financial accounting depreciation accounting 497175

Aug 29, 2021 | Uncategorized

Financial Accounting

1. On September 30 of the current year, a company acquired and placed in service a machine at a cost of $700,000. It has been estimated that the machine has a service life of five years and a salvage value of $40,000. Using the double-declining-balance method of depreciation, prepare a schedule showing depreciation amounts for the current year and the next 4 years (round answers to the nearest dollar). The company closes its books on December 31 of each year.

Answer:

2. A company purchased land with a building for a total cost of $2,570,000 ($500,000 paid in cash and the balance on a long-term note). It was estimated that the land and building had market values of $900,000 and $2,100,000, respectively.

Determine the cost to be apportioned to the land and to the building and prepare the journal entry to record the acquisition.

Answer:

Asset Appraised Value Percent of Total Apportioned Cost

Land

Building

Total

Land…………………………

Building……………………..

Cash……………………..

Long-Term Note Payable.

3. On January 1, a machine costing $260,000 with a 4-year life and an estimated $5,000 salvage value was purchased. It was also estimated that the machine would produce 500,000 units during its life. The actual units produced during its first year of operation were 110,000. Determine the amount of depreciation expense for the first year under each of the following assumptions:

1. The company uses the straight-line method of depreciation.

2. The company uses the units-of-production method of depreciation.

3. The company uses the double-declining-balance method of depreciation.

4. A company purchased a truck on October 1 of the current year at a cost of $40,000. The truck is expected to last six years and has a salvage value of $2,200. The company’s annual accounting period ends on December 31.

1. What is the depreciation expense for the current year, assuming the straight-line method is used?

2. What is the depreciation expense for the current year, assuming the double-declining-balance method is used?

5. On July 1 of the current year, a company purchased and placed in service a machine with a cost of $240,000. The company estimated the machine’s useful life to be four years or 60,000 units of output with an estimated salvage value of $60,000. During the current year, 15,000 units were produced.

Prepare the necessary December 31 adjusting journal entry to record depreciation for the current year assuming the company uses:

a. The straight-line method of depreciation

b. The units-of-production method of depreciation

c. The double-declining balance method of depreciation

Answer:

a. Depreciation Expense Machinery…………………………..

Accumulated Depreciation Machinery…….:

b. Depreciation Expense Machinery…………………

Accumulated Depreciation Machinery

c. Depreciation Expense Machinery…………………

Accumulated Depreciation Machinery

fin 5500 497128

Aug 29, 2021 | Uncategorized

1. On January 1, 2013, Daniels Corporation issued $5,000,000, 10-year, 8% bonds at 103. Interest is payable semiannually on January 1 and July 1. The journal entry to record this transaction on January 1, 2013 is

a. Cash 5,000,000
Bonds Payable 5,000,000

b. Cash 5,150,000
Bonds Payable 5,150,000

c. Premium on Bonds Payable 150,000
Cash 5,000,000
Bonds Payable 5,150,000

d. Cash 5,150,000
Bonds Payable 5,000,000
Premium on Bonds Payable 150,000

2. Levin Company issued 500 shares of no-par common stock for $5,500. Which of the following journal entries would be made if the stock has a stated value of $2 per share?

a. Cash 5,500
Common Stock 5,500

b. Cash 5,500
Common Stock 1,000 Paid-in Capital in Excess of Par 4,500

c. Cash 5,500
Common Stock 1,000
Paid-in Capital in Excess of Stated Value 4,500

d. Common Stock 5,500
Cash 5,500

3. Motes industries owns 45% of Newton Company. For the current year, Newton reports net income of $250,000 and declares and pays a $60,000 cash dividend. Which of the following correctly presents the journal entries to record Motes equity in Newton s net income and the receipt of dividends from Newton?

a. Dec. 31 Stock Investments 112,500
Revenue from Stock Investments 112,500
Dec. 31 Cash 27,000
Stock Investments 27,000

b. Dec. 31 Stock Investments 112,500
Revenue from Stock Investments 112,500
Dec. 31 Cash 60,000
Stock Investments 60,000

c. Dec. 31 Stock Investments 85,500
Revenue from Stock Investments 85,500
Dec. 31 Cash 27,000
Stock Investments 27,000

d. Dec. 31 Revenue from Stock Investments 112,500
Stock Investments 112,500
Dec. 31 Stock Investments 27,000
Cash 27,000

4. Talbot, Inc. has the following income statement (in millions):
Wilkinson, INC.
Income Statement
For the Year Ended December 31, 3
Net Sales $300
Cost of Goods Sold 120
Gross Profit 180
Operating Expenses 44
Net Income $136

Using vertical analysis, what percentage is assigned to Cost of Goods Sold?

a. 30%
b. 40%
c. 100%
d. None of the above

5. Mah, Inc. completed Job No. B14 during 2013. The job cost sheet listed the following:
Direct materials $55,000
Direct labor $30,000
Manufacturing overhead applied $20,000
Units produced 3,000 units
Units sold 1,800 units

How much is the cost of the finished goods on hand from this job?

a. $105,000
b. $63,000
c. $42,000
d. $51,000

6. In the month of June, a department had 20,000 units in beginning work in process that were 70% complete. During June, 80,000 units were transferred into production from another department. At the end of June there were 10,000 units in ending work in process that were 40% complete. Materials are added at the beginning of the process, while conversion costs are incurred uniformly throughout the process. The equivalent units of production for materials for June were

a. 90,000 equivalent units.
b. 100,000 equivalent units.
c. 104,000 equivalent units.
d. 80,000 equivalent units.

7. A company budgeted unit sales of 204,000 units for January, 2013 and 240,000 units for February, 2013. The company has a policy of having an inventory of units on hand at the end of each month equal to 30% of next month’s budgeted unit sales. If there were 61,200 units of inventory on hand on December 31, 2013, how many units should be produced in January, 2013 in order for the company to meet its goals?

a. 214,800 units
b. 204,000 units
c. 193,200 units
d. 276,000 units

8. A company’s planned activity level for next year is expected to be 200,000 machine hours. At this level of activity, the company budgeted the following manufacturing overhead costs:
Variable Fixed
Indirect materials $280,000 Depreciation $120,000
Indirect labor 400,000 Taxes 20,000
Factory supplies 40,000 Supervision 100,000
A flexible budget prepared at the 160,000 machine hours level of activity would show total manufacturing overhead costs of

a. $576,000.
b. $720,000.
c. $768,000.
d. $816,000.

9. A company developed the following per-unit standards for its product: 2 pounds of direct materials at $4 per pound. Last month, 1,500 pounds of direct materials were purchased for $5,700. The direct materials price variance for last month was

a. $5,700 favorable.
b. $300 favorable.
c. $150 favorable.
d. $300 unfavorable.

10. In incremental analysis,

a. costs are not relevant if they change between alternatives.
b. all costs are relevant if they change between alternatives.
c. only fixed costs are relevant.
d. only variable costs are relevant.

Problem 1:
Here are comparative balance sheets for Hayes Company.
Hayes Company
Comparative Balance Sheets
December 31, 2013
Assets 2013 2012
Cash $ 43,000 $ 10,000
Accounts receivable 18,000 14,000
Inventories 25,000 18,000
Prepaid expenses 6,000 9,000
Long-term investments 0 18,000
Equipment 60,000 32,000
Accumulated depreciation Equipment (20,000) (14,000)
Total assets $ 122,000 $ 87,000

Liabilities and Stockholder s Equity
Accounts payable $ 17,000 $ 7,000
Bonds payable 37,000 47,000
Common stock ($1 par) 40,000 23,000
Retained earnings 28,000 10,000
Total liabilities and stockholder s equity $ 122,00 $ 87,000

Additional information:
1. The 2013 Income Statement reported $6,000 in depreciation expense, a $4,000 loss on
sale of investments and Net income of $43,000.
2. Cash dividends of $15,000 were declared and paid.
3. Long-term investments that has a cost of $18,000 were sold for $14,000
4. Sales for 2013 were $120,000.
Instructions: Prepare a statement of cash flows for 2013 using the indirect method.
Hayes Company
Statement of Cash Flows
For the Year Ended December 31, 2013

Adjustments to reconcile net income to net cash provided by operating activities

Problem 2:
Doherty Corporation is projecting a cash balance of $31,785 in its December 31, 2013, balance sheet. Doherty schedule of expected collections from customers for the first quarter of 2013 shows total collections of $189,885. The schedule of expected payments for direct materials for the first quarter of 2013 shows total payments of $40,200. Other information gathered for the first quarter of 2013 is: sale of equipment $3,392; direct labor $70,178, manufacturing overhead $34,583, and purchase of securities $12,372. Selling and administrative expenses are projected to be $45,117; this figure includes $1,117 in depreciation expense on the office equipment. All costs and expenses will be paid in cash. Doherty wants to maintain a balance of at least $30,000 cash at the end of each quarter.

Instructions: Complete the cash budget for the first quarter.

Doherty Corporation
Cash Budget
For the Quarter Ending March 31, 2013

Problem 3

Delaney Corporation has the following cost records for February 2013.

Indirect factory labor $ 4,612 Factory utilities $ 601
Direct materials used 22,361 Depreciation, factory equipment 1,585
Work in process, 6/1/12 2,769 Direct labor 31,084
Work in process, 6/30/12 3,733Maintenance, factory equipment 1,792
Finished goods, 6/1/12 4,609 Indirect materials 2,268
Finished goods, 6/30/12 7,429 Factory manager’s salary 3,315

Instructions: Prepare a cost of goods manufactured schedule for February 2013.

Delaney Corporation
Cost of Goods Manufactured Schedule
For the Month Ended June 30, 2013

Manufacturing overhead:

Problem 4:
Wallace Corporation has 72,615 shares of common stock outstanding. It declares a $2.10 per share cash dividend on August 1 to stockholders of record on September 15. The dividend is paid on October 31.

Instructions: Prepare the entries on the appropriate dates to record the declaration and payment of the cash dividend.

Date Account Description Debit Credit

Problem 5:
Hawkins Manufacturing incurs unit costs of $7.90 ($6.10 variable and $1.80 fixed) in making a sub-assembly part for its finished product. A supplier offers to make 12,000 of the assembly part at $5.75 per unit. If the offer is accepted, Hawkins will save all variable costs but no fixed costs.

Instructions: Prepare an analysis showing the total cost savings, if any, Hawkins will realize by buying the part.

Make Buy

Total annual cost

Hawkins Company should _______________ the part because total annual costs to
make are less than total costs to buy.

Problem 6
On July 1, Ketel Corporation purchases 500,000 shares of its $6 par value common stock for the treasury at a cash price of $10 per share. On September 1, it sells 275,000 shares of the treasury stock for cash at $13 per share. The balance in the retained earnings account is $6,345,000.

Instructions: Journalize the two treasury stock transactions.

Date Account Description Debit Credit

Problem 7:
Reed Company has a unit-selling price of $500, variable costs per unit of $269, and fixed costs of $265,580.

Instructions: Compute the break-even point in units using either (a) the mathematical equation or (b) contribution margin per unit. Round answer up to the next whole unit.

Problem 8:
Lopez Company has a factory machine with a book value of $89,851 and a remaining useful life of 4 years. A new machine is available at a cost of $325,275. This machine will have a 4-year useful life with no salvage value. The new machine will lower annual variable manufacturing costs from $630,925 to $425,840.

Instructions: Prepare an analysis showing whether the old machine should be retained or replaced.

Retain Equipment Replace Equipment

Total costs

The equipment should be _______________ because total costs are lower than to retain the machine.

Problem 9:
For Mathers Company, variable costs are 68% of sales, and fixed costs are $215,000. Management’s net income goal is $68,610.

Instructions: Compute the required sales needed to achieve management’s target net income of $78,610.

fin 571 final exam 497129

Aug 29, 2021 | Uncategorized

Final Exam Please provide your answers as follows in the Assignment newsgroup (Excel spreadsheet is preferred): 1. A 2. B 3. B, etc Chapter 1 The Goals and Functions of Financial Management Multiple Choice Questions 1. What is the primary goal of financial management? A) Increased earnings B) Maximizing cash flow C) Maximizing shareholder wealth D) Minimizing risk of the firm Answer: C Difficulty: Easy Type: Memorization 2. The partnership form of organization A) avoids the double taxation of earnings and dividends found in the corporate form of organization. B) usually provides limited liability to the partners. C) has unlimited life. D) simplifies decision making. Answer: A Difficulty: Easy Type: Memorization 3. Increased productivity due to technology has A) increased corporations’ reliance on debt for capital expansion needs. B) created larger asset values on the firm’s historical balance sheet. C) made it cheaper (in terms of interest costs) for firms to borrow money. D) helped to keep corporate costs in check. Answer: D Difficulty: Medium Type: Conceptual 4. Insider trading occurs when A) someone has information not available to the public which they use to profit from trading in stocks. B) corporate officers buy stock in their company. C) lawyers, investment bankers, and others buy common stock in companies represented by their firms. D) any stock transactions occur in violation of the Federal Trade Commissions restrictions on monopolies. Answer: A Difficulty: Medium Type: Memorization Chapter 2 Review of Accounting 5. When a firm’s earnings are falling more rapidly than its stock price, its P/E ratio will: A) remain the same B) go up C) go down D) could go either up or down

fin 571 wiley week 6 answers 497130

Aug 29, 2021 | Uncategorized

1. Briarcrest Condiments is a spice-making firm. Recently, it developed a new process for producing spices. The process requires new machinery that would cost $1,675,348. have a life of five years, and would produce the cash flows shown in the following table.

Year Cash Flow
1 $610,331
2 -207,722
3 964,925
4 843,041
5 595,412

What is the NPV if the discount rate is 16.84 percent? (Enter negative amounts using negative sign e.g. -45.25. Round answer to 2 decimal places, e.g. 15.25.)
NPV is $_____________

2.Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $11.90 million. This investment will consist of $2.40 million for land and $9.50 million for trucks and other equipment. The land, all trucks, and all other equipment is expected to be sold at the end of 10 years at a price of $5.04 million, $2.47 million above book value. The farm is expected to produce revenue of $2.01 million each year, and annual cash flow from operations equals $1.83 million. The marginal tax rate is 35 percent, and the appropriate discount rate is 9 percent. Calculate the NPV of this investment. (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.25.)

NPV$ ___________

The project should be accepted or rejected

3. Bell Mountain Vineyards is considering updating its current manual accounting system with a high-end electronic system. While the new accounting system would save the company money, the cost of the system continues to decline. The Bell Mountain s opportunity cost of capital is 17.9 percent, and the costs and values of investments made at different times in the future are as follows:

Year Cost Value of Future Savings
(at time of purchase)
0 $5,000 $7,000
1 4,500 7,000
2 4,000 7,000
3 3,500 7,000
4 3,000 7,000
5 2,500 7,000
Calculate the NPV of each choice. (Round answers to the nearest whole dollar, e.g. 5,275.)
The NPV of each choice is:

NPV0 = $_________

NPV1 = $________

NPV2 = $_________

NPV3 = $_________

NPV4 = $_________

NPV5 = $_________

Suggest when should Bell Mountain buy the new accounting system?
Bell Mountain should purchase the system in .
year 1 or year 2 or year 3 or year 4

4.Chip s Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 84 percent as high if the price is raised 14 percent. Chip s variable cost per bottle is $10, and the total fixed cash cost for the year is $100,000. Depreciation and amortization charges are $20,000, and the firm has a 30 percent marginal tax rate. Management anticipates an increased working capital need of $3,000 for the year. What will be the effect of the price increase on the firm s FCF for the year? (Round answers to nearest whole dollar, e.g. 5,275.)

At $20 per bottle the Chip s FCF is $__________ and at the new price Chip s FCF is $____________.

5.Capital Co. has a capital structure, based on current market values, that consists of 20 percent debt, 1 percent preferred stock, and 79 percent common stock. If the returns required by investors are 10 percent, 11 percent, and 16 percent for the debt, preferred stock, and common stock, respectively, what is Capital s after-tax WACC? Assume that the firm s marginal tax rate is 40 percent. (Round intermediate calculations to 4 decimal places, e.g. 1.2514 and final answer to 2 decimal places, e.g. 15.25%.)

After tax WACC =_____________%

fin 6301 497131

Aug 29, 2021 | Uncategorized

PROBLEM SET 4

1. Consider Macbeth Spot Removers, a publically traded company with an infinite life span, which faces a range of annual operating incomes as depicted in the table below. The rate of return on Treasury bonds is 10%.

a. Calculate the earnings per share and return on equity in the table above. Macbeth Spot Removers issues $2,400 of risk-free debt and uses the proceeds to repurchase 200 shares.

b. Rework the table above to show how earning per share and equity returns now vary with operating income.

c. If the beta of Macbeth s unlevered assets is 0.8 and its debt is risk-free, what would be the beta of the equity after the debt issue?

Ms. Macbeth s investment bankers have just informed her that the new issue of debt is risky. Debtholders will demand a return of 12.5%, which is 2.5% above the risk-free interest rate.

d. How does this affect return on assets and return on equity? Calculate these values.

e. Suppose that the of unlevered equity was 0.6. What will _A, _E, and _D be after the change to the capital structure?

2. Happy Valet, Inc. has a 14.5% cost of unlevered equity and can issue debt at a rate of 8%. It faces marginal corporate income tax rate of 40% and has debt and equity assets of 30% and 70%, respectively (calculated using market values).

a. What rate of return do stockholders require on Happy Valet s levered equity assets?

b. What is the firm s WACC?

3. Consider the case of Henrietta Ketchup, a budding entrepreneur with two possible investment projects that offer the following payoffs:

Ms. Ketchup approaches her bank and asks to borrow the present value of $10 (she will fund the rest out of internal funds).

a. Calculate the expected payoffs to the bank and to Ms. Ketchup if the bank lends the present value of $10. Which project would Ms. Ketchup undertake?

b. Is this the same project that the bank would want Ms. Ketchup to undertake? Explain why or why not.

c. What is the maximum amount the bank could lend that would induce Ms. Ketchup to take the bank s preferred project?

d. If the bank was to lend the $10, but was acting strategically in its own interest, what interest rate would the bank require on its loan?

4. You have the following information about Ledd a publicly traded (and therefore infinitely lived) company:

Operating income: $20 million

Cost of unlevered equity: 10%

Risk-free interest rate: 5%

Corporate marginal tax rate: 0

a. If Ledd is financed entirely by equity,

i. What is the value of the firm?

ii. What is the return required by stockholders?

iii. What is the company s WACC?

b. Ledd decides to issue bonds with the market value of 40% of total assets, using the proceeds to repurchase equity. The bonds are considered to be risk-free.

i. What is the value of Ledd with the new capital structure?

ii. What is the return required by stockholders of the leveraged firm?

iii. What is the WACC?

iv. What is the tax shield of debt?

c. The government implements a marginal corporate tax rate of 36%.

i. Recalculate your answers to a) and b) in a world with taxes.

fin370 497132

Aug 29, 2021 | Uncategorized

fin 571 for john canther 497133

Aug 29, 2021 | Uncategorized

Capital Co. has a capital structure, based on current market values, that consists of 42 percent debt, 13 percent preferred stock, and 45 percent common stock. If the returns required by investors are 10 percent, 11 percent, and 18 percent for the debt, preferred stock, and common stock, respectively, what is Capital s after-tax WACC? Assume that the firm s marginal tax rate is 40 percent.Chip s Home Brew Whiskey management forecasts that if the firm sells each bottle of Snake-Bite for $20, then the demand for the product will be 15,000 bottles per year, whereas sales will be 91 percent as high if the price is raised 9 percent. Chip s variable cost per bottle is $10, and the total fixed cash cost for the year is $100,000. Depreciation and amortization charges are $20,000, and the firm has a 30 percent marginal tax rate. Management anticipates an increased working capital need of $3,000 for the year. What will be the effect of the price increase on the firm s FCF for the year?

Bell Mountain Vineyards is considering updating its current manual accounting system with a high-end electronic system. While the new accounting system would save the company money, the cost of the system continues to decline. The Bell Mountain s opportunity cost of capital is 16.7 percent, and the costs and values of investments made at different times in the future are as follows:

Calculate the NPV of each choice.
(Round answers to the nearest whole dollar, e.g. 5,275.)

The NPV of each choice is:

Archer Daniels Midland Company is considering buying a new farm that it plans to operate for 10 years. The farm will require an initial investment of $12.20 million. This investment will consist of $2.90 million for land and $9.30 million for trucks and other equipment. The land, all trucks, and all other equipment is expected to be sold at the end of 10 years at a price of $5.14 million, $2.26 million above book value. The farm is expected to produce revenue of $2.03 million each year, and annual cash flow from operations equals $1.89 million. The marginal tax rate is 35 percent, and the appropriate discount rate is 9 percent. Calculate the NPV of this investment. (Round intermediate calculations and final answer to 2 decimal places, e.g. 15.25.)

final exam 497134

Aug 29, 2021 | Uncategorized

: Week 8 Exam 3 – Exam

True

False

True
False

True

False

True

False

True
False

True
False

True

True
FalseFalse

A favorable variable manufacturing overhead efficiency variance
An unfavorable variable manufacturing overhead efficiency variance
An unfavorable variable manufacturing overhead efficiency variance and an unfavorable total variable manufacturing overhead variance
The answer cannot be determined

$76,000
$83,600
$87,200
$91,200

Under absorption costing some fixed manufacturing costs are deferred in ending inventory if production is greater than sales.
When production and sales are equal, net income will be greater under variable costing than it will be under absorption costing.
Under absorption costing only the fixed manufacturing cost associated with inventory sold are expensed.
Under variable costing fixed manufacturing costs are expensed in the period in which they are incurred regardless of when the inventory is sold.

raw materials purchased.
raw materials used.
raw materials available for use.
none of these

Raw materials, work in process, finished goods, and cost of goods sold
Cost of goods sold, finished goods, work in process, raw materials
Work in process, finished goods, cost of goods sold
Raw materials, finished goods, cost of goods sold

Responsibility center
Cost center
Profit center
Investment center

Managerial cost report.
Departmental accounting report.
Responsibility accounting report.
Controllable expense report.
Segmental accounting report.

