You are the senior manager or audit engagement partner on Care For Kids Inc., a not-for- profit organization that has a December 31 year-end.
While performing year-end substantive procedures, the engagement team identified an error in the entityâs year-end adjusting entries. Care For Kids Inc. had inadvertently not recorded an unrealized gain of $5 million in one of its many investment portfolios. The investments total approximately $200 million. Through inquiry of client management, the engagement team learned that the accounting department had not reviewed the brokerâs statement for this particular portfolio. The portfolio, which consisted of traded securities, had increased in market value by $5 million. Materiality for the audit was $10 million.
As part of the audit, you must assess the operating effectiveness of controls related to the misstatement under audit standards established by the AICPA.
Re quire d:
· What factors would you consider to determine if a deficiency, significant deficiency, or material weakness exists? Be specific to this situation.
· What, if any, communications would you be required to make to those charged with governance?
· What effect would the materiality of this oversight have on your assessment of this control weakness?
Subject: Communications / General Communications Question
Week 6 discussion
Unit 6.1 DB: Intimate Relationships
After reading and viewing the resources for this unit please, explain how the development of an online relationship is different than the development of a face-to-face relationship.
Explain how intimate relationships, friendships, and family relationships may differ when most or all of the interpersonal interactions occur online.
Make sure to cite your sources using APA format.
You may also reference material from Unit 5.
Unit 6.2 DB: Relationship Jealousy
How does social media contribute to relationship jealousy?
Refer to the Unit resources on the “Dark Side of Interpersonal Relationships” when explaining your answer.
DQ1 Momentum is an anomaly that gives those subscribing in efficient markets the most trouble. What is Momentum in stock prices? Why is this a problem for the efficient market hypothesis?
DQ3 Anchors are ubiquitous in financial markets. Give some examples.
Week 3 discussion
DQ1 If employee-investors are unsophisticated and unlikely to be materially influenced by educational efforts, the best way to improve the welfare of employee-investors is pension design. Discuss.
DQ3 In housing markets, there is a positive correlation between prices and trading volume. When there is a housing boom, many houses sell at, or even above, the prices asked by sellers. In times of bust, homes sit on the market for a long time with asking prices that exceed the prices that can reasonably be expected. How can this be explained?
Week 4 discussion
DQ1 19 December 2000 an article appeared in The Wall Street Journal discussing stock price declines that followed share repurchases made by AT&T, Intel, Microsoft, and Hewlett-Packard. The article mentions that Warren Buffett, chairman of Berkshire Hathaway, criticized firms that engaged in share repurchases. In a letter to shareholders, Buffett noted that share repurchases made sense during the mid-1970s, when many stocks traded below their intrinsic value. However, he argued that conditions changed during the bull market of the 1990s, even though share repurchases had become much more frequent. He also suggested that the motivation for share repurchases had also changed, and that during the 1990s firms bought back their shares in order to pump up their stock prices. Discuss Warren Buffett’s views.
DQ3 Imagine that you are a divisional manager. Currently you are a member of a committee which is considering two product investments proposed by two other divisional managers: Joe and John. While walking over to the presentations, Joe seems rather arrogant. He mentions that he golfs with the CEO, is a key player in the firm, and that you could really learn a lot from him. In thinking over the projects after the presentations, you find you are really leaning toward John’s proposal even though the projects are quite similar in terms of estimated cash lows and risks. How can you explain this?
Week 5 discussion
DQ1 Emotional balance is desirable for financial traders. Discuss.
Bell computers purchases IC chips from a supplier at $350/chip. The holding cost
has been estimated to be 10% of purchase price. It has estimated that Bell will need
4800 chips per year. Bell operates 250 day per year. The company wants to maintain
a service level of 95%. The cost placing an order is $120/order. Based on past Bell
has estimated that demand during the 10 day lead time is normally distributed with a
mean of 192 and a standard deviation of 10.
Given the cost of acquiring the chip an executive group has been studying the option
of manufacturing the IC chip in house. Given the resources available they can build
a facility with a production capacity of 30 units per day. The demand during the 15
day lead time demand is approximately normally distributed, with a mean of 288
units and a standard deviation of 20 units. Production costs are expected to be
$325 per part. Setup cost for a manufacturing run is assessed at $600/setup.
