Question 1
I need help with the following assignment questions: Exercise 8-2: Illustrate the effects on the accounts and financial statements of recording the following selected transactions of Sid's Leather Co.: Part 1 Apr. 15. Paid the first installment of the estimated income tax for the current fiscal year ending December 31, $29,000. No entry had been made to record the liability. Part 2 Dec. 31. Recorded the estimated income tax liability for the year just ended and the deferred income tax liability, based on the April 15 transaction and the following data: Income tax rate 40% Income before income tax $300,000 Taxable income according to tax return $280,000 Assume that the June 15 and September 15 installments of $29,000 were also paid. Exercise 8-5: Fungus Audio Works Inc. warrants its products for one year. The estimated product warranty is 3% of sales. Assume that sales were $680,000 for January. In February, a customer received warranty repairs requiring $4,200 of parts. a. Determine the warranty liability at January 31, the end of the first month of the current year. b. What accounts are decreased for the warranty work provided in February? Exercise 8-11: According to a summary of the payroll of Apline Publishing Co., $460,000 was subject to the 7.5% FICA tax. Also, $39,000 was subject to state and federal unemployment taxes. a. Calculate the employer's payroll taxes, using the following rates: state unemployment, 4.3%; federal unemployment, 0.8%. b. Illustrate the effects on the accounts and financial statements of recording the accrual of payroll taxes.
Question 2
1. (Points: 5) A population of N = 6 scores has SX = 48. What is the population mean? (Assume S = the summation symbol. a. 288 b. 48 c. 12 d. 8 Save Answer 2. (Points: 5) For the population of scores shown in the frequency distribution table, the mean is_____. X = 5 f = 2, X = 4 f = 1, X = 3 f = 4, X = 2 f = 3, X = 1 f = 2 a. 15/5 = 3 b. 12/12 = 1.25 c. 34/5 = 6.68 d. 34/12 = 2.83 Save Answer 3. (Points: 5) A population has a mean of 4 and SX = 48. How many scores are in this population? (Assume S = the summation symbol) a. 192 b. 48 c. 12 d. cannot be determined from the information given Save Answer 4. (Points: 5) After 5 points are added to every score in a distribution, the mean is calculated and the new mean is found to be = 30. What was the value of the mean for the original distribution? a. 25 b. 30 c. 35 d. cannot be determined from the information given Save Answer 5. (Points: 5) Changing the value of a score in a distribution will always change the value of the ____. a. mean b. median c. mode d. all of the choices are correct Save Answer 6. (Points: 5) A sample has a mean of M = 72. If one person with a score of X = 58 is removed from the sample, what effect will it have on the sample mean? a. The sample mean will increase. b. The sample mean will decrease. c. The sample mean will remain the same. d. cannot be determined from the information given Save Answer 7. (Points: 5) What is the value of the median for the following set of scores? Scores: 1, 3, 3, 5, 6, 7, 8, 23 a. 5 b. 5.5 c. 6 d. 54/8 = 7 Save Answer 8. (Points: 5) What is the median for the following set of scores? Scores: 1, 2, 5, 6, 17 a. 3.5 b. 5 c. 5.5 d. 6 Save Answer 9. (Points: 5) A teacher gave a reading test to a class of 5th-grade students and computed the mean, median, and mode for the test scores. Which of the following statements cannot be an accurate description of the scores? a. The majority of the students had scores above the mean. b. The majority of the students had scores above the median. c. The majority of the students had scores above the mode. d. All of the other options are false statements. Save Answer 10. (Points: 5) One item on a questionnaire asks, "How many siblings (brothers and sisters) did you have when you were a child?" A researcher computes the mean, the median, and the mode for a set of n = 50 responses to this question. Which of the following statements accurately describes the measures of central tendency? a. Because the scores are all whole numbers, the mean will be a whole number. b. Because the scores are all whole numbers, the median will be a whole number. c. Because the scores are all whole numbers, the mode will be a