To study the effect of temperature on yield in a chemical process, five batches were produced at each of three temperature levels. The results follow.

Construct an analysis of variance table. (Round your values for MSE and F to two decimal places, and your p-value to four decimal places.)

Use a 0.05 level of significance to test whether the temperature level has an effect on the mean yield of the process.

State the null and alternative hypotheses.

H₀: μ_50°C ≠ μ_60°C ≠ μ_70°C
H_a: μ_50°C = μ_60°C = μ_70°CH₀: μ_50°C = μ_60°C = μ_70°C
H_a: μ_50°C ≠ μ_60°C ≠ μ_70°C    H₀: μ_50°C = μ_60°C = μ_70°C
H_a: Not all the population means are equal.H₀: At least two of the population means are equal.
H_a: At least two of the population means are different.H₀: Not all the population means are equal.
H_a: μ_50°C = μ_60°C = μ_70°C

Find the value of the test statistic. (Round your answer to two decimal places.)

Find the p-value. (Round your answer to four decimal places.)

p-value =

State your conclusion.

Reject H₀. There is sufficient evidence to conclude that the mean yields for the three temperatures are not equal.Reject H₀. There is not sufficient evidence to conclude that the mean yields for the three temperatures are not equal.    Do not reject H₀. There is not sufficient evidence to conclude that the mean yields for the three temperatures are not equal.Do not reject H₀. There is sufficient evidence to conclude that the mean yields for the three temperatures are not equal.

On January 1, 2018, the general ledger of Big Blast Fireworks includes the following account balances:

The $32,000 beginning balance of inventory consists of 320 units, each costing $100. During January 2018, Big Blast Fireworks had the following inventory transactions:

The following information is available on January 31, 2018. At the end of January, the company estimates that the remaining units of inventory are expected to sell in February for only $100 each. At the end of January, $4,200 of accounts receivable are past due, and the company estimates that 40% of these accounts will not be collected. Of the remaining accounts receivable, the company estimates that 5% will not be collected. Accrued interest expense on notes payable for January. Interest is expected to be paid each December 31. Accrued income taxes at the end of January are $12,500.

Jounral Entries: 1.)Purchase 1,100 units for $117,700 on account ($107 each). 2.) Purchase 1,200 units for $134,400 on account ($112 each). 3.)  Purchase 1,300 units for $152,100 on account ($117 each). 4.) Return 110 of the units purchased on January 12 because of defects. 5.) Sell 3,700 units on account for $555,000. 6.) Record the cost of the units sold, which is determined using a FIFO perpetual inventory system. 7.) Receive $533,000 from customers on accounts receivable. 8.) Pay $363,000 to inventory suppliers on accounts payable. 9.) Write off accounts receivable as uncollectible, $2,700. 10.) Pay cash for salaries during January, $116,000. 11.) Record the adjusting entry for inventory. 12.) Record the adjusting entry for uncollectible accounts. 13.) Record the adjusting entry for interest. 14.)  Record the adjusting entry for income tax. 15.) Record the closing entry for revenue. 16.) Record the closing entry for expenses. 17.) Record the closing entry for income summary.

Additional: Prepare a multiple-step income statement for the period ended January 31, 2018

Additional: Prepare a classified balance sheet as of January 31, 201

Gallatin Carpet Cleaning is a small, family-owned business operating out of Bozeman, Montana. For its services, the company has always charged a flat fee per hundred square feet of carpet cleaned. The current fee is $22.10 per hundred square feet. However, there is some question about whether the company is actually making any money on jobs for some customers—particularly those located on remote ranches that require considerable travel time. The owner’s daughter, home for the summer from college, has suggested investigating this question using activity-based costing. After some discussion, she designed a simple system consisting of four activity cost pools. The activity cost pools and their activity measures appear below:

The total cost of operating the company for the year is $352,000 which includes the following costs:

Resource consumption is distributed across the activities as follows:

Job support consists of receiving calls from potential customers at the home office, scheduling jobs, billing, resolving issues, and so on.

Required:

1. Prepare the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools. (Round your answers to 2 decimal places.)

3. The company recently completed a 400 square foot carpet-cleaning job at the Flying N Ranch—a 50-mile round-trip journey from the company’s offices in Bozeman. Compute the cost of this job using the activity-based costing system. (Round your intermediate calculations and final answer to 2 decimal places.)

4. The revenue from the Flying N Ranch was $88.40 (4 hundred square feet @ $22.10 per hundred square feet). Calculate the customer margin earned on this job. (Round your intermediate calculations and final answers to 2 decimal places.)

