2. The following table reports the average prices of gasoline and apples, as well as the consumer price index for three years.

1. What was the percentage increase in the price of gasoline from 1995 to 2015? ______%
2. What was the percentage increase in the price of apples from 2005 to 2015? ______%
3. Did the relative price of gasoline rise or fall from 1995 to 2005? That is what was the percentage increase in gasoline prices higher or lower than the percentage increase in the CPI?

1. Lower

B     Higher

4. Did the relative price of gasoline rise or fall from 2005 to 2015?

1. Fall
2. Rise

5. Did the relative price of apples rise or fall from 1995 to 2005?

A. Fall

B Rise

At June 30, 2017, the end of its most recent fiscal year, Blue Computer Consultants’ post-closing trial balance was as follows:

The company underwent a major expansion in July. New staff was hired and more financing was obtained. Blue conducted the following transactions during July 2017, and adjusts its accounts monthly.

Adjustment data:

The chart of accounts for Blue Computer Consultants contains the following accounts: Cash, Accounts Receivable, Supplies, Prepaid Insurance. Prepaid Rent, Equipment, Accumulated Depreciation—Equipment, Accounts Payable, Notes Payable, Interest Payable, Income Taxes Payable, Salaries and Wages Payable, Unearned Service Revenue, Common Stock, Retained Earnings, Dividends, Income Summary, Service Revenue, Supplies Expense, Depreciation Expense, Insurance Expense, Salaries and Wages Expense, Advertising Expense, Income Tax Expense, Interest Expense, Rent Expense, Supplies Expense, and Utilities Expense.

**********Prepare a post-closing trial balance*******

Here is some of the info I have already thus far its a comprehensive problem so these are from the other steps

M&T Air was founded 10 years ago. The company has manufactured and sold light airplanes over this period, and the company’s products have received high reviews for safety and reliability. The company has a niche market in that it sells primarily to individuals who own and fly their own airplanes. The company has two models: The Birdie, which sells for $53,000, and the Eagle, which sells for $78,000. S&S Air is not publicly traded, but the company needs new funds for investment opportunities. Mark Sexton and Todd Story, the owners of S&S Air, have decided to expand their operations. They instructed their newly hired financial analyst, Chris Guthrie, to enlist an underwriter to help sell $20 million in new 10-year bonds to finance construction. Chris has entered into discussions with Renata Harper, an underwriter from the firm of Crowe & Mallard, about which bond features S&S Air should consider and what coupon rate the issue will likely have.

Although Chris is aware of the bond features, he is uncertain as to the costs and benefits of some features, so he isn't clear on how each feature would affect the coupon rate of the bond issue. You are Renata's assistant, and she has asked you to prepare a memo to Chris describing the effect of each of the following bond features on the coupon rate of the bond. She would also like you to list any advantages or disadvantages of each feature.

a. The security of the bond—that is, whether the bond has collateral.

b. The seniority of the bond.

c. The presence of a sinking fund.

d. A call provision with specified call dates and call prices.

e. A deferred call accompanying the preceding call provision.

f. A floating rate coupon.

S&S Air was founded 10 years ago. The company has manufactured and sold light airplanes over this period, and the company’s products have received high reviews for safety and reliability. The company has a niche market in that it sells primarily to individuals who own and fly their own airplanes. The company has two models: The Birdie, which sells for $53,000, and the Eagle, which sells for $78,000. S&S Air is not publicly traded, but the company needs new funds for investment opportunities. Mark Sexton and Todd Story, the owners of S&S Air, have decided to expand their operations. They instructed their newly hired financial analyst, Chris Guthrie, to enlist an underwriter to help sell $20 million in new 10-year bonds to finance construction. Chris has entered into discussions with Renata Harper, an underwriter from the firm of Crowe & Mallard, about which bond features S&S Air should consider and what coupon rate the issue will likely have. Although Chris is aware of the bond features, he is uncertain as to the costs and benefits of some features, so he isn't clear on how each feature would affect the coupon rate of the bond issue. You are Renata's assistant, and she has asked you to prepare a memo to Chris describing the effect of each of the following bond features on the coupon rate of the bond. She would also like you to list any advantages or disadvantages of each feature.

a. The security of the bond—that is, whether the bond has collateral.

b. The seniority of the bond.

c. The presence of a sinking fund.

d. A call provision with specified call dates and call prices.

e. A deferred call accompanying the preceding call provision.

f. A floating rate coupon.

What are bonds? What is the process for issuing bonds? How are they traded? Why are bonds used instead of just borrowing money from a bank? Why would a company issue bonds instead of stock to raise money?

Construction Toys Corp. is using a​ costs-of-quality approach to evaluate design engineering efforts for a new toy robot. The​ company's senior managers expect the engineering work to reduce​ appraisal, internal​ failure, and external failure activities. The predicted reductions in activities over the​ two-year life of the toy robot follow. Also shown are the cost allocation rates for the activities.

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​(Click on the icon to view the​ information.)Read the requirements

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Requirement 1. Calculate the predicted quality cost savings from the design engineering work.

(PPP in China) The International Comparison Program (ICP) reported a price level index (PLI) for China of 42 in 2005 and 54 in 2011. Recall that, by construction, the PLI for the United States is always 100. 1. Find the percent change in the Yuan-dollar real exchange rate between 2005 and 2011. 2. In 2005 the size of the Chinese economy, at PPP exchange rates, was 43 percent that of the U.S. economy. Ignoring growth in physical output, find the size of the Chinese economy, at 2011 PPP exchange rates, relative to that of the U.S. economy. 3. Suppose instead that all of the observed real appreciation of the yuan was due to the imposition of import tariffs by China. Assume that in the U.S. and China the price level is given by P = Pγ XP1−γ M , where γ = 0.5, PX and PM denote export and import prices, respectively, and that absent tariffs the law of one price holds. Find the size of the import tariff.

Question 6

Consider the following balance sheet of a publicly held company:

Cash $760,000 Long Term Debt $7,633,500
Receivables $1,250,000 Common Stocks $14,176,500
Inventories $2,225,000
Net Equipment $17,575,000

It is estimated that the yield to maturity on bonds are 9%. The company faces a marginal tax rate of 28%. Assume that stock price of this company rises such that it would sell at 1.35 times its book value (amount in the balance sheet) causing its cost of equity to move to 11.5%.  

What would be the weighted average cost of capital for this firm?

Question 7

Consider the following balance sheet of a publicly held company:

Cash $760,000 Long Term Debt $7,633,500
Receivables $1,250,000 Common Stocks $14,176,500
Inventories $2,225,000
Net Equipment $17,575,000

Currently the stocks are selling for a price equal to its book value and bonds are selling at par. It is estimated that the stockholders require a return of 13% while the yield to maturity on bonds are 9%. The company faces a marginal tax rate of 34%. What is the weighted average cost of capital for this firm?

Network Solutions just introduced a​ new, fully automated manufacturing plant that produces 1,500 wireless routers per day with materials costs of $50 per router and no other costs. The average number of days a router is held in inventory before being sold is 54 days. In​ addition, they generally pay their suppliers in 27 ​days, while collecting from their customers after 26 days.

How much would working capital be reduced if they stretched their payments to suppliers from 27 days to 47 ​days?