(1 point) The song-length of tunes in the Big Hair playlist of a certain Statistics professors mp3-player vary from song to song. This variation can be modeled by the Normal distribution, with a mean song-length of μ=4.3μ=4.3 minutes and a standard deviation of σ=0.72σ=0.72 minutes. Note that a song that has a length of 4.5 minutes is a song that lasts for 4 minutes and 30 seconds.

While listening to a song, the professor decides to shuffle the playlist, which means the mp3-player is to randomly pick a song within this particular playlist, and play this next.

If using/working with zz-values, use three decimals.

(a) What is the probability that the next song to be played is between 3.8 and 4.65 minutes long? Answer to four decimals.

(b) What proportion of all the songs in this playlist are longer than 5 minutes? Use four decimals in your answer.

(c) 20% of all the songs in this playlist are at most how long, in minutes? Enter your answer to two decimals, and keep your answer consistent with how the song length has been expressed in this problem.

(d) There are 237 songs in the Big Hair playlist. How many of these would you expect to be longer than 5 minutes in length? Use two decimals in your answer.

(e) From the time he set his mp3-player to shuffle, there has been 16 songs randomly chosen and played in succession. What is the chance that the 16-th song played is the 8-th to be longer than 4.3 minutes? Enter your answer to four decimals.

Which of the following is not a part of the index of lagging economic indicators?

Multiple Choice

• Outstanding commercial loans

• Index of unit labor costs

• None of the options are correct.

• Average prime rate of interest

• Ratio of consumer installment credit to personal income

Which of the following advice is not particularly useful in forecasting the cyclical component of a time series?

Multiple Choice

• All of the options are correct.

• Review the past behavior of the cyclical factor series.

• Avoid subjective forecasts of cycle factors.

• Use time-series smoothing when you expect a trend to continue into the forecast horizon.

• Review the results of several forecasting methods.

A seasonal index number of .80 for quarter one in a time series decomposition model of an automobile parts manufacturer suggests

rev: 11_07_2018_QC_CS-146812

Multiple Choice

• quarter one sales are 1.80% below the norm.

• quarter one sales are 80% below the norm.

• quarter one sales are 20% below the norm.

• quarter one sales are 80% above the norm.

If business cycles were pure cycles, they

Multiple Choice

• All of the options are correct.

• would be easy to forecast.

• would have constant amplitude.

• would have predictable trend reversals.

• would have constant periodicity.

A researcher mistakenly uses deseasonalized data in calculating the seasonal factors. If she found apparent seasonal behavior, this is best attributed to

Multiple Choice

• seasonality.

• the business cycle.

• None of the options are correct.

• trend.

• random noise.

The following specific seasonal factors were estimated for the month of October:

If the adjustment is 0.98 and the modified mean is used, and if the expected trend for October is $800, what is the seasonally adjusted forecast?

Multiple Choice

• $561.00

• $551.20

• $570.00

• $1,168.8

• None of the options are correct.

Down Under Products, Ltd., of Australia has budgeted sales of its popular boomerang for the next four months as follows:

The company is now in the process of preparing a production budget for the second quarter. Past experience has shown that end-of-month inventory levels must equal 20% of the following month’s unit sales. The inventory at the end of March was 15,600 units.

Required:

Prepare a production budget by month and in total, for the second quarter.

Silver Company makes a product that is very popular as a Mother’s Day gift. Thus, peak sales occur in May of each year, as shown in the company’s sales budget for the second quarter given below:

From past experience, the company has learned that 20% of a month’s sales are collected in the month of sale, another 65% are collected in the month following sale, and the remaining 15% are collected in the second month following sale. Bad debts are negligible and can be ignored. February sales totaled $350,000, and March sales totaled $380,000.

Required:

1. Prepare a schedule of expected cash collections from sales, by month and in total, for the second quarter.

2. What is the accounts receivable balance on June 30th?

W. W. Phillips Company produced 4,000 leather recliners during the year. These recliners sell for $400 each. Phillips had 500 recliners in finished goods inventory at the beginning of the year. At the end of the year, there were 700 recliners in finished goods inventory. Phillips’ accounting records provide the following information:

Refer to the list below for the exact wording of a label or an amount description within your statements.

