A random sample of 20 students at a university showed an average age of 21.4 years and a sample standard deviation of 2.6 years. The 98% confidence interval for the true average age of all students in the university is?

Enter in the upper limit of your confidence interval

5. Exchange rates and the demand for domestic goods

Piano Palace Co. produces electronic keyboards in the United States. Its most popular keyboard sells for $1,400. KeySharp Co., Piano Palace's primary competitor, is based in Germany and sells keyboards to US customers online. KeySharp sells its keyboards for 825 euros.

Suppose that initially, the exchange rate was $1.60 per euro.

This means that the price of KeySharp’s keyboards to US consumers was 825 euros ×$1.60 per euro =$1,320.

This means that the price of KeySharp’s keyboards to US consumers was _____?

. Because this dollar price of keyboards from KeySharp is(lower or higher)______________ than the dollar price of keyboards from Piano Palace, demand for Piano Palace keyboards is likely(high, low , higher)______ relative to KeySharp’s keyboards in the United States.

Now suppose that the euro weakens relative to the dollar, and the exchange rate changes to $2.00

After this change, the price of KeySharp’s keyboards to US consumers is _______?

. Because this dollar price of keyboards from KeySharp is now (lower or higher
) _________ than the dollar price of keyboards from Piano Palace, demand for Piano Palace keyboards is likely(rise or fall)_______ relative to KeySharp’s keyboards in the United States, due to the change in the exchange rate.

Suppose that Piano Palace not only sells keyboards in the United States but also exports and sells them to France (another country in the eurozone).

When the euro was $1.60, consumers in France paid _______?

euros for keyboards from Piano Palace. At this exchange rate, the euro price of Piano Palace keyboards was (lower or higher)_______ than that of KeySharp keyboards. However, at the newer exchange rate, the euro price of Piano Palace keyboards is now_____?

. This would cause French consumers to increase demand for (KeySharp keyboards, relative to Piano Palace keyboards OR Piano Palace keyboards, relative to KeySharp keyboards)

.

Generalizing from the results of this fictionalized scenario, when other currencies are weak against the dollar, US imports should be relatively (high or low)_____ , while US exports should be relatively (low or high)_____ , leading to a(more or less)_____ favorable position in terms of the balance of trade.

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1. Our educational system is reducing the intrinsic motivation to learn and replacing it with extrinsic motivation.

1. What is the difference between intrinsic and extrinsic motivation? What is it that motivates you to learn at University?
2. Make an argument for or against the statement above using examples from theories learned in class and your everyday experience to support your argument.

Congratulations! You have decided to leave your career as a personal tax accountant to pursue a startup idea you have been thinking about for a long time. You are going to launch a new app that tracks all of your personal tax information throughout the year, so that you don’t have to load anything come tax time. You want this app to fully integrate with users payroll, investment accounts, and any other system that creates tax liability. You have validated this as a pain and see tremendous potential. You are an expert on personal taxation with over 10 years in the industry, but you are ready for a new challenge. About You: You do not have skills as a software developer, but you are excellent at tax law and procedures. You have never raised money before, but you have friends that are entrepreneurs that might know some investors. You have some experience in customer relations, but you have never run a full marketing campaign, especially for an online company. You know you cannot launch this company alone and have decided that you want to add at least one partner to the help you build this product. Through extensive networking and interviewing you have narrowed your search down to three individuals. All have expressed interest in joining your team for the right deal. Here are the three individuals:

1) Your former co-worker Jane. Jane has never worked in a startup environment, but she started her career as a very junior software engineer at Turbo Tax, a popular and large online tax program. Jane moved to your accounting firm where she was a software engineer for your firm’s internal accounting software. She has 15 years of experience as a software engineer and is well regarded as a strong engineer. You like Jane but only know her professionally. Jane is open to different roles with the new venture.

2) Your Aunt Jessica has expressed an interest in joining your team. Jessica has 25 years of experience starting and running a successful lifestyle business. Last year, out of nowhere, her company was acquired for $10 million. She wants a new opportunity and is willing to invest her time and some money, but wants an active role in management of the company, meaning you might take more of a product development role.

