SaveMor Pharmacies
A common practice now is for large retail pharmacies to buy the customer base from smaller, independent pharmacies. The way this works is that the buyer requests to see the customer list along with the buying history. The buyer then makes an offer based on its projection of how many of the seller's customers will move their business to the buyer's pharmacy and on how many dollars of new business will come to the buyer as a result of the purchase. Once the deal is made, the buyer and seller usually send out a joint letter to the seller's customers explaining the transaction and informing them that their prescription files have been transferred to the purchasing company.
The problem is that there is no guarantee regarding what proportion of the existing customers will make the switch to the buying company. That is the issue facing Heidi Fendenand, an acquisitions manager for SaveMor Pharmacies. SaveMor has the opportunity to purchase the 6,780-person customer base from Hubbard Pharmacy in San Jose, California. Based on previous acquisitions, Heidi believes that if 70% or more of the customers will make the switch, then the deal is favorable to SaveMor. However, if 60% or less make the move to SaveMor, then the deal will be a bad one and she would recommend against it.
Quincy Kregthorpe, a research analyst who works for Heidi, has suggested that SaveMor take a new approach to this acquisition decision. He has suggested that SaveMor contact a random sample of 20 Hubbard customers telling them of the proposed sale and asking them if they will be willing to switch their business to SaveMor. Quincy has suggested that if 15 or more of the 20 customers indicate that they would make the switch, then SaveMor should go ahead with the purchase. Otherwise, it should decline the deal or negotiate a lower purchase price.
Heidi liked this idea and contacted Cal Hubbard, Hubbard's owner, to discuss the idea of surveying 20 randomly selected customers. Cal was agreeable as long as only these 20 customers would be told about the potential sale.
Before taking the next step, Heidi met with Quincy to discuss the plan one more time. She was concerned that the proposed sampling plan might have too high a probability of rejecting the purchase deal even if it was a positive one from SaveMor's viewpoint. On the other hand, she was concerned that the plan might also have a high probability of accepting the purchase deal when in fact it would be unfavorable to SaveMor. After discussing these concerns for over an hour, Quincy finally offered to perform an evaluation of the sampling plan.

Required Tasks:
1. (7 points) Using Minitab, compute the probability that the sampling plan will provide a result that suggests that SaveMor should reject the deal even if the true proportion of all customers who would switch is actually 0.70.
Provide Minitab output of probabilities here

2. (7 points) Compute the probability that the sampling plan will provide a result that suggests that SaveMor should accept the deal even if the true proportion of all customers who would switch is actually only 0.60.
Provide Minitab output of probabilities here

3. (6 points) Write a short report to Heidi outlining the sampling plan, the assumptions on which the evaluation of the sampling plan has been based, and the conclusions regarding the potential effectiveness of the sampling plan. The report should make a recommendation about whether Heidi should go through with using the sampling plan.
Provide your short, well-written and professional report here

An insurance company has the business objective of reducing the amount of time it takes to approve applications for life insurance. The approval process consists of underwriting, which includes a review of the application, a medical information bureau check, possible requests for additional medical information and medical exams, and a policy compilation stage in which policy pages are generated and sent for delivery. The ability to deliver the policies to customers in a timely manner is critical to the profitability of the service. During a period of one month, a random sampling of 27 approved policies is selected, and the total processing time, in days, is collected. These data are stored in the table called Insurance.

73 19 16 64 28 28 31 90 60 56 31 56 31 56 22 18 45 48 17 17 17 91 92 63 50 51 69 16 17

A.         In the past, the mean processing time was 45 days. At the 0.05 level of significance, is there evidence that the mean processing time has changed in 45 days?

B.         What assumption about the population distribution is needed to conduct the t-test?

C.         Construct a boxplot or a normal probability plot to evaluate the assumption made in (b).

D. Do you think that the assumption needed in order to conduct the t-test in(a) is valid? Explain.

Use Excel to solve part C

1)

A company raises $100,000 cash by issuing common stock (CS). What is the effect of this transaction on the Balance Sheet?

A-- Liabilities Increase. Equity Increases.

B-- Assets Increase. Liabilities Increase.

C--Assets Increase. Revenue Increases.

D-- Assets Increase. Equity Increases.

2)

On May 1st Sarif Industries paid $24,000 to Detroit Realty for 6 months rent beginning June 1st. The company did the correct recording on May 1st. What is the effect of this transaction on the Balance Sheet?

A-- Assets Remain Unchanged

B-- Assets Decrease. Liabilities Decrease.

C-- Assets Increase. Liabilities Increase.

D-- Assets Decrease. Equity Decreases

3)

BellTower Company collected $13,000 in June of 2019 for 7 months of service which would take place from October of 2019 through April of 2020. What's the impact of Belltower's June collection of this money on the Balance Sheet?

A-- Increase Assets. Increase Liabilities

B-- Increase Assets. Increase Equity

C-- Increase Assets. Increase Expense..

D-- Increase Assets. Increase Revenue

4)

An Increase in an Asset account would also cause which of the following to occur?

A-- No other entry would occur

B-- A Decrease in Equity

C-- An Increase in Liabilities

D-- A Decrease in Liabilities

PLEASE ANSWER #5! thanks!

Roadrunner Trucking Company is a nationwide truckload carrier. They operate in a highly-competitive market on a very thin margin. Below are the projected figures for 2016: Revenue per mile $5.00 Variable cost per mile $ 4.50 Projected fixed costs $5,000,000 Desired after tax profit $500,000 Tax rate 25%

1. Compute the contribution rate and computation rate margin.

2. Calculate the breakeven in miles and sales dollars based on the information from Question 1.

3. Management is reviewing a proposal from their liability insurance company. The proposal suggests the company change their premium from a fixed to a variable rate. If accepted, this would increase the variable costs by 25 cents per mile and drop the fixed costs by 2%. Should they make the change? Show calculations to support or answer.

4. Shareholders are pressuring management to increase after-tax profit and thus increase the amount of dividends that can be paid. Management thinks they can increase revenue per mile by 5% and with an aggressive cost-cutting program, which will reduce fixed costs by 10%. With this program they project after-tax profits would increase by 15%.

5. Compare the three alternatives. Which is best? Explain your answer.

Exercise 9-17 Flexible Budget Performance Report [LO9-1, LO9-2, LO9-3, LO9-4]

AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:

The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,800 plus $33 per job, and the actual mobile lab operating expenses for February were $9,590. The company expected to work 150 jobs in February, but actually worked 160 jobs.

Required:

Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.)

Part 1: Record the following transactions for Classic Canine Cuts for the month of December in the General Journal.

Transaction Date Description
1 12/1 Issued 100,000 shares of common stock for $100,000.
2 12/2
A retail space is rented. Paid for one year of rent in advance totaling $24,000. (rent is $2,000 per month)
3 12/4 Purchased equipment for the business totaling $36,000.
4 12/5 Purchased $1,500 of supplies on account.
5 12/7 Provided services to customers for cash totaling $5,000.
6 12/9
Purchased an ad in the local newspaper to run during December for $400.
7 12/12
Customers purchased $1,000 of gift certificates for services to be provided in the future (pre-paid for future services).
8 12/15
Paid employee salaries for the first half of December totaling $1,200.
9 12/17 Paid $1,000 for the supplies that were purchased on December 5th.
10 12/20 Provided $2,500 of services to customers on account.
11 12/25 Paid a cash dividend of $800 to the shareholders.
12 12/30 Received $1,500 on account for services provided on 12/20.



Part 2: Post all of the transactions for the month of December from the General Journal to the General Ledger.


Part 3: Complete a Trial Balance as of December 31, 2019.




Page 3

Part 4: Record the adjusting entries for Classic Canine Cuts for the month of December in the General Journal.

Transaction Date Description
Adj. 1 12/31
One month of rent that was prepaid has been used for the month of December.
Adj. 2 12/31
The equipment purchased for $36,000 has a useful life of 5 years and no salvage value. (Monthly depreciation is $600.)
Adj. 3 12/31 At the end of December, $1,000 of supplies remain on hand.
Adj. 4 12/31
By the end of December $700 worth of the gift certificates had been redeemed by customers (revenue earned) for grooming services and had not been recorded.
Adj. 5 12/31
Salaries for the second half of December are $1,400, but they will not be paid until January 3rd.



Part 5: Post all of the adjusting entries for the month of December from the General Journal to the General Ledger.


Part 6: Complete an Adjusted Trial Balance as of December 31, 2019.

* Remember a balance in an account on the trial balance will carry over to the adjusted trial balance if it was not changed by an adjusting journal entry.*


Part 7: Complete an Income Statement for the month ended December 31, 2019.


Part 8: Complete a Statement of Retained Earnings for the month ended December 31, 2019.


Part 9: Prepare a Balance Sheet as of December 31, 2019.

Part 10. Record the closing entries for the year ending December 31, 2019.

Part 11. Post all of the year end closing entries from the General Journal to the General Ledger.

Part 12. Prepare a Post-Closing Trial Balance.


Page 4

General Journal Part 1

Ref # Date Account Debit Credit
1
  
  
2
  
  
3
  
  
4
  
  
5
  
  
6
  
  
7
  
  
8
  
  
9
  
  

  
Page 5

General Journal Part 1 (Continued)

Ref # Date Account Debit Credit
10
  
  
11
  
  
12
  
  


General Journal – Adjusting Entries Part 4

Ref # Date Account Debit Credit
A 1
  
  
A 2
  
  
A 3
  
  
A. 4
  
  
A. 5
  
  


Page 6

General Ledger Parts 2,5,11 TB = Trial Balance Total ATB = Adjusted Trial Balance Total CB= Closing Balance Total Post Journal references in left column for debits and right column for credits in each account. Assets

Ref # Cash Ref # Debit Credit TB



Ref # #
Accounts Receivable Ref # Debit Credit TB



Ref # Supplies Ref # Debit Credit TB ATB

Ref # Prepaid Rent Ref # Debit Credit TB ATB




Ref # Equipment Ref # Debit Credit TB




Ref # Accumulated Depreciation Ref # Debit Credit ATB





Page 7

Liabilities



Ref # Accounts Payable Ref # Debit Credit TB
















Ref # Salaries Payable Ref # Debit Credit ATB




Ref # Unearned (Deferred) Revenue Ref # Debit Credit TB ATB



  
Page 8

Stockholders’ Equity



Ref # Common Stock Ref # Debit Credit TB












Ref # Dividends Ref # Debit Credit TB CB



Ref # Retained Earnings Ref # Debit Credit CB





































Page 9

Revenue

Ref # Service Revenue Ref # Debit Credit TB ATB CB

Expenses

Ref # Advertising Expense Ref # Debit Credit TB CB
  
Page 10


Ref # Salaries Expense Ref # Debit Credit TB ATB CB

Ref # Depreciation Expense Ref # Debit Credit ATB CB



Ref # Rent Expense Ref # Debit Credit ATB CB



Ref # Supplies Expense Ref # Debit Credit ATB CB






  
Page 11

Part 3

Classic Canine Cuts Trial Balance December 31, 2019
Account Debit Credit
$ $












Total $ $   
Page 12

Part 6

Classic Canine Cuts Adjusted Trial Balance December 31, 2019
Account Debit Credit
$ $

















Total $ $


Page 13

Part 7

Classic Canine Cuts Income Statement For the Month Ended December 31, 2019
Revenue   
  
$
Expenses   
$




Total Expenses
$
Net Income
$


Part 8

Classic Canine Cuts Statement of Retained Earning December 31, 2019
Retained Earnings
Beginning Balance, December 1, 2019 $
  
Ending Balance, December 31, 2019
$



Page 14

Part 9

Classic Canine Cuts Balance Sheet December 31, 2019
Assets
  
Liabilities
  


Total Current Liabilities

Total Current Assets



Property Plant and Equipment   
Total Liabilities


Stockholders’ Equity
  
Total Property Plant and Equipment


Total Stockholders’ Equity

Total Assets

Total Liabilities and Stockholders’ Equity

  
Page 15




General Journal – Closing Entries Part 10 Revenue, Expense and Dividend accounts.

Ref # Date Account Debit Credit
C.1
  
  
C.2
  
  
  
  
  
  
C.3
  
  

  
Page 16


Part 12

Classic Canine Cuts Post-Closing Trial Balance December 31, 2019
Account Debit Credit
$ $










Total $ $

Is there a relationship between the dollars spent each week on recreation and the number of members of the family? Do larger families spend more on recreation? Ten Chicago families shared the following information:

Family Size               3         6        5        6        6        3        4         4         5        3

Amount Spent          99        104     151     129     142     111     74        91        119     91

h. Predict the recreational spending for a family of size 5.

i. If there are families of that size in the data set, what are the residuals for those observations?

j. Test the explanatory power of the model at a 5% level of significance.

k. Test if there is a positive relationship between family size and recreational spending. Use alpha = 0.01.

l. What is the excel command used to produce the p-value associated with the test in part k?

The data below are the final exam scores of 5 randomly selected calculus students and the number of hours they slept the night before the exam.

a) Draw scatterplot for the data.

b) Calculate the linear correlation coefficient to 3 decimal places.

(if you are unable to calculate the linear correlation coefficient, use .9 for part c,d and e)

c) Is there a linear relationship between the amount of sleep the student gets and the score on their exam. ( Justify your answer.Chart attached)

d) Determine the equation for the least squares regression line.

e) Predict the score of a student who studies 5 hours.

f) Interpret the slope and y-intercept of the least squares regression line

1. Describe the differences between the six classifications of pressure injuries. 2. How do you explain the fact that eschar must be removed before an injury can be accurately staged? 3. You are assigned to care for a 74-year-old male patient with a stage 3 pressure injury on his coccyx that is infected with methicillin-resistant Staphylococcus aureus (MRSA). You will need to irrigate the injury and apply a wet-to-damp dressing. You will also need to take the proper transmission-based precautions for MRSA in a wound. a. What makes a pressure injury classified as stage 3? b. How will you assess it for increasing or decreasing infection? c. How will you document the size and appearance of the wound? d. How will you apply the correct dressing for this wound?

Statistics exercises

One-way repeated measures ANOVA

1. Suppose you are interested in learning if practice on the ACT improves test scores. You sample a random group of 10 people and ask them to take the ACT 1 time per week for 3 consecutive weeks. Use the data below to determine if practice improves test scores.

1. State the hypotheses

2. Select an alpha level and one- or two-tailed

3. Select and compute the appropriate statistic

4. Report your findings in APA style

5. Make an inference if one is warranted.