1. Hickory Furniture Company paid for the following costs during the month of May:

Hickory sold $32,000 of the inventory and has agreed to pay warranty expenses for its customers. These are expected to be $1,600 and occur evenly over the next four months (i.e., starting in June).

What is the amount of Hickory’s cash-basis expenses for the month of May?

Multiple Choice

• $33,600

• $50,000

• $42,400

• $51,600

2. The residual approach to allocate transaction prices to multiple performance obligations in a contract is appropriate when:

Multiple Choice

• None of the goods and services included in the contract are not sold on a stand-alone basis.

• None of the answer choices are correct.

• The stand-alone price of all of the goods or services is known.

• The stand-along price of one or more of the goods or services is highly variable or uncertain.

3. A patient of Dr. Jones presents his Medicare card after his appointment. The total charge for the services was $100; however, Medicare will pay only $60 for this service and the patient is to pay $20. Acceptance of the patient’s Medicare insurance creates a contract:

Multiple Choice

• for payment of $60 and a price concession of $40.

• for $20 and an $80 discount or price concession.

• for payment of $100, regardless of what Medicare will pay.

• for payment of $80 and a $20 discount or price concession.

- An Acquirer is considering the acquisition of a Target. The acquirer wishes to assess the impact of alternative forms of payment on post-merger earnings per share (EPS). Furthermore, the acquirer believes that any synergies in the first year following closing would be fully offset by costs incurred in combining the two businesses. The Acquirer’s marginal tax rate is 40%. Selected data are presented as follows:

a.     Calculate the post-merger first-year EPS following a share for share exchange in which each Target share is exchanged for 1.5 shares in the Acquirer.

b.     Calculate the post-merger first-year EPS for an all-cash deal in which the Acquirer pays $84.30 in cash per share of the Target. Assume the Acquirer borrows the entire purchase price at an 8% annual interest rate with the principal repaid in ten years (and do not forget the tax deductibility of interest).

Assume the Acquirer offers a mixed purchase price: part stock (1 share of Acquirer stock per target share) and part cash ($28.05 per target share). Assume further that the cash portion of the purchase price is financed by the acquirer at an 8% annual interest rate with the principal due in ten years (again, do not forget the tax deductibility of interest). What is the post-merger first-year EPS of the combined businesses?

You have $100 to invest in the stock market. Choose a company that would be considered an inelastic company -- it should meet 3 of the 4 requirements to be inelastic. Explain: 1) What stock(s) you chose and how much (so for example, what is the stock price and how did you break up the $100 (for example I chose stock x, which is currently trading at $32.00 a share and I would buy 3 shares) 2) Why that stock would be considered inelastic and why you chose it

Study the data in the table below and answer questions. The two regions are the two provinces of a small country

(a) What is the national Income for 1999?

(b) What is the real capita income for 1999?

(c) Which region indicates the biggest economic growth for the last three years? Motivate your answer

Regarding the employee stock option right to buy program discussed in class, what is the correct answer in the following example. An employee receives 100 shares of stock at $20. A year later the employee gets another 100 shares at $35 and a year later they receive another100 shares at $35. At some point after that the employee decides to sell all the shares at a $50 price when the stock rises to $50. How much will they personally profit?

A. $9000

B. $6000

C. $7000

D. None of the above

Assume M=$100, PX=$5 and PY =$10. Graph the budget constraint. Label the intercepts with their appropriate numbers and the slope as well

Now let’s assume income doubles so that M=$200. On the same space as above, graph the new budget constraint while appropriately labeling everything again.

Need help with third part:

Assume M=$100 again. But now, the price of good X increases from $5 to $10. Graph a 3rd budget constraint on the above graph and label everything.

Q1. What would happen to relative value of US dollar and Japanese yen if Japan raises its interest rate? Explain the process.

Q2. A Japan-made flash driver is sold at ¥ 10,000 in Japan and sold at $100 in the US market. A US-made flash driver is sold at $100 in the US and ¥ 10,000 in Japanese market now. What would happen to the price of imports and exports in Japan and the US if Japan declares 10% revaluation of Japanese yen? What would happen to the trade between two countries? Explain it.

Universal widget produces high-quality widgets. Its total cost function is given by ?? = 0.25? 2 . Widgets are demanded in Australia (where the demand curve is given by qA = 100 – 2PA) and in Lapland (where the demand is given by qL = 100 – 4PL). Total demand is equal to the combined demand from both locations. Suppose Universal widget can control the quantities supplied to each market.

(a) How many should it sell in each location to maximize its profit?

(b) What price will be charge in each location?

Company Z has 2.55 million shares of common stock authorized with a par value of $1 and a market price of $61. There are 1.275 million outstanding shares and 0.31875 million shares held in treasury stock.

Required:

1. Prepare the journal entry if the company declares and distributes a 10% stock dividend.
2. Show the effect of the 10% stock dividend on assets, liabilities, and stockholders' equity.
3. Prepare the journal entry if the company declares and distributes a 100% stock dividend.
4. Show the effect of the 100% stock dividend on assets, liabilities, and stockholders' equity.

A particular raw material is available to a company at three different prices, depending on the size of the order:

The cost to place an order is $50. Annual demand is 4,300 units. Holding (or carrying) cost is 25 percent of the material price.

What is the economic order quantity to buy each time, and its total cost? (Round your answers to the nearest whole number.)