A company in the United States, imports and exports equipment. The company uses a perpetual inventory system. During May the company entered into the following transactions. All rate quotations are direct exchange rates.

May 2 Purchased power tools from a wholesaler in Japan, on account, at an invoice cost of 1,600,000 yen. On this date the exchange rate for the yen was $.0072.

4 Sold hand tools on credit that were manufactured in the U.S. to a retail outlet located in West Germany. The invoice price was $2,800. The exchange rate for marks was $.5829.

8 Sold electric drills on account to a retailer in New Zealand. The invoice price was 16,800 U.S. dollars and the exchange rate for the New Zealand dollar was $.576. 10 Purchased drill bits on account from a manufacturer located in Belgium. The billing was for 801,282 francs. The exchange rate for francs was $.0312.

15 Paid 1,000,000 yen on account to the wholesaler for purchases made on May 2. The exchange rate on this date was $.0067.

17 Settled the accounts payable with the Belgium manufacturer. The exchange rate was $.0368.

21 Received full payment from the New Zealand retailer. The exchange rate was $.568.

29 Completed payment on the May 2 purchase. The exchange rate was $.0078.
(Show calculations)
Prepare journal entries on the books of the US Company to record the transactions listed above.

`1-

Liz saved $270 at the end of every month for 6 years in her bank account that earned 3.70% compounded monthly.

a. What is the accumulated value of her savings at the end of the period?

a$21,393.49

b$21,729.45

c$196,528.63

d$2,289.45

b. What is the interest earned over the period?

a$2,019.45

b$21,729.45

c$2,559.45

d$2,289.45

2-

What nominal interest rate compounded semi-annually is equivalent to 3.63% compounded quarterly?

%

3-If Lionel wants to earn interest of $3,547.75 on his $11,000.00 savings in 2 years, at what nominal interest rate compounded quarterly do you suggest he invests his money?

4-Orange Company holds a loan with an interest rate of 6.00% compounded quarterly. Calculate the effective rate of the loan.

Recall that Benford's Law claims that numbers chosen from very large data files tend to have "1" as the first nonzero digit disproportionately often. In fact, research has shown that if you randomly draw a number from a very large data file, the probability of getting a number with "1" as the leading digit is about 0.301. Now suppose you are an auditor for a very large corporation. The revenue report involves millions of numbers in a large computer file. Let us say you took a random sample of n = 215 numerical entries from the file and r = 49 of the entries had a first nonzero digit of 1. Let p represent the population proportion of all numbers in the corporate file that have a first nonzero digit of 1.

(i) Test the claim that p is less than 0.301. Use α = 0.05.(a) What is the level of significance?


State the null and alternate hypotheses.

H₀: p = 0.301; H₁: p ≠ 0.301H₀: p < 0.301; H₁: p = 0.301    H₀: p = 0.301; H₁: p < 0.301H₀: p = 0.301; H₁: p > 0.301

(b) What sampling distribution will you use?

The standard normal, since np > 5 and nq > 5.The Student's t, since np > 5 and nq > 5.    The standard normal, since np < 5 and nq < 5.The Student's t, since np < 5 and nq < 5.

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


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


Sketch the sampling distribution and show the area corresponding to the P-value.

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α?

At the α = 0.05 level, we reject the null hypothesis and conclude the data are statistically significant.At the α = 0.05 level, we reject the null hypothesis and conclude the data are not statistically significant.    At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are statistically significant.At the α = 0.05 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.

(e) Interpret your conclusion in the context of the application.

There is sufficient evidence at the 0.05 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301.There is insufficient evidence at the 0.05 level to conclude that the true proportion of numbers with a leading 1 in the revenue file is less than 0.301.    

(ii) If p is in fact less than 0.301, would it make you suspect that there are not enough numbers in the data file with leading 1's? Could this indicate that the books have been "cooked" by "pumping up" or inflating the numbers? Comment from the viewpoint of a stockholder. Comment from the perspective of the Federal Bureau of Investigation as it looks for money laundering in the form of false profits.

Yes. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts.No. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts.    Yes. The revenue data file seems to include more numbers with higher first nonzero digits than Benford's law predicts.No. The revenue data file does not seem to include more numbers with higher first nonzero digits than Benford's law predicts.

(iii) Comment on the following statement: If we reject the null hypothesis at level of significance α, we have not proved H_o to be false. We can say that the probability is α that we made a mistake in rejecting H_o. Based on the outcome of the test, would you recommend further investigation before accusing the company of fraud?

We have not proved H₀ to be false. Because our data lead us to accept the null hypothesis, more investigation is not merited.We have not proved H₀ to be false. Because our data lead us to reject the null hypothesis, more investigation is merited.    We have proved H₀ to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.We have not proved H₀ to be false. Because our data lead us to reject the null hypothesis, more investigation is not merited.

