1. Suppose that I am looking at a sample of 30 students coming into the university. The individual scores, X, on the college entrance examination are normally distributed with a mean of 550 and a standard deviation of 100.  

a. Suppose the mean of those 30 students is 575. What is the percentile score of that mean?

b. What is the probability that the mean will be at least 600 for a set of 30 students?

Please include the problem number with every answer, thank you.

During the month of October of the current year, Dan’s Accounting Service was opened. The following transactions occurred.

Oct 1   Dan sold $70,000 worth of stock (50 shares) to start the business.

Oct 1   Dan purchased $9,500 worth of office equipment on account from Keene’s

            Furniture Supply.

Oct 1   Dan paid October’s rent on the office. He wrote a check for $2,500.

Oct 2   Dan purchased $400 worth of office supplies for cash.

Oct 4   The telephone was installed. We paid $95 (Utilities Expense).

Oct 4 Dan placed an advertisement in the Anoka County Shopper. It cost $150 (cash).

Oct 4   Dan started a petty cash fund with $50 for a fund balance.

Oct 5   We purchased (for cash) $45 worth of stamps (Miscellaneous Expense).

Oct 5   A three-month umbrella insurance policy was purchased for $720 (cash).

Oct 7   Bebus’s Automotive Supply Company paid us $2,800 (cash) for setting up their

            books.

Oct 9   We earned $3,200 from Dietz’s Fine Furniture Company for setting up their

books. They will pay us later.

Oct 12 We paid a part-time employee $90 for running errands. There are no taxes to be

withheld.

Oct 14 Smith’s Food Service, Inc. paid us $1,700 for helping them with their taxes.

            The actual bill was for $3,500. They will pay us the rest next month.

Oct 19 We paid our part-time employee $80 for running errands. There are no taxes to be

withheld.

Oct 23 We sent a check for $1,000 to Keene’s Furniture Supply for the office equipment

            purchased on October 1st.

Oct 26 We earned $800 for consulting with Anderson’s Clothing Outlet. They will pay

us later.

Oct 26 We paid our part-time employee $50 for running errands. There are no taxes to

be withheld.

Oct 30 Dietz’s Fine Furniture Company paid us $900 on account for the work we did

            for them on October 9.

Oct 30 Dan paid the stockholders $600 in dividends.

Oct 31 Dan paid the electric bill which was $90.

Oct 31 Dan replenished the petty cash fund. He had used $12 for office supplies and $18

for miscellaneous expenses.

REQUIRED:

1)Journalize the following entries using the accounts from the Chart of Accounts.

Be sure to use asset accounts instead of expense accounts whenever possible.

2)Post the transactions to the ledger. (Use T- Accounts.)

3)Prepare a trial balance as of October 31 of the current year.

4)Journalize the following adjusting entries:

A)Ed determines that there was $250 worth of supplies still on hand.

B)One month of insurance was been used.

C)The depreciation on our office equipment is $250.

D)Our part-time employee has earned $40 so far this week. She will be paid next month for the full week’s work.

5)Post the adjusting entries.

6)Prepare an adjusted trial balance.

7)Prepare an Income Statement (don’t forget the Earnings Per Share), Statement of Retained Earnings and a Classified Balance Sheet.

8)Journalize the closing entries.

9)Post the closing entries.

10)Prepare a post-closing trial balance.

DAN’S ACCOUNTING SERVICE

CHART OF ACCOUNTS

101 Cash

102 Petty Cash

108      Accounts Receivable

112 Office Supplies

118 Prepaid Insurance

201 Office Equipment

202 Accumulated Depreciation—Office Equipment

301      Accounts Payable

308      Wages Payable

511      Contributed Capital

512 . Retained Earnings

513 . Dividends

611 . Professional Fees

810      Advertising Expense

815 . Depreciation Expense

820      Insurance Expense

825      Miscellaneous Expense

830      Office Supplies Expense

835 Rent Expense

840 . Utilities Expense

845      Wages Expense

World no.1 Rafael Nadal is to succeed football icons David Beckham and Cristiano Ronaldo as the male face of Emporio Armani Underwear and Armani jeans.

The 24 year-old Spaniard is now building a massive portfolio of endorsement deals with concerns such as Richard Mille watches, Mapfe SA (Spain’s largest insurance company), Kia Motors, Lanvin fragrances and of course Nike Inc. and Babolat.

Even the most conservative estimates maintain that Nadal’s commercial appeal will boost his annual earnings to somewhere comfortably in excess of $US 40 million a year. With three major titles to his credit in 2010 he has collected $10,171,998 in prize money alone.

Simon Chadwick, a professor of sports business strategy and marketing at the Coventry University Business School in England, confidently predicted: “Nadal will even transcend the Federer brand.”

Nadal’s first campaign shots for Armani will not be released until in the New Year and the decision to switch sporting focus for its’ underwear brand from football to tennis is seen as a bold move in a sector of male fashion that is worth more close to $US 10 billion a year.

