Research conducted by Worldwide, Inc., a manufacturer of laptop computers, shows that potential laptop customers (i.e., “buyers”) differ in the importance that they attach to the following two laptop features:   (1) that the laptop include a solid state drive (i.e., SSD), and (2) that the laptop include a high resolution screen. A sample of five representative (prospective) customers of Worldwide reveals the following set of preferences for these attributes/benefits (the data are comma-delimited):

1, 6,    8

2, 3,     4

3, 4,     1

4, 4,     8

5, 5.5, 7       (this is not a typo: the x value for customer #5 is 5 ½)

where:

                  (1) the measurement scale is continuous, and ranges from 1=very unimportant to

     10=very important

                  (2) the first entry in a row is the respondent i.d. number

                  (3) the second entry (x-axis) is the importance weight attached to “includes a SSD”

                  (4) the third entry (y-axis) is the importance weight attached to “includes a high resolution

     screen”

For Question #1, parts (a) through (h) below, perform a k-means cluster analysis of the Worldwide data. For purposes of this question, set k= 2, and use the point (3,5) as initial centroid #1 and the point (6,1) as initial centroid #2. Perform all numeric calculations to 3 decimal places of precision (e.g., 8.352).

(1a) Which customers (i.e., “buyers”) are assigned to starting centroid #1, and what is the Euclidean distance between each of these customers and starting centroid #1? In your answer clearly indicate each customer’s id, and the Euclidean distance (to 3 decimal places) between the customer and starting (i.e., initial) centroid #1.

                                    Buyer id: _________          Distance: ____________

                                    Buyer id: _________          Distance: ____________

                                    Buyer id: _________          Distance: ____________

                                    Buyer id: _________          Distance: ____________

                                    Buyer id: _________          Distance: ____________

                  (Note: here, and below, complete for as many customers as appropriate)

(1b) Which customers are assigned to starting centroid #2, and what is the Euclidean distance between each of these customers and starting centroid #2? In your answer clearly indicate each customer’s id, and the Euclidean distance (to 3 decimal places) between the customer and starting centroid #2.

Buyer id: _________          Distance: ____________       

                                    Buyer id: _________          Distance: ____________       

                                    Buyer id: _________          Distance: ____________

                                    Buyer id: _________          Distance: ____________

                                    Buyer id: _________          Distance: ____________

(1c) Following your assignment (in 1a and 1b above) of customers to the two starting centroids, what are the revised (i.e., updated) centroid values for centroid #1 and centroid #2?   (Note: you can refer to these revisions as “1^st iteration”-revised centroids)

                  1^st iteration-revised centroid #1: ___________  

                  1^st iteration-revised centroid #2: ___________  

(1d) Next, based on your answer to part (1c), and continuing the k-means clustering process, which customers should be assigned to the 1^st iteration-revised centroid #1, and what is the Euclidean distance between each of these customers and the 1^st iteration-revised centroid #1?

                                    Buyer id: _________          Distance: ____________    

                                    Buyer id: _________          Distance: ____________    

                                    Buyer id: _________          Distance: ____________

                                    Buyer id: _________          Distance: ____________

                                    Buyer id: _________          Distance: ____________

(1e) Similarly, based on your answer to part (1c), which customers should be assigned to the 1^st iteration-revised centroid #2, and what is the Euclidean distance between each of these customers and the 1^st iteration-revised centroid #2?

Buyer id: _________          Distance: ____________   

                                    Buyer id: _________          Distance: ____________   

                                    Buyer id: _________          Distance: ____________   

                                    Buyer id: _________          Distance: ____________

                                    Buyer id: _________          Distance: ____________

(1f) Based on your customer assignments in parts (1d) and (1e), what are the 2^nd iteration-revised centroid values, for centroid #1 and centroid #2?

                  2^nd iteration-revised centroid #1: ___________    

                  2^nd iteration-revised centroid #2: ___________  

(1g) Are any additional iterations needed in this k-means clustering problem? Yes or no? Why or why not?

