Suppose that during a given week, 30 new customers have signed up for a specialized service your company provides. 10 of these new customers are automotive companies, and the remaining 20 are financial services firms. If a random sample of 10 of these new customers will be selected for a study of customer satisfaction in one month, what is the probability that fewer than five of the selected customers are financial services firms?

0.3148

0.3241

0.1688

0.4512

0.7621

Below transactions are the extracts from the books of Coffee Tea & Company Ltd. for the month of Jan 2020:

1. Sold 12 packages of Thermal Coffee Mugs to Kava Java for £610 each, Invoice No. 339.

2. Made cash sale of 3 boxes of wrapped Chocolate Mints for £830 each.

3. Purchased 16 boxes of wrapped Chocolate Mints from Dominga Wholesalers for £500 each, terms net 30.

4. Sold 8 boxes of insulated Coffee Cup Lids to Central Coffee for £590 each, Invoice No. 340.

5. Made cash sale of 27 bags of Medium Roast Arabica Coffee Beans for a list price of £600 each. A trade discount of 20% applies

6. Kava Java returned 7 packages of Thermal Coffee Mugs that were originally sold for £610 each on 11 June. These items cost £370 each and were not faulty or damaged. Issued a Credit Note for £4,270

7. Made cash sale of 29 boxes of wrapped Chocolate Mints for £830 each.

8. Purchased 13 bags of Medium Roast Arabica Coffee Beans with cash for a list price of £360 each. A trade discount of 20% applies.

9. Paid Dominga Wholesalers full outstanding amount.

Required: Using the above information, you are required to process:

• Sales Invoices to the customers

• Sales Receipts

• Payment Vouchers for Cash Purchases

• Remittance Payments

• Credit Notes

Invoice format preferred

Below transactions are the extracts from the books of Coffee Tea & Company Ltd. for the month of Jan 2020: 1. Sold 12 packages of Thermal Coffee Mugs to Kava Java for £610 each, Invoice No. 339. 2. Made cash sale of 3 boxes of wrapped Chocolate Mints for £830 each. 3. Purchased 16 boxes of wrapped Chocolate Mints from Dominga Wholesalers for £500 each, terms net 30. 4. Sold 8 boxes of insulated Coffee Cup Lids to Central Coffee for £590 each, Invoice No. 340. 5. Made cash sale of 27 bags of Medium Roast Arabica Coffee Beans for a list price of £600 each. A trade discount of 20% applies 6. Kava Java returned 7 packages of Thermal Coffee Mugs that were originally sold for £610 each on 11 June. These items cost £370 each and were not faulty or damaged. Issued a Credit Note for £4,270 7. Made cash sale of 29 boxes of wrapped Chocolate Mints for £830 each. 8. Purchased 13 bags of Medium Roast Arabica Coffee Beans with cash for a list price of £360 each. A trade discount of 20% applies. 9. Paid Dominga Wholesalers full outstanding amount.

Required: Using the above information, you are required to process: • Sales Invoices to the customers • Sales Receipts • Payment Vouchers for Cash Purchases • Remittance Payments • Credit Notes- Just need in an excel format

1. You have completed the Cash Flow statement. Pleased with your work so far, Barry asks you to work on an assignment for Steve Fox, relating to a different Regal subsidiary, Phrygian Equipment Capital. Phrygian has two business segments that are reported separately in its financial statements. The segments are “machinery” and “investment and Insurance.” In its management accounts, the company reports four different divisional results. The four divisions are machinery leasing, machinery sales, investments, and insurance. The results of the segments and the divisions follow:

Steve has asked you for a technical analysis on how Phrygian should report its segment information, under IAS 14, as of its year-end of December 31, 2017

During the period 1990–1998 there were 46 Atlantic hurricanes, of which 20 struck the United States. During the period 1999–2006 there were 70 hurricanes, of which 46 struck the United States.

1. At α = 0.10, do the data support the hypothesis that the percentage of hurricanes that strike the United States is increasing? Follow and show the 7 steps for hypothesis testing

2. What assumption is required for this test? Show if the assumption is valid.

3. Verify with Minitab, by attaching or including the output.

Americans often think of themselves as quite diverse in their political opinions, within the continuum of liberal to conservative. Let’s use data from the 2006 GSS to investigate the diversity of political views. The percentage distribution shown displays respondents’ self-rating of their political position.