1. Prepare a statement of cost of goods manufactured. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your statement. If an amount is negative, first enter a minus (-) sign.

3. Prepare an income statement for external users. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your statement.

Part I                                                                                                                   55 marks

The data below pertains to the third quarter of Ontario Company which manufactures toys.

Below is the estimated sales (in units):

1. The selling price of the toys is $10 per unit.
2. All sales are on account. Based on past experience, sales are collected in the following pattern:

3. Sales for June totaled $400,000.
4. The company maintains finished goods inventories equal to 20% of the following month's sales. This requirement will be met at the end of June.
5. Each toy requires 3 pounds of raw materials.
6. The company requires that the ending inventory of raw materials be equal to 20% of the following month's production needs.
7. The raw material costs $1.50 per pound.
8. 40% of a month's purchases of raw materials is paid for in the month of purchase; the remainder is paid for in the following month.

1. The accounts payable on June 30 will be $80,000.

Required

1. A schedule of expected cash collections                                           
2. A cash budget                                                                                    

The top executives of PGH Company ask for your help in determining the comparative effects of the FIFO and LIFO inventory cost flow methods.

The accounting records for the year 2020 show the following:

Sold 98,000 units during the year generating total sales revenue of: $750,000

Total Operating Expenses: $124,000

Income Tax Rate is 28% (hint: you must calculate income tax expense)

Beginning Inventory, January 1 (10,000 units) $35,000

Units purchased during the year:

May 10 - 35,000 units at $3.70

August 15 - 60,000 units at $3.90

November 20 - 25,000 units at $4.20

Instructions: Cut and paste questions 1 - 4 in your window and complete the requirements below. Make sure your answers are clearly marked in your solution and show your work in order to receive credit. Add more space as necessary to include your work. Hint: Before you start, calculate number of units available for sale and cost of units available for sale.

1. Calculate Cost of Goods Sold under FIFO and LIFO. Clearly label your answer (as shown below) in your solution and show all supporting work below your answer.

a. FIFO COST OF GOODS SOLD   (fill in answer)

Show all work to support answer here:

b. LIFO COST OF GOODS SOLD                                                   (fill in answer)

Show all work to support answer here:

2. Calculate Ending Inventory under FIFO and LIFO (show all work below)

a. FIFO ENDING INVENTORY                                                        (fill in answer)

Show all work to support answer here:

b. LIFO ENDING INVENTORY                                                         (fill in answer)

Show all work to support answer here:

3. Instructions: Cut and paste this table into your window and complete it as directed here. Prepare comparative condensed income statements for 2020 under FIFO and LIFO using the answers you obtained in [1a] and [1b] and the data provided for PGH Company above.

4. Answer the following questions:

4a. Which inventory cost flow method produces the ending inventory amount that most closely approximates the amount that would have to be paid to replace the inventory?

      Answer:                                                    

4b. Which inventory cost flow method is most likely to approximate the actual physical flow of the goods?

      Answer:                                                    

4c. Which inventory cost flow method produces the net income amount that is more likely an indicator of next period’s net income?

      Answer:                                                    

1. The most basic concept upon which the science of economics rests is

a. money.

b. scarcity.

c. markets.

d. prices.

e. free (unregulated) markets.

2. If the supplies of land, labor, and capital were unlimited,

a. scarcity would still be present.

b. the production-possibilities frontier would not change.

c. scarcity would no longer be present.

d. consumer goods would still be rationed.

e. capital goods, but not consumer goods, would still be rationed.

3. People must make choices because

a. most people enjoy shopping.

b. there are many goods available.

c. the law of scarcity prevails.

d. the production-possibilities frontier is upward-sloping.

3. there are unlimited resources available for production.

4. Opportunity cost is best defined as

a. how much money is paid for something.

b. how much money is paid for something, taking inflation into account.

c. the highest valued alternative that is sacrificed in making a choice.

d. all the alternatives that are sacrificed in making a choice.

e. None of the above.

