With double-digit annual percentage increases in the cost of health insurance, more and more workers are likely to lack health insurance coverage (USA Today, January 23, 2004). The following sample data provide a comparison of workers with and without health insurance coverage for small, medium, and large companies. For the purposes of this study, small companies are companies that have fewer than 100 employees. Medium companies have 100 to 999 employees, and large companies have 1000 or more employees. Sample data are reported for 50 employees of small companies, 75 employees of medium companies, and 100 employees of large companies
Health Insurance
Size of Company
Yes
No
Total
Small
38
12
50
Medium
61
14
75
Large
90
10
100
Conduct a test of independence to determine whether employee health insurance coverage is independent of the size of the company. Use
= .05. Use Table 12.4.
Compute the value of the
2 test statistic (to 2 decimals).
The p value is
What is your conclusion?
The USA Today article indicated employees of small companies are more likely to lack health insurance coverage. Calculate the percentages of employees without health insurance based on company size (to the nearest whole number).
Small
%
Medium
%
Large
%
Based on the percentages calculated above, what can you conclude?
In: Statistics and Probability
Income Statement Covid Company for the year ended December 31, 2019 shows sales revenue $6,000,000 and COGS $3,800,000 . Accounts receivable increased $250,000 during the year, and inventory decreased $300,000. Accounts payable to suppliers of merchandise decreased $450,000 during the year. Accrued expenses payable decreased $90,000 during the year. Operating expenses include depreciation expense of $1,600,000. Depreciation expense was $100,000. Prepare Statement of Cash Flow Operating Activities Section for Covid Company.
In: Accounting
1)An online stock trading company makes part of their revenue from clients when the clients trade stocks therefore, it is important to the company to have an good idea of how many trades its clients are making in a given year. In a sample of 120 clients of an online stock trading company, the average number of trades per year was 82 with a standard deviation of 16. If you were to test the hypothesis that the average number of trades per year is different than the previous year when the average number of trades was 85 (using the 5% level of significance), what is p-value for this test? (please round your answer to 4 decimal places)
2)Nationwide, the mean amount of sales each week at Lowe’s store is normally distributed with a mean of $5.2 million with a standard deviation of $0.86 million. Lowe’s has decided to close 15% of its stores, and has chosen amount of sales as the criterion on which the decision will be based (they are going to close the 15% of the stores with the lowest sales). How much in sales does a store have to have in order to not be closed? (please express your answer in millions and round your answer to 2 decimal places)
In: Statistics and Probability
You have the following information for a Croatian company
| Revenue (Croatian Kuna) | CDS spread | Standard Dev of gov't bond | Standard Deviation of Stock Market | |
| EU (excluding Croatia) | 120 | 0.5% | 4% | 8% |
| South-easter Europe | 180 | 3% | 9% | 14% |
| Croatia | 250 | 2% | 7% | 12% |
German Euro bond rate = 0.50%. Croatian Gov't Bond, in local currency Kuna has a rate of 4%. Kuna's credit rating is 2%, the same as implied by the CDS spread.
Estimate the cost of equity for this company if a mature market such as US or Germany has an ERP of 5% and its beta=1.56
a.
14.95%
b.
17.45%
c.
11.05%
d.
18.25%
Please show work. Answer 11.05 is incorrect. Thanks
In: Finance
Changes in Various Ratios Presented below is selected information for Turner Company:
2019 2018
Sales revenue $950,000 $850,000
Cost of goods sold 575,000 545,000
Interest expense 20,000 20,000
Income tax expense 27,000 30,000
Net income 65,000 55,000
Cash flow from operating activities 70,000 60,000
Capital expenditures 45,000 45,000
Accounts receivable (net), December 31 126,000 120,000
Inventory, December 31 196,000 160,000
Stockholders’ equity, December 31 450,000 400,000
Total assets, December 31 750,000 675,000
Required Calculate the following ratios for 2019. The 2018 results are given for comparative purposes. Round answers to one decimal place. Use 365 days in a year.
