Assets at 12/31/03                                 Liabilities at 12/31/03

            Cash                                   $   200         Short-term trade payables            $   500

            Short-term trade receivables     600         Note payable to CEO, due 8/31/04 (2) 350

            Inventories                               700         Wages payable                                 100

            Prepaid warehouse rentals (1) 300         Customer advances (3)                     150

            Property & equipment, net       900         Income taxes payable                         50

            Total assets                       $2,700         Bonds payable, due 2004-11 (4)       800

                                                                           Total liabilities                            $1,950

            Notes:

            1.   Prepaid warehouse rentals cover the period 1/1/04-12/31/05.

2.   Following a plan adopted on 12/31/03, the Company borrowed $350 from the bank on 1/15/04, giving a 10% note payable due on 8/31/05 in exchange, and used the proceeds from this loan to repay the 8/31/04 note payable.

            3.   Customer advances are for goods to be delivered during 2004.

4.   Bonds payable are due in annual increments of $100, beginning on 12/31/04 and ending on 12/31/11.

Shown above is a complete listing of Zed Corp.’s assets and liabilities at December 31, 2003. Zed’s 12/31/03 balance sheet will be issued to shareholders and the SEC on or about 1/31/04.

In its contract with bondholders, Zed promises, while the bonds are outstanding, to maintain:

       a. a current ratio no smaller than 1.75;

       b. working capital no smaller than $500;

       c. a ratio of total liabilities to total stockholders’ equity no greater than 3.00; and

       d. a ratio of noncurrent liabilities to total assets no greater than 0.40.

Bondholders may declare the bonds immediately due and payable if Zed violates one or more of these contract provisions.

Are Zed’s 12/31/03 balance sheet relationships in compliance with the terms of the company’s contract with bondholders? Support your answer with a detailed calculation of total current assets, total current liabilities, and each of the balance sheet relationships in (a)-(d) above.

"A producer of various feed additives for cattle conducts a study of the number of days of feedlot time required to bring beef cattle to market weight. Eighteen steers of essentially identi- cal age and weight are purchased and brought to a feedlot. Each steer is fed a diet with a specific combination of protein content, antibiotic concentration, and percentage of feed supplement. The data are as follows:

STEER   PROTEIN ANIBIO  SUPPLEM TIME
1       10      1       3       88
2       10      1       5       82
3       10      1       7       81
4       10      2       3       82
5       10      2       5       83
6       10      2       7       75
7       15      1       3       80
8       15      1       5       80
9       15      1       7       75
10      15      2       3       77
11      15      2       5       76
12      15      2       7       72
13      20      1       3       79
14      20      1       5       74
15      20      1       7       75
16      20      2       3       74
17      20      2       5       70
18      20      2       7       69

2. Write the LS regression equation and interpret each of the (partial) slope parameter estimates, i.e., βˆ 1, βˆ 2 and βˆ 3.

3. For steer #3, Calculate the predicted feedlot time and the residual.

4. Write the residual standard deviation and interpret.

QUESTION 23

1. Which statement is most true regarding fraud?

   	I.	Internal auditors are required to assess it based on the SOX act.
   	II.	Fraud can never be controlled because Accountants do not have authority to prosecute fraud within organizations.
   	III.	Accountants along with other assurance functions within an organization should focus on mitigating opportunities of fraud.
   	IV.	Fraud can never be controlled because collusion always occurs in organizations.

3 points   

QUESTION 24

1. Which of the following are examples of financial statement fraud

   
   I Inflating revenue

   II Employee physically absconding with cash from the bank vault.

   III Underreporting debtI

   V Changing the vendor master file without authorization

   	a.	I and III
   	b.	I, II and IV
   	c.	I and II
   	d.	III and IV

3 points   

QUESTION 25

1. 
   Apply the Confidential Client Information Rule for questions 25 to 27.

   An Accountant with the City of Pomona receives a data request from the Marketing division. The Marketing division manager asks for prior year financial data. The Accountant emails the data without informing the Accounting Manager. Is this a violation of the Confidential Client Information Rule and why?

   	I.	Yes, the Accountant did not audit the data and did not get permission from the Accounting Manager.
   	II.	No, the Accountant and the Marketing Manager works for the same entity. But in practice the Accounting Manager should have been notified.
   	III.	Yes, accounting information is proprietary to the Accounting Department.
   	IV.	No, accounting data is never confidential.

3 points   

QUESTION 26

1. 
   Apply the Confidential Client Information Rule for questions 25 to 27.

   
   You are a Tax preparer for an Accounting firm. You specialize in preparing tax returns for the shoe retail sector. You tell your client Bob’s Shoes that Big Five Sporting has 3 employees in the tax department and they use CCH software to prepare their returns. Is this a violation of the Confidential Client Information Rule and why?

