HCM 213

Q1. Balance sheet. The following are account balances as of September 30, 2020, for Ray

Hospital. Prepare a balance sheet at September 30, 2020. (Hint net assets will also need

to be calculated.) Also Find out the Current Ratio (1 Mark) and Net Working Capital (1 Mark)

Givens

Gross plant, property, and equipment $70,000,000

Accrued expenses                                           $6,000,000

Cash                                                                $8,000,000

Net accounts receivable                                $15,500,000

Accounts payable                                           $7,000,000

Long-term debt                                              $45,000,000

Supplies                                                          $3,000,000

Accumulated depreciation                           $5,000,000

SurveyUSA conducted a poll from March 4, 2020 to March 6, 2020 regarding how concerned people were about the Wuhan Coronavirus. One of the questions asked, "As a result of the coronavirus, have you bought anti-bacterial surface wipes?" The results are summarized in the table below.

Using your tools from the probability chapter, does it appear that buying anti-bacterial wipes is independent of gender?

• Yes, it does appear that buying anti-bacterial wipes is independent of gender.
• No, it appears that buying anti-bacterial wipes and gender are dependent.

Explain.

Are female and purchasing anti-bacterial wipes mutually exclusive (disjoint)?

• Yes, being female and purchasing anti-bacterial wipes are mutually exclusive.
• No, being female and purchasing anti-bacterial wipes are not mutually exclusive.

Explain.

Aires Corporation Comparative Balance Sheets December 31, 2020 and 2019 Assets 2020 2019 Change Cash $ 21,000 $ 54,000 Accounts receivable (net) 421,000 480,000 Inventory 310,000 340,000 Prepaid expenses 17,000 15,000 Long Term Investments 70,000 80,000 Land 400,000 300,000 Equipment 1,730,000 1,590,000 Accumulated depreciation-equipment (610,000) (600,000) Patent 40,000 50,000 Total assets $2,399,000 $2,309,000 Liabilities Accounts payable $ 328,000 $ 335,000 Accrued liabilities 171,000 170,000 Income taxes payable 22,000 34,000 Bonds payable 410,000 700,000 Long-term note payable 130,000 0 Total liabilities $1,061,000 $1,239,000

Stockholders' Equity Common stock $ 800,000 $ 600,000 Additional paid-in capital 152,000 152,000 Retained

earnings 386,000 318,000 Total stockholders' equity $1,338,000 $1,070,000 Total liabilities and stockholders' equity $2,399,000 $2,309,000 Aires Corporation Income Statement Year Ended December 31, 2020 Sales $638,700 Cost of merchandise sold 302,000 Gross profit $336,700 Operating expenses: Depreciation expense $70,000 Amortization expense 10,000 Other operating expenses 58,000 138,000 Income from operations $198,700 Other income/(expenses): Gain on sale of equipment $3,000 Loss on sale of investment (2000) Interest income 6,000 7,000 Income before income tax $205,700 Income tax 62,700 Net income $143,000 a) Issued a long-term note payable in exchange for computer equipment for $130,000. b) Purchased computer equipment for $90,000. c) Sold investments costing $10,000 for $8,000 (Hint: Calculate gain or loss) d) Sold equipment costing $80,000 with accumulated depreciation of $60,000 for $23,000 (Hint: Calculate gain or loss) e) f) Repayment of bonds payable at par for $290,000. g) Declared and paid dividends of $75,000. h) Issued 20,000 shares of common stock at par value of $10 per share. i) Paid $100,000 for land intended for a new plant site.

Required: a) Prepare a statement of cash flows using the indirect method. Include a schedule of noncash investing and financing transactions, if applicable. b) Calculate (Write final answer in space provided below. Show calculation). Ratio Answer Free Cash Flows

A random sample of drug addicts in Seattle participated in a program to reduce drug dependency. Time 1 is a measure of the number of illegal drugs they took per day before participating in the program. Time 2 is a measure of the number of illegal drugs they took after participating in the program. You have been hired to evaluate the success of the program. You hypothesize that the average number of illegal drugs consumed by the addicts after participating in the program will decrease compared to the average number of illegal drugs consumed prior to participating in the program. Below are the data.

Interpret your answer using an alpha of .05.

Studying dose response is central to determining ”safe” and ”hazardous” levels and dosages for potential pollutants. These conclusions are often the basis for environmental policy. The U.S. Environmental Protection Agency has developed extensive guidance and reports on dose-response modeling and assessment. In this problem, we study the relationship between the level of microplastics (considered a pollutant) in fresh water and stress response in freshwater mussels (with a higher level of stress indicating shorter survival times).

(a) Go to the course webpage and under Datasets, download the CSV file “exposure.csv” and follow the accompanying Minitab instructions. Copy and paste the Fitted Line Plots and the Residual Plots in a blank document. Print these out and attach them to your homework.

(b) What is the fitted equation before taking observation #21 out? What is the fitted equation after taking observation #21 out?

(c) What is the R² for the data set before observation #21 was taken out? What is the R² after this observation was taken out? Comment briefly on what this means.

(d) Comment on the residual plots and the Fitted Line plot for the regression model with observation #21 included and the residual plots and the Fitted Line plot for the regression model with obs. #21 taken out. What has changed after removing this point?

exposure.csv

MicroPlastic,Stress

0.1,0.07

0.45401,4.1673

1.09765,6.5703

1.27936,13.815

2.20611,11.4501

3.50064,12.9554

4.0403,20.1575

5.23583,17.5633

6.45308,26.0317

7.1699,22.7573

8.28474,26.303

9.59238,30.6885

10.92091,33.9402

11.66066,30.9228

12.79953,34.11

13.97943,44.4536

14.41536,46.5022

15.71607,50.0568

16.70156,46.5475

17.16463,45.7762

18.8234,2.3253

A golf club manufacturer claims that golfers can lower their scores by using the manufacturer's newly designed golf clubs. Eight golfers are randomly selected and each is asked to give his or her most recent score. After using the new clubs for one month, the golfers are asked again to give their most recent score. The scores for each golfer are given in the table below. Is there enough evidence to support the manufacturer's claim? Let d=(golf score after using the newly designed golf clubs)−(golf score before using the newly designed golf clubs) . Use a significance level of α=0.05 for the test. Assume that the scores are normally distributed for the population of golfers both before and after using the newly designed clubs.

Golfer 1 2 3 4 5 6 7 8

Score (old design) 93 86 84 96 89 81 92 94

Score (new design) 91 90 80 92 91 77 89 87

Step 1 of 5: State the null and alternative hypotheses for the test.

Step 2 of 5: Find the value of the standard deviation of the paired differences. Round your answer to one decimal place.

Step 3 of 5: Compute the value of the test statistic. Round your answer to three decimal places.

Step 4 of 5: Find the p-value for the hypothesis test. Round your answer to four decimal places.

Step 5 of 5: Draw a conclusion for the hypothesis test.

An SAT prep course claims to improve the test score of students. The table below shows the scores for seven students the first two times they took the verbal SAT. Before taking the SAT for the second time, each student took a course to try to improve his or her verbal SAT scores. Do these results support the claim that the SAT prep course improves the students' verbal SAT scores?

Let d=(verbal SAT scores prior to taking the prep course)−(verbal SAT scores after taking the prep course)d=(verbal SAT scores prior to taking the prep course)−(verbal SAT scores after taking the prep course). Use a significance level of α=0.01 for the test. Assume that the verbal SAT scores are normally distributed for the population of students both before and after taking the SAT prep course.

a) State the null and alternative hypotheses for the test.

b) Find the value of the standard deviation of the paired differences. Round your answer to three decimal place.

c) Compute the value of the test statistic. Round your answer to three decimal places.

d) Determine the decision rule for rejecting the null hypothesis. Round the numerical portion of your answer to three decimal places.

e) Make the decision for the hypothesis test.

Country X and country Y both produce bicycles and sweaters. In country X each worker in a day can produce either 5 bicycles or 20 sweaters. In country Y each worker in a day can produce either 3 bicycles of 18 sweaters. Each country has constant opportunity cost of production and each has 100 workers. Enter whole numbers in each blank.

In country X the opportunity cost of producing one bicycle is ____ sweaters and in country Y the opportunity cost of producing one bicycle is_____ sweaters.

Initially the two countries do not trade. Country X allocates 60 workers to bicycle production and 40 workers to sweater production so they produce a total of ____ bicycles and _____ sweaters. Country Y allocates 60 workers to bicycle production and 40 workers to sweater production so they produce a total of ____ bicycles and ____sweaters.

The two countries decide to completely specialize and then engage in trade. With specialization country X will produce _____ bicycles and_____ sweaters, and country Y will produce ____ bicycles and ____ sweaters. The two countries decide to trade 190 bicycles in exchange for 950 sweaters. After trade country X will consume _____ bicycles and ______ sweaters, and country Y will consume_____ bicycles and ____ sweaters.

After specialization and exchange, country X is able to consume____ more bicycles and _____ more sweaters than it could before trade. Country Y is able to consume ____ more bicycles and_____ more sweaters after specialization and exchange than it could before specialization and exchange.

An SAT prep course claims to improve the test score of students. The table below shows the scores for seven students the first two times they took the verbal SAT. Before taking the SAT for the second time, each student took a course to try to improve his or her verbal SAT scores. Do these results support the claim that the SAT prep course improves the students' verbal SAT scores?

Let d=(verbal SAT scores prior to taking the prep course)−(verbal SAT scores after taking the prep course)d=(verbal SAT scores prior to taking the prep course)−(verbal SAT scores after taking the prep course). Use a significance level of α=0.01 for the test. Assume that the verbal SAT scores are normally distributed for the population of students both before and after taking the SAT prep course.

1. State the null and alternative hypotheses for the test.

2. Find the value of the standard deviation of the paired differences. Round your answer to one decimal place.

3. Compute the value of the test statistic. Round your answer to three decimal places.

4. Determine the decision rule for rejecting the null hypothesis. Round the numerical portion of your answer to three decimal places.

5. Make the decision for the hypothesis test.