Consider the data in the file Growth.csvwhich contains data on average growth rates over 1960-1995 for 65 countries, along with variables that are potentially related to growth. A complete description of the data is given in data description which is under the name Growth- Data Description and can be found on Blackboard.

Using this data, carry out the following empirical exercises:

Construct a table that shows the sample mean, std. deviation, minimum and maximum values for the variablesGrowth, Trade-Share, YearsSchool, Oil, Rev_Coups, Assasinations, and RGDP60.

Run a regression of Growthon TradeShare, YearsSchool,Rec_Coups, Assasinations and RGDP60.Show the output of this regression in R (take a screenshot and crop the output summary in your word file that contains your answers).

What is the value on the coefficient on Rev_Coups?Is it statistically significant? Do interpretation on this coefficient.

What is the value of the adjusted R-square? Do these variables explain the majority of country growth?

Use the regression to predict the average annual growth for a country that has average values for all regressors.

Repeat (3) but now assume that the country’s value for TradeShareis one std. deviation above its mean.

Notes: Please submit through email an individual word file with your answers WELL ORGANIZEDalong with your R code (.R file) at the end.

The population from 1975 to 2015 are given below

1. Use the data given in the table to draw the population – time relation in X-Y graph
2. Use the Graphical extension Method to find the population in 2050
3. According to the plotted graph, use only one method (Geometric Increase method or Arithmetic Increase method) to find the population in 2050 (Explain why you select this method)
4. Use the estimated population in 2050 to design the main sewer pipe running 0.6 times full at maximum discharge. The water supplied from the water works to the town is at a rate of 200 LPCD. The manning’s n = 0.015 for the pipe material and permissible slope is 1 ‰. Variation of n with depth may be neglected. Check for minimum and maximum velocity assuming that the groundwater level is lower than the sewer pipe level.

Jan Northcutt, owner of Northcutt Bikes, started business in 1995. She notices the quality of bikes she purchased for sale in her bike shop declining while the prices went up. She also found it more difficult to obtain the features she wanted on ordered bikes without waiting for months. Her frustration turned to a determination to build her own bikes to her particular customer specifications.

She began by buying all the necessary parts (frames, seats, tires, etc.) and assembling them in a rented garage using two helpers. As the word spread about her shop’s responsiveness to options, delivery, and quality, however, the individual customer base grew to include other bike shops in the area. As her business grew and demanded more of her attention, she soon found it necessary to sell the bike shop itself and concentrate on the production of bikes from a fairly large leased factory space.

As the business continued to grow, she backward integrated more and more processes into her operation, so that now she purchases less than 50% of the component value of the manufactured bikes. This not only improves her control of production quality but also helps her control the costs of production and makes the final product more cost attractive to her customers.

The Current Situation

Jan considers herself a hands-on manager and has typically used her intuition and her knowledge of the market to anticipate production needs. Since one of her founding principles was rapid and reliable delivery to customer specification, she felt she needed to begin production of the basic parts for each particular style of bike well in advance of demand. In that way she could have the basic frame, wheels, and standard accessories started in production prior to the recognition of actual demand, leaving only the optional add-ons to assemble once the order came in. Her turnaround time for an order of less than half the industry average is considered a major strategic advantage, and she feels it is vital for her to maintain or even improve on response time if she is to maintain her successful operation.

As the customer base have grown, however, the number of customers Jan knows personally has shrunk significantly as a percentage of the total customer base for Northcutt Bikes, and many of these new customers are expecting or even demanding very short response times, as that is what attracted them to Northcutt Bikes in the first place. This condition, in addition to the volatility of overall demand, has put a strain on capacity planning. She finds that at times there is a lot of idle time (adding significantly to costs), whereas at other times the demand exceeds capacity and hurts customer response time. The production facility has therefore turned to trying to project demand for certain models, and actually building a finished goods inventory of those models. This has not proven to be too satisfactory, as it has actually hurt costs and some response times. Reasons include the following:

- The finished goods inventory is often not the “right” inventory, meaning shortages for some goods and excessive inventory of others. This condition both hurts responsiveness and increases inventory costs.

