Simon Company’s year-end balance sheets follow.
At December 31 Current Year 1 Year Ago 2 Years Ago
Assets Cash $ 31,800 $ 35,625 $ 37,800
Accounts receivable, net 89,500 62,500 50,200
Merchandise inventory 112,500 82,500 54,000
Prepaid expenses 10,700 9,375 5,000
Plant assets, net 278,500 255,000 230,500
Total assets $ 523,000 $ 445,000 $ 377,500
Liabilities and Equity Accounts payable $ 129,900 $ 75,250 $ 51,250
Long-term notes payable 98,500 101,500 83,500
Common stock, $10 par value 163,500 163,500 163,500
Retained earnings 131,100 104,750 79,250
Total liabilities and equity $ 523,000 $ 445,000 $ 377,500
For both the current year and one year ago, compute the following ratios:
The company’s income statements for the current year and one year ago follow. Assume that all sales are on credit:
For Year Ended December 31 Current Year 1 Year Ago
Sales $ 673,500 $ 532,000
Cost of goods sold $ 411,225 $ 345,500 Other operating expenses 209,550 134,980 Interest expense 12,100 13,300 Income tax expense 9,525 8,845 Total costs and expenses 642,400 502,625
Net income $ 31,100 $ 29,375
Earnings per share $ 1.90 $ 1.80
(1-a) Compute days' sales uncollected.
(1-b) Determine if days' sales uncollected improved or worsened in the current year.
(2-a) Compute accounts receivable turnover.
(2-b) Determine if accounts receivable turnover ratio improved or worsened in the current year.
(3-a) Compute inventory turnover.
(3-b) Determine if inventory turnover ratio improved or worsened in the current year.
(4-a) Compute days' sales in inventory.
(4-b) For each ratio, determine if days' sales in inventory improved or worsened in the current year.

The type of decision-making being exhibited by a consumer who buys the same coffee from the same shop every day is called habitual decision-making.

This type of decision-making involves low levels of involvement, little to no search for information, and low perceived risk. Habitual decision-making is characterized by repetitive behavior and is driven by past experiences and habits.

In the case of the consumer who buys the same coffee from the same shop every day, the decision to purchase that particular coffee has become a habit. The consumer has likely tried other coffee options in the past, but found that the particular coffee from the specific shop met their needs and preferences. As a result, the consumer no longer actively searches for alternative options or considers the benefits and drawbacks of other coffee choices.

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In this scenario, tortious conduct would be the failure of the store owner to warn the customer of the wet floor or take measures to prevent the accident from happening.

A customer is a person or entity that purchases goods or services from a business. Customers can be individuals or organizations, and they play a crucial role in the success of any business. The satisfaction of customers is often the primary goal of businesses, as they rely on repeat business and positive word-of-mouth referrals to grow and thrive. Understanding the needs and wants of customers is essential for businesses to be able to deliver products and services that meet or exceed their expectations. Good customer service is also important for building strong relationships with customers and ensuring their loyalty. With the rise of e-commerce and online shopping, the concept of a customer has evolved to include virtual interactions and the need for businesses to provide seamless online experiences.

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If Netflix offers live sports programming, how will this affect cash? Will cash go up or down? What is the rationale for your answer?

If Netflix offers live sports programming, it is likely that their cash will go down since they will have to spend money on acquiring the broadcasting rights and creating the infrastructure to stream the events. Even though it may increase their revenue, this will take some time to build up, and their cash balance will decrease in the short term due to the high costs involved.

What is the rationale for your answer?

Netflix will have to spend money to get the rights to broadcast the live sports events. The infrastructure required to stream the events would also need to be built. Therefore, their cash balance will decrease in the short term as a result of the high costs involved in offering live sports programming.

If Netflix offers live sports programming, how will this affect content assets? Will content assets go up or down? What is the rationale for your answer?

If Netflix offers live sports programming, content assets may go up as they will have more content to offer to their customers. However, the value of the content may not increase as much due to the high cost involved in acquiring the broadcasting rights.

What is the rationale for your answer?

