CompUSA Inc. sells computer hardware. It also markets related software and software-support services. The company prepares annual forecasts for sales, of which the first six months of 2019 are given below.

In a typical month, total sales are broken down as follows: cash sales, 30%; VISA® credit card sales, 65%; and 5% open account (the company’s own charge accounts). For budgeting purposes, assume that cash sales plus bank credit card sales are received in the month of sale; bank credit card sales are subject to a 3% processing fee, which is deducted daily at the time of deposit into CompUSA’s cash account with the bank. Cash receipts from collection of accounts receivable typically occur as follows: 20% in the month of sale, 50% in the month following the month of sale, and 27% in the second month following the month of sale. The remaining receivables generally turn out to be uncollectible.

CompUSA’s month-end inventory requirements for computer hardware units are 30% of the following month’s estimated sales. A one-month lead time is required for delivery from the hardware distributor. Thus, orders for computer hardware units are generally placed by CompUSA on the 25th of each month to ensure availability in the store on the first day of the month needed. These units are purchased on credit, under the following terms: n/45, measured from the time the units are delivered to CompUSA. Assume that CompUSA takes the maximum amount of time to pay its invoices. On average, the purchase price for hardware units runs 60% of selling price.

Required:

1. Calculate estimated cash receipts for April 2019.

2. The company is looking at the number of hardware units to order on January 25.

a. Determine the estimated number of units to be ordered.

b. Calculate the dollar cost (per unit and total) for these units.

3. Cash planning in this line of business is critical to success. Management feels that the assumption of selling price per unit ($3,000) is firm—at least for the foreseeable future. Also, it is comfortable with the 30% rate for end-of-month inventories. It is not so sure, however, about (a) the Cost of Goods Sold (CGS) rate (because of the state of flux in the supplier market) and (b) the level of predicted sales in March 2019. Discussions with marketing and purchasing suggest that three outcomes are possible for each of these two variables, as follows:

The preceding outcomes are assumed to be independent, which means that there are nine possible combinations (3 × 3). You are asked to conduct a sensitivity analysis to determine the range of possible cash outflows for April 10, under different combinations of the above. Assume, for simplicity, that sales volume for April is fixed. Complete the following table:

For a comparison of two study guides for a mathematics course, 14 student volunteers were found. They were randomly assigned, 7 to study guide A, and 7 to study guide B. Following a two-day period of independent study, the students were examined on the material. The students received the following scores (out of 100):

Study Guide A: 95 96 97 80 92 97 95
Study Guide B: 72 73 80 69 78 74 73

Use a permutation test to test the null hypothesis that the distributions of scores are the same for each study guide, against the two-sided alternative that the distributions are different.

1. How many possible ways are there to randomly allocate the 14 students into two groups of 7 students?  [2 pt(s)]

2. Compute the difference in sample means, A(bar) - B(bar) as the test statistic.  [1 pt(s)]

3. How many arrangements of the data would lead to an absolute value of the computed test statistic as great or greater than the absolute value of the test statistic you calculated in the previous question? Note that you don't have to list all possible arrangements in order to answer this. Examine the data carefully and use the trick that was shown in class (also on pages 8-9 of the typed notes) for the permutation problem.  [5 pt(s)]

4. Suppose that after examining all the possible arrangements, it is found that the absolute value of the difference in means for 16 of the arrangements (including the real one that you observed) are greater than or equal to the absolute value of the computed test statistic. What is the two-sided p-value for the permutation test? Use at least 5 digits to the right of the decimal.  [2 pt(s)]

Question 4 [40 Marks] You have seven mornings per week. On each morning, you can either study, go to the rock climbing wall, or sculpt (i.e., make sculptures). If you rock climb, you must be a member of the club. The membership fee is 100 Bobos each week. And, as member, you pay 10 Bobos for each morning of climbing. If you sculpt, you must rent a studio which costs 100 Bobos per month. Each morning you sculp, you use 10 Bobos worth of material.

[15 Marks] Your economics professor has asked you to produce a table showing your marginal cost for each of 7 mornings you might sculpt during a normal week. Your uncle, who has never taken economics, has asked you to explain the table and why the values you wrote down make sense. Provide your answers in sections labelled The Table and The Explanation

[10 Marks] Assume that in October, you rationally climbed two times per week and sculpted three times per week. In November, you know that the daily climbing price will be 5 bobo per morning. Explain, using the costs and benefits of sculping, how you will decide whether to rent a studio in November. Provide your answer in a section labelled November

[9 Marks] Assume that in March you rationally climbed two times per week and sculpted three times per week. A climber from out of town is willing to pay you 50 Bobos per week for your April membership. If you sell, you cannot climb. If this is the only change the professor is aware of, what does your economics professor predict about how often you sculp in April? Explain. Provide your answer in a section labelled April

[6 Marks] Assume that the following March, you rationally climbed two times per week and sculpted three times per week. In April the membership fee for the climbing club will increase 150 bobos per week. If this is the only change the professor is aware of, what does your economics professor predict about how often you sculp in April? Explain. Provide your answer in a section labelled April, redux

Please conduct an independent-sample t-test, α = .05.  