whole number. d. All of the other options are correct descriptions. Save Answer 11. (Points: 5) What is the mode for the following sample of n = 8 scores? Scores: 0, 1, 1, 2, 2, 2, 2, 3 a. 2 b. 2.5 c. 13/8 = 1.625 d. 5 Save Answer 12. (Points: 5) One sample of n = 4 scores has a mean of M = 10, and a second sample of n = 8 scores has a mean of M = 20. If the two samples are combined, the mean for the combined sample will be ____. a. equal to 15 b. greater than 15 but less than 20 c. less than 15 but more than 10 d. None of the other choices is correct. Save Answer 13. (Points: 5) One sample has n = 10 scores and M = 30. A second sample has n = 20 scores and M = 40. If the two samples are combined, then the combined sample will have a mean ____. a. halfway between 30 and 40. b. closer to 30 than it is to 40. c. closer to 40 than it is to 30. d. None of the other choices is correct. Save Answer 14. (Points: 5) Which of the following is true for a symmetrical distribution? a. The mean, median, and mode are all equal. b. mean = median c. mean = mode d. median = mode Save Answer 15. (Points: 5) For a negatively skewed distribution with a mode of X = 25 and a mean of M = 20, the median is probably ____. a. greater than 25 b. less than 20 c. between 20 and 25 d. cannot be determined from the information given Save Answer 16. (Points: 5) For a negatively skewed distribution with a mode of X = 25 and a median of 20, the mean is probably ____. a. greater than 25 b. less than 20 c. between 20 and 25 d. cannot be determined from the information given Save Answer 17. (Points: 5) A distribution is positively skewed. Which is the most probable order for the three measures of central tendency? a. mean = 40, median = 50, mode = 60 b. mean = 60, median = 50, mode = 40 c. mean = 40, median = 60, mode = 50 d. mean = 50, median = 50, mode = 50 Save Answer 18. (Points: 5) A researcher is measuring problem-solving times for a sample of n = 20 children. However, one of the children fails to solve the problem, so the researcher has an undetermined score. What is the best measure of central tendency for these data? a. the mean b. the median c. the mode d. Central tendency cannot be determined for these data. Save Answer 19. (Points: 5) A set of individuals is measured on a nominal scale. To determine the central tendency for the resulting measurements, a researcher should use the ______. a. mean b. median c. mode d. It is impossible to determine central tendency for nominal measurements. Save Answer 20. (Points: 5) For an extremely skewed distribution of scores, the best measure of central tendency would be ____. a. the mean b. the median c. the mode d. Central tendency cannot be determined for a skewed distribution. A sample consists of n=16 scores. How many of the scores are used to calculate the sample variance? a. 2 b. 8 c. 15 d. all 16 Save Answer 2. (Points: 5) The value for the interquartile range is determined by _________. a. the extreme scores (both high and low) in the distribution b. the extremely high scores in the distribution c. the middle scores in the distribution d. all the scores in the distribution Save Answer 3. (Points: 5) Scores from a statistics exam are reported as deviation scores. Which of the following deviation scores indicated a higher position in the class distribution. a. +8 b. 0 c. -8 d. can not determine without more information Save Answer 4. (Points: 5) What value is obtained if you add all the deviation scores for a population, then divide the sum by N? a. the population variance b. the population standard deviation c. you always will get zero d. None of the other choices is correct Save Answer 5. (Points: 5) The symbol SS stands for the _________. a. the sum of squared scores b. sum of squared deviations c. sum of the scores squared d. sum of the deviiations squared Save Answer 6. (Points: 5) Which of the following symbols identifies the sample standard deviation a. s b. s2 (squared) c. the "theta" symbol d. the "theta" symbol squared Save Answer 7. (Points: 5) Which of the following symbols identifies the population variance? a. s b. s2 (squared) c. theta symbol d. sigma symbol squared Save Answer 8. (Points: 5) For a population of N = 10 scores, you first measure the distance between each score