Mountain Distribution has decided to analyze the profitability of five new customers. The company has the following​ activities:

It buys bottled water at ​$12.20 per case and sells to retail customers at a list price of $14.50

per case. Data pertaining to the five customers​ are:

Requirement

P3-10A Pamper Me Salon Inc.’s general ledger at April 30, 2017, included the following: Cash $5,000, Supplies $500, Equipment $24,000, Accounts Payable $2,100, Notes Payable
$10,000, Unearned Service Revenue (from gift certifi cates) $1,000, Common Stock $5,000, and Retained Earnings $11,400. The following events and transactions occurred during May.

May 1 Paid rent for the month of May $1,000.
4 Paid $1,100 of the account payable at April 30.
7 Issued gift certifi cates for future services for $1,500 cash.
8 Received $1,200 cash from customers for services performed.
14 Paid $1,200 in salaries to employees.
15 Received $800 in cash from customers for services performed.
15 Customers receiving services worth $700 used gift certifi cates in payment.
21 Paid the remaining accounts payable from April 30.
22 Received $1,000 in cash from customers for services performed.
22 Purchased supplies of $700 on account. All of these were used during the
month.
25 Received a bill for advertising for $500. This bill is due on June 13.
25 Received and paid a utilities bill for $400.
29 Received $1,700 in cash from customers for services performed.
29 Customers receiving services worth $600 used gift certifi cates in payment.
31 Interest of $50 was paid on the note payable.
31 Paid $1,200 in salaries to employees.
31 Paid income tax payment for the month $150.
Instructions
(a) Using T-accounts, enter the beginning balances in the general ledger as of April 30,
2017.
(b) Journalize the May transactions.
(c) Post the May journal entries to the general ledger.
(d) Prepare a trial balance on May 31, 2017.

e) prepare the Income Statement for the month ended May 31, 2017

f) Prepare the Statement of Retained Earnings for the month ended May 31, 2017

g) Prepare the Balance Sheet for May 31, 2017

h)Prepapre the Statement of Cash Flows for the month ended May 31, 2017

I) Calculate the following for May: Working Capital, Current Ratio, Debt to Asset Ratio, Profit margin, & Return on Equity

32) Which of the following statements are TRUE regarding the impact of a dividend issuance compared to a share repurchase on the three financial statements?

a) Both a dividend issuance and a share repurchase will change the company’s Earnings per Share (EPS), since dividends affect earnings and repurchased shares affect the company’s share count.

b) A share repurchase is better for both the company and shareholders because no taxes are paid on repurchased shares, whereas taxes are always paid on dividends issued.

c) Both a share repurchase and a dividend issuance will show up within the Cash Flow from Financing section of the Cash Flow Statement.

d) Both a dividend issuance and a share repurchase will reduce the Equity line item on a company’s Balance Sheet.

e) While a share repurchase reduces the Treasury Stock line item within Equity, a dividend issuance reduces Accumulated Other Comprehensive Income (AOCI), since AOCI represents the company’s saved-up, after-tax earnings.

42) Suppose that you have built a PP&E Schedule.. Which of the following conditions might you check to verify that you are using reasonable assumptions?

a) CapEx as a % of Revenue should almost always be rising over time for a high-growth company like this one.

b) The CapEx annual growth rate should be in-line with historical growth rates, perhaps declining modestly each year as the company grows.

c) Particularly if a company is growing quickly, CapEx as a % of Revenue will often exceed Depreciation as a % of Revenue.

d) In the long-term, Total CapEx should always equal Total Depreciation because the company’s Net PP&E balance should not be changing.

e) CapEx as a % of Revenue should be falling over time because companies have lower re-investment needs as their businesses grow.

47) Suppose that you are analyzing a high-growth software company, such as the one we have been using in these examples. This company, despite its high growth, also has high margins and is generating significant Free Cash Flow.

Which of the following answer choices represent the BEST ways for this company to spend its excess Free Cash Flow if it wants to maximize its valuation?

a) Return capital to investors in the form of dividends or share repurchases, as doing so will likely boost the value of the company’s shares.

b) Substantially increase spending on Working Capital or Capital Expenditures, as both items are essential for software companies to grow.

c) Spend more on sales & marketing to win bigger customers and boost the average customer value.

d) Acquire related companies if the market is highly fragmented and there are target companies with reasonable valuations.

