At the beginning of July, CD City has a balance in inventory of $3,100. The following transactions occur during the month of July. July 3 Purchase CDs on account from Wholesale Music for $2,000, terms 1/10, n/30. July 4 Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $110. July 9 Return incorrectly ordered CDs to Wholesale Music and receive credit, $300. July 11 Pay Wholesale Music in full. July 12 Sell CDs to customers on account, $5,200, that had a cost of $2,700. July 15 Receive full payment from customers related to the sale on July 12. July 18 Purchase CDs on account from Music Supply for $2,800, terms 1/10, n/30. July 22 Sell CDs to customers for cash, $3,900, that had a cost of $2,200. July 28 Return CDs to Music Supply and receive credit of $240. July 30 Pay Music Supply in full.

1. Assuming that CD City uses a perpetual inventory system, record the transactions. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Purchase CDs on account from Wholesale Music for $2,000, terms 1/10, n/30.

Pay cash for freight charges related to the July 3 purchase from Wholesale Music, $110.

Return incorrectly ordered CDs to Wholesale Music and receive credit, $300.

Pay Wholesale Music in full.

Sell CDs to customers on account, $5,200, that had a cost of $2,700. Record the sale of inventory on account.

Sell CDs to customers on account, $5,200, that had a cost of $2,700. Record the cost of inventory sold.

Receive full payment from customers related to the sale on July 12.

Purchase CDs on account from Music Supply for $2,800, terms 1/10, n/30

Sell CDs to customers for cash, $3,900, that had a cost of $2,200. Record the sale of inventory for cash.

Sell CDs to customers for cash, $3,900, that had a cost of $2,200. Record the cost of inventory sold.

Return CDs to Music Supply and receive credit of $240.

Pay Music Supply in full

2. Prepare the top section of the multiple-step income statement through gross profit for the month of July.

Question 2.

In this question you will be comparing two different queuing configurations to see which one is better in reducing delays.

NOTE: SHOW ALL YOUR WORK. USE 4 DECIMAL PLACES IN ALL CALCULATIONS.

Historical data at a retail store (e.g. Walmart) shows that the total average arrival rate of customers to checkout lanes (cashiers) at the store is 240 customers per hour during the peak hours. The arrivals can be modeled by a Poisson distribution. There are 20 cashiers working during peak hours. Each cashier can check out 14 customers/hr.

In Configuration 1, each cashier has a dedicated queue in front of him/her. This leads to 20 separate queues at the checkout area. In this configuration, assume that the arrivals of checkouts are equally distributed across the 20 queues: the average arrival rate to each queue = 240 customers per hour / 20 queues = 12 customers per hour per queue.

In Configuration 2, there is one serpentine queue which is served by all 20 cashiers. That is, all customers join the same queue for checkouts. Whenever a cashier becomes available, the customer in front of the queue gets served by that cashier. Note that the average arrival rate to the single checkout queue is 240 customers per hour in this configuration.

a) What is the average wait time in the system (in minutes) for a customer in Configuration 1[1] ? Use the Excel Queuing Models spreadsheet to determine the answer.

b) What is the average wait time in the system (in minutes) for a customer in Configuration 2? Use the Excel Queuing Models spreadsheet to determine the answer.

c) Why is the average time a customer spends in the system in Configuration 1 different than the average time a customer spends in the system in Configuration 2?

d)   ( What is the average time spent in the queue (in minutes) per customer in Configuration 1?

           Wq =

e) What is the average time spent in the queue (in minutes) per customer in Configuration 2?

           Wq =

f) What is the average number of customers waiting in the queue at any time in Configuration 1?

           Lq =

g) What is the average number of customers waiting in the queue at any time in Configuration 2?

           Lq =

h) Answer the remaining questions based on your work in parts (a) to (g) and based on the information provided in the following articles:

A Long Line for a Shorter Wait at the Supermarket: http://nyti.ms/xZ10Ae,

How to Pick the Fastest Lane at the Supermarket: goo.gl/1J1IjD .

What really drives you crazy about waiting in line (it actually isn’t the wait at all) http://wapo.st/1PSafCh?tid=ss_tw

i. Based on your answers to parts (a) to (g), which generally performs better based on queuing metrics: a serpentine line (one queue leading to several servers), or a dedicated queue in front of each server? Explain clearly why this configuration performs better.

                      ii. What are some potential reasons to use the other configuration, despite its poorer queuing system performance? Give a specific example of a company that has done so, along with their reasoning for it.

                    iii. State two psychological factors that influence customers’ experiences in queuing systems. For each psychological factor, provide a suggestion for what a company might do to address it and thereby improve customers’ experiences.

