(b) Determine the proportion of the Revenue Growth data that lies within 1, 2, and 3 standard deviations of the mean. Determine, using the empirical rule, if the Revenue Growth data is approximately normally distributed.

Company Name	Revenue Growth
	(% in last year)
Abercrombie & Fitch Co.	2.7
American Eagle Outfitters	2.5
bebe stores, inc.	10.0
Birks Group Inc	5.3
BJs Wholesale Club Holdings Inc	3.4
Boot Barn Holdings Inc	12.7
Bravada International Ltd.	-4.7
Buckle Inc	-14.9
Burlington Stores Inc	-13.5
Cache Inc	-9.9
Caleres Inc	-10.8
Cato Corp	9.2
Chico's FAS, Inc.	10.4
Childrens Place Inc	-16.0
Christopher & Banks Corporation	8.9
Citi Trends, Inc.	-9.9
Companhia Brasileira de Distribuicao	25.7
Costco Wholesale Corporation	1.6
Designer Brands Inc	-0.2
Destination Maternity Corp	-15.1
Dillard's, Inc.	-2.4
Express, Inc.	-9.9
Foot Locker, Inc.	-0.9
Francesca's Holdings Corp	24.8
Gap Inc	2.4
Genesco Inc.	-3.3
Guess?, Inc.	-4.5
J C Penney Company Inc	-4.5
J.Jill Inc	-5.4
Kohl's Corporation	4.4
L Brands Inc	8.7
Macy's Inc	-8.7
Nordstrom, Inc.	-5.2
PriceSmart, Inc.	0.4
Qingco Inc	-35.8
Ross Stores, Inc.	2.6
RTW Retailwinds Inc	0.1
Sears Holdings Corp	-0.5
Shoe Carnival, Inc.	8.8
Stage Stores Inc	52.4
Stein Mart, Inc.	3.7
Tailored Brands Inc	-4.3
Tandy Leather Factory, Inc.	-9.9
Tilly's Inc	7.2
TJX Companies Inc	3.3
Urban Outfitters, Inc.	0.8
Walmart Inc	-3.5
Zumiez Inc.	-8.1

Determine the proportion of the Revenue Growth data that lies within 1, 2, and 3 standard deviations of the mean. Determine, using the empirical rule, if the Revenue Growth data is approximately normally distributed.

Abercrombie & Fitch Co.	2.7
American Eagle Outfitters	2.5
bebe stores, inc.	10.0
Birks Group Inc	5.3
BJs Wholesale Club Holdings Inc	3.4
Boot Barn Holdings Inc	12.7
Bravada International Ltd.	-4.7
Buckle Inc	-14.9
Burlington Stores Inc	-13.5
Cache Inc	-9.9
Caleres Inc	-10.8
Cato Corp	9.2
Chico's FAS, Inc.	10.4
Childrens Place Inc	-16.0
Christopher & Banks Corporation	8.9
Citi Trends, Inc.	-9.9
Companhia Brasileira de Distribuicao	25.7
Costco Wholesale Corporation	1.6
Designer Brands Inc	-0.2
Destination Maternity Corp	-15.1
Dillard's, Inc.	-2.4
Express, Inc.	-9.9
Foot Locker, Inc.	-0.9
Francesca's Holdings Corp	24.8
Gap Inc	2.4
Genesco Inc.	-3.3
Guess?, Inc.	-4.5
J C Penney Company Inc	-4.5
J.Jill Inc	-5.4
Kohl's Corporation	4.4
L Brands Inc	8.7
Macy's Inc	-8.7
Nordstrom, Inc.	-5.2
PriceSmart, Inc.	0.4
Qingco Inc	-35.8
Ross Stores, Inc.	2.6
RTW Retailwinds Inc	0.1
Sears Holdings Corp	-0.5
Shoe Carnival, Inc.	8.8
Stage Stores Inc	52.4
Stein Mart, Inc.	3.7
Tailored Brands Inc	-4.3
Tandy Leather Factory, Inc.	-9.9
Tilly's Inc	7.2
TJX Companies Inc	3.3
Urban Outfitters, Inc.	0.8
Walmart Inc	-3.5
Zumiez Inc.	-8.1