If Netflix offers live sports programming, they will have more content to offer to their customers. However, since they will have to spend money on acquiring the broadcasting rights and creating the infrastructure to stream the events, the value of the content may not increase as much. Hence, it is difficult to determine whether content assets will go up or down.

If Netflix offers live sports programming, how will this affect property and equipment? Will property and equipment go up or down? What is the rationale for your answer?

If Netflix offers live sports programming, property and equipment may go up since they will need to create the infrastructure to stream the events. However, the increase in property and equipment will not be significant enough to have a significant impact on the company's overall financial statements.

What is the rationale for your answer?

Since Netflix will have to create the infrastructure to stream the events, property and equipment may go up. However, the increase in property and equipment will not be significant enough to have a significant impact on the company's overall financial statements.

If Netflix offers live sports programming, how will this affect accounts payable? Will accounts payable go up or down? What is the rationale for your answer?

If Netflix offers live sports programming, accounts payable may go up since they will have to spend money on acquiring the broadcasting rights and creating the infrastructure to stream the events. They may have to take on debt to finance the additional expenses, which will increase their accounts payable.

What is the rationale for your answer?

Since Netflix will have to spend money on acquiring the broadcasting rights and creating the infrastructure to stream the events, they may have to take on debt to finance the additional expenses, which will increase their accounts payable. Hence, accounts payable may go up.

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The statement of cash flows classifies cash receipts and cash payments into three different activities: operating, investing, and financing. The statement is true.

The statement of cash flows is a financial statement that provides information about a company's cash receipts and cash payments during a particular period. It classifies these cash flows into three activities: operating, investing, and financing.

Operating activities are the cash flows that are related to the company's primary business activities, such as sales and purchases of goods and services. Investing activities are the cash flows that are related to the acquisition and disposal of long-term assets, such as property, plant, and equipment. Financing activities are the cash flows that are related to the company's capital structure, such as issuance or repayment of debt, and issuance or repurchase of equity shares.

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The customer value proposition lays out the company's approach to satisfying customer wants and needs at a price that customers will consider a good value. A customer value proposition is a promise of value that a company intends to provide its customers in exchange for payment.

A company's customer value proposition should describe the key customer segments the company aims to serve, the value offered to each customer segment, and the company's plan to achieve this value. Discuss the given options: Option 1: Meeting profitability guidelines without the risk of losing customers is a company's goal rather than a customer value proposition.

Option 2: Operating efficiently given the current level of customers is a company's goal rather than a customer value proposition.

Option 3: Embracing rival company approaches to gaining customers is a company's goal rather than a customer value proposition.

Option 4: Satisfying customer wants and needs at a price that customers will consider a good value is a customer value proposition.

Option 5: Assuring that the company makes enough profits based on its per-unit cost is a company's goal rather than a customer value proposition.

In light of the above discussion, it is apparent that satisfying customer wants and needs at a price that customers will consider a good value is the correct option.

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a. The journal entry for Dunbar Company on January 1, 2021, is as follows:  Lease Receivable $2,040,674,  Lease Revenue $2,040,674 . b. The journal entry for Dunbar Company on December 31, 2021, is as follows: Lease Expense $750,000 Lease Payable $750,000

The lease receivable is calculated by discounting the lease payments using the implicit rate of 6%. The present value of the lease payments over the four-year period is $7,793,000. Therefore, the monthly lease payment is $162,766 ($7,793,000/48).

The journal entry for Dunbar Company on December 31, 2021, is as follows: Lease Expense $750,000 Lease Payable $750,000 The lease payment of $750,000 is due to Mars on January 1, 2022.

However, since the lease is an operating lease, the lessee recognizes the lease expense for the period ending December 31, 2021. The lease expense is calculated as the total lease payments ($750,000 per year) divided by the number of periods (12 months).

Therefore, the lease expense for December 31, 2021, is $62,500 ($750,000/12). In summary, Dunbar Company recognized lease revenue of $2,040,674 on January 1, 2021, and lease expense of $62,500 on December 31, 2021.

