The comparative balance sheets for 2021 and 2020 and the income statement for 2021 are given below for Arduous Company. Additional information from Arduous’s accounting records is provided also.

Additional information from the accounting records:

1. Investment revenue includes Arduous Company’s $25 million share of the net income of Demur Company, an equity method investee.
2. Treasury bills were sold during 2021 at a gain of $2 million. Arduous Company classifies its investments in Treasury bills as cash equivalents.
3. Equipment originally costing $108 million that was one-half depreciated was rendered unusable by a flood. Most major components of the equipment were unharmed and were sold for $20 million.
4. Temporary differences between pretax accounting income and taxable income caused the deferred tax liability to increase by $22 million.
5. The preferred stock of Tory Corporation was purchased for $44 million as a long-term investment.
6. Land costing $66 million was acquired by issuing $33 million cash and a 10%, four-year, $33 million note payable to the seller.
7. The right to use a building was acquired with a 15-year lease agreement; present value of lease payments, $107 million. Annual lease payments of $6 million are paid at the beginning of each year starting January 1, 2021.
8. $79 million of bonds were retired at maturity.
9. In February, Arduous issued a stock dividend (11.6 million shares). The market price of the $5 par value common stock was $7.50 per share at that time.
10. In April, 1 million shares of common stock were repurchased as treasury stock at a cost of $28 million.

Required:
Prepare the statement of cash flows for Arduous Company using the indirect method. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

1. Gamebox, a seller of video-gaming systems, games and online gaming subscriptions, recently made available a coupon that allows its gaming subscription members to extend their subscriptions by three months at no charge. Subscribers need only to login to the website using their user name and password and provide the coupon code. Because this contract modification (from 12 months to 15 months) does not add distinct goods or services from the original contract, Gamebox need only make a cumulative catch-up adjustment.

True or False

2. Regarding ASC Topic 606 guidance for revenue recognition, which of the following statements is not true?

a. ASC Topic 606 is based on principles that are radically different from prior guidance.

b. The FASB was involved with deciding to create a single, unifying framework for revenue recognition.

c. A goal was to create a framework that could be applied to any industry and provide similar results for similar fact sets.

d. Prior to ASC Topic 606, U.S. GAAP related to revenue recognition was generally based on industry-specific guidance.

3. Which of the following statements is not true regarding transactions involving intellectual property?

a. A transaction involving intellectual property can represent a sale or a license.

b. The revenue recognition approach depends on whether the transaction is considered a sale or a license.

c. If a contract is considered a license, the firm must determine if the license is a distinct performance obligation.

d. If the customer’s right to use the intellectual property is not limited, the contract is considered a license.

4. Which of the following statements is not applicable to revenue recognition guidance under ASC Topic 606?

a. Disaggregated revenues are to be disclosed in a note to the financial statements.

b. The standard applies a minimum number of categories that must be provided.

c. Revenue may be disaggregated by geographic region.

d. Firms must disaggregate revenues into categories that depict how revenue is affected by economic factors.

5. Under ASC Topic 606, which of the following statements is not true regarding the use of practical expedients in applying the revenue recognition model?

a. One expedient is to use a portfolio approach to numerous contracts with similar characteristics.

b. A firm can file an application to use a practical expedient on a large contract if it is under severe time pressure.

c. A firm is not required to adjust the transaction price for a significant financing component if at the contract inception, the period between the payment and the transfer of goods or services is expected to be a year or less.

d. Determining the use of an expedient is dependent on whether there would not be a material difference in the financial statements from a more vigorous application of the standard.

Following the three-stock example in Section D to calculate the variances and volatilities of the following portfolios with equal weights:

e. 6-stock portfolio consisted of Dell, Delta Air, AA, GM, Ford and Anheuser.

            f. All 7-stock portfolio.

1. You want to see if three different cafes yield different costs for a lunch meal for a week. You randomly select five measurements from trials on an automated driving machine for each cafe. At the 0.05 significance level, is there a difference among cafes in mean lunch meal cost? Test this claim showing all calculation steps clearly in the Ms World file (25P) and draw an ANOVA Table for the solution (10P). You have to use the same steps which we used in the lecture. You can find the steps from lecture slides or recorded video. Also, you have to take in a consider the HOMEWORK - PROJECT-PERFORMANCE EVALUATION FORM which is above. SEND IT IN MS WORD FORMAT NOT SCREEN SHOT

Cafe 1

Cafe 2

Cafe 3

25 23 24 27 21

23 28 25 27 26

20 22 19 20 24

1. A sports psychologist gave a questionnaire about healthy eating habits to randomly selected professional athletes. The results are displayed below. Using the .05 significance level, is there a difference in healthy eating habits among professionals in the three sports?

                       Baseball Players              Basketball Players              Football Players

                                        32                                           27                                           16

                                        27                                           36                                           13

                                        26                                           25                                           15

                                        35                                           30                                           10

Step 1: State Hypotheses (2 points)

• Null:

• Research:

Step 2: Determine Comparison Distribution (1 point)

• What is the distribution shape and degrees of freedom for the comparison distribution?

Step 3: Set the Criteria for a Decision (3 points)

• df_B =

df_W=

• Critical value:

Step 3: Compute the Test Statistic (10 points)

Step 5: Make a Decision (9 points)

Reject/Fail to Reject the null?

If necessary, compute a Tukey’s HSD post hoc test.

Write your results as they would appear in a research journal (~two sentences).

Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below:

When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers.