                  ___________________________________________________________________

(1h) What is the Euclidean distance between the final cluster centroids (i.e., the 2^nd iteration-revised centers)?

                  Distance = _______________

Exhibit: Costco Customers.

Customers at Costco spend an average of $130 per trip (The Wall Street Journal, October 6, 2010). One of Costco’s rivals would like to determine whether Costco's customers spend more per trip. A survey of the receipts of 25 customers found that the sample mean was $135.25. Assume that the population standard deviation of spending is $10.50 and the spending follows a normal distribution (use the significance level 0.07).

Round your solutions for this Exhibit to 4 decimal places.

1. Refer to the Exhibit Costco Customers.

Provide the null and the alternative hypotheses.

Group of answer choices

H0:μ≤130;H1:μ>130H0:μ≤130;H1:μ>130

H0:μ≥130;H1:μ<130H0:μ≥130;H1:μ<130

H0:μ≤135.25;H1:μ>135.25H0:μ≤135.25;H1:μ>135.25

H0:μ=130;H1:μ≠130H0:μ=130;H1:μ≠130

2. Refer to the Exhibit Costco Customers.

Compute the test statistic.

3. Refer to the Exhibit Costco Customers.

Calculate the p-value for the test.

4. Refer to the Exhibit Costco Customers.

State your conclusion for the test using the p-value.

Group of answer choices

p-value < 0.07, so we reject H_o. Therefore, there is enough evidence to conclude that Costco’s customers spend more than $130 per trip.

p-value < 0.07, so we reject H_o. Therefore, there is not enough evidence to conclude that Costco’s customers spend more than $130 per trip.

p-value < 0.07, so we cannot reject H_o. Therefore, there is enough evidence to conclude that Costco’s customers spend more than $130 per trip.

p-value < 0.07, so we cannot reject H_o. Therefore, there is not enough evidence to conclude that Costco’s customers spend more than $130 per trip.

Vernon Company has an opportunity to purchase a forklift to use in its heavy equipment rental business. The forklift would be leased on an annual basis during its first two years of operation. Thereafter, it would be leased to the general public on demand. Vernon would sell it at the end of the fifth year of its useful life. The expected cash inflows and outflows follow:

Required

1. a.&b. Determine the payback period using the accumulated and average cash flows approaches. (Round your answers to 1 decimal place.)

a. Payback period (accumulated cash flows) = ? years

b. Payback period (average cash flows) = ? years

Journalize the July transactions. Use journal page 1. Post the July transactions from page J1 to the general ledger. Prepare a trial balance at July 31 using the running balance total for each account in the ledger. Journalize the adjusting entries. Use journal page 2. Post the July adjusting entries from page J2 to the general ledger. Prepare an adjusted trial balance at July 31 using the updated running balance total for each account in the ledger. Prepare the Income Statement for July. Prepare the Statement of Owners Equity for July. Prepare a classified Balance Sheet at July 31, 2019. Journalize the necessary closing entries. Use journal page 3. Post the July closing entries from page J3 to the general ledger. Prepare a post-closing trial balance at July 31. Alexis Mohamed opened Beachy-Kleen Cleaning Service on July 1, 2019. During July, the company completed the following transactions: July 1 Owner Alexis Mohamed invested $35,000 cash and $7,865 of cleaning equipment in the business. 1 Purchased a used truck for $12,500, paying $2,500 cash and the balance on account. 3 Purchased cleaning supplies for $1,973 on account. 5 Paid $1,800 on a one-year insurance policy, effective July 1. 12 Billed customers $3,927 for cleaning services. 15 Received $1,875 from customers for future cleaning services. 18 Paid $3,000 of amount owed on truck. 20 Paid $765 for employee salaries. 21 Collected $2,540 from customers billed on July 12. 25 Billed customers $5,750 for cleaning services. 31 Paid gasoline for the month on the truck, $287. 31 Owner Alexis Mohamed withdrew $1,200 for personal use. Adjustments: July 31 Earned but unbilled fees at July 31 were $1,936. Depreciation on truck for the month was $225. Earned $475 of payment received on July 15. One-twelfth of the insurance expired. An inventory count shows $492 of cleaning supplies on hand at July 31. Accrued but unpaid employee salaries were $469

Ledgers are needed as well as journals 1, 2 and 3.

