Each year a certain magazine publishes a list of "Best Places to Live in the United States." These listings are based on affordability, educational performance, convenience, safety, and livability. Suppose the list below shows the median household income of the magazine's top city in each U.S. state for a certain year. (Round your answers to the nearest cent.)

(a)

Compute the mean and median (in $) for these household income data.

mean$ _______________

median$ ________________

(c)

Compute the range and standard deviation (in $) for these household income data. (Round your standard deviation to the nearest cent.)

range$ _____________

standard deviation$ ________________

(d)

Compute the first and third quartiles (in $) for these household income data.

Q₁$ ____________________

Q₃$ ____________________

(e)

Are there any outliers in these data?

There  ---Select--- below the lower limit and  ---Select--- above the upper limit.

What does this suggest about the data?

There are no outliers in the data, which is likely why the mean value is the same as the median.

There are no outliers in the data, which is likely why the mean value is greater than the median.    

There are outliers in the data, which is likely why the mean value is less than the median.

There are no outliers in the data, which is likely why the mean value is less than the median.

There are outliers in the data, which is likely why the mean value is greater than the median.

As the financial manager of Wilmore Company Limited, with a passion to boost employment creation through intraregional tourism in Ghana, you have acquired a land at Ho to put up an exquisite amusement park that features a number of attractions including games, pools, gardens, rides etc. The project will cost a total of GH₵100,000. The following cash flows are expected from the project. The beta of the project is 1.5 and the market return is 15%. The risk-free rate of return is 8%.

Year

₵

0

(100,000)

1

20,000

2

25,000

3

32,000

4

35,000

Using the CAPM approach, what is the cost of equity on this project?

[2 marks]

Wilmore Company Limited is a levered entity with percentage of debt out of total capital being 40%. If the interest rate on a bank loan is 10%, the tax rate is 20%, and the cost of equity is as computed in (a), what will be the after tax cost of debt?                        [2 mark]

What will be the weighted average cost of capital (WACC)?    [2 mark]

Using the WACC computed in (c), what will be the NPV of the investment?     `                            [3 marks]

Compute the IRR for the project?                     [3 marks]

What will be your overall advice concerning viability of the project?   

[2 marks]

Mr. Norman and Mr. Foster are both investors looking to buy financial assets. Mr. Norman prefers assets with the lowest prices while Mr. Foster prefers assets on the financial market with higher prices. Each of them currently has GHC 1,000 to invest and needs your assistance to know which asset to buy to suit their preference. The following information provides details of investment options.            

Asset A is a bond with a coupon rate of 10% and pays semi-annual coupons. The par value is GHC 1,000, and the bond has 5 years to maturity. The yield to maturity is 11%.

Asset B is a stock whose dividend is expected to increase by 20% in one year and by 15% in two years. After that, dividends will increase at a rate of 5% per year indefinitely. The last dividend was GHC 100 and the required return is 20%.   

Which asset will Mr. Norman and Mr. Foster invest in?        [8 marks]

In the 2020 accounting year, investors made a number observations in terms of certain decisions some corporations were taking:

(i) The board of directors of some manufacturing and services companies decided to pay stock dividends instead of cash dividends;

(ii) On the other hand, the board of directors of majority of companies within the ICT industry decided to pay special cash dividends;

(iii) It was also observed that some the management of some companies had decided to repurchase shares while others were engaging in stock splits.

What could be the reason for these three decisions and choice of dividend payments by the boards of these companies and what will be the effect of such decisions on the outstanding number of shares and the share prices of these companies?       

1. Which one of the following would be an example of a supply-side market failure?

A. Your business wants to attract repeat customers by putting on a customer-appreciation picnic at a public park, but you decide not to because you couldn't prevent noncustomers from consuming the food and entertainment you provided. B. Everyone rushes to the local retail outlet at midnight on the day of the release of a new video game console, and the store runs out before everyone is able to buy one. C. A gas station is slowly leaking diesel fuel from its underground tanks, but the state uses taxpayer money to clean up the pollution rather than requiring the business to pay. D. A gas station is slowly leaking diesel fuel from its underground tanks, and after the leak is discovered, the business immediately cleans up the pollution at its own expense.

