Seven-year-old Timothy's mother takes him to his pediatrician for his annual checkup. His weight is 68 lb (31 kg), plotted at the 95th percentile, and his height is 50 in. (127 cm), between the 75th and 90th percentiles for his age. His body mass index of 19.25 kg/m2 plots at the 95th percentile for his age. His growth percentiles have been increasing over the last several years.

Timothy's mother expresses concern to the pediatrician about her son's weight. His older and younger brothers are both thinner than Timothy. Timothy's mother is obese, but his father is a normal weight for height. Timothy is in the second grade. He rides the school bus to and from school. He participates in the School Lunch Program at his school, but his parents gave him extra money in case he wants to buy some additional à la carte food items from the cafeteria or items from the vending machines. After school, Timothy and his brothers stay in their home with a babysitter until one of their parents returns home from work. Timothy usually watches TV or plays video games after school. His parents leave snack foods—chips, cookies, and sodas—in the house for their sons to have after school. His mother usually prepares their evening meal, which consists of a meat, starch, vegetables, and a dessert item. After dinner, Timothy does his homework and then usually watches more TV with his parents. He usually has a dish of ice cream before going to bed.

1. What is your assessment of Timothy's body size based on his weight-for-age, height-for-age, and BMI-for age percentiles?

2. What suggestions do you have for Timothy's parents about improving his eating habits?

3. What suggestions do you have for Timothy's parents for increasing his physical activity level?

4. Is it significant that Timothy's mother also has a weight problem?

SolarTubeGen is a start-up company in the renewable energy sector. The founder of SolarTubeGen, Fritz Herzberg, has developed cutting-edge technology to convert the energy in the sun’s rays to electricity via a novel system of mirrors designed to focus the sun’s rays onto tubes containing a patented type of gas, which then heats and expands to drive turbines. Ramirez & Walker LLP has won the contract for the first audit of SolarTubeGen on the basis of its expertise in the energy sector. However, the lead partner, Mark Ramirez, recognizes the success of the audit is dependent on the correct assessment of the technology being used at SolarTubeGen. Mark specified in the successful audit bid documents that the audit will use an external specialist to help with valuation of the company’s assets.

Fritz Herzberg is very protective of his company’s intellectual property and is resistant to Mark’s first suggested specialist, Manfred Hamburg. Fritz believes that Manfred Hamburg is hostile toward him because they clashed when they both worked for a German company making photovoltaic cells in the 1990s. Fritz has suggested another specialist, Lily Beilherz, with whom he has had good working relations over the last 20 years.

Required

1. a. Advise Mark Ramirez about the choice of a specialist for the audit of SolarTubeGen. What must he consider when making his choice? Refer to AU-C 620 Using the Work of an Auditor’s Specialist to support your answer. (ASB standards can be accessed at www.aicpa.org/research/standards.)
2. b. SolarTubeGen takes over another renewable energy company during the second-year audit. The new subsidiary is based in another country and has previously been audited by a local audit firm. Evaluate how Mark should handle the new audit responsibilities brought about by the client’s ­expansion.

Is the national crime rate really going down? Some sociologists say yes! They say that the reason for the decline in crime rates in the 1980s and 1990s is demographics. It seems that the population is aging, and older people commit fewer crimes. According to the FBI and the Justice Department, 70% of all arrests are of males aged 15 to 34 years†. Suppose you are a sociologist in Rock Springs, Wyoming, and a random sample of police files showed that of 36 arrests last month, 28 were of males aged 15 to 34 years. Use a 5% level of significance to test the claim that the population proportion of such arrests in Rock Springs is different from 70%.

What is the value of the sample test statistic? (Round your answer to two decimal places.)

(c) Find the P-value of the test statistic. (Round your answer to four decimal places.)

2The Toylot company makes an electric train with a motor that it claims will draw an average of only 0.8 ampere (A) under a normal load. A sample of nine motors was tested, and it was found that the mean current was x = 1.40 A, with a sample standard deviation of s = 0.45 A. Do the data indicate that the Toylot claim of 0.8 A is too low? (Use a 1% level of significance.)

