|
Wally?s Widget Company (WWC) incorporated near the end of 2011. Operations began in January of 2012. WWC prepares adjusting entries and financial statements at the end of each month. Balances in the accounts at the end of January are as follows: |
| Cash | $ | 18,920 | Unearned Revenue (30 units) | $ | 4,450 | ||
| Accounts Receivable | $ | 9,950 | Accounts Payable (Jan Rent) | $ | 1,500 | ||
| Allowance for Doubtful Accounts | $ | (1,000) | Notes Payable | $ | 14,500 | ||
| Inventory (35 units) | $ | 2,800 | Contributed Capital | $ | 5,200 | ||
| Retained Earnings ? Feb 1, 2012 | $ | 5,020 | |||||
| ? | WWC establishes a policy that it will sell inventory at $165 per unit. |
| ? | In January, WWC received a $4,450 advance for 30 units, as reflected in Unearned Revenue. |
| ? | WWC?s February 1 inventory balance consisted of 35 units at a total cost of $2,800. |
| ? | WWC?s note payable accrues interest at a 12% annual rate. |
| ? | WWC will use the FIFO inventory method and record COGS on a perpetual basis. |
| February Transactions | |
| 02/01 |
Included in WWC?s February 1 Accounts Receivable balance is a $1,700 account due from Kit Kat, a WWC customer. Kit Kat is having cash flow problems and cannot pay its balance at this time. WWC arranges with Kit Kat to convert the $1,700 balance to a note, and Kit Kat signs a 6-month note, at 12% annual interest. The principal and all interest will be due and payable to WWC on August 1, 2012. |
| 02/02 |
WWC paid a $600 insurance premium covering the month of February. The amount paid is recorded directly as an expense. |
| 02/05 |
An additional 130 units of inventory are purchased on account by WWC for $9,750 ? terms 2/15, n30. |
| 02/05 |
WWC paid Federal Express $260 to have the 130 units of inventory delivered overnight. Delivery occurred on 02/06. |
| 02/10 |
Sales of 100 units of inventory occurred during the period of 02/07 ? 02/10. The sales terms are 2/10, net 30. |
| 02/15 |
The 30 units that were paid for in advance and recorded in January are delivered to the customer. |
| 02/15 |
15 units of the inventory that had been sold on 2/10 are returned to WWC. The units are not damaged and can be resold. Therefore, they are returned to inventory. Assume the units returned are from the 2/05 purchase. |
| 02/16 | WWC pays the first 2 weeks wages to the employees. The total paid is $2,400. |
| 02/17 |
Paid in full the amount owed for the 2/05 purchase of inventory. WWC records purchase discounts in the current period rather than as a reduction of inventory costs. |
| 02/18 | Wrote off a customer?s account in the amount of $1,100. |
| 02/19 |
$3,000 of rent for January and February was paid. Because all of the rent will soon expire, the February portion of the payment is charged directly to expense. |
| 02/19 |
Collected $8,200 of customers? Accounts Receivable. Of the $8,200, the discount was taken by customers on $4,500 of account balances; therefore WWC received less than $8,200. |
| 02/26 |
WWC recovered $420 cash from the customer whose account had previously been written off (see 02/18). |
| 02/27 |
A $600 utility bill for February arrived. It is due on March 15 and will be paid then. |
| 02/28 | WWC declared and paid a $800 cash dividend. |
| Adjusting Entries: |
| 02/29 |
Record the $2,400 employee salary that is owed but will be paid March 1. |
||
| 02/29 |
WWC decides to use the aging method to estimate uncollectible accounts. WWC determines 8% of the ending balance is the appropriate end of February estimate of uncollectible accounts. |
||
| 02/29 | Record February interest expense accrued on the note payable. | ||
| 02/29 |
Record one month?s interest earned Kit Kat?s note (see 02/01).
|
In: Accounting
Thirty-two small communities in Connecticut (population near 10,000 each) gave an average of x = 138.5 reported cases of larceny per year. Assume that σ is known to be 44.9 cases per year.
