Condé Nast Traveler conducts an annual survey in which readers rate their favorite cruise ship. All ships are rated on a 100 point scale, with higher values indicating better service. A sample of 37 ships that carry fewer than 500 passengers resulted in an average rating of 85.36, and a sample of 44 ships that carry 500 or more passengers provided an average rating of 81.4. Assume that the population standard deviation is 4.55 for ships that carry fewer than 500 passengers and 3.97 for ships that carry 500 or more passengers. Round your all answers to two decimal places.

*Please show using excel*

a. What is the point estimate of the difference between the population mean rating for ships that carry fewer than 500 passengers and the population mean rating for ships that carry 500 or more passengers?

b. At 95% confidence, what is the margin of error?

c. What is a 95% confidence interval estimate of the difference between the population mean ratings for the two sizes of ships?

Costa Cruise Lines (CCL) (a U.S. company based in Miami, FL) purchased a ship from Komatsu Heavy Equipment for ¥700 million – payable in 1 year. The current spot rate is ¥110/$ and the one-year forward rate is ¥108/$. For borrowing (or depositing), the annual interest rate in Japan is 6%. In the United States, the rate is 2%. Yen call and put options, with a 1-year expiration date and an exercise price of $.009 are available. The price (premium) of the call option is $.002 per yen. The price (premium) of the put option is $.001 per yen. * Assume that one year from today, the spot rate for yen is either ¥130/$ or ¥105/$.

* If CCL decides to hedge with options, should they use a call or a put?

* If CCL follows the appropriate options hedging strategy, what is CCL’s net cost (in $US) to purchase the ship if the spot rate is ¥130/$?

* What is the net cost if the spot rate is ¥105/$? (Be sure to include the cost of buying the option in your answer.)

Condé Nast Traveler conducts an annual survey in which readers rate their favorite cruise ship. All ships are rated on a 100-point scale, with higher values indicating better service. A sample of 36 ships that carry fewer than 500 passengers resulted in an average rating of 85.33 , and a sample of 43 ships that carry 500 or more passengers provided an average rating of 81.3. Assume that the population standard deviation is 4.55 for ships that carry fewer than 500 passengers and 3.95 for ships that carry 500 or more passengers.

A.) What is the point estimate of the difference between the population mean rating for ships that carry fewer than 500 passengers and the population mean rating for ships that carry 500 or more passengers?

B.) At 95% confidence, what is the margin of error?

C.) What is a 95% confidence interval estimate of the difference between the population mean ratings for the two sizes of ships?

[ ] to [ ]

On December 31, 2014, Cruise Company has 11,000 units of an inventory item, which cost $39 per unit when purchased on June 15, 2014. The selling price was $72 per unit. On December 30, 2014, the replacement cost was $41 per unit. At what amount should the 11,000 units of inventory be reported at on the December 31, 2014 balance sheet?

$429,000.

$341,000.

$792,000.

$451,000.

2)

$11,857,192.

$11,772,160.

$12,005,120.

$11,882,160.

3)

$5,750.

$1,600.

$18,750.

$12,100.

Which of the following reasons for an early distribution from an IRA is NOT an exception to the 10% penalty?

Jordan Hubert works for ABC all year and earns a monlty salary of $12,800. Thre is no overtime pay. Jordans income tax withholding rate is 10% of gross pay. In addition to payroll taxes, Jordan elects to contribute 1% monthly to united way. ABC also deducts $175 montly for co-payment of the health insurance premium. As of september 30 , Jordan had 115,200 of cumulative earnings

For all payroll calculations, use the following tax rates and round amounts to the nearest cent

Employee; OASDI 6.2% on first 118,500 ; medicare 1.45% up to $200,000 , 2.35% on earnings above $200,000

Employee; OASDI 6.2% on first 118,500 earned;  medicare 1.45% on all earnings ; FUTA 0.6% on first 7,000 earned ; SUTA 5.4% On all first 7,000 earned

requirment 1 . Compute jordans net pay for october

requirment 2 journalize the accrual of salaries expenese and the payment related to the employment of jordan hubert... begin with the entry to accure salaries expensive and payroll withholdings for jordan

now record the entry to record the payment wages to jordan hubert

a. Sweet Co. sells $360,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 10%. On October 1, 2018, Sweet buys back $118,800 worth of bonds for $124,800 (includes accrued interest).

Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.)

b. Prepare all of the relevant journal entries from the time of sale until the date indicated. Give entries through December 1, 2019. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

Swifty Co. sells $386,000 of 12% bonds on June 1, 2017. The bonds pay interest on December 1 and June 1. The due date of the bonds is June 1, 2021. The bonds yield 8%. On October 1, 2018, Swifty buys back $123,520 worth of bonds for $129,520 (includes accrued interest).

Prepare a bond amortization schedule using the effective-interest method for discount and premium amortization. Amortize premium or discount on interest dates and at year-end. (Round answers to 0 decimal places, e.g. 38,548.)

