The Trump government in the US has adopted trade protectionism since the first day that president Trump came to the oval office in the white house. During 2018 and 2019, the US had increased tariffs on the majority of the imported goods from China. Meanwhile, China also retaliated by increasing its tariff on imports from the US.

1. a) What will be the impacts of the tariff on the trade volume between the US and China?

2. b) Who pay for the US tariffs on the imports of Chinese goods?

3. c) Conduct welfare analysis for the US import tariff.

4. d) President Trump blamed China for the large goods trade deficits. Explain why the goods trade deficits are not a good measure of bilateral sale balance.

5. e) Who are the winners and losers of the US-China Trade War?

Suppose you have decided to take up parachuting, and will land at a random point on a street (called F Avenue) between University X and University Y.

(a) You’ll be on time to class if you land closer to University X than to University Y. Find the probability that you are on time to class.

(b) What’s the probability that your distance to University X is more than three times your distance to University Y?

(c) You’ve managed to convince your two friends, who are also taking a class at 10:30, to start parachuting to school with you. If you operate independently, what’s the probability that exactly one of the three of you lands closer to University X than to University Y, and makes it to class on time?

Acme Materials Company manufactures and sells synthetic coatings that can withstand high temperatures. Its primary customers are aviation manufacturers and maintenance companies. The following table contains financial information pertaining to cost of quality (COQ) in 2019 and 2020 (in thousands of dollars):

Required:

1. Classify the cost items in the table into cost-of-quality (COQ) categories.

2. Calculate the ratio of each COQ category to revenues in each of the 2 years.

3. Calculate the percentage change in each COQ category and total COQ and comment on the results:

a. Percentage change in total COQ as a percentage of sales, from 2019 to 2020;

b. Total COQ in 2020 expressed as a percentage of 2019 sales dollars;

c. Percentage change in total prevention costs, 2019 to 2020;

d. Percentage change in total appraisal costs, 2019 to 2020;

e. Percentage change in total internal failure costs, 2019 to 2020;

f. Percentage change in total external failure costs, 2019 to 2020.

On January 1, 20X9, Parent Corporation acquired 90 percent of Small Corporation's stock for $315,000 cash. At that date, the fair value of the noncontrolling interest was $35,000, and small reported common stock outstanding of $150,000 and retained earnings of $180,000. The differential is assigned to a patent with a remaining life of eight years. Each year since acquisition, small has reported income from operations of 50,000 and paid dividend of $30,000.

Small acquired 75 percent ownership of cherry company on January 1, 20x9 for 187,500. at that date, fair value of the noncontrolling interest was 62,500, and cherry reported common stock outstanding of $100,000 and retained earnings of $130,000. In 20x9, cherry reported net income of $20,000 and paid dividends of $8,000. the differential is assigned to building and equipment with an economic life of 10 years at the date of acquisition.

required: prepare the journal entries recorded by small for its investment in cherry during 20x9.

X Enterprises owns a professional ice hockey team, the Rockford Penguins. The company sells season tickets for its upcoming 2020-2021 season and receives $816,000 cash. The season starts November 1 and ends on April 30, with five home games occurring monthly over the six-month hockey season. Assume that McKinnon Enterprises' fiscal year ends on December 31.

Required: 1) Prepare journal entries to record all transactions and adjustments necessary through 2020-2021 hockey season.

2)Indicate how the season tickets will be reported on the income statement of 2020, the balance sheet at the end of 2020 and the statement of cash flows of 2020.

Jack's Electric sold $4,495,000, 13%, 10-year bonds on January 1, 2020. The bonds were dated January 1, 2020, and paid interest on January 1. The bonds were sold at 98.

Prepare the journal entry to record the issuance of the bonds on January 1, 2020.

At December 31, 2020, $7,500 of the Discount on Bonds Payable account has been amortized. Show the balance sheet presentation of the long-term liability at December 31, 2020.

On January 1, 2022, when the carrying value of the bonds was $4,420,100, the company redeemed the bonds at 102. Record the redemption of the bonds assuming that interest for the period has already been paid.

