Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows:

a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added.

b. Prepare a cost of quality report. Assume that sales are $3,040,000. If required, round percentages to one decimal place.

c. Prepare a value-added/non-value-added analysis.

d. What percentage of total costs of quality are considered to be value-added?

Wilson and Sons Corp. has bought a prime parcel of beachfront property and plans to build a luxury hotel. After meeting with the architectural team, the Wilson family has drawn up some information to make preliminary plans for construction. Excluding the suites, which are not part of this decision, the hotel will have four kinds of rooms: beachfront non-smoking, beachfront smoking, lagoon view non-smoking, and lagoon view smoking. In order to decide how many of each of the four kinds of rooms to plan for, the Wilson family will consider the following information.

• After adjusting for expected occupancy, the average nightly revenue for a beachfront non-smoking room is $175. The average nightly revenue for a lagoon view non-smoking room is $130. Smokers will be charged an extra $15.
• Construction costs vary. The cost estimate for a lagoon view room is $12,000 and for a beachfront room is $15,000. Air purifying systems and additional smoke detectors and sprinklers add $3000 to the cost of any smoking room. Wilson and Sons Corp. has raised $6.3 million in construction guarantees for this portion of the building.
• There will be at least 100 but no more than 180 beachfront rooms.
• Design considerations require that the number of lagoon view rooms be at least 50% more than beachfront rooms but no more than 150% of beachfront rooms.
• Industry trends recommend that the number of non-smoking rooms be at least 50% more the number of smoking rooms.

Formulate a linear programming model to maximize revenue and solve in Excel.

Include in your answer the:

1. Model
2. Excel input
3. Answer report
4. Description of the optimal solution

Three Rivers Inc. provides cable TV and Internet service to the local community. The activities and activity costs of Three Rivers are identified as follows: a. Identify the cost of quality classification for each activity and whether the activity is value-added or non-value-added. Quality Control Activities Activity Cost Quality Cost Classification Value-Added/ Non-Value-Added Classification Billing error correction $24,800 Cable signal testing 69,000 Reinstalling service (installed incorrectly the first time) 53,400 Repairing satellite equipment 18,400 Repairing underground cable connections to the customer 16,100 Replacing old technology cable with higher quality cable 104,300 Replacing old technology signal switches with higher quality switches 119,200 Responding to customer home repair requests 29,900 Training employees 24,900 Total activity cost $460,000 b. Prepare a cost of quality report. Assume that sales are $2,300,000. If required, round percentages to one decimal place. Three Rivers Inc. Cost of Quality Report Quality Cost Classification Quality Cost Percent of Total Quality Cost Percent of Total Sales Prevention $ % % Appraisal % % Internal failure % % External failure % % Total $ % % c. Prepare a value-added/non-value-added analysis. Three Rivers Inc. Value-Added/Non-Value-Added Activity Analysis Category Amount Percent Value-added $ % Non-value-added % Total $ % d. What percentage of total costs of quality are considered to be value-added?

1. The entry to record interest expense on a bank loan payable is a

2.Which of the following statements is true?

3.Roofer’s Inc. had an operating line of credit of $100,000 and overdrew its bank balance to result in a negative cash balance of $33,000 at year-end. This would be reported in the statement of financial position as

4.Which of the following statements is true?

Persons having Raynaud's syndrome are apt to suffer a sudden impairment of blood circulation in fingers and toes. In an experiment to study the extent of this impairment, each subject immersed a forefinger in water and the resulting heat output (cal/cm²/min) was measured. For m = 10 subjects with the syndrome, the average heat output was x = 0.61, and for n = 10 nonsufferers, the average output was 2.08. Let μ₁ and μ₂ denote the true average heat outputs for the sufferers and nonsufferers, respectively. Assume that the two distributions of heat output are normal with σ₁ = 0.3 and σ₂ = 0.5.

(a) Consider testing H₀: μ₁ − μ₂ = −1.0 versus H_a: μ₁ − μ₂ < −1.0 at level 0.01. Describe in words what H_a says, and then carry out the test.

