The company has the following information for 2018

1. Compute basic and diluted EPS for 2018 (to the nearest tenth of a cent).
2. Compute basic and diluted EPS for 2018 assuming the stock options were granted on March 1, 2018.
3. Compute basic and diluted EPS for 2018 assuming the stock options were granted on March 1, 2018 and the debt was issued on July 1, 2018 (don’t forget to adjust net income).

Prepare an amortization schedule first

DeLong Corporation was organized on January 1, 2019. It is authorized to issue 10,000 shares of 8%, $100 par value preferred stock, and 500,000 shares of no-par common stock with a stated value of $2 per share. The following stock transactions were completed during the first year:

Bentley has the following information for 2018:

1. Compute basic and diluted EPS for 2018 (to the nearest tenth of a cent).
2. Compute basic and diluted EPS for 2018 assuming the stock options were granted on March 1, 2018.
3. Compute basic and diluted EPS for 2018 assuming the stock options were granted on March 1, 2018 and the debt was issued on July 1, 2018 (don’t forget to adjust net income).

Prepare an amortization schedule first

Lorraine Terrance, an 83-year-old widow who has lived alone since her husband died 6 months ago, is in the early stages of Alzheimer’s disease. She has a history of cardiovascular disease and hypertension and has been admitted to the local hospital for observation after complaints of chest pain. At present, she is very anxious and agitated. The admitting nurse received a telephone call from Mrs. Terrence’s daughter, who lives out of town. The daughter states that her mother has experienced anxiety and depression for many years and her symptoms have worsened since her father died. The daughter does not know what medications her mother currently takes, and she is concerned that her mother lives alone and wants her to move to a nursing home. The provider orders the following medications: Alprazolam (Xanax) for anxiety, Citalopram (celexa) for depression, and Zolpidem (Ambien) for sleep.

Mrs. Terrence’s two sons come to visit her in the hospital. They complain to the nurse that their mother seems oversedated. In denial about her mental status, the sons request that their mother’s medication be discontinued, but the nurses are concerned that if she is agitated, she may pull out her IV lines and Foley catheter as well as possibility strike out at staff.

1. How does the nurse handle this situation while respecting the family’s concerns, based on his or her knowledge and skills of patient-centered care?

Mrs. Terrence receives alprazolam 0.25 mg PO at 2:00 PM. Later, when the nurse brings in her supper tray, the patient seems relaxed. The supper tray contains raost beef, salad, chocolate pie, and hot tea. Visitors arrive at 5:00 PM and remark to the nurse that Mrs. Terrence is agitated and wringing her hands. She says that she is afraid to verbalize her anxiety to the nursing staff. The nurse prepares to give Mrs. Terrence another dose of medication.

1. What does the nurse prepare and why?

2. What foods on the supper tray contribute to the patient’s safety?

3. What patient teaching is necessary?

• 12.

  (Equilibrium) Assume the market for corn is depicted as in the table that appears below.

  1. Complete the table below.

  2. What market pressure occurs when quantity demanded exceeds quantity supplied? Explain.

  3. What market pressure occurs when quantity supplied exceeds quantity demanded? Explain.

  4. What is the equilibrium price?

  5. What could change the equilibrium price?

  6. At each price in the first column of the table below, how much is sold?

     Price per Bushel	Quantity Demanded (millions of bushels)	Quantity Supplied (millions of bushels)	Surplus/Shortage	Will Price Rise or Fall?
     $1.80	320	200
     2.00	300	230
     2.20	270	270
     2.40	230	300
     2.60	200	330
     2.80	180	350

1. What criteria do consumers apply when deciding whether or not to consume

a. The consumer would consume only if the price is lower than his highest willingness to pay

b. The consumer would only consume if his surplus is greater than zero

c. The consumer would only consume if the price is higher than his highest willingness to pay

d. Both A&B

2. A demand curves describes

a. the amount of units a consumer will purchase at a given price

b. the amount of units a producer will sell at a given price

c. both the amount of units that a consumer will buy and a producer will produce at a given price

d. the amount of units supplied given a change in prices

3. The price elasticity of demand tells us about

a. The sensitivity of price to quantity

b. The sensitivity of quantity to price

c. The sensitivity of income to price .

d. The sensitivity of income to quantity

4. If the quantity sold of two-liter Coke bottles increases by 10% when price falls by 2%, what is the total change in revenue?

a. Revenue increases by 12%

b. Revenue increases by 8%

c. Revenue falls by 8%

d. Revenue falls by 12%

5. If cars are normal goods, a fall in income will

a. Increase the demand for cars

b. Decrease the demand for cars

c. Have no effect on the demand for cars

d. None of the above

6. Its lunch time, you are hungry and would like to have some pizza. By the law of diminishing marginal value,

a. you would pay more for your first slice of pizza than your second

b. you would pay more for your second slice of pizza than your first

c. you would pay an equal amount of money for both the slices since they are identical

d. none of the above

1. A monopolist has variable costs of VC = q² and faces a demand curve of P = 24 – q, where P is price and q the quantity sold. If the monopolist sets a single price, what is its profit-maximising quantity?

a.2

b.4

c.6

d.8

e. none

2. A monopolist has variable costs of VC = q² and faces a demand curve of P = 24 – q, where P is price and q the quantity sold. If the monopolist sets a single price, what is the resulting loss in the gains from trade?

a.8

b.6

c.12

d.4

e.none

3. A monopolist has variable costs of VC = q² and faces a demand curve of P = 24 – q, where P is price and q the quantity sold. If the monopolist sets a single price what is profit (assume there are no fixed costs)?

a.48

b.64

c.72

d.36

e. none

4. A monopolist has variable costs of VC = q² and faces a demand curve of P = 24 – q, where P is price and q the quantity sold. If the monopolist engages in first-degree price discrimination, the resulting deadweight loss is?

a.6

b.16

c.32

d.64

e.0

5. A monopolist has variable costs of VC = q² and faces a demand curve of P = 24 – q, where P is price and q the quantity sold. (Consider that this demand curve is marginal benefit curve for an individual consumer.) The monopolist engages in first degree price discrimination using a two-part tariff, what is the fixed fee (F) and per-unit fee charged (p)?

a.F = 16, p = 8

b.F = 32, p = 16

c.F = 64, p = 8

d.F = 8, p = 4

e. none

Mercer Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. There has been a long-simmering dispute between the company’s estimator and the work supervisors. The on-site supervisors claim that the estimators do not adequately distinguish between routine work such as removal of asbestos insulation around heating pipes in older homes and nonroutine work such as removing asbestos-contaminated ceiling plaster in industrial buildings. The on-site supervisors believe that nonroutine work is far more expensive than routine work and should bear higher customer charges. The estimator sums up his position in this way: “My job is to measure the area to be cleared of asbestos. As directed by top management, I simply multiply the square footage by $3.60 to determine the bid price. Since our average cost is only $2.85 per square foot, that leaves enough cushion to take care of the additional costs of nonroutine work that shows up. Besides, it is difficult to know what is routine or not routine until you actually start tearing things apart.”

Problem 7-18 Activity-Based Costing and Bidding on Jobs [LO7-2, LO7-3, LO7-4]

Mercer Asbestos Removal Company removes potentially toxic asbestos insulation and related products from buildings. There has been a long-simmering dispute between the company’s estimator and the work supervisors. The on-site supervisors claim that the estimators do not adequately distinguish between routine work, such as removal of asbestos insulation around heating pipes in older homes, and nonroutine work, such as removing asbestos-contaminated ceiling plaster in industrial buildings. The on-site supervisors believe that nonroutine work is far more expensive than routine work and should bear higher customer charges. The estimator sums up his position in this way: “My job is to measure the area to be cleared of asbestos. As directed by top management, I simply multiply the square footage by $3.60 to determine the bid price. Since our average cost is only $2.775 per square foot, that leaves enough cushion to take care of the additional costs of nonroutine work that shows up. Besides, it is difficult to know what is routine or not routine until you actually start tearing things apart.”

To shed light on this controversy, the company initiated an activity-based costing study of all of its costs. Data from the activity-based costing system follow:

Required:

1. Perform the first-stage allocation of costs to the activity cost pools.

2. Compute the activity rates for the activity cost pools.

3. Using the activity rates you have computed, determine the total cost and the average cost per thousand square feet of each of the following jobs according to the activity-based costing system.

a. A routine 1,000-square-foot asbestos removal job.

b. A routine 2,000-square-foot asbestos removal job.

c. A nonroutine 2,000-square-foot asbestos removal job.