Questions
Ten months ago, Tom Smith, a friend of yours from college, founded Smith Sales Company, and...

Ten months ago, Tom Smith, a friend of yours from college, founded Smith Sales Company, and the business is doing quite well. Tom comes to you for advice. He needs to prepare financial statements to present to a bank for a expansion loan. His bookkeeper has recorded entries in a general journal and posted the entries to T-accounts in the ledger. However, the bookkeeper does not know how to prepare financial statements. Tom does not know what financial statements are and what they are supposed to report. He has asked for your help in preparing financial statements for the bank.

Requirements: (Part A: 50 points maximum; part B: 50 points maximum)

A. 1. Prepare for Tom a critical analysis of the financial statements that need to be prepared.

2. Include in your analysis the financial statements that need to be prepared, the stakeholders involved, and the informational needs of the stakeholders.

In: Accounting

For centuries, people have believed myths and misconceptions about psychological disorders and the people who suffer...

For centuries, people have believed myths and misconceptions about psychological disorders and the people who suffer from them. Modern psychological research has allowed us to correct some of these misconceptions. As a result, many people have changed their ideas about mental and emotional disorders. Think of a common misconception you have observed in society or in your personal experience. How could information from research be used to change people's views of psychological disorders? How can this information help us to better understand people who experience mental and emotional disorders?

In a multi-paragraph essay, describe the misconception you observed and discuss how information from research could be used to change this misconception about psychological disorders and the people who suffer from them.

In: Psychology

Develop a Entity-Relationship Diagram (ERD) Many-to-Many The city of Terra Haute, IN wants to maintain information...

Develop a Entity-Relationship Diagram (ERD)

Many-to-Many

The city of Terra Haute, IN wants to maintain information about its extensive system of high schools, including its teachers and their university degrees, its students, administrators, and the subjects that it teaches.

Each school has a unique name, plus an address, telephone number, year built, and size in square feet. Students have a student number, name, home address, home telephone number, current grade, and age. Regarding a student’s school assignment, the school system is only interested in keeping track of which school a student currently attends. Each school has several administrators, such as the principal and assistant principals. Administrators are identified by an employee number and also have a name, telephone number, and office number.

Teachers are also identified by an employee number and each has a name, age, subject specialty such as English (assume only one per teacher), and the year that they entered the school system. Teachers tend to periodically move from school to school and the school system wants to keep track of the history of which schools the teacher has taught in, including the current school. Included will be the year in which the teacher entered the school and the highest pay rate that the teacher attained at the school. The school system wants to keep track of the universities that each teacher attended, including the degrees earned and the years in which they were earned. The school system wants to record each university’s name, address, year founded, and Internet URL (address.) Some teachers, as department heads, supervise other teachers. The school system wants to keep track of these supervisory relationships but only for teachers’ current supervisors.

The school system also wants to keep track of the subjects that it offers (e.g. French I, Algebra III, etc). Each subject has a unique subject number, a subject name, the grade level in which it is normally taught, and the year in which it was introduced in the school system. The school system wants to keep track of which teacher taught which student which subject, including the year this happened and the grade received.

In: Computer Science

im and Martha paid $7,900 in qualified employment-related expenses for their three young children who live...

im and Martha paid $7,900 in qualified employment-related expenses for their three young children who live with the in their household. Martha received $1,800 of dependent care assistance from her employer, which was properly excluded from gross income. The couple had $57,000 of AGI earned equally. What amount of child and dependent care credit can they claim on their Form 1040? How would your answer differ (if at all) if the couple had AGI of $36,000 that was earned entirely by Tim?

In: Accounting

Adina, age 32, is a married architect with one child. Her salary has reached a plateau...

Adina, age 32, is a married architect with one child. Her salary has reached a plateau at $85,000 a year. She believes that if she pursues an MBA degree full-time, she would move into a managerial position and her salary would rise by $60,000 a year. Adina wants to maintain her current lifestyle, which already generates substantial yearly cash savings and accumulate the capital to leave to her son. Her MBA course would take two years to complete and cost $52,000 a year. Because she plans to pay for the MBA out of existing savings and would be spending the money to qualify for a new position, she would not be eligible for any tax benefits. Assume that Adina pays one-third of her salary in taxes and her tax bracket will remain unchanged after the raise, that she can earn 6 percent after taxes on investments with a similar risk to her job, and that she plans to retire at age 65. Furthermore, assume that all salary and schooling payments are made in a lump sum at the beginning of each year. What is her rate of return on this investment? Should she pursue an MBA? If so, what will be the value of her human capital, assuming a calculation that incorporates salary forgone and her extra salary from obtaining her MBA upon graduation?

In: Finance

One study reports that 27 ​% of newly hired MBAs are confronted with unethical business practices...

One study reports that 27 ​% of newly hired MBAs are confronted with unethical business practices during their first year of employment. One business school dean wondered if her MBA graduates had similar experiences. She surveyed recent graduates from her​ school's MBA program to find that 24 ​% of the 115 graduates from the previous year claim to have encountered unethical business practices in the workplace What is the value of the test​ statistic? A. The assumptions and conditions are not​ met, so the test cannot proceed. B. The test statistic is nothing . ​(Round to two decimal places as​ needed.)

In: Statistics and Probability

Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president...

Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelly Couts, who inherited the company. The company originally repaired radios and other household appliances when it was founded more than 70 years ago. Over the years, the company expanded, and it is now a reputable manufacturer of various specialty electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company in its finance department. One of the major revenue-producing items manufactured by Conch Republic is a smartphone. Conch republic currently has one smartphone model on the market and sales have been excellent. The smartphone is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current smartphone has limited features in comparison with new models. Conch Republic spent $1.2 million to develop a prototype for a new smartphone that has all the features of the existing one but adds new features such as Wifi tethering. The company has spent a further $250,000 for a marketing study to determine the expected sales figures for the new smartphone. Conch Republic can manufacture the new smartphone for $210 each in variable costs. Fixed costs for the operation are estimated to run $5.3 million per year. The estimated sales volumes are 64,000, 106,000, 87,000, 78,000, and 54,000 per year for each of the next five years, respectively. The unit price of the new smartphone will be $515. The necessary equipment can be purchased for $38.5 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $5.8 million. Net working capital for the smartphones will be 20 percent of sales and will occur with the timing of the cash flows for the year (i.e., there is no initial outlay for NWC). Changes in NWC thus will occur first in year 1 with the first year’s sales. Conch Republic has a 22 percent corporate tax rate and a required return of 12 percent. Shelly has asked Jay to prepare a report that answers the following questions:

6) what is the payback period of the project?

7) What is the profitability index of the project?

8) What is the IRR of the project?

9) What is the NPV of the project?

10) How sensitive is the NPV to changes in the price of the new smartphone?

11) How sensitive id the NPV to changes in the quantity sold?

12) Should Conch Republic produce the new smartphone?

In: Accounting

Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president...

Conch Republic Electronics is a midsized electronics manufacturer located in Key West, Florida. The company president is Shelly Couts, who inherited the company. The company originally repaired radios and other household appliances when it was founded more than 70 years ago. Over the years, the company has expanded, and it is now a reputable manufacturer of various specialty electronic items. Jay McCanless, a recent MBA graduate, has been hired by the company in its finance department.

One of the major revenue-producing items manufactured by Conch Republic is a smartphone. Conch Republic currently has one smartphone model on the market and sales have been excellent. The smartphone is a unique item in that it comes in a variety of tropical colors and is preprogrammed to play Jimmy Buffett music. However, as with any electronic item, technology changes rapidly, and the current smartphone has limited features in comparison with newer models. Conch Republic spent $750,000 to develop a prototype for a new smartphone that has all the features of the existing one but adds new features such as wifi tethering. The company has spent a further $200,000 for a marketing study to determine the expected sales figures for the new smartphone.

Conch Republic can manufacture the new smartphone for $205 each in variable costs. Fixed costs for the operation are estimated to run $5.1 million per year. The estimated sales volume is 64,000, 106,000, 87,000, 78,000, and 54,000 per year for the next five years, respectively. The unit price of the new smartphone will be $485. The necessary equipment can be purchased for $34.5 million and will be depreciated on a seven-year MACRS schedule. It is believed the value of the equipment in five years will be $5.5 million.

Networking capital for the smartphones will be 20 percent of sales and will occur with the timing of the cash flows for the year (i.e., there is no initial outlay for NWC). Changes in NWC will thus first occur in Year 1 with the first year's sales. Conch Republic has a 35 percent corporate tax rate and a required return of 12 percent.

Shelly has asked Jay to prepare a report that answers the following questions:

How sensitive is the NPV to changes in the price of the new smartphone?

How sensitive is the NPV to changes in the quantity sold?

Should Conch Republic produce the new smartphone?

Suppose Conch Republic loses sales on other models because of the introduction of the new model. How would this affect your analysis?

In: Finance

Paraphrase below please! ----------------------------------------------- Matt’s university employer presented a large pool of people to the insurance...

Paraphrase below please!

-----------------------------------------------

Matt’s university employer presented a large pool of people to the insurance company. Insurance companies will insure a large pool of customers for less money than they will insure individuals for two reasons. First, employees of such a large employer are unlikely to be any less healthy, on average, than any other group of people with the same distribution of and gender. Since people are unlikely to select university employment based on their likelihood to use health insurance, the insurance company avoids the problem of adverse selection. Second, the law of large numbers predicts that the incidence of a large health insurance claim in this large population would be about what you would statistically expect in the population as a whole. In addition, a university pool is typically healthier than average population since it contains more educated and younger enrollees. Individuals or small groups, on the other hand, don’t give insurance companies this risk-pooling advantage, and individuals who seek health insurance may be doing so because of adverse selection-that is, because they know they are in poorer-than-average health. As a result, the insurance company must charge Matt a higher premium if he quits.

In: Economics

Paraphrase below please! ----------------------------------------------- Matt’s university employer presented a large pool of people to the insurance...

Paraphrase below please!

-----------------------------------------------

Matt’s university employer presented a large pool of people to the insurance company. Insurance companies will insure a large pool of customers for less money than they will insure individuals for two reasons. First, employees of such a large employer are unlikely to be any less healthy, on average, than any other group of people with the same distribution of and gender. Since people are unlikely to select university employment based on their likelihood to use health insurance, the insurance company avoids the problem of adverse selection. Second, the law of large numbers predicts that the incidence of a large health insurance claim in this large population would be about what you would statistically expect in the population as a whole. In addition, a university pool is typically healthier than average population since it contains more educated and younger enrollees. Individuals or small groups, on the other hand, don’t give insurance companies this risk-pooling advantage, and individuals who seek health insurance may be doing so because of adverse selection-that is, because they know they are in poorer-than-average health. As a result, the insurance company must charge Matt a higher premium if he quits.

In: Economics