Healthcare Associates operates 33 medical clinics in Iowa. As part of the company’s ongoing efforts to examine its customer service, Healthcare worked with an MBA class at the University of Iowa on a project in which a team of students observed patients at the clinics to estimate the difference in mean time spent per visit for male and female patients. Previous studies show that the standard deviation is 11 minutes for men and 16 minutes for women. The MBA students observe 100 male and 100 female patients and discover the mean time per visit for men is fifty minutes, and for women is fifty-five.

(a) Develop a 95% confidence interval estimate for the difference in population mean time per visit by gender.

(b) Test at 5% significance the hypothesis that mean visit time is exactly 50 minutes for women. Based on your conclusion, are you more likely to have made a type I or type II error? What is the probability of this error?

(c) What is the p-value for the test in part (b)?

A prospective MBA student earns $45,000 per year in her current job and expects that amount to increase by 6% per year. She is considering leaving her job to attend business school for two years at a cost of $30,000 per year. She has been told that her starting salary after business school is likely to be $90,000 and that amount will increase by 16% per year. Consider a time horizon of 10 years, use a discount rate of 9%, and ignore all considerations not explicitly mentioned here. Assume all cash flows occur at the start of each year (i.e., immediate, one year from now, two years from now,..., nine years from now). Also assume that the choice can be implemented immediately so that for the MBA alternative the current year is the first year of business school. What is the net present value of the more attractive choice? Please round your answer to the nearest dollar.

Pursuing an MBA is a major personal investment. Tuition and expenses associated with business school programs are​ costly, but the high costs come with hopes of career advancement and high salaries. A prospective MBA student would like to examine the factors that impact starting salary upon graduation and decides to develop a model that uses program​ per-year tuition as a predictor of starting salary. Data were collected for 37 ​full-time MBA programs offered at private universities. The data are stored in the accompanying table. Complete parts​ (a) through​ (e) below.

a. Construct a scatter plot.

b. Assuming a linear​ relationship, use the​ least-squares method to determine the regression coefficients b₀ and b₁.

c. Interpret the meaning of the​ slope, b₁​, in this problem.

d. Predict the mean starting salary upon graduation for a program that has a​ per-year tuition cost of $47,424.

e. What insights can be obtained about the relationship between program​ per-year tuition and starting salary upon​ graduation?

Mike and Dan CPAs, provided the following audit report. The audit for the year ended December 31, 2019 was completed on March 1, 2020, and the report was issued to Jain Corporation, a private company, on March 13, 2020. List at least 7 deficiencies in this report. Do not rewrite the report.

We have examined the accompanying financial statements of Jain Corporation as of December 31, 2019. These financial statements are the responsibility of the company's management.

Management's Responsibility for the Financial Statements:

Management is responsible for the preparation and fair presentation of the financial statements in accordance with generally accepted auditing standards; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from all misstatement, whether due to fraud or error.

Auditor's Responsibility

Our responsibility is to give an opinion on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted throughout the world. Those standards require that we plan and perform the audit to obtain absolute assurance about whether the financial statements are free of misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on management's judgment, including the assessment of the risks of material misstatement of the income statement, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the auditor's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. An audit also includes evaluating the appropriateness of accounting policies and the accuracy of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements referred to above present accurately the financial position of Javlin Corporation as of December 31, 2096, in conformity with accounting principles generally accepted in the United States of America.

On January 1st 2020 The Deloit and Acme Companies had the following balance sheets:

On January 2nd Deloit acquired of 90% the outstanding stock of Acme Company for 500,000 shares of common stock. On January 2nd Deloit stock was selling for $2 per share.

On January 1st the fair market value of Acme's land was $125,000; the fair market value of their inventory was $130,000; the fair market value of the equipment was $30,000; other assets and liabilities had a fair market value equal to book value.

A) Make the journal entry Deloit makes when it acquires the Acme stock

B) Make the journal entry Acme makes when its stock is acquired by Deloit

C) Prepare a consolidated balance sheet on Jan 2nd

D) Make the necessary worksheet entries needed to prepare the consolidated balance sheet

On January 1st 2020 The Skywalker and Vadar Companies had the following balance sheets:

On January 2nd Skywalker acquired all of the outstanding stock of Vadar Company for 500,000 shares of common stock. On January 2nd Skywalker stock was selling for $2 per share.

On January 1st the fair market value of Vadar's land was $125,000; the fair market value of their inventory was $130,000; the fair market value of the equipment was $30,000; other assets and liabilities had a fair market value equal to book value

REQUIRED:

1. MAKE THE JOURNAL ENTRY SKYWALKER MAKES WHEN IT ACQUIRES THE VADAR STOCK
2. MAKE THE JOURNAL ENTRY VADAR MAKES WHEN ITS STOCK IS ACQUIRED BY SKYWALKER
3. PREPARE A CONSOLIDATED BALANCE SHEET ON JANUARY 2^ND
4. MAKE THE NECESSARY WORKSHEET ENTRIES NEEDED TO PREPARE THE CONSOLDIATED BALANCE SHEET.

Accounting for Organization Costs

Perry Inc. was organized during 2019 and started operations on January 1, 2020. Cash expenditures during 2019 were the following.

Required

Prepare a 2019 summary journal entry to record the cash expenditures related to the startup of the new company.

Brian Kelly is the founder and CEO of Kelly’s Barbecue and Grill (KBG).  KBG is a local retailer of outdoor cooking equipment, ranging from small portable gas grills to competition grade barbecue grills and smokers.  Kelly has operated his business profitably for nearly 15 years.  In recent years, sales revenues and profits have been stagnant.  As an old-fashioned type, Kelly has always operated his business on a cash-only basis.  After consulting with his accountant, Josh Adams CPA, Kelly believes that his sales policy has left little room for additional growth.  

Kelly is considering offering 30-day credit to customers in an effort to drive increased sales.  Initially, he plans to only offer credit on his high-end propane grill model before extending this new policy to his full inventory.  His luxury gas grill model, the Caliber Cross Flame Pro retails for $12,590 and costs Kelly $10,470 per unit from his supplier.  There should be no change to his cost per unit, but Kelly believes that he might be able to mark-up his retail price to $13,000 since he will be offering more flexible payment terms.  

KBG currently sells an average of 15 units of the Caliber model each month.  Kelly thinks that he may be able to sell up to an average of 22 units per month if he begins offering the proposed 30-day credit terms.  Kelly has further decided that a 3% per month required return would be appropriate for evaluating the proposed credit policy change.  

1. Calculate the net present value (NPV) of switching from the cash-only policy to the 30-day credit terms.

2. Determine the minimum increase, or maximum decrease, in monthly sales volume for Kelly to deem the switch appropriate.

Kelly currently places a monthly order of 15 units of the Caliber model from his supplier.  It costs him $50 to place each order and he estimates that it costs him about $23 to store each grill in inventory for a year.

3. Under his current ordering system, with monthly sales of 15 units;
   1. What is the average inventory balance (in units) for the Caliber model, assuming the grills are sold evenly throughout the month?

2. How much does Kelly pay per year in ordering costs?

3. How much does Kelly pay per year in storage costs?

4. How much money would Kelly save per year if he were to optimize his order size?  

5. Assuming his goal would be to minimize the total costs incurred for ordering/storing inventory, how many units of the Caliber model should Kelly order each time he places an order when his monthly sales volume is 22 units?  

Suppose you are now a Founder and CEO of Rent the Dresses, Inc., an online rental site for premium dresses primarily for women. Because the business is a start-up, there is no accountant on the management team yet, so you have been doing the accounting. You notice that an average of 100,000 visitors come to your website, of which 60% browse through the website. 20% of them register and put at least one item in the shopping cart. One out of three registered customers actually checkout and pay for the items. Calculate the following (and show your work for partial credit!) a. Bounce rate b. Conversion rate c. Average monthly revenue, assuming AOV is $200.