Christie sued her former employer for a back injury she suffered on the job in 2018. As a result of the personal injury, she was partially disabled. in 2019, she received $240,000 for her loss of future income, $100,000 workers compensation, $160,000 in punitive damages because of the employers flagrant disregard for the employers safety, and $15,000 for medical expenses. The medical expenses were deducted on her 2018 return, reducing her taxable income by $12,000. Christie's 2019 gross income from the above is:

a. $500,000 b. 412,000 c. 255,000 d. $175,000 e. $172,000

Three former college classmates have decided to pool a variety of work experiences by opening a store near campus to sell wireless equipment to students. The business has been incorporated as University Wireless.

Required: Several transactions occurred in March. Each is described separately in this folder. For each transaction, indicate the accounts that are affected, whether they increase or decrease, and the amount of the increase or decrease.

YOU MUST FOLLOW THE INSTRUCTIONS BELOW. IF YOU DON'T, YOU MAY KNOW THE CORRECT ENTRY BUT THE COMPUTER WILL NOT RECOGNIZE IT AND YOU WILL NOT RECEIVE CREDIT.

1. After each transaction description, there are several "Account" submission boxes and corresponding "Amount" submission boxes. To indicate the accounts that you think are affected, choose them from the drop-down menu. But you MUST select them in the order that they are listed in the menu. FOR EXAMPLE, if you think that Cash and Inventory are affected by a particular transaction, you must record the Cash impact first and the Inventory impact second because that is the order in which they are listed in the drop-down menu. If you record the Inventory impact first and the Cash impact second, even if they are the correct accounts and even if you have the correct dollar amounts, your answer will be considered incorrect.
2. When you record the dollar amounts, be sure to use a minus sign to indicate a decrease in the account. You don't need to use a plus sign to indicate an increase.
3. There are always more "Account" and "Amount" submission boxes available than are necessary. When you have indicated all the accounts that are affected by the transaction, you MUST select "Leave Blank" from the drop-down menu for EACH of the remaining "Account" submission boxes (you can leave the "Amount" boxes blank).
4. For transactions 3, 4, 5, and 8, you are given additional instructions. Read them carefully.
5. You get 5 tries for each transaction (8 tries for transaction #8).
6. The entries for each transaction are worth 2 points (4 points for transaction #8).

Question #1 On March 1, the three classmates opened a checking account for The Wire at a local bank. They each deposited $23,000 in exchange for shares of stock. A few of their friends also purchased stock for $12,000 that was deposited in The Wire account.

Account: dollar amount:

account: dollar ammount:

account: dollar ammount

account: dollar amount:

account dollar amount:

Question #2 The company quickly acquired $41,000 in inventory, 60% of which was paid for in cash. The rest was acquired on open accounts that were payable after 30 days.

Account: dollar amount:

account: dollar ammount:

account: dollar ammount

account: dollar amount:

account dollar amount:

Question #3 A one-year store rental lease was signed on March 1 for $1,200 per month, and rent for the first 4 months was paid in advance. [Note: Record the complete entry for the March 1 transaction first and the complete adjusting entry on March 31 second.]

Account: dollar amount:

account: dollar ammount:

account: dollar ammount

account: dollar amount:

account dollar amount:

Question #4 The owners paid $2,500 for website advertising. They were able to get a good deal because one of the company's owners also owns stock in the website company. The owners also paid $6,000 for some advertising in local newspapers. [Note: Combine both transactions into one entry].

Account: dollar amount:

account: dollar ammount:

account: dollar ammount

account: dollar amount:

account dollar amount:

Question #5 Sales were $68,000. Cost of merchandise sold was 50% of sales. 40% of sales were for cash. [Note: Record the complete entry for the sales first and the complete entry for the expenses second]

Account: dollar amount:

account: dollar ammount:

account: dollar ammount

account: dollar amount:

account dollar amount:

account: dollar amount:

Question #6 Wages and salaries in March were $11,500, of which $8,800 was actually paid to employees.

Account: dollar amount:

account: dollar ammount:

account: dollar ammount

account: dollar amount:

account dollar amount:

question #7Miscellaneous expenses were $1,800, all paid for with cash.

Account: dollar amount:

account: dollar ammount:

account: dollar ammount

account: dollar ammount:

question #8 On March 1, fixtures and equipment were purchased for $5,000 with a downpayment of $1,000 and a $4,000 note, payable in one year. Interest of 6% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 9 years with no expected salvage value. [Note: Record the complete entry for the March 1 equipment purchase first, the March 31 depreciation adjusting entry second, and the March 31 interest adjusting entry third.  Also, round all answers to the nearest cent.]

Account: dollar amount:

account: dollar ammount:

account: dollar ammount

account: dollar ammount:

Account: dollar amount:

account: dollar ammount:

account: dollar ammount

account: dollar ammount:

question #9Cash dividends totaling $4,400 were paid to stockholders on March 31.

account: dollar ammount:

Account: dollar amount:

account: dollar ammount:

account: dollar ammount

account: dollar ammount:

4. According to former President Barack Obama (and he was far from alone in making this argument), what is the relationship between player salaries and ticket prices?

5. What has determined the price of Honus Wagner’s baseball card over time? Be able to illustrate this story (i.e., draw a supply and demand graph).

6. How does the NBA’s salary cap impact quantity demand and quantity supplied of labor in the NBA’s player market? What is the intent of this cap?, what is the actual impact of this cap? Illustrate.

7. How does the NBA’s salary cap impact quantity demand and quantity supplied of labor in the NBA’s player market? What is the intent of this cap? According to the text, what is the actual impact of this cap?

You have been recruited by a former classmate, Susanna Wu, to join the finance team of a company that she founded recently. The company produces a unique product line of hypoallergenic cosmetics and relies for its success on an aggressive marketing program. The company is in a start-up phase and therefore has no significant history of expenses and revenues upon which to rely for budgeting and planning purposes. Given the restriction on available funds (most of the available capital has been used for new-product development and to recruit a management team), the control of costs, including marketing costs, is thought by the management team to be essential for the short-term viability of the company.

You have held a number of intensive discussions with Susanna and John Thompson, director of marketing for the firm. They have asked you to prepare an estimated budget for marketing expenses for a month of operations.

You are provided with the following data, which represent average actual monthly costs over the past three months:

Your discussions with John and Susanna indicate the following assumptions and anticipated changes regarding monthly marketing expenses for the coming year:

• Sales volume, because of aggressive marketing, should increase by 14%.
• To meet competitive pressures, sales prices are expected to decrease by 7%.
• Sales commissions are based on a percentage of sales revenue.
• Sales staff salaries, because of a new hire, will increase by 14%, regardless of sales volume.
• Because of recent industrywide factors, rates for telephone and mailing costs, as well as delivery charges, are expected to increase by 10%. However, both of these categories of costs are variable with sales volume.
• Rent on the office building is based on a 2-year lease, with 18 months remaining on the original lease.
• Gas utility costs are largely independent of changes in sales volume. However, because of industrywide disruptions in supply, these costs are expected to increase by 15%, regardless of changes in sales volume.
• Depreciation on the office furniture used by members of the sales staff should increase because of new equipment that will be acquired. The planned cost for this equipment is $25,200, which will be depreciated using the straight-line (SL) method, with no salvage value, over a 3-year useful life.
• Because of competitive pressure, the company plans to increase the cost of marketing consultants by $5,000 per month.

Required:

1. Based on the preceding information, what is the percentage change, by line item and in total, for items in your budget?

2. The management team is worried about the short-term financial position of the new company. Given the strain on available cash, the president has expressed a desire to keep marketing expenses over the next few months to a maximum of $382,000. Discussions with the marketing department indicate that telephone and mailing costs are the only category, in the short run, that can reasonably bear the planned-for reduction in marketing costs. The budget you have prepared includes an assumed 10% increase in telephone and mailing costs. What must this percentage change (positive or negative) be in order to achieve targeted monthly marketing costs? (Hint: The Goal Seek function in Excel can be used to calculate the percentage changes, which can be found under Data, then What-If Analysis.)

