Clark Industries has a defined benefit pension plan that specifies annual, year-end retirement benefits equal to: 1.3% × Service years × Final year’s salary Stanley Mills was hired by Clark at the beginning of 2002. Mills is expected to retire at the end of 2046 after 45 years of service. His retirement is expected to span 15 years. At the end of 2021, 20 years after being hired, his salary is $88,000. The company’s actuary projects Mills’s salary to be $350,000 at retirement. The actuary’s discount rate is 6%. (FV of $1, PV of $1, FVA of $1, PVA of $1, FVAD of $1 and PVAD of $1) (Use appropriate factor(s) from the tables provided.)

Required:

1. Estimate the amount of Stanley Mills’s annual retirement payments for the 15 retirement years earned as of the end of 2021.

2. Suppose Clark’s pension plan permits a lump-sum payment at retirement in lieu of annuity payments. Determine the lump-sum equivalent as the present value as of the retirement date of annuity payments during the retirement period.

3. What is the company’s projected benefit obligation at the end of 2021 with respect to Stanley Mills?

4. Even though pension accounting centers on the PBO calculation, the ABO still must be disclosed in the pension disclosure note. What is the company’s accumulated benefit obligation at the end of 2021 with respect to Stanley Mills?

5. If we assume no estimates change in the meantime, what is the company’s projected benefit obligation at the end of 2022 with respect to Stanley Mills?

6. What portion of the 2022 increase in the PBO is attributable to 2022 service (the service cost component of pension expense) and to accrued interest (the interest cost component of pension expense)?

Problem 2

The Dunbar zoo operates a drive-through tourist attraction in hamilton. The selected accounts appearing below reflect balances on January 1 , 2017.

Prepaid Rent (expires on Nov 30,2017) 11,000

Prepaid Insurance (expires on Sep 30,2017) 9,000

Car 30,000

Accumulated Amortization - Car 2,000

Unearned Ticket Revenue 15,000

Other Data

-On December 1, 2017 the Zoo renewed the contract for another year for $18,000 to be paid in three installments. The first installment is due on April 1, 2018.

-On October 1, 2017, the zoo renewed the insurance policy for six months and paid $6,000. The full amount was record as an expense.

The unearned ticket revenue represents tickets sold in advance for future zoo visits. During 2002, additional $12,000 of tickets were sold in advance and were recorded as revenue earned. On December 31, 2017. it was determined that $4,000 of the tickets sold in advance were not used by customers.

A utility bill for $2,000 was received on December 31,2017 for the amount of utility used up during November and December 2017. The bill is due on jANUARY 15,2018.

On December 1, 2017, the zoo signed a contract with the Mifflin Food to supply food for the animals for an amount of $500 per month, effective January 1, 2018. The zoo paid $4,000 in advance and recorded it as an asset.

Required

Prepare the adjusting entires that were made by the Dunbar Zoo on December 31, 2017. If no adjusting entry is required, please type “NO ENTRY” in the appropriate space.

Explain how a revenue journal might to modified for the following specific business. Discuss the process of posting from revenue journal to general ledger.

Warisan Jambu Manufacturer Sdn Bhd

Getting an idea to commercialise the iconic local cuisine in Pekan, Pahang – murtabak (beef stuffed pancake), has initiated the owner of Warisan Jambu Manufacturer Sdn Bhd, Mr Shah to venture into this food-making business. Mr Shah has started his food business since 2002 as an eatery that serving his murtabak products for customers who came either for dining in or took away the mouth-watering local cuisine. After 15 years delved into the food industry, he attempted to transform his current business model (runs a restaurant business) into a frozen food-based business. He has invested a substantial amount of capital to meet all the relevant authorities’ requirements that fit to his business model. Among the apparent challenges faced by Mr Shah are the financial constraints and lack of high skill workers in order to meet the increasing demand of customers mainly in the East Coast region. The company targets to increase its revenue by 25% yearly for the next three years ahead to earn a satisfactory amount of profit. Therefore, Mr Shah makes his effort to identify any business support services from government and other related agencies that could facilitate his business in the future.

Required.

(a) In today’s challenging business trends, Mr Shah should develop marketing strategies that allow him to act quickly, take advantage of opportunities before competitors do and respond to business threats before significant damage is done to the business.

Recommend any TWO (2) promotional tools of social media and its advantages in promoting his products to the target marketplace.

Subject: Entrepreneur

1.

Use the​ year/subway fare data shown below. Let x represent the​ year, with 1960 coded as​ 1, 1973 coded as​ 14, and so on. Let y represent the subway fare. Does the best model appear to be a good​ model? Why or why​ not? Using the best​ model, find the projected subway fare in the year

20102010.

Does the best model appear to be a good​ model? Why or why​ not?

The best model is the ____ which does not appear

to be a good model because its coefficient of determination is R2 equals=

2

The data show systolic and diastolic blood pressure of certain people. Find the regression​ equation, letting the first variable be the independent​ (x) variable. Find the best predicted diastolic pressure for a person with a systolic reading of

113113.

Use a significance level of 0.05.

LOADING...

Click the icon to view the critical values of the Pearson correlation coefficient r.

