Prepare the Income Statement, Balance Sheet and Statement of Owner's Equity in an Excel File. (1). Mr. Sheng sought an attorney for legal advice to help him start a company, The Sheng Enterprise, which sells native rattan bags. On January 1, 2010, Mr. Sheng invested P2,000,000.00 cash in the business. The attorney advised him to hire an accountant for his bookkeeping. Mr. Sheng paid P1,000.00 for the legal services. However, Mr. Sheng was preoccupied with the product development that was already the end of January before he hired you to straighten out his records. While understanding the business transactions that occurred during January, you discover that: After he invested P2,000,000.00 cash and paid the attorney, P1,000.00, on January 5, Mr. Sheng borrowed P600,000.00 from the bank, where he has to pay the bank a part of the principal and interest monthly for 1 year starting this January 31st. That is, a fixed P50,000.00 from the principal and interest amounting, P1,500.00. On January 13, Mr. Sheng purchased a secondhand delivery truck in the company name, paying P450,000.00 down and financing P300,000.00. The first payment on the truck is due February 15. Apart from this, he also rented an office and paid 3 months’ rent of P36,000.00 in advance, credit purchase of office equipment of P45,000.00, cash purchase of supplies amounting, P15,000.00. On the 24th of January, Mr. Sheng sold P180,000.00 worth of rattan bags- P75,000.00 were credit transactions. Of the credit transactions, P32,000.00 was collected during January 31 and the balance remained to be collected at the end of February. On January 31, the company received a bill of P7,000.00 for the January utility expenses and a check amounting, P6,000.00 from a customer for orders to be completed February. Lastly, wages of P15,000.00 were paid to the employees.

3.7 An insurance company is looking to replace its legacy claims payment system. The Technology Steering Committee is willing to explore three alternative systems. Table EX 3.7 summarizes the cost savings for each system under potential peak claims volumes.

a. The most recent system implementation was riddled with data conversion issues and end-user resistance. Accordingly, members of the Technology Steering Committee are relatively pessimistic decision makers. Which system would be selected under a Hurwitz value of 0.2?

b. Which system would be selected under minimax regret?

c. Which system would be selected using the Laplace strategy solution?

d. The company's information technology (IT) department submitted a proposal to develop an in-house solution for claims payment. This in-house solution is expected to provide cost savings of $25,000 for five million claims, $75,000 for ten million claims, and $120,000 for fifteen million claims. Determine if the system selection changes in parts (a) through (c) when the in-house system is added as an alternative

4) Use technology and the given confidence level and sample data to find the confidence interval for the population mean mu. Assume that the population does not exhibit a normal distribution.

Weight lost on a diet:

95 % confidence

n =61

x =2.0 kg

s = 3.9 kg

What is the confidence interval for the population mean mu​?

Kg<µ<kg

5) Listed below are the amounts of mercury​ (in parts per​ million, or​ ppm) found in tuna sushi sampled at different stores. The sample mean is 0.957 ppm and the sample standard deviation is 0.363 ppm. Use technology to construct a 90​% confidence interval estimate of the mean amount of mercury in the population.

1.03

0.83

1.48

0.92

0.51

1.35

0.58

What is the confidence interval estimate of the mean amount of mercury in the​ population?

Ppm< µ< ppm

7) In order to estimate the mean amount of time computer users spend on the internet each​ month, how many computer users must be surveyed in order to be 95​% confident that your sample mean is within 14 minutes of the population​ mean? Assume that the standard deviation of the population of monthly time spent on the internet is 202 min. What is a major obstacle to getting a good estimate of the population​ mean? Use technology to find the estimated minimum required sample size.

4) Use technology and the given confidence level and sample data to find the confidence interval for the population mean mu. Assume that the population does not exhibit a normal distribution.

Weight lost on a diet:

95 % confidence

n =61

x =2.0 kg

s = 3.9 kg

What is the confidence interval for the population mean mu​?

Kg<µ<kg

5) Listed below are the amounts of mercury​ (in parts per​ million, or​ ppm) found in tuna sushi sampled at different stores. The sample mean is 0.957 ppm and the sample standard deviation is 0.363 ppm. Use technology to construct a 90​% confidence interval estimate of the mean amount of mercury in the population.

1.03

0.83

1.48

0.92

0.51

1.35

0.58

What is the confidence interval estimate of the mean amount of mercury in the​ population?

Ppm< µ< ppm

7) In order to estimate the mean amount of time computer users spend on the internet each​ month, how many computer users must be surveyed in order to be 95​% confident that your sample mean is within 14 minutes of the population​ mean? Assume that the standard deviation of the population of monthly time spent on the internet is 202 min. What is a major obstacle to getting a good estimate of the population​ mean? Use technology to find the estimated minimum required sample size.

Dave is a medical device distributor in Nevada and runs his business as a sole proprietor.

He therefore pays taxes on his business income as part of his individual income tax filing.

Currently his effective tax rate is 43.4%

He has recently been made aware of a new technology that can be used during surgery that

more effectively controls blood loss. Deployment of this technology would require purchasing

additional equipment and employing a couple of technicians to use the equipment at local

hospitals. He is seeking your advice on whether he should adopt this technology from a

financial perspective. The initial investment in the equipment would be $900,000. The

machine would operate for eight years, after which the machine would be worthless and Dave

is expecting to retire. In each of those eight years, he expects to generate revenue of $900,000

and have an operating margin of 19% (employee expenses and materials would run 81% per

year). He would depreciate the machine for tax purposes using straight-line depreciation over

the eight years. There would also be an initial investment in working capital of $135,000

which would be fully recovered at the end of the eighth year.

If dave makes this investment his tax rate will be 43.4%, and the required return will be 5% what is the NPV?

Research the concept of “externalities” and explain in your own words, the idea of an externality. (The Wikipedia entry on externalities is a good source. Skip the mathematical definition.)

(15 points) List five examples of externalities, preferably from engineering projects, processes, inventions, or products. You must be specific, - what is the technology or process and what is the resulting social impact. Do not cut and paste or copy from Wikipedia. Be creative and interesting with your examples. Your list should include some positive and negative events

(15 points) List three examples of possible solutions to “negative” externalities. What was the externality, what caused it and what was the remedy. Was the remedy successful?

(0 points) Think about possible topics for your presentation. Look for “modern” technologies, inventions or processes that have had a significant effect on society. Look for externalities – unintended consequences and/or unexpected applications of a technology. Ex: cell phone banking in Africa, adapting missile detection technology to fight malaria. Contemporary issues such as the legal and moral issues of self-driving cars or climate change are possible topics.

Explain the “tragedy of the commons” in a short paragraph – using your own words!

Even ancient technologies have externalities. Give some positive and negative examples for one of the following technologies: agriculture, fire, or animal domestication.

U.S. and Chinese GDP Growth in the Long Run. China is a country with a very high savings rate s, about 40%. The U.S. has a much lower savings rate, closer to 15%. (There are many reasons for this difference.) For this question, assume that the population growth rate n, technology growth rate g, depreciation rate δ, and production function f(k) in China are the same as in the U.S.

a) According to the full Solow growth model (with technology growth), what does this higher savings rate imply about the steady state of China’s output per effective worker relative to the U.S.? Draw a diagram to help illustrate your answer.

b) China’s GDP/person has been growing at about 8.2%/year for the past 25 years, while GDP/person in the U.S. has been growing closer to 2%/year. According to the full Solow growth model (with technology growth), how will the growth rate of China’s GDP/person compare to that of the U.S. once these two economies reach their steady states?

c) According to your analysis in part b, can China’s GDP/person continue to grow at its historical average rate of 8.2%/yr. for the indefinite future, while the U.S.’s steady-state growth rate of GDP/person is around 2%/yr.?

1. Identify the risks and

2. Internal control procedure(s) to mitigate the risk

Characteristics of the Organization

- A small non-profit organization that provides housing for youths with revenues of approximately $700,000. The organization also provides counseling and offers other services to assist the youths.

- There are 2 funding agreements with the Municipality – 1) for purposes of the housing operations and 2) for community development. The funding agreements are signed annually. Any excess funding at the end of the Organization’s fiscal year-end has to be repaid to the Municipality. The agreements stipulate that an annual financial statements audit is required.

- Youths are charged for housing and there is a nominal fee for the other services

- 2 paid staff members, a housing manager and community development worker

- The contracted bookkeeper moved down south two months ago

- The Board of Directors is made up of 6 members from the community. Members have varying degrees of expertise such as social work, fundraising, operations manager, teacher, nursing and a computer programmer

The Organization just hired a new housing manager, Carole. Carole has limited experience in overseeing the operations of a housing organization. Several years ago Carole took a bookkeeping course and has told the Board of Directors that she could also do the bookkeeping. Carole did not inform the Board of Directors that she does not have experience with the Organization’s accounting system.

Since the bookkeeper’s position has been vacant for several months the Organization’s receivables have increased. In addition, during the recent months the Organization has not been operating at capacity.

The Organization accepts cash for rents payments and Carole keeps the cash in the office’s top desk drawer until she is able to deposit it. Carole makes two deposits a month.

Since Carole has a part-time job in the evenings working at a dry-cleaner’s she requests that the Organization consider her contract rather than an employee.

Work was required on the vacant units, such as new carpeting and painting so Carole hired her son and paid him cash from the rent payments she received.

The Organization purchased a new boiler during the year and it was expensed in operations. The Organization’s accounting records showed a large surplus and since the Organization is required to repay surpluses from both housing and community development funding back to the Municipality Carole decided to renovate the community centre and install new cabinets and purchase new appliances in the amount of $15,000.

The board met monthly to discuss issues affecting the Organization but have not received monthly financial reports in at least six (6) months to review.

(a) Please write down the p.m.f of the binomial distribution X∼B(30,.4) and compute P(X∈[15,17]).

(b) Please write down the p.d.f of Normal distribution N(μ,σ2) and compute the mean, median, mode of N(4,16).

a. Could sucrase be used to break down another disaccharide, such as lactose? Explain your reasoning.

b. Could sucrase be used to break down a polysaccharide, such as cellulose? Explain your reasoning.

c.      Explain two factors that could cause sucrase to denature.