The North Central Water Company has finalized its financial statements for the 2019 financial year. The Company's board of directors has asked you, their cost accountant, to look at the financial results and to compare the financial performance for the 2019 fiscal year to the results of the 2018 financial year. The board would also like you to project the revenues and expenses for the 2020 financial year based on several key assumptions. They have asked you to submit an excel file containing the financial results and budget projections as well as a one page memorandum of your findings.

Financial Results:

Total Number of Customers       26,000 25,000

2019    % of Total Revenues   2018    % of Total Revenues

Revenues:

Water Sales $1,162,000 ? $1,200,000 ?

Late Fees 87,000 ? 68,000 ?

Fire Hydrant Fees    114,500 ? 122,000 ?

  Total Revenues $1,363,500 100% $1,390,000 100%

Expenses:

Cost of Water Sold $512,000 ? $278,000 ?

Payroll Expense 608,000 ? 450,000 ?

Overhead Expense 292,050 ?    200,000 ?

Miscellaneous Expenses 64,075. ? 78,000    ?

   Total Expenses $1,476,125 ? $1,006,000    ?

Net Income (Loss) <$112,625> ?    $ 384,000 ?

I. Excel Analysis (Please submit your answers with the excel file provided for you in Ilearn entitled "North Central Financial Results- Student Copy".

Based on the financial results provided above, complete the excel spreadsheet file provided to you and submit your file in Ilearn. Please include include your name in the filename.

.

Required:

1. Calculate each revenue and expense item as a percentage of total revenues in 2019 and 2018 (show percentages out to TWO decimal places for all revenues and expenses, but round total revenue's percentage to ZERO decimal places- see examples in spreadsheet).

2. Calculate the water sales per customer for 2019 and 2018 (show number out to TWO decimal places- see example in spreadsheet).

3. Calculate the company's budgeted financial performance for 2020 based on the assumptions listed below for each revenue and expense item. Then calculate each item as a percentage of total revenues just like you did for 2019 and 2018. Then calculate the water sales per customer for 2020 just as you did for 2019 and 2018- see examples in spreadsheet.

4. Finally, calculate the differences in each revenue and expense item between 2020 and 2019, and 2019 and 2018- see example in spreadsheet. This will provide you with some insight about the year-to-year changes and help you with your business memo which is the second part of this project.

You must use formulas in the excel spreadsheet rather typing-in calculated numbers to get

full credit. You will also run into rounding errors unless you use formulas. Some formulas

and calculated numbers have already been included in the spreadsheet to help you. YOU

SHOULD HAVE AN ANSWER WHEREVER YOU SEE A QUESTION MARK (?)

ASSUMPTIONS:

Assume that the water company expects that in 2020:

a. The number of customers will increase by 5%.

b. Water sales will increase by 4% and late fees will increase by 1% due to increased customer demand.

c. Hydrant fees will decrease by 1% because several older hydrants will be taken out of service.

d. The cost of water sales will increase by 8% because of higher chemical costs.

e. Payroll expenses will increase by 5.5% due to wage increases and higher medical

insurance expenses.

f. Overhead expense will decrease by 4% because of efforts to reduce costs.

g. Miscellaneous expenses are expected to double because of the purchase of building supplies in anticipation of a major waterline project in 2020.

Here are some check figures to help you out:

2020 Total Revenue=1,409,705

2020 Total Expense=1,602,918

2020 Water Sales per customer= $44.27

Total Income<loss> 2020 vs 2019= <$80,588>

Total Income<loss> 2019 vs 2018=<$496,625>

Total Income <loss> as a percentage of total revenue in 2020=-13.71% Total Income <loss> as a percentage of total revenue in 2019=-8.26%

In this problem, assume that the distribution of differences is approximately normal. Note: For degrees of freedom d.f. not in the Student's t table, use the closest d.f. that is smaller. In some situations, this choice of d.f. may increase the P-value by a small amount and therefore produce a slightly more "conservative" answer.

Are America's top chief executive officers (CEOs) really worth all that money? One way to answer this question is to look at row B, the annual company percentage increase in revenue, versus row A, the CEO's annual percentage salary increase in that same company. Suppose a random sample of companies yielded the following data:

Do these data indicate that the population mean percentage increase in corporate revenue (row B) is different from the population mean percentage increase in CEO salary? Use a 5% level of significance. (Let d = B ? A.)

(a) What is the level of significance?


State the null and alternate hypotheses.

H₀: ?_d = 0; H₁: ?_d < 0H₀: ?_d > 0; H₁: ?_d = 0     H₀: ?_d ? 0; H₁: ?_d = 0H₀: ?_d = 0; H₁: ?_d > 0H₀: ?_d = 0; H₁: ?_d ? 0

(b) What sampling distribution will you use? What assumptions are you making?

The Student's t. We assume that d has an approximately normal distribution.The Student's t. We assume that d has an approximately uniform distribution.     The standard normal. We assume that d has an approximately uniform distribution.The standard normal. We assume that d has an approximately normal distribution.

