The Miraculous Medicinals Company (MMC), a manufacturer and distributor of cannabis-based therapeutics, issued bonds with the following characteristics on January 1, 2020: $1,000 par value, annual nominal interest rate of 7.5%, semiannual coupon payments, and a maturity of 10 years. The bonds are callable at the end of 3 years with a call premium equal to one semiannual coupon payment.

On July 1^st of 2020 the price of one of these bonds had declined to $875 (Assume that the coupon payment due July 1^st has already been paid.)

Is this bond considered a “discount” or a “premium” bond? Have interest rates risen or fallen since the time the bond was issued? r

Calculate the Yield to Maturity (YTM) of this bond as of July 1, 2020.

Calculate the Yield to Call (YTC) of this bond as of July 1, 2020.

If the interest rate environment that exists in July of 2020 persists over the next several years, would you expect that MMC will call this bond? Why or why not?

Given the above, should investors expect to earn the YTM or the YTC?

Clarks & Co. signed a contract on January 15, 2020 to provide Daisies Cake Factory with an
ingredient-weighing system for a price of $150,000. The system included finely tuned scales that
fit into Daisies automated line, Clarks proprietary software modified to allow the weighing
system to function in Dasies automated system, and a two-year contract to calibrate the
equipment and software on an as-needed basis. If Clark was to provide these goods or services
separately, it would charge $120,000 for the scales, $20,000 for the software, and $30,000 for the
calibration contract. Clark Company delivered and installed the equipment and software on
February 1, 2020, and the calibration service commenced on that date.

A. Assume that the scales, software and calibration service are all separate performance
obligations.

1. How much revenue will Clark recognize in 2020 for this contract?
2. Record in General Journal form the above transactions and required adjusting
entry at December 31, 2020.

B. Assume that the scales, software and calibration service are viewed as one performance
obligation. How much revenue will Clark recognize in 2020 for this contract?

On June 30, 2020, Buffalo Company issued $4,860,000 face value of 14%, 20-year bonds at $5,591,240, a yield of 12%. Buffalo uses the effective-interest method to amortize bond premium or discount. The bonds pay semiannual interest on June 30 and December 31.

(a) Prepare the journal entries to record the following transactions. (Round answer to 0 decimal places, e.g. 38,548. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) (1) The issuance of the bonds on June 30, 2020. (2) The payment of interest and the amortization of the premium on December 31, 2020. (3) The payment of interest and the amortization of the premium on June 30, 2021. (4) The payment of interest and the amortization of the premium on December 31, 2021. No. Date Account Titles and Explanation Debit Credit (1) June 30, 2020 (2) December 31, 2020 (3) June 30, 2021 (4) December 31, 2021

During 2020, Sandhill Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Sandhill for a lump sum of $119,700 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below.

During 2020, Sandhill sells 400 lounge chairs, 200 armchairs, and 240 straight chairs.

What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.)

During 2020, Skysong Furniture Company purchases a carload of wicker chairs. The manufacturer sells the chairs to Skysong for a lump sum of $77,805 because it is discontinuing manufacturing operations and wishes to dispose of its entire stock. Three types of chairs are included in the carload. The three types and the estimated selling price for each are listed below.

During 2020, Skysong sells 260 lounge chairs, 130 armchairs, and 156 straight chairs.

What is the amount of gross profit realized during 2020? What is the amount of inventory of unsold straight chairs on December 31, 2020? (Round cost per chair to 2 decimal places, e.g. 78.25 and final answer to 0 decimal places, e.g. 5,845.)

Women athletes at the a certain university have a long-term graduation rate of 67%. Over the past several years, a random sample of 36 women athletes at the school showed that 21 eventually graduated. Does this indicate that the population proportion of women athletes who graduate from the university is now less than 67%? Use a 10% level of significance.

(a) What is the level of significance?

(b) State the null and alternate hypotheses.

(c) What is the value of the sample test statistic? (Round your answer to two decimal places.)

(d) Find the P-value of the test statistic. (Round your answer to four decimal places.)

To approximate the proportion p of out-of-state students at University A, n samples are taken in a survey.

(1) Find the mean and standard deviation of sample proportion p̂.

(2) A survey shows that there are 23 out-of-state students out of 100 students. Find the 95% confidence interval for p.

(3) If we require the estimating error is less than 3% with 95% confidence, how many samples are required at least?

(4) Another sample shows that there are 10 out-of-state students out of 50 students from University B. Find the 95% confidence interval for the difference of two proportions between Universities A and B.

The average starting salary for this year's graduates at a large university (LU) is $20,000 with a standard deviation of $8,000. Furthermore, it is known that the starting salaries are normally distributed.

a. What is the probability that a randomly selected LU graduate will have a starting salary of at least $30,400?

b. What is the probability that a randomly selected LU graduate will have a salary of exactly $30,400?

c. Individuals with starting salaries of less than $15600 receive a low income tax break. What percentage of the graduates will receive the tax break?

d. If 189 of the recent graduates have salaries of at least $32240, how many students graduated this year from this university?

The average starting salary for this year's graduates at a large university (LU) is $20,000 with a standard deviation of $8,000. Furthermore, it is known that the starting salaries are normally distributed. a. What is the probability that a randomly selected LU graduate will have a starting salary of at least $30,400? b. What is the probability that a randomly selected LU graduate will have a salary of exactly $30,400? c. Individuals with starting salaries of less than $15600 receive a low income tax break. What percentage of the graduates will receive the tax break? d. If 189 of the recent graduates have salaries of at least $32240, how many students graduated this year from this university?

In an effort to reduce energy costs, a major university has installed more efficient lights as well as automatic sensors that turn the lights off when no movement is present in a room. Historically, the cost of lighting an average classroom for 1 week has been $265. To determine whether the changes have signficantly reduced costs, the university takes a sample of 50 classrooms. They find that the average cost for 1 week is $247 with a standard deviation of $60. When testing the hypothesis (at the 5% level of significance) that the average energy use has decreased from the past, what is the test statistic? (please round your answer to 2 decimal places)