and the mean, then square each distance and find the sum of the squared distances. At this point you have calculated __________. a. SS b. the population variance c. the population standard deviation d. he other choices is correct Save Answer 9. (Points: 5) The sum of the squared deviation scores is SS = 60 for a sample of n = 5 scores. What is the variance for this sample? a. 60/5 = 12 b. 60/4 = 15 c. 5(60) = 300 d. 4(60) = 240 Save Answer 10. (Points: 5) What does it mean to say that the sample variance is an unbiased statistic? a. No sample will have a variance that is exactly equal to the poplation variance b. Each sample will have a variance that is equal to the population variance. c. If many different samples are selected, the average of the sample variances will be equal to the population variance d. If many different samples are selected, the sample variances will consistently underestimate the population variance Save Answer 11. (Points: 5) A population of scores has m = 50 and standard deviation = 10. If 5 points are added to every score in the population, then the new mean and standard deviation would be ____. Assume that m = the "mu" symbol. a. m=50 and standard deviation 10 b. m = 55 and standard deviation = 10 c. m = 50 and standard deviation = 15 d. m = 55 and standard deviation = 15 Save Answer 12. (Points: 5) A population of scores has m = 50 and standard deviation = 10. If every score in the population is multiplied by 2, then the new mean and standard deviation would be ____. Assume the m = the "mu" symbol. a. m = 50 and standard deviation = 10 b. m = 100 and standard deviation = 10 c. m = 50 and standard deviation = 20 d. m = 100 and standard deviation = 20 Save Answer 13. (Points: 5) A population has m = 40 and standard deviation = 8. If each score is divided by 2, the new standard deviation will be ____. Assume m = the "mu" symbol. a. 20 b. 8 c. 4 d. insufficient information, cannot be determined Save Answer 14. (Points: 5) A population of scores has m = 50 and s = 12. If you subtract five points from every score in the population, then the new standard deviation will be ____. Assume that m = the "mu" symbol. a. 7 b. 12 c. 45 d. insufficient information, cannot be determined Save Answer 15. (Points: 5) A population of N = 10 scores has a mean of 24 with SS = 160, a variance of 16, and a standard deviation of 4. For this population, S(X- m)2 (m = "mu" symbol and equation is squared) has a value of ____. a. 0 b. 4 c. 16 d. 160 Save Answer 16. (Points: 5) What is the value of SS for the following set of scores? Scores: 1, 1, 1, 3 a. 3 b. 6 c. 12 d. 36 Save Answer 17. (Points: 5) What is the variance for the following population of scores? 5,2,5,4 a. 6 b. 2 c. 1.5 d. 1.22 Save Answer 18. (Points: 5) Which set of scores has the smallest standard deviation? a. 11, 17, 31, 53 b. 5, 11, 42, 22 c. 145, 143, 145, 147 d. 27, 105, 10, 80 Save Answer 19. (Points: 5) For a particular sample, the largest distance (deviation) between a score and the mean is 11 points. The smallest distance between a score and the mean is 4 points. Therefore, the standard deviation ____. a. will be less than 4 b. will be between 4 and 11 c. will be greater than 11 d. It is impossible to say anything about the standard deviation. Save Answer 20. (Points: 5) The smallest score in a population is X = 5 and the largest score is X = 10. Based on this information, you can conclude that ____. a. the population mean is somewhere between 5 and 10 b. the population standard deviation is smaller than 6 c. the population mean is between 5 and 10, and the standard deviation is less than 6 d. None of the other choices are correct. 1. (Points: 5) In a distribution with mean = 50 and standard deviation = 10, a score of X = 55 corresponds to a z-score of z = +0.50. a. True b. False Save Answer 2. (Points: 5) In a distribution with mean = 50 and standard deviation = 10, a score of X = 30 corresponds to a z-score of z = -3.00. a. True b. False Save Answer 3. (Points: 5) In a distribution with mean = 80 and standard deviation = 20, a score of X = 85 corresponds to a z-score of z = 1.50. a. True b. False Save Answer 4. (Points: 5) In a distribution with mean = 40 and standard deviation = 12, a z-score of z = -0.50 corresponds to a score of X = 46. a. True b. False Save Answer 5. (Points: 5) In a distribution with standard deviation = 8, a score of X = 64 corresponds to z = -0.50. The mean for this population is 60. a. True b. False Save Answer 6. (Points: 5) On an exam, Tom scored 8 points above the mean and had a z-score of +2.00. The standard deviation for the set of exam scores must be 4. a. True b. False Save Answer 7. (Points: 5) If a population of N = 10 scores is transformed into z-scores, there will be five positive z-scores and five negative z-scores. a. True b. False Save Answer 8. (Points: 5) If a distribution of scores is transformed into z-scores then the sum of the positive z-scores will be exactly equal to the sum of the negative z-scores (ignoring the signs). a. True b. False Save Answer 9. (Points: 5) Transforming X values into z-scores will not change the shape of the distribution. a. True b. False Save Answer 10. (Points: 5) Whenever a population is transformed into z-scores, the mean of the z-scores is equal to 0. a. True b. False Save Answer 11. (Points: 5) A z-score of z = -2.00 indicates a position in a distribution ______. a. above the mean by 2 points b. above the mean by a distance equal to 2 standard deviations c. below the mean by 2 points d. below the mean by a distance equal to 2 standard deviations Save Answer 12. (Points: 5) For a population with mean = 80 and standard deviation = 10, the z-score corresponding to X = 85 would be ______. a. +0.50 b. +1.00 c. +2.00 d. +5.00 Save Answer 13. (Points: 5) For a population with mean = 60 and standard deviation = 8, the X value corresponding to z = -0.50 would be ______. a. -4 b. 56 c. 64 d. 59.5 Save Answer 14. (Points: 5) A population of scores has mean = 44. In this population, an X value of 40 corresponds to z = -0.50. What is the population standard deviation? a. 2 b. 2 c. 8 d. 6 Save Answer 15. (Points: 5) A population of scores has mean = 50. In this population, an X value of 58 corresponds to z = 2.00. What is the population standard deviation? a. 2 b. 4 c. 8 d. 16 Save Answer 16. (Points: 5) A population of scores has standard deviation = 20. In this population, a score of X = 80 corresponds to z = +0.25. What is the population mean? a. 70 b. 75 c. 85 d. 90 Save Answer 17. (Points: 5) A z-score of z = -0.25 indicates a location that is ______. a. at the center of the distribution b. slightly below the mean c. far below the mean in the extreme left-hand tail of the distribution d. The location depends on the mean and standard deviation for the distribution. Save Answer 18. (Points: 5) A population with mean = 85 and standard deviation = 12 is transformed into z-scores. After the transformation, the population of z-scores will have a mean of _____. a. 85 b. 1.00 c. 0 d. cannot be determined from the information given Save Answer 19. (Points: 5) A distribution with mean = 35 and standard deviation = 8 is being standardized so that the new mean and standard deviation will be mean = 50 and standard deviation = 10. When the distribution is standardized, what value will be obtained for a score of X = 39 from the original distribution? a. X = 54 b. X = 55 c. X = 1.10 d. impossible to determine without more information Save Answer 20. (Points: 5) Using z-scores, a population with mean = 37 and standard deviation = 8 is standardized so that the new mean is mean = 50 and standard deviation = 10. How does an individual's z-score in the new distribution compare with his/her z-score in the original population? a. new z = old z + 13 b. new z = (10/6)(old z) c. new z = old z d. cannot be determined with the information given 1. (Points: 5) As defined in the text, random sampling requires that each individual in the population has an equal chance of being selected. a. True b. False Save Answer 2. (Points: 5) As defined in the text, random sampling requires sampling with replacement. a. True b. False Save Answer 3. (Points: 5) A jar contains 10 red marbles and 20 blue marbles. If you take a random sample of two marbles from this jar, then the probability that the second marble is blue is exactly equal to the probability that the first marble is blue. a. True b. False Save Answer 4. (Points: 5) A jar contains 10 red marbles and 20 blue marbles. If you take a random sample