Web Wizard, Inc., has provided information technology services for several years. The company uses the percentage of credit sales method to estimate bad debts for internal monthly reporting purposes. At the end of each quarter, the company adjusts its records using the aging of accounts receivable method. The company entered into the following selected transactions during the first quarter of 2017:

1. During January, the company provided services for $40,000 on credit.
2. On January 31, the company estimated bad debts using 1 percent of credit sales.
3. On February 4, the company collected $20,000 of accounts receivable.
4. On February 15, the company wrote off a $100 account receivable.
5. During February, the company provided services for $30,000 on credit.
6. On February 28, the company estimated bad debts using 1 percent of credit sales.
7. On March 1, the company loaned $2,400 to an employee who signed a 6 percent note, due in six months.
8. On March 15, the company collected $100 on the account written off one month earlier.
9. On March 31, the company adjusted for uncollectable accounts, based on the following aging analysis, which includes the preceding transactions (as well as others not listed). Prior to the adjustment, Allowance for Doubtful Accounts had an unadjusted credit balance of $1,200.
10. On March 31, the company accrued interest earned on the note.

1-a. For items (a) through (j), analyze the amount and effects on specific financial statement accounts and the overall accounting equation. (Enter any decreases to the account with a minus sign.)

-b. Prepare the journal entries for the above items. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)
2. Show how the receivables related to these transactions would be reported in the current assets section of a classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

3. Name the accounts related to Accounts Receivable and Note Receivable that would be reported on the income statement and indicate whether they would appear before or after Income from Operations.

Consider the following relational database schema:

            employee(employee-name, employee-id, street, e-city)

            works(employee-id, company-id, salary)

            company(company-name, company-id, c-city)

            manages(employee-id, manager-id)

Specify the following queries on this database schema using the relational operators we discussed in class. Write your answers on a separate sheet of paper in the order that they are specified below.

1. Retrieve the name and address of employees who work for First Bank Corporation.

2. Retrieve the name, street address, and city of residence of all employees who work for Thrifty Industries and earn more than $10,000 per year.

3. Retrieve the name of all employees who live in the same city as the company for which they work.

4. Retrieve the name of all employees who live on the same street and in the same city as do their managers.

5. Retrieve the name of all employees who do not work for First Bank Corporation.

6. Retrieve the name of all employees who earn more than every employee of Small Bank Corporation.

7. (Assume that companies may be located in several cities) Retrieve all companies located in every city in which Thrifty Industries is located.

8. For each company, find the average salary of employees working for that company.

9. For each city, find the number of employees who work for at least one company in that city.

3.Following 2 decades of relatively low fertility, the US had a baby boom (sharp increase in fertility) from about 1950 to 1970, then declining fertility since then. [15 points] a.Draw and explain age pyramids for the US in 1990 and 2020. b.What is the NAIRU? What do the letters stand for, and what does it mean in plain English? c.Explain how changes in US fertility over time and the shape of the age pyramids affected the NAIRU in 1990 and 2020.

One of the most fundamental issues in business law involves the question of when a company can be held liable for the acts of an individual person, whether this involves a contractual obligation or a personal injury (meaning a tort). Choose one of the scenarios below and explain whether or not you think the business is liable for the acts under the principles of agency law.

A real estate agent hires a handful of local kids to do the landscaping of homes that he is trying to sell. In addition to the general payment, he reimburses them for the cost of gasoline for lawn mowers and other equipment. While mowing a lawn, one of the kids loses control of a lawn mower and it mows down a neighbors very expensive collection of lawn gnomes.

In a hurry to get his apartment complex painted, a homeowner hires three people he meets at the local home improvement store to do the work. Since they’re not professional painters, he provides all of the equipment and paint needed to do the work. While at the apartment complex, one of them breaks into an apartment, assaults the resident and steals a wallet.

An entrepreneur decides to open up his own car-for-hire business, and creates an app allowing anyone to connect with people who need a ride. The passengers pay the entrepreneur, who in turn pays a percentage to the driver. Other than the app, the entrepreneur has no other involvement between the driver and the passenger. One night, a driver who is intoxicated picks up a passenger and then gets into an accident, and the passenger is severely injured.

You have recently graduated from your university course and start work with an audit firm. You meet an old school friend, Nayan, for dinner — you haven't seen each other for several years. Nayan is surprised that you are now working as an auditor because your childhood dream was to be a ballet dancer. Unfortunately, your knees were damaged in a fall, and you can no longer dance. The conversation turns to your work, and Nayan wants to know how you do your job. Nayan cannot understand why an audit is not a guarantee the company will succeed. Nayan also thinks that company managers will lie to you in order to protect themselves. As an auditor, you would have to assume that you cannot believe anything a company manager says to you.

Required: (a) Write a letter to Nayan explaining the concept of reasonable assurance, and how reasonable assurance is determined. Explain why an auditor cannot offer absolute assurance (b) Explain in the letter to Nayan the concept of 'professional scepticism' and how it is not the same as assuming that managers are always trying to deceive auditors

6. Dan purchased a fixed annuity from Excellent Life Insurance Company, naming his wife, Kathy, as annuitant and his daughter, Jessica, as beneficiary. Who controls the contract?

• a. Dan
• b. Kathy
• c. Jessica
• d. Dan and Kathy, jointly

H and W are married and have twins that are attending State University as freshmen this year. State University is on the semester system and charges $10,000 tuition per semester. H and W pay State University $20,000 this year. H and W have adjusted gross income of $165,000. The allowable HOPE (or American Opportunity Tax Credit) credit for H and W is a. $5,000 b. $2,000 c. $1,250 d. $3,750 e. $0

The Japanese market is on the verge of rising again, and the UK market is doing better than the US market in the current economic recovery. Therefore, as a US investor, John is contemplating investing in the Japanese and UK stock markets. Using the historical data, John has estimated the means, volatilities, and correlation of the US, UK, and Japanese stock markets as the following:
US UK Japan
Means 0.120 0.150 0.084
St. Dev. 0.150 0.240 0.220
Correlation matrix:
US UK Japan
US 1.000 0.500 0.266
UK 0.500 1.000 0.358
Japan 0.266 0.358 1.000
Assume that the risk-free rate is 4%. .
(a) Given the data above, what are the Sharpe ratios on the US portfolio and the UK portfolio? Given the correlation between US and UK above, should John add the UK portfolio to his US only portfolio?
(b) To see how robust his conclusion is on the issue of adding UK stocks to his portfolio, John wants to know the lowest expected return on UK stock can be in order to improve his Sharpe ratio from holding the two country stocks, given the correlations, volatilities and US Sharpe ratio. What is it? Show your reasoning and computations.
(c) What is the Sharpe ratio for the Japanese equity? Similar to (b), compute the lowest expected return for the Japanese equity. Are the differences between your answers to (b) and (c) surprising? Why or why not?