"Eleven percent of U.S. adults eat fast food four to six times per week. You randomly select" 16 "U.S. adults. Find the probability that the number of U.S. adults who eat fast food four to six times per week is" (Larson & Farber) for questions a through d (round to three decimal places). Also answer question 1e. 1a) exactly 3 1b) more than 4 1c) at most one 1d) less than 3 le) Determine the mean, variance, and standard deviation of the binomial distribution. For each, round to one decimal place?

1. How does the Bureau of Labor and Statistics compute the labor force and the unemployment rate?
2. How does the current U.S. unemployment rate compare with unemployment rates in other developed countries and unemployment rates from U.S. history?
3. Define the following causes of unemployment: frictional, structural, and cyclical. Which of these causes is more paramount during a severe recession?
4. How might governments reduce the amount of: 1) frictional and 2) structural unemployment?
5. Why do unemployment rates in European countries tend to be higher than in the U.S.?
6. Does (a) automation/new technologies or (b) immigration increase the unemployment rate? Why or why not?
   

In a monetary policy move at the end of 2016, the U.S Federal Reserve Bank, the country’s central bank raised interest rate citing a stronger economic growth and rising employment. Here in Asia, currencies have generally been weakening against the US dollar as money has flown out of Asia and into the dollar.

Sources: BBC News, 15 & 16 December 2018

a) How have the Asian countries been affected by the increase in the U.S. interest rates?

b) In the absence of government intervention in Asian countries to the increase in U.S. interest rates, identify and explain two possible beneficial and two non-beneficial effects on the economy.

2. The current price level in the U.S. is $14,000 per consumption bundle, and £10,000 per consumption bundle in the U.K.. The spot rate is $1.65/£. The annual inflation rate is expected to be 2% in the U.S. and 5% in the U.K.

(1) Assume £ weakens against dollar by 4% in the next year. Discuss with calculations (a) the impact on GBP’s purchasing power in U.S. in the next year; (b) the impact on GBP’s purchasing power in U.K. in the next year; (c) which country will become more competitive in the world market next year

(2)    Calculate to conclude the deprecation/appreciation of GBP that leads to no change to the trade between two countries in the next year.

After listening to the lecture, viewing the clips and reading the articles, the class should have an understanding of the global impact of the movement of the U.S. Dollar.

The current U.S. President has stated in strong and at times disparaging terms that the dollar was far too strong relative to our trading partners. Notwithstanding his comments and other factors since the beginning of the year, the dollar remains strong relative to other currencies.

Please discuss the following questions in your groups:

1. What are the implications of a strong dollar to U.S. trading partners?

2. How does this benefit or harm, American consumers?

3. Does it benefit American workers?

Current Designs faces a number of important decisions that require incremental analysis.

Recently, Mike Cichanowski, owner and CEO of Current Designs, received a phone call from the president of a brewing company. He was calling to inquire about the possibility of Current Designs producing “floating coolers” for a promotion his company was planning. These coolers resemble a kayak but are about one-third the size. They are used to float food and beverages while paddling down the river on a weekend leisure trip. The company would be interested in purchasing 100 coolers for the upcoming summer. It is willing to pay $250 per cooler. The brewing company would pick up the coolers upon completion of the order.

Mike met with Diane Buswell, controller, to identify how much it would cost Current Designs to produce the coolers. After careful analysis, the following costs were identified.

Direct materials
$77/unitVariable overhead
$23/unit

Direct labor
$61/unitFixed overhead
$1,000

Current Designs would be able to modify an existing mold to produce the coolers. The cost of these modifications would be approximately $2,000.

(a)

Prepare an incremental analysis to determine whether Current Designs should accept this special order to produce the coolers. (Enter decrease in net income then enter with a negative sign preceding the number or parenthesis, e.g. -15,000 or (15,000).)

Reject OrderAccept OrderNet Income
Increase (Decrease)

Revenues$ $ $

Costs

Net Income$ $ $

Current Designs should                                                           accept or reject the order based on the incremental analysis.

E2. Arla is one of the popular dairy products manufacturers. They are producing
world popular dairy products in their company like cheese, yogurt, butter, milk and
milk based products. Milk powder is one the fast moving product of this company.
Idris is the CEO of that company and he is coordinating various department staffs in
that company. Idris having good analytical skills. He is trying to implement the
innovative financial management concepts in his organization. Idris quite often calls
the employees of all the departments and conduct meetings frequently during his

meeting he is always insisting the employees to work with limited means of
resources, and he allocates periodically budget for all the activities. The expenses
should incur within the budget itself. He will never allocate extra budget for any other
department. He is always connecting the decisions of the present with the outcomes
of the future. He prefer to have two important decisions by his own skills, one of
them is investment decision and the other one financial decisions. No business in
this world is risk free. Idris will take some concrete decisions at the end of every
financial year. If any uncertainty happens he is able to manage wisely, he is always
accepting any type of challenges in his business.
Solve the below questions:
(a). How does the Alternative financial services will create impact on this case?
(b). Identify the major challenges faced by Idris in his business, recommend any
two Non-banking financial institutions which is helpful to him in this situation?

The Stackpole Company retails two products, a standard and deluxe version of a luggage carrier.

The standard carrier sells for $28, has variable costs of $18, and direct fixed costs of $1,000,000. The deluxe model sells for $50, has variable costs of $30, and direct fixed costs of $1,000,000. The company has common fixed costs of $250,000. The anticipated sales mix for the company is 3:1 or 75/25. The actual level of sales units currently is 250,000 and your target income is $250,000. You expect sales to rise 10% in the coming year.

Directions:

You have been hired to build a CVP model to help the company understand the impact of business conditions on operating income. Your model should include breakeven in units with a pro forma income statement, units sales for a target income of $250,000 with a pro forma income statement, an income statement reflecting actual current sales, margin of safety in dollars and %, and degree of operating leverage. Your model should have the capability of computing B/E, target income, MOS, DOL, and predicting change in income based on a change in sales. Create a dashboard to show these variables.

Once you have built the model, use the model to determine changes to the dashboard variables. In a report to me, your CEO, show the original variables, the changed variables and explain why the change occurred.

1. Sales mix changes to 25/75
2. Common fixed costs increase by $100,000
3. Reduce VC of the standard carrier to $10 per unit

For each of the situations? listed, identify which of three principles? (integrity, objectivity and? independence, or due? care) from the AICPA Code of Professional Conduct that is violated. Assume all persons listed in the situations are members of the AICPA.? (Note: Refer to the AICPA Code of Professional? Conduct.

On January 1, 2020, Empress Bank granted a loan to a borrower. The interest on the loan is 10% payable annually starting on December 31, 2019. The loan matures in three years on December 31, 2022. Principal amount 5,000,000 Direct origination cost incurred 457,500 Origination fee charged against the borrower 200,000 After considering the origination fee charged against the borrower and the direct origination cost incurred, the effective rate on the loan is 8%.

Determine the carrying amount of the loan on January 1, 2020.

Prepare journal entries for January 1, 2020.

Prepare journal entry for receipt of interest on December 31, 2020.

Prepare journal entry for amortization of direct origination cost in 2021.

Prepare journal entry for receipt of payment of loan in 2022.