a.
Compute the following for 2010:
1.
working capital
2.
current ratio
3.
acid-test ratio (conservative)
4.
operating cash flow/current maturities of long-term debt and current notes payable
5.
operating cash flow/total debt
6.
operating cash flow per share

A) AA's profit per week is $60,000. B) AA could explore cost-cutting measures to offset the increased fixed costs. C) AA charges the students a price of $200 (P = $200) and charges other customers a price of $400 (P = $400). D) Thus, the revenue gives a weekly profit of -$2,000. E) The total consumer surplus is $88,000. F) Type A consumers had a consumer surplus of $180,000, Type B consumers had a consumer surplus of $40,000.

The demand function is Q = 1,000 - 2P, and the cost function is $75,000 + $100Q.  Substituting this price into the demand function, we find Q = 400. AA's profit per week can be calculated by subtracting the total cost from the total revenue: Profit = (400 × $300) - ($75,000 + $100 × 400) = $60,000.

B) With the increase in fixed costs to $82,000, AA may need to adjust its pricing strategy. It could increase the ticket prices to cover the higher costs, which may affect demand. Alternatively, AA could explore cost-cutting measures to offset the increased fixed costs.

C) AA decides to charge the students a discounted price to attract their business. Given the demand functions Qa = 600 - P and Qb = 400 - P, AA charges the students a price of $200 (P = $200) and charges other customers a price of $400 (P = $400).

D) With price discrimination, AA's weekly profits would be calculated by subtracting the total cost from the total revenue. Revenue from Type A passengers would be ($400 × 200) = $80,000, and revenue from Type B passengers would be ($200 × 200) = $40,000. Thus, total revenue would be $120,000. Subtracting the total cost ($82,000 + $100 × (200 + 200)) = $122,000 from the revenue gives a weekly profit of -$2,000.

E) The consumer surplus for Type A passengers is $72,000, and for Type B passengers, it is $16,000. The total consumer surplus is $88,000.

F) Before price discrimination, Type A consumers had a consumer surplus of $180,000, while Type B consumers had a consumer surplus of $40,000. The total consumer surplus declined with price discrimination because although the total quantity of tickets sold remained the same, the prices charged to each group were different.

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Based on the provided information, the classification of the following items as either current assets or non-current assets is as follows:

Cash and balances at central banks - Current asset

Balances at banks and financial institutions - Current asset

Deposits at banks and financial institutions - Current asset

All three items listed are considered current assets because they are expected to be converted into cash or used up within a relatively short period, usually within one year or the operating cycle of the business, whichever is longer.

Current assets are assets that are either cash or assets that are expected to be converted into cash, sold, or consumed within a short period of time. They are typically used in the day-to-day operations of the business.

It's important to note that the classification of assets can vary based on specific circumstances and accounting standards followed by the company. Therefore, it is advisable to refer to the company's financial statements or consult with a financial professional for precise asset classification.

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a) The replicating portfolio today for a 6-month European put option with a strike price of $42 can be computed as follows. The value of a 6-month European put option with a strike price of $42 is $2.754.

The 6-month European put option with a strike price of $42 can be valued using a two-period binomial tree. The value of a replicating portfolio today will ensure that the portfolio will replicate the option at expiry. The two-period binomial tree is shown below: Step 1: Calculate Up and Down Factors for Stock Price. At the end of the first period, the stock price can either go up to $44 or go down to $36. We can calculate the up and down factors for stock price using the formula given below:u = eσ√dt = e0.1√(6/12) = 1.0489d = e-σ√dt = e-0.1√(6/12) = 0.9524Thus, we can calculate the stock price at the end of the first period as:S(1,1) = $40 × 1.0489 = $41.955S(1,2) = $40 × 0.9524 = $38.096Step 2: Calculate Up and Down Factors for Option ValueWe can calculate the up and down factors for the option value using the formula given below:If the stock price goes up, the option value at the end of the first period will be:Max[0, X - S(1,1)] = Max[0, $42 - $41.955] = $0.045If the stock price goes down, the option value at the end of the first period will be:Max[0, X - S(1,2)] = Max[0, $42 - $38.096] = $3.904Thus, we can calculate the option value at the end of the first period as:C(1,1) = $0.045C(1,2) = $3.904Step 3: Calculate Up and Down Factors for Portfolio ValueWe can calculate the up and down factors for the portfolio value using the formula given below: Let V be the portfolio value. Then,V(0,0) = 0 = 0 × S(0,0) + f(0,0)V(1,1) = q × V(0,0) + (1 - q) × V(1,2) = 0 + 1.028 × $3.904 = $4.006V(1,2) = q × V(0,0) + (1 - q) × V(2,2) = 1.487 × 0 + 0.513 × $0 = $0V(2,2) = q × V(1,2) + (1 - q) × V(2,1) = 0.231 × $0 + 0.769 × $10.355 = $7.976V(2,1) = q × V(1,1) + (1 - q) × V(2,0) = 0.771 × $0 + 0.229 × $16 = $3.664V(0,0) represents the value of the portfolio at the start of the period. Thus, the replicating portfolio at the start of the period will be:$4.006 = a × $40 + b × $1.028$3.664 = a × $40 + b × $0.771Solving these equations, we get:a = -0.0824b = 1.1038Thus, the replicating portfolio will have a short position of 0.0824 shares of the stock and a long position of 1.1038 bonds of the risk-free security.b) The value of a 6-month European put option with a strike price of $42 can be computed by working back through the binomial tree as shown below:The value of the option today is $2.754. Therefore, the value of a 6-month European put option with a strike price of $42 is $2.754.