Presented below are the balance sheets of Trout Corporation as of December 31, Year 1 and Year 2, and the income statement for the year ended December 31, Year 2. The statement of retained earnings for the year ended December 31, Year 2 is on the next page. All dollars are in thousands.

Trout Corporation

Balance Sheets

December 31, Year 1 and Year 2

                          Assets                                            Year 1                  Year 2

Cash                                                                                       $   85                        $ 127

Accounts receivable                                                                          245                           253

Less: Allowance for doubtful accounts                                (9)                             (11)

Prepaid insurance                                                                    15                              9

Inventory                                                                              225                          234

Long-term investment                                                            65                              42

Land                                                                                          160                            160

Buildings and equipment                                                     250                              300

Less: Accumulated depreciation                                         (75)                          (100)

Trademark                                                                                 25                              22

Total Assets                                                                      $ 986                          $1,036

Liabilities & Stockholders’ Equity

Accounts payable                                                                $ 50                           $   36

Salaries payable                                                                          9                                    6

Deferred tax liability                                                               15                                18

Lease liability                                                                          --                                  75

Bonds Payable                                                                        275                              125

Less: Discount                                                                       (26)                               (24)

Common Stock                                                                       250                              280

Paid-In Capital –in excess of par                                          75                                  70

Preferred Stock                                                                          -                                    105

Retained Earnings                                                               338                                345

Total Liabilities & Stockholders’ Equity                 $   986                         $ 1,036

Trout Corporation

Income Statement

For the Year Ended December 31, Year 2

Net sales revenue                                                                                                   $ 380

Investment revenue                                                                                                     12

Operating Expenses:

Cost of Goods                                                          $ 150

Salaries expense                                                            58

Depreciation expense                                                   35

Trademark amortization                                                 3

Bad debts expense                                                          8

Insurance expense                                                          20

Bond interest expense                                                 45             319

Operating Income                                                                                                    $ 73

Other Income (Expense):

Loss on building fir                                                  $(27)

Gain on sale of investments                                          4                (23)

Pre-Tax Income from Continuing Operations                                                    $ 50

Less: Income Tax Expense:                                                                                     25

Net Income                                                                                                               $ 25

Additional Information:

Shareholders were paid cash dividends of $18 million.

A building that originally cost $40 million, and which was one-fourth depreciated, was destroyed by fire. Some undamaged parts were sold for $3 million.

Investment revenue includes Trout Corporation's $7 million share of the net income of Bass Corporation, an equity method investee.

$30 million par value of common stock was sold for $60 million, and $70 million of preferred stock was sold at par.

A long-term investment in bonds, originally purchased for $30 million, was sold for $34 million.

Pretax accounting income exceeded taxable income causing the deferred income tax liability to increase by $3 million.

The right to use a building was acquired with a seven-year lease agreement; present value of lease payments, $90 million. Annual lease payments of $15 million are paid at January 1^st of each year starting in Year 2.

$150 million of bonds were retired at maturity.

Required:

Use the EXCEL worksheet template provided. There are three tabs-

Direct Method Statement of Cash Flows (SCF)

Show your work

Cash flows from Operating Activities – CFOs Indirect Method

Applying and Analyzing Inventory Costing Methods
At the beginning of the current period, Chen carried 1,000 units of its product with a unit cost of $21. A summary of purchases during the current period follows. During the period, Chen sold 2,800 units.

(a) Assume that Chen uses the first-in, first-out method. Compute both cost of good sold for the current period and the ending inventory balance. Use the financial statement effects template to record cost of goods sold for the period.
Ending inventory balance $Answer
Cost of goods sold              $Answer

Use negative signs with answers, when appropriate.

(b) Assume that Chen uses the last-in, first-out method. Compute both cost of good sold for the current period and the ending inventory balance.
Ending inventory balance $Answer
Cost of goods sold              $Answer

(c) Assume that Chen uses the average cost method. Compute both cost of good sold for the current period and the ending inventory balance.
Ending inventory balance $Answer
Cost of goods sold              $Answer

(d) Which of these three inventory costing methods would you choose to:

Please answer all parts of the question.

