You have been hired as a controller of Hughes Co., a small but growing business that manugactures high end electronics distributed through retail superstores. You plan to prepare the current-year budget based on the previous year's actual revenues and expenses. The company has never had a formal budget.

Write a memo to the CEO justifying the need to establish a formal budget. Discuss the advantages and disadvantagers of the budget process.

List the following information of Camping World Inc.

CEO:

President:

CFO:

Are any of the above names famous? If so who and what are they known? What were some reasons for the stock price to fluctuate besides the usual stock market conditions. List specific examples reasons that help the stock price rise (tailwinds) or caused the stock to drop (headwinds). In at least 300 words write your recommendations for this company.

4. Sky Metals, Inc. is a metal fabrication firm that manufactures prefabricated metal parts for customers in a variety of industries. The firm’s motto is “If you need it, we can make it.” The CEO of Sky Metals recently held a board meeting during which he extolled the virtues of the corporation. The company, he stated confidently, had the capability to build any product and could do so using a lean manufacturing model. The firm would soon be profitable, claimed the CEO, because the company used state-of-the-art technology to build a variety of products while keeping inventory levels low. As a business press reporter, you have calculated some ratios to analyze the financial health of the firm. Sky Metals' current ratios and quick ratios for the past 6 years are shown in the following table: 2010 2011 2012 2013 2014 2015 2015 Current ratio 1.2 1.4 1.3 1.6 1.8 2.2 2.2 Quick ratio 1.1 1.3 1.2 0.8 0.6 0.4 0.4 What do you think of the CEO’s claim that the firm is lean and soon to be profitable?

The following selected transactions relate to investment activities of Ornamental Insulation Corporation during 2021. The company buys debt securities, not intending to profit from short-term differences in price and not necessarily to hold debt securities to maturity, but to have them available for sale in years when circumstances warrant. Ornamental’s fiscal year ends on December 31. No investments were held by Ornamental on December 31, 2020.

• Record the acquisition of 7% Distribution Transformers Corporation bonds costing $520,000 at face value.
• Record the acquisition of $1,080,000 of American Instruments’ 9% bonds at face value.
• Record the entry for the semiannual interest received on the Distribution Transformers bonds.
• Record the entry to adjust to fair value on the date of sale of the Distribution Transformers bonds.
• Record the entry for the reclassification adjustment on the date of sale.
• Record the entry for sale of Distribution Transformers bonds for $557,000.
• Record the acquisition of $1,560,000 of M&D Corporation 5% bonds at face value.
• Record the interest accrual for American Instruments bonds.
• Record the interest accrual for M&D bonds.
• Record the entry to adjust fair value of the investments at year-end.

Briefly summarize a meaning of WACC for Truman’s CEO: what WACC measures, how it can be used for the purposes of capital budgeting and what are the possible issues that CEO needs to be aware of prior to implementing WACC into capital budgeting processes at Truman?

The Human Resources Department has been up and operating for 18 months now. The CEO has asked for a report on the efficiency and effectiveness of the department. Prepare an outline of the steps that you would take to measure the effectiveness and efficiency of the department for the CEO.  

Sunland Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 12 paid vacation days and 7 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows.

Sunland Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discounting. The company used the following projected rates to accrue vacation time.

New attempt is in progress. Some of the new entries may impact the last attempt grading.Your answer is partially correct.

Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,125.)Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020. (Round answers to 0 decimal places, e.g. 5,125.)

Steven Black and Christopher Green are seeking funds to support the programmed growth of their deluxe Hot Dog menu-restricted restaurant. First year (2019) Sales were $705,000. Sales are projected to increase to $1,320,000 in 2020. The business operating financial model indicates that each hot dog “meal” will sell for $3; and the variable cost of producing the “meal” (CGS) will be $1.50. The company needed $400,000 in assets to support its 2019 operations and expects to need $100,000 MORE (a total of $ 500,000) to support projected 2020 Sales.

