Following are dated August 31, 2018

1.When the corporation was formed on September 1, 2017, common shares were sold to the sole shareholder, Uncle Bob, for $10,000 cash.

2.Uncle Bob added up all of the invoices the company issued to its customers and the total came to $229,400. All of these were issued on credit.

3.The company received $190,000 cash from customers when they paid their invoices.

4.The company rents a small repair shop for $3,500 per month. The shop was rented for the full year and all rent was paid in cash. In addition, the landlord required the company to pay one month's rent in advance.

5.Salaries to employees totalled $120,000 for the year and were paid in cash.

6.Uncle Bob determined from a review of numerous invoices that the office expenses for the year were $36,400. Of these, all were paid except $4,000 that was still owing.

7.In late August, a new customer approached the company and signed a contract for service to be done to its computers starting in October 2018. The customer paid the company $2,000 in advance to secure the service.

8.Uncle Bob estimated that, given the net income earned by the company this year, income tax  

   expense should be $6,200 but this would not have to be paid for another two months.

9.The company declared and paid $1,000 of dividends to shareholders at the end of the year.

Question:

a)  Prepare an equation analysis of the effects of the above transactions on the expanded accounting equation.

b) Prepare an income statement, statement of changes in equity, and statement of financial position for the year.

McHale Company does business in two customer segments, Retail and Wholesale. The following annual revenue information was determined from the accounting system's invoice information:

Prepare a horizontal analysis of the segments. Round percentages to one decimal place. Enter negative values as negative numbers.

Prepare a vertical analysis of the segments. If required, round percentages to one decimal place.

on may 15 2006 you obtained an 82000, 15 year home loan at 5.1% compounded monthly,with the first payment due on june 15th 2006. The size of the monthly payment is $652.73

A. Find the balance due on the loan on December 15, 2011.

B. How much interest will be paid on the loan during 2012?

C. If you refinanced the loan on December 15, 2011 at 7.2% interest what will the size of the new payment if the term of the loan remains the same?

D. If you refinanced the loan on December 15, 2011 at 7.2% interest what will the term of the loan if the payment size remains the same?

E. If the original payment is rounded to $700 (and there is no change in the original interest rate), What will the size of the 162nd payment if it is increased from $700 to pay off the balance?

In an effort to compare vegetation growth in an area a cluster sample was done in 2006 at 8 locations each 1 square foot and mapped with GPS coordiantes.

The next year the researchers came back to the same area to see if vegetation had increased. They used the coordinates and mapped the same square foot units. The data is in the table below. Test to see if vegetation has increased in 2007 from the year previous.  

Complete all 8 steps of a hypothesis test. You may skip making a histogram.  

The Seneca Children's Fund is a local charity that runs summer camps for disadvantaged children. The fund's board of directors has been working very hard in recent years to decr4ease the amount of overhead expenses, a major factor in how charities are rated by independent agencies. The following data show the percentages of the money the fund has raised that was spent on administrative and fund-raising expenses for 2006-2012.

Year      Expense (%)

2006            13.7

2007            13.9

2008            14.8

2009            14.6

2010            14.9

2011            15.1

2012            15.6

a. Construct a time series plot. What kind of relationship exists in the data?

b. Develop a linear trend equation for these data.

c. Forecast the percentage of administrative expenses for 2013.

d. Using a smoothing constant of .2 forecast a value for 2013.

Customers at the local Subway store order an ice tea with their meal 75% of the time. Use the Binomial distribution to find the answer to the following. __________

Find the probability that among the next 8 customers, at least 3 will order ice tea with their meal: Of the next 8 customers, how many do you expect to order ice tea with their meal? __________

What is the standard deviation of the number of customers that order ice tea among the next 8 customers? (to two places after the decimal) _______

Using the Adjusted present value (APV) approach:

BTR Warehousing, which is considering the acquisition of Globo-Chem Co., estimates that acquiring Globo-Chem will result in an incremental value for the firm. The analysts involved in the deal have collected the following information from the projected financial statements of the target company:

Globo-Chem Co. is a publicly traded company, and its market-determined pre-merger beta is 1.60. You also have the following information about the company and the projected statements:

Given this information, use the adjusted present value (APV) approach to calculate the following values involved in merger analysis. (Note: Only round intermediate calculations when entering them as a final answer.)

Exercise 9-4 Prepare a Flexible Budget Performance Report [LO9-4]

Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company’s operations in July appear below:

The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount.

Required:

1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. (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.)

Financial Statement Creation – Use the information below to create B/S, I/S and Statement of Retained Earnings after adjusting for the four additional activities below.

1. Consider the following information from a company's unadjusted trial balance at December 31, 2018. All accounts have normal balances.

At year-end, the company accountant realizes that the following transactions have to be recorded:

• November 5, purchase 100 shares for the Treasury at a cost of $7 per share
• Perform half of the work customers paid for in advance
• Dec 1, Issue 1,200 shares of common stock at issue price of $10 per share
• Dec 31, declare and pay a dividend to common stock outstanding of $.50 per share

Exercise 9-4 Prepare a Flexible Budget Performance Report [LO9-4]

Vulcan Flyovers offers scenic overflights of Mount St. Helens, the volcano in Washington State that explosively erupted in 1982. Data concerning the company’s operations in July appear below:

The company measures its activity in terms of flights. Customers can buy individual tickets for overflights or hire an entire plane for an overflight at a discount.

Required:

1. Prepare a flexible budget performance report for July that includes revenue and spending variances and activity variances. (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.)