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To record the necessary entries for the sale of the equipment in 2015, we need to account for the depreciation expense and the sale transaction. Here are the entries:

Depreciation Expense:

Debit: Depreciation Expense (Income Statement) - € (646,000 / 7 years * 16 months)

Credit: Accumulated Depreciation (Balance Sheet) - € (646,000 / 7 years * 16 months)

Explanation: The equipment was used for 16 months in 2015 (from January 1 to November 30), so we need to record the depreciation expense for that period.

Sale of Equipment:

Debit: Cash (Asset) - € 597,000

Debit: Accumulated Depreciation (Balance Sheet) - (Amount equal to the total accumulated depreciation up to the date of sale)

Debit: Loss on Sale of Equipment (Income Statement) - (Difference between the carrying amount and the sale proceeds)

Credit: Equipment (Asset) - € 646,000

Explanation: The equipment was sold for € 597,000, which is less than its carrying amount. Therefore, a loss on the sale is recorded.

Please note that the specific amount of accumulated depreciation and loss on sale needs to be calculated based on the information provided. Also, ensure that the ledger accounts are updated with the corresponding amounts and dates for these entries.

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The average inventory cost per unit for Lockheed Martin can be calculated using the formula: average inventory cost per unit = (average holding cost per unit per year × value of inventory) / cost of goods sold.

Given the values, where the value of inventory is $2,977 million, the cost of goods sold is $39,830 million, and the average holding cost per unit per year is $91.97, we can substitute these values into the formula.

So, the calculation would be: average inventory cost per unit = (91.97 × 2,977) / 39,830. Simplifying this equation gives us a result of approximately $6.85.

Therefore, the average inventory cost per unit for Lockheed Martin is $6.85, rounded to the nearest $0.01.

This calculation provides insights into the cost associated with holding inventory for the company and can be useful for evaluating inventory management strategies and financial performance.

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The average Inventory cost per unit for Lockheed Martin is $9,060.45.

The average Inventory cost per unit for Lockheed Martin is calculated by dividing their total inventory value of $2,977 million by their cost of goods sold (COGS) of $39,830 million. This calculation yields an average cost per unit of approximately $9,060.45.

Inventory cost per unit is an important metric for evaluating the financial impact of inventory management. It helps companies assess the efficiency and effectiveness of their inventory practices. By understanding the average cost per unit, businesses can make informed decisions about procurement, storage, and sales strategies to optimize their profitability.

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105,000 hours actual and 95,000 hours budgeted.

To determine the appropriate comparison for a flexible budget between budgeted costs and actual costs, we need to consider the given information.

In the question, Swifty Corporation produced 210,000 units in 95,000 direct labor hours. However, the production for the period was estimated at 220,000 units and 110,000 direct labor hours.

A flexible budget compares the budgeted costs with the actual costs. Since the actual direct labor hours used were 110,000 and the estimated direct labor hours for the period were also 110,000, the appropriate comparison for the direct labor hours would be:

c. 105,000 hours and 95,000 hours.

Therefore, the answer is option c. 105,000 hours and 95,000 hours.

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Material price variance: Favorable $19, Unfavorable $19, 520 Favorable, $20 Unfavorable. Table Manufacturing Company is a company that produces only one style of tables.