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a) The shortfall of resources for the month of December 2014 are material X, material Y, material Z, skilled labour, and semi-skilled labour. b) The maximum profit if the company decided to increase the capacity of semi-skilled labour by 2,000 hours is $ 413,000. c) The profit if the company eliminated all the scarce resources is $193,000.

a) By analyzing the given information, it can be seen that there is a shortfall of resources for December 2014. Specifically, the total demand for the product (4,000 units) is higher than the available resources: material X (20,000 kg), material Y (18,000 kg), material Z (12,000 kg), skilled labour (12,000 hours), and semi-skilled labour (2,000 hours).

b) If the company increases the capacity of semi-skilled labour by 2,000 hours, the maximum profit can be calculated by adding the additional revenue from the 2,000 units produced to the total revenue from the 4,000 units (100 x 4,000 = 400,000). The additional revenue can be calculated by multiplying the additional 2,000 units by the cost of production for each unit (6.50 x 2,000 = 13,000).

Thus, the total profit for the company is 413,000 (400,000 + 13,000).

c)  The profit if the company eliminates all the scarce resources can be calculated by subtracting the total cost of production (material X (6.00 x 4,000 = 24,000), material Y (7.50 x 4,000 = 30,000), material Z (16.00 x 4,000 = 64,000), skilled labour (25.50 x 4,000 = 102,000), semi-skilled labour (6.50 x 4,000 = 26,000) and variable overhead cost (1.50 x 4,000 = 6,000)) from the total revenue (400,000).

Thus, the total profit for the company is 193,000 (400,000 - 207,000).

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The expected cost of holding the machine during the next year can be calculated using the carrying cost method.

This method takes into account the initial cost of the asset, its expected remaining useful life, the expected market value of the asset, and the interest rate to determine the expected cost of ownership over a given period of time.

In this case, the initial cost of the machine was $18,000 and it is being depreciated by $3,000 per year for six years. Its current market value is $8,000 and the expected market value one year from now is $7,000. Given an interest rate of 10%, the expected cost of holding the machine during the next year is $1,800. This is calculated by subtracting the expected market value of the asset ($7,000) from the initial cost of the asset ($18,000) and then multiplying this difference by the interest rate (10%).

The resulting figure is the expected cost of holding the machine during the next year ($1,800).

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Incrementality is a way to measure if the change in user behavior was directly caused by exposure to an ad campaign.

It can help test variations of ad creative against each other, provide near real-time attribution to fuel short-term business and bidding decisions, and create top-level modeling to understand what drives sales, including media and all possible external factors.

Incrementality helps marketers determine how effective their campaigns are at driving real outcomes, not just impressions.

It provides data to quantify the incremental lift from a given campaign, instead of relying on unaided recall or self-reported data.

This insight can be used to inform media budget decisions, optimize campaigns, and create better consumer experiences.

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On March 5, 2013, the Dow Jones Industrial Average established a new high. The index closed at 16,634.53, which was up 154.20 that day. The percentage return of the stock market that day was 0.93%.

Dow Jones Industrial Average (DJIA) is a popular index that monitors the stock market's performance. It is also known as the stock market index. It is a weighted index, which means that stocks with a greater market value have a more significant effect on the index's performance than stocks with a lower market value. The formula for calculating the return on investment is as follows:

Return on Investment = (Current Price - Original Price) / Original Price × 100.

By using the above formula, calculate the return on investment for March 5, 2013, as follows:

Return on Investment = (16,634.53 - 16,480.33) / 16,480.33 × 100

Return on Investment = 154.20 / 16,480.33 × 100

Return on Investment = 0.0093 × 100

Return on Investment = 0.93%

Therefore, the return (in percent) of the stock market that day was 0.93%.

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Answer:

False

Explanation:

If you have a reasonable lawyer they can change any lease depending on your circumstance. also depends on the lease

Explanation:

True. A landlord cannot make changes to a lease after either party signs it

The correct statement is D. The reorder level of material B is 30000 units while the reorder quantity of material A is 10000 units.

The reorder level is the level at which you should place an order to the supplier to replenish your stock. This is calculated by adding the maximum stock level to the lead time (in this case, the time it takes to receive the order from the supplier).

For material A, the maximum stock level is 80000 units and the lead time is 3 months, giving a reorder level of 80000 + (3 x 5000) = 95000 units. The reorder quantity for material A is the difference between the maximum stock level and the reorder level, which is 80000 - 95000 = 15000 units.