H_a says that the average heat output for sufferers is the same as that of non-sufferers.H_a says that the average heat output for sufferers is less than 1 cal/cm²/min below that of non-sufferers.    H_a says that the average heat output for sufferers is more than 1 cal/cm²/min below that of non-sufferers.

Calculate the test statistic and P-value. (Round your test statistic to two decimal places and your P-value to four decimal places.)

State the conclusion in the problem context.

Fail to reject H₀. The data suggests that the average heat output for sufferers is less than 1 cal/cm²/min below that of non-sufferers.Fail to reject H₀. The data suggests that the average heat output for sufferers is the same as that of non-sufferers.    Reject H₀. The data suggests that the average heat output for sufferers is more than 1 cal/cm²/min below that of non-sufferers.Reject H₀. The data suggests that the average heat output for sufferers is the same as that of non-sufferers.

(b) What is the probability of a type II error when the actual difference between μ₁ and μ₂ is

μ₁ − μ₂ = −1.5?

(Round your answer to four decimal places.)


(c) Assuming that m = n, what sample sizes are required to ensure that β = 0.1 when

μ₁ − μ₂ = −1.5?

(Round your answer up to the nearest whole number.)
subjects

It is generally accepted that patients grow anxious when a person with a white coat and stethoscope walks into an examining room; i.e., patients have white coat hypertension. A family practitioner hypothesizes the opposite effect. To test this, the practitioner has colleagues from the practice randomly visit patients in a white coat or non-white sport coat, and measure their blood pressure. What can the practitioner conclude with an α of 0.05? Below are the systolic blood pressures of the patients.

a) What is the appropriate test statistic?
---Select--- na z-test One-Sample t-test Independent-Samples t-test Related-Samples t-test

b)
Condition 1:
---Select--- examining room white coat hypertension non-white coat white coat blood pressure
Condition 2:
---Select--- examining room white coat hypertension non-white coat white coat blood pressure

c) Compute the appropriate test statistic(s) to make a decision about H₀.
(Hint: Make sure to write down the null and alternative hypotheses to help solve the problem.)
p-value =  ; Decision:  ---Select--- Reject H0 Fail to reject H0

d) compute the corresponding effect size(s) and indicate magnitude(s).
If not appropriate, input and/or select "na" below.
d =  ;   ---Select--- na trivial effect small effect medium effect large effect
r² =  ;   ---Select--- na trivial effect small effect medium effect large effect

e) Make an interpretation based on the results.

The systolic blood pressure for patients that where visited by a practitioner with a white coat was significantly higher from patients that were visited by a practitioner in a non-white sport coat.

The systolic blood pressure for patients that where visited by a practitioner with a white coat was significantly lower from patients that were visited by a practitioner in a non-white sport coat.    

The systolic blood pressure for patients that where visited by a practitioner with a white coat did not significantly differ from patients that were visited by a practitioner in a non-white sport coat.

Described below are six independent and unrelated situations involving accounting changes. Each change occurs during 2018 before any adjusting entries or closing entries were prepared. Assume the tax rate for each company is 40% in all years. Any tax effects should be adjusted through the deferred tax liability account.

