House prices: Data from the National Association of Realtors indicate that the mean price of a home in Denver, Colorado, in December 2016 was 366.5 thousand dollars. A random sample of 50 homes sold in 2017 had a mean price of 396.3 thousand dollars. a. Assume the population standard deviation is σ = 150. Can you conclude that the mean price in 2017 differs from the mean price in December 2016? Use the α = 0.05 level of significance. b. Following is a boxplot of the data. Explain why it is not reasonable to assume that the population is approximately normally distributed. c. Explain why the assumptions for the hypothesis test are satisfied even though the population is not normal.

Barbara sold three assets during 2017. How much and what kind of gain or loss does she recognize from each sale? What tax rate applies to the net gain if Barbara's ordinary income is taxed at 25 percent?

a. On February 25 she sold 200 shares of XYZ stock for $19,000. She bought that stock for $16,000 on February 23, 2016.

b. On July 20 she sold an antique automobile for $30,000 that she purchased for $31,000 on July 21, 2016.

c. On August 2, she sold qualified small business stock for $28,000 that she had purchased for $20,000 on December 19, 2008.

Following are the most recent balance sheets for King Fisher Aviation.

Excluding accumulated depreciation, determine whether each item is a use of cash, and the amount:

Fill in the values in the spreadsheet.

On January 1,2016, McKeown, Inc., issued $250,000 of 8%, 9year bonds for $220,776, yielding a market (yield) rate of 10%. Semiannual interest is payable on June 30 and December 31 of each year.

a) Show computations to confirm the bond issue price

b) Prepare journal entries to record the bond issuance, semiannual interest payment and discount amortization on June 30, 2016, and semiannual interest payment and discount amortization on December 31, 2016. Use the effective interest rate.

c) Post the journal entries from part b) to their respective T-accounts

d) Record each of the transactions from part b) in the financial statement effects templat

Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2016 are as follows:

Cost Reatail

Begining inventory. $90,000. $180,000

Purchases 335,000. 580,000

Freight in 9,000   

Purchase returns. 7,000 11,000

Net markups 16,000

Net markdowns 12,000

Normal spoilage 3,000

Abnormal spoliage. 4,800 8,000

Sales 540,000

Sales returns 10,000

The company records sales net of employee discounts. Discounts for 2016 totaled $4,000.

Required:

Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the following applications:

1. Average cost

2. Conventional

11.5) Brandywine Clinic, a not-for-profit business, had revenues of $12 million in 2016. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $1.5 million. All revenues were collected in cash during the year, and all expenses other than depreciation were paid in cash.

1. Brandywine’s 2016 income statement.
2. Brandywine’s net income, total profit margin, and cash flow.
3. Depreciation doubled. Brandywine’s net income, total profit margin, and cash flow.
4. Depreciation halved Brandywine’s net income, total profit margin, and cash flow.
5. Reason for similarities or differences in parts b, c, and d.

Inventory Management Three companies that compete in the footwear market are Foot Locker, Finish Line and DSW. The table below shows inventory levels and cost of goods sold for each company for the 2016, 2015 and 2014 fiscal years. Calculate the inventory turnover ratio for each company in each year and summarize your findings. All values are in $ millions.

The pretax financial income (or loss) figures for Tamarisk Company are as follows.

Pretax financial income (or loss) and taxable income (loss) were the same for all years involved. Assume a 45% tax rate for 2016, and a 20% tax rate for the remaining years.

Prepare the journal entries for the years 2017 to 2021 to record income tax expense and the effects of the net operating loss carrybacks and carryforwards assuming Tamarisk Company uses the carryback provision. All income and losses relate to normal operations. (In recording the benefits of a loss carryforward, assume that no valuation account is deemed necessary.)

Blue Spruce Company had $152,600 of net income in 2016 when the selling price per unit was $153, the variable costs per unit were $93, and the fixed costs were $573,300. Management expects per unit data and total fixed costs to remain the same in 2017. The president of Blue Spruce Company is under pressure from stockholders to increase net income by $61,700 in 2017. Assume that Blue Spruce Company sells the same number of units in 2017 as it did in 2016. What would the selling price have to be in order to reach the stockholders’ desired profit level? (Round answer to 2 decimal places, e.g. 12.25.)

The Blueberry Phone Company operates a factory to build its Crackberry phone. Technological advances by Blueberry’s competitors demolished Crackberry sales. Consequently, management is evaluating the Crackberry factory for impairment as of December 31, 2014. Below are facts about the factory. Original cost $150 million Accumulated depreciation 65 million Future cash flows: 2015 45 million 2016 20 million 2017 10 million Is factory impaired? ____________ Why? ________________________________________________

What is the present value of future cash flows rounded to $100,000 (Assume the cash is received at the end of each year and use an interest rate of 10%.):

             2015                 ________________________________

             2016                 ________________________________

2017                 ________________________________

            Total               ________________________________

What is the impairment loss?