Sparky’s Electrical Supply

Frank Newman had been an electrician for over twenty years and was anxious to do something where he didn’t have to work in attics or crawl spaces any more. He had worked for both big and small firms and one thing that he had noticed was that large firms always had their own inventory of supplies, but small firms were always having to go out and buy things because they couldn’t afford, and didn’t want, to have a lot of extra things laying around that they weren’t using. Essentially, the small firms were buying supplies as they were needed for each job. And Frank (whose nickname was Sparky due to an unfortunate accident very early in his training) wanted to be the one to sell the supplies to these small electrical contractors. The town where Frank lived and worked was a moderate size (about 90,000) that was on a steady growth rate with new businesses coming in and housing being built. There were two of the big DIY-type stores, but Frank knew that the average small electrical contractor didn’t use them that much for supplies. Even though the prices for materials was good, the process of buying could take a long time and the purchase had to be paid for right away rather than on a trade account which could be paid once a month. There was only one electrical supply store in town currently, and it was on the west side, while a lot of growth has been on the east side. Frank had saved up $50,000 in a retirement account which he could use to start his own business. He has been talking to a bank about getting a loan to open his new store and the loan officer was quite positive about the possibility of a loan, but she told Frank the bank would need a pro forma income statement and balance sheet to see what his loan needs would be and whether it looked like the business would be successful enough to pay back the loan. The loan officer also reminded Frank that even though the bank wanted this information, the loan would still be one made to Frank personally, so he would be responsible for the payments, even if the business were not successful. Income Statement The SBA office in Frank’s town helped him find some information online that would help Frank develop the two statements that the bank needed in order to review a loan application. Based on the size of the store that Frank was considering opening the annual sales should be about $525,000. The cost of good sold (COGS) for these sales would be 59% and the turnover rate for the inventory should be about 4.5 times a year. So now Frank had enough information to get to the Gross Margin line on the income statement (Sales — COGS = Gross Margin), but the bank was going to want to see the bottom line, or Net Profit Margin, before it would approve a loan. The Operating Expenses would include things like rent, utilities, labor, phone, marketing, insurance, repairs and maintenance, licenses, everything that Frank would have to pay for in order to run the business. He got estimates for everything and it came up to $137,500. So now he could complete the income statement. Balance Sheet For the balance sheet, Frank estimated that the furniture and fixtures for the store would only be $25,000. Add another $5,000 in for a computer system and $1,000 for a software system for billing. The sign out front would be about $3,000, and there was probably going to be about $1,000 in miscellaneous other fixed assets he would have to purchase. The current assets would only be his inventory and cash. The inventory would be easy since it is just the COGS from the income statement divided by his turnover rate. For the cash level the bank had suggested taking his annual operating expenses and dividing that figure by his turnover rate also. It made good sense to him since that way there would be enough cash to cover all the expenses until the inventory had turned over at least once. The other half of the balance sheet was where Frank was struggling a little to figure it out. He knew that the owner’s equity would be the $50,000 that he was investing. And he knew that he was only going to be able to get 50% of his opening inventory level on credit, so that amount would be his initial accounts payable. This essentially meant that whatever value was necessary to make the liabilities and owner’s equity balance will the total assets would be the loan value he would have to ask for.

   •   Prepare both the pro forma income statement and the pro forma balance sheet for Sparky.

   •   What is the amount of a loan that Frank will need from the bank?

   •   Assume that the bank says Frank can have the money and would like to work with him on the type of debt that he will be incurring. The bank says he can have it as a line of credit (see footnote) at 5% interest, a short term loan of two years at 7% interest, or a five year loan at 10% interest, or a combination of these types of loans. What would you suggest and why? And remember that since Frank is a sole proprietor, he does not get a paycheck but is instead pay from the profits of the store, which also has to be used to pay back the loan.

1.What kind of security methods are in place for entering school campus, halls, offices and other sensitive areas especially this pandemic crisis situation?
What is the University’s approach to student and protocols requirement in entering the campus?

2.Students enrolled online this semester should also determine how to best connect with instructors. Are classes run by full-time professors, adjunct instructors or teaching assistants? That may vary by class. And how accessible are those instructors?

3.It’s a good idea for students to understand how to easily get in touch with advisers, pick majors and change classes. Students should ask about the student-to-adviser ratio, if there are early alert systems that can flag slumping academic achievement for advisers, how long advising sessions are, how advising differs by year in school, and whether students need to make an appointment or can pop in for a quick advising session.

4.Know how your school can help prepare you for the workforce. Incoming students should ask exactly that and find out how the university’s career services office works and how to use it. What kind of resources are available to help students find jobs? Are there placement opportunities and internships? How might the career services office help a freshman compared with a senior? Are there mentorship opportunities available?

5.Learn how to get involved on campus. Much of college life happens outside of the classroom. The decisions a student makes such as clubs to join and activities to pursue can greatly shape his or her college experience. That means incoming freshman will want to ask about opportunities to engage on their areas of interest and the types of first-year or so experiences available to them. But students shouldn’t feel left out if they are studying online, as many will be this semester due to COVID-19. Remote students can connect with peers through discussion boards, social media and online clubs, if available, which is also a worthwhile topic to ask about

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 61 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

For example, administrative expenses should be $3,600 per month plus $44 per course plus $7 per student. The company’s sales should average $900 per student.

The company planned to run four courses with a total of 61 students; however, it actually ran four courses with a total of only 55 students. The actual operating results for September appear below:

Required:

Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (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.)

The comparisons of Scholastic Aptitude Test (SAT) scores based on the highest level of education attained by the test taker's parents were provided. A research hypothesis was that students whose parents had attained a higher level of education would on average score higher on the SAT. The overall mean SAT math score was  (College Board website, January 8, 2012). SAT math scores for independent samples of students follow. The first sample shows the SAT math test scores for students whose parents are college graduates with a bachelor's degree. The second sample shows the SAT math test scores for students whose parents are high school graduates but do not have a college degree.

a. Formulate the hypotheses that can be used to determine whether the sample data support the hypothesis that students show a higher population mean math score on the SAT if their parents attained a higher level of education.

population mean verbal score parents college grads.

population mean verbal score parents high school grads.

b. What is the point estimate of the difference between the means for the two populations? (to 1 decimal)

points - Select your answer -lowerhigherItem 4 if parents are college grads.

c. Compute the -value for the hypothesis test.

-value is - Select your answer -lower than .005between .005 and .01between .01 and .025between .025 and .05between .05 and .10between .10 and .20greater than .20Item 7

d. At , what is your conclusion?

We - Select your answer -cancannotItem 8 reject .

A study conducted at a large university was aimed at discovering whether personality traits influence choice of college major. A random sample of psychology and music majors were selected from the university's corresponding college/school. Each student was given the "need dependence" scale. The researchers hypothesize that psychology majors have less need dependence than music majors. What can be concluded with α = 0.10?

a) What is the appropriate test statistic?
---Select One--- (na, z-test, One-Sample t-test, Independent-Samples t-test, or Related-Samples t-test)

b)
Condition 1:
---Select One--- (college/school, psychology major, personality traits, music major, or need dependence)
Condition 2:
---Select One--- (college/school, psychology major, personality traits, music major, or need dependence)

c) Input the appropriate value(s) to make a decision about H₀.
(Hint: Make sure to write down the null and alternative hypotheses to help solve the problem.)
p-value = _____ ; Decision:  ---Select One--- (Reject H0 or Fail reject H0)

d) Using the SPSS results, compute the corresponding effect size(s) and indicate magnitude(s).
If not appropriate, input and/or select "na" below.
d = _____ ; Magnitude:  ---Select One--- "na, trivial effect, small effect, medium effect, or large effect"
r² =_____ ; Magnitude:  ---Select One--- "na, trivial effect, small effect, medium effect, or large effect"

e) Make an interpretation based on the results. Which is correct?

a)The psychology majors have significantly less need dependence than music majors.

b)The music majors have significantly less need dependence than psychology majors.    

c)There is no significant need dependence difference between psychology and music majors.

By the time 14-year-old Jake got home from school he was sick enough for his mom to notice. He seemed shaky and confused. He was sweaty even though it was cool fall weather. “Jake let’s get you a glass of juice right away,” his mother said in a calm manner. She was very familiar with the symptoms. Jake was diagnosed with diabetes at age 6. His mother was very familiar with monitoring his insulin, eating, and exercise. Now that Jake was in middle school he was taking on more of his own monitoring, but he seemed to mess up often.