Orlando advertised for bids for the purchase of $3 million principal amount of Waste Water Revenue Bonds. Bonds will be delivered on April 1, 2021, and the interest will be paid on April 1st of the following years. The bonds mature as follows:
Maturity Date
Amount ($)
4/1/2025
100,000
4/1/2026
100,000
4/1/2027
100,000
4/1/2028
100,000
4/1/2029
200,000
4/1/2030
200,000
4/1/2031
250,000
4/1/2032
250,000
4/1/2033
250,000
4/1/2034
700,000
4/1/2035
750,000
The City received three competing bids for the Waste Water Revenue Bonds. The three offers are as follows:
From Rogue Securities:
• The City receives $3.5 million dollars
• The Interest Rates for the serial bonds with maturities:
o 2025 through 2030, 5.50 percent
o 2031 through 2035, 6.00 percent
From Johnson-Miller:
• The City Receives $3 million dollars
• The Interest Rates for the serial bonds with maturities:
o 2025 through 2027, 4.35 percent
o 2028 through 2032, 5.25 percent
o 2033 through 2035, 6.50 percent
From Shostak Corp:
• The City receives $2.9 million dollars
• The Interest rates for the serial bonds with maturities:
o 2025 to 2032, 5.75 percent
o 2033 to 2035, 6.25 percent
For each bid, compute the net interest cost (NIC) and the true interest cost (TIC). Which bid is more advantageous for the city?

A large supermarket carries four qualities of ground beef. Customers are believed to purchase these four varieties with probabilities of 0.13, 0.27, 0.14, and 0.46, respectively, from the least to most expensive variety. A sample of 480 purchases resulted in sales of 48, 148, 74, and 210 of the respective qualities. Does this sample contradict the expected proportions? Use α = 0.05.

(a) Find the test statistic. (Round your answer to two decimal places.)


(ii) Find the p-value. (Round your answer to four decimal places.)

A program for generating random numbers on a computer is to be tested. The program is instructed to generate 100 single-digit integers between 0 and 9. The frequencies of the observed integers were as follows. At the 0.05 level of significance, is there sufficient reason to believe that the integers are not being generated uniformly?

Integer	0	1	2	3	4	5	6	7	8	9
Frequency	10	8	6	8	13	10	7	11	14	13

(a) Find the test statistic. (Round your answer to two decimal places.)


(ii) Find the p-value. (Round your answer to four decimal places.)

Describe the state of the U.S. Economy for the years between 2006 and now in terms of macroeconomic measures discussed in the course (GDP, unemployment, and inflation rates).

If Google's 2006 entry into the Chinese search engine market was a good (or bad) philosophy based decision, is withdrawal necessarily a bad (or good) decision?

On January 1, 2021, Red Flash Photography had the following balances: Cash, $31,000; Supplies, $9,900; Land, $79,000; Deferred Revenue, $6,900; Common Stock $69,000; and Retained Earnings, $44,000. During 2021, the company had the following transactions:

1.		February		15		Issue additional shares of common stock, $39,000.
2.		May		20		Provide services to customers for cash, $54,000, and on account, $49,000.
3.		August		31		Pay salaries to employees for work in 2021, $42,000.
4.		October		1		Paid for one year's rent in advance, $31,000.
5.		November		17		Purchase supplies on account, $41,000.
6.		December		30		Pay dividends, $3,900.

The following information is available on December 31, 2021:

1. Employees are owed an additional $5,900 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $6,900 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.

1. Record each of the transactions listed above in the 'General Journal' tab. Review the 'General Ledger' and the 'Trial Balance' tabs to see the effect of the transactions on the account balances.

2. Record the adjusting entries in the 'General Journal' tab.

3. Review the adjusted 'Trial Balance' as of December 31, 2021.

4. Prepare an income statement for the year ended December 31, 2021, in the 'Income Statement' tab.

5. Prepare the statement of Stockholder's Equity for the year ended December 31, 2021, in the 'Income Statement' tab.

6. Prepare a classified balance sheet as of December 31, 2021 in the 'Balance Sheet' tab.

7. Record the closing entries in the 'General Journal' tab.

[The following information applies to the questions displayed below.]
  
On January 1, 2021, Red Flash Photography had the following balances: Cash, $25,000; Supplies, $9,300; Land, $73,000; Deferred Revenue, $6,300; Common Stock $63,000; and Retained Earnings, $38,000. During 2021, the company had the following transactions:

1.		February		15		Issue additional shares of common stock, $33,000.
2.		May		20		Provide services to customers for cash, $48,000, and on account, $43,000.
3.		August		31		Pay salaries to employees for work in 2021, $36,000.
4.		October		1		Purchase rental space for one year, $25,000.
5.		November		17		Purchase supplies on account, $35,000.
6.		December		30		Pay dividends, $3,300.

The following information is available on December 31, 2021:

1. Employees are owed an additional $5,300 in salaries.
2. Three months of the rental space has expired.
3. Supplies of $6,300 remain on hand.
4. All of the services associated with the beginning deferred revenue have been performed.

Required:

1. Record the transactions that occurred during the year. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)
  

2. Record the adjusting entries at the end of the year. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations.)
  

3. Prepare an adjusted trial balance.

4. Prepare an income statement, statement of stockholders’ equity, and classified balance sheet.

5. Prepare closing entries. (If no entry is required for a particular transaction/event, select "No Journal Entry Required" in the first account field.)

Case Study

On January 17, 2008, TJX Companies,

Inc., a leading retailer in the field of clothing

and home fashions which operates

stores domestically and internationally,

announced that the organization had

experienced an unauthorized intrusion

of its computer systems.1 Customer

information, including credit card, debit

card, and driver’s license numbers,

had been compromised. This intrusion

had been discovered in December

of 2006, and it was thought that data

and information as far back as 2003 had

been accessed and/or stolen. At the

time, approximately 45.6 million credit

card numbers had been stolen. In October

of 2007, the number rose to 94

million accounts.2 This has become the

largest known credit card theft or unauthorized

intrusion in history.

Because of the lax security systems at

TJX, the hackers had an open doorway to the company’s entire computer system.

In 2005, hackers used a laptop outside

of one of TJX’s stores in Minnesota and

easily cracked the code to enter into the

WiFi network. Once in, the hackers were

able to access customer databases at

the corporate headquarters in Framingham,

Massachusetts. The hackers gained

access to millions of credit card and debit

card numbers, information on refund

transactions, and customer addresses

and phone numbers. The hackers reportedly

used the stolen information to purchase

over $8 million in merchandise.3

TJX used an outdated WEP (wired equivalent

privacy) to secure its networks. In

2001, hackers were able to break the

code of WEPs, which made TJX highly

vulnerable to an intrusion. (Similar data

breaches have occurred within the past

few years at the firms ChoicePoint and

CardSystems Solutions.) In August of

2007, a Ukrainian man, Maksym Yastremskiy,

was arrested in Turkey as a

potential suspect in the TJX case. According

to police officials, Yastremskiy

is “one of the world’s important and

well-known computer pirates.”4 He led

two other men in the scheme.5

Even though the intrusion was discovered

in December of 2006, the company

did not publicize it until a month later.

Consumers felt that they should have

been notified of the breach once it was

discovered. However, TJX complied with

law enforcement and kept the information

confidential until it was told it could

notify the public. Retail companies such

as TJX that use credit card processing

are required to comply with the Payment

Card Industry Data Security Standard

(PCI DSS). The PCI DSS is a set of requirements

with the purpose of maximizing

the security of credit and debit card

transactions. A majority of firms have not

complied with this standard, as was the

case with TJX Companies.

A number of stakeholders were involved

in this break-in: consumers, who were put

at great risk; banks; TJX Companies (its

shareholders, management, employees,

and other internal parties who did business

with and were invested in the firm);

the credit card company; the law enforcement

and justice systems; the public;

other retail firms; and the media, to name

a few. CEO Carol Meyrowitz took an active

role in informing the public in statements

on the company’s Web sites and

through the media about the company’s

responsibility and obligations to its stakeholders

during and after the investigation.

TJX also contacted various agencies to

help with the investigation. A Web site

and hotline were established to answer

customer questions and concerns.

The intrusion cost TJX approximately

$118 million in after-tax cash charges

and $21 million in future charges. Although

TJX incurred substantial legal,

reimbursement, and improvement

costs, the company’s pre-tax sales

were not negatively affected. Sales during

the second quarter of fiscal year

2008 increased compared to second

quarter sales from fiscal year 2007.6

At the end of 2007, TJX reached a settlement

agreement with six banks and

bankers’ associations in response to a

class action lawsuit against the company.