For material B, the maximum stock level is 60000 units and the lead time is 2 months, giving a reorder level of 60000 + (2 x 4000) = 30000 units. The reorder quantity for material B is the difference between the maximum stock level and the reorder level, which is 60000 - 30000 = 10000 units.

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Markov chain in discrete time is a sequence of random variables, also referred to as states. Continuous-time Markov chains, on the other hand, are stochastic processes where the sequence of state transitions occurs at random times, which might be non-integer.

Discrete-time Markov chains are probabilistic models that describe the evolution of a system in discrete time steps. Each time step is independent of all other time steps, meaning the probability of transitioning from one state to another is dependent only on the current state. In discrete time, the sequence of state transitions occurs at certain points in time, usually at integer values.

Continuous-time Markov chains, on the other hand, are probabilistic models that describe the evolution of a system over a continuous period of time. In this case, the probability of transitioning from one state to another is dependent on the current state and the elapsed time since the last state transition. These kinds of chains arise naturally when events happen randomly over time.

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The definition that best describes an organization is :-B. to complete a plan of action for the future to fit diverse efforts together and to ensure information is shared and problems are solved best defines an organization.

An organization is a group of individuals who work together in a coordinated and structured manner to accomplish a specific goal or set of goals. It is a collection of individuals that share a common goal, work together on specific tasks, and combine their knowledge and abilities to accomplish the goals set by the company or team.

According to the options given in the question, the option that best defines an organization is to complete a plan of action for the future to fit diverse efforts together and to ensure information is shared and problems are solved (option B).

The definition highlights the importance of planning, coordinating, sharing information, and working together to achieve a common goal.

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Auditors need to consider three risks for companies that process web-based sales transactions, including credit card payments: cybersecurity threats, revenue recognition, and compliance risks.

To mitigate the risk of cybersecurity threats, auditors can recommend implementing the latest encryption technologies and ensuring that all software and applications are up-to-date. For example, a mitigation strategy could be to implement two-factor authentication for customers that process credit card payments.

To mitigate the risk of revenue recognition, auditors need to ensure that companies are following the correct accounting policies and principles. A mitigation strategy could be to implement automatic fraud detection mechanisms to detect fraudulent transactions.

To mitigate compliance risks, auditors need to ensure that companies are following all the rules and regulations set by the government. A mitigation strategy could be to conduct regular audits of the company's financial statements and transactions to ensure compliance.

In summary, auditors can mitigate the risks of cybersecurity threats, revenue recognition, and compliance risks for companies that process web-based sales transactions by implementing appropriate mitigation strategies such as two-factor authentication, automatic fraud detection mechanisms, and regular audits.

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The amount of assembly cost that is assigned to titanium racquets when activity-based costing is used is $30,000.

Activity-based costing : Activity-based costing (ABC) is a technique that calculates the cost and performance of resources, activities, and cost objects.  

iven that, the assembly costs for titanium and aluminum racquets are $60,000 and $60,000, respectively. The total estimated overhead costs for inspections is $100,000, and the estimated use of activities per product is 350 mach hrs for titanium racquets and 500 mach hrs for aluminum racquets.

To calculate the assembly cost for titanium racquets:

otal assembly cost =

(Assembly cost for titanium racquets / Total Assembly cost) x Total overhead costTotal Assembly cost

= $60,000 + $60,000

= $120,000(Assembly cost for titanium racquets / Total Assembly cost)

= 50%Total overhead cost

= $30,000

= (50% x $120,000)

Therefore, $30,000 is the amount of assembly cost assigned to titanium racquets when activity-based costing is used.

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Depreciation is the process of allocating the cost of a tangible asset over its useful life. In this example, the asset has a cost of $100,000 and an estimated salvage value of $20,000.

This means that the total depreciable cost of the asset is $80,000 ($100,000 - $20,000).

The useful life of the asset is estimated to be 5 years. To calculate the annual depreciation amount, we need to divide the total depreciable cost by the useful life of the asset. Therefore, the annual depreciation amount would be $16,000 ($80,000 / 5 years).