You have been recruited by a former classmate, Susanna Wu, to join the finance team of a company that she founded recently. The company produces a unique product line of hypoallergenic cosmetics and relies for its success on an aggressive marketing program. The company is in a start-up phase and therefore has no significant history of expenses and revenues upon which to rely for budgeting and planning purposes. Given the restriction on available funds (most of the available capital has been used for new-product development and to recruit a management team), the control of costs, including marketing costs, is thought by the management team to be essential for the short-term viability of the company. You have held a number of intensive discussions with Susanna and John Thompson, director of marketing for the firm. They have asked you to prepare an estimated budget for marketing expenses for a month of operations. You are provided with the following data, which represent average actual monthly costs over the past three months: CostAmountSales commissions$125,000Sales staff salaries42,500Telephone and mailing40,500Rental—office building22,500Gas (utilities)12,500Delivery charges71,500Depreciation—office furniture9,500Marketing consultants25,500 Your discussions with John and Susanna indicate the following assumptions and anticipated changes regarding monthly marketing expenses for the coming year: Sales volume, because of aggressive marketing, should increase by 16%.To meet competitive pressures, sales prices are expected to decrease by 8%.Sales commissions are based on a percentage of sales revenue.Sales staff salaries, because of a new hire, will increase by 16%, regardless of sales volume.Because of recent industrywide factors, rates for telephone and mailing costs, as well as delivery charges, are expected to increase by 6%. However, both of these categories of costs are variable with sales volume.Rent on the office building is based on a 2-year lease, with 21 months remaining on the original lease.Gas utility costs are largely independent of changes in sales volume. However, because of industrywide disruptions in supply, these costs are expected to increase by 16%, regardless of changes in sales volume.Depreciation on the office furniture used by members of the sales staff should increase because of new equipment that will be acquired. The planned cost for this equipment is $14,400, which will be depreciated using the straight-line (SL) method, with no salvage value, over a 4-year useful life.Because of competitive pressure, the company plans to increase the cost of marketing consultants by $7,500 per month.

Required:

1. Based on the preceding information, what is the percentage change, by line item and in total, for items in your budget?

2. The management team is worried about the short-term financial position of the new company. Given the strain on available cash, the president has expressed a desire to keep marketing expenses over the next few months to a maximum of $363,000. Discussions with the marketing department indicate that telephone and mailing costs are the only category, in the short run, that can reasonably bear the planned-for reduction in marketing costs. The budget you have prepared includes an assumed 6% increase in telephone and mailing costs. What must this percentage change (positive or negative) be in order to achieve targeted monthly marketing costs? (Hint: The Goal Seek function in Excel can be used to calculate the percentage changes, which can be found under Data, then What-If Analysis.)

Three former college classmates have decided to pool a variety of work experiences by opening a store near campus to sell wireless equipment to students. The business has been incorporated as University Wireless.

Required: Several transactions occurred in March. Each is described separately in this folder. For each transaction, indicate the accounts that are affected, whether they increase or decrease, and the amount of the increase or decrease.

Account options: Cash, Accounts Receivable, Inventory, Prepaid Rent, Fixtures and Equipment, Accounts Payable, Interest Payable, Wages Payable, Notes Payable, Paid-in Capital, Retained Earnings, Leave Blank

Transaction 1
On March 1, the three classmates opened a checking account for The Wire at a local bank. They each deposited $22,000 in exchange for shares of stock. A few of their friends also purchased stock for $15,000 that was deposited in The Wire account.
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:

Transaction 2
The company quickly acquired $38,000 in inventory, 60% of which was acquired on open accounts that were payable after 30 days. The rest was paid for in cash.
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:

