(a) Employers at a firm are worried about the effect of March Madness, a basketball championship held each spring in the US, on employee productivity. They estimate that on a regular business day employees spend on average 15 minutes of company time checking personal email, making personal phone calls, etc. They also collect data on how much company time employees spend on such non-business activities during March Madness. They want to determine if these data provide convincing evidence that employee productivity decreases during March Madness.

(b) Since 2008, chain restaurants in California have been required to display calorie counts of each menu item. Prior to menus displaying calorie counts, the average calorie intake of diners at a restaurant was 1100 calories. After calorie counts started to be displayed on menus, a nutritionist collected data on the number of calories consumed at this restaurant from a random sample of diners. Do these data provide convincing evidence of a difference in the average calorie intake of diners at this restaurant?

(c) Based on the performance of those who took the GRE exam between July 1, 2004, and June 30, 2007, the average Verbal Reasoning score was calculated to be 462. In 2011 the average verbal score was slightly higher. Do these data provide convincing evidence that the average GRE Verbal Reasoning score has changed since 2004?

Jimmie’s Fishing Hole has the following transactions related to its top-selling Shimano fishing reel for the month of June. Jimmie’s Fishing Hole uses a periodic inventory system.

3. Using LIFO, calculate ending inventory and cost of goods sold at June 30

The following information applies to the questions displayed below.]

Jimmie’s Fishing Hole has the following transactions related to its top-selling Shimano fishing reel for the month of June. Jimmie’s Fishing Hole uses a periodic inventory system.

4. Using weighted-average cost, calculate ending inventory and cost of goods sold at June 30. (Round your intermediate and final answers to 2 decimal places.)

The following information applies to the questions displayed below.]

Jimmie’s Fishing Hole has the following transactions related to its top-selling Shimano fishing reel for the month of June. Jimmie’s Fishing Hole uses a periodic inventory system.

4. Using weighted-average cost, calculate ending inventory and cost of goods sold at June 30. (Round your intermediate and final answers to 2 decimal places.)

The following information applies to the questions displayed below.]


The following events occur for Morris Engineering during 2021 and 2022, its first two years of operations.

Required:

1. Record transactions for each date. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

3 Required information

Serial Problem Business Solutions LO P1, P2, P3, P4

[The following information applies to the questions displayed below.]

Santana Rey created Business Solutions on October 1, 2019. The company has been successful, and its list of customers has grown. To accommodate the growth, the accounting system is modified to set up separate accounts for each customer. The following chart of accounts includes the account number used for each account and any balance as of December 31, 2019. Santana Rey decided to add a fourth digit with a decimal point to the 106 account number that had been used for the single Accounts Receivable account. This change allows the company to continue using the existing chart of accounts.

In response to requests from customers, S. Rey will begin selling computer software. The company will extend credit terms of 1/10, n/30, FOB shipping point, to all customers who purchase this merchandise. However, no cash discount is available on consulting fees. Additional accounts (Nos. 119, 413, 414, 415, and 502) are added to its general ledger to accommodate the company’s new merchandising activities. Its transactions for January through March follow:

The following additional facts are available for preparing adjustments on March 31 prior to financial statement preparation:

1. The March 31 amount of computer supplies still available totals $2,155.
2. Prepaid Insurance coverage of $681 expired during this 3-month period.
3. Lyn Addie has not been paid for seven days of work at the rate of $195 per day.
4. Prepaid rent of $2,715 expired during this 3-month period.
5. Depreciation on the computer equipment for January 1 through March 31 is $1,080.
6. Depreciation on the office equipment for January 1 through March 31 is $260.
7. The March 31 amount of merchandise inventory still available totals $554.

3. Prepare 6-column work sheet that includes the unadjusted trial balance, the March 31 adjustments (a) through (g), and the adjusted trial balance. Do not prepare closing entries and do not journalize the adjustments or post them to the ledger.

Take it to the Bank

Daryl Bank is an investment broker with Bank, Tank, & Shank a full service financial services firm serving the regional area of southern West Virginia. From the corporate offices in Beckley, Daryl manages a large number of clients throughout the southern part of the state.

Daryl is very customer service oriented and makes a personal effort to visit every client at least twice a year, even if it means traveling to his or her hometown. He usually travels to different county seats throughout the state and stays a couple of days in a local hotel so clients can visit him in these various locations. With his laptop Daryl can access account information and the latest information about traded securities using any number of software programs. His clients also enjoy seeing the demonstrations of portfolio programs for their specific accounts.

