Western State University (WSU) is preparing its master budget for the upcoming academic year. Currently, 12,000 students are enrolled on campus; however, the admissions office is forecasting a 5 percent growth in the student body despite a tuition hike to $70 per credit hour. The following additional information has been gathered from an examination of university records and conversations with university officials:

WSU is planning to award 140 tuition-free scholarships.

The average class has 20 students, and the typical student takes 10 credit hours each semester. Each class is two credit hours.

WSU’s faculty members are evaluated on the basis of teaching, research, and university and community service. Each faculty member teaches five classes during the academic year.

Required:

Prepare a tuition revenue budget for the upcoming academic year.

Determine the number of faculty members needed to cover classes.

Assume there is a shortage of full-time faculty members. Select at least five actions that WSU might take to accommodate the growing student body by selecting an "X" next to the action.

You have been requested by the university’s administrative vice president (AVP) to construct budgets for other areas of operation (e.g., the library, grounds, dormitories, and maintenance). The AVP noted: “The most important resource of the university is its faculty. Now that you know the number of faculty needed, you can prepare the other budgets. Faculty members are indeed the key driver—without them we don’t operate.” Are faculty members a key driver in preparing budgets?

repare a tuition revenue budget for the upcoming academic year.

Assume there is a shortage of full-time faculty members. Select at least five actions that WSU might take to accommodate the growing student body by selecting an "X" next to the action.

Determine the number of faculty members needed to cover classes.

You have been requested by the university’s administrative vice president (AVP) to construct budgets for other areas of operation (e.g., the library, grounds, dormitories, and maintenance). The AVP noted: “The most important resource of the university is its faculty. Now that you know the number of faculty needed, you can prepare the other budgets. Faculty members are indeed the key driver—without them we don’t operate.” Are faculty members a key driver in preparing budgets?

Show less

The following data are taken from the trial balance of Bula Island Limited on 30 June 2018 with selected comparative information provided for 30 June 2017.

2018 2017 Sales revenue 9,245,000 Interest revenue 850,000 Royalties revenue 1,450,000 Dividend revenue 150,000 Depreciation-building 147,500 Depreciation-plant 262,500 Depreciation-equipment 75,000 Research and development expenditure 1,650,000 Cost of goods sold 4,005,000 Warranty expense 195,000 Wages and salaries expense 3,475,000 Long service leave expense 235,000 Interest expense 305,000 Rates and taxes on property 145,500 Doubtful debts expense 142,500 Accounts receivable 675,000 375,000 Estimated uncollectible debts 182,000 95,000 Interest receivable 300,000 275,000 Royalties receivable 920,000 745,000 Land (at cost) 2,500,000 2,500,000 Buildings 3,200,000 3,200,000 Accumulated depreciation-buildings 442,500 295,000
Plant 2,100,000 2,100,000 Accumulated depreciation-Plant 787,500 525,000 Equipment 750,000 750,000 Accumulated depreciation-equipment 225,000 150,000 Wages and salaries payable 345,000 265,000 Provision for long service leave 355,000 245,000 Provision for warranty claims 130,000 115,000 Interest payable 100,000 100,000

Additional Information

1. All depreciable assets were acquired on 1 July 2015. For financial reporting purposes, depreciation is recognised on a straight line basis, over 20 years for buildings (estimated residual value $250,000), eight years for plant and 10 years for equipment. For tax purposes, straight line depreciation is applied over 40, 10 and eight years respectively. 2. After reviewing all relevant information, the directors determined that, at 30 June 2018, the plant was impaired by $250,000 (this is not reflected in the amounts presented in the trial balance). 3. On 30 June 2018, after careful consideration, the directors of Bula Island Ltd decided to adopt the fair value model for land; the fair value of land on 1 July 2017 was $3,500,000 and on 30 June 2018 was $3,250,000. 4. The research and development expenditure qualifies for the additional 25% taxation deduction. 5. The tax rate at 30 June 2017 was 30%. On 15 June 2018, legislation was enacted decreasing the tax rate to 25% effective 1 July 2018.