Transaction 3
A one-year store rental lease was signed on March 1 for $1,100 per month, and rent for the first 2 months was paid in advance. [Note: Record the complete entry for the March 1 transaction first and the complete adjusting entry on March 31 second.]
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:

The owners paid $3,500 for website advertising. They were able to get a good deal because one of the company's owners also owns stock in the website company. The owners also paid $5,500 for some advertising in local newspapers. [Note: Combine both transactions into one entry].
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Transaction 5
Sales were $68,000. Cost of merchandise sold was 50% of sales. 40% of sales were for cash. [Note: Record the complete entry for the sales first and the complete entry for the expenses second]
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:

Transaction 5
Sales were $68,000. Cost of merchandise sold was 50% of sales. 40% of sales were for cash. [Note: Record the complete entry for the sales first and the complete entry for the expenses second]
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:

Transaction 7
Miscellaneous expenses were $2,000, all paid for with cash.
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:

Transaction 8
On March 1, fixtures and equipment were purchased for $6,000 with a downpayment of $2,000 and a $4,000 note, payable in one year. Interest of 4% per year was due when the note was repaid. The estimated life of the fixtures and equipment is 10 years with no expected salvage value. [Note: Record the complete entry for the March 1 equipment purchase first, the March 31 depreciation adjusting entry second, and the March 31 interest adjusting entry third. Also, round all answers to the nearest cent.]
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Transaction 9
Cash dividends totaling $4,400 were paid to stockholders on March 31.
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:
Account: Dollar amount:

You have been recruited by a former classmate, Susanna Wu, to join the finance team of a company that she founded recently. The company produces a unique product line of hypoallergenic cosmetics and relies for its success on an aggressive marketing program. The company is in a start-up phase and therefore has no significant history of expenses and revenues upon which to rely for budgeting and planning purposes. Given the restriction on available funds (most of the available capital has been used for new-product development and to recruit a management team), the control of costs, including marketing costs, is thought by the management team to be essential for the short-term viability of the company.

You have held a number of intensive discussions with Susanna and John Thompson, director of marketing for the firm. They have asked you to prepare an estimated budget for marketing expenses for a month of operations.

You are provided with the following data, which represent average actual monthly costs over the past three months:

Your discussions with John and Susanna indicate the following assumptions and anticipated changes regarding monthly marketing expenses for the coming year:

• Sales volume, because of aggressive marketing, should increase by 12%.
• To meet competitive pressures, sales prices are expected to decrease by 6%.
• Sales commissions are based on a percentage of sales revenue.
• Sales staff salaries, because of a new hire, will increase by 12%, regardless of sales volume.
• Because of recent industrywide factors, rates for telephone and mailing costs, as well as delivery charges, are expected to increase by 9%. However, both of these categories of costs are variable with sales volume.
• Rent on the office building is based on a 2-year lease, with 19 months remaining on the original lease.
• Gas utility costs are largely independent of changes in sales volume. However, because of industrywide disruptions in supply, these costs are expected to increase by 17%, regardless of changes in sales volume.
• Depreciation on the office furniture used by members of the sales staff should increase because of new equipment that will be acquired. The planned cost for this equipment is $28,800, which will be depreciated using the straight-line (SL) method, with no salvage value, over a 4-year useful life.
• Because of competitive pressure, the company plans to increase the cost of marketing consultants by $4,500 per month.

Required:

1. Based on the preceding information, what is the percentage change, by line item and in total, for items in your budget? (Round percentage answers to 2 decimal places. i.e. 0.1234 should be considered as 12.34%.)