15.0%
18.75%
22.5%
25.0%

Taft Company had no beginning work in process inventory. Its total manufacturing costs for the year were $878,000. If cost of goods manufactured was $676,000 and cost of goods sold was $518,000, the amount of ending work in process inventory would have been what (Input only the whole number with no punctuation.)(Points : 4)

Wilson Company applies overhead based on direct labor cost. During 2012, Wilson Company estimated that it would incur $88,000 in manufacturing overhead costs and $59,000 of direct labor costs. In 2012, actual manufacturing overhead cost totaled $73,000 and actual direct labor costs totaled $53,000. If total manufacturing costs were $158,000, what amount of direct materials was used during the period (Input only the whole number with no punctuation.)(Points : 4)

Weymouth Company made a $240,000 investment in new machinery. Assuming the company’s margin is 3%, what income will be earned if the investment generates $510,000 in additional sales (Input only the whole number with no punctuation.)(Points : 4)

final exam 497135

Aug 29, 2021 | Uncategorized

1. What is biology?
A) The study of life
B) The study of the environment
C) The study of DNA
D) The study of genetics
E) The study of the earth
2. Which of the following can be considered definitions of “theory”?
A) A theory can be an explanation of scientific laws.
B) A theory is an integrated explanation of numerous hypotheses, each supported by a large
body of observations.
C) A theory is a condensation and simplification of many data that previously appeared
unrelated.
D) A theory is a prediction for new data suggesting new relationships among a range of natural
phenomena.
E) All of the above.
3. An integrated explanation of numerous hypotheses is known as a ______.
A) fact
B) law
C) control
D) theory
E) guess

Page 2 of 17

4. What is the correct sequence of steps in the scientific method?
I. State a problem
II. Analyze and interpret data
III. Develop a hypothesis
IV. Share the results with other scientists
V. Design and perform experiment to test the hypothesis
A) I II -III -IV V
B) III I -V II IV
C) V IV III II I
D) I III V II IV
E) V II I III -IV
5. To test a hypothesis about a given variable, experimental and control groups are tested in parallel.
Which of the following best explains the dual experiments?
A) In the experimental group, a chosen variable is altered in a known way. In the control group,
that chosen variable is not altered so a comparison can be made.
B) In the control group, a chosen variable is altered in a known way. In the experimental group,
that chosen variable is not altered so a comparison can be made.
C) In the experimental group, a chosen variable plus all other variables are altered. In the
control group, the chosen variable is altered; however, all other variables are held constant.
D) In the experimental and control groups, two different variables are altered.
E) Experimental and control groups experiments are identical and run in parallel to get
repeatable results.
6. The smallest unit of life is the
A) cell
B) organelle
C) macromolecule
D) atom
7.You examine a cell under a microscope and you do not see a well defined nucleus. You conclude
the cell must a _____________________ cell.
A) prokaryotic
B) eukaryotic
C) plant
D) animal
8. All of the following are examples of elements except?
A) oxygen
B) water
C) hydrogen
D) carbon

9. Two atoms with the same atomic number, but different mass numbers are called____________.
A) radioactive
B) isotopes
C) proteins
D) electrons
E) nuclei
10. Select the element that is not one of the four most common elements in living matter.
A) carbon
B) hydrogen
C) nitrogen
D) oxygen
E) phosphorous
11. Organic compounds consist mainly of ________ atoms.
A) oxygen
B) nitrogen
C) calcium
D) carbon
E) phosphorous
12. A substance with a pH greater than 7 is ___________, while a substance with a pH less that 7 is
___________.
A) basic, acidic
B) acidic, basic
C) basic, neutral
D) neutral, acidic
E) neutral, basic
13. The bond in which 2 atoms share one or more pairs of electrons is a ______________ bond.
A) polar
B) hydrogen
C) ionic
D) covalent
14. The energy required for photosynthesis is provided by?
A) proteins
B) sunlight
C) chlorophyll
D) carbohydrates
E) lipids
15. The term below that includes the other terms is
A) atom
B) molecule
C) electron
D) element
16. An element has 43 protons and 50 neutrons. The atomic number of the element is
___________________.

A) 43
B) 50
C) 86
D) 93
E) 100
17. The diffusion of water through a selectively permeable membrane is called
___________________________________.
A) facilitated diffusion
B) active transport
C) osmosis
D) phagocytosis
E) endocytosis
18. A dog gets many nutrients from its food including amino acids. Which of these can be built
directly using the amino acids _________________________.
A) proteins
B) carbohydrates
C) lipids
D) nucleic acids
E) glucose
19. Most carbohydrates in the human body are ___________________________.
A) used as building blocks for proteins
B) used as catalysts for reactions in cells
C) consumed as a source of energy
D) not easily absorbed into the bloodstream
E) not necessary for regular bodily functions
20. A scientist removed the plasma membranes from bacteria cells in a culture. She analyzed the cell
membranes for specific molecules. Which of these was probably the most common type of
molecule present in the bacteria plasma membranes?
A) carbohydrate
B) nucleic acid
C) amino acid
D) lipid
E) ATP
21. The site of protein synthesis in the cell is ___________________________.
A) the mitochondria
B) the nucleus
C) the Golgi apparatus
D) the ribosomes

22. Cyanide is a poison that prevents mitochondria from using oxygen. As a result, the mitochondria
cannot produce __________.
A) lipids

B) proteins
C) energy
D) sugars
E) nucleic acids
23. The replication of DNA ______________________________________________.
A) produces RNA molecules
B) produces completely new strands of DNA
C) produces two DNA molecules, each of which is half-“new” and half-“old” DNA
D) generates excessive DNA, which eventually causes the nucleus to divide
24. The form of RNA that is complementary to DNA and carries the code from the DNA to the site where
the protein is synthesized is ______________________________________.
A) messenger RNA
B) nuclear RNA
C) ribosomal RNA
D) transfer RNA
25. If the amounts of bases in a DNA molecule are measured, you would find that
_______________________________.
A) A = C and G=T
B) A = G and C=T
C) T = Aand C =G
D) A = U and C=G
E) U = Cand A =G
26. In humans, the allele for dimples (D) is dominant.The allele for not having dimples (d) is recessive. If a
woman (DD) and a man (Dd) have four children, how many of the children will not have dimples?
A) 0
B) 1
C) 2
D) 3
E) 4
27. Which of these statements best explains how genes and proteins are related?
A) Genes are segments of DNA that code for proteins.
B) Proteins are segments of DNA that code for genes.
C) Genes are segments of proteins that code for DNA.
D) Proteins are the building blocks of genes.
E) Genes are the building blocks of proteins.

28. Which of the following could not be a sequence of RNA?
A) GCGUUU
B) UAUGCG
C) ATGCGT

Page 6 of 17

D) AUGCGU
E) AAACUG
29. Information stored in DNA is transferred from the nucleus to the cytoplasm of eukaryotic cells in the
form of ________.
A) lipids
B) DNA
C) RNA
D) proteins
E) carbohydrates
30. Researchers are studying slider turtles. Slider turtles hatch on the beach and travel to the sea. The
researchers discover that the larger baby turtles were more likely to survive than the smaller baby turtles.
They hypothesized that the larger turtles could move more quickly toward the water than the smaller
turtles, and therefore, the larger turtles reduced their exposure to predators.
The survival advantage for the larger baby turtles is a result of __________________________.
A) natural selection
B) genetic engineering
C) diversity
D) artificial selection
E) migration
31. The theory of natural selection states that
____________________________________________________________________.
A) some live and some die in each generation.
B) only the largest and strongest survive.
C) random assortment of genes results in better characteristics in the following generations.
D) the best adapted individuals survive and reproduce, contributing the most genes to the next
generation.
E) individuals that mutate in response to their environment will survive.
32. Inheritable mutations, which may allow a population to evolve are produced
______________________________.
A) by chance
B) as a response to environmental
C) as a response to selection pressure
D) by natural selection
E) by artificial selection

33.When a biologist studies the way organisms interact with each other and with their environment, they
are studying their____________________.
A) physiology
B) anatomy
C) chemistry
D) genetics

E) ecology
34. In a deciduous oak forest of the American northeast, one example of an abiotic component of the
ecosystem would be ____________________________.
A) worms in the soil that feed on plant roots
B) worms in the soil that feed on dead organic matter
C) sunlight that filters through the canopy
D) animals such as deer that migrate through the forest but do not eat in the forest
E) plants and animals in the same area
35. Which of the following activities decreases greenhouse gases in the atmosphere?
A) Cutting down trees.
B) Driving gasoline powered vehicles.
C) Using electricity from coal-powered plants.
D) Planting trees.
E) Heating your home.

36. If a bird eats an insect that ate a plant, the bird would be considered a(n)
_______________________.
A) autotroph
B) primary producer
C) primary consumer
D) secondary consumer
E) tertiary consumer
37. When energy is converted from one form to another, some of the original energy is lost as
________.
A) water
B) heat
C) electrons
D) mechanical energy
E) electrical energy
38. The statement best describes the relationship between plants and animals on earth is
______________________.
A) plants produce O2 and sugars from CO2
B) animals produce CO2 and H2O from sugars and O2
C) plants produce O2 and sugars and animals produce CO2 and H2O
D) animals produce O2 and sugars and plants produce CO2 and H2O

39. What do plants and animals have in common?
A) They are both heterotrophic.
B) They are both autotrophic.
C) They are both prokaryotic.
D) They are both eukaryotic.
E) The are both hydrophobic

40. The innermost electron shell of an atom holds a maximum of ________ electrons.
A) 2
B) 4
C) 6
D) 8
E) 10
41. Elephants travel long distances in search of food. Using vibrations felt in the ground, family
members traveling separately can communicate with each other. Based on your knowledge of
evolution, the ability to communicate over long distances probably developed
___________________________.
A) slowly over millions of years
B) by accident
C) over a ten year period
D) as a strategy to decrease reproduction
E) as a way to communicate with humans
42. The plasma membrane is _____________________.
A) completely permeable
B) selectively permeable
C) impermeable
D) found only in eukaryotic cells
E) found only in prokaryotic cells
43. Humans are composed of ______ cells.
A) prokaryotic
B) bacterial
C) eukaryotic
D) viral
E) fungal
44. Certain fungi that are important in nutrient recycling because they release nutrients from dead
organisms back into the ecosystem are _____________________.
A) producers
B) consumers
C) decomposers
D) recyclers
E) feeders

45. Humans are ______.
A) ecosystems
B) consumers
C) decomposers
D) cells
E) producers
46. One of the end products of respiration is _____________.

A) glucose
B) starch
C) sucrose
D) water
E) oxygen
47.A protein molecule which is denatured, has __________________________.
A) split into smaller molecules
B) changed its shape
C) combined with another molecule
D) been diluted..
48. ___________________ is the term that refers to the energy-requiring movement of a substance
across a biological membrane .
A) facilitated diffusion
B) active transport
C) osmosis
D) diffusion
E) endocytosis
49. All of the following are characteristics of life except _____________________________________.
A) growth
B) homeostasis
C) movement
D) reproduction
E) energy use
50. In the scientific method, a hypothesis __________.
A) is a statement of fact
B) makes a prediction that can be tested
C) is usually proven to be correct
D) can only be tested once
E) all of these

51. Think of the cell as a factory, in which the organelles are specialized sites of production. All cells have
a power plant, the mitochondrion. Plant cells have an additional reactor for the production of usable
energy. It is called the _____.
A) golgi body
B) rough endoplasmic reticulum
C) central vacuole
D) vesicle
E) chloroplast
52.

You have formulated a hypothesis that light is necessary for seed germination.

To test your hypothesis, one set of lettuce seeds is placed in light with warm
temperatures and adequate moisture. Another set of identical seeds is placed in
the dark under the same set of conditions. The control in the experiment is
(a) seeds in the dark
(b) seeds in the light
(c) warm temperature
(d) adequate moisture
(e) germination rate

53.
A group of medical researchers recently tested the effects of a cholesterol-lowering medication,
Drug A on men who had high blood levels of cholesterol. The researchers did the following experiment
and obtained the indicated results. One group of 150 men took a tablet containing 40 mg of Drug A for 90
days; 120 of this group decreased their blood levels of cholesterol by at least 10 %. Another group of 150
men was given a tablet with no added Drug A for 90 days; 25 of these men decreased their blood levels
of cholesterol by at least 10%.
Which of the following is the most reasonable and accurate conclusion based on
results obtained in this experiment?
A) Drug A is good for men
B) Drug A is found in the blood of men
C) men taking tablets supplemented with Drug A will show a decrease in cholesterol
levels in the blood
D) men taking tablets supplemented with Drug A will show an increase in cholesterol
levels in the blood
E) blood levels of cholesterol are not affected by oral supplementation of Drug A
54.

The sexually transmissible disease gonorrhea has become increasingly resistant
to treatment with antibiotics. What is the most likely scientific explanation?
(a) The gonorrhea bacteria learned to avoid antibiotics
(b) The gonorrhea bacteria changed their genes when they sensed antibiotics
(c) Antibiotic-sensitive gonorrhea bacteria died out, but antibiotic-resistant gonorrhea
bacteria have flourished and persisted
(d) The antibiotic increased the mutation rate in the gonorrhea bacteria
(e) both b and d

55.

Which statement best describes the relationship between plants and animals on earth?
(a) Plants produce O2 and sugars from CO2
(b) Animals produce CO2 and H2O from sugars and O2
(c) Plants produce O2 and sugars and animals produce CO2 and H2O
(d) Animals produce O2 and sugars and plants produce CO2 and H2O

56.
A researcher planted seeds from four types of wheat (Types A, B, C, and D) in a greenhouse to
determine which type of wheat grew fastest. The plants were grown for 10 days and measured. The
results are shown below. Choose the data set that demonstrates that Type C wheat grew the fastest.
1

(a) A = 20 cm, B = 11 cm, C= 5 cm, D= 2 cm.

Page 11 of 17

2
3
4
5

(b)
(c)
(d)
(e)

A = 2 cm, B = 5 cm, C= 1 cm, D= 2 cm.
A = 22 cm, B = 11 cm, C= 25 cm, D= 4 cm.
A = 30 cm, B = 12 cm, C= 28 cm, D= 1 cm.
A = 21 cm, B = 12 cm, C= 20 cm, D= 15 cm.

Use the following information to answer questions 57 & 58 below. A group of medical researchers
recently investigated the effects of Drug X on lowering blood pressure in a group of hypertensive middleaged women. The researchers did the following experiment and obtained the indicated results: One
group of 150 women took a tablet containing Drug X for 3 weeks 95 of these women decreased their
blood pressure by at least 10% (three women from this group dropped out of the study). Another group of
150 women was given a tablet with no added Drug X for 3 weeks 10 of these women decreased their
blood pressure by at least 10% (two women from this group dropped out of the study).
57. Which of the following was the control group in this experiment?
a. the group of participants that received tablets containing Drug X.
b. the group of participants that received tablets that did not contain Drug X
c. the number of participants in each group at the beginning of the experiment
d. the number of participants in each group at the end of the experiment
e. the amount of Drug X contained in the tablet
58. Which of the following is the most reasonable and accurate conclusion based on the results
obtained in this experiment?
a. Drug X is good for hypertensive women.
b. Drug X is good for both men and women.
c. Hypertensive women receiving Drug X for 3 weeks may show a decrease in blood
pressure.
d. Hypertensive women receiving Drug X for 3 weeks may show an increase in blood
pressure.
e. Drug X has no effect on blood pressure.
59.A proton has ____ charge.
a. no
b. a neutral

c. a negative
d. a positive

60.Electrons are located
a. in the core of an atom.
b. only in complex molecules.
c. in a shell that surrounds the atom s core.
d. in both the core and inner shell of an atom.

************************************************************************************************************
MATCHING SECTION #1
MATCHING SECTION INSTRUCTIONS: Read all instructions carefully. Please answer all
questions. Each question is worth 1 point. This Matching section is worth 10 points.
**Do not enter your answers here.** Type in the letter you select from the right column as
the best answer on the Answer Sheet provided by your instructor.
TERM or CONCEPT

Definition/Association

1. ATP (adenosine triphosphate)
2. chromosome
3. crossing over
4. gamete
5. gene
6. germ cell
7.meiosis
8. mitosis
9. translation
10. transcription

A. DNA molecule with attached proteins
B. a haploid cell that combines with another
haploid cell during fertilization
C. a specific portion of a chromosome that contains
information for a particular inherited trait
D. a type of cell whose primary function is the
formation of gametes for sexual reproduction
E. an interaction during meiosis in which
chromatids exchange segments; results in genetic
recombination
F. nucleotide that drives most energy-requiring
metabolic reactions
G. the process in which ribosomes synthesize
proteins using the mRNA transcript
H. the synthesis of mRNA from a DNA template
I. the type of cell division which is used in asexual
reproduction and tissue growth and repair
J. the type of cell division responsible for gamete
formation and sexual reproduction

MATCHING SECTION #2
MATCHING SECTION INSTRUCTIONS: Read all instructions carefully. Please answer all
questions. Each question is worth 1 point. This Matching section is worth 10 points.
**Do not enter your answers here.** Type in the letter you select from the right column as
the best answer on the Answer Sheet provided by your instructor.
TERM or CONCEPT
1. microtubules
2. chloroplasts

Definition/Association

A. contain enzymes for intracellular digestion
B. are primary cellular structures (or components)
where proteins are assembled

3. Golgi bodies
4. DNA molecules
5. RNA molecules
6. central vacuoles
7. lysosomes
8. mitochondria
9. nucleoli
10. ribosomes
C. package cellular secretions for export
D. extract energy stored in carbohydrates;
synthesize ATP; produce water and carbon dioxide
E. synthesize subunits that will be assembled into
two part ribosomes in the cytoplasm
F. translate hereditary instructions into specific
proteins
G. increase cell surface area; store substances
H. encode hereditary information
I. help distribute chromosomes to the new cells
during cell division
J. convert light energy to chemical energy stored in
the chemical bonds of glucose or starch

SHORT ANSWER SECTION
Complete ALL questions in this Short Answer Section
INSTRUCTIONS: Each question is worth 5 points. Total points for this section is 20
points.
**Do not enter your answers here.** Type your answers into the Answer Sheet provided
by your instructor.

1) Lithops, also called Stoneplants, are a type of plant that resembles little stones. These
plants have the ability to blend in with there surrounding, which affords them protection
from predators. If you were in an area containing Lithops, describe four characteristics you could identify
to distinguish these plants from the stones they mimic.
2) A population of grasshoppers in the Kansas prairie has two color phenotypes, green and
brown. Typically, the prairie receives adequate water to maintain healthy, green grass.
Assume a bird that eats grasshoppers moves into the prairie. How will this affect natural
selection of the grasshoppers? How might this change in a drought year?
3) DNA and RNA are similar yet distinct components of the cell. Describe three differences
between RNA and DNA with respect to their chemical composition and structure. Provide a
detailed description of each characteristic you chose in your response.
4) Give an example of how human activities can change the environment.

ESSAY SECTION
Complete ALL questions in this Essay Section
INSTRUCTIONS: Each question is worth 10 points. Total points for this section is 50
points.
**Do not enter your answers here.** Type your answers into the Answer Sheet provided
by your instructor.
REQUIRED QUESTIONS

1. Before bringing a new drug to the marketplace, extensive testing is done on the drug by
administering the drug to large numbers of individuals. Explain the importance of the scientific
method, sample size, controls and variable in the drug evaluation process.

2. List the four large molecules of life. Identify their composition and structure, (in detail) and
describe one function they perform in the cell.

3. How can you explain the occurrence of birth defects (caused by altered genes) in children
and grandchildren of WWII atomic bomb victims, when the victims themselves were only mildly
affected?

4. During the past 50 years, more than 200 species of insects that attack crop plants have
become highly resistant to DDT and other pesticides. Based on what you have learned in this
class regarding evolution, explain the rapid and widespread evolution of resistance. Now that
DDT has been banned in the US, what do you expect to happen to levels of resistance to DDT
among insect populations?

5. Water is crucial for life as we know it. One of the most important characteristics of water is its
ability to act as a solvent. Explain why water is such a good solvent for polar and charged
molecules.

final exam 497136

Aug 29, 2021 | Uncategorized

Identify the choice that best completes the statement or answers the question.

1 The commonly accepted goal of the MNC is to:
A) maximize short-term earnings.
B) maximize shareholder wealth.
C) minimize risk.
D) A and C.
E) maximize international sales.

2 For the MNC, agency costs are typically:
A) non-existent.
B) larger than agency costs of a small purely domestic firm.
C) smaller than agency costs of a small purely domestic firm.
D) the same as agency costs of a small purely domestic firm.

3 Which of the following could reduce agency problems for an MNC?
A) stock options as managerial compensation.
B) hostile takeover threat.
C) investor monitoring.
D) all of the above are forms of corporate control that could reduce agency problems for an MNC.

4 The valuation of an MNC should rise when an event causes the expected cash flows from foreign to ____ and when foreign currencies denominating these cash flows are expected to ____.
A) decrease; appreciate
B) increase; appreciate
C) decrease; depreciate
D) increase; depreciate

5 Which of the following theories identifies specialization as a reason for international business?

A) theory of comparative advantage.
B) imperfect markets theory.
C) product cycle theory.
D) none of the above

6 Which of the following theories identifies the non-transferability of resources as a reason for international business?
A) theory of comparative advantage.
B) imperfect markets theory.
C) product cycle theory.
D) none of the above

7 Which of the following theories suggests that firms seek to penetrate new markets over time?
A) theory of comparative advantage.
B) imperfect markets theory.
C) product cycle theory.
D) none of the above

8 Which of the following industries would most likely take advantage of lower costs in some less developed foreign countries?