***What is the the value of the sample test statistic? (Round your answer to three decimal places.)

3.Professor Jennings claims that only 35% of the students at Flora College work while attending school. Dean Renata thinks that the professor has underestimated the number of students with part-time or full-time jobs. A random sample of 82 students shows that 37 have jobs. Do the data indicate that more than 35% of the students have jobs? Use a 5% level of significance.

****What is the value of the sample test statistic? (Round your answer to two decimal places.)


(c) Find (or estimate) the P-value.

P-value > 0.2500

.125 < P-value < 0.250   

  0.050 < P-value < 0

.1250.025 < P-value < 0.0500

.005 < P-value < 0.025

P-value < 0.005

IWT is a 6-year-old company founded to exploit metamaterial plasmonic technology to develop

and manufacture miniature microwave frequency directional transmitters and receivers

for use in mobile Internet and communications applications. IWT’s technology, although

highly advanced, is relatively inexpensive to implement, and its patented manufacturing

techniques require little capital as compared to many electronics fabrication ventures.

Because of the low capital requirement, they have been able to avoid

issuing new stock and thus own all of the shares. Because of the explosion in demand for

its mobile Internet applications, IWT must now access outside equity capital to fund its

growth, and owners have decided to take the company public. Until now,

the owners have paid themselves reasonable salaries but routinely reinvested

all after-tax earnings in the firm, so dividend policy has not been an issue. However,

before talking with potential outside investors, they must decide on a dividend policy.

Your new boss at the consulting firm Flick and Associates, which has been retained to

help IWT prepare for its public offering, has asked you to make a presentation to the owners

in which you review the theory of dividend policy and discuss the following issues.

a. (1) What is meant by the term “distribution policy”? How has the mix of dividend

payouts and stock repurchases changed over time?

(2) The terms “irrelevance,” “dividend preference” (or “bird-in-the-hand”), and “tax

effect” have been used to describe three major theories regarding the way dividend

payouts affect a firm’s value. Explain these terms, and briefly describe each theory.

19) Boris, a sole proprietor, manufactures glass containers for beverages. Boris wants to convert his business to a corporation. Just before he completes the paperwork to incorporate, Boris renews the lease on his factory. Which of the following is true?

Select one:

a.
The lease contract is breached as soon as Boris’ business is incorporated.

b.
The new corporation is instantly liable on the lease as soon as it is incorporated.

c.
Boris remains personally liable on the lease unless the corporation adopts it through a novation.

d.
No one is liable: Boris’ sole proprietorship no longer exists and the corporation did not sign the lease.

20) A provision in the bylaws of Wells Fergo Corporation allows each shareholder to maintain his proportionate control by giving preference over prospective purchasers to purchase a pro-rated share of the new stock. This provision is called

Select one:

a. Cumulative voting.

b. Pro-rata rights.

c. Stock warrants.

d. Preemptive rights.

21) Steve Alan, a college student, founded a start-up company called Macrosoft. Steve wants to borrow money from Bank of Washington, which will give him the loan if Steve’s father cosigns. Steve’s father agrees. He is a

Select one:

a. A security.

b. A surety.

c. A guarntor.

d. A promisor.

22) Mieko is a shareholder of Natural Gas, Inc. Natural Gas uses cumulative voting to elect directors. This means that the number of Mieko’s votes is determined by the number of

Select one:

a. Shareholders present at the shareholders’ meeting.

b.
The number of shareholder meetings that Mieko has attended.

c.
Members of the board to be elected multiplied by the total number of voting shares that Mieko holds.

d. Years that Mieko has been a shareholder.