3) Through a networking event you met a serial entrepreneur named Maya. Maya started her career as a software developer, and has developed several different apps that she has tried to turn into startups. One of her apps, a grocery-tracking program, raised $2.5 million from angel investors and venture capitalists. After 3 years she had to close the company when they were unable to raise additional capital. You have been given positive recommendations from a friend who worked with Maya in the past, but you worry about her focus and if she will be motivated. Maya is looking to be a true co-founder in any venture she undertakes. Question

1A?: Evaluate the following candidates and make a decision on which candidate to hire. Be sure to evaluate the pros and cons of ?each person? in your answer: (20pts) Question

1B:? Based on who you decided to bring on the team, tell me what ?role/title? they should have and ?propose an equity package? that you think would convince them to join the team. ?Be sure to justify why you divided equity this way, it is not enough to just give me numbers?. (20pts)

Question 2: Balance Sheet Build and Analysis

Q.Clean, a student run dry-cleaning service has the following financial information as of December 31, 2020:

• The cash ending balance for the year was $117,820

• Buildings & Equipment for the year was $91,350

• Accounts Receivables for the year was $31,510

• Common Shares for the year was $194,860

• Inventory for the year was $87,970

• Land for the year for the year was $281,490

• Accounts Payable for the year was $74,250

• Retained earnings for the year was $70,100

• Buildings & Equipment Accumulated Depreciation for the year was $40,000

• Wages payable for the year was $46,190

• Short-term debt for the year was $10,500

• Taxes payable for the year was $55,750

• Mortgage for the year was $60,010

• 10-year bond for the year was $20,500

• Interest Payable for the year was $37,980

1. Prepare a 2020 Balance Sheet for the company. Ensure you categorize your accounts into Current and Non-Current Assets/Liabilities, and Shareholders’ Equity.

2. Calculate the Net Working Capital and Quick Ratio of the company. Explain what these values are and what they are used for. Comment on the company’s financial position, based on the ratios you calculated.

3. In 2021, the company plans to purchase additional retail space in Ray Hall. This space will cost $100,000. Half of the purchase will be made in cash, and the other half will be added to the mortgage. Also, the company takes an additional $35,000 of short-term debt. Please answer the following questions:

1. Describe the effect that these transactions will have on the 2020 Balance Sheet.

2. Will this impact the Income Statement in any way? If yes, identify and explain the impact. If no, explain why there is no impact.

the accountant's Company

Income Statement

For the Year Ended December 31, 2018

Sales                                                               $8,500,000

Manufacturing Expenses

Variable                                $3,250,000

Fixed overhead                       640,000       3,890,000

Gross Margin                                                  $4,610,000

Selling and administrative expenses

Commissions                           $580,000

Fixed marketing expenses       300,000

Fixed admin expenses               450,000      1,330,000

Net Operating Income                                     $3,280,000

Fixed Interest expenses                                       230,000    

Income before Taxes                                      $3,050,000     

Income Taxes (21%)                                            640,500

Net Income                                                     $2,409,500

1.Restate the income statement in a contribution margin format.

2.Compute the break-even point in sales dollars given the current structure.

3.Compute the operating leverage at the 2018 level of sales.

4.Compute the margin of safety in both dollars and percentage for the 2018 level of sales.

Your company is considering out-sourcing the sales and marketing to an agency specializing in these types of sales. The outsourcing would remove the commissions, reduce the marketing by $270,000, and reduce the fixed administrative expenses by $35,000. The out-sourcing firm, Jangler Marketing, will charge a fee of 14% of sales. Jangler requires a 3-year contract. Jangler believes that it can increase sales by 10% for 2019 and 13% each year after (2020 and 2021). The company believes that with its current sales and marketing staff, sales will increase by 8% for 2019 and 9% in each year after (2020 and 2021).

1.Prepare contribution format projected income statements for 2019, 2020 & 202a assuming the company hires Jangler Marketing.

2.Prepare contribution format projected income statements assuming the outsourcing is rejected.

Laker Company reported the following January purchases and sales data for its only product.

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 285 units, where 270 are from the January 30 purchase, 5 are from the January 20 purchase, and 10 are from beginning inventory.

Required:
1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,700 and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)

3. Does net income using weighted average fall between that using FIFO and LIFO?2. Which method yields the highest net income?

4. If costs were rising instead of falling, which method would yield the highest net income?

Required information

[The following information applies to the questions displayed below.]

Laker Company reported the following January purchases and sales data for its only product.

The Company uses a perpetual inventory system. For specific identification, ending inventory consists of 240 units, where 220 are from the January 30 purchase, 5 are from the January 20 purchase, and 15 are from beginning inventory.

Required:

1. Complete comparative income statements for the month of January for Laker Company for the four inventory methods. Assume expenses are $1,450, and that the applicable income tax rate is 40%. (Round your Intermediate calculations to 2 decimal places.)

I need the weighted average!!!!!