- Often, to help maintain responsiveness, inventory is withdrawn from finished goods and reworked, adding to product cost.

- Reworking inventory uses valuable capacity for other customer orders, again resulting in poorer response times and/or increased costs due to expediting. Existing production orders and rework orders are both competing for vital equipment and resources during times of high demand, and scheduling has become a nightmare.

The inventory problem has grown to the point that additional storage space is needed, and that is a cost that Jan would like to avoid if possible.

Another problem that Jan faces is the volatility of demand for bikes. Since she is worried about unproductive idle time and yet does not wish to lay off her workers during times of low demand, she has allowed them to continue to work steadily and build finished goods. This makes the problem of building the “right” finished goods even more important, especially given the tight availability of storage space.

Past Demand

The following shows the monthly demand for one major product line: the standard 26-inch 10-speed street bike. Although it is only one of Jan’s products, it is representative of most of the major product lines currently being produced by Northcutt Bikes. If Jan can find a way to sue this data to more constructively understand her demand, she feels she can probably use the same methodologies to project demand for other major product families. Such knowledge can allow her, she feels, to plan more effectively and continue to be responsive while still controlling costs.

1. Plot the data and describe what you see. What does it mean and how would you use the information from the plot to help you develop a forecast?

2. Use at least two different methodologies to develop as accurate a forecast as possible for the demand. Use each of those methods to project the next four months demand.

3. Which method from question 2 is “better”? How do you know that?

Although the FDA has issued a new rule requiring that cigarette packages bear graphic images warning of the health risks associated with smoking, it has been enjoined from enforcing this requirement until October 2021 while a federal court considers a legal challenge brought by several tobacco companies. In their suit, the tobacco companies claim that the rule compels them to speak an "anti-tobacco" message in violation of the First Amendment. Which of the following statements about this legal challenge is true?

For many years, Sinclair Graphic Design has provided design and digital-printing services for indoor banners. The nylon banners, which come in a standard size, are used for a variety of purposes, including trade shows, sporting events, and other promotional activities. Three years ago, the company introduced a second printing and production service for outdoor banners that has become increasingly popular. The outdoor banners are a more complex product than the indoor banners, requiring weatherproof vinyl materials and a different printing process to improve the visibility of the text and graphics content. Moreover, outdoor banners are printed in smaller production runs because of less frequent orders; the setup of the printing equipment takes longer; and, since higher durability is needed to withstand the elements, more quality inspections are needed. Under the traditional costing approach, overhead costs are assigned to the products on the basis of direct labour-hours.

Despite the introduction of the new outdoor banners, profits have declined steadily over the past three years. Management is beginning to believe that the company’s costing system may be at fault. Unit costs for materials and labour for the two products follow:

3. Using the predetermined manufacturing overhead rates that you computed in (2) above, do the following:

a. Determine the total amount of manufacturing overhead cost that would be applied to each product using the ABC system. After these totals have been computed, determine the amount of overhead cost per unit of each product.

b. Compute the unit product cost of each product. (Round your answers to 2 decimal places.)

BACKGROUND

Laura Moore has recently left her job as a Graphic Designer to open her own Company; a Graphic Design Agency dedicated to the creation and design of apps for mobile devices. Laura has decided to be self-employed.

To do so, she will have her business premises, which belongs to her father, in Barcelona downtown and she will have to hire:

• A visual designer
• A developer
• An administrative assistant

1. To hire the administrative assistant, Laura has decided to offer an indefinite contract. It is her first employee that she will hire and this has a recognised degree of disability of 37%. Explain to Laura what bonuses and reductions could be applied in the hiring of the administrative and what type of contract should do exposing its main characteristics. You must prepare the work contract of the Administrative Assistant in the corresponding oficial model.

Once the contract has been drafted and completed according to Spanish regulations, you must specify in detail the differences of this if it had been made in the United Kingdom.

2. We know the salaries agreed with two of the workers.

It develops the different steps to follow to prepare the payroll of each of them and the financial nature of each of the ítems involved:

a. Administrative Assistant. Three-month seniority. He has an indefinite work contract, base salary: € 1,500. Collective bargaining: € 50.

