1. Compare and contrast the Balance Sheet of Colgate-Palmolive with the Balance Sheet of the City of Dallas Governmental-Type Funds for 2016.

2. Compare and contrast the Income statement of Colgate-Palmolive with the City of Dallas Statements of Revenue, Expenditures and Changes in Fund Balances for 2016.

Note:

This is a descriptive financial analysis; no data analysis is required. This question requires us to compare a governmental fund balance sheet and Statements of revenue, expenditures and changes in fund balance with the business equivalents in the for-profit sector.

Locate the company's most recent financial information. Note that this information may be located in one of two places: the Annual Report to Shareholders or Form 10-K Annual Report to the SEC. Locate the Notes to the Financial Statements. In the first note, Significant Accounting Policies, locate the Revenue Recognition note. How does the accrual accounting/revenue recognition principle affect this company? If the cash basis of accounting were used rather than the accrual basis, how would the results of operations be impacted?

Consider the following demand function for game consoles: (D): P = 400 - 20Q

1. Assume that the price decreases from 150$ to 100$.

a. Calculate the price elasticity of demand.(midpoint method )

b. Is the demand elastic, inelastic or unit elastic?

c. What happens to Total Revenue?

2. Assume that the price decreases from 75$ to 50$.

a. Calculate the price elasticity of demand.(mid point method )

b. Is the demand elastic, inelastic or unit elastic?

c. What happens to Total Revenue?

A monopolist faces a demand curve of Q = 164 – P, where P is price and Q is the output produced by the monopolist. What choice of output will maximize revenue?

Group of answer choices

70

74

82

86

if monopolist produces good X and faces a demand curve X = 112 - 2P, where P is price. What is the monopolist's marginal revenue as a function of good X?

Group of answer choices

44 - X

56 - 0.5X

56 - X

44 - 0.5X

TRUE OR FALSE

1. When a depreciable asset is sold, a loss arises if the sales proceeds exceed the net book value.(TRUE OR FALSE )
2. Variable costs are costs that change with the level of activity (unit volumes).(TRUE OR FALSE )
3.         Revenue should be recorded in the same period as the cash is received.(TRUE OR FALSE )
4.         For a service business, revenue should be recorded as soon as a contract is signed and agreed.(TRUE OR FALSE )
5.         The payment of rent in 2019 will decrease assets and will reduce 2019 net income.(TRUE OR FALSE )

Suppose that the demand curve for barley can be characterized by the equation P = 100 - 2Qd. Suppose further that price was $10.00 and a $10.00 tax is imposed on the market. a) How many barleys would be purchased at a price of $10.00? After tax? b) What is the amount of tax revenue generated by the tax? c) How much excess burden is generated by the tax? d) What is the amount of consumer surplus before and after the tax? What is the difference in consumer surplus? Is it equal to excess burden plus the tax revenue?

Foxboro Company experienced an accounting event that affected it balance sheet and income statement in the following way:

Assets: -/+

Liabilities: NA

Equity: NA

Revenue: NA

Expenses: NA

Net Income: NA

Which of the following accounting events could have caused these effects on Foxboro's statements:

a. Purchase raw materials inventory on account

b. Transfer cost from work in process to finished good inventory

c. Recognize revenue from merchandise sold for cash

d. None of the above

Based on the following assumptions, calculate the Contribution Margin and the Contribution Income Statement.

Assumptions:

1. 250 Units are Sold

2. Per Unit cost is $75

3. Variable costs = $35 per unit

4. Fixed costs are $3,500

a. What is the Revenue?

b. What are the Variable costs?

c. What is the Contribution Margin?

d. What is the Operating Income?

Sony Music Publishing Company wants to decide the price of Saylor Twift’s next album. The company conducted a survey of 1000 customers to estimate the willingness-to-pay (WTP) of the customers. The following table summarizes the results of the survey:

a) If Sony decides to charge the customers $18.99 per album, then what will be the revenue per 1000 potential customers?

b) What is the best price to maximize the revenue?

1. Suppose that the price of Oranges is $4. In addition, suppose that the firm's total costs are $32 and that the firm currently sells 110 Oranges.

Given this information, what is this firm's total revenue?

Use the following information to answer questions 2 through 5:

The table below shows data for the production of avocados for an individual firm operating in a perfectly competitive market.

2. Given this data, complete the table:

3. At what quantity does this firm maximize its profit?

NOTE: If there are two quantities with the same level of profits, pick the larger of the two quantities!

4. What is marginal revenue at the profit maximizing quantity?

NOTE: If there are two quantities with the same level of profits, pick the larger of the two quantities!

5. What is marginal cost at the profit maximizing quantity?

NOTE: If there are two quantities with the same level of profits, pick the larger of the two quantities!