What is the value of the sample test statistic? (Round your answer to three decimal places.)


(c) Find the P-value. (Round your answer to four decimal places.)


Sketch the sampling distribution and show the area corresponding to the P-value.

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level ??

Since the P-value ? ?, we reject H₀. The data are statistically significant.Since the P-value > ?, we fail to reject H₀. The data are not statistically significant.     Since the P-value > ?, we reject H₀. The data are not statistically significant.Since the P-value ? ?, we fail to reject H₀. The data are statistically significant.

(e) Interpret your conclusion in the context of the application.

Reject H₀. At the 5% level of significance, the evidence is sufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary.Fail to reject H₀. At the 5% level of significance, the evidence is insufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary.     Fail to reject H₀. At the 5% level of significance, the evidence is sufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary.Reject H₀. At the 5% level of significance, the evidence is insufficient to claim a difference in population mean percentage increases for corporate revenue and CEO salary.

1. How do banks, creditors, investors, key employees, customers, and the SEC each look at the statement of cash flows for a company, and what is each stakeholder group concerned about.

2.The statement of cash flows in essence shows accrual basis financial statements, except converted to cash basis. This this statement true or false? Why or why not?

3.What is the difference between the statement of cash flows, and the free cash flow concept?

A company is considering additional final inspection costs of $1 per unit before delivery to customers. The additional inspection should reduce the defective rate from 3 percent to 1 percent. If a defective unit is found, it is scrapped at no additional cost. The manufacturing costs before the final inspection are $200 per unit. The management believes that the external failure costs are $40 per defective unit.

Required:

Should the management incur the additional inspection costs?

You have to Considered own example of your new company. On the basis of this prepare below points

1. Write a short description (2-3 sentences) of your new company. What industry is it in? What do you offer customers or clients?
2. Create 10 transactions and their corresponding journal entries for the month of September 2020.
   1. These transactions must affect: Assets, Liabilities, Owner’s Capital, Owner’s Drawings, Revenues and Expenses
3. Post the journal entries into a ledger or into T-accounts.
4. Prepare a trial balance.
5. Create 3 adjusting entries.
6. Prepare an adjusted trial balance.
7. Prepare an Income Statement, Owner’s Equity Statement and Balance Sheet.
8. Journalize your 4 closing entries.
9. Prepare a post-closing trial balance

Analyzing Abu Dhabi stock Exchange Markets (ADX) and Dubai Financial Market (DFM) The Project problem:

1. Analyze the Abu Dhabi stock Markets and Dubai Financial Market by describing the nature and the development of these two Financial markets in details.

2. Explain the difference between types of financial markets used in UAE, and how these differences are used for trading securities and the types of securities traded on those markets.

3.   Evaluate the advantages and disadvantages of long-term capital market for rising corporate finance.

The “Cash for Clunkers” program was one of the most talked about sales promotions of recent memory. As part of the government’s $3 billion effort to jumpstart sales at slumping auto dealerships, owners of old gas-guzzling vehicles received a $4,500 rebate if they traded in their “clunkers” for new fuel-efficient vehicles. Research the Cash for Clunkers sales promotion and have an in-class debate on what impact, if any, the stimulus program had on short- and long-term auto sales. Debate the environmental benefits of the program.

A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs than locating near the market, but the owners believe there would be a loss in sales volume because customers tend to favor local suppliers. Revenue per unit will be $175 in either case.

Using the above information, determine which location would produce the greater profit. (Omit the "$" sign in your response.)

(Click to select)Kansas CityOmaha would produce the greater gross profit of $ .

USM sells products it manufactures in the United States to unrelated foreign and U.S. customers who agree in a written installment debt obligation to pay the purchase price in installments over a period of 5 years. USM sells the installment obligations to Matterhorn for less than the unpaid principal balance on the obligations. Matterhorn either collects the obligations at maturity at face value or sells them to an unrelated party for more than it paid USM for them but less than their face value.

(a) What are the tax consequences of these transactions under Internal Revenue Code Sections 864(d), 951(a)(1)(A) and 954(c)?

(b) Would the result change in part (a) if Matterhorn loaned the funds directly to the unrelated foreign customers who used them to buy the products from USM for cash?

George Jetson owns and operates a restaurant and catering business which has seen the business show an increase in revenue over the last 6 months. With an increase in revenues George realized the expenses would also increase, but expected to see an increase in the cash position of the business. In reviewing the cash position and bank account, he has realized there has been a decrease in the cash position. The business receives cash and credit cards at the restaurant and also extends credit to customers for the catering business.

1. Explain the internal controls George needs to have in place for the receipt of both cash and credit cards for the restaurant.
2. Explain the issues involved with extending credit to customers in regards to both trade receivables and notes receivables.
3. Select and defend one of the methods to handle the write-off of bad debt.