CUSTOM FABRICATIONS Inc. is a bicycle manufacturing firm founded in 2000 that currently employs 126 people. The company produces custom bicycles in its factory located near Los Angeles, CA. Each bicycle is tailored to a rider based on a number of different measurements, including height, weight, inseam, and arm length. These measurements are taken at 30 professional bicycle shops around Southern California, which are certified to size CUSTOM FABRICATIONS cycles. By accepting orders only through licensed dealers, CUSTOM FABRICATIONS ensures that each bike matches its rider precisely. CUSTOM FABRICATIONS’ custom bikes are considered extremely high quality and the company takes pride in using only the best components sourced from around the world. Accordingly, CUSTOM FABRICATIONS purchases from a cast of hundreds of suppliers, chosen for their commitment to quality and reliability. Demand for CUSTOM FABRICATIONS’ cycles has grown exponentially in recent years. The surge in demand was somewhat unexpected and the company’s factory has been operating at capacity for over a year. As a result, current orders face a production backlog of approximately 5–6 weeks. The company’s operations have been further hampered by severe inefficiencies and control weaknesses attributed to its legacy accounting system. Your firm has been hired as an outside consultant to suggest improvements in the company’s accounting procedures. The following paragraphs describe the company’s expenditure cycle. Purchases System All purchases of raw materials are initiated in the CUSTOMFABRICATIONS’ purchasing department. A clerk in the department monitors inventory levels from his PC, which is linked to the inventory subsidiary ledger. Once a part needs to be replenished, he creates a hard-copy purchase order. One copy is mailed to the vendor, a blind copy of the purchase order is sent to the warehouse, and the third copy is filed in the purchasing department. Typically within 3–5 business days, the warehouse receives the ordered parts and the packing slip from the vendor, which the warehouse clerk reconciles with the blind copy of the purchase order. Once the reconciliation is complete, the warehouse clerk prepares a three-part hard-copy receiving report stating the quantity and condition of the items received. One copy of the receiving report is sent to the general ledger department to update the digital inventory control account. The second copy is sent to the accounts payable department, and the third is sent to the purchasing department to update the inventory subsidiary ledger. Within a week, the mail room receives the supplier’s invoice, which is immediately sent to the accounts payable department. The AP clerk reconciles the invoice with the receiving report and then records a liability in the AP subsidiary ledger from the department PC. Finally, the clerk prints an AP summary from the terminal and sends it to the general ledger clerk. Cash Disbursements System The accounts payable clerk regularly checks the accounts payable subsidiary account at his terminal to ensure timely payment to vendors. For those items due for payment, he sends approval in the form of a payment voucher to the cash disbursements department. For control purposes, cash disbursements are processed manually. The details of the check are recorded in the hard-copy cash disbursements journal, and the check is mailed to the vendor. The clerk then prepares a journal voucher and sends it to the general ledger. Once the general ledger clerk receives the journal voucher, the AP summary, and the receiving report, she updates the affected general ledger accounts from the department PC. Required a. Create a data flow diagram of the current system. b. Create a system flowchart of the existing system. c. Analyze the physical internal control weaknesses in the system. d. Describe the risks associated with these control weaknesses. e. (Optional) Prepare a system flowchart of a redesigned computer-based system that resolves the control weaknesses that you identified. Explain your solution.

Consider the following blending process. A well-mixed tank initially contains 2000. L of a solution that is 30.0 wt% phosphoric acid. At some time we begin feeding two streams of acid of different concentration into the tank. One stream has a flowrate of 100.0 kg/min and an acid concentration of 80.0 wt %. The second stream has a flowrate of 200. kg/min with an acid concentration of 50.0 wt %. We also withdraw a stream at a rate of 5.0 kg/s. Assume the density of the streams is 1185. kg/m3 .

a. Derive the differential equation for the weight fraction acid as a function of time.

b. How much phosphoric acid is in the tank after 20.0 minutes?

The firearms manufacturer that sells its firearms to the local sheriff’s department has 2000 used firearms to sell. Each used firearm has a 13% probability of needing major mechanical repairs. You randomly select 600 firearms for potential purchase.