This means that the company can deduct $16,000 from its taxable income each year for the next five years to account for the cost of the economy asset. The salvage value of $20,000 represents the estimated amount that the company will receive for the asset at the end of its useful life. This salvage value will reduce the amount of depreciation expense that the company can claim in the final year of the asset's useful life.

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Walmart utilizes a blend of in-house and outsourced supply chain management practices. Walmart has additionally fortified and worked on its production network by executing a  vendor management inventory (VMI) model.

The organization works a huge, centralized distribution system and utilizations innovation and information investigation to proficiently deal with its store network tasks. Walmart has put resources into various drives pointed toward working on the supportability, productivity, and speed of its supply chain, including:

These drives assist Walmart with keeping up with its situation as a main retailer and furnishing its clients with excellent items at low costs.

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The gain or loss on disposal when the old van is sold, can be found to be B. £1,000 gain

First, find the amount that the old van was depreciated to from 2011 to 2016. This amount was a straight line depreciation which is :

= ( 28, 000 x 15 % ) x 5 years

=  £21, 000

The netbook value of the van is:

= 28, 000 - 21, 000

= £ 7, 000

The gain on the old van is:

= Amount new van is worth - Amount paid by Malvolio - netbook value of old van

= 35, 000 - 27, 000 - 7, 000

= £ 1, 000 gain

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When there is excess demand in the loanable funds market, the real interest rates will increase. This will lead to a decrease in borrowing and an increase in saving.

The loanable funds market is a market where lenders lend and borrowers borrow money. This market comprises savers, borrowers, and financial intermediaries, including banks, insurance companies, pension funds, and so on.

When there is excess demand in the loanable funds market, this means that there is more demand for money or loans than there is the supply of loans. This will lead to a scarcity of loans, and lenders will have more bargaining power, which leads to an increase in interest rates. When the interest rate increases, the borrowers will have to pay more interest on the loans, and this will lead to a decrease in borrowing.

The borrowers will have to pay more interest on the loans, and this will lead to a decrease in borrowing, which will lower the demand for money. As a result, the demand for loans decreases, and the interest rates come down. Hence, when there is excess demand in the loanable funds market, the real interest rates will increase.

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Given Information: Amount of perpetual 6% debt = $497,000EBIT in perpetuity = $127,000Unlevered cost of capital = 15%Tax rate = 40%Using APV method to calculate the value of the company with leverage Solution: APV Method APV method stands for Adjusted Present Value method.

APV method is a financial approach that calculates the net present value (NPV) of an investment as the sum of the NPVs of all related cash flows, including the impact of financing. It takes into account the value of debt tax shields and other financing side effects. In APV method, the following steps are involved:

1. Calculate the present value of free cash flows to the firm (FCFF) for each year of explicit forecast period.

2. Calculate the present value of tax shield (PVTS).

3. Add the present value of the tax shield to the present value of free cash flows to the firm (PVFCFF) to find the value of the firm.Calculations1. PV of FCFF The formula to calculate PV of FCFF is: PVFCFF = FCFF / (1 + k) where k = unlevered cost of capital FCFF = EBIT (1 - tax rate) + Depreciation - Capital expenditure - change in working capital The calculations are as follows: Year EBIT(1- tax rate)Depreciation Capital expenditure Change in working capitalFCFF$127,000(1 - 0.4)$0$0$0$76,200PVFCFFYear 1PVFCFF= $76,200 / (1+0.15) = $66,086.96(Note: The FCFF value remains constant throughout all years, hence we don't need to calculate for year 2 onwards)2. PV of Tax Shield PV of tax shield is the present value of the tax shield generated by interest tax-deductible payment on debt. The formula to calculate PV of tax shield is: PVTS = Tax shield / (1 + k) where k = unlevered cost of capital Tax shield = Interest payment x Tax rate Year Debt balance Interest payment Tax shield$497,000$29,820$11,928PVTSYear 1PVTS = $11,928 / (1+0.15) = $10,365.22(Note: The interest payment remains constant throughout all years, hence we don't need to calculate for year 2 onwards)

4. Value of the Firm The formula to calculate the value of the firm is: Value of the firm = PVFCFF + PVTS Value of the firm = $66,086.96 + $10,365.22Value of the firm = $76,452.18Therefore, the value of the company with leverage using APV method is $76,452.18.

