Questions
A travel association reported the domestic airfare (in dollars) for business travel for the current year...

A travel association reported the domestic airfare (in dollars) for business travel for the current year and the previous year. Below is a sample of 12 flights with their domestic airfares shown for both years.

Current
Year		 Previous
Year
345 315
526 475
420 474
216 206
285 275
405 432
635 585
710 650
605 545
517 547
570 508
610 580

(a)

Formulate the hypotheses and test for a significant increase in the mean domestic airfare for business travel for the one-year period.

H0: μd = 0

Ha: μd ≠ 0

H0: μd < 0

Ha: μd = 0

     

H0: μd ≥ 0

Ha: μd < 0

H0: μd ≠ 0

Ha: μd = 0

H0: μd ≤ 0

Ha: μd > 0

Calculate the test statistic. (Use current year airfare − previous year airfare. Round your answer to three decimal places.)

Calculate the p-value. (Round your answer to four decimal places.)

p-value =  

Using a 0.05 level of significance, what is your conclusion?

Reject H0. We can conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.Reject H0. We cannot conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.     Do not reject H0. We cannot conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period. Do not reject H0. We can conclude that there has been a significant increase in the mean domestic airfare for business travel for the one-year period.

(b)

What is the sample mean domestic airfare (in dollars) for business travel for each year?

current $  previous $  

(c)

What is the percentage change in mean airfare for the one-year period? (Round your answer to one decimal place.)

  %

In: Statistics and Probability

The following was taken from the records of Smith Company in the year ending December 31,...

The following was taken from the records of Smith Company in the year ending December 31, 20X7. Journalize the following transactions in an Excel spreadsheet for year-end 20X7 using the aging method. Assume that the allowance for doubtful accounts has a beginning credit balance of $8,000 on January 1, 20X7. The assignment template is attached below.

Label the transactions below as journal entries #1 to #4, along with the dates of the entries:

February 20, 20x7: Wrote off Jones account: $250.

May 20, 20x7: Received $410 as partial payment on the $700 account receivable due from Garcia.

August 10, 20x7: Received $725 from Jones on the account written off on February 20, 20x7.

September 15: Wrote off the individual account receivables for the following customers as payment not expected in future: Tang: $400; Mulaka: $210; Quan: $375.

December 31, 20x7: Smith Company prepared the following aging schedule for it accounts receivables:

$120,000 of Accounts Receivable (A/R) are 0-30 days late: 3% probability of being uncollectible.

$30,000 of A/R are 31-60 days late: 10% probability of being uncollectible.

$14,000 of A/R are 61-90 days late: 20% probability of being uncollectible

$1,000 of A/R are later than 90 days late: 50% probability of being uncollectible

Instructions:

Using the Excel spreadsheet template provided for this assignment, submit the following items:

The four journal entries (1 to 4 above) with a one-sentence description for each

The T-account for the allowance for doubtful accounts

The journal entry to record bad debt expense

The balance sheet presentation of net realizable value, including gross accounts receivables of $29,500

Company Company- December 31, 201X
Journal# Date Account Title Debit Credit
a 20-Feb Allowance for doutful accounts
Jones- Accounts receivable
b
20-May Cash
Garcia-Accounts Receivables
c 10-Aug Cash
Allowance for doubtful accounts
d 15-Sep Allowance for doubtful accounts
Tang-Accounts Receivable
Mukala-Accounts Receivable
Quan-Accounts Receivable
Question 2
Dates T-Account for Allowance for doubtful accounts
Debit Credit
Begining balance
20-Feb
15-Sep
Bad Debt Expense=
Ending Balance
Calculations: Aging schedule
Days Late Accounts Receivable Amount Uncollection Probability Uncollectible Amount
Question 3
Date Account Title Debit Credit
31-Dec Bad Debt Expense
Allowance for doubtful accounts
Question 4
Balance Sheet Presentaion
Gross Accounts Receivables
Ending Balance of Allowance for Doubtbul Accounts
Net Realizable Balance

In: Accounting

Forecast the Balance Sheet Following is the balance sheet for Medtronic PLC for the year ended...