Armani’s campaign involving Real Madrid and Portugal star Ronaldo was deemed a success across global markets. Other fashion companies including Milanese rivals Dolce and Gabbana recruited the entire Italian World Cup squad.

The only tennis player to previously make a global impact on the underwear market was Bjorn Borg who started his own brand in Sweden that became a worldwide concern. Patrick Rafter is the current image of Bonds underwear in Australia.

Interestingly, no one at Armani seems to realize the irony of signing Nadal who is notorious for taking time between points for readjustment because he habitually seems to struggle with the fit of his underwear.

1. Discuss the link between a brand image and pricing strategy.

2. Discuss the advantages and disadvantages of using social networks as part of a promotional campaign.

3. Discuss the advantages and disadvantages of celebrity endorsement in the promotion of fashion brands.

World no.1 Rafael Nadal is to succeed football icons David Beckham and Cristiano Ronaldo as the male face of Emporio Armani Underwear and Armani jeans.

The 24 year-old Spaniard is now building a massive portfolio of endorsement deals with concerns such as Richard Mille watches, Mapfe SA (Spain’s largest insurance company), Kia Motors, Lanvin fragrances and of course Nike Inc. and Babolat.

Even the most conservative estimates maintain that Nadal’s commercial appeal will boost his annual earnings to somewhere comfortably in excess of $US 40 million a year. With three major titles to his credit in 2010 he has collected $10,171,998 in prize money alone.

Simon Chadwick, a professor of sports business strategy and marketing at the Coventry University Business School in England, confidently predicted: “Nadal will even transcend the Federer brand.”

Nadal’s first campaign shots for Armani will not be released until in the New Year and the decision to switch sporting focus for its’ underwear brand from football to tennis is seen as a bold move in a sector of male fashion that is worth more close to $US 10 billion a year.

Armani’s campaign involving Real Madrid and Portugal star Ronaldo was deemed a success across global markets. Other fashion companies including Milanese rivals Dolce and Gabbana recruited the entire Italian World Cup squad.

The only tennis player to previously make a global impact on the underwear market was Bjorn Borg who started his own brand in Sweden that became a worldwide concern. Patrick Rafter is the current image of Bonds underwear in Australia.

Interestingly, no one at Armani seems to realize the irony of signing Nadal who is notorious for taking time between points for readjustment because he habitually seems to struggle with the fit of his underwear.

1. Discuss the link between a brand image and pricing strategy.
2. Discuss the advantages and disadvantages of using social networks as part of a promotional campaign.
3. Discuss the advantages and disadvantages of celebrity endorsement in the promotion of fashion brands.

Using the Hofstede’s model of national cultures Masculinity and Individual factors,what can you predict the market outcome of a US lingerie brand like victorias secret in the japanese market

1.Skinner emphasized a scientific approach to the study of behavior, in part, because individual behavior is so unique. Understanding what the average person might do may tell us nothing about a certain individual. However, a science of personality that treats everyone as unique seems to become hopelessly complex, because we must study everyone individually. Does this really seem like a scientific approach, and whether it is or not, can it really help us to understand other people? Provide an example that illustrates the use of operant conditioning to shape your own personality. Can the same principles that shaped your personality be generalized to understanding the personality of others?

EMU ELECTRONICS

Emu electronics is an electronics manufacturer located in Box Hill, Victoria. The company’s managing director is Shelly Chan, who inherited the company from the father. The company originally repaired radios and other household appliances when it was founded more than 50 years ago. Over the years. The company has expanded, and it is now a reputable manufacturer of various specialty electronics items. Robert McCanless, a recent MBA graduate, has been hired by the company in the finance department.     

One of the major revenue-producing items manufactured by Emu electronics is a smart phone. Emu electronics currently has a smart phone model on the market and sales have been excellent. The smart phone is a unique item in that it comes in a variety of colours and is pre-programmed to play Jimmy Barne’s music. However, as with any electronic item, technology changes rapidly, and the current smart phone has limited features in comparison with newer models. Emu electronics has spent $1 200 000 developing a prototype for a new smart phone that has all the features of the existing one, but adds new features, such as Wifi tethering. The company has spent a further $250 000 for a marketing study to determine the expected sales figures for the new smart phones.

   Emu electronics production manager has produced estimates of the costs associated with manufacture of the new smart phone. Variable costs are estimated at $210 per unit and fixed costs for the operation are expected to run at $5.3 million per year. The estimated sales volume is 64 000 units in the year 1; 106 000 units in the year 2; 87 000 units in the year 3; 78 000 units in Year 4; and 54 000 units in the final year. The unit price of the smart phone will be $515. The necessary manufacturing equipment can be purchased for $38.5 million and will be depreciated for tax purposes over a seven-year life (straight-line to zero). It is believed the value of the manufacturing equipment in five years’ time will be $5.8 million.

    Net working capital for the smart phones will be 20% of sales and will have to be purchased at the end of the year. The cost of the raw materials is reflected in the variable unit cost. Changes in NWC will first occur at the end of Year 1 based on the first years’ sales. Emu electronics has a 30% corporate tax rate and a 12% required return.

