JustKitchens Inc. provides services to restaurants and hotels. The company supplies paper products, tableware, cookware, restaurant and kitchen equipment, and cleaning supplies. On January 2, 2017, Just- Kitchens enters into a contract with a local restaurant chain to provide its services for 3 years at a cost of $10,000 per year. The restaurant chain pays the total contract fee on January 2, 2017. JustKitchens’s stand-alone selling price is also $10,000 per year.

After 2 years, the restaurant asks to modify the contract. On January 2, 2019, the companies agree to reduce the fee for the third year to $9,000 in exchange for extending the contract for 2 additional years at a fee of $11,000 per year. This modification is agreed to by both parties, and on that date the restaurant chain pays for the additional 2 years of service and deducts $1,000 for the adjustment to the original contract. The $11,000 fee for the additional years is the same as JustKitchens’s stand-alone price.

How should JustKitchens account for the contract modification?

The contract modification should be accounted for with a cumulative catch-up adjustment or prospectively?

Prepare the journal entries that JustKitchens would make over the life of the contract. Assume all annual year-end entries are made on December 31. Additional Instruction

PAGE 2017 (4 Journal Entries) PAGE 2018 (2 Journal Entries) PAGE 2019 (4 Journal Entries) PAGE 2020 (2 Journal Entries) PAGE 2021 (2 Journal Entries)

2017PAGE

GENERAL JOURNAL

2018PAGE

GENERAL JOURNAL

PAGE 2019

GENERAL JOURNAL

PAGE 2020

GENERAL JOURNAL

PAGE 2021

GENERAL JOURNAL

A book page contains on average 50 lines and each line contains on average 60 characters. The probability that there is character typo is 0.0001. A line or a page contains a random amount of character typos and we want to use the laws or probability to study them. We designate by X, the random variable related to the number of character typos in a line and Y is the random variable related to the number of character typos in a page.

1) Determine the laws of probability of the random variables X and Y

2) Calculate the probabilities of finding in 1 line- 0 typos, 1 typos, 2 typos, at least 1 typo

3) Calculate the probabilities of finding in 1 page- 0 typos, 1 typos, 2 typos, at least 1 typo

4) Calculate the probabilities of finding 2 typos in a page, and the two typos being on the same line

Problem III. Suppose that, in a market of a certain good, there are firms that are engaged in a Cournot competition. The inverse demand function is given by P(Q) = 120 − 6Q, where Q is the total supply of the good. All firms have the same cost function C(qi) = 30qi + 50.

Q7. What is the Cournot equilibrium price of the good when there are N firms in the market?

(a) (30N + 200)/(N + 1) 2

(b) (50N + 120)/(N + 1)

(c) (120N + 50)/N

(d) (30N + 120)/(N + 1)

(e) (120N + 30)/(N + 1)

Q8. What is the profit of each firm at the Cournot equilibrium when there are N firms in the market?

(a) 30[45/(N + 1)2 − 1]

(b) 50[27/(N + 1)2 − 1]

(c) 50[9/(N + 1)2 − 1]

(d) 30[50/(N + 1)2 − 1]

(e) 50[45/(N + 1)2 − 1]

Q9. When there is free entry in this market, what is the number of firms that will compete in this market?

(a) 7

(b) 5

(c) 6

(d) 4

(e) 8

As in Example 2.20 of the 01-29 version of the lecture notes, consider the Markov chain with state space S = {0, 1} and transition probability matrix P = " 1 2 1 2 0 1# . (a) Let µ be an initial distribution. Calculate the probability Pµ(X1 = 0, X7 = 1). (Your answer will depend on µ.) (b) Define the function f : S → R by f(0) = 2, f(1) = 1. Let the initial distribution of the Markov chain be µ = [µ(0), µ(1)] = 4 7 , 3 7 . Calculate the expectation Eµ[f(X3)]. In plain English, start the Markov chain with initial distribution µ. Run it until time 3. Collect a reward of $2 if you find yourself in state 0 and a reward of $1 if you find yourself in state 1. What is the expected reward? (Your numerical answer should be 15 14 .)

Scala: Write and test a program as elegantly as possible

You are given a puzzle like this:

7 __ 10 __ 2

Each blank may be filled with a ‘+’ (plus) or ‘-’ (minus), producing a value k. For all combinations of plus and minus, find the value of k that is closest to 0.

In the above case, there are 4 combinations, each producing a different value:

7 + 10 + 2 = 19 7 + 10 - 2 = 15 7 - 10 + 2 = -1 7 - 10 - 2 = -5

Of all these combinations, the value that is closest to zero is ​-1​. So the answer is -​ 1​. If there are more than one number that is closest, print the absolute value.

Sample Input/Output:

Enter digits: 7,10,2 Value close to zero is -1

Enter digits: 1,2,3,4 Value close to zero is 0

1. Plot a graph of Table 2. Consider which variable (voltage or current) should be on the x and y axes.
2. What is the relationship between voltage and current? Use data from your graph to support your answer.
3. Estimate the slope of the linear line and record it in Table 3.
4. How does the value of the slope compare to the resistance you measured? Calculate the percent difference.
5. Use the results of your experiment to verify Ohm’s Law.

Crane Corp. management is evaluating two mutually exclusive projects. The cost of capital is 15 percent. Costs and cash flows for each project are given in the following table. Year Project 1 Project 2 0 -$1,148,892 -$1,158,340 1 244,000 337,000 2 334,000 337,000 3 414,000 337,000 4 507,000 337,000 5 717,000 337,000 Calculate NPV and IRR of two projects. (Enter negative amounts using negative sign, e.g. -45.25. Do not round discount factors. Round other intermediate calculations and final answer to 0 decimal places, e.g. 1,525. Round IRR answers to 2 decimal places, e.g. 15.25 or 12.25%.)

NPV of project 1 is $_____

NPV of project 2 is $_____

IRR of project 1 is _____%

IRR of project 2 is _____%

Compute the sample correlation coefficient r for each of the following data sets. (Use 3 decimal places.)

(a) Find the linear correlation coefficient r.