...Financial Reporting and Analysis Chapter 4 Solutions Structure of the Balance Sheet and Statement of Cash Flows Exercises Exercises E4-1. Determining collections on account (AICPA adapted) Cash receipts from sales include cash sales plus collections on account computed as follows: Cash sales Beginning accounts receivable Credit sales Less: Ending accounts receivable Total Cash receipts from sales $ 200,000 400,000 3,000,000 __(485,000) $3,115,000 Alternative Solution: T-account analysis of accounts receivable Beginning balance Sales on account Ending balance Accounts Receivable $ 400,000 X Collections on account 3,000,000 $ 485,000 $485,000 = $400,000 + $3,000,000 – X X = $2,915,000 Total cash receipts from sales: Cash sales Collections on accounts receivable Total cash collected on sales $ 200,000 _2,915,000 $3,115,000 E4-2. Determining cash from operations (AICPA adapted) Cash flows from operations: Cash received from customers Rent received Taxes paid Cash paid to employees and suppliers Cash flows from operations $870,000 10,000 (110,000) (510,000) $260,000 Notice that cash dividends paid arises from the issuance of stock, a financing activity, and thus is not included in cash flows from operations. 4-1 E4-3. Determining cash collections on account (AICPA adapted) The provision for bad debts and write-off for uncollectible credit sales are non-cash expenses so they do not enter into the computation...
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...Question 11. In early 2003 Bristol-Myers Squibb announced that it would have to restate its financial statements as a result of stuffing as much as $3.35 billion worth of products into wholesalers’ warehouses from 1999 through 2001. The company’s sales and cost of sales during this period was as follows: | 2001 | 2000 | 1999 | Net sales | $18,139 | $17,695 | $16,502 | Cost of products sold | 5,454 | 4,729 | 4,458 | The company’s marginal tax rate during the three years was 35 percent. What adjustments are required to correct Bristol-Myers Squibb’s balance sheet for December 31, 2001? What assumptions underlie your adjustments? How would you expect the adjustments to affect Bristol-Myers Squibb’s performance in the coming few years. The problem is that the sales that have been recorded and the associated receivables, tax etc., may be overstated because the company has pushed inventory out to warehouses as if the inventory is sold; however, the revenue may not yet have been earned so there is doubt whether the sales are legitimate. In the Bristol-Myers Squibb example, the firm's Trade Receivables, Sales, and Net Profit are overstated. To correct for this problem in the 2001 balance sheet, Trade Receivables needs to decline by $3.35 billion, and Inventories need to increase by an amount that reflects the effect of gross profit margins. The Inventories adjustment can be achieved by multiplying the Trade Receivables adjustment by the ratio of Cost of Sales...
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...CHAPTER 4 Accrual Accounting Concepts Study Objectives 1. Explain the revenue recognition principle and the matching principle. 2. Differentiate between the cash basis and the accrual basis of accounting. 3. Explain why adjusting entries are needed, and identify the major types of adjusting entries. 4. Prepare adjusting entries for deferrals. 5. Prepare adjusting entries for accruals. 6. Describe the nature and purpose of the adjusted trial balance. 7. Explain the purpose of closing entries. 8. Describe the required steps in the accounting cycle. 9. Understand the causes of differences between net income and cash provided by operating activities. 10. Describe the purpose and the basic form of a worksheet. Summary of Questions by Study Objectives and Bloom’s Taxonomy |Item | | 1. | | 1. | | 1. | | 1. ...
