Problem 5-2A

Sheffield Corp. completed the following merchandising transactions in the month of May. At the beginning of May, the ledger of Sheffield Corp. showed Cash of $5,000 and Common Stock of $5,000.

Sheffield Corp. ’s chart of accounts includes the following: No. 101 Cash, No. 112 Accounts Receivable, No. 120 Inventory, No. 126 Supplies, No. 201 Accounts Payable, No. 311 Common Stock, No. 401 Sales Revenue, No. 412 Sales Returns and Allowances, No. 414 Sales Discounts, and No. 505 Cost of Goods Sold.

a. Journalize the transactions using a perpetual inventory system. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter "0" for the amounts. Record journal entries in the order presented in the problem.)

b. Enter the beginning cash and common stock balances and post the transactions. (Post entries in the order of journal entries presented in the previous question.)

c. Prepare an income statement through gross profit for the month of May 2019.

Use SAS to answer the question:

A drug company tested three formulations of a pain relief medicine for migraine headache sufferers.
For the experiment 27 volunteers were selected and 9 were randomly assigned to one of three drug
formulations. The subjects were instructed to take the drug during their next migraine headache episode
and to report their pain on a scale of 1 to 10 (10 being most pain)

Drug A: 4 5 4 3 2 4 3 4 4
Drug B: 6 8 4 5 4 6 5 8 6
Drug C: 6 7 6 5 7 5 6 6 5

a) Test if the means for all three drug groups are equal.
(b) If the means are not equal, perform a multiple comparison at the 0.01 level.
(c) Create a contrast to compare group B against the mean of group A and group C at the 0.01 level.

To study the effect of temperature on yield in a chemical process, five batches were produced at each of three temperature levels. The results follow.

1. Construct an analysis of variance table (to 2 decimals, if necessary). Round p-value to four decimal places.
   

   Source of Variation	Sum of Squares	Degrees of Freedom	Mean Square	F	p-value
   Treatments
   Error
   Total

   
   
2. Use a .05 level of significance to test whether the temperature level has an effect on the mean yield of the process.
   
   The p-value is Selectless than .01between .01 and .025between .025 and .05between .05 and .10greater than .10Item 11
   
   What is your conclusion?
   SelectConclude that the mean yields for the three temperatures are not all equalConclude that the mean yields for the three temperatures are all equal

Summer Tyme plc is considering a new three-year expansion project that requires an initial non-current asset investment of £3.9 million. The non-current asset actually is depreciated straight line to zero over the three years of the project. The project is estimated to generate £2,650,000 in annual sales, with costs of £835,000.Suppose the required return on the project is 13 per cent, the project requires an initial investment in net working capital of £300,000, the tax rate is 27 per cent and the non-current asset actually is depreciated straight-line to zero over the three years of the project. What is the project’s year 1 net cash flow? What is the project’s year 2 net cash flow? What is the project’s year 3 net cash flow? What is the project`s NPV?

( Should we consider net working capital in net cash flow year 3?

                          
       TFAC4001 Assessment 2020                  
Question 1                          
                          
Classic Dining Ltd. is considering opening a new restaurant in a rented facility.                          
It wishes to evaluate this investment over the five-year leasing period, on the assumption                           
that the equipment would be sold and the working capital recovered at the end of the 5th .                          
year                          
The following estimates in respect of the new restaurant have been prepared.                          
                          
                   €'000      
Premium on lease (capital expenditure)                    600      
Equipment and furnishing investment                   850      
Estimated disposal value of equipment at end of year 5                   100      
                          
Weighted average cost of capital                   11%      
                          
Estimates / Year           Year 1   Year 2   Year 3   Year 4   Year 5
                          
Numbers of customers           32,000   36,000   40,000   42,000   45,000
                          
Average revenue per customer           € 75   € 75   € 78   € 80   € 82
                          
Food & bev. costs per customer           € 23   € 24   € 25   € 26   € 27
Variable wages cost per cust.           € 19   € 20   € 21   € 22   € 23
                          
Fixed Costs           €'000   €'000   €'000   €'000   €'000
Annual rent (lease) of premises           425   425   425   425   425
Marketing and admin. expenses           225   200   180   180   180
Depreciation of equipment           150   150   150   150   150
Salaries           150   160   170   180   200
Apport. head office overheads           75   75   80   85   100
           1,025   1,010   1,005   1,020   1,055
                          
Profits lost in other restaur. €000           60   70   80   90   100
Working capital as % of turnover           4%   4%   4%   4%   4%
                          
