Assume that Morrison Company used cash to acquire machinery expected to contribute to the generation of revenues over a three-year period and the company erroneously expensed the cost to acquire the machine.

a. Describe the effects on ROA of the error over the three-year period.

b. Explain how the error would affect the statement of cash flows.

What is the difference between sweet cream butter, cultured butter, clarified butter, and margarine?

Describe how ice crystals, concentrated cream, and air all contribute to the final structure of ice cream.

What is the difference between a personal and an enterprise-level DBMS?

As a manager, how would you be able to contribute to a new DBMS selection process of your company regardless of the department where you work?

Evaluating customer profitability

You own a credit card company. You want to evaluate the profitability of customers A and B.

The only source of revenue from customers is the interest that you charge on credit card balances. You charge customers an interest rate of 10%. Thus, if the credit card balance is $1,000, revenue is $1000*0.1=$100.
Variable costs are zero for simplicity. From your ABC system, the activity rates are $0.25 per transaction and $2 per customer-support call.

a) Compute revenue, costs, and profit margin for each customer.

Enter negative numbers with a minus sign, i.e., a loss of $200 should be entered as -200, not as (200) or ($200).

And now here we are…a Starbucks on nearly every corner. Even Homer Simpson had something to say about this in a recent episode! This is where I need your help. I would like you to perform a thorough analysis of the data involving the number of Starbucks locations. Our investors are interested to know about the rate of growth as well as to understand issues related to forecasting the number of Starbucks locations in the future. And specifically, we are wondering when the number of stores will reach 37,000 locations. You see, there are currently 37,000 McDonald’s restaurants worldwide, and we have set a goal to reach that number by the year 2020. Do you think we can do it?

1. identify the initial value and the growth rate of your exponential model and explain what they mean in context of Starbucks Stores. Put your explanations in a text box.
2. How well does the exponential function compare to the data from the Starbucks Company Time Line? Answer in a short paragraph in a text box.
3. Use your exponential model to predict when Starbucks will match McDonald’s for the number of locations.

For each of the following two-samples t-tests (problems 1-6): (a) Determine if a F test for the ratio of two variances is appropriate to calculate for the context. If it is appropriate, conduct the analysis and report the result. Include what statistical conclusion you should draw from the analysis (i.e., whether you should conduct a pooled-variance t-test or an unequal-variances t-test). (b) Identify the most appropriate t-test to conduct for the situation/data given. Don’t forget to consider if the context requires one/two-tail tests. (c) Provide a statistical and practical interpretation of your findings.

3. How does cellphone service compare between different cities? The data stored in CellService represents the rating of Verizon and AT&T in 22 different cities (Data extracted from “Best Phones and Services,” Consumer Reports, January 2012, p. 28, 37). Is there evidence of a difference in the mean cellphone service rating between Verizon and AT&T? (Use a 0.05 level of significance)

Match the following terms to the appropriate statement by placing the letter to the left of each statement.

How much heat is required to convert 74 grams of ice at -4 C into 74 grams of water at 52 c

Articulation Exercise

Listed below are selected account balances for Moby Corporation at December 31, Year 2 and Year 1. Also available for you is selected information from the income statement for Moby for the year ended December 31, Year 2.

Selected balance sheet accounts:       Year 2                                       Year 1

Assets:

Accounts Receivable                           $18                                           $22

Prepaid Salaries                                     8                                              7

Prepaid Rent                                         3                                              5

Property, Plant & Equipment                310                                           283

(Accumulated Depreciation)                (75)                                          (68)

Investments                                         26                                             24

Liabilities & Stockholders’

Equity:

Salaries Payable                                   12                                              9

Unearned Sales Rev.                              4                                              1

Notes Payable                                     39                                             34

Dividends Payable                                 6                                              4

Contributed Capital                              32                                             24

Retained Earnings                                42                                             39

Selected income statement information for the year ended December 31, Year 2:

Sales revenue                                     $74

Depreciation                                       18

Salaries Expense                                  27

Gain on sale of equipment                       7

Loss on sale of investments                     3

Net Income                                         21

Additional information:

1. During Year 2, Property, Plant & Equipment costing $26 was sold causing a gain.
2. During Year 2, $22 of Notes Payable were issued in exchange for Property, Plant and Equipment. This involves an exchange of Notes Payable for Property, Plant and Equipment.
3. During Year 2, the firm sold Investments for $8 cash.

Required: Determine the correct dollar amounts for each of the following items. Place your answers in the spaces provided.

1. Cash paid for salaries in Year 2.                                                                  $_________                                              
2. Payments for the purchase of Investments in Year                                        $_________           

3. Notes Payable paid off in Year 2.                                                                 $_________                                                           

4. Cash dividends paid in Year 2                                                                     $_________                      
5. Cash received from the sale of Property, Plant and Equipment in Year 2              $_________                                                           
6. Cash paid for Property, Plant & Equipment in Year 2                                      $_________           

7. Cash collected from customers in Year 2                                                         $_________

Articulation Exercise

Listed below are selected account balances for Moby Corporation at December 31, Year 2 and Year 1. Also available for you is selected information from the income statement for Moby for the year ended December 31, Year 2.

Selected balance sheet accounts:       Year 2                                       Year 1

Assets:

Accounts Receivable                           $18                                           $22

Prepaid Salaries                                     8                                              7

Prepaid Rent                                         3                                              5

Property, Plant & Equipment                310                                           283

(Accumulated Depreciation)                (75)                                          (68)

Investments                                         26                                             24

Liabilities & Stockholders’

Equity:

Salaries Payable                                   12                                              9

Unearned Sales Rev.                              4                                              1

Notes Payable                                     39                                             34

Dividends Payable                                 6                                              4

Contributed Capital                              32                                             24

Retained Earnings                                42                                             39

Selected income statement information for the year ended December 31, Year 2:

Sales revenue                                     $74

Depreciation                                       18

Salaries Expense                                  27

Gain on sale of equipment                       7

Loss on sale of investments                     3

Net Income                                         21

Additional information:

1. During Year 2, Property, Plant & Equipment costing $26 was sold causing a gain.
2. During Year 2, $22 of Notes Payable were issued in exchange for Property, Plant and Equipment. This involves an exchange of Notes Payable for Property, Plant and Equipment.
3. During Year 2, the firm sold Investments for $8 cash.

Required: Determine the correct dollar amounts for each of the following items. Place your answers in the spaces provided.

1. Cash paid for salaries in Year 2.                                                                  $_________                                              
2. Payments for the purchase of Investments in Year                                        $_________           

3. Notes Payable paid off in Year 2.                                                                 $_________                                                           

4. Cash dividends paid in Year 2                                                                     $_________                      
5. Cash received from the sale of Property, Plant and Equipment in Year 2              $_________                                                           
6. Cash paid for Property, Plant & Equipment in Year 2                                      $_________           

7. Cash collected from customers in Year 2                                                         $_________