2018 2019
1. Gross profit percentage 35.9% % blank
2. Return on assets 8.3% % blank
3. Return on sales 6.5% % blank
4. Return on common stockholders’ equity (no preferred stock was outstanding) 13.9% % blank
5. Accounts receivable turnover 8.0 blank
6. Average collection period 45.6 days blank days
7. Inventory turnover 3.6 blank
8. Times-interest-earned ratio 5.3 blank
9. Operating-cash-flow-to-capital-expenditures ratio 1.3 blank
In: Accounting
Changes in Various Ratios
Presented below is selected information for Brimmer Company:
| 2013 | 2012 | |
|---|---|---|
| Sales revenue | $913,000 | $840,000 |
| Cost of goods sold | 578,000 | 542,000 |
| Interest expense | 23,000 | 20,000 |
| Income tax expense | 30,000 | 24,000 |
| Net income | 64,000 | 52,000 |
| Cash flow from operating activities | 68,000 | 55,000 |
| Capital expenditures | 45,000 | 45,000 |
| Accounts receivable (net), December 31 | 129,000 | 120,000 |
| Inventory, December 31 | 199,000 | 160,000 |
| Stockholders' equity, December 31 | 453,000 | 400,000 |
| Total assets, December 31 | 733,000 | 660,000 |
Required
Calculate the following ratios for 2013. The 2012 results are given
for comparative purposes.
Round answers to one decimal place. Use 365 days in a year.
| 2012 | 2013 | |||
|---|---|---|---|---|
| 1. Gross profit percentage | 35.5% | % | ||
| 2. Return on assets | 8.3% | % | ||
| 3. Return on sales | 6.2% | % | ||
| 4. Return on common stockholders' equity | ||||
| (no preferred stock was outstanding) | 13.9% | % | ||
| 5. Accounts receivable turnover | 8.0 | |||
| 6. Average collection period | 45.6 | days | days | |
| 7. Inventory turnover | 3.6 | |||
| 8. Times-interest-earned ratio | 4.8 | |||
| 9. Operating-cash-flow-to-capital-expenditures ratio | 1.2 |
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In: Accounting
You are a recently designated accountant. As a result of having
your designation, you have been hired as the controller at a
national manufacturing company. Due to a recent economic slowdown,
the company has been struggling to meet earnings targets. These
targets are the basis for senior management bonuses. You report
directly to the CFO.
This is your second month with the company; however, it is your
first year end (December 31). The auditor will be coming to audit
the books in three weeks. You have fi nalized the fi nancial
statements, and
you have reviewed them with the CFO and the CEO.
The week before the auditor is expected to arrive, the CFO comes to
your office and explains that the financial results are very
disappointing. He explains that: on December 31, a sales contract
was signed for $500,000 of goods with delivery to take place
January 3. He asks you to record the revenue for this contract on
December 31, the date the contract is signed and before the work is
performed. This will result in early revenue recognition, and doing
so will eliminate the overall net loss for the year.
You are married with a stay-at-home spouse and two small children.
To celebrate your success, you recently purchased a new home. It
cost a little more than you planned to spend and the mortgage
payments are pretty expensive.
What would you do? What are the ethical issues you would need to
consider?
In: Accounting
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February: Fixed Component per Month Variable Component per Job Actual Total for February Revenue $ 277 $ 36,030 Technician wages $ 8,500 $ 8,350 Mobile lab operating expenses $ 4,700 $ 31 $ 8,880 Office expenses $ 2,700 $ 3 $ 2,970 Advertising expenses $ 1,560 $ 1,630 Insurance $ 2,860 $ 2,860 Miscellaneous expenses $ 950 $ 1 $ 395 The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,700 plus $31 per job, and the actual mobile lab operating expenses for February were $8,880. The company expected to work 140 jobs in February, but actually worked 144 jobs. Required: Prepare a flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February. (Indicate the effect of each variance by selecting "F" for favorable, "U" for unfavorable, and "None" for no effect (i.e., zero variance). Input all amounts as positive values.) This is the last question in the assignment. To submit, use Alt + S. To access other questions, proceed to the question map button.Next Visit question mapQuestion 8 of 8 Total
In: Accounting
In: Operations Management
On January 1, 2020, Sarasota Company purchased 10% bonds having a maturity value of $380,000, for $410,343.38. The bonds provide the bondholders with a 8% yield. They are dated January 1, 2020, and mature January 1, 2025, with interest received on January 1 of each year. Sarasota Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category. Prepare the journal entry at the date of the bond purchase.Prepare a bond amortization schedule.Prepare the journal entry to record the interest revenue and the amortization at December 31, 2020.Prepare the journal entry to record the interest revenue and the amortization at December 31, 2021.
In: Accounting