Company Inc owns a DC in Maryland with disruptions the year due to snowstorms. The number of disruptions follows a Poisson distribution with an average of 8.8 disruptions per year.

1. What is the probability that the number of disruptions next year at this DC is equal to or less than 4?

2. What is the probability of facing no disruptions at this DC during next year?

The time to recover from a disruption follows a uniform distribution with a minimum of 4 and a maximum of 13 days.

3. If a disruption happens, what is the average time the DC will be closed for?

4. If a disruption happens, what is the probability that the DC will be closed for more than 7 days?

You deposit $5,000 in the bank each year starting today.

The last deposit will be in exactly 20 years’ time.

How much will there be in the bank when you retire in exactly 45 years?

EAR = 10%

Presented below are a number of balance sheet items for Marin, Inc. for the current year, 2020.

Prepare a classified balance sheet in good form. Common stock authorized was 400,000 shares, and preferred stock authorized was 20,000 shares. Assume that notes receivable and notes payable are short-term, unless stated otherwise. Cost and fair value of debt investments (trading) are the same. (List Current Assets in order of liquidity. List Property, Plant and Equipment in order of Land, Building and Equipment.)

Mary and David are planning for their wedding ceremony one and a half year from now. They were advised by the wedding planner that the wedding cost should be around USD 28,000.This couple has gone through their budget and found that they can invest USD 300 per weekfrom the freelance income starting from this week. This couple has opened accounts at The Tracker Fund of Hong Kong and China Government Bond. The first fund follows an investment strategy designed to match the return of the Blue Chip in Hong Kong. The second fund invests in long-term Bond in China.  The fees for both funds are very low.

The couple has decided to follow a strategy in which they contribute a fixed fraction of the USD 300 to each investment. A financial consultant from an investment bank suggested them to invest 80% of the USD 300 each week in The Tracker Fund of Hong Kong and the remaining 20% in the China Government Bond.The consultant explained that The Tracker Fund of Hong Kong has averaged larger returns than the China Government Bond. Even though stock returns are risky investments in the short run, the risk would be fairly minimal in the historical record. However, another financial consultant recommended just the opposite: invest 20% in The Tracker Fund of Hong Kong and the remaining 80% in the China Government Bond,he said, China Government Bond is backed by the China government. If you follow this allocation, he said, your average return will be lower, but at least you can reach your USD 28,000 target in one and a half year from now.

Not knowing which consultant to believe, the couple has come to you for help.

Questions:

The spreadsheet Marriage.xlsx contains 261 weekly returns of The Tracker Fund of  

Hong Kong and the China Government Bond from the first week of January 2012 to the first week of January 2017. In each of the next one and a half year from now, it is . Set up a spreadsheet to simulate the two suggested investment strategies over the above investment period. Plot the value of each strategy over time for one simulation trial. What was the total value of each strategy one and a half year from now?         

Did either of the strategies reach the target? (non-random number)

Simulate 200 trials of the two suggested investment strategies over the investment period. Create a histogram of the final investment values. Based on your simulation results, which of the two suggested investment strategies would you recommend? Why?   (Random number)

Suppose the couple needs to have USD 35,000 for the expense for their marriage. Based on the same simulation results, which of the two strategies would you recommend now? Why?

The Distance Plus partnership has the following capital balances at the beginning of the current year:

Each of the following questions should be viewed independently.

If Sergio invests $100,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.

If Sergio invests $60,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the bonus method is used.

If Sergio invests $72,000 in cash in the business for a 25 percent interest, what journal entry is recorded? Assume that the goodwill method is used.

Below is information for the year 2019 for Company A and Company B.

Interest expense $400 $0

Tax expense (40%) $400 $400

Net income $600 $600

Ending balance of total asset $10,000 $10,000

Total debt $5,000 $0

Equity $5,000 $10,000

Required: Compute the following for Year 2019

(a) Return on assets for Company A and B

(b) Financial leverage ratio for Company A and B

(c) Times interest earned ratio, after necessary adjustments for Company A if it capitalized $100 interest costs in the pension obligation during the year.

(d) “Company A has used financial leverage to increase its return to its shareholders”. Comment on this statement.

2. On the first day of the fiscal year, a company issues a $952,000, 6%, 10-year bond that pays semiannual interest of $28,560 ($952,000 × 6% × 1/2), receiving cash of $999,600.

On the first day of the fiscal year, a company issues an $946,000, 8%, 5-year bond that pays semiannual interest of $37,840 ($946,000 × 8% × 1/2), receiving cash of $889,240.

Allisson Russo is a 15 year old girl admitted to the Emergency Room with Right , lower quadrant pain. She is eventually diagnosed with appendicitis and scheduled for an appendectomy. After visiting Allison in the Er, the surgeon Alerts the Operating Room nurse, Ms. Wendy Harnes that the surgery will take place in an hour. Allison is HIV positive from emergency medical acre and blood transfusions that she received six years ago, following an auto accident. Allison does not know that she is positive, at the request of her parents, who are born high-powered attorneys. Allison tells Ms. Harnes that she used to to be involved in sports but has dropped these activities in school because of feeling more tired than usual. She thinks that her academic studies are simply requiring more of her attention , but her mother has suggested that perhaps she would be seeing a new doctor soon. Allison asks the nurse “ Do you think being tired at my age is a serious concern? I thought all teenagers feel like this. I feel that I have a serious health problem.” How should Ms. Hayes respond to Allison?

The data show the number of cases of measles and mumps for a recent 5-year period.

Measles Cases: 48 150 70 60 203

Mumps Cases: 1797 475 1954 2575 370

The correlation coefficient for the data is r = 0.911. and 0.05.

Should regression analysis be done?

Find the equation of the regression line.

Round the coefficients to three decimal places.

y' = a+bx

a =

b =

On January 1, 2017, Loud Company enters into a 2-year contract with a customer for an unlimited talk and 5 GB data wireless plan for $65 per month. The contract includes a smartphone for which the customer pays $299. Loud also sells the smartphone and monthly service plan separately, charging $649 for the smartphone and $65 for the monthly service for the unlimited talk and 5 GB data wireless plan.

Required:

Calculate the transaction price for the smartphone and unlimited talk and 5 GB data wireless plan assuming that Loud allocates consideration based on stand-alone prices. Additional Instruction

Additional Instruction

Allocate using two one-hundreds of a percent. For example: $649 / $2,209 = 29.38% and round your answers to the nearest cent.