Unoccupied seats on flights cause airlines to lose revenue. Suppose a large airline wants to estimate its average number of unoccupied seats per flight over the past year. Two hundred and twenty-five flight records are randomly selected and the number of unoccupied seats is noted, with a sample mean of 11.6 seats and a population standard deviation of 4.1 seats. How many flights should we select if we wish to estimate μ to within 5 seats and be 95 percent confident?

A. 44

B. 3

C. 2

D. 110

E. 6

LO6

Respond to the requirements related to following independent revenue arrangements:

1) On June 1, Freedom shipped 100 TVs to Universal TV (Universal) on consignment. Freedom buys these TVs from their supplier for $600 each. Universal then retails them for $1,000 each, retain $150 and remit $850 to Freedom. On June 15, Universal sold 20 TVs and on June 20 paid the appropriate amount to Freedom. Prepare journal entries for Freedom and Universal for consignment arrangement on June 1, June 15, and June 20.

2) On June 10, Freedom sold 200 sound systems to Loud & Noisy (LN) for $1,500 each on credit. Freedom buys these sound system from their suppliers for $1,000 each. LN has right to return the sound systems with in 90 days and receive full refund. Freedom estimates that 4% of units sold to LN will be returned. Freedom's cost to recover these sound systems will be immaterial and the returned sound systems are expected to resold at a profit. On August 7, 5 sound systems are returned by LN. Prepare the journal entries for Freedom on June 10 and August 7.

3) On June 25, Freedom sold 50 computers on cash to Enterprise Corp (Enterprise) for $900 each. These computers has assurance warranty of 1 year. Estimated cost of assurance warranty is $20 for each. Prepare journal entry for Freedom on June 25.

4) Canucks Inc., a software company sells new accounting software and user support bundled together. The fair value of the software is $1,500 and the fair value of the user support is $500. The user support is valid for a period of 12 months from the date of software purchase. To be able to compete with a competitor's offering, Loon decided to sell the bundle at a discount for $1,800. On June 15, Canucks sold one bundle of software and user support for cash. Prepare the journal entry for Canucks to record the sale on June 15 and adjusting entry if any at year end December 31.

Diana Cohen received the following revenue during the year (she uses the cash method of accounting). Consulting revenue reported to her on a Form 1099-MISC, Box 7 High-end Retail $32,000 Jensen’s Health Products $8,500 Strategic Solutions $3,750 Board of director compensation reported to her on a Form 1099-MISC, Box 7 Natural Sunshine, Inc. $6,500

During the year, Diana paid the following business expenses: Consultant-related: Airfare $2,900 Hotel $1,450 Meals $390 Parking $320 Diana drove 290 business miles for her consulting-related activities (she has documentation to verify) Board of Director-related: Meals $125 Hotel $225 Diana drove 315 business miles for her board of director activities (she has documentation to verify) Neither of Diana’s business activities required the filing of Form(s) 1099 to report payments she made during the tax year. In addition, Ms. Cohen drove a 2014 Lexus purchased on January 1, 2014 for all her business mileage. She drove the vehicle a total of 10,605 miles during the year for all purposes. Diana has written documentation to support the mileage amounts. She also has access to another vehicle for personal purposes.

How would you interpret the below financials?

How would you interpret the below financials?

A country funds 100% of its health care expenses through governmental revenue and budgeting process. This means that people do not pay anything out-of-pocket for obtaining health care services, supplies and other health care products. In this context, can we apply economic principles to discuss policy changes in the health system? Discuss two specific examples of economic analyses that should be useful in improving performance of the health system that is fully funded by the government.

According to the Internal Revenue Service, income tax returns one year averaged $1,332 in refunds for taxpayers. One explanation of this figure is that taxpayers would rather have the government keep back too much money during the year than to owe it money at the end of the year. Suppose the average amount of tax at the end of a year is a refund of $1,332, with a standard deviation of $725. Assume that amounts owed or due on tax returns are normally distributed.

(a) What proportion of tax returns show a refund greater than $2,500?
(b) What proportion of the tax returns show that the taxpayer owes money to the government?
(c) What proportion of the tax returns show a refund between $150 and $680?

(Round all the z values to 2 decimal places. Round your answers to 4 decimal places.)

Your company, Dominant Retailer, Inc., is considering a project whose data are shown below. Revenue and cash operating expenses are expected to be constant over the project's 5 year expected operating life; annual sales revenue is $99,000.00 and cash operating expenses are $49,750.00. The new equipment's cost and depreciable basis is $155,000.00 and it will be depreciated by MACRS as 5 year property. The new equipment replaces older equipment that is fully depreciated but can be sold for $7,000. In addition, the new equipment requires an additional $5,000 of net operating working capital, which can be fully recovered at the end of the project. The new equipment is expected to be sold for $10,750 at the end of the project in year 5. The marginal tax rate is 20.00%. What is the project's Initial Cash Outlay at Year 0? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

Using the information from problem 2 on Dominant Retailer, Inc., what is the NPV of the Project if Dominant Retailer’s WACC is 16.75%? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

Your company, Dominant Retailer, Inc., is considering a project whose data are shown below. Revenue and cash operating expenses are expected to be constant over the project's 5 year expected operating life; annual sales revenue is $99,000.00 and cash operating expenses are $49,750.00. The new equipment's cost and depreciable basis is $155,000.00 and it will be depreciated by MACRS as 5 year property. The new equipment replaces older equipment that is fully depreciated but can be sold for $7,000. In addition, the new equipment requires an additional $5,000 of net operating working capital, which can be fully recovered at the end of the project. The new equipment is expected to be sold for $10,750 at the end of the project in year 5. The marginal tax rate is 20.00%. What is the project's Initial Cash Outlay at Year 0? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.

Using the information from problem 2 on Dominant Retailer, Inc., what is the Terminal Year Non–Operating Cash Flow at the end of Year 5? Enter your answer rounded to two decimal places. Do not enter $ or comma in the answer box. For example, if your answer is $12,300.456 then enter as 12300.46 in the answer box.