A) assembly line production.
B) specialized professional services.
C) nuclear missile planning.

D) planning for more sophisticated computer technology.

9 Due to the risks involved in international business, firms should:
A) only consider international business in major countries.
B) maintain international business to no more than 20% of total business.
C) maintain international business to no more than 35% of total business.
D) none of the above

10 The agency costs of an MNC are likely to be lower if it:
A) scatters its subsidiaries across many foreign countries.
B) increases its volume of international business.
C) uses a centralized management style.
D) A and B.

11 An MNC may be more exposed to agency problems if most of its shares are held by:
A) a few mutual funds
B) a widely dispersed set of individual investors
C) a few pension funds
D) all of the above would prevent agency problems

12 The Sarbanes-Oxley Act improves corporate governance of MNCs because it:
A) makes executives more accountable for verifying financial statements
B) eliminates stock options as a form of compensation
C) ties executive compensation to firm performance
D) places a limit on the amount of funds that managers can spend

13 MNCs can improve their internal control process by all of the following, except:
A) establishing a centralized data base of information
B) ensuring that all data are reported consistently among subsidiaries
C) ensuring that the MNC always borrows from countries where interest rates are lowest
D) using a system that checks internal data for unusual discrepancies

14 In comparing exporting to direct foreign investment (DFI), an exporting operation will likely incur ____ fixed production costs and ____ transportation costs than DFI.
A) higher; higher
B) higher; lower
C) lower; lower
D) lower; higher

15 Which of the following is an example of direct foreign investment?
A) exporting to a country.
B) establishing licensing arrangements in a country.
C) purchasing existing companies in a country.
D) investing directly (without brokers) in foreign stocks.

16 ____ are most commonly classified as a direct foreign investment.
A) Foreign acquisitions
B) Purchases of international stocks
C) Licensing agreements
D) Exporting transactions

17 Which of the following is not mentioned in the text as an additional risk resulting from international business?

A) exchange rate fluctuations.
B) political risk.
C) interest rate risk.
D) exposure to foreign economies.

18 Licensing obligates a firm to provide ____, while franchising obligates a firm to provide ____.

A) a specialized sales or service strategy; its technology

B) its technology; a specialized sales or service strategy
C) its technology; its technology
D) a specialized sales or service strategy; a specialized sales or service strategy
E) its technology; an initial investment

19 Which of the following is not a way in which agency problems can be reduced through corporate control?
A) executive compensation.
B) threat of hostile takeover.
C) acquisition of a foreign subsidiary.
D) monitoring by large shareholders.

20 International trade:
A) is a relatively conservative approach to foreign market penetration.
B) entails minimal risk.
C) does not require large amount of investment.
D) all of the above.

21 Assume that an American firm wants to engage in international business without major investment in the foreign country. Which method is least appropriate in this situation?
A) International Trade
B) Licensing
C) Franchising
D) Direct foreign investment

22 The MNC’s value depends on all of the following, except:

A) MNC’s required rate of return
B) Amount of MNC’s cash flows in particular currency
C) The exchange rate at which cash flows are converted to dollars
D) The value of MNC depends on all of the above factors

23 Which of the following is not an example of political risk?
A) Government may impose taxes on subsidiary
B) Government may impose barriers on subsidiary
C) Consumers may boycott the MNC
D) Consumers’ income levels will decrease, thus decreasing consumption.

24 International trade generally results in ____ exposure to international political risk and ____ exposure to international economic conditions, when compared to other methods of international business.
A) higher; lower
B) higher; higher
C) lower; higher
D) lower; lower

25 Assume that Boca Co. wants to expand its business to Japan, and wants complete control over the operations in Japan. Which method of international business is most appropriate for Boca Co?

A) Joint venture
B) Licensing
C) Partial acquisition of existing Japanese firm
D) Establishment of Japanese subsidiary

26 Assume that Live Co. has expected cash flows of $200,000 from domestic operations, SF200,000 from Swiss operations, and 150,000 euros from Italian operations at the end of the year. The Swiss franc’s value and euro’s value are expected to be $.83 and $1.29 respectively, at the end this year. What are the expected dollar cash flows of Live Co?

A) $200,000
B) $559,500
C) $582,500

D) $393,500

27 Saller Co. has a subsidiary in Mexico. The expected cash flows in pesos to be received in the future from this subsidiary have not changed since last month, but the valuation of Saller Co. has declined since last month. What could’ve caused this decline in value?
A) A weaker Mexican economy
B) Lower Mexican interest rates
C) Depreciation of the Mexican peso
D) Appreciation of the Mexican peso.

28 Jensen Co. wants to establish a new subsidiary in Mexico that will sell computers to Mexican customers and remit earnings back to the U.S. parent. The value of this project will be favorably affected if the value of the peso ____

while it establishes the new subsidiary and ____ when the subsidiary starts operations.
A) depreciates; appreciates
B) appreciates; appreciates
C) appreciates; depreciates
D) depreciates; depreciates

29 Livingston Co. has a subsidiary in Korea. The subsidiary reinvests half of its net cash flows into operations and remits half to the parent. Livingston’s expected cash flows from domestic business are $100,000 and the Korean subsidiary is expected to generate 100 million Korean won at the end of the year. The expected value of won is $.0012. What are the expected dollar cash flows of Livingston Co.?

A) $100,000
B) $200,000
C) $160,000
D) $60,000

30 The goal of a multinational corporation (MNC) is
A) The minimization of taxes remitted from foreign subsidiaries.
B) The establishment of subsidiaries in any country where operations would provide a return over and above the cost of capital, even if better projects are available domestically.
C) The maximization of shareholder wealth.
D) The maximization of social benefits resulting from actions such as the employment of foreign managers.

31 Agency costs faced by multinational corporations (MNCs) may be larger than those faced by purely domestic firms because
A) Monitoring of managers located in foreign countries is more difficult.
B) Foreign subsidiary managers raised in different cultures may not follow uniform goals.
C) MNCs are relatively large.
D) All of the above
E) A and B only

32 Which of the following is not one of the more common methods used by MNCs to improve their internal control process?
A) Establishing a centralized database of information
B) Ensuring that all data are reported consistently among subsidiaries
C) Speeding the process by which all departments and all subsidiaries have access to the data that they need
D) Making executives more accountable for financial statements by personally verifying their accuracy
E) All of the above are common methods used by MNCs to improve their internal control process.
33 Which of the following is not mentioned in the text as a theory of international business?

A) Theory of Comparative Advantage

B) Imperfect Markets Theory
C) Product Cycle Theory
D) Globalization of Business Theory
E) All of the above are mentioned in the text as theories of international business

34 The most risky method(s) by which firms conduct international business is (are):
A) Franchising.
B) The acquisitions of existing operations.
C) The establishment of new subsidiaries.
D) All of the above
E) B and C only

35 The least risky method by which firms conduct international business is:
A) Franchising.
B) The acquisitions of existing operations.
C) International Trade.
D) The establishment of new subsidiaries.
E) Licensing

36 Which of the following does not constitute a form of direct foreign investment?
A) Franchising
B) International trade
C) Joint ventures
D) Acquisitions of existing operations
E) Establishment of new foreign subsidiaries

True/False

Indicate whether the statement is true or false.

1 A product cycle is the process by which a firm provides a specialized sales or service strategy, support assistance, and possibly an initial investment in the franchise in exchange for periodic fees.
A) True
B) False

2 Licensing is the process by which a firm provides its technology (copyrights, patents, trademarks, or trade names) in exchange for fees or some other specified benefits.

A) True
B) False

3 Franchising is the process by which national governments sell state owned operations to corporations and other investors.
A) True
B) False

4 The parent of MNC can implement compensation plans that directly reward the subsidiary managers for enhancing the value of the MNC.
A) True
B) False

5 If a publicly-traded MNC’s managers make poor decisions that reduce its value, it may encourage other firms to acquire it.
A) True
B) False

6 Institutional investors such as mutual funds or pension funds which have large holdings of an MNC’s stock do not normally want to take control of it and therefore have no influence over management of the MNC.

A) True
B) False

7 Imperfect markets represent conditions under which factors of production are immobile.
A) True
B) False

8 The Sarbanes-Oxley Act (SOX) was enacted in 2002 required MNCs and other firms to implement an internal reporting process that could be easily monitored by executives and the board of directors.
A) True
B) False

9 If markets were perfect, then labor and other costs of production would be perfectly stable (no movement across borders).

A) True
B) False

10 The valuation of an MNC is reduced if the required return on its investments in foreign countries is reduced.
A) True
B) False

11 The goal of a multinational corporation (MNC) is the maximization of shareholder wealth.
A) True
B) False

12 A centralized management style, where major decisions about a foreign subsidiary are made by the parent company, results in an increase in agency costs.
A) True
B) False

13 If a U.S. firm sets up a plant in Mexico to benefit from low cost labor, it will likely have a comparative advantage over other firms in Mexico that sell the same product.
A) True
B) False

14 Although MNCs may need to convert currencies occasionally, they do not face any exchange rate risk, as exchange rates are stable over time.

A) True
B) False

15 One of the most prevalent factors conflicting with the realization of the goal of an MNC is the existence of agency problems.

A) True
B) False

16 A centralized management style for an MNC results in relatively high agency costs.
A) True
B) False

17 The imperfect markets theory states that factors of production are somewhat immobile, allowing firms to capitalize on a foreign country’s resources.
A) True
B) False

18 If a U.S.-based MNC focused completely on importing, then its valuation would likely be adversely affected if most currencies were expected to appreciate against the dollar over time.

A) True
B) False

19 The acquisition of a foreign subsidiary is commonly considered by MNCs because the cost is less expensive than establishing a new subsidiary of the same size.
A) True
B) False

20 If a U.S.-based MNC focused completely on exporting, then its valuation would likely be adversely affected if most currencies were expected to appreciate against the dollar over time.
A) True
B) False

21 If markets were perfect, then labor and other costs of production would be easily transferable.
A) True
B) False

22 The valuation of MNC accounts for all the cash flows received by the foreign subsidiaries plus all the cash flows remitted by the subsidiaries.
A) True
B) False

23 A microeconomic perspective focuses on external forces such as economic conditions that can affect the value of an MNC.
A) True

B) False

24 Assume that an MNC has a subsidiary in Italy, which exports its products to various countries in Europe. Since all of the countries where it exports use Euro as their currency, this MNC is not subject to the exchange rate risk.

A) True
B) False

25 A decentralized management style of MNC results in relatively high agency costs.
A) True
B) False

26 The establishment of a new subsidiary is commonly considered by MNCs because the cost is less expensive than acquiring a foreign subsidiary of the same size.
A) True
B) False

27 A macroeconomic perspective focuses on the financial management decisions that affect the value of MNC.
A) True
B) False

28 An MNC will always use the same required rate of return in the valuation of foreign projects, as it would for its domestic projects.
A) True
B) False

29 A U.S.-based MNC has many foreign subsidiaries in Europe and does not expect to increase its investment there. Its value should increase if the value of the euro weakens over time.
A) True
B) False

30 If managers of foreign subsidiaries make decisions that maximize the values of their respective subsidiaries, they automatically maximize the value of the entire corporation.

A) True
B) False

31 A decentralized management style, where subsidiary managers make the relevant decisions regarding their subsidiary, may result in better decision making, as subsidiary managers are generally better informed about their subsidiary’s operations.

A) True
B) False

32 U.S.-based MNCs are typically not monitored by mutual funds and pension funds, as these institutions rarely hold stock in MNCs.
A) True
B) False

33 The Sarbanes-Oxley Act ensures a more transparent process for managers to report on the productivity and financial condition of their firm.
A) True
B) False

34 The Theory of Comparative Advantage begins by assuming that a given firm first becomes established in its home country and may subsequently penetrate foreign markets via geographic or product differentiation.

A) True
B) False

35 Under the Imperfect Markets Theory, it is assumed that factors of production are entirely mobile, so that firms can capitalize on a foreign country’s resources.
A) True
B) False

36 Under the Product Cycle Theory, foreign demand can be initially satisfied by exporting.
A) True
B) False

37 Licensing allows firms to use their technology in foreign markets without a major investment in foreign countries.
A) True
B) False

38 International trade is the most common form of direct foreign investment (DFI).
A) True
B) False

39 When the parent’s home currency is weak, remitted funds from foreign subsidiaries will convert to a smaller amount of the home currency.

A) True
B) False

40 A purely domestic firm may be affected by exchange rate fluctuations if it faces at least some foreign competition.

A) True
B) False

41 One form of an exposure to political risk is terrorism.
A) True
B) False

final exam 6168501 497137

Aug 29, 2021 | Uncategorized

1. The work-in-process inventory account of a manufacturing company shows a balance of $3,000 at the end of an accounting period. The job-cost sheets of the two incomplete jobs show charges of $500 and $300 for direct materials, and charges of $400 and $600 for direct labor. From this information, it appears that the company is using a predetermined overhead rate as a percentage of direct labor costs. What percentage is the rate?

2. The break-even point in dollar sales for Rice Company is $480,000 and the company s contribution margin ratio is 40 percent. If Rice Company desires a profit of $84,000, how much would sales have to total?

3. Williams Company s direct labor cost is 25 percent of its conversion cost. If the manufacturing overhead for the last period was $45,000 and the direct material cost was $25,000, how much is the direct labor cost?

4. Grading Company s cash and cash equivalents consist of cash and marketable securities. Last year the company s cash account decreased by $16,000 and its marketable securities account increased by $22,000. Cash provided by operating activities was $24,000. Net cash used for financing activities was $20,000. Based on this information, was the net cash flow from investing activities on the statement of cash flows a net increase or decrease? By how much?

5. Gladstone Footwear Corporation s flexible budget cost formula for supplies, a variable cost, is $2.82 per unit of output. The company s flexible budget performance report for last month showed an $8,140 unfavorable spending variance for supplies. During that month, 21,250 units were produced. Budgeted activity for the month had been 20,900 units. What is the actual cost per unit for indirect materials?

6. Lyons Company consists of two divisions, A and B. Lyons Company reported a contribution margin of $60,000 for Division A, and had a contribution margin ratio of 30 percent in Division B, when sales in Division B were $240,000. Net operating income for the company was $22,000 and traceable fixed expenses were $45,000. How much were Lyons Company s common fixed expenses?

7. Atlantic Company produces a single product. For the most recent year, the company s net operating income computed by the absorption costing method was $7,800, and its net operating income computed by the variable costing method was $10,500. The company s unit product cost was $15 under variable costing and $24 under absorption costing. If the ending inventory consisted of 1,460 units, how many units must have been in the beginning inventory.

8. Black Company uses the weighted-average method in its process costing system. The company s ending work-inprocess inventory consists of 6,000 units, 75 percent complete with respect to materials and 50 percent complete with respect to labor and overhead. If the total dollar value of the inventory is $80,000 and the cost per equivalent unit for labor and overhead is $6.00, what is the cost per equivalent unit for materials?

9. At Overland Company, maintenance cost is exclusively a variable cost that varies directly with machine-hours. The performance report for July showed that actual maintenance costs totaled $11,315 and that the associated rate variance was $146 unfavorable. If 7,300 machine-hours were actually worked during July, what is the budgeted maintenance cost per machine-hour?

10. The cost of goods sold in a retail store totaled $650,000. Fixed selling and administrative expenses totaled $115,000 and variable selling and administrative expenses were $420,000. If the store s contribution margin totaled $590,000, how much were the sales?

11. Denny Corporation is considering replacing a technologically obsolete machine with a new state-of-the-art numerically controlled machine. The new machine would cost $600,000 and would have a 10-year useful life. Unfortunately, the new machine would have no salvage value. The new machine would cost $20,000 per year to operate and maintain, but would save $125,000 per year in labor and other costs. The old machine can be sold now for scrap for $50,000. What percentage is the simple rate of return on the new machine rounded to the nearest tenth of a percent? (Ignore income taxes in this problem.)

12. Lounsberry Inc. regularly uses material O55P and currently has in stock 375 liters of the material, for which it paid $2,700 several weeks ago. If this were to be sold as is on the open market as surplus material, it would fetch $6.35 per liter. New stocks of the material can be purchased on the open market for $7.20 per liter, but it must be purchased in lots of 1,000 liters. You ve been asked to determine the relevant cost of 900 liters of the material to be used in a job for a customer. What is the relevant cost of the 900 liters of material O55P?

13. Harwichport Company has a current ratio of 3.0 and an acid-test ratio of 2.8. Current assets equal $210,000, of which $5,000 consists of prepaid expenses. The remainder of current assets consists of cash, accounts receivable, marketable securities, and inventory. What is the amount of Harwichport Company s inventory?

14. Tolla Company is estimating the following sales for the first six months of next year:

January $350,000

February $300,000

March $320,000

April $410,000

May $450,000

June $470,000

Sales at Tolla are normally collected as 70 percent in the month of sale, 25 percent in the month following the sale, and the remaining 5 percent being uncollectible. Also, customers paying in the month of sale are given a 2 percent discount. Based on this information, how much cash should Tolla expect to collect during the month of April?

15. Trauscht Corporation has provided the following data from its activity-based costing system:

Activity Cost Pool Total Cost Total Activity

Assembly $704,880 44,000 machine-hours

Processing orders $91,428 1,900 orders

Inspection $117,546 1,950 inspection-hours

The company makes 360 units of product P23F a year, requiring a total of 725 machine-hours, 85 orders, and 45 inspection-hours per year. The product s direct materials cost is $42.30 per unit and its direct labor cost is $14.55 per unit. The product sells for $132.10 per unit. According to the activity-based costing system, what is the product margin for product P23F?

16. Williams Company s direct labor cost is 30 percent of its conversion cost. If the manufacturing overhead for the last period was $59,500 and the direct materials cost was $37,000, what is the direct labor cost?

17. In a recent period, 13,000 units were produced, and there was a favorable labor efficiency variance of $23,000. If 40,000 labor-hours were worked and the standard wage rate was $13 per labor-hour, what would be the standard hours allowed per unit of output?

18. The balance in White Company s work-in-process inventory account was $15,000 on August 1 and $18,000 on August 31. The company incurred $30,000 in direct labor cost during August and requisitioned $25,000 in raw materials (all direct material). If the sum of the debits to the manufacturing overhead account total $28,000 for the month, and if the sum of the credits totaled $30,000, then was Finished Goods debited or credited? By how much?

19. A company has provided the following data:

Sales 4,000 units

Sales price $80 per unit

Variable cost $50 per unit

Fixed cost $30,000

If the dollar contribution margin per unit is increased by 10 percent, total fixed cost is decreased by 15 percent, and all other factors remain the same, will net operating income increase or decrease? By how much?

20. For the current year, Paxman Company incurred $175,000 in actual manufacturing overhead cost. The manufacturing overhead account showed that overhead was overapplied in the amount of $9,000 for the year. If the predetermined overhead rate was $8.00 per direct labor-hour, how many hours were worked during the year?

accounting i final exam 497138

Aug 29, 2021 | Uncategorized

• Final Exam !!

