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An accounting firm has noticed that of the companies it audits, 85% show no inventory shortages, 10% show small inventory shortages and 5% show large inventory shortages. The firm has devised a new accounting test for which it believes the following probabilities hold: P(company will pass test | no shortage) = .90 P(company will pass test | small shortage) = .50 P(company will pass test | large shortage) = .20 a. If a company being audited fails this test, what is the probability of a large or small inventory shortage? b. If a company being audited passes this test, what is the probability of no inventory shortage?
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The loader is predictable to have a four-year life and a $20,600 salvage value. Loader costs are recorded in Equipment account. Evaluate what is the journal Entry?
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Compute the amount of the annual instalment
Determine the breakeven point in units for the Peoria plant and for the Moline plant and evaluate the operating income that would result from the production manager's plan to manufacture 96,000 units at each plant.
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