1. Assuming perpetual inventory and LIFO, what is COGS in June?

2. Assuming perpetual inventory and average cost, what is COGS in July?

3. Assuming perpetual inventory and FIFO, what is the July 31 Ending inventory balance?

4. If your goal was to minimize the taxes you would pay for the month of July, which inventory valuation method would you use; average cost, FIFO, or LIFO?

Use the information in the table below to answer the following questions.

Production per unit of Labor

                        U.S.                 Argentina

Wheat              100                  200

Beef                200                  400

Does either country have an absolute advantage in the production of wheat or beef? Explain.

(b)        What is the opportunity cost of wheat in each country?

(c)        What is the opportunity cost of beef in each country?

(d)        Analyze comparative advantage and opportunities for trade between the U.S. and Argentina.

Unit labor Requirements

                        Cloth               Widgets

Home              100                  200

Foreign            60                    30

Given the information in the table above. If these two countries trade these two goods with each other in context of the Ricardian model of comparative advantage, what is the lower limit for the price of cloth?

Given the information in the table above. What is the opportunity cost of Cloth in terms of Widgets in Foreign?

It is argued that global trade tends to be more important to countries with smaller economies than the U.S. Is this empirically verified?

24. CSI converts Boston’s sewage sludge to fertilizer. MDC (Metropolitan District Commission) has agreed to pay whatever amount is necessary to yield CSI a 10% book ROE. At the end of the year, CSI is expected to pay a $4 dividend. It has been reinvesting 40% of its earnings and growing at 4% per year. a. Suppose CSI continues this growth trend. What is the expected long-run rate of return from purchasing the stock at $100. What part of the $100 is attributable to the present value of growth opportunities? b. Now MDC announces a plan for CSI to treat Cambridge sewage. CSI’s plant will be expected gradually over 5 years. This means that CSI will have to reinvest 80% for 5 years. Starting in year 6, CSI will again be able to pay out 60% if its earnings. What will be CSI’s stock price once this announcement is made and its consequences for CSI are known?

Juicetronics, a maker of juice box drinks, currently produces 200,000 batches of 100 juice boxes per year. Each juice box needs one straw and it buys the straws from another firm, Tetra Brik, for a price of $2 per batch of 100 straws. The plant manager believes it may be cheaper to make these straws than to buy them. Direct production costs are estimated to be just $1.50 per batch. The necessary machinery would cost $150,000. The machinery would be depreciated straight-line to a zero salvage value over 10 years. After ten years, the machine would be sold for $1,000. The plant manager estimates that the operation would require additional net working capital at time 0 of $30,000. This working capital will be recovered at the end of the project. The firm pays taxes at a rate of 34% and has a 15% cost of capital. Should Juicetronics make or buy the straws?

Wholesalers often provide reduced prices on goods if the customer purchases more than one item. Your company wants to create a program that customers can use to determine the cost of their purchase.

Quantity

0 ≤ q < 10
10 ≤ q < 100 100 ≤ q < 1000 1000 ≤ q

Price

$15.00 per unit
$10.00 per unit + $50.00 $7.50 per unit + $300.00 $2.00 per unit + $5,080.00

Your program should prompt the user for the number of items purchased then calculate the cost of the purchase. You may not use if - else structures, but must instead limit yourself to the relational operators. The output must include printing the number of items ordered as well as the cost of the purchased. The output should be properly formatted.

Your program must also include comments with your name, the date, and a short description of the project. It must also print this information as a splash screen at the beginning of the program run.

The Pasta factory will open soon. The owner has chosen two from the several tenders, but cannot decide which one to accept, so he turns to you for advice. The same quality of pasta can be produced by both machines, and they can be replaced with the same conditions in long run. The expected return of similar investments is 16%. The machine details are the following:

a) Which machine would you choose by the NPV?

b) Which machine would you choose by the equivalent annual benefit?

c) Assume that you use the machine as private, so the yearly revenues do not count. Which machine would you choose if you need the machine for a long-term, and you can purchase a new machine with the same conditions?

During the past year, you had a portfolio that contained U.S. government T-bills, long-term government bonds, and common stocks. The rates of return on each of them were as follows:

During the year, the consumer price index, which measures the rate of inflation, went from 100 to 115 (1982 – 1984 = 100). Compute the rate of inflation during this year. Round your answer to one decimal place.

  %

Compute the real rates of return on each of the investments in your portfolio based on the inflation rate. Use a minus sign to enter negative values, if any. Do not round intermediate calculations. Round your answers to two decimal places.

Given: Suppose that 100 risk-averse individuals face a possible insurable health event of $10,000, and their degree of risk aversion is such that they are willing to pay a health insurance premium that is $1,250 higher than their expected healthcare costs. Assume 80 of the people are in low-risk subgroup and have a 25% probability of the event, and the other 20 people are in a high-risk subgroup and have a 75% probability of the event.

Assume individuals and the insurer know the size of the risk groups and the probability of a health event for each risk subgroup, but neither the individuals nor the insurer know which risk subgroup a particular individual is in.

If an insurer will not operate in the market unless its economic profit is greater than or equal to zero and it prices the health insurance premium according to the average for all 100 people (or the sub-group that will buy insurance at the equilibrium price), then the actuarially fair equilibrium premium plus $1,500 in loading charges per insured enrollee will be ____.

Rainbow Beauty Goods just provided the following balance sheet and income statement items. Assume that the stock price is $10 per share. All data are in thousands of dollars.

Net income                                                                             400

Net plant and equipment                                                        2500

Notes payable                                                                         300

Accounts Payable                                                                   500

Accounts Receivable                                                              600

Addition to retained earnings                                                 250

Cash and equivalents                                                              200

Common stock                                                                       100

Cost of goods sold                                                                  3700

Depreciation                                                                           300

Dividends on common shares                                                150

Gross profit                                                                            2300

Interest expense                                                                      100

Inventories                                                                              700

Long term debt                                                                       1100

Other current liabilities                                                          500

Retained earnings                                                                   1500

Sales                                                                                       6000

Selling, general and administrative expenses                        1200

Taxes                                                                                      300

Total Shares Outstanding                                                       800

1. Calculate firm’s Current ratio.
2. Calculate firm’s Quick Ratio
3. Calculate firm’s ROE.
4. Calculate firm’s Net Profit Margin.
5. Calculate firm’s EPS (Earnings per Share).