Atlantic Academy is a private school that offers education to children from Kindergarten to Grade 7. The school operates as a not-for-profit entity and oversight of the school is performed by the board of directors. The board reviews the operational and financial results monthly to ensure the school is meeting its budget responsibilities. Revenues for the school generally come from three sources: student tuition, government funding, and various fundraising programs seeking additional funds for specific purposes. Government funding is provided based on the number of students enrolled, and the funds are to be spent only on the provision of education services. A requirement of the government funding is that the school must submit annual audited financial statements.

Jones and Black, CPAs, are the auditors of Atlantic Academy. Their firm policy is to use the following percentages when determining materiality:

• 5% of normalized pre-tax profit
• 1% of total assets
• 2% of equity
• 2% of revenues or expenditures

Performance materiality is to be 65% of planning materiality.

Select financial data for Atlantic Academy are provided below:

Materiality:

Who are the Financial statement Users and what are their concerns?

Normalizing Items?                                                                            

Why?                                                                                                                          

The Financial statements report the following

Any qualitative considerations?

Performance Materiality

Calculation

You have just been appointed assistant principal of Prominence High School in Exclusiveville. The school consistently scores in the top 5% in the county. The principal indicates to you she feels the performance of the staff is lax, and she needs your assistance in addressing staff shortcomings. Particularly, staff is showing up late to faculty meetings, leaving school early, not turning in lesson plans, and not maximizing instructional time. She wants to hear your ideas on how you would address some of these concerns. She also wants your opinion of the other assistant principals at the school, since you are an outsider and have no previous experience to draw from. She asks you to take a month and critique them, then report your findings to her. She requests that you take four months to “change the culture” of the school. She will make sure you have whatever you need to be successful. She also asks you to start running the faculty meetings. A month later, at a meeting with the assistant principals and principal, the principal starts the meeting with, “I asked Ms. So and So to critique you for the past month and report out her findings. Well, Ms. So and So, what did you find?” How will you handle this situation? What plan will you put in place for the staff? What plan will you put in place for the assistant principals? What information will you give the principal after you critique the assistant principals? Take me step by step how you will handle your responsibilities at Prominence High School.

Brett and Brenna's twin girls are doing very well. They haven't had any health complications since jaundice in the beginning of their second week. Unfortunately, a friend of the family, Marleen, had a very high-risk pregnancy that resulted in her son, Ervin, being born at 32 weeks of age. He has several health complications and is currently in the NICU. Brett and Brenna want to help any way they can.

1. Marleen is a single mother who barely makes ends meet. She is concerned about caring for Ervin being preterm, and has asked Brett and Brenna if there are any nutrition-related services to help her and Ervin once they are out of the NICU. Which of the following might Brett and Brenna recommend?

2. Shortly after birth, Ervin was taken to the NICU for care because he was preterm. He was screened for the standard newborn genetic screen so if nutrition intervention was required, it could be addressed immediately. The screening came back normal. Still, within days of birth, Ervin begins showing signs of possible sepsis and liver problems. What genetic condition may have been previously missed in the screening?

3. Ervin's age will be tracked differently on growth charts than full term babies, based on his corrected age.

Ervin was born at 32 weeks. When he is 3 months old, what will his corrected age be?

6. True or False: Unlike the twins, who were born at full term, Ervin was considered preterm at 32 weeks. Marleen is interested in starting complimentary food. To what age should she wait until introducing complementary foods?

The linear regression equation for predicting poverty (%) from the high school graduation rate (%) is as follows: ˆ y = 29 -0.2*x High school graduation rate for North Carolina is 22% and the poverty rate is 29.5%. Find the residual for this observation (round your answer to one decimal place)

In school finance, Housing Price Capitalization refers to the concept that increased funding for schools may lead to increased school quality, which in turn may lead to higher property values for homes that are served by the improved schools. What might be a potential downside to housing price capitalization? (4 points)

Learning disabilities are often thought of as school problems. Explain how the same underlying disorder (e.g., dyslexia) can exist both in preschool years and again after the child is in school but often not be diagnosed until as late as the third grade. (The distinctions between disorder and disability should be useful here.)

In the town of Kokomo, Marylin owns a well, which is the only source of drinking water. The supply of water is perfectly inelastic at a quantity of 1,000 gallons of water per day. At a price of $2.00 per gallon, the quantity demanded per day is 1,000 gallons. The government imposes a $0.50 per gallon tax.

After the tax is imposed, what is the price paid by the villagers? What is the price received by Marylin? What is the tax burden?

Explain with words + graph.

Investigators are trying to determine if the contamination of a town well led to significant increases in adverse health effects. During the period of time when water was consumed from this contaminated well, there were 16 birth defects among 414 births. After this well was shut off, there were 3 birth defects among 228 births. Investigators asked to determine if the rate of birth defects was higher when the contaminated well was in use.

(a) Estimate the probability of a birth defect when the contaminated water was consumed. Estimate the probability of a birth defect when the contaminated well was shut off.

(b) Calculate the 95% confidence interval for the true population proportion of birth defects when the contaminated water was consumed. Calculate the 95% confidence interval for the true population proportion of birth defects when the well was shut off.

(c) Test the claim that the contaminated well was not associated with an increase in the rate of birth defects in the community at the alpha = 0.05 level, by using the two-proportion z test.

(d) Calculate a 95% confidence interval for the true difference between the proportions of birth defects when the contaminated well was in use versus when the well was shut down.

Suppose you are researching a firm that dominates the labor market in a small town.

a. What is the significance of studying this firm's resource pricing (for local people, for the firm itself, etc.)?

b. In the context of derived demand, why might it be important for workers at the firm that the firm's product has strong market performance?

c. Now assume the firm decides to increase employment by 1,000 workers. What does this decision reveal about the firm's marginal revenue product (MRP) and marginal resource cost (MRC)?

d. Next, assume the price for capital goods that the firm buys decreases. If capital goods and labor are substitute resources, what might this do to the firm's demand for workers?

e. If the firm's MRPL= $40, PL = $10, MRPC = $200; PC = $200, is it maximizing its profits? If not, state which resource(s) should be used in larger amounts and which resource(s) should be used in smaller amounts.

f. Finally, suppose there is mass migration into the small town where the firm operates. Due to the resulting increase in labor supply, what will happen to the firm's quantity of workers demanded? In this case, will the substitution effect and output effect move in the same direction or in opposite directions? Why?

A ranch in "Smart Town" claimed that the cows they raise are smarter than the rest of the population of US cows. To prove that they announced that the average weight of their "Smart Cow" brain is 485 grams instead of the regular 458 grams. Assume that the standard deviation of Smart Cow brain weights is the same as the entire population's standard deviation=64 g. a) What is the Probability that the Brain of a randomly selected Smart Cow will weigh at least 500 grams b) What is the probability that the average brain weight of a sample of 36 Smart Cows will be at least 480 grams