A friend of yours has asked for your assistance in determining the gross profit for her new promotions company that distributes branded refillable water bottles to her only client. The agreed upon selling price to her customer for the entire year was $5.00 per unit.

Her beginning and ending inventory were 500 units and there was no inventory shrinkage or returns. Assume the starting inventory cost per unit was $2.00. She uses a periodic inventory method. Her purchases were as follows, which included shipping charges.

What was her total gross profit for the year? Which inventory cost flow assumption did you use and why (either FIFO, LIFO, Avg.)? Formulate a thoughtful response in 100 to 250 words. Include the accounting principle(s) you used.

Dade Industries makes syringes. The demand for the next four quarters and the cost data are given below. Each employee can produce 100 syringes per quarter. Because of union contract no overtime is permissible. The current work force is 18 workers.

Hiring costs = $1000/ worker; Layoff costs = $ 700/worker;

Regular time wages = $10000/worker/quarter;

Inventory holding costs = $2.00/unit/quarter

1. For a level strategy in this manufacturing example:

1. Which decision variable is maintained constant in the planning horizon? What factor varies?

2. What information helps you decide the production rate needed?

3. What is the production rate?

4. Calculate the workers needed (round up to a full worker).

5. Calculate the anticipation inventory.

2. Calculate the cost of the above strategy.

On December 31, 2021, Yard Art Landscaping leased a delivery truck from Branch Motors. Branch paid $36,000 for the truck. Its retail value is $105,145.

The lease agreement specified annual payments of $29,000 beginning December 31, 2021, the beginning of the lease, and at each December 31 through 2024. Branch Motors’ interest rate for determining payments was 10%. At the end of the four-year lease term (December 31, 2025) the truck was expected to be worth $11,000. The estimated useful life of the truck is five years with no salvage value. Both companies use straight-line amortization or depreciation.

Yard Art guaranteed a residual value of $7,000. Yard Art’s incremental borrowing rate is 9% and is unaware of Branch’s implicit rate.

A $1,000 per year maintenance agreement was arranged for the truck with an outside service firm. As an expedient, Branch Motors agreed to pay this fee. It is, however, reflected in the $29,000 lease payments.(FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

9. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2022.
10. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2024 (the final lease payment).
11. Prepare the appropriate entries for both Yard Art and Branch Motors on December 31, 2025 (the end of the lease term), assuming the truck is returned to the lessor and the actual residual value of the truck was $2,000 on that date.

1.

On 1/1/24, Traverse Company sold 100 components at $700 each. All sales were cash sales. Estimated total cost servicing the components was $1,100 each year of the five-year warranty. Traverse spent $1,500 servicing the components in 2024 and $500 servicing components in 2025.

This is considered an "assurance-type" warranty; Traverse uses the Expense Warranty approach. What is the 2025 Warranty Expense?

Select one:

a. $0

b. $4,000

c. $1,500

d. $5,500

e. $4,900

2.

On August 1, 2022, Burdick Co. issued bonds with a face value of $600,000. The bonds carry a stated interest rate of 8%; interest is payable each June 1st and December 1st. The bonds were issued at 102 plus accrued interest. The straight-line method is used. The bonds mature on 6/1/25.

What was the total cash received on 8/1/22?

Select one:

a. $622,000

b. $614,000

c. $620,000

d. $638,000

e. $618,000

3.

On January 1, 2024, Bear Cove Co. issued its 11% bonds in the face amount of $3,000, which mature on January 1, 2034. The bonds were issued for $3,385 to yield 9%. Bear Cove uses the effective-interest method of amortizing the bond premium. Interest is payable annually on December 31.

The 2024 Interest Expense is approximately:

Select one:

a. $341

b. $300

c. $272

d. $305

The Circular Flow and Income-Spending Streams tell us that in the economy, total output must equal total spending. This idea is the basis for all macroeconomic analysis. John Maynard Keynes and his followers (the Keynesians) use this idea, and Milton Friedman and his followers (the Monetarists) do too. However, they come up with very different conclusions regarding the role of government in the economy.

Your assignment is to explain the basic arguments of each school of thought, Keynesian and Monetarist, what each recommends for the proper role of government in the economy, and the basis for those beliefs. What are each side's beliefs or assumptions about the macroeconomy, about equilibrium, and about full employment that lead them to their different conclusions? Also, what are the risks of both approaches to improving the economy? In other words, if we were to use either Monetary or Fiscal policy to stimulate the economy, what are the risks or problems we need to look out for?

HINT: When the Keynesians say “total output = total spending” they write it GDP = C + I + G + X_n. (See chapter 7 - They are focusing on the sources of spending in the economy.) When the Monetarists say “total output = total spending” they write it MV = PY. (See Chapter 13 - They are focusing on the Equation of Exchange.) These are important differences, but you must also explain the thinking behind them.

