Elements of the Income Statement for Hofstadter Experiments Ltd. follow:

Highlights of the Balance Sheet:

Required:   (Round all answers to 2 decimal places).

1. Calculate the gross profit rate for both 2019 and 2020.
2. Did the gross profit rate improve or worsen from 2019 to 2020?
3. What was the Accounts Receivable Turnover ratio for 2020?
4. Explain what Accounts Receivable Turnover is in your own words.
5. What was the Return on Common Shareholders’ Equity for 2020?
6. What was the Current Ratio for 2020?
7. Is the current ratio calculated in f) adequate?

A wholesale business with December 31 year-end purchased new equipment on November 25, 2018, for 40,000. Before 2018, the business owned no other equipment.

Required:

1. Complete the table below to show the tax consequences. If the business sells the equipment in 2020 for (a)$15000 (b) $23000 (c) $46000.

2018 purchase:

2018 CCA:

2018 UCC:

2019 CCA:

2019 UCC:

SITUATION A:

Less: Disposal Proceeds:

Interim UCC:

Terminal Loss/ Recapture:

Ending UCC:

Situation B

Less: Disposal Proceeds:

Interim UCC:

Terminal Loss/ Recapture

Ending UCC:

Situation C

Less: Disposal proceeds:

Interim UCC balance

Terminal Loss/ Recapture

Ending UCC:

Capital Gain:

Taxable Capital Gain:

2) How would your answer change if on December 31, 2020. the business acquired new equipment costing $1000? ( Enter minus sign when the amount is reducing the CCA

SITUATION A:

Less: Disposal Proceeds:

Interim UCC:

Terminal Loss/ Recapture:

Ending UCC:

Situation B

Less: Disposal Proceeds:

Interim UCC:

Terminal Loss/ Recapture

Ending UCC:

Situation C

Less: Disposal proceeds:

Interim UCC balance

Terminal Loss/ Recapture

Ending UCC:

Capital Gain:

Taxable Capital Gain:

The balances in the accounts of Maybe Ltd at 30 June 2019 and 30 June 2020 are:

Other information:

Share capital is increased by the bonus issue of 24 000 shares for $1.00 each out of retained earnings. Plant is acquired during the period at a cost of $36 000, while plant with a carrying amount of $nil (cost of $24 000, accumulated depreciation of $24 000) is scrapped.

Required:

a)      Reconstruct the allowance for doubtful debts and accounts receivable.

(6.5 marks)

b)      Reconstruct inventory and accounts payable

c)      Reconstruct accrued salaries

d)      Reconstruct property, plant and equipment and a

When Roberto Goizueta became Coke’s CEO in 1981, he took over a poorly performing company that had diversified into unrelated businesses ranging from water purification to shrimp farming. One of his first initiatives was to analyze Coke’s various businesses using economic profit. The analysis concluded that only Coke’s core carbonated beverage business was creating shareholder value. The other businesses, while generating revenue, were actually consuming value. Consequently, they were divested or shut down. Goizueta then focused on Coke’s core beverage business using its substantial competitive advantages: global brand, worldwide distribution system, and sales and marketing expertise. The result was 18 years of success.

Similarly, when Bob Lane took over a poorly performing John Deere in August 2000, he quickly identified Deere’s biggest problem: spending too much money to make money. Factories tended to overproduce, leading to a large number of very expensive, large farming machines simply sitting on dealer floors. Lane began looking at economic profit. He decided managers were treating capital as a free resource. He charged each division manager 1 percent each month of the cost of the assets they used and required that at the end of the year their financial results exceed the charges. Deere has done well in the succeeding years.

What is the appropriate measure of a firm’s performance?

What does a focus on economic profit as opposed to a focus on accounting profit mean for a firm and its investors?”

Every year, Jessica Gomez, CEO of Logan Construction Company, takes a two week vacation to Barbados and signs multiple blank checks to pay for any major bills that come due while she is away. Jessica's vacation occurs towards the end of Logan's fiscal year. Carl Johnson, controller for the company, uses this practice for his gain. He identifies a very large invoice from a vendor, makes out a check to himself for that amount, and records it as a payment to the vendor for acquisition of supplies. He holds the check for several weeks to ensure the auditors will not review the canceled check. Not long after the first of the year, Johnson resubmits the invoice to Gomez for approval and records the check in the cash disbursements journal. Johnson then marks the invoice as paid and files away with other paid invoices. Johnson has been performing this activity many years and believes he has no risk of getting caught.

Required:

There are so many opportunities for improvement in the internal controls in this scenario. With an unlimited amount of funds, many people, and an unlimited time frame, a company could virtually eliminate all control risk. Practically speaking, though, that is not feasible for 95%+ of all companies. Small companies like Logan Construction especially struggle with control risk in the areas of acquisition and financing because they operate with minimal staffing, restrictive budgets, and a remote workforce.

If you were consulting with Logan Construction on internal control improvement opportunities, provide two short term suggestions for controls improvement, and one long term suggestion that the company might need to plan for financially or technologically.

5(a)What is the probability that out of 200 pieces of randomly selected glass, more than fifty-five of them are defective. [5 marks]

A sample of 12 of bags of Calbie Chips were weighed (to the nearest gram), and listed here as follows.

219, 226, 217, 224, 223, 216, 221, 228, 215, 229, 225, 229 Find a 95% confidence interval for the mean mass of bags of Calbie Chips.

[9 marks]

(b) Professor GeniusAtCalculus has two lecture sections (A and B) of the same 4th year Advanced Calculus (AMA 4301) course in Semester 2. She wants to investigate whether section A students maybe ”smarter” than section B students by comparing their perfor- mances in the midterm test. A random sample of 12 students were taken from section A, with mean midterm test score of 78.8 and standard deviation 8.5; and a random sample of 9 students were taken from section B, with mean midterm test score of 86 and standard deviation 9.3. Assume the population standard deviations of midterm test scores for both sections are the same. Construct the 90% confidence interval for the difference in midterm test scores of the two sections. Based on the sample midterm test scores from the two sections, can Professor GeniusAtCalculus conclude that there is any evidence that one section of students are ”smarter” than the other section? Justify your conclusions.

[8 marks]

(c) The COVID-19 (coronavirus) mortality rate of a country is defined as the ratio of the number of deaths due to COVID-19 divided by the number of (confirmed) cases of COVID-19 in that country. Suppose we want to investigate if there is any difference between the COVID-19 mortality rate in the US and the UK. On April 18, 2020, out of a sample of 671,493 cases of COVID-19 in the US, there was 33,288 deaths; and out of a sample of 109,754 cases of COVID-19 in the UK, there was 14,606 deaths. What is the 92% confidence interval in the true difference in the mortality rates between the two countries? What can you conclude about the difference in the mortality rates between the US and the UK? Justify your conclusions. [8 marks]

1. What trends do you notice in your data set? 2. Based on the trends and the history of your data set, make a claim. What kind of test (left, right, two tailed) would you have to complete? 3. Explain the steps needed to complete the Hypothesis Test. What is needed? Medical Prep Institute of Tampa Bay $25,823 Sanford-Brown College Online $14,667 South University Tampa $17,014 Strayer University-Florida $13,515 The University of Tampa $29,992 University of South Florida-Main Campus $6,410 Average $17,904