of two marbles from this jar, then the probability that the second marble is blue depends on the color of the first marble. a. True b. False Save Answer 5. (Points: 5) For any normal distribution, the mean and the median will have the same value. a. True b. False Save Answer 6. (Points: 5) The Unit Normal Table can be used for any normal distribution, no matter what the values are for the mean and standard deviation. a. True b. False Save Answer 7. (Points: 5) The Unit Normal Table lists proportions for any distribution, provided that the distribution has been transformed into z-scores. a. True b. False Save Answer 8. (Points: 5) When determining the probability of selecting a score that is below the mean, you will get a negative value for probability. a. True b. False Save Answer 9. (Points: 5) For any normal distribution, the proportion corresponding to scores greater than z = +1.00 is exactly equal to the proportion corresponding to scores less than z = -1.00. a. True b. False Save Answer 10. (Points: 5) For any normal distribution, the proportion in the tail beyond z = -2.00 is p = -0.0228. a. True b. False Save Answer 11. (Points: 5) For a normal distribution, the proportion in the tail beyond z = 1.50 is p = 0.0668. Based on this information, what is the proportion in the tail beyond z = -1.50? a. 0.0668 b. -0.0668 c. 0.9332 d. -0.9332 Save Answer 12. (Points: 5) What proportion of a normal distribution is located in the tail beyond z = 2.00? a. 1.14% b. 2% c. 2.28% d. 97.72% Save Answer 13. (Points: 5) What proportion of the scores in a normal distribution correspond to z-scores greater than +1.04?. a. 0.3508 b. 0.1492 c. 0.6492 d. 0.8508 Save Answer 14. (Points: 5) What proportion of the scores in a normal distribution have z-scores less than z = 0.86? a. 0.3051 b. 0.1949 c. 0.8051 d. 0.6949 Save Answer 15. (Points: 5) What proportion of the scores in a normal distribution have z-scores less than z = -1.32? a. 0.0934 b. 0.4066 c. 0.5934 d. 0.9066 Save Answer 16. (Points: 5) What proportion of the scores in a normal distribution have z-scores greater than z = -1.25? a. 0.1056 b. -0.1056 c. 0.8944 d. -0.8944 Save Answer 17. (Points: 5) For a normal distribution, what z-score value separates the highest 10% of the distribution from the lowest 90%? a. z = 0.90 b. z = -0.90 c. z = 1.28 d. z = -1.28 Save Answer 18. (Points: 5) For a normal distribution with a mean of mean = 40 and standard deviation = 4, what is the probability of sampling an individual with a score greater than 46? a. 0.0668 b. 0.4452 c. 0.9332 d. 0.0548 Save Answer 19. (Points: 5) For a normal distribution with a mean of mean = 60 and standard deviation = 8, what is the probability of selecting an individual with a score less than 54? a. 0.2266 b. 0.7734 c. 0.7266 d. 0.2734 Save Answer 20. (Points: 5) A normal distribution has a mean of mean = 500 and standard deviation = 100. What score is needed to place in the top 20% of the distribution? a. 520 b. 580 c. 584 d. 700 wo samples probably will have different means even if they are both the same size and they are both selected from the same population. a. True b. False Save Answer 2. (Points: 5) According to the Central Limit Theorem, the expected value for a sample mean approaches zero as the sample size approaches infinity. a. True b. False Save Answer 3. (Points: 5) The mean of the distribution of sample means is called the standard error of the mean. a. True b. False Save Answer 4. (Points: 5) The standard error of the mean can never be greater than the standard deviation of the population from which the sample is selected. a. True b. False Save Answer 5. (Points: 5) On average, a sample of n = 100 scores will provide a better estimate of the population mean than a sample of n = 50 scores. a. True b. False Save Answer 6. (Points: 5) Assuming that all other factors are held constant, as the population variability increases, the standard error also increases. a. True b. False Save Answer 7. (Points: 5) A sample of n = 25 scores has a standard error of 2. This sample was selected from a population with mean = 50. a. True b. False Save Answer 8. (Points: 5) A population has mean = 50 and standard deviation = 10. For a sample of n = 4 scores from this population, a sample mean of = 55 would be considered an extreme value. a. True b. False Save Answer 9. (Points: 5) A population has mean = 50 and standard deviation = 10. For a sample of n = 100 scores from this population, a sample mean = 55 would be considered an extreme value. a. True b. False Save Answer 10. (Points: 5) A researcher obtained mean = 33 for a sample of n = 16 scores selected from a population with mean = 30 and standard deviation = 12. This sample mean corresponds to a z-score of z = 1.00. a. True b. False Save Answer 11. (Points: 5) The mean of the distribution of sample means is called ______. a. the expected value of the sample mean b. the standard error of the mean c. the sample mean d. the central limit mean Save Answer 12. (Points: 5) The standard deviation of the distribution of sample means is called ______. a. the expected value of the sample mean b. the standard error of the mean c. the sample standard deviation d. the central limit standard deviation Save Answer 13. (Points: 5) When the sample size is greater than n = 30 ______. a. the distribution of sample means will be approximately normal b. the sample mean will be equal to the population mean c. all of the above d. none of the above Save Answer 14. (Points: 5) The standard error of the mean provides a measure of ______. a. the maximum possible discrepancy between the sample and population means b. the minimum possible discrepancy between the sample and population means c. the exact discrepancy between each specific sample mean and the population mean d. none of the above Save Answer 15. (Points: 5) As sample size increases, the expected value of the sample mean ______. a. also increases b. decreases c. stays constant d. approaches the value of the population mean Save Answer 16. (Points: 5) As sample size increases, the standard error of the mean ______. a. also increases b. decreases c. stays constant d. approaches the value of the population mean Save Answer 17. (Points: 5) For a population with mean = 80 and standard deviation = 20, the distribution of sample means based on n = 16 will have an expected value of ______. a. 5 b. 15 c. 20 d. 80 Save Answer 18. (Points: 5) In general, the standard error of the mean gets smaller as ______. a. sample size and standard deviation both increase b. sample size and standard deviation both decrease c. sample size increases and standard deviation decreases d. sample size decreases and standard deviation increases Save Answer 19. (Points: 5) A random sample of n = 4 scores is obtained from a normal population with mean = 20 and standard deviation = 4. What is the probability of obtaining a mean greater than 22 for this sample? a. 0.50 b. 1.00 c. 0.1587 d. 0.3085 Save Answer 20. (Points: 5) If sample size (n) is held constant, the standard error will _______ as the population variance increases. a. increase b. decrease c. stay constant d. cannot answer with the information given
Question 3
"P2-5A The Lake Theater opened on April 1. All facilities were completed on March 31. At this time, the ledger showed: No. 101 Cash $6,000; No. 140 Land $10,000; No. 145 Buildings (concession stand, projection room, ticket booth, and screen) $8,000; No. 157 Equipment $6,000; No. 201 Accounts Payable $2,000; No. 275 Mortgage Payable $8,000; and No. 311 Common Stock $20,000. During April, the following events and transactions occurred. Apr. 2 Paid film rental of $800 on first movie. 3 Ordered two additional films at $1,000 each. 9 Received $2,800 cash from admissions. 10 Made $2,000 payment on mortgage and $1,000 for accounts payable due. 11 Lake Theater contracted with R. Wynns Company to operate the concession stand. Wynns is to pay 17% of gross concession receipts (payable monthly) for the right to operate the concession stand. 12 Paid advertising expenses $500. 20 Received one of the films ordered on April 3 and was billed $1,000. The film will be shown in April. 25 Received $5,200 cash from admissions. 29 Paid salaries $2,000. 30 Received statement from R.Wynns showing gross concession receipts of $1,000 and the balance due to The Lake Theater of $170 ($1,000 ? 17%) for April. Wynns paid one-half of the balance due and will remit the remainder on May 5. 