2. The management team is worried about the short-term financial position of the new company. Given the strain on available cash, the president has expressed a desire to keep marketing expenses over the next few months to a maximum of $363,000. Discussions with the marketing department indicate that telephone and mailing costs are the only category, in the short run, that can reasonably bear the planned-for reduction in marketing costs. The budget you have prepared includes an assumed 9% increase in telephone and mailing costs. What must this percentage change (positive or negative) be in order to achieve targeted monthly marketing costs? (Hint: The Goal Seek function in Excel can be used to calculate the percentage changes, which can be found under Data, then What-If Analysis.)  (Negative amounts should be indicated by a minus sign. Round percentage answers to 2 decimal places. i.e. 0.123 should be considered as 12.30%)

***PLEASE SHOW ALL WORK IN A WORKING NOTE. ITS IMPORTANT FOR ME TO UNDERSTAND HOW YOU ANSWERED THIS QUESTION. THANK YOU! *****

The director of human resources for a large bank has compiled data on about 70 former employees at one of the bank’s call centers (see the below file Call Center Data). For each of the following, assume equal variances of the two populations.

a. Test the null hypothesis that the average length of service for males is the same as for females.

b. Test the null hypothesis that the average length of service for individuals without prior call center experience is the same as those with experience.

c. Test the null hypothesis that the average length of service for individuals with a college degree is the same as for individuals without a college degree.

d. Now conduct tests of hypotheses for equality of variances. Were your assumptions of equal variances valid? If not, repeat the test(s) for means using the unequal variance test.

You have been recruited by a former classmate, Susanna Wu, to join the finance team of a company that she founded recently. The company produces a unique product line of hypoallergenic cosmetics and relies for its success on an aggressive marketing program. The company is in a start-up phase and therefore has no significant history of expenses and revenues upon which to rely for budgeting and planning purposes. Given the restriction on available funds (most of the available capital has been used for new-product development and to recruit a management team), the control of costs, including marketing costs, is thought by the management team to be essential for the short-term viability of the company.

You have held a number of intensive discussions with Susanna and John Thompson, director of marketing for the firm. They have asked you to prepare an estimated budget for marketing expenses for a month of operations.

You are provided with the following data, which represent average actual monthly costs over the past three months:

Your discussions with John and Susanna indicate the following assumptions and anticipated changes regarding monthly marketing expenses for the coming year:

• Sales volume, because of aggressive marketing, should increase by 12%.
• To meet competitive pressures, sales prices are expected to decrease by 6%.
• Sales commissions are based on a percentage of sales revenue.
• Sales staff salaries, because of a new hire, will increase by 12%, regardless of sales volume.
• Because of recent industrywide factors, rates for telephone and mailing costs, as well as delivery charges, are expected to increase by 9%. However, both of these categories of costs are variable with sales volume.
• Rent on the office building is based on a 2-year lease, with 19 months remaining on the original lease.
• Gas utility costs are largely independent of changes in sales volume. However, because of industrywide disruptions in supply, these costs are expected to increase by 17%, regardless of changes in sales volume.
• Depreciation on the office furniture used by members of the sales staff should increase because of new equipment that will be acquired. The planned cost for this equipment is $28,800, which will be depreciated using the straight-line (SL) method, with no salvage value, over a 4-year useful life.
• Because of competitive pressure, the company plans to increase the cost of marketing consultants by $4,500 per month.

Required:

1. Based on the preceding information, what is the percentage change, by line item and in total, for items in your budget? (Round percentage answers to 2 decimal places. i.e. 0.1234 should be considered as 12.34%.)

2. The management team is worried about the short-term financial position of the new company. Given the strain on available cash, the president has expressed a desire to keep marketing expenses over the next few months to a maximum of $363,000. Discussions with the marketing department indicate that telephone and mailing costs are the only category, in the short run, that can reasonably bear the planned-for reduction in marketing costs. The budget you have prepared includes an assumed 9% increase in telephone and mailing costs. What must this percentage change (positive or negative) be in order to achieve targeted monthly marketing costs? (Hint: The Goal Seek function in Excel can be used to calculate the percentage changes, which can be found under Data, then What-If Analysis.)  (Negative amounts should be indicated by a minus sign. Round percentage answers to 2 decimal places. i.e. 0.123 should be considered as 12.30%)

***PLEASE SHOW ALL WORK IN A WORKING NOTE. ITS IMPORTANT FOR ME TO UNDERSTAND HOW YOU ANSWERED THIS QUESTION. THANK YOU! *****