Coronado Inc. manufactures cycling equipment. Recently, the vice president of operations of the company has requested construction of a new plant to meet the increasing demand for the company’s bikes. After a careful evaluation of the request, the board of directors has decided to raise funds for the new plant by issuing $3,492,700 of 10% term corporate bonds on March 1, 2020, due on March 1, 2035, with interest payable each March 1 and September 1, with the first interest payment on September 1st, 2020. At the time of issuance, the market interest rate for similar financial instruments is 8%.

As the controller of the company, determine the selling price of the bonds. (Round factor values to 5 decimal places, e.g. 1.25124 and final answer to 0 decimal places, e.g. 458,581.)

On 1/1/2018, Husky, Inc. issues $20,000,000 of five-year, 1% convertible bonds at par. Each $1,000 bond in the issue converts to 20 shares of $1 par value common stock at the option of the bondholder beginning two years after issue. The market price of Husky’s common stock on the date of issue is $54 and interest is paid annually each December 31. Assume that half of the bonds were converted on 1/1/2020 and at that date the carrying value (net book value) of the entire issue of convertible bonds is $19,000,000.

Required:

A. Prepare the journal entry for issuance of Husky’s convertible bonds on 1/1/2018. (3 points)

B. Prepare the journal entry for conversion of half of the convertible bonds on 1/1/2020. (4 points)

The following are the weekly losses of work-hours due to accidents in 10 industrial plants before and after a certain safety program were put into operation

a- Is the assumption that the difference in weekly losses of work-hours is normally distributed reasonable?

b- Test whether the safety program is effective.

Use α=0.05. c- Find a 95% confidence interval on the difference in mean weekly losses of work-hours.

The management of Discount Furniture, a chain of discount furniture stores in the Northeast, designed an incentive plan for salespeople. To evaluate this innovative plan, 14 salespeople were selected at random, and their weekly incomes before and after the plan were recorded. (use the six steps of hypothesis testing)

An SAT prep course claims to improve the test scores of students. The table shows the critical reading scores for 10 students the first two times they took the SAT, once before for the course, and once after the course. Test the company’s claim at α = 0.01. Extra columns provided for calculations.
Student Score
Before
Score After 1 308 400 2 456 524 3 352 409 4 433 491 5 306 348 6 471 583 7 422 451 8 370 408 9 320 391 10 418 450

To improve worker satisfaction a company institutes an exercise program for its workers. It measures 10 randomly selected workers’ satisfaction levels before and then after the program is instituted. Does the exercise program significantly improve their worker's job satisfaction? State the hypotheses, check conditions, compute test statistics, standardize and give degrees of freedom. Include a sketch, state the p-value followed by your conclusion.

Before

34

28

29

45

26

27

24

15

15

27

After

33

36

50

41

37

41

39

21

20

37

. Knowledge of basic statistical concepts of 10 randomly selected engineers was measured on a scale of 100, before and after a short course in statistical quality control. This resulted in the data tabled below.

Researchers believe that the short course will improve test scores. They will analyze this with a hypothesis test. Give the details of the test

You want to study an agricultural treatment to remove a pest on citrus plants. Suppose you have a citrus farm. The presence of the pest is measured by the productivity of the plant. Suppose that before and after applying the treatment the productivity of 9 plants was measured. Measurements are in numbers of bags and are in the following table:

Find the confidence interval to see if there is an improvement in productivity with the treatment of the pest. Determine with 95% confidence the interval for the average difference in citrus productivity.

A student sits on a rotating stool holding two 2.2-kg objects. When his arms are extended horizontally, the objects are 1.0 m from the axis of rotation and he rotates with an angular speed of 0.75 rad/s. The moment of inertia of the student plus stool is 3.0 kg · m2 and is assumed to be constant. The student then pulls in the objects horizontally to 0.46 m from the rotation axis. (a) Find the new angular speed of the student. (b) Find the kinetic energy of the student before and after the objects are pulled in. before after (c) Where does the energy difference come from/go to?

To improve worker satisfaction a company institutes an exercise program for its workers. It measures 10 randomly selected workers’ satisfaction levels before and then after the program is instituted. Does the exercise program significantly improve their workers job satisfaction? State the hypotheses, check conditions, compute test statistics, standardize and give degrees of freedom. Include a sketch, state the p-value followed by your conclusion.

Before 34 28 29 45 26 27 24 15 15 27

After 33 36 50 41 37 41 39 21 20 37