Daryl also uses these trips to visit West Virginia companies for potential investment possibilities. He likes to know the companies he invests in, and wants to get a competitive advantage in any investment decision. Since not many investment brokers are taking the time to visit some of the smaller publicly traded West Virginia companies, Daryl feels that he knows substantially more about these companies and their potential for excess returns than the general market. He is always looking for undervalued opportunities for investment purposes so that his customers can also enjoy many happy returns on their portfolios.

On a recent trip to Curveintheroad in the far southwestern part of the state, Daryl had the opportunity to visit three companies. He has been able to maintain a friendship with the top management of these companies and was given access to important financial data, which he planned to use to determine stock valuation.

The first company is Dig Deep, a regional coal mining company. They have been in operation for over 20 years and have the mining rights to over 100 square miles of land. Most of the coal they mine is the more clean burning anthracite coal. Even though they are a relatively small, company, they possess modern equipment and a very efficient mining operation.

The stock price for Dig Deep was $32 on January 1, 20x0, $36 on December 31, 20x0, $33 for 12/31/x1, $35 for 12/31/x2, $42 for 12/31/x3 and $44 for 12/31/x4. In the year 20x0 they paid a dividend of $1.00, the same for 20x1, $1.10 in 20x2, $1.25 in 20x3 and that amount again in 20x4. The standard deviation for their stock is 6%, beta is 0.80, and correlation coefficient is .60.

The second company is Moon Shine, a regional medicinal spirits company. This company got its start about 75 years ago and has been very successful establishing a niche market in all natural herbal remedies. What makes this company especially appealing to Daryl is its ability to do well during times when the general economy is in a depression or recession.

The stock price for Moon Shine was $14 on January 1, 20x0, $18 on December 31, 20x0, $15 for 12/31/x1, $22 for 12/31/x2, $32 for 12/31/x3 and $28 for 12/31/x4. The company does not pay a dividend. The standard deviation for their stock is 14%, beta is 1.25, and correlation coefficient is -0.30.

Finally Daryl met the management team at Pork, Byrd and Belly. In spite of the name, this was not an agricultural company, but a heavy construction company with major government contracts for roads and bridges. The company has had some very successful contracts in the past which have led to great growth, but their rate of growth has slowed a little in the last couple of years.

The stock price for Pork, Byrd and Belly was $10 on January 1, 20x0, $15 on December 31, 20x0, $25 for 12/31/x1, $30 for 12/31/x2, $28 for 12/31/x3 and $25 for 12/31/x4. In the year 20x0 they paid a dividend of $0.80, $0.90 in 20x1, $1.20 in 20x2, $0.50 in 20x3 and that amount again in 20x4. The standard deviation for their stock is 20%, beta is 1.05, and correlation coefficient is .45.

Since these are all small regional companies, Daryl uses the Russell 4000 index as a measure of the market standard. He likes to compare the performance of his companies against this index along with other criteria to determine if a company stock price offers a good value.

The index price for the Russell 4000 was 1200 on January 1, 20x0, 1400 on December 31, 20x0, 1800 for 12/31/x1, 1750 for 12/31/x2, 1600 for 12/31/x3 and 1700 for 12/31/x4. The standard deviation for the index is 5%, beta is 1.0, and correlation coefficient is 1.00. Currently the rate of return on a Treasury bill is 5.0%.

Required:

1. Compute the coefficient of variation for each stock plus the market for the 5 year period from 20x0 to 20x4.

Farm Fresh Produce Co. sells produce wholesale to local groceries on account. The accounts receivable department had the following information on December 31, 2009:

Total Credit sales $400,000.00

Balance of allowance for doubtful accounts ($950.00)

Bad debt as a percentage of credit sales 0.50%

Days Past Due Amount J

J Company 34 5,000.00

H Company 74 950.00

L Company 18 32,000.00

T Company 22 4,350.00

F Company 61 2,000.00

B Company 145 1,750.00

Age Class Percentage Uncollectible

0-30 2%

30-60 5%

60-90 12%

90-120 20%

120+ 75%

Instructions:

1. Create an aging of receivable report and determine the allowance for doubtful accounts.

2. Determine the allowance for doubtful accounts based on the percentage of sales method.

3. Illustrate the effects on the accounts and financial statements using both methods.

4. Illustrate the effects on the accounts and financial statements assuming Farm Fresh Produce Co. wrote off the balance of T Company on April 3, 2010.

5. Illustrate the effects on the accounts and financial statements assuming that T Company paid off its account on May 22, 2010.

Sainsbury's is the second largest chain of supermarkets in the United Kingdom. The have expanded internationally and have recently also opened stores in Egypt. However, Sainsbury has since experienced a variety of issues with the Egyptian market. As business development analyst you only see the three follow- ing options for Sainsbury’s business in Egypt:

Today is December 31, 2000. Suppose you have the following information about the financial implications of Sainsbury’s three strategic options.