2.The law of increasing opportunity costs states that

A. if the prices of all the resources used to produce goods increase, the cost of producing any particular good will increase at the same rate. B. if society wants to produce more of a particular good, it must sacrifice larger and larger amounts of other goods to do so. C. if the sum of the costs of producing a particular good rises by a specified percent, the price of that good must rise by a greater relative amount. D. the sum of the costs of producing a particular good can't rise above the current market price of that good.

3.Why is regulatory capture a potential government failure?

A. When regulators get too close to the industry they're meant to manage, they may begin to create rules and laws that benefit the industry over the public. B. Laissez-faire economics dictates there should be no government intervention in the markets at all. C. It prevents the government from supplying important public goods. D. The right to coerce is powerful and prone to abuse.

4 .Jacinta, Juan, and Julian have all decided to start a business together. They'll pool their resources to get it started, they'll share any profits or losses from the business equally, and each of them will be personally responsible for any debts or liabilities from the business. What type of business should they form?

A. Corporation B. Sole proprietorship C. Capital accumulation D. Partnership

5.Imagine that the mayor of your town receives most of his reelection funding from cattle industry clients. As soon as he is reelected to office, he passes a law allowing cattle to be driven through the downtown area. The law is very unpopular, and it could be considered a result of _______ on behalf of the cattle industry clients. A. collective-action problems B. political corruption C. Pigovian taxes D. rent-seeking behavior

1. A clouded leopard (Neofelis nebulosa) is a leopard-like cat found in Southeast Asia that has large patch patterns instead of the spots of the leopard (Panthera pardus) found in Africa and much of Asia. In recent news you can read stories declaring the clouded leopard of the islands of Borneo and Sumatra as being a different species from those found on the Asian mainland. If indeed these cats are a different species, this would be evidence of

Multiple Choice

• allopatric speciation.

• sympatric speciation.

• parapatric speciation.

• disruptive selection.

2. The federal government approaches you and asks if you would be willing to take 1,000 wild mustang horses to help reduce mustang overpopulation on federal park land. You agree and release them on your huge ranch. Hundreds of years later your descendents travel back to the old family ranch to see if there are any horses left. What they find astounds them—all the horses are either miniature brown type or very large brown draft horse types. None of the medium sized multicolored mustangs remain. Your descendents consult a horse geneticist and she tells them that this is probably the result of

Multiple Choice

• a genetic bottleneck.

• directional selection pressures operating on your ranch.

• disruptive selection pressure operating on your ranch.

• a mutation.

3. Except in identical twins or clones, no two individuals are genetically alike. All genetic variety in individuals comes from the fact that half of an individual's genes come from the male parent and the other half from the female parent.

True or False

4. You work for a zoo where you manage the breeding program for the cheetah. Your goal is to prevent inbreeding by obtaining mates from other zoos, making sure that your cats produce healthy offspring. In analyzing the genes of the cheetahs in all the zoo breeding programs, you notice very little variety of traits (alleles). Select all of the following conclusions which could be supported by your findings?

Check All That Apply

• All of the zoo cheetahs come from just a few common ancestors.All of the zoo cheetahs come from just a few common ancestors.

• The number of individual cheetahs currently in zoos must be very low.The number of individual cheetahs currently in zoos must be very low.

• The variety of traits found in wild cheetahs is very narrow, possibly due to only a few of the animals surviving some event or series of events in the past.The variety of traits found in wild cheetahs is very narrow, possibly due to only a few of the animals surviving some event or series of events in the past.

• Even after several generations, the baby cheetahs produced at your zoo will show very little genetic variation.Even after several generations, the baby cheetahs produced at your zoo will show very little genetic variation.

