Use the probability distribution to find probabilities in parts​ (a) through​ (c).

The probability distribution of number of dogs per household in a small town

​(a) Find the probability of randomly selecting a household that has fewer than two dogs.

0.8740.874  

​(Round to three decimal places as​ needed.)

​(b) Find the probability of randomly selecting a household that has at least one dog.

0.3270.327

​ (Round to three decimal places as​ needed.)

​(c) Find the probability of randomly selecting a household that has between one and three​ dogs, inclusive.

nothing

​ (Round to three decimal places as​ needed.)

Amy and Lester are the owners of The Hardware Store on main street in a large town. Without consulting Amy, Lester hires an accountant to prepare a formal Balance Sheet, Income Statement, and Statement of Cash Flows for The Hardware Store. Amy understands the importance of having a Balance Sheet and Income Statement, but she does not understand the importance of having a Statement of Cash Flows. Amy reasons that examining the Cash account in the General Ledger is sufficient to know where the cash came from and where it was spent. Presume you are the accountant that was hired by Lester. It is your task to explain to Amy the purpose of the Statement of Cash Flows along with its uses and limitations. Please make your initial post your response to Amy.

The Chocolate Ice Cream Company and the Vanilla Ice Cream Company have agreed to merge and form Fudge Swirl Consolidated. Both companies are exactly alike except they are located in diferent towns. The end of period value of each firm is determined by the weather, as shown below. There will be no synergy to the merger.

State Probability Value

Rainy .01 $410,000

Warm .04 $590,000

Hot .05 $1,115,000

The weather conditions in each town are independent of those in the other.

Furthermore, each company has an outstanding debt claim of $590,000. Assume that no premiums are paid in the merger.

Question: How much do stockhoders and bondholders each gain or lose if the merger is undertaken?

Bondholder gain/loss $______

Stockholder gain/loss $______

At the interest rate of 5%, the people of the country of Rupertopia are willing to lend $10,000 to local business, while local businesses are willing to borrow $20,000. When the interest rate rises to 10%, the quantity of loans supplied increases to $20,000, while the quantity of loans demanded drops to $10,000. Because the people of Rupertopia are suspicious of outsiders, all financial transactions happen between locals. Assume both supply and demand curves for loanable funds are linear.

Peter hopes to borrow money to open a factory in town. Given the above information and holding everything else constant, what is the interest rate Peter will pay for the loan.

Select one:

a. 7%

b. 6.5%

c. 7.5%

d. 8%

Bob owns the Sweet Alps Chocolate store. She charges $10 per pound for her hand made chocolate. You, the economist, have calculated the elasticity of demand for chocolate in her town to be 2.5. If she wants to increase her total revenue, what advice will you give her?

• A. increase her price, because demand is elastic, increasing the price will increase the total revenue.
• B. increase her price, because demand is inelastic, increasing the price will increase the total revenue.
• C. lower her price, because demand is elastic, lowering the price will increase the total revenue.
• D. lower her price, because demand is inelastic, lowering the price will increase the total revenue.

Discuss briefly, citing sections, whether the following amounts are deductible for the taxpayer
(i) The taxpayer incurred an amount of $1,800 in borrowing charges when applying for finance with WBank.
(ii) The taxpayer paid his accountant $300 in fees. This amount was for the accountant preparing the taxpayer’s income tax return.
(iii) The taxpayer is an employee at a law firm in town. He spends $40 getting a taxi to work as all public transport has been cancelled that day and does not want to be late for a client meeting.
(iv) The taxpayer is an accounting student and incurs $20 in taxi fares for travel between the supermarket where he works during the day as a cashier, and a nightclub where he works selling drinks in the evening.

1.

The following table contains data from a study of two airlines which fly to Small Town, USA.

If a flight is selected at random, find the probability that the flight is on Upstate Airline given the flight is late. (Round answer to four decimals.)

2.

Use the table below to find the probability.

If 3 of the 1000 test subjects are randomly selected, find the probability that all had false negative results. Assume that the 3 selections are made with replacement. (Round to 9 decimals)

Zaki, a developer, has a plot of 20-acre land near Klang town. He is considering whether to build a row of single story terrace houses or bungalow houses. He also has the option of not to proceed with the project. Given a favorable market, he estimate that he will earn a profit of RM60,000 if he builds single story terrace houses and RM800,000 if he builds bungalow houses. However, with an unfavorable market condition, he estimates that he will lose RM100,000 with the single story houses and RM400,000 with the bungalow houses. The probability of favorable market is 0.7.

We learn that business-type activities of governments are accounted for in a fashion similar to those carried out by businesses. It is easy to understand that accounting for these services is done on a full accrual basis of accounting; however, give your opinion on the way in which this integrates with the modified basis of accounting used by governmental funds. Use the textbook and GASB materials to support your position.

• Analyze the various types of business-type funds used in governmental units, and provide an example of when each is appropriate. In developing your initial discussion post and in commenting on your classmates’ responses, consider the city, town, or county selected for the continuing problem or perhaps from published material from your home state or city.

Amy and Lester are the owners of The Hardware Store on main street in a large town. Without consulting Amy, Lester hires an accountant to prepare a formal Balance Sheet, Income Statement, and Statement of Cash Flows for The Hardware Store. Amy understands the importance of having a Balance Sheet and Income Statement, but she does not understand the importance of having a Statement of Cash Flows. Amy reasons that examining the Cash account in the General Ledger is sufficient to know where the cash came from and where it was spent. Presume you are the accountant that was hired by Lester. It is your task to explain to Amy the purpose of the Statement of Cash Flows along with its uses and limitations. Please make your initial post your response to Amy.