The given data pertain to producing one table: Planned production per month: 1 unit SO piece of woods (M): 19Estimated M price: $20Actual production quantity purchased from M (OP): 20Actual price (AP): $19We need to find the Material price variance: Firstly, we will calculate the Standard Cost = Standard Quantity (SQ) × Standard Price (SP)Standard Quantity (SQ) = 19Standard Price (SP) = $20Standard Cost = SQ × SP= 19 × $20= $380Actual Cost = Actual Quantity (AQ) × Actual Price (AP)Actual Quantity (AQ) = 20Actual Price (AP) = $19Actual Cost = AQ × AP= 20 × $19= $380The formula for Material price variance is as follows:MPV = (SP - AP) x AQWhere, SP is Standard PriceAP is Actual PriceAQ is Actual QuantityMPV = ($20 - $19) x 20= $1 x 20= $20Here, the Actual Cost is equal to the Standard Cost, hence the Material price variance is zero.

Favorable or unfavorable variance is determined by comparing the actual cost to the standard cost. If the actual cost is less than the standard cost, it is a favorable variance, and if it is greater, it is an unfavorable variance. In this case, the Material price variance is zero, which means there is neither favorable nor unfavorable variance.

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The company should purchase from the outside supplier as the cost of buying from the supplier is $252,000, which is less than the cost of making the component internally, which is $270,000.

Given Information Direct Materials: $4.00Direct Labor: $6.00Variable Manufacturing Overhead: $5.00Fixed Manufacturing Overhead, Direct: $8.00Fixed Manufacturing Overhead, Common but Allocated: $25.00Supplier Price: $21.00Units used per year: 12,000The company Alanco Inc. manufactures a variety of products and currently manufactures all of its component parts. An outside supplier has offered to sell one of those components to Alanco. The following analysis determines whether the outside supplier's offer should be accepted or not. To find out, we must calculate the make or buy cost and then compare it with the supplier's offer price.  Calculation Make Cost per unit: Direct materials + Direct labor + Variable manufacturing overhead + Fixed manufacturing overhead, direct+ Fixed manufacturing overhead, common but allocated= $4 + $6 + $5 + $8 + $25 = $48 Buy Cost per unit: Supplier price = $21 Differential cost per unit: $48 – $21 = $27 Total cost of manufacturing 12,000 units: $27*12,000 = $324,000Total cost of buying 12,000 units: $21*12,000 = $252,000. The above table shows the calculation of make-or-buy analysis. Make Cost per unit is calculated by adding Direct Materials, Direct Labor, Variable Manufacturing Overhead, Fixed Manufacturing Overhead, Direct, and Fixed Manufacturing Overhead, Common but Allocated. Similarly, Buy Cost per unit is given as $21, and the Differential cost per unit is the difference between the Make Cost per unit and Buy Cost per unit. The Total cost of manufacturing 12,000 units can be calculated by multiplying the Differential Cost per unit by the number of units used per year. Similarly, the Total cost of buying 12,000 units can be calculated by multiplying the Supplier Price by the number of units used per year.

Therefore, the Total cost of manufacturing 12,000 units = 27 * 12,000 = $324,000, and the Total cost of buying 12,000 units = 21 * 12,000 = $252,000. Since the cost of buying is less than the cost of making, Alanco should purchase from the outside supplier.

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e. During the COVID-19 pandemic, one brand that successfully launched new products and services through a brand extension is Starbucks.

Starbucks' brand extension during the COVID-19 pandemic. Starbucks adapted to the challenging circumstances by introducing the concept of Starbucks at Home, providing customers with the opportunity to recreate the Starbucks experience in the comfort of their own homes.

They introduced a range of products such as coffee beans, ready-to-drink beverages, and brewing equipment, enabling customers to enjoy their favorite Starbucks beverages without visiting the physical stores. This brand extension not only catered to the changing consumer behavior but also allowed Starbucks to tap into the growing demand for at-home coffee experiences.

By leveraging their brand equity and adapting to the new normal, Starbucks successfully expanded its product line and maintained customer engagement during the pandemic.

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a. the book value of the equipment at the end of the fifth year is $97,550. b. the depreciation expense for the three months until the sale date is $2,000 and the gain on the sale of equipment is $4,040.

a. To calculate the book value of the equipment at the end of the fifth year, we need to determine the accumulated depreciation for the equipment up to that point. Since the equipment has an estimated useful life of 16 years, the depreciation expense per year can be calculated as follows:

Depreciation Expense per Year = (Cost - Residual Value) / Useful Life

Depreciation Expense per Year = ($137,550 - $9,550) / 16

Depreciation Expense per Year = $128,000 / 16

Depreciation Expense per Year = $8,000

To find the accumulated depreciation at the end of the fifth year, we multiply the depreciation expense per year by the number of years:

Accumulated Depreciation at the End of the Fifth Year = Depreciation Expense per Year * Number of Years

Accumulated Depreciation at the End of the Fifth Year = $8,000 * 5

Accumulated Depreciation at the End of the Fifth Year = $40,000

The book value of the equipment at the end of the fifth year can be calculated by subtracting the accumulated depreciation from the cost of the equipment:

Book Value at the End of the Fifth Year = Cost - Accumulated Depreciation

Book Value at the End of the Fifth Year = $137,550 - $40,000

Book Value at the End of the Fifth Year = $97,550

Therefore, the book value of the equipment at the end of the fifth year is $97,550.

b. To journalize the entries for the depreciation and sale of the equipment:

Depreciation Entry:

Date: April 1 (end of the sixth year)

Depreciation Expense: Debit $2,000

Accumulated Depreciation: Credit $2,000

Sale of Equipment Entry:

Date: April 1 (end of the sixth year)

Cash: Debit $90,510

Accumulated Depreciation: Debit $42,000

Equipment: Debit $137,550

Gain on Sale of Equipment: Credit $4,040

(To record the sale of equipment at a gain)

Please note that the amounts used in the journal entries are based on the assumption that the depreciation expense for the three months until the sale date is $2,000 and the gain on the sale of equipment is $4,040. These figures may vary depending on the specific calculations and assumptions made for depreciation and the sale of the equipment.

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Audit evidence collection is an essential aspect of the audit process that aims to help auditors obtain sufficient and appropriate audit evidence to back up audit assertions and judgments. Here is how audit evidence can be collected. The Difference Between Concurrent Audit Techniques and Embedded Audit Modules Concurrent audit techniques are auditing procedures that occur concurrently with transaction processing. five most commonly used concurrent audit techniques include the following:

1. System Control Audit Review File (SCARF)

2. Continuous and Intermittent Simulation (CIS)

3. Integrated Test Facility (ITF)

4. Snapshot

5. Audit Hooks Embedded Audit Modules

Embedded audit modules are parts of application systems that perform continuous audit tests. These modules are integrated into the application system and can be used to audit all transactions that pass through the system.

Audit Evidence Collection Audit evidence can be collected through various means, including observing physical inventory counts, reviewing documentation, making inquiries, testing internal controls, and performing substantive testing. Audit evidence can be classified into external and internal evidence depending on where it originates from.External evidence relates to documents or materials originating outside the client's organization and includes bank statements, confirmations from customers and suppliers, and legal documentation. On the other hand, internal evidence originates within the client's organization and includes the client's accounting records, minutes of meetings, and reports.The Difference Between Concurrent Audit Techniques and Embedded Audit Modules Concurrent audit techniques are auditing procedures that occur concurrently with transaction processing. Concurrent auditing entails running an audit while the process under review is ongoing. This type of audit is used to detect issues in a transaction as it occurs.Embedded audit modules are audit procedures that are embedded in application systems. These procedures can be used to audit all transactions that occur through the system. Embedded audit modules are an integral part of the system, and they perform continuous audit tests.Commonly Used Concurrent Audit Techniques The five most commonly used concurrent audit techniques include the following:

1. System Control Audit Review File (SCARF)

2. Continuous and Intermittent Simulation (CIS)

3. Integrated Test Facility (ITF)

4. Snapshot

5. Audit Hooks Embedded Audit Modules

Embedded audit modules are parts of application systems that perform continuous audit tests. These modules are integrated into the application system and can be used to audit all transactions that pass through the system. An embedded audit module is an example of an IT control that helps ensure data integrity. The objective of the embedded audit module is to provide continuous monitoring of an application system's transactions and operations to ensure the completeness, accuracy, and validity of the data entered into the system. Examples of embedded audit modules include system security, input data validation, and automated reconciliation processes.

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In a demand and supply analysis, the introduction of a 10% subsidy to all manufacturing industries would likely lead to a decrease in price and an increase in quantity equilibrium.

This is because the subsidy effectively lowers the production costs for manufacturers, resulting in an increase in supply and a decrease in price.

The introduction of a 10% subsidy to all manufacturing industries would impact both the supply and demand sides of the market. On the supply side, the subsidy reduces the production costs for manufacturers, effectively shifting the supply curve to the right.

With lower costs, manufacturers are incentivized to increase production and offer their goods at a lower price.

As a result, the equilibrium price in the market would decrease. The decrease in price would lead to an increase in consumer demand as products become more affordable. This increase in demand would be reflected in a shift of the demand curve to the right.

The combined effect of the rightward shift in supply and the rightward shift in demand would result in a new equilibrium point with a lower price and a higher quantity. The decrease in price would benefit consumers by making goods more affordable, while the increase in quantity would allow for a greater availability of products.

Overall, the introduction of the 10% subsidy would create a market environment where both consumers and manufacturers experience favorable outcomes in terms of lower prices and increased production.

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To determine the net income (or net loss) experienced by Pinker Corporation for the year, we need to calculate the total expenses and compare it with the sales revenue. Pinker Corporation experienced a net income of $43,500 for the year.

Pinker began the year with $37,000 cash and a computer costing $17,000. Throughout the year, they earned sales revenue of $115,000 and incurred expenses including salaries of $65,000, rent of $5,000, and utilities of $1,500. At the year-end, Pinker's cash balance was $19,000. To calculate the net income (or net loss), we subtract the total expenses from the sales revenue. The total expenses for Pinker Corporation can be calculated by summing up the salaries, rent, and utilities:

Total expenses = $65,000 (salaries) + $5,000 (rent) + $1,500 (utilities) = $71,500.

To calculate the net income (or net loss), we subtract the total expenses from the sales revenue: Net income (or net loss) = Sales revenue - Total expenses

Net income (or net loss) = $115,000 (sales revenue) - $71,500 (total expenses) = $43,500.

Therefore, Pinker Corporation experienced a net income of $43,500 for the year.

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In a perfectly competitive market, the market supply curve is the summation of the individual supply curves of all producers who offer homogeneous goods to the market. Each producer in this market can sell as much as they want at the current market price and can also choose not to participate in the market if they feel the price is too low.

As a result of the unrestricted entry of new producers, the supply of goods in the market increases as the price rises, and the supply decreases as the price falls. The market supply curve is thus upward-sloping, implying that as the price increases, more and more producers join the market, increasing supply, and vice versa. In a perfectly competitive market, producers are price takers, which means they do not have the power to influence the price of goods in the market. The price is determined by the intersection of the market demand and market supply curves. In conclusion, the market supply curve in a perfectly competitive market is an upward-sloping curve, which is the sum of the individual supply curves of all the producers.

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Global Outreach, an oil & gas company, plans to implement an ERP integrated business system. Victor Chea, the CIO, is responsible for the project's completion and has developed an initial budget and timeline. The project involves activities such as proposal and budget preparation, board approval, hiring and training temporary employees, software modifications, system testing, and end-user training. Crash times and costs are also provided in case acceleration is needed. This information is to be presented at a project kickoff meeting.

Global Outreach's plan to implement an ERP system requires careful project management. Victor Chea, the CIO, has taken the responsibility for overseeing the project's completion and has prepared an initial budget and timeline for the activities involved.

The project begins with the preparation of a proposal and budget, estimated to take 4 weeks with a cost of $12,000. Once the proposal is ready, it will be presented to the Board of Directors (BOD) for approval, which is estimated to take 3 weeks with a cost of $15,000. Following BOD approval, the company can hire and train temporary employees, which is expected to take 8 weeks with a cost of $15,000.

After these initial steps, the project moves into the technical phase. Detailed specifications for the ERP system are estimated to take 6 weeks with a cost of $5,000. Process flow analysis, involving both past and future analysis, is projected to take 30 weeks with a cost of $2,000,000.

Modifying the software according to the specifications will require 36 weeks and a cost of $360,000. Testing and adjustments are estimated to take 10 weeks with a cost of $316,000. Setting up system parameters will take 5 weeks with a cost of $100,000, and legacy data conversion is expected to take 6 weeks with a cost of $60,000.

Once the system is ready, training documentation will be prepared over a period of 4 weeks with a cost of $80,000. Following this, a "test" database will be created in 3 weeks with a cost of $8,000. End-user training is estimated to take 6 weeks with a cost of $24,000. Finally, the company will go live on the new software system.

Crash times and costs are also provided as contingency measures in case acceleration is necessary. These values indicate the reduced time and increased costs associated with completing an activity earlier than the normal schedule.

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A software development company that provides remote programming services to clients in different countries.