      2019                      2020 (projected)

            Sales                                                   $ 705,000 _________

            COGS (Meals x CGS)                              352,500                    __________    

            Gross Profit                                             352,500 ________

            Fixed Operating Costs (ignore taxes)        200,000                    __________

            Net Profit                                           $152,500                     $ ______

Prepare (fill in) the 2020 projected Income Statement above.

Calculate the company’s Return on Assets (ROA), its asset intensity (asset turnover ratio), and its Gross Profit and Net Profit Ratios for each year

                                                                        2019                                           2020

Return on Assets __________ ____________

Asset Turnover ____________ ________________

Gross Profit Margin _______________ _________________________   

Net Profit Margin ______________ _____________________

Given the 2019 calculations above, and the 2020 projections, use the VOS screening model standards below for profitability and pricing to evaluate the attractiveness of an investment in Steven and Christopher’s business.

                                    High                            Average                                    Low

Gross Margin                >50%                           10%--50%                                 <20%

AT margin                     >20%                           10%--20%                                 <10%

Asset Intensity         3.0+ Turnover                    1.0—3.0 Turnover                    <1.0 Turnover

Return on Assets           >25%                           10%--25%                                 <10%

COMMENTS/EVALUATION (You should include comments about what the company could do to make the investment more attractive to investors)

Margins:

Use of Assets:

How would your EVALUATION change if the 2019 Asset level will support Annual Sales growth of 50% per year in 2020? (That means the company had excess capacity in 2019 and more assets would not be required to support shortterm projected growth.)

PLEASE HELP ME. THANK YOU.

NB:

1. Questions: 3.1 - 3.3 are related. Make use of the information provided in 3.1 to answer 3.2 & 3.3.

2. Questions: 4.1 - 4.4 are related. Make use of the information provided in 4.1 to answer 4.2, 4.3 & 4.4.

3. Questions: 5.1 - 5.3 are related. Make use of the information provided in 5.1 to answer 5.2 & 5.3.

3.1 An IQ test was given to five MBA students before and after they completed the MBA degree. Test whether there is any improvement (increase) in the IQ of the same students after completing MBA degree. Note: μ1 = population mean IQ before; μ2 = population mean IQ after. Hint: If the mean IQ has improved, then the mean IQ difference ∂ < 0; otherwise, the mean IQ difference ∂ > 0. Question: Formulate the Null and Alternative Hypothesis for this problem.

2 points

Students 1 2 3 4 5

IQ test scores before MBA 110 120 123 132 125

IQ test score After MBA 120 118 125 136 121

use above information

a) H0: IQ mean difference ∂≥0 vs H1: IQ mean difference ∂>0

b) H0: IQ mean difference ∂≤0 vs H1: IQ mean difference ∂>0

c) H0: IQ mean difference ∂=0 vs H1: IQ mean difference ∂≠0

d) H0: IQ mean difference ∂≥0 vs H1: IQ mean difference ∂<0

3.2 Make use of the information provided in the previous question calculate the t-statistic using T-test and tick the correct answer below.

10 points

a) t-statistic = -2.319

b) t-statistic = 0.1028

c) t-statistic = -1.028

d) t-statistic = -0.816

3.3 Based on your empirical evidence in the previous question make your statistical conclusion at the 5% level of significance whether there is any improvement in IQ of the same students after completing MBA degree. Tick the correct answer below.

5 points

a) None of these answers is correct.

b) Fail to reject the Null hypothesis, the Null is probably true that IQ remains the same has not improved after completing the MBA degree.

c) Reject the Null hypothesis. The alternative is probably true that IQ has improved after completing the MBA degree.

d) Accept the Null hypothesis because the t-statistic is very close to zero.

4.1 A company that manufacturers wooden products (e.g. garden furniture, ladders, benches) regularly maintains its lathe machines, which are used for cutting and shaping components. The manager would like to know whether the cost of machine maintenance is related to the age of the machines. For a random sample of 8 lathe machines in the company's factory, the annual maintenance cost (in N$100s) and age of each machine was recorded. Question: Identify the independent variable and the dependent variable. Tick the correct answer below.

