A Florida coastal community experiences a population increase during the winter months, with seasonal residents arriving from the Northern States and Canada. Staffing at a local post office is often in a state of change due to the relatively low volume of customers in the summer months and the relatively high volume in winter months. The service rate of a postal clerk is 0.75 customers per minute. The post office counter has a maximum of three workstations. The target maximum time a customer waits in the system is 5 minutes. For a particular Monday morning, the anticipated arrival rate is 1.3 customers per minute. Assume two out of three workstations are open.

A new population growth study suggests that over the next two years, the arrival rate at the postal office in the winter months can be expected to grow to 2.1 customers per minute. How many stations should be open to ensure that the maximum time a customer waits in the system is still 5 minutes or less?

1. “In perfect competition, firm’s demand curve is:” *

Perfectly Elastic (horizontal)

Perfectly Inelastic (vertical)

Unit Elastic.

Inelastic.

2. The profit-maximizing level of output is determined graphically by: *

The intersection point between MC&AVC.

The intersection point between MC&ATC.

The intersection point between MC&MR.

The intersection point between MC&AFC.

3.In perfect competition, the profit or loss is determined through: *

(P-ATC)*Q.

(P-AVC)*Q.

(P-Q)*ATC.

(ATC-Q)*P.

4. For a perfectly competitive firm, the supply curve is the MC curve above: *

Minimum ATC.

Minimum AVC.

Minimum AFC.

MC=MR.

5.“In perfect competition, a firm’s marginal revenue equal to its:” *

Price.

Total revenue.

Average revenue.

Supply curve.

Because each industry typically has a different method for recognizing income, revenue recognition is one of the most difficult tasks for accountants, as it involves a number of ethical dilemmas related to income reporting. To provide an industry-wide approach, Accounting Standards Update No. 2014-09 and other related updates were implemented to clarify revenue recognition rules. The American Institute of Certified Public Accountants (AICPA) announced that these updates would replace U.S. GAAP’s current industry-specific revenue recognition practices with a principle-based approach, potentially affecting both day-to-day business accounting and the execution of business contracts with customers.^{1 (Links to an external site.)}What are the requirements of the AICPA and the International Federation of Accountants (IFAC) for professional accountants in regards to new accounting rules and methods of accounting for different transactions, including revenue recognition.

ANSWER THE FOLLOWING QUESTIONS 1a - i......

1.) If a monopolist is producing at a level of output where marginal revenue is greater than marginal cost, the monopolist will:

a) raise the price of its product. b) decrease output. c) increase output. d) shutdown the business.

1.a). A monopolist maximizes profit at a point where:

a) the price elasticity of demand is inelastic. b) the price elasticity of demand is elastic. c) the price elasticity of demand is unit elastic. d) the marginal revenue is negative.

1b.) In the range where a monopolist’s demand curve is inelastic:

a) marginal revenue is zero. b) marginal revenue is negative. c) total revenue is rising. d) average revenue is rising.

1c.) The deadweight loss of monopoly is due to the fact that:

a) monopolists do not maximize profits. b) monopolists produce at the point where marginal cost intersects the demand curve. c) monopolists restrict output in order to raise price. d) monopolists do not produce at the minimum point of the marginal cost curve.

1d.). Which of the following is an essential condition for a firm to be a natural monopoly? a) The control of a key input b) A downward sloping long-run average cost curve c) The government granting the firm a monopoly d) Firms having different cost functions

1e.). When a monopolist engages in perfect price discrimination:

a) there is a higher deadweight loss compared to a single-price monopoly. b) there is a deadweight loss because the firm charges a price below marginal cost. c) there is a deadweight loss equal to the lost consumer surplus. d) there is no deadweight loss as the monopolist successfully captures the entire consumer surplus.

1f.). Which of the following is not a necessary condition for price discrimination? 1

a) The firm having some degree of monopoly power b) The monopolist producing where price is equal to marginal cost c) The ability to roughly approximate each buyer’s maximum willingness to pay for each unit of a product d) The ability to prevent arbitrage among different segments of customers

1g.). Under which of the following situations will a monopolist, practicing third-degree price discrimination, be unable to discriminate prices among its different market segments?

a) When the price elasticity of demand in all markets are the same b) When the marginal cost of production remains stable c) When the average cost of production is lower than the marginal cost of production d) When the marginal revenue from the different markets varies

1H. A firm practicing third-degree price discrimination maximizes its profits by:

a) setting the price in each market segment equal to the marginal cost of servicing that market segment. b) charging a higher price to the market segment with the majority of customers and a lower price to the market segment with relatively less number of customers. c) charging a higher price to the customers with a relatively high elasticity of demand and a lower price to those with a relatively low elasticity of demand. d) charging a higher price to the customers with a relatively low price elasticity of demand and a lower price to those with a relatively high price elasticity of demand.

1I.). Which of the following is true of block pricing?

a) The price per unit charged by the monopolist declines as more units of the quantity are purchased by a consumer. b) There is no deadweight loss under this form of price discrimination. c) It decreases the monopolist’s profit by transferring the additional producer surplus on the initial units consumed to the consumers. d) This form of price discrimination allows a monopolist to sell each unit of output for the maximum price a consumer will pay.

Acct 510 - MN CAFR Independent Assignment Page 1

Chapter 18 Lab => Government Accounting - MN Comprehensive Annual

Financial Report (CAFR)

Note: The MN CAFR is available online in the state of MN website (www.finance.state.mn.us).

NOTE: If you are not sure if you are interpreting a question correctly…just note your assumption.

Introduction Section

Transmittal Letter

1. What basis of accounting is this system maintained?

State Principal Officials

1. List the following:

a. Governor –

b. Attorney General –

c. State Auditor –

d. Chief Justice of the MN Supreme Court -

Financial Section

Management Discussion and Analysis (MD&A)

1. List the government wide financial statements.

2. List the three types of government activities broken down in the government wide financial

statements.

3. What type of activity would Metropolitan State University considered?

4. List the state’s top three component units.

5. The state’s funds are separated into three types of funds;

a. List the three fund types.

b. What fund is Metropolitan State University a part?

6. Explain in your own words the difference between Budgetary Basis vs. GAAP?

Basic Financial Statements

1. What % of Total Assets do Cash and Cash Equivalents (unrestricted) represent?

2. Why would the state of MN carry such a high % of cash and cash equivalents?

3. What is the amount of General Obligation Bonds Payable?

Acct 510 - MN CAFR Independent Assignment Page 2

a. Current

b. Noncurrent

c. Total

4. In descending order, list the five largest “General Revenue” sources and the dollar amounts

(exclude “Other Taxes” from your list). Hint: All are found in the tax section.

5. What is the difference between Program Revenues and General Revenues?

6. List the three largest net expenditures for the state; in the following format.

Description Expense Revenue Total Net Expenditure

1st

2nd

3rd

7. Compare Net Assets of Governmental Activities to the Total Fund Balance for Governmental

Funds.

a. What is the total difference?

b. List the largest asset and the largest liability driving this difference. Why do these

differences exist? Be specific (provide examples) in your explanation for the

difference.

c. Explain in your own words why there is a $ revenue difference.

8. Compare the Change in Net Assets of Governmental Activities to the Net Change in Fund

Balances for Governmental Funds.

a. What is the total difference?

b. List and explain the three largest reconciling differences.

9. How does the University of Minnesota compare to the State Colleges and Universities from

a financial perspective?

To assess a cola video ad, a random sample of 38 individuals from a target audience was selected to participate in a copy test. Participants viewed two ads, one of which was the ad being tested. Participants then answered a series of questions about how much they liked the ads. An adindex measure was created and stored in Adindex; the higher the adindex value, the more likeable the ad. Compute descriptive statistics and perform an appropriate test to determine if there is a difference between the two ads. State your hypotheses, your findings and conclusions in a report. (Use the 0.05 level of significance.)

Multi-Screen TV, Inc., is a Cleveland i-based importer and distributor of large screen HDTVs for residential and commercial customers. Revenue and cost relations are as follows:

TR = $1000Q - .1Q2

TC = $43,500 +100Q + 0.4Q2

A. Calculate output, marginal revenue, marginal cost, average cost, price, and profit at the average total cost-minimizing activity level. (Hint - MC passes through the minimum point on the ATC curve)

B. Calculate these values at the profit-maximizing activity level.

C. Compare and discuss your answers to parts A and B.

Compute and Interpret Liquidity, Solvency and Coverage Ratios
Balance sheets and income statements for Lockheed Martin Corporation follow. Refer to these financial statements to answer the requirements.

(a) Compute Lockheed Martin's current ratio and quick ratio for 2005 and 2004. (Round your answers to two decimal places.)
2005 current ratio = Answer

2004 current ratio = Answer

2005 quick ratio = Answer

2004 quick ratio = Answer

(b) Compute total liabilities-to-equity ratios and total debt-to-equity ratios for 2005 and 2004. (Round your answers to two decimal places.)
2005 total liabilities-to-stockholders' equity = Answer

2004 total liabilities-to-stockholders' equity = Answer

2005 total debt-to-equity = Answer

2004 total debt-to-equity = Answer

(c) Compute times interest earned ratio, cash from operations to total debt ratio, and free operating cash flow to total debt ratios. (Round your answers to two decimal places.)
2005 times interest earned = Answer

2004 times interest earned = Answer

2005 cash from operations to total debt = Answer

2004 cash from operations to total debt = Answer

2005 free operating cash flow to total debt = Answer

2004 free operating cash flow to total debt = Answer