Butch's Pool Service & Supply, Inc. (BPSS) is completing the accounting process for the year just ended, December 31, 2018. The transactions during 2018 have been journalized and posted. The following data with respect to adjusting entries are available:

1. BPSS owed $7,500 wages to the office receptionist and three assistants for working the last 10 days in December. The employees will be paid in January 2019.
2. On October 1, 2018, PPSS received $24,000 from customers who prepaid pool cleaning service for one year beginning on November 1, 2018.
3. The company received a $520 utility bill for December utility usage. It will be paid in January 2018.
4. BPSS borrowed $30,000 from a local bank on May 1, 2018, signing a note with a 10 percent interest rate. The note and interest are due on May 1, 2019.
5. On December 31, 2018, BPSS cleaned and winterized a customer's pool for $800, but the service was not yet recorded on December 31.
6. On August 1, 2018, BPSS purchased a two-year insurance policy for $4,200, with coverage beginning on that date. The amount was recorded as Prepaid Insurance when paid.
7. On December 31, 2018, BPSS had $3,100 of pool cleaning supplies on hand. During 2018, BPSS purchased supplies costing $23,000 from Pool Corporation, Inc., and had $2,400 of supplies on hand on December 31, 2017.
8. BPSS estimated that depreciation on its buildings and equipment was $8,300 for the year.
9. At December 31, 2018, $110 of interest on investments was earned that will be received in 2019.

Prepare adjusting entries for Butch's Pool Service & Supply, Inc., on December 31, 2018.

QUESTION ONE

Zambian government officials have in several for advocated for the use of Public Private Partnerships (PPP) to enhance the delivery of public infrastructure projects in the country. This comes from the backdrop that despite the PPP Act 14 being enacted in August 2009, very few projects have been implemented in Zambia through the PPP model.

With the aid of a practical example of a PPP project in Zambia, explain the term Public private partnership (PPP).           

Identify and briefly discuss five(5) models of PPP                                  

Briefly discuss the reasons(objectives) why public institutions enter into PPP agreements                                                                                           

Briefly discuss the challenges encountered in the implementation of PPP       

QUESTION TWO                                                                                                

The University of Lusaka (Unilus) intends to build a new campus on a newly acquired piece of land along the Great East Road. It intends to use the project finance model to realize this project and has therefore set up a special purpose vehicle (SPV) called University of Lusaka(2014) Limited(Unilus 2014).Unilus will hold 60% of the equity of Unilus 2014 while the other 40% will be shared equally between City Works Construction Limited and Top-Hole consulting Limited.

The total cost of this project is $2Million.The shareholders will provide $500,000 while the balance will be raised from the Zambian syndicated loan Markets. The idea to raise funds from via a syndicated loan was made by the consultants who were engaged to the best way of financing the project. The shareholders and project team have limited knowledge on what loan syndication entails.

Required:

Explain what loan syndication is and what the process involves.             

Different banks play different roles in the syndicated process. Discuss the roles banks play in the loan syndication process.                                                        

Explain the forms of compensation typically available to banks who participate in a syndicate.                                                                                              

Lead managers typically invite a number of banks to participate in the syndicate by way of booking the transaction on their balance sheets. However, in practice not all banks take up the invitation to participate. Discuss some of the reasons banks cite for their non-participation in a project finance deal                    

QUESTION THREE

Big-Brain, a Lusaka company is considering a K9, 000,000 investment in a product called ‘ALPHA’ with a life span of four years. The scrap value of the equipment used in the production of ‘ALPHA’ is estimated to be K1, 500,000 at end of year four. The company has estimated production costs to be as follows:

Variable costs are K8 per unit and;

Fixed costs are K270,000 per year

The company expects to produce and sell 250,000 units per year. The estimated selling price for ALPHA is K21 per unit. Included in the fixed costs is depreciated of K15, 000 per year.

The project cost of capital is 10%.

