Al Essa Manufacturing holds a large portfolio of debt and equity investments. The fair value of the portfolio is greater than its original cost, even though some investments have decreased in value. Rakan Al Shaalan, the financial vice president, and Fhad Al Shamrani, the controller, are near year-end in the process of classifying for the first time this investment portfolio in accordance with IFRS. Al Shaalan wants to classify those investments that have increased in value during the period as trading investments in order to increase net income this year. He wants to classify all the investments that have decreased in value as non-trading (the equity investments) and as held-for-collection (the debt investments).

Al Shamrani disagrees. He wants to classify those investments that have

decreased in value as trading and those that have increased in value as

non-trading (equity) and held-for-collection (debt). He contends that

the company is having a good earnings year and that recognizing the

losses will help to smooth the income this year. As a result, the

company will have built-in gains for future periods when the company

may not be as profitable.

Instructions

Answer the following questions.

a. Will classifying the portfolio as each proposes actually have the

effect on earnings that each says it will?

b. Is there anything unethical in what each of them proposes? Who

are the stakeholders affected by their proposals?

c. Assume that Shaalan and Al Shamrani properly classify the entire

portfolio into trading, non-trading, and held-for-collection

categories. But then each proposes to sell just before year-end the

investments with gains or with losses, as the case may be, to

accomplish their effect on earnings. Is this unethical?

Addison Manufacturing holds a large portfolio of debt securities as an investment. The fair value of the portfolio is greater than its original cost, even though some debt securities have decreased in value. Sam Beresford, the financial vice president, and Angie Nielson, the controller, are near year-end in the process of classifying for the first time this securities portfolio in accordance with GAAP. Beresford wants to classify those securities that have increased in value during the period as trading securities in order to increase net income this year. He wants to classify all the securities that have decreased in value as held-to-maturity.

Nielson disagrees. She wants to classify those debt securities that have decreased in value as trading securities and those that have increased in value as held-to-maturity. She contends that the company is having a good earnings year and that recognizing the losses will help to smooth the income this year. As a result, the company will have built-in gains for future periods when the company may not be as profitable.

Instructions

Answer the following questions.

(a)  

Will classifying the portfolio as each proposes actually have the effect on earnings that each says it will?

(b)  

Is there anything unethical in what each of them proposes? Who are the stakeholders affected by their proposals?

(c)  

Assume that Beresford and Nielson properly classify the entire portfolio into trading, available-for-sale, and held-to-maturity categories. But then each proposes to sell just before year-end the securities with gains or with losses, as the case may be, to accomplish their effect on earnings. Is this unethical?

On April 6, Year 1, Home Furnishings purchased $25,200 of merchandise from Una Imports, terms 2/10 n/45. On April 8, Home returned $2,400 of the merchandise to Una Imports for credit. Home paid cash for the merchandise on April 15, Year 1.

What is the balance in the Accounts Payable account after the purchase, return, discount and payment have been recorded?

What is the balance in the Inventory account after the purchase, return, discount and payment transactions have been recorded?

Place the following into the above Strategy Portfolio Matrix for prior to COVID19 and again for during the COVID19 pandemic.

Office supplies, xray machines, personal protective equipment, laboratory supplies, food supplies and accessories, mobile devices (laptops, phones), ventillators, doctor and nurse surgical uniforms, repair parts for hospital air conditioning and heating systems, vending machine snacks and beverages, hospital beds, hospital room furnishings, needles/syringes/IV solutions, general drugs, hospitals consultants, auditors.

White Oaks Properties builds strip shopping centers and small malls. The company plans to replace its refrigeration, cooking and HVAC equipment with newer models in one entire center built 11 years ago. 11 years ago, the original purchase price of the equipment was $675,000 and the operating cost has averaged $235,000 per year. Determine the equivalent annual cost of the equipment if the company can now sell it for $234,000. The company's MARR is 22% per year.

The equivalent annual cost of the equipment is determined to be $_________?

Lab Text Manipulation

Inside the main method, do the following:

• Create an ArrayList of strings and call it parks.
• Read in the names of national parks from the user until the user enters done(or DONE,
  or dOnE, .. ) Keep in mind, that the names of some national parks consist of more than one word, for example, Mesa Verde.
  As you read in the national parks, add them to the list.
• Next, we are going to build a string based on the elements in the list parks. Since the text keeps changing as we add one park at a time, we use class StringBuilder for this task.
  • Use a StringBuilder called sb to create the string  nationalParks .
  • Loop through all the elements of the list  parks and add them one at a time.
    The resulting string should have the following format:
    Favorite National Parks: {park1} | {park2} | . . . | {parkN}
    The parks are separated by a space, a vertical bar, and another space. However, there is no vertical bar after the last element. {park1}, {park2}, {parkN} are the various list elements with updated spelling.
  • Create a private method to update the spelling.
    We can't control whether the user enters the park names in uppercase or lowercase letters. However, we can change the names to a spelling where all letters are lowercase except for the first letters of each individual word. In order to make those changes, create a private method called updateSpelling. It has the following method header:
    private static String updateSpelling(String text)
    E.g.: When you pass the string "MESA VERDE" the method returns "Mesa Verde"
    E.g.: When you pass "yEllOwstOnE" it returns "Yellowstone"
    E.g.: Passing "black canyon of the gunnison" returns "Black Canyon Of The Gunnison"
    E.g.: Passing "Denali" returns "Denali"
  • When you are done building the specified string in SringBuilder, print it.

The output depends on the information provided by the user.

Please enter your favorite National Park or DONE to stop: mesa verde
Please enter your favorite National Park or DONE to stop: black CANYON of ThE gunnisON
Please enter your favorite National Park or DONE to stop: DENALI
Please enter your favorite National Park or DONE to stop: yellowStone
Please enter your favorite National Park or DONE to stop: Done

Favorite National Parks: Mesa Verde | Black Canyon Of The Gunnison | Denali | Yellowstone

Martin Chuzzlewit purchased a vacant lot outside of London for £1,350,000 because he heard that a shopping mall was going to be built on the other side of the road. He figured that he could make a bundle by putting in a fast-food outlet on the site. As it turned out, the rumor was false. A sanitary landfill was located on the other side of the road, and Martin’s land was worthless. (£ denotes the British monetary unit, pounds sterling.)

Required:
With respect to the economic characteristics of costs, what type of cost is the £1,350,000 that Chuzzlewit paid for the vacant lot?

Multiple Choice

• Opportunity cost

• Administrative cost

• Sunk cost

• Selling cost

• Differential cost

In​ baseball, League A allows a designated hitter​ (DH) to bat for the​ pitcher, who is typically a weak hitter. In League​ B, the pitcher must bat. The common belief is that this results in League A teams scoring more runs. In interleague​ play, when League A teams visit League B​ teams, the League A pitcher must bat.​ So, if the DH does result in more​ runs, it would be expected that league A teams will score more runs in League A park than when visiting League B parks. To test this​ claim, a random sample of runs scored by league A teams with and without their DH is given in the accompanying table. Complete parts​ a) through​ d) below.

a) Draw​ side-by-side boxplots of the number of runs scored by League A teams with and without their DH. Choose the correct graph below.

A.

051015AB

Two boxplots, one above the other, share a horizontal axis labeled from 0 to 15 in increments of 1. The bottom boxplot is labeled A and has vertical line segments drawn at 4, 6, and 7. A box encloses the vertical line segments, and horizontal line segments extend from both sides of the box to 0 and 13. An x is plotted at 14. The top boxplot is labeled B and has vertical line segments at 3, 4.5, and 7. A box encloses the vertical line segments, and horizontal line segments extend from both sides of the box to 0 and 11.

B.

051015AB

Two boxplots, one above the other, share a horizontal axis labeled from 0 to 15 in increments of 1. The bottom boxplot is labeled A and has vertical line segments drawn at 4, 6, and 7. A box encloses the vertical line segments, and horizontal line segments extend from both sides of the box to 0 and 9. Three x's are plotted at 12, 13, and 14. The top boxplot is labeled B and has vertical line segments at 2, 3.5, and 6. A box encloses the vertical line segments, and horizontal line segments extend from both sides of the box to 0 and 10.

C.

051015AB

Two boxplots, one above the other, share a horizontal axis labeled from 0 to 15 in increments of 1. The bottom boxplot is labeled A and has vertical line segments drawn at 3, 5, and 6. A box encloses the vertical line segments, and horizontal line segments extend from both sides of the box to 0 and 12. Two x's are plotted at 13 and 14. The top boxplot is labeled B and has vertical line segments at 2, 3.5, and 6. A box encloses the vertical line segments, and horizontal line segments extend from both sides of the box to 0 and 12.

D.

051015AB

Two boxplots, one above the other, share a horizontal axis labeled from 0 to 15 in increments of 1. The bottom boxplot is labeled A and has vertical line segments drawn at 4, 6, and 7. A box encloses the vertical line segments, and horizontal line segments extend from both sides of the box to 1 and 14. The top boxplot is labeled B and has vertical line segments at 2, 3.5, and 6. A box encloses the vertical line segments, and horizontal line segments extend from both sides of the box to 0 and 12.

Does there appear to be a difference in the number of runs between these​ situations?

A. No but the number of runs scored in a League A park appear to be slightly higher than the number of runs scored in a League B park.

B. Yes because the number of runs scored in a League B park appear to have a higher median than the number of runs scored in a League A park.

C.Yes because the number of runs scored in a League A park appear to have a higher median than the number of runs scored in a League B park.

D.No because the number of runs scored in a League A park is about the same as the number of runs scored in a League B park.

​b) Explain why a hypothesis test may be used to test whether the mean number of runs scored for the two types of ballparks differ.

Select all that apply.

A.Each sample has the same sample size.

B.Each sample is obtained independently of the other.

C.Each sample size is small relative to the size of its population.

D.Each sample is a simple random sample.

E.Each sample size is large.

​c) Test whether the mean number of runs scored in a League A park is greater than the mean number of runs scored in a League B park at the

alphaα=0.05 level of significance.

Determine the null and alternative hypotheses for this test. Let mu Subscript Upper AμA

represent the mean number of runs scored by a League A team in a League A park and let

mu Subscript Upper BμB represent the mean number of runs scored by a League A team in a League B park.

Upper H 0H0​:

▼

sigma Subscript Upper AσA

pp mu Subscript Upper AμA

▼

greater than>

equals=

less than<

not equals≠

▼

sigma Subscript Upper BσB

mu Subscript Upper BμB

p 0p0

versus

Upper H 1H1​:

▼

mu Subscript Upper AμA

pp

sigma Subscript Upper AσA

▼

greater than>

equals=

less than<

not equals≠

▼

p0 mu Subscript Upper BμB sigma Subscript Upper BσB Find t0​,the test statistic for this hypothesis test. t0=nothing

​(Round to two decimal places as​ needed.)

Determine the​ P-value for this test.

​P-value=

​(Round to three decimal places as​ needed.)

State the appropriate conclusion. Choose the correct answer below.

A.Do not reject Upper H0. There is not sufficient evidenceThere is not sufficient evidence at the level of significance to conclude that games played with a designated hitter result in more runs.

B.Reject Upper H 0H0.There is not sufficient evidence at the level of significance to conclude that games played with a designated hitter result in more runs.

C.Do not reject Upper H0.There is sufficient evidenceat the level of significance to conclude that games played with a designated hitter result in more runs.

D.Reject Upper H0. There is sufficient evidenceThere is sufficient evidence at the level of significance to conclude that games played with a designated hitter result in more runs.

​d) Construct a 95​% confidence interval for the mean difference in the number of runs scored by League A teams in a League A park and the number of runs scored by League A teams in a League B park. Interpret the interval.

Lower​ bound:

Upper​ bound:

​(Round to three decimal places as​ needed.)

Interpret the confidence interval. Select the correct choice below and fill in the answer boxes to complete your choice.

​(Round to three decimal places as needed. Use ascending​ order)

A. We are 95​%confident the difference between the mean number of runs scored in a League A park and the mean number of runs scored in a League B park is between nothing and nothing.The confidence interval does not containdoes not contain ​zero, so there is sufficient evidence to conclude there is a difference in the mean number of runs scored with or without the DH.

B. We are 95​% confident the difference between the mean number of runs scored in a League A park and the mean number of runs scored in a League B park is between nothing and nothing.The confidence interval contains ​zero, so there is notis not sufficient evidence to conclude there is a difference in the mean number of runs scored with or without the DH.

On January 1, Park Corporation and Strand Corporation had condensed balance sheets as follows:

On January 2, Park borrowed $60,000 and used the proceeds to obtain 80 percent of the outstanding common shares of Strand. The acquisition price was considered proportionate to Strand’s total fair value. The $60,000 debt is payable in 10 equal annual principal payments, plus interest, beginning December 31. The excess fair value of the investment over the underlying book value of the acquired net assets is allocated to inventory (60 percent) and to goodwill (40 percent).

On a consolidated balance sheet as of January 2, what should be the amount for current assets?

On a consolidated balance sheet as of January 2, what should be the amount for noncurrent assets?