What is the regression​ equation?

3.

isted below are the budgets​ (in millions of​ dollars) and the gross receipts​ (in millions of​ dollars) for randomly selected movies. Answer parts

​a-c.

Click here to view a table of critical values for the correlation coefficient.

LOADING...

a. Find the value of the linear correlation coefficient r.

r= __________

​(Round to three decimal places as​ needed.)

1. Wageweb conducts surveys of salary data and presents summaries on its website. Based on salary data as of October 1, 2002, Wageweb reported that the average annual salary for sales vice presidents was $142,111, with an average annual bonus of $15,432. Assume the following data are a sample of the annual salary and bonus for 10 sales vice presidents. Data are in thousands of dollars. Vice President Salary Bonus 1 135 12 2 115 14 3 146 16 4 167 19 5 165 22 6 176 24 7 98 7 8 136 17 9 163 18 10 119 11 a) Develop a scatter diagram for these data with salary as the independent variable, x and bonus as the dependent variable, y. b) What does the scatter diagram developed in part a) indicate about the relationship between salary and bonus? c) Use the least squares method to develop the estimated regression equation. We can call intercept for the regression line, b0 and slope of the regression line, b1. d) Provide an interpretation for the slope of the estimated regression equation. e) Predict the bonus for a vice president with an annual salary of $120,000. f) Compute SST, SSR, and SSE g) Compute the coefficient of determination r2. Comment on the goodness of fit. h) What is the value of the sample correlation coefficient? i) Develop the null and alternative hypothesis to test the linear relationship between salary and bonus j) At the .05 level of significance, determine whether salary and bonus are linearly related. Use the t test. k) Solve the problem in Excel and compare your results.

esults for the fourth quarter of 2019 are provided below. CVI's management is concerned as to why the operating income was lower than budgeted. 2019 fourth-quarter operating statement Actual Budget Revenues: High-speed Internet service $1,822,800 $1,890,000 Regular-speed Internet service 2.856.000 2.646.000 4,678,800 4,536,000 Expenses Billing and collection (55 per customer per quarter) 226,800 210.000 Variable costs of high-speed service ($15 per customer per quarter) 176,400 189.000 Variable costs of regular-speed service ($5 per customer per quarter) 168,000 147.000 Fixed costs 2.650.000 2.300.000 3221 2002 846 000 Operating income $1.457 600 $1.690.000 The budget was based on CVi holding a 35% market share assuming a total budgeted market size of 120.000 customers. The actual market size for the fourth quarter of 2019 turned out to be 125.000 customers, due to new apartment buildings in the area. The budget also assumed that 30% of CVI's customers would select the high-speed package and the remaining 70% of CVI's customers would select the regular-speed package CVI's high-speed package was budgeted with a selling price of $150 per customer per quarter. The regular-speed package had a budgeted selling price of $90 per customer per quarter. The actual prices in the fourth quarter were $155 and $85 per customer for the high-speed and regular-speed packages respectively.

Calculate each of the following variances:

a) Sales price variance

b) sales volume variance

c) Sales quantity variance

d) Sales mix variance

e) Market size variance

f) Market share variance

Studies have shown that people who suffer sudden cardiac arrest (SCA) have a better chance of survival if a defibrillator is administered very soon after cardiac arrest. How is survival rate related to the time between when cardiac arrest occurs and when the defibrillator shock is delivered? This question is addressed in the paper “Improving Survival from Sudden Cardiac Arrest: The Role of Home Defibrillators” (by J.K. Stross, University of Michigan, February 2002). The accompanying data give y = survival rate (percent) and x = mean call-to-shock time (minutes) for a cardiac rehabilitative center (where cardiac arrests occurred while victims were hospitalized and so the call-to-shock time tended to be short) and for four communities of different sizes

Mean call-to-shock time,x                 2              6              7              9              12

Survival Rate, y                                   92............ 44 .............32 ...............6 .................4

Do the following by hand and on Minitab.

1)Construct a scatter plot.

2)Calculate the Pearson correlation coefficient.

3)Determine equation of least squares line that can be used for predicting a value of y based on a value of x.

4)Compute SSE = for the least squares line.

5)Why do we call the least squares line the “best fitting line”?

6)   Calculate r² using the following formula: .   Interpret the r² value.

7) Using your equation in part c, draw the least squares line on the scatterplot you constructed in part a.

8) Use your prediction equation to predict SCA survival rate for a community with a mean call-to-shock time of 8 min. (Round your answer to five decimal places.)

1. (20 pts) Use the “Distance.sav” (SPSS) data set (located below) to perform a linear regression analysis. This dataset shows how far on average a person in Illinois drives each year. Write your findings using the format presented in the class slides. (2 pts) How much of the variation in the dependent variable is explained by the variation in the independent variable? What statistic did you use? (2 pts) Is the linear model significantly different than zero? Why or why not? What statistic did you use? (4 pts) Do the model assumptions hold? Why or why not? Provide a thorough response. (Hint: Create both a Histogram and a Normal probability plot using the standardized residuals. Also create a scatterplot of Regression Standardized Residuals and the Regression Standardized Predicted Value of the dependent variable. Attach a copy of each below.)