1.The Modified Accelerated Cost Recovery System (MACRS) specifies which of the following depreciation methods for buildings

A. 150% declining-balance.

B. Double-declining-balance.

C. Straight line.

D. Buildings are not depreciable assets.

2. The Modified Accelerated Cost Recovery System (MACRS) specifies which of the following depreciation methods for land

A. 150% declining-balance.

B. Double-declining-balance.

C. Straight line.

D. Land is not a depreciable asset.

3. If an organization has an obligation to pay $5,000 to a supplier two years from now, the present value of the obligation:

A. is less than $5,000.

B. is $5,000.

C. is more than $5,000.

D. could be calculated using an annuity factor from the present value tables.

4. Depreciation, in accounting, is a process that results in:

A. depreciable assets being reported in the balance sheet at their fair market value.

B. accumulating cash for the replacement of the asset.

C. an accurate measurement of the economic usefulness of an asset.

D. spreading the cost of an asset over its useful life to the entity.

Use the below present value tables for problems 5, 6 and 7

5. The present value of $3,000 to be received in 7 years at 10% is:

A. $616.22

B. $1,539.60

C. $3,000.00

D. $5,845.67

6. The present value of $3,000 to be received every year for 9 years, at 10%, is:

A. $7,073.80

B. $12,273.00

C. $17,277.00

D. $27,000.00

7. The present value of an obligation of $4,000 payable in 7 years at 8% is:

A. $1,760

B. $2,334

C. $3,206

D. $3,680

8. A particular common stock has an annual cash dividend of $2.00 per share and is predicted to have a market value of $30 per share 5 years from now. Assuming a discount rate of 10%, a fair market price for the stock today is:

A. $20.00

B. $26.21

C. $37.58

D. $56.21

9. Psyche Company wants to acquire Trim Company. Trim’s ROI has been above average for its industry; net income has averaged $70,000 a year more than the industry average. These “excess” earnings are expected to continue at this amount for 5 years. Assuming a discount rate of 8%, how much goodwill will arise from Psyches’ purchase of Trim

A. $40,836

B. $88,157

C. $279,489

D. $350,000

10. Leasehold is an example of which of the following types of assets

A. Current asset.

B. Property, plant and equipment.

C. Goodwill.

D. Intangible asset.

11. The principal challenge to calculating depletion is estimating:

A. the cost of the asset.

B. the salvage value of the exploration equipment.

C. the demand for the product.

D. the quantity of material to be recovered.

12. Long-lived, intangible assets such as leasehold improvements, patents, and copyrights are all subject to:

A. depreciation

B. amortization

C. depletion

D. consolidation

13. When a depreciable asset is sold:

A. a gain arises if the sales proceeds exceed the net book value.

B. a loss arises if the sales proceeds exceed the net book value.

C. any cash received results in a gain.

D. depreciation expense is adjusted so there is no gain or loss.

14. Goodwill is an asset that arises because the present value of an acquired company’s estimated future earnings, discounted at the acquiring firm’s ROI:

A. is less than the fair market value of the net assets of the acquired company.

B. is more than the fair market value of the net assets of the acquired company.

C. is more than the fair market value of the net assets of the acquiring company.

D. is less than the fair market value of the net assets of the acquiring company.

15. The intangible asset “goodwill:”

A. represents the management team’s assessment of its value to the company.

B. may arise when one company purchases another company.

C. arises because the market value of a company’s assets is greater than cost.

D. all of the above are correct.

16. Many current liabilities are affected by accrual accounting entries. This happens because:

A. liabilities are usually paid when they are incurred.

B. accrual accounting involves recognizing liabilities before they are paid.

C. the only way to reduce a liability account balance is with an adjusting entry.

D. accrual accounting frequently involves recognizing liabilities before they are incurred.

17. Which of the following is not usually associated with bonds

A. Coupon rate.

B. Maturity value.

C. Face amount.

D. Maturity rate.

18. An Accounts Payable could result from which of the following transactions

A. Purchasing accounts for cash.

B. Purchasing property, plant and equipment on credit.

C. Purchasing goods and services from suppliers on credit.

D. All of the above.

19. The current liability for Wages Payable (or Accrued Payroll) represents the:

A. gross pay earned by employees for which they have not yet been paid.

B. net pay earned by employees for which they have not yet been paid.

C. employer’s federal and state payroll tax obligation.

D. employer’s liability for various with holdings taken out of the gross pay earned by employees.

20. The financial leverage characteristic of long-term debt results in:

A. a reduction of the risk that creditors will not be paid.

B. a magnification of ROE relative to what it would be without long-term debt.

C. a magnification of ROI relative to what it would be without long-term debt.

D. the deductibility, for income tax purposes, of dividends to stockholders.

21. When a company issues a bond at a premium:

A. the company is more profitable than most companies in its industry.

B. investors perceive the bond to be a very safe investment.

C. the investors’ interest income will be less than the interest received each year.

D. the investors’ interest income will be more than the interest received each year.

22. Which of the following is not sometimes associated with bonds

A. Debenture.

B. Callable.

C. Cumulative.

D. Convertible

23. If the market price of a bond exceeds its face amount:

A. the coupon rate is less than the market interest rate.

B. the coupon rate is more than the market interest rate.

C. the company’s ROI and working capital have been increasing over time.

D. the maturity rate has been declining.

24. The market value of a bond is the sum of the present value of future interest payments and the present value of the amount to be repaid at maturity, discounted at:

A. the market rate.

B. the coupon rate.

C. the dividend rate.

D. the prime rate.

25. Financial leverage refers to which of the following

A. The difference between the rate of return earned on assets (ROI) and the rate of return earned on owners’ equity (ROE).

B. The difference between the rate of return earned on current assets and the rate of return earned on retained earnings.

C. The leverage a firm obtains from increasing production.

D. Decreasing fixed costs per unit by increasing production.

26. When a company issues a bond at a discount:

A. the company will pay less than the face amount of the bond at its maturity.

B. the company will pay more than the face amount of the bond at its maturity.

C. the company’s interest expense will be less than the interest paid each year.

D. the company’s interest expense will be more than the interest paid each year.

27. When bonds are issued at a premium:

A. interest expense on the bonds will be less than the interest paid.

B. interest expense on the bonds will be more than the interest paid.

C. the bonds are sold for less than their face amount.

D. the coupon interest rate is less than the market interest rate.

28. Which of the following is (are) a true statement(s) pertaining to bonds

A. Bonds can be sold at a discount, par, or payable.

B. Bonds can be sold at a discount, par, or premium.

C. The SEC sets the market price of a bond.

D. The issuing firm sets the price of a bond.

E. None of the above.

29. Which of the following is true regarding bond discounts and/or premiums

A. Bond discount is amortized but bond premium is not.

B. Bond premium is amortized but bond discount is not.

C. Neither bond discount nor premium is amortized.

D. Both bond discount and premium are amortized.

30. The amortization of bond discount:

A. increases the cash paid to bondholders for interest.

B. results in bond interest expense being greater than the interest paid to bondholders.

C. results in bond interest expense being less than the interest paid to bondholders.

D. reduces the carrying value of bonds payable on the balance sheet.

31. Factors that usually affect retained earnings directly include:

A. net income or loss, and dividends.

B. extraordinary items and losses from discontinued operations.

C. stock dividends and gains or losses from the sale of treasury stock.

D. net income or loss, and the issuance of stock at an amount in excess of par value.

32. In comparison to the owners’ equity section of a corporation’s balance sheet, owners’ equity of a proprietorship or partnership:

A. normally does not make a distinction between invested capital and retained earnings.

B. normally uses “Capital” accounts for each individual owner, rather than a “Retained Earnings” account for all of the owners.

C. normally uses a “Drawings” account for each individual owner, rather than a “Dividends” account for all of the owners.

D. all of the above.

33. The declaration of a cash dividend by the directors results in:

A. a decrease in cash and a decrease in retained earnings.

B. a decrease in retained earnings and an increase in current liabilities.

C. a decrease in net income and a decrease in cash.

D. a decrease in net income and an increase in current liabilities.

34. In most states, par value of issued shares represents:

A. Legal capital.

B. No par capital.

C. Noncontrolling capital.

D. Corporate capital.

35. The term preemptive right pertains to which of the following

A. The Board of Directors rights in liquidation.

B. Present shareholders right to purchase shares from any additional share issuances.

C. Present shareholders right to purchase treasury shares when reissued.

D. Preferred stockholders right to dividends.

36. Balance sheet disclosures for preferred stock include all of the following except:

A. The number of shares issued.

B. The number of shares outstanding.

C. The liquidating or redemption value.

D. The credit or market value.

E. The number of shares authorized.

37. The declaration date pertains to:

A. The date used to determine who receives dividends.

B. The date on which the board of directors declares it’s going to liquidate the firm.

C. The date on which the board of directors declares a dividend.

D. The date a dividend is paid.

38. Fred Jones owns 56 shares of the Robust Corporation’s stock. Robust announces a 3 for 2 stock split. How many shares will Fred have after this split

A. 178 shares.

B. 112 shares.

C. 84 shares.

D. 56 shares.

39. Braco has 40,000 shares of $100 par value common stock outstanding, and 10,000 shares in the treasury. The number of additional shares that would be issued in a 5% stock dividend is:

A. 500

B. 1,000

C. 1,500

D. 2,000

40. When a stock dividend is declared and issued:

A. total paid-in capital does not change.

B. total owners’ equity does not change.

C. the balance in the retained earnings account is decreased by the par value of the shares issued in the dividend.

D. total paid-in capital is decreased by the market value of the shares issued in the dividend.

41. When a company splits its common stock 3 for 1:

A. total paid-in capital increases by a factor of 3.

B. the balance in the retained earnings account is decreased by the market value of the shares issued.

C. the market value of the company’s stock falls by two-thirds.

D. the shareholders are assured of receiving larger cash dividends.

42. The principal reason for a company having a common stock split is to:

A. increase the total cash dividends paid to stockholders.

B. capitalize retained earnings.

C. decrease total owners’ equity.

D. decrease the market value per share of common stock.

43. When a firm purchases its own shares for the treasury:

A. total owners’ equity is decreased.

B. total owners’ equity is increased.

C. the balance in the retained earnings account is decreased.

D. paid-in capital is decreased.

44. If a firm sells treasury stock for more than its cost:

A. a gain is recognized in the income statement.

B. the balance in the retained earnings account is increased.

C. additional paid-in capital is increased.

D. total owners’ equity does not change.

45. The statement of changes in retained earnings for the year shows:

A. the retained earnings balance at the beginning of the year.

B. amounts received from the sale of additional common stock during the year.

C. extraordinary gains or losses during the year.

D. the effect of a stock split during the year.

46. Which of the following is an accurate statement regarding a statement of cash flows

A. Only cash items that affect the income statement are included.

B. Only material cash items that affect the income statement are included.

C. Material non-cash transactions are included.

D. Immaterial financing activities that affect cash do not need to be included.

E. None of the above.

47. In the statement of cash flows, the amount of depreciation and amortization expense is added back to net income because:

A. these expenses do not affect cash, but were subtracted in the determination of net income.

B. these expenses affect investing activities, not operating activities.

C. the cash disbursements for these accrued expenses will be made in a future period.

D. these expenses are recognized for accounting purposes, but they do not represent economic costs.

48. In the statement of cash flows, an increase in the accounts receivable balance from the beginning of the period to the end of the period would:

A. be added to net income because this represents earned revenues that have not been collected.

B. be subtracted from net income because this represents earned revenue provided by operating earnings.

C. be added to net income because this means that revenues were less than cash collected.

D. be subtracted from net income because this means that revenues were more than cash collected.

49. Revenue may be recognized:

A. from the sale of a company’s own common stock.

B. if a company trades inventory at its usual sale value for newspaper advertising.

C. if management believes the market value of land held for future development rises.

D. in 2010 from the sale of subscriptions of a magazine to be published in 2011.

50. The term, “realization,” in revenue recognition refers to which of the following

A. The entity has completed, or substantially completed, the activities it must perform to be entitled to the revenue benefits.

B. The product or service has been exchanged for cash, claims to cash, or an asset that is readily convertible to a known amount of cash or claims to cash.

C. The entity has received an irrevocable order for goods or services.

D. Cash has been received with an irrevocable order for goods or services.

E. None of the above.

ESSAY:

1.Use the appropriate information from the data provided below for the year ended December 31, 2009 to calculate the following:

a. Operating income
b. Income from continuing operations
c. Net income

Cost of goods sold $117,000
General and administrative expenses 48,000
Net cash provided by financing activities 69,000
Dividends paid 16,000
Extraordinary loss from a flood,net of
tax savings of $32,000 74,000
Income tax expenses 11,000
Other Selling expenses 26,000
Net sales 278,000
Advertising expenses 39,000
Accounts receivable 33,000

2. The balance sheet caption for common stock is:

Common stock, $10 par value, 7,000,000 shares authorized, 5,700,000 shares issued, 5,500,000 shares outstanding.

(a.) Calculate the dollar amount that will be presented opposite of this caption.

(b.) Calculate the total amount of a cash dividend of $1.00 per share.

(c.) What accounts for the difference between issued shares and outstanding shares

final exam acct 497139

Aug 29, 2021 | Uncategorized

1. You have an opportunity to buy a $1,000 bond which matures in 10 years. The bond pays $30 every six months. The current market interest rate is 8%. What is the most you would be willing to pay for this bond?

2. In January, 1998, Harold Black bought 100 shares of Country Homes for $37.50 per share. He sold them in January, 2008 for a total of $9,715.02. Calculate Harold’s annual rate of return.

3. Samuel Johnson invested in gold U.S. coins ten years ago, paying $216.53 for one-ounce gold “double eagle” coins. He could sell these coins for $734 today. What was his annual rate of return for this investment?

4. Gary Kiraly wants to buy a new Italian sports car in three years. The vehicle is expected to cost $80,000 at that time. If Gary should be so lucky as to find an investment yielding 12% over that three-year period, how much would he have to invest now in order to accumulate $80,000 at the end of the three years?

5. Mr. Sullivan is borrowing $2 million to expand his business. The loan will be for ten years at 12% and will be repaid in equal quarterly installments. What will the quarterly payments be?

6. Marcia Stubern is planning for her golden years. She will retire in 20 years, at which time she plans to begin withdrawing $60,000 annually. She is expected to live for 20 years following her retirement. Her financial advisor thinks she can earn 9% annually. How much does she need to invest each year to prepare for her financial needs after her retirement?

7. Sara Shouppe has invested $100,000 in an account at her local bank. The bank will pay her a constant amount each year for 6 years, starting one year from today, and the account’s balance will be 0 at the end of the sixth year. If the bank has promised Ms. Shouppe a 10% return, how much will they have to pay him each year?

8. The Swell Computer Company has developed a new line of desktop computers. It is estimated that the cash returns generated by the new product line will be $800,000 per year for the next five years, and then $500,000 per year for 3 years after that (the cash returns occur at the end of each year). At a 9% interest rate, what is the present value of these cash returns?

9. Kimberly Ford invested $10,000 10 years ago at 16 percent, compounded quarterly. How much has she accumulated?

10. Sponge Bob will receive a payment of $5,000 per year for 7 years beginning three years from today. At a discount rate of 9 percent, what is the present value of this deferred annuity?

11. Fullerton Company’s bonds are currently selling for $1,157.75 per $1000 par-value bond. The bonds have a 10% coupon rate and will mature in 10 years. What is the approximate yield to maturity?

12. Madison Corporation has a $1000 par value bond outstanding paying annual interest of 7%. The bond matures in 20 years. If the present yield to maturity for this bond is 9%, calculate the current price of the bond using annual compounding. Use annual analysis.

13. Washington Corporation has a $1000 par value bond outstanding paying annual interest of 8%. The bond matures in 20 years. If the present yield to maturity for this bond is 10%, calculate the current price of the bond. Use annual analysis

14. The preferred stock of Gapers Inc. pays an annual dividend of $6.50. What is the price of the preferred stock if the required return is:

a) 6%
b) 8%
c) 10%

15. The preferred stock of Lewis-Schultz Enterprises pays an annual dividend of $6.00. What is the required return if the market value of the preferred stock:

a) $60
b) $70
c) $80

16. State Street Corp. will pay a dividend on common stock of $4.80 per share at the end of the year. The required return on common stock (Ke) is 13.2%. The firm has a constant growth rate of 7.2%. Compute the current price of the stock (Po).

17. Simon Fixtures Corp. is expected to pay $2.00 per share in dividends at the end of the next 12 months. The growth rate in dividends is expected to be constant at 8% per year. If the stock is selling for $50 per share, what is the required rate of return?

”
– Sent to Business Expert Tutor on 12/14/2010 at 8:39am
You asked:
“
Solve the following, show how you reach the final answer.

1. You have an opportunity to buy a $1,000 bond which matures in 10 years. The bond pays $30 every six months. The current market interest rate is 8%. What is the most you would be willing to pay for this bond?

2. In January, 1998, Harold Black bought 100 shares of Country Homes for $37.50 per share. He sold them in January, 2008 for a total of $9,715.02. Calculate Harold’s annual rate of return.

3. Samuel Johnson invested in gold U.S. coins ten years ago, paying $216.53 for one-ounce gold “double eagle” coins. He could sell these coins for $734 today. What was his annual rate of return for this investment?

4. Gary Kiraly wants to buy a new Italian sports car in three years. The vehicle is expected to cost $80,000 at that time. If Gary should be so lucky as to find an investment yielding 12% over that three-year period, how much would he have to invest now in order to accumulate $80,000 at the end of the three years?

5. Mr. Sullivan is borrowing $2 million to expand his business. The loan will be for ten years at 12% and will be repaid in equal quarterly installments. What will the quarterly payments be?

6. Marcia Stubern is planning for her golden years. She will retire in 20 years, at which time she plans to begin withdrawing $60,000 annually. She is expected to live for 20 years following her retirement. Her financial advisor thinks she can earn 9% annually. How much does she need to invest each year to prepare for her financial needs after her retirement?

7. Sara Shouppe has invested $100,000 in an account at her local bank. The bank will pay her a constant amount each year for 6 years, starting one year from today, and the account’s balance will be 0 at the end of the sixth year. If the bank has promised Ms. Shouppe a 10% return, how much will they have to pay him each year?

8. The Swell Computer Company has developed a new line of desktop computers. It is estimated that the cash returns generated by the new product line will be $800,000 per year for the next five years, and then $500,000 per year for 3 years after that (the cash returns occur at the end of each year). At a 9% interest rate, what is the present value of these cash returns?

9. Kimberly Ford invested $10,000 10 years ago at 16 percent, compounded quarterly. How much has she accumulated?

10. Sponge Bob will receive a payment of $5,000 per year for 7 years beginning three years from today. At a discount rate of 9 percent, what is the present value of this deferred annuity?

11. Fullerton Company’s bonds are currently selling for $1,157.75 per $1000 par-value bond. The bonds have a 10% coupon rate and will mature in 10 years. What is the approximate yield to maturity?

12. Madison Corporation has a $1000 par value bond outstanding paying annual interest of 7%. The bond matures in 20 years. If the present yield to maturity for this bond is 9%, calculate the current price of the bond using annual compounding. Use annual analysis.

13. Washington Corporation has a $1000 par value bond outstanding paying annual interest of 8%. The bond matures in 20 years. If the present yield to maturity for this bond is 10%, calculate the current price of the bond. Use annual analysis

14. The preferred stock of Gapers Inc. pays an annual dividend of $6.50. What is the price of the preferred stock if the required return is:

a) 6%
b) 8%
c) 10%

15. The preferred stock of Lewis-Schultz Enterprises pays an annual dividend of $6.00. What is the required return if the market value of the preferred stock:

a) $60
b) $70
c) $80

16. State Street Corp. will pay a dividend on common stock of $4.80 per share at the end of the year. The required return on common stock (Ke) is 13.2%. The firm has a constant growth rate of 7.2%. Compute the current price of the stock (Po).

17. Simon Fixtures Corp. is expected to pay $2.00 per share in dividends at the end of the next 12 months. The growth rate in dividends is expected to be constant at 8% per year. If the stock is selling for $50 per share, what is the required rate of return?

final exam help 497140

Aug 29, 2021 | Uncategorized

1. Many forms of leisure and recreation have shifted from spontaneous or informal activities to formal and organized ones true or false
Answer True
False
2. The care of the elderly is primarily a task entrusted to the family.
Answer True
False
3. true or false The United States has the lowest infant mortality rate in the world
Answer True
False
4. is it true or false that The media have always been an instrument of the state as well as a tool for social change.
Answer True
False
5. Under certain conditions, the Federal Communication Commission allows a single company to own every media outlet in a single market.
Answer True
False
6. The nature of health can be defined by its social rather than biological context.
Answer True
False
7. What led to the increase in leisure time in the twentieth century?
Answer

a. Changes in values and norms made leisure seem more desirable.

b. increases in industrial productivity and time-saving technologies

c. decreases in family size

d. urbanization

e. increases in life span and better health care
8. Revolutionary social change is often the result of technological developments.
Answer True
False

9. The tragedy of the commons is a kind of social dilemma in which:
Answer

a. science needs to come up with better technical solutions to environmental problems.

b. individually rational behavior leads to collective disaster.

c. individuals must be convinced to contribute to a collective resource that they may or may not benefit from.

d. fortunately most people are not motivated by self-interest.

e. the more critical the situation becomes, the more likely people are to cooperate with one another.

10. The spread of material and nonmaterial culture to new cultural groups, even when there is no migration of people, is called:
Answer

a. postmodernism.

b. cultural leveling.

c. cultural lag.

d. cultural diffusion.

e. culture shock.

11. Which of the following people would be most likely to join a social movement?
Answer

a. a young woman who attends college and is involved in campus government and volunteers for local and state political campaigns

b. a disaffected loner, taking lots of math classes, but without a real social life or a good outlet to make friends or form romantic relationships

c. a young man from the lower class who gets a job in a campus cafeteria and notices how well off the students he serves are

d. an average student who spends a lot of time smoking marijuana and switches majors several times

e. a single mother who works nights as a stocker at a grocery store and has relatives both in the deep south and on the west coast
12. How does the U.S. Census Bureau define family
Answer

a. two or more individuals related by blood, marriage, or adoption who share a household

b. a social group bound to one another through legal, biological, or emotional ties

c. people who are emotionally and/or materially interdependent

d. people who share a household

e. parents living with minor children

13. Death and illness in a population is bad for productivity of the system and is a destabilizing force. Which theory takes this approach to medicine?
Answer

a. sick role

b. ecological

c. structural functionalism

d. symbolic interactionism

e. conflict
14. Which of the following is NOT considered to be protected speech?
Answer

a. information about bombs and weapons

b. hateful language directed at racial and ethnic minorities

c. pictures taken of celebrities on public property

d. information about the personal lives of political candidates

e. material considered to be obscene

15. If an urban neighborhood were to suddenly develop an assortment of upscale restaurants, coffee shops, hip boutiques, and art galleries, then the neighborhood is:
Answer

a. becoming gentrified.

b. growing into an edge city.

c. reacting to the rural rebound.

d. changing patterns of pollution and resource use.

e. experiencing smart growth.

16. Whereas the top causes of death in the United States are ________________, those in the developing world are continually affected by the threat of _______________.
Answer

a. acute; curative

b. preventive; crisis

c. preventive; chronic

d. chronic; acute

e. crisis; acute

17. Jorge has learned that he has a mental illness. Since then, he has begun to act according to the illness, in ways that he thinks others expect someone with a mental illness to act. Which theory of health and illness best explains his situation?
Answer

a. conflict

b. stigma

c. symbolic interactionism

d. sick role

e. doctor patient confidentiality

18. How does Robert Bellah believe that style enclaves are different from real communities
Answer

a. They tend to remain focused on shared interests rather than on the larger community.

b. They usually lead to more altruistic behaviors and an interest in others.

c. They have greater community spirit.

d. They tend to be integrated into a larger social group.

e. all of the above

19. How do rates of domestic abuse differ across racial groups?
Answer

a. They are lower among Asian Americans than in other racial groups.

b. They are about equal across racial groups.

c. They are higher among non-English-speaking individuals than among English speakers.

d. They are lower among immigrants from Southeast Asia than in other groups.

e. They are higher among African Americans and Hispanics than in other racial groups.

20. Activities that are recreation today were necessities in the past.
Answer True
False

21. Real environmental justice would mean that poor communities would not have to choose between economic development and a healthy environment.
Answer True
False

22. C. Wright Mills used the term the sociological imagination to refer to important interconnections between personal troubles and public issues. What would he have said about deprivation amplification?
Answer

a. It didn t really apply to a sociological imagination.

b. Both public issues and personal troubles contribute to poor health and so work needs to be done at both levels to more properly address disease rates.

c. Neither public issues nor personal troubles contribute to poor health and so work done at these levels would not address disease rates any differently.

d. Personal troubles cause poor health and so work needs to be done to more properly address disease rates.

e. Public issues cause poor health and so work needs to be done to more properly address disease rates.

23. According to conflict theory, how does the nuclear family facilitate exploitation?
Answer

a. by making geographic mobility possible

b. by employing members of other social groups to do its dirty work

c. by exploiting the working class, whose products it consumes

d. through the use of nannies and domestic workers

e. through a sexual division of labor within the home
24. All successful social movements are eventually incorporated into institutions.
Answer True
False

25. Which of the following is a basic demographic variable?
Answer

a. agglomeration

b. dystopia

c. pluralism

d. migration

e. sustainable development

26. Which of the following sounds most like recreation, as your textbook defines it?
Answer

a. a magician who puts up flyers and works at children s birthday parties

b. a guitarist on tour who has to sell t-shirts and CDs at the merchandise table after each show

c. a student s time between getting out of class and going to work

d. the recess period given to children in primary school, when they can spend unstructured time on the playground

e. someone learning the calculus required to compute the amount and type of fuel needed to power a model rocket that he wants to launch in a par
27. Paolo broke a finger playing soccer. He was seen by a medical practitioner very soon after the accident. His ailment would be classified as a chronic illness.
Answer True
False

28. The United States is the only industrialized nation without some nationalized health care.
Answer True
False

29. According to relative deprivation theory, why do people join social movements?
Answer

a. They are ordered to do so by the government.

b. Social movements are good places to meet people and network.

c. They are filling a psychological need to belong to something.

d. Joining a social movement is a rational response to inequality or oppression.

e. Social movements are a necessary part of a system of social stratification.

30. Because many media companies are now global, the content that they produce reflects a wide range of Western and nonwestern values.
Answer True
False

31. In Lincoln, Nebraska, in the summer of 2009, two groups held rallies about health care, one supporting and one opposing legislation proposed to overhaul America s health care system. At one point, the two groups went beyond holding signs and shouting slogans and tempers flared. Objects were thrown, shoving matches broke out, and the police had to step in to break up the:
Answer

a. social movement.

b. rally.

c. contagion.

d. march.

e. riot.

32. As an agent of socialization, who does the family influence?
Answer

a. only children

b. everyone

c. women

d. the elderly

e. none of the above
33. How do people with an anthropocentric relationship with the environment perceive nature?
Answer

a. as something to be preserved

b. as the ultimate source of meaning

c. as something to be studied and examined before it is tainted by human activity

d. as a place to find spiritual truth

e. as something to be conquered
34. More recently, epidemiologists are studying the role of temperature increases in the spread of diseases globally. Specifically they have found that increases in temperature can also increase pathogen-carrying agents called:
Answer

a. infectious agents.

b. mosquitoes.

c. pathogens.

d. ecosystem deterrents.

e. vector organisms.

35. A woman who recently moved from New York to North Carolina had a year of probation left from a fraud conviction, but was told that North Carolina would not supervise her probation because she was guilty of lewd and lascivious association. Specifically she lived with her boyfriend. She later said that, when she moved to North Carolina, it was the first time she had heard of:
Answer

a. divorce.

b. intentional communities.

c. cohabitation.

d. noncustodial parents.

e. symbolic interactionism.

36. In the early 1900s, what percentage of Americans lived in cities?
Answer

a. 10 percent

b. 99 percent

c. 6 percent

d. 40 percent

e. 90 percent

37. If the vast majority of people in the cities and towns of Riverside County, California, were to commute to work in Los Angeles, these communities would be edge cities.
Answer True
False

38. The movement that attempts to rebuild group values and a sense of collective responsibility is called:
Answer

a. socialism.

b. functionalism.

c. Marxism.

d. communitarianism.

e. textual poaching.

39. The increasing number of Americans who move out of state to attend college will decrease the importance of ____________, assuming that students start new romantic relationships in school.
Answer

a. exogamy

b. homogamy

c. miscegenation

d. monogamy

e. propinquity

40. The documentary Unnatural Causes explores the lives of several Louisville, Kentucky residents at different socio-economic status levels and from various racial backgrounds. It found that poorer Louisville residents suffered greater rates of illness and died earlier than wealthier ones. What is this an example of?
Answer

a. anomie

b. deprivation amplification

c. food deserts

d. impression management

e. environmental racism

41. In the past, which group of people had the time and resources necessary to pursue recreational activity?
Answer

a. the middle class and the upper class

b. only the wealthy

c. only the clergy

d. almost everyone

e. only the very poor

42. Propinquity refers to:
Answer

a. the appeal of the family.

b. geographical proximity.

c. the desire for the exotic and the foreign.

d. a fixed set of beliefs.

e. the tendency to seek people with similar backgrounds.

43. The bureaucratization stage of a social movement:
Answer

a. in the U.S. labor movement, happened when the AFL and the CIO merged.

b. always happens at the beginning.

c. happened during the gay rights movement with the Stonewall riot.

d. happened for the environmental rights movement with the release of the film An Inconvenient Truth

e. has not yet happened for the gay rights movement.

44. Leisure and work are complementary activities. What links them together?
Answer

a. the weekend

b. consumption

c. children and the family

d. food

e. democracy

45. According to Georg Simmel, how do city dwellers relate to one another?
Answer

a. by constantly monitoring one another in order to detect violations of norms and values

b. through restrictive constraints on personal behavior

c. in terms of class-based loyalties

d. through family connections

e. in objective and instrumental terms

46. Hunger remains widespread in many parts of the world, but not in the United States.
Answer True
False

47. The Mall of America has more than 10,000 workers, occupies more than 4 million square feet, and receives more than 40 million visitors each year. However, the mall offers more than just shopping. Concerts, plays, story times for children, flight simulators, and an indoor aquarium are just a few of the elements of what the mall calls its retail experience. What point does this illustrate?
Answer

a. Alternative media sources are driving Americans to consider new ideas and experience life differently.

b. Rather than paying for things, more and more Americans are now making their own fun.

c. Shopping is now as much about entertainment as it is about purchasing things.

d. Many forms of leisure and recreation seem to have shifted from organized and formal activities to spontaneous or informal activities.

e. Americans are increasingly less likely to go out for a dose of the arts and more likely to stay home and enjoy performances in front of their home entertainment centers.

48. The Golden Gate Bridge in San Francisco is an icon of the city by the bay and a world renowned tourist destination. It is also the number one suicide magnet in the world. Which theoretical explanation for suicide would best explain the high rates of suicide at the bridge?
Answer

a. psychological

b. anomic

c. contagion

d. selectionan

e. ecological

49. What sport is immensely popular in almost every part of the world EXCEPT the United States?
Answer

a. track and field

b. basketball

c. baseball

d. soccer

e. hockey

50. Media are one of the United States most profitable exports.
Answer True
False

51. The 2010 Health Care Reform Act (formally called the Patient Protection and Affordable Care Act ) represents:
Answer

a. the medical establishment.

b. the importance of medical systems in the United States.

c. a sweeping overhaul of the U.S. health care system.

d. patients power and status.

e. doctor patient confidentiality.

52. How would a sociologist define family
Answer

a. two or more individuals related by blood, marriage, or adoption who share a household

b. both the nuclear family and the extended family to the extent that family members share emotional and material responsibilities

c. almost any social group so long as they share responsibilities for raising children

d. an interdependent social group bound by legal, biological, or emotional ties

e. a group of related people who share a household

53. A sociologist who examines how cities are organized or the migration of human populations is studying:
Answer

a. social ecology.

b. environmental attitudes.

c. renewable resources.

d. environmental justice.

e. grassroots environmentalism.

54. The transformation of culture over time is called:
Answer

a. social iteration.

b. social revolution.

c. cultural evolution.

d. social change.

e. cultural translation.

55. The Industrial Revolution made cities necessary, as a large number of people had to be brought in to work in factories, but ever since then many people have found city life attractive. Why?
Answer

a. Cities offer a profound sense of security.

b. Cities bring people together and help to develop community.

c. Cities offer a high degree of personal freedom.

d. Cities help people develop deep and intense relationships.

e. all of the above

56. Health and illness are mostly physical states that do not include other life aspects such as mental well-being or changing cultural beliefs.
Answer True
False

57. In countries where ____________ has happened, there no longer is a natural increase in population.
Answer

a. the Industrial Revolution

b. human exemptionalism

c. the demographic freefall

d. extreme water pollution

e. the demographic transition

58. Family friends who are referred to as Aunt or Uncle are examples of:
Answer

a. the Full House effect.

b. fictive kin.

c. polygyny.

d. extended families.

e. homogamy.
59. Some cell phone providers are now offering hardware, like small laptops, and media to play on it, like songs and TV shows. Phone companies believe that each product they offer will encourage and promote other products, as phones can easily send data to laptops, which can store media that can easily be watched on phones, and so on. What is this called?
Answer

a. synergy

b. the hypodermic needle theory

c. conglomeration

d. media concentration

e. bandwidth

60. A typical media conglomerate might include which of the following?
Answer

a. a book and magazine publisher

b. radio and television broadcasters

c. a sports franchise

d. none of the above

e. all of the above

61. How has technology enabled the shift from spontaneous to organized recreation?
Answer

a. It has made organized recreation more fun.

b. It has made it easier to organize people.

c. It has made organized recreation more competitive.

d. It has produced the tools necessary for organized recreation.

e. It has made shopping easier.

62. Is medicine in the United States a social institution?
Answer

a. Yes, because organizations like the American Medical Association set policy and shape definitions of health and illness throughout the nation.

b. Yes, because doctors need licenses to practice.

c. No, because it is more of an ideal than a social institution.

d. No, because organizations like the American Medical Association are brick and mortar places and not really widescale patterns of interaction.

e. Yes, because a study was done that polled Americans which reported that it is.

63. When a large number of people either collectively or individually engage in similar behaviors, sociologists call it:
Answer

a. collective behavior.

b. contagion.

c. mass behavior.

d. a social movement.

e. riots.

64. Although the hacky sack was invented in 1972, it exploded in popularity in the middle of the 1990s and is now somewhat less common. This is a good example of a:
Answer

a. social movement.

b. cultural diffusion.

c. fashion.

d. fad.

e. social dilemma.

Figure 13.1 The Concentration of Media Outlets

According to Figure 13.1, Google corporation has acquired a very large number of otherwise unrelated businesses in a variety of different sectors. For example, it is the owner of the largest wind farm on Earth. This process of acquiring businesses is called:
Answer

a. conglomeration.

b. synergy.

c. merger.

d. concentration.

e. fourth estate.

Talcott Parsons researched this from a structural functionalist perspective:
Answer

a. the medical establishment

b. medical policy

c. doctors power and status

d. doctor patient confidentiality

e. the sick role

67. What do demographers call larger urban areas, those with more than one million inhabitants?
Answer

a. global cities

b. megacities

c. Metropolitan Statistical Areas

d. global density centers

e. metropolises

68. What do the 19th Amendment to the Constitution, Nazism, birth control, and Protestantism all have in common?
Answer

a. They all involve social stratification.

b. They all began in the twentieth century.

c. They all have had a negative effect on society.

d. They all are the products of a single charismatic leader.

e. They all are the products of social movements.

69. The modern era is characterized by improvised or do-it-yourself forms of family.
Answer True
False

70. When a Star Trek fan club raises money for an animal welfare organization that is sponsored by the Star Trek actor William Shatner, what is this evidence of?
Answer

a. the inability of such groups to contribute to the common good

b. the fragmented nature of such groups

c. the narrow focus of a lifestyle enclave

d. the lack of real community in such groups

e. the ability of a lifestyle enclave to develop a larger sense of social responsibility

71. Although the family always influences its members, it is not always a very consistent influence because:
Answer

a. changes outside the family impact its members.

b. inequality between siblings changes the way that each child is socialized.

c. birth order changes the family experience.

d. divorce and remarriage can radically alter the way a family socializes its members at different points in time.

e. all of the above

72. Epidemiologists are studying global climate change and disease and have found a link between temperature increases and the spread of diseases.
Answer True
False

73. Although critics might see soap operas as brainwashing their viewers to accept a particular version of gender roles, some sociologists would insist that the people who produce soap operas actually have to be constantly attentive to the desires of their audience and are to some extent responding to their audience. If you believe this, then you probably see soap opera viewers as:
Answer

a. the bourgeoisie.

b. an active audience.

c. helpless dupes.

d. collectors.

e. new voices in the media.

74. What do sociologists call the tendency to marry someone of a similar background?
Answer

a. endogamy

b. heterogamy

c. in-group orientation

d. exogamy

e. romance medians

75. Seagram s, a company best known for its gin, also owns Universal Records. This is an example of what trend in the media industry?
Answer

a. antidisestablishmentarianism

b. inequality

c. conglomeration

d. deregulation

e. monopoly

76. Regressive or reactionary social movements are always:
Answer

a. the most common type of social movement.

b. motivated by prejudice or hate.

c. successful only when they use violence.

d. working to make sure things stay the same, or even to turn them back to an earlier point in history.

e. motivated by a desire to protect the environment.

77. How does the birth of children change the gendered division of labor within the household?
Answer

a. It makes the gendered division of labor more traditional.

b. It has no influence on the gendered division of labor.

c. It gets fathers more involved.

d. It makes the gendered division of labor more traditional in families that were always somewhat traditional, but it has no effect on those who had a more progressive division of labor.

e. It brings the extended family into the household more.

78. Popular urban legends sometimes circulate for years.
Answer True
False

79. An office has a coffee fund, an old coffee can where people can toss change anytime they pour a cup of coffee. The fund can be used to buy new coffee for the office when the supply runs out. However, one individual always takes coffee and never puts any money in the fund, making him a:
Answer

a. prisoner.

b. free rider.

c. dilemma.

d. resource mobilizer.

e. contrarian.

80 Which of the following would NOT be a family as sociologists define the term?
Answer

a. a married couple who maintain separate apartments on different sides of Central Park in New York City

b. a lesbian couple who have a child using a sperm donor

c. a couple who remarries and shares a household with children from their previous marriages

d. an unmarried couple who never have children

e. two men who enter a business partnership in which one runs a retail outlet while the other produces products to sell in it

81. When an individual describes someone who is related to them biologically as not really kin, what are they saying?
Answer

a. The relative has not exercised her rights or fulfilled her obligations as a family member.

b. The relative is part of the extended, rather than the nuclear family.

c. The relative doesn t belong to the relevant voluntary associations.

d. The relative has died.

e. all of the above

82. What feature of fan-staged encounters can be problematic?
Answer

a. how powerless a fan is in such circumstances

b. the brief and inadequate nature of the contact

c. the amount of money that they cost

d. they usually occur without the consent of the celebrity

e. all of the above

final exam take home problem 20 points based on the information provided below prepa 497141

Aug 29, 2021 | Uncategorized

Final Exam Take Home Problem (20 points)

Based on the information provided below, prepare the statement of cash flows for the Gulp-it-Down Coffee Co.

Additional Information:
(1.) Net income for the year amounted to $60,000, and cash dividends were declared and paid in the amount of $20,000.
(2.) Gulp-it-Down Coffee Co.’s only noncash expense was depreciation Expense which totaled $100,000.
(3.) The company purchased plant assets for $140,000.
(4.) Bonds payable in the amount of $60,000 were issued during the year.

final exam v1 mcqs 497144

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final paper 497145

Aug 29, 2021 | Uncategorized

Final Paper

Focus of the Final Paper

Write a five-to seven-page financial statement analysis of a public company, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis you will discuss the financial health of this company with the ultimate goal of making a recommendation to other investors. Your paper should consist of the following sections: introduction, company overview, horizontal analysis, ratio analysis, final recommendation, and conclusions. Your paper needs to include a minimum of two scholarly resources in addition to the textbook as references.

Here is a breakdown of the sections within the body of the assignment:

Company Overview
Provide a brief overview of your company (one to two paragraphs at most). What industry is it in What are its main products or services Who are its competitors?

Horizontal Analysis of Income Statement and Balance Sheet
Prepare a three-year horizontal analysis of the income statement and balance sheet of your selected company. Discuss the importance and meaning of horizontal analysis. Discuss both the positive and negative trends presented in your company.

Ratio Analysis
Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period. Discuss and interpret the ratios that you calculated. Discuss potential liquidity issues based on your calculations of the current and quick ratios. Are there any factors that could be erroneously influencing the results of the ratios Discuss liquidity issues of competitive companies within the same industry.

Recommendation
Based on your analysis would you recommend an individual invest in this company What strengths do you see What risks do you see It is perfectly acceptable to state that you would recommend avoiding this company as long as you provide support for your position.

Writing the Final Paper

1. Must be five to seven double-spaced pages in length, and formatted according to APA style as outlined in the Ashford Writing Center.
2. Must include a title page with the following:

a. Title of paper

b. Student s name

c. Course name and number

d. Instructor s name

e. Date submitted

3. Must begin with an introductory paragraph that has a succinct thesis statement.
4. Must address the topic of the paper with critical thought.
5. Must end with a conclusion that reaffirms your thesis.
6. Must document all sources in APA style, as outlined in the Ashford Writing Center.
7. Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.

final paper 497146

Aug 29, 2021 | Uncategorized

Final Paper

Focus of the Final Paper

Write a five-to seven-page financial statement analysis of a public company, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis you will discuss the financial health of this company with the ultimate goal of making a recommendation to other investors. Your paper should consist of the following sections: introduction, company overview, horizontal analysis, ratio analysis, final recommendation, and conclusions. Your paper needs to include a minimum of two scholarly resources in addition to the textbook as references.

Here is a breakdown of the sections within the body of the assignment:

Company Overview
Provide a brief overview of your company (one to two paragraphs at most). What industry is it in? What are its main products or services? Who are its competitors?

Horizontal Analysis of Income Statement and Balance Sheet
Prepare a three-year horizontal analysis of the income statement and balance sheet of your selected company. Discuss the importance and meaning of horizontal analysis. Discuss both the positive and negative trends presented in your company.

Ratio Analysis
Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period. Discuss and interpret the ratios that you calculated. Discuss potential liquidity issues based on your calculations of the current and quick ratios. Are there any factors that could be erroneously influencing the results of the ratios? Discuss liquidity issues of competitive companies within the same industry.

Recommendation
Based on your analysis would you recommend an individual invest in this company? What strengths do you see? What risks do you see? It is perfectly acceptable to state that you would recommend avoiding this company as long as you provide support for your position.

Writing the Final Paper

1. Must be five to seven double-spaced pages in length, and formatted according to APA style as outlined in the Ashford Writing Center.
2. Must include a title page with the following:

a. Title of paper

b. Student s name

c. Course name and number

d. Instructor s name

e. Date submitted

3. Must begin with an introductory paragraph that has a succinct thesis statement.
4. Must address the topic of the paper with critical thought.
5. Must end with a conclusion that reaffirms your thesis.
6. Must document all sources in APA style, as outlined in the Ashford Writing Center.
7. Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.

Carefully review the Grading Rubric for the criteria that will be used to evaluate your assignment.

final paper ashford aac 205 looking for best price 5 pages 497147

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Final Paper

Focus of the Final Paper

Write a five-to seven-page financial statement analysis of a public company, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis you will discuss the financial health of this company with the ultimate goal of making a recommendation to other investors. Your paper should consist of the following sections: introduction, company overview, horizontal analysis, ratio analysis, final recommendation, and conclusions. Your paper needs to include a minimum of two scholarly resources in addition to the textbook as references.

Here is a breakdown of the sections within the body of the assignment:

Company Overview
Provide a brief overview of your company (one to two paragraphs at most). What industry is it in What are its main products or services Who are its competitors?

Horizontal Analysis of Income Statement and Balance Sheet
Prepare a three-year horizontal analysis of the income statement and balance sheet of your selected company. Discuss the importance and meaning of horizontal analysis. Discuss both the positive and negative trends presented in your company.

Ratio Analysis
Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period. Discuss and interpret the ratios that you calculated. Discuss potential liquidity issues based on your calculations of the current and quick ratios. Are there any factors that could be erroneously influencing the results of the ratios Discuss liquidity issues of competitive companies within the same industry.

Recommendation
Based on your analysis would you recommend an individual invest in this company What strengths do you see What risks do you see It is perfectly acceptable to state that you would recommend avoiding this company as long as you provide support for your position.

Writing the Final Paper

1. Must be five to seven double-spaced pages in length, and formatted according to APA style as outlined in the Ashford Writing Center.
2. Must include a title page with the following:

a. Title of paper

b. Student s name

c. Course name and number

d. Instructor s name

e. Date submitted

3. Must begin with an introductory paragraph that has a succinct thesis statement.
4. Must address the topic of the paper with critical thought.
5. Must end with a conclusion that reaffirms your thesis.
6. Must document all sources in APA style, as outlined in the Ashford Writing Center.
7. Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.

final paper ashford acc205 principles of accounting i 497148

Aug 29, 2021 | Uncategorized

Final Paper

Focus of the Final Paper

Write a five-to seven-page financial statement analysis of a public company, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis you will discuss the financial health of this company with the ultimate goal of making a recommendation to other investors. Your paper should consist of the following sections: introduction, company overview, horizontal analysis, ratio analysis, final recommendation, and conclusions. Your paper needs to include a minimum of two scholarly resources in addition to the textbook as references.