Option 1: Scale down operations
Sainsbury’s immediately starts to scale down its operations and plans to eventually leave the Egyptian market effective as of Jan. 01, 2006 (i.e. after 5 more years). At the end of 2001, Sainsbury’s operations in Egypt are projected to generate a loss of £6 million. However, due to the effects of scaling down operations and a number of efficiency increases, Sains- bury’s estimates a profit of £7,2 million at the end of 2002, which is then expected to decrease by 3% on a yearly basis until Dec. 31, 2005. All fore- casts for this option are based on assumptions and considered as risky.

Option 2: New local partners
The NPV of acquiring new local partners has already been calculated for you: £12 million

Option 3: Sell business entirely
Sainsbury’s immediately sells its Egyptian operations to a local investor. The local investor is willing to pay a total £15 million, in three parts of £10 million (today) and £4 million (on Dec. 31, 2001) and £1 million (on Dec. 31, 2002). Since the local investor has also presented a bank guarantee for the whole acquisition price (issued by a well-known British bank), op- tion 3 is considered to be risk-free.

The risk-free interest rate is 1% EAR. Sainsbury’s continuing operations in Egypt are seen as risky and the appropriate risk premium is 8%.

1. Calculate the net present values (NPVs) of options 1 and 3 indicated above. (4 pts)

2. Clearlyindicatewhichoption(Option1,Option2orOption3)shouldbe chosen by Sainsbury’s management, and explain the reasons for your choice in two or three sentences – use technical terminology as needed. (1 pts)

At June 30, 2017, the end of its most recent fiscal year, Blue Computer Consultants’ post-closing trial balance was as follows:

The company underwent a major expansion in July. New staff was hired and more financing was obtained. Blue conducted the following transactions during July 2017, and adjusts its accounts monthly.

Adjustment data:

The chart of accounts for Blue Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance. Prepaid Rent, Equipment, Accumulated Depreciation—Equipment, Accounts Payable, Notes Payable, Interest Payable, Income Taxes Payable, Salaries and Wages Payable, Unearned Service Revenue, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Advertising Expense, Income Tax Expense, Interest Expense, Rent Expense, Supplies Expense, and Utilities Expense.

Here is the adjusted trial balance

So with all this info can you Journalize and post closing entries and complete the closing process. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. For accounts that have zero ending balance, the entry should be the balance date and zero for the amount.)

Taking into consideration the following trade theories: mercantilism, comparative advantage, factor proportions, and the product life cycle theory, what do each of these theories discuss with respect to the following: How much is traded? What products are traded? Should government control trade?

The accompanying data include the total compensation​ (in $millions) for CEOs of 50 companies and the investment return for a recent year.

Company   Compensation ($mil)   Return (%)
Company 1   20.6   17
Company 2   16.3   8
Company 3   27.8   10
Company 4   26.2   0
Company 5   31.2   15
Company 6   23.7   64
Company 7   15.1   54
Company 8   17.9   33
Company 9   11.9   13
Company 10   15.6   6
Company 11   17.9   34
Company 12   14.4   48
Company 13   12.7   21
Company 14   13.6   0
Company 15   14.9   59
Company 16   14.2   20
Company 17   13.4   4
Company 18   43.5   -20
Company 19   16.8   -8
Company 20   21.3   17
Company 21   14.5   3
Company 22   84.6   25
Company 23   24.1   7
Company 24   15.9   5
Company 25   22.9   25
Company 26   14.9   -1
Company 27   31.4   6
Company 28   14.6   27
Company 29   14.8   30
Company 30   60.3   39
Company 31   17.1   31
Company 32   17.9   -17
Company 33   19.2   24
Company 34   67.7   25
Company 35   12.7   33
Company 36   19.3   17
Company 37   18.1   5
Company 38   15.5   -5
Company 39   12.7   -19
Company 40   13.9   24
Company 41   19.4   5
Company 42   16.6   21
Company 43   17.2   0
Company 44   17.8   81
Company 45   61.1   24
Company 46   42.2   48
Company 47   14.9   36
Company 48   22.7   13
Company 49   39.8   -7
Company 50   16.8   -3

A. Compute the correlation coefficient between compensation and the investment return.

B. At the 0.05 level of​ significance, is the correlation between compensation and the investment return statistically​ significant?

- The null and alternative hypotheses

- The test statistic

- The​ p-value

C. Write a short summary of the findings in​ (a) and​ (b). Are the results​ surprising?