For the following situation, state whether the CPA has violated the CHARTERED PROFESSIONAL ACCOUNTANTS OF ONTARIO Professional Rules of Conduct and/or Independence Standard, and explain your reasoning.

1. Martha, CPA, has a practice with two departments. One department performs assurance services and the other performs bookkeeping services. One of her publicly accountable audit clients lost its controller and the bookkeeping department provided controllership services for 30 days while the company searched for a new controller. As this was an emergency, it was necessary for Martha’s firm to provide the service because it has an intimate knowledge of the client’s system.

Cindy’s Umbrellas makes two types of patio umbrellas, regular and deluxe. Suppose there is unlimited customer demand for each product. The selling prices and variable costs of each product are listed below.

                                                            Regular           Deluxe

Selling price per unit                         $40                  $110

Variable cost per unit                         20                    44

Contribution margin per unit              $20                  $66

Required machine hours/unit             0.4                   2.0

Required labor hours/unit                   2.0                   6.0

Cindy has only 160,000 machine hours available per year

Cindy has only 600,000 direct labor hours available per year

a. What are Cindy’s objective function and constraint inequalities?

b. Graph and label the constraints, denoting the feasible production set on your graph.

c. What is the value of the objective function at the intersection point of the constraints, and the two intercepts?  What is the optimal production mix?

Suppose that the inverse demand function is described by, P = 60-4(q1 +q2), where q1 is the output of the incumbent firm and q2 is the output of the entrant. Let the labor cost per unit w = 6 and capital cost per unit be r = 6. In addition, each firm has a fixed setup cost of f. (a) Suppose that in stage one the incumbent invests in capacity K1. Find the incum- bentís and entrantís best response functions in stage two. (8 pts) (b) Suppose that incumbent commits to a production capacity of K1 = 6, what is the entrantís best response? Calculate their profits as a function of f. (8 pts) (c) For fixed setup cost f = 25, what is the equilibrium? (7 pts) (d) For fixed setup cost f = 64, what is the equilibrium? (7 pts)

Show all work and answer steps in complete sentences please list them ex. Step 1 underline steps

Use a two-tailed test and α = .05.
Round up to two decimal places.

Dependent t-test
We want to test exercise on stress. A sample of participants reported their stress levels before and after exercising?Conduct four steps of hypothesis testing.

Before      After                   D
25              10                     15
25              17                      8
21              15                      6
25              14                     11

SSD = 46

Step 1 State your NULL and RESEARCH hypotheses completely
Step 2 What is the df?
Step 3 What are the cut-off points?
Step 4 What is the standard deviation of the D scores?
Step 5 What is the estimated standard error?
Step 6 What is the t-value?
Step 7 State your conclusion thoroughly.

Use a two-tailed test and α = .05.
Round up to two decimal places.

Independent t-teest
We want to compare the q scores between morning students and afternoon students. Is there a significant difference between two groups on the q scores? Conduct four steps of hypothesis testing.

AM       PM
8            7
7          1
9          1
6          8
3            8
9           11

SS for AM= 26
SS for PM = 84
Step 1 State your NULL and RESEARCH hypotheses completely.
Step 2 What is the df?
Step 3 What are the cut-off points?
Step 4 What is the pooled variance?

Step 5 What is the estimated standard error?
Step 6 What is the t-value?
Step 7 State your conclusion thoroughly.

The Lippert Company uses the periodic inventory system. The following July data are for an item in loppers inventory:

July 1 Beginning Inventory 100 units@ $8 per unit

10 Purchased 120 units@ $9 per unit

15 sold 130 units@

26 Purchased 95 units@ $10 per unit

Calculate the cost of goods sole for July and ending inventory at July 31 using (a) first-in, first out (b) last-in, first out and (c) the weighted- average cost methods. Round your final answers to the nearest dollar.

A. first-in, first-out

Ending Inventory $-

Cost of goods sold $-

B. Last-in, first-out

ending inventory $-

cost of goods sold $-

C. Weighted- average cost

ending inventory. $-

cost of goods sold $-

Use below information for Questions 9 to 10:

Company X operates a small factory in which it manufactures two products: C and D. Production and sales results for last year were as follows:

For purposes of simplicity, the firm averages total fixed costs over the total number of units produced. The research department has developed a new product (E) as a replacement for product D. Market studies show that the firm could sell 10,000 units of E next year at a price of TL117. The variable cost per unit of E is TL46. The introduction of E will lead to a 13% increase in demand for product C and discontinuation of product D. If the company does not introduce the new product, it expects next year’s results to be the same as last year’s.

9.Calculate net income for the next year if the company does not introduce product E.

10.Calculate net income for the next year if the company introduces product E.

Company X operates a small factory in which it manufactures two products: C and D. Production and sales results for last year were as follows:

Item C D

Units sold 9,000 20,000

Selling price per unit 98 75

Variable cost per unit 50 40

Fixed cost per unit 24 24

For purposes of simplicity, the firm averages total fixed costs over the total number of units produced. The research department has developed a new product (E) as a replacement for product D. Market studies show that the firm could sell 10,000 units of E next year at a price of TL115. The variable cost per unit of E is TL47. The introduction of E will lead to a 11% increase in demand for product C and discontinuation of product D. If the company does not introduce the new product, it expects next year’s results to be the same as last year’s.

Q-1) Calculate net income for the next year if the company does not introduce product E.

Q-2) Calculate net income for the next year if the company introduces product E.

Here are the returns on two stocks.

Required:

a-1. Calculate the variance and standard deviation of each stock.

a-2. Which stock is riskier if held on its own?

b. Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks.

c. Is the variance more or less than halfway between the variance of the two individual

Jack has current year net employment income of $45,000. In addition, he has the following additional sources of income, gains, and losses:

• A loss from an unincorporated business of $23,000.

• Interest income of $4,500.

• A capital gain of $27,000.

• A capital loss of $36,400.

• Spousal support paid of $24,000.

• A net rental loss of $14,500.

Determine Jack's minimum Net Income For Tax Purposes for the current year and indicate the amount and type of any loss carry overs that are available at the end of the year.

A coin is tossed three times. An outcome is represented by a string of the sort HTT (meaning a head on the first toss, followed by two tails). The

8 outcomes are listed in the table below. Note that each outcome has the same probability.

For each of the three events in the table, check the outcome(s) that are contained in the event. Then, in the last column, enter the probability of the event.