You are the assistant controller in charge of general ledger accounting at Linbarger Bottling Company. Your company has a large loan from an insurance company. The loan agreement requires that the company's cash account balance be maintained at $200,000 or more, as reported monthly. At June 30, the cash balance is $80,000, which you report to Lisa Infante, the financial vice president. Lisa excitedly instructs you to keep the cash receipts book open for one additional day for purposes of the June 30 report to the insurance company. Lisa says, “If we don't get that cash balance over $200,000, we'll default on our loan agreement. They could close us down, put us all out of our jobs!” Lisa continues, “I talked to Oconto Distributors (one of Linbarger's largest customers) this morning. They said they sent us a check for $150,000 yesterday. We should receive it tomorrow. If we include just that one check in our cash balance, we'll be in the clear. It's in the mail!”

(a) Who will suffer negative effects if you do not comply with Lisa Infante's instructions? Who will suffer if you do comply?

(b)  What are the ethical considerations in this case?

(c)  What alternatives do you have?

FINANCIAL ACCOUNTING

PROJECT

This project is meant for you to incorporate the semester’s learnings into an actual scenario. You should work on this project as the topics are covered in class.

During the month of October of the current year, Dan’s Accounting Service was opened. The following transactions occurred.

Oct 1   Dan sold $70,000 worth of stock (50 shares) to start the business.

Oct 1   Dan purchased $9,500 worth of office equipment on account from Keene’s

            Furniture Supply.

Oct 1   Dan paid October’s rent on the office. He wrote a check for $2,500.

Oct 2   Dan purchased $400 worth of office supplies for cash.

Oct 4   The telephone was installed. We paid $95 (Utilities Expense).

Oct 4 Dan placed an advertisement in the Anoka County Shopper. It cost $150 (cash).

Oct 4   Dan started a petty cash fund with $50 for a fund balance.

Oct 5   We purchased (for cash) $45 worth of stamps (Miscellaneous Expense).

Oct 5   A three-month umbrella insurance policy was purchased for $720 (cash).

Oct 7   Bebus’s Automotive Supply Company paid us $2,800 (cash) for setting up their

            books.

Oct 9   We earned $3,200 from Dietz’s Fine Furniture Company for setting up their

books. They will pay us later.

Oct 12 We paid a part-time employee $90 for running errands. There are no taxes to be

withheld.

Oct 14 Smith’s Food Service, Inc. paid us $1,700 for helping them with their taxes.

            The actual bill was for $3,500. They will pay us the rest next month.

Oct 19 We paid our part-time employee $80 for running errands. There are no taxes to be

withheld.

Oct 23 We sent a check for $1,000 to Keene’s Furniture Supply for the office equipment

            purchased on October 1st.

Oct 26 We earned $800 for consulting with Anderson’s Clothing Outlet. They will pay

us later.

Oct 26 We paid our part-time employee $50 for running errands. There are no taxes to

be withheld.

Oct 30 Dietz’s Fine Furniture Company paid us $900 on account for the work we did

            for them on October 9.

Oct 30 Dan paid the stockholders $600 in dividends.

Oct 31 Dan paid the electric bill which was $90.

Oct 31 Dan replenished the petty cash fund. He had used $12 for office supplies and $18

for miscellaneous expenses.

REQUIRED:

1) Prepare an Income Statement (don’t forget the Earnings Per Share)

2)  Statement of Retained Earnings

3) Classified Balance Sheet

After graduating from college, you landed a $75,000 job and were happy with it until your friends started going back to school. Now the MBA is on your mind as well. The cost of a good MBA program is $40,000 a year and such programs require that your are a full-time student. It will take you two years to graduate and you will have to leave your job, while attending school. You expect that the starting salary for an MBA professional will be $120,000 by the time you graduate and will increase by 2 percent every year. If you stay at your current job, your salary will be $77,500 at age 25 and will increase by 1% until you retire. Your opportunity cost of capital is 12%. Is this a good decision, if you start your MBA program when you are 25 and retire when you turn 55 (assume the same retirement age for both options.)