1. Fleming Home Products introduced a new line of commercial awnings in 2017 that carry a one-year warranty against manufacturer’s defects. Based on industry experience, warranty costs were expected to approximate 4% of sales. Sales of the awnings in 2017 were $2,800,000. Accordingly, warranty expense and a warranty liability of $112,000 were recorded in 2017. In late 2018, the company’s claims experience was evaluated and it was determined that claims were far fewer than expected: 3% of sales rather than 4%. Sales of the awnings in 2018 were $3,300,000, and warranty expenditures in 2018 totaled $75,075.
2. On December 30, 2014, Rival Industries acquired its office building at a cost of $860,000. It was depreciated on a straight-line basis assuming a useful life of 40 years and no salvage value. However, plans were finalized in 2018 to relocate the company headquarters at the end of 2022. The vacated office building will have a salvage value at that time of $630,000.
3. Hobbs-Barto Merchandising, Inc., changed inventory cost methods to LIFO from FIFO at the end of 2018 for both financial statement and income tax purposes. Under FIFO, the inventory at January 1, 2018, is $620,000.
4. At the beginning of 2015, the Hoffman Group purchased office equipment at a cost of $253,000. Its useful life was estimated to be 10 years with no salvage value. The equipment was depreciated by the sum-of-the-years’-digits method. On January 1, 2018, the company changed to the straight-line method.
5. In November 2016, the State of Minnesota filed suit against Huggins Manufacturing Company, seeking penalties for violations of clean air laws. When the financial statements were issued in 2017, Huggins had not reached a settlement with state authorities, but legal counsel advised Huggins that it was probable the company would have to pay $130,000 in penalties. Accordingly, the following entry was recorded:

Late in 2018, a settlement was reached with state authorities to pay a total of $273,000 in penalties.

6. At the beginning of 2018, Jantzen Specialties, which uses the sum-of-the-years’-digits method, changed to the straight-line method for newly acquired buildings and equipment. The change increased current year net earnings by $368,000.

  Prepare any journal entry necessary as a direct result of the change as well as any adjusting entry for 2018 related to the situation described.

1. Record Journal Entry as direct result of change.

2. Record adjusting entry for change in warranty.

3. as a direct result of the change.

4. Adjusting entry for depreciation.

5. a direct result of the change.

6. adjusting entry for change in inventory cost method.

7. as a direct result of the change.

8. adjusting entry for depreciation.

9. as a direct result of the change.

10. as a direct result of the change.

11. adjusting entry for change in depreciation method from sum-of-the-years'-digits method to straight-line method.

ABC Company sells two types of air conditioner systems – one for commercial use and one for residential use. The following inventory data was collected by the staff in the office of the controller for the first month of the company’s fiscal year.

The controller expects that the market for the commercial air conditioner systems market will decline in upcoming months, putting a downward pressure on future sales and the unit selling price as well.

The controller’s staff developed the following estimates:

Commercial Air Conditioner Systems, Net Realizable Value (per unit) $900

Residential Air Conditioner Systems, Net Realizable Value (per unit)                   $580

The normal profit margin is 16.67% of cost.

The company accounts for inventory using the FIFO cost allocation method and the perpetual system.

Commercial Air Conditioner Systems:

Based on the beginning balance, purchases and sales:

Calculate the ending inventory value at 1/30/18:

Calculate the COGS for the month ended 1/30/18:

        Note: BI + P – COGS = EI is the algebraic framework that can be used to calculate COGS.

Residential Air Conditioner Systems:

Based on the beginning balance, purchases and sales:

Calculate the ending inventory value at 1/30/18:

Calculate the COGS for the month ended 1/30/18:

        Note: BI + P – COGS = EI is the algebraic framework that can be used to calculate COGS.

Determine the dollar amount that management should report on the 1/31/18 balance sheet, after the lower of cost or net realizable value has been applied at the individual product level:

Determine the dollar amount that management should report on the 1/31/18 balance sheet, after the lower of cost or net realizable value has been applied at the major categories level, that is, commercial and residential air conditioning systems are aggregated into a single group:

Using the attached T-account template, prepare the entry or entries required to recognize a write-down of inventory.

A researcher has designed the relationship between the salaries of selected employees of an organization (shown as "EARN" in $/hour) and their years of education (shown as "YRSEDUC", in years) as hereunder. A total number of _(i) employees were selected for this study:

EARN_(i) = B₍₀₎ + B₍₁₎ YRSEDUC_(i) + u_(i)

Moreover, by applying this model on a database, the researcher found that the GRETL result shows the slope coefficient of the regression line as B₍₁₎ = 0.39 (assume 5% level of significance)

Using the above findings, answer the following questions:

A-Comment about the possible relationship between the two variables.

B-How do you interpret the slope coefficient of 0.39?