[The following information applies to the questions displayed below.]

Three different companies each purchased trucks on January 1, Year 1, for $50,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 66,000 miles in Year 1, 42,000 miles in Year 2, 40,000 miles in Year 3, and 60,000 miles in Year 4. Each of the three companies earned $40,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation.

Answer each of the following questions. Ignore the effects of income taxes.

b-1. Calculate the net income for Year 4.
b-2. Which company will report the lowest amount of net income for Year 4?

Which company will report the lowest amount of net income for year 4?

dministrative Expense Budget

Green Earth Landscaping Company provides monthly and weekly landscaping and maintenance services to residential customers in the tri-city area. Green Earth has no variable administrative expense. Fixed administrative expenses for June, July, and August include:

Required:

1. Construct an administrative expense budget for Green Earth Landscaping Company for the three summer months. Show total amounts by month and in total for the three-month period.

2. What if Green Earth Landscaping Company's insurance rates increased at the beginning of July to $3,000 per month? How would that affect monthly administrative expense?

Total monthly administrative cost would   by $.

1. Assess AnswerDash’s current go to market approach, including customer selection, pricing, communication, and sales effort. Which aspects do you like and which ones you do not like?

2. Based on the current pricing model, what is the life time value of a customer to AnswerDash? (Make reasonable assumptions as needed)

3. What is your view on the three primary options AnswerDash is contemplating going forward? Which would you recommend the company pursue?

4. For the strategic option you support, commuincate a complete marketing strategy plan, including which companies to target, how to position the value proposition, how to sell to an organization, and what pricing model/format to follow.

5. What would yo consider success of your recommended marketing approach three years down the road? How many customers do you expect AnswerDash to have and what annual revenues/profits do you anticipate?

1. What is the primary function of finance companies? How do finance companies differ from depository institutions?

2. What are the three major types of finance companies? To which market segments do each of these types of companies provide service?

3. What are the three major types of finance companies? To which market segments do each of these types of companies provide service?

4. What are the major types of consumer loans? Why are the rates charged by consumer finance companies typically higher than those charged by commercial banks?

5. Why have home equity loans become popular? What are securitized mortgage assets?

6. What advantages do finance companies have over commercial banks in offering services to small business customers? What are the major subcategories of business loans?

Which category is the largest?

7. What have been the primary sources of financing for finance companies?  

A company hopes to improve customer satisfaction, setting as a goal no more than 5% negative comments. A random survey of 350 customers found only 10 with complaints. Does this provide evidence that the company has reached its goal of getting less than 5% negative comments?

a) What is the sample statistic? Use correct notation. Round to three decimal places.

b) Write the null and alternative hypothesis. (Hint: The null is 5% or 0.05. Also, think carefully about the inequality in your alternative.)

c) Find the test statistic, z. Round to two decimal places. Show your work.

d) What is the p-value? Use Statkey or your TI-84 calculator to find the p-value. Round to three decimal places if necessary.

e) At a 5% significance level, will you reject or fail to reject H₀?

f) Write your conclusion in context.

) Hector Gonzales runs the Floral Art Company, which supplies floral arrangements to three large supermarket chains throughout Australia. Management has become concerned about the rising costs associated with the process and dispatch of orders. An activity analysis of the indirect costs identified the following customer-related costs.

Required:

1. Assign the activity costs to each of the three customers

Ram furnitures produces chairs and tables in accordance with job orders from customers. Given below are the details of a recent order.                                                                                                                                        

Number of chairs in the job order               70                                                                                    

Unit cost per chair (Breakup given below)               $95.00                                                                            

DM cost               $40.00                                                                            

DL cost $35.00                                                                            

Manufacturing overhead cost      $20.00                                                                            

The manufacturing overhead cost per chair (given above) includes a provision for normal spoilage.

6 chairs were found to be below acceptable quality and sold to a scrap dealer for $12          per chair

Prepare the appropriate journal entries for spoilage for the three independent cases given below. Also calculate the average cost of one good unit of chair in the job order for each of the three cases.                                                                                                                                           

a) The rejection due to unacceptable quality is considered as abnormal spoilage                                  

b) The rejection is considered normal and the rejection is attributable to the exacting specifications of this job

c) The rejection is considered normal and the rejection is not attributable to this job and is a characteristic of the production process

Statement of Cash Flows

The Statement of Cash Flows (also referred to as the cash flow statement) is one of the three key financial statements that report the cash generated and spent during a specific period of time (e.g., a month, quarter, or year). The statement of cash flows acts as a bridge between the income statement and balance sheet by showing how money moved in and out of the business.

Three Sections of the Statement of Cash Flows:

1. Operating Activities: The principal revenue-generating activities of an organization and other activities that are not investing or financing; any cash flows from current assets and current liabilities
2. Investing Activities: Any cash flows from the acquisition and disposal of long-term assets and other investments not included in cash equivalents
3. Financing Activities: Any cash flows that result in changes in the size and composition of the contributed equity capital or borrowings of the entity (i.e., bonds, stock, dividends)

Cash Flow Definitions

Cash Flow: Inflows and outflows of cash and cash equivalents (learn more in CFI’s Ultimate Cash Flow Guide)

Cash Balance: Cash on hand and demand deposits (cash balance on the balance sheet)

Cash Equivalents: Cash equivalents include cash held as bank deposits, short-term investments, and any very easily cash-convertible assets – includes overdrafts and cash equivalents with short-term maturities (less than three months).

Cash Flow Classifications

1. Operating Cash Flow

Operating activities are the principal revenue-producing activities of the entity. Cash Flow from Operations typically includes the cash flows associated with sales, purchases, and other expenses.

The company’s chief financial officer (CFO) chooses between the direct and indirect presentation of operating cash flow:

• Direct Presentation: Operating cash flows are presented as a list of cash flows; cash in from sales, cash out for capital expenditures, etc. This is a simple but rarely used method, as the indirect presentation is more common.
• Indirect Presentation: Operating cash flows are presented as a reconciliation from profit to cash flow

The items in the cash flow statement are not all actual cash flows, but “reasons why cash flow is different from profit.”

Depreciation expense reduces profit but does not impact cash flow (it is a non-cash expense). Hence, it is added back. Similarly, if the starting point profit is above interest and tax in the income statement, then interest and tax cash flows will need to be deducted if they are to be treated as operating cash flows.

There is no specific guidance on which profit amount should be used in the reconciliation. Different companies use operating profit, profit before tax, profit after tax, or net income. Clearly, the exact starting point for the reconciliation will determine the exact adjustments made to get down to an operating cash flow number.

2. Investing Cash Flow

Cash Flow from Investing Activities includes the acquisition and disposal of non-current assets and other investments not included in cash equivalents. Investing cash flows typically include the cash flows associated with buying or selling property, plant, and equipment (PP&E), other non-current assets, and other financial assets.

Cash spent on purchasing PP&E is called capital expenditures (or CapEx for short).

3. Financing Cash Flow

Cash Flow from Financing Activities are activities that result in changes in the size and composition of the equity capital or borrowings of the entity. Financing cash flows typically include cash flows associated with borrowing and repaying bank loans, and issuing and buying back shares. The payment of a dividend is also treated as a financing cash flow.

Based on the upper information,

Question: What is the difference between the direct and indirect method of cash flow preparation? Which method provides better information and why?

A women is brought to the ER where you are working triage. She has an extremely swollen right lower leg. You see what appears to be an old surgical wound in the mid-calf, with rough scar tissue surrounded by purplish-red skin. She is in a lot of pain and her husband speaks for her. He tells you that three weeks ago she had a group of moles removed from that area. It had appeared to heal initially, but three days ago the incision area started looking bigger rather than smaller. She did not return to the physician, hoping the condition would resolve itself. In the past three days the area has begun to swell and become very hot. You call the attending physician immediately because you know that this is a serious condition.

The patient is sent straight to surgery where the wound is debrided. Gram-positive cocci growing in chains are recovered from the wound. She is transferred to intensive care and put on high-dose intravenous antibiotics for the next 18 hours, but the next evening her leg is amputated below the knee. She remains in the hospital for two months following surgery and requires long-term antibiotic therapy and multiple skin grafts on her upper leg.

1. What condition did this patient have? What organism caused it? Provide your rationale. (5 pts)
2. Why was amputation the best solution for the infection in this case? (3 pts)
3. How is the organism transmitted? How might the patient have contracted it? (2 pts)
4. If the organism gets into blood, what other condition would doctors become concerned about? What virulence factors contribute to this condition – explain their mechanism of action and how it contributes to the disease condition. (4 pts)

B. The proportion of customers who are completely satisfied in a recent satisfaction survey of 300 customers at XYC Inc. is found to be 0.26. Test the hypothesis that the population proportion of customers who are completely satisfied is greater than 0.22 using the critical value approach and a 0.05 level of significance. e Test the hypothesis that the population proportion of customers who are completely satisfied is less than 0.30 using the p-value approach and a 0.05 level of significance. b. Test the hypothesis that the population proportion of customers who are completely satisfied is different from 0.24 using the p-value approach and a 0.05 level of significance. C.