SCOR is a local nonprofit organization that provides advice and direction to new and/or small companies. The volunteers for the SCOR organization are all retired executives and/ or entrepreneurs. At their weekly meeting, Herb Graves and Ned Book were discussing a proposal that they had received from a local trucking company that had been founded about two years ago. The company, Bald Eagle Valley Trucking (BEV), had enjoyed some success and had been able to secure a loan enabling it to expand to 10 tractor and trailer units. Its success had been based largely upon a water bottling plant, owned by the Coca Cola Com- pany, that had been increasing the volume it shipped. BEV felt that there was an opportunity to expand its business with Coca Cola into the Philadelphia, New York, and Washington, DC, areas, but it needed additional capital to buy more equipment. BEV had requested help from SCOR to assist it with developing a strategic plan and supporting its request for a loan from a Pittsburgh-based bank. Herb and Ned were very experienced executives but they had no direct experience in the transportation and supply chain business. So they contacted a nearby state university with a large and well-known Supply Chain and Logistics department. The department had a program whereby its students could be assigned a business-related project for course credit, and it would be supervised by a faculty member. CASE QUESTIONS 1. You have been chosen to work on the BEV project, which will require you to answer the following questions: a. What are the major opportunities and issues trucking companies face presently? b. What insights can you provide to help BEV mitigate some or all of the issues?

QUESTION 1

1. True or False: In the last half of the 19th century, at least 25% of the immigrants each year were German. In 2015, about 14.2% of Americans traced their ancestors to Germany, more than any other country.

   True

   False

QUESTION 3

1. "________________" is the process in which formerly distinct and separate groups come to share a common culture and merge socially.

   	a.	Assimilation
   	b.	Pluralism
   	c.	Stereotyping
   	d.	Immigration
   	e.	None of the above.

QUESTION 4

1. "__________________________" are immigrants who intend to return to their country of origin.

   	a.	Ethclass
   	b.	Peasants
   	c.	Proletariat
   	d.	Sojourners
   	e.	None of the above.

QUESTION 5

1. Upon immigrating to the United States, Mario wrote to his relatives back in his small village in Italy. Upon hearing from Mario, several of his relatives joined him in his new home in the United States. Mario helped these relatives to find jobs, a place to live, and adjust to life in America. In turn, these new arrivals would send word back to the village. As more people from the village learned about America from Mario and others, they would immigrate and move to the same neighborhood. Businesses would be started, churches founded, and organizations formed as the old language was spoken and old ways observed.

   This process is an example of how “___________________     __________________” worked.

   	a.	Chain immigration
   	b.	Ethnic succession
   	c.	Geographical distribution
   	d.	Symbolic ethnicity
   	e.	None of the above.

QUESTION 6

1. Anti-Semitism is prejudice or ideological racism directed specifically toward "____________".

   	a.	Catholics
   	b.	Italians
   	c.	Protestants
   	d.	Jews
   	e.	None of the above.

This week’s case is Sunrise Medical’s Wheelchair Products, which is in the HBSP case packet. The case permits the application of ideas of industry analysis and competitive positioning to the US wheelchair industry in the mid-1990s. This case examines a more traditional looking industry that is also involved with the health care sector to show how health care issues influence the industry analysis in the context of an industry related to health care. The discussion questions for the case are listed below.

1. Is the U.S. wheelchair industry an attractive or unattractive industry in 1993?  What are the structural conditions affecting attractiveness?  Have these been changing?
2. Does the Quickie division have a competitive advantage?
3. Should Chandler allow Guardian to introduce a lightweight standard wheelchair?  How will Invacare react?
4. How will industry structure be affected if Sunrise introduces the lightweight standard wheelchair?

Part 1: Consider the following scenarios and answer with explaination and graphs.

a.) Consider the long-run labor market for married female workers. In the 1950s, many employers had a policy of not hiring married women (and of even firing female employees when they married). How would the end of such policies affect the normal real wage and employment of married women working outside the home?

b.) The rate of growth of potential output per person appears to have slowed down noticeably (from roughly 2% per year in the 1990s and early 2000s to less than 1% per year in recent years). Use the aggregate production function to discuss the role that changes in the normal employment-to-population ratio could have played in this slowdown. What are other possible sources of this change?