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...Solutions to Chapter 4 The Time Value of Money 1. a. b. c. d. $100/(1.08)10 = $46.32 $100/(1.08)20 = $21.45 $100/(1.04)10 = $67.56 $100/(1.04)20 = $45.64 $100 × (1.08)10 = $215.89 $100 × (1.08)20 = $466.10 $100 × (1.04)10 = $148.02 $100 × (1.04)20 = $219.11 2. a. b. c. d. 3. $100 × (1.04)113 = $8,409.45 $100 × (1.08)113 = $598,252.29 4. With simple interest, you earn 4% of $1,000 or $40 each year. There is no interest on interest. After 10 years, you earn total interest of $400, and your account accumulates to $1,400. With compound interest, your account grows to: $1,000 × (1.04)10 = $1480.24 Therefore $80.24 is interest on interest. PV = $700/(1.05)5 = $548.47 5. 4-1 6. Present Value a. $400 Years 11 Future Value $684 Interest Rate ⎡ 684 ⎤ ⎢ 400 ⎥ ⎣ ⎦ ⎡ 249 ⎤ ⎢ 183 ⎥ ⎦ ⎣ (1 / 11) − 1 = 5.00% (1 / 4 ) b. $183 4 $249 − 1 = 8.00% (1 / 7 ) c. $300 7 $300 ⎡ 300 ⎤ ⎢ 300 ⎥ ⎣ ⎦ − 1 = 0% To find the interest rate, we rearrange the basic future value equation as follows: ⎡ FV ⎤ FV = PV × (1 + r) ⇒ r = ⎢ ⎣ PV ⎥ ⎦ t (1 / t ) −1 7. You should compare the present values of the two annuities. a. ⎡ 1 ⎤ 1 − PV = $1,000 × ⎢ = $7,721.73 10 ⎥ ⎣ 0.05 0.05 × (1.05) ⎦ ⎡ 1 ⎤ 1 − PV = $800 × ⎢ = $8,303.73 15 ⎥ ⎣ 0.05 0.05 × (1.05) ⎦ b. ⎡ 1 ⎤ 1 − = $4,192.47 PV = $1,000 × ⎢ 10 ⎥ ⎣ 0.20 0.20 × (1.20) ⎦ ⎡ 1 ⎤ 1 − PV = $800 × ⎢ = $3,740.38 15 ⎥ ⎣ 0.20 0.20 × (1.20) ⎦ c. When the interest rate is low, as...
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...a Solutions for Chapter 4 Audit Risk, Business Risk, and Audit Planning Review Questions: 4-1. Business Risk - Those risks that affect the operations and potential outcomes of organizational activities. Engagement Risk - The risk auditors encounter by being associated with a particular client: loss of reputation, inability of the client to pay the auditor, or financial loss because management is not honest and inhibits the audit process. Financial Reporting Risk - Those risks that relate directly to the recording of transactions and the presentation of financial data in an organization’s financial statements; also referred to as the risk of material misstatement. Audit Risk - The risk that the auditor may provide an unqualified opinion on financial statements that are materially misstated. 2. Business risk management is defined as: “Process, effected by an entity’s board of directors, management and other personnel, applied in strategy setting and across the enterprise, designed to identify potential events that may affect the entity, and manage risks to within its risk appetite, to provide reasonable assurance regarding the achievement of entity objectives.” (COSO, 2004) The organization itself bears the responsibility for effective implementation of ERM. It is important for all organizations to implement an effective ERM so that risks are understood and properly controlled by members of the organization, particularly...
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...Chapter 4. Solution to End-of-Chapter Comprehensive/Spreadsheet Problem Problem 4-24 Corrigan Corporation's December 31 Balance Sheets Assets 2011 2010 Cash $72,000 $65,000 Accounts receivable 439,000 328,000 Inventories 894,000 813,000 Total current assets $1,405,000 $1,206,000 Land and building 238,000 271,000 Machinery 132,000 133,000 Other fixed assets 61,000 57,000 Total assets $1,836,000 $1,667,000 Liabilities and equity Accounts and notes payable $432,000 $409,500 Accrued liabilities 170,000 162,000 Total current liabilities $602,000 $571,500 Long-term debt 404,290 258,898 Common stock 575,000 575,000 Retained earnings 254,710 261,602 Total liabilities and equity $1,836,000 $1,667,000 Corrigan Corporation's December 31 Income Statements 2011 2010 Sales $4,240,000 $3,635,000 Cost of goods sold 3,680,000 2,980,000 Gross operating profit $560,000 $655,000 General admin. and selling epenses 236,320 213,550 Depreciation 159,000 154,500 Miscellaneous 134,000 127,000 EBT $30,680 $159,950 Taxes (40%) 12,272 63,980 Net income $18,408 $95,970 Per-Share Data 2011 2010 EPS $0.80 $4.17 Cash dividends $1.10 $0.95 Market price (average) $12.34 $23.57 P/E...