You are a manager at Marée Rouge Cosmetics International for five years now. When you first began at Marée Rouge, there was a marked lack of communication between the product development and marketing departments, and a good bit of distrust or actual hostility between members of these departments. Why these problems existed was not clear, and often even people in long-standing feuds seemed to have forgotten the original causes of these disputes. While these conflicts did not prohibit professional working relationships, it was obvious that they were hurting the overall operational effectiveness of two departments that needed to work closely together. About three years ago, Marée Rouge leased a new building and was able to house the two departments on the same floor while also giving all areas greater office space. (In the old building, the departments had been housed on separate floors.) Largely due to the greater physical interactions between the departments, you have seen a marked improvement in the communications and work relationships between departmental members. Now there is a strong working relationship between the two areas, and this relationship has lead to faster product development and deployment as well as the initiation of several innovative (and strong selling) new products. However, partly due to this improved firm performance and revenues, Marée Rouge has increased its workforce and needs to find new office space. Currently, the company is looking at a small office park location where each of the major areas can be housed in separate facilities. The office park is beautiful, is located more centrally to most workers’ homes, will be far more comfortable than the existing location, and provides easy access to major suppliers and customers. However, you worry that physically separating the two divisions will destroy their current strong working relationship and may even lead to the same problems that existed before between the divisions. While you know that the move has already been decided on by top management, you feel sure that they will be willing to listen to well thought out suggestions for maintaining the good relationship between the divisions. In order to develop such relationships, you have asked some of your colleagues to help you draft an overview of the situation and suggested methods for avoiding problems. Instructions: Develop a presentation to detail your desired goals for the move, what potential problems you see the new physical location creating, and suggestions for preventing (or reducing) these potential problems. Use all appropriate chapter concepts in developing this presentation. Also, due to the nature of the link between organizational design and organizational behavior, you should draw upon appropriate concepts from other chapters for your answer as well. Questions: What new links did you see between organizational design and organizational behavior? What organizational behavior principles could be used to overcome problems with a given organizational design? What organizational design principles could be used to improve organizational behavior problems? Could communication technology be used to help overcome the expected organizational design problems? Why or why not?

This problem is from 2008.

The US Open is an annual two week tennis event in Flushing NY in late August, early September.

In a year with no significant rain interruption, the US Open makes approximately $275 million in revenue and incurs expenses of approximately $225 million, for a profit of $50 million. Of the $275 million in revenue approximately $100 million is from ticket sales. As a non-profit organization, it incurs no tax.

The US Open can work around rain delays but if all play is suspended in either the afternoon or evening sessions, tickets are good for the same session in the following year, in which case the USTA foregoes revenue. The largest ticket prices are for the women’s and men’s finals so a rain-out on either of these days forgoes the most revenue.

The Open is interested in buying a contract to protect itself from foregone revenues from rain interruptions during the finals. Working with its insurance broker, it approaches the insurance market to see if it can buy a weather derivative or insurance policy.

The US Open estimates that between foregone ticket sales and lost margin on concessions and broadcasting rights, a rain out on either the men’s or women’s finals will mean $30 mil in lost profits.

The insurance broker is able to secure an insurance policy that will indemnify the US Open if rainfall occurs during the men’s or women’s finals. The policy treats each event separately, meaning there is coverage and a corresponding premium charged for postponement of either final. The insurer is willing to provide a policy covering each separate event that will indemnify the US Open with a limit of $30 million and a policy premium of $10 million for each. As with all insurance policies, the US Open can collect the insurance payments only once it demonstrates the losses.

The weather desks at three major reinsurance holding companies with broker/dealers supply the probabilities associated with significant rainfall (> ¼ inch) on days 13 and 14 of this calendar year, which is 20% for either day, and conditional on rain on the 13th day, the chance of rain on the 14th day is 30%.

Write out all possible rain/dry possibilities for the 13th and 14th days, with their associated probabilities.

Without insurance, what are the profits if there are rain postponements to either or both finals?

Without insurance, what are the expected profits?

With insurance, what are profits if there are rain postponements?

With insurance what are profits if there is no rain?

What are the expected profits if insurance is purchased?

Should the US Open explore including additional days into the policy?

Over a ten year period, assuming baseline revenue and costs are approximately the same amounts as today, what would the US Open expect to earn (i) in the absence of an insurance policy and (ii) with the insurance policy?

The weather desk is also willing to write two weather derivative contracts, one for day 13 and one for day 14, each with a payout of $30 million and a cost of $12 million. The derivative pays the US Open regardless of whether play is suspended or not. It pays based on measured rainfall within 24 hour period exceeding ¼ of an inch.

What is the best strategy for the US Open to manage its exposure to rain?

Explain.

Without insurance, what are the profits if there are rain postponements to either or both finals?

Without insurance, what are Expected profits?

With insurance, what are profits if there are rain postponements?

With insurance what are profits if there is no rain?

Should the US Open explore including additional days into the policy?

Over a ten year period, assuming baseline revenue and costs are approximately the same amounts as today, what would the US Open expect to earn (i) in the absence of an insurance policy and (ii) with the insurance policy?

What is the best strategy for the US Open to manage its exposure to rain?

This problem is from 2008.

The US Open is an annual two week tennis event in Flushing NY in late August, early September.

