1. In your own words, explain what is meant by "inductive reasoning" and "deductive reasoning." State the differences between the two and provide examples to illustrate. 2. What is the purpose of estimation? Discuss advantages and disadvantages of relying on estimation. Provide an example of estimation used in your daily li
Calculate the tax disadvantage to organizing a U. S. business today, after passage of the Jobs and Growth Tax Relief Reconciliation Act of 2003, as a corporation versus a partnership under the following conditions. Assume that all earnings will be paid out as cash dividends. Operating income ( operating profit before taxes) will
How can organizations determine if they are structured in the most effective and efficient manner? What are some advantages and disadvantages of each: (a) team-based, (b) network-based, and (c) boundaryless organizations?
You are working for an investment firm and have been asked to analyze and explain investments to your boss and clients who do not understand the various aspects of your job. You are working with the analysis of stocks, bonds and mutual funds. The following questions are examples of some of the analysis type problems that your bo
1. Find the median of the following set of numbers. 45, 21, 54, 22, 65, 61 Solution, explanation: 2. The following scores were recorded on a 100-point examination: 95, 75, 76, 86, 96, 71, 68, 81, 95, 76, 69, 82, 93, 88, 94 Find the mean and median final examination scores. Solution, explanation:
II. Create an income statement that finds the gross profit and net income for ABC Computers for the year ending August 31, 2007 if the company had net sales of $28,625; cost of goods sold of $13,247; and operating expenses of $2,752. III. Complete a vertical analysis of the income statement in part two. IV. In 2
Cully furniture buys 2 products for resale: big shelves (B) and medium shelves (M). Each big shelf costs $500 and requires 100 cubic feet of storage space, and each medium shelf costs $300 and requires 90 cubic feet of storage space. The company has $75000 to invest in shelves this week, and the warehouse has 18000 cubic feet av
A local church is studying the amount of offerings in an envelope from their early Sunday mornings services. The church studied 500 envelopes and found the following: Less than $5 200 $5 to $9.99 100 $10 to $19.99 75 $20 to $49.99 75 $50 or more 50 What is the probabi
Please see attached document. Sharifi Hospital basis its budgets on patient-visits. The hospital's static budget for October appears below: Budgeted number of patient visits 8,500 Budgeted variable overhead costs: Supplies (@$4.70 per patient-visit) $39,950 Laundry (@$7.80 per patient-visit) 66,300 Total v
The following costs appear in Malgorzata Company's flexible budget at an activity level of 15,000 machine hours: Total Cost Indirect materials: $7,800 Factory rent: $18,000 What would be the flexible budget amounts at an activity level of 12,000 machine hours if indirect materials is a variable cost a
Question 1 Jordan Company produced 150,000 floor lamps during the past calendar year. Jordan had 2,500 floor lamps in finished goods inventory at the beginning of the year. At the end of the year, there were 11,500 floor lamps in finished goods inventory. The lamps sell for $50 each. Jordan's accounting records provide the fol
Pitkins Company collects 20% of a month's sales in the month of sale, 70% in the month following the sale, and 6% in the second month following sale. The remainder is uncollectible. Budgeted sales for the next four months are: January February March April Budgeted Sales $200,000 $300,000 $350,000 $250,000
The following information relates to Minorca Manufacturing Corporation for next quarter: January February March Expected sales (in units) 440,000 390,000 400,000 Desired ending finished goods inventory (in units) 28,000 30,000 35,000 How many units should Minorca plan on producing for the month of February?
II. You are asked to make a depreciation schedule for a business asset. A depreciation schedule shows the remaining value of the asset at the end of each time period. Create a depreciation schedule for each of the following 1. A copy machine that costs $1,800, shipping $50 and installed for $125 depreciated using the stra
Which of the following should not influence a firm's dividend policy decision? The firm's ability to accelerate or delay investment projects, A strong preference by most shareholders in the economy for current cash income versus capital gains, constraints imposed by the firm's bond indenture, the fact that much of the firm's
Rooney Inc. recently completed a 3-for-2 stock split. Prior to the split, its stock price was $90 per share. The firm's total market value was unchanged by the split. What was the price of the company's stock following the stock split?
The firm's target structure is consistent with which of the following? Maximum earnings per share (EPS), Minimum cost of debt (rd), Highest bond rating, Minimum cost of equity (rs), or Minimum weight average cost of capital (WACC).
Millman Electronics will produce 60,000 stereos next year. Variable costs will equal 50% of sales, while fixed costs will total $120,000. At what price must each stereo be sold for the company to achieve an EBIT of $95,000?
1. The issuance price of a bond does not depend on the a. face value of the bond. b. riskiness of the bond. c. method used to amortize the bond discount or premium. d. effective interest rate. 2. Which of the following is true of a premium on bonds payable? a. It is a contra-stockholders' equity account. b. It
Consider the following contingency table: Under 20 21-30 31-40 Male 12 12 17 Female 13 16 21 a. If one person is selected at random, what is the probability that person is Female? ______ b. If one person is selected at random, what is the probability that person is ei
Swanson Inc. purchased $400,000 of Malone Corp. ten-year bonds with a stated interest rate of 8 percent payable quarterly. At the time the bonds were purchased, the market interest rate was 12 percent. Determine the amount of premium or discount on the purchase of the bonds. a. $92,442 premium b. $92,442 discount c. $81,1
On January 1, 2006, an investor paid $291,000 for bonds with a face amount of $300,000. The contract rate of interest is 8% while the current market rate of interest is 10%. Using the effective interest method, how much interest income is recognized by the investor in 2006 (assume annual interest payments and amortization)?
Thirty flasks, 10 full, 10 half empty and 10 entirely empty, are to be divided among 3 sons so that flasks and content should be shared equally. How may this be done without pouring from one flask to another?
You must evaluate a proposal to buy a new milling machine. The base price is $108,000, and shipping and installation costs would add another $12,500. The machine falls into the MACRS 3-year class, and it would be sold after 3 years for $65,000. The applicable depreciation rates are 33, 45, 15 and 7 percent. The machine would
1. Passenger comfort is influenced by the amount of pressurization in the airline cabin. Higher pressurization permits a closer-to-normal environment and a more relaxed flight. A study by an airline user group recorded the corresponding air pressure on 30 randomly chosen flights. The study revealed a mean equivalent pressure of
Match the letter of the term to the definition of that term. Definitions 1. The average of the squared deviation scores from a distribution mean. ____ 2. Midpoint in the distribution of numbers. ____ 3. It has to do with the accuracy and precision of a measurement procedure. ____ 4. Examines if an observed causal rela
Symbols Definitions 1. S (Uppercase Sigma) ____ a. Null hypothesis 2. m (Mu) ____ b. Summation 3. s (Lowercase Sigma) ____ c. Factorial 4. p (Pi) ____ d. Nonparametric hypothesis test 5. e (Epsilon) ____ e. Population standar
Burger and more business is worth 250,000. it is expected to grow at 12% per year compounded annually for the next 5 years. Find the expected future value. If funds from the sale of the business today would be placed in an account yielding 6% compounded semiannually, what would be the minimum acceptable price for Burger and
The earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow at 7 percent per year in the future. Carpetto's common stock sells for $23 per share, its last dividend was $2.00, and it will pay a dividend of $2.14 at the end of the current year. Assuming you have equal confidence in the outp
The earnings, dividends, and common stock price of Carpetto Technologies Inc. are expected to grow at 7 percent per year in the future. Carpetto's common stock sells for $23 per share, its last dividend was $2.00, and it will pay a dividend of $2.14 at the end of the current year. Using the DCF approach, what is the cost of co