Here is a breakdown of the sections within the body of the assignment:

Company Overview
Provide a brief overview of your company (one to two paragraphs at most). What industry is it in What are its main products or services Who are its competitors?

Horizontal Analysis of Income Statement and Balance Sheet
Prepare a three-year horizontal analysis of the income statement and balance sheet of your selected company. Discuss the importance and meaning of horizontal analysis. Discuss both the positive and negative trends presented in your company.

Ratio Analysis
Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period. Discuss and interpret the ratios that you calculated. Discuss potential liquidity issues based on your calculations of the current and quick ratios. Are there any factors that could be erroneously influencing the results of the ratios Discuss liquidity issues of competitive companies within the same industry.

Recommendation
Based on your analysis would you recommend an individual invest in this company What strengths do you see What risks do you see It is perfectly acceptable to state that you would recommend avoiding this company as long as you provide support for your position.

Writing the Final Paper

1. Must be five to seven double-spaced pages in length, and formatted according to APA style as outlined in the Ashford Writing Center.
2. Must include a title page with the following:

a. Title of paper

b. Student s name

c. Course name and number

d. Instructor s name

e. Date submitted

3. Must begin with an introductory paragraph that has a succinct thesis statement.
4. Must address the topic of the paper with critical thought.
5. Must end with a conclusion that reaffirms your thesis.
6. Must document all sources in APA style, as outlined in the Ashford Writing Center.
7. Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.

final paper ashford this is for martin 497149

Aug 29, 2021 | Uncategorized

Final Paper

Focus of the Final Paper

Write a five-to seven-page financial statement analysis of a public company, formatted according to APA style as outlined in the Ashford Writing Center. In this analysis you will discuss the financial health of this company with the ultimate goal of making a recommendation to other investors. Your paper should consist of the following sections: introduction, company overview, horizontal analysis, ratio analysis, final recommendation, and conclusions. Your paper needs to include a minimum of two scholarly resources in addition to the textbook as references.

Here is a breakdown of the sections within the body of the assignment:

Company Overview
Provide a brief overview of your company (one to two paragraphs at most). What industry is it in What are its main products or services Who are its competitors?

Horizontal Analysis of Income Statement and Balance Sheet
Prepare a three-year horizontal analysis of the income statement and balance sheet of your selected company. Discuss the importance and meaning of horizontal analysis. Discuss both the positive and negative trends presented in your company.

Ratio Analysis
Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period. Discuss and interpret the ratios that you calculated. Discuss potential liquidity issues based on your calculations of the current and quick ratios. Are there any factors that could be erroneously influencing the results of the ratios Discuss liquidity issues of competitive companies within the same industry.

Recommendation
Based on your analysis would you recommend an individual invest in this company What strengths do you see What risks do you see It is perfectly acceptable to state that you would recommend avoiding this company as long as you provide support for your position.

Writing the Final Paper

1. Must be five to seven double-spaced pages in length, and formatted according to APA style as outlined in the Ashford Writing Center.
2. Must include a title page with the following:

a. Title of paper

b. Student s name

c. Course name and number

d. Instructor s name

e. Date submitted

3. Must begin with an introductory paragraph that has a succinct thesis statement.
4. Must address the topic of the paper with critical thought.
5. Must end with a conclusion that reaffirms your thesis.
6. Must document all sources in APA style, as outlined in the Ashford Writing Center.
7. Must include a separate reference page, formatted according to APA style as outlined in the Ashford Writing Center.

fin 534 paper 497126

Aug 29, 2021 | Uncategorized

In this assignment,
assume you are a savvy financial analyst researching companies in which to
invest.

Select a U.S.
publically-traded company you think might be a good investment and perform a
financial analysis.

Your analysis should include the
following:

Company Overview. Conduct research and describe the
company, its operations, locations, markets, and lines of business. Collect
financial statements for the past three (3) years, fiscal or calendar (please
insert these in the appendix). These financial statements must include at least
the income statement and the balance sheet.

Evaluate the company s
vulnerability to current financial threats such as a recession, higher interest rates, and global
competition.

Financial Performance. Based on the financial trends of the
company, predict how these trends will impact financial performance in future
periods. Explain your rationale for this prediction.

Stock Price Analysis. Given the performance of the stock in the periods
presented on the company s financial statements, discuss how the stock is
likely to perform in the future, what type of investor would be drawn to this
stock, and make a recommendation to management to improve stock performance.

Submit your analysis
in the form of a 6-8 page paper in which you:

Provide a detailed overview
of a U.S. publicly traded company. This should be one to two (1-2) pages.

Evaluate the company s
vulnerability to current financial threats such as a recession, higher interest
rates, and global competition

Based on the financial
trends of the company, predict how these trends will impact financial
performance in future periods. Explain your rationale for this prediction.

Cite at least five (5) quality
references.

fin 540 chapter 3 problems 497127

Aug 29, 2021 | Uncategorized

FIN 540 chapter 3 problems

Problems

Margin purchase

1.Assume you buy 100 shares of stock at $40 per share on margin (50 percent). If the price rises to $55 per share, what is your percentage gain on the initial equity?

Margin purchase

2.In problem 1, what would the percentage loss on the initial equity be if the price had decreased to $28?

Minimum margin

3.Assume you have a 25 percent minimum margin standard in problems 1 and 2. With a price decline to $28, will you be called upon to put up more margin to meet the 25 percent rule? Disregard the $2,000 minimum margin balance requirement.

Minimum margin

4.Recompute the answer to problem 3 based on a stock decline to $23.75.

Selling short

5.You sell 100 shares of Norton Corporation short. The price of the stock is $60 per share. The margin requirement is 50 percent.

a.How much is your initial margin?

b.If stock goes down to $42, what is your percentage gain or loss on the initial margin (equity)?

c.If stock goes up to $67.50, what is your percentage gain or loss on the initial margin (equity)?

d.In partc, if the minimum margin standard is 30 percent, will you be required to put up more margin? (Do the additional necessary calculations to answer this question.)

Margin purchase and Selling short

6.You are very optimistic about the personal computer industry, so you buy 200 shares of Microtech Inc. at $45 per share. You are very pessimistic about the machine tool industry, so you sell short 300 shares of King Tools Corporation at $55. Each transaction requires a 50 percent margin balance.

a.What is the initial equity in your account?

b.Assume the price of each stock is as follows for the next three months (month-end).

Commission percentage

7.Lisa Loeb is considering buying 100 shares of CMA Record Company. The price of the shares is $52. She has checked around with different types of brokers and has been given the following commission quotes for the trade: online broker, $7; discount broker, $45; full-service broker, $98.

a.Compute the percentage commission for all three categories.

b.How many times larger is the percentage commission of the full-service broker compared with the online broker? Round two places to the right of the decimal point for this answer.

Computing tax obligations

8.Compute the tax obligation for the following using Table 3 1 on page 52.

a.An individual with taxable income of $59,000.

b.A married couple with taxable income of $130,000.

c.What is the average tax rate in partb?

Capital gains tax

9.Gill Thomas is in the 35 percent tax bracket. Her long-term capital gains tax rate is 15 percent. She makes $16,200 on a stock trade. Compute her tax obligation based on the following holding periods:

a.6 months.

b.14 months.

3-9.

Selling short and capital gains

10.Al Rodriguez sells 500 shares of Gold Mine Corp. short at $80 per share. The margin requirement is 50 percent. The stock falls to $62 over a three-month time period, and he closes out his position.

a.How much is his initial margin?

b.What is his percentage gain or loss on his initial margin?

c.If he is in a 35 percent tax bracket for short-term capital gains and a 15 percent bracket for long-term capital gains, what is his tax obligation?

d.If the stock went up to $94 instead of down to $62, what would be his dollar loss?

e.Assuming this is his only transaction for the year (2007), how large a tax deduction could he take against other income?

Price-weighted average

11.There are three stocks in a price-weighted index:

A $100

B 20

C 60

a.What is the average value for the index?

b.Assume stock A goes down by 25 percent and stock B goes up by 25 percent, and stock C remains the same. What is the new average value for the index?

c.Explain why in partbthe average changed with two stocks moving up and down by the same percentage amount.

Computing an index

12.Assume the following five companies are used in computing an index:

a.If the index is price weighted, what will be the value of the index on December 31, 2007? (Take the average price on December 31, 2007, and divide by the average price on January 1, 1984, and multiply by 100.)

b.If the index is value weighted, what will be the value of the index on December 31, 2007? (Take the total market value on December 31, 2007, and divide by the total market value on January 1, 1984, and multiply by 100.)

c.Explain why the answer in partbis different from the answer in parta.

Changing index values in a value-weighted index

13.Assume the following stocks make up avalue-weightedindex:

a.Compute the total market value and the weights assigned to each stock. Round to two places to the right of the decimal point. (The weights may add up to slightly more than 100 percent due to rounding.)

b.Assume the price of the shares of the Snider Corporation go up by 50 percent, while those of the Hodges Corporation go down by a mere 10 percent. The other two stocks remain constant. What will be the newly established value for the index?

c.Explain why the index followed the pattern it did in partb.

Changing index values in a value-weighted index

14.In problem 13, if the initial price of the shares of the Snider Corporation double while those of the Hodges Corporation go down by 7.5 percent, would the value of the index change? The other two stocks remain constant. Do the necessary computations.

fairchild company direct and indirect method cash flow 497102

Aug 29, 2021 | Uncategorized

Condensed financial data of Fairchild Company for 2010 and 2009 are presented below.

Additional information:
During the year, $70 of common stock was issued in exchange for plant assets. No plant assets were sold in 2010. Cash dividends
were $260.

Instructions

Complete the statement of cash flows using the direct method and indirect method.

fall 2013 acct 4111 section 010 extra credit assignment 497103

Aug 29, 2021 | Uncategorized

ACCT 4111
Fall 2013 ACCT 4111 Section: 010
Extra Credit Assignment
Instructions:
1. Prepare a cash flow statement using the information below. Use BOTH the direct and
indirect method to prepare the Operating Activities section (i.e., I expect to see 2 Operating
Activities sections, 1 Investing, and 1 Financing).
2. Each cash flow item in the statement should be appropriately labeled (use the naming
conventions used on the text).
3. Show all calculations / work used to prepare the 3 different sections of the cash flow
statement (this should be on a separate sheet). You will not receive credit for the
assignment if you do not show all work for each number.
4. Work should be neat and clearly labeled so that I can follow the calculations corresponding
to the cash flow item within the cash flow statement sections.
5. Be sure to clearly label and cross-reference each cash flow item on the statement to the
calculations that correspond to that cash flow item. E.g., if you have cash received from
customers in your cash flow statement, label this item as A or 1 in the margin and also
label the calculations that correspond to this number as A or 1 on your calculations
worksheet. In this way, I can easily find the calculations you performed for each item on
your cash flow statement.
6. Appropriately label the cash flow statement and the related sections follow the format
used in the text.
7. This is not a group assignment. Individual work is expected. No points will be given if
submitted assignment is not your own work.
Points: Total of 10 Points
Points are allocated as follows:
4 points for the Operating Activities direct
2 points for the Operating Activities indirect
2 points for the Investing Activities, and
2 points for the Financing Activities
As agreed, points will NOT be awarded for partially correct work in each section. Each
section must be accurately completed in its entirety to receive the allocated points
(including showing related calculations or T accounts).
Due Date: No Exceptions
This assignment is due no later than 6am on Tuesday, November 26, 2013.
There are no exceptions. Late submissions will not be accepted.

1

Assignment Submission
Select 1 of 2 Ways to submit assignment:
1. The assignment may be submitted via email. Scanned images that are clearly legible and
submitted in PDF format will be accepted. Work in MSExcel or MSWord will also be
accepted with clearly labeled pages/tabs (as appropriate).
2. Hardcopy slipped under my office door in RCB 5th Floor room 515 by the due date. Please
notify me ahead of time by email me if you choose this option. Note that access is
restricted to the RCB building after 7pm daily.

Assignment
In addition to the financial statements presented on the next pages, also find the notes below.
Use information as necessary from the notes and the financial statements to construct the cash
flow statement for the company for the year ending December 31, 2012
Notes:
1. All equipment/furniture purchases are made using cash. There were no disposals during
the year.
2. Land that originally cost $14,000 was sold for $9,800.
3. Short-term investments are not classified as a cash equivalent and are non-trade related.
Any purchases or sales are made in cash.
4. Long-term notes payable and bonds payable are shown in the balance sheet at their face
value and indicate repayments or issuances as appropriate.
5. Cash dividends were paid to shareholders during the year.

2

Green Lantern Company
Balance Sheet
December 31, 2012 and 2011
($ in 000s)
2012

2011

Assets
Current Assets
Cash
Accounts Receivable
Short-term Investments
Inventory
Total Current Assets
Property Plant and Equipment
Land
Equipment and Furniture
Less: Accumulated Depreciation
Net Property Plant and Equipment

$
$
$
$
$

58.8
102.2
56.0
105.0
322.0

$

70.0

$

84.0

609.0
679.0

$ 560.0
$ (105.0) $ 455.0
$ 539.0

$ 1,001.0

$ 805.0

Current Liabilities
Accounts Payable
Salaries Payable
Interest Payable
Income Tax Payable
Total Current Liabilities

$
$
$
$
$

39.2
2.8
7.0
12.6
61.6

$
$
$
$
$

Long-term Liabilities
Notes Payable
Bonds Payable
Total Long-term Liabilities

$
$
$

224.0
224.0

$ 42.0
$ 140.0
$ 182.0

Shareholders’ Equity
Common Stock
Paid in Capital – excess of par
Retained Earnings
Total Shareholders’ Equity

$
$
$
$

350.0
176.4
189.0
715.4

$
$
$
$

Total Liabilities and Shareholders’ Equity

$ 1,001.0

Total Assets

$ 770.0
$ (161.0) $
$

$ 42.0
$ 105.0
$ 21.0
$ 98.0
$ 266.0

Liabilities

49.0
7.0
4.2
16.8
77.0

280.0
140.0
126.0
546.0

$ 805.0

3

Green Lantern Company
Income Statement
For Year Ended December 31, 2012
($ in 000s)

Revenues
Sales Revenue
Expenses
Cost of Goods Sold
Salaries Expense
Depreciation Expense
Interest Expense
Loss on Sale of Land
Income Tax Expense
Net Income

$ 532.0

$ 182.0
$ 63.0
$ 56.0
$ 16.8
$
4.2
$ 98.0 $ (420.0)
$ 112.0

4

fancy distributing company of atlanta sells fans 497104

Aug 29, 2021 | Uncategorized

Fancy Distributing Company of Atlanta sells fans and heaters to retail outlets throughout the Southeast. Joe Fancy, the president of the company, is thinking about changing the firm s credit policy to attract customers away from competitors. The present policy calls for 1/10, net 30 cash discount. The new policy would call for a 5/10, net 45 cash discount. Currently, 35 percent of Fancy customers are taking the discount, and it is anticipated that this number would go up to 65 percent with the new discount policy. It is further anticipated that annual sales would increase from a level of $200,000 to $600,000 as a result of the change in the cash discount policy.

The increased sales would also affect the inventory level. The average inventory carried by Logan is based on a determination of an EOQ. Assume sales of fans and heaters increase from 11,500 to 23,750 units. The ordering cost for each order is $175, and the carrying cost per unit is $2.50 (these values will not change with the discount). The average inventory is based on EOQ/2. Each inventory has an average cost of $12.50.
Cost of goods sold is equal to 60 percent of net sales; general and administrative expenses are 15 percent of net sales; and interest payments of 14 percent will only be necessary for the increase in the accounts receivable and inventory balances. Taxes will be 34 percent of before-tax income.

a. Compute the accounts receivable balance before and after the change in the cash discount policy. Use the net sales (total sales minus cash discounts) to determine the average daily sales.
b. Determine the EOQ before and after the change in the cash discount policy. Translate this into average inventory (in units and dollars) before and after the change in the cash discount policy.
c. Compute the following income statement.

d. Should the new cash discount policy be utilized? Briefly comment.

farman appliance mart ending inventory under a perpetual inventory system 497106

Aug 29, 2021 | Uncategorized

Problem 6-9A

Farman Appliance Mart began operations on May 1. It uses a perpetual inventory system. During May, the company had the following purchases and sales for its Model 25 Sureshot camera.

Purchases
Date Units Unit Cost Sales Units
May 1 210 $153
May 4 120
May 8 240 $173
May 12 150
May 15 180 $188
May 20 90
May 25 120

Calculate the average cost per unit at May 1, 4, 8, 12, 15, 20 & 25. (Round answers to 3 decimal places, e.g. $105.252.)
Average cost for each unit
May 1 $ 153
May 4 $ 153
May 8 $ 167.545
May 12 $ 167.545
May 15 $ 177.772
May 20 $ 177.772
May 25 $ 177.772

Determine the ending inventory under a perpetual inventory system using (1) FIFO, (2) moving-average cost, and (3) LIFO. (Round answers to 0 decimal places, e.g. $2,150.)

The ending inventory under a perpetual inventory system
1) FIFO
2)MOVING-AVERAGE
3)LIFO

the fashion shoe company operates a chain of women s shoe shops around the country 497108

Aug 29, 2021 | Uncategorized

The Fashion Shoe Company operates a chain of women s shoe shops around the country. The shops carry many styles of shoes that are all sold at the same price. Sales personnel in the shops are paid a substantial commission on each pair of shoes sold (in addition to a small basic salary) in order to encourage them to be aggressive in their sales efforts. The following worksheet contains cost and revenue data for Shop 48 and is typical of the company s many outlets:

Per Pair of Shoes

Selling price $ 30.00

Variable expenses:

Invoice cost $ 13.50

Sales commission 4.50

Total variable expenses $ 18.00

Annual Fixed expenses:

Advertising $ 30,000

Rent 20,000

Salaries 100,000

Total fixed expenses $ 150,000

1. Calculate the annual break-even point in dollar sales and in unit sales for Shop 48.

2. Prepare a CVP graph showing cost and revenue data for Shop 48 from zero shoes up to 17,000 pairs of shoes sold each year. Clearly indicate the break-even point on the graph.

3. If 12,000 pairs of shoes are sold in a year, what would be Shop 48’s net operating income or loss?

4. The company is considering paying the store manager of Shop 48 an incentive commission of Shop 48 an incentive commission of 75 cents per pair of shoes (in addition to the salesperson’s commission). If this change is made, what will be the new break-even point in dollar sales and in unit sales?

5. Refer to the original data. As an alternative to (4) above, the company is considering paying the store manager 50 cents commission on each pair of shoes sold in excess of the break-even point. If this change is made, what will be the shop’s net operating income or loss if 15,000 pairs of shoes are sold?

