The Stearns Company uses a voucher system and records invoices at gross. Record the following transactions in the voucher register and/or check register as appropriate:

201X

• Dec. 1     Voucher no. 400 was prepared for the purchase of $4,500 worth of merchandise inventory from Rolo Company; terms 2/10, n/30.
• Dec. 2     Voucher no. 401 was prepared for freight-in that was to be paid to Langston Company, $340.
• Dec. 3     Office supplies were purchased from Mabra Company for $430; terms 2/10, n/30; voucher no. 402 was prepared.
• Dec. 8     Check no. 560 was issued in payment of voucher no. 400.
• Dec. 10 Purchased office equipment from Huer Company for $9,800; payment is to be in two equal installments. Voucher nos. 403 and 404 were prepared to cover these payments.
• Dec. 12 Check no. 561 was issued to pay voucher no. 403.
• Dec. 12 Check no. 562 was issued to pay voucher no. 401.
• Dec. 18 Purchased $7,000 of merchandise from Lou Corporation; terms 2/10, n/30; voucher no. 405 was prepared.
• Dec. 20 Purchased $3,100 of merchandise from Kote Company; terms 2/10, n/30; voucher no. 406 was prepared.
• Dec. 25 Check no. 563 was issued to pay voucher no. 405.
• Dec. 27 Returned $1,100 of merchandise bought from Kote Company; voucher no. 406 was canceled and voucher no. 407 was prepared.
• Dec. 29 Issued check no. 564 to pay voucher no. 407.

The Stokes Company uses a voucher system and records invoices at gross. Record the following transactions in the voucher register and/or check register as appropriate:

201X

Dec.           1     Voucher no. 300 was prepared for the purchase of $5,000 worth of merchandise inventory from Rodgers Company terms 2/10, n/30.

Dec.           2     Voucher no. 301 was prepared for freight-in that was to be paid to Labaro Company, $360.

Dec.           3     Office supplies were purchased from Mabin Company for $480; terms 2/10, n/30; voucher no. 302 was prepared.

Dec.           8     Check no. 610 was issued in payment of voucher no. 300.

Dec.         10     Purchased office equipment from Hanks Company for $9,400; payment is to be in two equal installments. Vouchers nos. 303 and 304 were prepared to cover these payments.

Dec.         12     Check no. 611 was issued to pay voucher no. 303.

Dec.         12     Check no. 612 was issued to pay voucher no. 301.

Dec.         18     Purchased $8,000 of merchandise from Lou Corporation terms 2/10, n/30; voucher no. 305 was prepared.

Dec.         20     Purchased $3,300 of merchandise from Ken Company; terms 2/10, n/30; voucher no. 306 was prepared.

Dec.         25     Check no. 613 was issued to pay voucher no. 305.

Dec.         27     Returned $800 of merchandise bought from Ken Company; voucher no. 306 was canceled and voucher no. 307 was prepared.

Dec.         29     Issued check no. 614 to pay voucher no. 307.

I am thinking about going into the hotel business through acquiring 12 hotels spread throughout the Rocky Mountain region. I have projected out the costs of hiring managers to run the hotels, as well as the other many costs of operating them. Based on this, I have a good handle on the cash flows the project will generate, and I now need to estimate the cost of equity I will use to discount these cash flows.

Unfortunately, I am out of time, and so I need you, my brilliant financial protege, to give me an estimate of a reasonable cost of equity for this project. Obviously, I don't have the 10 million needed to acquire the hotels myself and will need to attract additional equity financing from outside investors. So when I meet with these investors, I need a logical estimate and explanation for what the cost of equity is that they should be earning. So don't just give me a number, you have to tell me why you pick what you do.

Obviously, they could invest in many other hotel chains and management companies, many of which are publicly traded. So your best approach is to look at the cost of equity for these pure-plays (the ticker for Hilton is HLT, but I would rely on estimates from more than one company so look up their competitors) and make adjustments based on our situation. For instance, consider the following differences:

Are your pure-play firms more or less risky based on geographic dispersion relative to us?

Are your pure-play firms more or less risky based on easier access to additional capital?

Am I or these pure-plays more likely to achieve operating efficiency (higher profit margins) over the next four or five years?