30 Prepaid $900 rental on special film to be run in May. In addition to the accounts identified above, the chart of accounts shows: No. 112 Accounts Receivable, No. 136 Prepaid Rentals, No. 405 Admission Revenue, No. 406 Concession Revenue, No. 610 Advertising Expense, No. 632 Film Rental Expense, and No. 726 Salaries Expense. Instructions (a) Journalize the April transactions. (If there is no transaction, enter No entry as the description and 0 for the amount.) List amounts from largest to smallest eg 10, 5, 3, 2. If amounts are the same, list alphabetically.) Date Description/Account Debit Credit Apr. 2 (Paid film rental.) Apr. 3 (Ordered additional films.) Apr. 9 (Received cash for services provided.) Apr. 10 (Made payments on mortgage & acc. payable.) Apr. 11 (Contract to operate concession stand.) Apr. 12 (Paid advertising expenses.) Apr. 20 (Rented film on account.) Apr. 25 (Received cash for services provided.) Apr. 29 (Paid salaries expense.) Apr. 30 (Received cash & bal. on acc. for concession revenue.) Apr. 30 (Paid cash for future film rentals.) (b) Enter the beginning balances in the ledger as of April 1. Post the April journal entries to the ledger. Assume that all entries are posted from page 1 of the journal. (If answer is zero, please enter 0. Do not leave any fields blank.) Cash No. 101 Date Explanation Ref. Debit Credit Balance Apr. 1 Balance P 2 J1 9 J1 10 J1 12 J1 25 J1 29 J1 30 J1 30 J1 Accounts Receivable No. 112 Date Explanation Ref. Debit Credit Balance Apr. 30 J1 Prepaid Rentals No. 136 Date Explanation Ref. Debit Credit Balance Apr. 30 J1 Land No. 140 Date Explanation Ref. Debit Credit Balance Apr. 1 Balance P Buildings No. 145 Date Explanation Ref. Debit Credit Balance Apr. 1 Balance P Equipment No. 157 Date Explanation Ref. Debit Credit Balance Apr. 1 Balance P Accounts Payable No. 201 Date Explanation Ref. Debit Credit Balance Apr. 1 Balance P 10 J1 20 J1 Mortgage Payable No. 275 Date Explanation Ref. Debit Credit Balance Apr. 1 Balance P 10 J1 Common Stock No. 301 Date Explanation Ref. Debit Credit Balance Apr. 1 Balance P Admission Revenue No. 405 Date Explanation Ref. Debit Credit Balance Apr. 9 J1 25 J1 Concession Revenue No. 406 Date Explanation Ref. Debit Credit Balance Apr. 30 J1 Advertising Expense No. 610 Date Explanation Ref. Debit Credit Balance Apr. 12 J1 Film Rental Expense No. 632 Date Explanation Ref. Debit Credit Balance Apr. 2 J1 20 J1 Salaries Expense No. 726 Date Explanation Ref. Debit Credit Balance Apr. 29 J1 (c) Prepare a trial balance on April 30, 2008. (If answer is zero, please enter 0. Do not leave any fields blank.)LAKE THEATER Trial Balance April 30, 2008 Debit Credit Cash $ $ Accounts Receivable Prepaid Rentals Land Buildings Equipment Accounts Payable Mortgage Payable Common Stock Admission Revenue Concession Revenue Advertising Expense Film Rental Expense Salaries Expense $ $
Question 4
Please give an explanation on how you got the answer/solution for each problem. Thank you! Ch 8 6. Calculating NPV. Suppose the firm uses the NPV decision rule. At a required return of 10 percent, should the firm accept this project? What if the required return was 21 percent? Year 0 Cash Flow = -$145,000 Year 1 Cash Flow = $71,000 Year 2 Cash Flow = $68,000 Year 3 Cash Flow = $ 52,000 7. Calculating NPV and IRR. A project that provides annual cash flows of $2,150 for nine years costs $8,900 today. Is this a good project if the required return is 8 percent? What if it?s 24 percent? At what discount rate would you be indifferent between accepting the project and rejecting it? 15. Comparing Investment Criteria. Consider the following two mutually exclusive projects: Cash Flow A Cash Flow B Year 0 Cash Flow = - $415,000 Cash Flow = -$35,000 Year 1 Cash Flow = 49,000 Cash Flow = 19,400 Year 2 Cash Flow = 57,000 Cash Flow = 14,300 Year 3 Cash Flow = 74,000 Cash Flow = 13,600 Year 4 Cash Flow = 530,000 Cash Flow = 10,400 Whichever project you choose, if any, you require a 13 percent return on your investment. a) If you apply the payback criterion, which investment will you choose? Why? b) If you apply the NPV criterion, which investment will you choose? Why? c) If you apply the IRR criterion, which investment will you choose? Why? d) If you apply the profitability index criterion, which investment will you choose? Why? e) Based on your answers in (a) through (d), which project will you finally choose? Why? 16. NPV and IRR. Higher Ground Company is presented with the following two mutally exclusive projects. The required return for both projects is 15 percent. Year Project M Project N Year 0 -$145,000 -$350,000 Year 1 63,000 155,000 Year 2 81,000 175,000 Year 3 72,000 140,000 Year 4 58,000 105,000 a) What is the IRR for each project? b) What is the NPV for each project? c) Which, if either, of the projects should the company accep? Ch. 9 1. Relevant Cash Flows. Kenny, Inc., is looking at setting up a new manufacturing plant in South Park. The company bought some land six years ago for $7 million in anticipation of using it as a warehouse and distribution site, but the company has since decided to rent facilities elsewhere. The land would net $9.8 million if it were sold today. The company now wants to build its new manufacturing plant on this land; the plant will cost $21 million to build, and the site requires $850,00 worth of grading before it is suitable for construction. What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating this project? Why? 9. Calculating Project OCF. Cochrane, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.1 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be worthless. The project is estimated to generate $2,150,000 in annual sales, with costs of $1,140,000. If the tax rate is 35 percent, what is the OCF for this project? 10. Calculating Project NPV. In the previous problem, suppose the required return on the project is 14 percent. What is the project?s NPV? 24. Project Analysis. McGilla Golf has decided to sell a new line of golf clubs. The clubs will sell for $730 per set and have a variable cost of $360 per set. The company has spent $150,000 for a marketing study that determined the company will sell 75,000 sets per year for seven years. The marketing study also determined that the company will lose sales of 8,500 sets per year of its high-priced clubs. The high-priced clubs sell at $1,200 and have variable costs of $540. The company will also increase sales of its cheap clubs by 11,000 sets per year. The cheap clubs sell for $340 and have variable costs of $125 per set. The fixed costs each year will be $11,200,000. The company has also spent $1,000,000 on research and development for the new clubs. The plant and equipment required will cost $24,500,000 and will be depreciated on a straight-line basis. The new clubs will also require an increase in net working capital of $1,500,000 that will be returned at the end of the project. The tax rate is 40 percent, and the cost of capital is 14 percent. Calculate the payback period, the NPV, and the IRR.
Question 5
? What should the vision statement be for the coffee shop? What should be the mission statement for the organization? ? What are good short and long term goals for the coffee shop? Explain how they will be met. ? After studying the simulation, what management improvements do you feel are appropriate for Tim to make to help his business be successful? ? Are there any state or federal compliance issues that Tim should address based on your observations (other than HR issues)? ? What are the social responsibility considerations, if any? 2) HR Analysis: Human Resources: Look in the file cabinet in Unit 9 Final Project scenario and then: ? Analyze the current HR information provided. ? Either map (using a table) or outline the HR laws you identify with which Tim?s Coffee Shoppe is in compliance. ? Detail what improvements Tim should make to his human resource management and state why. 3) Marketing Analysis: Analyze the marketing survey data from the file cabinet in Unit 9 Final project scenario and report your findings in your: ? SWOT Analysis ? Create a SWOT Analysis 4) Economic environment, Finance and Accounting: ? Discuss the economic environment in the retail industry and its impact on Tim?s business success. ? Interpret the Balance Sheet and Profit and Loss Statement in view of your knowledge of accounting/finance principles (as reviewed in Unit 6). ? Describe any problems and provide detailed directions of action items for improvement; what needs to be done and when. http://extmedia.kaplan.edu/business/Media/AB299/Tims_Coffee_Shop/index.html