Required:

Find the relevant cash flows for years zero through four                           

Calculate the NPV of the project and advise whether the investment is financially viable.                                                                                      

Calculate the payback period and discounted payback period                  

Calculate the PI and the ARR for the project                                         

Calculate the Internal Rate of Return (IRR) of the project and advise whether the investment is financially viable.                                                       

QUESTION FOUR

In order to determine the ability of a project to meet its debt obligations, it is important to forecast the project cash flows. Explain why it is important to carry out a cash flow analysis in project finance and the five factors that need to be considered when calculating cash flows.                                                                                                                                 

Explain the two terms in relation to project finance Limited recourse and Non- recourse.                                                                                  

Identify three groups of potential risks to project finance and explain how you can hedge against such while managing the project.

QUESTION FIVE                                                                                        

Venture capitalists are businesses that will invest in new start-ups. They will give the new start-up financial backing and advice in return for a share of the company and any potential profits, this could be an effective way to raise project finances for start-up and other project ventures that have limited operating history, little experience and don’t have access to capital market.

List and explain the stages in the funding process.                                                                                                                  

List and explain the different types of capital funding available from Venture capitalists.                                                                                              

The exit strategy is the venture capitalist way of cashing out on its investment in a portfolio company. List and explain three exit strategies for venture capitalist.                                                                                                                                                                                                                                                                                                                         

You are seeking K1.5million from a venture capitalist to finance the launch of your online financial search engine. You and the VC agree that your venture is currently worth K3million, and when the company goes public in an IPO in five years, it is expected to have a market capitalization of K20 million. Given the company’s stage of development, the VC requires a 50 percent return on investment. What fraction of the firm will the VC receive in exchange for its K1.5 million investment in your company?                                                                                                                                                                            

Which equity markets are more liquid, developed or emerging markets?

Which equity markets are more concentrated, developed or emerging markets?

What is cross-listing? Give an example of cross-listing. Explain three reasons for cross-listing.

What is ADR? Are ADRs of Toyota company denominated in US dollars or in Japanese Yen?

Are ADRs traded on US stock exchange or Japanese exchange?

Are dividends paid in US dollars or Yen?

Total risk of a security’s return could be decomposed into which two risk?

Why might systematic risk within a nation be nonsystematic and diversifiable outside the country?

Do emerging markets have higher or lower risk and return than developed markets? Which country has the highest equity return correlation with US?

Which has the lowest correlation with US?

What is the implication on international portfolio diversification?

What is home asset bias?

Give four possible reasons to explain home bias. Suppose you are considering making a large amount of equity investment, what motives you to buy domestic stocks, foreign stocks, or a combination of both?

The University of Danville is a private not-for-profit university that starts the current year with $700,000 in net assets: $400,000 without donor restrictions and $300,000 with donor restrictions. The $300,000 is composed of $200,000 with purpose restrictions and $100,000 that must be held permanently.

The following transactions occurred during the year.

1. Charged students $1.2 million for tuition and fees.
2. Received a donation of equity investments that had cost the owner $100,000 but is worth $300,000 currently. According to the terms of the gift, the university must hold the investments forever but can spend the dividends for any purpose. Any changes in the value of these securities must be held forever and cannot be spent.
3. Received a cash donation of $700,000 that must be spent to acquire laboratory equipment.
4. Awarded scholarships to students in the amount of $100,000.
5. Paid salary expenses of $149,000 (teaching), $80,000 (research), $50,000 (administrative), and $40,000 (fundraising).
6. Learned that a tenured faculty member is contributing his services for this year and will not accept his $80,000 salary. His time is 70 percent teaching and 30 percent research.
7. Spent $200,000 of the money in (c) on laboratory equipment. The donor had made no specifications about the recording of the acquisition. The equipment is used 80 percent of the time for research and 20 percent of the time for teaching.
8. Learned that the investments in (b) are worth $339,000 at the end of the year.
9. Received cash dividends of $9,000 on the investments in (b).
10. Computed depreciation expense for the year on the equipment in (g) as $32,000.
11. The school’s board of trustees votes to set aside $100,000 of previously unrestricted cash for the future purchase of library books.
12. Received an unconditional promise of $10,000 halfway through the year. The school expects to collect the money in three years. The $10,000 future payment has a present value of $7,513 based on a reasonable annual interest rate of 10 percent.
13. Received an art object as a gift. It is worth $70,000. For financial reporting, it qualifies as work of art/museum piece. The school prefers not to record such gifts unless required.
14. Paid utilities and other general expenses of $83,000 (teaching), $45,000 (research), $43,000 (fundraising), and $50,000 (administrative).
15. Received free services from alumni who come to campus each week and put books on the shelves in the library. Over the course of the year, the school would have paid $103,000 to have this work done.
16. Near the end of the year, the school received a pledge of $40,000 to be collected in two years. It is judged to be conditional and has a present value of $31,200.

