Quality Motors is a Japanese-owned company that produces automobiles; all of its automobiles are produced in American plants. In 2008, Quality Motors produced $25 million worth of automobiles and sold $12 million in the U.S. and $13 million in Mexico. In addition, it sold $2 million from the previous year’s inventory in the U.S. The transactions just described contribute how much to U.S. GDP for 2008?
A. $12 million
B. $14 million
C. $23 million
D. $25 million
E. $27 million

9. If a country reported a nominal GDP of $400 billion in 2012 and $398 billion in 2013 and reported a GDP deflator of 100 in 2012 and 98.2 in 2013, then from 2012 to 2013 real output _______ and prices _______.
A. rose; rose.
B. rose; fell.
C. rose ; was unchanged
D. fell; rose.
E. fell; fell.

10. Suppose a country reported a nominal GDP of $550 billion in 2011 and $572 billion in 2012. It reported a GDP deflator of 115.0 in 2011 and 121.9 in 2012. From 2011 to 2012, real output _________ and prices ________.
A. rose; rose.
B. rose; fell.
C. rose ; was unchanged
D. fell; rose.
E. fell; fell.

Lindsay is 28 years old and has a new job in web development. She wants to make sure that she is financially sound by the age of 55, so she plans to invest the same amount into a retirement account at the end of every year for the next 27 years.

(a) Construct a data table in Excel that will show Lindsay the balance of her retirement account for various levels of annual investment and return. If Lindsay invests $10,000 at return of 6%, what would be the balance at the end of the 27th year? Note that because Lindsay invests at the end of the year, there is no interest earned on the contribution for the year in which she contributes. Round your answer to a whole dollar amount.

(b) Develop a two-way table for annual investment amounts of $5,000 to $20,000 in increments of $1,000 and for returns of 0% to 12% in increments of 1%. From the 2-way table, what are the minimum annual investments Lindsay’s must contribute for annual rates ranging from 6% to 11%, if she wants to accrue a final payout of at least $1 million? Note that because Lindsay invests at the end of the year, there is no interest earned on the contribution for the year in which she contributes.

Annual Return Minimum Annual Investment 6% $ 7% $ 8% $ 9% $ 10% $ 11% $

The project is adapted from the Chapter 4 Case Study dealing with North–South Airline In January 2012, Northern Airlines merged with Southeast Airlines to create the fourth largest U.S. carrier. The new North–South Airline inherited both an aging fleet of Boeing 727-300 aircraft and Stephen Ruth. Stephen was a tough former Secretary of the Navy who stepped in as new president and chairman of the board.

Stephen’s first concern in creating a financially solid company was maintenance costs. It was commonly surmised in the airline industry that maintenance costs rise with the age of the aircraft. He quickly noticed that historically there had been a significant difference in the reported B727-300 maintenance costs (from ATA Form 41s) in both the airframe and the engine areas between Northern Airlines and Southeast Airlines, with Southeast having the newer fleet.

On February 12, 2012, Peg Jones, vice president for operations and maintenance, was called into Stephen’s office and asked to study the issue. Specifically, Stephen wanted to know whether the average fleet age was correlated to direct airframe maintenance costs and whether there was a relationship between average fleet age and direct engine maintenance costs. Peg was to report back by February 26 with the answer, along with quantitative and graphical descriptions of the relationship.

Peg’s first step was to have her staff construct the average age of the Northern and Southeast B727-300 fleets, by quarter, since the introduction of that aircraft to service by each airline in late 1993 and early 1994. The average age of each fleet was calculated by first multiplying the total number of calendar days each aircraft had been in service at the pertinent point in time by the average daily utilization of the respective fleet to determine the total fleet hours flown. The total fleet hours flown was then divided by the number of aircraft in service at that time, giving the age of the “average” aircraft in the fleet.

The average utilization was found by taking the actual total fleet hours flown on September 30, 2011, from Northern and Southeast data, and dividing by the total days in service for all aircraft at that time. The average utilization for Southeast was 8.3 hours per day, and the average utilization for Northern was 8.7 hours per day. Because the available cost data were calculated for each yearly period ending at the end of the first quarter, average fleet age was calculated at the same points in time. The fleet data are shown in the following table.