   	I.	No, the confidentiality rule does not apply to tax preparation services
   	II.	Yes, your clients are competitors and have a conflict if information is shared with one another.
   	III.	Yes, the number or employees and tax software used is confidential information.
   	IV.	No, you did not reveal any data within the tax returns

3 points   

QUESTION 27

1. Apply the Confidential Client Information Rule for questions 25 to 27.

   
   You are engaged to prepare a tax return for Ms. Smith. You receive a call from Ms. Taylor indicating they recently got engaged. You provide Ms. Taylor the draft tax return so she can review only. Is this a violation of the Confidential Client Information Rule and why?

   	I.	Yes, the tax return was not complete.
   	II.	Yes, the client relationship is solely with Ms. Smith
   	III.	No, you only provided for review purposes. Since she did not sign there is no violation.
   	IV.	No, legally Ms. Taylor is entitled to the tax return.

Steps and formula (if applied) are mandatory for all the questions.

3.   a) Sort 99, 54, 64, 23, 12, 09, 45, 32, 19, 65, 89 using Quick sort. Write the algorithm.

b) Sort 69, 74, 64, 23, 12, 09, 45, 32, 19, 65, 88, 33, 60, 38 using Shell sort. Write the algorithm.

Mason Company has prepared consolidated financial statements for the current year and is now gathering information in connection with the following five operating segments it has identified.

Determine the reportable segments by performing each applicable test. (Figures are in thousands.)

1. Revenue test:

2. Profit or loss test:

3. Asset test:

On Sept 30th, 2011, Exxon Mobil (XOM) stock was traded at $72.63 while the December XOM put option with $75 exercise price is traded at $5.00 and the December XOM call option with $70 exercise price is traded at $5.60. The put option's delta is -0.65 and the call option's delta is 0.7.

A) On October 3rd, XOM stock price changed to $71.15 on Oct 3rd, what will be the values of the put and call options?

B) Consider a portfolio composed of:

1,005 XOM stocks

20 Dec XOM Call options

37 Dec XOM Put options

     What is the portfolio position delta?

C) Using the portfolio position delta, calculate the portfolio value before AND after the stock price change.

Scores in the first and final rounds for a sample of 20 golfers who competed in tournaments are contained in the Excel Online file below. Construct a spreadsheet to answer the following questions.

Suppose you would like to determine if the mean score for the first round of an event is significantly different than the mean score for the final round. Does the pressure of playing in the final round cause scores to go up? Or does the increased player concentration cause scores to come down?

a. Use a = .10 to test for a statistically significantly difference between the population means for first- and final-round scores. What is the p-value?

p-value is .8904 (to 4 decimals)

What is your conclusion?

There is no significant difference between the mean scores for the first and final rounds.

b. What is the point estimate of the difference between the two population means?

.20 (to 2 decimals)

For which round is the population mean score lower?

Final round

c. What is the margin of error for a 90% confidence interval estimate for the difference between the population means?

?????? (to two decimals)

Could this confidence interval have been used to test the hypothesis in part (a)?

Yes

Explain.

Use the point of the difference between the two population means and add and subtract this margin of error. If zero is in the interval the difference is not statistically significant. If zero is not in the interval the difference is statistically significant.

A financial planner tracks the number of new customers added each quarter for a 6 year period. The data is presented below:

Year               Quarter                      New                Year               Quarter          New

2014               I                                   31                    2017               I                       69

                        II                                  24                                            II                      54

                        III                                 23                                            III                     46

                        IV                                16                                            IV                    32

2015               I                                   42                    2018               I                       82

                        II                                  35                                            II                      66

                        III                                 30                                            III                     51

                        IV                                23                                            IV                    38

2016               I                                   53                    2019               I                       91

                        II                                  45                                            II                      72

                        III                                 39                                            III                     59

                        IV                                27                                            IV                    41

Create a simple linear trend regression model. Let t=0 in 2013: IV. This is a computer deliverable.

(a) Interpret the slope coefficient.

(b) Test to see if the number of new customers is increasing over time. Use alpha = 0.01.

(c) Test to see if the model has explanatory power. Use alpha = 0.05.

(d) Forecast the number of new customers in the first and second quarters of 2020.

Create a multiple regression equation incorporating both a trend (t=0 in 2013: IV) and dummy variables for the quarters. Let the first quarter represent the reference (or base) group. Complete (e) thru (h) using your results. This is a computer deliverable.

(e) Test to see if there is an upward trend in new customers. Use alpha = 0.01.

(f) Test to see if the model has explanatory power. Use alpha = 0.05.

(g) Forecast the number of new customers in the first and second quarters of 2020.

(h) Test for the existence of first order autocorrelation, use alpha = 0.05. The calculated dw = 1.19.

1. From the FASB, what is the intended purpose of the new converged revenue recognition standard?

2.How prevalent is sustainability reporting in (a) the U.S. and (b) globally? In citing specific statistics, indicate the size of the company to which the information pertains.

3. What standards or guidelines should accounting professionals involved in sustainability reporting be familiar with?

In a survey of ​1407 people, 1077 people said they voted in a recent presidential election. Voting records show that 74​% of eligible voters actually did vote. Given that ​74% of eligible voters actually did​ vote, (a) find the probability that among 1407 randomly selected​ voters, at least 1077 actually did vote.​ (b) What do the results from part​ (a) suggest?