a) Assume that yesterday (April 22, 2020) the interest rate on dollar deposits in the U.S. was 0.02 (2%) per year and the interest rate on euro deposits was 0.02 (2%) per year. Investors yesterday expected that the exchange rate in one year (April 22, 2021) will be 2.02 dollars for one euro.

What was the current exchange rate in terms of dollars per euro yesterday (April 22, 2020)?

Illustrate your answer, using a graph with the rates of return (in dollars terms) on the horizontal axis, and the exchange rate on the vertical axis.

b) Now, assume that today (April 23, 2020) the Federal Reserve lowers the interest rate on dollar deposits to 0.01 (1%), and the European Central Bank lowers the interest rate on euro deposits to zero (0%). There is no change in the expected exchange rate a year from now - that is, on April 23, 2020 investors expect that the exchange rate on April 23, 2021 will be 2.02 dollars for a euro.

What is the current exchange rate today (April 23, 2020), right after the reductions in the interest rates? Has the dollar depreciated or appreciated between April 22 and April 23? Why? Is your answer consistent with the textbook’s claim that a reduction in the interest rate on dollar deposits should cause a depreciation of the dollar?

Illustrate your answer, using a new graph with the rates of return (in dollars terms) on the horizontal axis, and the exchange rate on the vertical axis.

c) What is the effect of the change in the exchange rate above (from April 22 to April 23, 2020) on exports of American goods to Europe? And on exports of European goods to the United States? Explain. (You don’t need to provide numbers, only the general direction of the changes: going up or going down). Who will benefit and who will lose from these changes in the United States?

d) Now, assume American exporters successfully lobby the Federal Reserve, and convince it to adopt a new monetary policy that will boost American exports. Thus, on April 24 the Federal Reserve decides to change the interest rate on dollar deposit once again, with the objective to cause a 1% depreciation of the dollar with respect to the euro (that is, a 1% increase in the amount of dollars required to buy a euro). Assume that the European Central Bank does not react to the new actions by the Federal Reserve, and that investors’ expectations about the future value of the euro remain unchanged (that is, they expect that the exchange rate on April 24, 2021 will be 2.02 dollars for a euro). What interest rate should the Federal Reserve select in order to achieve its objective? Explain.

Illustrate your answer, using a new graph with the rates of return (in dollars terms as usual) on the horizontal axis, and the exchange rate on the vertical axis.

e) Now assume that, unlike in part d), investors, when they hear that the Federal Reserve intends to devaluate the dollar today, also adjust their expectations about the future: now, they expect that the exchange rate on April 24, 2021 will be 2.0402 rather than 2.02. What interest rate should the Federal Reserve select now, on April 24, 2020, in order to achieve its goal of depreciating the dollar by 1% from April 23 to April 24? Explain (no need to illustrate this answer graphically, just give the answer in words).

FRUGAL SANITARY TOWELS

ARUNACHALAM MURUGANANTHAM AIMS TO TRANSFORM THE LIVES OF INDIAN WOMEN WITH A FUNDAMENTAL INNOVATION

High school drop-out and welder Arunachalam Muruganantham has developed a low-cost sanitary towel the hard way. In India, only 12 percent of women can afford to use sanitary towels for their monthly periods, the rest making do with old rags and even husks or sand. As Muruganantham’s wife explained to him, if she bought the expensive sanitary towels on the market, the family would have to do without milk. But the cost for many women is infections and even cervical cancer. Muruganantham determined to find a cheap way of supplying Indian women with proper sanitary towels. In Indian society, however, the issue was taboo. The local hospital was unhelpful, and even Muruganantham’s wife and sisters refused to talk about the problem. A survey of college girls failed. Muruganantham’s prototypes were scorned by his wife. At his wits’ end, Muruganantham experimented on himself, carrying a bladder inflated with goat’s blood while wearing one of his own sanitary towels and women’s undergarments. His tests while walking and cycling around the village created a local scandal. His wife moved out. Muruganantham characterized the issue as a ‘triple-A problem – Affordability, Availability and Awareness’. But after four years of research, he finally built a machine for producing sanitary towels at less than half the price of those offered by rivals such as Procter & Gamble and Johnson & Johnson. The machines are cheap and handoperated, enabling small-scale local production by units employing six to ten women each. Muruganantham believes that the small businesses using his machines could create up to one million jobs: ‘The model of massproduction is outdated. Now it is about production by the mass of people.’ Muruganantham sells the machines to NGOs, local entrepreneurs, charities and selfhelp groups, who produce the sanitary towels without fancy marketing. A manual machine costs around 75,000 Indian rupees (£723, €868, $1084) – a semi-automated machine costs more. Often the women who make the towels are the best marketers, passing on the benefits by wordof-mouth. Towels are often sold singly rather than in bulk packets and are even sold through barter. Muruganantham explains the marketing: ‘It’s done silently and even the male members of their families don’t know.’ Slowly but surely his machines spread all over India with operations in 23 states. By 2015, his company, Jayaashree Industries, had expanded to 17 other countries including Kenya, Bangladesh, Nigeria, and Myanmar. He employs over 20,000 women in rural India and the enterprise has been valued at over a billion dollars by some analysts. Muruganantham has become a globally renowned frugal innovator and motivational speaker. His machine was entered in a competition for a national innovation award and came first out of 943 entries; he received the award by the then President of India. He was also ranked by Time magazine as one of 100 most influential people in the world in 2014 and was invited to give a lecture at Harvard. His wife has moved back in with him. Muruganantham was confident about the sustainability of his model: ‘We compete very comfortably with the big giants (such as Procter & Gamble). That’s why they call me the corporate bomber.

Q1

- Identify the various features of Muruganantham’s approach that make his sanitary towel business a typical or not so typical ‘frugal innovation?

For this assignment, you will be analyzing the Java™ code in the linked Week 3 Analyze Assignment Zip File, and predicting the results. You will also examine both the code and the output for inconsistencies and clarity. This Java™ code includes examples of for, while, and do-while loops.

Carefully read through the code line by line, then answer the following questions in a Microsoft^® Word document:

1. What is the output of the program as it is written?
2. What improvement(s) could be made to this code to make the output clearer or more accurate, or to make the code easier to maintain?

Note: You do not have to make the improvements in the Java™ program, although you certainly may. For this assignment, simply describe the things you see that would need to be improved to elevate the code and output to a more professional level. For the code, consider variable names and hardcoding. For the output, consider formatting/punctuation, repetition, accuracy of information, and wording.

/**************************************************************************************
* Program: PRG/420 Week 3
* Purpose: Week 3 Analyze Assignment
* Programmer: Iam A. Student   
* Class: PRG/420   
* Creation Date: 10/22/17
******************************************************************************************
* Program Summary: For, while, and do-while loops
*
* This program demonstrates the syntax for the for, while, and do-while loops. It also
* contains comments that explain why a programmer would use a for loop over a while or do-while
* loop.
*
* Notice the increment operator (i++) and also notice the copious use of println() statements.
* Using System.out.println() is an excellent way to debug your code--especially if your loop code
* is giving unexpected results.
*****************************************************************************************/

package PRG420Week3_AnalyzeAssignment;

public class PRG420Week3_AnalyzeAssignment {

public static void main(String[] args) {
  
// for loops are a good choice when you have a specific number of values
// you want to iterate over and apply some calculation to.
System.out.println("FOR LOOP - Here are the taxes on all 10 prices:");
  
double taxRate = 0.08;
for (int price=1; price<=10; price++) {
System.out.println("The 8% tax on " + price + " dollar(s) is " + "$" + (price * taxRate));
}
System.out.println(""); // Leave a blank space
  
// while loops are a good choice when you're looking through a pile of values
// and want to execute some logic while some condition is true.
// while loops MAY OR MAY NOT EVER EXECUTE, depending on the counter value.
int dollars=1;
System.out.println("WHILE LOOP - Here are the taxes on prices less than $5:");
while (dollars < 5) {
System.out.println("The 8% tax on " + dollars + " dollar(s) is $" + (dollars * taxRate));
dollars++;
}
System.out.println(""); // Leave a blank space
  
// do-while loops are also a good choice when you're looking through a pile of values
// and want to execute some logic while some condition is true.
// do while loops ALWAYS EXECUTE AT LEAST ONCE, no matter what the counter value.
// For example, in the code below, we want to print out the tax only on those
// amounts smaller than $1. But because we're using the do-while loop, the code
// will execute the body of the loop once before it even checks the condition! So
// we will get an INCORRECT PRINTOUT.
dollars=1;
  
System.out.println("DO-WHILE LOOP - Here are the taxes on prices less than $1:");
  
do {
System.out.println("The 8% tax on " + dollars + " dollar(s) is $" + (dollars * 0.08));
dollars++;
} while (dollars < 1);
}
}

Tony and Jeannie Nelson are married and file a joint return. They have four children whose ages are: 12,15,19 & 23. The three youngest live at home with their parents and qualify as their dependents. The oldest Roger got married on 5/5 2019 and lives with his wife, Jane. The 19-year old Tabitha is studying Fine Arts at Savannah College of Art & Design. During the summer she helps her mother put together the art exhibits. They provide you with the following information regarding their 2019 upcoming tax return:

1) Tony Nelson is an aerospace engineer he runs an engineering firm, Nelson Engineering (NE), as a sole proprietorship since 2010

. a) NE has very lucrative contracts with numerous aerospace companies and during 2019 it earned $702,000.

b) NE rents an office downtown where they meet with clients and conducts business. The rent includes all utilities. NE paid $38,000 in rent expense in 2019. In December 2019 the landlord offered to maintain the same yearly rent cost and Tony could receive an additional month's rent for free if he prepaid his 2020 year rent in advance. Tony agreed and paid an additional $38,000 on December 1, 2019 to cover January 2020 through January 2021 rent.

c) NE obtained a business loan from SunTrust Bank and paid $2,400 in prepaid interest for June 1, 2019 through May 30, 2020.

d) NE has a few employees, including an electrical engineer, a part-time engineering intern and an office manager. The combined wages for these employees is $196,000. Payroll taxes including for these employees is $15,000.

e) Tony took different business clients to see several home Miami Heat games followed by dinners at nearby restaurants where business was discussed. The meals were not considered lavish. The total cost for the Heat tickets and accompanying meals were $1,200 and $800, respectively.

f) In March 2019, Tony flew to a two-day engineering convention held in Phoenix, AZ requiring a two-night hotel stay. While there, Tony noted that the convention dress code was formal when he thought it would be casual. Tony immediately purchased a business suit for $300 (not considered lavish) at a nearby department store. All food costs were covered by the convention organizers. Other trip costs that Tony paid were airplane ticket $400 and hotel lodgings cost $200/night.

g) The depreciation for the year on the fixed assets owned by NE are estimated to total $3,400. Exam 2 – Take Home 2 h) All of NE’s business transactions are properly documented and supported by receipts/invoices. In addition to deductible portion of the items listed above the business will have an additional $4,400 of deductible other expenses.

The post-closing trial balance of M/S. Sun Traders at 31 March 2020 is set out below
Sun Tarders
Post Closing Trial Balance
As on 31St March 2020

On the above date, Akbar retired, and the following arrangements were agreed upon:
a. Goodwill of the firm is to be valued at OMR 24,000.
b. The assets and liabilities are to be valued as: Stock OMR 12,000, Sundry Debtors
OMR.10,500, Land and Building OMR 22,600, Plant and Machinery OMR25,000 and
Sundry Creditors OMR 14,000.
c. To bring into books unrecorded investments OMR 1,000
d. Babar and Khan were to introduce OMR20,000 and OMR5,000 respectively into the business and OMR16,200 was to be paid immediately and balance transfer to loan accounts.
e. Bills payable were unrecorded to the extent of OMR1,000
f. Babar and Khan agreed not to retain goodwill in books.
g. Akbar, Babar and Khan profit and loss sharing ratio are 4:2:1 respectively.

You are required to pass necessary Journal entries with proper narrations to record the above transactions. Prepare revaluation account, capital accounts, bank account and financial position of the new firm as at 1st April 2020, after all above arrangement have been completed. Write down the impact of retirement with explanations values in the new balance sheet.

The post-closing trial balance of M/S. Sun Traders at 31 March 2020 is set out below
Sun Tarders
Post Closing Trial Balance
As on 31St March 2020

On the above date, Akbar retired, and the following arrangements were agreed upon:
a. Goodwill of the firm is to be valued at OMR 24,000.
b. The assets and liabilities are to be valued as: Stock OMR 12,000, Sundry Debtors
OMR.10,500, Land and Building OMR 22,600, Plant and Machinery OMR25,000 and
Sundry Creditors OMR 14,000.
c. To bring into books unrecorded investments OMR 1,000
d. Babar and Khan were to introduce OMR20,000 and OMR5,000 respectively into the business and OMR16,200 was to be paid immediately and balance transfer to loan accounts.
e. Bills payable were unrecorded to the extent of OMR1,000
f. Babar and Khan agreed not to retain goodwill in books.
g. Akbar, Babar and Khan profit and loss sharing ratio are 4:2:1 respectively.

You are required to pass necessary Journal entries with proper narrations to record the above transactions. Prepare revaluation account, capital accounts, bank account and financial position of the new firm as at 1st April 2020, after all above arrangement have been completed. Write down the impact of retirement with explanations values in the new balance sheet.