Required:                          
                          
(a)   Evaluate the above project using the following methods:                      
                          
       Net present value                  
       Internal rate of return                  
       Nominal payback period                  
                          
(b)   Comment on the proposed investment                       (5.33 marks)
                           (33.33 marks)

                          
       TFAC4001 Assessment 2020                  
Question 1                          
                          
Classic Dining Ltd. is considering opening a new restaurant in a rented facility.                          
It wishes to evaluate this investment over the five-year leasing period, on the assumption                           
that the equipment would be sold and the working capital recovered at the end of the 5th .                          
year                          
The following estimates in respect of the new restaurant have been prepared.                          
                          
                   €'000      
Premium on lease (capital expenditure)                    600      
Equipment and furnishing investment                   850      
Estimated disposal value of equipment at end of year 5                   100      
                          
Weighted average cost of capital                   11%      
                          
Estimates / Year           Year 1   Year 2   Year 3   Year 4   Year 5
                          
Numbers of customers           32,000   36,000   40,000   42,000   45,000
                          
Average revenue per customer           € 75   € 75   € 78   € 80   € 82
                          
Food & bev. costs per customer           € 23   € 24   € 25   € 26   € 27
Variable wages cost per cust.           € 19   € 20   € 21   € 22   € 23
                          
Fixed Costs           €'000   €'000   €'000   €'000   €'000
Annual rent (lease) of premises           425   425   425   425   425
Marketing and admin. expenses           225   200   180   180   180
Depreciation of equipment           150   150   150   150   150
Salaries           150   160   170   180   200
Apport. head office overheads           75   75   80   85   100
           1,025   1,010   1,005   1,020   1,055
                          
Profits lost in other restaur. €000           60   70   80   90   100
Working capital as % of turnover           4%   4%   4%   4%   4%
                          
Required:                          
                          
(a)   Evaluate the above project using the following methods:                      
                          
       Net present value                  
       Internal rate of return                  
       Nominal payback period                  
                          
(b)   Comment on the proposed investment                       (5.33 marks)
                           (33.33 marks)

Question 1:

Kayla Company uses the perpetual inventory system and the LIFO method. The following information is available for the month of June:

The selling price (price the company charged the customers) was $10 per unit.

a) Show the calculation of cost of goods sold and ending inventory under LIFO.

b) What is the amount of Sales Revenue?

c) Prepare a journal entry for the sale of inventory on June 15.

d) In which financial statement does the amount of ending inventory appear?

e) In which financial statement do the amount of sales and amount of cost of goods sold appear?

f) What is the amount of gross margin for month June?

g) What is the gross margin percentage?

Question 2: The controller of Alt Company is applying the lower-of-cost-or-net realizable value basis of valuing its ending inventory. The following information is available:

Compute the value of the ending inventory by applying the lower-of-cost-or-NRV. Show your work.

Question 3: The management of Svetlana Corp. is considering the effects of inventory-costing methods on its financial statements and its income tax expense. Assuming that the price the company pays for inventory is increasing, which method will:

a. Provide the highest net income, LIFO or FIFO?

b. Provide the highest ending inventory, LIFO or FIFO?

c. Result in the lowest income tax expense, LIFO or FIFO?

In this​ exercise, you will investigate the relationship between a​ worker's age and earnings.​ (Generally, older workers have more job​ experience, leading to higher productivity and​ earnings.) The following table contains data for​ full-time, full-years​ workers, age​ 25-34, with a high school diploma or​ B.A./B.S. as their highest degree. Download the data from the table by clicking the download table icon A detailed description of the variables used in the data set is available here Use a statistical package of your choice to answer the following questions. Suppose you are interested in estimating the following model

Ahe​ = β0 ​+ β1Age ​+ u

Run a regression of average hourly earnings (AHE​) on age ​(Age​).

Run a regression of average hourly earnings ​(AHE​) on age ​(Age​) using the sample for which the indicator variable college​ = 0.

What is the estimated intercept β0​ & β1?

The estimated intercept β0 is ________

The estimated intercept β1 is ________

What is the difference between an income tax expense and an income tax payable, demonstrating an understanding of the difference between GAAP and tax reporting. Identify are three temporary differences and discuss how the deferred tax asset or deferred tax liability is recorded and consumed.

Identify three permanent differences and examine the reporting of permanent differences.