Carpenter Cornices, Ltd., produces a wide variety of cornice moldings for windows at a plant located in Evergreen Park, Illinois. Because there are hundreds of products, some of which are made only to order, the company uses a job-order costing system. On July 1, the start of the company’s fiscal year, inventory account balances were as follows: Raw materials $ 12,700 Work in process $ 6,700 Finished goods $ 10,400 The company applies overhead cost to jobs on the basis of machine-hours. Its predetermined overhead rate for the fiscal year starting July 1 was based on a cost formula that estimated $191,400 of manufacturing overhead for an estimated activity level of 58,000 machine-hours. During the year, the following transactions were completed (Assume all purchases and services were acquired on account): a. Raw materials purchased on account, $202,000. b. Raw materials requisitioned for use in production, $164,000 (materials costing $152,500 were chargeable directly to jobs; the remaining materials were indirect). c. Costs for employee services were incurred as follows: Direct labor $ 111,000 Indirect labor $ 48,300 Sales commissions $ 34,500 Administrative salaries $ 53,500 d. Prepaid insurance expired during the year, $28,000 ($17,700 of this amount related to factory operations, and the remainder related to selling and administrative activities). e. Utility costs incurred in the factory, $25,500. f. Advertising costs incurred, $14,800. g. Depreciation recorded on equipment, $39,000. ($25,500 of this amount was on equipment used in factory operations; the remaining $13,500 was on equipment used in selling and administrative activities.) h. Manufacturing overhead cost was applied to jobs, $?. (The company recorded 31,000 machine-hours of operating time during the year.) i. Goods that had cost $326,000 to manufacture according to their job cost sheets were completed. j. Sales (all on account) to customers during the year totaled $614,000. These goods had cost $325,000 to manufacture according to their job cost sheets.1. 1.- Prepare journal entries to record the transactions for the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Prepare T-accounts for inventories, Manufacturing Overhead, and Cost of Goods Sold. Post relevant data from your journal entries to these T-accounts (don’t forget to enter the opening balances in your inventory accounts). Compute an ending balance in each account. (Round your intermediate calculations to 2 decimal places.) 3-a. Is Manufacturing Overhead underapplied or overapplied for the year? (Round your intermediate calculations to 2 decimal places.) 3-b. Prepare a journal entry to close any balance in the Manufacturing Overhead account to Cost of Goods Sold. (Round your intermediate calculations to 2 decimal places. If no entry is required for a transaction/event, select "No journal entry required" in the first account field.) Prepare an income statement for the year. (Round your intermediate calculations to 2 decimal places.)

For the following description of​ data, identify the​ W's, name the​ variables, specify for each variable whether its use indicates it should be treated as categorical or quantitative and for any quantitative variable identify the units in which it was measured. Determine if the data comes from a designed survey or experiment. Determine if the variables are time series or​ cross-sectional.

A company surveyed a random sample of

65006500

employees in the region. One question they asked​ was, "If your employer provides you with mentoring opportunities are you likely to remain in your job for the next

tenten

​years?" They found that

580580

members of the sample said yes.

Identify the Who for this study.

A.The

65006500

employees in the region

B.The

580580

employees who answered yes

C.

All the employees in the region

D.

All people in the region

Identify the What for this study. Select all that apply.

A.

The amount an employee receives in benefits

B.

The average amount of time an employee remains at their job

C.Whether or not an employee is likely to remain at their job for the next

tenten

years

D.The average number of jobs someone goes through in a

fivefive

year period

E.The average number of jobs someone goes through in a

tenten

year period

F.Whether or not an employee is likely to remain at their job for the next

fivefive

years

Identify the When for this study.

A.Over the course of

fivefive

years

B.Within the past

tenten

years

C.

Over the course of a year

D.

This information is not given.

Identify the Where for this study.

A.

Over the phone

B.

At a hotel

C.

Online

D.

This information is not given.

Identify the Why for this study.

A.To determine the least amount of benefits to keep an employee at their job for a minimum of

tenten

years.

B.To determine how many people have been at their current job for at least

fivefive

years.

C.To determine the likelihood that someone remains at their job for the next

tenten

years given that their employer provides them with mentoring opportunities.

D.

This information is not given.

Identify the How for this study.

A.

Employers went door to door surveying residents.

B.

The company passed out a survey to be filled out during the work day.

C.

An online poll was posted on the​ company's website.

D.

This information is not given.

Specify the categorical variables for this study. Select all that apply.

A.

Amount of time at the company

B.

Gender

C.

Age

D.

Mentoring opportunities

E.Whether or not an employee is likely to remain at their job for the next

tenten

years

F.

There are no categorical variables.

Specify the quantitative variables and their units for this study. Select all that apply.

