According to a Gallup poll about gun ownership, in the year 2016, 270 out of 600 (45%) U.S. households answered “yes” to the question: “Do you have a gun in your home?”.
a. List the requirements for constructing a confidence interval for a proportion and show how the requirements are met for this problem.
b. Construct a 95% confidence interval for the proportion of households who own a gun in the year 2016.
c. Interpret your confidence interval in part “c”. (I am ____% confident that………).
d. Sample Size: A politician wants to know if the proportion of U.S. households who own a gun is on the rise. What size sample should be obtained if the politician wants an estimate within 3 percentage points of the true proportion with 95% confidence if he uses the 2016 estimate of 37.7% (use formula pg. 401)?
In: Statistics and Probability
Required information
The following selected account balances are provided for Delray
Mfg.
| Sales | $ | 1,024,000 |
| Raw materials inventory, Dec. 31, 2016 | 36,000 | |
| Work in process inventory, Dec. 31, 2016 | 51,300 | |
| Finished goods inventory, Dec. 31, 2016 | 66,000 | |
| Raw materials purchases | 171,700 | |
| Direct labor | 226,000 | |
| Factory computer supplies used | 19,300 | |
| Indirect labor | 56,000 | |
| Repairs—Factory equipment | 5,250 | |
| Rent cost of factory building | 57,000 | |
| Advertising expense | 98,000 | |
| General and administrative expenses | 131,000 | |
| Raw materials inventory, Dec. 31, 2017 | 41,100 | |
| Work in process inventory, Dec. 31, 2017 | 43,300 | |
| Finished goods inventory, Dec. 31, 2017 | 67,900 | |
Prepare an income statement for Delray Mfg. (a
manufacturer).
In: Accounting
Assume that on December 31, 2016, Kimberly-Clark Corp. signs a 10-year, non-cancelable lease agreement to lease a storage building from Sheffield Storage Company. The following information pertains to this lease agreement: 1. The agreement requires equal rental payments of $66,199 beginning on December 31, 2016. 2. The fair value of the building on December 31, 2016 is $484,368. 3. The building has an estimated economic life of 12 years, a guaranteed residual value of $10,000, and an expected residual value of $7,900. Kimberly-Clark depreciates similar buildings on the straight-line method. 4. The lease is nonrenewable. At the termination of the lease, the building reverts to the lessor. 5. Kimberly-Clark’s incremental borrowing rate is 8% per year. The lessor’s implicit rate is not known by Kimberly-Clark.
In: Accounting
E11-14 Naylor Company had $210,000 of net income in 2016 when the selling price per unit was $150, the variable costs per unit were $90, and the fixed costs were $570,000.Management expects per unit data and total fixed costs to remain the same in 2017. The president of Naylor Company is under pressure from stockholders to increase net income by $52,000 in 2017.
Instructions(a) Compute the number of units sold in 2016.
(b) Compute the number of units that would have to be sold in 2017 to reach the stock-holders’ desired profit level
(c) Assume that Naylor Company sells the same number of units in 2017 as it did in 2016. What would the selling price have to be in order to reach the stockholders’ desired profit level?
In: Accounting
Tom can choose when he is to receive $100,000 of fully taxable bonus. If he receives the bonus at the end of 2016, his bonus will be $100,000. If he postpones receipt of the bonus until the end of 2017, the amount will be $110,000. If Tom receives the bonus at the end of 2016, he can invest the proceeds with a pre-tax return of 10% over the next year.
If the marginal tax rate of Tom is 31% in 2016 and 2017, when should he elect to receive the bonus?
At what pre-tax rate of return will Tom be indifferent to receiving the bonus in the alternative years?
If the marginal tax rate of Tom increases to 35% in 2017, when should he elect to receive the bonus?
What would the tax rate need to be in 2017 to make Tom indifferent to the two options?
