Questions
11-14 Highland Automotive wishes to forecast the number of new cars that will be sold next...

11-14 Highland Automotive wishes to forecast the number

of new cars that will be sold next week. The following

table summarizes the number of new cars sold

during each of the past 12 weeks: (PLEASE ANSWER BY USING EXCEL)

week number sold
1 22
2 26
3 23
4 27
5 21
6 25
7 28
8 26
9 29
10 29
11 27
12 31

(a) Provide a forecast by using a 3-week weighted

moving average technique with weights 5, 3, and

1 (5 = most recent).

(b) Forecast sales by using an exponential smoothing

model with a = 0.45.

(c) Highland would like to forecast sales by using

linear trend analysis. What is the linear equation

that best fits the data?

(d) Which of the methods analyzed here would you

use? Explain your answer.

In: Statistics and Probability

A sports psychologist gave a questionnaire about healthy eating habits to randomly selected professional athletes. The...

  1. A sports psychologist gave a questionnaire about healthy eating habits to randomly selected professional athletes. The results are displayed below. Using the .05 significance level, is there a difference in healthy eating habits among professionals in the three sports?

                       Baseball Players              Basketball Players              Football Players

                                        32                                           27                                           16

                                        27                                           36                                           13

                                        26                                           25                                           15

                                        35                                           30                                           10

Step 1: State Hypotheses (2 points)

  • Null:

  • Research:

Step 2: Determine Comparison Distribution (1 point)

  • What is the distribution shape and degrees of freedom for the comparison distribution?

Step 3: Set the Criteria for a Decision (3 points)

  • dfB =

dfW=

  • Critical value:

Step 3: Compute the Test Statistic (10 points)

Step 5: Make a Decision (9 points)

Reject/Fail to Reject the null?

If necessary, compute a Tukey’s HSD post hoc test.

Write your results as they would appear in a research journal (~two sentences).

In: Math

1. Why are the long-lived assets and inventory assertions of existence said to have an inherent...

1. Why are the long-lived assets and inventory assertions of existence said to have an inherent risk of material misstatement that is higher than that of the account payable?

2. Do you think the blank confirmation is included in the positive or negative confirmation? Also explain what the advantages and disadvantages of each type of confirmation are, along with what kind of situation it is suitable to use!

3. Why is a cash account said to have a high inherent risk of possible fraud? Explain some of the controls related to cash accounts!

4. You are an auditor at a public accounting firm. You are conducting an audit for the financial year ending December 31, 2019. Your client has go public. This client is a property development company. Your client builds property in the form of apartment units, housing / real estate and also property investment products in the form of lots ready to build. In addition, this client also has a project development cooperation with its customers. The client is bound by a contract signed by both parties before a notary for the construction of a project with this customer. The project has not been completed 100%, however, the client says that the project has been completed 60% and the client acknowledges 60% of the development as revenue in the 2019 financial year.
Question:
a. In your opinion, as an auditor, what account should the client classify the apartment and housing / real estate complex be? Explain your answer!
b. What is the audit procedure that you will apply to ensure the recognition of revenue that is 60% of the project!
c. What audit evidence will you examine and what are the related assertions? Explain your answer!

5. You are an auditor at a public accounting firm. You and your team are entrusted by Partner to handle clients engaged in the home appliance retail business. Your client is a company that has go public. The client's financial statement in the previous year reported a loss, however this year reported a material gain. After you check, it turns out that the client reports income that is not much different from the previous year, however, there can be a profit due to the decrease in Cost of Goods Sold (COGS). The client reports that the amount of inventory has increased drastically, even though sales have not increased and the account payable balance is almost the same as in previous years, this has led to suspicion of a double counting scheme in the client's inventory. In addition, when a random check was carried out incidentally at one of the client's warehouses, it was found that many inventory were out of date but the client did not make adjustments.
Question:
a. If you wanted to perform an analytical procedure to check the suspected occurrence of this double counting scheme, what ratio would you calculate? Explain your answer!
b. What assertions are related to the above case? Explain your answer!

