10.10 The Computer Anxiety Rating Scale
(CARS) measures an individuals level of
computer anxiety, on a scale from 20 (no anxiety) to 100
(highest level of anxiety). Researchers at Miami University
administered CARS to 172 business students. One of the obj

Problem
=36%or.36,thepvalueswill
be.3and.4.
7.30
According to Gallups poll on consumer behavior,
36% of Americans say they will consider only cars manufactured
by an American company when purchasing a new car.
(Data extracted from TheGallupPoll, www.gall

Amount of time spent shopping in the bookstore - Numerical; Continuous because time can be measured
Number of textbooks purchased - Numerical discete; because it is a value that arises through a counting process
Academic major - Categorical; because major

11.21 When performing a X2 test of independence in a contingency table with r rows and c columns, determine the upper-tail
critical value of the test statistic in each of the following circumstances:
a) a = 0.05, r = 4 rows, c = 5 columns
Degrees of freed

Thomas Book Sales Inc.
a) Using accrual accounting and the preceding values, the firm's net profit for the past year =
shipped and billed books- expenses on acquiring books=
$760,000-$300,000=
$460,000
b) Using cash accounting and the preceding values, th

Future Value Calculation
FV^n=PV*(1+r)^n
FV^n= future value at end of period n
PV= present value
r= annual rate of interest paid
n= number of years the money is left in deposit
Case A: The future value for Case-A would be calculated below
FV^2=$1*(1+0.12)

10.55 Consider an experiment with four groups, with eight values in each. For the ANOVA summary table below, fill in all the missing results:
Degrees of
Source
Freedom
Among groups c - 1 = 4 -1 = 3
Within groups n - c = 32 - 4 = 28
Total
n - 1 = 32 - 1 =

Classification of items in cash inflows or outflows or neither:
Items
Cash
Accounts Payable
Notes Payable
Long Term Debt
Inventory
Fixed Assets
Accounts Recievable
Net Profit
Depreciation
Repurchase of Stock
Cash Dividends
Sale of Stock
Change ($)
100
-1,

Slater Lam
a) Annual dollar dividend:
Annual dollar dividend is the amount of dividend calculated
as annual dividend multiplied by the par value of share.
Par value is $80
Annual dividend 11%
Annual dollar dividend is calculated by:
Annual dollar dividend

a) Calulate the rate of return for each year, 2009 through 2012 for "H" Incorporation:
The total rate of return is the total gain or loss experienced on an investment over a given period. Total rate of return or expe
return on an investment over a given p

(A) Calculate nominal rate of interest:
The nominal rate of interest depicts the actual rate of interest paid.
The inflation factor and risk premium are not adjusted in the case of nominal rate of interest.
The nominal rate of interest can be expressed as

Problem 10-4
Bill Williams Flows and Payback Periods
Project A
Project B
Project A
Project B
Initial investment
$ (9,000.00) $ (9,000.00)
# $
(9,000.00)
Year
Operating cash inflows
Cummulative cash flows
1 $
2,200 $
1,500 $
(6,800) $
(7,500.00)
2 $
2,500

Problem 8-9
Rate of return,
Average Return Ratio,
standard deviation,
and coefficient of variation
Year
Solution C)
Beginning
End
Return
2012 $
14.36 $
21.55 $
7.19
2013 $
21.55 $
64.78 $
43.23
2014 $
64.78 $
72.38 $
7.60
2015 $
72.38 $
91.80 $
19.42
B) A

Chapter 1 P-2
Accrual income versus cash flow for a period Thomas Book Sales, Inc., supplies
textbooks to college and university bookstores.
The books are shipped with a proviso
that they must be paid for within 30 days but can be returned for a full refu

P4-5
Classifying inflows and outflows of cash Classify each of the following items as an
inflow (I) or an outflow (O) of cash, or as neither (N).
Item
Cash
Accounts Payable
Notes payable
Long-term debt
Inventory
Fixed assets
Change $ I/O/N
100 O
-1,000 O

Payback Period: The payback period is defined as the total amount of time required to recover the original investment of a pr
When unequal cash flows are there, the payback period can be computed using the following equation:
Payback Period=
(Number of Ye