The common stock of Glick Toys Inc. has a daily standard deviation of stock price returns of 75 basis points (0.75 percent). On a certain day, call it Day 0, Glick Toys announces the launch of a new product line. You have been asked to evaluate whether the announcement was well received by the market. You decide to take the skills you learned in Core Finance and Data Analysis and perform an event study. The expected return on the market portfolio is two basis points a day (0.02 percent). An abnormal return is considered statistically significant if it is larger than two standard deviations in absolute value. Day relative to anncment Stock Price

-4 30

-3 30.33

-2 30.48

-1 30.3

0 31.21

1 31.52

2 31.27

3 31.14

Based on the stock price movement what can you conclude about the announcement and what does it suggest about market efficiency.

Listed below are several transactions that took place during the first two years of operations for the law firm of pete, pete, and roy.year 1 year 2amounts billed to clients for services rendered $ 170,000 $ 220,000 cash collected from clients 160,000 190,000 cash disbursements salaries paid to employees for services rendered during the year 90,000 100,000 utilities 30,000 40,000 purchase of insurance policy 60,000 0 in addition, you learn that the company incurred utility costs of $35,000 in year 1, that there were no liabilities at the end of year 2, no anticipated bad debts on receivables, and that the insurance policy covers a three-year period.required: 1. & 3. calculate the net operating cash flow for years 1 and 2 and determine the amount of receivables from clients that the company would show in its year 1 and year 2 balance sheets prepared according to the accrual accounting model.2. prepare an income statement for each year according to the accrual accounting model.