Below are percentages for annual sales growth and net sales attributed to loyalty card usage at 74 Noodles & Company restaurants.

(b) Find the correlation coefficient. (Round your answer to 3 decimal places. A negative value should be indicated by a minus sign.)
  
r            ___________

(c-1) To test the correlation coefficient for significance at α = 0.05, fill in the following. (Use the rounded value of the correlation coefficient from part b in all calculations. For final answers, round t_calc to 3 decimal places and the p-value to 4 decimal places. Negative values should be indicated by a minus sign.)
  

Below are percentages for annual sales growth and net sales attributed to loyalty card usage at 74 Noodles & Company restaurants.

Click here for the Excel Data File

(b) Find the correlation coefficient. (Round your answer to 3 decimal places. A negative value should be indicated by a minus sign.)

r              

(c-1) To test the correlation coefficient for significance at α = 0.025, fill in the following. (Use the rounded value of the correlation coefficient from part b in all calculations. For final answers, round t_calc to 3 decimal places and the p-value to 4 decimal places. Negative values should be indicated by a minus sign.)

Below are percentages for annual sales growth and net sales attributed to loyalty card usage at 74 Noodles & Company restaurants.

(b) Find the correlation coefficient. (Round your answer to 3 decimal places. A negative value should be indicated by a minus sign.)
  
r            _________

(c-1) To test the correlation coefficient for significance at α = 0.01, fill in the following. (Use the rounded value of the correlation coefficient from part b in all calculations. For final answers, round t_calc to 3 decimal places and the p-value to 4 decimal places. Negative values should be indicated by a minus sign.)

Below are percentages for annual sales growth and net sales attributed to loyalty card usage at 74 Noodles & Company restaurants.

(b) Find the correlation coefficient. (Round your answer to 3 decimal places. A negative value should be indicated by a minus sign.)
  
r           

(c-1) To test the correlation coefficient for significance at α = 0.1, fill in the following. (Use the rounded value of the correlation coefficient from part b in all calculations. For final answers, round t_calc to 3 decimal places and the p-value to 4 decimal places. Negative values should be indicated by a minus sign.)

(c-2) There is no significant correlation.
  

• False

• True

(d) Does it appear that increased loyalty card usage is associated with decreased sales growth?
  

• Yes

• No

Next

The following is a list of the accounts and balances taken from the adjusted trial balance at December 31, 2021 for, Meilleur Merchants. The list of accounts is in alphabetical order. All accounts have normal balances.

Meilleur uses a periodic inventory system and the earnings approach to recognize revenue.

Additional information: According to the year-end physical count, the merchandise inventory had a balance of $104,700.

Prepare a multiple-step income statement for Meilleur Merchants for the year ended December 31, 2021.

Williams-Santana, Inc., is a manufacturer of high-tech industrial parts that was started in 2006 by two talented engineers with little business training. In 2018, the company was acquired by one of its major customers. As part of an internal audit, the following facts were discovered. The audit occurred during 2018 before any adjusting entries or closing entries were prepared. The income tax rate is 40% for all years.

A five-year casualty insurance policy was purchased at the beginning of 2016 for $33,000. The full amount was debited to insurance expense at the time.

Effective January 1, 2018, the company changed the salvage values used in calculating depreciation for its office building. The building cost $604,000 on December 29, 2007, and has been depreciated on a straight-line basis assuming a useful life of 40 years and a salvage value of $120,000. Declining real estate values in the area indicate that the salvage value will be no more than $30,000.

On December 31, 2017, merchandise inventory was overstated by $23,000 due to a mistake in the physical inventory count using the periodic inventory system.

The company changed inventory cost methods to FIFO from LIFO at the end of 2018 for both financial statement and income tax purposes. The change will cause a $940,000 increase in the beginning inventory at January 1, 2019.

At the end of 2017, the company failed to accrue $15,100 of sales commissions earned by employees during 2017. The expense was recorded when the commissions were paid in early 2018.

At the beginning of 2016, the company purchased a machine at a cost of $680,000. Its useful life was estimated to be ten years with no salvage value. The machine has been depreciated by the double-declining balance method. Its book value on December 31, 2017, was $435,200. On January 1, 2018, the company changed to the straight-line method.