The project is derived from a case study located at the end of chapter 4 dealing with regression analysis. Please note, however that some of the numbers in the project tables in the text have been changed so students should get their complete instructions from the Project area provided in Getting Started section of the Table of Contents. Students should use the Data Analysis add-on pack from the standard Microsoft Excel software available in every Microsoft Office software since 2007. The project requirements are:  

1. Prepare Excel Data Analysis Regression Tables demonstrating your excellence at determining Northern and Southeast Costs to Average Age. Besides the data tables, copied from the project instructions, four regression models are required each on a separate tab. Place each regression model with supporting data labels, line fit plots, and other required items on a separate worksheet tab.
2. On each worksheet tab (other than the data table tab) include:
   1. a copy of your data entry screen (Use Alt+Print Screen to copy picture of Regression Data Entry from Data Analysis in Excel and paste on correct worksheet tab).
   2. The regression model derived from the data tables.
   3. Line Fit Plot for each Worksheet tab.
   4. Labels of the data included.
   5. Highlight with yellow and label the following four items on each regression model:
      1. Coefficient of determination
      2. Coefficient of correlation or covariance
      3. Slope, and
      4. Beta or intercept
3. Finally prepare a formal response, using Microsoft Word, from Peg Jones’s to Stephen Ruth explaining your numbers and calculations. Which costs are correlated with the average age of the aircraft? What is the slope and beta? Explain the coefficient of determination and covariance. Explain how this information benefits each airline.

Submit your Excel Worksheet with five tabs (data, plus 4 tabs for the regressions) to the assignment drop box. Also include your formal response in a Microsoft Word document. Late work will not be accepted. The Excel worksheet and Word documents must be submitted BEFORE then end of Unit 7. This project is worth 160 points.

Note: Dates and names of airlines and individuals have been changed in this case to maintain confidentiality. The data and issues described here are real.

Northern Airline Data (numbers have been changed from text)

Southeast Airline Data (numbers have been changed from text)

A grocery store manager did a study to look at the relationship between the amount of time (in minutes) customers spend in the store and the amount of money (in dollars) they spend. The results of the survey are shown below.

1. Find the correlation coefficient: r= ____________ Round to 2 decimal places.
2. The null and alternative hypotheses for correlation are:
   H0:H0: ? r ρ μ  = 0
   H1:H1: ? μ r ρ  ≠ 0
   The p-value is: (Round to four decimal places)
   
3. Use a level of significance of α=0.05α=0.05 to state the conclusion of the hypothesis test in the context of the study.
   • There is statistically significant evidence to conclude that there is a correlation between the amount of time customers spend at the store and the amount of money that they spend at the store. Thus, the regression line is useful.
   • There is statistically insignificant evidence to conclude that a customer who spends more time at the store will spend more money than a customer who spends less time at the store.
   • There is statistically significant evidence to conclude that a customer who spends more time at the store will spend more money than a customer who spends less time at the store.
   • There is statistically insignificant evidence to conclude that there is a correlation between the amount of time customers spend at the store and the amount of money that they spend at the store. Thus, the use of the regression line is not appropriate.
4. r2 = ____________ (Round to two decimal places)
5. Interpret r2 :
   • There is a 85% chance that the regression line will be a good predictor for the amount of money spent at the store based on the time spent at the store.
   • Given any group that spends a fixed amount of time at the store, 85% of all of those customers will spend the predicted amount of money at the store.
   • 85% of all customers will spend the average amount of money at the store.
   • There is a large variation in the amount of money that customers spend at the store, but if you only look at customers who spend a fixed amount of time at the store, this variation on average is reduced by 85%.
6. The equation of the linear regression line is:   
   ˆy = ____________ + ___________ x (Please show your answers to two decimal places)
   
7. Use the model to predict the amount of money spent by a customer who spends 20 minutes at the store.
   Dollars spent =  (Please round your answer to the nearest whole number.)
   
8. Interpret the slope of the regression line in the context of the question:
   • The slope has no practical meaning since you cannot predict what any individual customer will spend.
   • As x goes up, y goes up.
   • For every additional minute customers spend at the store, they tend to spend on averge $4.47 more money at the store.
   
   
9. Interpret the y-intercept in the context of the question:
   • The best prediction for a customer who doesn't spend any time at the store is that the customer will spend $-3.15.
   • The y-intercept has no practical meaning for this study.
   • The average amount of money spent is predicted to be $-3.15.
   • If a customer spends no time at the store, then that customer will spend $-3.15.

QUESTION FIVE

The cash balance of Bison Corporation was 14,426 as at October 31, 2020. The balance of bank statement on the same day was $9,926. Following summarizes the differences between bank and books:

1. Deposits in transit as at September 30 was $1,108.
2. Deposits recorded in the books and bank during October were 9,630 and $7,410.
3. Outstanding cheques as at October 31 amounted to $136.
4. Electronic receipts from customers totaled $814, but these receipts have not yet been recorded by Bison in October.
5. Interest revenue earned in October totaled $307 and it hasn’t been recorded by Bison.
6. The bank returned an NSF cheque in the amount of $2,211 that deposited on October 13. The cheque was a payment on a customer’s account.
7. The bank charged Bison $188 for services in October, including $158 for bank service changes and $30 for processing the NSF cheque.
8. The bank made a mistake in processing a payment of $522 as $552.

reconciliation as at October 31, 2020.

