Oil executives frequently compare the performance and efficiency of their company with those of other major oil companies. The following data is taken from Total Oil's $2013$ accounts.

$$\begin{array}{|l|l|l|l|l|l|l|l|} \hline\text{ Credit } & \text{ Creditors } & \text{ Debtors } & \text{ Long-term } & \text{ Inventories } & \text{ Cost of } & \text{ Capital } & \text{ Credit }\\ \text{ sales (\$m)} & \text{ (accounts } & \text{ (accounts } & \text{ loans(\$m)} & \text{ (\$m) } & \text{ sales (\$m) } & \text{ employed } & \text{ purchases } \\ & \text{ payable) } & \text{ receivable) } &&&& \text{ (\$m) } & \text{ (author’s } \\ & \text{ (\$m) } & \text{ (\$m) } &&&&& \text{ estimate)(\$m)} \\ \hline227969 & 30282 & 23422 & 34574 & 22097 & 160849 & 177555 & 160000 \\ \hline \end{array}$$

Calculate the creditor days ratio for Total Oil in $2013$.

The following observations are on stopping distance (ft) of a particular truck at 20 mph under specified experimental conditions (“Experimental Measurement of the Stopping Performance of a Tractor-Semitrailer from Multiple Speeds,” NHTSA, DOT HS 811 488, June 2011):

$$\begin{matrix} \text{32.1} & \text{30.6} & \text{31.4} & \text{30.4} & \text{31.0} & \text{31.9}\\ \end{matrix}$$

The cited report states that under these conditions, the maximum allowable stopping distance is 30. A normal probability plot validates the assumption that stopping distance is normally distributed. Does the data suggest that true average stopping distance exceeds this maximum value? Test the appropriate hypotheses using $\alpha=.01$.

Oil executives frequently compare the performance and efficiency of their company with those of other major oil companies. The following data is taken from Total Oil's $2013$ accounts.

$$\begin{array}{|l|l|l|l|l|l|l|l|} \hline\text{ Credit } & \text{ Creditors } & \text{ Debtors } & \text{ Long-term } & \text{ Inventories } & \text{ Cost of } & \text{ Capital } & \text{ Credit }\\ \text{ sales (\$m)} & \text{ (accounts } & \text{ (accounts } & \text{ loans(\$m)} & \text{ (\$m) } & \text{ sales (\$m) } & \text{ employed } & \text{ purchases } \\ & \text{ payable) } & \text{ receivable) } &&&& \text{ (\$m) } & \text{ (author’s } \\ & \text{ (\$m) } & \text{ (\$m) } &&&&& \text{ estimate)(\$m)} \\ \hline227969 & 30282 & 23422 & 34574 & 22097 & 160849 & 177555 & 160000 \\ \hline \end{array}$$

Evaluate Total Oil's efficiency and gearing.

Performance of stock screeners. Recall, from Exercise $6.36$ (p. 326), that stock screeners are automated tools used by investment companies to help clients select a portfolio of stocks to invest in. The data on the annualized percentage return on investment (as compared to the Standard & Poor's 500 Index) for 13 randomly selected stock screeners provided by the American Association of Individual Investors (AAII) are repeated in the accompanying table. You want to determine whether $\mu$, the average annualized return for all AAII stock screeners, is positive (which implies that the stock screeners perform better, on average, than the S&P 500). An XLSTAT printout of the analysis is shown on the top of page 394. Locate the observed significance level ( $p$-value) on the printout.

Mark Washington, CFA, is an analyst with BIC. One year ago, BIC analysts predicted that the U.S. equity market would most likely experience a slight downturn and suggested delta-hedging the BIC portfolio. As predicted, the U.S. equity markets did indeed experience a downturn of approximately 4% over a 12-month period. However, portfolio performance for BIC was disappointing, lagging its peer group by nearly 10%. Washington has been told to review the options strategy to determine why the hedged portfolio did not perform as expected. Washington considers a put option that has a delta of −.65. If the price of the underlying asset decreases by $6, then what is the best estimate of the change in option price?

Santana Rey’s two departments, Computer Consulting Services and Computer Workstation Furniture Manufacturing, have each been profitable for Business Solutions. Santana has heard of the cash conversion cycle and wants to use it as another performance measure for the workstation manufacturing department. Data below are for the most recent two quarters.

Required

1. Compute the cash conversion cycle for the first quarter.

2. Compute the cash conversion cycle for the second quarter.

3. Did the cash conversion cycle increase or decrease from the first to the second quarter?

Oil executives frequently compare the performance and efficiency of their company with those of other major oil companies. The following data is taken from Total Oil's $2013$ accounts.

$$\begin{array}{|l|l|l|l|l|l|l|l|} \hline\text{ Credit } & \text{ Creditors } & \text{ Debtors } & \text{ Long-term } & \text{ Inventories } & \text{ Cost of } & \text{ Capital } & \text{ Credit }\\ \text{ sales (\$m)} & \text{ (accounts } & \text{ (accounts } & \text{ loans(\$m)} & \text{ (\$m) } & \text{ sales (\$m) } & \text{ employed } & \text{ purchases } \\ & \text{ payable) } & \text{ receivable) } &&&& \text{ (\$m) } & \text{ (author’s } \\ & \text{ (\$m) } & \text{ (\$m) } &&&&& \text{ estimate)(\$m)} \\ \hline227969 & 30282 & 23422 & 34574 & 22097 & 160849 & 177555 & 160000 \\ \hline \end{array}$$

Calculate the inventory/stock turnover ratio for Total Oil in $2013$.

