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Listed below are selected transactions of Sage Department Store for the current year ending December 31.a. On December 5, the store received $520 from the Selig Players as a deposit to be returned after certain furniture to be used in stage production was returned on January 15. b. During December, cash sales totaled $823,200, which includes the 5% sales tax that must be remitted to the state by the fifteenth day of the following month. c. On December 10, the store purchased for cash three delivery trucks for $115,700. The trucks were purchased in a state that applies a 5% sales tax. d. The store determined it will cost $102,800 to restore the area (considered a land improvement) surrounding one of its store parking lots, when the store is closed in 2 years. Ayayai estimates the fair value of the obligation at December 31 is $90,600.Required:Prepare all the journal entries necessary to record the transactions noted above as they occurred and any adjusting journal entries relative to the transactions that would be required to present fair financial statements at December 31.
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On December 31, 2019, Kingbird Corporation signed a 5-year, non-cancelable lease for a machine. The terms of the lease called for Kingbird to make annual payments of $7,924 at the beginning of each year of the lease, starting December 31, 2019. The machine has an estimated useful life of 6 years and a $5,200 unguaranteed residual value. The machine reverts back to the lessor at the end of the lease term. Kingbird uses the straight-line method of depreciation for all of its plant assets. Kingbirds incremental borrowing rate is 2%, and the lessors implicit rate is unknown.Required:What type of lease is this?
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Bavarian Bar and Grill opened for business in November 2021. During its first two months of operation, the restaurant sold gift cards in various amounts totaling $5,200, mostly as Christmas presents. They are redeemable for meals within two years of the purchase date, although experience within the industry indicates that 80% of gift cards are redeemed within one year. Gift cards totaling $1,300 were presented for redemption during 2021 for meals having a total price of $2,100. The sales tax rate on restaurant sales is 4%, assessed at the time meals (not gift cards) are purchased. Sales taxes will be remitted in January.Required:a. Prepare the appropriate journal entries (in summary form) for the gift certificates sold during 2011 (keeping in mind that, in actuality, each sale of a gift certificate or a meal would be recorded individually). b. Determine the liability for gift certificates to be reported on the December 31, 2011, balance sheet. c. What is the appropriate classification (current or noncurrent) of the liabilities at December 31, 2011? Why?
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Larkspur Company has been operating for several years, and on December 31, 2020, presented the following balance sheet. LARKSPUR COMPANY BALANCE SHEET DECEMBER 31, 2020 Cash $36,400 Accounts payable $78,100 Receivables 69,200 Mortgage payable 141,500 Inventory 99,300 Common stock ($1 par) 154,400 Plant assets (net) 237,700 Retained earnings 68,600 $442,600 $442,600The net income for 2020 was $25,000. Assume that total assets are the same in 2016 and 2017. Compute each of the following ratios. For each of the four, indicate the manner in which it is computed and its significance as a in the analysis of the financial soundness of the company. a. Current ratio. b. Acid-test ratio. c. Debt to assets ratio. d. Return on assets.
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Harry enjoys dark roast coffee because he thinks drinking it makes him look quite sophisticated. In order to stomach it, however, he puts three containers of creamer into every cup of coffee so it is not too bitter. Harry only enjoys coffee in this combination. With less creamer the coffee is too bitter and he won't drink it; with more creamer the coffee is too sweet and also undrinkable. With coffee and creamer in the right proportions, however, Harry is always happy to have more coffee and creamer. His utility function can be written as follows: u(x,y) = min(3x,y), where x is cups of coffee y is containers of creamer. Required:Suppose that Harry drinks one cup of coffee with his preferred three packs of creamer every day for seven days. What is his utility for that week?
