3. Suppose you take out a loan for school this year for $9000. The bank expects that the rate

      of inflation for next year will equal 2%. You and the bank agree that in one year’s time, you

      will pay back the full amount at an interest rate of 5%. Next year though, there is a sudden

      rise in inflation, causing inflation to equal 12%.

      Based upon this information, answer the following questions.

1. 1. How much will you pay back in one year, assuming simple interest?
2. What is the anticipated rate of inflation?
3. What is the unanticipated rate of inflation?
4. What is the real rate of interest?
5. What is the nominal rate of interest?
6. Who wins and who loses from this loan?

The mean annual tuition and fees in the 2013-2014 academic year for a sample of 13 private colleges in California was $33,000 with a standard deviation of $7300. A dotplot shows that it is reasonable to assume that the population is approximately normal. Can you conclude that the mean tuition and fees for private institutions in California is less than $35,000? Use the α=0.01 level of significance and the P-value method with the TI-84 Plus calculator.

a. state null and alternative hypothesis. what tail is the hypothesis test?

b. Compute the P-value of the test statistic.

c. Determine whether to reject H0. Use the =α0.05 level of significance.

d. State a conclusion

The January 1, Year 1 trial balance for the Wright Company is found on the trial balance tab. The beginning balances are assumed.

Clark Co. entered into the following transactions involving short-term liabilities. (Use 360 days a year.)

General Journal tab - Prepare the Year 1 journal entries related to the notes and accounts payable of Clark Co.

Calculation of interest tab - Use the interest formula (P x R x T) to verify the amount of interest recorded in your entries. Verify that total interest expense agrees with the trial balance.

Year 2 payment tab - Prepare the January 27, Year 2 entry to record the repayment of the note at maturity.

• Apr. 20. Purchased $49,250 of merchandise on credit from Walsh, terms n∕30. Clark uses the perpetual inventory system.

Note: Enter debits before credits.

• Apr. 20. Purchased $49,250 of merchandise on credit from Walsh, terms n∕30. Clark uses the perpetual inventory system.

Note: Enter debits before credits.

• Jul. 8. Borrowed $99,000 cash from NJR Bank by signing a 120-day, 9% interest-bearing note with a face value of $99,000.

Note: Enter debits before credits.

• Jul. 8. Borrowed $99,000 cash from NJR Bank by signing a 120-day, 9% interest-bearing note with a face value of $99,000.

Note: Enter debits before credits.

• Jul. 8. Borrowed $99,000 cash from NJR Bank by signing a 120-day, 9% interest-bearing note with a face value of $99,000.

Note: Enter debits before credits.

• Nov. 28. Borrowed $57,000 cash from Fargo Bank by signing a 60-day, 8% interest-bearing note with a face value of $57,000.

Note: Enter debits before credits.

• Dec. 31 Recorded an adjusting entry for accrued interest on the note to Fargo Bank.

Note: Enter debits before credits.

Jayne was an eighteen year old freshman in college. On her second day at the college, she and her new roommate went to a “meet and greet” get together in their dorm. There were a lot of snacks and drinks there. After eating a cookie Jayne started developing nausea, itchy skin with large welts, a tingling sensation and tightness in her throat, dizziness and difficulty breathing, and a feeling of doom. She tried to speak to her roommate but her voice was very hoarse. She became unconscious and was rushed to the ER. When the medical personnel examined her she was hypotensive, with tachycardia; her skin was clammy. When the nurse looked in her purse she saw and Epipen injector. On questioning the RA from the residence hall, the ER staff found out that the cookies had peanuts in them. On administering epinephrine, Jayne quickly regained consciousness, her blood pressure rebounded to normal, and the heart rate slowed down. She was discharged the next day.

Prompts:

1) What is your diagnosis about Jayne’s condition?

2) What is an “antigen-presenting cell” and what role does this type of cell play in an immune response?

3) Explain the interaction that occurs between a T-helper lymphocyte and a B cell when the B cell is being induced to produce peanut-specific IgE. In your explanation, explain the role that the peanut allergen plays in this interaction.

4) In immediate hypersensitivity, the initial exposure to an allergen usually does not produce any symptoms. The symptoms, such as those involved in anaphylaxis, usually appear in the second exposure. What events are occurring during this initial exposure that sensitizes a person to an allergen? In your description include the role of B cells, T cells, IgE, mast cells, basophils and the allergen.

5) Describe how IgE binds and reacts with basophils and mast cells.

Suppose an investor with a 7-year investment horizon is considering the purchase of a 4.50% APR, monthly payment, mortgage with 22 years (264 months) remaining until maturity. The mortgage currently has an outstanding balance of $245,000 and is selling to offer a YTM of 4.8% on the secondary market. The investor expects to be able to reinvest the first 36 monthly cashflows at 4.8% (over their entire reinvestment interval), but expects to be able to reinvest the last 48 monthly payments at only 4.5%. At the end of her investment horizon, she expects to be able to sell the mortgage at a YTM of 4.5%. What is the total/expected (effective) return offered by this security?

Please show all steps and thought processes with a FINANCIAL CALCULATOR so that I can understand!

A company started providing a one-year warranty on one of their products. There were a

total of 2,100 of these products sold during 20x5. The company estimates that the cost of

warranty repairs will be as follows:

Amount Probability

$0 50%

40,000 15%

80,000 15%

105,000 12%

225,000 8%

Total warranty costs incurred during the year amounted to $13,200 and were charged to

cost of goods sold.

Required – Prepare the adjusting journal entries required at December 31, 20x5.

Draft an Auditor’s report to the shareholders of Oman Methanol Company LLC, MUSCAT for the year 2019,
incorporating any five qualifications from your point of view with example.

A firm is evaluating a new project which would start next year and is expected to have a life of 5 years. All of the following are related to the project. Which of the following should be included into the Free Cash Flow when computing the NPV of the project?

1. Operating Cash Flows (OCF) from this project derived from an Income Statement Pro-Forma, where all project related revenues and costs (including taxes but not interest) are accounted for every year of the project. OCF does not account for depreciation of the project-specific equipment per se but takes into account the depreciation tax shield.
2. Half of the $100,000 cost of the quality check equipment which will be used for this project. The quality check equipment is currently owned by the firm and has idle capacity for the full duration of the new project.
3. $3mln paid for the land (the payment was made when the land was purchased 10 years ago) on which the project will be located.
4. $5mln current market value of the land on which the project will be located and $6mln future expected market value of the project’s land in 5 years
5. The change in Inventories due to an increase in sales associated with the project.
6. An evaluation of the project’s viability by an outside consultant which was completed a month ago. The consultant was paid $15,000 at that time.
7. Proceeds from the sale of equipment related to the project in the project’s terminal year.

You are the manager of a firm that receives revenues of $20,000 per year from product X and $70,000 per year from product Y. The own price elasticity of demand for product X is -2, and the cross-price elasticity of demand between product Y and X is -1.5.

How much will your firm's total revenues (revenues from both products) change if you increase the price of good X by 1 percent?

DataSpan, Inc., automated its plant at the start of the current year and installed a flexible manufacturing system. The company is also evaluating its suppliers and moving toward Lean Production. Many adjustment problems have been encountered, including problems relating to performance measurement. After much study, the company has decided to use the performance measures below, and it has gathered data relating to these measures for the first four months of operations.

Management has asked for your help in computing throughput time, delivery cycle time, and MCE. The following average times have been logged over the last four months:

Required:

1-a. Compute the throughput time for each month.

1-b. Compute the delivery cycle time for each month.

1-c. Compute the manufacturing cycle efficiency (MCE) for each month.

2. Evaluate the company’s performance over the last four months.

3-a. Refer to the move time, process time, and so forth, given for month 4. Assume that in month 5 the move time, process time, and so forth, are the same as in month 4, except that through the use of Lean Production the company is able to completely eliminate the queue time during production. Compute the new throughput time and MCE.

3-b. Refer to the move time, process time, and so forth, given for month 4. Assume in month 6 that the move time, process time, and so forth, are again the same as in month 4, except that the company is able to completely eliminate both the queue time during production and the inspection time. Compute the new throughput time and MCE.