Is the number of years of competitive running experience related to a runner's distance running performance? The data on nine runners, obtained from the study by Scott Powers and colleagues, are shown in the table:

Runner: 1, 2, 3, 4, 5, 6, 7, 8, 9 Years of Competitive Running: 9, 13, 5, 7, 12, 6, 4, 5, 3 10-Kilometer Finish Time (minutes): 33.15, 33.33, 33.50, 33.55, 33.73, 33.86, 33.90, 34.15, 34.90

a. Calculate the rank correlation coefficient between years of competitive running x and a runner's finish time in the 10-kilometer race. b. Do the data provide evidence to indicate a significant rank correlation between y and x? Test using $\alpha$=.05.

Consider the following key performance indicators, and classify each according to the balanced scorecard perspective it addresses. Choose from financial perspective, customer perspective, internal business perspective, or learning and growth perspective.

a. Number of employee suggestions implemented b. Revenue growth c. Number of on-time deliveries d. Percentage of sales force with access toreal-time inventory levels e. Customer satisfaction ratings f. Number of defects found during manufacturing g. Number of warranty claims h. Return on investment i. Variable cost per unit j. Percentage of market share k. Number of hours of employee training L Number of new products developed m. Yield rate (number of units produced per hour) n. Average repair time o . Employee satisfaction p. Number of repeat customers

Mark Washington, CFA, is an analyst with BIC. One year ago, BIC analysts predicted that the U.S. equity market would most likely experience a slight downturn and suggested delta-hedging the BIC portfolio. As predicted, the U.S. equity markets did indeed experience a downturn of approximately 4% over a 12-month period. However, portfolio performance for BIC was disappointing, lagging its peer group by nearly 10%. Washington has been told to review the options strategy to determine why the hedged portfolio did not perform as expected.

Washington considers a put option that has a delta of 2.65. If the price of the underlying asset decreases by $6, then what is the best estimate of the change in option price?

A simple solar collector is built by placing a 5-cm-diameter clear plastic tube around a garden hose whose outer diameter is 1.6 cm. The hose is painted black to maximize solar absorption, and some plastic rings are used to keep the spacing between the hose and the clear plastic cover constant. During a clear day, the temperature of the hose is measured to be $65^\circ C,$ while the ambient air temperature is $26^\circ C.$ Determine the rate of heat loss from the water in the hose per meter of its length by natural convection. Also, discuss how the performance of this solar collector can be improved. Evaluate air properties at an average temperature of $50^\circ C$ and 1 atm pressure. Is this a good assumption?

The following selected accounts appear in Shaw Company's unadjusted trial balance at December 31, 2018, the end of its fiscal year (all accounts have normal balances).

$$\begin{array}{lrlr} \text{ Prepaid advertising }& \$ 1,200 &\text{ Performance obligations }& \$ 5,400 \\ \text{ Wages expense }& 43,800 &\text{ Service fees revenue }& 87,000 \\ \text{ Prepaid insurance }& 3,420 &\text{ Rental income }& 4,900 \\ \end{array}$$

Prepare entries on January 4. 2019, using the financial statement effects template and in journal entry form, 10 record (1) payment of $2.400 cash in wages. which includes the$1,300 accrued at December 31 and (2) cash receipt of the $1,000 rent revenue owed from the tenant.

Norris Company implemented a quality improvement program and tracked the following for the 5 years:

$$\begin{array}{lccc} & \text { Quality Costs } & \text { Actual Sales } & \text { Costs as a Percentage of Sales } \\ \hline 20 \times 1 & \$ 880,000 & \$ 4,000,000 & 22.00 \% \\ 20 \times 2 & 840,000 & 4,200,000 & 20.00 \\ 20 \times 3 & 765,000 & 4,500,000 & 17.00 \\ 20 \times 4 & 700,000 & 5,000,000 & 14.00 \\ 20 \times 5 & 594,000 & 5,400,000 & 11.00 \end{array}$$

By cost category as a percentage of sales for the same period of time:

$$\begin{array}{lcccc} & \text { Prevention } & \text { Appraisal } & \text { Internal Failure } & \text { External Failure } \\ \hline 20 \mathrm{X} 1 & 1.50 \% & 2.50 \% & 6.50 \% & 11.50 \% \\ 20 \mathrm{X} 2 & 2.75 & 3.25 & 4.00 & 10.00 \\ 20 \mathrm{X} 3 & 3.00 & 5.00 & 2.75 & 6.25 \\ 20 \mathrm{X} 4 & 3.50 & 3.50 & 2.00 & 5.00 \\ 20 \mathrm{X} 5 & 3.75 & 2.25 & 1.50 & 3.50 \end{array}$$

1. Prepare a bar graph that reveals the trend in quality cost as a percentage of sales (time on the horizontal axis and percentages on the vertical). Comment on the message of the graph.

2. Prepare a bar graph for each cost category as a percentage of sales. What does this graph tell you?

Performance data for a pump are

$$\begin{matrix}\text{H (ft)} & \text{179} & \text{176} & \text{165} & \text{145}\\\text{Q (gpm)} & \text{0} & \text{500} & \text{1000} & \text{1500}\\\text{H (ft)} & \text{119} & \text{84} & \text{43}\\\text{Q (gpm)} & \text{2000} & \text{2500} & \text{3000}\\\end{matrix}$$

Estimate the delivery when the pump is used to move water between two open reservoirs through 1200 ft of 12-in.-diameter commercial steel pipe containing two $90^{\circ}$ elbows and an open gate valve if the elevation increase is 50 ft. Determine the gate valve loss coefficient needed to reduce the volume flow rate by half.