1. The theory of monopoly assumes that the monopoly firm

faces a downward-sloping supply curve that is the same as its marginal revenue curve.

faces a downward-sloping demand curve.

produces more than the perfectly competitive firm under identical demand and cost conditions.

produces a product for which there are many close substitutes.

none of the above

2. A single-price monopolist is a monopolist that sells each unit of its output for the same price to all its customers. Assume that a single-price monopolist sets its price for good X at $75 and is selling more than one unit of good X. Which of the following must be true?

The average cost of that unit must be $75.

The marginal cost of that unit must be $75.

The marginal revenue of that unit must be $75.

The marginal revenue of that unit must be less than $75

3. A single-price monopolist is a firm that sell each unit of its output for the same price to all its customers. At the level of output at which a single-price monopolist maximizes profit, price is

equal to marginal cost.

equal to marginal revenue.

greater than marginal cost.

less than marginal cost.

less than marginal revenue.

1. Future costs associated with a restructuring can only be recognized if they:

Select one:

a. will lead to a legal obligation in the future.

b. will lead to a constructive obligation in the future.

2. A construction company has contracted with a major university to build a new sports complex. The contract calls for two sports arenas to be built in the next three years. The company will receive $24,000,000 for the project and their engineers originally estimated a total cost to construct the two arenas of $20,400,000. The two arenas are scheduled for completion in May of 2007. If an actual cost of $9,200,000 is expended in 2004, and the engineers estimate another $12,800,000 is to be expended to complete construction, how much income is to be recognized under the percentage-of-completion method in 2004?

Select one:

a. $1,163,636

b. $836,364

c. $3,600,000

d. $2,000,000

c. will lead to a constructive and legal obligation in the future.

d. will lead to a provision for restructuring cost

Bond Investment Transactions

Journalize the entries to record the following selected bond investment transactions for Starks Products:

For a compound transaction, if an amount box does not require an entry, leave it blank.

a. Purchased for cash $108,000 of Iceline, Inc. 9% bonds at 100 plus accrued interest of $1,620, paying interest semiannually.

b. Received first semiannual interest payment.

c. Sold $72,000 of the bonds at 103 plus accrued interest of $820.

Stock Investment Transactions

On September 12, 3,700 shares of Aspen Company are acquired at a price of $32.00 per share plus a $185 brokerage commission. On October 15, a $0.80-per-share dividend was received on the Aspen Company stock. On November 10, 1,480.00 shares of the Aspen Company stock were sold for $27 per share less a $74 brokerage commission.

When required, round final answers to the nearest dollar. For a compound transaction, if an amount box does not require an entry, leave it blank.

Prepare the journal entries for the original purchase, the dividend, and the sale under the cost method.

Changes in Education Attainment: According to the U.S. Census Bureau, the distribution of Highest Education Attainment in U.S. adults aged 25 - 34 in the year 2005 is given in the table below.

Census: Highest Education Attainment - 2005

In a survey of 4000 adults aged 25 - 34 in the year 2013, the counts for these levels of educational attainment are given in the table below.

Survey (n = 4000): Highest Education Attainment - 2013

The Test: Test whether or not the distribution of education attainment has changed from 2005 to 2013. Conduct this test at the 0.01 significance level.(a) What is the null hypothesis for this test?

H₀: p₁ = p₂ = p₃ = p₄ = p₅ = 1/5 H₀: The probabilities are not all equal to 1/5.     H₀: p₁ = 0.14, p₂ = 0.48, p₃ = 0.08, p₄ = 0.22, and p₅ = 0.08. H₀: The distribution in 2013 is different from that in 2005.

(b) The table below is used to calculate the test statistic. Complete the missing cells.
Round your answers to the same number of decimal places as other entries for that column.

(c) What is the value for the degrees of freedom? 7
(d) What is the critical value of

χ²

? Use the answer found in the

χ²

-table or round to 3 decimal places.
t_α = 8

(e) What is the conclusion regarding the null hypothesis?

reject H₀ fail to reject H₀    

(f) Choose the appropriate concluding statement.

We have proven that the distribution of 2013 education attainment levels is the same as the distribution in 2005. The data suggests that the distribution of 2013 education attainment levels is different from the distribution in 2005.      There is not enough data to suggest that the distribution of 2013 education attainment levels is different from the distribution in 2005.

.   

Above is the financial and market data for two companies A and B. Evaluate company A and B using multiple approach.analyze and provide observations based below two parameters.

a) P/E ratio

b) Price/Sales ratio

Calculate enterprise value(EV) of both companies and analyze on following parameters.

c) EV/EBIDTA

d)EV/Sales

Please provide Excel formula also for better understanding.

Pioneer, Inc., a publicly held company with a 21% marginal tax rate, paid its CEO an annual salary of $2.5 million.  None of the amount was a bonus.

Ignoring payroll taxes, calculate the after-tax cost of this payment.

1. In December 2005, the BLS estimated there were 7.4 million unemployed, 142.8 million employed (including 2.8 million involuntary part-time workers), 451,000 discouraged workers and 4.8 million people (including discouraged workers) who were marginally attached to the labor force.

a. Calculate the headline (U-3) unemployment rate for December 2005.

b. Calculate the unemployment rate for December 2005 if it had included among the unemployed all officially discouraged workers.

c. Calculate the unemployment rate if it had included all those who were marginally attached to the labor force?

d. Calculate the unemployment rate if it had included all those who were marginally attached to the labor force plus involuntary part-time workers.

Forecast Sales Volume and Sales Budget

For 20Y8, Raphael Frame Company prepared the sales budget that follows.

At the end of December 20Y8, the following unit sales data were reported for the year:

For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the 8" × 10" frame is expected to increase to $27 and the unit selling price for the 12" × 16" frame is expected to increase to $29, effective January 1, 20Y9.

Required:

1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent.

2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.

3.  Prepare a sales budget for the year ending December 31, 20Y9.

Forecast Sales Volume and Sales Budget

For 20Y8, Raphael Frame Company prepared the sales budget that follows.

At the end of December 20Y8, the following unit sales data were reported for the year:

For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the 8" × 10" frame is expected to increase to $27 and the unit selling price for the 12" × 16" frame is expected to increase to $29, effective January 1, 20Y9.

Required:

1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent.

2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.

3.  Prepare a sales budget for the year ending December 31, 20Y9.

Forecast Sales Volume and Sales Budget

For 20Y8, Raphael Frame Company prepared the sales budget that follows.

At the end of December 20Y8, the following unit sales data were reported for the year:

For the year ending December 31, 20Y9, unit sales are expected to follow the patterns established during the year ending December 31, 20Y8. The unit selling price for the 8" × 10" frame is expected to increase to $27 and the unit selling price for the 12" × 16" frame is expected to increase to $29, effective January 1, 20Y9.

Required:

1. Compute the increase or decrease of actual unit sales for the year ended December 31, 20Y8, over budget. Use the minus sign to indicate a decrease in amount and percent. Round percents to the nearest whole percent.

2. Assuming that the increase or decrease in actual sales to budget indicated in part (1) is to continue in 20Y9, compute the unit sales volume to be used for preparing the sales budget for the year ending December 31, 20Y9. Use the minus sign to indicate a decrease in percent. Round budgeted units to the nearest whole unit.

Feedback

To calculate the difference subtract budget from actual sales.

Learning Objective 4.

3.  Prepare a sales budget for the year ending December 31, 20Y9.