Investments are reported at fair value when a company has a significant influence over another company in which it invests. True False

Consolidated financial statements combine the separate financial statements of the purchasing company and the acquired company into a single set of financial statements. True False

When the investor has insignificant influence, the receipt of cash dividends is recorded as dividend revenue. True False

When significant influence exists, the investment should be accounted for by the equity method. True False

Bond investments are long-term assets that earn interest revenue, while bonds payable are long-term liabilities that incur interest expense. True False

Topic 1: Price elasticity of demand is an important concept. With appropriate examples, explain how this concept is related to total revenue. (Hint: When providing example, select a product whose demand may be relatively elastic; therefore, lowering its price may lead to increase in total revenue. This will allow other students to choose a different example.) Topic 2: Discuss why a firm may decide to continue producing a good even if its price may be less than the average total cost. (Hint: Refer to the shut-down point and provide a real-world example so others can come up with different examples).

The city of New Orleans has 200 advertising companies, 199 of which employ designers of normal ability at a salary of $200,000 a year. The firms that employ designers of normal ability each collect $500,000 in revenue a year, which is just enough to ensure that each earns exactly a normal profit. However, the 200th company employs Janus Jacobs, an unusually talented designer. Because of Jacob's talent, this company collects $900,000 in revenue a year.

a. How much will Jacobs earn? What proportion of his annual salary will be economic rent?

b. Will the advertising company for which Jacobs works be able to earn an economic profit?

PLSSSS explain each step, so lost!

On January 1, 2017, Wildhorse Company purchased 12% bonds having a maturity value of $310,000, for $333,502.59. The bonds provide the bondholders with a 10% yield. They are dated January 1, 2017, and mature January 1, 2022, with interest receivable January 1 of each year. Wildhorse Company uses the effective-interest method to allocate unamortized discount or premium. The bonds are classified in the held-to-maturity category.

Prepare the journal entry at the date of the bond purchase.

Prepare a bond amortization schedule.

Prepare the journal entry to record the interest revenue and the amortization at December 31, 2017.

Prepare the journal entry to record the interest revenue and the amortization at December 31, 2018.

Suppose a company has fixed costs of $47,600 and variable cost per unit of 4/9x + 333 dollars,

where x is the total number of units produced. Suppose further that the selling price of its product is

1767 −5/9x dollars per unit.

(a) Find the break-even points. (Enter your answers as a comma-separated list.)
x =  

  

(b) Find the maximum revenue. (Round your answer to the nearest cent.)
$  

(c) Form the profit function P(x) from the cost and revenue functions.
P(x) =  

  

Find maximum profit.
$  

(d) What price will maximize the profit? (Round your answer to the nearest cent.)
$

Prepare the following:

1. Horizontal Analysis
2. Vertical Analysis
3. Calculate the return on equity with the DuPont model
4. Calculate the sustainable growth rate.

Tara owns a business that makes decorated facemasks. Using the mid-point method, the % change in price for her premium facemask if she raises her price from $5 to $9 per mask is  and the % change in quantity demanded if her sales drop from 300 masks a week to 200 masks a week with this change is . The price elasticity of demand for these facemasks (to 2 decimal pts) is . This elasticity number indicates that demand for these masks is elastic or inelastic?  Does revenue for Tara’s business increase, decrease or stay the same when she raises her price to $9? . Knowing this, Tara should charge $ for her masks. At that price, Tara would make $ in revenue per week.

Davies shows the following information for the next year for its single product, ceramic pots.

Selling price: $15 per unit

Variable cost: $12 per unit

Fixed cost = $42,000

Requirement 1: Compute the break-even point in units and sale dollars. Show your computations (6 points)

Requirement 2: What amount of sales revenue would Davies need to realize next year in order to generate a net income of $60,000 after tax (assume a tax rate of 20%). Show your computations (10 points)

Requirement 3: Using the sales revenue computed in #2, compute the margin of safety in sales dollars.

in 2021, the Westgate Construction Company entered into a contract to construct a road for Santa Clara County for $10,000,000. The road was completed in 2023. Information related to the contract is as follows: 2021 2022 2023 Cost incurred during the year $ 2,044,000 $ 2,628,000 $ 2,890,800 Estimated costs to complete as of year-end 5,256,000 2,628,000 0 Billings during the year 2,170,000 2,502,000 5,328,000 Cash collections during the year 1,885,000 2,600,000 5,515,000 Westgate recognizes revenue over time according to percentage of completion.

1.  Calculate the amount of revenue and gross profit (loss) to be recognized in each of the three years. ( Do not round intermediate calculation. Loss amounts should be indicated with a minus sign.)

Mustang Motors. has the following assets, liabilities, revenues and expenses for the current year. The accounts are listed below in alphabetical order. The company has a December 31^st year end.

Beginning retained earnings was $154,000 and dividends were $3,000 for the year. Prepare the balance sheet for the current year.