Rogalas foods inc, was formed in 2015 with the merger of Grouch mayer and tashamo corporation. the company reported the following rounded amounts for the year ended January 3, 2016

   debit credit

Amount receivable    1070

allowance for doubtful accounts 32

sales ( assume all on credit ) 17800

requeried

1) Assume Rogala uses 1/2 of 1 percent of sales to estimate its bad debts expense for the year. Prepare the adjusting journal entry required for the year, assuming not bad debt expense has been recorded yet.

2) Assume instead Rogala uses the aging of account receivable method and estimates that 74 of its accounts receivable will be uncollectible. prepare the adjusting journal entry required at January 3,2016 for recording bad debt expense

3) Assume instead rogala's uses the aging of account receivable method and estimates that 74 of its accounts receivable will be uncollectible. prepaid the year-end adjusting journal entry for recording bad debt expense assuming rogalas unadjusted balance in allowance for doubtful accounts at January 3,2016 was a debit balance of 35

4) if one of Rogalas costumers declared bankruptcy, what journal entry will be used to write off its 20 balance

It has been suggusted that the highest priority of retirees is travel. Thus, a study was conducted to investigate the differences in the length of stay of a trip for pre- and post-retirees. A sample of 681681 travelers were asked how long they stayed on a typical trip. The observed results of the study are found below.

With this information, construct a table of estimated expected values.

Now, with that information, determine whether the length of stay is independent of retirement using α=0.01α=0.01.

(a) Find test value χ2=χ2=

(b) Find the degrees of freedom:

(c) Find the critical value:  

(d) The final conclusion is

A. We can reject the null hypothesis that the length of stay is independent of retirement and accept the alternative hypothesis that the two are dependent.
B. There is not sufficient evidence to reject the null hypothesis that the length of stay is independent of retirement.

68 56 76 75 62 81 72 69 91 84 49 75 69 59 70 53 65 78 71 87 71 74 69 65 64

You have been charged to conduct a statistical test in SPSS to verify the claim that the‘average weekly student expenses’ is different than 74 dollars using an alpha level of 5%. What is the appropriate test that is applicable in this case. Explain your reasoning. State the null and alternate hypotheses in this case using proper statistical notations. List one assumption that you are making about the distribution. Insert a copy of the summary table of descriptive statistics generated in SPSS. Insert a copy of the table for the statistical test you conducted in SPSS. Drawing on information from the tables in (e) and/or (f) show how they relate to t-statistic as obtained in SPSS. What is/are the critical value(s) of the test statistic at the 5% significance level. What can you conclude about the claim based on the results generated from the statistical test? Make sure to support your conclusion by referencing the appropriate statistics from the test. Compute the 90% confidence interval for the average weekly expenses. Compute the Cohen’s d effect size.

Question 2

Hydropure Ltd commenced operations at the beginning of the current year. One of the company’s products, an alkaline antioxidant water filter, sells for $299 per unit. Information related to the current year’s activities are as follows:

$

Variable costs per unit:

Direct materials 40

Direct labour   74

Manufacturing overhead 96

Annual fixed costs:

Manufacturing overhead 700,000   

Selling and administrative 880,000

Production and sales activity:

Production (units) 25,000
Sales (units) 20,000

Hydropure Ltd carries its finished goods inventory at the average unit cost of production. There was no work in process at the yearend.

Required:

(a) Determine the cost of the yearend finished goods inventory.

(b) Calculate Hydropure Ltd’s net profit for the current year. Ignore taxation.

(c) If the next year’s production decreases to 24,000 units and the general cost behaviour and patterns do not change, what is the likely effect on:

(i) Direct labour cost of $74 per unit? Explain why.

(ii) Fixed manufacturing overhead cost of $700,000? Explain why.

(iii) Fixed selling and administrative cost of $880,000? Explain why.

(iv) Average unit cost of production? Explain why.

Qantas – strategies for current and future success

The Qantas Group maintained its strong position in the Australian domestic market in 2016/17. Through a dual brand strategy encompassing both the Qantas brand and the Jetstar brand, Qantas continued to service the premium leisure and business market segments, while Jetstar provided low fares to millions of customers in the price-sensitive market. Between them, these two airlines have approximately 90 per cent of the domestic profit pool from two-thirds capacity share.

As the Australian economy continues to transition from the mining boom, Qantas redirected some of their domestic capacity to service the growing tourism markets on the east coast of Australia. Qantas Domestic maintained a clear lead as the airline of choice in the corporate travel market, and continues to grow in the small business and premium leisure markets. Their extensive network, on-time performance, and service earned record customer satisfaction levels, are their major internal strengths. Looking ahead, Qantas will berolling out free, fast, inflight Wi-Fi on all domestic A330 and 737 aircraft, which will further strengthen their hold on the domestic market.

On the international front, they have continued to build alliances with key partner airlines, including Emirates, China Eastern and American Airlines. They have also improved their cost base, increased aircraft utilisation and redesigned our network to high-growth market s, largely in Asia.

During 2016/17, Qantas obtained the first Boeing 787-9 Dreamliner to their fleet, to replace older Boeing 747 aircraft. The Dreamliner provides unprecedented flying range, substantial cost efficiency and unrivalled customer experience, offering a sustainable competitive advantage. It also allows them to use Australia’s long distance from major international tourist hubs to advantage. A prime example is the new Perth–London route using the Dreamliner. The 17-hour flight will be the first regular, non-stop passenger service to link Australia with Europe when it commences in March 2018.

Asia remains the world’s fastest growing aviation market, and is expected to be bigger than the North America and Europe markets combined by 2035. By 2030, it is estimated that two-thirds of the world’s middle class will be in the Asia-Pacific region. Qantas believes they are well placed to capitalise on this growth. More than 50 per cent of the Qantas Group’s international capacity is currently focused on Asia, with daily services into the major business hubs of Singapore, Shanghai, Beijing, Hong Kong and Tokyo.

This year, Qantas launched Sydney–Beijing (China) and Melbourne–Narita (Japan) and increased capacity to Singapore, Hong Kong, Indonesia and the Philippines to meet growing demand. Jetstar launched services to Ho Chi Minh City (Vietnam) from Melbourne and Sydney and will start services between Melbourne and the Chinese city of Zhengzhou in 2017/18.

Focusing on Greater China, they have a three-pronged strategy to take advantage of the country’s huge growth:

1. Serve the key business hubs: Hong Kong, Shanghai and Beijing (with a combined population of 53 million people).

2. Further strengthen partnerships with China Eastern and China Southern, which provide the Group with 22 destinations in China.

3. Funnel inbound Chinese tourists — who take an average 2–3 domestic flights when visiting Australia — onto the Group’s domestic network. Jetstar-branded airlines based in Asia now have 54 aircraft in the region. This growing network — which remained profitable in 2017 — gives the Qantas Group a strong presence in key markets.

Jetstar Japan, which has entered its sixth year of operation and has grown to 21 aircraft, was ranked 58^th in the top 100 most recognised brands in that country. During 2016/17, Jetstar Japan launched flights from Tokyo (Japan) to Shanghai (China). Jetstar Asia continues to evolve its network out of Singapore and Jetstar Pacific has grown to tap into the increasing travel market both in and out of Vietnam.

Qantas Loyalty continues to provide a diversified, stable earnings stream for the Group, while strengthening loyalty to the Qantas brand. Now in its 30th year, Qantas Loyalty has diversified and expanded into new areas, bringing members fresh opportunities to earn Qantas Points. This includes travel, life and health insurance (Qantas Assure) and a travel money card that has captured 17 per cent of the market in four years (Qantas Cash).

The core Frequent Flyer program grew its membership by almost 4 per cent to 11.8 million, helped by the addition of 22 new partners (including Airbnb, Jaguar Land Rover and Samsung) as well as a renewed partnership with supermarket chain Woolworths. At the same time, Qantas Loyalty is taking advantage of business opportunities in other segments to grow revenue through a pipeline of new ventures. The Qantas Business Rewards Program strengthened their presence in the small business market. Red Planet and an equity stake in Data Republic are examples of how Qantas continues to invest in big data services. Looking ahead, Qantas Loyalty will continue to innovate and diversify to achieve annual growth of 7–10 per cent through to financial year 2022.

In June 2017, the Qantas Premier credit card was launched, which offers a high rate of points earn as well as a number of travel benefits. The credit card provides our business with another revenue stream and our customers with more choice and more ways to earn points. Around 35 per cent of credit card spending in Australia currently earns Qantas points

The introduction of free, fast inflight Wi-Fi started midway through 2016/17 with a trial on a Boeing 737. A major upgrade to the Qantas App allows our customers to keep track of their Qantas Frequent Flyer benefits, with a personalised news feed providing additional offers and news features. We launched a Facebook Messenger bot called Qantas Concierge to give customers 24/7 personalised travel inspiration, along with faster responses and more relevant information. Almost 90 per cent of customers rated their Wi-Fi experience as positive, with reliability of the service at 98 per cent. The rollout will ramp up during 2017/18 with around 80 domestic aircraft equipped by the end of calendar 2018. Our intention is to extend the service to our regional and international fleets as Wi-Fi technology improves.

Question 3 ​

3a) Apply the PESTEL model to the Qantas case, identifying any 5 external factors, and indicating which may be regarded as Opportunities and which as Threats. [5 marks]

Answer Question 1, each part of the question has a corresponding point value seen in ()

1A company that manufactures military hats reports that the mean head circumference of all men in the military is 22.05 inches with a standard deviation of 0.68 inches. Suppose the distribution of head circumference is approximately normal, and one man in the military is selected at random.

a.Find the probability that the man’s head circumference is less than 21 inches (2 pts)

b.Find the probability that the man’s head circumference is between 22 and 23 inches (5 pts)

c.If a man in the military has a head circumference greater than 24 inches, a surcharge is applied to the cost of the hat. What is the probability that a surcharge will be applied? (3pts)

d.Find a symmetric interval about the mean such that P= 0.9500 of all measurements lie in this interval (7 pts).

1B The NHANES report, 2005-2006, What We Eat in America, studies the nutrient intakes from food for individuals over 2 years old. For women age 20 and over, the mean amount of selenium consumed from food per day was 92.6 μg. Assume the standard deviation is 18.4 μg and the amount of selenium consumed per day is normally distributed. Suppose a woman over age 20 is randomly selected.

a.Find the probability that her daily intake of selenium from food will be at most 100 μg. (2pts)

b.Find the probability that her daily intake of selenium from food will be between 60 and 75 μg. (5pts).

c.Suppose the FDA has established 90 μg of selenium from food as the minimum daily intake. Find the probability that the woman randomly selected will meet this minimum. (3pts)

d.Find a valuexsuch that P= 0.7500of all women in this age group have a daily intake of selenium from food of at mostxgrams (2pts)

Plant growth provides food for herbivores that in turn can impact the productivity of the ecosystems that they graze. Herbivores remove green leaves and therefore lower potential whole-ecosystem photosynthesis by reducing the leaf area index. However herbivores may also reduce the amount of shading in the lower plant canopy and fertilize soils with their feces and urine, increasing the amount of light and nutrients for the remaining uneaten plants. Removal of leaves by herbivores may also warm up soils, leading to higher respiration by the plants and soil heterotrophs. Thus the relationship between long-term productivity and grazing is difficult to predict. Further complicating the relationship is the influence of weather, particularly precipitation and its impact on soil water availability. David Augustine and Sam McNaughton (2006) studied the influence of grazing on aboveground net primary productivity (NPP) in Kenyan rangeland ecosystems differing in nutrient availability.The influence of herbivore grazing on aboveground NPP was evaluated using treatment plots where herbivores were excluded (no grazing) and control plots where herbivores grazed freely (grazing). Rainfall at the research site is characteristic of seasonal tropical savannas, with pronounced dry and wet seasons.

Question 3. What do the results shown in Table 3 indicate about the influence of grazing on aboveground NPP in a year with above average rainfall? (Note that the experimental site was shifted this year, contributing to some between year differences in NPP.

Question 4. After viewing the above tables, what factors might explain the influence of variation in rainfall and nutrients on the effect of herbivores on NPP?

308 Chapter 11 CASE STUDYCase stUDYCollege and professional sports are economy boosters for their host cities. The stream of revenue to the local economy generated by excited fans comes from the sale of tickets, hotel room rentals, car rentals, restaurant meals served, gasoline sales, park-ing fees, and vendor sales. The sales become even greater when a team is winning.Cities such as Lincoln, Nebraska; Columbus, Ohio; Tallahassee, Florida; and Baton Rouge, Louisiana count on the revenue generated by sell-out crowds during the college football season. Stadiums that hold from 82,000 to 102,000 fans provide an eco-nomic windfall for the college com-munities where they are located.Some fans of professional sports teams, such as the Chicago Cubs and Green Bay Packers, are loyal no mat-ter how well their team is performing. These faithful fans provide a steady flow of revenue to the sports program and surrounding communities.College World Series Wars?Cities that host major sporting events understand the financial benefits. Omaha, Nebraska, appreciates the millions of dollars poured into the city during the annual College World Series. Zesto’s, a popular fast-food restaurant, has truckloads of food rolling in each day to meet the demands of customers from all over the United States.The event has been voted the Best Annual Local Event and ranks as the third-most important state tourist attraction, according to a survey conducted by Omaha Magazine. The revenue from this two-week event has attracted the attention of other cities, such as Oklahoma City, that would like the opportunity to host the event in the future. Economic experts estimate that the College World Series generates more than $40 million for the Omaha economy. It is no wonder that other cities would like to host thisevent.Omaha tore down Rosenblatt Stadium, the former home of the College World Series, to build the new $131-million TD Ameritrade Park Omaha that has 24,505 seats. Omaha must continue to demonstrate top-notch hospitality so that the College World Series event planners continue to choose Omaha as its host city.Think Critically

1. Why is it important for Omaha to continue hosting the College World Series? Consider both financial and nonfinancial benefits.

2. What are some of the greatest sources of revenue for cities that are home to popular college and professional sports teams?

3. How can hosting a major event like the College World Series help a city develop a national image? Explain your answer.

4. List ten good food items for ven-dors to sell at the College World Series

Identifying a Contract

Consider each of the following scenarios:

Required:

1. Determine if a contract exists for each of the scenarios.

2. If it is determined that a contract exists but the seller believes it is probable that it will not collect the expected consideration, how does this affect the seller's ability to recognize revenue?

If it is probable that the seller will not collect the expected consideration in exchange for goods or services that it has promised to transfer to the customer, any amounts that the seller does not expect to collect will the transaction price. This adjusted transaction price will be the starting point to apply the remaining steps of the revenue recognition model.

Check My Work1 more Check My Work uses remaining.

6. What is a tariff and what is a quota in international trade?

(a) In Tessland, suppose the domestic demand curve for sugar is given by: P = 16 - 0.05Q and the domestic supply curve is given by: P = 4 + 0.05Q:

i. In the absence of any trade, what is the equilibrium price and quantity of sugar? How much are the consumer surplus and domestic producer surplus?

ii. Suppose the equilibrium price of sugar in the world market is P = 6. How much are the new consumer surplus and new domestic producer surplus?

iii. Suppose Tessland is government imposes tariff $2 per unit (a ton) of sugar.

A. What will be the new effective price in the domestic market?

B. As a result, how much are the change in consumer surplus and change in domestic producer surplus compared to (ii)?

C. How is the loss in consumer surplus redistributed between domestic producer surplus, foreign producer surplus, government is revenue resulting from tariff and dead-weight loss to the society?

***PLEASE ONLY ANSWER FROM HERE (iv) AND BELOW. THANK YOU SO MUCH***

iv. Suppose, instead of imposing the tariff in (iii), Tessland is government imposes a quota restriction of 120 units of sugar.

A. What will be the new effective price in the domestic market?

B. As a result, how much are the change in consumer surplus and domestic producer surplus compared to (ii)?

C. How is the loss in consumer surplus redistributed between domestic producer surplus, foreign producer surplus, government is revenue resulting from quota and dead-weight loss to the society?

(b) Distinguish between a tariff and a quota. In what ways are they similar and in what ways are they different?