Viewing Saved Work Revert to Last Response

2.

[–/8 Points]DETAILSBBUNDERSTAT12 8.3.009.

MY NOTES

Is the national crime rate really going down? Some sociologists say yes! They say that the reason for the decline in crime rates in the 1980s and 1990s is demographics. It seems that the population is aging, and older people commit fewer crimes. According to the FBI and the Justice Department, 70% of all arrests are of males aged 15 to 34 years†. Suppose you are a sociologist in Rock Springs, Wyoming, and a random sample of police files showed that of 35 arrests last month, 26 were of males aged 15 to 34 years. Use a 10% level of significance to test the claim that the population proportion of such arrests in Rock Springs is different from 70%.
(a) What is the level of significance?


State the null and alternate hypotheses.

H₀: p ≠ 0.7; H₁: p = 0.7H₀: p = 0 .7; H₁: p < 0.7    H₀: p = 0.7; H₁: p > 0.7H₀: p < 0 .7; H₁: p = 0.7H₀: p = 0.7; H₁: p ≠ 0.7

(b) What sampling distribution will you use?

The standard normal, since np > 5 and nq > 5.The standard normal, since np < 5 and nq < 5.    The Student's t, since np < 5 and nq < 5.The Student's t, since np > 5 and nq > 5.

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


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


Sketch the sampling distribution and show the area corresponding to the P-value.

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α?

At the α = 0.10 level, we reject the null hypothesis and conclude the data are statistically significant.At the α = 0.10 level, we reject the null hypothesis and conclude the data are not statistically significant.    At the α = 0.10 level, we fail to reject the null hypothesis and conclude the data are statistically significant.At the α = 0.10 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.

(e) Interpret your conclusion in the context of the application.

There is sufficient evidence at the 0.10 level to conclude that the true proportion of arrests of males aged 15 to 34 in Rock Springs differs from 70%.There is insufficient evidence at the 0.10 level to conclude that the true proportion of arrests of males aged 15 to 34 in Rock Springs differs from 70%.    

3.

[–/8 Points]DETAILSBBUNDERSTAT12 8.3.010.

MY NOTES

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?


State the null and alternate hypotheses.

H₀: p < 0.67; H₁: p = 0.67H₀: p = 0.67; H₁: p > 0.67    H₀: p = 0.67; H₁: p ≠ 0.67H₀: p = 0.67; H₁: p < 0.67

(b) What sampling distribution will you use?

The standard normal, since np < 5 and nq < 5.The Student's t, since np > 5 and nq > 5.    The Student's t, since np < 5 and nq < 5.The standard normal, since np > 5 and nq > 5.

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


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


Sketch the sampling distribution and show the area corresponding to the P-value.

(d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis? Are the data statistically significant at level α?

At the α = 0.10 level, we reject the null hypothesis and conclude the data are statistically significant.At the α = 0.10 level, we reject the null hypothesis and conclude the data are not statistically significant.    At the α = 0.10 level, we fail to reject the null hypothesis and conclude the data are statistically significant.At the α = 0.10 level, we fail to reject the null hypothesis and conclude the data are not statistically significant.

(e) Interpret your conclusion in the context of the application.

There is sufficient evidence at the 0.10 level to conclude that the true proportion of women athletes who graduate is less than 0.67.There is insufficient evidence at the 0.10 level to conclude that the true proportion of women athletes who graduate is less than 0.67.    

Easy on the Wallet or Easy on the Earth: A Case About Ethics in Sourcing

Meghan Skarzynski

Fashionforward! is an online auction site where those who have more style than money can bid on designer apparel. The site registers members for $30, who are then allowed to bid on exceptional deals. In an effort to stand out from the crowded field of online bargain sites, Fashionforward! reached out to the local community in search of help marketing their company to college students.

Part of this effort included hiring a student intern, Carly LeBlanc. At that point, Fashionforward! had no formal marketing strategy for targeting consumers. As someone who grew up in the digital age, LeBlanc knew she had to kick start the company on the Internet. Her marketing knowledge centered on the benefits of viral technologies, especially Facebook and Twitter.

LeBlanc immediately revamped the Fashionforward! Facebook page to make it more user-friendly--adding quizzes, polls, discussion boards, and photo albums--as well as setting Twitter blasts to go off repeatedly throughout the day. During her three-month internship, LeBlanc quadrupled the Fashionforward! Facebook fan base. Her project helped catapult the company into prominence. In the three months of her internship, Fashionforward! increased the number of items offered on the site threefold.

The CEO noticed LeBlanc's success in social networking and asked her to launch a guerrilla marketing campaign on her own campus to create buzz for Fashionforward! among her peers. The CEO challenged her to register 100 new clients within the week.

