December 31, 2018 Trial Balance of Target Inc.                                                                                                                                            

FACTS:                                                                                                                                 

1. Equipment has an estimated useful life of 16 years and a salvage value of $40,000. (Target Inc. uses straight line)                                                                                                                                  

2. The note payable is a 90-day note given to the bank on October 20th and bears interest at 10% (assume a 360 day year)                                                                                                                                       

3. In December, target Inc. sold 2,000 coupon admission books at $25 each. ( These coupons cannot be used until January 1st, 2019.)   

4. Advertising expense included $1,100 that was paid in advance.                                                                                                                                            

5. Salaries that have accrued but remain unpaid are $4,700.                                                                                                                                     

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A publisher in a competitive market faces the following cost schedule for publishing a novel by one of its authors: the author is paid a $3,000,000 up-front signing bonus to write the book (it is not refundable). The going market price for a hardcover book is $32 per copy. Where Q is the number of books printed and AVC is the average variable cost of producing books at a given Q.

1. Compute total revenue, total cost and profit at each quantity.
2. Compute marginal revenue. How does marginal revenue compare to price? Explain.
3. Compute marginal cost.
4. Is there a quantity where marginal revenue and marginal cost cross? What does this signify? What is the quantity?
5. What quantity would a competitive profit maximizing publisher choose?
6. If the author were paid $4 million instead of $3 million to write the book, how would this affect the publisher’s decision on what quantity to sell and its profits?

Catena's Marketing Company has the following adjusted trial balance at the end of the current year. Cash dividends of $620 were declared at the end of the year, and 580 additional shares of common stock ($0.10 par value per share) were issued at the end of the year for $2,320 in cash (for a total at the end of the year of 850 shares). These effects are included below: Catena’s Marketing Company Adjusted Trial Balance End of the Current Year Debit Credit Cash $ 1,590 Accounts receivable 2,310 Interest receivable 270 Prepaid insurance 1,750 Long-term notes receivable 2,930 Equipment 15,900 Accumulated depreciation $ 2,810 Accounts payable 2,200 Dividends payable 620 Accrued expenses payable 3,910 Income taxes payable 2,530 Unearned rent revenue 400 Common Stock (850 shares) 85 Additional paid-in capital 3,475 Retained earnings 5,070 Sales revenue 36,750 Interest revenue 120 Rent revenue 580 Wages expense 18,300 Depreciation expense 1,740 Utilities expense 360 Insurance expense 720 Rent expense 9,900 Income tax expense 2,780 Total $ 58,550 $ 58,550 Prepare a statement of stockholders' equity for the current year. (Reductions in account balances should be indicated with a minus sign.)

ch 8 exer #4

Romney's Marketing Company has the following adjusted trial balance at the end of the current year. No dividends were declared. However, 500 shares ($0.10 par value per share) issued at the end of the year for $3,000 are included below:

a. Compute total assets for Romney’s Marketing Company based on the adjusted trial balance.

b. Compute the company's total asset turnover for the current year, assuming total assets at the end of the prior year were $16,050.

(Marketing in Healthcare)

You have just been hired as the Executive Vice President of Sales and Marketing for a national HMO company that until recently was very successful (both revenue and profit growth) selling traditional HMO plans as its only product. During the last two years, revenue and profits declined, and new sales have slowed dramatically. The Board and CEO of the company recruited you to help the company achieve a strategic goal of 15% growth in revenue and profits each year for the next five years.

a.What stage of the product life cycle are HMO products experiencing in

b. Given the answer to (1) above, name three strategies, with specific examples, that you could suggest modifying the HMO’s life cycle for your new company.

c. Given your answer to (1) above, what is the appropriate marketing mix strategy, by each component, for the company to follow with its HMO product?

d. One of the first things the Board and CEO want you to do is to revise the company’s strategic plan. The Board’s directive is to develop strategies to meet the revenue and profit goals. In order to do this you must develop a SWOT analysis. Outline all the factors you will assess in order to develop the proper SWOT.

Question 1 - 8

Using the information given, complete following financial statements for August and September 2014.

ABC s

tarted its business on August 1, 2014.

Using the information given, complete following financial statements for August and September 2014.

ABC s

tarted its business on August 1, 2014.

JC’s Company’s unadjusted and adjusted trial balances at

December 31, 2017, follow.

Unadjusted trial Balance

Adjusted Trial Balance

Requirement:

Journalize the adjusting entries that account for the differences between the two

trial balances and provide a brief narration for each entry recorded.

Prepare the income statement for the year ended December 31, 2017

Prepare the owner’s equity statement for December 31, 2017

Prepare the balance sheet as at December 31, 2017

Scammers Inc. has developed a new Immune Booster drink (IB) as well as a “cure” for Covid-19 based on Colloidal Silver (CS). As the product manager for the firm, you are responsible for setting the pricing policy for the new products. You are considering a bundled package that includes both products, and you assume the marginal cost of production is zero for planning purposes. You have identified four basic types of customers who may buy these new products, and their reservation prices for the two new products are provided in the following table:

1. Suppose you sell the two products separately, and each buyer is expected to purchase one unit of the product per week. Which prices for IB and CS maximize weekly revenue? What is the weekly revenue equal to?

2. If you offer the two products under a pure bundling strategy, what is the revenue maximizing bundle price? What is the weekly sales revenue from the pure bundling scheme?

3. What are your firm’s profits if you charge $19 for a bundle containing one unit of IB and one unit of CS but also sell the products separately at a price of $14 for IB and $18 for CS?