QUESTION 31

1. This and the next several questions will require you to complete Miasma Intelligence Technology, Inc.'s (MIT) annual balance sheet and regular income statement for year 1, which is presented below.
   
   You should write down each answer on scratch paper as you move through this part of the exam. Based on the balance sheet, income statements and the information included in the box below, determine the amount that should be in each empty box. ROUND YOUR ANSERS TO THE NEAREST DOLLAR ($).
   
   QUESTION: What is the total asset balance for year 1?
   
   

   Days in inventory		38		Income tax rate		28%
   Days in accounts payable		34		Operating expenses		19.5%
   Days in accounts receivable		41		Days in the year		365
   Gross profit		45%

   
     

   Balance Sheet

   Year 1

   Income Statement (Regular)

   Year 1

   Cash		$ 285,000		Revenue [sales]		$ 15,000,000
   Accounts receivable				Cost of sales
   Inventory				Gross profit
   Total current assets		$ 2,828,836		Operating expenses

   Property, plant and equipment

   $ 4,650,000

   Income before income taxes

   Other		$ 670,000		Income taxes
   Total assets				Net income
   Accounts payable

   Income taxes payable
   Current portion of long-term debt	$ 357,000
   Total current liabilities	$ 2,196,493

   Long-term debt		$ 1,198,500
   Total liabilities
   Common stock		$ 500,000

   Additional paid in capital

   $ 1,499,843

   Retained earnings
   Total equity

   Total liabilities and shareholders' equity

   $ 8,148,836

2. fill in blanks

Please write down a comment, what piques your curiosity in what you read below? (150-250 Words)

I have heard and know a little bit about AARP and know it is for people aged 50 and older and stands for American Association of Retired Persons. Although I have never gone to the website or researched anything about it, there is a lot of information. The first piece of information I learned was there was a link to help for grandparents who are raising their grandchildren. There is legislation that will provide information about services for families, with more focus on those impacted by the opioid crisis. I learned under the Personal Technology tab that an iPhone update will speed emergency response so that 911 callers can be tracked more quickly. Under the Home tab, there was a link with an article about inheriting a home and what you need to do next and make sure it isn’t a money pit. I also learned that the veterans suicide rate as rose over the last decade and that veterans are nearly twice as likely as nonveterans to commit suicide. I also learned what one couple who has been married for 75 years says is the success of marriage. The couple says that it is important to be nice to one another, make each other laugh, never go to bed with a grudge and always kiss each other goodnight. Lastly, I also read about how the AARP Foundation Experience Corps also helped 31,000 children to become better readers. There is a lot of useful and interesting links and information on the website.

Please write down a comment, what piques your curiosity in what you read below? (150-250 Words)

I have heard of the AARP before but I had not really done much research on it. The AARP stands for: American Association of Retired Persons and was founded in 1958 by Dr. Ethel Percy Andrus, which that is the first thing I did not know. I had never looked at this website before and did not know there was so much information on it. I did not know there were so many links and articles you could look at. When I clicked on Family and Friends, the first thing I saw was bold letters saying "New help for Grandparents raising Grandchildren" and I think something like this would be very helpful because I think today so many grandparents are raising their grandchildren. I also did not know this website has technology information. I also clicked on a tab that said 8 rules for new caregivers. 1 Start with candid conversation 2. Set your priorities 3. Build a support network and many more. When I clicked the tab "Health" there were many different links about care giving. I read that cancer comes with a 69 percent five-year survival rate, which increased from 49 percent in 1975. I also learned that AARP Foundation Experience Corps change lives of over 31,000 children by helping them become better readers.

Background: This activity is based on the results of a recent study on the safety of airplane drinking water that was conducted by the U.S. Environmental Protection Agency (EPA). A study found that out of a random sample of 316 airplanes tested, 40 had coliform bacteria in the drinking water drawn from restrooms and kitchens. As a benchmark comparison, in 2003 the EPA found that about 3.5% of the U.S. population have coliform bacteria-infected drinking water. The question of interest is whether, based on the results of this study, we can conclude that drinking water on airplanes is more contaminated than drinking water in general.

Question 1: (Remember write all answer in an MS Word doc and upload)

Let p be the proportion of contaminated drinking water in airplanes. Write down the appropriate null and alternative hypotheses.

Question 2:

Based on the collected data, is it safe to use the z-test for p in this scenario? Explain.

Use the following instructions to conduct the z-test for the population proportion:

Instructions - 2 Options

Option 1: Click on the following link to use the MS Excel hypothesis test template: hypothesis.xls
R | StatCrunch | Minitab | Excel 2007 | TI Calculator

Question 3:

Now that we have established that it is safe to use the Z-test for p for our problem, go ahead and carry out the test. Paste the output below.

Question 4:

What is the test statistic for this test? (Hint: Calculation already done by either technology option.) Interpret this value.

Question 5:

What is the P-Value? Interpret what that means, and draw your conclusions. Assume significance level of 0.05.

Write a paragraph each on how computers have affected the following:

3. Insurance claims

4.Accounting done in the medical office (e.g. pegboard system versus current methods of financial management)

5. Ethical considerations related to technology

Cyber liability insurance

Electronic commerce and cloud computing have increased exponentially in recent decades. What might be some more recent trends that may be posing greater attention by accountants and auditors for these technology subject matters. Electronic data interchange and data imaging

Which of the following represents an assumption in the PPC model ?