Problem 3-1 (Algorithmic) Schedule C (LO 3.1) Scott Butterfield is self-employed as a CPA. He uses the cash method of accounting, and his Social Security number is 644-47-7833. His principal business code is 541211. Scott's CPA practice is located at 678 Third Street, Riverside, CA 92860. Scott’s income statement for the year shows the following: Income Statement Scott Butterfield, CPA Income Statement 12/31/2017 Current Period Prior Period 1/1/2017 to 12/31/2017 1/1/2016 to 12/31/2016 REVENUES Tax Services $156,400 $72,154 Accounting Services 15,640 50,256 Other Consulting Services 34,408 7,690 TOTAL REVENUES 206,448 130,100 COST OF SERVICES Salaries 31,280 29,400 Payroll Taxes 2,387 2,275 Supplies 300 1,225 TOTAL COST OF SERVICES 33,967 32,900 GROSS PROFIT (LOSS) 172,481 97,200 OPERATING EXPENSES Advertising and Promotion 2,000 – Business Licenses and Permits 620 250 Charitable Contributions 400 250 Continuing Education 1,500 – Dues and Subscriptions 1,640 3,500 Insurance 9,384 870 Meals and Entertainment 7,038 5,400 Office Expense 3,128 – Postage and Delivery 85 – Printing and Reproduction 1,564 – Office Rent 4,692 13,800 Travel 6,256 750 Utilities 1,877 2,724 TOTAL OPERATING EXPENSES 40,184 27,544 NET INCOME (LOSS) $132,297 $69,656 Scott also mentioned the following: The expenses for dues and subscriptions were his country club membership dues for the year. The charitable contributions were made to a political action committee. Scott does not generate income from the sale of goods and therefore does not record supplies and wages as part of cost of goods sold. Scott placed a business auto in service on January 1, 2014 and drove it 4,093 miles for business, 2,456 miles for commuting, and 4,912 miles for nonbusiness purposes. His wife has a car for personal use.

The law firm of Poe, Patterson and Henderson, a general partnership, represents 20 plaintiffs in a class-action product liability lawsuit, with trial scheduled to begin Monday of next week. It will be the biggest trial in the history of the firm, and the partners understand that success will depend, for the most part, on a collaborative effort on the part of all professionals at the firm, including partners, associate attorneys, paralegals, and secretarial staff. It is the Friday before the trail, and there will be no weekend for those working at Poe, Patterson and Henderson. The partners and the associate attorneys are reviewing depositions in the conference room. The clock on the wall shows 11:00 p.m. Partner Henderson turns to a first-year associate, J. Benjamin Fotheringham, and says “Ben, how about going to Donovan’s Delicatessen and picking up a few subs for all of us? Here’s $100.” Donovan’s Delicatessen is a favorite of the firm for “late-night” trial preparation sustenance, and is located approximately two miles away, down Chestnut Avenue. Eager to make a positive impression on senior partner Henderson, and ready to escape the “tunnel-vision” brought on by twelve hours of deposition review, Ben heads for his car. In a rush to complete the “deli run” quickly, Ben accelerates his car to 50 miles per hour. The posted speed limit on Chestnut Avenue is 35 miles per hour. Fidgeting with his compact disc player in order to listen to an audio-recorded deposition, Ben inadvertently crosses the center line and collides with an oncoming automobile operated by Brandi Kernigan. Ms. Kernigan is severely injured, and experiences $22,000 in medical expenses; her $25,000 Volkswagen is a total loss. She sues Fotheringham individually, and the law firm partnership of Poe, Patterson and Henderson. Kernigan also lists Poe, Patterson and Henderson as individual defendants. Is the law firm of Poe, Patterson and Henderson liable for Brandi Kernigan’s injuries? Are Poe, Patterson and Henderson individually liable for Kernigan’s injuries? 250 words

The population of Nevada, P(t), in millions of people, is a function of t, the number of years since 2010. Explain the meaning of the statement P(8) = 3. Use units and everyday language. (1 point)
2. Find the slope-intercept form of the equation of the line through the points (8, 25) and (-2, -13). (2 points)
3. At 8am, Charles leaves his house in Spartanburg, SC and drives at an average speed of 65 miles per hour toward Orlando, FL. At 11:45am, he stops for lunch in Savannah, GA, which is 276.25 miles from Orlando. a. Find a linear formula that represents Charles’ distance, D, in miles from Orlando as a function of t, time in hours since 8am. (2 points)
b. Find and interpret the horizontal intercept. Remember to write your intercept as a point! (2 points)
c. Find and interpret the vertical intercept. Remember to write your intercept as a point! (2 points)
1
2
4. The temperature in ◦F of freshly prepared soup is given by T(t) = 72 + 118e−0.018t, where t represents time in minutes since 6pm when the soup was removed from the stove. a. Determine the value of T(30) and interpret your answer in everyday language. (2 points)
b. Find and interpret the vertical intercept. Remember to write your intercept as a point! (2 points)
5. Decide whether the following function is linear. Explain how you know without finding the equation of the line.
x 9 12 16 23 34 f(x) 26.6 36.2 49 74.9 110.1
6. Attendance at a local fair can be modeled by A(t) = −30t2 + 309t + 20 people, where t represents the number of hours since 10am. a. Find the average rate of change of the attendance from t = 3 to t = 8. Give units. (2 points)
b. Interpret your answer from (a) in everyday language.