Foundational 9-1

Required:

1. What amount of revenue would be included in Adger’s flexible budget for May?

2. What amount of employee salaries and wages would be included in Adger’s flexible budget for May?

3. What amount of travel expenses would be included in Adger’s flexible budget for May?

4. What amount of other expenses would be included in Adger’s flexible budget for May?

5. What net operating income would appear in Adger’s flexible budget for May?

6. What is Adger’s revenue variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

7. What is Adger’s employee salaries and wages spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

8. What is Adger’s travel expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

9. What is Adger’s other expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

10. What amount of revenue would be included in Adger’s planning budget for May?

11. What amount of employee salaries and wages would be included in Adger’s planning budget for May?

12. What amount of travel expenses would be included in Adger’s planning budget for May?

13. What amount of other expenses would be included in Adger’s planning budget for May?

14. What activity variance would Adger report in May with respect to its revenue? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

15. What activity variances would Adger report with respect to each of its expenses for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below:

When preparing its planning budget the company estimated that it would serve 35 customers per month; however, during May the company actually served 40 customers.

1. What amount of revenue would be included in Adger’s flexible budget for May?

2. What amount of employee salaries and wages would be included in Adger’s flexible budget for May?

3. What amount of travel expenses would be included in Adger’s flexible budget for May?

4. What amount of other expenses would be included in Adger’s flexible budget for May?

5. What net operating income would appear in Adger’s flexible budget for May?

6. What is Adger’s revenue variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

7. What is Adger’s employee salaries and wages spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

8. What is Adger’s travel expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

9. What is Adger’s other expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

10. What amount of revenue would be included in Adger’s planning budget for May?

11. What amount of employee salaries and wages would be included in Adger’s planning budget for May?

12. What amount of travel expenses would be included in Adger’s planning budget for May?

13. What amount of other expenses would be included in Adger’s planning budget for May?

14. What activity variance would Adger report in May with respect to its revenue? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

15. What activity variances would Adger report with respect to each of its expenses for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

15. What activity variances would Adger report with respect to each of its expenses for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Multiple steps are requried for this question

Adger Corporation is a service company that measures its output based on the number of customers served. The company provided the following fixed and variable cost estimates that it uses for budgeting purposes and the actual results for May as shown below:

When preparing its planning budget the company estimated that it would serve 30 customers per month; however, during May the company actually served 35 customers.

Please answer the following letters towards the question

a. What amount of revenue would be included in Adger’s flexible budget for May?

b. What amount of employee salaries and wages would be included in Adger’s flexible budget for May?

c. What amount of travel expenses would be included in Adger’s flexible budget for May?

d. What amount of other expenses would be included in Adger’s flexible budget for May?

e. What net operating income would appear in Adger’s flexible budget for May?

f. What is Adger’s revenue variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

g. What is Adger’s employee salaries and wages spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

h. What is Adger’s travel expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

i What is Adger’s other expenses spending variance for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

j.  What amount of revenue would be included in Adger’s planning budget for May?

k.  What amount of employee salaries and wages would be included in Adger’s planning budget for May?

l. What amount of travel expenses would be included in Adger’s planning budget for May?

m. What amount of other expenses would be included in Adger’s planning budget for May?

n. What activity variance would Adger report in May with respect to its revenue? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

o. What activity variances would Adger report with respect to each of its expenses for May? (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

You work at Gigundo-Mart Discount Store as a cashier. Last Sunday night after closing, the store             manager called a mandatory, unpaid meeting for all employees, including those who did not work             that day. The manager’s thirty-minute speech covered Gigundo-Mart’s financial situation and     how the company needed to downsize, freeze all open positions, and cut all employee salaries by         10%. As he spoke you noticed many side conversations and some of your co-workers crossing            their arms, rolling their eyes, and shaking their heads.

            Referring specifically to three aspects of listener motivation (Cognitive Dissonance, Maslow’s             Hierarchy of Needs, and Positive/Negative Motivation), explain (1) why the speaker lost his             audience, and (2) three strategies he might have used to connect with them more effectively (18             points).

            How did each of these factors contribute to your manager losing his audience? (3 pts each):

            Identify three strategies that could have made him more effective (3 pts each):

LAW OF ACCOUNTANTS
A QUESTION OF ETHICS-- Agency Formation and Duties: Emergency One, Inc. (EO), makes fi re and rescue vehicles. Western Fire Truck, Inc., contracted with EO to be its exclusive dealer in Colorado and Wyoming through December 2003. James Costello, a Western salesperson, was authorized to order EO vehicles for his customers. Without informing Western, Costello e-mailed EO about Western’s diffi culties in obtaining cash to fund its operations. He asked about the viability of Western’s contract and his possible employment with EO. On EO’s request, and in disregard of Western’s instructions, Costello sent some payments for EO vehicles directly to EO. In addition, Costello, with EO’s help, sent a competing bid to a potential Western customer. EO’s representative e-mailed Costello, “You have my permission to kick [Western’s] ass.” In April 2002, EO terminated its contract with Western, which, after reviewing Costello’s e-mail, fi red Costello. Western fi led a suit in a Colorado state court against Costello and EO, alleging, among other things, that Costello breached his duty as an agent and that EO aided and abetted the breach. [ Western Fire Truck, Inc. v. Emergency One, Inc., 134 P.3d 570 (Colo.App. 2006)]

(a) Was there an agency relationship between Western and Costello? Western required monthly reports from its sales staff, but Costello did not report regularly. Does this indicate that Costello was not Western’s agent? In determining whether an agency relationship exists, is the right to control or the fact of control more important? Explain.
(b) Did Costello owe Western a duty? If so, what was the duty? Did Costello breach it? If so, how?
(c) A Colorado state statute allows a court to award punitive damages in “circumstances of fraud, malice, or willful and wanton conduct.” Did any of these circumstances exist in this case? Should punitive damages be assessed against either defendant? Why or why not?