2 points

Machine 1 2 3 4 5 6 7 8

Age 4 2 3 8 6 7 1 2

Annual Cost 45 20 39 66 58 50 14 18

Table 2. Maintenance costs analysis

a) Machine =Independent variable & Age =Dependent variable

b) Machine & Age =Independent variables, Annual Cost =Dependent variable

c) Annual cost=Dependent variable & Age =Independent variable

d) Age =Independent variable & Machine =Dependent variable

4.2 Use the information given in the previous question and using the method of least squares, which of the equation listed below represent the best fitting regression line between the age of lathe machines and their annual maintenance costs? Tick the correct answer below.

10 points

a) Machine & Age =7.1306 + 9.336Annual costs

b) Annual cost = 7.336 +6.1306Age

c) Annual cost = 9.336 + 7.1306Age

d) Age = 7.1306 + 9.431Annual cost

4.3 Calculate the sample correlation coefficient (r) between the annual maintenance cost and age of each machine. Question: Which of the options below is the correct answer?

5 points

a) r = -0.91

b) r = 0.89

c) r = 0.87

d) r = 0.94

4.4 Question: What is the expected average maintenance cost of a lathe machine that is five years old? Tick the correct answer below.

4 points

a) 45.04

b) 40.67

c) 42.77

d) 41.77

5.1 In May 2010, the Snap poll asked British adults their opinion on whether they are in favour of or opposed to using profiling to identify potential terrorists at airports, a practice used routinely in Israel, but not in the UK. Does opinion depend on age? Or are opinion and age independent? Table below show some numbers from Snap Poll. Question: Formulate the Null and Alternative Hypothesis for this problem.

2 points

Age 18-29 30-49 50-64 65+

Favour 57 66 77 87

Oppose 43 34 23 13

Table 3. Snap Poll Results

a) The null hypothesis is that Opinion and Age are the variables.

b) The null hypothesis is that Opinion and Age are associated vs. The alternative hypothesis is that Opinion and Age are not associated.

c) The null hypothesis is that Opinion and Age are independent vs. The alternative hypothesis is that Opinion and Age are dependent.

d) The alternative hypothesis is that Opinion and Age are independent vs. The null hypothesis is that Opinion and Age are dependent.

5.2 Does opinion depend on age? Or are opinion and age independent? Using the information in the previous question calculate the Chi-square-statistic using Chi-square-test. Tick the correct answer below.

10 points

a) Chi-squares-stat = 25.20

b) Chi-squares-stat = 14.76

c) Chi-squares-stat = 23.20

d) Chi-squares-stat = 21.19

5.3 Based on your empirical evidence in the previous question, and using a 5% level of significance, make your statistical conclusion about the association between opinion and age. Tick the correct answer below.

5 points

a) Reject the Null hypothesis and conclude that Age and Opinion about Profiling are not independent. The alternative is probably true.

b) Accept the alternative and conclude that Age and Opinion about Profiling are independent.

c) Fail to reject the Null hypothesis, the alternative is probably false.

d) None of these answers is correct.

1.Pharoah Company sells TVs. The perpetual inventory was stated as $37,200 on the books at December 31, 2020. At the close of the year, a new approach for compiling inventory was used and apparently a satisfactory cut-off for preparation of financial statements was not made. Some events that occurred are as follows.

1. TVs shipped to a customer January 2, 2021, costing $5,000 were included in inventory at December 31, 2020. The sale was recorded in 2021.

2. TVs costing $15,800 received December 30, 2020, were recorded as received on January 2, 2021.

3. TVs received during 2020 costing $4,900 were recorded twice in the inventory account.

4. TVs shipped to a customer December 28, 2020, f.o.b. shipping point, which cost $10,900, were not received by the customer until January, 2021. The TVs were included in the ending inventory.

5. TVs on hand that cost $6,300 were never recorded on the books.

Compute the correct inventory at December 31, 2020.