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An example of neoliberalism in action can be seen in the policies of many governments around the world, including Canada. These policies include privatization of public services, deregulation of industries, and tax cuts for the wealthy.

For instance, in Canada, the federal government has implemented policies such as the Canada-United States-Mexico Agreement (CUSMA) and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which prioritize free trade and deregulation over workers' rights and environmental protections. These policies have contributed to growing income inequality, job insecurity, and environmental degradation.

Critics of neoliberalism argue that it exacerbates social issues by prioritizing profit over people and neglecting the needs of marginalized communities. They advocate for a more socially responsible approach to economic policy, emphasizing public goods and services, environmental protections, and social safety nets to ensure a more equitable distribution of wealth and opportunities.

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A Treasury bill with a face value of $250,000 will have a selling price of the Treasury bill in the market is 249,098.92.

A Treasury bill, also known as a T-bill, is a short-term debt security issued by the U.S. government. Treasury bills have maturities of one year or less, and are sold in denominations ranging from $1,000 to $5,000,000.

Treasury bills are typically sold at a discount to face value, and pay no interest until maturity, at which point the holder receives the full face value of the bill.

We can use the following formula to calculate the price of the Treasury bill:

Price = Face Value / (1 + Yield x Days to Maturity / 360)

Plugging in the given values:

Price = 250000 / (1 + 0.0202 x 32 / 360) = 249098.92

Therefore, the selling price of the Treasury bill in the market is $249,098.92.

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Yes, my response to part e would change if the St. Cloud plant could use the facilities necessary to produce parts for job no. 110 for another job that could earn an incremental profit of $27,000.

The extra profit of $27,000 would make the St. Cloud plant an attractive option, and this would have to be taken into account when making a decision.

In order to determine the best course of action, an analysis would need to be conducted to compare the cost of production at the St. Cloud plant to the cost of production at other plants. The cost of labor, materials, overhead, and other production costs would need to be taken into consideration.

Additionally, the capacity of the St. Cloud plant and the demand for the new product would need to be evaluated to ensure that production would be successful. The decision should be made based on the total cost of production, considering the incremental profit of $27,000, and other factors.

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To record the depreciation for 2020, the journal entry is as follows:

Date: Dec 31, 2020
Account Name: Depreciation Expense | 254,400
Accumulated Depreciation | 254,400

Debit: Depreciation Expense | 254,400
Credit: Accumulated Depreciation | 254,400

To record the disposal of the warehouse in 2021, the journal entry is as follows:

Date: Jan 01, 2021
Account Name: Cash | 30,400
Accumulated Depreciation | 289,600
Inventory | 320,000

Debit: Cash | 30,400
Debit: Accumulated Depreciation | 289,600
Debit: Inventory | 320,000
Credit: Total | 640,000

To record the depreciation for 2021, the journal entry is as follows:

Date: Dec 31, 2021
Account Name: Depreciation Expense | 235,200
Accumulated Depreciation | 235,200

Debit: Depreciation Expense | 235,200
Credit: Accumulated Depreciation | 235,200

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Option (b) subtracted from gross sales to determine net sales is the correct answer. On a multiple-step income statement, the line sales returns and allowances is subtracted from gross sales to determine net sales.

A multiple-step income statement includes several lines for items that measure the costs, expenses, and revenues of the company's operations.

The sales returns and allowances are accounted for under the revenues section of a company's income statement. On a multiple-step income statement, this line item is subtracted from gross sales to determine net sales.

Gross sales refer to the total amount of revenue that a company earns in the reporting period before subtracting any sales returns or discounts.

Net sales are the total sales revenue earned in a reporting period, less any sales returns, allowances, or discounts. So, sales returns and allowances are deducted from gross sales to arrive at net sales.

Hence, option (b) subtracted from gross sales to determine net sales is the correct answer.

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Issuers typically pledge 105 percent to 120 percent in mortgage collateral in excess of par value of the securities issued, in order to overcollateralize mbbs is True.