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Use the midpoint method when applicable to calculate the price elasticity of demand. a. Contain Yourself!, a plastic container company, raises the price of its signature Lunchbox container from $3.00 to $4.00 . As a result, the quantity sold drops from 20,000 to 15,000. b. Economists working for the United States have determined that the elasticity of demand for gasoline is 0.5. c. Capital Metro decides to increase bus fare rates from $2.00 to $2.21. Consequently, the number of passengers who decide to take the bus in Austin drops from an average of 70,000 riders a day to an average of 61,000 riders a day. 1. Elastic 2. Perfectly elastic 3. Perfectly inelastic 4. Unit elastic 5. Inelastic
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According to the Corporate Travel Index compiled by Business Travel News, the average daily cost for business travel in the United States rose to per day (Executive Travel website). The file Travel contains sample data for an analogous study on the estimated daily living costs for an executive traveling to various international cities. The estimates include a single room at a four-star hotel, beverages, breakfast, taxi fares, and incidental costs. City Daily Living Cost ($) City Daily Living Cost ($)Bangkok 242.87 Mexico City 212Bogota 260.93 Milan 284.08Cairo 194.19 Mumbai 139.16Dublin 260.76 Paris 436.72Frankfurt 355.36 Rio de Janeiro 240.87Hong Kong 346.32 Seoul 310.41Johannesburg 165.37 Tel Aviv 223.73Lima 250.08 Toronto 181.25London 326.76 Warsaw 238.2Madrid 283.56 Washington, D.C. 250.61Required:a. Compute the sample mean.b. Compute the sample standard deviation.c. Compute a 95% confidence interval for the population standard deviation.
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Over the last century, America has produced two dominant and nearly opposite myths of its early explorers: the noble, courageous bringer of light and civilization to the barbarous world; and (more recently) the invader, who is greedy, violent, and sometimes even depraved. How might these very different myths of the explorer suit the different times in which the myths have flourished? Based on the excerpt from his account, how might Cabeza de Vaca be located between these opposite extremes?
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The following is a set of hypothetical production possibilities for a nation.Combination Automobiles (thousands) Beef (thousands of tons)A 0 10B 2 9C 4 7D 6 4E 8 0a. Plot the production possibilities data. What is the opportunity cost of the first 2,000 automobiles produced? Between which points is the opportunity cost per automobile highest? Between which points is the opportunity cost per thousand tons of beef highest?b. Does this production possibilities curve reflect the law of increasing opportunity costs? Explain.c. What assumptions could be changed to shift the production possibilities curve?
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In order to establish the expiration date of perishable food, growth curve data must be collected. Once the microbial load is so high that it poses a hazard to human health, the food item is no longer considered safe (expired). Generally a load of x50,000 bacteria/gram is considered unsafe. Your task is to determine the microbial growth curves for MicroYo, a new brand of yogurt. The growth is determined by sampling the yogurt and growing the bacterial isolates in broth culture which is then serially diluted by a total of x10,000 and inoculated onto standard petri plates of nutrient agar. The following colony counts are measured. Based on this data and considering the information in the paragraph above regarding safe levels, Please choose the last possible day to enjoy the yogurt before there is a dangerous level of bacteria:Time (days) Micro Yo colony count #1 14 112 216 420 7a. 4b. 16c. 20d. 12
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Solution of an unknown concentration that has another solution slowly added to it _____________. A reagent added to the analyte solution that changes color when the reaction is complete ___________. Glassware that allows a solution to be precisely and slowly added to another solution ____________Solution of known concentration that is slowly added to a solution of unknown concentration ____________ When the required amount of one solution has been added to the second solution to complete the reaction __________ Process of slowly adding a solution to react with another solution and determine the concentration of one of the solutions based on the reaction between them _________
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A detergent company is trying to find a new stain remover ingredient to put in its detergent. Company managers know that baking soda or bleach will be used. They also know that water temperature, cold and warm, affects the stain removal process. An experiment will compare all combinations of these choices. Four types of stains on the same fabric will be subjected to each treatment and scored for stain removal quality. Required:What is the experimental unit?
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A marching band consists of rows of musicians walking in straight, even lines. When a marching band performs in an event, such as a parade, and must round a curve in the road, the musician on the outside of the curve must walk around the curve in the same amount of time as the musician on the inside of the curve. This motion can be approximated by a disk rotating at a constant rate about an axis perpendicular to its plane. In this case, the axis of rotation is at the inside of the curve.Knowing that If Beth travels a distance s during time t, how far does Alf travel during the same amount of time= (1/4)s. If Alf moves with speed v, what is Beth's speed? Speed in this case means the magnitude of the linear velocity, not the magnitude of the angular velocity.a. 4v b. v c. v/4
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On March 1, 20Y8, Eric Keene and Renee Wallace form a partnership. Keene agrees to invest $21,060 in cash and merchandise inventory valued at $56,290. Wallace invests certain business assets at valuations agreed upon, transfers business liabilities, and contributes sufficient cash to bring her total capital to $59,950. Details regarding the book values of the business assets and liabilities, and the agreed valuations, follow: Wallaces Ledger Agreed-Upon Balance ValuationAccounts Receivable $18,650 $17,770Allowance for Doubtful Accounts 1,580 1,950Equipment 83,230 54,190Accumulated Depreciation 30,260 Accounts Payable 14,910 14,910Notes Payable (current) 35,970 35,970The partnership agreement includes the following provisions regarding the division of net income: interest on original investments at 10%, salary allowances of $22,660 (Keene) and $30,270 (Wallace), and the remainder equally.Required:a. Journalize the entries on March 1 to record the investments of Keene and Wallacein the partnership accounts.b. Prepare a balance sheet as of March 1, 20Y8, the date of formation of the partnership of Keene and Wallace.
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For each of the following independent situations, prepare journal entries to record the initial transaction on December 31 and the adjustment required on January 31.a. Magnificent Magazines received $17,400 on December 31, 2015, for subscription services related to magazines that will be published and distributed in January through December 2016. b. Walker Window Washing paid $1,740 cash for supplies on December 31, 2015. As of January 31, 2016, $290 of these supplies had been used up. c. Indoor Raceway received $4,350 on December 31, 2015, from race participants for providing services for three races. One race is held in January 31, 2016, and the other two will be held in March 2016.
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A research team is testing a product that will minimize wrinkles among women. Volunteers in the age group of 40 to 45 are included in the research. The research team gives a bottle of the solution to one group and a similar bottle of solution with no ingredients intended to lessen wrinkles to the other group. In the description of the above situation, determine the control group.a. The group that received the bottle of solution is the experimental group.b. The group that received the bottle of solution that did not contain the ingredients that are meant to lessen wrinkles is the experimental group.c. Both the groups are experimental groups.d. Neither group is an experimental group.
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The comparative balance sheets for Pharoah Company as of December 31 are presented below. Pharoah Company Comparative Balance Sheets December 31 Assets 2022 2021 Cash $55,760 $36,900 Accounts receivable 41,000 47,560 Inventory 124,189 116,440 Prepaid expenses 12,530 17,220 Land 118,900 106,600 Buildings 164,000 164,000 Accumulated depreciationbuildings (49,200 ) (32,800 ) Equipment 184,500 127,100 Accumulated depreciationequipment (36,900 ) (28,700 ) Total $614,779 $554,320 Liabilities and Stockholders Equity Accounts payable $36,679 $29,520 Bonds payable 246,000 246,000 Common stock, $1 par 164,000 131,200 Retained earnings 168,100 147,600Total $614,779 $554,320Additional information for 2022: Net income was $29,500. Sales on account were $392,000. Sales returns and allowances amounted to $29,300. Cost of goods sold was $201,900. Net cash provided by operating activities was $56,200. Capital expenditures were $30,000, and cash dividends were $15,100. Required:Compute the following ratios at December 31, 2022. a. Current ratio. b. Accounts receivable turnover. c. Average collection period. d. Inventory turnover. e. Days in inventory. f. Free cash flow.
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The following data were taken from a study relating the Days High Temperature to the Average Amount of Cola Consumed (per capita) in a small mid-western town.Observation Days High Temperature Average Ounces of Cola Consumed 1 64 73 2 51 61 3 62 55 4 78 75 5 50 53 6 80 81 7 50 538 52 54 9 61 77 10 69 82 Given the 10 Observations above, Use a Regression to find each of the following:a. Slope of Regression Equation =b. Y Intercept for the Regression Equation =c. Correlation Coefficient =d. Coefficient of Determination =
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Panarin Company entered into two contracts on the same date with Hjalmarsson Corporation. Panarin has provided the following analysis of price and cost for the contracts: Contract A Contract B Contract price $125,000 $80,000 Cost of related goods 70,000 55,000 Gross profit (loss) $55,000 $25,000 Hjalmarsson, the customer, may cancel both contracts if either of them is not fulfilled by Panarin in a timely manner. Stand-alone prices are typically $120,000 for the goods in Contract A and $80,000 for the goods in Contract B.Required: a. Should the two contracts be combined for purposes of applying the 5-step revenue recognition model? b. What amount of revenue should Panarin associate with each of the contracts? c. When should revenue be recognized on each of the contracts?
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A tension member must be designed for a service dead load of 18 kips and a service live load of 2 kips. Required:a. If load and resistance factor design is used, determine the maximum factored load (required strength) and the controlling AISC load combination. b. If allowable strength design is used, determine the maximum load (required strength) and the controlling AISC load combination.
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One important statistic in baseball is a pitchers earned run average, or ERA. This number represents the average number of earned runs given up by the pitcher per nine innings. The following table lists the portion of the ERAs for pitchers playing for the New York Yankees and the Baltimore Orioles as of July 22, 2010; the complete data, labeled ERA , are available on the text website.New York ERA Baltimore ERA Sabathia 3.13 Guthrie 4.58 Pettitte 2.88 Millwood 5.77 Burnett 4.99 Matusz 5.21 Hughes 3.99 Bergeson 6.51 Vazquez 4.68 Hernandez 4.29 Chamberlain 5.80 Berken 2.50 Gaudin 6.81 Hendrickson 5.23 Rivera 0.98 Albers 4.31 Robertson 4.86 Arrieta 4.87 Park 5.93 Simon 3.14 Mitre 2.88 Ohman 2.57 Logan 3.92 Tillman 7.92 Marte 4.08 Mata 7.79 Aceves 3.00 Meredith 5.40 Moseley 7.50 Uehara 2.92 Melancon 9.00 Castillo 10.13 Albaladejo 5.40 Johnson 6.52 Mickolio 7.36 Gonzalez 18.00 Required:a. Calculate the mean and the median ERAs for the New York Yankees. b. Calculate the mean and the median ERAs for the Baltimore Orioles.c. Based solely on your calculations above, which team is likely to have the better winning record?1. New York Yankees2. Baltimore Orioles
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Bone strength, gives the bone strengths of the dominant and the nondominant arms for 15 men who were controls in a study. ID Group NonDom Dom 1 Control 15.7 16.32 Control 25.2 26.93 Control 17.9 18.74 Control 19.1 22.05 Control 12.0 14.86 Control 20.0 19.87 Control 12.3 13.18 Control 14.4 17.59 Control 15.9 20.110 Control 13.7 18.711 Control 17.7 18.712 Control 15.5 15.213 Control 14.4 16.214 Control 14.1 15.015 Control 12.3 12.9a. Plot the data. Use the bone strength in the nondominant arm as the explanatory variable and bone strength in the dominant arm as the response variable.b. The least-squares regression line for these data is dominant = 2.74 + (0.936 nondominant) Add this line to your plot. c. Use the scatterplot (a graphical summary), with the least-squares line (a graphical display of a numerical summary) to write a short paragraph describing this relationship.
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As shift manager at a local fast food place, you are responsible for ensuring quality control. You do not want to weigh all the frozen hamburger patties that get delivered by your supplier to make sure they weigh four ounces on average, so you choose 100 patties at random. You calculate that the sample mean weight of patties is 2.6 ounces and the standard deviation of the weight of hamburger patties to be 0.4 ounces.Required:a. Test the hypothesis that the population mean weight of patties is equal to 4 ounces.b. You are particularly concerned about the population weight being under 4 ounces, is there any reason for concern? Explain using the concept of a confidence interval.
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Assume that the price of a pizza at your local pizza parlor is $12. Illustrate what happens to producer surplus if the price falls from $12 to $6. First indicate the producer surplus lost by those sellers that leave the market because of this lower price. Label this A. Then indicate the decrease in producer surplus lost to those sellers that continue to sell pizza at the lower price. Label this B.
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