    Shelly has asked Robert to prepare a report that answers the following questions.

Questions

1. What is the payback period of the project?

2. What is the profitability index of the project?

3. What is the IRR of the project?

4. What is the NPV of the project?

5. How sensitive is the NPV to changes in the price of the smart phone?

6. How sensitive is the NPV to changes in the quantity sold?

7. Should Emu electronics produce the new smart phone?

8. Suppose Emu electronics loses sales on other models because of the introduction of the new model. How would this affect your analysis?

MIni Case

EMU Electronics

Emu Electronics manufacturer located in Box Hill, Victoria. The company's managing director is Shelly Chan, who inherited the company from her father. The company originally repaired radios and other household appliances when it was founded more than 50 years ago. Over the years, the company has expanded, and it is now a reputable manufacturer of various specialty electronic items. Robert McCanless, a recent MBA graduate, has been hired by the company in the finanace department.

One of the major revenue-producing items manufactured by Emu Electronics is a smart phone. Emu Electronics currently has one smart phone model on the market and sales have been excellent. The smart phone is a unique item in that it comes in a variety of colours and is pre-programmed to play Jimmy Barnes music. However, as with any electronic item, technology changes rapidly, and the current smart phone has limited features in comparison with newer models. Emu Electronics has spent $1200000 developing a prototype for a new smart phone that has all the features of the existing one, but adds features, such as Wifi tethering. The company has spent a further $250000 for a marketing study to determine the expected sales figures for the new smart phone.

Emu Electronics' production manager has produced estimates of the costs associated with manufacture of the new smart phone. Variable costs are estimated at $210 per unit and fixed costs for the operation are expected to run at $5.3 million per year. The estimated sales is 64000 units in Year 1; 106000 units in Year 2; 87000 units in Year 3; 78000 units in Year 4 and 54000 units in the final year. The unit price of the new smart phone will be $515. The necessary manufacturing equipment in five years time will be $5.8 million.

Net working capital for the smart phones will be 20% of sales and will have to be purchased at the end of the year. The cost of the raw materials is reflected in the variable unit cost. Changes in NWC will first occur at the end of Year ! based on the first year's sales. Emu Electronics has a 30% corporate tax rate and a 12 % required return.

Shelly has asked Robert to prepare a report that answers the following questions:

1. What is the payback period of the project?

2. What is the profitability index of the project?

3. What is the IRR of the project?

4. What is the NPV of the project?

5. How sensitive is the NPV to changes in the price of the new smart phone?

6. How sensitive is the NPV to changes in the quantity sold?

7. Should Emu Electronics produce the smart phone?

8. Suppose Emu Electronics loses sales on other models because of the introduction of the new model. How would this affect your analysis?

EMU ELECTRONICS

Emu electronics is an electronics manufacturer located in Box Hill, Victoria. The company’s managing director is Shelly Chan, who inherited the company from the father. The company originally repaired radios and other household appliances when it was founded more than 50 years ago. Over the years. The company has expanded, and it is now a reputable manufacturer of various specialty electronics items. Robert McCanless, a recent MBA graduate, has been hired by the company in the finance department.     

One of the major revenue-producing items manufactured by Emu electronics is a smart phone. Emu electronics currently has a smart phone model on the market and sales have been excellent. The smart phone is a unique item in that it comes in a variety of colours and is pre-programmed to play Jimmy Barne’s music. However, as with any electronic item, technology changes rapidly, and the current smart phone has limited features in comparison with newer models. Emu electronics has spent $1 200 000 developing a prototype for a new smart phone that has all the features of the existing one, but adds new features, such as Wifi tethering. The company has spent a further $250 000 for a marketing study to determine the expected sales figures for the new smart phones.

   Emu electronics production manager has produced estimates of the costs associated with manufacture of the new smart phone. Variable costs are estimated at $210 per unit and fixed costs for the operation are expected to run at $5.3 million per year. The estimated sales volume is 64 000 units in the year 1; 106 000 units in the year 2; 87 000 units in the year 3; 78 000 units in Year 4; and 54 000 units in the final year. The unit price of the smart phone will be $515. The necessary manufacturing equipment can be purchased for $38.5 million and will be depreciated for tax purposes over a seven-year life (straight-line to zero). It is believed the value of the manufacturing equipment in five years’ time will be $5.8 million.

    Net working capital for the smart phones will be 20% of sales and will have to be purchased at the end of the year. The cost of the raw materials is reflected in the variable unit cost. Changes in NWC will first occur at the end of Year 1 based on the first years’ sales. Emu electronics has a 30% corporate tax rate and a 12% required return.

    Shelly has asked Robert to prepare a report that answers the following questions.

Based on the given data, pls find below steps, workings, data and
answers:
1. What is the payback period of the project?
2. What is the profitability index of the project?
3. What is the IRR of the project?
4. What is the NPV of the project?
5. How sensitive is the NPV to changes in the price of the smart
phone?

6. How sensitive is the NPV to changes in the quantity
sold?

7. Should Emu electronics produce the new smart phone?

NOTE: Please show full working and explanation on the steps.