Consider the data set: 26, 29, 24, 17, 27, 20, 23, 21, 26, 27.

(a) Find the median and the upper and lower quartiles for this data set.

(b) Setup then evaluate the numerical expression for the mean of this data set. You must write it out completely. (

c) Setup and then evaluate the numerical expression for the variance of this data set. You must write it out completely.

(d) Find the standard deviation of this data set.

Suppose a random sample of 90 U.S. companies taken in 2005 showed that 38 offered high-deductible health insurance plans to their workers. A separate random sample of 110 firms taken in 2006 showed that 59 offered high-deductible health insurance plans to their workers. Based on the sample results, can you conclude that there is a higher proportion of U.S. companies offering high-deductible health insurance plans to their workers in 2006 than in 2005? Conduct your hypothesis test at a 0.01 significance level.

a. State the null and alternate hypotheses

b.What is the level of significance?

c. What is the value of the test statistic?

d. Compute the p-value

e. What is your decision regarding the null hypothesis? Interpret the result.

5. X Co. has the following items of possible tax significance in 2006. Determine its current earnings and profits for 2006.

• book pre-tax income of 1,000,000.
• book tax expense of 340,000.
• taxable income of 400,000.
• federal taxes of 125,000.
• interest from municipal bonds of 100,000.
• premiums for officer's term life insurance of 25,000 (X is the beneficiary).
• X was allowed depreciation of 40,000 on an apartment building acquired in 1998. The building's original cost was 1,000,000.
• X exchanged land used in its business for another parcel of land also to be used in X's business. The land had a FMV of 1,000,000 and a basis of 500,000.
• X was able to currently utilize a net operating loss carryover of 100,000.

Hardnosed Equipment purchased a patent on October 1, 2006, for $150,000 plus $10,000 in legal fees. At the time, Hardnosed Equipment planned to use the patent for 10 years and then sell it for $40,000.

At the end of 2008, Hardnosed Equipment estimated that the undiscounted net cash flows from the patent would be $110,000 and the discounted cash flow, $95,000. The fair value of the patent on December 31, 2008 was $96,000.

Required:

1. Compute the 2006 and 2007 amortization for the patent using the straight-line method.

2. Determine if the patent is impaired on December 31, 2008 and, if impaired, the size of the loss. Explain the test for impairment.

3. How would your answer to Required 2 differ if the patent had not been amortized by Hardnosed Equipment.

8.

In 1996, Marriott International made an issue of unusual bonds called liquid yield option notes, or LYONS. The bond matured in 2011, had a zero coupon, and was issued at $539.15. It could have been converted into 8.83 shares. Beginning in 1999 the bonds could have been called by Marriott. The call price was $610.71 in 1999 and increased by 5.0% a year thereafter. Holders had an option to put the bond back to Marriott in 1999 at $610.71 and in 2006 at $859.07. At the time of issue the price of the common stock was about $50.85. Assume annual compounding and a face value of $1,000.

a. What was the yield to maturity on the bond? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Yield to maturity _________ %

b. Assuming that comparable nonconvertible bonds yielded 10.7%, how much were investors paying for the conversion option? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Conversion option value ___________ $

c. What was the conversion value of the bonds at the time of issue? (Round your answer to 2 decimal places.)

Conversion value    _____________ $

d. What was the initial conversion price of the bonds? (Round your answer to 2 decimal places.)

Conversion price _____________ $

e. What was the conversion price in 2005? (Round your answer to 2 decimal places.)

Conversion price _______________ $

f. If the price of the bond in 2006 was less than $859.07, would you have put the bond back to Marriott?

g-1. At what price could Marriott have called the bonds in 2006? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Call price ___________ $

g-2. If the price of the bond in 2006 was more than the call price in part (g-1), should Marriott have called the bonds?

To test whether the mean time needed to mix a batch of material is the same for machines produced by three manufacturers, the Jacobs Chemical Company obtained the following data on the time (in minutes) needed to mix the material.