Determine the end-of-year balances for net assets without donor restrictions and net assets with donor restrictions by creating a statement of activities for the period. The school has two program services: education and research. It also has two supporting services: fundraising and administration.

During this course you will design a program for a state university. The university needs a website design that will enable students to order books online. Each week you will receive additional instructions for the elements of the design based on the needs of the university. The elements will correspond with the concepts and skills you learn that week.

According to the university's website design request, students need to order five books, one for each of the five required courses that all students take. You need to design a program that will prompt students for the price of each book and display the total cost for the five books.

Create a 1- to 1 3/4-page document listing the steps needed to solve the problem using an algorithm, including the following:

• Identify the input needed
• Define what the input must do (i.e., the process)
• Show what the output must produce

Create a 1/2- to 1-page document of your pseudocode based on the algorithm, including the following:

• Write the pseudocode statement(s) for the input
• Write the pseudocode statement(s) for the process
• Write the pseudocode statement(s) for the output

Create a 1-page flowchart based on the algorithm, including the following:

• Mark the program's starting point
• Represent the input steps in the program
• Represent the process steps in the program
• Represent the output steps in the program
• Mark the program's ending point

The number of undergraduate students at the University of Winnipeg is approximately 9,000, while the University of Manitoba has approximately 27,000 undergraduate students. Suppose that, at each university, a simple random sample of 3% of the undergraduate students is selected and the following question is asked: “Do you approve of the provincial government’s decision to lift the tuition freeze?”. Suppose that, within each university, approximately 20% of undergraduate students favour this decision. What can be said about the sampling variability associated with the two sample proportions?
(A) The sample proportion for the U of W has less sampling variability than that for the U of M.

(B) The sample proportion for the U of W has more sampling variability that that for the U of M.

(C) The sample proportion for the U of W has approximately the same sampling variability as that for the U of M.

(D) It is impossible to make any statements about the sampling variability of the two sample proportions without taking many samples.

(E) It is impossible to make any statements about the sampling variability of the two sample proportions because the population sizes are different.

Could you explain why answer is (B)

In 2003, forty percent of the students at a major university were Business majors, 35% were Engineering majors and the rest of the students were majoring in other fields. In a sample of 600 students from the same university taken in 2004, two hundred were Business majors, 220 were Engineering majors and the remaining students in the sample were majoring in other fields. At 95% confidence, test to see whether there has been a significant change in the proportions between 2003 and 2004

Test statistic:

Explanation:

is it a

normal distribution, t distribution with 29 degrees of freedom, t-distribution with 70 degrees of freedom, Chi-square with 2 degrees of freedom, Chi-square with 1 degree of freedom

The heights of female students at a university follows Normal distribution with a mean 66 inches and a standard deviation 3 inches. A researcher randomly selects 36 female students from the university, surveys their heights and calculates a sample mean.

Now suppose that the population standard deviation is unknown. Also, the researcher calculate the sample standard deviation to be 3 inches.

a) What is the probability that the sample mean height is between 65 inches and 67 inches?

b) Instead of 36, suppose the sample size is 64 only for this sub-question. Then what is the probability that the sample mean height is between 65 inches and 67 inches?

Please answer in excel format if possible! And show the function! Thank youuuu

USE THREE DECIMALS FOR ALL OF THE ANSWERS. Health experts’ estimate for the sensitivity of coronavirus tests, as they are actually used, is 0.7. They also think the specificity is very high. Suppose specificity is 0.99 and that the health experts’ estimated sensitivity is correct (0.7).

a. In a population where 20% of the population is infected with the coronavirus, what is the probability that a person who tests positive actually is infected?

b. Continued. What is the probability that a person who tests negative actually is not infected? In the US, testing initially was very selective. In other words, as of early April 2020, only patients (i) with symptoms (ii) who contacted the health care system were being tested. For the most part, tests were not obtainable on demand, and there was very limited testing of asymptomatic people, even if they had been in contact with someone who had tested positive. When testing is selective, then for interpreting results of testing, what matters is not the fraction of the entire population who are infected, but rather the fraction of the tested population who are infected.

c. If the prevalence of infection in the tested population is 0.8 (in other words, if 80% of people tested have the infection), what is the probability that a person who tests positive actually is infected?

d. Continued. What is the probability that a person who tests negative actually is not infected?