Warranty expense is determined each year as 1% of sales. Actual payment experience of recent years indicates that 0.70% is a better indication of the actual cost. Management effects the change in 2018. Credit sales for 2018 are $3,600,000; in 2017 they were $3,300,000.

Required:
For each situation:
1. Identify whether it represents an accounting change or an error. If an accounting change, identify the type of change. For accounting errors, choose "Not applicable".
2. Prepare any journal entry necessary as a direct result of the change or error correction as well as any adjusting entry for 2018 related to the situation described. Any tax effects should be adjusted for through Income tax payable or Refund income tax.

A story appeared in the national newspaper USA TODAY on June 7, 2006, regarding the vital, but illegal, immigrant workers who labored on post-Hurricane Katrina reconstruction in New Orleans. A study conducted by professors at Tulane University and the University of California at Berkeley found that the workers were distinctly vulnerable to exploitation due to their illegal status. Despite the fact that under federal labor law illegal workers are to be afforded the same protections as their legal counterparts, these illegal workers often worked in unsafe conditions without the benefit of safety gear and typically earned much less – $6.50 less on average—than documented workers performing the same duties. Immigrant workers can, however, sue their employers regardless of their legal status. Do you agree that illegal immigrant workers should receive the same protections under the federal Occupational Safety and Health Act as American workers and legal immigrants? If OSHA inspects a site for safety violations and the inspector suspects that illegal workers are employed at the site, should s/he be required to report this suspicion to the U.S. Immigration and Customs Enforcement (ICE) agency? What if the OSHA inspection was prompted by a call or complaint from one of the illegal workers? Does this change your answer?

CARMEN CORPORATION

On January 2, 2006, in the strategic committee meeting of the company, Christine Carmen Chairman, President and Chief Executive Officer said, we are optimistic about 2006 and the years beyond. The proposed projects presently under consideration will enable us efficiently to expand our productivity in order to meet ever-increasing customers demand with high quality engineered products and systems for defense, aerospace and industrial applications.

Carmen Corporation is a supplier of sophisticated, highly engineered products and systems for defense, aerospace and industrial applications. The Company has three business segments.

The Company's Defense segment provides integrated front-line war-fighting systems and components, including electronic warfare systems, reconnaissance and surveillance systems, aircraft weapons suspension and release systems and airborne mine countermeasures systems.

The Company's Communications and Space Products segment supplies antenna products and ultra-miniature electronics and systems for the remote sensing, communications and electronic warfare industries.

The Company's Engineered Materials segment supplies piezoelectric ceramic products for commercial and military markets and advanced fiber composite structural products for the aircraft, communication, navigation, chemical, petrochemical, paper, and oil industries.

Carmen Corporation has the following financial statements:

Its established common stock’s dividend payout ratio after the preferred stock dividends payment is 50 percent and it is expected to grow at a constant rate of 9 percent in the future. The tax rate is 40 percent and investors requiring a rate of return of 15% on the common stock.

Preferred stock is trading at a price of $40 per share, with a dividend of $4.8. The 30-year long-term debt with a par value of $1,000 was issued 10 years ago with a coupon rate of 8%. The bonds can be refinanced at the market interest rate of 10 percent today.

Carmen has the following investment opportunities:

Part I

A) Determine the book value and market value of the capital structure.

B) Determine the weighted average cost of capital (WACC) for each of the capital structure.

C) Calculate the internal rate of return (IRR) and Net Present Value of each project and compare them against the book value and market value weighted average cost of capital.

D) Are there any conflict between NPV and IRR? How do you resolve the conflict in ranking?

E) Which projects should Carmen accept?

F) How much of the internal fund is available for investments?

G) Are there any issues about the projects you should consider before your recommendation?

Part II

Although the average project in the Defense Segment was substantially riskier than communications and Space Products segment and Engineered Materials segment, the project evaluation process did not formally incorporate risk considerations. This lack of risk consideration was more evident in the Communications and Space Products segment and Engineered Materials segments, since their productions, earnings, and profits were highly correlated and fluctuated with the economy. As a result, these segments provided a very stable income to the company. On the other hand, the Defense segment provides military products and professional services to the United States and allied governments, and their prime defense contractors and as a result, the earnings and profits of the Defense segment tended to be tied to the world geo-political environment.