Required:

1. Calculate the amount of current tax expense. Use an appropriately labelled table for this task.   2. Prepare a deferred tax worksheet to calculate the amounts for deferred tax assets and deferred tax liabilities for the reporting period 30 June 2018. Use an appropriately labelled table for this task.   3. Prepare journal entries for the income tax expense related items for the reporting period 30 June 2018.

NOTE: The solutions for this question has not been fully answered by chegg. A few requirements are still left to be answered. Please help out

use any data and answers those questions There are several stores that or businesses that set these types of goals. Would this tell us an overall average? For example lets just say the sales goal is 100,000 a month, this month 98,000 is sold that is clearly less than the goal. However is that what the test tells us? Or does it look at a long term average over several months? Why is it valuable to know if the results are statistically signficant?

thank you

Did Sales Reach Target Value?

            Business requires careful planning because storing goods is associated with the additional costs. Thus, business sets monthly revenue goals, and understanding if the sales have reached the monthly revenue goal is important. Let us take a retail chain, and suppose they have monthly revenues of the stores, and a certain goal revenue.

            In this case, the four-step hypothesis testing is as follows:

1) The null hypothesis suggests that the mean stores sale does not significantly differ from the goal value. The alternate hypothesis is opposite to null and it suggests that the difference between the mean stores sales and goal value is significantly different (Triola, 2015).

2) The decision rule is set according to the significance level. For this case, we can set the significance level 0.1 because we do not require the highest precision. Thus, if the significance of the calculated t-value exceeds 0.1, we do not have enough evidence to reject the null hypothesis. Otherwise, we reject the null and accept the alternate hypothesis (Ott, Longnecker & Draper, 2016).

3) At this stage, we calculate the test statistics using mean value, goal revenue, standard deviation of the mean (s), and the number of observations (n):

                           t=(Mean-Goal)/s/square root of n

.

Also, we obtain the significance of this t-value from statistical tables or statistical software. Afterwards, we compare the value with the significance level (Triola, 2015).

            4) The final step is interpretation of the statistical test for the real life situation. If the test confirms the null hypothesis, this means that the mean stores sales are approximately equal to the goal value. If the null is rejected, then the store chain underperforms, which is an important information for the management (Black, 2017).

            Therefore, in this problem t-test was used as a support for the decision-making process in management. It provides a statistical background for sales analysis of the store chain and provides management with the valuable information about business (Black, 2017).

  There are several stores that or businesses that set these types of goals. Would this tell us an overall average? For example lets just say the sales goal is 100,000 a month, this month 98,000 is sold that is clearly less than the goal. However is that what the test tells us? Or does it look at a long term average over several months? Why is it valuable to know if the results are statistically signficant?

1A) A bank in a medium-sized Midwestern city, Fifth Third Bank wants to determine the ATM fee that will maximize its profits from ATM operation. The bank managers experimented with a number of fees (in $0.25 increments) at selected ATMs. The marginal cost of an ATM transaction is $1.00. Calculate Total Revenue corresponding to each fee. Provide your answers using two decimal places even if the decimal places are zeros.

1B) A bank in a medium-sized Midwestern city, Fifth Third Bank wants to determine the ATM fee that will maximize its profits from ATM operation. The bank managers experimented with a number of fees (in $0.25 increments) at selected ATMs. The marginal cost of an ATM transaction is $1.00. Calculate the marginal revenue per transaction corresponding to each fee.

Provide your answers using two decimal places even if the decimal places are zeros.

1C) A bank in a medium-sized Midwestern city, Fifth Third Bank wants to determine the ATM fee that will maximize its profits from ATM operation. The bank managers experimented with a number of fees (in $0.25 increments) at selected ATMs. The marginal cost of an ATM transaction is $1.00. Calculate the marginal cost per transaction corresponding to each fee.

Provide your answers using two decimal places even if the decimal places are zeros.

1D) A bank in a medium-sized Midwestern city, Fifth Third Bank wants to determine the ATM fee that will maximize its profits from ATM operation. The bank managers experimented with a number of fees (in $0.25 increments) at selected ATMs. The marginal cost of an ATM transaction is $1.00. What is the profit maximizing fee? ______

1E)

A bank in a medium-sized Midwestern city, Fifth Third Bank wants to determine the ATM fee that will maximize its profits from ATM operation. The bank managers experimented with a number of fees (in $0.25 increments) at selected ATMs. The marginal cost of an ATM transaction is $1.00. Calculate the amount of profit corresponding to each fee.

Provide your answers using two decimal places even if the decimal places are zeros.

Fit & Slim (F&S) is a health club that offers members various gym services.
Required:
1. Assume F&S offers a deal whereby enrolling in a new membership for $1,100 provides a year of unlimited access to facilities and also entitles the member to receive a voucher redeemable for 30% off yoga classes for one year. The yoga classes are offered to gym members as well as to the general public. A new membership normally sells for $1,200, and a one-year enrollment in yoga classes sells for an additional $500. F&S estimates that approximately 50% of the vouchers will be redeemed. F&S offers a 10% discount on all one-year enrollments in classes as part of its normal promotion strategy.


1. a. & b. Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.

c. Prepare the journal entry to recognize revenue for the sale of a new membership.

• Record the revenue for the sale of a new membership.

2. Assume F&S offers a “Fit 70” coupon book with 70 prepaid visits over the next year. F&S has learned that Fit 70 purchasers make an average of 60 visits before the coupon book expires. A customer purchases a Fit 70 book by paying $500 in advance, and for any additional visits over 70 during the year after the book is purchased, the customer can pay a $20 visitation fee per visit. F&S typically charges $20 to nonmembers who use the facilities for a single day.

a. & b. Indicate below whether each item is a separate performance obligation. For each separate performance obligation you have indicated, allocate a portion of the contract price.

c. Prepare the journal entry to recognize revenue for the sale of a new Fit 70 book.

• Record the revenue for the sale of a new Fit 70 book.

1. The accounting equation is defined as: a. Common Stock + Retained Earnings = Stockholders’ Equity. b. Revenues - Expenses = Net Income. c. Revenues - Expenses - Dividends = Retained Earnings. d. Assets = Liabilities + Stockholders’ Equity.

2. On January 1, Art Inc. started the year with a $492,000 balance in Retained Earnings and a $605,000 balance in Common Stock. During the year, the company earned net income of $92,000, paid a dividend of $15,200, and issued more common stock for $27,500. What is total stockholders' equity at the end of the year? a. $1,231,700. b. $1,097,000. c. $1,201,300. d. $1,588,300.

3. Which financial statement is typically prepared first? a. Balance sheet. b. Income statement. c. Statement of stockholders’ equity. d. Statement of cash flows.

4. Which of the following would increase assets and increase liabilities? a. Provide services to customers on account. b. Purchase office supplies on account. c. Pay dividends to stockholders. d. Receive a utility bill but do not pay it immediately. 2 / 10

5. The Unearned Revenue account is shown in which statement? a. Income statement. b. Statement of cash flows. c. Balance sheet. d. Statement of stockholders’ equity.

6. Consider the following accounts: Utility Expense Accounts Payable Service Revenue Common Stock How many of these accounts are increased with credits? a. One. b. Two. c. Three. d. Four.

7. Schooner Inc. purchased equipment by signing a note payable. This transaction would be recorded as: a. Debit Equipment, credit Cash. b. Debit Cash, credit Notes Payable. c. Debit Notes Payable, credit Equipment. d. Debit Equipment, credit Notes Payable.

8. Air France collected cash on February 4 from the sale of a ticket to a customer on January 26. The flight took place on April 5. According to the revenue recognition principle, in which month should Air France have recognized this revenue? a. January. b. February. c. April. d. Evenly in each of the three months.

9. Which of the following regarding adjusting entries is correct? a. Adjusting entries are recorded for all external transactions. b. Adjusting entries are recorded to make sure all cash inflows and outflows are recorded in the current period. c. Adjusting entries are needed because we use accrual-basis accounting. d. After adjusting entries, all temporary accounts should have a balance of zero. 3 / 10

10. An adjusted trial balance: a. Is a list of all accounts and their balances after adjusting entries. b. Is a list of all accounts and their balances before adjusting entries. c. Is a list of all accounts and their balances after closing entries. d. Is a trial balance adjusted for cash-basis accounting.

1. Multiple Choice ( 20 Marks)

A large sports supplier has many stores located world wide. A regression model is to be constructed to predict the annual revenue of a particular store based upon the population of the city or town where the store is located, the annual expenditure on promotion for the store and the distance of the store to the center of the city.

Data has been collected on 30 randomly selected stores: (AT BOTTOM)

Find the multiple regression equation using all three explanatory variables. Assume that x₁ is population, x₂ is annual promotional expenditure and x₃ is distance to city center. Give your answers to 3 decimal places.

a) y^ = BLANK + BLANK population + BLANK promo. expenditure + BLANK dist. to city

e)The value of R² for this model, to 3 decimal places, is equal to

f)The value of s for this model, to 3 decimal places, is equal to

g)Construct a new multiple regression model by removing the variable distance to city center. Give your answers to 3 decimal places.

The new regression model equation is:

y^ = + population + promo. expenditure

At a level of significance of 0.05, the result of the F test for this model is that the null hypothesis A) Is B) is not rejected.

c)The explanatory variable that is most correlated with annual revenue is:

population
promotional expenditure
distance to city

d)The explanatory variable that is least correlated with annual revenue is:

population
promotional expenditure
distance to city

H) In the new model compared to the previous one, the value of R² (to 3 decimal places) is:

increased
decreased
unchanged

i)In the new model compared to the previous one, the value of s (to 3 decimal places) is:

increased
decreased
unchanged

1. Suppose that a widget is considered a normal good. What is the impact of a decrease in income on the perfectly competitive market for widgets?

1. The price of widgets will increase and the quantity exchanged will decrease.
2. The price of widgets will decrease and the quantity exchanged will decrease
3. The price of widgets will increase and the quantity exchanged will increase.
4. The price of widgets will decrease and the quantity exchanged will increase.

2. What is the absolute value of price elasticity of demand from (P =6, Q=900)   to (P = 8, Q= 800)

Round your answer to 3 decimal points and interpret the meaning of your answer.

3. A decrease in demand for oil and an increase in supply of oil will:

     A) quantity decreases, but price may either increase, decrease, or remain unchanged.

     B) price increases, but quantity may either increase, decrease, or remain unchanged.

     C) quantity increases, but price may either increase, decrease, or remain unchanged.

     D) price decreases, but quantity may either increase, decrease, or remain unchanged.

4. A firm in a perfectly competitive industry is producing where short run marginal cost is less than price. Total revenue is $1700; short run total cost is $1800 and total fixed cost is $500. The firm’s best strategy in the short run is to

A) Increase its price.              B) Increase its output.

C) Decrease its output.           D) Shut down.

E) Maintain output at its present level.

5. A firm in a perfectly competitive industry is producing where short run marginal cost is equal to price. Total revenue is $700; short run total cost is $800 and total fixed cost is $300. The firm’s best strategy in the short run is to

A) Increase its price.              B) Increase its output.

C) Decrease its output.           D) Shut down.

E) Maintain output at its present level.

6. Productive efficiency refers to:

A) maximizing profits by producing where MR = MC.              B) setting TR = TC.

C) cost minimization, where P = minimum ATC.                D) equilibrium, where MB = MC

1. Cross Price elasticity of demand between two substitute goods is:

     A)   positive.    B) unitary.    C) zero.    D) negative.

2. Allocative efficiency occurs when producing the quantity where:

A) Marginal Revenue = Marginal Cost.                          B) Marginal Benefits = Marginal Cost.

C)   Price = minimum Average total Cost.                      D) Total Revenue = Total Cost.

3. A normative statement is one which

A) is based on the law of averages.                                       B) is based on generalizations.

C) is based upon, subjective beliefs or opinions.                  D) is based on facts.

4. Which of the following goods has the characteristic of non-rivalry, and non-excludability?

A) congested highway with a toll booth.                            B) A cell phone signal

   C) a pair of pants.                                                                D) asteroid defence.