The software development company directly exports its service by offering its programming expertise to clients located outside of its home country. The service is delivered remotely, without the need for physical presence or transportation of goods.

A consulting firm and a local construction company forming a joint venture to provide comprehensive infrastructure development solutions.

The consulting firm and the construction company join forces through a joint venture to leverage their respective expertise and resources. By collaborating, they offer a complete range of services to clients, combining consulting and construction capabilities.

A telecommunications company merging with a media production company to create an integrated entertainment and content streaming service.

The telecommunications company and the media production company merge their operations to form a new entity that offers combined services. The merger allows them to provide a seamless experience for customers, integrating telecommunications and media services into a single platform.

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In the context of the preferences in Myers-Briggs personality types, Todd's personality most likely resembles the ENTP type.

The Myers-Briggs Type Indicator (MBTI) categorizes personality types based on four dimensions of preferences, one of which is Extraversion (E) vs. Introversion (I), Sensing (S) vs. Intuition (N), Thinking (T) vs. Feeling (F), and Judging (J) vs. Perceiving (P). ENTP is one of the sixteen personality types identified by MBTI, and it stands for Extraverted, Intuitive, Thinking, and Perceiving. ENTPs are known for their curiosity, adaptability, and innovative thinking.

They enjoy new challenges and can quickly grasp complex ideas, but they may get bored with routine work and have a tendency to procrastinate on mundane tasks. Todd's preference for new projects and skills, impatience with routine work, and reluctance to use new skills at work suggest that he shares some of the characteristics of ENTPs.

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A shift from a tight credit policy to a relaxed policy can have a significant impact on a firm's cash budget. This shift would allow customers to purchase goods or services on credit more easily, which would lead to an increase in sales and revenue.

However, it would also lead to an increase in accounts receivable, which would put pressure on the firm's cash flow. Customers who are granted credit may take longer to pay their bills, which can cause delays in the cash receipts cycle. This delay can cause a mismatch between the inflow of cash from sales and the outflow of cash to suppliers, employees, and other expenses, leading to cash flow problems.

In the short run, a relaxed credit policy may lead to a cash shortfall, which could be addressed by borrowing or cutting expenses. In the long run, the shift could be beneficial if the firm is able to maintain its increased sales and revenue while managing its accounts receivable effectively.

Overall, the shift from a tight credit policy to a relaxed policy requires careful consideration and monitoring of its impact on the firm's cash budget. It is important to keep track of cash flow projections and adjust the credit policy as needed to ensure that the firm remains financially stable.

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This journal entry assumes that the investments in Jupiter Co. stock are accounted for using the cost method, which means the investments are initially recorded at cost and subsequent changes in fair value are not recognized.

The dividends received are recorded as dividend revenue. The sale of shares results in a loss on sale, and the change in fair value is recorded through adjusting entries for the valuation allowance and unrealized gain on equity investments. Purchase of Stock: Date: February 22 Debit: Cash: 138,800.00 Commission Expense: 200.00 Loss on Sale of Investments: 11,300.00 Investments - Jupiter Co. Stock: 159,500.00.

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The journal entries required to be prepared, including year-end entries assuming these are available-for-sale securities are: No. Date Account Titles and Explanation Debit Credit

(1) Feb. 1 Available for sale debt securities (10% bonds of Gibbons Co.) $327,600 Cash $327,600 (Purchase of debt securities on Feb 1)               (2) Apr. 1 Cash $16,380 Interest Revenue $16,380 (Interest received on debt security on Apr 1)                                                                                    (3) Jul. 1 Available for sale debt securities (9% bonds of Sampson, Inc.) $189,600 Cash $189,600 (Purchase of debt securities on Jul 1)                                                                                                                                               (4) Sep. 1 Cash $32,076 Available for sale debt securities (10% bonds of Gibbons Co.) $32,580 Gain on Sale of Available-for-sale Securities $576 (Sale of debt securities on Sep 1)

(6) Dec. 31 Unrealized Loss on Available-for-sale Securities $32,580 Available for sale debt securities (10% bonds of Gibbons Co.)

$32,580 (Adjustment to record unrealized loss on the available-for-sale securities)

Unrealized Loss on Available-for-sale Securities $14,280

Available for sale debt securities (9% bonds of Sampson, Inc.) $14,280 (Adjustment to record unrealized loss on the available-for-sale securities)

(7) Dec. 31 No entry (Interest will be recorded at the time of receipt)

Thus, the above journal entries are required to be prepared.