Estate Finance Family Tax Plan Question

1. Larry gives Jeff 1 share of David, Inc. stock on January 2, 2002 that has a basis of $200,000. On January 2, 2002, 1 share of David Inc. stock has a fair market value of $100,000. On January 2, 2004, Jeff sells the share to Leon for $210,000. How much income does Jeff recognize on the sale? Analyze what Jeff's basis is in the stock and why.

JAVA PROGRAMMING

RecallNoIF!

Write a program named RecallNoIF that reads an integer representing a year. (In this case there is no prompt from the program.) The program prints out RECALL if the year was 2004, 2010 or 2015 and NO RECALL otherwise.

CONSTRAINT: Nowhere in the program is an if statement used.

REMINDER: the program's output is shown here in bold; the user's data entry is shown here in italics.

Sample Interactive Run 1:

2010
RECALL

Sample Interactive Run 2:

2012
NO RECALL

What does article mean?

Revenue Recognition

Revenue recognition for multiple-element arrangements requires judgment to determine if multiple elements exist, whether elements can be accounted for as separate units of accounting, and if so, the fair value for each of the elements.

Judgment is also required to assess whether future releases of certain software represent new products or upgrades and enhancements to existing products. Certain volume licensing arrangements include a perpetual license for current products combined with rights to receive unspecified future versions of software products and are accounted for as subscriptions, with billings recorded as unearned revenue and recognized as revenue ratably over the coverage period.

Software updates are evaluated on a case-by-case basis to determine whether they meet the definition of an upgrade, which may require revenue to be deferred and recognized when the upgrade is delivered. If it is determined that implied post-contract customer support (“PCS”) is being provided, revenue from the arrangement is deferred and recognized over the implied PCS term. If updates are determined to not meet the definition of an upgrade, revenue is generally recognized as products are shipped or made available.

Microsoft enters into arrangements that can include various combinations of software, services, and hardware. Where elements are delivered over different periods of time, and when allowed under U.S. GAAP, revenue is allocated to the respective elements based on their relative selling prices at the inception of the arrangement, and revenue is recognized as each element is delivered. We use a hierarchy to determine the fair value to be used for allocating revenue to elements: (i) vendor-specific objective evidence of fair value (“VSOE”), (ii) third-party evidence, and (iii) best estimate of selling price (“ESP”). For software elements, we follow the industry-specific software guidance which only allows for the use of VSOE in establishing fair value. Generally, VSOE is the price charged when the deliverable is sold separately or the price established by management for a product that is not yet sold if it is probable that the price will not change before introduction into the marketplace. ESPs are established as best estimates of what the selling prices would be if the deliverables were sold regularly on a stand-alone basis. Our process for determining ESPs requires judgment and considers multiple factors that may vary over time depending upon the unique facts and circumstances related to each deliverable.

Customers purchasing a Windows 10 license will receive unspecified updates and upgrades over the life of their Windows 10 device at no additional cost. As these updates and upgrades will not be sold on a stand-alone basis, we are unable to establish VSOE. Accordingly, revenue from licenses of Windows 10 is recognized ratably over the estimated life of the related device, which ranges between two to four years.