For option one calculate the following:
a) What is the Economic order quantity?
b) What is the safety stock?
c) What is the reorder point?
d) What is the total cost including cost of purchasing the parts. For option two calculate the following:
e) What is the Economic production quantity?
f) What is the safety stock? g) What is the reorder point?
h) What is the total cost including cost of manufacturing the parts. Which option should they choose?
2. VanOyen Manufacturing M. P. VanOyen Manufacturing has gone out on bid for a regulator component. Expected
demand is 8400 units per year. The item can be purchased from either Allen
Manufacturing or Baker Manufacturing. Their price lists are shown in the table. Ordering
cost is $ 50, and annual holding cost per unit is estimated to be 30% of purchase price.
Vendor 1’s base price is $16 and Vendor 2’s base price is $16.10.
a) What is the Economic order quantity for each supplier? b) What quantity should be order and which supplier should be used?
c) What is the total cost?
d) How many orders will be placed in a year? Vendor 1
Quantity Discount
1-499
0%
500-999
3.00%
1000+
6% 3. Vendor 2
Quantity Discount
1-399
0%
400-799
3.00%
800+
6% Davis Instruments Davis Instruments has two manufacturing plants located in Atlanta, Georgia. Product
demand varies considerably from month to month, causing Davis extreme difficulty in
workforce scheduling. Recently Davis started hiring temporary workers supplied by
workforce unlimited, a company that specializes in providing temporary employees for
firms in the greater Atlanta area. WorkForce Unlimited offered to provide temporary
employees under three contract options that differ in terms of the length of employment
and the cost. The three options are summarized:
Option Length of Employment
1
One month
2
Two months
3
Three Cost
$2,000
$4,800
$7,500 The longer contract periods are more expensive because WorkForce Unlimited
experiences greater difficulty finding temporary workers who are willing to commit to
longer work assignments.Over the next six months, David projects the following needs
for additional employees:
Month
Employees
Needed Januar Februar
y
y
10 23 March
19 April
26 May June
20 14 Each month, Davis can hire as many temporary employees as needed under each of
the three options. For instance, if Davis hires five employees in January under Option2,
WorkForce Unlimited will supply Davis with five temporary workers who will work two
months: January and February. For these workers, Davis will have to pay 5 ($4800) = $24,000. Because of some merger negotiations under way, Davis does not want to
commit to any contractual obligations for temporary employees that extend beyond
June.
Davis’s quality control program requires each temporary employee to receive
training at the time of hire. The training program is required even if the person worked
for Davis Instruments in the past. Davis estimates that the cost of training is $875 each
time a temporary employee is hired. Thus, if a temporary employee is hired for one
month. Davis will incur a training cost of $875,but will incur no additional training cost if
the employee is on a two-or three-month contract.
Managerial Report
Develop a model that can be used to determine the number of temporary employees
Davis should hire each month under each contract plan in order to meet the projected
needs at a minimum total cost. Include the following items in your report:
a) A schedule that shows the number of temporary employees that Davis should hire each month for each contract option.
b) If the cost to train each temporary employee could be reduce to $700 per month, what effect would this change have on the hiring plan? Explain. Discuss the
implications that this effect on the hiring plan has for identifying methods for
reducing training costs. How much of a reduction in training costs would be
required to change the hiring plan based on a training cost of $875 per temporary
employee?
Tom is a habitual shopper at garage sales. Last Saturday he stopped at one where there were several types of used building materials for sale. At the low prices being asked, Tom knew that he could resell the items in another town for a substantial gain. Four things stood in his way: he could only make one round trip to resell the goods; his pickup truck bed would hold only 1000 pounds; the pickup truck bed could hold at most 70 cubic feet of merchandise; and he had only $200 cash with him. He wants to load his truck with the mix of materials that will yield the greatest profit when he resells them.
Item Cubic feet per unit Price per unit Weight per unit Can resell for
2 × 4 studs 1 $0.10 5 pounds $0.80
4 × 8 plywood 3 $0.50 20 pounds $3.00
Concrete blocks 0.5 $0.25 10 pounds
The local Office of Tourism sells souvenir calendars.
Subject: Business / Management
Question
The local Office of Tourism sells souvenir calendars. The head of the office, Lucy, needs to order these calendars in advance of the main tourist season. Based on past seasons, Lucy has determined the probability of selling different quantities of the calendars for a particular tourist season.
Demand for Calendars
Probability of Demand
75,000
0.15
80,000
0.20
85,000
0.25
90,000
0.30
95,000
0.10
The Office of Tourism sells the calendars for $12.95 each. The calendars cost Lucy $5 each. The salvage value is estimated to be $0.50 per unsold calendar. Determine how many calendars Lucy should order to maximize expected profits.
(i) Solve using EXCEL. Use formulas to compute the profit for the various combinations of purchase quantity and demand.
(ii) Also, remember to provide a written response to the question posed in the problem.
80%, equity, several excess distributions, inventory, fixed assets
Subject: Business / Accounting
Question
Problem 4-14 (LO 2, 3) 80%, equity, several excess distributions, inventory, fixed assets, parent and subsidiary sales.Refer to the preceding facts for Purpleâs acquisition of Salmon common stock. On January 1, 2017, Salmon held merchandise sold to it from Purple for $12,000. This beginning inventory had an applicable gross profit of 35%. During 2017, Purple sold merchandise to Salmon for $55,000. On December 31, 2017, Salmon held $10,000 of this merchandise in its inventory. This ending inventory had an applicable gross profit of 40%. Salmon owed Purple $7,500 on December 31 as a result of this intercompany sale.
Purple held $16,000 worth of merchandise in its January 1, 2017, inventory from sales from Salmon. This beginning inventory had an applicable gross profit of 30%. During 2017, Salmon sold merchandise to Purple for $35,000. Purple held $20,000 of this inventory at the end of the year. This ending inventory had an applicable gross profit of 35%. Purple owed Salmon $5,000 on December 31 as a result of this intercompany sale.
On January 1, 2015, Purple sold equipment to Salmon at a profit of $40,000. Depreciation on this equipment is computed over an 8-year life using the straight-line method.
On January 1, 2016, Salmon sold equipment with a book value of $30,000 to Purple for $54,000. This equipment has a 6-year life and is depreciated using the straight-line method. Purple and Salmon had the following trial balances on December 31, 2017:
Purple Company
Salmon Company
Cash
195,400
53,500
Accounts Receivable
140,000
53,000
Inventory
140,000
81,000
Land
100,000
60,000
Investment in Salmon Company
443,600
Buildings
800,000
150,000
Accumulated Depreciation
(280,000)
(65,000)
Equipment
150,000
220,000
Accumulated Depreciation
(115,000)
(103,000)
Goodwill
40, 000
Accounts Payable
(25,000)
(50,000)
Bonds Payable
(100,000)
Common Stock
(100,000)
(10,000)
Paid-In Capital in Excess of Par
(800,000)
(90,000)
Retained Earnings, January 1, 2017
(510,000)
(169,500)
Sales
(850,000)
(500,000)
Cost of Goods Sold
480,000
290,000
Depreciation ExpenseâBuildings
30,000
5,000
Depreciation ExpenseâEquipment
15,000
23,000
Other Expenses
210,000
94,000
Interest Expense
8,000
Subsidiary Income
(64,000)
Dividends Declared
40,000
10,000
Totals
0
0
Required
1. Prepare a value analysis and a determination and distribution of excess schedule for the investment in Salmon.
2. Complete a consolidated worksheet for Purple Company and its subsidiary Salmon Company as of December 31, 2017. Prepare supporting amortization and income distribution schedules.
STAT 200-A study indicated that 57 out of 104 pregnant
Subject: Mathematics / Statistics
Question
1. A study indicated that 57 out of 104 pregnant women correctly guessed the sex of their babies. Use these sample data to test the claim that the success rated of such guesses is no different from the 50% success rate expected with random chance guesses. Use a 0.05 significance level.
2. Assume we are conducting a hypothesis test of the claim that a method of gender selection increases the likelihood of a baby girl, so that the probability of a baby girl is p > 0.5. Here are the null and alternative hypotheses:
H0: p = 0.5
H1: p > 0.5
Give statements identifying the following.
a. Type I error b. Type II error
3.
