Suppose America is able to produce up to 100,000 computers/year or 50,000 TVs/year or any linear combination of the two. Japan is able to produce up to 80,000 computers/year or 160,000 TVs/year or any linear combination of the two. Assume that without trade, each country spends half of their efforts on each good.

Which country has the absolute advantage in each good?

Which country has the comparative advantage in each good?

Suppose that each country specialized in producing one good and then agreed to trade 45,000 computers for 60,000 TVs. What would the gains from trade be for America?

Continuing with the supposition from #33, what would the gains from trade be for Japan?

Geraldine (Gerri) Bowen is a 74-year-old woman living with dementia. Her husband passed away one year ago. He was her primary care giver, although he had contracted for a daily caregiver to help Monday through Friday with Gerri’s activities of daily living and so that he could run errands such as banking, grocery shopping, etc. Since his death, the family (three sons and their wives) set up 24-hour care giving because Gerri wants to live at home and not in an extended care facility. Recently, Gerri had complained of abdominal discomfort and has frequent diarrhea. After some diagnostic tests (a lower GI, a CT and abdominal MRI) she was diagnosed with Stage 3 (late stage 3) colon cancer. In addition, Gerri has a right lower lobe lung lesion. The surgeon feels that it is most likely not metastasis, but a second primary cancer. The surgeon recommends palliative surgery, since Gerri will not benefit from radiation or chemotherapy. You are the nurse caring for Gerri after her colon resection and overhear the family discussing what they should be telling their mother. Gerri asks you, “no one is telling me what is going on. It’s not right. I don’t want to stay here (the hospital) I just want to be at home. I don’t like all these people around me.” You tell the oldest son that Gerri has asked questions about her condition on several occasions. He tells you that he and his brothers cannot agree whether Gerri should be told about her condition (the cancer). He advises you to tell Gerri that nothing is wrong. While two of the sons want their mother told, the third son feels it would be cruel to tell her because she isn’t completely “there”. Gerri recognizes her family and recalls the past all the time. She often has difficulty expressing her feelings and recalling the immediate past. But it is your opinion that she does understand some things.

What is the dilemma and relevant facts in this case? What ethical principles are pertinent to this case?

​(Financial statement​ analysis)  The annual sales for​ Salco, Inc. were$4.64million last year. The​ firm's end-of-year balance sheet was as​ follows Salco's income statement for the year was as​ follows:  

a. Calculate​ Salco's total asset​ turnover, operating profit​ margin, and operating return on assets.

b.  Salco plans to renovate one of its plants and the renovation will require an added investment in plant and equipment of

$1.01 million. The firm will maintain its present debt ratio of 50 percent when financing the new investment and expects sales to remain constant. The operating profit margin will rise to 13.5 percent. What will be the new operating return on assets ratio​ (i.e., net operating income÷total ​assets) for Salco after the​ plant's renovation?

c.  Given that the plant renovation in part​(b​)occurs and​ Salco's interest expense rises by$48,000 per​ year, what will be the return earned on the common​ stockholders' investment? Compare this rate of return with that earned before the renovation. Based on this​ comparison, did the renovation have a favorable effect on the profitability of the​ firm?

Current assets   $500,000   Liabilities   $1,012,500
Net fixed assets   1,525,000   Owners' equity   1,012,500
Total Assets   $2,025,000   Total   $2,025,000

Sales    $4,640,000
Less: Cost of goods sold    (3,501,000)
Gross profit    $1,139,000
Less: Operating expenses    (507,000)
Net operating income    $632,000
Less: Interest expense    (94,000)
Earnings before taxes    $538,000
Less: Taxes (35%)    (188,300)
Net income    $349,700

a.  Calculate​ Salco's total asset​ turnover, operating profit​ margin, and operating return on assets.

The​ company's total asset turnover is

2.292.29

times.  ​(Round to two decimal​ places.)

The​ company's operating profit margin is

13.613.6​%.

​(Round to one decimal​ place.)

The​ company's operating return on assets is

31.231.2​%.

​(Round to one decimal​ place.)

b.  Salco plans to renovate one of its plants and the renovation will require an added investment in plant and equipment of

$1.01

million. The firm will maintain its present debt ratio of

50

percent when financing the new investment and expects sales to remain constant. The operating profit margin will rise to

13.5

percent. What will be the new operating return on assets ratio​ (i.e., net operating

income÷total

​assets) for Salco after the​ plant's renovation?

The​ company's new operating return on assets is

20.720.7​%.

​(Round to one decimal​ place.)

c . Given that the plant renovation in part

​(b​)

occurs and​ Salco's interest expense rises by

$48,000

per​ year, what will be the return earned on the common​ stockholders' investment?