In a year with no significant rain interruption, the US Open makes approximately $275 million in revenue and incurs expenses of approximately $225 million, for a profit of $50 million. Of the $275 million in revenue approximately $100 million is from ticket sales. As a non-profit organization, it incurs no tax.

The US Open can work around rain delays but if all play is suspended in either the afternoon or evening sessions, tickets are good for the same session in the following year, in which case the USTA foregoes revenue. The largest ticket prices are for the women’s and men’s finals so a rain-out on either of these days forgoes the most revenue.

The Open is interested in buying a contract to protect itself from foregone revenues from rain interruptions during the finals. Working with its insurance broker, it approaches the insurance market to see if it can buy a weather derivative or insurance policy.

The US Open estimates that between foregone ticket sales and lost margin on concessions and broadcasting rights, a rain out on either the men’s or women’s finals will mean $30 mil in lost profits.

The insurance broker is able to secure an insurance policy that will indemnify the US Open if rainfall occurs during the men’s or women’s finals. The policy treats each event separately, meaning there is coverage and a corresponding premium charged for postponement of either final. The insurer is willing to provide a policy covering each separate event that will indemnify the US Open with a limit of $30 million and a policy premium of $10 million for each. As with all insurance policies, the US Open can collect the insurance payments only once it demonstrates the losses.

The weather desks at three major reinsurance holding companies with broker/dealers supply the probabilities associated with significant rainfall (> ¼ inch) on days 13 and 14 of this calendar year, which is 20% for either day, and conditional on rain on the 13^th day, the chance of rain on the 14^th day is 30%.

1. Write out all possible rain/dry possibilities for the 13^th and 14^th days, with their associated probabilities.
2. Without insurance, what are the profits if there are rain postponements to either or both finals?
3. Without insurance, what are the expected profits?
4. With insurance, what are profits if there are rain postponements?
5. With insurance what are profits if there is no rain?
6. What are the expected profits if insurance is purchased?
7. Should the US Open explore including additional days into the policy?
8. Over a ten year period, assuming baseline revenue and costs are approximately the same amounts as today, what would the US Open expect to earn (i) in the absence of an insurance policy and (ii) with the insurance policy?

The weather desk is also willing to write two weather derivative contracts, one for day 13 and one for day 14, each with a payout of $30 million and a cost of $12 million. The derivative pays the US Open regardless of whether play is suspended or not. It pays based on measured rainfall within 24 hour period exceeding ¼ of an inch.

1. What is the best strategy for the US Open to manage its exposure to rain?

Explain.

1. Without insurance, what are the profits if there are rain postponements to either or both finals?
2. Without insurance, what are Expected profits?

3. With insurance, what are profits if there are rain postponements?
4. With insurance what are profits if there is no rain?

5. Should the US Open explore including additional days into the policy?

6. Over a ten year period, assuming baseline revenue and costs are approximately the same amounts as today, what would the US Open expect to earn (i) in the absence of an insurance policy and (ii) with the insurance policy?
7. What is the best strategy for the US Open to manage its exposure to rain?

please make sure the second part is answer.  

Problem 10-1A

On January 1, 2017, the ledger of Ivanhoe Company contained these liability accounts.

During January, the following selected transactions occurred.

During January, the company’s employees earned wages of $71,200. Withholdings related to these wages were $5,447 for Social Security (FICA), $5,086 for federal income tax, and $1,526 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages earned during January will be paid during February. No entry had been recorded for wages or payroll tax expense as of January 31.

a) Journalize the January transactions

b) Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense.

c) Prepare the current liabilities section of the balance sheet at January 31. 207. Assume no change in Accounts payable.

Problem 10-1A

On January 1, 2017, the ledger of Sheridan Company contained these liability accounts.

During January, the following selected transactions occurred.

During January, the company’s employees earned wages of $78,800. Withholdings related to these wages were $6,028 for Social Security (FICA), $5,629 for federal income tax, and $1,689 for state income tax. The company owed no money related to these earnings for federal or state unemployment tax. Assume that wages earned during January will be paid during February. No entry had been recorded for wages or payroll tax expense as of January 31.

a)Journalize the January transactions.

b)Journalize the adjusting entries at January 31 for the outstanding note payable and for salaries and wages expense and payroll tax expense

c)Prepare the current liabilities section of the balance sheet at January 31, 2017. Assume no change in Accounts Payable.

Revised Problem 5-65

Fresno Fiber Optics, Inc. manufactures fiber optic cables for the computer and telecommunications industries. At the request of the company VP of marketing, the cost management staff has recently completed a customer profitability study. The following activity-based costing information was the basis for the analysis.

The following additional information has been completed for Fresno Fiber Optics for two of its customers, Trace Telecom and Caltrex Computer, for the most recent year.