Advanced Pharmaceuticals, Inc., is a wholesale distributor of prescription drugs to independent retail and hospital-based pharmacies. Management believes that top-notch customer representatives are the key factor in determining whether the company will be successful in the future. Customer representatives serve as the company’s liaison with customers—helping pharmacies monitor their stocks, delivering drugs when customer stocks run low, and providing up-to-date information on drugs from many different companies. Customer representatives must be ultra-reliable and are highly trained. Good customer representatives are hard to come by and are not easily replaced.

Customer representatives routinely record the amount of time they spend serving each pharmacy. This time includes travel time to and from the company’s central warehouse as well as time spent replenishing stocks, dealing with complaints, answering questions about drugs, informing pharmacists of the latest developments and newest products, reviewing bills, explaining procedures, and so on. Some pharmacies require more hand-holding and attention than others and consequently they consume more of the representatives’ time.

Recently, customer representatives have made more frequent complaints that it is impossible to do their jobs without working well beyond normal working hours. This has led to an alarming increase in the number of customer representatives quitting for jobs in other organizations. As a consequence, management is considering dropping some customers to reduce the workload on customer representatives. Data concerning a representative sample of the company’s customers appears below:

Customer service costs include all of the costs—other than the costs of the drugs themselves—that could be avoided by dropping the customer. These costs include the hourly wages of the customer representatives, their sales commissions, the mileage-related costs of the customer representatives’ company-provided vehicles, and so on.

Required:

1. Rank the four customers in terms of their profitability.

2. Customer representatives are currently paid $35 per hour plus a commission of 1% of sales revenues. If these four pharmacies are indeed representative of the company’s customers, could the company afford to pay its customer representatives more in order to retain them?

Advanced Pharmaceuticals, Inc., is a wholesale distributor of prescription drugs to independent retail and hospital-based pharmacies. Management believes that top-notch customer representatives are the key factor in determining whether the company will be successful in the future. Customer representatives serve as the company’s liaison with customers—helping pharmacies monitor their stocks, delivering drugs when customer stocks run low, and providing up-to-date information on drugs from many different companies. Customer representatives must be ultra-reliable and are highly trained. Good customer representatives are hard to come by and are not easily replaced. Customer representatives routinely record the amount of time they spend serving each pharmacy. This time includes travel time to and from the company’s central warehouse as well as time spent replenishing stocks, dealing with complaints, answering questions about drugs, informing pharmacists of the latest developments and newest products, reviewing bills, explaining procedures, and so on. Some pharmacies require more hand-holding and attention than others and consequently they consume more of the representatives’ time. Recently, customer representatives have made more frequent complaints that it is impossible to do their jobs without working well beyond normal working hours. This has led to an alarming increase in the number of customer representatives quitting for jobs in other organizations. As a consequence, management is considering dropping some customers to reduce the workload on customer representatives. Data concerning a representative sample of the company’s customers appears below: Leafcrest Pharmacy Providence Hospital Pharmacy Madison Clinic Pharmacy Jenkins Pharmacy Total revenues $328,860 $3,056,380 $1,487,010 $208,550 Cost of drugs sold $232,470 $2,248,480 $1,133,440 $129,920 Customer service costs $10,710 $76,500 $45,500 $7,980 Customer representative time 255 1,380 630 150 Customer service costs include all of the costs—other than the costs of the drugs themselves—that could be avoided by dropping the customer. These costs include the hourly wages of the customer representatives, their sales commissions, the mileage-related costs of the customer representatives’ company-provided vehicles, and so on. Required: 1. Rank the four customers in terms of their profitability. 2. Customer representatives are currently paid $40 per hour plus a commission of 1% of sales revenues. If these four pharmacies are indeed representative of the company’s customers, could the company afford to pay its customer representatives more in order to retain them? Yes No

Use the information given below to answer Questions 10 - 15. Robin Industries, Inc., [RI] manufactures and sells electronic solid fuel powered vehicles popularly known as BatKars [BK]. All units are sold with under a two-year warranty contract with a commitment to replace defective parts and provide the necessary labor services for such repair . During 2018 the corporation sold 6,000 BKs for cash at a unit price of $4,000. Based on past experience, the two-year warranty contracts are estimated to cost the company $380 per unit which included $80 per unit on parts and the balance for labor. These are recorded at the time when the sales are recorded. During 2018, RI incurred actual costs of $990,000 (which consisted of $444,000 for parts and the rest for labor) on repair work called for by customers on the sold units. Apply the expense-based (assurance-type) approach for answering Questions 10 - 12 stated below. NEXT You are then further informed that RI estimates $500 per unit of the product revenues from the above mentioned sales would would be considered as warranty revenues. 40% of these warranty revenues relate to year 2018 and the balance to year 2019. Now apply the revenue-based (service-type) approach for answering Questions 13 - 15.

