The Super Bowl Indicator Theory suggests that the stock market will have a positive year if the team in the National Football Conference, or a team with an NFC origin, wins. If the American Football Conference team wins, the market will fall. According to the recent news (MarketWatch, 2/6/2017), it has accurately predicted the direction of the market for the year following 40 of the 50 Super Bowls since the first super bowl in 1967. Why do we have such phenomena? Is the finding consistent with market efficiency? Please explain...I may have further questions..

Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $94 per unit, and variable expenses are $64 per unit. Fixed expenses are $834,300 per year. The present annual sales volume (at the $94 selling price) is 25,400 units. Required: 1. What is the present yearly net operating income or loss? 2. What is the present break-even point in unit sales and in dollar sales? 3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit? 4. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e.g., the selling price at the level of maximum profits)?

1. X corp is closing its books for year and asks the law firm for the amount they should accrue for their legal work performed for the year that won’t be billed until next year. The law firm estimates $100,000 of 2019 legal fees that will be billed after year-end. X corp accrues the full $100,000 in December.

In January, the law firm bills x corp  60,000 for 2019 legal work and indicates that the remaining $40,000 will be billed in February 2020. In February, the law firm issues a final bill for 2019 legal work that comes in at $32,000.

Show the dec, jan, and feb entries

2. On 8/1, ABC bank asks X corp. to conduct a 3 week research project for a new credit card the bank is planning on issuing. X corp proposes a fee of $514,540 for the project which the bank accepts. On 9/2, ABC bank issues a check to X corp for $514,450, accidentally short paying the invoice by $90. X corp decides to write-off the short payment. Show how X corp. should record all the transactions relating to this project.

3. X corp buys a $100,000 certificate of deposit (CD) through its bank using excess cash in its operating account on 3/1. The CD matures in 90 days and pays interest upon maturity of $750. Show the entries to record these transactions.

​DFB, Inc., expects earnings this year of $ 4.21 per​ share, and it plans to pay a $ 1.88 dividend to shareholders. DFB will retain $ 2.33 per share of its earnings to reinvest in new projects with an expected return of 15.1 % per year. Suppose DFB will maintain the same dividend payout​ rate, retention​ rate, and return on new investments in the future and will not change its number of outstanding shares.

a. What growth rate of earnings would you forecast for​ DFB?

Earnings growth rate will be..............​%.(Round to two decimal​ places.)

b. If​ DFB's equity cost of capital is 12.4%​, what price would you estimate for DFB​ stock?

The stock price will be ​$.................​ (Round to the nearest​ cent.)

c. Suppose DFB instead paid a dividend of $2.88 per share this year and retained only $1.33 per share in earnings. That​ is, it chose to pay a higher dividend instead of reinvesting in as many new projects. If DFB maintains this higher payout rate in the​ future, what stock price would you estimate​ now?

In this case the stock price will be $.............(Round to the nearest​ cent.)

Should DFB follow this new​ policy?

This is what the company should​ do: ​ (Select the best choice​ below.)

A.Not raise dividends because companies should always reinvest as much as possible.

B.Not raise dividends because projects have positive NPV when the return on new investments is higher than the​ firm's cost of capital.

C.Raise dividends​ because, according to the​ dividend-discount model, doing so will always improve the share price.

D.Raise dividends because the return on new investments is lower than the cost of capital.

Minden Company introduced a new product last year for which it is trying to find an optimal selling price. Marketing studies suggest that the company can increase sales by 5,000 units for each $2 reduction in the selling price. The company’s present selling price is $91 per unit, and variable expenses are $61 per unit. Fixed expenses are $832,200 per year. The present annual sales volume (at the $91 selling price) is 25,900 units.

Required:

1. What is the present yearly operating income or loss?

2. What is the present break-even point in unit sales and in dollar sales?

3. Assuming that the marketing studies are correct, what is the maximum annual profit that the company can earn? At how many units and at what selling price per unit would the company generate this profit?

4-a. What would be the break-even point in unit sales and in dollar sales using the selling price you determined in (3) above (e.g., the selling price at the level of maximum profits)?

Note: This problem is for the 2018 tax year.

Roberta Santos, age 41, is single and lives at 120 Sanborne Avenue, Springfield, IL 60781. Her Social Security number is 123-45-6780. Roberta has been divorced from her former husband, Wayne, for three years. She has a son, Jason, who is 17, and a daughter, June, who is 18. Jason's Social Security number is 111-11-1112, and June's is 123-45-6788. Roberta does not want to contribute $3 to the Presidential Election Campaign Fund.

Roberta, an advertising executive, earned a salary from ABC Advertising of $80,000 in 2018. Her employer withheld $9,000 in Federal income tax and $3,100 in state income tax.

Roberta has legal custody of Jason and June. The divorce decree provides that Roberta is to receive the dependency deductions for the children. Jason lives with his father during summer vacation. Wayne indicates that his expenses for Jason are $5,500. Roberta can document that she spent $6,500 for Jason's support during 2018. In prior years, Roberta gave a signed Form 8332 to Wayne regarding Jason. For 2018, she has decided not to do so. Roberta provides all of June's support.

Roberta's mother died on January 7, 2018. Roberta inherited assets worth $625,000 from her mother. As the sole beneficiary of her mother's life insurance policy, Roberta received insurance proceeds of $300,000. Her mother's cost basis for the life insurance policy was $120,000. Roberta's favorite aunt gave her $13,000 for her birthday in October.

On November 8, 2018, Roberta sells for $22,000 Amber stock that she had purchased for $24,000 from her first cousin, Walt, on December 5, 2012. Walt's cost basis for the stock was $26,000, and the stock was worth $23,000 on December 5, 2014. On December 1, 2018, Roberta sold Falcon stock for $13,500. She had acquired the stock on July 2, 2014, for $8,000.