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The total amount of the above items that Mary received is $35.This includes the unemployment compensation of $35. Since the specific amounts

Based on the given information, Mary received the following items during the current year: Christmas bonus from her employer (amount not specified) Christmas gift from her father (amount not specified) Unemployment compensation: $35 To calculate the total amount of the above items, we need the specific amounts of the Christmas bonus and gift. Since the amounts are not provided, we cannot determine the exact total.

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It is advisable to report the felony DUI incident to the board of accountancy due to its potential impact on professional integrity.

In this situation, it is recommended to report the felony DUI incident to the board of accountancy. As a professional accountant, maintaining a high level of integrity and ethical conduct is crucial. Failing to disclose such a serious offense may raise concerns about your character and ability to uphold professional standards. By reporting the incident, you demonstrate accountability and transparency, which can help mitigate potential repercussions on your professional standing. It is essential to consult with legal counsel and follow the guidelines provided by the board of accountancy regarding reporting requirements and potential consequences for your specific jurisdiction.

Felony DUI charges are serious offenses that can have significant consequences. In many jurisdictions, a felony conviction may impact your professional standing and could potentially lead to disciplinary actions or the suspension of your accounting license. Failing to report such an incident, if required, could result in further penalties or the loss of your license in the future.

To make an informed decision, it is best to consult the regulations and guidelines of the board of accountancy in your jurisdiction or seek advice from an attorney who specializes in professional licensing matters. They will be able to provide you with specific guidance based on your situation and the applicable laws.

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The relevant cost of manufacturing a unit of the part amounts to $36. The unit cost of manufacturing the part in-house is $49.

In this scenario, XYZ, Inc. has the option to either manufacture the part in-house or purchase it from a supplier for $50 per unit. The relevant costs refer to the costs that are specifically associated with manufacturing the part and are relevant to the decision-making process.

The unit cost of manufacturing the part in-house is $49, which includes the cost of materials, direct labor, variable indirect costs, and fixed indirect costs. However, the fixed indirect costs are considered irrelevant in this decision because they would be incurred even if the company decides not to manufacture the part in-house.

To determine the relevant cost of manufacturing a unit of the part, we exclude the fixed indirect costs from the unit cost. Therefore, the relevant cost of manufacturing a unit of the part is $49 - $13 (fixed indirect costs) = $36.

Hence, the relevant cost of manufacturing a unit of the part is $36.

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With 40,000 shares outstanding at a market price of $40 per share, the current equity value is $1,600,000. By adding $1.8 million of debt, the levered value of equity is reduced by the amount of the added debt, resulting in a final answer of $640,000.

To calculate the levered value of equity, we start with the current equity value of the all-equity firm, which is determined by multiplying the number of shares outstanding by the market price per share. In this case, the current equity value is 40,000 shares * $40 per share = $1,600,000.

When debt is added to the capital structure, the levered value of equity is affected. The value of the added debt is $1.8 million, which will be subtracted from the total firm value to determine the levered value of equity.

Therefore, the levered value of equity is $1,600,000 - $1,800,000 = -$200,000. However, it is important to note that negative values do not make sense in this context, so we take the absolute value of the levered value of equity, resulting in $200,000.

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The consolidated net income is the sum of the net income of a parent company and its subsidiaries. When a parent company has a controlling interest in one or more subsidiaries, it is required to prepare consolidated financial statements that reflect the financial performance of the entire group rather than just the parent company.

This process involves combining the financial statements of the parent and subsidiaries and eliminating any intercompany transactions to avoid double-counting. The resulting financial statements show the overall financial health of the entire group, including the consolidated net income for the year.

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Mordor Pharmaceuticals, Inc. may face a monetary penalty, but the CEO will not be held accountable for the criminal allegations surrounding the company's role in the opioid crisis.

Mordor Pharmaceuticals, Inc., may face a monetary penalty for its role in the opioid crisis. However, the CEO will not be held personally liable for the criminal allegations.

Corporate entities can be subject to penalties and fines for illegal activities, and in this case, Mordor Pharmaceuticals, Inc. might be required to pay a substantial amount as a penalty. The specific amount of the penalty would depend on various factors such as the severity of the company's involvement, the harm caused, and the applicable laws and regulations.

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The current ratio is calculated by dividing current assets by current liabilities, resulting in a ratio of 1.16. The working capital is $65 million. The net profit margin is determined by dividing net income by revenue.

