A sample on nine public universities and nine private universities was taken. The total cost for the year (including room and board) and median SAT score (maximum total is 2400) at each school were recorded. It was felt that schools with higher median SAT scores would have a better reputation and would charge more tuition as a result of that. The data is in the table below. Uss regression to help answer the following questions based on this sample data. Do schools with higher SAT scores charge more in tuition and fees? Are private schools more expensive than public school when SAT scores are taken into consideration.

Category              Total cost                             Median SAT

Public                   21,700                                  1990

Public                   15,600                                   1620

Public                   16,900                                   1810

Public                    15,400                                  1540

Public                    23,100                                   1540

Public                     21,400                                  1600

Public                     16,500                                   1560

Public                     23,500                                   1890

Public                     20,200                                    1620

Private                    30,400                                     1630

Private                    41,500                                    1840

Private                    36,100                                     1980

Private                    42,100                                     1930

Private                     27,100                                    2130

Private                     34,800                                    2010

Private                     32,100                                    1590

Private                     31,800                                    1720

Private                      32,100                                    1770

PLEASE READ: PLEASE SHOW STOP BY STEP HOW YOU GOT THE ANSWER AND PLEASE SHOW HOW TO DO IT STEP BY STEP ON EXCEL. (answer will be thumbed down if this isn't included)

Quintiles Transnational: Dennis Gillings founded Quntiles Transnational in 1982 when he realized that drug companies were great at inventing new medicines but not particularly good at analyzing the vast amounts of data that came out of clinical trials. He thought drug testing should be broken down into a series of standardized steps and he signed up a network of doctors interesting in enrolling patients in clinical trials. In the ten years leading up to 2010, Quintiles had conducted 4,700 trials on 2.7 million patients.

Quintiles also established a large contract sales organization (CSO) to support its pharmaceutical company clients. Large pharmaceutical companies, faced with cost pressures as well as the costs of maintaining their own sales forces, have increasingly turned to CSOs like the Innovex division of Quintiles, PDI Inc., or inVentive Health to provide variable cost “flex reps” as an alternative to adding the fixed cost they would incur if they added to their own sales forces. CSOs are widely used in therapeutic areas that require somewhat less scientific knowledge, like respiratory, dermatology, and lifestyle. The growth rate in contract sales and marketing was projected at 35% to 2015.

Question: Assume you are the CEO of a pharmaceutical company. Do you think you might use the CSO capabilities of Quintiles? Why or why not? 200 words or more

Form groups of three or four people, and appoint one member as the spokesperson who will communicate your findings to the whole class when called upon by the instructor. Then discuss the following scenario.

You are a team of managing partners of a large firm of accountants. You are responsible for auditing your firm’s information systems to determine whether they are appropriate and up-to-date. To your surprise, you find that although your organization does have an email system in place and accountants are connected into a powerful network, most of the accountants (including partners) are not using this technology. You also find that the organizational hierarchy is still the preferred information system of the managing partners. Given this situation, you are concerned that your organization is not exploiting the opportunities offered by new information systems to obtain a competitive advantage. You have discussed this issue and are meeting to develop an action plan to get accountants to appreciate the need to learn, and to take advantage of, the potential of the new information technology. 1. What advantages can you tell accountants they will obtain when they use the new information technology? 2. What problems do you think you may encounter in convincing accountants to use the new information technology? 3. Discuss how you might make it easy for accountants to learn to use the new technology

National Broadband Network operator NBN Co has secured $6.1 billion in debt finance on external markets as part of the company’s inaugural long-term borrowing from private debt markets.

The new credit facilities each have a five-year term as the company looks to support its future financing needs after the Federal Government had flagged some time ago that it expected NBN Co to pursue debt financing through external markets, including in order to start the process of re-financing its loan with the Commonwealth.

Finance Minister Mathias Cormann said that the strong interest on private debt markets to support the future financing needs of NBN Co demonstrated that there was strong support in the market for the NBN business plan and outlook.

“NBN Co approached the bank market with a request for an initial $2.0 billion, as foreshadowed in its 2020-23 Corporate Plan. Given the positive response from the market, NBN Co has secured additional lines of credit totalling $4.1 billion at very competitive prices,” Senator Cormann said.

“There is no requirement for NBN Co to draw down on these additional facilities immediately, but the Government agrees with the company that it makes sense to have these facilities in place, to give it flexibility and given current economic conditions.”

