Bankruptcy Cost -

(A) Suppose interest on debt was not paid prior to corporate taxes, so debt was not tax-advantaged, but interest still had to be paid or else the borrower was in default. Many fewer companies would risk issuing compare debt in this case. How would this negatively impact investors?

(B) In their early years, many dot.com companies have earnings (EBIT) that fluctuate dramatically, sometimes positive and sometimes negative. Those companies almost never use debt financing during those early years. Why not?

A baseball fan wanted to know if there is a difference between the number of games played in a World Series when the American League won the series versus when the National League won the series. From 1922 to 2012, the population standard deviation of games played in World Series ultimately won by the American League was 1.14, and the population standard deviation of games played in World Series ultimately won by the National League was 1.11. In 19 randomly selected World Series won by the American League, the mean number of games played was 5.84. The mean number of games played in 17 randomly selected World Series won by the National League was 5.57. Conduct a hypothesis test. (Use

α = 0.05.

For subscripts, let 1 = American League and 2 = National League.)

NOTE: If you are using a Student's t-distribution for the problem, including for paired data, you may assume that the underlying population is normally distributed. (In general, you must first prove that assumption, though.)

• Part (a)

  State the null hypothesis.

  H₀: μ₁ > μ₂

  H₀: μ₁ ≥ μ₂

      

  H₀: μ₁ = μ₂

  H₀: μ₁ < μ₂

  H₀: μ₁ ≤ μ₂

• Part (b)

  State the alternative hypothesis.

  H_a: μ₁ ≠ μ₂

  H_a: μ₁ > μ₂

      

  H_a: μ₁ ≤ μ₂

  H_a: μ₁ < μ₂

  H_a: μ₁ = μ₂

• Part (c)

  In words, state what your random variable

  X₁ − X₂

  represents.

  X₁ − X₂

  represents the difference between the number of World Series won by American League and the National League.

  X₁ − X₂

  represents the mean difference between the number of games played in World Series won by the American League and those won by the National League.    

  X₁ − X₂

  represents the difference between the mean number of games played in World Series won by the American League and those won by the National League.

  X₁ − X₂

  represents the difference between the mean number of World Series won by American League and the National League.

• Part (d)

  State the distribution to use for the test. (Round your answers to three decimal places.)

  X₁ − X₂

  ~     ,  

• Part (e)

  What is the test statistic? (If using the z distribution round your answer to two decimal places, and if using the t distribution round your answer to three decimal places.)
  ? z t =

• Part (f)

  What is the p-value? (Round your answer to four decimal places.)
  
  
  Explain what the p-value means for this problem.If

  H₀

  is true, then there is a chance equal to the p-value that the mean number of games played in World Series won by the American League is at least 0.27 less than or 0.27 more than the mean number of games played in World Series won by the National League.If

  H₀

  is false, then there is a chance equal to the p-value that the mean number of games played in World Series won by the American League is at least 0.27 less than or 0.27 more than the mean number of games played in World Series won by the National League.    If

  H₀

  is false, then there is a chance equal to the p-value that the difference between the mean number of games played in World Series won by the American League and those won by the National League is at most 0.27.If

  H₀

  is true, then there is a chance equal to the p-value that the difference between the mean number of games played in World Series won by the American League and those won by the National League is at most 0.27.

• Part (g)

  Sketch a picture of this situation. Label and scale the horizontal axis and shade the region(s) corresponding to the p-value.

• Part (h)

  Indicate the correct decision ("reject" or "do not reject" the null hypothesis), the reason for it, and write an appropriate conclusion.(i) Alpha (Enter an exact number as an integer, fraction, or decimal.)
  α =
  
  (ii) Decision:

  reject the null hypothesisdo not reject the null hypothesis    

  
  (iii) Reason for decision:

  Since p-value < α, we reject the null hypothesis.Since p-value > α, we do not reject the null hypothesis.    Since p-value > α, we reject the null hypothesis.Since p-value < α, we do not reject the null hypothesis.

  
  (iv) Conclusion:

  There is sufficient evidence to show that the mean number of games played in World Series won by the American League is different from the mean number of games played in World Series won by the National League.There is not sufficient evidence to show that the mean number of games played in World Series won by the American League is different from the mean number of games played in World Series won by the National League.    

• Part (i)

  Explain how you determined which distribution to use.

  The standard normal distribution was used because the samples are independent and the population standard deviation is known.The t-distribution was used because the samples are independent and the population standard deviation is not known.    The standard normal distribution was used because the samples involve the difference in proportions.The t-distribution was used because the samples are dependent.

On September 30, 2017, the Parker Corporation had a balance of $50,500 in its cash account.