6.Your client Corp A is a company engaged in the production of heavy equipment and markets its products on a business to business (B2B) basis. Goods produced by Corp A are heavy equipment such as: Excavators, Bulldozers, Mobile Cranes, Motor Scrapers, etc. There are also a number of finished products in the form of heavy equipment which are self-used by Corp A. After several years of self-use, that heavy equipment is sold, which is in the fiscal year that you are currently auditing. Corp A recorded it as sales revenue which is increased their operating profit.
Question:
a. Do you think that recognize it as sales revenue is correct? Explain your answer!
b. What audit objectives relate to the above case! Explain your answer!

In: Accounting

Entity A sold Product C to Entity B for many years. In order to expand its...

Entity A sold Product C to Entity B for many years. In order to expand its market, recently, Entity A promoted a new product, i.e. Product D. On 1 January 2020, Entity A sold 20,000 units of Product D to Entity B at a price of $88 per unit. Cash was received when control of products transferred to Entity B.

According to the contract between Entity A and Entity B, Entity A agreed with Entity B returning unused products at full price within 2 months, i.e. on or before 29 February 2020.  The costs of each Product C and Product D are $55 and $48 respectively.

Entity A learnt much experience in selling Product C with different customers and estimated that 6% of Product C was commonly returned by Entity B. However, Product D is a new product, therefore Entity A did not have such experience on selling Product D. Based on the good business relationship with Entity B, Entity A estimated the return rate of Product D as a triple of the return rate of Product C.

On 29 February 2020, Entity B returned 1,600 units of Product D to Entity A. Due to a cash shortage, Entity A only repaid $50,000 back to Entity B and promised to settle the unpaid balance on or before 31 March 2020. Finally, Entity A only settled 80% of the unpaid balance on 31 March 2020.

REQUIRED:

Provide journal entries for Product D from 1 January 2020 to 31 March 2020 in accordance with relevant accounting standards.

ACCOUNT NAMES FOR INPUT:

| Road roller | Plant | Machine | Motor van | Land | Building | Inventory | Intangible assets |

| Bank | Payable | Receivable | Other income | Other expense | Interest expense | Interest revenue |

| Depreciation | Accum. depreciation | Impairment loss | Reversal of impairment loss | Goodwill |

| Loss on disposal | Gain on disposal | Restoration liability | Revaluation surplus | Revaluation deficit |

| Asset for product to be returned | Commission expense | Commission revenue | Revenue |

| Cost of sales | Refund liability | Contract asset | Contract liability | Retained earnings | No entry |

ANSWERS:

Journal Entries:

Date Account Name Debit ($) Credit ($)
1-Jan-20 Blank 1 Blank 2
Blank 3 Blank 4
Blank 5 Blank 6
Blank 7 Blank 8
Blank 9 Blank 10
Blank 11 Blank 12
Blank 13 Blank 14
Blank 15 Blank 16
29-Feb-20 Blank 17 Blank 18
Blank 19 Blank 20
Blank 21 Blank 22
Blank 23 Blank 24
Blank 25 Blank 26
29-Feb-20 Blank 27 Blank 28
Blank 29 Blank 30
Blank 31 Blank 32
Blank 33 Blank 34
Blank 35 Blank 36
31-Mar-20 Blank 37 Blank 38
Blank 39 Blank 40
Blank 41 Blank 42
Blank 43 Blank 44

In: Accounting

CASE # 2 (China Company) What could be more self-explanatory about corporate values than naming your...