1. Use these data to test whether the population mean times for mixing a batch of material differ for the three manufacturers. Use = .05.
   
   Compute the values below (to 2 decimals, if necessary).

   Sum of Squares, Treatment
   Sum of Squares, Error
   Mean Squares, Treatment
   Mean Squares, Error

   
   
   Calculate the value of the test statistic (to 2 decimals).
   
   
   
   The p-value is Selectless than .01between .01 and .025between .025 and .05between .05 and .10greater than .10
   
   What is your conclusion?
   
   SelectConclude the mean time needed to mix a batch of material is not the same for all manufacturersDo not reject the assumption that mean time needed to mix a batch of material is the same for all manufacturers
   
2. At the = .05 level of significance, use Fisher's LSD procedure to test for the equality of the means for manufacturers 1 and 3.
   
   Calculate Fisher's LSD Value (to 2 decimals).
   
   
   
   What is your conclusion about the mean time for manufacturer 1 and the mean time for manufacturer 3?
   
   SelectCannot conclude there is a difference in the mean time for these manufacturersThese manufacturers have different mean times

Some hotels make money with dynamic pricing daily. Please list and describe three strategies for increasing room revenue.

FINANCIAL REPORTING & ANALYSIS - chapter 3- Question E3-1

The time frame in each of these scenarios is after the effective date of the new revenue recognition

rules in ASC Topic 606.

Required:

For each of the following independent situations, determine the point at which a contract

exists and is subject to application of the 5-step revenue recognition model by Amiel

Corporation.

1. A regular customer of Amiel’s always places an order on the last day of the month,

but did not do so in December. Amiel is certain it is because the customer’s

purchasing

manager was ill and that the order will be received when she returns. In

fact, the order is received by fax in early January, with an apology from the customer’s

purchasing

manager and a note requesting that Amiel “expedite shipment of this

December order.”

2. One of Amiel’s customers calls and gives Amiel a list of goods it intends to buy, but with

the caveat that the order is subject to the approval of the purchasing manager, who will

not be in for several days. In fact, the order is received by fax several days later when the

purchasing manager returns.

3. One of Amiel’s customers calls and gives Amiel an order. Amiel typically receives orders

by fax and asks the customer to confirm the order by fax, which it does several days later.

4. Amiel and one of its customers agree that Amiel will sell it certain goods, but that the

price will depend on the price of oil two weeks later. Amiel and the customer have agreed

on a formula that will determine the price of the goods based on the price of oil. Amiel

makes this arrangement because oil is a key component of the goods Amiel sells

Existence of a contract (LO 3-2)

The time frame in each of these scenarios is after the effective date of the new revenue recognition rules in ASC Topic 606.

Required:

For each of the following independent situations, determine the point at which a contract exists and is subject to application of the 5-step revenue recognition model by Amiel Corporation.

1. A regular customer of Amiel’s always places an order on the last day of the month, but did not do so in December. Amiel is certain it is because the customer’s purchasing manager was ill and that the order will be received when she returns. In fact, the order is received by fax in early January, with an apology from the customer’s purchasing manager and a note requesting that Amiel “expedite shipment of this December order.”
2. One of Amiel’s customers calls and gives Amiel a list of goods it intends to buy, but with the caveat that the order is subject to the approval of the purchasing manager, who will not be in for several days. In fact, the order is received by fax several days later when the purchasing manager returns.
3. One of Amiel’s customers calls and gives Amiel an order. Amiel typically receives orders by fax and asks the customer to confirm the order by fax, which it does several days later.
4. Amiel and one of its customers agree that Amiel will sell it certain goods, but that the price will depend on the price of oil two weeks later. Amiel and the customer have agreed on a formula that will determine the price of the goods based on the price of oil. Amiel makes this arrangement because oil is a key component of the goods Amiel sells.

Golfy Golf Inc. was opened on April 1 by Wee Snaw. These selected events and transactions occurred during April.

Question: Journalize the April transactions. Golfy Golf’s records golf fees as service revenue.

If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.

Record journal entries in the order presented in the problem