11. A manufacturing company produced the following number of units in the last 16 days: 27 28 27 28 27 25 25 28 26 28 26 28 31 30 27 26 (e) How many classes would you recommend? Explain. (f) What class interval do you suggest? Explain. (g) What lower limit would you recommend for the first class? Explain. (h) Organize the information into a frequency distribution and determine the relative frequency distribution. You can do this either by hand or in Excel.

A high school is examining whether or not a certain college admissions test prep course is helpful. To evaluate this, 15 students took the college admissions test. Afterwards, they went through the prep course and then took the admissions test again. Their before and after scores are shown below. With a significance level of 0.90, is the admissions test prep course effective?

Student Before After

1 27 29

2 28 29

3 30 31

4 32 31

5 16 20

6 25 27

7 27 27

8 25 26

9 27 30

10 23 28

11 25 26

12 24 24

13 22 25

14 31 32

15 25 25

A monopolistic firm operates in two separate markets. No trade is possible between market A and market B. The firm has calculated the demand functions for each market as follows:

     Market A p = 15 - Q; Market B p = 11 - Q

The company estimates its total cost function to be TC = 4Q. Calculate the following:

1. quantity, total revenue, and profit when the company maximizes its profit and charges the same price in both markets
2. quantity, total revenue, and profit when the company charges different prices in each market and maximizes its total profit

(b) For a study of TV shows, you obtain the rating, market share, and advertising revenue for 95 popular TV shows.
Which of these are statistical questions that could be answered from this data set? (Check all that apply.)

*Does the market share of TV shows differ based on the gender of viewers?

*For all TV shows on network television, what percentage have ratings of 5.0 or lower?

*What is the distribution of ratings for the 95 shows in this sample?

*Is there a relationship between the rating and advertising revenue of the 95 shows in this sample?

*Which of the 95 popular shows in this sample would you rate the highest?

Suppose that land is specific to corn, capital is specific to automobiles, labor is mobile between sectors, and payments are as follows:
Automobiles: Sales revenue = 200; payments to labor = 100; payments to capital = 100
Corn: Sales revenue = 100; payments to labor = 40; payments to land = 60
Holding the price of automobiles constant, suppose the increase in the price of corn is 20% and the increase in the wage is 10%.
What is the impact of this on the income of land and the income of capital? What has happened to the real income of land? What has happened to the real income of capital? What has happened to the real income of labor?

A restaurant chain in Ontario wants to know the level of satisfaction of their customers. From each of Toronto and Ottawa, a random sample of 14 customers was selected and asked to rate their dining experience on a scale from 1 to 10 (with 1 being not satisfied at all, 10 being extremely satisfied). A total of 28 scores was collected. Below is a summary of the data:

Which test should you run: pooled -test, or non-pooled -test (and why)? [use d.f = 21.32 if you decide to use the non-pooled test]

(c) Based on your answer in (a), test whether there are higher average satisfaction scores in Ottawa than in Toronto at the at the 5% level of significance. You should follow these instructions precisely to get full marks: state clearly the null and alternative hypotheses (in both symbols and words), compute the value of the test statistic, determine the p-value (if a precise p-value cannot be found, then you must give a range). Make your decision, and provide 2–3 lines of for your conclusions.

(d) Suppose you also want to compare the proportions of customers who rate 8 or more on their dining experience. Construct a 92% confidence interval for the difference in the proportions between Toronto and Ottawa customers. To receive full marks, you should additionally include a check on whether the statistical procedure you used is valid, and provide an interpretation of your confidence interval.

Answer all the Questions and should have included 500 words in each questions:                                                                           
1. Expenses, losses, and distribution of owners are all decreases in net assets. What are the distinctions among them?
2. Is it necessary that a trial balance be taken periodically? What purpose does it serve?
3. How does information from the balance sheet help users of the financial statements?
4. What is the relationship between current assets and current liabilities?
5. What is the difference between Accounts receivable and Revenue?