Prepare all of the relevant journal entries from the time of sale until the date indicated. Give entries through December 1, 2019. (Assume that no reversing entries were made.) (Round present value factor calculations to 5 decimal places, e.g. 1.25124 and the final answer to 0 decimal places e.g. 58,971. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

CASE

Billy Wilson, All American

In his senior year at a major Midwestern university, Billy Wilson had been the third runner up for the famed Heismann Tophy. The trophy goes to the outstanding football player in America and is presented annually by the New York Athletic Club. During the past football season, Wilson had run for over 1,500 yards and scored 18 touchdowns. He also caught 41 passes coming out of the backfield. His time in running the 40-yard dash, which professional scouts consider to be extremely important, was 4.38 seconds. He was voted first team All American by the Associated Press and was a second team All American in the Coaches Poll selections.

On Monday morning, his agent, Joel Weinberg, called to say that he was looking at three different proposals that a major West Coast professional football team had made for Billy Wilson’s services. The team had drafted him in the first round of the National Football League draft as the sixth player to be selected out of the thousands of college football players that were eligible for that year. The Edmonton, Alberta, team of the Canadian Football League was also interested in Wilson’s services. The Canadian team had called his agent over the weekend to put its offer on the table. While the National Football League (NFL) team that had drafted Billy Wilson in the first round had exclusive rights overall other U.S. teams in signing Billy Wilson during the current year, the Canadian team was not bound by such an arrangement and could make any offer it wished and hope the outcome would be positive.

Actual Proposals:

The West Coast NFL team offered the following three proposals. The team’s general manager, who was in charge of contract negotiations, said his team would stand behind any of the three offers and it was up to Billy Wilson and his agent to choose which they preferred:

Contract offer 1:

• • $900,000 immediate signing bonus
• • $850,000 at the end of each year for the next five (5) YEARS

Contract offer 2:

• • $200,000 immediate signing bonus
• • $100,000 at the end of each year for the next four years.
• • $150,000 a year at the end of years 5 through 10
• • $1,000,000 a year at the end of years 11 through year 40.

Contract offer 3:

• • $1,000,000 immediate signing bonus
• • $500,000 at the end of year 1
• • $1,000,000 at the end of year 2
• • $1,500,000 at the end of year 3
• • $2,000,000 at the end of year 4

Canadian Football League:

• • $1,100,000 immediate signing bonus
• • $2,000,000 at the end of each year for the next three years.

Required Assignment

Assume that the cash flows will be discounted using a 10 percent interest rate.

3. If the discount rate used was 7 percent instead of 10 percent, how might that change your answer? Would the resulting present values you calculated in #2 above be higher or lower – explain your answer.

CASE

Billy Wilson, All American

In his senior year at a major Midwestern university, Billy Wilson had been the third runner up for the famed Heismann Tophy. The trophy goes to the outstanding football player in America and is presented annually by the New York Athletic Club. During the past football season, Wilson had run for over 1,500 yards and scored 18 touchdowns. He also caught 41 passes coming out of the backfield. His time in running the 40-yard dash, which professional scouts consider to be extremely important, was 4.38 seconds. He was voted first team All American by the Associated Press and was a second team All American in the Coaches Poll selections.

On Monday morning, his agent, Joel Weinberg, called to say that he was looking at three different proposals that a major West Coast professional football team had made for Billy Wilson’s services. The team had drafted him in the first round of the National Football League draft as the sixth player to be selected out of the thousands of college football players that were eligible for that year. The Edmonton, Alberta, team of the Canadian Football League was also interested in Wilson’s services. The Canadian team had called his agent over the weekend to put its offer on the table. While the National Football League (NFL) team that had drafted Billy Wilson in the first round had exclusive rights overall other U.S. teams in signing Billy Wilson during the current year, the Canadian team was not bound by such an arrangement and could make any offer it wished and hope the outcome would be positive.

Actual Proposals:

The West Coast NFL team offered the following three proposals. The team’s general manager, who was in charge of contract negotiations, said his team would stand behind any of the three offers and it was up to Billy Wilson and his agent to choose which they preferred:

Contract offer 1:

• • $900,000 immediate signing bonus
• • $850,000 at the end of each year for the next five (5) YEARS

Contract offer 2:

• • $200,000 immediate signing bonus
• • $100,000 at the end of each year for the next four years.
• • $150,000 a year at the end of years 5 through 10
• • $1,000,000 a year at the end of years 11 through year 40.

Contract offer 3:

• • $1,000,000 immediate signing bonus
• • $500,000 at the end of year 1
• • $1,000,000 at the end of year 2
• • $1,500,000 at the end of year 3
• • $2,000,000 at the end of year 4

Canadian Football League:

• • $1,100,000 immediate signing bonus
• • $2,000,000 at the end of each year for the next three years.

Required Assignment

Assume that the cash flows will be discounted using a 10 percent interest rate.

4. Given your answers to #2, how much could Billy pay himself for the next 40 years assuming a 10% interest rate? Calculate the answer using all four (4) football conracts.