Sparrow Company uses the retail inventory method to estimate ending inventory and cost of goods sold. Data for 2018 are as follows:

The company records sales net of employee discounts. Discounts for 2018 totaled $3,100.

Required:
1. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the average cost application.
2. Estimate Sparrow’s ending inventory and cost of goods sold for the year using the retail inventory method and the conventional application.

(For all requirements, round Cost-to-retail percentage to two decimal places and final answers to whole dollars.)

Alan Legler requires an estimate of the cost of goods lost by fire on March 9. Merchandise on hand on January 1 was $38,600. Purchases since January 1 were $65,700; freight-in, $3,300; purchase returns and allowances, $2,200. Sales are made at 33 ¹/₃% above cost and totaled $99,900 to March 9. Goods costing $10,000 were left undamaged by the fire; remaining goods were destroyed.

Compute the cost of goods destroyed. (Round gross profit percentage and final answer to 0 decimal places, e.g. 15% or 125.)

Compute the cost of goods destroyed, assuming that the gross profit is 33 ¹/₃% of sales. (Round ratios for computational purposes to 5 decimal places, e.g. 78.72345% and final answer to 0 decimal places, e.g. 28,987.)

The contribution format income statement for Huerra Company for last year is given below: Total Unit Sales $ 4,000,000 $ 80.00 Variable expenses 2,800,000 56.00 Contribution margin 1,200,000 24.00 Fixed expenses 840,000 16.80 Net operating income 360,000 7.20 Income taxes @ 30% 108,000 2.16 Net income $ 252,000 $ 5.04 The company had average operating assets of $2,000,000 during the year. Required: 1. Compute the company’s return on investment (ROI) for the period using the ROI formula stated in terms of margin and turnover. (Enter your answer as a whole percentage (i.e., 0.12 should be entered as 12).) For each of the following questions, indicate whether the margin and turnover will increase, decrease, or remain unchanged as a result of the events described, and then compute the new ROI figure. Consider each question separately, starting in each case from the data used to compute the original ROI in (1) above. 2. Using Lean Production, the company is able to reduce the average level of inventory by $400,000. (The released funds are used to pay off short-term creditors.) (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 3. The company achieves a cost savings of $32,000 per year by using less costly materials. (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 4. The company issues bonds and uses the proceeds to purchase $500,000 in machinery and equipment at the beginning of the period. Interest on the bonds is $60,000 per year. Sales remain unchanged. The new, more efficient equipment reduces production costs by $20,000 per year. (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 5. Sales are increased by 20%; operating assets remain unchanged. (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 6. Obsolete inventory carried on the books at a cost of $40,000 is scrapped and written off as a loss. (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).) 7. The company uses $200,000 of cash (received on accounts receivable) to repurchase and retire some of its common stock. (Round your Turnover answer to 2 decimal places. Round your Margin and ROI percentage answers to 2 decimal places (i.e., 0.1234 should be entered as 12.34).)

You are currently working as a Senior Economist for the Congressional Budget Office in Washington DC making $108,000 per year.

Your lifelong ambition, however, has been to open your own cupcake store. You decide to quit your job as an economist to open your dream store near the River Walk in San Antonio.

You estimate that you will be able to sell 10,000 cupcakes per month at a price of $3.40 per cupcake.

You will have to pay monthly rent of $5,000 for renting the retail space and will have other cash costs of $2,500 per month (utilities etc.). The ingredients will cost you $2.00 per cupcake.

1. 3 points) Calculate your monthly revenue.

2. (3 points) Calculate total implicit costs (monthly)

(3 points) Calculate total explicit costs (monthly)

Marie and Alex just paid $250,000 for a house. They made a down payment of $50,000 and assumed a 30-year $200,000 mortgage with a fixed annual interest rate of 5.50%. The house will serve as a residence for several years, but Marie and Alex also view it as an investment, as property values in the neighborhood are projected to increase at a rate of 5% per year in the near future. Property taxes on their home will be $4,236 the first year and are expected to increase 3% a year. Homeowners insurance will cost $632 the first year and is expected to increase at a rate of 2% each year.  The couple plans to sell the house after eight years. Answer the following questions.

1. What is their monthly payment on principle and interest?  Do not include property taxes or home owners insurance (AKA. escrow payment).

2. What would the couple pay in monthly payments over the 8 years that they owned the house?

You are currently working as a Senior Economist for the Congressional Budget Office in Washington DC making $108,000 per year. Your lifelong ambition, however, has been to open your own cupcake store. You decide to quit your job as an economist to open your dream store near the River Walk in San Antonio. You estimate that you will be able to sell 10,000 cupcakes per month at a price of $3.40 per cupcake. You will have to pay monthly rent of $5,000 for renting the retail space and will have other cash costs of $2,500 per month (utilities etc.). The ingredients will cost you $2.00 per cupcake. (3 points) Calculate monthly accounting profits (3 points) Calculate monthly economic profits (3 points) Would an economist recommend that you start this business? Why or Why not?

In the previous units, we learned about basic accounting principles that generally apply to all types of firms. In this unit, we turn our attention to particular accounting concerns of merchant firms.

Because merchants are in many places among the most common type of business, and because there are special issues in accounting for merchandising operations, this subject merits special consideration.

No doubt all of you have merchants in the area where you live, you may often shop there, perhaps some of you may have even worked in a merchant shop. Think of a popular merchant near you. What type of merchandise do they stock? How do you think this merchant determines his or her cost of goods sold? Describe the method and "real" accounts.

250 words or more (must be original no copy paste)

RBC Royal Bank wanted to evaluate the financial value of its substantial personal customer base to determine which type of customers were the most valuable to the bank. To do this, the bank looked at revenues and expenses from each of its financial products, including loans and credit card usage. To identify and then analyze this information, the bank utilized the MIS analysis technique called ________.

Select one:

a. Data warehousing

b. Marketing research

c. Probability sampling

d. Data mining

e. Market basket analyzing

Through ________, a firm tries to guarantee that its brand will appear at or near the top of lists of typical search phrases related to its business.

Select one or more:

a. Cost per impression pricing

b. Conversion rates

c. Search engine optimization

d. Search engine analytics

e. Predictive analytics

Sheridan provides shuttle service between four hotels near a medical center and an international airport. Sheridan uses two 10-passenger vans to offer 12 round trips per day. A recent month’s activity in the form of a cost-volume-profit income statement is shown below. Sales (1,470 passengers) $41,160 Variable costs Fuel $5,762 Tolls and parking 3,544 Maintenance 984 10,290 Contribution margin 30,870 Fixed costs Salaries 13,100 Depreciation 1,400 Insurance 1,250 15,750 Net income $15,120 (a1) Calculate the break-even point in dollars. Break-even point $ eTextbook and Media (a2) Calculate the break-even point in number of passengers. Break-even point passengers eTextbook and Media (b) Without calculations, determine the contribution margin at the break-even point. Contribution margin at the break-even point $

You are currently working as a Senior Economist for the Congressional Budget Office in Washington DC making $108,000 per year. Your lifelong ambition, however, has been to open your own cupcake store. You decide to quit your job as an economist to open your dream store near the River Walk in San Antonio. You estimate that you will be able to sell 10,000 cupcakes per month at a price of $3.40 per cupcake. You will have to pay monthly rent of $5,000 for renting the retail space and will have other cash costs of $2,500 per month (utilities etc.). The ingredients will cost you $2.00 per cupcake.

1. (3 points) Calculate monthly accounting profits

2. (3 points) Calculate monthly economic profits

3. (3 points) Would an economist recommend that you start this business? Why or Why not?