10] The entry to record the warranty contracts issued in 2018 would be

a. Warranty Expenses ...... DR $1,080,000; Warranty Expenses Payable ...... CR $ 1,080,000.

b. Warranty expenses ...... DR $2,280,000; Cash ...... CR $2,280,000.

c. Warranty Expenses ...... DR $2,280,000; Estimated Warranty Liabilities ...... CR $2,280,000.

d. Warranty expenses ...... DR $2,280,000; Parts Inventory ...... CR $480,000; Direct Labor ...... CR $1,800,000

e. Warranty expenses ...... DR $24,000,000; Cash ...... CR $24,000,000.

11] Prepare the journal entry to record the actual warranty costs incurred by RI during 2018.

a. Warranty expenses ...... DR $1,080,000; Parts Inventory ...... CR $1,080,000.

b. Estimated Warranty Liabilities ...... DR $1,080,000; Parts Inventory ...... CR $1,080,000.

c. Estimated Warranty Liabilities ...... DR $990,000; Parts Inventory ...... CR $444,000; Direct Labor ...... CR $546,000; ..

d. Warranty expenses ...... DR $1,290,000; Estimated Warranty Liabilities ...... CR $1,290,000.

e. Warranty expenses ...... DR $1,080,000; CR Cash ...... $1,080,000.

12. How would the warranty transactions be reported on the financial statements for December 31, 2018 stating the appropriate classifications and amounts?

a. Income Statement: Sales Revenues ... $24,000,000; Warranty Expenses ... $2,280,000; and Balance Sheet: Non-Current Liability - Estimated Liability for Warranties ... $1,290,000.

b. Income Statement: Warranty Revenues ... $24,000,000; Warranty Expenses ... $2,280,000; and Balance Sheet: Current Liability - Estimated Liability for Warranties ... $1,290,000.

c. Income Statement: Sales Revenues ... $24,000,000; Warranty Expenses ... $990,000; and Balance Sheet: Current Liability - Warranties Payable ... $990,000.

d. Income Statement: Sales Revenues ... $24,000,000; Warranty Expenses ... $990,000; and Balance Sheet: Non-Current Liability - Estimated Liability for Warranties ... $1,290,000.

e. None of the above.

13] What would be the journal entry to record the sales of the BatKars and the warranty in 2018?

a. Cash ...... DR $24,000,000; Sales Revenue ...... CR $21,000,000; Warranty Payable ...... CR $3,000,000.

b. Cash ...... DR $24,000,000; Sales Revenue ...... CR $21,000,000; Unearned Warranty Revenue ...... CR $3,000,000.

c. Cash ...... DR $24,000,000; Sales Revenue ...... CR $21,000,000; Gain On Warranty ...... CR $3,000,000.

d. Cash ...... DR $24,000,000; Sales Revenue ...... CR $23,010,000; Warranty Payable ...... CR $990,000.

e. None of the above.

14] The journal entry to record the actual warranty costs incurred in 2018 would be

a. Warranty Expense ...... DR $990,000; Cash ...... CR $546,000; Parts Inventory ...... CR $444,000

b. Warranty Expense ...... DR $990,000; Warranty Payable ...... CR $990,000.

c. Warranty Expense ...... DR $990,000; Estimated Liability for Warranties ...... CR $990,000.

d. Warranty Revenues ...... DR $990,000; Cash ...... CR $546,000; Parts Inventory ...... CR $444,000.

e. Warranty Expense ...... DR $990,000; Direct Labor ...... CR $546,000; Parts Inventory ...... CR $444,000.

15] How would the warranty transactions be reported on the financial statements for December 31, 2018 stating the appropriate classifications and amounts?

a. Income Statement: Sales Revenue ...... $21,000,000; Warranty Revenue ...... $1,200,000; and Warranty Expenses ...... $990,000; and Balance Sheet: Current Liability - Estimated Liability for Warranties ...... $1,800,000.

b. Income Statement: Sales Revenue ...... $21,000,000; Warranty Revenue ...... $1,200,000; Warranty Expenses ...... $990,000; and Balance Sheet: Current Liability - Unearned warranty revenue ...... $1,800,000.

c. Income Statement: Sales Revenue ...... $21,000,000; Warranty Revenue ...... $1,200,000; Warranty Expenses ...... $990,000; and Balance Sheet: Non-Current Liability - Unearned warranty revenue ...... $1,800,000.

d. Income Statement: Sales Revenues ...... $24,000,000; Warranty Expenses ...... $1,200,000; and Balance Sheet: Current Liability - Unearned warranty revenue ...... $1,800,000.

10. Over the past year, the vice president for human resources at a large medical center has run a series of three-month workshops aimed at increasing worker motivation and performance. To check the effectiveness of the workshops, she selected a random sample of 35 employees from the personnel files. She collected the employee performance ratings recorded before and after workshop attendance and stored the paired ratings in the Excel data file for this assignment under the tab Perform.   

Conduct the appropriate hypothesis test and then state your findings and conclusions regarding the value of these workshops. (Significance level of 5%)

1. State your null and alternative hypothesis.
2. What is the conclusion of your test? Justify your answer, including an interpretation of the confidence interval and the p-value.
3. Assuming the cost of the training is $1000 per employee, what would be your decision regarding these workshops under the assumption that an increase in performance of at least 10% would justify the cost?

   Before	After
   59	72
   72	74
   89	62
   67	74
   81	78
   88	86
   71	81
   67	72
   78	77
   64	85
   72	80
   89	80
   87	76
   69	86
   61	84
   82	80
   82	87
   65	82
   80	76
   70	80
   76	79
   78	88
   77	83
   74	83
   63	81
   62	76
   84	79
   71	81
   68	86
   88	89
   73	75
   77	71
   83	78
   82	78
   60	94

The ledger of Crane Limited at October 31, 2021, contains the following summary data:

Your analysis reveals the following additional information:

Prepare a journal entry to correct the prior period error.

Prepare the journal entry to record the reacquisition of common shares

Calculate profit for the year ended October 31, 2021

Prepare the statement of retained earnings for the company for the year ended October 31, 2021.

Question 2 [15 marks]

Edwards Industries is a manufacturer of healthcare products. The company is evaluating the feasibility of a new household disinfectant product that uses ultraviolet radiation technology. The project has a lifespan of 10 years and is expected to generate a yearly revenue of $5.2 million and a yearly operating expense of $1.2. The new manufacturing equipment will cost $15 million, and production and sales will require an initial $5 million investment in working capital.  The equipment will be fully depreciated using the straight-line method over the life of the project with a salvage value of $2 million (after tax). In addition, the company spent $150,000 in research related to the product last year. Rather than acquiring a new building, the company plans to install the equipment in a building that it owns but currently unoccupied. The building could be sold for $3 million after taxes and relevant fees. The company's tax rate is 30%.  

If the expected return from shareholders is 12% per year, what is the project's NPV? Should the project be accepted?

The product development group of a high-tech electronics company developed five proposals for new products. The company wants to expand its product offerings, so it will undertake all projects that are economically attractive at the company’s MARR of 16% per year. The cash flows (in $1000 units) associated with each project are estimated. Which projects, if any, should the company accept on the basis of a present worth analysis?

The present worth of project A is $  .

The present worth of project B is $  .

The present worth of project C is $  .

The present worth of project D is $  .

The present worth of project E is $

can I please get help on this question

1 .Wu Company incurred $40,000 of fixed cost and $50,000 of variable cost when 4,000 units of product were made and sold.

If the company's volume doubles, the company's total cost will:

stay the same.

double as well.

increase but will not double.

decrease.

2 .Hard Nails and Bright Nails are competing nail salons. Both companies have the same number of customers. Both charge the same price for a manicure. The only difference is that Hard Nails pays its manicurists on a salary basis (i.e., a fixed cost structure) while Bright Nails pays its manicurists on the basis of the number of customers they serve (i.e., a variable cost structure). Both companies currently make the same amount of net income. If sales of both salons increase by an equal amount, Hard Nails:

will earn a higher profit than Bright Nails.

will earn a lower profit than Bright Nails.

will earn the same amount of profit as Bright Nails.

The answer cannot be determined from the information provided.

3 The excess of a product's selling price over its variable costs is referred to as:

gross profit

gross margin

contribution margin

manufacturing margin

manufacturing margin

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2021 with a refund liability of $330,000. During 2021, Halifax sold merchandise on account for $11,800,000. Halifax's merchandise costs it 70% of merchandise selling price. Also during the year, customers returned $345,000 in sales for credit, with $191,000 of those being returns of merchandise sold prior to 2021, and the rest being merchandise sold during 2021. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.

Required:

1. Prepare entries to (a) record actual returns in 2021 of merchandise that was sold prior to 2021; (b) record actual returns in 2021 of merchandise that was sold during 2021; and (c) adjust the refund liability to its appropriate balance at year end.
2. What is the amount of the year-end refund liability after the adjusting entry is recorded?

the questions are

Record the year-end adjusting entry for estimated returns.

Record the adjusting entry for the estimated return of merchandise to inventory.

What is the amount of the year-end refund liability after the adjusting entry is recorded?

Halifax Manufacturing allows its customers to return merchandise for any reason up to 90 days after delivery and receive a credit to their accounts. All of Halifax's sales are for credit (no cash is collected at the time of sale). The company began 2018 with a refund liability of $390,000. During 2018, Halifax sold merchandise on account for $12,400,000. Halifax's merchandise costs it 65% of merchandise selling price. Also during the year, customers returned $368,000 in sales for credit, with $203,000 of those being returns of merchandise sold prior to 2018, and the rest being merchandise sold during 2018. Sales returns, estimated to be 3% of sales, are recorded as an adjusting entry at the end of the year.

Required:

1. Prepare entries to (a) record actual returns in 2018 of merchandise that was sold prior to 2018; (b) record actual returns in 2018 of merchandise that was sold during 2018; and (c) adjust the refund liability to its appropriate balance at year end.
2. What is the amount of the year-end refund liability after the adjusting entry is recorded?

I am getting everything besides part C. My math comes out to 4,000 for the difference in estimated and actual but mcgraw hill is saying this is incorrect.