Question 1
Julie Molony opened Julie?s Maids Cleaning Service Inc. on July 1, 2008. During July, the company completed the following transactions. July 1 Issued $14,000 of common stock for $14,000 cash. 1 Purchased a used truck for $10,000, paying $3,000 cash and the balance on account. 3 Purchased cleaning supplies for $800 on account. 5 Paid $1,800 on a one-year insurance policy, effective July 1. 12 Billed customers $3,800 for cleaning services. 18 Paid $1,000 of amount owed on truck, and $400 of amount owed on cleaning supplies. 20 Paid $1,600 for employee salaries. 21 Collected $1,400 from customers billed on July 12. 25 Billed customers $1,500 for cleaning services. www.wiley.com/ c ol lege/wey gan dt Financial Reporting Problem PepsiCo, Inc. BYP4-1 Appendix A at the end of this textbook presents the financial statements of PepsiCo. Instructions Answer the following questions using the Consolidated Balance Sheet and the Notes to Consolidated Financial Statements section. (a) What were PepsiCo?s total current assets at December 31, 2005 and December 25, 2004? (b) Are assets that PepsiCo included under current assets listed in proper order? Explain. (c) How are PepsiCo?s assets classified? BROADENING YOUR PERSPECTIVE FINANCIAL REPORTING AND ANALYSIS 190 Chapter 4 Completing the Accounting Cycle CONTINUING COOKIE CHRONICLE (Note: This is a continuation of the Cookie Chronicle from Chapters 1 through 3.) CCC4 Natalie had a very busy December. At the end of the month after journalizing and posting the December transactions and adjusting entries, Natalie prepared an adjusted trial balance. Using that information, she wants to prepare financial statements for the year-end, closing entries, and a post-closing trial balance. 31 Paid gas and oil for the month on the truck, $400. 31 Paid a $600 cash dividend. The chart of accounts for Julie?s Maids Cleaning Service contains the following accounts:No. 101 Cash, No. 112 Accounts Receivable, No. 128 Cleaning Supplies, No. 130 Prepaid Insurance, No. 157 Equipment, No. 158 Accumulated Depreciation?Equipment, No. 201 Accounts Payable, No. 212 Salaries Payable,No. 311 Common Stock,No. 320 Retained Earnings,No. 332 Dividends, No. 350 Income Summary, No. 400 Service Revenue, No. 633 Gas & Oil Expense, No. 634 Cleaning Supplies Expense, No. 711 Depreciation Expense, No. 722 Insurance Expense, and No. 726 Salaries Expense. Instructions (a) Journalize and post the July transactions. Use page J1 for the journal. (b) Prepare a trial balance at July 31 on a worksheet. (c) Enter the following adjustments on the worksheet, and complete the worksheet. (1) Earned but unbilled fees at July 31 were $1,300. (2) Depreciation on equipment for the month was $200. (3) One-twelfth of the insurance expired. (4) An inventory count shows $100 of cleaning supplies on hand at July 31. (5) Accrued but unpaid employee salaries were $500. (d) Prepare the income statement and a retained earnings statement for July, and a classified balance sheet at July 31, 2008. (e) Journalize and post the adjusting entries. Use page J2 for the journal. (f ) Journalize and post the closing entries, and complete the closing process. Use page J3 for the journal. (g) Prepare a post-closing trial balance at July 31. (b) Trial balance totals $25,700 (d) Net income $3,050 Total assets $23,350 (g) Trial balance totals $23,550,I only need the appendix G completed not all the others that were in the post you had, if this amount is not to your standard, please let me know, thank you
Question 2
Each year a large university collects data on average beginning monthly salaries of its business school graduates. A random sample of 125 recent graduates with bachelor?s degrees in marketing has a mean starting monthly salary of $1635 with a standard deviation of $288. Use these data to obtain an estimate for the mean starting monthly salary of all recent graduates with bachelor?s degrees in marketing from this university. Assume that you want the estimate to be incorrect at most 10 percent of the time. 4. (7) Ten students in a graduate program were randomly selected. Their grade point averages (GPAs) when they entered the program were between 3.5 and 4.0. The following data were obtained regarding their GPAs on entering the program and their current GPAs. Entering GPA Current GPA 3.5 3.5 3.8 3.6 3.9 3.5 3.7 3.9 4.0 3.5 4.0 3.7 3.6 3.6 3.9 3.6 3.7 4.0 4.0 3.9 a. Test the appropriate hypotheses and determine the linear regression model for the data. b. Graph the regression model. c. How well does the model represent the relationship between the variables? d. What does the slope for the regression model represent? e. Use the regression equation to predict the current GPA of a student with an entering GPA of 3.6. 5. (6) Classify the following studies as descriptive or inferential and explain your reasons: a. A study on stress concluded that more than half of all Americans older than 18 have at least ?moderate? stress in their lives. The study was based on responses of 34,000 households to the 1985 National Health Interview Survey. b. A report in a farming magazine indicates that more than 95% of the 400 largest farms in the nation are still considered family operations. 