1. In California, medical care costs for back injuries are 43 percent higher when part of a workers’ compensation claim than when part of a group medical insurance plan. Critics of workers’ compensation claim that this difference can be attributed to abuse of the system by both injured employees and their physicians. Proponents of workers’ compensation argue that the higher costs indicate exactly the opposite: that is, under workers’ compensation, injured employees are receiving more and better (hence more costly) medical care. They claim that group medical plans are shortchanging employees by allowing insurance companies to make medical decisions. What is your opinion?

2. Following an order from his supervisor, a carpenter working for Jones Construction Company removed all the guardrails from stairwell openings, floor openings, and open-sided stairs. Uncomfortable with this action, the carpenter telephoned his union representative, who, in turn, called OSHA. Jones Construction Company was fined $15,000 for willful violations. Jones Construction Company, in turn, fired the carpenter. Was the firing lawful (under OSHA standards)? Was the action of the carpenter appropriate (under OSHA standards)?

Markus Company’s common stock sold for $2.00 per share at the end of this year. The company paid a common stock dividend of $0.42 per share this year. It also provided the following data excerpts from this year’s financial statements:     

Find:

accounts receivable turnover

average collection period

inventory turnover

average sale period

operating period

total asset turnover

times interest earned ratio

Goal: Display tactful behavior when communicating with providers when communicating with medical providers regarding third party requirements. Show sensitivity when communicating with patients regarding third party requirements. Materials: Prior authorization form, patient medical chart with planned procedure and CPT code. Diagnosis for proof of medical necessity. Scenario: Patients preauthorization was denied because a second opinion is required. You must explain to the provider new policies from the insurance company requires a second opinion before they will approve the procedure. You will explain to the patient the new policy of their insurance carrier requiring a second opinion for corroboration of medical necessity before the procedure will be approved. Method: Step Number Procedure Points Possible Points Earned 1. Tactfully explain to the providers the insurance carrier’s new policy requiring a corroborating second opinion prior to approval for the procedure. 50 2. Demonstrate sensitivity explaining to the patient the necessity of a second opinion to corroborate the medical necessity of the procedure prior to approval

1. Describe in general terms how future appreciation of the euro will likely affect the value (from the parent’s perspective) of a project established in Germany today by a U.S.-based MNC. Will the sensitivity of the project value be affected by the percentage of earnings remitted to the parent each year?

(4 pts) Huskie Industries, a U.S.‑based MNC, considers purchasing a small manufacturing company in France that sells products only within France. Huskie has no other existing business in France and no cash flows in euros. Would the proposed acquisition likely be more feasible if the euro is expected to appreciate or depreciate over the long run? Explain.

2. (4 pts) Flagstaff Corp. is a U.S.‑based firm with a subsidiary in Mexico. It plans to reinvest its earnings in Mexican government securities for the next 10 years since the inter­est rate earned on these securities is so high. Then, after 10 years, it will remit all accumulated earnings to the United States. What is a drawback of using this approach? (Assume the securities have no default or interest rate risk.

As a long-term investment, Painters' Equipment Company purchased 20% of AMC Supplies Inc.'s 480,000 shares for $560,000 at the beginning of the fiscal year of both companies. On the purchase date, the fair value and book value of AMC’s net assets were equal. During the year, AMC earned net income of $330,000 and distributed cash dividends of 25 cents per share. At year-end, the fair value of the shares is $593,000.

2. Assume significant influence was acquired. Prepare the appropriate journal entries from the purchase through the end of the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

• Record the purchase of AMC Supplies shares for $560,000 as a long-term investment.
• Record Painters' Equipment's share of AMC Supplies' $330,000 net income.
• Record the cash dividend of 25 cents per share.
• Record any necessary year-end adjusting journal entry when the fair value of the shares held are $593,000 at year-end.

The following information pertains to a weekly payroll of Texera Tile Company:

a. The total wages earned by employees are $17,340.
b. The state unemployment insurance contribution rate is 3.5%.
c. The entire amount of wages is taxable under FICA, FUTA, and SUTA.
d. The amount withheld from the employees' wages for federal income taxes is $1,850; for state income taxes, $373.10; and for group insurance, $189.00.

Payment of Wages and the Payroll Taxes

Journalize the payment of wages, and record the payroll taxes for this payroll.

If an amount box does not require an entry, leave it blank or enter "0". Round your answers to the nearest cent.

For this part of the project, you’ll collect data on various measure of confidence from the FRED website.

University of Michigan: Consumer Sentiment (UMCSENT), last year

S&P 500 (SP500), last year

St. Louis Fed Financial Stress Index (STLFSI), last year

1. In your own words, briefly describe what each of the three indices measure. Why are these considered an indicator of the economy’s “health”?

2. How have these indices changed over the past year? Do you think consumers and firms feel optimistic or pessimistic about the economy?

A task force is studying the need for an additional bicycle path on a large university campus. It is assumed that the distribution of bicyclists using a path between classes is normally distributed with a population variance of about 64. A random sample of 7 existing bicycle paths showed that the sample mean number of bicyclists using a path between classes was 33.

A group of interested students took its own sample of 5 different bicycle paths, and computed a confidence interval for the population mean that ranged from (16.0 , 25.173 ). What is the probability content (or the level of confidence) of this interval?