1. describe what is needed to form longitudinal standing waves
in a slinky and how they are formed.
2. what is the difference between a longitudinal wave and a
standing longitudinal wave. how are standing waves formed?
3. explain how sound waves are propagated through air. are these
longitudinal or transverse waves?
4. describe the motion of individual air molecules at a node and at
an antinode. compare this to the motion of the individual spring
coils at nodes and antinodes when a standing wave is produced in a
slinky.
5. what is the effect of changing the frequency of the sound? does
it change the velocity of the wave? does it change the
wavelength?
6. describe the motion of the individual air molecules at a node and at an antinode. compare this to the motion of the individual spring coils at nodes and antinodes when a standing wave is produced in a slinky.
7. what is the effect of changing the frequency of sound. does it change the velocity of the wave? does it change the wavelength?
8. a person who has just inhaled helium gas speaks with a high pitched voice. discuess why this happens given that your larynx and other parts of you respiratory passage act rather like a resonance tube with you vocal chords producing the necessary energy to vibrate the air.
In: Physics
The Dean of ASBE School of Business is concerned that grades in
the MBA program are distributed appropriately. Too many high grades
or too many low grades would pose a problem. We wish to test the
claim that the mean GPA of ASBE students is smaller than 3.6 at the
.01 significance level.
The null and alternative hypothesis would be:
two-tailed
right-tailed
left-tailed
In: Statistics and Probability
The Dean of ASBE School of Business is concerned that grades in
the MBA program are distributed appropriately. Too many high grades
or too many low grades would pose a problem. We wish to test the
claim that the mean GPA of ASBE students is smaller than 3.3 at the
.005 significance level.
The null and alternative hypothesis would be:
The test is:
left-tailed
two-tailed
right-tailed
Based on a sample of 75 student grades, the sample mean GPA was
3.28 with a standard deviation of 0.02
The test statistic is: (Round to 3 decimals)
Based on this we:
A shareholders' group is lodging a protest against your company.
The shareholders group claimed that the mean tenure for a chief
exective office (CEO) was at least 9 years. A survey of 59
companies reported in The Wall Street Journal found a sample mean
tenure of 7.3 years for CEOs with a standard deviation of s=s= 5
years (The Wall Street Journal, January 2, 2007). You don't know
the population standard deviation but can assume it is normally
distributed.
You want to formulate and test a hypothesis that can be used to
challenge the validity of the claim made by the group, at a
significance level of α=0.01α=0.01. Your hypotheses are:
Ho:μ=9Ho:μ=9
Ha:μ<9Ha:μ<9
What is the test statistic for this sample?
test statistic = (Report answer accurate to 3 decimal
places.)
What is the p-value for this sample?
p-value = (Report answer accurate to 4 decimal
places.)
The p-value is...
This test statistic leads to a decision to...
As such, the final conclusion is that...
In: Statistics and Probability
A random sample of 28 students at a particular university had a mean age of 22.4 years. If the standard deviation of ages for all university students is known to be 3.1 years ,Find a 90% confidence interval for the mean of all students at that university.
In: Statistics and Probability
Central University of Illinois has a newly appointed president, Catherine Husker. This has been a challenging budget year due to the difficulties of getting a state budget passed in the State Legislature. It appears from all reports that the budget that may get passed will be only 90% of last year’s state appropriations for the University. This means the University will have to cut their own operating budget for next year because of the State’s expected reduction in appropriations to higher education.
Husker just had a meeting with the athletic director of the university, Gareth Connor, to discuss the budget for the athletic department. Central University has been a men’s football and basketball powerhouse for the last several decades. However, the women’s athletic program has had less success. Last year, though, the women’s basketball team was one of the team’s selected to participate in the NCAA Women’s Basketball Competition through an “at-large bid” due to their outstanding season.
Connor and Husker discussed the 2018 Athletic Department budget, which Connor believed was the final draft. The meeting did not go well. In fact, it went terribly. Husker discussed four grave concerns she had about the Athletic Department budget and requested Connor to review and revise the budget in light of her concerns below. Draft II of the budget is due in two weeks time.
Concern 1: The Athletic Department is budgeting a loss of over $3 million. Given the tight fiscal position of the university, this outcome is unacceptable to Husker. A budgeted loss of $1 million is the most she will tolerate for 2018. By 2019 the Athletic Department has to operate with a balanced budget. She tells Connor this is nonnegotiable.
Concern 2: The low allocation of money to the women’s athletic program. Fox Valley News, a tabloid television show, recently ran a program titled “It’s a Man’s World at Central University Athletics’ Program.” Husker said Connor is treating woman athletes as “third-class citizens.”
Concern 3: The low academic performance of the men’s football athletes, many of whom have full scholarships. She notes that the local TV news recently ran an interview with three football-team students, only one of which “exemplified the high academic credentials she wants Central to showcase to the world.” As for the other two students, she calls one student “incoherent” and another “incapable of stringing sentences together.”
Concern 4: The outrageous salary paid to “Bull” Mason, the football coach. She notes it is twice that of the highest paid academic person on campus, a Nobel Prize winner. Moreover, Mason receives other payments from his “Football the Central Way” summer program for high school students.
Below is Draft I of the Athletic Department budget:
Central University 2017 Athletic Department Budget ($ millions)
Revenues:
Men’s athletic programs $10.350
Women’s athletic programs 0.780
Other (endowment income, gifts) 3.400 $14.530
Costs:
Men’s athletic programs $11.040
Women’s athletic programs 2.800
Other (non-assigned to programs)* 3.700 17.540
Operating Income $( 3.010)
*Other non-assigned programs include rugby, soccer and volleyball
Men’s Athletic Programs:
Football Basketball Swimming Other Total
Revenues $8.600 $1.500 $0.100 $0.150 $10.350
Costs 7.400 2.700 0.300 0.640 11.040
Full Scholarships 37 21 6 4 68
Women’s Athletic Programs:
Basketball Swimming Other Total
Revenues $0.600 $0.080 $0.100 $ 0.780
Costs 1.800 0.200 0.800 2.800
Full Scholarships 11 4 2 17
REQUIRED:
Connor will be holding a half-day meeting with key officials of the Athletic Department (of which your team are some of these key officials) to discuss the university president’s concerns. In order for your team of officials to be prepared to discuss the concerns of the president at this meeting, please answer the following questions prior to the meeting.
Questions:
Who are the stakeholders? (Worth 4 pts.)
The Athletic Department is operating at a loss. What are some of the ways the Department can increase revenues? Are there any potential pitfalls or problems with any of your ideas? (Worth 6 pts.)
In: Finance
Central University of Illinois has a newly appointed president, Catherine Husker. This has been a challenging budget year due to the difficulties of getting a state budget passed in the State Legislature. It appears from all reports that the budget that may get passed will be only 90% of last year’s state appropriations for the University. This means the University will have to cut their own operating budget for next year because of the State’s expected reduction in appropriations to higher education.
Husker just had a meeting with the athletic director of the university, Gareth Connor, to discuss the budget for the athletic department. Central University has been a men’s football and basketball powerhouse for the last several decades. However, the women’s athletic program has had less success. Last year, though, the women’s basketball team was one of the team’s selected to participate in the NCAA Women’s Basketball Competition through an “at-large bid” due to their outstanding season.
Connor and Husker discussed the 2020 Athletic Department budget, which Connor believed was the final draft. The meeting did not go well. In fact, it went terribly. Husker discussed four grave concerns she had about the Athletic Department budget and requested Connor to review and revise the budget in light of her concerns below. Draft II of the budget is due in two weeks time.
Concern 1: The Athletic Department is budgeting a loss of over $3 million. Given the tight fiscal position of the university, this outcome is unacceptable to Husker. A budgeted loss of $1 million is the most she will tolerate for 2020. By 2021 the Athletic Department has to operate with a balanced budget. She tells Connor this is nonnegotiable.
Concern 2: The low allocation of money to the women’s athletic program. Fox Valley News, a tabloid television show, recently ran a program titled “It’s a Man’s World at Central University Athletics’ Program.” Husker said Connor is treating woman athletes as “third-class citizens.”
Concern 3: The low academic performance of the men’s football athletes, many of whom have full scholarships. She notes that the local TV news recently ran an interview with three football-team students, only one of which “exemplified the high academic credentials she wants Central to showcase to the world.” As for the other two students, she calls one student “incoherent” and another “incapable of stringing sentences together.”
Concern 4: The outrageous salary paid to “Bull” Mason, the football coach. She notes it is twice that of the highest paid academic person on campus, a Nobel Prize winner. Moreover, Mason receives other payments from his “Football the Central Way” summer program for high school students.
Below is Draft I of the Athletic Department Budget:
Central University 2020 Athletic Department Budget ($ millions)
Revenues:
Men’s athletic programs $10.350
Women’s athletic programs 0.780
Other (endowment income, gifts) 3.400 $14.530
Costs:
Men’s athletic programs $11.040
Women’s athletic programs 2.800
Other (non-assigned to programs)* 3.700 17.540
Operating Income $( 3.010)
*Other non-assigned programs include rugby, soccer and volleyball
Men’s Athletic Programs:
Football Basketball Swimming Other Total
Revenues $8.600 $1.500 $0.100 $0.150 $10.350
Costs 7.400 2.700 0.300 0.640 11.040
Full Scholarships 37 21 6 4 68
Women’s Athletic Programs:
Basketball Swimming Other Total
Revenues $0.600 $0.080 $0.100 $ 0.780
Costs 1.800 0.200 0.800 2.800
Full Scholarships 11 4 2 17
REQUIRED:
Connor will be holding a half-day meeting with key officials of the Athletic Department (of which your team are some of these key officials) to discuss the university president’s concerns. In order for your team of officials to be prepared to discuss the concerns of the president at this meeting, please answer the following questions prior to the meeting.
Questions:
In: Accounting
Burnt Company prints textbooks for sale to colleges. Currently, the company is operating at 80 percent of capacity. A large university has offered to buy 1,200 textbooks as long as the cover of the book can be customized with the university’s logo. While the normal selling price is $175 per textbook, the university has offered only $125 per textbook. Burnt Company can accommodate the special order without affecting current sales.
Unit cost information for a textbook is as follows:
Direct Materials $ 9.31
Direct Labor 9.65
Variable Overhead 6.43
Fixed Overhead 47.00
Total Unit Cost $72.39
Fixed overhead is $822,000 per year and will not be affected by the special order. Normally, there is a commission of 3.5 percent of price; this will not be paid on the special order. The special order will require additional fixed costs of $42,550 for the design and setup of the logo on each textbook.
Part A List the alternatives being considered.
Part B Which alternative is more cost effective and by how much?
Part C What if Burnt Company was operating at capacity and accepting the special order would require rejecting an equivalent number of textbooks sold to existing customers? Which alternative would be better? Explain.
In: Accounting
Consider giving one dollar to a poor person, keeping in mind that among a country’s poor people, some have much lower incomes than others. Consider each of the aggregate poverty measures we discussed in the class and assume that per capita household income is the measure of individual-level well-being they summarize. For each measure, discuss how the impact on the measure would differ depending on whether the additional dollar were given to a person who is just barely poor (with income just below the poverty line) or to a person who is very poor: (v) the P2 measure.
In: Economics
Risk Assessment- Exercise #2 Social Konnections Inc. (SKI or the “Company”) is a global Internet company that runs Social Konnections, a large social media networking Web site. SKI has experienced steep growth since its launch in 2005, and the Company went public in 2007. SKI currently has over 500 million active users who visit the site to connect with others, express themselves, and play games. Last year, substantially all of SKI’s revenue came from advertisers who market their products and services to SKI’s active users through advertisements placed on the Web site or its various mobile platforms. The founder of the company serves as the CEO and is also on the chairman of the board of directors. The CFO is also one of the co-founders of the company. Both have been serving in these roles since 2005. In Q1 of the current fiscal year, SKI acquired Corporate Collaborations (CC), an entity that manages private and public social media networks for corporations. CC’s customers are primarily national and global companies whose employees connect over its platform. In addition to hosting private social media networks for corporations, CC provides services to develop the networks it manages. CC’s revenues are earned through the performance of multiyear revenue contracts with its customers. In the current year, CC is expected to produce approximately 20 percent of SKI’s consolidated revenue. SKI’s investors are focused on the growth prospects of the Company’s legacy open social media platform operations and its new corporate revenue unit. The Company’s MD&A disclosures include (1) various user and revenue metrics to help financial statement users assess its traditional operations and (2) backlog information to help users assess CC’s operations. Advertising Revenue SKI creates advertising space on its Web site and mobile applications and sells the space to advertisers either directly, or through advertising agencies. According to Mr. Cook, the amount an advertiser pays is dependent on the number of views the ad receives or the number of user clicks (depending on the type of advertisement defined in the underlying contract) and the revenue is recorded in the period in which the views or clicks are made. Ms. Drew has learned that simple advertising can be purchased directly from SKI through SKI’s advertising Web site at standard rates, with the advertisements and terms input directly into the Company’s ad delivery platform. However, most advertising revenue is generated directly through the advertising sales team, which has the ability to help advertisers develop more sophisticated advertising campaigns. Management has established minimum pricing and volume thresholds for these advertisements; however, the sales staff is given significant latitude in securing contracts with customers. Extra commissions are paid to sales individuals who sign longer-term contracts that meet minimum revenue targets. Once a contract is signed, the ad development department creates the ad content and obtains the customer’s approval. The approved ad and the contract are electronically sent to the ad scheduling department, and the advertisement is uploaded into the Company’s ad delivery platform. The ad delivery platform is a robust system and is designed to capture all the nuances associated with the contract. For example, an advertiser may wish to have its ads displayed only to users whose IP addresses are from a specific geographic location, or the contract may be structured to provide the advertiser with variable pricing or incentives (such as a set of free advertisements) once a certain level has been paid for. In summary, the delivery platform captures all the relevant pricing information associated with the contract to allow for real-time revenue recognition according to the terms of the contract. After the contract is entered into the system, a summary of the contract setup is provided to the sales manager that worked with the customer. The sales manager then reviews the contract setup for accuracy. The Company’s ad delivery platform automatically tracks the advertising activity each day and reports the activity to its customers, who are then billed weekly for the aggregate ad activity. Ms. Drew’s Concern Ms. Drew is concerned about several things she has learned regarding the appropriateness of management’s revenue recognition policies. Financial Statements Balance Sheet: Account Prior year (1 year ago)** Two years ago Assets* $100m $80m Liabilities $40m $30m Equity $60m $50m Revenue $30m $18 Expenses $22m $19 Net Income $8m ($1m) loss *Assets consist primarily of cash, land/building, patents, goodwill, and other assets. ** As you plan your audit this is the latest financial information available. Controls The Company’s has various controls in place. The CFO performs a checklist on a monthly basis to review the performance of the company. The CFO reports to the CEO every quarter. The CEO reports to the chairman of the board of directors once a year before the financial statements are prepared and released to the public. The company has over 10 thousand employees around the world, of which 4 thousand work at the headquarters. All employees receive the company’s code of ethics that was prepared in 2005 when the company was founded. The CEO was in recent trouble when he posted controversial messages on the social platform that offended people of a certain group. The company has One hundred different controls across the company and across the world related to operations of the company and revenue. The company uses 10 different IT systems as the company is growing quickly it has had to adopt and adds new systems whenever they are needed. The leaders of one of the main divisions recently left to go work for Facebook, and has not been replaced for the last 4 months. Controls have changed a lot since last year because the company is so dynamic and the environment is so fast paced. Employees are always trying to keep up with the new systems and new controls. Audit Because of SKI’s continued growth, the audit committee has requested that the Company choose a new audit firm with experience in auditing public technology companies. Kristine Drew, a senior auditor, is the in-charge accountant on the proposal and planning of the SKI audit. In addition to her supervisory and administrative responsibilities, Ms. Drew is responsible for auditing revenue and determining the risk assessment for the audit. Ms. Drew has read the Company’s disclosed accounting policies and is interviewing the revenue controller, Bill Cook, and various sales personnel to develop in-depth process flow documentation that will serve as the basis for the team’s risk assessment. Required: 1. What would you set Audit risk, Control Risk, Inherent Risk, and Detection risk? (Very low, low, medium, or high) 2. Are there are significant or fraud risks that you have identified? (If any why are they fraud or significant risks?) 3. What other information do you need to plan your audit approach? Where would you get this information from? For each piece of information indicate where you might receive it from and how? (ex: who else is on the board of directors- obtained through inquiry.) 4. What benchmark would you use to calculate materiality? Why? (ex: revenue, EBITDA, Equity, Assets, etc) 5. Using the benchmark and guidance in the book calculate “overall materiality” for your audit? (ex: 8% of Equity ($60m)= $2.4m). 6. For Revenue what assertions are the most important for you to test? 7. For Revenue what are your concerns with each of those assertions based on the information above? 8. What are the things about testing revenue that you are concerned about (specifically what parts of the company’s process if any concern you)? (Example: An employee could steal money from the bank account, or revenue could be modified in the accounting software by an employee.) (Focus on the actual real process for the company described above to make this determination.) 9. For your audit approach would you choose to test controls or primarily perform substantive procedures? If so what would be your mix of control testing to substantive testing? (ex: 50% controls, and 50% substantive) 10. Would you accept this audit? If not why not?
In: Accounting
Risk Assessment- Exercise #1
Social Konnections Inc. (SKI or the “Company”) is a global Internet company that runs Social Konnections, a large social media networking Web site. SKI has experienced steep growth since its launch in 2005, and the Company went public in 2007. SKI currently has over 500 million active users who visit the site to connect with others, express themselves, and play games.
Last year, substantially all of SKI’s revenue came from advertisers who market their products and services to SKI’s active users through advertisements placed on the Web site or its various mobile platforms.
The founder of the company serves as the CEO and is also on the chairman of the board of directors. The CFO is also one of the co-founders of the company. Both have been serving in these roles since 2005.
In Q1 of the current fiscal year, SKI acquired Corporate Collaborations (CC), an entity that manages private and public social media networks for corporations. CC’s customers are primarily national and global companies whose employees connect over its platform. In addition to hosting private social media networks for corporations, CC provides services to develop the networks it manages. CC’s revenues are earned through the performance of multiyear revenue contracts with its customers. In the current year, CC is expected to produce approximately 20 percent of SKI’s consolidated revenue.
SKI’s investors are focused on the growth prospects of the Company’s legacy open social media platform operations and its new corporate revenue unit. The Company’s MD&A disclosures include (1) various user and revenue metrics to help financial statement users assess its traditional operations and (2) backlog information to help users assess CC’s operations.
Advertising Revenue
SKI creates advertising space on its Web site and mobile applications and sells the space to advertisers either directly, or through advertising agencies. According to Mr. Cook, the
amount an advertiser pays is dependent on the number of views the ad receives or the number of user clicks (depending on the type of advertisement defined in the underlying contract) and the revenue is recorded in the period in which the views or clicks are made.
Ms. Drew has learned that simple advertising can be purchased directly from SKI through SKI’s advertising Web site at standard rates, with the advertisements and terms input directly into the Company’s ad delivery platform. However, most advertising revenue is generated directly through the advertising sales team, which has the ability to help advertisers develop more sophisticated advertising campaigns. Management has established minimum pricing and volume thresholds for these advertisements; however, the sales staff is given significant latitude in securing contracts with customers. Extra commissions are paid to sales individuals who sign longer-term contracts that meet minimum revenue targets.
Once a contract is signed, the ad development department creates the ad content and obtains the customer’s approval. The approved ad and the contract are electronically sent to the ad scheduling department, and the advertisement is uploaded into the Company’s ad delivery platform. The ad delivery platform is a robust system and is designed to capture all the nuances associated with the contract. For example, an advertiser may wish to have its ads displayed only to users whose IP addresses are from a specific geographic location, or the contract may be structured to provide the advertiser with variable pricing or incentives (such as a set of free advertisements) once a certain level has been paid for. In summary, the delivery platform captures all the relevant pricing information associated with the contract to allow for real-time revenue recognition according to the terms of the contract. After the contract is entered into the system, a summary of the contract setup is provided to the sales manager that worked with the customer. The sales manager then reviews the contract setup for accuracy.
The Company’s ad delivery platform automatically tracks the advertising activity each day and reports the activity to its customers, who are then billed weekly for the aggregate ad activity.
Ms. Drew’s Concern
Ms. Drew is concerned about several things she has learned regarding the appropriateness of management’s revenue recognition policies.
Financial Statements
Balance Sheet:
|
Account |
Prior year (1 year ago)** |
Two years ago |
|
Assets* |
$100m |
$80m |
|
Liabilities |
$40m |
$30m |
|
Equity |
$60m |
$50m |
|
Revenue |
$30m |
$18 |
|
Expenses |
$22m |
$19 |
|
Net Income |
$8m |
($1m) loss |
*Assets consist primarily of cash, land/building, patents, goodwill, and other assets.
** As you plan your audit this is the latest financial information available.
Controls
The Company’s has various controls in place. The CFO performs a checklist on a monthly basis to review the performance of the company. The CFO reports to the CEO every quarter. The CEO reports to the chairman of the board of directors once a year before the financial statements are prepared and released to the public.
The company has over 10 thousand employees around the world, of which 4 thousand work at the headquarters. All employees receive the company’s code of ethics that was prepared in 2005 when the company was founded. The CEO was in recent trouble when he posted controversial messages on the social platform that offended people of a certain group. The company has One hundred different controls across the company and across the world related to operations of the company and revenue.
The company uses 10 different IT systems as the company is growing quickly it has had to adopt and adds new systems whenever they are needed.
The leaders of one of the main divisions recently left to go work for Facebook, and has not been replaced for the last 4 months.
Controls have changed a lot since last year because the company is so dynamic and the environment is so fast paced. Employees are always trying to keep up with the new systems and new controls.
Audit
Because of SKI’s continued growth, the audit committee has requested that the Company choose a new audit firm with experience in auditing public technology companies.
Kristine Drew, a senior auditor, is the in-charge accountant on the proposal and planning of the SKI audit. In addition to her supervisory and administrative responsibilities, Ms. Drew is responsible for auditing revenue and determining the risk assessment for the audit.
Ms. Drew has read the Company’s disclosed accounting policies and is interviewing the revenue controller, Bill Cook, and various sales personnel to develop in-depth process flow documentation that will serve as the basis for the team’s risk assessment.
Required:
In: Finance