You are interested in the development of numeracy in childhood and want to understand the impact a child attending preschool has on their understanding of numbers. You believe that preschool can strongly improve a child’s numeracy skills. You collect data from 8 children using a numeracy measure where an increased score indicates increased numerical ability. You collect data from each child before they start preschool as well as after they complete preschool.

A. Write out your null and alternative hypotheses.

B. Conduct the statistical test using alpha .05

C. Determine whether the result is significant or not and make your decision regarding the null hypothesis.

D. Explain your finding in terms of your research question. In other words, what has this shown us about preschool and numeracy?

Student      Before preschool     After preschool

1                             45                        43

2                             33                        39

3                             46                        50

4                             49                        49

5                             28                        31

6                             43                        46

7                             36                        34

8                             37                        38

1. A shortcoming of return on investment (ROI) is that it may not lead managers to accept good investment opportunities if

   2.   Which of the following statements is true concerning economic value added (EVA)?

   3.   Which of the following defines Economic value added (EVA)?

6.

Question 6

John Jones is deciding on one of two career choices, before retiring in 40 years time.

Choice 1

John can go to a prestigious graduate school for two years and obtain a degree. Including tuition and living expenses, he expects to pay $75,000 at the end of each year for two years while at school. After graduating, he expects to land a demanding job that pays $150,000 at the end of the third year, and grows at a constant rate of 5% each year (so at the end of the fourth year he expects 150,000*1.05 etc.) He will retire in 38 years after finishing graduate school.

Choice 2

John can continue in his present job. He expects to be paid $84,000 at the end of the year, and expects his salary to increase by 6% every year, paid at the end of each year. He expects to work for 40 years before retiring.

If John’s discount rate is 10%, which career choice should he pursue?

conclusion summary at the end show formulas

Question 6 John Jones is deciding on one of two career choices, before retiring in 40 years time. Choice 1 John can go to a prestigious graduate school for two years and obtain a degree. Including tuition and living expenses, he expects to pay $75,000 at the end of each year for two years while at school. After graduating, he expects to land a demanding job that pays $150,000 at the end of the third year, and grows at a constant rate of 5% each year (so at the end of the fourth year he expects 150,000*1.05 etc.) He will retire in 38 years after finishing graduate school.

Choice 2 John can continue in his present job. He expects to be paid $84,000 at the end of the year, and expects his salary to increase by 6% every year, paid at the end of each year. He expects to work for 40 years before retiring. If John’s discount rate is 10%, which career choice should he pursue?

Please use formulas if needed so I understand.

Consider the IS-LM and aggregate demand/aggregate supply model of Chapters 11 and 12. Consider a reduction in the level of taxes, starting from an initial situation in which output is equal to its natural level.

a) Depict the short-run effects of the reduction in T using 3 graphs: one for the market for goods and services, one for the IS-LM curves, and one for the Aggregate Demand and Supply curves. How do the new short-run equilibrium values of r, Y and P compare to the initial ones? (i.e., are they higher, lower or equal?)

b) Depict the transition from the short-run to the long run. To do this, draw 3 new graphs (with the same variables as before), in which the initial situation is the short-run equilibrium after the decrease in T. How do the long-run equilibrium values of r, Y and P after the shock in T compare to ones before that shock?

Note: be sure to label: i. the axes; ii. the curves; iii. the initial equilibrium values; iv. the direction the curves shift (including the initial adverse shock); and v. the terminal equilibrium values.

Today is 15 April 2020.

You are an audit manager of QUTPG Partners and are planning the audit of RST Co for the year ending 30 June 2020. The company is a manufacturer of digital devices and your have already had a planning meeting, with the finance director. Forecast revenue is $137.2m and profit before tax is $8.4m. The following notes from the planning meeting have been given to you.

Planning Meeting Notes

• RST Co holds inventory in four warehouses in Brisbane, Sydney, Melbourne, and Canberra respectively. RST Co plans to conduct a full inventory stocktake at the warehouses on 1, 2, 3 and 4 July. Any necessary adjustments will be made to reflect post year-end movements of inventory. RST Co has an internal audit function and an internal audit team will attend the inventory counts. Inventories are measured at the lower of cost and net realisable value. Cost includes the purchase price of raw materials, labour and other production costs, and other general overheads including head office administrative costs.
• During the year, RST Co paid $2.2m to purchase a patent which allows the company the exclusive right for five years to customise their portable audio player to gain a competitive advantage in the market. The $2.2m has been expensed in the current year statement of profit or loss. To finance this purchase, RST Co raised $2.4m through new share issuance.
• It was discovered that, in January 2020, a significant fraud had been colluded by four employees in the sales ledger department by stealing funds from wholesale customer receipts. They allocated later customer receipts against the older receivables to cover the stolen funds. RST Co had reported to the police and subsequently dismissed the four employees.
• As a result of the vacancies in the sales ledger department, RST Co has outsourced its sales ledger processing to U Services, an external service organisation since 1March 2020. U Services handles all elements of the sales ledger cycle, including sales invoicing, chasing receivables balances, and sending monthly reports of sales and receivable amounts to RST Co.
• In December 2019, the financial accountant of RST Co was dismissed. He had been employed by the company for ten years, and he has threatened to sue the company for unfair dismissal. Until his replacement commences work in March, the financial accountant’s responsibilities have been allocated to other staff in the finance department. However, in January and February 2020, no reconciliations of supplier statement have been performed, and no reconciliations of purchase ledger control account have been performed.
• In January 2019, a receivable balance of $1.8m was written off by RST Co when a customer had declared bankruptcy. In February 2020, the liquidators of the customer company publicly announced that it was likely that most of its creditors would receive a pay-out of 30% of the balance owed. As a result, RST Co has included a current asset of $540,000 in the balance sheet and other income in the statement of profit or loss.

• Required:

  (a) Describe QUTPG Partners’ responsibilities in relation to the prevention and detection of fraud and error.

  (b) Describe EIGHT audit risks, and explain the auditor’s response to each risk in planning the audit of RST Co.

Wilkins Food Products, Inc., acquired a packaging machine from Lawrence Specialists Corporation. Lawrence completed construction of the machine on January 1, 2019. In payment for the machine Wilkins issued a three-year installment note to be paid in three equal payments at the end of each year. The payments include interest at the rate of 10%. Lawrence made a conceptual error in preparing the amortization schedule, which Wilkins failed to discover until 2021. The error had caused Wilkins to understate interest expense by $45,000 in 2019 and $40,000 in 2020.

Required:

1. Determine which accounts are incorrect as a result of these errors at January 1, 2021, before any adjustments. Explain your answer. (Ignore income taxes.)

2. Prepare a journal entry to correct the error.

3. What other step(s) would be taken in connection with the error?

BUSINESS LAW

Aaron has been asked by Mariappan to negotiate a business deal on his behalf with Tune Sdn Bhd. Mariappan has reminded Aaron to close the deal legally with Tune Sdn Bhd before the end of March 2020. Aaron agreed. The deal had been successfully negotiated but Mariappan found that Aaron had used the illegal means of obtaining confidential profits through the negotiation. Mariappan argued on how Aaron dealt with Tune Sdn Bhd. Aaron emphasized that it was a common method used in business. Mariappan need not worry since his instruction to obtain the contract had been successfully completed.
Under the principle of agency, how is the business deal supposed to be conducted? Support your answer with legal provision from the Contract Act 1950 and ONE (1) relevant case.
(10 markah / marks)

Volta is an international manufacturer of electric cars, and plans for a worldwide launch of its cars in 2020. Before doing so, Volta has asked you to advise it as to the general law on intellectual property. Secondly, Volta wishes to patent its (first in the world and novel) clean energy engine in Malaysia. Can it do so?

a) Advise how Volta specifically can patent its (first in the world and novel) clean energy engine. [10 marks]

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You are the Head of IT Security at a financial institution in Malaysia. Due to the rise in cyber crime in recent years, you have been asked to prepare a plan of action to combat phishing (for online transaction services provided by the financial institution).

a) How can phishing affect the financial institution? [10 marks]

b) How can the financial institution clients avoid being affected by phishing? [10 marks]

Chubbs Inc.’s manufacturing overhead budget for the first quarter of 2020 contained the following data.

Actual variable costs were indirect materials $14,800, indirect labor $9,200, utilities $9,300, and maintenance $5,200. Actual fixed costs equaled budgeted costs except for property taxes and insurance, which were $8,400. The actual activity level equaled the budgeted level.

All costs are considered controllable by the production department manager except for depreciation, and property taxes and insurance.

(a) Prepare a manufacturing overhead flexible budget report for the first quarter. (List variable costs before fixed costs.)

(b) Prepare a responsibility report for the first quarter.