A clinical trial was conducted to test the effectiveness of a drug for treating insomnia in older subjects. Before​ treatment, 21 subjects had a mean wake time of 104.0 min. After​ treatment, the 21 subjects had a mean wake time of 99.9 min and a standard deviation of 24.5 min. Assume that the 21 sample values appear to be from a normally distributed population and construct a 90​% confidence interval estimate of the mean wake time for a population with drug treatments. What does the result suggest about the mean wake time of 104.0 min before the​ treatment? Does the drug appear to be​ effective?

1. stintits Co. has an incentive compensation plan through which a division manager receives a bonus equal to 10% of the division’s net income. Division income in 2019 before the bonus and income tax was $150,000. The tax rate is 21%.

Required:

1. Express the bonus formula as one or more algebraic equation(s).
2. Using these formulas, calculate the amount of the bonus.
3. Prepare the adjusting entry to record the bonus compensation.
4. Bonus arrangements take many forms. Suppose the bonus specifies that the bonus is 10% of the division’s income before tax, but after the bonus itself. Calculate the amount of the bonus.

A clinical trial was conducted to test the effectiveness of a drug for treating insomnia in older subjects. Before​ treatment, 2121 subjects had a mean wake time of 101.0101.0 min. After​ treatment, the 2121 subjects had a mean wake time of 77.977.9 min and a standard deviation of 22.322.3 min. Assume that the 2121 sample values appear to be from a normally distributed population and construct a 95​% confidence interval estimate of the mean wake time for a population with drug treatments. What does the result suggest about the mean wake time of 101.0 min before the​ treatment? Does the drug appear to be​ effective?

Your firm is operating in a world where the only imperfection is that corporations must pay tax. The company is currently all equity financed. Your company has 2,900,000 shares outstanding. Your firm expects to generate earnings before interest and taxes of $3,450,000 per year in perpetuity. The company is planning on borrowing $9,000,000 and using the proceeds of the loan to repurchase some of its outstanding shares. The unlevered cost of equity is 11.20%. The company's cost of debt before taxes is 5.60%. The tax rate is 35.00%.

What will be the required rate of return on the equity after the recapitalization (borrow the money and repurchase shares) is completed?

Ng Corporation produces and sells only one product; its selling price is $100 and its variable cost is $60 per unit. The company’s monthly fixed expense is $35,000.

Required:

1. Using the equation method, determine the unit sales that are required to earn a target profit before tax of $4,000.

2. Using the formula method, determine for the dollar sales that are required to earn a target profit before tax of $5,000.

3. Using the formula method, calculate the number of units that need to be sold to earn an after-tax income of $6,000, assuming a tax rate of 25%.

At the end of the year, before distributions, Bombay (an S corporation) has an accumulated adjustments account balance of $15,600 and accumulated E&P of $20,750 from a previous year as a C corporation. During the year, Nicolette (a 40 percent shareholder) received a $20,750 distribution (the remaining shareholders received $31,125 in distributions). (Assume her stock basis is $41,500 after considering her share of Bombay’s income for the year but before considering the effects of the distribution.) Required: What is the amount and character of gain Nicolette must recognize from the distribution? What is her basis in her Bombay stock at the end of the year?

During the power stroke in a four-stroke automobile engine, the pis-ton is forced down as the mixture of combustion products and air undergoes an adiabatic expansion. Assume (1) the engine is running at 2500 cycles/min; (2) the pressure immediately before the expansion is 20.0 atm; (3) the volumes of the mixture immediately before and after the expansion are 50.0 cm3and 400 cm3, respectively ; (4) the time interval for expansion is one-fourth that of the total cycle; and (5) the mixture behaves like an ideal gas with specific heat ratio 1.40. Find the average power generated during the power stroke.

Question 1: A student at a university wants to determine if the proportion of students that use iPhones is less than 0.34. If the student conducts a hypothesis test, what will the null and alternative hypotheses be?

Question 2: A medical researcher wants to examine the relationship of the blood pressure of patients before and after a procedure. She takes a sample of people and measures their blood pressure before undergoing the procedure. Afterwards, she takes the same sample of people and measures their blood pressure again. The researcher wants to test if the blood pressure measurements after the procedure are different from the blood pressure measurements before the procedure. The hypotheses are as follows: Null Hypothesis: ?_D = 0, Alternative Hypothesis: ?_D ? 0. From her data, the researcher calculates a p-value of 0.678. What is the appropriate conclusion? The difference was calculated as (after - before).

Question 3: Your friend tells you that the proportion of active Major League Baseball players who have a batting average greater than .300 is greater than 0.52, a claim you would like to test. The hypotheses for this test are Null Hypothesis: p ? 0.52, Alternative Hypothesis: p > 0.52. If you randomly sample 27 players and determine that 16 of them have a batting average higher than .300, what is the test statistic and p-value?

In January 2019, Miller Construction Corp. contracted to construct a building for $3,600,000. Construction started in early 2019 and was completed in 2020. The following additional information is available:

Miller uses the percentage-of-completion method.

Under the contract-based approach for percentage completion,

a) How much revenue should Miller report for 2019 and 2020?

b) Prepare all journal entries for 2019 and 2020 for this contract.

c) What amounts would be presented on Miller’s December 31, 2019 Balance Sheet?

d) What is the gross profit on the project for each of 2019 and 2020?

In 2020 and 2019, your cash was 4,563 and 3,597, your accounts receivables were 7,531 and 6,423, and your inventory was 10,235 and 11,563. Similiarly, in 2020 and 2019 your accounts payable was 8,423 and 5,789, and your other current liabilities were 7,413 and 10,356. Lastly from the balance sheet, in 2020 and 2019 your net fixed assets were 74,562 and 71,246. In 2020 your net sales were 111,425, your costs of good sold was 38,999, rent was 48,543, and depreciation was 2,015. You paid interest of 1,728 and your tax rate was 20.36%. What is cash flow from assets (i.e. free cash flow) in 2020?

• -4,786

• 10,452

• 11,453

• 13,396

• -8,476

• 5,478