Carmen has gathered the following beta for each segment based on comparable companies:

Project             Defense           Com. Space     Eng. Materials                        

Beta                 1.50                 1.20                 0.80                

The risk-free rate is 5% and rate of the market risk premium 9.0%.

H) Calculate the required rate of return for each project?

J) Compare the required rate of return with expected rate of return, according to the risk characteristics of each project; which project is appropriate to take?

In 2006, two Chinese journalists reported that the working conditions at Hongfujin Precision Industries, which is owned by Taiwanese conglomerate Foxconn, where Apple’s iPODs are produced were substandard. According to the report, not only were workers at the plant poorly paid, but they were also forced to work overtime. Apple immediately responded to the allegations and audited the factory in question. However, managers at the factory filed a defamation lawsuit against the two journalists. Despite the fact that Apple’s audit did indeed show substandard working conditions at the factory, Hongfujin did not withdraw the lawsuit. Eventually the Reporters Without Borders group took up the case for the two reporters and the lawsuit was dropped.

1. Should Apple be responsible for ensuring that its suppliers are safeguarding the basic rights and dignity of their employees? How can Apple be sure that its suppliers do not employ sweatshop labor?

2. Do multinational corporations have a moral obligation to behave in a socially responsible manner although it has adverse effects on profits?

When you answer these questions, also consider exploring Apple’s recent troubles with allegations of sweatshop conditions in supplier factories that have prompted worker suicide.

Go to https://www.theguardian.com/technology/2017/jun/18/foxconn-life-death-forbidden-city-longhua-suicide-apple-iphone-brian-merchant-one-device-extract

On January 2, 2006, in the strategic committee meeting of the company, Christine Carmen Chairman, President and Chief Executive Officer said, we are optimistic about 2006 and the years beyond. The proposed projects presently under consideration will enable us efficiently to expand our productivity in order to meet ever-increasing customers demand with high quality engineered products and systems for defense, aerospace and industrial applications.

Carmen Corporation is a supplier of sophisticated, highly engineered products and systems for defense, aerospace and industrial applications. The Company has three business segments.

The Company's Defense segment provides integrated front-line war-fighting systems and components, including electronic warfare systems, reconnaissance and surveillance systems, aircraft weapons suspension and release systems and airborne mine countermeasures systems.

The Company's Communications and Space Products segment supplies antenna products and ultra-miniature electronics and systems for the remote sensing, communications and electronic warfare industries.

The Company's Engineered Materials segment supplies piezoelectric ceramic products for commercial and military markets and advanced fiber composite structural products for the aircraft, communication, navigation, chemical, petrochemical, paper, and oil industries.

Carmen Corporation has the following financial statements:

Its established common stock’s dividend payout ratio after the preferred stock dividends payment is 50 percent and it is expected to grow at a constant rate of 9 percent in the future. The tax rate is 40 percent and investors requiring a rate of return of 15% on the common stock.

Preferred stock is trading at a price of $40 per share, with a dividend of $4.8. The 30-year long-term debt with a par value of $1,000 was issued 10 years ago with a coupon rate of 8%. The bonds can be refinanced at the market interest rate of 10 percent today.

Carmen has the following investment opportunities:

Although the average project in the Defense Segment was substantially riskier than communications and Space Products segment and Engineered Materials segment, the project evaluation process did not formally incorporate risk considerations. This lack of risk consideration was more evident in the Communications and Space Products segment and Engineered Materials segments, since their productions, earnings, and profits were highly correlated and fluctuated with the economy. As a result, these segments provided a very stable income to the company. On the other hand, the Defense segment provides military products and professional services to the United States and allied governments, and their prime defense contractors and as a result, the earnings and profits of the Defense segment tended to be tied to the world geo-political environment.

Carmen has gathered the following beta for each segment based on comparable companies:

Project             Defense           Com. Space     Eng. Materials                        

Beta                 1.50                 1.20                 0.80                

The risk-free rate is 5% and rate of the market risk premium 9.0%.

1) Calculate the required rate of return for each project?

2) Compare the required rate of return with expected rate of return, according to the risk characteristics of each project; which project is appropriate to take?