An examination of Roberta's records reveals that she received the following:

• Interest income of $2,500 from First Savings Bank.
• Groceries valued at $750 from Kroger Groceries for being the 100,000th customer.
• Qualified dividend income of $1,800 from Amber.
• Interest income of $3,750 on City of Springfield school bonds.
• Alimony of $16,000 from Wayne; divorce finalized in 2015.
• Distribution of $4,800 from ST Partnership. Her distributive share of the partnership passive taxable income was $5,300. She had no prior passive activity losses. Assume that the qualified business income deduction applies and the W–2 wage limitation does not.

From her checkbook records, she determines that she made the following payments during 2018:

• Charitable contributions of $4,500 to First Presbyterian Church and $1,500 to the American Red Cross (proper receipts obtained).
• Paid $5,000 to ECM Hospital for the medical expenses of a friend from work.
• Mortgage interest on her residence of $7,800 to Peoples Bank.
• Property taxes of $3,200 on her residence and $1,100 (ad valorem) on her car. $800 for landscaping expenses for residence.
• Estimated Federal income taxes of $2,800 and estimated state income taxes of $1,000.
• Medical expenses of $5,000 for her and $800 for Jason. In December, her medical insurance policy reimbursed $1,500 of her medical expenses. She had full-year health care coverage.
• A $1,000 ticket for parking in a handicapped space.
• Attorney's fees of $500 associated with unsuccessfully contesting the parking ticket.
• Contribution of $250 to the campaign of a candidate for governor.

Because she did not maintain records of the sales tax she paid, she calculates the amount from the sales tax table to be $994.

PLEASE FILL OUT AT 2018 SCHEDULE E FORM

Bahwana Tours is a medium-sized travel agency in Oman. It was established in the year 2015. It has been operating for four years now and business has been doing well. Your firm has been auditing Bahwana Tours since it was established. For this year-end audit, you were assigned by your firm to Bahwana Tours. The audit for the current year is now nearly complete. Though you expect the audit to go smoothly like in the past, this year seem to be different. In the analysis, you noticed some unbelievable trends including a 200% increase in revenue since last year despite the economy being relatively flat. You have also noticed that Bahwana Tours changed their accounting treatment for revenues which was different compared to last year. As it seem unusual for Bahwana, you and the audit partner have spoken to senior management. You told them about the inappropriateness of the new accounting treatment and ask them if they could go back to the old one they were using or find another alternative. However, senior management have refused to change it or make any disclosures relating to these accounting policy changes in the notes to financial statements. They mentioned that this accounting treatment has helped them increase their revenue greatly and it will attract many investors. You estimate that if the accounting policy were to be changed to comply with the appropriate financial reporting framework, the current profit of OMR 1,000,000 would reduce by half.

Required: Explain your answer to the following questions:  

1. Based on the given situation, write your reasons if the auditor can form his opinion on the financial statements? Formulate your answer based on ISA 200 and ISA 700 concepts.    2. What are the key decision points that could be obtained by the auditor from the case in forming his opinion? Determine the appropriate auditor’s opinion to be included in the auditor’s report whether

Unmodified Opinion or Modified Opinion. Justify your decision.                              

Each year a certain magazine publishes a list of "Best Places to Live in the United States." These listings are based on affordability, educational performance, convenience, safety, and livability. Suppose the list below shows the median household income of the magazine's top city in each U.S. state for a certain year. (Round your answers to the nearest cent.)

(a)

Compute the mean and median (in $) for these household income data.

mean$ _______________

median$ ________________

(c)

Compute the range and standard deviation (in $) for these household income data. (Round your standard deviation to the nearest cent.)

range$ _____________

standard deviation$ ________________

(d)

Compute the first and third quartiles (in $) for these household income data.

Q₁$ ____________________

Q₃$ ____________________

(e)

Are there any outliers in these data?

There  ---Select--- below the lower limit and  ---Select--- above the upper limit.

What does this suggest about the data?

There are no outliers in the data, which is likely why the mean value is the same as the median.

There are no outliers in the data, which is likely why the mean value is greater than the median.    

There are outliers in the data, which is likely why the mean value is less than the median.

There are no outliers in the data, which is likely why the mean value is less than the median.

There are outliers in the data, which is likely why the mean value is greater than the median.

In this question we will reflect on the Australian fires from last year. A wide part of Australia has experienced severe fires in the last year, which made the economy much less productive and had severe impacts on business activities.

1. a) Explain why you could expect negative shifts in the aggregate demand curve following the fires. What would you expect are the drivers of this shift? Reflect on each of the components of the aggregate demand and comment on whether they are likely to change due to the fires. [6 marks]

2. b) Explain why you could expect negative shifts in the aggregate supply curve following the fires. What would you expect are the drivers of this shift? Reflect on each of the components of the aggregate supply and comment on whether they are likely to change due to the fires. [6 marks]

3. c) Show the shifts discussed in parts a) and b) graphically. You may assume an upward sloping AS curve for simplicity. Can you predict what happens to real GDP and the price level? [8 marks]

4. d) The fires in Australia can also be considered a decrease in the country’s stock of capital. You may use the Solow model to show what happens when capital decreases and what the model predicts for the new growth rate. Are these con- sequences likely to happen in practice? [10 marks]

1. In one year the economy could be in one of three possible states: bust, normal, or boom with corresponding probabilities of 0.25, 0.5 and 0.25. The returns on a common stock A and the market portfolio M conditional on the state of the economy are presented in the table below. Assuming CAPM holds in the economy, calculate the market risk premium over the period.