IMT Co. reported the following selected information for 2010:

Sales revenue ..........................................................................................    $865,000

Cost of goods sold..................................................................................      360,000

Depreciation expense .............................................................................        43,000

Salaries & wages expense ……………………………………………...     178,000

Rent Expense …………………………………………………………..       95,000

                                                                                          Beginning of Year        End of Year

Accounts receivable .....................................                $ 15,000                 $ 35,000

Prepaid rent ...................................................                   21,000                    15,000

Salaries & wages payable .............................                   33,000                    18,000

Required:Use the above information to calculate:

The cash collected from customers

ii)The cash paid for depreciation

iii)The cash paid to employees

iv)The cash paid for rent

Consider a portion of monthly return data (In %) on 20-year Treasury Bonds from 2006–2010.

Estimate a linear trend model with seasonal dummy variables to make forecasts for the first three months of 2011. (Round intermediate calculations to at least 4 decimal places and final answers to 2 decimal places.)

(Conversion of Bonds) On January 1, 2010, when its $30 par value common stock was selling for $80 per share, Bartz Corp. issued $10,000,000 of 8% convertible debentures due in 20 years. The conversion option allowed the holder of each $1,000 bond to convert the bond into five shares of the corporation’s common stock. The debentures were issued for $10,600,000. The present value of the bond payments at the time of issuance was $8,500,000, and the corporation believes the difference between the present value and the amount paid is attributable to the conversion feature. On January 1, 2011, the corporation’s $30 par value common stock was split 2 for 1, and the conversion rate for the bonds was adjusted accordingly. On January 1, 2012, when the corporation’s $15 par value common stock was selling for $135 per share, holders of 20% of the convertible debentures exercised their conversion options. The corporation uses the straight-line method for amortizing any bond discounts or premiums.

Instructions

(a) Prepare the entry to record the original issuance of the convertible debentures.

(b) Prepare the entry to record the exercise of the conversion option, using the book value method. Show supporting computations in good form.

The McGee Cake Company I n early 2010, Doc and Lyn McGee formed the McGee Cake Company. The company produced a full line of cakes, and its specialties included chess cake,* lemon pound cake, and double-iced, double-chocolate cake. The couple formed the company as an outside interest, and both continued to work at their current jobs. Doc did all the baking, and Lyn handled the marketing and distribution. With good product quality and a sound marketing plan, the company grew rapidly. In early 2014, the company was featured in a widely distributed entrepreneurial magazine. Later that year, the company was featured in Gourmet Desserts, a leading specialty food magazine. After the article appeared in Gourmet Desserts, sales exploded, and the company began receiving orders from all over the world. Because of the increased sales, Doc left his other job, followed shortly by Lyn. The company hired additional workers to meet demand. Unfortunately, the fast growth experienced by the company led to cash flow and capacity problems. The company is currently producing as many cakes as possible with the assets it owns, but demand for its cakes is still growing. Further, the company has been approached by a national supermarket chain with a proposal to put four of its cakes in all of the chain's stores, and a national restaurant chain has contacted the company about selling McGee cakes in its restaurants. The restaurant would sell the cakes without a brand name. Doc and Lyn have operated the company as a sole proprietorship. They have approached you to help manage and direct the company's growth. Specifically, they have asked you to answer the following questions: QUESTIONS What are the advantages and disadvantages of changing the company organization from a sole proprietorship to an LLC? What are the advantages and disadvantages of changing the company organization from a sole proprietorship to a corporation? Ultimately, what action would you recommend the company undertake? Why?

1) Babcock and Marks (2010) reviewed survey data from 2003–2005, and obtained an average of μ = 14 per week spent studying by full-time students at four-year colleges in the United States. To determine whether this average has changed in recent years, a researcher selected a sample of n = 64 of today’s college students and obtained an average of M = 12.5 hours . If the standard deviation for the distribution is σ = 4.8 per week, does this sample indicate a significant change in the number of hours spent studying? Use a two-tailed test with α = .05. Report Cohen’s d to indicate the size of the effect if necessary. Step 1,2,3,4,5,6

1) Babcock and Marks (2010) reviewed survey data from 2003–2005, and obtained an average of μ = 14 per week spent studying by full-time students at four-year colleges in the United States. To determine whether this average has changed in recent years, a researcher selected a sample of n = 64 of today’s college students and obtained an average of M = 12.5 hours . If the standard deviation for the distribution is σ = 4.8 per week, does this sample indicate a significant change in the number of hours spent studying? Use a two-tailed test with α = .05. Report Cohen’s d to indicate the size of the effect if necessary. Step 1,2,3,4,5,6

Student loans: In an article from September 13, 2010, titled “Student Loan Default Rates Increase,” the website ed.gov analyzes trends in default rates for student loans over time. For the year 2008, the default rate for graduates was 7%. Suppose that we select random samples from this population of graduates from 2008. For each sample we calculate the proportion who defaulted on their loans. The sample size is 200.

A. check if normal model applies in this situation

B. State the parameter given in the problem

C. Find the standard distribution of the sample distribution (standard error)

D. Find the probability that in a random sample of 200 graduates, the default rate is more than 7.5%. Is this unusual?

Seller sells 4,000 diamonds to Buyer under Incoterms 2010 and loads them onto the HMS Bounty, a ship that is designated by the Buyer. Seller’s agent replaces 10 of those diamonds with fake ones and is caught after the HMS Bounty has sailed and quartered. The ship’s bill of lading states that the 4,000 diamonds were in proper condition and are genuine. Seller sends an SOS to the HMS Bounty informing the captain of this discovery and informs Buyer as well before the ship arrives at port. However, when the HMS Bounty docks, Buyer demands 4,000 genuine diamonds and sues the ship for the value of the 10 replaced diamonds. Do you think the HMS Bounty and its crew are liable?

Zambian Breweries sells its products in Zambia and three neighboring countries. Data collected from 2010 to 2018 shows that the company produced 300,000 barrels of beer annually. During this period, the average price per barrel of beer P (in Kwacha) was related to the quantity of beer sold Q (in thousands of barrels) by the demand function

P=-0.3224Q+245.4031

The total cost of producing Q thousand barrels of beer was

TCQ=101.1995Q+4699.3441

1. At what output level revenue be maximized?
2. Find the quantity and price levels that maximize profit.