Ciena & Associates

The following customer segmented quarterly income statement is for Ciena and

Associates, a firm that performs legal services

Customers                       Koontz                             Davis                   Nello                   Total

Sales revenue                  $150,000                        $750,000              $100,000          $1,000,000

Variable costs                 125,000                           600,000               80,000                805,000

Contribution margin       $ 25,000                          $150,000              $ 20,000            $ 195,000

Direct fixed costs            7,500                                  157,500               5,000                  170,000

Allocated fixed costs      3,000                                15,000               2,000                 20,000

Profit (loss)                      $ 14,500                          $ (22,500)              $ 13,000            $ 5,000

Management is concerned about the significant losses associated with the Davis

account and would like to drop this customer. Allocated fixed costs are assigned to

customers based on sales revenue.

If Davis is dropped, total allocated fixed costs are assigned to the remaining

customers, and all variable and direct fixed costs for the Davis account will be

eliminated.

Required

a. Perform differential analysis. Assume keeping all customers is Alternative

1, and dropping the Davis account is Alternative 2.

b. Which alternative is best? Explain.

c. Summarize the result of dropping the Davis account.

d. Explain what happened to the profitability of the other two customers as a

result of dropping the Davis account.

e. Assume all the facts of this problem remain the same with one exception. As

a result of dropping the Davis account, Ciena and Associates is only able to

reduce the direct fixed costs associated with the Davis account by 90 percent.

The remaining 10 percent will not be eliminated for several more years. Does

this change Ciena's decision as to whether to drop the Davis customer?

1- Concept and scope sale of goods as per IAS 18? detaild explination at least 5 lines

2- Recognition of revenue from rendering of services? detaild explination at least 5 lines  

3- revenue recognition of software companies, ( with example)? detaild explination at least 5 lines + the example

4- Principles of revenue recognition for Airline Companies ( with example)? detaild explination at least 5 lines + the example of any airline company

5- explain and define in detailed the construction contract? detaild explination at least 5 lines

1. The General Social Survey polled a sample of 209 people aged 18-30 in the year 2000, asking them how many hours per week they spend on the internet. The sample mean was 6.75 with a standard deviation of 7.71. A second sample of 541 people aged 18-30 was taken in 2006. For this sample, the mean was 7.34 and standard deviation of 10.93. Assume these are simple random samples from populations of people aged 18-30. Can you conclude that the mean number of hours per week spent on the internet increased between 2000 and 2006?

a. Do the hypothesis test with α=0.05 significance level.

b. Construct a 95% confidence interval for the difference in mean number of hours spend per week on the Internet between 2000 and 2006.

c. Calculate the Margin of Error for 95% confidence level.

A. In 2016 were foreign-born workers a bigger share of the U.S. labor force than in 2006? Explain, presenting and interpreting the relevant statistical evidence.

B. In 2016 who exhibited a higher labor force participation rate in the U.S., native- or foreign-born women? How does the evidence for 2016 compare with 2006, before the Great Recession? Present all relevant statistical evidence and interpret.

C. In 2016 who exhibited greater joblessness in the U.S., native- or foreign-born men? How does the evidence for 2016 compare with 2006, before the Great Recession? Present all relevant statistical evidence and interpret.

D. In 2016 who was more likely to have earned a bachelor’s degree or higher in the U.S., foreign- or native-born workers? Present and interpret relevant statistical evidence. Should you be “surprised” by your findings? Explain, using appropriate economic analysis.

You have been asked to assess the expected financial impact of each of the following proposals to improve the profitability of credit sales made by your company. Each proposal is independent of the other. Answer all questions.

Type your answers in the table below and submit this worksheet.

Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poor risks.   Sales are projected to increase by $240,000 per year if credit is extended to these new customers. Of the new accounts receivable generated, 6% are projected to be uncollectible. Additional collection costs are projected to be 2% of incremental sales (whether they actually end up collected or not), and production and selling costs are projected to be 78% of sales. Your firm expects to pay a total of 30% of its income after expenses in taxes.

1. Compute the incremental income after taxes that would result from these projections:

2. Compute the incremental Return on Sales if these new credit customers are accepted:

If the receivable turnover ratio is expected to be 3 to 1 and no other asset buildup is needed to serve the new customers…

3. Compute the additional investment in Accounts Receivable
4. Compute the incremental Return on New Investment

5. If your company requires a 20% Rate of Return on Investment for all proposals, do the numbers suggest that trade credit should be extended to these new customers? Explain.

Albany Bakery has the following production technology to produce bread: 1 worker produce 10 breads; 2 workers produce 18 breads; 3 workers produce 27 breads; 4 workers produce 34 breads; 5 workers produce 40 breads; 6 workers produce 45 breads. Each bread is sold for 5 dollars. If the company hires 3 workers, which of the following could be the nominal wage rate?

Nobel Tech Inc. is building a new production line. The cost of the production line is $3 million in the current year and $2 million in the following year. The production line is expected to bring in cash inflow of $1.6 million in year 2, and $2 million each year from year 3 to year 7. The company uses a cost of capital of 10% on all the projects.

The IRR of the project is closest to ___________.

Group of answer choices

a. 27%

b. 24%

c. 17%

d. 18%

1) Calculate the missing amounts for each company.

100 words for each Question please

1. What accounting standard in 2004 caused stock options to decline as the primary source of non-cash compensation? Why?

2. Does compensation expense from stock options meet the definition of an expense as discussed in SFAC 6? Why?

3. Do you think compensation expense from stock options should be recognized as an expense? Choose one position, and support it.

In the first week of November, 2005, the Gallup Organization surveyed 1000 American adults and found that 220 of them had smoked at least one cigarette in the past week.  In 1990 Gallup also asked 1000 American adults the same question in the first week of November and determined that 270 had smoked at least one cigarette in the previous week.  Is there significant evidence the proportion of American adults who smoked at least one cigarette in the previous week was less in November, 2005 than in November, 1990?

What are the null and alternative hypotheses?  State these using symbols, not words (carefully define your symbols).

Calculate the test statistic.

What is the P-value for this test?

What do you conclude at the 0.05 level of significance?

Construct a 95% confidence interval for the difference between the two population proportions of 2005 and 1990.