Additional information:

Actual sales:

August                         $180,000
September                     200,000

Budgeted sales:

October                       $195,000
November                     210,000

10% of each month’s sales are cash sales. Of the remaining credit sales, collections are 70% in the month of the sale and 25% in the following month. The remaining 5% is uncollectible.

Inventory costs average 75% of sales (i.e., October sales will require $146,500 of inventory and November sales will require $157,500 of inventory).

Monthly purchases of inventory are 80% of next month's projected inventory needs. Thirty percent of the purchases are paid for in the month of purchase, with the remaining 70% paid in the month following purchase. September’s inventory purchases totaled $117,000.

Selling and administrative expenses are $50,000 per month. Of this amount, $12,000 is depreciation.

The company plans to purchase a new piece of production equipment costing $50,000 at the end of October. It will also sell a parcel of unused land for $10,000 during October.

All obligations, except inventory purchases, are paid in the month incurred.

Parker desires a minimum cash balance of $50,000. Short-term borrowing in increments of $1,000 is available to cover any shortfalls. Borrowings are made at the beginning of the month and repayments are at the end of the month. Interest is 18% per year, and interest payments must be made whenever there is a principal repayment.

Dividends of $10,000 were declared in September and will be paid in October.

REQUIRED:

Prepare a cash budget for October, consisting of cash receipts, disbursements and any borrowing/repayment, such that the minimum cash balance is not less than $50,000. If an amount is 0, you must enter 0. ENTER ALL AMOUNTS IN WHOLE DOLLARS.

Problem 16-6A (Part Level Submission)

Hamilton Processing Company uses a weighted-average process cost system and manufactures a single product—an industrial carpet shampoo and cleaner used by many universities. The manufacturing activity for the month of October has just been completed. A partially completed production cost report for the month of October for the Mixing and Cooking department is as follows.

Collapse question part

(a)

Partially correct answer.               Your answer is partially correct. Try again.

Prepare a schedule that shows how the equivalent units were computed so that you can complete the “Quantities: Units accounted for” equivalent units section shown in the production cost report, and compute October unit costs. (Round unit costs to 2 decimal places, e.g. 2.25.)

HAMILTON PROCESSING COMPANY

Mixing and Cooking Department

Production Cost Report

For the Month Ended October 31

Equivalent Units

Quantities

Physical

Units

Materials

Conversion

Costs

Units to be accounted for

   Work in process, October 1

   (all materials, 70% conversion costs)

22,400

   Started into production

168,000

      Total units

190,400

Units accounted for

   Transferred out

134,400

Entry field with correct answer

134,400

Entry field with correct answer

134,400

   Work in process, October 31

   (60% materials, 40% conversion costs)

56,000

Entry field with incorrect answer

22400

Entry field with incorrect answer

15680

      Total units accounted for

190,400

Entry field with incorrect answer

156800

Entry field with incorrect answer

150080

Costs

Materials

Conversion

Costs

Total

Unit costs

   Total Costs

$268,800

$117,600

$386,400

   Equivalent units

Entry field with incorrect answer

156800

Entry field with incorrect answer

150080

   Unit costs

$Entry field with incorrect answer

1.71

$Entry field with incorrect answer

.78

$Entry field with incorrect answer

2.49

Costs to be accounted for

   Work in process, October 1

$33,600

   Started into production

352,800

      Total costs

$386,400

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Question 3 (30 pts)

Kobani Corporation produces high quality Greek yogurts that pass through three departments – Fermentation Department (Department I), Mixing Department (Department II), and Packaging Department (Department III).

The production process in the Mixing Department requires the input of two main types of ingredients. One is the basic ingredients and the other one is the special ingredients. 100% of the basic ingredients are added at the beginning of the process. For the special ingredients, they are added gradually. 30% of these special ingredients are added at the beginning of the process, 50% are added midway through the process and the remainder of the special ingredients are added at the three-quarter way through the process.

The following information was available concerning the operation of the Mixing Department for the month of October 2020.

Beginning work-in process (WIP) (1 October 2020): 2,500 units were 40% completed with respect to conversion costs (CC). Costs pertaining to the beginning WIP as at 1 October 2020 were: Department I $10,000, Basic Ingredients $30,000, Special Ingredients $15,000 and CC $10,000.

Units started in the month were 15,000 units. Costs added to production during the month of October 2020 were: Department I $60,000, Basic Ingredients $188,750, Special Ingredients $203,400, and CC $154,500.

Ending WIP as at 31 October 2020 were 3,500 units and 70% completed with respect to CC.

Required:

A) Use of the weighted average (WA) process costing method, calculate

i. the units completed in October 2020.
ii. the equivalent units for the Special Ingredients.
iii. the total costs per equivalent unit.

iv. the total costs of completed products transferred to the Packaging Department.

B) Use the first-in-first-out (FIFO) process costing method, calculate

v. the units completed in October 2020.
vi. the equivalent units for the Special Ingredients.
vii. the total costs per equivalent unit.

viii) the total costs of completed products transferred to the Packaging Department.

C) Discuss the main differences of the FIFO method as compared to the weighted average method. In what situation will the results from the two methods produce similar result?

Journal Entries and Trial Balance

On October 1, 2018, Jay Pryor established an interior decorating business, Pioneer Designs. During the month, Jay completed the following transactions related to the business:

Enter the following transactions on Page 2 of the two-column journal:

The following information was available to reconcile Montrose Company’s book balance of Cash with its bank statement balance as of October 31, 2017:

Required:
1. Prepare a bank reconciliation for the company as of October 31, 2017.     

2. Prepare the General Journal entries necessary to bring the company’s book balance of Cash into agreement with the reconciled balance. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• 1

  Record the collection of note less collection fee.

• 2

  Record the NSF cheque.

• 3

  Record the bank service charges.

• 4

  Record to correct error in Cheque #320.

Read the following case study carefully and analyze it by answering the three Questions for Discussion.   

Hot-Shot Pix is a global digital camera manufacturer headquartered in the U.S.  The company designs, manufacturers and sells various digital camera models at different price points through various channels.  Design is carried out at the company’s R&D labs located in England and the U.S.  The company manufactures cameras at four different locations:  one factory is located in Singapore and supplies the Asia-Pacific region; another factory is located in Texas and serves the North American and Latin American markets;  the third factory is located in France and serves the EU markets.  This factory was established during Hot Shot’s first expansion outside the U.S. in the 1960s to manufacture film-based cameras and sell them across Europe.  Currently, the factory in France is somewhat outdated, and the company is involved in a labor dispute with the unions.  The last factory is located in Hungary and serves Africa and the Middle East.  Currently, 30% of the company’s total revenues are generated domestically and the rest comes from foreign markets.

            Hot Shot’s cameras have traditionally been well-regarded in the marketplace and the company is considered a leader in technological innovation.  However, in the last ten years the company has been facing increased competition. Newer, more nimble competitors have established large factories in Asia.  Theses companies serve the entire global market from one or two factories at a cheaper.  Digital camera manufacturing is subject to significant economies of scale.  In addition, the demand for digital cameras is seasonal, with a significant portion of the demand generated during the holiday season.  This variability of demand has forced Hot Shot to outsource some of its manufacturing to various subcontractors in Asia who have varied considerably in their ability to adhere to quality specifications.  In general, warranty costs have been slightly increasing.

            The digital camera market is expected to grow at a healthy 8% rate for the next decade.  Bob Wilson, the COO, is thinking of several significant operational changes.  At the top of his list is closing the factory in France (which is technologically outdated) and establishing a new factory, possibly in China, that would serve the EU, North America and Latin America markets.  The factory in the US would then focus on premium, higher-priced, cameras and represent around 20% of the global market for digital cameras.  Another alternative is to purchase a Chinese camera maker and upgrade its facilities.  The Chinese Foreign Investment Authority indicated that it would look favorably on this investment, as long as Hot Shot also established a design lab in China to develop the next generation cameras.  This would be structured as a joint venture with a Chinese company.  Meanwhile, European manufacturers were having a hard time competing with foreign camera makers and were arguing that foreign manufacturers were dumping excess production into their markets.  One camera maker recently appealed to the EU for protection from ‘unfair foreign competition’.  At the time, China had a sizeable trade surplus vis-à-vis European countries.

            As a soon-to-be graduate of one of the most internationally diverse business schools in the U.S., you have been retained by Bob Wilson to prepare a report that identifies and briefly discusses the major international issues.  Note that, at this time, Mr. Wilson is not looking for any specific recommendations.

Questions for Discussion:

1. What, if any, political issues should Wilson consider?
2. What, if any, economic issues should Wilson consider?
3. What, if any, social/cultural issues should Wilson consider?
4. What, if any, technological issues should Wilson consider?
5. What, if any, other issues should Wilson consider?

12.) Boiling point elevation- Given that the Kb for water is 0.51° C/m, calculate the boiling point of a solution containing 71.0 g of Na2SO4 dissolved in 350 g of water.

Write 350 words for the following topic:

Do you have any investment goals? What are your financial plans for the future? How do you plan to achieve them? ?