INSTRUCTIONS: READ THE FOLLOWING SITUATION AND ANSWER THE QUESTIONS ARISING FOR THE CASE ANALYSIS.

“STONYFIELD FARM GOES TO THE BLOGS”

The Stonyfield Farm story is a kind of legend. In 1983, friends and social activists Gary Hirschberg and Samuel Kaymen started with a good yogurt recipe, seven cows, and a dream. They established an organic yogurt company in Wilton, New Hampshire, to take advantage of baby boomers' growing concerns about natural foods and health, and to revitalize the dairy industry in New England. Stonyfield Farms has grown to become the third largest organic company in the world, with annual sales of more than $ 50 million in 50 states. It produces more than 18 million glasses of yogurt each month.

Stonyfield Farrn's spectacular growth is attributable in part to its ability to offer a product to a special niche market - people who value healthy food and want to protect the environment. These values ​​have become part of the "personality" of the company. Stonyfleld promises to use only natural ingredients and milk that has not been produced with antibiotics, synthetic growth hormones, or pesticides or toxic fertilizers. The company donates 10 percent of its profits each year to projects that help protect or restore the planet.

As the company expanded, management feared that it might lose touch with its loyal and committed customer base. Advertising based on traditional media was expensive and did not really help the company to "connect" with the kind of people it was trying to reach. This company prefers word-of-mouth techniques that deliver its message to customers in ways more compatible with its popular, organic, and activist-friendly image.

Stonyfield has multiple active email newsletters with more than 500,000 subscribers, and typically posts messages promoting causes that he supports on the tops of his yogurt glasses. Now she's turning to blogging to further personalize her customer relationships and reach even more people. Inspired by Howard Dean's presidential campaign and Dean's blogger tutorials, CEO Hirschberg became convinced that Stonyfield could use blogging to create a more personal relationship with consumers, different from the traditional sales relationship. "Blogs give us what we call a handshake with consumers" and "a little more access to us

Stonyfield now publishes two separate blogs on his website — Baby Babble and Bovine Bugle. At one time Stonyfield was running five blogs, but decided to withdraw three of them because they weren't attracting enough readers. Baby Babble provides a forum for Stonyfield employees and other parents of young children to meet and discuss child development and balance work with the family. Stonyfield created that blog because baby yogurts are one of its most popular product lines, and parenting blogs seem to appeal to a large number of readers. The Bovine Bugle provides reports about Jonathan's Organic Dairy Farm. Gates in Franklin, Vermont, a member of the organic cooperative that supplies milk for Stonyfield products.

This blog sparks a large number of nostalgic comments from readers who remember their childhood on a farm. As organic food grows in importance, these blogs help the company showcase the aspects that make it different from other brands and invite customers to help them in this endeavor. Stonyfield continually posts new content to each of the blogs. Readers can subscribe to any of them and automatically receive updates when available. And of course they can reply to these posts.

The benefits of blogging for Stonyfield have not yet been quantified so far, but management is confident there are real benefits. Blogs have created a positive response for the Stonyfield brand by providing readers with something that inspires them or sparks their interest -If blogs give new information to readers, inspire them to protect the environment or ask them for opinions, the administration believes that They will remember the brand when they are in front of the yogurt shelves in the supermarket or grocery store and that they will take a Stonyfleld product instead of a competitor when it is time to choose. Stonyfield has a fairly large website. Blogs offer a way to highlight some of the content on the Web that would otherwise be lost. This, too, helps drive some blog readers to buy Stonyfield products.

III. Is the strategy of using "blog" one that provides a competitive advantage to the company? Explain your answer. What are the advantages and disadvantages of using blogs for a company like this?