7 In the spring of 2008, TJX settled

in separate agreements with Visa

($40.9 million with 80% acceptance)

and MasterCard International (a maximum

of $24 million with 90% minimum

acceptance). There was almost full acceptance

of the alternative recovery offers

by eligible MasterCard accounts.8

Note that those issuers who accept the

agreements and terms release and indemnify

TJX” and its acquiring banks on

their claims, the claims of their affiliated

issuers, and those of their sponsored

issuers as MasterCard issuers related

to the intrusion. That includes claims

in putative class actions in federal and

Massachusetts state courts.“9

Affected customers were reimbursed

for costs such as replacing their driver’s

license and other forms of identification

and were offered vouchers at TJX stores

and free monitoring of their credit cards

for three years. Customer discontent was

reportedly expressed after the intrusion;

however, customer loyalty returned,10 as

was evidenced in sales numbers. 4.1 MANAGING CORPORATE SOCIAL RESPONSIBILITY

IN THE MARKETPLACE

“Corporate social responsibility” (CSR) involves an organization’s duty and

obligation to respond to its stakeholders’ and the stockholders’ economic,

legal, ethical, and philanthropic concerns and issues.11 This definition

encompasses both the social concerns of stakeholders and the economic

and corporate interests of corporations and their stockholders. Generally,

society cannot function without the economic, social, and philantropic

benefits that corporations provide. Leaders in corporations who use

a stakeholder approach commit to serving broader goals, in addition to

economic and financial interests, of those whom they serve, including the

public.

Managing corporate social responsibility in the marketplace with multiple

stakeholder interests is not easy. As discussed in Chapter 3, ethics

at the personal and professional levels requires reasoned and principled

thinking, as well as creativity and courage. When ethics and social responsibility

escalate to the corporate level, where companies must make

decisions that affect governments, competitors, communities, stockholders,

suppliers, distributors, the public, and customers (who are also consumers),

moral issues increase in complexity, as the TJX security breach

opening case illustrated. For organizational leaders and professionals, the

moral locus of authority involves not only individual conscience but also

corporate governance and laws, collective values, and consequences that

affect millions of people locally, regionally, and globally.

In the opening case, the TJX executives had to deal not only with

their own customers, but with banks (in a class action suit), credit card

companies, the media, competitors, and a network of suppliers and distributors—

as well as their own reputation. What may have seemed like

a routine technical security problem turned into the largest-known credit

card theft/unauthorized intrusion in history. Had the CEO not stepped in

and became a responsible spokesperson and decision maker for the company,

customers may not have responded in kind.

The basis of corporate social responsibility in the marketplace begins

with a question: What is the philosophical and ethical context from which

corporate social responsibilty and ethical decisions are made? For example,

not everyone is convinced that businesses should be as concerned about

ethics and social responsibility as they are about profits. Many believe

that ethics and social responsibility are important, but not as important as a

corporation’s performance. This classical debate—and seeming dichotomy—

between performance, profitability, and “doing the right thing” continues to

surface not only with regard to corporate social responsibility, but also in political

parties and debates over personal and professional ethics. The roots of

corporate social responsibility extend to the topic of what a “free-market” is

and how corporations should operate in free markets. Stated another way,

does the market sufficiently discipline and weed out inefficient “bad apples”

and wrongdoers, thereby saving corporations the costs of having to support

“soft” ethics programs?

A security breach in a technological world is one of the biggest issues facing companies today. Cyber security is a critical consideration for any business but time and time again businesses are faced with the fear of hacking into their customers' information. Review the TJX case in the textbook. What are the ethical issues impacting the TJX case? What are the long term effects and how might this company win back trust?

Diego Company manufactures one product that is sold for $74 per unit in two geographic regions—the East and West regions. The following information pertains to the company’s first year of operations in which it produced 45,000 units and sold 40,000 units.

Variable costs per unit:
Manufacturing:
Direct materials	$	24
Direct labor	$	18
Variable manufacturing overhead	$	3
Variable selling and administrative	$	5
Fixed costs per year:
Fixed manufacturing overhead	$	585,000
Fixed selling and administrative expense	$	423,000

The company sold 30,000 units in the East region and 10,000 units in the West region. It determined that $190,000 of its fixed selling and administrative expense is traceable to the West region, $140,000 is traceable to the East region, and the remaining $93,000 is a common fixed expense. The company will continue to incur the total amount of its fixed manufacturing overhead costs as long as it continues to produce any amount of its only product.

9. If the sales volumes in the East and West regions had been reversed, what would be the company’s overall break-even point in unit sales?

10. What would have been the company’s variable costing net operating income (loss) if it had produced and sold 40,000 units? You do not need to perform any calculations to answer this question.

11. What would have been the company’s absorption costing net operating income (loss) if it had produced and sold 40,000 units? You do not need to perform any calculations to answer this question.

12. If the company produces 5,000 fewer units than it sells in its second year of operations, will absorption costing net operating income be higher or lower than variable costing net operating income in Year 2?