Case study

Eleanor has grown up in a family of "heavy users."
       "I mean two things by this," she smiles derisively. "My mom, my dad, my two older sisters—even my aunts and uncles and most of my cousins, probably—they all used drugs. I finally did too when I was 17, just to have everybody quit bullying me. I was the last one to use, and now I'm the first one to try to get clean, and they hate that because everybody's always used me. Since I'm the only one that has been straight this long, the only one able to keep a job long term, everybody thinks I owe it to them to let them crash on my couch or give them money.
       "But I want to put those days behind me. I have my sister's little boy to raise now—." At this point Eleanor begins to cry. "My sister was killed in a motorcycle accident. Her boyfriend was driving, and neither one had a helmet—." She cries a little more and says, "My sister Molly was the only one—the only one—in our family who loved and supported me when I tried to go straight. She said she was going to too, for her baby boy's sake. Now she's gone, and I have him, and I don't want him to end up like the rest of us. It's a promise I made to her after her death."
       "I feel like I'm a train wreck right now. Where do I start?"

Answer to the following questions in a short essay format. Remember to list your references in APA format.

Revise the following passage, correcting any grammatical and punctuation errors present. Indicate the
corrected parts in your answer by writing them in bold red text.
In the 1970s, market researchers discovered that the most young children were unable to tell the difference
between the television shows they watched and advertisements for products. Because of this discovery, it was
an attempt in 1978 to put legal restrictions on television advertisements aimed at too young children, but
advertisers objected. The industry of marketing to children has being growing steadily since then. Between
1978 and 1998, the amount of money directly spent by children age four to twelve increased from less than
three billion dollars a year to almost twenty-five billion dollars, and is not end in sight. Researchers believe that
children in that age group also convince their families to spend another two hundred billion dollars a year—
such as when a young boy, for example, convinces her mother to purchase a more expensive computer than
she might otherwise have bought. Marketers are easy to decide to target this young market—there is their job
to aim at consumers who can be convinced and who will spend most money.
However, few other groups have also helped marketers figure out the best way to target a too young
audience. Many child psychologists are now been asked to join market-research firms to provide information
about how to reach children more effectively. Some members of the American Psychological Association
lobbied their organization in 2002 to discipline APA members who have helped advertisers target children, but
the APA has no taken action yet. The most psychologists feel that the marketers and their advisers have being
allowed very much freedom to appeal to children who cannot make informed decisions about products, but
the situation does no seem likely to change.

The Pawnee Rangers, a boys-only wilderness club, and the Pawnee Goddesses, a girls-only wilderness club, went on a joint weekend camping trip with their respective troop leaders Ron Swanson and Leslie Knope. Leslie claims that her club (the Pawnee Goddesses) is better than Ron’s club.  You may assume that the members who went on the camping trip are representative samples of their respective clubs. Please assume that “boy” and “girl” refer to each child’s self-identified  gender.

During the weekend trip, Leslie proposes that the two clubs have a fishing competition to see if her club is better. To measure club superiority, Leslie is interested in comparing the long-run  proportions of club members who can catch a fish within one hour. After fishing for one hour, each person caught at most one fish (either no fish or one fish). The results are shown in the two-way table below.

Define the following notation:

pR: the long-run proportion of Pawnee Rangers who can catch a fish within one hour

pG: the long-run proportion of Pawnee Goddesses who can catch a fish within one hour

Leslie used the two-sample z-test to compute a p-value of 0.0929, but Ron believes that Leslie's p-value is not valid. If all other things remain the same, how can Leslie fix the issue with her analysis?

Select one:

Ron is incorrect, all the conditions are satisfied for Leslie's analysis to be valid.

Increase the number of Pawnee Goddesses in the sample.

Increase the number of Pawnee Rangers in the sample.

Use the two-sample t-test instead of the z-test.

Tony’s favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, “I’ve always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know this would be the perfect place.” On November 1, 2022, Great Adventures purchased the land by issuing a $590,000, 6%, 10-year installment note to the seller. Payments of $6,550 are required at the end of each month over the life of the 10-year loan. Each monthly payment of $6,550 includes both interest expense and principal payments (i.e., reduction of the loan amount).

Late that night Tony exclaimed, “We now have land for our new camp; this has to be the best news ever!” Suzie said, “There’s something else I need to tell you. I’m expecting!” They decided right then, if it was a boy, they would name him Venture.

Required:

1. Complete the first three rows of an amortization schedule.

2. & 3. Record the purchase of land with the issuance of a long-term note payable on November 1, 2022, and the first two payments on November 30, 2022, and December 31, 2022, and calculate the remaining balance of the note payable as of December 31, 2022. (If no entry is required for a particular transaction, select "No Journal Entry Required" in the first account field.)

4. The 12 monthly payments in 2023 (following year) will reduce the note’s balance by an additional $44,856. How would the remaining balance of the note payable be reported in the balance sheet as of December 31, 2022?

Tony’s favorite memories of his childhood were the times he spent with his dad at camp. Tony was daydreaming of those days a bit as he and Suzie jogged along a nature trail and came across a wonderful piece of property for sale. He turned to Suzie and said, “I’ve always wanted to start a camp where families could get away and spend some quality time together. If we just had the money, I know this would be the perfect place.” On November 1, 2022, Great Adventures purchased the land by issuing a $600,000, 6%, 10-year installment note to the seller. Payments of $6,661 are required at the end of each month over the life of the 10-year loan. Each monthly payment of $6,661 includes both interest expense and principal payments (i.e., reduction of the loan amount).

Late that night Tony exclaimed, “We now have land for our new camp; this has to be the best news ever!” Suzie said, “There’s something else I need to tell you. I’m expecting!” They decided right then, if it was a boy, they would name him Venture.

• Record the issuance of the long-term note payable for the purchase of land on November 1, 2022.
• Record the first monthly payment on the long-term note payable, made on November 30, 2022.
• Record the second monthly payment on the long-term note payable, made on December 31, 2022.
• The 12 monthly payments in 2023 (following year) will reduce the note's balance by an additional $45,616. Record the reclassification of this amount from long-term notes payable to current notes payable.
• Prepare the closing entry for revenue accounts.
• Prepare the closing entry for expense and loss accounts.

Prepare general journal, income statement (unadjusted), and balance sheet.

The Casper Ice Cream Company is an ice cream manufacturer in Richmond, Utah famous for making Fat Boy Ice Cream Sandwiches. The owner, Mr. Casper, the grandson of the founder, is considering replacing an existing ice cream maker and batch freezer with a new maker which has a greater output capacity and operates with less labor. His only alternative is to overhaul his ice cream maker and batch freezer which have a current net book value of $6,000 and three years of remaining depreciable life (straight line). The equipment would cost $10,000 to overhaul but this would increase its useful life for 10 years which is also the life of the new machinery. Mr. Casper’s accountant tells him the new net book value of the overhauled equipment could be depreciated straight line over four years. The old machinery has zero salvage value currently.

The new maker and freezer would cost $50,000 including installation. It would be fully depreciated over 10 years and would have $3,000 salvage at the end of that period. Because of automatic features, the new equipment would allow labor saving of $9,000 per year.

Even though the new equipment has increase capacity, Mr. Casper does not feel any extra product could be sold until year five. At that time, he estimates that additional sales would result in additional net cash revenues before tax of $5,000 per year for the remaining life of the machine. By the end of year four, however, working capital would have to be increased by $3,000 to support the higher sales. This increase in working capital will be recovered at the end of the project, which will last for 10 years.   

Casper Company is currently in the 30% tax bracket. Mr. Casper demands a rate of return of 16%.   

Complete a NPV and IRR analysis on the project.