A.

Number of​ jobs; count

B.

Amount of time at the​ company; years

C.

​Age; years.

D.

Mentoring​ opportunities; count

E.

There are no quantitative variables.

Specify whether the data come from a designed survey or experiment.

Experiment

Designed survey

Are the variables time series or​ cross-sectional?

​Cross-sectional

Time series

Troy just returned from a business trip for health-care administrators in Orlando. Kristen, a relatively new employee who reports to him, also attended the conference. They both work for Gateway Hospital, a for-profit hospital in the St. Louis area. The Orlando conference included training in the newest reporting requirements in the health-care industry, networking with other hospital administrators, reports on upcoming legislation in health care, and the current status of regulations related to the Affordable Care Act. The conference was in late March and coincided with Troy’s kids’ spring break, so the entire family traveled to Orlando to check out Walt Disney World and SeaWorld. 100 Chapter 2 Cognitive Processes and Ethical Decision Making in Accounting The hospital’s expense reimbursement policy is very clear on the need for receipts for all reimbursements. Meals are covered for those not provided as part of the conference registration fee, but only within a preset range. Troy has never had a problem following those guidelines. However, the trip to Orlando was more expensive than Troy expected. He did not attend all sessions of the conference, to enjoy time with his family. Upon their return to St. Louis, Troy’s wife suggested that Troy submit three meals and one extra night at the hotel as business expenses, even though they were personal expenses. Her rationale was that the hospital policies would not totally cover the business costs of the trip. Troy often has to travel and misses family time that cannot be recovered or replaced. Troy also knows that his boss has a reputation of signing forms without reading or careful examination. He realizes the amount involved is not material and probably won’t be detected. Kristen is approached by Joyce, the head of the accounting department, about Troy’s expenses, which seem high and not quite right. Kristen is asked about the extra night because she did not ask for reimbursement for that time. Kristen knows it can be easily explained by saying Troy had to stay an extra day for additional meetings, a common occurrence for administrators, although that was not the case. She also knows that the hospital has poor controls and a culture of “not rocking the boat,” and that other employees have routinely inflated expense reports in the past. Assume you, as Kristen, have decided the best approach, at least in the short run, is to put off responding to Joyce so that you can discuss the matter with Troy. Answer the following questions. Questions 1. What are the main arguments you feel Troy will make and reasons and rationalizations you need to address? 2. What is at stake for the key parties in this situation? 3. What levers can you use to influence how Troy reacts to your position in this matter? What is your most powerful and persuasive response to the reasons and rationalizations you need to address? To whom should the argument be made? When and in what context?

The following revenue and expense figures relate to the first year of the rodeo.

Receipts

Contributions from sponsors $22,000

Receipts from ticket sales $28,971

Share of concession profits $1,513

Sale of programs   $600

Total receipts $53,084

Expenses

Livestock contractor $26,000

Prize money $21,000

Contestant hospitality $3,341*

Sponsor signs for arena $1,900

Insurance $1,800

Ticket printing $1,050

Sanctioning fees $925

Entertainment $859

Judging fees $750

Port-a-potties $716

Rent $600

Hay for horses $538

Programs $500

Western hats to first 500 children $450

Hotel rooms for stock contractor $325

Utilities $300

Sand for arena $251

Miscellaneous fixed costs                  $105

Total expenses $61,410

Net loss $ (8,326)

*The club contracted with a local caterer to provide a tent and food for the contestants. The cost of the food was contingent on the number of contestants each evening. Information concerning the number of contestants and the costs incurred are as follows:

                                    Contestants                  Total Cost

Friday                                  68 $998

Saturday                              96                          $1,243

Sunday 83 $1,100

                                                                        $3,341

Break-even point in Dollars is fixed cost / contribution margin ratio

Since the variable is at 4% total revenue, the contribution margin ratio is 96% or .96

$51,000/ .96 = $53,125

Contributions from sponsors = $25,600

Amount from ticket sales for break-even = $27,525

Compute the break-even point in dollars of ticket sales assuming Adrian and Jonathan's assumptions are correct as given in the case. This requirement is to calculate break even in dollars. The amount you calculate will be from all sources of revenue including contributions from sponsors. The requirement is for ticket sales only. Contributions from sponsors is stated in the case as $25,600. As an example, let's say that using the break even formula you calculate break even in dollars as $60,000. This is not the answer for the requirement. You need the amount of ticket sales which would be the $60,000 less $25,600 or $34,400 in ticket sales. It is critical that you account for the contributions from the sponsors. The rest of the case deals with ticket sales revenue. If you don't calculate ticket sales correctly, all of the other case answers you get will be wrong.

Note: The case states that variable costs are 4% of total revenue. What must the contribution margin ratio be if variable costs are 4% of total revenue?

Section 2

Shelley has just learned you are calculating the break-even point in dollars of ticket sales. She is still convinced the Club can make a profit using the assumptions above (second bullet point above).

Calculate the dollars of ticket sales needed to earn a target profit of $6,000.

Calculate the dollars of ticket sales needed to earn a target profit of $12,000.

Are the facilities at the fairgrounds adequate to handle crowds needed to generate ticket revenues calculated above (third bullet point above) to earn a $6,000 profit? Show calculations to support your answers.

III. Multiple Choice

1. Joe Brown invests $10, 000 into his new business. How would the journal entry in this transaction be entered in the journal? (observe indention)

1. Cash                     10,000

       Brown, Capital       10,000

Invested cash in business

2. Cash                     10,000

Brown, Capital       10,000

Invested cash in business

3. Brown, Capital     10,000

        Cash                        10,000

Invested cash in business

4. Brown, Capital     10,000

Cash                        10,000

      Invested cash in business

2. Supplies                        500

      Accounts Payable                  500

What is the best explanation for this journal entry?

1. Purchased supplies with cash
2. Investment of supplies by owner
3. Purchased supplies on account
4. Paid accounts payable

3. Cash                             770

      Fees Earned                770

Received fees from customers.

Recording this transaction will?

1. Decrease cash and decrease revenues
2. Increase cash and increase revenues
3. Increase cash and decrease revenues
4. Increase revenues and decrease cash

4. Net income will result when

1. Revenues (credits) > expenses (debits)
2. Revenues (debits) > expenses (credits)
3. Expenses (credits) < revenues (debits)
4. Revenues (credits) = expenses (debits)

5. Which of the following will increase owner’s equity?

1. Expenses > revenues
2. The owner draws money for personal use
3. Revenues > expenses
4. Cash is received from customers on account

6. Cash                                        450

     Unearned Fees                     450

What is the best explanation for this journal entry?

1. Received cash for services performed
2. Received cash from services to be performed in the future
3. Paid cash in advance for services to be done
4. Paid cash for services to be performed

7. Equipment                                  14000

          Cash                                           4000

           Note Payable                           10000

What is the best explanation for this journal entry?

1. Purchased equipment, paid cash of $4000, with the remainder to be paid in payments
2. Purchased equipment, paid cash of $4000, with the remainder to be received in payments
3. Purchased equipment and paid cash for the entire amount
4. Purchased equipment on credit

8. The process of rewriting the information from the journal to the ledger is called

1. Sliding
2. Transposing
3. Journalizing
4. Posting

9. The verification that the total dollar amount of the debits equals the total dollar amount credits in the ledger is called a?

1. Ledger
2. Trial balance
3. Account
4. Balance sheet

10. Of the following financial reports, which one is the one that will determine if the accounting equation is in balance?

1. Journal entry
2. Income statement
3. Trial balance
4. Account reconciliation

11. If the two totals of a trial balance are not equal, it could be due to

1. Failure to record a transaction
2. Recording the same erroneous amount for both the debit and credit parts of a transaction
3. An error in determining the account balances, such as a balance being incorrectly computed
4. Recording the same transaction more than once

12. The accounts in the ledger of Mickeys Park Co. are listed in alphabetical order. All accounts have normal balances.

Accounts Payable 500
Accounts Receivable 800
Investment 1000
Cash 1600
Withdrawals 200
Fees Earned 2,000
Insurance expense 100
Land 2000
Wages expense 400
Owner’s equity 1800

Preparing a trial balance, the total of the debits are

1. $5, 300
2. $10,600
3. $4, 100
4. $10, 400
5. $4, 700