6. Refer to the original data. The company is considering eliminating sales commissions entirely in its shops and increasing fixed salaries by $31,500 annually. If this change is made, what will be the new break-even point in dollar sales and in unit sales for Shop 48? Would you recommend that the change be made? Explain.

fed tax quiz 497110

Aug 29, 2021 | Uncategorized

1. You re probably of the opinion that the distinction between separately stated and non-separately stated income is one of the most confusing concepts that you ve encountered this week. For Congress to come up with something this confusing, you know it must have had a good reason (or at least we’d like to think so!). Think about the concept for a moment. What is the broad tax policy behind separating these two categories of income? What is Congress trying to achieve? What problems does it prevent? What problems does it cause?
2. In enacting Subchapter S of the Code, Congress decided to give a certain group of corporations a break from the burden of double taxation. Given this fact, there MUST be limitations on the corporations that can select S corporation status! Provide an example of one such limitation, including the text of the Code section that provides the limitation

fed tax quiz and short answers 497111

Aug 29, 2021 | Uncategorized

(TCOs 1 and 8) Sarah and Emily form Red Corporation with the following investments: Sarah transfers computers worth $200,000 (basis of $80,000), and Emily transfers real estate worth $180,000 (basis of $40,000) and services (worth $20,000) rendered in organizing the corporation. Each is issued 600 shares in Red Corporation. With respect to the transfers, (Points : 5)
Sarah has no recognized gain; Emily recognizes income/gain of $160,000.
Neither Sarah nor Emily recognizes gain or income.
Red Corporation has a basis of $60,000 in the real estate.
Emily has a basis of $60,000 in the shares of Red Corporation.
None of the above

Question 2. 2. (TCOs 1 and 8) Hunter and Warren form Tan Corporation. Hunter transfers equipment (basis of $210,000 and fair market value of $180,000), and Warren transfers land (basis of $15,000 and fair market value of $150,000) and $30,000 of cash. Each receives 50% of Tan’s stock. As a result of these transfers, (Points : 5)
Hunter has a recognized loss of $30,000; Warren has a recognized gain of $135,000.
Neither Hunter nor Warren has any recognized gain or loss.
Hunter has no recognized loss; Warren has a recognized gain of $30,000.
Tan Corporation has a basis in the land of $45,000.
None of the above

Question 3. 3. (TCOs 1, 8, and 9) Eagle Corporation owns stock in Hawk Corporation and has taxable income of $160,000 for the year before considering the dividends received deduction. Hawk Corporation pays Eagle a dividend of $200,000, which was considered in calculating the $160,000. What amount of dividends received deduction may Eagle claim if it owns 15% of Hawk’s stock? (Points : 5)
$0
$112,000
$140,000
$160,000
None of the above

Question 4. 4. (TCOs 1 and 8) Emerald Corporation, a calendar year C corporation, was formed and began operations on July 1, 2010. The following expenses were incurred during the first tax year (July 1 through December 31, 2010) of operations:
Expenses of temporary directors and of organizational meetings $9,000
Fee paid to the state of incorporation $1,000
Accounting services incident to organization $2,500
Legal services for drafting the corporate charter and bylaws $3,500
Expenses incident to the printing and sale of stock certificates $4,000

Assuming a 248 election, what is the Emerald’s deduction for organizational expenditures for 2010? (Points : 5)
$0
$533
$5,367
$5,500
None of the above

Question 5. 5. (TCOs 1 and 9) Beige Corporation (a calendar year taxpayer) has taxable income of $150,000, and its financial records reflect the following for the year.
Federal income taxes paid $75,000
Net operating loss carry forward deducted currently $35,000
Gain recognized this year on an installment sale from a prior year $22,000
Depreciation deducted on tax return (ADS depreciation would have been $5,000) $20,000
Interest income on Iowa state bonds $4,000

What is Beige Corporation’s current E & P? (Points : 5)
$68,000
$77,000
$103,000
$107,000
None of the above

Question 6. 6. (TCOs 1 and 9) Stacey and Andrew each own one half of the stock in Parakeet Corporation, a calendar year taxpayer. Cash distributions from Parakeet are $350,000 to Stacey on April 1 and $150,000 to Andrew on May 1. If Parakeet’s current E & P is $60,000, how much is allocated to Andrew’s distribution? (Points : 5)
$5,000
$10,000
$18,000
$30,000
None of the above

Question 7. 7. (TCOs 1 and 10) Which, if any, of the following can be eligible shareholders of an S corporation? (Points : 5)
A resident alien
Partnership
A foreign corporation
A nonqualifying trust
None of the above

Question 8. 8. (TCOs 1 and 10) Samantha owned 1,000 shares in Evita, Inc. an S corporation, that uses the calendar year. On October 11, 2010, Samantha sells all of her Evita stock. Her basis at the beginning of 2010 was $60,000. Her share of the corporate income for 2010 was $22,000, and she receives a distribution of $37,000 between January 1 and October 11, 2010. What is her basis at the time of the sale? (Points : 5)
$45,000
$60,000
$75,000
$82,000

Question 9. 9. (TCOs 1 and 10) On January 1, 2010, Kinney, Inc. an electing S corporation, has $4,000 of AEP and a balance of $10,000 in AAA. Kinney has two shareholders, Erin and Maine, each of whom owns 500 shares of Kinney’s stock. Kinney’s 2010 taxable income is $5,000. Kinney distributes $6,000 to each shareholder on February 1, 2010, and distributes another $3,000 to each shareholder on September 1. How is Erin taxed on this distribution? (Points : 5)
$500 dividend income
$1,000 dividend income
$1,500 dividend income
$3,000 dividend income
None of the above

Question 10. 10. (TCOs 1 and 10) Lott Corporation in Macon, Georgia, converts to S corporation status in 2010. Lott used the LIFO inventory method in 2009 and had a LIFO inventory of $420,000 (FIFO value of $550,000). How much tax must be added to the 2009 corporate tax liability, assuming that Lott is subject to a 35% tax rate? (Points : 5)
$0
$11,375
$45,500
$130,000
None of the above

(TCOs 1 and 8) Sarah and Emily form Red Corporation with the following investments: Sarah transfers computers worth $200,000 (basis of $80,000), and Emily transfers real estate worth $180,000 (basis of $40,000) and services (worth $20,000) rendered in organizing the corporation. Each is issued 600 shares in Red Corporation. With respect to the transfers, (Points : 5)
Sarah has no recognized gain; Emily recognizes income/gain of $160,000.
Neither Sarah nor Emily recognizes gain or income.
Red Corporation has a basis of $60,000 in the real estate.
Emily has a basis of $60,000 in the shares of Red Corporation.
None of the above

Question 2. 2. (TCOs 1 and 8) Hunter and Warren form Tan Corporation. Hunter transfers equipment (basis of $210,000 and fair market value of $180,000), and Warren transfers land (basis of $15,000 and fair market value of $150,000) and $30,000 of cash. Each receives 50% of Tan’s stock. As a result of these transfers, (Points : 5)
Hunter has a recognized loss of $30,000; Warren has a recognized gain of $135,000.
Neither Hunter nor Warren has any recognized gain or loss.
Hunter has no recognized loss; Warren has a recognized gain of $30,000.
Tan Corporation has a basis in the land of $45,000.
None of the above

Question 3. 3. (TCOs 1, 8, and 9) Eagle Corporation owns stock in Hawk Corporation and has taxable income of $160,000 for the year before considering the dividends received deduction. Hawk Corporation pays Eagle a dividend of $200,000, which was considered in calculating the $160,000. What amount of dividends received deduction may Eagle claim if it owns 15% of Hawk’s stock? (Points : 5)
$0
$112,000
$140,000
$160,000
None of the above

Question 4. 4. (TCOs 1 and 8) Emerald Corporation, a calendar year C corporation, was formed and began operations on July 1, 2010. The following expenses were incurred during the first tax year (July 1 through December 31, 2010) of operations:
Expenses of temporary directors and of organizational meetings $9,000
Fee paid to the state of incorporation $1,000
Accounting services incident to organization $2,500
Legal services for drafting the corporate charter and bylaws $3,500
Expenses incident to the printing and sale of stock certificates $4,000

Assuming a 248 election, what is the Emerald’s deduction for organizational expenditures for 2010? (Points : 5)
$0
$533
$5,367
$5,500
None of the above

Question 5. 5. (TCOs 1 and 9) Beige Corporation (a calendar year taxpayer) has taxable income of $150,000, and its financial records reflect the following for the year.
Federal income taxes paid $75,000
Net operating loss carry forward deducted currently $35,000
Gain recognized this year on an installment sale from a prior year $22,000
Depreciation deducted on tax return (ADS depreciation would have been $5,000) $20,000
Interest income on Iowa state bonds $4,000

What is Beige Corporation’s current E & P? (Points : 5)
$68,000
$77,000
$103,000
$107,000
None of the above

Question 6. 6. (TCOs 1 and 9) Stacey and Andrew each own one half of the stock in Parakeet Corporation, a calendar year taxpayer. Cash distributions from Parakeet are $350,000 to Stacey on April 1 and $150,000 to Andrew on May 1. If Parakeet’s current E & P is $60,000, how much is allocated to Andrew’s distribution? (Points : 5)
$5,000
$10,000
$18,000
$30,000
None of the above

Question 7. 7. (TCOs 1 and 10) Which, if any, of the following can be eligible shareholders of an S corporation? (Points : 5)
A resident alien
Partnership
A foreign corporation
A nonqualifying trust
None of the above

Question 8. 8. (TCOs 1 and 10) Samantha owned 1,000 shares in Evita, Inc. an S corporation, that uses the calendar year. On October 11, 2010, Samantha sells all of her Evita stock. Her basis at the beginning of 2010 was $60,000. Her share of the corporate income for 2010 was $22,000, and she receives a distribution of $37,000 between January 1 and October 11, 2010. What is her basis at the time of the sale? (Points : 5)
$45,000
$60,000
$75,000
$82,000

Question 9. 9. (TCOs 1 and 10) On January 1, 2010, Kinney, Inc. an electing S corporation, has $4,000 of AEP and a balance of $10,000 in AAA. Kinney has two shareholders, Erin and Maine, each of whom owns 500 shares of Kinney’s stock. Kinney’s 2010 taxable income is $5,000. Kinney distributes $6,000 to each shareholder on February 1, 2010, and distributes another $3,000 to each shareholder on September 1. How is Erin taxed on this distribution? (Points : 5)
$500 dividend income
$1,000 dividend income
$1,500 dividend income
$3,000 dividend income
None of the above

Question 10. 10. (TCOs 1 and 10) Lott Corporation in Macon, Georgia, converts to S corporation status in 2010. Lott used the LIFO inventory method in 2009 and had a LIFO inventory of $420,000 (FIFO value of $550,000). How much tax must be added to the 2009 corporate tax liability, assuming that Lott is subject to a 35% tax rate? (Points : 5)
$0
$11,375
$45,500
$130,000
None of the above

1. You re probably of the opinion that the distinction between separately stated and non-separately stated income is one of the most confusing concepts that you ve encountered this week. For Congress to come up with something this confusing, you know it must have had a good reason (or at least we’d like to think so!). Think about the concept for a moment. What is the broad tax policy behind separating these two categories of income? What is Congress trying to achieve? What problems does it prevent? What problems does it cause?

2. In enacting Subchapter S of the Code, Congress decided to give a certain group of corporations a break from the burden of double taxation. Given this fact, there MUST be limitations on the corporations that can select S corporation status! Provide an example of one such limitation, including the text of the Code section that provides the limitation

federal accounting 497112

Aug 29, 2021 | Uncategorized

part 1

David, a CPA for a large accounting firm, works 10- to 12-hour days. As a requirement for his position, he must attend social events to recruit new clients. In addition to his job with the accounting firm, he also has private clients in his unincorporated professional practice. David purchased exercise equipment for $3,000. He works out on the equipment to maintain his stamina and good health that enable him to carry such a heavy workload. What tax issues should David consider? Please cite IRC code at least once.

part 2 I need a question or observation to say ask or tell to a fellow student who posted the answer below to the same question. It only needs to be 2 or 3 sentences long.

Betty said:

David should consider the substantiation of the expenses that he incurs when he must attend social events for his employer.01 Section 162(a) allows a deduction for all ordinary and necessary expenses paid or incurred during the taxable year in carrying on any trade or business, including certain expenses for meals and entertainment.If you are an employee and have ordinary and necessary business-related expenses for travel away from home, local transportation, entertainment, and gifts, you may be able to deduct these expenses. Generally, you must file Form 2106 or Form 2106-EZ to claim these expenses.

IRC Section 274(d) and Treas. Regs. Section 1.274-5 also provide for full disallowance of meals, entertainment and lodging expenses unless the taxpayer can substantiate the business purpose of the expenditure. The following details must be documented for each lodging and other expenditures in excess of $75:1) the amount of expense 2) the time and place of the meal, entertainment, etc. 3) the business purpose of the expenditure and 4) the business relationships of those in attendance. In regards to his own business he needs to keep separate records from his regular job. He may consider taking the in home office deduction on Form8829.

To be tax deductible, an office in the home, unless it is in a separate structure, must be used as either the principle place of business or as a place of business used to meet customers, clients, or patients in the normal course of business. In all cases, the office in the home must be used exclusively for business and on a regular basis for these purposes. An employee can only qualify if the business use is for the convenience of the employer. Section 280A.

In regards to the $3,000 treadmill David cannot take it as a medical expense unless he gets a doctor s note indicating that he needs the treadmill for a medical reason such as obesity or a heart problem. He would record it on Schedule A subjectto a 10% ceiling of AGI (2013).

part 3

Wayne and Maria file a joint tax return on which they itemize their deductions and report AGI of $50,000. During the year, they incurred $1,500 of medical expenses when Maria broke her leg. Furthermore, their dentist informed them that their daughter, Alicia, needs $3,000 of orthodontic work to correct her overbite. Wayne also needs a new pair of eyeglasses that will cost $300. What tax issues should Wayne and Maria consider?

federal tax questions 497113

Aug 29, 2021 | Uncategorized

1.. Distinguish between realized gains and losses and recognized gains and losses.

9. Bob Smith, a professional basketball player, raises Black Angus cattle under circumstances that would indicate that the activity is a hobby. His adjusted gross income for the year is $80,000, and he has $1,000 of other miscellaneous itemized deductions, all of which are subject to the two-percent floor. During the taxable year, the feed for the cattle cost $3,000. The income from the sale of cattle was $2,800.

(a) Under the hobby loss rule, to what extent is the expense of $3,000 deductible?

(b) Under the two-percent-of-adjusted-gross-income limitation, how much is the overall deductible amount of his itemized deductions?

fenton company applied fifo 497114

Aug 29, 2021 | Uncategorized

few mcq 497115

Aug 29, 2021 | Uncategorized

5. The owner of BobCats R Us paid his personal MasterCard bill using a company check. The correct entry to record the transaction is:

6. The business provided services to a cash customer. To record this:

7. The entry to record Tom’s payment of a home telephone bill is:

8. Which of the statements of the rules of debit and credit is true

9. Which of the following entries would be used to record the billing of fees earned

17. Dennis, owner of Dennis’ Golf Center, withdrew $900 in cash from the business. Record the transaction by

19. A credit to an asset account was posted to the Capital account. This error would cause

20. The owner invested personal equipment in the business. To record this transaction

fi504 microsoft and oracle comparative analysis latest 2011 data 497116

Aug 29, 2021 | Uncategorized

Financial Statement Analysis Project — A Comparative Analysis of Oracle Corporation and Microsoft Corporation

Here is the link for the financial statements for Oracle Corporation for the fiscal year ending 2011. First, select 2011 using the drop-down arrow labeled for Year on the right-hand side of the page, and then select Annual Reports using the drop-down arrow labeled Filing Type on the left-hand side of the page.

You should select the 10k dated 6/28/2011 and choose to download in PDF, Word, or Excel format.

http://www.oracle.com/us/corporate/investor-relations/sec/index.html

Here is the link for the financial statements for Microsoft Corporation for the fiscal year ending 2011. You should select the 10k dated 7/28/2011 and choose to download in Word or Excel
format.

http://www.microsoft.com/investor/SEC/default.aspx?year=2011&filing=annual

Required Ratios for Final Project Submission

1)
Earnings per Share

2)
Current Ratio

3)
Gross Profit Rate

4)
Profit Margin Ratio

5)
Inventory Turnover Ratio

6)
Days in Inventory

7)
Receivables Turnover Ratio

8)
Average Collection Period

9)
Asset Turnover Ratio
10) Return on Assets Ratio

11) Debt to Total Assets Ratio

12) Times Interest Earned Ratio

13) Payout ratio

14) Return on Common Stockholders Equity Ratio

15) Free Cash Flow

16) Current Cash Debt Coverage Ratio

17) Cash Debt Coverage Ratio

18)
Price/Earnings Ratio [For the
purpose of this ratio, for Oracle, use the market price per share on May 30, 2011
and for Microsoft, use the market price per share on June 30, 2011]

fianacial analysis 497117

Aug 29, 2021 | Uncategorized

Problem 17-1A Ratios, common-size statements, and trend percents L.O. P1, P2, P3

[The following information applies to the questions displayed below.]

references

value:
1.00 points

Problem 17-1A Part 1

eBook Links (3)references

value:
1.00 points

Problem 17-1A Part 2

eBook Links (3)references

value:
1.00 points

Problem 17-1A Part 3

eBook Links (3)references

Problem 17-4A Calculation of financial statement ratios L.O. P3

fiber technology inc manufactures glass fibers used in the communications industry t 497119

Aug 29, 2021 | Uncategorized

Exercise 3

Economic Order Quantity

For each of the following independent cases, use the equation method to compute the economic order quantity.

Case A Case B Case C

Annual requirement (in units) 13,230 1,681 560

Cost per order $250 $40 $10

Annual holding cost per unit 6 20 7

Exercise 4

Lead Time and Safety Stock

Andrew and Fulton, Inc. uses 780 tons of a chemical bonding agent each year. Monthly demand fluctuates between 50 and 80 tons. The lead time for each order is one month, and the economic order quantity is 130 tons.

1. Determine the safety stock appropriate for the chemical bonding agent.

2. At what order point, in terms of tons remaining in inventory, should Andrew and Fulton, Inc. order the bonding agent?

Exercise 5

Economic Order Quantity Equation Approach; JIT Purchasing

Fiber Technology, Inc. manufactures glass fibers used in the communications industry. The company s materials and parts manager is currently revising the inventory policy for XL-20, one of the chemicals used in the production process. The chemical is purchased in 10 pound canisters for $95 each. The firm uses 4,800 canisters per year. The controller estimates that it costs $150 to place and receive a typical order of XL-20. The annual cost of storing XL-20 is $4 per canister.

1. Write the formula for the total annual cost of ordering and storing XL-20.

2. Use the EOQ formula to determine the optimal order quantity.

3. What is the total annual cost of ordering and storing XL-20 at the economic order quantity?

4. How many orders will be placed per year?

5. Fiber Technology s controller Jay Turnbull, recently attended a seminar on JIT purchasing. Afterward he analyzed the cost of storing XL-20 including the cost of wasted space and inefficiency. He was shocked when he concluded that the real annual holding cost was $19.20 per canister. Turnbull then met with Doug Kaplan, Fiber Technology s purchasing manager. Together they contacted Reno Industries, the supplier of XL-20, about a JIT purchasing arrangement. After some discussion and negotiation, Kaplan concluded that the cost of placing an order for XL-20 could be reduced to just $20. Using these new cost estimates, Turnbull computed the new EOQ for XL-20.

a. Use the equation approach to compute the new EOQ.

b. How many orders will be placed per year?

fin 14 quiz question 1 1 which cost is a period cost points 5 497121

Aug 29, 2021 | Uncategorized

Question 1.1. Which cost is a period cost? (Points : 5)

Depreciation of factory equipment

Transportation-in for raw material

Patent amortization for the company’s product

Depreciation of office equipment

Question 2. 2. (TCO 2) Which product would use job-order costing? (Points : 5)

Ink pens

Custom boot maker

Soda pop

Horse saddles

Question 3. 3. (TCO 3) In a process costing system, which would be TRUE? (Points : 5)

There is no need to use time tickets to assign costs to processes.

There is no need to track materials to processes.

A process costing system is more expensive to maintain because it has more work-in-process accounts.

All of the above

Question 4. 4. (TCO 8) A company keeps 60 days of materials inventory on hand to avoid shutdowns due to materials shortages. Carrying costs average $5,000 per day. A competitor keeps 30 days of inventory on hand, and the competitor’s carrying costs average $2,000 per day. The non-value-added costs for the company are (Points : 5)

$300,000.

$150,000.

$60,000.

$0.

Question 5. 5. (TCO 8) Which is an example of a non-value-added manufacturing activity? (Points : 5)

Assembly

Scheduling

Finishing

All of the above are value-added activities.

Question 6. 6. (TCO 1) The break-even point is (Points : 5)

the volume of activity where all fixed costs are recovered.

where fixed costs equal total variable costs.

where total revenues equal total costs.

where total costs equal total contribution margin.

Question 7. 7. (TCO 1) Lewis Production Company had the following projected information for 2010.

Selling price per unit $150

Variable cost per unit $90

Total fixed costs $300,000

Which is the break-even point in units? (Points : 5)

2,000 units

5,000 units

3,333 units

60,000 units

Question 8. 8. (TCO 7) Which cost category would most likely use the number of employees or new hires as its activity driver? (Points : 5)

Maintenance

Purchasing

Personnel

Accounting

Question 9. 9. (TCO 7) Yo Department Store incurred $8,000 of indirect advertising costs for its operations. The following data have been collected for 2013 for its three departments.

Shoes Cosmetics Crafts

Sales$120,000$100,000$100,000

Direct advertising costs $9,000$7,000 $4,000

Newspaper ad space60%20% 20%

How much of the indirect advertising costs will be allocated to the Crafts Department if newspaper ad space is the activity driver? (Points : 5)

$8,000

$1,600

$800

$6,400

Question 10. 10. (TCO 5) When budgets are used for control, (Points : 5)

budgeted amounts from different years are compared.

actual amounts from different years are compared.

budgeted amounts are compared to actual amounts.

None of the above

Question 11. 11. (TCO 5) Canceco Company produces and sells pillows. It expects to sell 10,000 pillows in the year 2014 and had 1,000 pillows in finished goods inventory at the end of 2013. Canceco would like to complete operations in the year 2014 with at least 1,250 completed pillows in inventory. There is no ending work-in-process inventory. The pillows sell for $5 each.

How many pillows would be produced in the year 2014? (Points : 5)

10,000 pillows

11,000 pillows

11,250 pillows

10,250 pillows

Question 12. 12. (TCO 4) Which is the primary difference between variable and absorption costing? (Points : 5)

Inclusion of fixed selling expenses in product costs

Inclusion of variable factory overhead in period costs

Inclusion of fixed selling expenses in period costs

Inclusion of fixed factory overhead in product costs

Question 13. 13. (TCO6) Which factor would cause an UNFAVORABLE material quantity variance? (Points : 5)

Using poorly maintained machinery

Using higher quality materials

Using more highly skilled workers

Receiving discounts for purchasing larger-than-normal quantities

Question 14. 14. (TCO 6) Which equation measures the direct labor rate variance? (Points : 5)

(SR * AH) – (SR * SH).

(AR * SH) – (SR * AH).

(AR * AH) – (SR * AH).

None of the above

fin 335 test 1 497122

Aug 29, 2021 | Uncategorized

1. Which one of the following is a capital structure decision?

a. Should a new machine be purchased this year?

b. Should the credit terms offered to customers be revised?

c. Should debt or equity financing be used to purchase a building?

d. Should the level of inventory be increased?

2. Which one of the following functions is generally under the control of the corporate treasurer?

a. cost accounting

b. tax management

c. financial planning

d. financial accounting

3. Which one of the following best describes the liability a general partner has for the partnership debts?

a. none

b. liability limited to amount invested in the firm

c. liability limited based on percentage ownership

d. unlimited

4. Which one of the following provides you with the greatest control over a firm s daily operations?

a. limited partner

b. major stockholder in a corporation

c. minor stockholder in a joint stock company

d. sole proprietor

5. A limited partner:

a. has no personal responsibility for the debts incurred by the partnership.

b. is guaranteed a return of his or her entire investment in the partnership if the partnership terminates.

c. can only control the daily operations for an individual segment of the partnership.

d. has minimal control, if any, over the daily operations of the partnership.

6. The Sarbanes-Oxley Act in 2002 is designed to protect the public against:

a. a firm s net operating losses if those losses extend beyond a 2-year period.

b. declines in the market value of a firm s outstanding shares of stock.

c. financial malpractice and accounting fraud.

d. a firm s issuing additional shares of stock if the issue will reduce the market value of the current

outstanding shares.

