You decide to use statistical sampling to test the reasonableness of the recorded book value of the Key West Company's accounts receivable. Because the company's internal control procedures over accounts receivable have been evaluated by you as excellent and you believe few misstatements will be found, you decide to use probabil
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Ocean Juice produces both a cranberry juice cocktail and a raspberry-cranberry blend. Each day Ocean Juice can receive up to 1000 gallons of a raspberry concentrate that costs $2.00 per gallon and up to 4000 gallons of a cranberry concentrated that costs $1.20 per gallon. Purified water, which is in unlimited supply, costs Ocean
Can a $100,000 take care of retirement if I Choose the retirement amount and my retirement age (55) and using a discount rate of 6% will the $100,000 get me there? How big of a lump sum would I need? What are some other options to supplement the lump sum to get to me to choose my retirement savings amount?
Color View is a manufacturer of color monitors for personal computers. The company uses the EOQ model with gradual replenishment to determine the production lot sizes for its various models. Color View's newest monitor is the X-435 model. The company expects sales of this model to run at the rate of 6,000 per year for awhile. Th
To produce x number of units of glass vases cost C(x)=12x + 39. My revenue is R(x)=25x. Both cost and revenue and cost are in dollars. At what quantity would I break even; how many units will produce a profit of 130 dollars; what would be the profit gained from selling 250 units?
What are some benefits of an auditor using statistical sampling? What are some examples of statistical sampling? Does anyone have any experience they are willing to share with the class on statistical sampling?
A TSB (Tax Saver Benefit) plan allows you to put money into an account at the beginning of the calendar year that can be used for medical expenses. This amount is not subject to federal tax (hence the phrase TBS). As you pay medical expenses during the year, you are reimbursed by the administrator of the TBS until the TBS acco
Dr. Stephanie White, the Chief Administrator of Uptown Clinic, a community mental health agency, is concerned about the dilemma of coping with reduced budgets next year and into the foreseeable future, but increasing demand for services. In order to plan for reduced budgets, she must first identify where costs can be cut or redu
A company, sells and repairs old bicycles and parts for replacement. Sell reconstructed pictures at a unit price of $ 50. The fixed cost of equipment for re construction of the tables is $ 500. The variable unit cost of material for each table is $ 10, in this example, s = 50, f = 500 v = 10. The number of boxes sold is = X. Cal
Costs can be classified into two categories, fixed and variable costs. These costs behave differently based on the level of sales volumes. Suppose we are running a restaurant and have identified certain costs along with the number of annual units sold of 1000. Item: Raw Materials (cost for hamburgers) Total Annual Cost: 650
Karen is a single taxpayer and transfers property with a basis of $130,000 and a fair market value of $65,000 to the Southland Corp in exchange for shares of section 1244 stock. As the transfer qualifies under section 351, Karen takes a $130,000 basis in the Southland stock. In the current year, Karen sells the Southland stock f
Four years ago, Jim who is a single taxpayer acquired stock in a corporation that qualified as small business under section 1244. He paid $60,000. Now he wants to give his son $20,000 to help with his son's college education. The stock is worth $20,000 now. Jim wants to sell the stock in the current year and give the $20,000
Please help with the following learning objective. Please provide computation in step by step for easy to understand to use as a guide for the following questions. 1. Twenty-five-year B-rated bonds of Parker Optical Company were initially issued at a 12 percent yield. After 10 years the bonds have been upgraded to Aa2. such b
Create a mathematical model for determining the total actual driving cost of driving from Atlanta to New York City.
A company sells calculators at $27 each. It has monthly fixed costs of $3800 each and material costs $3 per unit, labour costs of $1 per unit, and other variable costs $10 per unit. 1. What is the breakeven point in sales dollars? 2. What is net income at a level of sales of 350 units? 3. How many units must they sell to
The Rolling Creek Textile Mill produces denim. The fixed monthly cost is $21,000 and the variable cost per yard of denim is $0.45. The mill sells a yard of denim for $1.30. a. For a monthly volume of 18,000 yards of denim, determine the total cost, total revenue, and profit. b. Determine the annual break-even volume for t
The following table gives the total 2004 payroll (on opening day of the season, rounded to the nearest million dollars) & the % of games won during the 2004 season by each of the National League baseball teams. a) Find the least squares regression line with total payroll as an independent variable & % of games won as a depen
The following ANOVA table based on information obtained for 3 samples from 3 independent populations that are normally distributed with equal variances has a few missing values. a) Find the missing values and complete the ANOVA table. b) Using α = .01, what is your conclusion for the test with the null hypothesis that
According to the Walker Loyalty Report survey of 3350 respondents, 61% of women and 55% pf men polled said that the performance evaluation at their jobs were fair. Assume that these % are based on random samples of 1700 men and 1650 women. a) At 2.5% significance level, can you conclude that the proportion of all women who th
Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. _________________________________________________________________ Item cost $10.00 Standard deviation of Order cost $250.00 weekly demand 25 per week Annual holding cost (%) 33% of item cost Lead time 1 week Annual demand 25,750 Service probability 95% Average demand 515 per week ____________________________________________________________________ a. State the order quantity and reorder point.
Given the following information, formulate an inventory management system. The item is demanded 50 weeks a year. _________________________________________________________________ Item cost $10.00 Standard deviation of Order cost $250.00 weekly demand 25 per week Annual holding cost (%) 33% of item
What is the difference between an annuity and a sinking fund? If you were to set up an annuity today to purchase something in 7 years what would it be for? If you were getting 6% compounded annually what would your payments need to be to reach your goal? What type of payments would you want to make (monthly, quarterly, yearly
Assume you are going to manage a large construction project involving many subcontractors. Why use PERT or CPM to plan the project rather than just logically scheduling the subcontractors?
Kubrick Company decides to buy Hitchcock Company. Both firms have the same characteristics of Walton Company(revenues of $1000, operating margin of 15%, a tax rate of 40%, investment rate of 8%, growth rate of 18%, and 5 years supernormal growth, and zero growth thereafter), except Kubrick Company has a beta of 1.2 and Hitchcock
The comparative statements of Villa Tool Company are presented below. VILLA TOOL COMPANY Income Statement For the Year Ended December 31 2009 2008 Net sales $1,818,500 $1,750,500 Cost of goods sold 1,011,500 996,000 Gross profit 807,000 754,500 Selling and administrative expense 51
On January 1, 2008, Jonsey Corporation purchased 30% of the common stock outstanding of Karsen Corporation for $200,000. During 2008, Karsen Corporation reported net income of $80,000 and paid cash dividends of $40,000. The balance of the Stock Investments-Karsen account on the books of Jonsey Corporation at December 31, 2008 is
Norton, Inc. has 10,000 shares of 6%, $100 par value, noncumulative preferred stock and 100,000 shares of $1 par value common stock outstanding at December 31, 2008, and December 31, 2009. The board of directors declared and paid a $50,000 dividend in 2008. In 2009, $100,000 of dividends are declared and paid. What are the divid
The probability distribution of a less risky return is more peaked than that on a riskier return. What shape would the probability distribution have for (a) completely certain returns and (b) completely uncertain returns?
Famer Frank's produces items from local farm products and distributes them to supermarkets. Over the years, price competition has become increasingly important, so Susan Kramer, the company's controller, is planning to implement a standard cost system for Famer Frank's. She asked her cost accountant, Margaret Chang, to gather co
Formula 51 Corp. just paid a dividend of $1.45 per share. The dividends are expected to grow at 30 percent for the next eight years and then level off to a 7 percent growth rate indefinitely. If the required return is 13 percent, what is the price of the stock today?
Listen Close Co. is expected to maintain a constant 6.5 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 3.6 percent, what is the required on the company's stock?