Answer:
1. 690
2. Do not reject the null hypothesis.
Explanation:
1. Month t
At the end of Feb 6
March 4
April 4
May 4
June 2
14th of July 2
Total 24
Therefore on 14th July, t = 24
Forecast: Y = 450+10t = 450 + 10*24 = 450+240 = 690
2. Options are "a. Reject the null hypothesis. b. Do not reject the null hypothesis. c. Take a larger sample. d. Reserve judgment"
In general, if test statistic is more extreme than the critical values at given level of significance then we reject the null hypothesis otherwise we do not reject the null hypothesis.
Here, test statistic for the given two tailed test is Z = -1.07 and critical value at level of significance α = 0.5 is ± 1.96 . Since -1.96<Z<1.96, we can say that we do not reject Null Hypothesis as the test statistic is not extreme than the critical value at given level of significance.
Wildhorse Locomotive Corporation purchased for $604,000 a 40% interest in Lopez Railways, Inc. This investment enables Wildhorse Locomotive to exert significant influence over Lopez Railways. During the year, Lopez Railways earned net income of $159,000 and paid dividends of $27,000. Prepare ZaneLocomotive’s journal entries related to this investment.
Answer:
Dr Equity Investments $604,000
Cr Cash $604,000
Dr Equity Investments $63,600
Cr Investment Income $63,600
Dr Cash $10,800
Cr Equity Investments $10,800
Explanation:
Preparation of ZaneLocomotive’s journal entries related to this investment.
Dr Equity Investments $604,000
Cr Cash $604,000
(Being to record Investment)
Dr Equity Investments $63,600
Cr Investment Income $63,600
(40% × $159,000)
(Being to record share in net income)
Dr Cash $10,800
Cr Equity Investments $10,800
(40% × $27,000)
(Being to record shares in dividend)
Which of the following best illustrates Hofstede's definition of collectivism?
a. Managers at Honest Tea expect that all employees will have an interest and part in environmental sustainability
b. The founder of Honest Tea stresses the importance of equality and opportunity
c. An employee of Honest Tea prefers to work alone and puts him- or herself above others
d. The managers of Honest Tea prefer tradition over change
e. Employees in Honest Tea have high levels of anxiety about uncertainty
Answer:
a. Managers at Honest Tea expect that all employees will have an interest and part in environmental sustainability
Explanation:
Analyzing the information about Honest Tea, it is possible to understand that sustainability is an issue that has a lot of weight for the company, and all its processes are managed in an environmentally responsible manner. Therefore, it is correct to say that Honest Tea managers expect all employees to be interested and participate in environmental sustainability, as this is a value that identifies and positions the company in the market, and it is essential that this value is shared by all employees.
Environmental management is a form of management that provides significant advantages to an organization, as it standardizes procedures and policies to reduce environmental impacts, the company operates with a focus on continuous improvement that reduces costs, waste, makes work most satisfactory and sustainability as a shared value.
AirQual Test Corporation provides on-site air quality testing services. The company has provided the following cost formulas and actual results for the month of February:
Fixed Component Variable Component Actual Total
per Month per Job for February
Revenue $276 $35,890
Technician wages $8,600 $8,450
Mobile lab operating expenses $4,600 $34 $9,200
Office expenses $2,800 $3 $3,070
Advertising expenses $1,580 $1,650
Insurance $2,890 $2,890
Miscellaneous expenses $930 $1 $375
The company uses the number of jobs as its measure of activity. For example, mobile lab operating expenses should be $4,600 plus $34 per job, and the actual mobile lab operating expenses for February were $9,200. The company expected to work 140 jobs in February, but actually worked 150 jobs.
Required:
Complete the flexible budget performance report showing AirQual Test Corporation’s revenue and spending variances and activity variances for February.
Answer:
AirQual Test Corporation
Flexible Budget:
Fixed Variable Actual Flexible Variance
Revenue $276 $35,890 $41,400 ($5,510) U
Technician wages $8,600 $8,450 8,600 150 F
Mobile lab operating exp. $4,600 $34 $9,200 9,700 500 F
Office expenses $2,800 $3 $3,070 3,250 180 F
Advertising expenses $1,580 $1,650 1,580 (70) U
Insurance $2,890 $2,890 2,890 0 N/A
Miscellaneous expenses $930 $1 $375 1,080 705 F
Total $10,255 $14,300 $4,045 U
Explanation:
a) Data and Calculations:
Fixed Variable Actual
Revenue $276 $35,890
Technician wages $8,600 $8,450
Mobile lab operating exp. $4,600 $34 $9,200
Office expenses $2,800 $3 $3,070
Advertising expenses $1,580 $1,650
Insurance $2,890 $2,890
Miscellaneous expenses $930 $1 $375
Expected number of jobs to be worked = 140
Actual number of jobs worked = 150
Flexible costs:
Revenue = $276 * 150 = $41,400
Mobile lab operating expense:
Fixed element = $4,600
Variable element = $34 * 150 = $5,100
Total flexible budget = $9,700
Office Expenses:
Fixed element = $2,800
Variable element = $3 * 150 = $450
Total flexible budget = $3,250
Miscellaneous expenses:
Fixed element = $930
Variable element = $1 * 150 = $150
Total flexible budget = $1,080
Spending Variances:
Technician wages $8,600 $8,450 8,600 150 F
Advertising expenses $1,580 $1,650 1,580 (70) U
Insurance $2,890 $2,890 2,890 0 N/A
Spending variances = $80 F
Activity Variances:
Mobile lab operating exp. $4,600 $34 $9,200 9,700 500 F
Office expenses $2,800 $3 $3,070 3,250 180 F
Miscellaneous expenses $930 $1 $375 1,080 705 F
Total activity variances = $1,385 F
Camptown Togs, Inc., a children’s clothing manufacturer, has always found payroll processing to be costly because it must be done by a clerk so that the number of piece-goods coupons received by each employee can be collected and the types of tasks performed by each employee can be calculated. Not long ago, an industrial engineer designed a system that partially automates the process by means of a scanner that reads the piece-goods coupons. Management is enthusiastic about this system because it utilizes some personal computer systems that were purchased recently. It is expected that this new automated system will save $45,000 per year in labor. The new system will cost about $30,000 to build and test prior to operation. It is expected that operating costs, including income taxes, will be about $5,000 per year. The system will have a five-year useful life. The expected net salvage value of the system is estimated to be $3,000.
(a) Identify the cash inflows over the life of the project.
(b) Identify the cash outflows over the life of the project.
(c) Determine the net cash flows over the life of the project.
Answer:
a. Time period Cash Inflow
Year 1 $45,000
Year 2 $45,000
Year 3 $45,000
Year 4 $45,000
Year 5 $48,000 ($45,000+$3,000)
b. Time period Cash Outflow
Year 0 $30,000
Year 1 $5,000
Year 2 $5,000
Year 3 $5,000
Year 4 $5,000
Year 5 $5,000
c. Time period Cash Inflow Cash Outflow Net Cash Flow
Year 0 $0 $30,000 -$30,000
Year 1 $45,000 $5,000 $40,000
Year 2 $45,000 $5,000 $40,000
Year 3 $45,000 $5,000 $40,000
Year 4 $45,000 $5,000 $40,000
Year 4 $48,000 $5,000 $43,000