What is the likelihood that 39 firearms will need major mechanical repairs? [Show your work]

What is the likelihood that all the firearms will work? [Show your work]

What is the likelihood that all the firearms will need major mechanical repairs? [Show your work]

A tank contains 70 kg of salt and 2000 L of water. Water containing 0.4kg/L of salt enters the tank at the rate 16L/min. The solution is mixed and drains from the tank at the rate 4L/min. A(t) is the amount of salt in the tank at time t measured in kilograms.
(a) A(0) =  (kg)
(b) A differential equation for the amount of salt in the tank is  =0=0. (Use t,A, A', A'', for your variables, not A(t), and move everything to the left hand side.)
(c) The integrating factor is
(d) A(t) =  (kg)
(e) Find the concentration of salt in the solution in the tank as time approaches infinity. (Assume your tank is large enough to hold all the solution.)
concentration =  kgL

A start-up company has 2000 investors, that company loses investors at a rate of 10 per year. Every time the company loses an investor, the company gets a loss of $200,000. For every investor that remains the company makes a profit of $2,000. Let F be the total earnings the company makes in a year, and X be the number of investors the company loses.

1)Write a function that calculates yearly earnings F as a function of X

2)Find P(F < 0), the probability that earnings are negative

3)E[F]

4)What is the probability that the company loses exactly 5 investors in a given year, given that they have not lost any investors in the first half of the year

For a regression of test score (T) on the endogenous variable student-teacher ratio (R), Hoxby (2000) suggests using as an instrument the deviation of potential enrollment from its long-term trend (P), where "potential enrollment" means how many children of kindergarten age there are (whether or not they attend public school). Which of the following arguments would NOT support P as an instrument for R?

PLEASE PROVIDE EXPLANATION IN ANSWER

Using the below data, compare the average salary in 1999-2000 by region to 2014-15 by region. Which groups had statistically significant increases? Decreases? Please use excel to solve and show the steps.  

Average Salary by Region:

Suppose that GLC earns a $2000 profit each time a person buys a car. We want to determine how the expected profit earned from a customer depends on the quality of GLC's cars. We assume a typical customer will purchase 10 cars during her lifetime. She will purchase a car now (year 1) and then purchase a car every five years—during year 6, year 11, and so on. For simplicity, we assume that Hundo is GLC's only competitor. We also assume that if the consumer is satisfied with the car she purchases, she will buy her next car from the same company, but if she is not satisfied, she will buy her next car from the other company. Hundo produces cars that satisfy 80% of its customers. Currently, GLC produces cars that also satisfy 80% of its customers. Consider a customer whose first car is a GLC car. If profits are discounted at 10% annually, use simulation to estimate the value of this customer to GLC. Round your answers to one decimal digit.
$

Also estimate the value of a customer to GLC if it can raise its customer satisfaction rating to 85%, to 90%, or to 95%. You can interpret the satisfaction value as the probability that a customer will not switch companies.

TOTAL RECALL

In mid-2000, the Firestone Tire Company issued a recall of some of its tires – those mounted on certain sport-utility vehicles (SUVs) of the Ford Motor Company. This was done in response to reports that tire treads on some SUVs separated in use, causing accidents, some of which involved fatal injuries as vehicles rolled over.

At first, Firestone denied there was a problem with its tires, but it issued the recall under pressure from consumer groups and various government agencies. All of the tires in question were produced at the same tire plant, and there were calls to shut down that facility. Firestone suggested that Ford incorrectly matched the wrong tires with its SUVs. There was also the suggestion that the shock absorbers of the SUVs were rubbing against the tires, causing or aggravating the problem.

Both Ford and Firestone denied that this had been an ongoing problem. However, there was a public outcry when it was learned that Firestone had previously issued recalls of these tires in South America, but had not informed officials in other countries. Moreover, both companies had settled at least one lawsuit involving an accident caused by tread separation several years earlier.

This case raises a number of issues, some related to possible causes, as well as ethical issues.

Discuss each of these factors and their actual or potential relevance to what happened.

a. Product design

b. Quality control

c. Ethics

the relationship between nominal exchange rate and relative prices .from the annual observations from 2000 to 2014, the following regression result were obtained , where Y =exchange rate of the Nigeria naira to the America dollar (#/$) and X=ratio of the US consumer price index to the Nigerian consumer price index ; that is X represent the relative prices in the two countries Y estimate =6.682- 4.318X. r=0.528, SE =(1.22) (1.333). interprete this regression. How would you interpret r^2. does the negative value of X make economic sense. what is underlying economic theory.