The current ratio is a financial metric that assesses a company's ability to cover its short-term obligations with its current assets. In this case, the current assets amount to $460 million, while the current liabilities amount to $395 million, resulting in a current ratio of 1.16. This indicates that the company has $1.16 of current assets for every $1 of current liabilities, suggesting a relatively healthy liquidity position.

Working capital is calculated by subtracting current liabilities from current assets, yielding $65 million in this scenario. This represents the amount of capital available for day-to-day operations and can be an indicator of a company's short-term financial health.

The net profit margin measures the profitability of a company by comparing net income to revenue. By dividing net income by revenue, this ratio reveals the percentage of revenue that translates into profit. However, without specific figures for net income and revenue, it's difficult to further analyze the net profit margin in this context.

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Current ratio = Current assets / Current liabilities

= 460/395 = 1.16

Working capital = current assets - current liabilities = 460 - 395 = 65

Net profit margin = Net income / Revenue

= Net profit / sales * 100

Debt to assets ratio = Total debt / Total assets = 220/ 5,751 = 0.03

b. For each of the ratios calculated in Part a, calculate the percentage change from prior year. Have they improved or declined?

c. Calculate the following ratios for your company using the financial statements for the current year only: - Fixed Asset Turnover - Return on Equity SHOW ALL WORK and include an analysis for each calculation (explained in Part a).

d. Are net cash flows from operating activities considered healthy or unhealthy in the current year? Why?

e. Briefly skim the annual report provided to you (do not read the entire report – simply skim through the material) and state ONE interesting fact that you learned about the company from the annual report.

To calculate the labor cost chargeable to each job, we need to consider the clock hours worked for normal time, evening time, and weekend hours.  

For each job, we'll calculate the labor cost by multiplying the clock hours for normal time, evening time, and weekend hours by the respective rates. Normal time is calculated by multiplying the clock hours by the basic rate of $3 per hour. Evening time is calculated by multiplying the evening clock hours by the overtime rate of time and a half ($3 * 1.5). Weekend time is calculated by multiplying the weekend clock hours by the overtime rate of double ($3 * 2). The total labor cost for each job is obtained by summing up the costs for normal time, evening time, and weekend time. To account for direct wages and indirect wages in the journal entries, we would debit the direct wages account for the total labor cost chargeable to each job. Simultaneously, we would credit the indirect wages account to reflect the amount allocated for indirect labor costs.  

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Answer:

False

Explanation:

False. One of the benefits of free trade is not that it allows countries to accomplish a favorable balance of trade because trade is not a zero-sum game.

This is a true statement. Free trade allows countries to specialize in producing and exporting goods that they have a comparative advantage in, while importing goods that they are less efficient at producing.

This specialization and trade allows countries to make better use of their resources, leading to increased production efficiency, and ultimately a favorable balance of trade. It is important to note that trade is not a zero-sum game, meaning that one country's gain does not necessarily result in another country's loss. Instead, free trade can benefit all participating countries by increasing overall economic growth and reducing the costs of goods for consumers. Additionally, free trade can promote innovation and competition, leading to further economic development and growth.

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(a) The aggregate demand curve represents the total quantity of goods and services demanded by all sectors of the economy at different price levels, holding other factors constant. It slopes downward because of wealth effect, interest effect and international trade effect.

(b) The aggregate supply curve represents the total quantity of goods and services that producers are willing to supply at different price levels, assuming all other factors remain constant. The aggregate supply curve is upward sloping due to Profitability and Production Costs and Resource Utilization and Capacity Constraints.

(a) The aggregate demand curve shows the relationship between the overall level of prices and the total quantity of goods and services demanded in an economy.

The aggregate demand curve is downward sloping due to three main reasons:

Example: Suppose there is a decrease in the price level in an economy. As a result, consumers experience an increase in their purchasing power, which encourages them to spend more. Additionally, lower interest rates incentivize businesses to invest in capital and expand production. Furthermore, with domestic goods becoming relatively cheaper, exports increase, leading to higher demand for domestic goods and services. All these factors contribute to an increase in the aggregate quantity of goods and services demanded, resulting in a downward-sloping aggregate demand curve.

(b) The aggregate supply curve shows the relationship between the overall level of prices and the total quantity of output supplied in an economy.

The aggregate supply curve is upward sloping due to two primary reasons:

Example: Suppose there is an increase in the price level in an economy. As prices rise, firms find it more profitable to increase production, driven by higher profit margins. They may hire additional workers, purchase more raw materials, and utilize their existing resources more intensively to meet the growing demand for goods and services. This results in an upward movement along the aggregate supply curve, indicating an increase

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