Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2018, for $495,000 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal and accounting identity. Although many of Spider’s book values approximate fair values, several of its accounts have fair values that differ from book values. In addition, Spider has internally developed assets that remain unrecorded on its books. In deriving the acquisition price, Pratt assessed Spider’s fair and book value differences as follows:

At December 31, 2018, the following financial information is available for consolidation:

Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018.

Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2018, for $499,450 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal and accounting identity. Although many of Spider’s book values approximate fair values, several of its accounts have fair values that differ from book values. In addition, Spider has internally developed assets that remain unrecorded on its books. In deriving the acquisition price, Pratt assessed Spider’s fair and book value differences as follows:

At December 31, 2018, the following financial information is available for consolidation:

Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018.

Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2018, for $478,050 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal and accounting identity. Although many of Spider’s book values approximate fair values, several of its accounts have fair values that differ from book values. In addition, Spider has internally developed assets that remain unrecorded on its books. In deriving the acquisition price, Pratt assessed Spider’s fair and book value differences as follows: Book Values Fair Values Computer software $ 49,500 $ 88,500 Equipment 55,500 36,400 Client contracts 0 105,000 In-process research and development 0 29,750 Notes payable (104,000 ) (112,850 ) At December 31, 2018, the following financial information is available for consolidation: Pratt Spider Cash $ 15,500 $ 19,200 Receivables 117,000 57,900 Inventory 165,000 103,900 Investment in Spider 478,050 0 Computer software 250,000 49,500 Buildings (net) 600,500 172,500 Equipment (net) 319,000 55,500 Client contracts 0 0 Goodwill 0 0 Total assets $ 1,945,050 $ 458,500 Accounts payable $ (96,300 ) $ (65,500 ) Notes payable (530,750 ) (104,000 ) Common stock (380,000 ) (100,000 ) Additional paid-in capital (170,000 ) (25,000 ) Retained earnings (768,000 ) (164,000 ) Total liabilities and equities $ (1,945,050 ) $ (458,500 ) Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018.

Pratt Company acquired all of Spider, Inc.’s outstanding shares on December 31, 2018, for $515,300 cash. Pratt will operate Spider as a wholly owned subsidiary with a separate legal and accounting identity. Although many of Spider’s book values approximate fair values, several of its accounts have fair values that differ from book values. In addition, Spider has internally developed assets that remain unrecorded on its books. In deriving the acquisition price, Pratt assessed Spider’s fair and book value differences as follows:

At December 31, 2018, the following financial information is available for consolidation:

Prepare a consolidated balance sheet for Pratt and Spider as of December 31, 2018.

Which of the following best expresses the accounting standard regarding accounting for purchases and inventories in the General Fund?

Select one:

a. Purchases may be recorded as expenditures either when acquired or consumed; if accounted for as expenditures when acquired, year-end inventories are ignored.

b. They must be accounted for in a manner similar to that of commercial enterprises.

c. All purchases must be accounted for as expenditures upon acquisition.

d. Purchases may be recorded as expenditures either when acquired or consumed; if accounted for as expenditures when acquired, year-end inventories must be reported if the amount is significant.

Which of the following transactions creates an expenditure on the General Fund statement of revenues, expenditures, and changes in fund balance?

Select one:

a. A purchase of water from the Water Enterprise Fund

b. A transfer of resources to the Debt Service Fund so the Debt Service Fund can pay debt service on general obligation debt

c. A transfer of resources to the Capital Projects Fund to help pay for a major capital project

d. A loan to the Sewage Enterprise Fund

At the end of fiscal year 2019, Carson City had outstanding encumbrances of $15,000. Although the city follows a policy of allowing outstanding encumbrances to lapse, it plans to honor the related purchase orders in fiscal year 2020. How should the city report the existence of the outstanding encumbrances in the financial statements if the encumbrances do not relate to a resource classified as restricted or committed?

Select one:

a. It should be reported as Reserved for Encumbrances.

b. It should be reported as Nonspendable fund balance.

c. It should be reported as Unassigned fund balance.

d. It should be reported as Assigned fund balance.

A state provides pension benefits to retired employees who have worked at least five years for the state. Based on employee salaries during 2019, the state actuary calculated that the employees earned pension benefits totaling $14 million. The state appropriated $10 million to the General Fund for payment to its Pension Trust Fund. However, the state encountered financial problems during 2019. It sent its pension system a check for $8 million in October 2019, saying that it would pay no more for the year. The Pension Trust Fund actually paid pension benefits of $3 million during 2019. How much should the General Fund recognize as pension expenditures for 2019?

