***SHOW ALL WORK*** You are Marketing Manager for Bud Beer, produced by the Budweiser Division of Anheuser-Busch, the brewing company with the highest market share in the United States. The second-highest market share belongs to Miller’s Beer, produced by Miller Brewer Company. So you know that Miller’s is your most-important competitor. You also know that watching football on TV makes beer more enjoyable. Therefore Bud sales (the demand for Bud Beer—quantity of Bud Beer demanded, number of six-packs per week) depends on the price of Bud beer (dollars per six-pack), the price of Miller’s Beer (dollars per six-pack), and TV football (number of football games on TV per week). Currently, the level of Bud sales is eight million six-packs weekly. Here are three scenarios, which are independent of each other; so they should be answered separately. Parts (a) and (b) of scenarios 1 and 2 are each worth one point, and scenario 3 is worth one point. Thus a total maximum point score of five. Scenario 1. The CEO asks you to predict the increase in Bud sales if Bud price is reduced by ten percent. You have to make a sensible prediction. (a) In the context of this scenario, what elasticity information do you need? (i) Name this elasticity (ii) Define this elasticity. (b) What assumptions must you make using this elasticity for your prediction? Explain your answer. Scenario 2. The CEO has learned that Miller will reduce the price of its beer by five percent. The CEO wants to know the effect on Bud sales if she does not reduce the price of Bud beer and if TV football is unchanged. Your staff informs you that the cross-price elasticity of the demand for Bud beer with respect to the price of Miller’s beer is 2. (a) Why is this elasticity positive (+2) rather than negative (-2)? Explain thoroughly. (b) What is the new level of Bud sales (number of six-packs per week)? Show your computation. Hint: Be sure to distinguish between the change in sales and the new level of sales. Scenario 3. The National Football League announces that TV football will increase from 95 games to 105 games. Your staff informs you that, assuming the price of Bud beer and the price of Miller’s beer do not change, Bud sales will increase from eight million to ten million weekly. Using the “midpoint method,” compute the “elasticity of demand for Bud beer with respect to TV football.” Show your computation.

(a)Based on MFRS 101 Presentation of Financial Statements, state FOUR (4) criteria where a liability should be classified as a current liability?

(b)Usaha Jaya Bhd has a RM50,000 short-term obligation due on 1 March 2020. The Manager discussed with its lender to extend the payment to 1 March 2022. The company’s reporting date is on 31 December 2019 and the financial statements are authorised for issuance on 1 April 2020.

     REQUIRED:

Discuss how the date of the agreement signed to extend the loan terms of the obligation’s maturity from 1 February 2020, to 1 March 2022 affected the classification of said obligation as current liability or non-current liability.

(c)Sintok Electrical Bhd provides a 2-year warranty for its stand fan. The fan was first sold in 2019 in which the company spent RM30,000 servicing warranty claims. At year-end, Sintok Electrical Bhd estimates that an additional RM50,000 will be spent in the future to service warranty claims related to 2019 sales.

REQUIRED:

Prepare Sintok Electrical Bhd’s related journal entries for 2019. (Assume the company’s financial year ends 31 December).

The pretax financial income of Sweet Company differs from its taxable income throughout each of 4 years as follows.

Pretax financial income for each year includes a nondeductible expense of $32,900 (never deductible for tax purposes). The remainder of the difference between pretax financial income and taxable income in each period is due to one depreciation temporary difference. No deferred income taxes existed at the beginning of 2020.