Minister for Communications, Cyber Safety and the Arts, Paul Fletcher, said that NBN Co is at a “pivotal point as it nears network build completion and prepares for its next phase of operations as a self-sustaining telecommunications wholesaler”.

“The company has entered into arrangements with a number of Australian and international banks to secure funding through private debt, complementing Commonwealth Government funding capped at $49 billion,” Minister Fletcher said.

“NBN Co is expected to draw down $2.0 billion from the $6.1 billion raised and complete the build within its $51 billion funding envelope, as set out in its 2020-23 Corporate Plan. The additional funding will provide the company opportunities to invest and create even more value for Australians guided by future Corporate Plans.”

Analyse the systematic and unsystematic risk that NBN should consider.

Assess and discuss different capital financing (sales of assets, bonds and equity) to facilitate the acquisition of NBN.

Waterway Services Ltd. follows ASPE and had earned accounting income before taxes of $518,000 for the year ended December 31, 2020.

During 2020, Waterway paid $80,000 for meals and entertainment expenses.

In 2017, Waterway’s tax accountant made a mistake when preparing the company’s income tax return. In 2020, Waterway paid $9,700 in penalties related to this error. These penalties were not deductible for tax purposes.

Waterway owned a warehouse building for which it had no current use, so the company chose to use the building as a rental property. At the beginning of 2020, Waterway rented the building to Trung Inc. for two years at $56,000 per year. Trung paid the entire two years’ rent in advance.

Waterway used the straight-line depreciation method for accounting purposes and recorded depreciation expense of $311,600. For tax purposes, Waterway claimed the maximum capital cost allowance of $465,300. This asset had been purchased at the beginning of the year for $3,069,000.

In 2020, Waterway began selling its products with a two-year warranty against manufacturing defects. In 2020, Waterway accrued $294,000 of warranty expenses: actual expenditures for 2020 were $90,600 with the remaining $203,400 anticipated in 2021.

In 2020, Waterway was subject to a 25% income tax rate. During the year, the federal government announced that tax rates would be decreased to 23% for all future years beginning January 1, 2021.

Prepare the journal entries to record current and future income taxes for 2020

The executives of a corporation are supposed to be managing a company on behalf of shareholders yet they may choose to increase the size of the business in order to justify higher salaries for themselves in what we often call empire building.

1. If the empire building also increases value for the shareholders can this still be called an agency cost?

Type answer here

Accounting policies are usually made to ensure accounting principles are met and people reading the financial statements are better informed. There was a new rule that required that when stock options were given to employees they be expensed based on their current market value. Prior to the rule, stock options were awarded without any cost on the financial statements only with disclosure because the price was so low and there was uncertainty about whether they would ever be exercised.

2. Do you think that expensing the cost of the stock options is better than disclosure given that approximately half the time those stock options expire worthless? (2

Type answer here

In the recent bankruptcy and reorganisation of Virgin Australia Airlines all prior shareholders received nothing. There is one argument that the pandemic is the reason for the collapse but another side is that the airline expanded to new markets and tried to become a full-service airline instead of the original low-cost airline that it started out as. From a finance perspective, other airlines with less debt have not gone bankrupt.

3. Most airlines have a high level of debt, do you think that this should preclude the current executive team from continuing on at Virgin Australia with the new owners? Why or why not?

Type answer here

Your much older brother has finally started working full time and he approaches you about deciding how to invest his money and choose a superannuation plan. He told you he plans to copy your plan.

4. Explain why this is not a good idea.

Type answer here

The recent stock market rally during COVID has been concentrated on technology stocks. One suggestion is that with all the working from home and closed casinos, people are shifting their gambling to the stock market. A counter argument is that technology stocks represent the future.

5. Do you think the stock market rally is temporary or will be sustained? Support your answer.

Type answer here

Problem 23-01

The following are Flounder Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

Additional information:

Prepare a statement of cash flows for Flounder Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)

Problem 23-01

The following are Kingbird Corp.’s comparative balance sheet accounts at December 31, 2020 and 2019, with a column showing the increase (decrease) from 2019 to 2020.

Additional information:

Prepare a statement of cash flows for Kingbird Corp. for the year ended December 31, 2020, using the indirect method. (Show amounts that decrease cash flow with either a - sign e.g. -15,000 or in parenthesis e.g. (15,000).)