CASE # 2 (China Company)
What could be more self-explanatory about corporate values than naming your business “China Company?” Zhong and Wang are Chinese characters for loyalty, dedication, and prosperity. It certainly worked out for the Liaoning Province–based Chinese aluminum developer and manufacturer.
Founded in 1993, it had total assets of US$3.9 billion. In 2014, the company’s revenue was around 16 billion RMB ($2.5 billion). The company is the largest producer of extruded aluminum in Asia and the second largest in the world, with its product being used in many industries—from rail carriages to power plants. From the outset the business sought to be sustainable, prosperous, and contribute to society.
The aluminum industry is highly competitive, and China Company is not only interested in value creation, but also in encouraging its customers to expand their businesses. The company is looking to expand their operations in Europe and the U.S., with Lu Changqing, the executive director and vice president saying, “We’re actively seeking cooperation in Europe and the U.S., including potential acquisitions.”
Employee contribution and a commitment to excellence have been key to the company’s success. Certain elements— like responsible corporate citizenship and operation management with integrity—are built into corporate values. The trick was transforming a corporate slogan into a corporate reality. In 2012 the Chinese government certified China Company as a “State Accredited Enterprise Technology Centre.
China Company was recognized not only for its technology, leadership, and strategy, but also for the fact that its management practices were inspirational to other companies in China. Li Beibei, the director of public affairs of China Company, believed the award showed that the company’s
Page 4 of 8

achievements went beyond its production and technology. It was recognized for its innovative business culture, management practices, and broad vision.
The company’s single principal shareholder, Liu Zhongtian—a self-made billionaire, who according to Forbes had a net worth of US$3.2 billion as of May 2015—said the company’s rapid growth has been a result of “perseverance and determination.”
As a result of its long-held desire for the business to become a world-class international producer, the company has initiated a shift toward high-end, high-value-added products. The business has expanded not only by increasing its production capabilities, but also through horizontal expansion. This expansion has allowed it greater dominance in the domestic Chinese market, as well as the export market.
China Company’s core values are fivefold. First, it tries to add value and grow alongside its customers; second, it develops its own talent, particularly in relation to innovation, teamwork, and pursuit of excellence. Third, China Company wants to create sustainable earnings growth and reward investors and shareholders. The fourth core value is to be a responsible corporate citizen and to do business with integrity, which includes supporting charities and community events. Finally, it is to establish a business that is trusted by customers and to retain and develop key employees to push the business forward into the future. The company also professes a “customers first” philosophy. Employee training focuses on responding to customer requirements and changing market needs in order to achieve high levels of customer satisfaction.
The aluminum business had to position itself carefully, responding to the demands of the external environment. Rather than react to environmental issues, organizations like China Company have taken immediate steps to cut down on energy use and reduce waste. Globally, the industry can boast that aluminum is the most commonly recycled metal in the world. Clearly, this approach permeates enterprises such as China Company as part of its overall commitment to social responsibility.
China Company is committed to the lifelong learning and career development of the employees, helping each person to effectively combine their talent development goals with corporate development. The company conducted operational and theoretical skill training for specialized operational personnel; they also worked with local government bodies to offer Pre-appointment Bridge-up Training,” a training program for laid-off workers to help develop their professional skills and operation capabilities. Training programs were organized with a total participation of 27,470 individuals, with all staff members having enrolled. To acknowledge the achievements of the employees, China Company awarded titles of “May Day” medal and “Workers’ Vanguard” for excellent performance.
As a member of the Hong Kong Stock Exchange, China Company continues to have great access to potential investment. The company is ranked first among the major Chinese aluminum companies and continues to expand. In retaining its core values of commitment, diligence, responsibility, and innovation, the business has become a major developer and manufacturer of high-quality aluminum products in the world, and at the same time reflects thoughtful response to demands from the external environment.




Case # 2- Discussion Questions
1. What are China Company’s corporate values? How do you think these values influence the way employees do their work?
2. Using the company’s corporate values, describe the organizational culture. In which areas would you say that the company’s culture is very high (or typical)? Explain.
3. How is China Company’s corporate culture maintained?
4. “The right culture with the right values will always produce the best organizational
performance.” What do you think of this statement? Do you agree? Why or why not?

In: Economics

CASE # 2 (China Company) What could be more self-explanatory about corporate values than naming your...