The new return on​ owners' equity is

nothing​%.

​(Round to one decimal​ place.)

c.  Given that the plant renovation in part ​(b​)occurs and​ Salco's interest expense rises by $48,000 per​ year, what will be the return earned on the common​ stockholders' investment? The new return on​ owners' equity is nothing​%.​(Round to one decimal​ place.)

Mary-Lou is a 75-year-old widow, who lost her husband to cancer over a year ago. Her family and friends have noticed that she has been very teary, has low self-esteem and has lost interest in the things she used to love such as going to bingo with her friends and gardening. Her family initially put this down to the loss of her husband and thought it would pass with time. However, they are now getting really concerned as they have noticed that her mood is not improving still. When asked by her daughter if she is sleeping well, she says she has been drinking wine every night to help her go to sleep. It makes her feel happy and relaxed. What started as one glass a night has now increased to two or three glasses a night, and she has also started drinking during the day. Her daughter has noticed that her mum’s face always appears flushed and that she has had quite a few colds lately. Mary-Lou is also losing her balance and experiencing mood swings. Her daughter is worried that she is relying too heavily on alcohol and fears that she is starting to get short-term memory loss from the alcohol consumption. She has been forgetting things such as where she put her keys, whether she turned on the washing machine, why she opened the fridge and forgetting the topic of conversation when talking with her daughter on the phone. Mary-Lou has also been getting disorientated and getting lost when she goes out on her daily walks. A neighbor rang her daughter one day to tell her that she found Mary-Lou wandering around aimlessly, and when questioned what she was doing Mary-Lou snapped and said she was trying to get home. Her daughter decided it was time to take Mary-Lou to the local GP to work out what was going on with her. After listening to the signs and symptoms Mary-Lou was experiencing, the GP diagnosed her with depression and prescribed 50 mg of Fluoxetine/Prozac daily. Based on the results of clinical and radiological assessments, the GP determined that she had early onset Alzheimer’s disease. He prescribed a cholinesterase inhibitor and gave them information on support groups and tips on what to do from here on in. He also prescribed 10 mg of Diazepam daily to help with the withdrawals from alcohol abuse.

Question 4: Based on her clinical picture and history, explain if Mary-Lou suffers from alcohol addiction. Support your answer with relevant evidence from the case study.

0. Mary-Lou is a 75-year-old widow, who lost her husband to cancer over a year ago. Her family and friends have noticed that she has been very teary, has low self-esteem and has lost interest in the things she used to love such as going to bingo with her friends and gardening. Her family initially put this down to the loss of her husband and thought it would pass with time. However, they are now getting really concerned as they have noticed that her mood is not improving still. When asked by her daughter if she is sleeping well, she says she has been drinking wine every night to help her go to sleep. It makes her feel happy and relaxed. What started as one glass a night has now increased to two or three glasses a night, and she has also started drinking during the day. Her daughter has noticed that her mum’s face always appears flushed and that she has had quite a few colds lately. Mary-Lou is also losing her balance and experiencing mood swings. Her daughter is worried that she is relying too heavily on alcohol and fears that she is starting to get short-term memory loss from the alcohol consumption. She has been forgetting things such as where she put her keys, whether she turned on the washing machine, why she opened the fridge and forgetting the topic of conversation when talking with her daughter on the phone. Mary-Lou has also been getting disorientated and getting lost when she goes out on her daily walks. A neighbor rang her daughter one day to tell her that she found Mary-Lou wandering around aimlessly, and when questioned what she was doing Mary-Lou snapped and said she was trying to get home. Her daughter decided it was time to take Mary-Lou to the local GP to work out what was going on with her.

   After listening to the signs and symptoms Mary-Lou was experiencing, the GP diagnosed her with depression and prescribed 50 mg of Fluoxetine/Prozac daily. Based on the results of clinical and radiological assessments, the GP determined that she had early-onset Alzheimer’s disease. He prescribed a cholinesterase inhibitor and gave them information on support groups and tips on what to do from here on in. He also prescribed 10 mg of Diazepam daily to help with the withdrawals from alcohol abuse.

1. Explain the mechanism of action of two drug types Mary-Lou is prescribed with and describe how these drug actions help mitigate some of her symptoms. In you answer, make references to the pathophysiology of the relevant diseases.

Mary-Lou is a 75-year-old widow, who lost her husband to cancer over a year ago. Her family and friends have noticed that she has been very teary, has low self-esteem and has lost interest in the things she used to love such as going to bingo with her friends and gardening. Her family initially put this down to the loss of her husband and thought it would pass with time. However, they are now getting really concerned as they have noticed that her mood is not improving still. When asked by her daughter if she is sleeping well, she says she has been drinking wine every night to help her go to sleep. It makes her feel happy and relaxed. What started as one glass a night has now increased to two or three glasses a night, and she has also started drinking during the day. Her daughter has noticed that her mum’s face always appears flushed and that she has had quite a few colds lately. Mary-Lou is also losing her balance and experiencing mood swings. Her daughter is worried that she is relying too heavily on alcohol and fears that she is starting to get short-term memory loss from the alcohol consumption. She has been forgetting things such as where she put her keys, whether she turned on the washing machine, why she opened the fridge and forgetting the topic of conversation when talking with her daughter on the phone. Mary-Lou has also been getting disorientated and getting lost when she goes out on her daily walks. A neighbor rang her daughter one day to tell her that she found Mary-Lou wandering around aimlessly, and when questioned what she was doing Mary-Lou snapped and said she was trying to get home. Her daughter decided it was time to take Mary-Lou to the local GP to work out what was going on with her. After listening to the signs and symptoms Mary-Lou was experiencing, the GP diagnosed her with depression and prescribed 50 mg of Fluoxetine/Prozac daily. Based on the results of clinical and radiological assessments, the GP determined that she had early onset Alzheimer’s disease. He prescribed a cholinesterase inhibitor and gave them information on support groups and tips on what to do from here on in. He also prescribed 10 mg of Diazepam daily to help with the withdrawals from alcohol abuse.

a) Identify and explain two pharmacokinetic factors that are characteristic of/specific to Mary- Lou’s antidepressant medication. Discuss how her age impacts the pharmacokinetics of her medication.

b) Explain what specific considerations need to be made in the present scenario, when two drugs are administered simultaneously.

I don’t understand this. Last year [year 1], we decided to drop our highest-end Red model and only produce the Yellow and Green models, because the cost system indicated we were losing money on Red. Now, looking at the preliminary numbers, our profit is actually lower than last year and it looks like Yellow has become a money loser, even though our prices, volumes, and direct costs are the same. Can someone please explain this to me and maybe help me decide what to do next year?

Robert Dolan

President & CEO

Dolan Products

Dolan Products is a small, family-owned audio component manufacturer. Several years ago, the company decided to concentrate on only three models, which were sold under many brand names to electronic retailers and mass-market discount stores. For internal purposes, the company uses the product names Red, Yellow, and Green to refer to the three components.

Data on the three models and selected costs follow:

This year (year 2), the company only produced the Yellow and Green models. Total overhead was $625,400. All other volumes, unit prices, costs, and direct labor usage were the same as in year 1. The product cost system at Dolan Products allocates manufacturing overhead based on direct labor hours.

Required:

a. Compute the product costs and gross margins (revenue less cost of goods sold) for the three products and total gross profit for year 1. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)

b. Compute the product costs and gross margins (revenue less cost of goods sold) for the two remaining products and total gross profit for year 2. (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Round your answers to 2 decimal places.)
     

c. Should Dolan Products drop Yellow for year 3?   

Hadley Inc. forecasts the year-end free cash flows (in millions) shown below.

The weighted average cost of capital is 10%, and the FCFs are expected to continue growing at a 3% rate after Year 5. The firm has $24 million of market-value debt, but it has no preferred stock or any other outstanding claims. There are 21 million shares outstanding. What is the value of the stock price today (Year 0)? Round your answer to the nearest cent. Do not round intermediate calculations.

Business Basics - Assignment 2

GLOBUS ENTERPRISES YEAR END BALANCES

Assignment

Using the data in the table above, create a balance sheet for Globus’s operations as of yearend (December 31, 200X)

Using the data in the table above, create an income statement for the year being examined.

Analyze the financial statements using the following analytical tools:

Current ratio (What does this ratio tell us about Globus?)

Net working capital (What does net working capital tell us about Globus?)

Note: Net working capital is the difference between current assets and current liabilities.

Debt to equity ratio (What does this ratio tell us about Globus?) Note: To compute owners’ equity from the data supplied here, remember the fundamental accounting equation:

Assets = Liabilities + Owners’ equity

Leverage ratio (What does this ratio tell us about Globus?)

Return on equity (What does this ratio tell us about Globus?)

The table shows growth rates for a population over time. Use this data to sketch a smooth curve relating the two variables.

Draw rectangles on this graph to help you underestimate the total change in the world's population between 1950 and 1990. What underestimate did you obtain

million people?

Draw rectangles on this graph to help you overestimate the total change in the world's population between 1950 and 1990. What overestimate did you obtain?

million people?

If the population in 1950 were 2844 million and if the population in 1990 were 5393 million, what would be the true total change in population?

million people ?