There are certainly other considerations you might come up with that I am missing right now, so feel free to include them as well. But make adjustments to your estimates to fit my situation. Then write up your conclusions in a professional sounding report that is no longer than one page. Put any additional tables in an appendix.

(The 12 hotels are not relevant. They only give you the industry that you are researching. If you want to value a company, you have to figure out what companies in that same industry are selling for, or what kind of discount rate investors expect for firms in that industry. So you have to look at other firms in the same industry. So you will look up hotel firms, and calculate their cost of equity. And then you will make adjustments to their costs based on the subject firm with 12 hotels. So think about this logically. Would you rather invest in Hilton, with thousands of hotels, or this company with 12? Which is less risky? Which has more growth potential? These are the kinds of issues you would think about when estimating the cost of equity using the pure play approach. But no, this is not based on an actual firm, so there won't be stuff on the internet about it. )

Required:

For each of the following independent scenarios, determine whether Van Allen Corporation is a principal or an agent for purposes of applying the 5-step revenue recognition model.

1. Van Allen is a broker facilitating the sale of goods and will receive a commission of 10% of the purchase price, which will be withheld from the proceeds at the closing of the transaction and paid to Van Allen.

2. Van Allen is an art dealer. It displays artists' work in its gallery and sells the works at prices determined by the artists. When a piece sells, Van Allen remits to the artist the sales proceeds less a fee. which is the greater of 15% of the purchase price or $300.

3. Van Allen is an art dealer. Van Allen pays a "base purchase price" to the artist for each piece it acquires. It displays the artists' work in its gallery and sells the works at prices it negotiates with the customers. When a piece sells, Van Allen remits an additional payment to the artist if the sales proceeds exceed three times the original base purchase price. The additional payment is 25% of the amount by which the sales proceeds exceed the base purchase price

State the hypotheses, state the test statistic, state the P-value, make an decision, and state a conclusion.

A sample of five third graders took a reading test. They then went on their winter break, and took the test again when they returned. Following are the test scores for each of the students before and after the winter break. Can you conclude that the mean reading score was lower after the winter break? Use ? = 0.05. Assume the populations are normally distributed.

Part B: Critical Thinking-

Ms. Moscato Read the case study and answer the questions. Ms. Moscato, age 74, has aortic stenosis and is scheduled for an aortic valve replacement. She reports fatigue and dyspnea with exertion. 1. What may be the cause of Ms. Moscato’s aortic stenosis? 2. When obtaining Ms. Moscato’s medical history, what should the nurse ask that is relevant to the cause of aortic stenosis? 3. How does the heart compensate for aortic stenosis? 4. What should the nurse anticipate may occur in severe aortic stenosis? 5. Why is angina a common symptom of aortic stenosis?

The table below gives the number of hours five randomly selected students spent studying and their corresponding midterm exam grades. Using this data, consider the equation of the regression line, yˆ=b0+b1x, for predicting the midterm exam grade that a student will earn based on the number of hours spent studying. Keep in mind, the correlation coefficient may or may not be statistically significant for the data given. Remember, in practice, it would not be appropriate to use the regression line to make a prediction if the correlation coefficient is not statistically significant.

Hours Studying 1 3 4 5 6

Midterm Grades 65 66 67 74 97

A string quartet consists of two violinists, a violist, and a cellist. A survey of 100 string quartets (400 musicians) reported that 98 cellists had no violin experience and 74 violists had violin experience.
1. What is the probability of selecting a musician who plays or had played the violin?
2. Conditional on selecting a non-cellist, what is the probability of selecting someone who neither plays nor played the violin?
3. Suppose you want to study the monetary implications of switching instruments. What is the minimum probability of selecting a quartet in which at least one player has switched? State, make, and use minimal assumptions as needed.

Green Thumb Gardening is a small gardening service that uses activity-based costing to estimate costs for pricing and other purposes. The proprietor of the company believes that costs are driven primarily by the size of customer lawns, the size of customer garden beds, the distance to travel to customers, and the number of customers. In addition, the costs of maintaining garden beds depends on whether the beds are low maintenance beds (mainly ordinary trees and shrubs) or high maintenance beds (mainly flowers and exotic plants). Accordingly, the company uses the five activity cost pools listed below:

The company already has completed its first stage allocations of costs and has summarized its annual costs and activity as follows: