Consider a study to relate birthweight (y) to the estriol level(x) of pregnant women. The data is below with 32 observations.

PLEASE SHOW ALL YOUR WORK:

1. Calculate the correlation coefficient r. :   

2. Estimate the equation of the regression line that best describes the relationship between birthweight and the estriol level of pregnant women (Assume that the dependent variable is birthweight). :

3. Is the coefficient(β) of birthweight significantly different than zero at significance

level 0.05? :

Work for the first variable, X:

2. Construct a frequency table, containing at least 5 classes, but no more than 8 classes. [2]

**Data goes up to 83**

3. Make the following graphs, using Stat Crunch.

1. histogram [2]

2. frequency polygon [2]

3. cumulative frequency polygon [2]

4. stem and leaf [2]

5. box plot [2]

Bug-Off Exterminators provides pest control services and sells extermination products manufactured by other companies. Following is the company's unadjusted trial balance as of December 31, 2019. December 31, 2019 Unadjusted Trial Balance Cash $ 20,000 Accounts receivable 5,500 Allowance for doubtful accounts $ 858 Merchandise inventory 16,200 Trucks 47,000 Accum. depreciation—Trucks 0 Equipment 92,400 Accum. depreciation—Equipment 24,200 Accounts payable 5,750 Estimated warranty liability 2,150 Unearned services revenue 0 Interest payable 0 Long-term notes payable 30,000 Common stock 25,000 Retained earnings 68,800 Dividends 25,000 Extermination services revenue 90,000 Interest revenue 902 Sales (of merchandise) 109,826 Cost of goods sold 50,800 Depreciation expense—Trucks 0 Depreciation expense—Equipment 0 Wages expense 50,000 Interest expense 0 Rent expense 24,000 Bad debts expense 0 Miscellaneous expense 1,286 Repairs expense 15,500 Utilities expense 9,800 Warranty expense 0 Totals $ 357,486 $ 357,486 The following information in a through h applies to the company at the end of the current year. The bank reconciliation as of December 31, 2019, includes the following facts. Cash balance per bank $ 16,600 Cash balance per books 20,000 Outstanding checks 2,550 Deposit in transit 3,200 Interest earned (on bank account) 82 Bank service charges (miscellaneous expense) 30 Reported on the bank statement is a canceled check that the company failed to record. (Information from the bank reconciliation allows you to determine the amount of this check, which is a payment on an account payable.) An examination of customers’ accounts shows that accounts totaling $694 should be written off as uncollectible. Using an aging of receivables, the company determines that the ending balance of the Allowance for Doubtful Accounts should be $775. A truck is purchased and placed in service on January 1, 2019. Its cost is being depreciated with the straight-line method using the following facts and estimates. Original cost $ 39,500 Expected salvage value $ 14,000 Useful life (years) 4 Two items of equipment (a sprayer and an injector) were purchased and put into service in early January 2017. They are being depreciated with the straight-line method using these facts and estimates. Sprayer Injector Original cost $ 39,000 $ 21,000 Expected salvage value $ 3,000 $ 4,000 Useful life (years) 8 5 On September 1, 2019, the company is paid $20,700 cash in advance to provide monthly service for an apartment complex for one year. The company began providing the services in September. When the cash was received, the full amount was credited to the Extermination Services Revenue account. The company offers a warranty for the services it sells. The expected cost of providing warranty service is 2.5% of the extermination services revenue of $76,200 for 2019. No warranty expense has been recorded for 2019. All costs of servicing warranties in 2019 were properly debited to the Estimated Warranty Liability account. The $22,500 long-term note is an 8%, five-year, interest-bearing note with interest payable annually on December 31. The note was signed with First National Bank on December 31, 2019. The ending inventory of merchandise is counted and determined to have a cost of $16,200. Bug-Off uses a perpetual inventory system. Required: 1. Determine amounts for the following items: Correct (reconciled) ending balance of Cash; and the amount of the omitted check. Adjustment needed to obtain the correct ending balance of the Allowance for Doubtful Accounts. Depreciation expense for the truck used during year 2019. Depreciation expense for the two items of equipment used during year 2019. The adjusted 2019 ending balances of the Extermination Services Revenue and Unearned Services Revenue accounts. The adjusted 2019 ending balances of the accounts for Warranty Expense and Estimated Warranty Liability. The adjusted 2019 ending balances of the accounts for Interest Expense and Interest Payable. 2. Use the results of part 1 to complete the six-column table by first entering the appropriate adjustments for items a through g and then completing the adjusted trial balance columns. Hint: Item b requires two adjustments. 3. Prepare journal entries to record the adjustments entered on the six-column table. Assume Bug-Off’s adjusted balance for Merchandise Inventory matches the year-end physical count. 4a. Prepare a single-step income statement for year 2019. 4b. Prepare the statement of retained earnings (cash dividends during 2019 were $25,000) for 2019. 4c. Prepare a classified balance sheet as at 2019.