He has two extraordinary six-month accrual pays and receives the mon 06/30 and 12/31 of each year for an amount equal to the base salary. He has a disability of 37% and is single without children. He has made two overtime hours that month at a rate of € 15/h.

b. Visual designer. 2-month seniority. He has a temporary contract.

Base salary: € 1,950. Collective bargaining: € 100. Productivity: € 6 / day. It has two extraordinary six-month accrual payments and receives them apportioned each month. He is married and has a 9-year-old son (his spouse receives income of over € 1,500/year).

Once you have developed all the steps to follow in each case and the amount of the items, make the offcial payroll of the administrative assistant.

3. A year and a half after being hired, the administrative officer requests a period of leave of six months due to personal reasons.

Make the severance taking into account that:

-    The leave is granted from July 25^th.

• The worker has 10 days of vacations pending.
• During the month of July he made a total of 6 overtime hours

You must specify the conditions of the periods of leave in Spain and compare them with the terms of one of the countries studied; UK, United States or Canada (you can choose the country you want).

Case1

1)Express design Ltd provide $5000 of graphic design service to one of its clents with credit terms of net 30 days on 3 June 2018. Revenue are considered earned when the service are provided. This mean that on June 3 express design will recognize the revenues even if it will not receive money until 3^rd of the july

Required

identify which account are affected and explain how they are affected

Prepare journal entry for the transaction on 3 June 2018

2) Express Design also sells design product. It has just sold and shipped $11000 worth of design product using the terms FOB., shipping point on 10 June 2018. The cost of good sold for this sale is 80% of the sales amount

Required

calculate the cost of good sold

Prepare journal entry for the transaction on 10 June 2018

3 Express Design also sells design product. It has just sold and shipped $11000 worth of design product using the terms FOB., shipping point on 10 June 2018. The cost of good sold for this sale is 80% of the sales amount. The term of the sale is 2/10 net 30

Required

explain the credit terms 2/10, net 30

what is net amount due on 15 June 2018

what the net amount due on 15 July 2018

A local graphic design company had purchased a large-scale printer 10 years ago for $180,000. The operations manager conducted a replacement study last year and she found that the current printer could be used for 4 more years before it is replaced. After two years, the owner of the company requested to repeat the replacement study for the printer. The current value for the printer is $22,000 but in order to keep it in service, a sensor should be replaced at a cost of $52,000 to be used for two more years. It is found that the current printer has an annual maintenance & operating cost of $18,000. The other option for the company is to purchase a new largescale printer with a total AW cost of $70,000 per year over 7 years the Economic Life Service. Determine when the printer should be replaced using an interest rate of 10%. work it in excel

Lori Matlock operates a graphic arts business. A trial balance on June 30, 2016, before recording any adjusting entries, appears as follows: Lori Matlock UNADJUSTED TRIAL BALANCE June 30, 2016 ACCOUNT TITLE DEBIT CREDIT 1 Cash 7,000.00 2 Prepaid Rent 18,000.00 3 Supplies 15,210.00 4 Office Equipment 46,120.00 5 Accumulated Depreciation-Equipment 4,000.00 6 Accounts Payable 1,800.00 7 Notes Payable 2,000.00 8 Capital Stock 50,000.00 9 Retained Earnings 24,350.00 10 Dividends 8,400.00 11 Revenue 46,850.00 12 Utilities Expense 2,850.00 13 Salaries Expense 19,420.00 14 Advertising Expense 12,000.00 15 Totals 129,000.00 129,000.00 Other Data a. The monthly rent is $600. b. Supplies on hand on June 30, 2016, amount to $1,290. c. The office equipment was purchased on June 1, 2015. On that date, it had an estimated useful life of ten years and a salvage value of $6,120. d. Interest owed on the note payable but not yet paid amounts to $50. e. Salaries of $620 are owed but unpaid to employees at the end of the month.

Required: 1. Prepare in general journal form the necessary adjusting entries at June 30, 2016. 2. Note that the unadjusted trial balance reports a credit balance in Accumulated Depreciation—Equipment of $4,000. Explain why the account contains a balance of $4,000 on June 30, 2016.