4) You are the audit manager completing planning for your client Stark Industries
Incorporated (Stark). Stark is a market leader in the technology industry aimed at designing
and developing robots and robotics assistance for the home environment.
Stark formed in 1998 and after a number of loss-making years is now turning a substantial
profit in a very competitive market. The company spends considerable amounts on research
and development and prides itself on the success rate it has with new robotic designs.
Stark owns a number of very large warehouses in which inventory of small and large
robotics and electronic parts are held, along with vast stores of advanced computer technology. The robots and robotic parts are manufactured in another nearby security
warehouse.
Products are then sold to specialized retailers of home computer and electronics, often on
a consignment basis. Stark also has three customers for whom they design and manufacture
large custom made robotics processes for these customers own internal uses. These are
major contracts which often take nine or ten months to construct and worth millions of
dollars. Stark has adopted a percentage completion method of accounting for these
contracts.
For the last six months, Stark has also been making sales of their major product lines to a
few overseas customers. The CEO believes this could be a real growth area for the company
in the near future.
Stark has also recently implemented a new top-of-the-range computer inventory system to
help them track inventory stocks and individual product line performance in all divisions.
The new system was designed and developed by an external computer consultant company
and so far, has been working well with no major errors noted.
Required:
a) List two (2) accounts as a result of your preliminary planning where you would
concentrate audit effort for Stark.
b) For each account:
? State the most important audit assertion and explain why you chose the
particular assertion, and
? Recommend an audit procedure to perform, in order to gather audit
evidence for that assertion.

You are given the sample mean and the population standard deviation. Use this information to construct the​ 90% and​ 95% confidence intervals for the population mean. Interpret the results and compare the widths of the confidence intervals. If​ convenient, use technology to construct the confidence intervals. A random sample of 60 home theater systems has a mean price of ​$118.00. Assume the population standard deviation is ​$19.60. Construct a​ 90% confidence interval for the population mean.

The​ 90% confidence interval is ​( nothing​, nothing​). ​(Round to two decimal places as​ needed.)

Construct a​ 95% confidence interval for the population mean.

The​ 95% confidence interval is ​( nothing​, nothing​). ​(Round to two decimal places as​ needed.)

Interpret the results. Choose the correct answer below

A. With​ 90% confidence, it can be said that the population mean price lies in the first interval. With​ 95% confidence, it can be said that the population mean price lies in the second interval. The​ 95% confidence interval is wider than the​ 90%.

B. With​ 90% confidence, it can be said that the sample mean price lies in the first interval. With​ 95% confidence, it can be said that the sample mean price lies in the second interval. The​ 95% confidence interval is wider than the​ 90%.

C. With​ 90% confidence, it can be said that the population mean price lies in the first interval. With​ 95% confidence, it can be said that the population mean price lies in the second interval. The​ 95% confidence interval is narrower than the​ 90%.

Do people eat more of a snack food when the food is labeled as low-fat? Do people pay attention to serving size? The answer may depend on whether the snack food is labelled low-fat and whether the label includes serving-size information. A study investigated these two questions using staff, grad students, and undergrad students at a large university as subjects.   
Subjects were asked to evaluate a pilot episode for an upcoming TV show at a theater on campus and were given a bag of granola from a respected campus restaurant. They were told to enjoy as much or as little of the granola as they wanted. Each granola bag had two labels: Twenty subjects were assigned to each treatment, and their granola bags were weighed at the end of the session to determine how much granola was eaten.

a) Is the study an observational study or an experiment? Specifically in this study (do not give general definitions),

what are the b) experimental units (abbreviated EU, also called individuals or subjects)

c) response variable and whether it is quantitative or categorical

d) How many factors were there and what were they?

e) How many treatments were there and what were they?

f) How many experimental units were in the study?

Microeconomics

Marginal Productivity and the Law of Diminishing Marginal Returns

You have recently been hired to manage a movie theater. You observe that there are many customers waiting around the concession area to buy snacks. You also observe that there is only one clerk working the counter. This employee has to do everything from get the popcorn going, stocking condiments and supplies, changing the soda canister when the syrup runs out for fountain drinks, helping customers, fill orders, collect cash, and of course, smile at the customers who have waited lengthy periods of time.

You obtain a report that shows the average sales per weekend night are $500 with one clerk. You decide to hire another clerk for the shift and sales increase to $1,000. You add one more clerk, and sales increase to $1,700. Again, you add another clerk, and sales increase to $1,900. Finally you add one more clerk, and sales increase to $2,000.

1.         Calculate the marginal product associated with each clerk. Draw a table to do this.

2.         At what point did the law of diminishing marginal return become evident?

3.         Why did the marginal product increase as more clerks were added initially?

4.         Why did the marginal product start to diminish?

Can you please use EXCEL to analyze this question?

Project Background:

You are a staff engineer for an industrial company involved in the distribution of electrical parts. The firm currently has three warehouses throughout the country. The firm is considering the development of a fourth warehouse, somewhere in this area. The purpose of this is to reduce costs of transporting warehoused goods to customers. You are charged with doing a financial analysis of the proposed facility over a 10 year planning horizon.

The new facility is expected to reduce costs by about $1,200,000 per year due to lower transportation costs. This savings is expected to increase by 3% per year. (Annually compounded.)

The new facility will have land cost of $500,000 and construction cost of $4,800,000. There is machinery such as shelving and fork lift trucks with a cost of $1,200,000. These have a MACRS 7-year schedule. The machinery will have a salvage value of 20% of acquisition cost at the end of the 10 year period. (Do not inflate this value.) All capital costs are incurred on the first day of year 1. (This enables them to be included in year 1 depreciation. From a cash flow point of view, this is nearly identical to the last day of year 0.) The facility will have the following operating and maintenance costs.

The firm borrows 80% of the project cost at 6% per year compounded quarterly for a term of 10 years. The remainder is from corporate funds. Working capital requirement is $25,000 and increases by 5% per year which is fully recovered at the end of the 10 years.

At the end of the 10 year period, the land can be sold for $1,000,000 and the residual (salvage) value of the warehouse is $3,600,000 in today’s dollars. These values (land and warehouse) are inflates at 2% per year. The firm’s minimum acceptable after tax rate of return before inflation is 15%. Expected general inflation is 2.5%

Problem Statement:

               Compute the after tax rate of return for this facility and the present worth discounted at the MARR. Make a recommendation about whether the project should proceed.

Assumptions:

Federal income tax rate of 21%

Land improvements depreciate annually at (1/39) of the acquisition cost.

Owen Company manufactures bicycles and tricycles. For both products, materials are added at the beginning of the production process, and conversion costs are incurred uniformly. Owen Company uses the FIFO method to compute equivalent units. Production and cost data for the month of March are as follows.

Calculate the equivalent units of production for materials and conversion costs for both the bicycles and the tricycles. (Round answers to 0 decimal places, e.g. 2,520.)

Calculate the unit costs of production for materials and conversion costs for both the bicycles and the tricycles. (Round unit costs to 3 decimal places, e.g. 25.215.)

Calculate the assignment of costs to units transferred out and in process at the end of the accounting period for both the bicycles and the tricycles. (Round answers to 0 decimal places, e.g. 2,520.)

Bicycles

Tricycles

Prepare a production cost report for the month of March for the bicycles only. (Round unit costs to 3 decimal places, e.g. 25.123 and all other answers to 0 decimal places, e.g. 2,520.)

The annual wages of American farm laborers in 1926 were normally distributed with a mean of $586 and a standard deviation of $97. In 1926, a) What percentage of American farm laborers had an annual wage between $500 and $700? b) What percentage of American farm laborers had an annual wage above $400? c) Find the 75 th Percentile of the farm laborers’ annual wage

please be specific

A programmer plans to develop a new software system. In planning for the operating system that he will? use, he needs to estimate the percentage of computers that use a new operating system. How many computers must be surveyed in order to be 90?% confident that his estimate is in error by no more than four percentage points? B) Assume that a recent survey suggests that about 91?% of computers use a new operating system