) Using the following information for Campbell Enterprises, prepare an annual:

                   Multiple-step income statement

                   Retained earnings statement

                   Classified balance sheet (7 points)

Campbell Enterprises, Inc.

Adjusted Trial Balance

December 31, 2016

                                                                                         Debit                    Credit

Cash                                                                   4,000

Accounts Receivable                                       15,000

Inventory                                                         30,000

Prepaid Insurance                                              4,000

Supplies                                                             3,000

Long-term Investment in Stock                         6,000

Land                                                                 20,000

Buildings                                                       120,000

Accumulated Depreciation—

Buildings                                                                                     20,000

Patents                                                             10,000

Accounts Payable                                                                          10,000

Unearned Revenue                                                                          2,000

Bonds Payable (due in 2023)                                                         20,000

Common Stock                                                                              80,000

Retained Earnings                                                                          44,000

Dividends                                                         30,000

Sales Revenue                                                                              305,000

Interest Revenue                                                                              5,000

Sales Discounts                                                  6,000

Sales Returns & Allowances                             8,000

Cost of Goods Sold                                        188,000

Salaries and Wages Expense                           21,000

Depreciation Expense                                      10,000

Utilities Expense                                                5,000

Insurance Expense                                             3,000

Supplies Expense                                               2,000

Interest Expense                                               1,000                                       

                                                                       486,000                 486,000

b) Using the above information, compute Campbell’s gross profit rate. Please show the details of

            your computation: (1 point)

Gross profit rate            ____________________________________________

a) What is considered insider trading?

Multiple Choice

• All of the other statements describe insider trading.

• Marlene, an individual investor, buys shares in a company because her financial analysis of the company suggests that it is undervalued.

• Bill buys shares after the company's earnings announcement because he personally knows the auditor who audited the company's earnings announcement / press release.

• Chris, a hedge fund manager, purchases a 5% stake in a company because he wants to install his colleagues on to the company's board of directors.

• Karen sells shares in a company before the earnings announcement because her brother-in-law, who's the CEO, said that EPS will fall short of market expectations.

b).

Which of the following statements is true about the classified income statement?

Multiple Choice

• Income tax expense is subtracted from operating income to obtain pre-tax income.

• Net income is computed by subtracting operating expenses from gross profit.

• Cost of goods sold is the difference between net sales revenue and gross profit.

• Gross sales revenue is the first line of the income statement; contra-revenues is the second line; and net sales revenue is the third line.

• Dividend expense is classified as a non-operating (other) item on the income statement.

Jacob Long, the controller of Arvada Corporation, is trying to prepare a sales budget for the coming year. The income statements for the last four quarters follow:

Historically, cost of goods sold is about 70 percent of sales revenue. Selling and administrative expenses are about 10 percent of sales revenue.

Fred Arvada, the chief executive officer, told Mr. Long that he expected sales next year to be 15 percent for each respective quarter above last year’s level. However, Rita Banks, the vice president of sales, told Mr. Long that she believed sales growth would be only 10 percent.

Required  

1. Prepare a pro forma income statement including quarterly budgets for the coming year using Mr. Arvada’s estimate.

2. Prepare a pro forma income statement including quarterly budgets for the coming year using Ms. Banks’ estimate.

On their farm, the Friendly family grows apples that they harvest each fall and make into three products—apple butter, applesauce, and apple jelly. They sell these three items at several local grocery stores, at craft fairs in the region, and at their own Friendly Farm Pumpkin Festival for 2 weeks in October. Their three primary resources are cooking time in their kitchen, their own labor time, and the apples. They have a total of 500 cooking hours available, and it requires 3.5 hours to cook a 10-gallon batch of apple butter, 5.2 hours to cook 10 gallons of applesauce, and 2.8 hours to cook 10 gallons of jelly. A 10-gallon batch of apple butter requires 1.2 hours of labor, a batch of sauce takes 0.8 hour, and a batch of jelly requires 1.5 hours. The Friendly family has 240 hours of labor available during the fall. They produce about 6,500 apples each fall. A batch of apple butter requires 40 apples, a 10-gallon batch of applesauce requires 55 apples, and a batch of jelly requires 20 apples. After the products are canned, a batch of apple butter will generate $190 in sales revenue, a batch of applesauce will generate a sales revenue of $170, and a batch of jelly will generate sales revenue of $155. The

Posa Hotels, Inc., has a sixth night free policy. Every sixth night a guest stays at the hotel is free. Because not all guests stay enough nights to earn a free stay, on average the number of free nights redeemed is 70% of the maximum possible number of free nights available one obtains by dividing the total number of paid nights the hotel has had by 5. Rooms at Posa Hotels cost $300 per night. In 2019, Posa had a total of 100,000 paid room-nights and collected a total of $30 million from customers. Also in 2019, customers redeemed a total of 10,000 free room-nights. Some of the room-nights awarded were based on customers paid nights from previous years and some were based on paid nights from the current year. Required: Prepare journal entries to record revenue for 2019 for Posa. (If no entry is required for a particular transaction, select "No journal entry required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) 1)Prepare the entry to record the revenue recognized for the nights paid by customers. 2)Prepare the entry to record the revenue recognized for the free nights redeemed by customers.

Copy and paste the following data into Excel:

a.   Run OLS to determine the demand function as P = f(Q); how much confidence do you have in this estimated equation? Use algebra to invert the demand function to Q = f(P).

b.   Using calculus to determine dQ/dP, construct a column which calculates the point-price elasticity for each (P,Q) combination.

c.   What is the point price elasticity of demand when P=$210.00? What is the point price elasticity of demand when P=$185.50?

d.   To maximize total revenue, what would you recommend if the company was currently charging P=$201.60? If it was charging P=$185.50?

e.   Use your first demand function to determine an equation for TR and MR as a function of Q, and create a graph of P and MR on the vertical and Q on the horizontal axis.

f.          What is the total-revenue maximizing price and quantity, and how much revenue is earned there? (Round your price to the nearest cent, your quantity to the nearest whole unit, and your TR to the nearest dollar.) Compare that to the TR when P = $210.00 and P = $185.50.

Complete the following worksheet for Appliance Repair for the year ended 30 June 2020.

Additional information to complete the worksheet:

1. The equipment of $67,500 was purchased on 1 March 2020. The straight-line depreciation method is used with a useful life of 3 years and a scrap value of $2,700. No depreciation is ever recorded.
2. The $75,000 bank loan was borrowed on 1 May 2020. It is an interest only loan. The interest rate is 0.8% per month. No interest is ever paid or recorded.
3. The supplies on hand at 30 June 2020 were $650.
4. The prepaid insurance balance represents the annual premium paid on 1 April 2020.
5. $2,500 of unearned revenue has been earned by 30 June 2020.

   	trial balance (unadjusted)		adjustments		trial balance(adjusted)		Incomestatement
   account title	debit	credit	debit	credit	debit	credit	debit	credit
   cash at bank	37,500
   account payable	127,500
   prepaid insurance	1,800
   suppliers	900
   equipment	67,500
   accumulated depreciation -equipmeny
   accounts payable		2,700
   unearned revenue		3,150
   interest payable
   bank loan (due in 2028)		75,000
   capital		49,950
   service revenue		157,500
   wages expense	52,500
   supplies expense	600
   depreciation expense - equipment
   insurance expense
   interest expense
   	288,300	288,300

Below information pertains to Eller Equipment Company for the year 2018. (Hint: Some of the items will not appear on either statement, and ending retained earnings must be calculated.) Salaries expense $109,000 Beginning retained earnings $ 48,100 Common stock 97,000 Warranties payable (short term) 5,200 Notes receivable (short term) 19,500 Gain on sale of equipment 13,000 Allowance for doubtful accounts 21,000 Operating expenses 52,000 Accumulated depreciation 53,000 Cash flow from investing activities 103,000 Notes payable (long term) 89,350 Prepaid rent 25,000 Salvage value of building 17,000 Land 82,000 Interest payable (short term) 8,000 Cash 35,300 Uncollectible accounts expense 32,000 Inventory 130,000 Supplies 5,200 Accounts payable 42,000 Equipment 160,650 Interest Expense 23,000 Interest revenue 4,900 Salaries payable 55,000 Sales revenue 914,000 Unearned revenue 34,000 Dividends 22,000 Cost of goods sold 582,000 Warranty expense 7,900 Accounts receivable 95,000 Interest receivable (short term) 2,300 Depreciation expense 1,700 Required Prepare a multistep income statement for Eller Equipment Company for 2018. Prepare a classified balance sheet for Eller Equipment Company for 2018.

A spherical snowball is melting in such a way that its radius is decreasing at rate of 0.1 cm/min. At what rate is the volume of the snowball decreasing when the radius is 14 cm. (Note the answer is a positive number).

When air expands adiabatically (without gaining or losing heat), its pressure PP and volume VV are related by the equation PV1.4=CPV1.4=C where CC is a constant. Suppose that at a certain instant the volume is 310310 cubic centimeters and the pressure is 8181 kPa and is decreasing at a rate of 1414 kPa/minute. At what rate in cubic centimeters per minute is the volume increasing at this instant?

A company's revenue from selling x units of an item is given as R=1700x−1x2R=1700x-1x2. If sales are increasing at the rate of 20 units per day, how rapidly is revenue increasing (in dollars per day) when 150 units have been sold?

A company selling widgets has found that the number of items sold, x, depends upon the price, p at which they're sold, according the equation x=20000√2p+1x=200002p+1

Due to inflation and increasing health benefit costs, the company has been increasing the price by $2 per month. Find the rate at which revenue is changing when the company is selling widgets at $160 each.