CASE # 2 (China Company)
What could be more self-explanatory about corporate values than naming your business “China Company?” Zhong and Wang are Chinese characters for loyalty, dedication, and prosperity. It certainly worked out for the Liaoning Province–based Chinese aluminum developer and manufacturer.
Founded in 1993, it had total assets of US$3.9 billion. In 2014, the company’s revenue was around 16 billion RMB ($2.5 billion). The company is the largest producer of extruded aluminum in Asia and the second largest in the world, with its product being used in many industries—from rail carriages to power plants. From the outset the business sought to be sustainable, prosperous, and contribute to society.
The aluminum industry is highly competitive, and China Company is not only interested in value creation, but also in encouraging its customers to expand their businesses. The company is looking to expand their operations in Europe and the U.S., with Lu Changqing, the executive director and vice president saying, “We’re actively seeking cooperation in Europe and the U.S., including potential acquisitions.”
Employee contribution and a commitment to excellence have been key to the company’s success. Certain elements— like responsible corporate citizenship and operation management with integrity—are built into corporate values. The trick was transforming a corporate slogan into a corporate reality. In 2012 the Chinese government certified China Company as a “State Accredited Enterprise Technology Centre.
China Company was recognized not only for its technology, leadership, and strategy, but also for the fact that its management practices were inspirational to other companies in China. Li Beibei, the director of public affairs of China Company, believed the award showed that the company’s

achievements went beyond its production and technology. It was recognized for its innovative business culture, management practices, and broad vision.
The company’s single principal shareholder, Liu Zhongtian—a self-made billionaire, who according to Forbes had a net worth of US$3.2 billion as of May 2015—said the company’s rapid growth has been a result of “perseverance and determination.”
As a result of its long-held desire for the business to become a world-class international producer, the company has initiated a shift toward high-end, high-value-added products. The business has expanded not only by increasing its production capabilities, but also through horizontal expansion. This expansion has allowed it greater dominance in the domestic Chinese market, as well as the export market.
China Company’s core values are fivefold. First, it tries to add value and grow alongside its customers; second, it develops its own talent, particularly in relation to innovation, teamwork, and pursuit of excellence. Third, China Company wants to create sustainable earnings growth and reward investors and shareholders. The fourth core value is to be a responsible corporate citizen and to do business with integrity, which includes supporting charities and community events. Finally, it is to establish a business that is trusted by customers and to retain and develop key employees to push the business forward into the future. The company also professes a “customers first” philosophy. Employee training focuses on responding to customer requirements and changing market needs in order to achieve high levels of customer satisfaction.
The aluminum business had to position itself carefully, responding to the demands of the external environment. Rather than react to environmental issues, organizations like China Company have taken immediate steps to cut down on energy use and reduce waste. Globally, the industry can boast that aluminum is the most commonly recycled metal in the world. Clearly, this approach permeates enterprises such as China Company as part of its overall commitment to social responsibility.
China Company is committed to the lifelong learning and career development of the employees, helping each person to effectively combine their talent development goals with corporate development. The company conducted operational and theoretical skill training for specialized operational personnel; they also worked with local government bodies to offer Pre-appointment Bridge-up Training,” a training program for laid-off workers to help develop their professional skills and operation capabilities. Training programs were organized with a total participation of 27,470 individuals, with all staff members having enrolled. To acknowledge the achievements of the employees, China Company awarded titles of “May Day” medal and “Workers’ Vanguard” for excellent performance.
As a member of the Hong Kong Stock Exchange, China Company continues to have great access to potential investment. The company is ranked first among the major Chinese aluminum companies and continues to expand. In retaining its core values of commitment, diligence, responsibility, and innovation, the business has become a major developer and manufacturer of high-quality aluminum products in the world, and at the same time reflects thoughtful response to demands from the external environment.


Case # 2- Discussion Questions
1. What are China Company’s corporate values? How do you think these values influence the way employees do their work?
2. Using the company’s corporate values, describe the organizational culture. In which areas would you say that the company’s culture is very high (or typical)? Explain.
3. How is China Company’s corporate culture maintained?
4. “The right culture with the right values will always produce the best organizational
performance.” What do you think of this statement? Do you agree? Why or why not?

In: Economics

Chapter 3:  The Adjusting Process (Continued) 1. Please explain what accrued expenses are and let us know...

Chapter 3:  The Adjusting Process (Continued)

1. Please explain what accrued expenses are and let us know why these adjustments are necessary. Please provide an example of an adjusting entry for an accrued expense.

