The following information are the balances extracted from the books of Xxx for the year ended 31 December 2017:
accounts                  dr                        cr
opening stock        8000
buildings                 15000
debitors                  4000
purchases               22000
salaries                    1200
sales                                                   36000
discount                  800
sales returns          1000
furniture                 3000
office exp               300
wages                      600
purchase returns                               600
interest                                                  500
travelling exp         400
insurance                 600
machinery              8000
carriage on purchases 800
commission           600
cash in hand          1400
rent and rates         2400
capital                                                   25000
creditors                                                8000
totals                      70100                   70100

Adjustments need to be made:
1. closing stock was valued at $9000.
2. office exp $2000 and wages 300 are outstanding.
3.depreciate building by 2%, machinery by 10% and furniture by 20%
4. prepaid insurance $100

Required:
1.Prepare Trading & Profit and Loss account for the year ended 31 December 2017.
2. Balance sheet as on 31 December 2017

In a study of monthly salary distribution of residents in Paris conducted in year 2015, it was found that the salaries had an average of €2200 (EURO) and a standard deviation of €550. Assume that the salaries were normally distributed.

Question 1: Consider sampling with sample size 64 on the above population. Compute the mean of the sampling distribution of the mean (?̅).

Question 2: Compute the standard deviation of the sampling distribution of the mean in Question 1 above.

Question 3: A random sample of 64 salaries (sample 1) was selected from the above population. What is the probability that the average of the selected salaries is above €2330?

Question 4: Would the calculation you performed in Question 3 still be valid if the monthly salaries were NOT normally distributed? Why? In another study conducted in the same year (2015), the average monthly salary of residents in Bordeaux was found to be about €2353. And the standard deviation of the monthly salaries was €420. A random sample of 81 salaries (sample 2) was selected from this population. Set 1 = Paris (2015); 2 = Bordeaux (2015)

Question 5: Compute the mean of ?̅ 1 − ?̅ 2.

Question 6: Compute the standard deviation of ?̅ 1 − ?̅ 2.

Question 7: What is the probability that the average of the salaries in the sample 1 is less than the average of the salaries in sample 2? In 2017, a study on the salary distribution of Paris residents was conducted. Assume that the salaries were normally distributed. A random sample of 10 salaries was selected and the data are listed below: 3200 3500 3000 2100 2950 2050 2440 3100 3500 2500

Question 8: Assume that the standard deviation of the salaries was still the same as in 2015. Estimate the average salary (in 2017) with 95% confidence.

Question 9: The assumption made in Question 8 was certainly unrealistic. Estimate the average salary (in 2017) with 95% confidence again assuming that the standard deviation had changed from 2015.

Question 10: Estimate the variance of monthly salaries of Paris residents (in 2017) based on the sample provided above at a 95% confidence level.

Question 11: How would you interpret the result in Question 10 above? A similar study was conducted on salary distribution of Paris residents in 2019. The research team aimed to estimate the average salary. They chose the 98% confidence and assumed that the population standard deviation was the same as in 2015. Assume again that those salaries were normally distributed.

Question 12: If they would like the (margin of) error to be no more than €60, how large a sample would they need to select?

Closing the Balances in The Variance Accounts at the End of the Year

Yohan Company has the following balances in its direct materials and direct labor variance accounts at year-end:

Unadjusted Cost of Goods Sold equals $1,550,000, unadjusted Work in Process equals $276,000, and unadjusted Finished Goods equals $280,000.

Required:

1. Assume that the ending balances in the variance accounts are immaterial and prepare the journal entries to close them to Cost of Goods Sold. Note: Close the variances with a debit balance first. If an amount box does not require an entry, leave it blank or enter "0".

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Companies must restate costs and inventories at the end of the year to actual cost. So, variance accounts must be closed out and their balances applied to Cost of Goods Sold (if immaterial) or prorated among Cost of Goods Sold, Work in Process, and Finished Goods.

What is the adjusted balance in Cost of Goods Sold after closing out the variances?

$

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Companies must restate costs and inventories at the end of the year to actual cost. So, variance accounts must be closed out and their balances applied to Cost of Goods Sold (if immaterial) or prorated among Cost of Goods Sold, Work in Process, and Finished Goods.

2. What if any ending balance in a variance account that exceeds $9,000 is considered material? (a) Close the immaterial variance accounts to Cost of Goods Sold. (b) Prorate the largest of the labor variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. (c) Prorate the largest of the material variances among Cost of Goods Sold, Work in Process, and Finished Goods on the basis of prime costs in these accounts. The prime cost in Cost of Goods Sold is $1,060,000, the prime cost in Work in Process is $166,000, and the prime cost in Finished Goods is $133,000. If an amount box does not require an entry, leave it blank or enter "0".

Note: Round all interim calculations to three decimal places, and round your final answers to the nearest dollar. Adjust credit entry for rounding to ensure debits equal credits in journal entry.

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See Cornerstone 9.5.

What are the adjusted balances in Work in Process, Finished Goods, and Cost of Goods Sold after closing out all variances?

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See Cornerstone

A company installed a piece of equipment with a 5-year life and no salvage value. The new equipment costs $500,000 and will generate $150,000 in savings each year. Old equipment with a book value of $50,000 and a remaining life of 2 years was sold for $20,000. No changes in working capital are anticipated. The effective income tax rate is 40%. The total initial investment for the new equipment is a. $450,000. b. $468,000. c. $500,000. d. $550,000.

Money reports that the average annual cost of the first year of owning and caring for a large dog in 2017 is $1,448. The Irish Red and White Setter Association of America has requested a study to estimate the annual first-year cost for owners of this breed. A sample of 50 will be used. Based on past studies, the population standard deviation is assumed known with σ = $260.

1,902 2,042 1,936 1,817 1,504 1,572 1,532 1,907 1,882 2,153 1,945 1,335 2,006 1,516 1,839 1,739 1,456 1,958 1,934 2,094 1,739 1,434 1,667 1,679 1,736 1,670 1,770 2,052 1,379 1,939 1,854 1,913 2,163 1,737 1,888 1,737 2,230 2,131 1,813 2,118 1,978 2,166 1,482 1,700 1,679 2,060 1,683 1,850 2,232 2,294

(a) What is the margin of error for a 95% confidence interval of the mean cost in dollars of the first year of owning and caring for this breed? (Round your answer to nearest cent.) $

(b) The DATAfile Setters contains data collected from fifty owners of Irish Setters on the cost of the first year of owning and caring for their dogs. Use this data set to compute the sample mean. Using this sample, what is the 95% confidence interval for the mean cost in dollars of the first year of owning and caring for an Irish Red and White Setter? (Round your answers to nearest cent.)

In a study of monthly salary distribution of residents in Paris conducted in year 2015, it was found that the salaries had an average of €2200 (EURO) and a standard deviation of €550. Assume that the salaries were normally distributed.

In 2017, a study on the salary distribution of Paris residents was conducted. Assume that the salaries were normally distributed. A random sample of 10 salaries was selected and the data are listed below:

Question 1: Assume that the standard deviation of the salaries was still the same as in 2015. Estimate the average salary (in 2017) with 95% confidence.

Question 2: The assumption made in Question 8 was certainly unrealistic. Estimate the average salary (in 2017) with 95% confidence again assuming that the standard deviation had changed from 2015.

Question 3: Estimate the variance of monthly salaries of Paris residents (in 2017) based on the sample provided above at a 95% confidence level.

A similar study was conducted on salary distribution of Paris residents in 2019. The research team aimed to estimate the average salary. They chose the 98% confidence and assumed that the population standard deviation was the same as in 2015. Assume again that those salaries were normally distributed.

Question 4 :If they would like the (margin of) error to be no more than €60, how large a sample would they need to select? (That is, find the minimum sample size.)

Select one:

A: 322

B: 323

C: 456

D: 457

A company is considering an investment in a new product with a 10-year horizon (product will be sold for 10 years). The upfront investment is $7 million and it is assumed to depreciate on a straight-line basis for 10 years, with no residual value. Fixed costs are assumed to be $500,000 per year. The company estimates variable cost per unit (v) to be $75 and expects to sell each unit for $315. There are no taxes and the required rate of return is 22% per year. Assume that the investment would occur today, and all future cash-flows will occur at the end of each year beginning in one year.

For the following questions, give all answers ROUNDED UP to the next highest WHOLE unit (ie 421.2 would be rounded to 422):

What is the accounting breakeven quantity?   

What is cash break even quantity?  

What is the NPV of this project if the required rate is 7%?

Year       CF
0          -$1312
1           $743
2           $1757
3           $2148

The Bureau of Labor Statistics reported that the average yearly income of dentists in the year 2012 was $110,000.  A sample of 81 dentists, which was taken in 2013, showed an average yearly income of $120,000.  Assume the standard deviation of the population of dentists’ incomes in 2013 is $36,000.

In the year in which it intends to go public, a firm has revenues of $20 million and net income after taxes of $2 million. The firm has no debt, and revenue is expected to grow at 20% annually for the next five years and 5% annually thereafter. Net profit margins are expected remain constant throughout. Capital expenditures are expected to grow in line with depreciation and working capital requirements are minimal. The average beta of a publicly traded company in this industry is 1.50 and the average debt/equity ratio is 20%. The firm is managed very conservatively and does not intend to borrow through the foreseeable future. The Treasury bond rate is 6% and the tax rate is 40%. The normal spread between the return on stocks and the risk free rate of return is believed to be 5.5%. Reflecting the slower growth rate in the sixth year and beyond, the firm’s discount rate is expected to decline to the industry average cost of capital of 10.4%. Estimate the value of the firm’s equity.