You are considering taking a 3-year hiatus from school to open a cupcake business. You estimate the upfront capital expenditure will be $40,000 for equipment, which at the end of the 3-year project life will have a salvage value of $16,000. (Ignore terminal tax effects.) The CCA rate is 20%. You also estimate that you will need upfront Net Working Capital of $6,000 and that Net Working Capital needs thereafter will be 20% of Sales. (Assume recovery of NWC at conclusion of project.) In the first year of business, you expect to sell 15,000 cupcakes, and unit growth you expect to be 7%. You will price the cupcakes at $4.00 each and will keep this price constant over all three years despite inflation. Initially the cost to make each cupcake will be $1.50. Initial Fixed Costs are expected to be $10,000. Fixed Costs as well as Variable Costs will increase with inflation which is expected to be 3%. The Tax Rate is 25%, and your Cost of Capital is 9%. Financially, should you go ahead with your cupcake project and is the payback period within 3 years?

The executive education (EE) unit at the Business School of Central State University offers both open-enrollment (anyone can sign up) and custom (designed for a specific client) executive education programs. CSU has just received an inquiry from a prospective client about its prices for leadership seminars. The prospective client wants bids for three alternative activity levels: (1) one seminar with 20 participants, (2) four seminars with 20 participants each (80 participants total), or (3) eight seminars with 140 participants in total. EE’s cost analyst has provided the following differential cost estimates.

In addition to the preceding differential costs, EE allocates fixed costs to jobs on a direct-labor-cost basis, at a rate of 80 percent of direct labor costs (excluding setup costs). For example, if direct labor costs are $100, EE would also charge the job $80 for fixed costs. EE charges clients for its costs plus 20 percent. For the purpose of charging customers, costs equal the setup costs plus materials costs plus differential labor costs plus allocated fixed costs. EE has enough excess capacity to handle this job with ease.

Required:

a. Assume EE's bid equals the total cost, including fixed costs allocated to the job, plus the 20 percent markup on cost. What should EE bid for each of the three levels of activity?

b. Compute the differential cost (including setup costs) and the contribution to profit for each of the three levels of activity. Note that fixed costs are not differential costs.

c. Assume the prospective client gives three options. It is willing to accept either of EE's bids for the one-seminar or four-seminar activity levels, but the prospective client will pay only 90 percent of the bid price for the eight-seminar package. EE's director responds, "We can't make money in this business by shaving our bids! Let's take the four-seminar option because we make the most profit on it."

c-1. What would be the contribution to profit for each of the three options?

c-2. Do you agree with the EE's director?

Bramble Corp. designs and manufactures mascot uniforms for high school, college, and professional sports teams. Since each team’s uniform is unique in color and design, Bramble uses a job order costing system. On January 1, the T-accounts for some of Bramble’s primary balance sheet accounts were as follows:

Raw Materials Inventory Work in Process Inventory

Beg. 16,400     Beg. 30,900    

Finished Goods Inventory Cash

Beg. 27,100     Beg. 31,200    

Accounts Receivable Accounts Payable

Beg. 58,500         Beg. 40,800

During the year, the following events occurred:

1.Bramble purchased raw materials costing $87,500 on account.

2.Bramble used $93,000 of raw materials in production. Of these, 70% were classified as direct materials and 30% as indirect materials. (Bramble maintains a single Raw Materials Inventory account.)

3.Bramble used 38,100 hours of direct labor. The company’s average direct labor rate was $8 per hour (credit Wages Payable).

4.The company’s only indirect labor cost was the salary of a security guard hired to watch the company’s shop after hours. The guard’s annual salary was $26,200 (credit Wages Payable).

5.Other manufacturing overhead costs the company incurred on account totaled $69,000.

6.Bramble applied $132,000 in manufacturing overhead.

7.The company completed production of goods costing $325,000.

8.The company’s Cost of Goods Sold balance was $303,750 before adjusting for over- or underapplied overhead.

9.Sales revenue was $449,000 (all sales were made on account).

10.Bramble collected $407,000 from customers.

11.The company paid accounts payable of $107,000.

12.At year-end, all wages earned during the year had been paid.

(a)

Record the transactions above in the appropriate T-accounts and calculate ending balances. (Post entries in order presented in the problem.)

The executive education (EE) unit at the Business School of Central State University offers both open-enrollment (anyone can sign up) and custom (designed for a specific client) executive education programs. CSU has just received an inquiry from a prospective client about its prices for leadership seminars. The prospective client wants bids for three alternative activity levels: (1) one seminar with 20 participants, (2) four seminars with 20 participants each (80 participants total), or (3) eight seminars with 140 participants in total. EE’s cost analyst has provided the following differential cost estimates.

In addition to the preceding differential costs, EE allocates fixed costs to jobs on a direct-labor-cost basis, at a rate of 70 percent of direct labor costs (excluding setup costs). For example, if direct labor costs are $100, EE would also charge the job $70 for fixed costs. EE charges clients for its costs plus 30 percent. For the purpose of charging customers, costs equal the setup costs plus materials costs plus differential labor costs plus allocated fixed costs. EE has enough excess capacity to handle this job with ease.

Required:

a. Assume EE's bid equals the total cost, including fixed costs allocated to the job, plus the 30 percent markup on cost. What should EE bid for each of the three levels of activity?

b. Compute the differential cost (including setup costs) and the contribution to profit for each of the three levels of activity. Note that fixed costs are not differential costs.

c. Assume the prospective client gives three options. It is willing to accept either of EE's bids for the one-seminar or four-seminar activity levels, but the prospective client will pay only 80 percent of the bid price for the eight-seminar package. EE's director responds, "We can't make money in this business by shaving our bids! Let's take the four-seminar option because we make the most profit on it."

c-1. What would be the contribution to profit for each of the three options?

c-2. Do you agree with the EE's director?

Wells Technical Institute (WTI), a school owned by Tristana Wells, provides training to individuals who pay tuition directly to the school. WTI also offers training to groups in off-site locations. Its unadjusted trial balance as of December 31, 2017, follows. WTI initially records prepaid expenses and unearned revenues in balance sheet accounts. Descriptions of items athrough h that require adjusting entries on December 31, 2017, follow.
  
Additional Information Items

1. An analysis of WTI's insurance policies shows that $3,203 of coverage has expired.
2. An inventory count shows that teaching supplies costing $2,776 are available at year-end 2017.
3. Annual depreciation on the equipment is $12,814.
4. Annual depreciation on the professional library is $6,407.
5. On November 1, WTI agreed to do a special six-month course (starting immediately) for a client. The contract calls for a monthly fee of $2,700, and the client paid the first five months' fees in advance. When the cash was received, the Unearned Training Fees account was credited. The fee for the sixth month will be recorded when it is collected in 2018.
6. On October 15, WTI agreed to teach a four-month class (beginning immediately) for an individual for $3,600 tuition per month payable at the end of the class. The class started on October 15, but no payment has yet been received. (WTI's accruals are applied to the nearest half-month; for example, October recognizes one-half month accrual.)
7. WTI's two employees are paid weekly. As of the end of the year, two days' salaries have accrued at the rate of $100 per day for each employee.
8. The balance in the Prepaid Rent account represents rent for December.

Required:
1. Prepare the necessary adjusting journal entries for items a through h. Assume that adjusting entries are made only at year-end.

2-a. Post the balance from the unadjusted trial balance and the adjusting entries in to the T-accounts.
2-b. Prepare an adjusted trial balance.

3-a. Prepare Wells Technical Institute's income statement for the year 2017.
3-b. Prepare Wells Technical Institute's statement of owner's equity for the year 2017.
3-c. Prepare Wells Technical Institute's balance sheet as of December 31, 2017.

A) Knowing what's best for my patient will be the most difficult concept throughout my nursing school career. Converting over to the metric system will conceptually take time to get used to since America is on their own system (customary system) in life but then medicine follows the metric system like the rest of the world. The values are easier to memorize as it is by the power of ten but I still need to really learn those pre- and suffixes. Stoichiometry and balancing equations was the easiest concept.  I have sectioned out a file to allow me to look back at some information from class when going through classes like Pharm. During lower stress weeks, I'd try to break down the medications and look at their chemical products and reactions so that I do not lose the skills and understanding. Constantly giving attention to how various medications work for some and not others based on underlying health issues, age and even their environment will be most interesting.

B)There are lots of parts of Chemistry that I find confusing, one area I find confusing would be titration and the calculations because of all the steps that has to be done and it confuses me. I think that throughout my degree program I will practice it enough that I will get the hang of it. I could also find practice questions that I could work on to help me understand it more and more. Although chemistry can be confusing the concepts will be very useful in my nursing career.

(20) 2.A school boasts of its tutoring program offered to students. Two samples of 71 students each are taken. The first sample consists of students who have not taken part in the tutoring program while the second sample consists of students who have taken part in the tutoring program. An aptitude test was given to both samples. The first sample showed a mean score of 150 with a standard deviation of 20 while the second sample showed a mean score of 158 with a standard deviation of 23. Using a significance level of 1%, can you conclude that the two samples are different?

The community health nurse discusses fire safety at the local school meeting because each year thousands of children are hurt or die in home fires. The United States Fire Administration is working with the American Academy of Pediatrics to deliver important messages to parents. The community health nurse discussed “prepare, practice, and prevent.” Prepare to make the home safer from fire; practice fire safety and a home fire escape plan to prevent the unthinkable.

1. What can parents do to make their home safer?

2. How can a toddler learn about fire safety?

3. What other general safety tips for parents should the nurse share at this meeting?

The executive education (EE) unit at the Business School of Central State University offers both open-enrollment (anyone can sign up) and custom (designed for a specific client) executive education programs. CSU has just received an inquiry from a prospective client about its prices for leadership seminars. The prospective client wants bids for three alternative activity levels: (1) one seminar with 20 participants, (2) four seminars with 20 participants each (80 participants total), or (3) eight seminars with 140 participants in total. EE’s cost analyst has provided the following differential cost estimates.

In addition to the preceding differential costs, EE allocates fixed costs to jobs on a direct-labor-cost basis, at a rate of 75 percent of direct labor costs (excluding setup costs). For example, if direct labor costs are $100, EE would also charge the job $75 for fixed costs. EE charges clients for its costs plus 25 percent. For the purpose of charging customers, costs equal the setup costs plus materials costs plus differential labor costs plus allocated fixed costs. EE has enough excess capacity to handle this job with ease.

Required:

a. Assume EE's bid equals the total cost, including fixed costs allocated to the job, plus the 25 percent markup on cost. What should EE bid for each of the three levels of activity?

b. Compute the differential cost (including setup costs) and the contribution to profit for each of the three levels of activity. Note that fixed costs are not differential costs.

c. Assume the prospective client gives three options. It is willing to accept either of EE's bids for the one-seminar or four-seminar activity levels, but the prospective client will pay only 85 percent of the bid price for the eight-seminar package. EE's director responds, "We can't make money in this business by shaving our bids! Let's take the four-seminar option because we make the most profit on it."

c-1. What would be the contribution to profit for each of the three options?

c-2. Do you agree with the EE's director?