A member of a sorority since her freshman year, LeBlanc decided to use her Greek connections. She appeared at four campus sororities that week. Promising a free Fashionforward! T-shirt with the sorority's name for every membership purchased, LeBlanc registered 300 new members in one night.

Reporting to work the next day, LeBlanc was excited to share with the team the quick acceptance Fashionforward! had received on campus. She believed she had developed an easy and effective marketing strategy that could be replicated at schools all over the country. LeBlanc planned to order different T-shirt designs for different sororities, highlighting the Fashionforward! logo in bold lettering.

That's when she faced a difficult ethical decision: She could order the shirts from a low-cost company in China or she could order them from a fair-trade company in San Francisco, which provided safe conditions and higher wages for the workers who made the clothing. The fair trade shirts were $28.65,making the grand total for her project $8,595. In contrast, the Chinese T-shirts were $5.50 each, and the company's Web site promised fast and free delivery for a grand total of $1,100.

LeBlanc remembered from her Venture Capital Finance class that startup companies need to focus on making the most money during the first two years. She also knew that the T-shirts from China would be cheaper so that she could create a more elaborate design with more graphics and color. She realized her school was a "testing campus" for Fashionforward! and that if her marketing module worked, her internship work would spread to other college campuses. She thought of how easy it would be for a factory in China to produce large quantities of shirts to give away for free as a promotion that she could promote on the Facebook page she had worked so hard on. She also wondered if the higher cost of the T-shirts would affect the grade the CEO gave her for the internship.

On the other hand, her International Management class had exposed her to the harsh reality of working conditions in China: low wages, rigorous work schedule, poor safety regulations, and the complete lack of worker's compensation and benefits. When LeBlanc had sailed on the Human Rights and Social Justice Voyage with University of Virginia's Semester at Sea, she saw first-hand a Bulgarian clothing factory's destitute environment. She wasn't sure how the public would react if they knew Passionita had taken advantage of outsourcing cheaper t-shirts rather than supporting a U.S. company during the global recession.

Then LeBlanc weighed her other option of ordering t-shirts from a San Francisco T-shirt company she had already used once when she worked with a community service student organization. While the shirts were more expensive, they were fair-trade, organic, and eco-friendly, all attributes she thought would appeal to students. LeBlanc reasoned students would be more likely to wear a shirt that was fashionable and better quality than one that was made cheaply.

LeBlanc didn't want to disappoint her boss. She knew she was working on a deadline and didn't have time to research the prices of T-shirts at other companies. Even though she could have created a bidding war with local T-shirt companies for the business, she preferred to buy from a company that she could trust. At the same time, the $7,495 she would save if she bought from the Chinese manufacturer was too good not to consider. She knew if she made her boss happy, she'd be promoted and enjoy more independence with her future projects.

LeBlanc wants Fashionforward! to increase its popularity and become a topnotch company among college trendsetters. What should she do and why?

1. Should she quit her internship and drop the class?

2. Should she ask for an extension on her assignment?

3. Should she order the T-shirts from a fair trade company?

4. Should she assume the Chinese company doesn't treat its workers fairly?

Answer the four Discussion Questions below here, to present detailed answers.

In the United States, organ procurement organizations (OPOs), transplant centres, and the medical professions coordinate the organ donation process. The US government pays for this treatment through its Medicare program. What price should the US government pay for these organs from the taxes it collects from all citizens? Often multiple organs are removed from a single donor, meaning that there are joint costs such as operating room time, surgeons’ fee, and medications to preserve the organs.

The OPO insist all costs be allocated to each organ, irrespective of whether the organ is actually collected for transplant. For example, lung and kidney donations may be planned, but the surgeon discovers post-mortem that the lungs are not viable. A portion of joint costs will still be assigned to the lungs; otherwise, total costs of the donation would be assigned to the kidneys.

The payer, the US government, does not want to pay the joint costs assigned to the lungs. The Medicare program pays only for transplanted organs. Over 62% of all kidney transplant are paid for by Medicare. Six years ago, a government audit revealed that, of the total of $80 million in organ acquisition costs, $47 million were unallowed and unsupported.

Some organs, such as one kidney, part of a liver, part of a lung, bone marrow, and stem cells, can be recovered from live donors. The recovery of these organs requires major surgery and patients are anaesthetized. The surgeon ensures the donor’s organa are suffused with a protective chemical and removes the organ. The donated organ is preserved in a chemical and placed in a refrigerated container for immediate transport. The donor often recovers after two to five days in hospital.