5. During the time when she took this quiz, Susannah could instead have practiced her violin or done her French homework. She thinks that if she hadn't taken the quiz, she would have done her French homework. Her opportunity cost of taking the quiz is the value of:

            a. practicing her violin

            b. doing her French homework

            c. practicing her violin and doing her French homework

            d. the time it took to do the quiz

            e. zero because her quiz was worth more than her French homework

6. Cathy and Katie can both produce beer and pizzas. They face the following production possibilities:

Cathy: 10 beers or 10 pizzas                           Katie: 3 beers or 6 pizzas

A. Who has the absolute advantage in producing beer? Who has the absolute advantage in producing pizza?

B. Who has the comparative advantage in producing beer? Who has the comparative advantage in producing pizza? (Show your work!)

C. Who should produce beer? Who should produce pizza?

Ford buys in about two thirds of its car parts from outside suppliers. At one time, Ford employed 500 people to order components, receive the parts and pay suppliers. Ford believed that by rationalizing procedures and installing new computer systems, it could reduce staffing levels to about 400. However, Mazda a Japanese car company, already did the same job using less than 100 staff. Even allowing for scale differences between the two organizations, the gap was enormous. The main difference was in business procedures. Mazda did not wait for invoices from its suppliers. In contrast, Ford’s purchasing department created a purchase order, a copy of which is sent to accounts payable. Subsequently, when the goods were received, goods inward sent a copy of the receiving documents to accounts payable; which also received an invoice from the supplier. It was accounts payable’s responsibility to match the purchase order against the receiving document and the invoice, then issue payment. In practice, the department spent most of its time investigating mismatches. Ford’s original idea was to use computers to streamline the investigation procedure. However, Mazda’s experience highlighted the need for a redesign of a complete business process. As a result, Ford has developed an ‘invoiceless processing’ payment system. In this system, when purchasing department raises an order, it enters information into an online database. When parts arrive at goods inward department, it enters the information into an online database. When parts arrive at goods inward department, a warehouse man waves a barcode reader over the label, entering the parts inventory and sending electronic payment to the supplier. As a result, the clerical and data processing complexity is eliminated. Through these changes, ford has achieved a 75% reduction in headcount, rather than the 20% it would have achieved had the original plan gone ahead. With reference to the Case Study above, identify and briefly explain any benefit (only one) that Ford enjoyed, or expected to have enjoyed, by adopting Mazda’s Business Handling Style. Your responses to this question should be done using the following three separate components; and clearly numbering each component. In one word, a phrase or at most one sentence, identify and state the benefit.

Evergreen Corporation is preparing the master budget for the third quarter ending March 31, 2009.  It sells a single product for $20 a unit.  Sales are 25% cash and 75% credit.  The credit sales are collected 30% in the month of the sale and the remaining 70% is collected in the next month.  No credit sales occurred in December 2008. The December 31 inventory of finished goods is 15,000 units and projected sales are 20,000, 55000, 65,000, 75,000, and 85,000 units for the first  months of the year.  The desired ending inventory for each month is 35% of the next month's sales. The inventory of Finished Goods expected to be on hand on April 30 is 10,500 units.  Each Finished Unit requires 2 kilograms of materials at a cost of $1.00 per kilo and it takes 15 minutes to complete one unit.  Evergreen anticipates having 20,000 kilos of materials on hand at December 31, 2008.  The company requires 15% of the next month production materials needs to be available before the start of the month.  Labour is paid at the rate of $9.00 per hour and is paid when incurred.  Production overhead is incurred based on units of production and costs $1.50 per unit. Sixty percent of the purchases are paid in the month of purchase and 40% are paid in the following month.  Purchases in December 2008 were $232,500.

Operating expenses are paid in the month incurred and consist of sales commissions (8% of sales), shipping cost (4% of sales), office salaries of $15,000 a month, advertising of $2,800 per month,  and amortization of $3,200 per month, and other miscellaneous expenses of $4,500 per month.  The cash balance must not be negative. The beginning cash balance is $48,000.  Loans are obtained at the end of the month in which a cash shortage occurs and are made in even multiples of $1,000.  Interest is 1% per month based on the beginning-of-month loan balance and must be paid at the end of each month when the loan is repaid.   Evergreen paid $4,000 in cash dividends in January and purchased land for $150,000 in March paying cash.