Southport Pty Ltd is considering a proposal for a warehouse project in Gold Coast. Initial investment (i.e acquisition of land, construction cost and others) for the proposed warehouse is estimated $20,000,000. A total amount of $15,000,000 will be taken as loan from bank @ 10% interest and equal repayment method for five years counting from first year (assuming that bank loan is available at any time). The company is expected to complete construction in less than one year and the warehouse is expected to be in full operation exactly one year from today (since initial investment are made) if the project proposal is approved within short time. Expected operational life of the project is 4 years (i.e total project life including construction time is 5 years). Storage capacity of the warehouse is 240,000 m² (floor space). The company is expecting to earn $100 per m² per year by renting the floor spaces. The company has to maintain all the costs of warehouse administration (including staff payments, council rates, insurance, electricity and water bills etc) which is estimated as $60 per m² per year. Assume discounting rate of 10%, investment occurring at the starting, and gross profit acquired at the end of any period after construction. The Company is expecting to earn $12,000,000 by selling the discarded warehouse at the end of the project life (end of 5^th year). Assume straight-line depreciation and 40% taxes on income.

1. What is the payback period of the Investment?                                                          
2. Determine Net present value and Internal rate of return.                             
3. What is your recommendation?

Below are the statements of financial position for Jupiter Plc, Neptune Limited, Pluto Limited and Venus Co for the year ended 30 April 2021.

i) Share CapitalNotes to the Above Accounts

• All ordinary shares other than those in Venus Co have a par value of 50 pence.
• Ordinary shares in Venus Co have a par value of K1.

ii)     Exchange Rates

• Rate at 1 May 2020: £1 = K10  £1 = €1.25
• Average for year to 30 April 2021: £1 = K10 £1 = €1.55
• Rate at 30 April 2021: £1 = K12 £1 = €1.60

iii) Neptune Limited

• Jupiter Plc purchased 7,500,000 ordinary shares in Neptune Limited on 31 October 2020. The purchase consideration was made up of 2 new ordinary shares in Jupiter valued at £1.20 each for every 3 shares held in Neptune Limited and £11,000,000 paid in 12 months’ time. Jupiter Plc has recorded the £11,000,000 payable in current borrowings and investments, but the accountant has not recorded the number or value of shares issued in Jupiter Plc’s investments.
• Jupiter Plc’s cost of capital is 10% and Neptune Limited’s cost of capital is 8%
• Profit for the year to 30 April 2021 for Neptune Limited was £1,000,000.
• At the date of acquisition, the fair value of Neptune Limited’s freehold properties was agreed to be £4,000,000 higher than book value; properties had an average remaining useful life of 10 years at the date of acquisition. This fair value adjustment has not been included in Neptune Limited’s books of account.
• It is group policy to capitalise development expenditure. Neptune Limited writes off development expenditure as it is incurred. At 31 October 2020 Jupiter Limited had written off development expenditure amounting to £600,000 and the total development expenditure written off up to 30 April 2021 amounted to £1,800,000.
• On 29 April 2021, Jupiter Limited remitted a payment to Pluto Limited for £100,000 to clear Jupiter Limited’s current account balance with Pluto Limited at the year end. Pluto Limited did not receive this cheque until 2 May 2021 and has not reflected this payment in trade receivables.
• At the date of acquisition, the non-controlling interest in Neptune Limited was agreed to have a fair value of £3,750,000.

iv) Pluto Limited

• Neptune Limited paid £1,648,000 to acquire 800,000 ordinary shares in Pluto Limited on 1 May 1996. Neptune Limited had no significant influence over Pluto Limited at this time as there was a controlling shareholder.
• Jupiter Plc paid £600,000 to acquire 300,000 ordinary shares in Pluto Limited on 1 May 2020.
• The retained earnings for Pluto Limited were as follows:

• The inventories of Jupiter Plc include goods which had cost Pluto Limited £2,300,000 and to which Pluto Limited had added a 25% mark up.
• At the point of acquisition, the non-controlling interest in Pluto Limited was agreed to have a fair value of £1,200,000

v)  Venus Co

• Venus Co is a company incorporated in Krulia.
• Jupiter Plc acquired 1,750,000 of the ordinary shares in Venus Co on 1 May 2020 at a cost of £400,000 when the retained earnings of Venus Co stood at K6,000,000.

• At the date of acquisition, the fair value of net assets was the same as the book value of net assets.

vi) Borrowings

• Jupiter Plc’s non-current liabilities includes borrowings which are denominated in Euros. The loan is for €4,000,000. This loan was last translated at 30 April 2020. No adjustment for movements in exchange rates have been made since this date. The loan remains in Jupiter Plc’s statement of financial position at the sterling value as at 30 April 2020

vii) Goodwill

• Positive goodwill is carried at cost and is reviewed annually for impairment.
• Negative goodwill is credited directly to retained earnings.
• An impairment review of goodwill had been carried out at year end and concluded that there had been no impairment of the goodwill associated with any of the investee companies.
• It is the group’s policy to value any non-controlling interests at their fair value.

YOU ARE REQUIRED TO:

Prepare the group statement of financial position for the Jupiter Plc Group as at 30 April 2021.
All your calculations should be made to the nearest £000.