What is the IQV for this variable?

The deliverable for this assignment is a written report. You must address the following questions in your analysis. Question 1: What prompted the pricing change in the case of Netflix and the debit card fee in the case of BoA? What explanation did the companies offer their customers? Do additional research as required to answer these questions. Question 2: What explains customers’ reactions to the pricing plan change announced by Netflix and the fee proposal announced by BoA? Include in your discussion what role elasticity may have played. Identify the determinant of elasticity most applicable to the explanation you have provided. Question 3: How do you explain why Netflix and Bank of America reacted differently to essentially similar customer responses? Include in your discussion what role a consideration of elasticity may have played in the company decisions. Do additional reading and research as required. Identify the determinant of elasticity most applicable to the explanation you have provided. Question 4: How long did it take for Netflix to recover lost ground in terms of its subscriber base? Which determinant of elasticity is most applicable to your answer for this question? What did Netflix do to bring about this turnaround? This "compare & contrast" case study is based on two real-world examples of pricing strategy dating back to 2011. The expectation is that you will apply your understanding of elasticity of demand to explain the contrasting final decisions. A reading list is provided for your reference. 1. The Case of Netflix Netflix, the popular online movie rental company, was founded in 1997 by Reed Hastings and Marc Randolph. In 1998, the Netflix.com website was launched; it was the first online DVD rental and sales site. The dominant brick-and-mortar DVD rental company at the time was Blockbuster. In 1999, Netflix debuted its subscription service, allowing subscribers to rent DVDs for monthly subscription fees. Netflix went public on May 23, 2002, listing on NASDAQ with an initial offer price of $15 per share and raising $77.2 million. Between October 2002 and January 2004, the stock price had appreciated by more than 1,500%. The company did a 2-for-1 stock split in February 2004 when the price reached $80 (Caplinger, 2016). At the time of its IPO in 2002, Netflix had about 600,000 subscribers. In 2007, it introduced online streaming, allowing subscribers to instantly watch TV shows and movies on their laptops or computers. Between 2007 and 2011, the number of subscribers in the U.S. grew from 7.48 million to 23.53 million (Dunn, 2017). On July 11, 2011, the stock closed at $41.53 (price adjusted for dividends). The Misstep: On July 12, 2011, Netflix split up its existing one DVD at a time + unlimited streaming plan for $9.99 into 3 separate plans: (1) DVD only starting at $7.99, (2) streaming only for $7.99, and (3) DVD + streaming for $15.98 (Gilbert, 2012). The rate hike caused a loss of subscriber base from 24.8 million subscribers in end-June to 23.8 million subscribers in end-September (Pepitone, 2011). By July 29, the stock price had dropped to $37.99, a drop of 8.5% from July 11. By November 25, it had tumbled to $9.12, a plunge of almost 78% since the day of the announcement (closing prices from NASDAQ). The Final Decision: Despite subscribers and investors voting with their feet, the company defended its decision – albeit apologetically - and implemented the new pricing plans. 2. The Case of Bank of America (BoA) Bank of America was established in 1904 as Bank of America National Trust and Savings Association. The Bank of America (BoA) entity was formed in 1998 as a merger between the erstwhile BankAmerica Corporation and NationsBank. From checking and savings accounts to debit cards, credit cards, loans, and asset management, BoA provides a range of services for both households and businesses. In the words of CEO Brian Moynihan, "Bank of America has been helping connect people to what is most important to them for more than 200 years." (Bank of America website). In 2010, the bank had $916.11 billion in deposits. At 12% of market share, this ranked BoA number one in terms of deposits. It was followed closely by JP Morgan Chase and Wells Fargo, each of which had about 10% market share (Comoreanu, 2017). BoA stock is listed on the NYSE. On April 1, 1998, the stock closed at $38 (price adjusted for dividends). On September 1, 2008, the stock closed at $35. The bank suffered losses during the financial crisis; monthly stock price data reveal a low of $3.95 on February 1, 2009. After recovering to $17.83 by March 1, 2010, the stock price started declining again. The downtrend continued in 2011, with a drop of almost 19 per cent between March 1 and June 1 (from $13.93 to $11.24), and another 29 per cent to $7.91 by September 1, 2011. The Misstep: On September 29, 2011, Bank of America announced that, beginning in early 2012, it would start charging its customers $5 a month for using their debit cards (Rauch, 2011). The announcement was met with angry outrage by customers on social media. Reflecting the negative sentiment, stock price declined 7 per cent in the week following the announcement, from $6.35 on September 29 to $5.90 on October 6. It had recovered about 8 per cent to $6.83 on October 31, 2011; it may be noted that this price was still almost 14 per cent lower compared to the price on September 1. The Final Decision: Following the tremendous backlash from its card holders, BoA abandoned its plans. On November 1, 2011, it announced that it would not implement the debit card usage fee (Bernard, 2011).