6. (7) The age distribution of students at a community college is given below: Age in Years Number of Students (f) Under 21 4946 21 - 25 4808 26 - 30 2673 31 - 35 29036 Over 35 525 Suppose a student is selected at random. Let A = the event the student is under 21 B = the event the student?s age is between 21 and 25 C = the event the student?s age is between 26 and 30 D = the event the student?s age is between 31 and 35 E = the event the student?s age is over 35 a. Find P (B) b. Find P (E) c. Find P (C or D) d. Find P (A and B) e. Find P(C/D) 7. (6) The average age of freshman college students is 18.5 years, with a standard deviation of 0.4 years. a. Let x? denote the mean age of a random sample of n = 50 students. Determine the mean and standard deviation of the random variable x?. b. Repeat part (a) with n = 100 students. 8. (6) An insurance company stated that in 1987, the average yearly car insurance cost for a family in the U.S. was $1188. In the same year, a random sample of 37 families in California resulted in a mean cost of $1228 with a standard deviation of $21.00. Does this suggest that the average insurance cost for a family in California in 1987 exceeded the stated national average? a. State the appropriate hypotheses for this question. b. Test your hypotheses at a significance level of 5%. Interpret your results. 9. (6) Thirty-five fourth-grade students were asked the traditional question ?what do you want to be when you grow up?. The responses are summarized in the following table: Employment Frequency Relative Frequency Teacher 8 0.229 Doctor 6 0.171 Scientist 3 0.086 Police Officer 9 0.257 Athlete 9 0.257 a. Construct a pie chart for relative frequencies b. Construct a bar graph for the relative frequencies c. Construct a pareto chart and explain the finding 10. (6) The random variable x is the number of houses sold by a realtor in a single month at the real-estate office. Its probability distribution is: Houses sold (x) Probability P(x) 0 0.09 1 0.24 2 0.21 3 0.17 4 0.03 5 0.15 6 0.09 7 0.02 a. Compute the mean of the random variable. b. Compute the standard deviation of the random variable. 11. (6) In a college freshman English course, the following 20 grades were recorded 48 88 47 39 45 44 98 76 84 54 67 91 84 38 75 38 35 82 42 82 Find the: a. Quartiles for the above data set b. Range for the above data set c. Mean for the above data set d. Variance for the above data set e. Coefficient of variation for the above data set 12. (6) A brand of salsa comes in jars marked net weight 680 grams. Suppose the actual mean net weight of all jars is 680 grams with a standard deviation of 22.7 grams. Further suppose that the net weights are normally distributed. a. Determine the probability that a randomly selected jar of this brand of salsa will have a weight less than 660 grams. b. Determine the probability that 15 randomly selected jars of this brand of salsa will have a mean weight of less than 660 grams. c. Why are these probabilities not the same? 13. (7) A computerized tutorial center at a local college wants to compare two different statistical software programs. Students going to the center are matched with other student having similar abilities in statistics. A random sample of 10 student pairs is selected. One student is randomly assigned program A, the other program B. After two weeks of using the program, the students are given an evaluation test. Their grades are: Program A Program B 64 62 68 72 75 79 97 57 90 91 55 56 68 88 64 89 91 77 95 76 Do the data provide evidence, at the 10% significance level, that there is a difference in mean student performance between the two software programs? a) In support of your decision show the hypotheses and the value of the test statistics computed for assessing the significance level. b) What is the actual type 1 error? 14. (6) A college administrator wants to study the average age of students who drop out of college after attending only one semester. He randomly selects 25 students who are in this group. Their ages are listed below: 35.6 20.1 18.1 21.3 20.1 19.2 18.5 18.9 18.6 18.4 19.2 18.8 17.7 21.0 19.3 24.2 19.0 19.6 18.6 19.4 20.3 20.4 19.6 19.9 19.2 Because the administrator has been doing these studies in the past, he knows that age is normally distributed with a standard deviation of 0.8 years. a. Find a 95% confidence interval for the mean age of all first semester college dropouts. b. Interpret your results in part (a) in words. 15. (7) Does smoking have an effect on worker accidents? You have collected some data on accidents and are able to use data from a sample of 34 workers who were involved in an accident last year. You also have data from another sample of 32 workers who were not involved in accidents last year. You ask all the workers in your samples if they smoked last year. You found 16 workers who had accidents were smokers while 6 workers who did not have accidents were smokers. a) State the hypotheses for this problem and test it. b) What is the probability of a type 1 error? 16. (6) A survey of 1000 adults was conducted concerning ?green practices?. In response to a question of what was the most beneficial thing to do for the environment, 28% said ?buying renewable energy?. a) Predict what percentage of the population of adults would answer this way if they were all asked. You would like to be 95 percent confident you will be correct. b) Next year you will repeat this study. Determine the sample size necessary to estimate, with 95% confidence, the population percentage to within plus and minus 0.02 or 2%.
Question 3
Condensed financial data of LaRussa Inc. follow. LARUSSA INC. Comparative Balance Sheets December 31 Assets 2011 2010 Cash $ 90,780 $ 48,750 Accounts receivable 92,440 32,940 Inventories 112,600 102,600 Prepaid expenses 28,570 25,600 Investments 137,580 114,030 Plant assets 269,860 242,570 Accumulated depreciation (49,170) (52,320) Total $682,660 $514,170 Liabilities and Stockholders' Equity Accounts payable $111,620 $ 67,710 Accrued expenses payable 16,110 17,440 Bonds payable 115,920 149,750 Common stock 220,430 174,930 Retained earnings 218,580 104,340 Total $682,660 $514,170 LARUSSA INC. Income Statement For the Year Ended December 31, 2011 Sales $392,090 Less: Cost of goods sold $135,930 Operating expenses, excluding depreciation 12,650 Depreciation expense 46,830 Income taxes 27,020 Interest expense 4,780 Loss on sale of plant assets 5,750 232,960 Net income $159,130 Additional information: New plant assets costing $84,790 were purchased for cash during the year. Old plant assets having an original cost of $57,500 were sold for $1,770 cash. Bonds matured and were paid off at face value for cash. A cash dividend of $44,890 was declared and paid during the year. Prepare a statement of cash flows using the indirect method. (List amounts from largest positive to smallest positive followed by most negative to least negative, e.g. 15, 14, 10, -17, -5, -1. If amount decreases cash flow, use either a negative sign preceding the number eg. -45 or parentheses eg (45).) LARUSSA INC. Statement of Cash Flows For the Year Ended December 31, 2011 Cash flows from operating activities $ Adjustments to reconcile net income to net cash provided by operating activities $ Net cash by operating activities Cash flows from investing activities Net cash by investing activities Cash flows from financing activities Net cash by financing activities Net in cash Cash at beginning of period Cash at end of period $
Question 4
"Valuation of Groupon Inc. This question requires you, among other things, to calculate the stock price for Groupon Inc, and provide the needed analysis as asked in what follows. You will need to use ?Sources of Financial Data? from the list below to obtain the necessary financial info/statements for Groupon Inc., identify its peer companies and obtain pricing and financial information for them. A. Develop a DCF model using Excel to estimate the fair value of the firm?s common shares at the end of 2011 ? for historical numbers use the data from SEC filings including S-1 form with all amendments and Prospectus, and other sources of financial data. Don?t forget to include the terminal value (value after the forecast period) in your estimate. B. For each of the value drivers (i.e., revenues growth and profit margin over the forecast period, tax rate, WACC etc.), identify your sources and assumptions, and show all you calculations. This is especially important for the WACC that you will use to calculate the NPV, due to the sensitivity of your results to this critical parameter. C. Perform a sensitivity analysis for WACC, growth rate and profit margin. D. Using comparable ratios of peer companies, estimate the company?s stock price at the end of 2011. List the major assumptions and sources of information that you used in your calculations. Were your assumptions reasonable enough? Explain. E. Groupon Inc. went public on November 4, 2011. How do your DCF and relative valuations compare with the company?s IPO price? Its first-day closing? Average price for trading period in 2011? If your valuations differ from observed prices, can you briefly forward any possible explanations? F. A year earlier, in November 2010, it was rumored that Google might acquire Groupon at $6 billion, but the acquisition never realized. What is your estimate of a fair value of Groupon to Google at that time? Please don't forget a possible synergy. G. In November 2009, Accel Growth Fund invested $20 million in the company by buying 2,932,553 shares of Series E convertible preferred stock. What was the realized IRR of this investment, if "Each share of Series E preferred stock was converted into 12 shares of Class A common stock on October 31, 2011" (Amendment No. 8 to form S-1, filed with SEC on November 2, 2011, page II-3)? Make sure to justify your responses by using the available data/info and carrying out any needed and relevant calculations. Here is the list: ? Yahoo Finance; ? Google Finance; ? Reuters; ? Edgar (SEC source of 10-K, S-1 form, Prospectus and other required financial reports); ? Hoovers (general company information); ? Bloomberg (a good source of interest rate data); ? Wall Street Journal (free site of the famous newspaper); ? NYSE Euronext (New York Stock Exchange website);,Hello, Have you completed some parts please send to me. Like I said I am getting worried and will need to know what is going on per the due date and time I had given you. Thank you,Ok Thank you can you please email me part of it and what is the time frame? I am asking because it is due this evening,Right now I am spending so much time starting from scratch because I don't want to be screwed this is an exam due today and I am freaking out. Please help and send me something so I can know what is going on.Thank you for your time,Thank you so much!
Question 5
4.DATA: Carewood makes an environmentally friendly artificial fireplace log. You have been asked to prepare the company?s master budget for the first quarter of the year 2013 and have been provided with the following: a. The 12/31/2012 balance sheet data follows: ASSETS Cash $ 4,330 Accounts Receivable 8,450 Direct Materials Inventory (2,178 pounds) 436 Finished Goods Inventory (1,200 logs) 2,808 Plant and Equipment $220,000 Less Accumulated Depreciation (56,000) 164,000 Total Assets $180,024 LIABILITIES AND STOCKHOLDER?S EQUITY Accounts Payable $ 1,109 Note Payable 20,000 Total Liabilities $ 21,109 Common Stock $100,000 Retained Earnings 58,915 158,915 Total Liabilities and Stockholder?s Equity $180,024 b. Each log requires the following standards for direct material and labor: ? 3.3 pounds of material mix at $.20 per lb ? 10 minutes of labor time per unit; direct labor averages $14.40 per hour Each finished log requires three minutes of machine time. Variable overhead is applied at the rate of $12.00 per hour of machine time. Annual fixed production overhead is budgeted at $46,800 (see breakdown below). Salaries $30,000 Insurance 1,800 Fixed portion of utilities 6,000 Depreciation 9,000 Total $46,800 Fixed overhead is incurred evenly throughout the year c. Expected sales in units for the first five months of 2013 are: January 6,000 February 9,000 March 6,500 April 5,900 May 5,100 Carewood grants no discounts, and all sales are on credit at $6.00 per log. The company?s collection pattern is 80 percent in the month of sale, 15 percent in the month following sale, and 5 percent in the second month following the sale. The Accounts Receivable balance in the balance sheet data represents amounts remaining due from November sales of $33,000 and December sales of $34,000. d. Carewood completes all production each day. The desired ending balance of Direct Materials Inventory is 10 percent of the amount needed to satisfy the next month?s production for finished goods. The desired ending balance in Finished Goods Inventory is 20 percent of the next month?s sales. e. Purchases of direct materials are paid 70 percent in the month of purchase and 30 percent in the month following the purchase. No discounts are taken. The note payable has a 12 percent interest rate, and the interest is paid at the end of each month. The $20,000 balance of the principal on the note is due on March 31, 2013. f. CareWood?s minimum cash balance desired is $4,000. The firm may only borrow at the beginning of a month and repay at the end of a month in $500 increments ($500, $1,000, $1,500 etc.). Principal should only be repaid in a month when excess cash exists. Interest on these short-term loans, if any, is payable monthly at a 14% rate. You may have to borrow money to meet your monthly interest obligations on any loans outstanding. g. Selling and Administrative expenses, paid as incurred, run $9,000 per month plus 1 percent of sales. Direct labor and overhead are paid as incurred. h. The company accrues income taxes at a 40 percent rate. A quarterly tax installment will be paid on April 15, 2013. Required:4. Prepare a direct materials purchases budget for the first quarter of 2013. (5 pts.) Thank you, use the attach Document to answer my quesions. I will upload it.