A machine costs $35,000 to buy and $5,000 per year to operate and maintain. It will have a salvage value of $8,000 in 9 years. It will generate $10,000 per year in net revenue for the first four years, and then the revenue will fall by $1,000 each year after. If the company purchasing the machine uses a MARR of 7% to make project , find the NPW, NFW, and AW. Is this project worth undertaking if no loss is expected?

Work in Microsoft Excel (show Code)

A machine costs $35,000 to buy and $5,000 per year to operate and maintain. It will have a salvage value of $8,000 in 9 years. It will generate $10,000 per year in net revenue for the first four years, and then the revenue will fall by $1,000 each year after. If the company purchasing the machine uses a MARR of 7% to make project , find the NPW, NFW, and AW. Is this project worth undertaking if no loss is expected?

Work in Microsoft Excel (show Code)

Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $650 were declared at the end of the year, and 680 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,720 in cash (for a total at the end of the year of 810 shares). These effects are included below:

Prepare a classified balance sheet for the end of the current year.

At the end of its fiscal year, the adjusted trial balance of Crane Company is as follows:

CRANE COMPANY Adjusted Trial Balance July 31, 2017

Debit Credit Cash $2,850 Accounts receivable 11,420 Prepaid rent 500 Supplies 750 Debt investments 8,000 Equipment 19,950 Accumulated depreciation—equipment $5,700 Patents 18,300 Accounts payable 4,265 Interest payable 750 Unearned revenue 2,050 Notes payable (due on July 1, 2019) 45,300 B. Crane, capital 28,285 B. Crane drawings 16,900 Service revenue 74,100 Interest revenue 320 Depreciation expense 2,850 Interest expense 3,000 Rent expense 18,550 Salaries expense 36,850 Supplies expense 20,850 $160,770 $160,770 Prepare the closing entries. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.) Date Account Titles and Explanation Debit Credit July 31 (To close revenue accounts) July 31 (To close expense accounts) July 31 (To close profit to capital) July 31 (To close drawings account)

A firm’s corporate strategy is driven largely by its top management team. One method of gauging the influence of marketing on corporate strategy is to measure the proportion of firms with a chief marketing officer on their top management team. Over the 5-year period from 2000 to 2004, 42% of firms had a chief marketing officer on their top management team. [Source: Pravin Nath and Vijay Mahajan, “Chief Marketing Officers: A Study of Their Presence in Firms’ Top Management Teams,” Journal of Marketing, 70 (2007).] To test the hypothesis that the influence of marketing on corporate strategy today is different from its influence in the 2000–2004 period, a random sample of 91 U.S. firms is selected. Of these, 26 firms have a chief marketing officer on their top management team. The test is conducted at a significance level of α = 0.01. Let p be the true proportion of firms with a chief marketing officer currently on their top management team.

To conduct the hypothesis test, the null and alternative hypotheses are formulated as: A. H₀: p ≥ 0.42; Ha: p < 0.42 B. H₀: p̄ = 0.42'; Ha: p̄ ≠ 0.42 C. H₀: p = 0.42; Ha: p ≠ 0.42 D. H₀: p ≤ 0.42; Ha: p > 0.42 If the null hypothesis is true, the sampling distribution of the sample proportion p̄ can be approximated by ____ with a mean of ____ and a standard deviation of ___ . The test statistic is ____. Use the Distributions tool to develop the rejection region. According to the critical value approach (with α = 0.01), when do you reject the null hypothesis? Reject H₀ if t ≤ –2.632 or if t ≥ 2.632 Reject H₀ if z ≤ –2.576 Reject H₀ if z ≤ –2.576 or if z ≥ 2.576 Reject H₀ if z ≤ –2.326 or if z ≥ 2.326 Use the provided Distributions tool to determine the p-value. The p-value is ____. Using the critical value approach, the null hypothesis is (not rejected/rejected), because ___. Using the p value approach, the null hypothesis is (not rejected/rejected), because ____. Therefor you (can/cannot) conclude that the influence of marketing on corporate strategy today is different from its influence in the 2000–2004 period.

In early December, the Snowland Resort was paid $1,600 by a company to host its holiday party that month.

In addition to receiving the cash, the $1,600 is considered which of the following?

• Profit

• Expense

• Equity

• Revenue

Jack，the owner of a company, loaned his corporation $150,000. However, this corporation declared bankruptcy. How should Jack treat the loan?

Use Internal Revenue Code Sections to provide advices.