DGP, Inc. sells 100,000 Gizmos to a retailer in Europe for €100,000 (Euros) on terms of 30 days from the date of invoice. The current rate of the EUR/USD is 1.3868; therefore, DGP, Inc. books the sale as an accounts receivable of US $138,680.

Instructions

1. Define and discuss the concepts of currency exposure risk, translation exposure, and economic exposure.
2. If the exchange rate of EUR/USD was 1.2868 in 30 days, what would be the impact on the company’s profit and loss at the time of the receipt of payment from the European customer? Include calculations.
   • What would be the economic exposure for the company? Include calculations.
   • What would be the translation exposure, if any? Include calculations.
3. What would be the impact on the company’s profit and loss at the time of the receipt of payment from the European customer if the exchange rate was EUR/USD 1.4868 in 30 days? Include calculations.
   • What would be the economic exposure for the company? Include calculations.
   • What would be the translation exposure, if any? Include calculations.
4. How could DGP, Inc. eliminate or reduce these exposure risks? Provide 2 hypothetical examples to support your answer.

Arnez Company’s annual accounting period ends on December 31, 2018. The following information concerns the adjusting entries to be recorded as of that date.

1. The Office Supplies account started the year with a $4,350 balance. During 2018, the company purchased supplies for $17,966, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2018, totaled $3,828.
2. An analysis of the company's insurance policies provided the following facts.

The total premium for each policy was paid in full (for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost. (Year-end adjusting entries for Prepaid Insurance were properly recorded in all prior years.)

3. The company has 15 employees, who earn a total of $1,600 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that December 31, 2018, is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year’s Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6, 2019.
4. The company purchased a building on January 1, 2018. It cost $615,000 and is expected to have a $45,000 salvage value at the end of its predicted 30-year life. Annual depreciation is $19,000.
5. Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $3,500 per month, starting on November 1, 2018. The rent was paid on time on November 1, and the amount received was credited to the Rent Earned account. However, the tenant has not paid the December rent. The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 15. The tenant has agreed not to fall behind again.
6. On November 1, the company rented space to another tenant for $3,171 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Unearned Rent account.

Required:
1. Use the information to prepare adjusting entries as of December 31, 2018.
2. Prepare journal entries to record the first subsequent cash transaction in 2019 for parts c and e.

Arnez Company’s annual accounting period ends on December 31, 2017. The following information concerns the adjusting entries to be recorded as of that date.

The Office Supplies account started the year with a $3,475 balance. During 2017, the company purchased supplies for $14,352, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2017, totaled $3,058.

An analysis of the company's insurance policies provided the following facts.

The total premium for each policy was paid in full (for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost. (Year-end adjusting entries for Prepaid Insurance were properly recorded in all prior years.)

The company has 15 employees, who earn a total of $2,200 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that December 31, 2017, is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year’s Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6, 2018.

The company purchased a building on January 1, 2017. It cost $900,000 and is expected to have a $45,000 salvage value at the end of its predicted 30-year life. Annual depreciation is $28,500.

Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $2,400 per month, starting on November 1, 2017. The rent was paid on time on November 1, and the amount received was credited to the Rent Earned account. However, the tenant has not paid the December rent. The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 15. The tenant has agreed not to fall behind again.

On November 1, the company rented space to another tenant for $2,174 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Unearned Rent account.

Required:
1. Use the information to prepare adjusting entries as of December 31, 2017.
2. Prepare journal entries to record the first subsequent cash transaction in 2018 for parts c and e.
  

Arnez Company’s annual accounting period ends on December 31, 2017. The following information concerns the adjusting entries to be recorded as of that date.

The Office Supplies account started the year with a $4,000 balance. During 2017, the company purchased supplies for $13,400, which was added to the Office Supplies account. The inventory of supplies available at December 31, 2017, totaled $2,554.

An analysis of the company's insurance policies provided the following facts.

The total premium for each policy was paid in full (for all months) at the purchase date, and the Prepaid Insurance account was debited for the full cost. (Year-end adjusting entries for Prepaid Insurance were properly recorded in all prior years.)

The company has 15 employees, who earn a total of $1,960 in salaries each working day. They are paid each Monday for their work in the five-day workweek ending on the previous Friday. Assume that December 31, 2017, is a Tuesday, and all 15 employees worked the first two days of that week. Because New Year’s Day is a paid holiday, they will be paid salaries for five full days on Monday, January 6, 2018.

The company purchased a building on January 1, 2017. It cost $960,000 and is expected to have a $45,000 salvage value at the end of its predicted 30-year life. Annual depreciation is $30,500.

Since the company is not large enough to occupy the entire building it owns, it rented space to a tenant at $3,000 per month, starting on November 1, 2017. The rent was paid on time on November 1, and the amount received was credited to the Rent Earned account. However, the tenant has not paid the December rent. The company has worked out an agreement with the tenant, who has promised to pay both December and January rent in full on January 15. The tenant has agreed not to fall behind again.

On November 1, the company rented space to another tenant for $2,800 per month. The tenant paid five months' rent in advance on that date. The payment was recorded with a credit to the Unearned Rent account.

Required:
1. Use the information to prepare adjusting entries as of December 31, 2017.
2. Prepare journal entries to record the first subsequent cash transaction in 2018 for parts c and e.

1. How does the Bank of Canada’s open market operation of purchasing bonds from chartered banks effect the individual components of the GDP = C+I+G+X-M?

Essay format:

In 320 word write in essay format how an individual may overcome adversity caused by disability ( attention deficit disorder ADD) and what they learned from the experience.

1. We fear the judgement of our peers, which causes us to become _____ in our thinking? Discuss.

2.Before we take risks we need some kind of security. Explain what this means.

3.Playfulness helps us to get better creative solutions, do our jobs better, and help us feel better when we do them. Give an example from your own experience.

4.When we first encounter any new material, we ask “what can we do with it”. Provide an example from a child and adult.

5.A barrier to adult creativity is self-editing. Explain.

6. He discusses “informal prototyping” and available materials to allow for exploration and design. Why do offices and schools remove most adaptive materials.

We ran across this one in the OECD healthcare data. The country names had numbers appended, which served as footnotes in the original spreadsheet but looked dumb when we used them as index labels. The question is how to eliminate them. A short version of the country names is

`names = ['Australia 1', 'Canada 2', 'Chile 3', 'United States 1']`

Do each of these in a separate code cell:

1. Set `us = names[-1]` and call the `rsplit()` method on us. What do you get?
2. Consult the documentation for `rsplit` to split `us` into two pieces, the country name and the number 1. How would you extract just the country name?
3. Use a loop to strip the numbers from all of the elements of `names`.
4. Use a list comprehension to strip the numbers from all of the elements of `names`.

The gender wage gap in the United States:

Group of answer choices

proves the existence of discrimination.

may be partially due to factors other than wage discrimination.

proves that men on average invest more in human capital than do women.

indicates that men are on average smarter than women are.

Scenario 18-7
Suppose the following events occur in the market for university economics professors.

Event 1: A recession in the U.S. economy lowers the opportunity cost of going to graduate school in economics to become a university economics professor.

Event 2: A decreasing number of students in U.S. primary and secondary schools decreases the number of students entering college and university.

Refer to Scenario 18-7. As a result of these two events, holding all else constant, the equilibrium quantity of university economics professors will

Group of answer choices

increase.

decrease.

not change.

It is not possible to determine what will happen to the equilibrium quantity.

Scenario 27
Suppose the following events occur in the market for university economics professors.

Event 1: A recession in the U.S. economy lowers the opportunity cost of going to graduate school in economics to become a university economics professor.

Event 2: A decreasing number of students in U.S. primary and secondary schools decreases the number of students entering college and university.

Refer to Scenario 27. As a result of these two events, holding all else constant, the equilibrium wages of university economics professors will

Group of answer choices

increase.

decrease.

not change.

It is not possible to determine what will happen to the equilibrium wages.

Other things being equal, what happens to labor supply in the pear-picking market when the wage paid to apple pickers decreases?

Group of answer choices

The labor supply will stay unchanged until the wages paid to pear pickers change.

The labor supply will decrease.

The labor supply will increase.

The labor supply may fall or rise, depending on the price of pears.

Scenario 22
Sam has two jobs, one for the winter and one for the summer. In the winter, he works as a lift attendant at a ski resort where he earns $11 per hour. During the summer, he drives a tour bus around the ski resort, earning $13 per hour.

Refer to Scenario 22. During the winter months, what is Sam's opportunity cost of taking an hour off work to go skiing?

Group of answer choices

$13

between $11 and $13

$11

less than $11

Your college roommate receives a pay raise at her part-time job from $9 to $11 per hour. She used to work 25 hours per week, but now she decides to work 30 hours per week. For this price range, her labor supply curve is

Group of answer choices

vertical.

horizontal.

upward sloping.

backward sloping.

Which of the following could increase the supply of labor in the market for cranberry pickers?

Group of answer choices

(ii) only

(i), (ii), and (iv) only

(i) and (iv) only

(ii) and (iii) only