AMC plc is examining its spending on environment-related activities for the current year. It has collected its environmental spending as follows: environmental training courses, £300,000; obtaining ISO environmental certifications, £500,000; environmental auditing, £350,000; performing contamination tests, £250,000; disposing toxic materials, £800,000; cleaning up contaminated soil £5,000,000, and land restoration, £4,000,000. Next year, AMC plans to increase its spending on training activities by 50 per cent. This increased spending will prevent the use of toxic materials to some extent, which will reduce the costs of performing contamination tests to £150,000 and lead to reduction in toxic materials disposal costs by half. The cleaning up contaminated soil will be reduced by 60 per cent and land restoration costs by 25 per cent. The rest of costs will remain the same. The forecasted sales revenue for the next year is £500million.

The finance director is due to attend next week’s board of directors meeting to discuss the next year’s planned environment-related spending. You are asked by the finance director to prepare an Environment Cost Management report, in which you should present the above information in clear categorised format, and justify the overall position as well as the planned increases in trainings.

Showing your workings and rounding up to 2 decimal places.

Happy Hospice House (“HHH”) is a non-profit provider of hospice services in fourteen states, including Delaware. HHH contracts with Medicare and Medicaid to provide such services. Approximately 93 percent of HHH’s clients are enrolled in Medicare and approximately 4 percent of HHH’s clients are enrolled in Medicaid.

In order for a patient to be admitted to hospice care and be eligible for hospice benefits, the patient must be certified as being terminally ill. “Terminally ill means that the individual has a medical prognosis that his or her life expectancy is 6 months or less if the illness runs its normal course.” Pursuant to federal regulations, a hospice must obtain written certification of terminal illness for each of certain periods in which a patient is admitted to hospice care. In other words, a hospice must not only certify a patient's initial eligibility for hospice care, but also must regularly certify that patient's continued eligibility for hospice care.

In 2009, HHH undertook three new initiatives to increase its “census,” the number of patients enrolled in its hospices. First, HHH told its employees to certify patients for hospice care who were not terminally ill. For example, HHH encouraged its employees to diagnose patients with Alzheimer's disease, dementia, or “failure to thrive.” Since these are nebulous diagnoses, they allowed HHH employees to justify continued hospice care. If an employee or physician refused to certify a patient as terminally ill and therefore eligible for hospice care, HHH would turn to another employee or physician to do so. While several employees complained about these practices to their superiors, HHH terminated their employment.

Second, both to encourage patients to enroll and to keep enrolled patients from revoking HHH enrollment, HHH offered them extra durable medical equipment supplies, extra nursing and staff visits, and other extra benefits. For example, patient L.B. received about $1,500 in assistance to pay for electric bills, groceries, and having his hot water heater fixed. L.B. later won a gift card from HHH in a contest for referring other patients to HHH.

Third, HHH ordered a set package of durable medical equipment for each patient who was enrolled. In other words, each time a patient was signed up with HHH, HHH would automatically order that patient a bedside commode, a bedside table, a walker, a wheelchair, oxygen, a hospital bed, and a specialized mattress, regardless of whether the patient needed all of this equipment. In return for ordering this equipment, HHH would receive bulk discounts from Med-Depot. HHH paid a discounted rate to Med-Depot for the supplies, in exchange for using Med-Depot as its exclusive medical supply vendor.

Part 1: Assess HHH's false claims act liability.

Part 2: Did HHH or Med-Depot violate the anti-kickback statute?

Pat 3: Should changes be made to the current regulatory scheme in health care to better protect against fraud, waste and abuse?

1. A high-school administrator who is concerned about the amount of sleep the students in his district are getting selects a random sample of 14 seniors in his district and asks them how many hours of sleep they get on a typical school night. He then uses school records to determine the most recent grade-point average (GPA) for each student. His data and a computer regression output are given below. (remember to do ALL parts).

Sleep (hrs) 9 8.5 9 7 7.5 6 7 8 5.5 6 8.5 6.5 8 8

GPA 3.8 3.3 3.5 3.6 3.4 3.3 3.2 3.2 3.2 3.4 3.6 3.1 3.4 3.7

(a) Do these data provide convincing evidence of a linear relationship between the hours of sleep students typically get and their academic performance, as measured by their GPA? Carry out a significance test at the α = 0.05 level. (10 points)

(b) Construct and interpret at 95% confidence interval for the slope of the regression of GPA on hours of sleep for seniors in this school district. (5 points)

(c) Can we conclude from these data that students’ GPA will improve if they get more sleep? Explain. (

Which assumed inventory cost flow method:

1. usually parallels the actual physical flow of merchandise?
2. divides cost of goods available for sale by total units available for sale to determine a unit cost?
3. assumes that the latest units purchased are the first to be sold?

Wildcat, Inc., has estimated sales (in millions) for the next four quarters as follows: