Classifications on Balance Sheet

The current balance sheet of J. J. Arvesen Company contains the following major sections:

1. Current assets
2. Long-term investments
3. Property, plant, and equipment
4. Intangible assets
5. Other assets
6. Current liabilities
7. Long-term liabilities
8. Contributed capital
9. Retained earnings
10. Accumulated other comprehensive income

The following is a list of accounts in random order. Using the letters A through J, indicate in which section each account would most likely be classified. If an account does not belong under one of the sections listed, select "Not under any of the choices" from the classification drop down box. For all accounts, indicate if the account is a contra account or an account that would normally be deducted on the balance sheet by selecting "yes" from the second drop down box, otherwise select "no".

ABC company is considering producing a new range of smartphones that will require it to build a new factory. The project itself will go for 20 years. Feasibility studies have been done on the factory which cost $5 million. The studies have found the following:

1. The factory will cost $25 million and will have a useful life of 25 years.

2. The land where the factory will go is currently used as a carpark for workers and it is assumed that the company will have to pay $50000 per year for their workers to park in a nearby carpark.

3. The factory will be depreciated on a straight line basis and will have a salvage value of $0 but it is believed that most of it can be sold for scrap and parts after 20 years (at the end of the project) for $500000.

4. Due to the nature of the business they are in, they will have to perform some environmental tests to make sure that some of the chemicals they are using are not entering the ground water around the factory. These tests will be performed every 5 years and initially cost $625000 (in five years) and then increase at the rate of inflation which is predicted to be 2.5% per year.

5. Through the building of this factory and the selling of the phones it produces, it’s revenue will increase by $5 million in year 1 and then by 7% per year for 10 years and then decrease by 2% until the end of the project.

6. The extra costs that the company accrues per year due to the project are $400000 for labour, $45000 for overhead like power and water bills and marketing costs for the new line of phones will be $500000 per year but will decrease by 10% per year as the phone gains greater penetration. It is also predicted that labour costs will increase by 2% per year due to inflation.

7. The company’s current cost of capital is 5% per year.

8. The tax rate is 30%.

9. The project requires an initial investment in working capital of $1000000 and will be increased by 5% for the first 5 years of the project and then does not change until the end of the project. It is returned in year 20Use the above information to answer the following.

Use the above information to answer the following.

A. Calculate the free cash flows that come from this project for the 20 years it is operational.

B. Calculate the NPV, IRR & payback period of the project. Should they go ahead with the project?

C. Calculate the break-even point for the following variables:

1. The overhead.
2. The initial yearly revenue.
3. The initial labour cost.
4. The initial advertising cost.

Scenario/Summary

A confidence interval is a defined range of values such that there is a specified probability that the value of a parameter lies within the interval.

pick a topic, complete research and provide a write-up that includes calculations. Round all values to two decimal places when appropriate.

Deliverables

1. Choose a Topic where you can gather at least 50 pieces of data.

Examples of Topics

1. The Golden Gate Warriors Points Per Game in 2016 (use the points scored in the first 50 games).
2. High School Graduation Rates by State (use the graduation rates for all 50 states)
3. Average Tuition Rates in the US (You have to find the tuition rates of 50 college/universities).
4. The prices of a hotel room per night in a major city (You have to find the price of the same night of hotels in one city).
5. Weights of 50 babies at birth.

2. Write at least a 1-Page Report

Open a Word Document

1. Introduction--Provide a description of your topic and cite where you found your data.
2. Sample Data—Include a 5x10 table including your 50 values in your report. You must provide ALL of your sample data.
3. Problem Computations—For the topic you chose, you must answer the following:

• Determine the mean and standard deviation of your sample.
• Find the 80%, 95%, and 99% confidence intervals.
• Make sure to list the margin of error for the 80%, 95%, and 99% confidence interval.
• Create your own confidence interval (you cannot use 80%, 95%, and 99%) and make sure to show your work. Make sure to list the margin of error.

4. Problem Analysis—Write a half-page reflection.

• What trend do you see takes place to the confidence interval as the confidence level rises? Explain mathematically why that takes place.
• Provide a sentence for each confidence interval created in part c) which explains what the confidence interval means in context of topic of your project.
• Explain how Part I of the project has helped you understand confidence intervals better?
• How did this project help you understand statistics better?

The following table shows age distribution and location of a random sample of 166 buffalo in a national park. Age Lamar District Nez Perce District Firehole District Row Total Calf 14 12 15 41 Yearling 13 11 9 33 Adult 35 30 27 92 Column Total 62 53 51 166 Use a chi-square test to determine if age distribution and location are independent at the 0.05 level of significance. (a) What is the level of significance? State the null and alternate hypotheses. H0: Age distribution and location are not independent. H1: Age distribution and location are not independent. H0: Age distribution and location are independent. H1: Age distribution and location are independent. H0: Age distribution and location are independent. H1: Age distribution and location are not independent. H0: Age distribution and location are not independent. H1: Age distribution and location are independent. (b) Find the value of the chi-square statistic for the sample. (Round the expected frequencies to at least three decimal places. Round the test statistic to three decimal places.) Are all the expected frequencies greater than 5? Yes No What sampling distribution will you use? Student's t chi-square binomial uniform normal What are the degrees of freedom? (c) Find or estimate the P-value of the sample test statistic. (Round your answer to three decimal places.) p-value > 0.100 0.050 < p-value < 0.100 0.025 < p-value < 0.050 0.010 < p-value < 0.025 0.005 < p-value < 0.010 p-value < 0.005 (d) Based on your answers in parts (a) to (c), will you reject or fail to reject the null hypothesis of independence? Since the P-value > α, we fail to reject the null hypothesis. Since the P-value > α, we reject the null hypothesis. Since the P-value ≤ α, we reject the null hypothesis. Since the P-value ≤ α, we fail to reject the null hypothesis. (e) Interpret your conclusion in the context of the application. At the 5% level of significance, there is sufficient evidence to conclude that age distribution and location are not independent. At the 5% level of significance, there is insufficient evidence to conclude that age distribution and location are not independent.

You are a clinician in the psychiatric ward of the local hospital. A patient is refusing medication. Before medicating against his will, the likely next step, the actiing psychiatrist has asked that a therapist meet with the individual in a last ditch effort for them to take the medication voluntarily. You are that therapist and you are given the brief note found below before entering the room to speak with the patient. How might you address Mr. Johns?  

_______________________

Mr. Johns is a 34-year-old man diagnosed with paranoid schizophrenia. He was first diagnosed at age 19, and has been hospitalized several times over the past 15 years. In between hospitalizations, he has lived with his parents, who have supported him financially and provided for his basic needs. While he recognizes that he is unable to work and care for himself, he also feels that his parents are overly controlling and he desperately wants to be able to live independently.

Currently, Mr. Johns is enraged at being hospitalized against his will. As he sees it, he decided to move out of his parents’ home because his mother was trying to give him drugs in his food that would make him follow her wishes. In addition, he self-reported that whenever he fell asleep at home, his father would come into his room and read his mind, using his thoughts against him the next day. Naturally, he has been unable to sleep or eat under these conditions, and so decided to move out on his own. However, when his father saw him walking in the street, he began trying to force him into his car and bring him back home. When he refused to return, he called the police and had him admitted to the hospital.

Mr. Johns is adamant in his opinion that he has the right to decide how to live his life. If he wants to live on the streets or sleep on park benches, he says that is his right. He has been refusing to take medication because he knows that it only poisons his mind and keeps him from thinking clearly.

1. An impartial judge of a local garden competition collects scores from two groups of judges on what he suspects to be the number one garden. He finds the first group (n = 5) has a mean score of 76. The second group (n = 3) has a mean score of 91. So that he may declare the final score, what is the weighted mean of these two groups?

2. A social scientist measures the number of minutes (per day) that a small hypothetical population of college students spends online. Student Score Student Score A 94 F 96 B 88 G 25 C 74 H 61 D 88 I 82 E 98 J 98

(a) What is the range of data in this population? min

(b) What is the IQR of data in this population? min

(c) What is the SIQR of data in this population? min

(d) What is the population variance?

(e) What is the population standard deviation? (Round your answer to two decimal places.) min

3. A sociologist records the annual household income (in thousands of dollars) among a sample of families living in a high-crime neighborhood. Locate the lower, median, and upper quartiles for the times listed below. Hint: First arrange the data in numerical order.

a) lower quartile thousand dollars

b) median thousand dollars

c) upper quartile thousand dollars

42 22 46 33 37 32 37 47 51 25

4. A theme park owner records the number of times the same kids from two separate age groups ride the newest attraction. Age 13–16 Time Age 17–21 Time 1 10 1 4 2 9 2 3 3 3 3 7 4 1 4 4 5 10 5 8 6 3 6 1 7 8 7 2 8 9 8 5 9 6 9 4 10 5 10 2 Using the computational formula, for the age group of 13–16? (Round your answers for variance and standard deviation to two decimal places.) what is the

a) SS

b) sample variance

c) standard deviation

You are a systems analyst contracted by Earth Friendly Babies, a mail-order company that sells earth friendly baby products. You and your consulting firm have recently completed development of a new system for managing orders and inventory for Earth Friendly Babies. System architecture already has been decided, and you are ready to embark upon installation, evaluation, and training for the new system. Earth Friendly Babies has grown from an at-home business set up by a stay-at-home mom to a small mail-order company that sends out catalogs to 10 states, employs 5 people in addition to the business owner, and has office and warehouse space in an office park designed to encourage small businesses. The business has relied upon manual data collection methods for taking orders, billing, and managing inventory. The new IS will provide the support necessary for the company to expand to all 50 states with their mail-order campaign. None of the employees has worked with an IS system similar to the one designed. All employees need to be trained in all aspects of the new system, because the company at this point relies on its employees to work where needed, rather than at one job only. You need to provide training for inventory/warehouse and for order support. Each individual will require nine hours total of training, broken down into three three-hour modules, and two people can be released from work at a time for training.

1. Design two training schedules for the new system — one which is based upon two

people released from work at a time, and one which takes advantage of the small number of employees that need to be trained.

2. Develop a training budget assuming that the trainer is paid $140 per hour, that 8 hours are needed to develop training materials, and that the 5 workers earn $18

per hour including overhead. Present the alternatives in memo form to the business owner, and identify any additional information that should be taken into

account when choosing between the two training schedules.

3. Prepare a memo detailing which changeover method you are recommending, and why.

4. Should Earth Friendly Babies perform a post-implementation evaluation? If your answer is no, justify. If yes, who should perform it?

1. A profit-maximizing, monopolistically competitive car wash washes 40 cars per day, and its total cost $200 and currently makes an economic profit of $280. In the long run, everything else equal, the
   a.   car wash will wash less than 40 cars per day.
   b.   car wash will charge more than $12 per wash.
   c.   car wash will need to hire new workers to wash more cars.
   d.   car wash will wash more than 50 cars per day.

2. For a competitive firm, if at least some portion of its short-run average cost curve lies below the price of the product, we can conclude that the firm
   a.  is earning zero economic profits.
   b.  is incurring short-run losses.
   c.  is going to shut down.
   d.  is earning a profit at the profit maximizing output level.

3. If stock exchanges did not exist,
   a.   the economy’s resources could be more efficiently allocated among firms.
   b.   the risk to the investor of buying stocks would be much greater.
   c.   investment banks would no longer play a role in handling stocks.
   d.   there would be no organized way for firms to issue stock.

4. A “specialist” is a
   a.   stockbroker who specializes in the “third market.”
   b.   person who works on the floor of the New York Stock Exchange and specializes in certain stocks.
   c.   stockholder who finds buyers and sellers for specific stocks, but also operates outside of specific stock markets.
   d.   stockbroker who operates only in a particular regional stock market.

5. Suppose that we learn that hotels in Los Angeles generally operate with an average vacancy rate of 15 percent (in other words, 85 percent of the hotel rooms are filled with guests). Given this information about excess capacity, we would judge this market to be
   a.  a perfectly competitive market.
   b.  a monopoly.
   c.  a monopolistically competitive market.
   d.  an oligopoly.

6. A monopolistically competitive firm
   a.   is always a retail establishment.
   b.   has more monopoly power in the long run than does a perfectly competitive firm.
   c.   tries to differentiate its product from competitors’ products.
   d.   faces a perfectly elastic demand curve for its product.

Eric received an email from Amazon Customer Service that said "Thank you for contacting us." But Eric did not contact them. Instead, an attacker had contacted them and pretended to be Eric. When Amazon Customer Service asked the attacker to identify himself all he had to do was give Eric’s name, email address, and mailing address—which the attacker got from Whois, which contains Eric’s registration information for his website. However, Eric knew to protect his actual mailing address so the registration information on Whois was actually a hotel close to Eric’s house. Because the information matched what was on file, Customer Service told the attacker the mailing address of Eric’s order, which was his real home address. Eric contacted Amazon, found out these details, and told them not to release any of his information to anyone who contacted Customer Service, to which Amazon agreed. Fast forward two months. Eric again received another "Thank you for contacting us" email. After contacting Amazon again, he found that this time the attacker had tried to get the last four digits of Eric’s credit card number on file through more social engineering tricks.

Fortunately, this time Amazon did not surrender that specific piece of information (although they had ignored his previous instruction not to give out any information). Had they provided the credit card number the attacker would have had enough information to pass the "I’m-the-real- Eric" test on almost any of Eric’s online accounts (using his name, email address, mailing address, and last four digits of his credit card) and trick their Customer Service into resetting Eric’s password. This would then allow the attacker to get into Eric’s online accounts and purchase a virtually unlimited number of items charged to Eric’s credit card. What went wrong? Should the first Amazon Customer Service representative have been reprimanded? What policies should Amazon have had in place to prevent this? What technologies should there be in place to prevent this? As a customer, what should you do to protect your online accounts?

Write a one-page paper on your analysis.