(a) Find a 90% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.)
| lower limit | |
| upper limit | |
| margin of error |
(b) Find a 95% confidence interval for the population mean annual
number of reported larceny cases in such communities. What is the
margin of error? (Round your answers to one decimal place.)
| lower limit | |
| upper limit | |
| margin of error |
(c) Find a 99% confidence interval for the population mean annual
number of reported larceny cases in such communities. What is the
margin of error? (Round your answers to one decimal place.)
| lower limit | |
| upper limit | |
| margin of error |
(d) Compare the margins of error for parts (a) through (c). As the
confidence levels increase, do the margins of error increase?
As the confidence level increases, the margin of error remains the same.As the confidence level increases, the margin of error decreases. As the confidence level increases, the margin of error increases.
(e) Compare the lengths of the confidence intervals for parts (a)
through (c). As the confidence levels increase, do the confidence
intervals increase in length?
As the confidence level increases, the confidence interval increases in length.As the confidence level increases, the confidence interval remains the same length. As the confidence level increases, the confidence interval decreases in length.
Allen's hummingbird (Selasphorus sasin) has been studied by zoologist Bill Alther.† Suppose a small group of 15 Allen's hummingbirds has been under study in Arizona. The average weight for these birds is x = 3.15 grams. Based on previous studies, we can assume that the weights of Allen's hummingbirds have a normal distribution, with σ = 0.22 gram.
When finding an 80% confidence interval, what is the critical value for confidence level? (Give your answer to two decimal places.)
zc =
(a)
Find an 80% confidence interval for the average weights of Allen's hummingbirds in the study region. What is the margin of error? (Round your answers to two decimal places.)
lower limitupper limitmargin of error
(b)
What conditions are necessary for your calculations? (Select all that apply.)
normal distribution of weightsuniform distribution of weightsσ is knownσ is unknownn is large
(c)
Interpret your results in the context of this problem.
The probability that this interval contains the true average weight of Allen's hummingbirds is 0.80.There is a 20% chance that the interval is one of the intervals containing the true average weight of Allen's hummingbirds in this region. There is an 80% chance that the interval is one of the intervals containing the true average weight of Allen's hummingbirds in this region.The probability that this interval contains the true average weight of Allen's hummingbirds is 0.20.The probability to the true average weight of Allen's hummingbirds is equal to the sample mean.
(d)
Which equation is used to find the sample size n for estimating μ when σ is known?
n =
| zσ σ |
| E |
| 2 | |
n =
| zσ E |
| σ |
| 2 | |
n =
|
n =
|
Find the sample size necessary for an 80% confidence level with a maximal margin of error E = 0.08 for the mean weights of the hummingbirds. (Round up to the nearest whole number.)
hummingbirds
In: Statistics and Probability
Bargain Rental Car offers rental cars in an off-airport location near a major tourist destination in California. Management would like to better understand the variable and fixed portions of it car washing costs. The company operates its own car wash facility in which each rental car that is returned is thoroughly cleaned before being released for rental to another customer. Management believes that the variable portion of its car washing costs relates to the number of rental returns. Accordingly, the following data have been compiled:
| Month | Rental Returns | Car Wash Costs | |||
| January | 2,400 | $ | 10,800 | ||
| February | 2,500 | $ | 13,000 | ||
| March | 2,700 | $ | 11,600 | ||
| April | 3,000 | $ | 14,000 | ||
| May | 3,600 | $ | 16,000 | ||
| June | 5,000 | $ | 22,900 | ||
| July | 5,500 | $ | 22,000 | ||
| August | 5,400 | $ | 21,700 | ||
| September | 4,700 | $ | 22,600 | ||
| October | 3,900 | $ | 20,500 | ||
| November | 2,200 | $ | 10,500 | ||
| December | 2,700 | $ | 13,500 | ||
Required:
1. Prepare a scattergraph plot. (Place car wash costs on the vertical axis and rental returns on the horizontal axis.)
Instructions:
1. On the graph below, use the point tool (January) to plot rental returns on the horizontal axis and car wash costs on the vertical axis.
2. Repeat the same process for the plotter tools (February to December).
3. To enter exact coordinates, click on the point and enter the values of x and y.
4. To remove a point from the graph, click on the point and select delete option.
car wash cost
$30000
$25000
$20000
$15000
$10000
$5000
0 1000 2000 3000 4000 5000 6000 7000
rental returns
2. Using least-squares regression, estimate the variable cost per rental return and the monthly fixed cost incurred to wash cars. (Round Fixed cost to the nearest whole dollar amount and the Variable cost per unit to 2 decimal places.)
In: Accounting
Thirty-one small communities in Connecticut (population near 10,000 each) gave an average of x = 138.5 reported cases of larceny per year. Assume that σ is known to be 44.5 cases per year.
(a) Find a 90% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.)
| lower limit | |
| upper limit | |
| margin of error |
(b) Find a 95% confidence interval for the population mean annual
number of reported larceny cases in such communities. What is the
margin of error? (Round your answers to one decimal place.)
| lower limit | |
| upper limit | |
| margin of error |
(c) Find a 99% confidence interval for the population mean annual
number of reported larceny cases in such communities. What is the
margin of error? (Round your answers to one decimal place.)
| lower limit | |
| upper limit | |
| margin of error |
(d) Compare the margins of error for parts (a) through (c). As the
confidence levels increase, do the margins of error increase?
As the confidence level increases, the margin of error increases.As the confidence level increases, the margin of error remains the same. As the confidence level increases, the margin of error decreases.
(e) Compare the lengths of the confidence intervals for parts (a)
through (c). As the confidence levels increase, do the confidence
intervals increase in length?
As the confidence level increases, the confidence interval decreases in length.As the confidence level increases, the confidence interval increases in length. As the confidence level increases, the confidence interval remains the same length.
In: Statistics and Probability
Thirty-one small communities in Connecticut (population near 10,000 each) gave an average of x = 138.5 reported cases of larceny per year. Assume that σ is known to be 44.1 cases per year.
(a) Find a 90% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.)
| lower limit | |
| upper limit | |
| margin of error |
(b) Find a 95% confidence interval for the population mean annual
number of reported larceny cases in such communities. What is the
margin of error? (Round your answers to one decimal place.)
| lower limit | |
| upper limit | |
| margin of error |
(c) Find a 99% confidence interval for the population mean annual
number of reported larceny cases in such communities. What is the
margin of error? (Round your answers to one decimal place.)
| lower limit | |
| upper limit | |
| margin of error |
(d) Compare the margins of error for parts (a) through (c). As the
confidence levels increase, do the margins of error increase?
As the confidence level increases, the margin of error decreases.As the confidence level increases, the margin of error remains the same. As the confidence level increases, the margin of error increases.
(e) Compare the lengths of the confidence intervals for parts (a)
through (c). As the confidence levels increase, do the confidence
intervals increase in length?
As the confidence level increases, the confidence interval increases in length.As the confidence level increases, the confidence interval remains the same length. As the confidence level increases, the confidence interval decreases in length.
In: Math
Thirty-three small communities in Connecticut (population near 10,000 each) gave an average of x = 138.5 reported cases of larceny per year. Assume that σ is known to be 43.7 cases per year. (a) Find a 90% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.) lower limit upper limit margin of error (b) Find a 95% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.) lower limit upper limit margin of error (c) Find a 99% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.) lower limit upper limit margin of error (d) Compare the margins of error for parts (a) through (c). As the confidence levels increase, do the margins of error increase? As the confidence level increases, the margin of error remains the same. As the confidence level increases, the margin of error decreases. As the confidence level increases, the margin of error increases. (e) Compare the lengths of the confidence intervals for parts (a) through (c). As the confidence levels increase, do the confidence intervals increase in length? As the confidence level increases, the confidence interval decreases in length. As the confidence level increases, the confidence interval remains the same length. As the confidence level increases, the confidence interval increases in length.
In: Math
Thirty-one small communities in Connecticut (population near 10,000 each) gave an average of x = 138.5 reported cases of larceny per year. Assume that σ is known to be 45.1 cases per year. (a) Find a 90% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.) lower limit upper limit margin of error (b) Find a 95% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.) lower limit upper limit margin of error (c) Find a 99% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.) lower limit upper limit margin of error
In: Math
3. Sydney Rangers Inc operates remote parking lots near major
airports. The board of directors of this family-owned company
believes that Sydney Rangers could earn an additional $2 million
income before interest and taxes by expanding into new markets.
However, the $5 million that the business needs for growth cannot
be raised within the family. The directors, who strongly wish to
retain family control of the company, must consider issuing
securities to outsiders.
Sydney Rangers’s Plan 1 is to borrow at 6%. Plan 2 is to issue
100,000 common shares. Plan 3 is to issue 100,000 non-voting, $3.75
preferred shares ( $3.75 is the annual dividend paid on each
preferred share). Sydney Rangers currently has net income of $3.5
million and 1 million common shares outstanding. The company’s
income tax rate is 25%.
Requirements:
1. Prepare an analysis to determine which plan will result in the
highest earning per common share.
2. Recommend one plan to the board of directors. Explain your
reasons.
In: Accounting
Thirty-four small communities in Connecticut (population near 10,000 each) gave an average of x = 138.5 reported cases of larceny per year. Assume that σ is known to be 44.3 cases per year.
(a) Find a 90% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.)
| lower limit | |
| upper limit | |
| margin of error |
(b) Find a 95% confidence interval for the population mean annual
number of reported larceny cases in such communities. What is the
margin of error? (Round your answers to one decimal place.)
| lower limit | |
| upper limit | |
| margin of error |
(c) Find a 99% confidence interval for the population mean annual
number of reported larceny cases in such communities. What is the
margin of error? (Round your answers to one decimal place.)
| lower limit | |
| upper limit | |
| margin of error |
(d) Compare the margins of error for parts (a) through (c). As the
confidence levels increase, do the margins of error increase?
As the confidence level increases, the margin of error increases.As the confidence level increases, the margin of error decreases. As the confidence level increases, the margin of error remains the same.
(e) Compare the lengths of the confidence intervals for parts (a)
through (c). As the confidence levels increase, do the confidence
intervals increase in length?
As the confidence level increases, the confidence interval increases in length.As the confidence level increases, the confidence interval decreases in length. As the confidence level increases, the confidence interval remains the same length.
In: Math
Thirty-two small communities in Connecticut (population near 10,000 each) gave an average of x = 138.5 reported cases of larceny per year. Assume that σ is known to be 41.3 cases per year. (a) Find a 90% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.) lower limit upper limit margin of error (b) Find a 95% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.) lower limit upper limit margin of error (c) Find a 99% confidence interval for the population mean annual number of reported larceny cases in such communities. What is the margin of error? (Round your answers to one decimal place.) lower limit upper limit margin of error (d) Compare the margins of error for parts (a) through (c). As the confidence levels increase, do the margins of error increase? As the confidence level increases, the margin of error decreases. As the confidence level increases, the margin of error increases. As the confidence level increases, the margin of error remains the same. (e) Compare the lengths of the confidence intervals for parts (a) through (c). As the confidence levels increase, do the confidence intervals increase in length? As the confidence level increases, the confidence interval decreases in length. As the confidence level increases, the confidence interval increases in length. As the confidence level increases, the confidence interval remains the same length.
In: Math