Sassbot and Block Ness Monster play roller derby for the Reservoir Dolls, a roller derby team in Madison, Wisconsin. In a particular bout against the Unholy Rollers, another Madison team, Sassbot is playing the position of jammer: she must pass members of the Unholy Rollers in order to score points. Block Ness Monster is playing as a blocker: she must help Sassbot while also stopping the Unholy Rollers’ jammer. During a crucial moment in the bout, Monster sees that Sass, a few feet in front of her, is about to get hit by Skullz B. Kraken, a member of the Unholy Rollers. Monster reaches Sass quickly and pushes her forward, attempting to give Sass a boost of speed so she is out of the Skullz’s reach. Monster pushes Sass straight forward, delivering the push at Sass’s center of mass, her lower back, so that Sass does not experience any rotation due to the push. Neither Monster nor Sass are using their wheels to brake immediately before, during, or after the push, so the outside forces on them are negligible. Monster’s mass is 82 kg. Sass’s mass is 55 kg. Monster’s speed before the push is 2 m·s−1, and Sass’s speed before the push is 0.75 m·s−1. Monster and Sass have found, in previous practice, that the average coefficient of restitution of this sort of push between them is 0.8. The coefficient of restitution is defined as the ratio of the difference in two objects’ velocities after the collision to that of the difference in the objects’ velocities before the collision. e = v2,f − v1,fv2,i − v1,i At the moment Monster finishes her push, Skullz is 0.75 m to the left and 1.1 m in front of Sass. Skullz is moving laterally (to the right) at a speed of 2.15 m·s−1 in her attempt to hit Sass. Sass is moving directly forward after Monster’s push. Will Sass get hit by Skullz or will she get past her in time?

How long will it take Sass to travel forward past Skullz’s position?

Laura Leasing Company signs an agreement on January 1, 2020, to lease equipment to Vaughn Company. The following information relates to this agreement.

Prepare all of the journal entries for the lessee for 2020 to record the lease agreement, the lease payments, and all expenses related to this lease. Assume the lessee’s annual accounting period ends on December 31. (For calculation purposes, use 5 decimal places as displayed in the factor table provided and round answers to 2 decimal places, e.g. 5,265.25. Credit account titles are automatically indented when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem.)

Ayayai Corp., a public company incorporated on June 28, 2019, set up a single account for all of its intangible assets. The following summary discloses the debit entries that were recorded during 2019 and 2020 in that account:

INTANGIBLE ASSETS-AYAYAI
July
1,   2019       8-year franchise; expiration date of June 30, 2027       $42,000
Oct.
1           Advance payment on office lease (2-year lease)
28,000
Dec.   31
Net loss for 2019 including incorporation fee, $1,000; related legal fees of organizing, $5,100;
expenses of recruiting and training staff for start-up of new business, $3,700       17,000
Feb.
15,   2020       Patent purchased (10-year life)
74,400
Mar.   1           Direct costs of acquiring a 5-year licensing agreement
75,000
Apr.   1           Goodwill purchased (indefinite life)
278,400
June   1           Legal fee for successful defence of patent (see above)
12,815
Dec.   31           Costs of research department for year
75,000
31           Royalties paid under licensing agreement (see above)
2,775

The new business started up on July 2, 2019. No amortization was recorded for 2019 or 2020. The goodwill purchased on April 1, 2020, includes in-process development costs that meet the six development stage criteria, valued at $173,000. The company estimates that this amount will help it generate revenues over a 10-year period.

(a)

Prepare the necessary entries to clear the Intangible Assets account and to set up separate accounts for distinct types of intangibles. Make the entries as at December 31, 2020, and record any necessary amortization so that all balances are appropriate as at that date. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Round answers to 0 decimal places, e.g. 5,275.)

Date
Account Titles and Explanation
Debit
Credit
Dec. 31, 2020

(To clear Intangible Assets account)
Dec. 31, 2020

(To correct for amortization on franchises)
Dec. 31, 2020

(To correct for rent payments)
Dec. 31, 2020

(To record amortization
expense on patents)
Dec. 31, 2020

(To record amortization
expense on licences)
Dec. 31, 2020

(To record amortization expense
on development cost)

Are the types of positions held in the IT industry independent of how long individuals have worked in the industry? Researchers determine the position held and years in the industry for 246 individuals working in the IT industry. The data can be found in the excel file job. Run the appropriate tests and place the screen shot of your MiniTab or excel output below.

Run all tests at the 5% significance level. When running a chi square test for association, you MUST check off “each cell’s contribution to Chi-Square” in MiniTab (this is found by selecting “statistics” when in the test dialog box). If using Excel you must complete these by hand within excel.When running a one-way or two-way ANOVA test, also perform a Fisher’s LSD comparison test for any significant factors, at the 5% significance level.