2. Please explain what accrued revenues are and let us know why these adjustments are necessary. Please provide an example of an adjusting entry for accrued revenues.

3. Please explain what an Unearned Revenue account is and why an adjustment may be necessary for Unearned Revenue. Please provide an example of an adjusting entry for Unearned Revenue.

In: Accounting

Twenty-one mature flowers of a particular species were dissected, and the number of stamens and carpels...

Twenty-one mature flowers of a particular species were dissected, and the number of stamens and carpels present in each flower were counted.

x, Stamens 52 68 70 38 61 51 56 65 43 37 36 74 38 35 45 72 59 60 73 76 68
y, Carpels 19 32 27 21 18 30 31 31 20 26 23 28 27 24 28 22 34 26 32 36 33

(a) Is there sufficient evidence to claim a linear relationship between these two variables at α = .05?
(i) Find r. (Give your answer correct to three decimal places.)

(iii) State the appropriate conclusion.

Reject the null hypothesis, there is not significant evidence to claim a linear relationship.Reject the null hypothesis, there is significant evidence to claim a linear relationship.    Fail to reject the null hypothesis, there is significant evidence to claim a linear relationship.Fail to reject the null hypothesis, there is not significant evidence to claim a linear relationship.



(b) What is the relationship between the number of stamens and the number of carpels in this variety of flower?. (Give your answers correct to two decimal places.)

= +  x


(c) Is the slope of the regression line significant at α = .05?(i) Find t. (Give your answer correct to two decimal places.)


(ii) Find the P-value. (Give your answer bounds exactly.)
< p <
(iii) State the appropriate conclusion.

Reject the null hypothesis, there is not evidence of a significant slope.Reject the null hypothesis, there is evidence of a significant slope.    Fail to reject the null hypothesis, there is evidence of a significant slope.Fail to reject the null hypothesis, there is not evidence of a significant slope.



(d) Find the 98% prediction interval for the number of carpels that one would expect to find in a mature flower of this variety if the number of stamens were 45. (Give your answers correct to one decimal place.)

Lower Limit
Upper Limit

In: Statistics and Probability

2. Every day, Chung-Li buys a scratch-off lottery ticket with a 40% chance of winning some...

2. Every day, Chung-Li buys a scratch-off lottery ticket with a 40% chance of winning some prize. He noticed that whenever he wears his red shirt he usually wins. He decided to keep track of his winnings while wearing the shirt and found that he won 6 out of 9 times.

  • Let's test the null hypothesis that Chung-Li's chance of winning while wearing the shirt is 40% as always versus the alternative that the chance is somehow greater.
  • The table at right sums up the results of 1000 simulations, each simulating 9 lotteries with a 40%, percent chance of winning.
  • According to the simulations, what is the probability of winning 6 times or more out of 9?
  • 74/1000 = .00074
  • Let's agree that if the observed outcome has a probability less than 1% under the tested hypothesis, we will reject the hypothesis.
  • What should we conclude regarding the hypothesis?
    • We cannot reject the null hypothesis.
    • We should reject the null hypothesis.

# of wins out of 9

Frequency

0

10

1

60

2

161

3

251

4

252

5

167

6

74

7

21

8

4

9

0

In: Statistics and Probability

A small-town restaurant owner understands that she needs to meet or exceed customers' expectations. Therefore, she...

A small-town restaurant owner understands that she needs to meet or exceed customers' expectations. Therefore, she must first:

Group of answer choices know where customers live. know how often consumers buy their products.

determine what those expectations are.

recognize that expectations are tangible.

empower customers to meet their own expectations.

2. If a product's sales are rising, profits are rising rapidly, and there are a small but increasing number of competitors, this product is most likely in the ________ stage of the product life cycle.

Toyota started making one type of Camry (car). When they started adding different colors, features and styles of Camry, this was best thought of as:

Group of answer choices

extending product mix breadth

line extension

brand extension

a new product category

A start-up company in Silicon Valley is developing new educational video games. The company has employees try it out on various systems to see if the games work. At this stage, they are involved in:

Group of answer choices

test marketing.

product launch.

beta testing.

alpha testing.

In: Operations Management