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...Chapter 4 1. Risk management is the process of identifying risk, as represented by vulnerabilities, to an organization’s information assets and infrastructure, and taking steps to reduce this risk to an acceptable level. 2. According to Sun Tzu, the two key understandings we must achieve to be successful in battle are Know Yourself and know the enemy. Know yourself First, you must identify, examine, and understand the information and systems currently in place within your organization. This is self-evident. To protect assets, which are defined here as information and the systems that use, store, and transmit information, you must know what they are, how they add value to the organization, and to which vulnerabilities they are susceptible. Once you know what you have, you can identify what you are already doing to protect it. Just because a control is in place does not necessarily mean that the asset is protected. Frequently, organizations implement control mechanisms but then neglect the necessary periodic review, revision, and maintenance. The policies, education and training programs, and technologies that protect information must be carefully maintained and administered to ensure that they remain effective. Know the Enemy Having identified your organization’s assets and weaknesses, you move on to Sun Tzu’s second step: Know the enemy. This means identifying, examining, and understanding the threats facing the organization. You must determine which threat aspects most...
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...Chapter Solutions Operations Management.pdf DOWNLOAD HERE CHAPTER 12: INVENTORY MANAGEMENT – Suggested Solutions to ... http://users.ipfw.edu/khamaljn/P301/Class_Notes/Solutions-Chapter12.pdf 1 BUS P301:01 CHAPTER 12: INVENTORY MANAGEMENT – Suggested Solutions to Selected Questions Summer II, 2009 Question 12.5 This is EOQ with D = 19,500 units/yr; H = $ ... CHAPTER 11 Operations Management http://www.eng.uwi.tt/depts/mech/ugrad/courses/meng3006/Week09b.pdf Operations Management, ... • To decouple operations ... CHAPTER 11 11-39 Inventory Management Economic Production Quantity I n v en t o r y L ev el CHAPTER 10 Operations Management - Academic Resources at ... http://academic.missouriwestern.edu/mlewis14/MGT%20416/Lectures/My%20Chap010.pdf Operations Management 8th edition 10-2 Quality Control CHAPTER 10 Quality Control McGraw-Hill/Irwin Operations Management, Eighth Edition, by William J. Stevenson PRODUCTION/OPERATIONS MANAGEMENT - … http://faculty-staff.ou.edu/B/Samir.Barman-1/POMsp02.doc PRODUCTION/OPERATIONS MANAGEMENT. BAD 5262 . SPRING 2002. Course Instructor: Samir Barman, Ph.D. ... Apr 02 Chapter 3 All Example Problems. Operations in a PR: 3.1-3.6 Chapter 7 Accounting for Financial Management http://harbert.auburn.edu/~yostkev/teaching/finc3630/notes/Chapter7solutions.pdf Chapter 7 Accounting for Financial Management ANSWERS TO END-OF-CHAPTER QUESTIONS 7-3 No, because the $20 million of retained earnings would probably not be held as cash...
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...BSOP 209 Week 1 Assignment Solutions To Buy this Class Copy & paste below link in your Brower http://www.homeworkregency.com/downloads/bsop-209-week-1-assignment-solutions/ Or Visit Our Website Visit : http://www.homeworkregency.com Email Us : homeworkregency@gmail.com BSOP 209 Week 1 Assignment Solutions Complete the following problems from Chapter 4 in your text. The Homework Problems Rubric is in Doc Sharing. • Problem 4.2 a, b and c • Problem 4.6 a, b and c • Problem 4.9 a, b, c and d BSOP 209 Week 1 Assignment Solutions To Buy this Class Copy & paste below link in your Brower http://www.homeworkregency.com/downloads/bsop-209-week-1-assignment-solutions/ Or Visit Our Website Visit : http://www.homeworkregency.com Email Us : homeworkregency@gmail.com BSOP 209 Week 1 Assignment Solutions Complete the following problems from Chapter 4 in your text. The Homework Problems Rubric is in Doc Sharing. • Problem 4.2 a, b and c • Problem 4.6 a, b and c • Problem 4.9 a, b, c and d BSOP 209 Week 1 Assignment Solutions To Buy this Class Copy & paste below link in your Brower http://www.homeworkregency.com/downloads/bsop-209-week-1-assignment-solutions/ Or Visit Our Website Visit : http://www.homeworkregency.com Email Us : homeworkregency@gmail.com BSOP 209 Week 1 Assignment Solutions Complete the following problems from Chapter 4 in your text. The Homework Problems Rubric is in Doc Sharing. • Problem 4.2 a, b and c • Problem 4.6...