1. What is the two’s complement of: 00110101

2. Carry out the following calculation using 8-bit signed arithmetic (convert to 8-bit binary sequences) and use two’s complement for the negative number, give the result as both an 8-bit binary sequence and in base 10: 127 – 74.

3. What does shifting a binary sequence to left by 3 places correspond to (from the arithmetic standpoint)

Hrubec Products, Inc., operates a Pulp Division that manufactures wood pulp for use in the production of various paper goods. Revenue and costs associated with a ton of pulp follow:

Hrubec Products has just acquired a small company that manufactures paper cartons. This company will be treated as a division of Hrubec with full profit responsibility. The newly formed Carton Division is currently purchasing 31,000 tons of pulp per year from a supplier at a cost of $23 per ton, less a 10% purchase discount. Hrubec’s president is anxious for the Carton Division to begin purchasing its pulp from the Pulp Division if an acceptable transfer price can be worked out.

For (1) and (2) below, assume the Pulp Division can sell all of its pulp to outside customers for $23 per ton.

1. What is the lowest acceptable transfer price from the perspective of the Pulp Division? What is the highest acceptable transfer price from the perspective of the Carton Division? What is the range of acceptable transfer prices (if any) between the two divisions? Are the managers of the Carton and Pulp Divisions likely to voluntarily agree to a transfer price for 31,000 tons of pulp next year?

2. If the Pulp Division meets the price that the Carton Division is currently paying to its supplier and sells 31,000 tons of pulp to the Carton Division each year, what will be the effect on the profits of the Pulp Division, the Carton Division, and the company as a whole?

For (3)–(6) below, assume that the Pulp Division is currently selling only 59,000 tons of pulp each year to outside customers at the stated $23 price.

4-a. Suppose the Carton Division’s outside supplier drops its price (net of the purchase discount) to only $18 per ton. Should the Pulp Division meet this price?

4-b. If the Pulp Division does not meet the $18 price, what will be the effect on the profits of the company as a whole?

6. Refer to (4) above. Assume that due to inflexible management policies, the Carton Division is required to purchase 31,000 tons of pulp each year from the Pulp Division at $23 per ton. What will be the effect on the profits of the company as a whole?

On December 1, 2012, Bluemound Company had the following account balances.

During December, the company completed the following transactions.

Adjustment data:

1. Depreciation $200 per month.

2. Insurance expired $400.

Instructions

(a) Journalize the December transactions. (Assume a perpetual inventory system.)

(b) Enter the December 1 balances in the ledger T accounts and post the December transactions.

Use Cost of Goods Sold, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Sales Revenue, and Sales Discounts.

(c) The statement from Jackson County Bank on December 31 showed a balance of $21,994. A comparison of the bank statement with the Cash account revealed the following facts.

1. The bank collected a note receivable of $2,200 for Bluemound Company on December 15.

2. The December 31 receipts of $2,736 were not included in the bank deposits for December.

The company deposited these receipts in a night deposit vault on December 31.

3. Checks outstanding on December 31 totaled $1,210.

4. On December 31, the bank statement showed a NSF charge of $800 for a check received by the company from L. Shur, a customer, on account.

Prepare a bank reconciliation as of December 31 based on the available information

(d) Journalize the adjusting entries resulting from the bank reconciliation and adjustment data.

(e) Post the adjusting entries to the ledger T accounts.

(f) Prepare an adjusted trial balance.

(g) Prepare an income statement for December and a classified balance sheet at December 31.