Jorge and Sebastian have noticed that what happened with many of these companies influenced the passage of the Sarbanes-Oxley Act. They begin to think about this act and how it has impacted their own job duties as employees of Vesco Industries. They discuss things that have happened since they began working there. 1. When Jorge and his co-workers completed the end-of-quarter income statement, Vesco's chief financial officer, Desmond Harris, made a trip to the accounting department to review the financial reporting materials. Jorge recalls that Mr. Harris had once mentioned that his approval was a requirement under this act that was at one time not necessary.

a. What provision of the Sarbanes-Oxley Act does Mr. Harris's review address? (5 points)

b. What made this provision necessary to add to this law? (5 points)

Astock with a beta of 0.6 has an expected rate of return of 13%. if the market return this year turns out to be 10 percentage points below expectations, what is your best guess as to the rate of return on the stock? (do not round intermediate calculations. enter your answer as a percent rounded to 1 decimal place.)

Acompany using the perpetual inventory system purchased inventory worth $540,000 on account with credit terms of 2/15, n/45. defective inventory of $40,000 was returned 2 days later, and the accounts were appropriately adjusted. if the company paid the invoice 20 days later, the journal entry to record the payment would be

You are thinking of making your mansion more energy efficient by replacing some of the light bulbs with compact fluorescent bulbs, and insulating part or all of your exterior walls. each compact fluorescent light bulb costs $4 and saves you an average of $2 per year in energy costs, and each square foot of wall insulation costs $1 and saves you an average of $0.20 per year in energy costs.† your mansion has 150 light fittings and 3000 sq ft of uninsulated exterior wall. to impress your friends, you would like to spend as much as possible, but save no more than $750 per year in energy costs (you are proud of your large utility bills). how many compact fluorescent light bulbs and how many square feet of insulation should you purchase? how much will you save in energy costs per year? (if an answer does not exist, enter dne.)