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...Chapter 5, Problem 1. The equivalent model of a certain op amp is shown in Fig. 5.43. Determine: (a) the input resistance. (b) the output resistance. (c) the voltage gain in dB. 8x104vd Figure 5.43 for Prob. 5.1 Chapter 5, Solution 1. (a) (b) (c) Rin = 1.5 MΩ Rout = 60 Ω A = 8x104 Therefore AdB = 20 log 8x104 = 98.0 dB Chapter 5, Problem 2 The open-loop gain of an op amp is 100,000. Calculate the output voltage when there are inputs of +10 µV on the inverting terminal and + 20 µV on the noninverting terminal. Chapter 5, Solution 2. v0 = Avd = A(v2 - v1) = 105 (20-10) x 10-6 = 1V PROPRIETARY MATERIAL. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. No part of this Manual may be displayed, reproduced or distributed in any form or by any means, without the prior written permission of the publisher, or used beyond the limited distribution to teachers and educators permitted by McGraw-Hill for their individual course preparation. If you are a student using this Manual, you are using it without permission. Chapter 5, Problem 3 Determine the output voltage when .20 µV is applied to the inverting terminal of an op amp and +30 µV to its noninverting terminal. Assume that the op amp has an open-loop gain of 200,000. Chapter 5, Solution 3. v0 = Avd = A(v2 - v1) = 2 x 105 (30 + 20) x 10-6 = 10V Chapter 5, Problem 4 The output voltage of an op amp is .4 V when the noninverting input is 1 mV. If the open-loop gain of the op amp is 2 × 106, what is the inverting...
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... FOR MORE CLASSES VISIT www.fin534tutor.com FIN 534 Week 1 Chapter 1 Solution FIN 534 Week 1 Chapter 2 Solution FIN 534 Week 2 Chapter 3 Solution FIN 534 Week 3 Chapter 4 Solution FIN 534 Week 3 Chapter 5 Solution FIN 534 Week 4 Chapter 6 Solution FIN 534 Week 4 Chapter 7 Solution FIN 534 Week 5 Chapter 8 Solution FIN 534 Week 5 Chapter 9 Solution FIN 534 Week 6 Chapter 10 Solution FIN 534 Week 6 Chapter 11 Solution FIN 534 Week 7 Chapter 12 Solution FIN 534 Week 7 Chapter 13 Solution FIN 534 Week 8 Chapter 14 Solution FIN 534 Week 8 Chapter 15 Solution FIN 534 Week 9 Chapter 16 Solution FIN 534 Week 10 Chapter 17 Solution Fin 534 Week 1 Quiz 1 FIN 534 Week 3 Quiz 2 FIN 534 Week 4 Quiz 3 FIN 534 Week 5 Quiz 4 FIN 536 Week 6 Quiz 5 FIN 534 Week 7 Quiz 6 FIN 534 Week 8 Quiz 7 FIN 534 Week 9 Quiz 8 FIN 534 Week 10 Quiz 9 FIN 534 Week 11 Quiz 10 FIN 534 Week 1 DQ 1 FIN 534 Week 1 DQ 2 FIN 534 Week 2 DQ 1 FIN 534 Week 2 DQ 2 FIN 534 Week 3 DQ 1 FIN 534 Week 3 DQ 2 FIN 534 Week 4 DQ 1 FIN 534 Week 4 DQ 2 FIN 534 Week 5 DQ 1 FIN 534 Week 6 DQ 1 FIN 534 Week 7 DQ 1 FIN 534 Week 7 DQ 2 FIN 534 Week 8 DQ 1 FIN 534 Week 8 DQ 2 FIN 534 Week 9 DQ 1 FIN 534 Week 9 DQ 2 FIN 534 Week 10 DQ 1 FIN 534 Week 10 DQ 2 FIN 534 Week 11 DQ 1 FIN 534 Week 11 DQ 2 ------------------------------------------------------------------------------------ FIN 534 Week 1 Chapter 1 Solution (Str Course) FOR MORE CLASSES VISIT www.fin534tutor.com 1. Which...