Select one:

a. $14 million

b. $8 million

c. $10 million

d. $3 million

Which of the following transactions or events best describes when a grant recipient may recognize revenues from intergovernmental grants in governmental-type funds?

Select one:

a. The recipient spends all the resources made available in the grant.

b. The recipient receives cash from the grant provider.

c. The recipient complies with all grant eligibility requirements, and the resources are “available.”

d. The recipient enters into a contract with the grant provider.

1. Retirement Savings After completing your MBA, you are committed to saving for retirement. To do so, you plan to maximize your contributions to your tax-deferred (401k) retirement account. You plan to invest your savings in low-cost equity mutual funds. In your opinion, this will give you an 8% effective annual rate of return. You plan to work 30 years, then retire. A. What is the APR with monthly compounding that will yield an effective annual rate of 8%?

B. If you contribute $1,000 to your retirement account each month, what will the value of your retirement account be 30 years from today? Assume your first deposit is made in one month and your last deposit is made on your retirement day—30 years from today. For this problem, assume a monthly interest rate of 65 bps (0.65%).

C. Assume you wait to save for retirement. Instead of starting in your first year of employment, you start 10 years later and save for 20 years (i.e., your first monthly deposit is 10 years and one month from today). What is the value of your retirement savings 30 years from today? For this problem, assume a monthly interest rate of 65 bps (0.65%).

D. Assume your retirement account is worth $1,000,000 on the date of your retirement. While you will continue to earn 65 bps per month on your investments, you plan to make monthly withdrawals while in retirement. Assuming you would like to make monthly withdrawals for the next 40 years (whereupon you promptly drop dead or become a ward of the state), how much can you withdraw from your retirement account each month?

With the growing popularity of casual surf print clothing, two recent MBA graduates decided to broaden this casual surf concept to encompass a “surf lifestyle for the home.” With limited capital, they decided to focus on surf print table and floor lamps to accent people’s homes. They projected unit sales of these lamps to be 8,100 in the first year, with growth of 5 percent each year for the next five years. Production of these lamps will require $46,000 in net working capital to start. The net working capital will be recovered at the end of the project. Total fixed costs are $106,000 per year, variable production costs are $12 per unit, and the units are priced at $40 each. The equipment needed to begin production will cost $186,000. The equipment will be depreciated using the straight-line method over a five-year life and is not expected to have a salvage value. The effective tax rate is 21 percent and the required rate of return is 20 percent. What is the NPV of this project? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

You have heard from idle chatter that most students don't declare a major in their MBA programs. You took a sample of 200 students (in the data file). Conduct a one-sample hypothesis test to determine if the proportion without a major is greater than 50%. Use a .05 significance level.

The following data set shows the entrance exam score​ (Verbal GMAT) for each of eight MBA students along with his or her grade point average​ (GPA) upon graduation.

Gmat- 310, 290, 270, 290, 360, 280, 300, 290

Gpa- 3.7, 3.1, 3.1, 3.2, 3.9, 2.9, 3.6, 3.1

A linear regression on the data gives the equation below.

Predicted GPA=−0.022695+0.011206(GMAT)

Complete the parts below.

a. Calculate the SST.

a) Calculate the SST. ​(Round to three decimal places as​ needed.)

b) Calculate the SSR. ​(Round to three decimal places as​ needed.)

c) Calculate the SSE. ​(Round to three decimal places as​ needed.)

d) Calculate the sample coefficient of determination or R². (Round to three decimal places as​ needed.)

e) Determine the null and alternative hypotheses.

f) Calculate the​ F-score for this test. ​(Round to two decimal places as​ needed.)

g) Determine the​ p-value. ​(Round to three decimal places as​ needed.)

h) Reject/do not reject

With the growing popularity of casual surf print clothing, two recent MBA graduates decided to broaden this casual surf concept to encompass a “surf lifestyle for the home.” With limited capital, they decided to focus on surf print table and floor lamps to accent people’s homes. They projected unit sales of these lamps to be 7,000 in the first year, with growth of 8 percent each year for the next five years. Production of these lamps will require GH¢35,000 in net working capital to start. Total fixed costs are GH¢ 95,000 per year, variable production costs are GH¢ 20 per unit, and the units are priced at GH¢48 each. The equipment needed to begin production will cost GH¢175,000. The equipment will be depreciated using the straight-line method over a five-year life and is not expected to have a salvage value. The effective tax rate is 34 percent, and the required rate of return is 25 percent. Evaluate the project using NPV.