In: Accounting
The following selected account balances are provided for Delray
Mfg.
| Sales | $ | 1,317,000 |
| Raw materials inventory, Dec. 31, 2016 | 42,000 | |
| Work in process inventory, Dec. 31, 2016 | 57,600 | |
| Finished goods inventory, Dec. 31, 2016 | 61,800 | |
| Raw materials purchases | 187,900 | |
| Direct labor | 229,000 | |
| Factory computer supplies used | 24,500 | |
| Indirect labor | 46,000 | |
| Repairs—Factory equipment | 5,250 | |
| Rent cost of factory building | 51,000 | |
| Advertising expense | 99,000 | |
| General and administrative expenses | 131,000 | |
| Raw materials inventory, Dec. 31, 2017 | 46,400 | |
| Work in process inventory, Dec. 31, 2017 | 45,300 | |
| Finished goods inventory, Dec. 31, 2017 | 69,400 | |
Prepare an income statement for Delray Mfg. (a manufacturer).
In: Accounting
On January 1, 2016, Parkway adopted a defined benefit pension plan, with retroactive benefits. Prior service cost of $2,180,000, amortized straight-lined over 16 years.
Service Cost 340,000 348,000
Projected benefit obligation (1/1) 2,180,000 2,738,000
Plan assets (1/1) 0 670,000
Discount rate 10% 10%
Expected/actual long-term rate of return 0% 9%
Contributions 670,000 700,000
Projected benefit obligation (end of 2017)
3,359,800
Fair value of plan assets 1,430,300
1. Compute the amount of Parkway’s pension expense for 2016 and
2017.
2. Prepare all the journal entries related to Parkway’s pension
plan for 2016 and 2017.
3. What is the total accrued/prepaid pension cost at the end of
2017? Is it an asset or a liability?
In: Accounting
During August, Hill Sales Company had these summary transactions:
| 1. | Cash sales of $230,000, subject to sales taxes of 6%. |
| 2. | Sales on account of $260,000, subject to sales taxes of 6%. |
| 3. | Paid the sales taxes to the state |
| Prepare journal entries to record the preceding transactions. |
q2
On August 1, 2016, Pereira Corporation has sold, on account, 1,800 Wiglows to Mendez Company at $480 each. Mendez also purchased a 1-year service-type warranty on all the Wiglows for $10 per unit. In 2016, Pereira incurred warranty costs of $9,000. Costs for 2017 were $6,000.
Required:
| 1. | Prepare the journal entries for the preceding transactions. |
| 2. | Show how Pereira would report the items on the December 31, 2016, balance sheet. |
In: Accounting
Consider the case of Falcon Freight Inc. (FF):
Five years of realized returns for FF are given in the following table. Remember:
| 1. | While FF was started 40 years ago, its common stock has been publicly traded for the past 25 years. |
| 2. | The returns on its equity are calculated as arithmetic returns. |
| 3. | The historical returns for FF for 2012 to 2016 are: |
|
2012 |
2013 |
2014 |
2015 |
2016 |
|
|---|---|---|---|---|---|
| Stock return | 21.25% | 14.45% | 25.50% | 35.70% | 11.05% |
Given the preceding data, the average realized return on FF’s stock is ._________-
The preceding data series represents ________ of FF’s historical returns. Based on this conclusion, the standard deviation of FF’s historical returns is ._____________
If investors expect the average realized return from 2012 to 2016 on FF’s stock to continue into the future, its coefficient of variation (CV) will be __________________
In: Finance
4. A 2017 study showing that the proportion of people with health insurance is higher among people with higher income
a. is an example of positive economics.
b. is an example of normative economics.
c. is an example of qualitative economics.
d. is an example of Australian economics.
5. A study arguing that the United States should adopt a single-payer health system
a. is an example of positive economics.
b. is an example of normative economics.
c. is an example of qualitative economics.
d. is an example of Australian economics.
6. Compared to Canada, France, Germany, Switzerland, and the United Kingdom, the United States
a. had the highest spending per person and the shortest life expectancy in 2016.
b. had the lowest spending per person and the shortest life expectancy in 2016.
c. had the lowest spending per person and the longest life expectancy in 2016.
d. had the highest spending per person and the longest life expectancy in 2016.
7. Rational decision making involves
a. choosing the cheapest option.
b. choosing the highest-quality option.
c. choosing the option that best helps you realize your goals, given your resources.
d.avoiding choices that involve scarce resources.
In: Economics