At the beginning of the current season on 1 October, the ledger of Hancock’s Pro Shop Pty Ltd showed Cash $5000; Inventory $7000; and Share Capital $12 000. The following transactions occurred during October 2015.

Blossom Hardware Store completed the following merchandising transactions in the month of May. At the beginning of May, Blossoms’ ledger showed Cash of $9,300 and Common Stock of $9,300.

1)Journalize the transactions using a perpetual inventory system

2)Post the transactions to T-accounts. Be sure to enter the beginning cash and common stock balances.

Proposal #1 would extend trade credit to some customers that previously have been denied credit because they were considered poor risks.   Sales are projected to increase by $200,000 per year if credit is extended to these new customers.  Of the new accounts receivable generated, 6% are projected to be uncollectible.  Additional collection costs are projected to be 5% of incremental sales, and production and selling costs are projected to be 78% of sales.  Your firm expects to pay a total of 30% of its income after expenses in taxes.

1. Compute the incremental income after taxes that would result from these projections:

2. Compute the incremental Return on Sales if these new credit customers are accepted:

If the receivable turnover ratio is expected to be 5 to 1 and no other asset buildup is needed to serve the new customers…

3. Compute the  additional investment in Accounts Receivable
4. Compute the incremental Return on New  Investment

5. If your company requires a 20% Rate of Return on Investment for all proposals, do the numbers suggest that trade credit should be extended to these new customers?  Explain.

Match the independent entities in the table on the following page with the most likely objective from the list below:

Stewardship

Income tax deferral

Cash flow prediction

Contract compliance

Performance evaluation

If more than one answer applies, provide a brief explanation justifying your response. Explanations are not required otherwise.

Natural gas providers, like Scana Energy, can create switching costs for its product. This means,

a. it is difficult or costly for customers to switch to another seller of the product.

b.it increases its costs by producing several versions of the product so customers can switch between versions.

c.customers will find it more costly to stay with the company than to switch to another seller.

d.it is difficult or costly for the seller to switch to producing a different product.

Internal Controls for Cash Received from Retail Sales Dunn Company operates a retail department store. Most customers pay cash for their purchases. Edwards has asked you to help it design procedures for processing cash received from customers for cash sales. Briefly describe the procedures that should be used in each of the following departments:

a. Retail sales departments

b. Retail sales supervisor

c. Treasurer’s department

d. Controller’s department

*Do not round any answer until your final answer. Round your final answer to the nearest whole dollar. When entering your final answer, do not use commas or $ sign. (Sorry...Canvas is very sensitive and will mark your answer incorrect due to rounding and punctuation.) Due to possible rounding differences, all answer solutions are programmed as acceptable that are +/- 1. For example, if the correct answer is $54,372, all possible answer solutions that would be accepted would be 54,371, 54372, and 54,373.

On January 1, 20x1, ABC rendered services to Smith Corporation and accepted a $200,000, 5 year note. In exchange, Smith agreed to make quarterly payments of P&I at the end of each Mar, Jun, Sept and Dec, with the first payment to be made on March 31, 20x1. An interest rate of 8% is imputed.  

Required: Use the information above to answer the next (4) questions:

1. What is an indifference curve?

   	A.	An inverse demand curve.
   	B.	An exponential supply curve.
   	C.	A curve that shows how people don’t care about certain goods.
   	D.	A curve showing different combinations of goods that represent equally satisfying levels of consumption to an individual.

QUESTION 2

1. The following are properties of an indifference curve:

   	A.	They are bowed outward.
   	B.	Indifference curves for the same individual do not cross.
   	C.	They slope upward.
   	D.	All of the above.

QUESTION 3

1. Producing 1 unit costs $2, 2 units cost $3, 3 units cost $6, and 4 units cost $11. What is the marginal cost of the 4^th unit?

   	A.	$2.75
   	B.	$5
   	C.	$11
   	D.	$22

QUESTION 4

1. How do accountants calculate profit?

   	A.	Average revenue minus variable costs
   	B.	Marginal revenue minus average cost
   	C.	Total revenue minus explicit costs
   	D.	Total revenue minus explicit and implicit costs

QUESTION 5

1. How do economists calculate profit?

   	A.	Total revenue minus total monetary costs.
   	B.	Total revenue minus total costs including opportunity costs.
   	C.	Marginal revenue minus fixed costs.
   	D.	Average revenue minus average cost.

A company hopes to improve customer​ satisfaction, setting as a goal no more than 9 ​% negative comments. A random survey of 320 customers found only 15 with complaints. ​a) Create a​ two-sided 95 ​% confidence interval for the true level of dissatisfaction among customers. ​b) Does this provide evidence that the company has reached its​ goal? Using your confidence​ interval, test an appropriate hypothesis and state your conclusion. ​a) The 95 ​% confidence interval for the true level of dissatisfaction among customers is left parenthesis nothing comma nothing right parenthesis . ​(Round to three decimal places as​ needed.) ​b) What are the null and alternative​ hypotheses? H0​: p ▼ equals not equals greater than less than nothing vs. HA​: p ▼ equals greater than not equals less than nothing ​(Type integers or decimals. Do not​ round.) Use the confidence interval in part a to draw a conclusion. There ▼ is insufficient is sufficient evidence that the true level of dissatisfaction among customers is less than nothing ​% because nothing is ▼ within the limits above the upper limit below the lower limit of the interval. ​(Type integers or decimals. Do not​ round.) Enter your answer in each of the answer boxes.

Catena's Marketing COmpany has the following adjusted trial balance at the end of the current year. Cash dividends of $580 were declared at the end of the year, and 640 additional shares of common stock ($0.10 par value per share were issuues at the end of the year for $2560 in cash (for a total at the end of the year of 850 shares). These effects are included below:

Catena's Marketing Company

Statement of Stockholders' Equity

For the current year