Please answer both.

High-Low Method for a Service Company

Boston Railroad decided to use the high-low method and operating data from the past six months to estimate the fixed and variable components of transportation costs. The activity base used by Boston Railroad is a measure of railroad operating activity, termed "gross-ton miles," which is the total number of tons multiplied by the miles moved.

Determine the variable cost per gross-ton mile and the total fixed cost.

Break-Even Sales and Sales Mix for a Service Company

Zero Turbulence Airline provides air transportation services between Los Angeles, California, and Kona, Hawaii. A single Los Angeles to Kona round-trip flight has the following operating statistics:

It is assumed that the fuel, crew salaries, and airplane depreciation are fixed, regardless of the number of seats sold for the round-trip flight.

a. Compute the break-even number of seats sold on a single round-trip flight for the overall enterprise product, E. Assume that the overall product mix is 10% business class and 90% economy class tickets.

b. How many business class and economy class seats would be sold at the break-even point?

You have a falafel cart and you sell falafel every weekday near Washington Square Park during lunch time. Your daily revenue is normally distributed with a mean of $200 and a standard deviation of $50.

(a) Suppose there is another location that might be worth switching to. You plan to experiment with selling there for awhile, and then use a hypothesis test to determine whether you should switch. If the new location has a normally distributed revenue with a true mean of 210 and a standard deviation of 50, how many days would you have to try selling there to have a power of 50%. Use an α = .05 (significance level).

(b) Suppose you try selling at another location for 16 days, and on average you sell $220 worth of falafel with a sample standard deviation of $36 Using an α = .05, test whether the new location is worth switching to.

An amusement park studied methods for decreasing the waiting time (minutes) for rides by loading and unloading riders more efficiently. Two alternative loading/ unloading methods have been proposed. To account for potential differences due to the type of ride and the possible interaction between the method of loading and unloading and the type of ride, a factorial experiment was designed. Use the following data to test for any significant effect due to the loading and unloading method, the type of ride, and interaction. Use α = .05. Use both p-Value and Critical-Value approaches.

1. You’re riding your bike in the bike lane through Golden Gate Park. Suddenly, you drift out of the bike lane and into automobile traffic. Fortunately, you quickly move back into the bike lane and continue toward Ocean Beach. This scenario is a metaphor for homeostasis, where the controlled condition (physiologic variable) is the position of the bike on the road (e.g., inside or outside the bike lane). Identify: (a) The established set point for the controlled condition (b) The receptor (c) The control center (integration center) (d) The effector There’s no need to explain the physiology of vision or muscle contraction. Rather, demonstrate your understanding of feedback systems by mapping the components of a feedback system onto this scenario.

2. The three-dimensional shape of a protein determines its function. Briefly explain these terms as they relate to protein shape and provide a supporting example for each: denature, conformational change, genetic mutation. Each example must include a specific protein.

3.Compare and contrast simple diffusion and facilitated diffusion. In other words, how are they similar and how are they different? Provide supporting examples for each.

4.(a) What is the osmolarity of a solution containing 85 mM C6H12O6, 120 mM KCl, and 24 mM CaCl2? Show your calculations. (b) What would happen to human blood cells put in the solution above? Explain.

3. United Park City Properties real estate investment firm took a random sample of five condominium units that recently sold in the city. The sales prices Y (in thousands of dollars) and the areas X (in hundreds of square feet) for each unit are as follows     (40 points)

The owner wants to forecast sales on the basis of the area. Which variable is the dependent variable? Which variable is the independent variable?

Determine the regression equation.

Interpret the values of the slope and the intercept.

Test the significance of the slope at 1% level of significance.

Determine the coefficient of correlation between the sales price and the area.

Interpret the strength of the correlation coefficient.

Determine the coefficient of determination and present its interpretation.

Determine the coefficient of non-determination.

On January 1, 2014, Park Corporation sold a $606,000, 6 percent bond issue (8 percent market rate). The company does not use a discount account. The bonds were dated January 1, 2014, pay interest each June 30 and December 31, and mature in five years. (FV of $1, PV of $1, FVA of $1, and PVA of $1) (Use the appropriate factor(s) from the tables provided.) Required: 1. Prepare the journal entry to record the issuance of the bonds. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

On January 1, 20X0, Washington Park District issued $1000 of 5-year, 6% debentures. Interest is paid semiannually. The market interest rate at issuance was 10%.

1.   Compute the proceeds from issuing the debentures.

2.   Prepare an analysis of this bond transaction. Show entries for the issuer concerning (a) issuance, (b) first semiannual interest payment, (c) second semiannual interest payment, and (d) payment of maturity value.

Note: Use only the relevant present value information for Question 2.