An excerpt from the statement of financial position of Twilight Limited follows:

Notes and Assumptions
December 31, 2020

Comprehensive Accounting Cycle Review

15.ACR  Quigley Corporation's trial balance at December 31, 2020, is presented below. All 2020 transactions have been recorded except for the items described below.

Unrecorded transactions and adjustments:

• 1.On January 1, 2020, Quigley issued 1,000 shares of $20 par, 6% preferred stock for $22,000.
• 2.On January 1, 2020, Quigley also issued 1,000 shares of common stock for $23,000.
• 3.Quigley reacquired 300 shares of its common stock on July 1, 2020, for $49 per share.
• 4.On December 31, 2020, Quigley declared the annual cash dividend and a $1.50 per share dividend on the outstanding common stock, all payable on January 15, 2021.
• 5.Quigley estimates that uncollectible accounts receivable at year-end is $5,100.
• 6.The building is being depreciated using the straight-line method over 30 years. The salvage value is $5,000.
• 7.The equipment is being depreciated using the straight-line method over 10 years. The salvage value is $4,000.
• 8.The unearned rent was collected on October 1, 2020. It was the receipt of 4 months' rent in advance (October 1, 2020 through January 31, 2021).
• 9.The 10% bonds payable pay interest every January 1. The interest for the 12 months ended December 31, 2020, has not been paid or recorded.

Instructions

(Ignore income taxes.)

(a)  

Prepare journal entries for the transactions and adjustment listed above.

(b)  

Prepare an updated December 31, 2020, trial balance, reflecting the journal entries in (a).

Total $871,200

From the December 31, 2019 balance sheet:

Convertible Preferred Stock, 6% cumulative, $100 par value, 100,000 shares authorized, 50,000 shares issued and outstanding. Dividends to preferred shareholders have been declared on schedule. Each preferred share is convertible to 4 shares of common stock (already adjusted for the 5% stock dividend).

Common Stock, $1 par, 10,000,000 shares authorized, 2,400,000 shares issued and outstanding.

Convertible bonds payable, 6% interest rate, $7,000,000 balance at December 31, 2018, issued at a discount on March 15, 2014. Each of the $1,000 bonds is convertible into 10 shares of common stock (already adjusted for the 5% stock dividend).

compute the Weighted Average Number of Common Shares for WDW Enterprises’ 2020 BASIC EARNINGS PER share

Compute Earnings Available to Common Shareholders for WDW Enterprises’ 2020 BASIC EARNINGS PER SHARE

Compute basic EPS

Determine WDW Enterprises’ 2020 DILUTED EARNINGS PER SHARE. Show computations that determine if any potentially dilutive security is dilutive or antidilutive.  

Computations for Convertible Preferred Stock (Incremental)

Computations for Convertible Bonds Payable (Incremental)

Computations for Stock Options (Incremental)

Weighted Average Number of Common Shares for WDW Enterprises’ 2020 DILUTED EARNINGS PER SHARE?

Earnings Available to Common Shareholders for WDW Enterprises’ 2020 DILUTED EARNINGS PER SHARE?

Compute diluted EPS

Question 1

Jack is a restaurant owner in San Francisco downtown. Due to the recent coronavirus pandemic, he can now accept orders only for pickups and delivery services. This change in the format of incoming orders has made him revisit his assumption for daily estimation of order arrival. The reason why he needs to make this estimation, is for him to prepare the raw materials the night before, for the following day orders.

Based on his past experience, his assumption has been to expect around 18.5 orders a day. He also knows that regardless of season or the situation, the incoming orders always follow a normal distribution. However, to re-evaluate his assumption of 18.5 orders a day, he decided to keep a track of the total number of orders per day for about 10 days. Now Jack has come to you to help him evaluate the daily demand since he knows you are a pro in supply chain analytics.

Using the information that Jack has recorded in the table below, please calculate the upper and lower bound for a 90% confidence interval.

A) 90% Confidence interval lower bound

Round your answer to 1 decimal place (ex.: 19.4 for 19.432).

Answer:

B) 90% Confidence interval upper bound

Round your answer to 1 decimal place (ex.: 19.4 for 19.432).

Answer:

Question 2

After you reported the confidence interval bounds, Jack has come back to you for more information. He wants to know if his original assumption of 18.5 orders a day is still the same after the changes in the format of incoming orders.

Using the daily orders that Jack has captured during the 10 days, please run a hypothesis testing to check whether or not his original assumption of an average of 18.5 orders per day is still in line with the actuals that he has recorded.

H 0 : The average number of orders per day is equal to to 18.5  

H 1 : The average number of orders per day is not equal to 18.5

A) What is the test statistic of this hypothesis testing?

Round your answer to 1 decimal place (ex.: 19.4 for 19.432)

Answer:

B) Based on the significance level of 10% (the same as the previous section), can we reject the null hypothesis?

No

Yes

(a)Identify and the briefly explain the motivation for direct foreign investment.

    (b)A US based MNC plans to invest in a new project either in the U.S. or in
    Mexico. Currently 75% of its investment is in the U.S. Historical records show
    that the variability of returns on this existing investment measured by the
    standard deviation is 0.08. A four year forecast of the strategic features of the
    proposed new project are summarized below as follows:
                                                                 If located in U.S. If located in Mexico
Mean of expected annual rate of return       10% 10%
Standard deviation of returns                        0.06 0.08
Correlation of returns with existing project  0.90 0.30
Based on quantitative evidence on RISK and RETURN, determine the
location that will produce more stable return for this firm.  

5) Calculate: If there are 360 million people living in the U.S, and 290 million are eligible workers while 170 million are in the labor force with 10% unemployed, what is the number of unemployed workers?

6) Calculate: If there are 360 million people living in the U.S, but 1 million died of health issues leaving 289 million eligible workers, what is the unemployment rate if 170 million are in the labor force and 7 million are actively looking work?

7) Calculate: If there are 360 million people living in the U.S, and 289 million are eligible workers while 80 million are considered discouraged workers and 10 million are considered unemployed at a rate of 10%, what is the number of people in the labor force?

Pinworm: In a prior sample of U.S. adults, the Center for Disease Control (CDC), found that 10% of the people in this sample had pinworm but the margin of error for the population estimate was too large. They want an estimate that is in error by no more than 2.5 percentage points at the 90% confidence level. Enter your answers as whole numbers.

(a) What is the minimum sample size required to obtain this type of accuracy? Use the prior sample proportion in your calculation.

The minimum sample size is U.S. adults.

(b) What is the minimum sample size required to obtain this type of accuracy when you assume no prior knowledge of the sample proportion?

The minimum sample size is U.S. adults.

In a 2018 poll conducted by SurveyMonkey, they randomly surveyed 368 students

from two- and four-year institutions across the U.S. According to the survey, 58% purchased at

least one of their textbooks on Amazon. What proportion of all U.S. college students purchased

at least one of their textbooks on Amazon?

a. Use StatCrunch to find a 95% confidence interval: _________________

b. Interpret your confidence interval in words.

c. True or False: A 90% confidence interval would be wider than a 95% confidence interval.

d. If the true proportion of all U.S. college students who purchased at least one of their

textbooks on Amazon was 62%, does our confidence interval support or refute it?

Suppose that France has 175,000 gallons of milk, Germany has 600,000 cookies, The U.S. has 1,000,000 cookies. France traded 50,000 gallons milk to Germany for 120,000 cookies; and the U.S. traded 192,000 cookies to France for 80,000 gallons of milk.

a) What is the price of milk in terms of cookies? (i.e. what is the amount of cookies you can get for one gallon of milk?)

b) What is the price of cookies in terms of milk? (i.e. what is the amount of milk you can get for one cookie?)

c) What is the final consumption opportunities for France, Germany, and the U.S. (what is the quantity of each product that is available to each of these countries as a result of trade?)