Two persons are arguing about the size of different breeds of dogs. One believes that German Shepherds are larger than Huskies, while the other person believes the opposite is true. So they conducted a study to see which one of them is correct by randomly sampling and weighting 10 dogs of each breed they saw on a Sunday afternoon in their community. This is an independent-sample case. The data are as follows:

German Shepherds: 55, 72, 61, 43, 59, 70, 67, 49, 55, 63

Huskies: 48, 77, 46, 51, 60, 44, 53, 61, 52, 41

Lara, a 40-year old financial analyst and mother of two teenage children considers herself as a savvy investor. She has increased her investment portfolio considerably over the past five years. Although she has been fairly conservative with her investments, she now feels mor confident in her investment knowledge and would like to branch out into some new areas that could bring higher returns. She has between RM50,000 to RM100,000 to invest. She was considering an investment in 5000 shares of high-technology common stock in ACE market, currently is selling at RM6.55/share. After a discussion with her friend who is an economist with a major commercial bank, Lara believes that the long-running bull market due to cool off and thar economic activity will slow down. She analyses this stock has 10 million shares outstanding and the last year’s earnings per share was RM1.53. The firm’s stockholder equity is RM12 million and the total amount of dividend declared is RM750,000. The company sales of RM12 million and net profit margin of 6% with retention rate (dividend payout ratio) of 40%. Current net profit after taxes shows an increment of 20% from the last year. The growth rate of the dividend of the stock is 7% and the required rate of return is 15%. Required:

a. Compute the price earnings ratio. From the answer, what the indication of the firm?

b. How much the net income after tax of this stock in last year?

c. What is the ROE of the stock? Is the ROE gives you a good indication of this stock?

d. Compute the intrinsic value of the stock today.

e. What is your opinion of this stock and will you proceed to invest in this stock?

Stocks A and B have the following​ returns:

a. What are the expected returns of the two​ stocks?

b. What are the standard deviations of the returns of the two​ stocks?

c. If their correlation is 0.48​, what is the expected return and standard deviation of a portfolio of 56​% stock A and 44​% stock​ B?

An amusement park studied methods for decreasing the waiting time (minutes) for rides by loading and unloading riders more efficiently. Two alternative loading/unloading methods have been proposed. To account for potential differences due to the type of ride and the possible interaction between the method of loading and unloading and the type of ride, a factorial experiment was designed. Use the following data to test for any significant effect due to the loading and unloading method, the type of ride, and interaction. Use . Factor A is method of loading and unloading; Factor B is the type of ride.

Set up the ANOVA table (to whole number, but -value to 2 decimals and  value to 1 decimal, if necessary).

An amusement park studied methods for decreasing the waiting time (minutes) for rides by loading and unloading riders more efficiently. Two alternative loading/unloading methods have been proposed. To account for potential differences due to the type of ride and the possible interaction between the method of loading and unloading and the type of ride, a factorial experiment was designed. Use the following data to test for any significant effect due to the loading and unloading method, the type of ride, and interaction. Use . Factor A is method of loading and unloading; Factor B is the type of ride.

Set up the ANOVA table (to whole number, but -value to 2 decimals and  value to 1 decimal, if necessary).

Calculate a 90% confidence interval estimate for time (minutes) it takes to fill out form 4 by all people. Interpret your result. g) Assuming 102 minutes for population mean time for filling all forms and a standard deviation of 8 minutes. Design, conducts and conclude a hypothesis test that shows the mean time of filling form 1 differs from population mean. Interpret your result using both p-value and critical value approach. Alpha=0.05 h) Suppose, IRS is interested in the difference between the population mean of form 4 and 2. Develop a 90% confidence interval of the difference between the two population means. Can we conclude, using 0.05 level of significance that the population mean time of form 4 is greater than population mean time of form 2? Calculate and interpret your results. (hint: you can use the template in chapter 10 to calculate degrees of freedom and the standard error) i) Assuming individuals are not homogenous, can IRS assume that there are differences between the four types of forms at 1% significance level? Conduct the test hypothesis, interpret your result and make a conclusion out of your analysis.

1] On 1 January 2018 Panorama Ltd acquired equipment for $22 000, net of GST. The estimated residual value for the equipment is zero. Depreciation is calculated at 10% p.a) on the diminishing-balance basis. The depreciation expense for the year ended 31 December 2020 is:

2] The correct entry to record the purchase of a motor vehicle for $40 000 cash, plus 10% GST is which of the following?

3] After writing off bad debts of $1800 the allowance for doubtful debts account balance was $600 credit. What is the correct general journal entry to record an adjustment to bring the allowance for doubtful debts to 10% of accounts receivable of $22 000?