The English Premier League has 20 teams, throughout the season, each team plays each of the other teams once at home and once away. (e.g. Everton plays Liverpool at Anfield, which is Liverpool’s home field, and Everton plays Liverpool at Goodison Park, which is Everton’s home field.) Teams are awarded 3 points for a win, 1 point for a draw, and 0 points for a loss

(a) How many combinations of wins, losses, and draws are possible for a team throughout the season, regardless of the order?

(b) How many ways can a team win 6 out of 10 games? Here, order matters, and you are only considering those 10 games.

Suppose that you as a researcher wanted to examine the impact of police officer rank on perceptions of friendliness by citizens in College Park, MD. Rank is measured as patrol officer, sergeant or captain, and citizen perception is captured by a scale ranging from -50 to 50 and measured in a survey given to 1,000 randomly selected people after an interaction with a police officer. 500 people talked to a patrol officer, 300 talked to a sergeant and 200 people talked to a captain.

3. What is the a) unit of observation and b) reasonable population for this sample?

4. Identify the a) independent and b) dependent variables.

5. For each variable, name what kind of variable it is (nominal, ordinal, interval, or ratio).

1. On January 1, 2017, Park Rapids Lumber Company issued $80 million in 20-year, 10.5% bonds payable. Interest is payable semiannually on June 30 and December 31.

1. Record the journal entry when the bonds were issued on January 1, 2017 when the market rate was 10%, and record the payment of bond interest on June 30^th and December 31^st for 2017 and 2018.

      b.    Compute the net bond liability at December 31, 2018.

            c. On January 1, 2019 the bonds were repurchased for 101. Record the journal entry for the repurchase of the bonds.   This transaction is very similar to the sale of a fixed asset. 101 is the same as 101% of the face value of the bond.

A-One Landscapers, Inc., owes Friendly Finance Company $5,000. A-One enters into a contract with Suburban Office Park under which A-One promises to maintain the landscaping on Suburban’s property and Suburban promises to pay Friendly Finance the amount that will be due A-One until A-One’s debt to Friendly Finance is paid. A-One performs as promised, but Suburban does not pay Friendly Finance.

1.   What is the basis for a claim by Friendly Finance against Suburban?
2.   Will Friendly Finance be successful if it sues Suburban based on your answer to 1., above?
3.   Explain why or why not Friendly Finance will succeed in such a suit. In your answer state the general legal principle and then apply it to these facts.

Consider the following independent situations, all of which apply to audits of entities for the year ended 31 December 2019:

(i) In July 2019, Alpha Ltd started using a new general ledger software package. The Financial Controller is impressed with the new system, because management accounts are easily produced and allow detailed comparisons with budgets and prior-period figures across product lines and geographical areas. The conversion to the new system went smoothly. As it is a popular computer package, it required only minor modifications.

(ii) As part of a computer systems conversion in Beta Ltd, the position of Systems Administrator was created. This position is responsible for all systems maintenance, including data backups and modifications. These tasks were previously the responsibility of the Accountant.

(iii) Gamma Ltd is a large supermarket chain with outlets in all major cities in the country. In August 2019 Gamma Ltd contracted out its payroll data processing in each city to an independent computer service provider.

(iv) Delta Ltd is a long established firm which has been operating a hotel for over 10 years. During this time, it has adopted a conservative business strategy that has seen it produce adequate, though slightly unimpressive, results. A new CEO was appointed to run the firm from September 2019. He has already released his plans for renovating the hotel, despite not officially serving as CEO yet. You have also heard him discuss the implementation of a new marketing strategy to improve occupancy rates.

Required:

For each situation (i) to (iv) above.

(a) State whether Inherent Risk, Control Risk or Detection Risk have increased or decreased.

(b) Provide an explanation for your answer in (a)

1. A study was conducted to examine whether the perception of service quality at hotels differed by gender. Hotel guests were randomly selected to rate hotel service, and each rating was then transferred into a standardized score. By comparing the scores observed from the sample of male guests and the sample of female guests, researchers then wished to determine if there is evidence of a difference in average rating when awarded by males, μ ₁, and the average rating when awarded by females, μ ₂. A summary of the sampled guest scores are provided in the table below :

2. 
   i) Carry out a hypothesis test for a significant difference between the two population means, at significance level α = 0.05.
   The hypotheses being tested are:
   H ₀: μ ₁ - μ ₂ = 0
   H _a: μ ₁ - μ ₂ ≠ 0.
   Complete the test by filling in the blanks in the following:
   • An estimate of the difference in population means is .
   • Assuming the population standard deviations are equal, σ₁=σ₂, the pooled estimate, s_p, is  and the standard error is .
   • The distribution is  (examples: normal / t12 / chisquare4 / F5,6).