The new standard related to revenue recognition will have a material impact on our consolidated financial statements. See Note 1 – Accounting Policies in the Notes to Financial Statements (Part II, Item 8 of this Form 10-K) for further discussion

Cane Company manufactures two products called Alpha and Beta that sell for $215 and $160, respectively. Each product uses only one type of raw material that costs $7 per pound. The company has the capacity to annually produce 125,000 units of each product. Its average cost per unit for each product at this level of activity are given below: Alpha Beta Direct materials $ 42 $ 21 Direct labor 35 28 Variable manufacturing overhead 23 21 Traceable fixed manufacturing overhead 31 34 Variable selling expenses 28 24 Common fixed expenses 31 26 Total cost per unit $ 190 $ 154 The company considers its traceable fixed manufacturing overhead to be avoidable, whereas its common fixed expenses are unavoidable and have been allocated to products based on sales dollars.

4. Assume that Cane expects to produce and sell 106,000 Betas during the current year. One of Cane’s sales representatives has found a new customer who is willing to buy 4,000 additional Betas for a price of $74 per unit. What is the financial advantage (disadvantage) of accepting the new customer's order?

5. Assume that Cane expects to produce and sell 111,000 Alphas during the current year. One of Cane's sales representatives has found a new customer who is willing to buy 26,000 additional Alphas for a price of $144 per unit; however pursuing this opportunity will decrease Alpha sales to regular customers by 12,000 units. a. What is the financial advantage (disadvantage) of accepting the new customer’s order? b. Based on your calculations above should the special order be accepted?

Assume that Cane normally produces and sells 106,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line?

Assume that Cane normally produces and sells 106,000 Betas per year. What is the financial advantage (disadvantage) of discontinuing the Beta product line?

8. Assume that Cane normally produces and sells 76,000 Betas and 96,000 Alphas per year. If Cane discontinues the Beta product line, its sales representatives could increase sales of Alpha by 16,000 units. What is the financial advantage (disadvantage) of discontinuing the Beta product line?

9. Assume that Cane expects to produce and sell 96,000 Alphas during the current year. A supplier has offered to manufacture and deliver 96,000 Alphas to Cane for a price of $144 per unit. What is the financial advantage (disadvantage) of buying 96,000 units from the supplier instead of making those units?

10. Assume that Cane expects to produce and sell 71,000 Alphas during the current year. A supplier has offered to manufacture and deliver 71,000 Alphas to Cane for a price of $144 per unit. What is the financial advantage (disadvantage) of buying 71,000 units from the supplier instead of making those units? 11. How many pounds of raw material are needed to make one unit of each of the two products?

11. How many pounds of raw material are needed to make one unit of each of the two products?

12. What contribution margin per pound of raw material is earned by each of the two products? (Round your answers to 2 decimal places.)

13. Assume that Cane’s customers would buy a maximum of 96,000 units of Alpha and 76,000 units of Beta. Also assume that the company’s raw material available for production is limited to 246,000 pounds. How many units of each product should Cane produce to maximize its profits?

14. Assume that Cane’s customers would buy a maximum of 96,000 units of Alpha and 76,000 units of Beta. Also assume that the company’s raw material available for production is limited to 246,000 pounds. What is the maximum contribution margin Cane Company can earn given the limited quantity of raw materials?

15. Assume that Cane’s customers would buy a maximum of 96,000 units of Alpha and 76,000 units of Beta. Also assume that the company’s raw material available for production is limited to 246,000 pounds. If Cane uses its 246,000 pounds of raw materials, up to how much should it be willing to pay per pound for additional raw materials? (Round your answer to 2 decimal places.)

Entries for Bad Debt Expense under the Direct Write-Off and Allowance Methods

The following selected transactions were taken from the records of Shipway Company for the first year of its operations ending December 31:

For those amount boxes in which no entry is required, leave the box blank. If an entry is not required, select "No entry" from the dropdown box(es).

a. Journalize the transactions under the direct write-off method.

b. Shipway Company uses the percent of credit sales method of estimating uncollectible accounts expense. Based on past history and industry averages, 2% of credit sales are expected to be uncollectible. Shipway Company recorded $721,700 of credit sales during the year.

Journalize the transactions under the allowance method.

c. How much higher (lower) would Shipway Company's net income have been under the direct write-off method than under the allowance method?

  by $