Jill starts to save money for her tuition payments needed for a reputed MBA program she wishes to begin in 5 years. Beginning today she will deposit $5000 each year into a MBA tuition account. The last payment will be made 5 years from today (i.e., she will make 6 equal annual deposits). Starting three months after making her final deposit, she will withdraw quarterly to pay tuition for each of the following 5 quarters (i.e. she will make 5 withdrawals in all). Assume that the MBA tuition account earns 1% quarterly during the period she makes withdrawals. The quarterly tuition she is committed to paying towards her MBA is closest to:

1) $6,766 2) $6,545 3) $6,610 4) $7,036 5) $6,833

Please answer. Thank you!

Researchers are comparing the proportion of University Park students who are Pennsylvania residents to the proportion of World Campus students who are Pennsylvania residents. Data from a sample are presented in the contingency table below.

1. Construct a 95% confidence interval to estimate the difference between the proportion of all University Park students who are Pennsylvania residents and the proportion of all World Campus students who are Pennsylvania residents. If assumptions are met, use the normal approximation method. Show how you checked assumptions. You should not need to do any hand calculations. Use Minitab Express to construct the confidence interval. Remember to copy+paste all relevant Minitab Express output and always clearly identify your final answer. [15 points]
2. B. Interpret the confidence interval that you computed in part A by completing the following sentence. [5 points]
3. C. Use the five-step hypothesis testing procedure given below to determine if there is evidence of a difference between the proportion of University Park students who are Pennsylvania residents and the proportion of World Campus students who are Pennsylvania residents. If assumptions are met, use the normal approximation method. Use Minitab Express. You should not need to do any hand calculations. Remember to copy+paste all relevant Minitab Express output. [30 points]

(a) Consider an individual’s decision to attend university and receive an education. As an abstraction, assume that the individual makes a binding decision to attend college for a fixed number of years based on the costs and her perceived benefits of doing so. What are the costs and benefits that the individual should consider? (b) Assume that the individual’s demand for years of education can be quantified as Y = 10 − 2t (1) where Y is the number of years the individual chooses to attend college and t is the yearly cost (tuition and other costs) in thousands of dollars. Assume the marginal cost of education is $4,000 per year per student. Graph the individual’s decision to attend college. How many years of education will this person choose? (c) Is her choice efficient in an economic sense? Are there any aspects of education the individual ignores in her decision? (d) Suppose that the social benefits of education are described by the relation Y = 10 − t. (2) Graph this relation along with the individual’s demand relation. Why do the social benefits lie above the individual benefits from education? What is the level 1 of education (in years of college attendance) that the individual should seek if we were interested in maximizing social welfare? Is this level of education efficient from an economic point of view? Explain

Evan, a single individual, operates a service business that earned $110,000 in 2020. The business has no tangible property and paid no W-2 wages.

Required:

1. Compute Evan's QBI deduction, assuming his overall taxable income before QBI is $125,000.
2. Compute Evan's QBI deduction, assuming his overall taxable income before QBI is $175,000.

Which of the following statements is not true regarding separate entities?

a. Generally a separate entity is legally distinguished from its owners.

b. Income earned by separate entities is taxed at the individual owner level.

c. A separate entity must have its own employer identification number.

d. A separate entity must file a tax return.

The university would like to conduct a study to estimate the true proportion of all university students who have student loans. According to the study, in a random sample of 215 university students, 86 have student loans. (a) Construct a 95% confidence interval for estimating the true proportion of all university students who have student loans (b) Provide an interpretation of the confidence interval in part (a). (1mark) (c) Conduct an appropriate hypothesis test, at the 5% level of significance to test the claim that more than 30% of all university students have student loans. Provide the hypothesis statement Calculate the test statistic value Determine the probability value

The university would like to conduct a study to estimate the true proportion of all university students who have student loans. According to the study, in a random sample of 215 university students, 86 have student loans. (a) Construct a 95% confidence interval for estimating the true proportion of all university students who have student loans (b) Provide an interpretation of the confidence interval in part (a). (1mark) (c) Conduct an appropriate hypothesis test, at the 5% level of significance to test the claim that more than 30% of all university students have student loans. Provide the hypothesis statement Calculate the test statistic value Determine the probability value