The Aluminum Association reports that the average American uses 56.8 pounds of aluminum in a year. A random sample of 50 households is monitored for one year to determine aluminum usage. If the population standard deviation of annual usage is 12.2 pounds, what is the probability that the sample mean will be each of the following?

Appendix A Statistical Tables

a. More than 58 pounds
b. More than 57 pounds
c. Between 56 and 58 pounds
d. Less than 55 pounds
e. Less than 47 pounds

(Round the values of z to 2 decimal places. Round your answers to 4 decimal places.)

a. enter the probability that the sample mean will be more than 58 pounds

b. enter the probability that the sample mean will be more than 57 pounds

c. enter the probability that the sample mean will be between 56 and 58 pounds

d. enter the probability that the sample mean will be less than 55 pounds

e. enter the probability that the sample mean will be less than 47 pounds

Adjusting entries:

1. Depreciation expense must be recorded for the year.
2. A count of the supplies inventory indicates that there are $500 in supplies remaining.
3. An inventory count indicates that there are 16,500 units of merchandise inventory in usable condition.
4. Prepaid rent should be adjusted to the correct balance at Dec 31.
5. Prepaid insurance should be adjusted to the correct balance at Dec 31.
6. Prepaid Security Services should be adjusted
7. You receive the phone and water bills but will not pay them until January 2020. The bills $400 for phone and $200 for water.
8. The bank statement shows that you earned $500 in interest for the year.
1. You calculate and accrue the interest due to the bank, which you will pay on January 2.

The balance sheet for Stud Clothiers is shown next. Sales for the year were $3,420,000, with 75 percent of sales sold on credit.

Compute the following ratios: (Use a 360-day year. Do not round intermediate calculations. Round your answers to 2 decimal places. Input your debt-to-total assets answer as a percent rounded to 2 decimal places.)

A- Current Ratio

B- Quick Ratio

C- Debt to total assets ratio-

D- Assest turnover-

E- Average collection period-

On the last day of the fiscal year, a co-worker asks you to cut a check for $2,000 as a miscellaneous expense for supplies in order to complete a project for a VIP customer today. You notice the invoice looks a little different from other invoices that are usually processed. You know that by preparing the closing entries tomorrow, the miscellaneous expense will be set to zero for the beginning of the year.

Respond to the following in a minimum of 175 words:

• Should you write this check today and record the expense or write the check tomorrow?
• How would the company be affected if the check is written and the invoice ends up being erroneous?

On Jan 1 of the current year (CY) Gates is given a nonqualified option to purchase

3,000 shares of stock in his employer at $10/ share for the next 10 years. The

current value of the stock is $10/share. If Gates resigns before the end of the

following year (12/31 CY+1) he forfeits the options. The value of the options is

determined to be $23/share. On May 1 of the 3

rd

year (CY+2) when the stock is

trading at $50/share Gates gives the company $30,000 to purchase the shares.

A.) What are the book/tax differences in each of the years? Are they favorable or

unfavorable, and are they permanent or temporary?

B.) If Gates exercised the options when the fair market value of the stock was $19 per

share how would the answer part A change?

For the coming year, Paulson Computers Inc. expects to produce 144,000 computers. Of these, 64,000 will be consumer (personal) computers and 80,000 will be small business computers. Common fixed overhead is $1,700,700. Additional information for the coming year is as follows:

Fixed selling and administrative expense for Paulson Computers is $2,959,700 per year.

1(a) Calculate the unit variable cost under variable costing.

2. Prepare a segmented variable-costing income statement for next year. The segments correspond to product lines: consumer computers and small business computers. Refer to the list of Labels and Amount Descriptions for the exact wording of text items within your income statement. If an amount is negative, first enter a minus sign (-).

A stock is expected to pay a dividend of $10 in one year. Its future annual dividends are expected to grow by 20% pa. The next dividend of $10 will be in one year, and the year after that the dividend will be $12 (=10*(1+0.2)^1), and a year later $14.4 (=10*(1+0.2)^2) and so on forever. Its required total return is 50% pa. The total required return and growth rate of dividends are given as effective annual rates. Calculate the payback period of buying the stock and holding onto it forever, assuming that the dividends are received as at each time, not smoothly over each year. Note that you will have to find the price of the stock first.

The Michener Company purchased a special machine 1 year ago at a cost of $12,000. At that time, the machine was estimated to have a useful life of 6 years and no disposal value. The annual cash operating cost is approximately $20,000. A new machine that has just come on the market will do the same job but with an annual cash operating cost of only $17,000. This new machine costs $15,000 and has an estimated life of 5 years with no disposal value. The old machine could be used as a trade-in at an allowance of $5,000. Straight-line depreciation is used and the company’s income tax rate is 40 percent.
Compute the internal rate of return on the new investment.

- What is the effective rate of a 4.25%, $250,000 30 year fixed rate mortgage with 1.5 discount points, if the mortgage is held for 10 years?

- What is the effective rate of a 4.25%, $250,000 30 year fixed rate mortgage with 1.5 discount points, if the mortgage is held for 1 year?

- You have two options for a 30 year fixed rate mortgage:

$500,000 mortgage, 5% rate

$500,000 mortgage, 4.50% rate, 2 discount points

For how long must the mortgage remain in effect for you to choose the lower rate and pay the discount points?

Dewey Corp. is expected to have an EBIT of $3,350,000 next year. Depreciation, the increase in net working capital, and capital spending are expected to be $270,000, $175,000, and $275,000, respectively. All are expected to grow at 20 percent per year for four years. The company currently has $22,000,000 in debt and 885,000 shares outstanding. After Year 5, the adjusted cash flow from assets is expected to grow at 2.7 percent indefinitely. The company’s WACC is 9.1 percent and the tax rate is 23 percent. What is the price per share of the company's stock? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)