One of the major measures of the quality of service provided by any organization is the speed with which it responds to customer complaints. A large family-held department store selling furniture and flooring, including carpet, had undergone a major expansion in the past several years. In particular, the flooring department had expanded from 2 installation crews to an installation supervisor, a measurer, and 15 installation crews. The store had the business objective of improving its response to complaints. The variable of interest was defined as the number of days between when the complaint was made and when it was resolved. Data were collected from 40 complaints that were made in the past year (furniture2.xlsx). (a) The installation supervisor claims that the mean number of days between the receipt of a complaint and the resolution of the complaint is 30 days. To test the claim, build null and alternative hypotheses (for a two-tail test). (b) To conduct a two-tail t test based on the hypotheses in (a), identify the rejection regions (two sides) given the 99% critical level. (c) Using the given data, compute the test statistic for the t test. (d) At the 0.01 level of significance, should the claim be rejected (i.e., the mean number of days is different from 30)? In the critical-value approach, what is your conclusion based on (b) and (c)? Explain. (e) Using the test statistic in (c), determine the p-value for the t test. (f) In the p-value approach, what is your conclusion based on (e)? Explain.
| Days |
| 65 |
| 43 |
| 35 |
| 137 |
| 31 |
| 27 |
| 152 |
| 22 |
| 123 |
| 81 |
| 74 |
| 27 |
| 11 |
| 19 |
| 126 |
| 110 |
| 110 |
| 29 |
| 61 |
| 35 |
| 94 |
| 31 |
| 26 |
| 5 |
| 12 |
| 4 |
| 165 |
| 32 |
| 29 |
| 28 |
| 29 |
| 26 |
| 25 |
| 1 |
| 14 |
| 13 |
| 13 |
| 10 |
| 5 |
| 27 |
In: Math
Depreciation and advance prepayments
Pan Asia Airlines was founded in 1980. Headquartered in Hong Kong, the publicly traded company has routes throughout Asia and to major airports throughout Europe and North America. While Pan Asia charges a premium of 10 to 20% over its competitors, customers have not been deterred from using the airline because of the high quality of service.
A key reason for this reputation for high quality is the company's relatively young fleet of aircraft, with an average age of five years and no plane older than eight years. To maintain a young fleet, Pan Asia replaces its planes regularly to ensure that the planes are equipped with the latest technology and operate efficiently. Other airlines typically have fleets with an average age of 10 years, while discount airlines have even older fleets, with an average age of 15 years. A well-maintained aircraft can last for 20 to 25 years, or even more in some cases.
Each of five regional managers has responsibility for all investment and operating decisions for his/her region. The company evaluates each region as a profit centre. The decentralized structure allows each region to respond quickly to changes in its market.
Financially, the company has been consistently profitable in recent years. Stock analysts have projected a target price that is 20% higher than the current price of $32.50 per share, based on their projections of earnings before interest, taxes, depreciation, amortization (EBITDA). Because of its solid financial performance, Pan Asia has earned a high credit rating, allowing it to borrow at a rate of 6%. Debt currently comprises about 40% of assets, while liquid assets amount to about 10% of assets, which total approximately $2 billion.
It is now February 2012. A new chief executive officer (CEO), William Chan, has been appointed following the retirement of the founding CEO. Chan has a background in mechanical engineering and previously served as Pan Asia's chief operating officer for the past 15 years. While Chan has a thorough understanding of the company's central operations, he is less familiar with other aspects of the company. Consequently, he has spent the last three months reviewing the company's marketing program, human resources, information systems, treasury, as well as accounting.
During this review, Chan has identified a few issues that he would like you, the chief financial officer, to explain to him.
1. The CEO noted that Pan Asia uses the declining-balance method of depreciation. He also noted that many (though not all) competitors use the straight-line method. He wonders whether Pan Asia should consider conforming to the majority in the industry.
2. One of Pan Asia’s manufacturers has recently started a promotion that offers a significant discount to airlines that make advance payments on their aircraft orders. The discount amounts to 15% of the regular price. To obtain the discount, Pan Asia would need to pay in full when it orders a plane, rather than when the manufacturer delivers it. Typically, the amount of time between order and delivery is two years. Chan is unsure whether he should encourage the regional managers to take up this offer. He is also wondering what the effects might be for the financial statements.
Required: Draft a memo to the CEO that addresses the issues raised.
In: Accounting
Write a program in C++ to test either the selection sort or insertion sort algorithm for array-based lists as given in the chapter.
Test the program with at least three (3) lists.
Supply the program source code and the test input and output.
List1: 14,11,78,59
List2: 15, 22, 4, 74
List3: 14,2,5,44
In: Computer Science
Required:
Complete the adjustment journal by indicating which account to debit and to credit.
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No |
Transaction |
Account Dr |
Account Cr |
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1. |
Portion of prepaid insurance which has now expired (been used up) |
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Revenue earned but not yet received or billed |
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Insurance expense which has not been used up (there is still future cover) |
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Portion of recognised revenue which is considered unearned |
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5. |
Expenses incurred but not yet paid |
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6. |
Revenue received in advance which is now earned |
Question 2 18 Marks
From the information given below prepare the income statement, statement of owner’s equity and balance sheet (classify balance sheet entries)
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CUD SERVICES Trial Balance as at 31 December 2019 |
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Account |
Debit $ |
Credit $ |
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Cash at bank Accounts receivable Office supplies Prepaid insurance Long-term bank loan Equipment Accumulated depreciation – equipment Accounts payable Capital Drawings Accounting services revenue Salaries expense Advertising expense Repairs expense Sundry expense Electricity expense Telephone expense Interest on bank loan expense |
6 200 20 000 7 260 1 725 82 800 27 000 43 250 2 250 1 260 7 520 3 405 2 620 1 350 |
35 000 14 600 15 000 ? 126 500
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$ |
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Income statement |
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Statement of owners’ equity |
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Balance sheet |
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Assets |
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Liabilities and Owner’s Equity |
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Question 3 10 Marks
Required:
Use the following information from the records of Preston Partners to prepare an income statement under the periodic inventory system for the year ended 30 June 2017.
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Purchases Inventory, 1 July 2016 Inventory, 30 June 2017 Selling and distribution expenses Sales Purchases returns and allowances Sales returns and allowances Administrative expenses Freight inwards Finance expenses |
186 600 13 860 12 920 45 420 268 860 4 420 6 220 16 460 3 180 2 020 |
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Income statement |
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In: Accounting
The following were selected from among the transactions completed by Babcock Company during November of the current year:
| Nov. | 3 | Purchased merchandise on account from Moonlight Co., list price $89,000, trade discount 30%, terms FOB destination, 2/10, n/30. |
| 4 | Sold merchandise for cash, $38,210. The cost of the merchandise sold was $20,810. | |
| 5 | Purchased merchandise on account from Papoose Creek Co., $51,550, terms FOB shipping point, 2/10, n/30, with prepaid freight of $730 added to the invoice. | |
| 6 | Returned $14,000 ($20,000 list price less trade discount of 30%) of merchandise purchased on November 3 from Moonlight Co. | |
| 8 | Sold merchandise on account to Quinn Co., $15,010 with terms n/15. The cost of the merchandise sold was $10,190. | |
| 13 | Paid Moonlight Co. on account for purchase of November 3, less return of November 6. | |
| 14 | Sold merchandise on VISA, $231,570. The cost of the merchandise sold was $142,060. | |
| 15 | Paid Papoose Creek Co. on account for purchase of November 5. | |
| 23 | Received cash on account from sale of November 8 to Quinn Co. | |
| 24 | Sold merchandise on account to Rabel Co., $54,800, terms 1/10, n/30. The cost of the merchandise sold was $33,850. | |
| 28 | Paid VISA service fee of $3,580. | |
| 30 | Paid Quinn Co. a cash refund of $6,420 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,140. |
Required:
| Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles. |
Chart of Accounts
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Babcock Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journal
Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 10
JOURNAL
ACCOUNTING EQUATION
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In: Accounting
6.)
The following were selected from among the transactions completed by Babcock Company during November of the current year:
| Nov. | 3 | Purchased merchandise on account from Moonlight Co., list price $94,000, trade discount 25%, terms FOB destination, 2/10, n/30. |
| 4 | Sold merchandise for cash, $35,040. The cost of the merchandise sold was $20,610. | |
| 5 | Purchased merchandise on account from Papoose Creek Co., $50,800, terms FOB shipping point, 2/10, n/30, with prepaid freight of $850 added to the invoice. | |
| 6 | Returned $12,000 ($16,000 list price less trade discount of 25%) of merchandise purchased on November 3 from Moonlight Co. | |
| 8 | Sold merchandise on account to Quinn Co., $14,030 with terms n/15. The cost of the merchandise sold was $9,130. | |
| 13 | Paid Moonlight Co. on account for purchase of November 3, less return of November 6. | |
| 14 | Sold merchandise on VISA, $243,720. The cost of the merchandise sold was $148,260. | |
| 15 | Paid Papoose Creek Co. on account for purchase of November 5. | |
| 23 | Received cash on account from sale of November 8 to Quinn Co. | |
| 24 | Sold merchandise on account to Rabel Co., $52,500, terms 1/10, n/30. The cost of the merchandise sold was $36,660. | |
| 28 | Paid VISA service fee of $3,750. | |
| 30 | Paid Quinn Co. a cash refund of $6,510 for returned merchandise from sale of November 8. The cost of the returned merchandise was $3,450. |
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Babcock Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Journalize the transactions. Refer to the Chart of Accounts for exact wording of account titles.
PAGE 10
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ACCOUNTING EQUATION
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In: Accounting
According to a report by the Commerce Department in the fall of 2004, 20% of U.S. households had some type of high-speed Internet connection. Let Nn denote the number of U.S. households with a high-speed Internet connection in n households. What is the probability that 20 of the first 200 households surveyed have high-speed Internet given that 5 of the first 75 households surveyed have it?
In: Statistics and Probability
1.Peterson LLC is an accounting firm that measures its output by the number of clients served. The firm has provided the following fixed and variable cost estimates that it uses for its budgets.
Variable
Fixed
Element
Element per
per
Month Client
Served
Revenue
$ 5,600
Employee salaries and
wages $ 47,800 $ 1,200
Travel expenses
$ 600
Other
expenses
$ 29,700
When the company prepared its planning (static) budget at the beginning of March, it assumed that 28 customers would have been served. However, 25 customers were actually served during March.
The activity variance for "Employee salaries & wages" for March would have been:
A.$1,800 U
B.$3,600 U
C.$1,800 F
D. $3,600 F
2. Netjets Charter owns one Gulfstream G450. It uses two measures of activity, flights and passengers, in the cost formulas for its budgets . The cost formula for the plane's operating costs is $79,180 per month, plus $5,298 per flight, plus $8 per passenger. The company expected its activity in February to be 92 flights and 304 passengers, but the actual activity was 95 flights and 307 passengers. The actual operating costs for the plane in February was $562,375.
For the February operating costs, the spending variance would be:
Group of answer choices
a.$6,653 F
b. $6,653 U
c. $22,571 U
d. $22,571 F
3.Flint, Inc.’s material handling costs and pounds of materials handled for January & February appear below:
Materials Handled
Handling Costs
What is the best estimate of materials handling costs for 75,000 pounds?
a.$150,000
b.$153,000
c.$157,500
d. $165,000
In: Accounting
Steve Russell started a snow removal and landscaping business he
called Total Care Services. Selected transactions for Total Care
Services are listed below.
| 1. | Steve transfers his used pickup truck valued at $3,560 into the business. | |
| 2. | Steve invested $3,150 cash in the business and opened a bank account in the name of Total Care Services. | |
| 3. | Purchased a used snow plow from a dealer for $1,520 paying half as a down payment and half on account. | |
| 4. | Plowed the parking lot of a local mall and billed the mall management company $805. | |
| 5. | Paid for fuel for the truck $150. | |
| 6. | Plowed three neighbors’ driveways and immediately got paid $20 each. | |
| 7. | Collected in full the invoice billed to the mall management company. | |
| 8. | Paid balance owing on the purchase of the snow plow. | |
| 9. | Purchased a new lawn mower for $780, paying 20% down payment in cash, the remainder is on account. | |
| 10. | Paid for business cell phone charges of $30. | |
| 11. | Purchased $390 of lawn maintenance supplies for cash. | |
| 12. | Billed customers $1,830 for lawn maintenance services completed. | |
| 13. | Paid balance owing on lawn mower. | |
| 14. | Collected $750 from customers for services previously billed. | |
| 15. | Steve withdraws $1,000 cash for personal use. | |
| 16. | Provides lawn maintenance services totaling $1,410 for several clients – one client whose bill is $135 pays cash, the remainder are on account. |
For each transaction indicate:
| (a) | The basic type of account debited and credited (asset, liability, owner’s equity) | |
| (b) | The specific account debited and credited (Cash, Rent Expense, Service Revenue, etc.) | |
| (c) | By how much each account is increased or decreased. |
In: Accounting
3,500 women between the ages 60 -74 years are in a town consisting of a population of 15,000 persons. 85 cases of cancer are in the town one year and 30 of these cases were women 60 -74 years old. What is the prevalence of cancer among women of this age group?
In: Statistics and Probability