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...Business Decision Making Session – IV Chapter 11: Linear Programming Chapter 12: Transportation, Transshipment, and Assignment Problems Chapter 13: Decision Analysis Faculty Pankaj Dutta Chapter – 11 Linear Programming LPP solution through Excel Solver: The Steps in Implementing an LP Model in a Spreadsheet: 1. 2. 3. 4. Organize the data for the model on the spreadsheet. Reserve separate cells in the spreadsheet for each decision variable in the model. Create a formula in a cell in the spreadsheet that corresponds to the objective function. For each constraint, create a formula in a separate cell in the spreadsheet that corresponds to the left-hand side (LHS) of the constraint. PANKAJ DUTTA IMTCDL Chapter – 11 Linear Programming LPP solution through Excel Solver: Max Z = 350X1 + 300X2 Subject To 1X1 + 1X2 ≤ 200 9X1 + 6X2 ≤ 1566 12X1+16X2 ≤ 2880 X1 , X 2 ≥ 0 1. Organize the data for the model on the spreadsheet. PANKAJ DUTTA IMTCDL Chapter – 11 Linear Programming LPP solution through Excel Solver: Max Z = 350X1 + 300X2 Subject To 1X1 + 1X2 ≤ 200 9X1 + 6X2 ≤ 1566 12X1+16X2 ≤ 2880 X1 , X 2 ≥ 0 1. Organize the data for the model on the spreadsheet. Changing cells Target cell PANKAJ DUTTA IMTCDL Constraint cells Chapter – 11 Linear Programming Max Z = 350X1 + 300X2 Subject To 1X1 + 1X2 ≤ 200 9X1 + 6X2 ≤ 1566 12X1+16X2 ≤ 2880 X1 , X 2 ≥ 0 LPP solution through Excel Solver: 1. Organize the...
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...Chapter 3, Problem 1. Determine Ix in the circuit shown in Fig. 3.50 using nodal analysis. 1 kΩ Ix 9V + _ 2 kΩ + _ 6V 4 kΩ Figure 3.50 For Prob. 3.1. Chapter 3, Solution 1 Let Vx be the voltage at the node between 1-kΩ and 4-kΩ resistors. 9 − Vx 6 − Vx Vk + = 1k 4k 2k Vx Ix = = 3 mA 2k ⎯⎯ Vx = 6 → PROPRIETARY MATERIAL. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. No part of this Manual may be displayed, reproduced or distributed in any form or by any means, without the prior written permission of the publisher, or used beyond the limited distribution to teachers and educators permitted by McGraw-Hill for their individual course preparation. If you are a student using this Manual, you are using it without permission. Chapter 3, Problem 2. For the circuit in Fig. 3.51, obtain v1 and v2. Figure 3.51 Chapter 3, Solution 2 At node 1, − v1 v1 v − v2 − = 6+ 1 10 5 2 At node 2, 60 = - 8v1 + 5v2 (1) v2 v − v2 = 3+ 6+ 1 4 2 Solving (1) and (2), v1 = 0 V, v2 = 12 V 36 = - 2v1 + 3v2 (2) PROPRIETARY MATERIAL. © 2007 The McGraw-Hill Companies, Inc. All rights reserved. No part of this Manual may be displayed, reproduced or distributed in any form or by any means, without the prior written permission of the publisher, or used beyond the limited distribution to teachers and educators permitted by McGraw-Hill for their individual course preparation. If you are a student using this Manual, you are using it without permission. Chapter...
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...300 Quizzes Week 1-11 Solution All possible questions with answers BUS 300 Week 2 Quiz 1: Chapters 1 and 2 BUS 300 Week 3 Quiz 2: Chapters 3 and 4 BUS 300 Week 4 Quiz 3: Chapters 5 and 6 BUS 300 Week 5 Quiz 4: Chapters 7 and 8 BUS 300 Week 6 Quiz 5: Chapters 9 and 10 BUS 300 Week 7 Quiz 6: Chapters 11 and 12 BUS 300 Week 8 Quiz 7: Chapters 13 and 14 BUS 300 Week 9 Quiz 8: Chapters 15 and 16 BUS 300 Week 10 Quiz 9: Chapters 17 and 18 BUS 300 Week 11 Quiz 10: Chapter 19 BUS 300 Quizzes Week 1-11 Solution All possible questions with answers BUS 300 Week 2 Quiz 1: Chapters 1 and 2 BUS 300 Week 3 Quiz 2: Chapters 3 and 4 BUS 300 Week 4 Quiz 3: Chapters 5 and 6 BUS 300 Week 5 Quiz 4: Chapters 7 and 8 BUS 300 Week 6 Quiz 5: Chapters 9 and 10 BUS 300 Week 7 Quiz 6: Chapters 11 and 12 BUS 300 Week 8 Quiz 7: Chapters 13 and 14 BUS 300 Week 9 Quiz 8: Chapters 15 and 16 BUS 300 Week 10 Quiz 9: Chapters 17 and 18 BUS 300 Week 11 Quiz 10: Chapter 19 BUS 300 Quizzes Week 1-11 Solution All possible questions with answers BUS 300 Week 2 Quiz 1: Chapters 1 and 2 BUS 300 Week 3 Quiz 2: Chapters 3 and 4 BUS 300 Week 4 Quiz 3: Chapters 5 and 6 BUS 300 Week 5 Quiz 4: Chapters 7 and 8 BUS 300 Week 6 Quiz 5: Chapters 9 and 10 BUS 300 Week 7 Quiz 6: Chapters 11 and 12 BUS 300 Week 8 Quiz 7: Chapters 13 and 14 BUS 300 Week 9 Quiz 8: Chapters 15 and 16 BUS 300 Week 10 Quiz 9: Chapters 17 and 18 BUS 300...
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...Solutions to Case Problems Manual to Accompany An Introduction To Management Science Quantitative Approaches To Decision Making Twelfth Edition David R. Anderson University of Cincinnati Dennis J. Sweeney University of Cincinnati Thomas A. Williams Rochester Institute of Technology R. Kipp Martin University of Chicago South-Western Cincinnati, Ohio Contents Preface Chapter 1: Introduction ♦ Scheduling a Golf League Chapter 2: An Introduction to Linear Programming ♦ Workload Balancing ♦ Production Strategy ♦ Hart Venture Capital Chapter 3: Linear Programming: Sensitivity Analysis and Interpretation of Solution ♦ Product Mix ♦ Investment Strategy ♦ Truck Leasing Strategy Chapter 4: Linear Programming Applications in Marketing, Finance and Operations Management ♦ Planning an Advertising Campaign ♦ Phoenix Computer ♦ Textile Mill Scheduling ♦ Workforce Scheduling ♦ Duke Energy Coal Allocation Chapter 6: Distribution and Network Models ♦ Solution Plus ♦ Distribution Systems Design Chapter 7: Integer Linear Programming ♦ Textbook Publishing ♦ Yeager National Bank ♦ Production Scheduling with Changeover Costs Chapter 8: Nonlinear Optimization Models ♦ Portfolio Optimization with Transaction Costs Chapter 9: Project Scheduling: PERT/CPM ♦ R.C. Coleman Chapter 10: Inventory Models ♦ Wagner Fabricating Company ♦ River City Fire Department Chapter 11: Waiting Line Models ♦ Regional Airlines ♦ Office Equipment, Inc. Chapter 12: Simulation ♦ Tri-State Corporation...
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