The test statistic has value TS=  .
Testing at significance level α = 0.05, the rejection region is:
less than  and greater than  (3 dec places).
There  (is evidence/is no evidence) to reject the null hypothesis, H ₀ of no difference between the two population means, μ ₁ and μ ₂.

ii) Estimate the difference in population means by calculating a 95% confidence interval.
The difference between the population means, the mean of population 1, μ ₁, minus the mean of population 2, μ ₂, is estimated to be between________  and__________ .

The typical supermarket has 30,000 different products on sale at any given time. The manager of that supermarket must determine not only what mix of products to have on hand but where to locate those products and what price to set on each one at any specific time. Usually, the price is based on a markup on the cost of the item, and the only reason the price is altered is that costs change. When you reserve a hotel room, you find that there are several different prices offered for that same room, depending on whether you work for the government, are a member of AARP or some other organization, are staying more than one night, and so on. Why doesn’t the hotel just offer a single price? These examples illustrate just a few of the many problems confronting businesses in their relations with customers. Companies do not seem to know much about their customers. For instance, companies often base prices on the anecdotal evidence of a few vocal salespeople or product managers. Even Mercedes-Benz, when it was about to launch one of its A-class models in the German market, initially proposed a price tag of DM29,500, based on little more than the belief that DM30,000 was a psychologically important barrier. Consultants point out that price has a disproportionate effect on the bottom line, far more than greater volume or cuts in fixed and variable costs. Assuming that volumes stay constant, a 1 percent price increase produces between an 8 percent and 11 percent improvement in operating profits.

So does this mean that most businesses should raise their prices? Explain your answer.

Are these businesses leaving money on the table—that is, not generating the greatest revenue they could by knowing the customer better?” Explain your answer.

Evans:

Evans Enterprises has bought a prime parcel of beachfront property and plans to build a luxury hotel. After meeting with the architectural team, the Evans family has drawn up some information to make preliminary plans for construction. Excluding the suites, which are not part of this decision, the hotel will have four kinds of rooms: beachfront non-smoking, beachfront smoking, lagoon view non-smoking, and lagoon view smoking. To decide how many of each of the four kinds of rooms to plan for, the Evans family will consider the following information.

After adjusting for expected occupancy, the average nightly revenue for a beachfront non-smoking room is $175. The average nightly revenue for a lagoon view non-smoking room is $130. Smokers will be charged an extra $15.

Construction costs vary. The cost estimate for a lagoon view room is $12,000 and for a beachfront room is $15,000. Air purifying systems and additional smoke detectors and sprinklers ad $3000 to the cost of any smoking room. Evans Enterprises has raised $6.3 million in construction guarantees for this portion of the building.

There will be at least 120 but no more than 180 beachfront rooms.

Design considerations require that the number of lagoon view rooms be at least 1.5 times the number of beachfront rooms, and no more than 2.5 times that number.

Industry trends recommend that the number of smoking rooms be no more than 50% of the number of non-smoking rooms.

There should be at least 45 rooms of each kind.

What is the optimal solution?

What is the optimal value of the objective function?

For what values of the objective coefficient will the above solution be valid? Include ranges for all decision variables.

If the budget increases to 7 million what is the change in the objective function? What is the shadow price for budget?

Exercise 7.4 Recording sales made for cash and on account, with 8 percent sales tax, and sales returns.

LO 7-1 Record the following transactions of Fashion Park in a general journal. F

ashion Park must charge 8 percent sales tax on all sales.

DATE TRANSACTIONS 2019

April 2 Sold merchandise for cash, $2,500 plus sales tax.

April 3 The customer purchasing merchandise for cash on April 2 returned $250 of the merchandise; provided a cash refund to the customer.

April 4 Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for $1,050 plus tax, terms n/30.

April 6 Accepted return of damaged merchandise from Jordan Clark; issued Credit Memorandum 302 for $150 plus tax.

The original sale was made on Sales Slip 908 of April 4.

April 30 Received payment on account from Jordan Clark in payment of her purchase of April 4, less the return on April 6.

1

Journal Entry

Sold merchandise for cash, $2,500 plus sales tax.

2

The customer purchasing merchandise for cash on April 2 returned $250 of the merchandise; provided a cash refund to the customer.

3

Sold merchandise on credit to Jordan Clark; issued Sales Slip 908 for $1,050 plus tax, terms n/30.

4

Accepted return of damaged merchandise from Jordan Clark; issued Credit Memorandum 302 for $150 plus tax. The original sale was made on Sales Slip 908 of April 4.

5

Received payment on account from Jordan Clark in payment of her purchase of April 4, less the return on April 6.