESTION 15

1. Which screen provides information about customer transactions?

4 points   

QUESTION 16

1. The Banking screen provides the following information except:

4 points   

QUESTION 17

1. What is the purpose of using subaccounts?

4 points   

QUESTION 18

1. Accounts Receivable is:

4 points   

QUESTION 19

1. Usually account numbers are

4 points   

QUESTION 20

1. On the Dashboard, what does the Invoices graph display?

A retail corporation wants to know how often a customer returns items in a year. The company’s data analytics team analyzed customers’ shopping behavior and came up with three categories of customers. Customers in category 1 do not return items often. Customers in category 2 return some items, and customers in category 3 heavily return items. Suppose that the data analytics team modeled the number of returns in each category of customers according to a Poisson process with rates λ1 = 1 per year, λ2 = 4 per year, and λ3 = 10 per year for categories 1, 2, and 3, respectively. Category 1 customers constitute 30% of the customer base of this retail corporation, whereas Category 2 and 3 customers constitute 60% and 10% of the customer base, respectively.

(a) What is probability that the company gets 10 returned items from a customer during 2019 and 2020 (this time period includes both years 2019 and 2020)? Do NOT calculate a number. Just write an expression for this probability.

(b) Compute the mean and variance of the number of returned items for a customer during 2019 and 2020.

(c) Now consider a category 2 customer. Compute the mean and variance of the number of returned items for this customer (=a category 2 customer) during 2019 and 2020.

(d) Given that a customer returns 10 items in his or her first 2 years, what is the probability this is a category 2 customer? Do NOT calculate a number. Just write an expression for this probability.

The average final exam score for the statistics course is 74%. A professor wants to see if the average final exam score for students who are given colored pens on the first day of class is lower. The final exam scores for the 12 randomly selected students who were given the colored pens are shown below. Assume that the distribution of the population is normal.

79, 60, 52, 72, 67, 47, 54, 79, 61, 80, 80, 47

What can be concluded at the the αα = 0.10 level of significance level of significance?

For this study, we should use Select an answer t-test for a population mean z-test for a population proportion

The null and alternative hypotheses would be:

H0:H0:  ? p μ  Select an answer ≠ > = <       

H1:H1:  ? μ p  Select an answer ≠ > = <    

The test statistic ? t z  =  (please show your answer to 3 decimal places.)

The p-value =  (Please show your answer to 4 decimal places.)

The p-value is ? > ≤  αα

Based on this, we should Select an answer accept reject fail to reject  the null hypothesis.

Thus, the final conclusion is that ...

The data suggest that the population mean final exam score for students who are given colored pens at the beginning of class is not significantly lower than 74 at αα = 0.10, so there is statistically insignificant evidence to conclude that the population mean final exam score for students who are given colored pens at the beginning of class is lower than 74.

The data suggest the population mean is not significantly lower than 74 at αα = 0.10, so there is statistically insignificant evidence to conclude that the population mean final exam score for students who are given colored pens at the beginning of class is equal to 74.

The data suggest the populaton mean is significantly lower than 74 at αα = 0.10, so there is statistically significant evidence to conclude that the population mean final exam score for students who are given colored pens at the beginning of class is lower than 74.

Larissa has been talking with the company’s directors about the future of East Coast Yachts. To this point, the company has used outside suppliers for various key components of the company’s yachts, including engines. Larissa has decided that East Coast Yachts should consider the purchase of an engine manufacturer to allow East Coast Yachts to better integrate its supply chain and get more control over engine features. After investigating several possible companies, Larissa feels that the purchase of Ragan Engines, Inc., is a possibility. She has asked Dan Ervin to analyze Ragan’s value.

Ragan Engines, Inc., was founded nine years ago by a brother and sister—Carrington and Genevieve Ragan—and has remained a privately owned company. The company manufactures marine engines for a variety of applications. Ragan has experienced rapid growth because of a proprietary technology that increases the fuel efficiency of its engines with very little sacrifice in performance. The company is equally owned by Carrington and Genevieve. The original agreement between the siblings gave each 150,000 shares of stock.

Larissa has asked Dan to determine a value per share of Ragan stock. To accomplish this, Dan has gathered the following information about some of Ragan’s competitors that are publicly traded:

Nautilus Marine Engines’s negative earnings per share (EPS) were the result of an accounting write-off last year. Without the write-off, EPS for the company would have been $2.07. Last year, Ragan had an EPS of $5.35 and paid a dividend to Carrington and Genevieve of $320,000 each. The company also had a return on equity of 21 percent. Larissa tells Dan that a required return for Ragan of 18 percent is appropriate.

Please show calculations

Q1. Assuming the company continues its current growth rate, what is the value per share of the company’s stock?

Q2. Dan has examined the company’s financial statements, as well as examining those of its competitors. Although Ragan currently has a technological advantage, Dan’s research indicates that Ragan’s competitors are investigating other methods to improve efficiency. Given this, Dan believes that Ragan’s technological advantage will last only for the next five years. After that period, the company’s growth will likely slow to the industry average. Additionally, Dan believes that the required return the company uses is too high. He believes the industry average required return is more appropriate. Under Dan’s assumptions, what is the estimated stock price?

Q3. What is the industry average price? earnings ratio? What is Ragan’s price? earnings ratio? Comment on any differences and explain why they may exist.

Q4. Assume the company’s growth rate declines to the industry average in five years. What percentage of the stock’s value is attributed to growth opportunities?

Q5. Assume the company’s growth rate slows to the industry average in five years. What future return on equity does this imply?

Q5. Carrington and Genevieve are not sure if they should sell the company. If they do not sell the company outright to East Coast Yachts, they would like to try and increase the value of the company’s stock. In this case, they want to retain control of the company and do not want to sell stock to outside investors. They also feel that the company’s debt is at a manageable level and do not want to borrow more money. What steps can they take to try and increase the price of the stock? Are there any conditions under which this strategy would not increase the stock price?

Swathmore Clothing Corporation grants its customers 30 days’ credit. The company uses the allowance method for its uncollectible accounts receivable. During the year, a monthly bad debt accrual is made by multiplying 3% times the amount of credit sales for the month. At the fiscal year-end of December 31, an aging of accounts receivable schedule is prepared and the allowance for uncollectible accounts is adjusted accordingly.

At the end of 2017, accounts receivable were $590,000 and the allowance account had a credit balance of $54,000. Accounts receivable activity for 2018 was as follows:

The company’s controller prepared the following aging summary of year-end accounts receivable:

Required:
1. Prepare a summary journal entry to record the monthly bad debt accrual and the write-offs during the year.
2. Prepare the necessary year-end adjusting entry for bad debt expense.
3-a. What is total bad debt expense for 2018?
3-b. How would accounts receivable appear in the 2018 balance sheet?

Oct 1 Tom invested cash in the business, $40,000 2 Prepaid 6 months rent in advance, $4,800 3 Purchased Stage Equipment for $3,000. Paid $1,500 immediately but put the rest on account. 5 Purchased supplies for cash, $1,500 7 Purchased a one year insurance policy for $1,200 31 Paid the part-time worker, $450 Nov 2 Tom withdrew $180 so he could relax at the health spa 3 Tuition revenue for the month was, $3,500. Received $1,000 immediately from students the rest is due in 20 days. 8 Paid the telephone bill, $95 11 Paid the electric bill, $320 21 Received payment for tuition from students billed on November 3 23 Received the newspaper advertising bill, $160, it is due in 30 days. 27 Paid the part-time worker, $450 Dec 3 Tuition revenue for the month was, $5,500. Received $2,500 immediately from students, the rest is due in 20 days. 21 Paid the advertising bill which was received last month, $160 22 Received payment for tuition from students billed on December 3 24 Paid an additional $500 on the stage equipment purchased earlier in the year. 29 Purchased additional supplies on account, $300

The following data represents the number of children born in individual pregnancies in 1996 and 2006:

9. Using the following information for a U.S. state:

           Nominal GDP                    Real GDP                              Population                            Year

           (millions)                            (millions 2009 $’s)                               

                    1,151,119                          1,421,713                              32,987,911                           1998       

                    1,879,520                          1,975,457                              36,020,878                           2006

                    2,350,807                          2,143,167                              38,792,459                           2014

What is the average annual growth rate for this state during the time periods listed? (GDP per capita)

       (Note: time periods of interest are 1998-2006 & 2006-2014)

What is the average annual inflation rate for this state during the time periods listed?

To what extent are living standards likely changing in this economy? Explain and support your

       claim using evidence from the above table.

                       d.    For 1 bonus point, indicate the U.S. state associated with the above data.

B. Summarize the main arguments in O’Brian (1982) and Acemoglu (2006) papers by focusing on the following points:

C. What do the “dependency school” scholars claim about the development of the North and South as to the sources of industrialization and capital accumulation?

D. How does O’ Brian (1982) try to refute the arguments of the dependency school? What is the main source of economic growth in Western Europe according to him? Is Atlantic trade important for economic growth in Western Europe for him? Why or why not?

E. Do you think that the econometric findings of Acemoglu et al (2006) support O’Brian’s conclusions? How do Acemoglu et al (2006) view the importance of Atlantic Trade as far as economic growth in Western Europe is concerned? Discuss.