Issuers typically pledge 105 percent to 120 percent in mortgage collateral in excess of par value of the securities issued, in order to overcollateralize MBBS (Mortgage-Backed Bond Securities). This is true, which is why overcollateralization is used in mortgage-backed securities to ensure the bondholders that they will receive a regular payment on their investments.

Overcollateralization helps in reducing the risks associated with investment in securities issued by the bank and also provide additional security to the bondholders. This additional security to the bondholders is in the form of mortgages held in the pool by the trustee.

These mortgage pools must be created with the same type of mortgages and should be similar in nature, which helps in minimizing risks associated with the bonds issued.

Thus, the use of overcollateralization helps in reducing risks associated with the investment in mortgage-backed securities.

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The MAD for these four weeks is 16.25, the MSE is 281.25, and the MAPE is .178.

To calculate MAD (Mean Absolute Deviation), MSE (Mean Squared Error), and MAPE (Mean Absolute Percentage Error) for these four weeks, we need to first calculate the error, error squared, and percentage error for each week. These values are then used to calculate the MAD, MSE, and MAPE.

MAD = (Sum of absolute errors) / (Number of weeks)
= (|20| + |20| + |10| + |15|) / 4
= (65) / 4
= 16.25

MSE = (Sum of squared errors) / (Number of weeks)
= (400 + 400 + 100 + 225) / 4
= (1125) / 4
= 281.25

MAPE = (Sum of absolute percentage errors) / (Number of weeks)
= (.25 + .20 + .095 + .167) / 4
= (.712) / 4
= .178

Therefore, the MAD for these four weeks is 16.25, the MSE is 281.25, and the MAPE is .178.

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CPA's uses David's work in a manner similar to an internal auditor and complies with AICPA Statements on Auditing Standards, their independence would not be impaired. The correct answer is Option b)  

This is because the AICPA Code of Professional Conduct allows for the use of non-independent individuals on an audit as long as their work is used in a manner similar to an internal auditor and the auditing firm complies with the AICPA Statements on Auditing Standards. The correct answer is Option b)  

This means that Hanson & Potter, CPA's can use David's work as long as they treat it as they would the work of an internal auditor and follow the AICPA guidelines for using the work of non-independent individuals. As long as they do this, their independence with respect to Jackson Spine, Inc. would not be impaired.

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A1: Yes, LFC does have an endowment. This can be found in the Statements of Financial Position under "Temporarily Restricted Net Assets" which increased from $36,000 in 2013 to $112,000 in 2014.

A2: In 2014, $76,000 of LFC's temporarily restricted net assets were reclassified as unrestricted. This can be found in the Statements of Financial Position under the line item "Reclassification from Temporarily Restricted Net Assets". It can also be seen in the Statements of Activities, under the heading "Reclassification from Temporarily Restricted to Unrestricted".

A3: For 2014, LFC's profitability ratios are as follows: Return on Assets (ROA) - 4.5%; Return on Equity (ROE) - 6.3%; Operating Margin (OM) - 17.3%; and Net Margin (NM) - 8.7%. For 2013, the ratios are: ROA - 5.7%; ROE - 8.6%; OM - 22.5%; and NM - 14.2%. The measure in which LFC’s profitability deteriorated the most is the Operating Margin, with a decrease of -5.2% from 2013 to 2014.


A4a: The three revenue or support categories that declined by over 50 percent from 2013 to 2014, excluding interest/investment income and the one-time sale of tax credits, are Admissions Revenue (down 51.3%), Contributions and Grants (down 63.3%), and Other Revenue (down 58.1%).
A4b: The expense category that grew by over 100 percent is Advertising and Promotion (up 119.2%).

A5: LFC's program services ratio for 2014 is 43.2%, and for 2013 it is 50.3%. The percent change from 2013 to 2014 is a decrease of -7.1%. LFC's program services ratio for 2014 is lower than the commonly accepted benchmark of 75%.

A6: Based on my answers to questions 4 and 5, I would recommend that LFC reallocate some of its spending from program services to fund-raising in 2015. The program services ratio has decreased from 50.3% in 2013 to 43.2% in 2014, indicating that less money is being spent on program services than is generally accepted. Increasing fund-raising efforts would help to increase the program services ratio, which would be beneficial for the organization.

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