Questions
1. Determine the value for the constant "k" that will make the function below a PDF....
1. Determine the value for the constant "k" that will make the function below a PDF.
f(x) = k x^4 for x in (0,2) and f(x) = 0, for all other x ; k =
A. 8/3 B. 3/8 C. 3/64 D. 22/7 E. None of these
2. In a dice tossing random experiment , a red die and a green die are thrown independently . Consider as a random variable, X, the range in showing dots. for example if the red die is 6 and the green die is 4 , then the random variable has a value of 2 in that experiment. Calculate the probability, Pr(x=1) =
A) .278 B) .167 C) .111 D) .0556
3. Assume Z is a standard normal random variable, what is the area to right of z = -1.23
A) .1093 B) .8907 C) .3594 D) .6406 E) None of these
In: Math
An article in the New England Journal of Medicine described a randomized experiment that investigated the...
An article in the New England Journal of Medicine described a randomized experiment that investigated the effectiveness of two medications for nausea in patients undergoing chemotherapy treatments for cancer. In the experiment, 157 patients were divided at random into two groups. One group of 78 patients were given a standard anti-nausea drug called prochlorperazine, while the other group of 79 patients received delta-9-tetrahydrocannabinol (i.e., THC, the active ingredient in marijuana). Both medications were delivered orally and no patients were told which of the two drugs they were taking. The observed response was whether or not the patient experienced relief from nausea when undergoing chemotherapy. 16 of the patients taking prochlorperazine experienced relief from nausea, while 36 of the patients taking THC experienced relief from nausea. Conduct a significance test to determine if there is evidence that there is a difference in the effectiveness of the two drugs
In: Math
and analyze each of these experiments. You will prepare two separate analyses; for each analysis, include...
and analyze each of these experiments. You will prepare two separate analyses; for each analysis, include the following:
A brief summary of the study
A one paragraph explanation of the background in the field leading up to the study, and the reasons the researchers carried out the project.
The significance of the study to the field of psychology
A brief discussion of supportive or contradictory follow-up research findings and subsequent questioning or criticism from others in the field
A summary of at least one recent experiment (within the past two years) that is related to the seminal experiment (Hint: Excellent sources for recent research summaries are the American Psychological Association’s Monitor on Psychology and the Association for Psychological Science).
Your own evaluation of whether the breakthrough experiments of Drs. Gardner and Loftus were examples of genius, the zeitgeist, or some other factor. Use their own autobiographical accounts as well as your analyses of their experiments and personal stories to support your opinion.
In: Psychology
Spreadsheet and Statement The following 2016 information is available for Stewart Company: Condensed Income Statement for...
Spreadsheet and Statement
The following 2016 information is available for Stewart Company:
| Condensed Income Statement for 2016 | ||
|---|---|---|
| Sales | $9,000 | |
| Cost of goods sold | (6,000) | |
| Other expenses | (2,000) | |
| Loss on sale of equipment | (260) | |
| Gain on sale of land | 400 | |
| Net income | $1,140 | |
| Comparative Balance Sheets | ||||
|---|---|---|---|---|
| December 31, 2015 |
December 31, 2016 |
|||
| Cash | $700 | $1,130 | ||
| Accounts receivable | 450 | 310 | ||
| Inventory | 350 | 400 | ||
| Land | 300 | 500 | ||
| Equipment | 1,600 | 1,800 | ||
| Less: Accumulated depreciation | (200) | (150) | ||
| Total Assets | $3,200 | $3,990 | ||
| Accounts payable | $600 | $750 | ||
| Bonds payable (due 1/1/2018) | 1,000 | 1,000 | ||
| Common stock, $10 par | 900 | 1,400 | ||
| Retained earnings | 700 | 840 | ||
| Total Liabilities and Shareholders' Equity | $3,200 | $3,990 | ||
Partial additional information:
The equipment that was sold for cash had cost $400 and had a book value of $300.
Land that was sold brought a cash price of $530.
Fifty shares of stock were issued at par.
Required:
Making whatever additional assumptions that are necessary,
1. Prepare a spreadsheet to support a 2016 statement of cash flows for Stewart. If an amount is zero, enter "0".
Balances Balances Balances Change Worksheet Entries Debit Worksheet
Entries Credit
12/31/2015 12/31/2016
Entries
Debit Worksheet
Entries
Credit
Cash
Noncash Accounts:
Accounts receivable
Inventory
Land
Equipment
Totals
Credits
Accumulated depreciation
Accounts payable
Bonds pay. (due 1/1/2021)
Common stock, $10 par
Retained earnings
Totals
Cash Flow From Operating Activities
Net income
Add: Decrease in accounts receivable
Add: Loss on sale of equipment
Add: Depreciation expense
Add: Increase in accounts payable
Less: Increase in inventory
Less: Gain on sale of land
Cash Flows From Investing Activities
Proceeds from sale of land
Payment for purchase of land
Proceeds from sale of equipment
Payment for purchase of equipment
Cash Flows From Financing Activities
Proceeds from issuance of common stock
Payment of dividends
Net increase in cash
Totals
$ $
2. Prepare the statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.
| STEWART COMPANY | ||
| Statement of Cash Flows | ||
| For Year Ended December 31, 2016 | ||
| Operating Activities: | ||
| Net income | $ | |
| Adjustment for noncash income items: | ||
| Add: Depreciation expense | ||
| Add: Loss on sale of equipment | ||
| Less: Gain on sale of land | ||
| Adjustments for cash flow effects from working capital items: |
||
| Decrease in accounts receivable | ||
| Increase in inventory | ||
| Increase in accounts payable | ||
| Net cash provided by operating activities | $ | |
| Investing Activities: | ||
| Proceeds from sale of land | $ | |
| Payment for purchase of land | ||
| Proceeds from sale of equipment | ||
| Payment for purchase of equipment | ||
| Net cash used for investing activities | ||
| Financing Activities: | ||
| Proceeds from issuance of common stock | $ | |
| Payment of dividends | ||
| Net cash used for financing activities | ||
| Net increase in cash | $ | |
| Cash, January 1, 2016 | ||
| Cash, December 31, 2016 | $ | |
2. Prepare the statement of cash flows. Use the minus sign to indicate cash outflows, a decrease in cash or cash payments.
| STEWART COMPANY | ||
| Statement of Cash Flows | ||
| For Year Ended December 31, 2016 | ||
| Operating Activities: | ||
| Net income | $ | |
| Adjustment for noncash income items: | ||
| Add: Depreciation expense | ||
| Add: Loss on sale of equipment | ||
| Less: Gain on sale of land | ||
| Adjustments for cash flow effects from working capital items: |
||
| Decrease in accounts receivable | ||
| Increase in inventory | ||
| Increase in accounts payable | ||
| Net cash provided by operating activities | $ | |
| Investing Activities: | ||
| Proceeds from sale of land | $ | |
| Payment for purchase of land | ||
| Proceeds from sale of equipment | ||
| Payment for purchase of equipment | ||
| Net cash used for investing activities | ||
| Financing Activities: | ||
| Proceeds from issuance of common stock | $ | |
| Payment of dividends | ||
| Net cash used for financing activities | ||
| Net increase in cash | $ | |
| Cash, January 1, 2016 | ||
| Cash, December 31, 2016 | ||
In: Accounting
The problem below is an example of a question of the CPA “Other Objective Format” type as it was applied to the consolidations area.
Problem 5-8 (LO 2) CPA Objective, equipment, merchandise, bonds.
The problem below is an example of a question of the CPA “Other Objective Format” type as it was applied to the consolidations area. A mark-sensing answer sheet was used on the exam. You may just supply the answer, which should be accompanied by calculations where appropriate.
Presented below are selected amounts from the separate unconsolidated financial statements of Pero Corporation and its 90%-owned subsidiary Sean Company at December 31, 2016. Additional information follows:
Pero Corporation | Sean Company | |
|---|---|---|
Selected income statement amounts: | ||
Sales | $ 710,000 | $ 530,000 |
Cost of goods sold | 490,000 | 370,000 |
Gain on the sale of equipment | 21,000 | |
Earnings from investment in subsidiary (equity) | 63,000 | |
Other expenses | 48,000 | 75,000 |
Interest expense | 16,000 | |
Depreciation | 25,000 | 20,000 |
Selected balance sheet amounts: | ||
Cash | 30,000 | 18,000 |
Inventories | 229,000 | 150,000 |
Equipment | 440,000 | 360,000 |
Accumulated depreciation | (200,000) | (120,000) |
Investment in Sean (equity balance) | 211,000 | |
Investment in bonds | (100,000) | |
Discount on bonds | (9,000) | |
Bonds payable | (200,000) | |
Discount on bonds payable | 3,000 | |
Common stock | 100,000) | (10,000) |
Additional paid-in capital in excess of par | (250,000) | (40,000) |
Retained earnings | (402,000) | (140,000) |
Selected statement of retained earnings amounts: | ||
Beginning balance, December 31, 2015 | 272,000 | 100,000 |
Net income | 210,000 | 70,000 |
Dividends paid | 80,000 | 30,000 |
Additional information is as follows:
1. On January 2, 2016, Pero purchased 90% of Sean’s 100,000 outstanding common stock for cash of $175,000. On that date, Sean’s stockholders’ equity equaled $150,000, and the fair values of Sean’s assets and liabilities equaled their carrying amounts. Any remaining excess is considered to be goodwill.
2. On September 4, 2016, Sean paid cash dividends of $30,000.
3. On December 31, 2016, Pero recorded its equity in Sean’s earnings.
Required
1. Items (a) through (c) on page 311 represent transactions between Pero and Sean during 2016. Determine the dollar amount effect of the consolidating adjustment on 2016 consolidated net income. Ignore income tax considerations.
Items to be answered:
a. On January 3, 2016, Sean sold equipment with an original cost of $30,000 and a carrying value of $21,000 to Pero for $36,000. The equipment had a remaining life of three years and was depreciated using the straight-line method by both companies.
b. During 2016, Sean sold merchandise to Pero for $60,000, which included a profit of $20,000. At December 31, 2016, half of this merchandise remained in Pero’s inventory.
c. On December 31, 2016, Pero paid $94,000 to purchase 50% of the outstanding bonds issued by Sean. The bonds mature on December 31, 2022, and were originally issued at a discount. The bonds pay interest annually on December 31, and the interest was paid to the prior investor immediately before Pero’s purchase of the bonds.
2. Items (a) through (l) below refer to accounts that may or may not be included in Pero’s consolidated financial statements. The list on the right refers to the various possibilities of those amounts to be reported in Pero’s consolidated financial statements for the year ended December 31, 2016. Consider all transactions stated above in determining your answer. Ignore income tax considerations.
Items to be answered: | Responses to be selected: |
|---|---|
|
(AICPA adapted) |
In: Accounting
Ross Company has been in business for several years, during which time it has been profitable....
Ross Company has been in business for several years, during which time it has been profitable. For each of those years, Ross reported (and paid taxes on) taxable income in the same amount as pretax financial income based on the following revenues and expenses:
|
Revenues |
Expenses |
|
| 2012 | $182,000 | $150,000 |
| 2013 | 220,000 | 170,000 |
| 2014 | 253,000 | 180,000 |
| 2015 | 241,000 | 196,000 |
Ross was subject to the following income tax rates during this period: 2012, 20%; 2013, 25%; 2014, 30%; and 2015, 25%. During 2016, Ross experienced a severe decrease in the demand for its products. The company tried to offset this decrease with an expensive marketing campaign, but was unsuccessful. Consequently, at the end of 2016, Ross determined that its revenues were $60,000 and its expenses were $193,000 during 2016 for both income taxes and financial reporting.
Ross decided to carry back its 2016 operating loss because it was not confident it could earn taxable income in the future carryforward period. The income tax rate was 30% in 2016, and no change in the tax rate had been enacted for future years.
In 2017, Ross developed and introduced a new product that proved to be in high demand. On June 1, 2017, Ross received a refund check from the government based on the tax information it filed at the end of 2016. For 2017, Ross reported revenues of $181,000 and expenses of $155,000 for both income taxes and financial reporting. The applicable income tax rate was 30%.
Required:
| 1. | Prepare Ross’s income tax journal entries at the end of 2016. |
| 2. | Prepare Ross’s 2016 income statement. Include a note for any operating loss carryforward. |
| 3. | Prepare the journal entry to record the receipt of the refund check on June 1, 2017. |
| 4. | Prepare the income tax journal entry at the end of 2017. |
| 5. | Prepare Ross’s 2017 income statement. |
| CHART OF ACCOUNTS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ross Company | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| General Ledger | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Prepare Ross’s income tax journal entries on December 31, 2016. Additional Instruction
PAGE 1
GENERAL JOURNAL
| DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT | |
|---|---|---|---|---|---|
|
1 |
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|
2 |
|||||
|
3 |
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|
4 |
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|
5 |
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|
6 |
Prepare the journal entry to record the receipt of the refund check on June 1, 2017.
PAGE 1
GENERAL JOURNAL
| DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT | |
|---|---|---|---|---|---|
|
1 |
|||||
|
2 |
Prepare the income tax journal entry on December 31, 2017.
PAGE 1
GENERAL JOURNAL
| DATE | ACCOUNT TITLE | POST. REF. | DEBIT | CREDIT | |
|---|---|---|---|---|---|
|
1 |
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|
2 |
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|
3 |
|||||
|
4 |
| Amount Descriptions | |
| Expenses | |
| Net income | |
| Net loss | |
| Pretax operating income | |
| Pretax operating loss | |
| Revenues |
Prepare Ross’s 2016 income statement. Include a note for any operating loss carryforward. Additional Instructions
|
ROSS COMPANY |
|
Income Statement |
|
For Year Ended December 31, 2016 |
|
1 |
||
|
2 |
||
|
3 |
||
|
4 |
||
|
5 |
Net loss: The company has a operating loss carryforward that can be used within years to offset future taxable income and reduce income taxes.
Prepare Ross’s 2017 income statement. Additional Instructions
|
ROSS COMPANY |
|
Income Statement |
|
For Year Ended December 31, 2017 |
|
1 |
||
|
2 |
||
|
3 |
||
|
4 |
||
|
5 |
In: Accounting
Operating data for Navarro Corporation are presented below.
Operating data for Navarro Corporation are presented below.
Instructions
Prepare a schedule showing a vertical analysis for 2017 and 2016.
In: Finance
According to the 2016 COSO Fraud Risk Management Guide, what methods can an organization employ to...
According to the 2016 COSO Fraud Risk Management Guide, what methods can an organization employ to detect fraud?
In: Accounting
Based on the latest Companies Act 2016, discuss the difficulties in the process of monitoring directors...
Based on the latest Companies Act 2016, discuss the difficulties in the process of monitoring directors in discharging their duties. Illustrate with examples.
In: Accounting
What was the process by which ASU 2016-1 proposed changes were shared with the business, accounting,...
What was the process by which ASU 2016-1 proposed changes were shared with the business, accounting, and investment communities?
In: Accounting