“Yeah, I know I shouldn’t have waited so long to eat,” Jake muttered once he was feeling better. “Mom, you just don’t understand. I don’t want to be different than the other kids!” Jake’s mom was on the phone with the school nurse before he could finish his sentence.

Jake needed to inject himself with insulin 3 times a day. He knew what would happen if his blood glucose got too high or if he didn’t eat regularly and it got too low. But when he was on a field trip he hated to go to the chaperone and say that he needed to eat something immediately. And he hated going to the nurse every day to do his injections. Even worse, if he didn’t report to the nurse between fourth and fifth period the nurse would come to the classroom to get him and pull him out of class.

Jake was tired of having this disease, sick of shots and angry that he could not sleep in or skip a meal like the other kids. He made a face as his mother was on the phone with the nurse and slammed the door on his way out to find his friend Joe.

1. What can Jake do to make his friends understand his condition?
2. Are there other treatment options for Jake?

The Gourmand Cooking School runs short cooking courses at its small campus. Management has identified two cost drivers it uses in its budgeting and performance reports—the number of courses and the total number of students. For example, the school might run two courses in a month and have a total of 65 students enrolled in those two courses. Data concerning the company’s cost formulas appear below:

For example, administrative expenses should be $3,800 per month plus $41 per course plus $6 per student. The company’s sales should average $870 per student.

The company planned to run four courses with a total of 65 students; however, it actually ran four courses with a total of only 59 students. The actual operating results for September appear below:

Required:

Prepare a flexible budget performance report that shows both revenue and spending variances and activity variances for September. (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.)

The Culminating Project

Offering career academies in high schools has become more popular during the past 30 years because they help students prepare for work and postsecondary education. A principal at a large high school with a Science, Technology, Engineering, and Mathematics (STEM) Academy is interested in determining whether the status of a student is associated with level of participation in advanced placement (AP) courses. Student status is categorized as (1) STEM for students in the STEM program or (2) regular. A simple random sample of 200 students in the high school was taken and each student was asked two questions:

1. Are you in the STEM Academy?

2. In how many AP courses are you currently enrolled?

The responses of the 200 students are summarized in the table.

Part A: Calculate the proportion of STEM students who participate in at least one AP course and the proportion of regular students in the sample who participate in at least one AP course.

Part B: Is participating in two or more AP courses independent of student status?

Part C: Describe a method that could have been used to select a simple random sample of 200 students from the high school.

Part D: Is there any reason to believe there is bias in the method that you selected? Why or why not?

Part E: The responses of the 200 students are summarized in the segment bar graph shown.

Compare the distributions and what the graphs reveal about the association between level of participation in AP courses and student status among the 200 students in the sample. (5 points)

Part F: Do these data support the conjecture that student status is related to level of participation in AP courses? Give appropriate statistical evidence to support your conclusion. (10 points)

An elementary school started a special reading enrichment program for seventh-graders that has been underway for eight months. One of the investigators wants to confirm the program is having its intended effect, and collects a sample of 34 students from the program with a standardized reading test average of 24.1. The standardized reading test average for seventh-graders in the country is 26.1 with a standard deviation of 4.9. What can the investigator conclude with α = 0.01?

a) What is the appropriate test statistic?
---Select--- na z-test one-sample t-test independent-samples t-test related-samples t-test

b)
Population:
---Select--- the school seventh-graders in the program the program months seventh-graders in the country
Sample:
---Select--- the school seventh-graders in the program the program months seventh-graders in the country

c) Compute the appropriate test statistic(s) to make a decision about H₀.
(Hint: Make sure to write down the null and alternative hypotheses to help solve the problem.)
critical value =  ; test statistic =
Decision:  ---Select--- Reject H0 Fail to reject H0

d) If appropriate, compute the CI. If not appropriate, input "na" for both spaces below.
[  ,  ]

e) Compute the corresponding effect size(s) and indicate magnitude(s).
If not appropriate, input and select "na" below.
d =  ;   ---Select--- na trivial effect small effect medium effect large effect
r² =  ;   ---Select--- na trivial effect small effect medium effect large effect

f) Make an interpretation based on the results.

The standardized reading test of seventh-graders in the special reading enrichment program is significantly higher than seventh-graders in the country.The standardized reading test of seventh-graders in the special reading enrichment program is significantly lower than seventh-graders in the country.    The standardized reading test of seventh-graders in the special reading enrichment program is not significantly different than seventh-graders in the country.