First Saudi cinema in 35 years to open on April 18 AMC plans to open its first new movie theater in the Saudi capital of Riyadh on April 18 Some 350 cinemas with more than 2,500 screens will be opened by 2030. The Saudi Ministry of Culture and Information has signed an agreement with AMC to open around 40 cinemas in 15 cities in Saudi Arabia over the next five years. The license, the first of its kind, will allow one of the world’s largest film companies, to operate cinemas in the Kingdom. Under the license, AMC plans to open its first new movie theater in the Saudi capital of Riyadh in April 18. The company signed a memorandum of understanding with the Public Investment Fund in November 2017 to discuss potential trade cooperation opportunities. Saudi Arabia, with a population of 32 million, mostly under the age of 30, is expected to be the region’s largest market for movie theaters. Last December, the Ministry of Culture and Information announced that commercial cinemas would be allowed to operate in the Kingdom starting from 2018, for the first time in more than 35 years. Dr. Awad bin Saleh Al-Awad, Minister of Culture and Information, said that granting the first license provides important investment opportunities for the cinema industry. He pointed out that the Saudi market is large and most of the population is under the age of 30, so they are eager to watch their favorite films in their country. He added that the goal of the Kingdom’s Vision 2030 is to improve the quality of life by providing additional leisure opportunities. He pointed out that the opening of cinemas will help support the local economy and contribute to the creation of new jobs. The cinemas will not require men and women to sit separately, a source told Reuters on Wednesday. Vision 2030 has set a target of raising Saudi Arabia’s annual spending on cultural and recreational activities from 2.9% of total Saudi household spending to 6% by 2030. Adam Aron, CEO of AMC, said the company is following with great admiration the creative movement of development projects in the Kingdom to open new economic sectors. “We are looking forward to providing entertainment services that will enable everyone to spend an enjoyable time playing world-class film shows across the Kingdom. AMC’s entry into the Saudi Arabian market comes in partnership with the Public Investment Fund (PIF) through its wholly-owned Leisure Development and Investment Company. The move to allow movie theaters to open up a local market with annual ticket sales of up to $1bn is what makes other leading movie chains keen to enter as the largest market in the Gulf region. AMC Theaters is an American movie theater chain owned and operated by Wanda Group. Founded in 1920, AMC has the largest share of the American theater market ahead of Regal Entertainment Group and Cinemark Theaters.

Conduct SWOT and PESTLE (Political, Economic, Social, Technological, Legal, Environmental) Analysis for the Cinema Industry.

Discuss the challenges of Saudi Entrepreneurs to enter Cinema Industry in KSA

5. In general, efficiency will be maximized if all goods and services are taxed at the same rate. Is this true? Discuss.

a. What is the major difficulty with taxing all commodities at the same rate in practice? b. Given that a uniform tax on all goods and services is not possible, a friend suggests taxing all remaining commodities at the same rate, because “that is the next best thing to the most efficient outcome.” Is this suggestion economically valid? Explain by referring to the Theory of the Second Best.

1.The supply curve for labor:

2.What name is given to goods where the quantity demanded rises as income rises?

3.When quantity demanded decreases in response to a change in price for the good:

4.Any given demand or supply curve is based on the ceteris paribus assumption that:

5. The PPF was used in class to demonstrate which of the following concepts?

6. What is meant by law of diminishing returns?

7. DeAaron went to Kentucky. While there, one day he looked at all of his options, and in the end he debated between spending the next hour playing basketball or studying. He chose to play basketball. His opportunity cost was:

During 2014, Raines Umbrella Corp. had sales of $666924. Cost of goods sold, administrative and selling expenses, and depreciation expenses were $478699, $91112, and $84397, respectively. In addition, the company had an interest expense of $91184 and a tax rate of 35 percent. (Ignore any tax loss carryback or carryforward provisions. This means that if the company does not have any taxable income, they do not pay any tax.) Suppose Raines Umbrella Corp. paid out $51718 in cash dividends. If spending on net fixed assets and net working capital was zero, and if no new stock was issued during the year, what is the net new long-term debt?

in 2014, leon lopez funded lopez trust #3, an irrevocable trust, at first bank, 125 seaview, ... Question: In 2014, Leon Lopez funded Lopez Trust #3, an irrevocable trust, at First Bank, 125 Seaview, Nort... In 2014, Leon Lopez funded Lopez Trust #3, an irrevocable trust, at First Bank, 125 Seaview, Northwest City, WA 98112, for the benefit of his twin children, Loretta and Jorge. The trust’s tax ID number is 74-1243565. The trustee, in its discretion, is to dis- tribute income and/or principal to one or both of the beneficiaries and does not need to maintain separate shares. The trust is to terminate in 2025, when the beneficiaries reach age 35. Leon transferred corporate bonds and municipal bonds to the trust in January 2014. In 2015, the trustee distributed $8,600 to Loretta (whose address is 123 Maple Ave., Northwest City, WA 98115) and nothing to Jorge. Half of the trustee’s fee is to be charged to income and half to principal; gains and losses affect principal. Other current year information for the trust is as follows: Interest from corporate bonds $9,200 Interest from municipal bonds 6,800 Short-term capital gain on sale of bonds 300 CPA’s fee for preparation of prior year’s tax return 525 Trustee’s fee 800 Estimated federal income taxes paid from principal 2,400 Prepare a Form 1041 and Schedule K-1 for the trust. Ignore the alternative minimum tax.

George has preferences over two goods (G₁and G₂) that can be represented by the utility function U(G₁, G₂) = ???{ 10G₁,2G₂}. Assume that both goods can only be purchased in integer (whole number) amount! First, if George has $120 to spend and the first good costs $20 per unit, while the second good costs $4 per unit, how many units of both goods will George purchase when he is maximizing his utility subject to his budget? Second, calculate his utility at the optimum. Finally, holding all else constant, if George is given $10 extra in budget (so that he has $130 total), how much does his utility increase by?

Problem 5

You Design Shirts, Inc. (YDSI) specializes in logo-imprinted t-shirts. YDSI tracks the number of units purchased and sold throughout each accounting period but applies its inventory costing method at the end of each period, as if it uses a periodic inventory system.  Assume its accounting records provided the following information at the end of the accounting period, December 31.  The inventory’s selling price is $12 per unit.  

Required:

1. Compute the cost of goods available for sale at December 3
2. Compute the ending inventory, and cost of goods sold at December 31, under each of the following inventory costing methods:

1. Specific identification, assuming that the December 10 sale was from the beginning inventory and the December 17 sales was the December 12 purchase.

Cost of goods sold =

Ending Inventory =

Problem 5 continued

2. First-in, first-out [

Cost of goods sold =

Ending Inventory =

3. Weighted average method

Cost of goods sold =

Ending Inventory =

Problem 5 continued

3. Of the three methods, which will result in the highest gross profit?
4. Of the three methods, which will result in the lowest amount of income tax expense?
5. Of the three methods, which will result in the highest current ratio?
6. Using the First-in, first-out method, calculate to one decimal place the inventory turnover ratio and days to sell in the current year, assuming that inventory was $500 on January 1 of this year and cost of goods sold up to December 1 was $19,000. Evaluate these measures in comparison to an inventory turnover ratio of 12.0 during the previous year.