Exercise A-7 (Algo) Derivatives; fair value hedge—futures contract [LOA–2] Arlington Steel Company is a producer of raw steel and steel-related products. On January 3, 2022, Arlington enters into a firm commitment to purchase 10,000 tons of iron ore pellets from a supplier to satisfy spring production demands. The purchase is to be at a fixed price of $53 per ton on April 30, 2022. To protect against the risk of changes in the fair value of the commitment contract, Arlington enters into a futures contract to sell 10,000 tons of iron ore on April 30 for $53/ton (the current price). The contract calls for net cash settlement, and the company must report changes in the fair values of its hedging instruments each quarter. Required: On March 31, the price of iron ore fell to $51/ton, and then to $50/ton on April 30. 1. Calculate the net cash settlement at April 30, 2022. 2. Prepare the journal entries for the period January 3 to April 30, 2022, to record the firm commitment, necessary adjustments for changes in fair value, and settlement of the futures contract.

How does an asthma attack cause difficulty in breathing? Emphysema from smoking and exposure to heavy pollution causes alveoli to expand and rupture. Describe how this would compromise respiratory function. Describe how skeletal muscles are used for inhalation. Use Boyle’s law to explain the process of pulmonary ventilation. Describe how to calculate inspiratory reserve volume. How did your vital capacity compare to your calculated predicted vital capacity? What health and lifestyle behaviors impact your vital capacity? Would a subject hold her or his breath longer after hyperventilating or after hypoventilating? Explain your answer. What changes occur in the body as a person hypoventilates? How does the body adjust respiratory rate and depth to counteract the effect of hypoventilation? Using your current height and gender, calculate your predicted vital capacity but add 5 years to your current age. Then, do the calculation again, but add 10 years to your current age. What changes are predicted in vital capacity as one ages? What do you think the reasons are for these age-related changes?

5. Problems and Applications Q5

Consider the effects of inflation in an economy composed of only two people: Manuel, a bean farmer, and Poornima, a rice farmer. Manuel and Poornima both always consume equal amounts of rice and beans. In 2019 the price of beans was $5, and the price of rice was $3.

Suppose that in 2020 the price of beans was $10 and the price of rice was $6.

Inflation was

.

Indicate whether Manuel and Poornima were better off, worse off, or unaffected by the changes in prices.

Now suppose that in 2020 the price of beans was $7.50 and the price of rice was $6.

In this case, inflation was

.

Indicate whether Manuel and Poornima were better off, worse off, or unaffected by the changes in prices.

Now suppose that in 2020, the price of beans was $1.50 and the price of rice was $6.

In this case, inflation was

.

Indicate whether Manuel and Poornima were better off, worse off, or unaffected by the changes in prices.

What matters more to Manuel and Poornima?

The relative price of rice and beans

The overall inflation rate

Consider the effects of inflation in an economy composed of only two people: Andrew, a bean farmer, and Beth, a rice farmer. Andrew and Beth both always consume equal amounts of rice and beans. In 2016 the price of beans was $1, and the price of rice was $4.

Suppose that in 2017 the price of beans was $2 and the price of rice was $8.

Inflation was _____%

.

Indicate whether Andrew and Beth were better off, worse off, or unaffected by the changes in prices.

Now suppose that in 2017 the price of beans was $2 and the price of rice was $4.80.

In this case, inflation was _____ %

.

Indicate whether Andrew and Beth were better off, worse off, or unaffected by the changes in prices.

Now suppose that in 2017, the price of beans was $2 and the price of rice was $1.60.

In this case, inflation was ____ %

.

Indicate whether Andrew and Beth were better off, worse off, or unaffected by the changes in prices.

What matters more to Andrew and Beth?

The overall inflation rate

The relative price of rice and beans

Multiple changes in cash conversion cycle   Garrett Industries turns over its inventory 6 times each​ year; it has an average collection period of 44 days and an average payment period of 27 days. The​ firm's annual sales are $3.4 million. Assume there is no difference in the investment per dollar of sales in​ inventory, receivables, and​ payables; and a 365​-day year.

a. Calculate the​ firm's cash conversion cycle​, its daily cash operating​ expenditure, and the amount of resources needed to support its cash conversion cycle.

b. Find the​ firm's cash conversion cycle and resource investment requirement if it makes the following changes simultaneously. ​(1) Shortens the average age of inventory by 7 days. (2) Speeds the collection of accounts receivable by an average of 11 days.​(3) Extends the average payment period by 9 days.

c. If the firm pays 9​% for its resource​ investment, by how​ much, if​ anything, could it increase its annual profit as a result of the changes in part b​?

d. If the annual cost of achieving the profit in part c is ​$35,000​, what action would you recommend to the​ firm? ​ Why?

1) Describe the structure of the respiratory membrane.

2) During contraction of the diaphragm:

a. in what direction does the diaphragm move?

b. what does this movement do to the volume of the lungs?

3) Put the following respiratory events in the correct order:

a. air moves, b. alveolar volume changes, c. pleural pressure changes, d. alveolar pressure changes.

4) Describe what would happen to a lung if the pleural cavity pressure became equal to atmospheric pressure.

5) State what would happen to each of the following as a result of lung fibrosis (increase, decrease, or no change):

a. lung compliance

b. alveolar surface tension

c. airway resistance

d. tidal volume

6) State what happens to the following as altitude increases (increase, decrease, or no change):

a. atmospheric pressure

b. % of air made of oxygen

c. partial pressure of oxygen

7) When oxygen is in a state of partial pressure equilibrium between the alveoli and pulmonary capillaries, state: (lower than, higher than, or equal to)

a. how alveolar and capillary PO2 compare.

b. how the alveolar and capillary concentrations of O2 compare.

Cisco Systems: Evolution of Structure OVERVIEW The evolution of Cisco from a university campus networking solution to a global technology leader has been a dynamic process. The speed of technological innovation means that managers are already talking about the “next new thing” during the launch of each new product or service. Parallel with the rapid technological evolution at Cisco are the changes in organizational structure. As Cisco expanded, visionary John Chambers was brought in as CEO, and he expanded the company into advanced technologies. By 2000, Cisco had attained a brief designation as the world’s most valuable company. Will the evolution of Cisco continue? And if so, what will it look like? Company history indicates that, just as a quick response is needed in the rapid evolution technology products and services, the company must remain aware of structural changes needed within the organization to maintain its leadership position. Critical Thinking Questions:

1. Discuss the organizational structure at Cisco Systems. (Lo 1.6 & 2.2) 200 words

2. What design changes were needed? (Lo 2.9) 200 words

3. How has Cisco’s structure continued to evolve? (Lo 1.6 & 2.2) 200 words

Consider the effects of inflation in an economy composed of only two people: Rajiv, a bean farmer, and Simone, a rice farmer. Rajiv and Simone both always consume equal amounts of rice and beans. In 2016 the price of beans was $5, and the price of rice was $3.

Suppose that in 2017 the price of beans was $10 and the price of rice was $6.

Inflation was ________%

.

Indicate whether Rajiv and Simone were better off, worse off, or unaffected by the changes in prices.

Now suppose that in 2017 the price of beans was $7.50 and the price of rice was $6.

In this case, inflation was __________%

.

Indicate whether Rajiv and Simone were better off, worse off, or unaffected by the changes in prices.

Now suppose that in 2017, the price of beans was $1.50 and the price of rice was $6.

In this case, inflation was ___________%

.

Indicate whether Rajiv and Simone were better off, worse off, or unaffected by the changes in prices.

What matters more to Rajiv and Simone?

The overall inflation rate OR The relative price of rice and beans

Consider the effects of inflation in an economy composed of only two people: Jake, a bean farmer, and Latasha, a rice farmer. Jake and Latasha both always consume equal amounts of rice and beans. In 2016 the price of beans was $5, and the price of rice was $3.

Suppose that in 2017 the price of beans was $10 and the price of rice was $6.

Inflation was ____________%.

Indicate whether Jake and Latasha were better off, worse off, or unaffected by the changes in prices.

Now suppose that in 2017 the price of beans was $7.50 and the price of rice was $6.

In this case, inflation was ___________%.

Indicate whether Jake and Latasha were better off, worse off, or unaffected by the changes in prices.

Now suppose that in 2017, the price of beans was $1.50 and the price of rice was $6.

In this case, inflation was_______%.

Indicate whether Jake and Latasha were better off, worse off, or unaffected by the changes in prices.

What matters more to Jake and Latasha?

a. The relative price of rice and beans

b. The overall inflation rate