[Q1. ] Prepare any necessary journal entries for bank reconciliation as at October 31, 2020.

[Q2] What is the reconciled balance of cash as at October 31, 2020?

I already knew the answers. I want to know the solution to getting answers.

Case Study
Cold Stone Creamery is a relatively new ice cream company that faces stiff competition in the marketplace from such established brands as Ben & Jerry’s and Haagen-Dazs. The first store was established in Saffron Walden, Essex in 2001. Since then the company has expanded to more than 20 stores (franchises) nationwide. Its market niche is that customers can personalise their serving by choosing a base flavour and then mixing it with a number of toppings. Employees do the mixing by hand on a frozen granite stone (hence the company name).
The challenge of course is to generate more store revenue and to increase market share. Research shows that the typical Cold Stone Creamery customer is a woman between the ages of 25 and 35, but that she also brings her friends and other family members with her.
The company has decided to do an integrated communications programme for the next year that would involve Public Relations, advertising and in-store marketing promotions for new products.
Question 1
What activities would you suggest in drawing up a creative PR campaign? Suggest a timetable and schedule for these activities whilst also including a programme for measuring the effectiveness of the campaign.

Assume that there is a two-period market with 100 identical customers who demand one unit of the good per period. Each is willing to pay up to a maximum price of $10. In the first time period there is one firm that acts as a monopolist and has a constant marginal cost equal to 5. In the second period the incumbent faces the possible entry of another firm. The potential entrant’s marginal cost is unknown to the incumbent firm. However, the incumbent assumes that the marginal cost is a random variable distributed uniformly between 0 and $10 with an expected value of $5. Assume that the incumbent offers its customers the following contract: pay a price of $10 in the first period and $7 in the second period. However, customers who switch to the entrant in time period 2 must pay a fee to the incumbent equal to $4.

Will customers accept such a contract if offered? Is the contract profitable to the incumbent? What effect does the contract have on the expected profit of the potential entrant and the probability of entry? Be sure to explain your reasoning for each answer.

Based on historical data, your manager believes that 34% of the company's orders come from first-time customers. A random sample of 122 orders will be used to estimate the proportion of first-time-customers. What is the probability that the sample proportion is greater than than 0.21?

Note: You should carefully round any z-values you calculate to 4 decimal places to match wamap's approach and calculations.

Answer = (Enter your answer as a number accurate to 4 decimal places.)

Based on historical data, your manager believes that 32% of the company's orders come from first-time customers. A random sample of 138 orders will be used to estimate the proportion of first-time-customers. What is the probability that the sample proportion is between 0.21 and 0.35?

Note: You should carefully round any z-values you calculate to 4 decimal places to match wamap's approach and calculations.

Answer = (Enter your answer as a number accurate to 4 decimal places.)

I. What are two major controls for sales returns and allowances transactions? What are the control objectives for each?

II. For each of the following situations based on ASC606, indicate the audit evidence that should be obtained to determine whether revenue should be recognized or not in the current period:

The company you are auditing, Morgan Telecom, maintains an inventory of telecommunications equipment. Peaks Telephone Company placed an order for 10 new transformers valued at $5 million, and Morgan delivered them just prior to December 31. Morgan's normal business practice for this class of customer is to enter into a written sales agreement that requires the signatures of all the authorized representatives of Morgan and its customer before the contract is binding. However, Peaks has not signed the sales agreement because it is awaiting the requisite approval by the legal department. Peaks' purchasing department has orally agreed to the contract, and the purchasing manager has assured you that the contract will be approved the first week of next year.

Good Products is a retailer of appliances that offers “layaway” sales to its customers twice a year. Good retains the merchandise, sets it aside in its inventory, and collects a cash deposit from the customer. The customer signs an installment note at the time the initial deposit is received, but no payments are due until 30 days after delivery.

Taylor's Discount Stores is a discount retailer who generates revenue from the sale of membership fees it charges customers to shop at its stores. The membership arrangement requires the customer to pay the entire membership fee (usually $48) at the beginning of the arrangement. However, the customer can unilaterally cancel the membership arrangement and receive a refund of the unused portion. Based on past experiences, Taylor's estimates that 35 percent of the customers will cancel their memberships before the end of the contract.