Forecast the Balance Sheet

Following is the balance sheet for Medtronic PLC for the year ended April 29, 2016.

Medtronic plc
Consolidated Balance Sheets
($ millions) Apr. 29, 2016 Apr. 24, 2015
Current assets
Cash and cash equivalents $2,988 $4,843
Investments 9,758 14,637
Accounts receivable 5,562 5,112
Inventories 3,473 3,463
Tax assets 697 1,335
Prepaid expenses and other current assets 1,234 1,454
Total current assets 23,712 30,844
Property, plant, and equipment, net 4,841 4,699
Goodwill 41,500 40,530
Other intangible assets, net 26,899 28,101
Long-term tax assets 1,383 774
Other assets 1,559 1,737
Total assets $99,894 $106,685
Current liabilities
Short-term borrowings $1,105 $2,434
Accounts payable 1,709 1,610
Accrued compensation 1,712 1,611
Accrued income taxes 566 935
Deferred tax liabilities - 119
Other accrued expenses 2,185 2,464
Total current liabilities 7,277 9,173
Long-term debt 30,247 33,752
Long-term accrued compensation 1,759 1,535
Long-term accrued income taxes 2,903 2,476
Long-term deferred tax liabilities 3,729 4,700
Other long-term liabilities 1,916 1,819
Total liabilities 47,831 53,455
Shareholders’ equity
Ordinary shares - -
Retained earnings 53,931 54,414
Accumulated other comprehensive (loss) (1,868) (1,184)
Total shareholders’ equity 52,063 53,230
Total liabilities and shareholders’ equity $99,894 $106,685

Use the following assumptions to forecast the company’s balance sheet for FY2017.

Forecasted FY2017 net income $5,151

million
Forecasted FY2017 net sales $36,274

million
Accounts receivable 19.3%

of net sales
Inventories 12.0%

of net sales
Tax assets 2.4%

of net sales
Prepaid expenses and other current assets 4.3%

of net sales
Long-term tax assets 4.8%

of net sales
Other assets 5.4%

of net sales
Accounts payable 5.9%

of net sales
Accrued compensation 5.9%

of net sales
Accrued income taxes 2.0%

of net sales
Other accrued expenses 7.6%

of net sales
Long-term accrued income taxes 10.1%

of net sales
Long-term deferred tax liabilities 12.9%

of net sales
Other long-term liabilities 6.6%

of net sales
Investments No change
Goodwill No change
Long-term accrued compensation and retirement benefits No change
Ordinary shares No change
Accumulated other comprehensive (loss) No change
CAPEX 3.6%

of net sales
Depreciation expense 18.9%

of prior year PPE, net
Amortization expense in FY2016 $1,931

million
Current maturities of debt due in FY2017 $1,105

million
Current maturities of debt due in FY2018 $6,176

million
Dividend payout ratio 60.5%

Round your answers to the nearest whole number.

Do not use negative signs with any of your answers.

Medtronic plc
Forecasted Consolidated Balance Sheet
($ millions) EST. 2017
Current assets
Cash and cash equivalents $Answer
Investments Answer
Accounts receivable Answer
Inventories Answer
Tax assets Answer
Prepaid expenses and other current assets Answer
Total current assets Answer
Property, plant, and equipment, net Answer
Goodwill Answer
Other intangible assets, net Answer
Long-term tax assets Answer
Other assets Answer
Total assets $Answer
Current liabilities
Short-term borrowings $Answer
Accounts payable Answer
Accrued compensation Answer
Accrued income taxes Answer
Other accrued expenses Answer
Total current liabilities Answer
Long-term debt Answer
Long-term accrued compensation Answer
Long-term accrued income taxes Answer
Long-term deferred tax liabilities Answer
Other long-term liabilities Answer
Total liabilities Answer
Shareholders’ equity
Ordinary shares -
Retained earnings Answer
Accumulated other comprehensive (loss) Answer
Total shareholders’ equity Answer
Total liabilities and shareholders’ equity $Answer

In: Accounting

A poll was taken this year asking college students if they considered themselves overweight. A similar...

A poll was taken this year asking college students if they considered themselves overweight. A similar poll was taken 5 years ago. Five years ago, a sample of 270 students showed that 120 considered themselves overweight. This year a poll of 300 students showed that 140 considered themselves overweight. At a 5% level of significance, test to see if there is any difference in the proportion of college students who consider themselves overweight between the two polls. What is your conclusion? Show all work and please make legible

In: Statistics and Probability

On January 1, 2017, Loud Company enters into a 2-year contract with a customer for an...

On January 1, 2017, Loud Company enters into a 2-year contract with a customer for an unlimited talk and 5 GB data wireless plan for $65 per month. The contract includes a smartphone for which the customer pays $299. Loud also sells the smartphone and monthly service plan separately, charging $649 for the smartphone and $65 for the monthly service for the unlimited talk and 5 GB data wireless plan.

Required:

1. Calculate the transaction price for the smartphone and unlimited talk and 5 GB data wireless plan assuming that Loud allocates consideration based on stand-alone prices.
2. Record the initial journal entry for Loud Company’s sale of a 2-year contract on January 1, 2017, and the monthly journal entry.

In: Accounting

Assume all salaries are paid at the end of each year; evaluate the three options for...

Assume all salaries are paid at the end of each year; evaluate the three options for peter

option 1. Stay in his current job

Annual salary $520,000 and his salary is expected to increase by 5.25% per year for 38 more years until retirement.

Peter's remuneration package includes base salary and medical and dental health care insurance plans. Assume individual income tax rate is 20%.

Option 2. Nanyang business school full-time MBA 1 yr plan

Tuition fee is $55,000, books and other supplies cost $1,200. Upon graduation, peter expects to receive offers with remuneration package that includes a base salary of $520,000 per year, signing bonus of $30,000 as well as medical and dental health care insurance. His salary will be increased by 7.25%. Individual tax rate is 20%.

Option 3. Singapore management university 1 yr plan

Tuition fee is $60,990, books and other supplies cost is $1,500. Upon graduation, peter expects to receive offers with a remuneration package that includes a base salary of $540,000 per year, signing bonus of $10,000 as well as medical and dental health care insurance plans. His salary will be increased by 7% per year. Assume individual income tax rate is 20%.

* Peter estimates that the living and miscellaneous expenses at both universities may cost $4,000 more. Assume the tuition fee as well as the additional living and miscellaneous expenses are payable at the beginning of each term and the discount rate is 8%.

In: Finance

A project requires an investment of $20,000 and will return $26,500 after one year. Suppose the...

A project requires an investment of $20,000 and will return $26,500 after one year. Suppose the 10-year Treasury bill rate is 5%, and the project has a risk premium of 12%.

A) Should this project be taken? Also Calculate the IRR of this project.

B)If the manager wants to finance the project solely with equity, what is the equity holder’s valuation of this project?

C)If the manager wants to finance the project 50% with equity and 50% with 10-year T-bill, what is equity holder’s valuation of this project?

D)Explain in your own words why the equity holder’s valuation of the project differs between B) and C).

E)Using the information of this project, draw a graph illustrating the relation between cost of levered equity and the leverage ratio [D/ (D+E)]

Please Help!

In: Finance

The following information pertains to the City of Williamson for 2017, its first year of legal...

The following information pertains to the City of Williamson for 2017, its first year of legal existence. For convenience, assume that all transactions are for the general fund, which has three separate functions: general government, public safety, and health and sanitation.

Receipts:
Property taxes $320,000
Franchise taxes 42,000
Charges for general government services 5,000
Charges for public safety services 3,000
Charges for health and sanitation services 42,000
Issued long-term note payable 200,000
Receivables at end of year:
Property taxes (90% estimated to be collectible) 90,000
Payments:
Salary:
General government 66,000
Public safety 39,000
Health and sanitation 22,000
Rent:
General government 11,000
Public safety 18,000
Health and sanitation 3,000
Maintenance:
General government 21,000
Public safety 5,000
Health and sanitation 9,000
Insurance:
General government 8,000
Public safety ($2,000 still prepaid at end of year) 11,000
Health and sanitation 12,000
Interest on debt 16,000
Principal payment on debt 4,000
Storage shed 120,000
Equipment 80,000
Supplies (20% still held) (public safety) 15,000
Investments 90,000
Ordered but not received:
Equipment 12,000
Due in one month at end of year:
Salaries:
General government 4,000
Public safety 7,000
Health and sanitation 8,000

Compensated absences (such as vacations and sick days) legally owed to general government workers at year-end total $13,000. These amounts will not be taken by the employees until so late in 2018 that the payment is not viewed as requiring 2017 current financial resources.

The city received a piece of art this year as a donation. It is valued at $14,000. It will be used for general government purposes. There are no eligibility requirements. The city chose not to capitalize this property.

The general government uses the storage shed that was acquired this year. It is being depreciated over 10 years using the straight-line method with no salvage value. The city uses the equipment for health and sanitation and depreciates it using the straight-line method over five years with no salvage value.

The investments are valued at $103,000 at the end of the year.

For the equipment that has been ordered but not yet received, the City Council (the highest decision-making body in the government) has voted to honor the commitment when the equipment is received.

  1. b-2. Prepare a balance sheet for the general fund as of December 31, 2017. Assume that the city applies the consumption method.

In: Accounting

The following information pertains to the City of Williamson for 2017, its first year of legal...

The following information pertains to the City of Williamson for 2017, its first year of legal existence. For convenience, assume that all transactions are for the general fund, which has three separate functions: general government, public safety, and health and sanitation.

Receipts:
Property taxes $320,000
Franchise taxes 42,000
Charges for general government services 5,000
Charges for public safety services 3,000
Charges for health and sanitation services 42,000
Issued long-term note payable 200,000
Receivables at end of year:
Property taxes (90% estimated to be collectible) 90,000
Payments:
Salary:
General government 66,000
Public safety 39,000
Health and sanitation 22,000
Rent:
General government 11,000
Public safety 18,000
Health and sanitation 3,000
Maintenance:
General government 21,000
Public safety 5,000
Health and sanitation 9,000
Insurance:
General government 8,000
Public safety ($2,000 still prepaid at end of year) 11,000
Health and sanitation 12,000
Interest on debt 16,000
Principal payment on debt 4,000
Storage shed 120,000
Equipment 80,000
Supplies (20% still held) (public safety) 15,000
Investments 90,000
Ordered but not received:
Equipment 12,000
Due in one month at end of year:
Salaries:
General government 4,000
Public safety 7,000
Health and sanitation 8,000

Compensated absences (such as vacations and sick days) legally owed to general government workers at year-end total $13,000. These amounts will not be taken by the employees until so late in 2018 that the payment is not viewed as requiring 2017 current financial resources.

The city received a piece of art this year as a donation. It is valued at $14,000. It will be used for general government purposes. There are no eligibility requirements. The city chose not to capitalize this property.

The general government uses the storage shed that was acquired this year. It is being depreciated over 10 years using the straight-line method with no salvage value. The city uses the equipment for health and sanitation and depreciates it using the straight-line method over five years with no salvage value.

The investments are valued at $103,000 at the end of the year.

For the equipment that has been ordered but not yet received, the City Council (the highest decision-making body in the government) has voted to honor the commitment when the equipment is received.

  1. a-2. Prepare a statement of net position for governmental activities for December 31, 2017.

In: Accounting

On January 1 of the current year, Herkimer & Co. purchases, a group of 6 laptops...

On January 1 of the current year, Herkimer & Co. purchases, a group of 6 laptops for its new hires. The laptops are purchased for $2,200 each with a residual value of $400 each. Herkimer expects the laptops to be used for 3 years. At the end of the current year, Herkimer & Co. sells two laptops for $1,900 each.

Required:

Prepare the journal entries to record the purchase of the laptops, the depreciation on the laptops, and the sale of the laptops in Year 1.

In: Accounting