A pediatrician wants to determine the relation that may exist between a? child's height and head circumference. She randomly selects 8 children from her? practice, measures their height and head? circumference, and obtains the data shown in the table. Complete parts? (a) through? (e) to the right. Height? (in.) Head Circumference? (in.) 27 17.4 25.5 17.2 26 17.2 25.75 17 27.75 17.5 26.5 17.2 26.25 17.2 26.75 17.4 LOADING... Click here to see the Table of Critical Values for Correlation Coefficient. ?(a) If the pediatrician wants to use height to predict head? circumference, determine which variable is the explanatory variable and which is the response variable. The explanatory variable is height and the response variable is head circumference. The explanatory variable is head circumference and the response variable is height. ?(b) Draw a scatter diagram. Which of the following represents the? data? A. 16.9 17.6 25 28 Circ. (in) Height (in) A scatter diagram has a horizontal axis labeled “Circumference (inches)” from 16.9 to 17.6 in increments of 0.1 and a vertical axis labeled “Height (inches)” from 25 to 28 in increments of 0.5. The following 8 points are plotted, listed here from left to right: (17, 25.8); (17.2, 25.5); (17.2, 26); (17.2, 26.3); (17.2, 26.5); (17.4, 26.8); (17.4, 27); (17.5, 27.8). All vertical coordinates are approximate. The points generally rise from left to right at a constant rate. B. 16.9 17.6 25 28 Height (in) Circ. (in) A scatter diagram has a horizontal axis labeled “Height (inches)” from 16.9 to 17.6 in increments of 0.1 and a vertical axis labeled “Circumference (inches)” from 25 to 28 in increments of 0.5. The following 8 points are plotted, listed here from left to right: (17, 25.8); (17.2, 25.5); (17.2, 26); (17.2, 26.3); (17.2, 26.5); (17.4, 26.8); (17.4, 27); (17.5, 27.8). All vertical coordinates are approximate. The points generally rise from left to right at a constant rate. C. 25 28 16.9 17.6 Height (in) Circ. (in) A scatter diagram has a horizontal axis labeled “Height (inches)” from 25 to 28 in increments of 0.5 and a vertical axis labeled “Circumference (inches)” from 16.9 to 17.6 in increments of 0.1. The following 8 points are plotted, listed here from left to right: (25.5, 17.2); (25.8, 17); (26, 17.2); (26.3, 17.2); (26.5, 17.2); (26.8, 17.4); (27, 17.4); (27.8, 17.5). All horizontal coordinates are approximate. The points generally rise from left to right at a constant rate. D. 25 28 16.9 17.6 Circ. (in) Height (in) A scatter diagram has a horizontal axis labeled “Circumference (inches)” from 25 to 28 in increments of 0.5 and a vertical axis labeled “Height (inches)” from 16.9 to 17.6 in increments of 0.1. The following 8 points are plotted, listed here from left to right: (25.5, 17.2); (25.8, 17); (26, 17.2); (26.3, 17.2); (26.5, 17.2); (26.8, 17.4); (27, 17.4); (27.8, 17.5). All horizontal coordinates are approximate. The points generally rise from left to right at a constant rate. ?(c) Compute the linear correlation coefficient between the height and head circumference of a child. requals nothing ?(Round to three decimal places as? needed.) ?(d) Does a linear relation exist between height and head? circumference? ?(Round to three decimal places as? needed.) A. ?Yes, there appears to be a positive linear association because r is positive and is greater than the critical? value, nothing. B. ?Yes, there appears to be a negative linear association because r is negative and is less than the negative of the critical? value, nothing. C. ?No, there is no linear association since r is positive and is less than the critical? value, nothing. D. ?Yes, there appears to be a positive linear association because r is positive and is less than the critical? value, nothing. ?(e) Convert the data to centimeters? (1 inchequals2.54 ?cm), and recompute the linear correlation coefficient. What effect did the conversion have on the linear correlation? coefficient? Convert the first four data values to centimeters. Height? (centimeters) Head Circumference? (centimeters) nothing nothing nothing nothing nothing nothing nothing nothing ?(Type integers or decimals. Do not round. List the terms in the same order as they appear in the original? list.) Convert the last four data values to centimeters. Height? (centimeters) Head Circumference? (centimeters) nothing nothing nothing nothing nothing nothing nothing nothing ?(Type integers or decimals. Do not round. List the terms in the same order as they appear in the original? list.) The new linear correlation coefficient is requals nothing. The conversion to centimeters ? made the value of r decrease. had no effect on r. reversed the sign of r. made the value of r increase.