Year
1960
1973
1986
1995
2002
2003
Cost of slice of Pizza
0.15
0.35
1.00
1.25
1.75
2.00
Subway fare
0.15
0.35
1.00
1.35
1.50
2.00
CPI
30.2
48.3
112.3
162.2
191.9
197.8
Using the data in the table, construct a scatter plot of the pizza cost (x) versus the subway fare (y). Determine the regression line including the correlation coefficient (r) and the explained variation (r2). Show your scatter plot and line on a graph.
Explain what the y-intercept, slope, r and r2 mean and whether the relationship makes any sense.
Gibson Co. has a current period cash flow of $1.5 million
Subject: Business / Finance
Question
Gibson Co. has a current period cash flow of $1.5 million and pays no dividends. The present value of the companyâs future cash flows is $28 million. The company is entirely financed with equity, and has 770,000 shares outstanding. Assume the dividend tax rate is zero.
a.What is the share price of the Gibson stock? (Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).)
Share price = ?
b.Suppose the board of directors of Gibson Co. announces its plan to pay out 50 percent of its current cash flow as cash dividends to its shareholders. Jeff Miller, who owns 1,200 shares of Gibson stock, wants to achieve a zero payout policy on his own, by buying or selling shares. How many shares should he sell or buy?(Do not round intermediate calculations and round your final answer to 2 decimal places (e.g., 32.16).)
Old world monkeys have prominent tails; apes and humans do not. See the diagram. At what labeled point did this evolutionary event (loss of the tail) occur?
Question 9 options:
Point 1
Point 2
Point 3
Question 10 (5 points)
Complete the following analogy: Microevolution is to population as macroevolution is to ______________.
Question 10 options:
genes
reproduction
individuals
speciation
SaveQuestion 11 (5 points)
A storm uproots 60% of the trees in a population. This is an example of __________________.
Question 11 options:
genetic drift
gene flow
mutation
macroevolution
SaveQuestion 12 (5 points)
What type of reproductive isolating mechanism occurs when female fireflies only mate with males who emit light in a particular pattern?
Question 12 options:
Habitat isolation
Temporal isolation
Mechanical isolation
Behavioral isolation
Question 13 (5 points)
After a disastrous blizzard, there was a significant increase in the allele frequency of blue eye color in Husky dogs. The frequency of alleles for brown-eyed dogs was 7.5% and the allele frequency for hazel-eyed dogs was 22.5% of all alleles for the population. What is the allele frequency percentage for the blue-eyed Husky dogs in this population?
Question 13 options:
7.5
22.5
30
70
SaveQuestion 14 (5 points)
A group of 20 people decide to leave Brazil and settle on a deserted island in the Caribbean. There they form a new population isolated from contact with other human beings. This is an example of ______________.
Question 14 options:
speciation
gene flow
genetic drift
mutation
SaveQuestion 15 (5 points)
Microevolution is to population as macroevolution is to __________.
Question 15 options:
individuals
communities
biodiversity
species
Question 16 (5 points)
The graph shows of the bacteria H. pylori evolved a resistance to antibiotics over a period of 20 years. Resistance evolved most for the antibiotic __________________.
Question 16 options:
Metronidazole
Amoxicillin
Clarithromycin
Tetracycline
SaveQuestion 17 (5 points)
What are the similarity of fish, frog, bird, and human embryos evidence of?
Question 17 options:
Analogy
Common ancestry
Genetic Drift
Genetic mutation
SaveQuestion 18 (5 points)
Mendel discovered that whether his peas were yellow or green is determined by a single gene in which yellow (Y) is dominant over green (y). Assuming low selective pressure, what does the Hardy-Weinberg Equilibrium frequency term 2pq represent in the peas?
Question 18 options:
heterozygous, Yy
homozygous recessive, yy
homozygous dominant, YY
Question 19 (5 points)
After a drought in 1977, the number of birds on Daphne Major Island decreased by ___________ times compared with the original population size.
Question 19 options:
8
2
12
20
SaveQuestion 20 (5 points)
This graphic as well as the p and q values shown in each part of the image exemplify one of four factors that can shift the allele frequency in a small population. Which factor from the list below best explains the changes over three generations in this rabbit population?
