Some commercial airplanes recirculate approximately 50% of the cabin air to increase fuel efficiency. The authors of the paper “Aircraft Cabin Air Recirculation and Symptoms of the Common Cold” (Journal of the American Medical Association [2002]: 483-486) studied 1100 airline passengers who flew from San Francisco to Denver between January and April 1999. Some passengers traveled on airplanes that recirculated air and others traveled on planes that did not recirculate the air. Of the 517 passengers who flew on planes that did not recirculate air, 108 reported postflight respiratory symptoms, whereas 111 of the 583 passengers on planes that did recirculate air reported such symptoms. Estimate the difference between passengers that did and did not receive recirculated air at ? = 0.01 significance level. Interpret your interval in the context of the problem.

Write the journal entries for the following transactions under both equity method and fair value method.

Transaction 1: (1/1/2001) Company A invests $700,000 (cash) in the investee Company B.

Fair value method:

Equity method:

Transaction 2:At the end of the year (12/31/2001), there is a $20,000 difference between market value and book value of the investment (FV>BV).

Fair value method:

Equity method:

Transaction 3: At the end of the year (12/31/2001), company B reports $100,000 profit.

Fair value method (assuming the investment is 10% of the company's outstanding shares):

Equity method (assuming the investment is 30% of the company's outstanding shares):

Transaction 4: A receives cash dividends in the amount of $10,000 (1/31/2002).

Fair value method:

Equity method:

Each of the following events caused a shift in the AD or AS curve in Canada. Identify which curve was affected and describe the effect of equilibrium real GDP and the price level.

a) The end of the Cold War in 1990 led to large declines in Defense spending in many countries (including Canada)

b) The federal government and (many) provincial governments reduced corporate income-tax rates between 2000 and 2011.

c) The federal government increased its level of government purchases (G) in 2009 and 2010, amidst a global recession.

d) World commodity prices increased sharply from 2002 and 2008. Many of these commodities are both produced in Canada and used as important inputs for Canadian firms.

e) The beginning of a strong recovery in the United States in 2014 led to a large increase in the demand for many Canadian exports.

Year   Corporate Tax Rate   Interest Income   Average Rate on Equity Income   Dividends   Capital
Gains
1971-1978   48%   70%   53%   70%   35%
1979-1981   46%   70%   49%   70%   28%
1982-1986   46%   50%   35%   50%   20%
1987   40%   39%   33%   39%   28%
1988-1990   34%   28%   28%   28%   28%
1991-1992   34%   31%   30%   31%   28%
1993-1996   35%   40%   34%   40%   28%
1997-2000   35%   40%   30%   40%   20%
2001-2002   35%   39%   30%   39%   20%
2003-2012   35%   35%   15%   15%   15%

Use the data in the​ table, to calculate the tax disadvantage of retained cash​ in:

a.1978

b. 1998

c. 1976

1. Using the following lines of data, create a temporary SAS data set called ThreeDates. Each line of data contains three dates, the first two in the form mm/dd/yyyy descenders and the last in the form ddmmmyyyy. Name the three date variables Date1, Date2, and Date3. Format all three using the MMDDYY10. format. Include in your data set the number of years from Date1 to Date2 (Year12) and the number of years from Date2 to Date3 (Year23). Round these values to the nearest year. Here are the lines of data (note that the columns do not line up):

01/03/1950 01/03/1960 03Jan1970

05/15/2000   05/15/2002   15May2003

10/10/1998 11/12/2000    25Dec2005

Sarbanes–Oxley Act Compliance
As a Certified Public Accountant (CPA), Certified Internal Auditor (CIA), and Certified Information Systems Auditor (CISA) you have been asked to perform an audit of company records in support of the Attest function to verify the annual statements. The inventory balances from the computerized system are reported to be $121 million, but reports from field auditors show that balances are severely overstated. In discussions with employees and managers, you find some overlap in functions with certain personnel authorized to perform functions in other departments.
Also, several personnel have not taken vacations in over three years. In compliance with the Sarbanes–Oxley Act of 2002, what would be your approach for the audit assignments:

1. In no more than 750 words discuss what application tests might you perform? Why?

1.When it comes to mergers valuation is the only method used by organizations to assess the proper fit between two organizations.

2. The Sarbanes-Oxley Act of 2002 created the Public Company Accounting Oversight Board, whose purpose is to set auditing, quality control, and ethical standard; as well as, inspect accounting firms’ audit operations & investigate an impose sanctions for violations.

3. According to the Sarbanes-Oxley Act, public companies need to adopt a corporate code of ethics for middle managers.

4. Agency theory provides a simplified view of the corporation, and as a result, this view is problematic; and, a robust view of the corporation, which is more inclusive of all stakeholders.

5. Accountants focus only on internal stakeholders.

Internal Controls are extremely important with any accounting system, especially a computerized system. It is a huge part of creating and maintaining an accurate set of accounting records. I’m sure you all have heard of The Enron, WorldCom, Global Crossings, Tyco or Arthur Anderson scandals. These scandals cost their stockholders billions of dollars. Any company that trades stock publicly is required to file their financial statements and other important financial information with the SEC (The Securities Exchange Commission). Obviously, false information was filed from these companies and as a result, The Sarbanes Oxley Act of 2002 was passed into law.

Describe this act?

Discuss what it means for stockholders?

Explain the ramifications for accountants?

Provide some ethical solutions that would prevent employees from putting companies in this type of situation.

What is the best answer for those questions?

1. What is the objective of financial statement analysis?

2. Explain why and how financial statements are useful for decision-making.

3. What are some of the way management can impact the quality of financial reporting?

4. Describe the decision making process of the accounting rules.

5.   Find the resources of financial information of the Microsoft in different ways.

6.   Describe the components of a Form 10-K.

7.   What are the four major financial statements?

8.   What types of information can be found in the notes to financial statements?

9.   What is the purpose of the audit report? Explain the difference between an unqualified and a qualified opinion.

10. What is the Sarbanes-Oxley Act of 2002?

11. What information can be found in the Management Discussion and Analysis?