State-of-the-art digital imaging equipment purchased 2 years ago for $50,000 had an expected useful life of 5 years and a $5000 salvage value. After its poor installation performance, it was upgraded for $20,000 1 year ago. Increased demand now requires another upgrade for an additional $26,000 so that it can be used for three more years. Its new annual operating cost will be $30,000 with a $13,000 salvage after the 3 years. Alternatively, it can be replaced with new equipment costing $64,000, an estimated AOC of $15,000, and an expected salvage of $24,000 after 3 years. If replaced now, the existing equipment can be traded for only $9,000. Use a MARR of 12% per year.

South Shore Construction builds permanent docks and seawalls along the southern shore of long island, new york. Although the firm has been in business for only five years, revenue has increased from $320,000 in the first year of operation to $1,188,000 in the most recent year. The following data show the quarterly sales revenue in thousands of dollars:

1. Use Excel Solver to find the coefficients of a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. Qtr1 = 1 if Quarter 1, 0 otherwise; Qtr2 = 1 if Quarter 2, 0 otherwise; Qtr3 = 1 if Quarter 3, 0 otherwise. Round your answers to two decimal places.
   
   F_t = ____________ + ____________Qtr1 + ___________Qtr2 +__________ Qtr3
   
2. Let Period = 1 to refer to the observation in Quarter 1 of year 1; Period = 2 to refer to the observation in Quarter 2 of year 1; . . . and Period = 20 to refer to the observation in Quarter 4 of year 5. Using the dummy variables defined in part (b) and Period, develop an equation to account for seasonal effects and any linear trend in the time series using Excel Solver. Round your answers to two decimal places. If your answer is negative value enter minus sign.
   
   F_t = ___________ + ___________Qtr1 + _____________Qtr2 + _____________Qtr3 + __________Period
   
   Based upon the seasonal effects in the data and linear trend, compute estimates of quarterly sales for year 6. Round your answers to one decimal place.
   
   Quarter 1 forecast =
   
   Quarter 2 forecast =
   
   Quarter 3 forecast =
   
   Quarter 4 forecast =

Problem 15-28 (Algorithmic)

South Shore Construction builds permanent docks and seawalls along the southern shore of long island, new york. Although the firm has been in business for only five years, revenue has increased from $320,000 in the first year of operation to $1,188,000 in the most recent year. The following data show the quarterly sales revenue in thousands of dollars:

1. Use Excel Solver to find the coefficients of a multiple regression model with dummy variables as follows to develop an equation to account for seasonal effects in the data. Qtr1 = 1 if Quarter 1, 0 otherwise; Qtr2 = 1 if Quarter 2, 0 otherwise; Qtr3 = 1 if Quarter 3, 0 otherwise. Round your answers to two decimal places.
   
   F_t =  + Qtr1 + Qtr2 + Qtr3
   
2. Let Period = 1 to refer to the observation in Quarter 1 of year 1; Period = 2 to refer to the observation in Quarter 2 of year 1; . . . and Period = 20 to refer to the observation in Quarter 4 of year 5. Using the dummy variables defined in part (b) and Period, develop an equation to account for seasonal effects and any linear trend in the time series using Excel Solver. Round your answers to two decimal places. If your answer is negative value enter minus sign.
   
   F_t =  + Qtr1 + Qtr2 + Qtr3 + Period
   
   Based upon the seasonal effects in the data and linear trend, compute estimates of quarterly sales for year 6. Round your answers to one decimal place.
   
   Quarter 1 forecast =  
   
   Quarter 2 forecast =  
   
   Quarter 3 forecast =  
   
   Quarter 4 forecast =

Use R to do each of the following. Use R code instructions that are as general as possible, and also as efficient as possible. Use the Quick-R website for help on finding commands. 1. The following is a random sample of CT scores selected from 32 Miami students. 28, 27, 29, 27, 29, 31, 32, 30, 34, 30, 27, 25, 30, 32, 35, 32 23, 26, 27, 33, 33, 33, 31, 25, 28, 34, 30, 33, 28, 26, 30, 28 (a) Find the mean and standard deviation of this sample. Give the interpretation of the mean in the context. (b) Find the five numbers summary and provide the interpretation of the sample median in the context. (c) Draw the histogram of the data. What can you say about the distribution of the data. (d) Draw the Boxplot of the data. Is there any potential outlier? 2. The weekly amount spent for maintenance and repairs in a certain company has an approximately normal distribution, with a mean of $600 and a standard deviation of $40. If $700 is budgeted to cover repairs for next week, (a) what is the probability that the actual costs will exceed the budgeted amount? (b) how much should be budgeted weekly for maintenance and repairs to ensure that the probability that the budgeted amount will be exceeded in any given week is only 0.1?

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $31 per job, and the actual mobile lab operating expenses for February were $8,460. The company expected to work 120 jobs in February, but actually worked 122 jobs.

Required:

Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $33 per job, and the actual mobile lab operating expenses for February were $9,030. The company expected to work 130 jobs in February, but actually worked 136 jobs.

Required:

Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,900 plus $30 per job, and the actual mobile lab operating expenses for February were $9,240. The company expected to work 150 jobs in February, but actually worked 154 jobs.

Required:

Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Following are transactions of Danica Company. Dec. 13 Accepted a $28,000, 45-day, 8% note in granting Miranda Lee a time extension on her past-due account receivable. 31 Prepared an adjusting entry to record the accrued interest on the Lee note. Exercise 7-13 Notes receivable transactions LO P4 Jan. 27 Received Lee's payment for principal and interest on the note dated December 13. Mar. 3 Accepted a $22,000, 8%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company. 17 Accepted a $20,000, 30-day, 10% note in granting H. Cheng a time extension on his past-due account receivable. Apr. 16 H. Cheng dishonored his note. May 1 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts. June 1 Received the Tomas payment for principal and interest on the note dated March 3.

Complete the table to calculate the interest amounts.

First, complete the table below to calculate the interest amounts.

Tomas Co Note

M Lee Note

plete the table below to calculate the interest amounts.

H Cheng Note

General Ledger

• 1 Received Lee’s payment for principal and interest on the note dated December 13. Assume no reversing entries were prepared.

• 2 Accepted a $22,000, 8%, 90-day note in granting a time extension on the past-due account receivable of Tomas Company.

• 3 Accepted a $20,000, 30-day, 10% note in granting H. Cheng a time extension on his past-due account receivable.

• 4 H. Cheng dishonored his note.

• 5 Wrote off the H. Cheng account against the Allowance for Doubtful Accounts.

In your own words Discuss in detail why bonds may be sold or traded at a discount or a premium. Also explain in your own words what the amortization of a bond discount or a bond premium is and how it works.

Briefly describe each of the following financial institutions: investment banks, commercial banks, financial
services corporations, pension funds, mutual funds, exchange traded funds, hedge funds, and private
equity companies