Essay
27. Discuss the business judgment rule.

Question: Transfer Pricing

The Battery Division of Parker Company makes a standard 12 -volt battery. The Division has the

following data:

Production capacity (number of batteries) 200,000

Selling price per battery to outsiders       $ 50

Variable costs per battery $20

Fixed costs per battery (based on capacity)   $ 7

Parker Company has a Vehicle Division that could use this battery in its forklift trucks. The Vehicle

Division is now buying 100.000 batteries per year from an outside supplier at $48 per battery.

Required:

For (a) through (d) below, assume the Battery Division can sell all of its output to outside customers at

the $50 Price.

(a). If the Vehicle Division purchases 100,000 batteries per year from the Battery Division. what price

should control the transfers?

(b). If the Battery Division meets the price that the Vehicle Division is currently paying to its outside

suppliers and sells 100.000 batteries to the Vehicle Division each year. what will be the effect on the

profits of the Battery Division. the Vehicle Division. and the company as a whole?

(c). Assume that the Battery Division can avoid $4 in variable costs, such as selling commissions. on

Intra - company sales. What are the lower limit and upper limit for a transfer price? (3 marks]

d. The Vehicle Division wants the Battery Division to supply it with 50,000 special heavy duty

batteries.

• The variable cost for each heavy duty battery would be $27.

• The Battery Division has no idle capacity

• Heavy duty batteries require more processing time than regular batteries: they would displace

75.000 regular batteries from the product line.

What should be the minimum transfer price?

For (e) through (g) below. suppose that the Battery Division has enough idle capacity to supply the

Vehicle Division's needs.

(e) . What are the lower limit and the upper limit for a transfer price?

I. Suppose that the Vehicle Division's outside suppliers drop their price to only $40 per battery. Should

the Battery Division meet this price? If the Battery Division does not meet this price, what will be the

effect on the profits of the company as a whole?

(g). What is the lowest possible transfer price the Battery Division would be willing to match with

outside suppliers? Elaborate the reasons.

A machine purchased 3 years ago for $140,000 is now too slow to satisfy the demand of the customers. It can be upgraded now for $81,000 or sold to a smaller company internationally for $43,000. The upgraded machine will have an annual operating cost of $79,000 per year and a $29,000 salvage value in 3 years. If upgraded, the presently owned machine will be retained for only 3 more years, then replaced with a machine to be used in the manufacture of several other product lines. The replacement machine, which will serve the company now and for a maximum of 8 years, costs $225,000. Its salvage value will be $53,000 for years 1 through 5; $20,000 after 6 years; and $10,000 thereafter. It will have an estimated operating cost of $45,000 per year. Perform an economic analysis at 10% per year using a specified 3-year planning horizon.

a) Determine if the current machine should be replaced now or 3 years from now.

b) Once decided, determine the equivalent AW for the next three years.

Customers arrive at a grocery store at an average of 2.2 per minute. Assume that the number of arrivals in a minute follows the Poisson distribution. Provide answers to the following to 3 decimal places.

Part a)

What is the probability that exactly two customers arrive in a minute?



Part b)

Find the probability that more than three customers arrive in a two-minute period.



Part c)

What is the probability that at least seven customers arrive in three minutes, given that exactly two arrive in the first minute?

Division A manufactures electronic circuit boards. The boards can be sold either to Division B of the same company or to outside customers. Last year, the following activity occurred in Division A:

Selling price per circuit board$192

Variable cost per circuit board$112

Number of circuit boards:

Produced during the year 20,500

Sold to outside customers 14,600

Sold to Division B 5,900

Sales to Division B were at the same price as sales to outside customers. The circuit boards purchased by Division B were used in an electronic instrument manufactured by that division (one board per instrument). Division B incurred $220 in additional variable cost per instrument and then sold the instruments for $640 each.

1. Calculate the net operating incomes earned by Division A, Division B, and the company as a whole.

2. Assume Division A’s manufacturing capacity is 20,500 circuit boards. Next year, Division B wants to purchase 6,900 circuit boards from Division A rather than 5,900. (Circuit boards of this type are not available from outside sources.) From the standpoint of the company as a whole, should Division A sell the 1,000 additional circuit boards to Division B or continue to sell them to outside customers?