7. Who has the ultimate control over a corporation?

a.SHAREHOLDERS

b. chief executive officer

c. chairman of the board

d. board of directors

8. Which one of the following is a primary market transaction?

a. Theo, the president of ABC, sells some of his shares in ABC on the NYSE

b. ABC offers newly issued shares to the general public

c. Tom instructs his broker to sell all of his shares in ABC, Inc.

d. Mary gifts shares of ABC stock to her son

Use these financial statements to answer questions 9 through 13.

Balance Sheet

2007 2008 2007 2008

Cash $ 1,700 $ 1,600 Accounts payable $13,800 $ 12,900

Accounts receivable 14,300 17,400 Long-term debt 47,500 48,600

Inventory 22,500 23,700 Common stock 17,000 22,000

Net fixed assets 82,900 81,600 Retained earnings 43,100 40,800

Total assets $121,400 $124,300 Total liabilities and equity $121,400 $124,300

Income Statement

Net Sales $163,700

Costs 108,200

Depreciation 14,100

EBIT 41,400

Interest 3,800

Taxable income 37,600

Taxes 13,200

Net Income $ 24,400

9. What is the amount of the operating cash flow?

a. $24,400 b. $30,500 c. $38,500 d. $42,300

10 What is the cash flow to stockholders for 2008?

a. $5,000 b. $19,400 c. $21,700 d. $29,400

11. What is the net new borrowing for 2008?

a. -$2,700 b. $200 c. $1,100 d. $4,900

12. What is the change in net working capital for 2008?

a. $5,100 b. $6,300 c. $24,700 d. $25,200

13. What is the cash flow to creditors for 2008?

a. -$2,700 b. -$1,100 c. $1,100 d. $2,700

14. A firm currently has an average tax rate of 20 percent and a marginal tax rate of 25 percent based on its

current taxable income of $36,600. What will the firm s average tax rate be if it increases its taxable income by $1,100?

a. 20 percent b. 20.05 percent c. 20.09 percent d. 20.15 percent

15. Redding Industrial Supply had common stock of $6,800 and retained earnings of $4,925 at the beginning of the year. At the end of the year, the common stock balance is $7,000 and the retained earnings account balance is $5,498. The net income for the year is $938. What is the retention ratio?

a. 17.59 percent b. 38.91 percent c. 61.09 percent d. 82.41 percent

16. Which one of the following formulas is correct?

a. Profit margin = EBIT / Sales

b. Capital intensity ratio = 1 / Return on assets

c. ROA = ROE / Equity multiplier

d. Quick ratio = Cash / Current liabilities

17. If a firm uses cash to purchase inventory, its quick ratio will increase.

a.

True

b.

False

18. Use the following tax table to answer this question.

Pools, Inc., has taxable income of $77,000 for the year. Which one of the following statements is correct concerning Pools’ tax situation?

a.

Pools’ average tax rate is 18.74 percent.

b.

Pools’ average tax rate is 34.00 percent.

c.

Pools’ marginal tax rate is 15.00 percent.

d.

Pools’ marginal tax rate is 18.74 percent.

19. You currently have $7,200 in your investment account. You can earn an average rate of return of 11.7 percent per year. How long will you have to wait until your account is worth $50,000?

a. 9.47 years b. 11.28 years c. 14.67 years d. 17.51 years

20. Your savings account is currently worth $1,200. The account pays 4.5 percent interest compounded annually. How much will your account be worth 6 years from now?

a. $1,524.00 b. $1,562.71 c. $1,611.18 d. $1,627.19

21. You purchased a new1972 Plymouth Barracuda Ragtop with a 426-Hemi36 years ago at a cost of $3,900. You took care of this car, realizing it s divine nature. Today, you sold that car for $1,750,000 in order to afford tuition and meals and buy a little gas for your moped. What annual rate of return did you earn on this vehicle?

a.1.42 percent b.18.48 percent c. 8.48 percent d. 8.38 percent

22. The Corner Bank is offering you a credit card with an APR of 12.9 percent. The bank compounds the interest rate on a monthly basis. What is the effective annual rate?

a. 13.69 percent b. 13.87 percent c. 14.03 percent d. 14.14 percent

23. A preferred stock is currently valued at $62.80 a share and pays an annual dividend of $7. The par value is

$100 per share. What is the rate of return on this security?

a. 8.97 percent b. 10.58 percent c. 11.15 percent d. 11.33 percent

24. Over the past 30 years your parents saved money each month for their retirement. They retired this week and expect to live another 28 years. Their investment account is currently valued at $487,300 and is expected to earn 7 percent annually in the future. How much money can they withdraw annually if they wish to spend all of their money during their lifetime?

a. $5,158.75 b. $6,038.59 c. $39,269.75 d. $40,149.59

25. Suzie has $16,000 in her investment account today. She saves $500 a quarter and earns 8 percent interest, compounded quarterly. How much money will she have in her account three years from now?

a. $16,821.87 b. $18,509.53 c. $22,300.16 d. $26,997.91

26. Tom invested $150 at the beginning of each month for the last 14 years and earned 6 percent interest, compounded monthly. Julia invested $300 at the end of each month for the past 7 years and earned 6 percent interest, compounded monthly. Today, Tom has ______ than Julia.

a. $8,164.15 less

b. $8,320.26 less

c. $8,164.15 more

d. $8,320.26 more

27. A series of equal cash flows that occur at the beginning of each time period for a limited number of time periods is called a(n):
a. ordinary annuity.
b. beginning annuity.
c. annuity due.
d. perpetuity.
e. perpetuity due.

28. In Canada and the United Kingdom, a perpetuity is also called a(n):
a. consul.
b. infinite bond.
c. infinity flow.
d. dowry.
e. forever bond.

29. Which type of loan is comparable to the present value of a future lump sum
a. effective annual rate
b. amortized
c. interest-only
d. annual percentage
e. pure discount

30. Which one of the following is a correct statement, all else held constant
a. The present value is inversely related to the future value.
b. The future value is inversely related to the period of time.
c. The period of time is directly related to the interest rate.
d. The present value is inversely related to the interest rate.
e. The interest rate is inversely related to the future value.

31. Which one of the following is a breakdown of the ROE into its three component parts
a. equity analysis
b. efficiency breakout
c. Du Pont identity
d. sustainable growth
e. profitability ratios

32. Suppose given NI= $132,186, Sales = $2,678,461, TA = $784,596 and Debt/Asset = 0.48062. Calc ROE.

a. 32.44

b. 44.32

c. nope

d. not this one either.

33. (5 Points) In 2006 a 50-cent piece (0.50 coin) issued in 1904 sold for $1,300. What is the rate of return on this investment? Show your work.

fin 382 final project 497124

Aug 29, 2021 | Uncategorized

I. Choice of Companies and an Overview of Their Operations and Industry briefly outline what the company does and its industry. (5 pts)

II. Discussion of Current Issues Impacting Financial Statements include any relevant current event information, news that has affected financial statements, or world events that could impact the businesses. Research will have to be done on this. Some good sources of information include the most recent annual reports for each company (these can be found online for all publicly traded companies; utilize the most current year end annual reports available), Yahoo! Finance, the MSN Money website (this will provide current information on your company and some ratio information), and various business magazines. You can find the websites suggested under the Webliography tab in the course. A minimum of one business article needs to be utilized that is under one year written. You must cite the source of the article. This should only be one paragraph for your company, not the competitor. (5 pts)

III. Relevant Ratios and Discussion list what ratios you think are relevant to your companies and industry. Go to the Excel spreadsheet in Doc Sharing, review the ratios listed under the ratio tab, and pick what you think may be relevant. In two paragraphs (no more), briefly discuss six ratios you think may be important, and at least one ratio must be included from each ratio category. The ratios will be automatically calculated on the spreadsheet (please see section IV regarding this). DO NOT manually calculate these ratios..they will be done on the ss (10 pts)

IV. Excel Spreadsheet FinSAS.xlsx Manually input the financial data for your company under the Input tab on the spreadsheet. The ss can be found in doc sharing. Download it and save it to your computer and back it up. You should insert numbers highlighted only in blue. These numbers should be found in the company’s most recent year end annual reports (utilize the most year end numbers; the spreadsheet has it starting at 2008, but change the year to 2011 and go five years historically from there to 2007), which can be obtained online under your company choice. Complete a separate spreadsheet for each company. Write here that you completed the input for the spreadsheet for both companies and that the spreadsheet works. To check this, once you input the data in the input tab only, check the other tabs (ratio, vertical analysis) to ensure that you see the automated calculations. ONLY INPUT INTO THE INPUT TABS..the spreadsheet will then calculate everything else. Download and save the document on your computer and back it up. (20 pts)

V. Bibliography – you should start this and have a few sources at this point including the article and annual report you are utilizing.

fin 534 497125

Aug 29, 2021 | Uncategorized

In this assignment, assume you are a savvy financial analyst researching companies in which to invest.

Select a U.S. publically-traded company you think might be a good investment and perform a financial analysis.

Your analysis should include the following:

Company Overview.Conduct research and describe the company, its operations, locations, markets, and lines of business. Collect financial statements for the past three (3) years, fiscal or calendar (please insert these in the appendix). These financial statements must include at least
the income statement and the balance sheet.

Evaluate the company s vulnerability to current financial threatssuch as a recession, higher interest rates, and global competition.

Financial Performance. Based on the financial trends of the company, predict how these trends will impact financial performance in future periods. Explain your rationale for this prediction.

Stock Price Analysis. Given the performance of the stock in the periods presented on the company s financial statements, discuss how the stock is likely to perform in the future, what type of investor would be drawn to this stock, and make a recommendation to management to improve stock performance.

Submit your analysis in the form of a 6-8 page paper in which you:

Provide a detailed overview of a U.S. publicly traded company. This should be one to two (1-2) pages.

Evaluate the company s vulnerability to current financial threats such as a recession, higher inerest rtes, and global competition

Based on the financial trnds of the company, predict how these trends will impact financial
performance in future periods. Explain your rationale for this prediction.

Cite at least five (5) quality
references.

excel assignment 497051

Aug 29, 2021 | Uncategorized

Tutorial 8, Case Problem 4, pgs 482 485
You will submit the following documents from the Alia s Senior Living workbook: Documentation sheet, Invoice and Product Pricing and Shipping sheet.

In step 4o, the best solution for the shipping cost is an IF Function with a nested vlookup (the IF checks if the subtotal is >=200 and thevlookup references the shipping cost table).

Below is a link to the book…

https://www.dropbox.com/s/2eyf12hgbv3jmx5/New%20Perspectives%20on%20Microsoft%20Excel%202010%20Comprehensive.pdf

Here is a dropbox link to the data files…

https://www.dropbox.com/sh/24hij3u0lff4o0h/HA9YTlylIs

2. Complete Tutorial 10, Case Problem 4 (through Step 4 only) on pages 611 612. There are no data files for this assignment – you will complete this worksheet from scratch. The following instructions will help you complete this assignment.

3. Save the workbook as: xx NewGen Robotics (replace xx with your first and last initials).

4. When creating the income statement for Step 2 in the textbook, use the categories (row labels) listed in Figure 10-5 on page 558, but not the data. Use the data (numbers) shown in step 2 on page 611. Create formulas for: Total Revenue, Total Material Cost, Total Manufacturing Cost, Total Variable Expenses, Total Fixed Expenses, Total Revenue, Total Expenses and Net Income.

5. Create a formula in the Income Statement for Units Produced that assumes that the company produces enough cleaning robots to have a 1 percent surplus over Units Sold.

6. Format the income statement professionally and name the sheet tab Income Statement. Create a copy of the Income Statement sheet and name the copied sheet tab Goal Seek.

7. In the Goal Seek sheet you created above, use the Goal Seek feature to complete Step 3 in the text.

8. To complete Step 4 in the text, create the one-variable data table on the Income Statement sheet. Name the data table Cost-Volume-Profit Analysis. Do not complete the CVP chart.

9. Make sure each sheet in the workbook will print on one page. Save and print the finished workbook. You will submit the xx NewGen Robotics workbook to the Week 10

This assignment is not in your textbook. Complete the steps listed below:

Problem: Ellen Felton is events coordinator at Kirk Harbor Inn, which is located on Cape Cod. She schedules weddings, conferences, engagements, and so forth at this water-front Victorian inn. She constantly is sending quotes to potential clients and asks you to assist her in linking the workbook she developed to the letter she sends to potential clients.

Complete the following:

1. Open the NewQuote_2010 workbook located in the Appendix C misc folder and then save it as xx Harbor Quote (replace xx with your first and last initials).

2. In the Documentation sheet, enter the date and your name, and then switch to the Quote worksheet.

3. Open the Event document located in the Appendix C misc folder and then save the document as xx Event Planner.

4. Return to the Harbor Quote workbook, and then copy the range C2:G19 in the Quote worksheet.

5. Return to the Event Planner document, and then paste the selected range as a link below the sentence Here are the details.

6. Ellen s client requests two changes: move the wedding to the Salon room and change the number of guests to 160. Make these changes in the Harbor Quote workbook, and then verify that the Event Planner document is updated.

7. Create a pie chart of expenses in the Harbor Quote document: select the ranges F13:G14 and F16:G18 (do not
select the Subtotal or Grand Total) and insert a 3-D Pie chart.

8. Add a Chart Title above the chart that reads: Wedding Expenses.

9. Copy the chart and embed it in the Event Planner Word document. Place it directly after the Excel worksheet (before the sentence that reads: We look forward to working with you in helping to make this special event a memorable one for you. )

exchange rate shifts that cause the sing to be weaker versus the brazilian real a m 497053

Aug 29, 2021 | Uncategorized

exercies 497054

Aug 29, 2021 | Uncategorized

ACC 206 Week Two Assignment

Please complete the following exercises below in either Excel or a word document (but must be single document). You must show your work where appropriate (leaving the calculations within Excel cells is acceptable). Save the document, and submit it in theappropriate week using the Assignment Submission button.

1. Analysis of stockholders’ equity

Star Corporation issued both common and preferred stock during 20X6. The stockholders’ equity sections of the company’s balance sheets at the end of 20X6 and 20X5 follow:

a. Compute the number of preferred shares that were issued during 20X6.

b. Calculate the average issue price of the common stock sold in 20X6.

c. By what amount did the company’s paid-in capital increase during 20X6?

d. Did Star’s total legal capital increase or decrease during 20X6? By what amount?

2. Bond computations: Straight-line amortization

Southlake Corporation issued $900,000 of 8% bonds on March 1, 20X1. The bonds pay interest on March 1 and September 1 and mature in 10 years. Assume the independent cases that follow.

Case A The bonds are issued at 100.

Case B The bonds are issued at 96.

Case C The bonds are issued at 105.

Southlake uses the straight-line method of amortization.

Instructions:

3. Definitions of manufacturing concepts
Interstate Manufacturing produces brass fasteners and incurred the following costs for the year just ended:

Materials and supplies used

Brass $75,000

Repair parts 16,000

Machine lubricants 9,000

Wages and salaries Machine operators 128,000

Production supervisors 64,000

Maintenance personnel 41,000

Other factory overhead Variable 35,000

Fixed 46,000

Sales commissions 20,000

Compute:

a. Total direct materials consumed

b. Total direct labor

c. Total prime cost

d. Total conversion cost

4. Scheduleof cost of goods manufactured, income statement

The following information was taken from the ledger of Jefferson Industries, Inc.:

Prepare the following:

a. A schedule of cost of goods manufactured for the year ended December 31.

b. An income statement for the year ended December 31.

5. Manufacturing statements and cost behavior

Tampa Foundry began operations during the current year, manufacturing various products for industrial use. One such product is light-gauge aluminum, which the company sells for $36 per roll. Cost information for the year just ended follows.

Production and sales totaled 20,000 rolls and 17,000 rolls, respectively There is no work in process. Tampa carries its finished goods inventory at the average unit cost of production.

Instructions:

a. Determine the cost of the finished goods inventory of light-gauge aluminum.

b. Prepare an income statement for the current year ended December 31

c. On the basis of the information presented:

1. Does it appear that the company pays commissions to its sales staff? Explain.

2. What is the likely effect on the $4.50 unit cost of direct materials if next year’s production increases? Why?

exercise 18 22 phelps glass inc has reported the following financial data 497059

Aug 29, 2021 | Uncategorized

Exercise 18- 22 Phelps Glass Inc. has reported the following financial data:

net revenue of $10 million.

Variable cost of $5 million,

controllable fixed costs of $2 million,

non-controllable fixed costs $1 million

and untraceable costs of $500,000.

The accounting manager has supplied you with data and asked you to come up with the

controllable margin,

total contribution,

and CPC

and operating income.

exercise 19 7 cost flows in a job order cost system l o p1 p2 p3 p4 the following in 497061

Aug 29, 2021 | Uncategorized

Exercise 19-7 Cost flows in a job order cost system L.O. P1, P2, P3, P4 The following information is available for Lock-Down Company, which produces special-order security products and uses a job order cost accounting system. April 30 May 31 Inventories Raw materials $ 32,000 $ 43,000 Goods in process 9,800 19,200 Finished goods 66,000 33,800 Activities and information for May Raw materials purchases (paid with cash) 189,000 Factory payroll (paid with cash) 500,000 Factory overhead Indirect materials 8,000 Indirect labor 67,000 Other overhead costs 115,000 Sales (received in cash) 1,400,000 Predetermined overhead rate based on direct labor cost 55 % Compute the following amounts for the month of May. (Input all amounts as positive values. Omit the “$” sign in your response.)

exercise 497062

Aug 29, 2021 | Uncategorized

Week One Exercise Assignment

Basic Accounting Equations

1. Recognition of normal balances

The following items appeared in the accounting records of Triguero’s, a retail music store that also sponsors concerts. Classify each of the items as an asset, liability; revenue; or expense from the company’s viewpoint. Also indicate the normal account balance of each item.

a. Amounts paid to a mall for rent.

b. Amounts to be paid in 10 days to suppliers.

c. A new fax machine purchased for office use.

d. Land held as an investment.

e. Amounts due from customers.

f. Daily sales of merchandise sold.

g. Promotional costs to publicize a concert.

h. A long-term loan owed to Citizens Bank.

i. The albums, tapes, and CDs held for sale to customers.

2.Basic journal entries

The following transactions pertain to the Jennifer Royall Company:

Prepare journal entries (and explanations) to record the preceding transactions and events.

3. Balance sheet preparation. The following data relate to Preston Company as of December 31, 20XX:

Building $40,000 Accounts receivable $24,000

Cash 21,000 Loan payable 30,000

J. Preston, Capital 65,000 Land 21,000

Accounts payable ?

Prepare a balance sheet as of December 31, 20XX. (See Exhibit 1.1 and 1.4)

4. Basic transaction processing. On November 1 of the current year, Richard Simmons established a sole proprietorship. The following transactions occurred during the month:

1: Simmons invested $32,000 into the business for $32,000 in common stock.

2: Paid $5,000 to acquire a used minivan.

3: Purchased $1,800 of office furniture on account.

4: Performed $2,100 of consulting services on account.

5: Paid $300 of repair expenses.

6: Received $800 from clients who were previously billed in item 4.

7: Paid $500 on account to the supplier of office furniture in item 3.

8: Received a $150 electric bill, to be paid next month.

9: Simmons withdrew $800 from the business.

10: Received $250 in cash from clients for consulting services rendered.

Instructions

a. Arrange the following asset, liability, and owner s equity elements of the account ing equation: Cash, Accounts Receivable, Office Furniture, Van, Accounts Payable, Common Stock/Dividends, and Revenues/Expenses. (See Exhibit 1.5)

b. Record each transaction on a separate line. After all transactions have been recorded, compute the balance in each of the preceding items.

c. Answer the following questions for Simmons.

(1) How much does the company owe to its creditors at month-end? On which financial statement(s) would this information be found?

(2) Did the company have a good month from an accounting viewpoint? Briefly explain.

5. Transaction analysis and statement preparation. The transactions that follow

relate to Burton Enterprises for March 20X1, the company s first month of activity.

Instructions

a. Determine the impact of each of the preceding transactions on Burton s assets,

liabilities, and owner s equity. See exhibit 1.5. Use the following format:

Assets = Liabilities + Owner s Equity

Cash, Accounts Receivable, Land, Equipment Accounts Payable (+)Common Stock (+) Revenues

(-) Dividends (-) Expenses

a. Record each transaction on a separate line. Calculate balances only after the last transaction has been recorded.

b. Prepare an income statement, a statement of retained earnings, and a balance sheet, (See Exhibit 1.2, 1.3 and 1.4)

6.Entry and trial balance preparation. Lee Adkins is a portrait artist. The following schedule represents Lee s combined chart of accounts and trial balance as of May 31.

Account number Account name Debit Credit

The general ledger also revealed account no. 530, Legal and Accounting Expense. The following transactions occurred during June:

a. Record the necessary journal entries for June on page 2 of the company s general journal. (See Exhibit 2.6)

b. Open running balance ledger T accounts by entering account titles, account num bers, and May 31 balances. (See exhibit 2.3 and 2.4)

c. Post the journal entries to the T accounts.

d. Prepare a trial balance as of June 30. (See exhibit 2.9)

7. Journal entry preparation.On January 1 of the current year, Peter Houston invested $80,000 cash into his company MuniServ. The cash was obtained from an owner investment by Peter Houston of $50,000 and a $30,000 bank loan. Shortly thereafter, the company ac quired selected assets of a bankrupt competitor. The acquisition included land ($10,000), a building ($40,000), and vehicles ($10,000). MuniServ paid $45,000 at the time of the transaction and agreed to remit the remaining balance due of $15,000 (an account payable) by February 15.

During January, the company had additional cash outlays for the follow ing items: