The following transactions relate to Academy Towing Service. Assume the transactions for the purchase of the wrecker and any capital improvements occur on January 1 of each year. 2016 1. Acquired $79,000 cash from the issue of common stock. 2. Purchased a used wrecker for $41,000. It has an estimated useful life of three years and a $10,000 salvage value. 3. Paid sales tax on the wrecker of $5,000. 4. Collected $65,100 in towing fees. 5. Paid $12,900 for gasoline and oil. 6. Recorded straight-line depreciation on the wrecker for 2016. 7. Closed the revenue and expense accounts to Retained Earnings at the end of 2016. 2017 1. Paid for a tune-up for the wrecker’s engine, $1,800. 2. Bought four new tires, $2,150. 3. Collected $71,000 in towing fees. 4. Paid $18,900 for gasoline and oil. 5. Recorded straight-line depreciation for 2017. 6. Closed the revenue and expense accounts to Retained Earnings at the end of 2017. 2018 1. Paid to overhaul the wrecker’s engine, $5,700, which extended the life of the wrecker to a total of four years. The salvage value did not change. 2. Paid for gasoline and oil, $20,000. 3. Collected $74,000 in towing fees. 4. Recorded straight-line depreciation for 2018. 5. Closed the revenue and expense accounts at the end of 2018

Can I get the answers to these with work shown? 2, 3, 4, and 5 only please.

1. The following two linear functions represent a market (thus one is a supply function, the other a demand function). Circle the answer closest to being correct. Approximately what will the quantity demanded be if the government controls the market price to be $1.50 (You must first find the market equilibrium price and quantity in order to see how the $1.50 relates to them)?

Q = 100 – 4.6P and Q = 75 + 6.2P

Qd=100-4.6P Qs=75+6.2P P=$1.50

Qd=Qs 100-4.6P=75+6.2P = 25=10.8P P=2.31

P=1.50 Qd=100-4.6P =100-4.6(1.5) =100-6.9 =93.1

2. There has been a change in the market (represented in 1 above). The change is represented by the following two equations. Circle the one correct conclusion that describes the market change.

Q = 85 + 6.2P and Q = 100 – 4.6P

3. Circle the function on the answer sheet that represents the marginal revenue (MR) function for this demand function: Q = 100 – 3P

4. Circle the quantity that maximizes total revenue (TR) for the marginal revenue (MR) function selected in number three (3).

5. If supply decreases and demand also increases, we can conclude that the new equilibrium:

A researcher records the following data for each of three groups.

What is the value of the F-statistic? (Round your answer to two decimal places.)
F = __________________

Explain your answer.

F is the indicated value because the groups means are different. There is substantial variability between groups.

F is the indicated value because the group means are the same. There is substantial variability between groups.

F is the indicated value because the group means are the same. There is no variability between groups.

F is the indicated value because the group means are different. There is no variability between groups.

Obtain monthly adjusted close prices of S&P500 Index (symbol: ^GSPC) and Microsoft (symbol: MSFT) during December 2006 – December 2019 from Yahoo Finance. Then, using Excel, compute monthly returns during January 2007 – December 2019. From these returns, compute and report beta of Microsoft using the formula we learned in class. Suppose today’s Treasury bill rate is 2% per annum. Historically, market risk premium is estimated to be 8% per annum. What is today’s expected return per annum of Microsoft, according to CAPM?

Guidelines:

1. Use the VAR.P( : ) command to compute variance.

2. Use the COVARIANCE.P( : , : ) command to compute covariance.

1. Estimate the unlevered equity beta for Southwest Airlines. You may assume a 38% tax rate in your calculations.

2. Based on your estimate of Southwest Airlines’ unlevered equity beta, relever the beta to get an estimate of the firm’s levered beta.

3. The airline industry was obviously in a very unique position at the end of 2006. Are there any special concerns that you have regarding the estimation of the cost of equity for Southwest Airlines using the procedure described here?

1. Estimate the unlevered equity beta for Southwest Airlines. You may assume a 38% tax rate in your calculations.

2. Based on your estimate of Southwest Airlines’ unlevered equity beta, relever the beta to get an estimate of the firm’s levered beta.

3. The airline industry was obviously in a very unique position at the end of 2006. Are there any special concerns that you have regarding the estimation of the cost of equity for Southwest Airlines using the procedure described here?

1. Estimate the unlevered equity beta for Southwest Airlines. You may assume a 38% tax rate in your calculations.

2. Based on your estimate of Southwest Airlines’ unlevered equity beta, relever the beta to get an estimate of the firm’s levered beta.

3. The airline industry was obviously in a very unique position at the end of 2006. Are there any special concerns that you have regarding the estimation of the cost of equity for Southwest Airlines using the procedure described here?

Use the formulas provided in class to construct a 95% confidence interval for the proportion of all Americans who have blue eyes.

- Interpret this confidence interval in the context of the research question.

- It is claimed that blue eyes are becoming less common, and it estimated that in 2006, one out of six Americans had blue eyes. Do a hypothesis test to see if our class provides evidence that blue eyes are becoming less common. What are the hypotheses?

- Compute the z-score and find the P-value

- Interpret your results in the context of the research question. Do the results from the confidence interval and hypothesis test agree or disagree? Explain.

Data: 4/13 have blue eyes in the class

PLEASE HELP!!

Three different companies each purchased trucks on January 1, 2018, for $50,000. Each truck was expected to last four years or 200,000 miles. Salvage value was estimated to be $5,000. All three trucks were driven 66,000 miles in 2018, 42,000 miles in 2019, 40,000 miles in 2020, and 60,000 miles in 2021. Each of the three companies earned $40,000 of cash revenue during each of the four years. Company A uses straight-line depreciation, company B uses double-declining-balance depreciation, and company C uses units-of-production depreciation.

Answer each of the following questions. Ignore the effects of income taxes.

b-1. Calculate the net income for 2021?

Company A:

Company B:

Company C:

c-1. Calculate the book value on the December 31, 2020, balance sheet? (Round "Per Unit Cost" to 3 decimal places.)

Company A:

Company B:

Company C:

d-1 Calculate the retained earnings on the December 31, 2021, balance sheet?

Company A:

Company B:

Company C:

Problem 2

You are curious about whether you can enhance the ability to hear differences between nonnative speech sounds when people learn a new language. You test your novel language training procedure on a group of 32 pariticipants using a pretest/posttest design. The pretest and the posttest measure performance as the number of correct trials out of 100. The data are shown on the right. Does the new language training procedure improve the perception of nonnative speech sounds?

Use the four-step hypothesis testing procedure described in class, formatted as in the sample assignment. In addition, calculate 1) the effect size and 2) confidence interval associated with the data. Show your work.