Babcock and Marks (2010) reviewed survey data from 2003-2005, and obtained an average of u = 14 hours per week spent studying by full-time students at 4-year colleges in the United States. To determine whether this average has changed in the past 10 years, a researcher selected a sample of n = 64 of today’s college students and obtained an average of M = 12.5 hours. If the standard deviation for the distribution is σ = 4.8 hours per week, does this sample indicate a significant change in the number of hours spent studying? Use a two-tail test with alpha = .05. List, number, state, and clearly show all 4 steps of the hypothesis test. For step 2, state alpha and describe the critical regions of the test statistic distribution. Step 4 must also answer the question posed in the problem. Clearly show all calculations steps to get answers including formulas needed to solve this problem. Answers must be typed or word processed.

Balotelli Co. had 3,000 units in its inventory on January 1, 2010. The unit cost of goods in the beginning inventory is $9.77. Balotelli purchased 2,000 units on January 6 and 2,700 units on January 26. The unit costs for January 6 and January 26 purchases are $10.30 and $10.71, respectively. Balotelli sells 2,500 units on January 7 and 4,000 units on January 31. Assuming that Balotelli maintains periodic inventory records, what should be the inventory at January 31, using the average cost inventory method, rounded to the nearest dollar?

Answer is $12,284. Please show me how to get that answer.

KC Corporation purchased a new machine for its assembly process on August 1, 2010. The cost of this machine was $150,000. The company estimated that the machine would have a salvage value of $24,000 at the end of its service life. Its life is estimated at 5 years and its working hours are estimated at 21,000 hours. Year-end is December 31. Instructions: Compute the depreciation expense under the following methods. (a) Straight-line depreciation. (b) Double-declining balance c) Search from the internet various accounting standards related to Depreciation.

From 1995-2010, the real exchange rate between the Australian dollar and the U.S.

     dollar (measured as the price of U.S. goods divided by the price of Australian goods)

     fell at an average rate of 5% per year. Over the same period, the average annual rate

     of inflation in Australia exceeded U.S. inflation by 2% per year. Given this

     information, what was the average annual percentage change in the nominal exchange

     rate between the two currencies, expressed as Australian dollars per U.S. dollar?

     Show your work and any formulas you use.  

New Era Cleaning Service, Inc. opened for business on July 1, 2010. During the month of July, the following transactions occurred:
July 1: Issued $18,000 of common stock for $18,000 cash
July 1: Purchased a truck for $11,000. Paid $4,000 in cash and borrowed the remainder (long term) from the bank.
July 3: Purchased cleaning supplies for $900 on account.
July 5: Paid $1,800 on a one-year insurance policy, effective July 1.
July 12: Billed customers $4,800 for cleaning services.
July 18: Paid $1,500 of the amount owed on the truck.
July 18: Paid $500 of the amount owed on cleaning services.

July 20: Paid $1,700 for employee salaries.

July 21: Collected $1,200 from customers billed on July 12.

July 25: Billed customers $1,900 for cleaning services.

July 31: Paid gas and oil for the month on the truck, $500.

July 31: Paid a $800 dividend.

Please complete the following tasks:
Post the July transactions to the general journal and the general ledger "T" accounts.

General journal

(#1 #2 #3 #4 #5 #6 #7 #8 #9 #10 #11 #12)

Adjusting entries:

(a) (b) (c) (d) (e)

General Ledger - T Accounts

My friend drives a 2010 Nissan Altima with ≈ 105,500 miles. Assuming he could drive this car for up to 5 more years and then sell, calculate the equivalent uniform annual cost of ownership over the next 5 years.

Specific Instructions:

1. Estimate 6 costs of ownership over the next 5 years. He knows his car is aging, so at least two of your cash flows need to be gradient cash flows. Explain each of your estimates (e.g. if you estimate a salvage value, explain why). There are many sources of information about costs for cars (library, internet, local mechanics,. . . ). The more specific your information is to this car, the better.

2. Compute his EUAC, showing work.

3. Now incorporate uncertainty into two of your estimates (each with three or more outcomes). Again, explain your estimates. Compute the expected value and standard deviation of EUAC.

4. Perform sensitivity analysis on 2 project parameters (different from the parameters used in part 3) which do not affect total EUAC linearly. Support your explanation of the sensitivity.

5. Identify one replacement options and calculate the same set of costs of ownership for that car.

6. Determine if and when you would recommend him to replace his car.

BIG TWO CORPORATION

Statement of Cash Flows

For the year Ended December 31, 2010

(In Millions)

Cash Flows from Operating Activities:

               Net Income                                                                                                                  117.5

               Sources of Cash

                              Depreciation                                                                                                 100.0

                              Accounts Payable                                                                                        40.0

               Uses of Cash

                              Accounts Receivable                                                                                   (60.0)

                              Inventories                                                                                                 (200.0)

               Net cash provided by operating activities                                             (2.5)

Cash Flows from Investing Activities:

               Cash Used for Fixed Assets                                                                                    (230.0)

Cash Flow from Financing Activities:         

                              Notes Payable                                                                                              50.0

                              Bonds Payable                                                                                            174.0

                              Common and Preferred Dividends                                                            (61.5)

               Net Cash Provided by Financing Activities                                           162.5

               Net decrease in cash and marketable securities                                                 (70.0)

               Cash and securities at beginning of the year                                                          80.0

               Cash and securities at end of the year                                                                    10.0

Required:

a. What were the two (2) main sources of cash inflow in the operating (water distribution) activities of Big Two Corporation and how was it utilized?

b. Does the sizeable increase in inventories indicate that the company is gearing up for a market share expansion or is it simply having a hard time selling its goods?

c. What were the likely cash source of Big Two Corporation’s fixed asset acquisition? Is there an indication that there was a proper matching of borrowing maturities and asset life?

d. Based on your assessment of the company’s cash flow statement, was the firm aggressive in financing its working capital requirements?

e. Based on the limited data in the cash flow statement, is Big Two Corporation highly leveraged? Please explain briefly.

Please create a vertical and horizontal analysis of the following balance sheet.

New Era Cleaning Service, Inc. opened for business on   
July 1, 2010. During the month of July, the following transactions occurred:  
      
July 1   Issued $18,000 of common stock for $18,000 cash.  
July 1   Purchased a truck for $11,000. Paid $4,000 in cash and borrowed the rest (long term) from the bank.  
July 3   Purchased cleaning supplies for $900 on account.  
July 5   Paid $1,800 on a one-year insurance policy, effective July 1.  
July 12   Billed customers $4,800 for cleaning services.  
July 18   Paid $1,500 of the amount owed on the truck.  
July 18   Paid $500 of the amount owed on cleaning supplies.  
July 20   Paid $1,700 for employee salaries.  
July 21   Collected $1,200 from customers billed on July 12.        
July 25   Billed customers $1,900 for cleaning services.         
July 31   Paid gas and oil for the month on the truck, $500.        
July 31   Paid a $800 dividend.   
Instructions:   

Post July transactions to the general journal and general ledger 'T' accounts   
      
   Prepare an unadjusted trial balance  
      
   Post the following adjustments   
   (a) Earned but unbilled fees at July 31 were $1,400  
   (b) Depreciation for the month was $200  
   (c) One-twelfth of the insurance expired  
   (d) An inventory count showed $300 of cleaning supplies remaining on July 31.  
   (e) Accrued but unpaid employee salaries were $500.  
      
   Prepare an adjusted trial balance  
      
   Post closing entries  
      
   Prepare a classified balance sheet and an income statement as of July 31.