1)“Race has been a social construction that has allowed US to set apart racial minorities from European immigrants” (9). Explain how this adds to social construction. Give examples. Agree? Disagree?

Problem 12-6

During 2015, Crane Company purchased a building site for its proposed research and development laboratory at a cost of $54,000. Construction of the building was started in 2015. The building was completed on December 31, 2016, at a cost of $360,000 and was placed in service on January 2, 2017. The estimated useful life of the building for depreciation purposes was 20 years. The straight-line method of depreciation was to be employed, and there was no estimated residual value.

Management estimates that about 50% of the projects of the research and development group will result in long-term benefits (i.e., at least 10 years) to the corporation. The remaining projects either benefit the current period or are abandoned before completion. A summary of the number of projects and the direct costs incurred in conjunction with the research and development activities for 2017 appears below.

Upon recommendation of the research and development group, Crane Company acquired a patent for manufacturing rights at a cost of $120,000. The patent was acquired on April 1, 2016, and has an economic life of 10 years.

If generally accepted accounting principles were followed, how would the items above relating to research and development activities be reported on the following financial statements?

The company’s income statement for 2017. (Do not round intermediate calculations and round final answer to 0 decimal places, e.g. 5,275.)

Crane Company

Income Statement (Partial)

The North Central Water Company has finalized its financial statements for the 2019 financial year. The Company's board of directors has asked you, their cost accountant, to look at the financial results and to compare the financial performance for the 2019 fiscal year to the results of the 2018 financial year. The board would also like you to project the revenues and expenses for the 2020 financial year based on several key assumptions. They have asked you to submit an excel file containing the financial results and budget projections as well as a one page memorandum of your findings.

Financial Results:

Total Number of Customers       26,000 25,000

2019    % of Total Revenues   2018    % of Total Revenues

Revenues:

Water Sales $1,162,000 ? $1,200,000 ?

Late Fees 87,000 ? 68,000 ?

Fire Hydrant Fees    114,500 ? 122,000 ?

  Total Revenues $1,363,500 100% $1,390,000 100%

Expenses:

Cost of Water Sold $512,000 ? $278,000 ?

Payroll Expense 608,000 ? 450,000 ?

Overhead Expense 292,050 ?    200,000 ?

Miscellaneous Expenses 64,075. ? 78,000    ?

   Total Expenses $1,476,125 ? $1,006,000    ?

Net Income (Loss) <$112,625> ?    $ 384,000 ?

I. Excel Analysis (Please submit your answers with the excel file provided for you in Ilearn entitled "North Central Financial Results- Student Copy".

Based on the financial results provided above, complete the excel spreadsheet file provided to you and submit your file in Ilearn. Please include include your name in the filename.

.

Required:

1. Calculate each revenue and expense item as a percentage of total revenues in 2019 and 2018 (show percentages out to TWO decimal places for all revenues and expenses, but round total revenue's percentage to ZERO decimal places- see examples in spreadsheet).

2. Calculate the water sales per customer for 2019 and 2018 (show number out to TWO decimal places- see example in spreadsheet).

3. Calculate the company's budgeted financial performance for 2020 based on the assumptions listed below for each revenue and expense item. Then calculate each item as a percentage of total revenues just like you did for 2019 and 2018. Then calculate the water sales per customer for 2020 just as you did for 2019 and 2018- see examples in spreadsheet.

4. Finally, calculate the differences in each revenue and expense item between 2020 and 2019, and 2019 and 2018- see example in spreadsheet. This will provide you with some insight about the year-to-year changes and help you with your business memo which is the second part of this project.

You must use formulas in the excel spreadsheet rather typing-in calculated numbers to get

full credit. You will also run into rounding errors unless you use formulas. Some formulas

and calculated numbers have already been included in the spreadsheet to help you. YOU

SHOULD HAVE AN ANSWER WHEREVER YOU SEE A QUESTION MARK (?)

ASSUMPTIONS:

Assume that the water company expects that in 2020:

a. The number of customers will increase by 5%.

b. Water sales will increase by 4% and late fees will increase by 1% due to increased customer demand.

c. Hydrant fees will decrease by 1% because several older hydrants will be taken out of service.

d. The cost of water sales will increase by 8% because of higher chemical costs.

e. Payroll expenses will increase by 5.5% due to wage increases and higher medical

insurance expenses.

f. Overhead expense will decrease by 4% because of efforts to reduce costs.

g. Miscellaneous expenses are expected to double because of the purchase of building supplies in anticipation of a major waterline project in 2020.

Here are some check figures to help you out:

2020 Total Revenue=1,409,705

2020 Total Expense=1,602,918

2020 Water Sales per customer= $44.27

Total Income<loss> 2020 vs 2019= <$80,588>

Total Income<loss> 2019 vs 2018=<$496,625>

Total Income <loss> as a percentage of total revenue in 2020=-13.71% Total Income <loss> as a percentage of total revenue in 2019=-8.26%

Required information

Problem 5-1A Perpetual: Alternative cost flows LO P1

[The following information applies to the questions displayed below.]
  
Warnerwoods Company uses a perpetual inventory system. It entered into the following purchases and sales transactions for March.
  

Problem 5-1A Part 3

3. Compute the cost assigned to ending inventory using (a) FIFO, (b) LIFO, (c) weighted average, and (d) specific identification. For specific identification, the March 9 sale consisted of 80 units from beginning inventory and 340 units from the March 5 purchase; the March 29 sale consisted of 40 units from the March 18 purchase and 120 units from the March 25 purchase.

Critically evaluate the following statement: “The only accountability owed by a business is to its shareholders”

Address the following in your answer: a) A discussion of the above statement from a “business case” perspective, including what this perspective tells us in relation to the purpose of business, and who businesses should be accountable to.

b) A discussion of the above statement from a “stakeholder accountability” perspective, including what this perspective tells us in relation to the purpose of business and, who businesses should be accountable to. Use at least TWO different stakeholder groups as examples to support your discussion.

c) In your opinion, which of the above perspectives (business case OR stakeholder accountability) do you think best addresses the objective of accounting to provide useful information to users? Explain why.

The managers of three different supermarkets in the US desire to test the effectiveness of a new store design on sales. The manager of supermarket A decides to let store directors choose on their own whether they judge appropriate to implement the new design. The manager of supermarket B randomly chooses stores to assign the new design. The manager of supermarket C randomly draws stores in each US State separately.

(a) State whether each of the three experimental designs is observational or experimental, providing an explanation.

(b) Which experimental design is implemented in each of the three studies?

(c) Which kind of bias will arise from design A? Why?

(d) Compare the quality of statistical results from Designs B and C. State which of the two prevails on your opinion and why.

The managers of three different supermarkets in the US desire to test the effectiveness of a new store design on sales. The manager of supermarket A decides to let store directors choose on their own whether they judge appropriate to implement the new design. The manager of supermarket B randomly chooses stores to assign the new design. The manager of supermarket C randomly draws stores in each US State separately.

(a) State whether each of the three experimental designs is observational or experimental, providing an explanation.

(b) Which experimental design is implemented in each of the three studies?

(c) Which kind of bias will arise from design A? Why?

(d) Compare the quality of statistical results from Designs B and C. State which of the two prevails on your opinion and why.

Grades on a standardized test are known to have a mean of 500 for students in the US. The test is administered to 600 randomly selected students in Florida. In this subsample, the mean is 508, and the standard deviation is 75

i. Construct a 95% confidence interval for the average test score for students in Florida.

ii. Is there statistically significant evidence that students in Florida perform differently from other students in the US?

iii. Another 500 students are selected at random from Florida. They are given a 3 hour preparation course before the test is administered. Their average test score is 514, with a standard deviation of 15. Construct a 95% confidence interval. Is there statistically significant evidence that the preparation course helped? What conditions must be met in order for the results to have a causal interpretation?

Briefly summarize the key point of the article, but DO NOT include any direct text from the article (i.e., don't quote or copy from the article), tell me in YOUR OWN words. This should be brief. NO LESS THAN 200 words

Explain what other businesses, or your employer, could learn from the key point(s) in this article.

Startups Show Car and Home Insurers They Need to Get Smarter

Industry faces growing threat from technology when profits are already a struggle

When you make an insurance claim with Lemonade, the online-only startup that mainly sells renters policies to young American urbanites, you quickly fill in details on its slick mobile app and then record a quick video to explain the claim again.

Smart software analyzes this video for telltale signs of dishonesty, one of 18 antifraud algorithms that Lemonade says helps it pay claims fast. About one-third are paid instantly, according to Daniel Schreiber, co-founder and CEO, while the average claim is settled in less than a day.

For established insurers this is a risk, especially when insurance policies are relatively small like Lemonade’s or in highly competitive markets where insurers struggle to turn a profit, like auto insurance.

The profits available from simply supplying funds to underwrite risks have been squeezed because capital is plentiful in insurance markets. Smaller, smarter challengers that can manage customers and the claims process at lower cost will find ways to take industry profits, sell more competitive policies, or both.

Lemonade isn’t alone. Another, more established U.S. startup is Snapsheet, which provides its app to U.S. insurers including Chubb and several smaller groups such as Ohio Mutual and NJM insurance. It can assess car damage claims in under three hours based on photos from customers via a mobile app. It closes most claims in less than three days: the traditional process can take up to 30.

Some auto insurers have become more efficient, but the industry remains fragmented. Photo: Bloomberg News

For sure, some auto insurers have become more efficient. Progressive, for example, has its own repair shop network. But the industry remains fragmented and companies know they must improve their processes, especially the efficiency and costs of claims adjusters, according to Tim Zawacki at S&P Global Market Intelligence. Auto insurance is intensely competitive: savings worth just a single cent in every dollar of premiums would make a huge difference.

Big property and casualty insurers give away too much revenue (and potential profit) to a whole network of companies that help insurers deal with clients and claims. About 60 cents of every dollar of premiums gets paid directly or indirectly to these companies, according to forthcoming research by Oliver Wyman.

Just 16 cents of that goes to things like car repairs or physical therapy and so benefits claimants. The rest pays for services from claims adjusters, brokers, software companies and other intermediaries—many of which make better profits than insurers do.

This is a big problem for insurers, which as a group have failed to earn their cost of capital for years, according to Oliver Wyman. They should try to recapture some of this lost value by building their own technology, or buying a company that can cut their costs significantly.

Some have started: Allstate , for example, has its own photo app to speed up claims estimates, while Liberty Mutual, USAA and Intact of Canada all have stakes in Snapsheet.

But insurers will struggle to boost profits while the property and casualty industry is flooded with capital and investment returns remain depressed. Their only option is to get quicker and smarter