The Dean of the Business School at State University would like to test the hypothesis that no difference exists between the average final exam grades for the Introduction to Marketing course and the Introduction to Finance course. A random sample of eight students who took both courses was selected and their final exam grades for each course are attached below below. Assume Population 1 is defined as the Marketing exam scores and Population 2 is defined as the Finance exam scores. Using a=0.05, determine the conclusion for this hypothesis test.
Please give me the very clear explanation, thank you :)
|
Student |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
|---|---|---|---|---|---|---|---|---|
|
Marketing |
82 |
86 |
74 |
93 |
90 |
76 |
87 |
100 |
|
Finance |
76 |
91 |
70 |
79 |
96 |
70 |
85 |
81 |
A.
Because the test statistic is less than the critical value, we can conclude that no difference exists between the average final exam grades for the Introduction to Marketing course and the Introduction to Finance course.
B.
Because the test statistic is more than the critical value, we cannot conclude that a difference exists between the average final exam grades for the Introduction to Marketing course and the Introduction to Finance course.
C.
Because the test statistic is less than the critical value, we cannot conclude that a difference exists between the average final exam grades for the Introduction to Marketing course and the Introduction to Finance course.
D.
Because the test statistic is more than the critical value, we can conclude that a difference exists between the average final exam grades for the Introduction to Marketing course and the Introduction to Finance course.
In: Statistics and Probability
BestUvClass, Inc. has the choice between two types of machines. One costs less but has a shorter life expectancy. The first machine costs $9,000, will last for two years, and produce revenues of $7,750 in the first year of operation. Operating costs will be 27 percent of revenues and the machine will be depreciated using the 3-Year MACRS schedule. The machine can be sold at the end of two years for $2,000. The initial change in net working capital will be $465. Subsequently, the change in net working capital will be 6% of the change in revenues for the next year. The cost of the first machine is expected to increase by 10 percent per year for the foreseeable future. For replacement chains, assume that the salvage value of the first machine will increase by 10 percent per year, and and initial net working capital will increase by 6 percent per year.
The second machine will last for four years, cost $12,000, be depreciated using the 3-Year MACRS schedule, and produce revenues of $6,000 in its first year of operation. Operating costs will be 24 percent of revenues. The change in net working capital will be 4% of the change in revenues for the next year. The second machine can be sold for $500 at the end of the project's life.
Annual revenue inflation for both projects is expected to be 6 percent. The firm's cost of capital is 14.50 percent, and its marginal tax rate is 24 percent.
What are the NPVs for both projects without any consideration of replacement?
Construct replacement chains for these two machines.
Which machine should be selected? Why?
Have to calculate using an excel workbook.
In: Finance
|
Revenue Recognition The Company generally recognizes sales, which include shipping fees where applicable, net of estimated returns, at the time the member takes possession of merchandise or receives services. When the Company collects payments from customers prior to the transfer of ownership of merchandise or the performance of services, the amounts received are generally recorded as deferred sales, included in other current liabilities on the consolidated balance sheets, until the sale or service is completed. The Company reserves for estimated sales returns based on historical trends in merchandise returns, net of the estimated net realizable value of merchandise inventories to be returned and any estimated disposition costs. Amounts collected from members, which under common trade practices are referred to as sales taxes, are recorded on a net basis. The Company evaluates whether it is appropriate to record the gross amount of merchandise sales and related costs or the net amount earned as commissions. Generally, when Costco is the primary obligor, is subject to inventory risk, has latitude in establishing prices and selecting suppliers, can influence product or service specifications, or has several but not all of these indicators, revenue and related shipping fees are recorded on a gross basis. If the Company is not the primary obligor and does not possess other indicators of gross reporting as noted above, it records the net amounts as commissions earned, which is reflected in net sales. The Company accounts for membership fee revenue, net of estimated refunds, on a deferred basis, whereby revenue is recognized ratably over the one-year membership period. The Company’s Executive Members qualify for a 2% reward (up to a maximum of $750 per year on qualified purchases), which can be redeemed at Costco warehouses. The Company accounts for this reward as a reduction in sales. The sales reduction and corresponding liability (classified as accrued member rewards on the consolidated balance sheets) are computed after giving effect to the estimated impact of non-redemptions based on historical data. The net reduction in sales was $970, $900, and $790 in 2013, 2012, and 2011, respectively. |
Required:
a. a. Explain in plain English how Costco recognizes revenue from annual memberships.
b. Does Costco recognize revenue in consistence with the revenue recognition principle in GAAP? Explain your answer.
In: Accounting
| Review Problem: Variance Analysis Using a Flexible Budget | |||||||
| Data | Fixed Cost | Revenue & Cost Per Door | Revenue & Cost Per Window | ||||
| Revenue | $864.00 | $562.00 | |||||
| Cost of inventory | $568.00 | $218.75 | |||||
| Wages and salaries | $27,555 | $75.00 | $63.00 | ||||
| Utilities | $2,875 | $2.05 | $1.30 | ||||
| Rent | $6,500 | ||||||
| Insurance | $3,575 | $1.50 | $3.65 | ||||
| Miscellaneous | $1,650 | $45.00 | $37.00 | ||||
| Actual results: | |||||||
| Revenue | $288,499 | ||||||
| Cost of inventory | $152,045 | ||||||
| Wages and salaries | $65,198 | ||||||
| Utilities | $2,077 | ||||||
| Rent | $6,500 | ||||||
| Insurance | $4,500 | ||||||
| Miscellaneous | $17,328 | ||||||
| Doors Sold | Windows Sold | ||||||
| Actual unit activity | 152 | 280 | |||||
| Planning budget unit activity | 150 | 301 | |||||
| Enter a formula into each of the cells marked with a ? below | |||||||
| Must enter an IF Statement for the U/F selection; can be different between revenue and expenses but same IF statement must be used for entire column of expenses. | |||||||
| Construct a flexible budget performance report | |||||||
| Revenue | |||||||
| and | |||||||
| Planning | Activity | Flexible | Spending | Actual | |||
| Budget | Variances | U/F | Budget | Variances | U/F | Results | |
| Doors Sold | ? | ? | ? | ||||
| Windows Sold | ? | ? | ? | ||||
| Revenue | ? | ? | U/F | ? | ? | U/F | ? |
| Expenses: | |||||||
| Cost of inventory | ? | ? | U/F | ? | ? | U/F | ? |
| Wages and salaries | ? | ? | U/F | ? | ? | U/F | ? |
| Utilities | ? | ? | U/F | ? | ? | U/F | ? |
| Rent | ? | ? | U/F | ? | ? | U/F | ? |
| Insurance | ? | ? | U/F | ? | ? | U/F | ? |
| Miscellaneous | ? | ? | U/F | ? | ? | U/F | ? |
| Total expenses | ? | ? | U/F | ? | ? | U/F | ? |
| Net operating income | ? | ? | U/F | ? | ? | U/F | ? |
In: Accounting
Expenses are costs incurred by an organization in the process of earning revenue during a given time period. Expense accounts have a direct impact on the profitability of an organization.
List three expense accounts related to payroll. Describe when you would expect the account to be cleared to zero. Explain the methods you could use to reconcile these accounts.
In: Accounting
Compute and Interpret Z-score
Balance sheets and income statements for Lockheed Martin
Corporation follow. Refer to these financial statements to answer
the requirements.
| Income Statement | |||
|---|---|---|---|
| Year Ended December 31 (In millions) | 2005 | 2004 | 2003 |
| Net sales | |||
| Products | $ 31,518 | $ 30,202 | $ 27,290 |
| Service | 5,695 | 5,324 | 4,534 |
| 37,213 | 35,526 | 31,824 | |
| Cost of sales | |||
| Products | 27,932 | 27,637 | 25,306 |
| Service | 5,073 | 4,765 | 4,099 |
| Unallocated coporate costs | 803 | 914 | 443 |
| 33,808 | 33,316 | 29,848 | |
| 3,405 | 2,210 | 1,976 | |
| Other income (expenses), net | (449) | (121) | 43 |
| Operating profit | 2,956 | 2,089 | 2,019 |
| Interest expense | 370 | 425 | 487 |
| Earnings before taxes | 2,586 | 1,664 | 1,532 |
| Income tax expense | 761 | 368 | 479 |
| Net earnings | $ 1,825 | $ 1,296 | $ 1,053 |
| Balance Sheet | ||
|---|---|---|
| December 31 (In millions) | 2005 | 2004 |
| Assets | ||
| Cash and cash equivalents | $ 2,144 | $ 1,080 |
| Short-term investments | 429 | 396 |
| Receivables | 4,579 | 4,094 |
| Inventories | 1,921 | 1,864 |
| Deferred income taxes | 861 | 982 |
| Other current assets | 495 | 557 |
| Total current assets | 10,409 | 8,973 |
| Property, plant and equipment, net | 3,924 | 3,599 |
| Investments in equity securities | 196 | 812 |
| Goodwill | 8,447 | 7,892 |
| Purchased intangibles, net | 560 | 672 |
| Prepaid pension asset | 1,360 | 1,030 |
| Other assets | 2,728 | 2,596 |
| Total assets | $ 27,624 | $ 25,574 |
| Liabilities and stockholders' equity | ||
| Accounts payable | $ 1,998 | $ 1,726 |
| Customer advances and amounts in excess of costs incurred | 4,331 | 4,028 |
| Salaries, benefits and payroll taxes | 1,475 | 1,346 |
| Current maturities of long-term debt | 202 | 15 |
| Other current liabilities | 1,422 | 1,451 |
| Total current liabilities | 9,428 | 8,566 |
| Long-term debt | 4,944 | 5,184 |
| Accrued pension liabilities | 1,617 | 1,760 |
| Other postretirement benefit liabilities | 1,277 | 1,236 |
| Other liabilities | 2,491 | 1,807 |
| Stockholders' equity | ||
| Common stock, $1 par value per share | 432 | 438 |
| Additional paid-in capital | 1,724 | 2,223 |
| Retained earnings | 7,278 | 5,915 |
| Accumulated other comprehensive loss | (1,553) | (1,532) |
| Other | (14) | (23) |
| Total stockholders' equity | 7,867 | 7,021 |
| Total liabilities and stockholders' equity | $ 27,624 | $ 25,574 |
| Consolidated Statement of Cash Flows | |||
|---|---|---|---|
| Year Ended December 31 (In millions) | 2005 | 2004 | 2003 |
| Operating Activities | |||
| Net earnings | $ 1,825 | $ 1,266 | $ 1,053 |
| Adjustments to reconcile net earnings to net cash provided by operating activities | |||
| Depreciation and amortization | 555 | 511 | 480 |
| Amortization of purchased intangibles | 150 | 145 | 129 |
| Deferred federal income taxes | 24 | (58) | 467 |
| Changes in operating assets and liabilities: | |||
| Receivables | (390) | (87) | (258) |
| Inventories | (39) | 519 | (94) |
| Accounts payable | 239 | 288 | 330 |
| Customer advances and amounts in excess of costs incurred | 296 | (228) | (285) |
| Other | 534 | 568 | (13) |
| Net cash provided by operating activities | 3,194 | 2,924 | 1,809 |
| Investing Activities | |||
| Expenditures for property, plant and equipment | (865) | (769) | (687) |
| Acquisition of business/investments in affiliated companies | (784) | (91) | (821) |
| Proceeds from divestiture of businesses/Investments in affiliated companies | 935 | 279 | 234 |
| Purchase of short-term investments, net | (33) | (156) | (240) |
| Other | 28 | 29 | 53 |
| Net cash used for investing activities | (719) | (708) | (1,461) |
| Financing Activities | |||
| repayment of long-term debt | (53) | (1,069) | (2,202) |
| Issuances of long-term debt | -- | -- | 1,000 |
| Long-term debt repayment and issuance costs | (12) | (163) | (175) |
| Issuances of common stock | 406 | 164 | 44 |
| Repurchases of common stock | (1,310) | (673) | (482) |
| Common stock dividends | (462) | (405) | (261) |
| Net cash used for financing activities | (1,431) | (2,146) | (2,076) |
| Net increase (decrease) in cash and cash equivalents | 1,044 | 70 | (1,728) |
| Cash and cash equivalents at beginning of year | 1,080 | 1,010 | 2,738 |
| Cash and cash equivalents at end of year | $ 2,124 | $ 1,080 | $ 1,010 |
As of December 31, there were the approximate shares
outstanding:
2005 - 434,264,432
2004 - 440,445,630
As of December 31, the company's stock closed at the following
values:
2005 - $63.63
2004 - $55.55
(a) Compute and compare the Altman Z-scores for both years. (Do not
round until your final answer; then round your answers to two
decimal places.)
2005 z-score = Answer
2004 z-score = Answer
In: Accounting
In: Statistics and Probability
The density of aluminum metal is 2.70 g/mL, the atomic mass 26.98 g/mol, the radius of an aluminum atom is 143 picometer and the packing density is 74% theory. Compute Avogardo's number from these data and briefly outline your reasoning/strategy.
In: Chemistry
Enter two valid BCD numbers. Show the result in seven segment display and LED
How to do this using the components dip switch, Two BCD adders 74ls83, And gates, OR gates, 74 ls47 decoder, 7 segment display and LED
In: Electrical Engineering
The yearly salary (in thousands of dollars) for a small company are listed below. Find the mode, mean, median and population standard deviation and use the Empirical Rule to find a 95% confidence interval. 74 67 39 75 98 67 460 96
In: Statistics and Probability