Part 1

Prepare journal entries to record income taxes in all 4 years. Assume that the change in the tax rate to 20% was not enacted until the beginning of 2021. (Credit account titles are automatically indented when amount is entered. Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

On 30 April 2020 Chen & Chan Ltd had a cash balance as per company records of $5,644.50 debit. The bank statement from Brisbane Bank on that date showed a credit balance of $7,825.35. A comparison of the statement with the cash account revealed the following facts:

1. The bank statement included a debit entry of $60 for bank fees.
2. Unpresented cheques at 30 April totalled $1,276.25, and outstanding deposits were $795.40.
3. Included with the cheques paid was a cheque issued by Smith Pty Ltd to R. Thomas for $600 that was incorrectly charged to Chen and Chan Ltd by the bank.
4. A $3,000 note receivable was collected by the bank for Chen & Chan Ltd on 30 April plus $80 interest. The bank charged a collection fee of $20. No interest has been accrued on the note.
5. On 30 April the bank statement showed a dishonoured cheque of $700 that had been issued by C. Rogers, a customer to Chen & Chan Ltd.

Required:

1. Prepare the bank reconciliation for Chen & Chan Ltd as at 30 April 2020.
2. Prepare the necessary adjusting entries for Chen & Chan Ltd as at 30 April 2020.
3. Narrations are not required.

True or false: If false explain.

1. The Jordan company applies manufactory overhead based on direct labor hours. Current and budgeted information related to direct labor and overhead for 2020 are listed below for indirect manufacturing costs.
Budget: Direct labor hours 300,000 Manufactory overhead 360,000

Actual results: DL 380,000 Manufactory Overhead 350,000

So, the cost are underapplied for $20,000. Answer: ???

2. Audi Company's indirect manufacturing costs were over applied by 27,000 in 2020. In that year, a total manufactory overhead of 508,000 had been budgeted and manufactury overhead of 496,000 was applied. The overhead that was currently incurred in 2020 is 469,000. Answer: ???

3. The process of allocating costs to a particular production, order, or service to a customer is known as job costing. Answer: ???

4. The debit from the manufacturing overhead account will reflect Actual costs of direct labor accounts and indirect manufacturing costs. Answer:???

5. Assuming that the normal costing system is used and is based on direct labor, the application rate for indirect manufacturing costs could be calculated by dividing: Budgeted manufacturing overhead between current direct labor hours. Answer: ???

“Diamond Company” is preparing a budget for the first quarter of year 2020. The following information is available:

• Total expected sales for last two months of 2019 and four months of 2020 are (in 000’s LE)

  	November	December	January	February	March	April
  Sales	200	200	160	160	180	150

• All sales are on credit and collections from sales are 60% in the month of sales, 30% in the next month, and 10% in the following month.
• Cost of goods sold is 70% of sales.
• The desired ending inventory every month is 30% of the next month's cost of goods sold.
• It is expected that ending inventory of December, 2019, will be valued at LE 33 600.
• All purchases are paid in the month of purchases.
• All cash operating expenses are paid when incurred and the following are the budgeted expenses per month:

• Wages LE 31 000, Advertising LE 5 000, Depreciation LE 16 000, Rent 12 000.

• It is planned to pay, for other cash operating expenses, the amount of LE 16 000 in January and LE 43 800 in February 2020.required : prepare cash pudget

Suppose your selected company(choose one of the two) just paid a dividend of $ 2.20 per share. The dividend are to calculate the share's expected return. You observe that the risk-free rate of return on us treasuries is 2% p.a, the market risk premium is 7 % and the company's equity has a current beta of 1.285. what is the market value of the company's shares? Compare the actual closing price of your selected company's share on the balance sheet date. Why might the actual share price differ from the calculated price? explain. I choose Woolworth ltd in australia and the other company is Wesfarmers Ltd

People tend to evaluate the quality of their lives relative to others around them. In a demonstration of this phenomenon, Frieswijk, Buunk, Steverink, and Slaets (2004) conducted fictitious interviews with frail elderly people. In the interview, each person was compared with others who were worse off. After the interviews, the elderly people reported more satisfaction with their own lives (the hypothetical data are reported below). The scores are measures on a life satisfaction scale for a sample of n = 9 elderly people who completed the interview are: 18, 23, 24, 22, 19, 27, 23, 26, 25.

Assume that the average score on this scale is m= 20. Are the data sufficient to conclude that the people in this sample are significantly more satisfied than others in the general population? Use a = .05.