In contrast, stem cells are recovered from live donors who receive medication to increase the number of stem cells in the blood for four to five days prior to the transplant. The process is similar to a blood donation. The stem cells are extracted from whole blood removed intravenously from the donor’s arm. The rest of the blood is returned to the donor while the stem cells are sealed in plastic packs, placed in a special container, and transported to the recipient. The donor usually returns home to rest for the remainder of the day before resuming normal life. The stem cells are injected intravenously into the recipient’s arm.

Required:

1. Of the reasons to use acceptable methods to allocate joint costs, which ones are relevant in this case?

2. What costs are incurred beyond the split-off point that differ between these two types of donations?

3. What would the separable costs be?

4. In Canada, where all medically necessary care is paid for from tax revenue, of what relevance is joint cost allocation?

Situation 5: John Miller, a white employee, is terminated for theft from Schmuck Markets where he works. Nathan Martin, a black employee, who also stole from the company at the same time, is not terminated.

Would John file a discrimination suit under the Disparate Treatment, Mixed Motive, or Disparate Impact theory?

Group of answer choices

Disparate Treatment

Disparate Impact

Mixed Motives

The COVID-19 worldwide pandemic has been changing world economies. Which international businesses (or domestic) are profiting from this pandemic? Choose one company and share how they can get ahead in these times of uncertainty.
Where is the money coming from? (Who s buying the goods/product/services?)
Any other additional thoughts/concerns/observations you want to share? (with cite sourcing support)

4. Suppose your company has opened a futures position in the Brazilian Real futures contract traded on the CME Group. One contract is worth 100,000 Brazilian Reais, and the price quote is given as # USD per 1 Brazilian Real. Suppose today’s futures price for the Brazilian Real futures contract that expires in October is ‘0.1883’. If the daily changes in the settlement prices over the next 5 days turn out to be 0.0015, 0.0010, -0.0005, 0.0020, and -0.0025 (quoted on same basis as the price--#US$ per 1 Brazilian Real), what would be the total marking-to-market change in the value of the contract over the 5 days? If your company was long Brazilian Real, would it have gained or lost from this marking-to-market change in value (assume 1 contract)?

ABC is a company that just bought goods from a french company for 500 million euros with payment due in 4 months. Assume the following:

Spot rate $1.30/euro

4 month forward rate $1.31/euro

4 month french interest rate 8% pa; US 6% pa

4 month call option on euros at a strike price of $1.29/euro with a 3% premium

4 month put option on euros at a strike price of $1.305/euro with a 4% premium

Questions:

1, The proceeds of the forward market hedge are?

2. The proceeds of the money market are?

3.The future value of the appropriate premium is?

4. Breakeven exchange rate between forward market hedge and your option alternative?

Please show how you got the answers so I can understand

Compute and Interpret Coverage, Liquidity and Solvency Ratios

Selected balance sheet and income statement information from CVS Health Corp. for 2014 through 2016 follows ($ millions).

a. Compute times interest earned ratio for each year and discuss any trends for each. Round answers to one decimal place.

Based on your computations above, select the most appropriate answer.

Times interest earned has steadily increased since 2014.

Times interest earned has steadily decreased since 2014.

Times interest earned has remained the same since 2014.

Times interest earned increased in 2015 but then decreased in 2016.

b. Compute the current ratio for each year and discuss any trend in liquidity. Round answers to one decimal place.

Do you believe the company is sufficiently liquid? Explain.

CVS’s current ratio has increased over the past three years and is greater than 1, indicating CVS is liquid.

CVS’s current ratio has decreased over the past three years and it is currently less than 1 indicating CVS is not liquid.

CVS’s current ratio has increased over the past three years, however, it remains less than 1 indicating CVS is not liquid.

CVS’s current ratio has decreased over the past three years, however, it is greater than 1 indicating CVS is liquid.

c. Compute the total liabilities-to-equity ratio for each year and discuss any trends for each.

Round answers to one decimal place.

Based on your computations above, select the most appropriate answer.

CVS's liabilities to equity ratio has increased since 2014, however, the ratio is relatively low, concluding CVS is solvent.

CVS's liabilities to equity ratio has decreased since 2014, remaining relatively low, concluding CVS is solvent.

CVS's liabilities to equity ratio has increased since 2014, and is relatively high, concluding CVS is insolvent.

CVS's liabilities to equity ratio has decreased since 2014, remaining relatively low, concluding CVS is insolvent.

d. What is your overall assessment of the company’s credit risk from the analyses in (a), (b), and (c)?

CVS is a low credit risk as it has a low level of debt, is liquid and can easily meet its interest expenses.

CVS is a low credit risk as its liabilities to equity ratio, current ratio, and times interest earned ratio have all decreased since 2014.

CVS is a medium to high credit risk as its level of debt has increased and its current ratio and times interest ratio have decreased.

CVS is a medium to high credit risk as its liabilities to equity ratio, current ratio, and times interest earned ratio have all increased since 2014.