SurveyUSA conducted a poll from March 4, 2020 to March 6, 2020 regarding how concerned people were about the Wuhan Coronavirus. One of the questions asked, "As a result of the coronavirus, have you bought anti-bacterial surface wipes?" The results are summarized in the table below.

Using your tools from the probability chapter, does it appear that buying anti-bacterial wipes is independent of gender?

• Yes, it does appear that buying anti-bacterial wipes is independent of gender.
• No, it appears that buying anti-bacterial wipes and gender are dependent.

Explain.

Are female and purchasing anti-bacterial wipes mutually exclusive (disjoint)?

• Yes, being female and purchasing anti-bacterial wipes are mutually exclusive.
• No, being female and purchasing anti-bacterial wipes are not mutually exclusive.

Explain.

The following accounts, among others, appeared on ZZ Company's balance
sheet at January 1, 2020 and December 31, 2020:

                  January 1, 2020       December 31, 2020

Accounts receivable    48,000                63,000
Utilities payable      20,000                26,000
Notes payable          71,000                80,000
Common stock           30,000                90,000
Retained earnings      22,000                78,000

The following information was taken from ZZ Company's 2020 income
statement:

Sales revenue                   $500,000
Cost of goods sold               280,000
Other expenses                   120,000
Net income                      $100,000

Calculate the net cash flow from financing activities for 2020. If
your answer is negative, place a minus sign in front of your answer
with no spaces in between (e.g., -1234).

2. Business and commerce are activities much older than the microchip (or the phone for that matter). In a similar vein as the previous question, imagine companies in the 1600s through the 1800s and how information was managed in these instances. The East India Company and the Hudson’s Bay Company (which still exists today) were some of the biggest companies of their day. Imagine how simple business tasks such as logistics and employee transfer (from one country to another) might have been accomplished. What might this tell us about how companies use IT today? What lessons can we draw from this knowledge?

Q.

The inventory of Ahrsun Ventures Corporation was destroyed by fire on February 29, 2020. The following data is for the first two months of the year: Sales $51,000, Sales Returns and Allowances $1,000, Purchases $28,200; Freight-In $1,200; and Purchase Discounts $1,400. According to the financial statements at year-end December 31, 2019 the balance of Merchandise Inventory was $20,000. Ahrsun Ventures has a gross profit rate of 30% on net sales and uses the periodic method of inventory.

REQUIRED: Determine the merchandise lost by fire.

Q.

On March 31 2020 the adjusted year-end account balances of ABC Company were as follows:

Required: Prepare, in good form, a classified Balance Sheet. ABC Company uses the perpetual inventory method.

Q.

The March 31, 2019 balance sheet of Kalakaua Corporation had Accounts Receivable of $525,000 and a credit balance in Allowance for Doubtful Accounts of $33,000. During the year ended March 31, 2020, the following transactions occurred: sales on account $1,550,000; sales returns & allowances, $120,000; collections from customers, $1,350,000; accounts written off $41,000; previously written off accounts of $5,000 were collected.

1. Using the above information, what is the balance of Accounts Receivable at March 31, 2020?

2. Suppose that it is the company policy to use the percentage of sales basis to estimate bad debts expense and anticipates 3% of net sales to be uncollectible, what is the adjusting entry at March 31, 2020? (Show calculations.)

3. Ignore the entry made in b) above.

Assume that it is company policy to use the aging of receivables basis to estimate bad debt expense. It determines that uncollectible accounts are expected to be $38,400.   What is the adjusting entry at March 31, 2020?   Assume the March 31, 2020 balance of Accounts Receivable is $575,000 and Allowance for Doubtful Accounts has an existing balance of $3,000 (cr). (Show calculations)

Q. The following figures are provided for Hanauma Marketing Corp. What is gross margin?

Sales revenue                                           $480,000

Cost of goods sold                                      300,000

Sales discounts                                           20,000

Sales returns and allowances                    15,000

Operating expenses                                     85,000

Interest revenue                                             5,000

a) $105,000

b) $140,000

c) $145,000

d) $ 90,000

e) $180,000