Carmel Company has a frequent buyer program for its customers, where the customers can attain an “elite” level based on the number of orders and the total revenue of the orders. There are two elite levels: Platinum and Titanium. The benefits of elite membership include discounts and access to special customer service representatives who can resolve problems. The company has one full-time customer representative per 200 Titanium customers and one full-time customer representative per 2,000 Platinum customers. Customer representatives receive salaries plus bonuses of 1 percent of customer gross margin. Carmel spends 80 percent of its promotion costs on Titanium customers to encourage their loyalty.

Required:

a. Calculate the totals of the items below for both titanium and platinum customers, as well as the excess of gross margin over customer costs for each category.

b. Which customers are more profitable? platinum or titanium?

Q#1.   Apple, Inc. (AAPL) announced in 2013 a 7-for-1 stock split. Similarly, many other publicly traded companies have announced stocks splits. Most stock holders as well as some analysts and traders believe that a stock split would definitely benefit current shareholders and raise the firm’s overall market value. You read in chapter 14 that, in theory, a 7:1 split would increase the number of outstanding shares seven fold and cut down the post-split stock price to 1/7 of pre-split price, thus leaving Apple's shareholders' wealth unchanged. This theory asserts that stock prices should increase only when a firm generates more earnings (cash flows) which will raise earnings per share. But stock splits do not generate any additional earnings (cash flows) for the firm. So you are puzzled why some shareholders, traders, and analysts adamantly believe that stock splits benefit shareholders. Please explain whether or not stock splits in general would benefit a firm's current shareholders with at least a 5-year investment (holding) horizon. You would want to use your understanding of chapter 14 stock split material, especially the signaling aspects of stock splits, optimal stock price range theory, and past empirical evidence in your explanation. Limit your answers to no more than ten (10) sentences.

The Red Hen company is launching its new food for sale in supermarkets throughout Michigan. The sales department is convinced that its spicy chicken soup will be a great success. The marketing department is considering an intensive advertising campaign. The advertising campaign will cost $2,000,000 and if successful produce $9,600,000 in added revenue. If the campaign is less successful (25% chance), the added revenue is estimated at only $3,600,000. If no advertising is used, the revenue is estimated at $7,000,000 with probability 0.7 if customers are receptive and $3,000,000 with probability 0.3 if they are not.

Question 1. Write an equation to calculate the expected value for each decision as a function of the probability that the major advertising campaign will be effective (p)?

How have Fed Ex and UPS differentiated themselves since the time of their 2005 case? Which company has a more profitable strategic vision? How is this shown in the price of the stock?

On January 1, 2000, Vick Company issued $500,000 of 8%, 15 year bonds, at a price of 94. The bonds pay

semiannual interest on June 30 and December 31 of each year. Vick records the interest payments every six months by amortizing the discount on bonds payable using the straight-line method. On Januray 1, 2005 Vick Company retires 30% of these bonds by buying them on the open market at a price of 97.

How does the market rate compare to the stated rate (market rate higher or lower)?

Journalize the issuance on 1/1/05

Journalize the first interest payment on June 30.

Journalize the retirement on January 1, 2005

New Dawn Window Washing Inc. was started on May 1. Here is a summary of the May transactions.

1. Stockholders invested $20,000 cash in the company in exchange for common stock.

2. Purchased equipment for $9,000 cash.

3. Paid $700 cash for May office rent.

4. Paid $300 cash for supplies.

5. Purchased $750 of advertising in the Beacon News on account.

6. Received $7,200 in cash from customers for service.

7. Paid a $500 cash dividend.

8. Paid part-time employee salaries $1,700.

9. Paid utility bills $140.

10. Provided service on account to customers $1,000.

11. Collected cash of $650 for services billed in transaction (10).

(a) Prepare a tabular analysis of the transactions using these column headings: Cash, Accounts Receivable, Supplies, Equipment, Accounts Payable, Common Stock, and Retained Earnings (with separate columns for Revenues, Expenses, and Dividends). Revenue is called Service Revenue. Include margin explanations for any changes in Retained Earnings. (b) From an analysis of the Retained Earnings columns, compute the net income or net loss for May.

1)

A company sells soccer goals to customers over the Internet. History shows that 2% of the company’s goals will need repair under the warranty program. For the year, the company has sold 4,100 goals and 48 have been repaired. If the estimated cost to repair a goal is $140, what would be the Warranty Liability at the end of the year?

2)

On January 23, a company purchases inventory for $100. On February 12, the inventory is sold for $150 on account. Which of the following is recorded on February 12?

3)

On January 23, a company purchases inventory for $100. On February 12, the inventory is sold for $150 on account. Which of the following is recorded on February 12?

Baird Company began operations on January 1, 2018, by issuing common stock for $32,000 cash. During 2018, Baird received $56,400 cash from revenue and incurred costs that required $38,400 of cash payments.

Prepare a GAAP-based income statement and balance sheet for Baird Company for 2018, under each of the following independent scenarios:

Baird is a manufacturing company. The $38,400 was paid to purchase the following items:

(1) Paid $3,400 cash to purchase materials that were used to make products during the year.

(2) Paid $2,340 cash for wages of factory workers who made products during the year.

(3) Paid $17,960 cash for salaries of sales and administrative employees.

(4) Paid $14,700 cash to purchase manufacturing equipment. The equipment was used solely to make products. It had a three-year life and a $2,400 salvage value. The company uses straightline depreciation.

(5) During 2014, Lang started and completed 2,400 units of product. The revenue was earned when Lang sold 2,000 units of product to its customers.

*** Need help with income statement and balance sheet**** Please provide step by step

As future Chief Financial Officer of a publicly listed company, what should be my PRIMARY and SECONDARY financial objective? Is it to maximize the wealth of our owners or corporate social responsibility?